ANNUAL REPORT 2022

Strategic Report

Strategy for Sustainable and Profitable Growth

Over the years, solutions by stc’s journey has witnessed a steady and profitable growth. From an early entry into the field of System Integration, to timely moves to cloud and digital services, and Cybersecurity, solutions by stc has continually made strategic and forward-looking moves that enabled solutions by stc to maintain a market leader position.

Business Model

solutions by stc’s five-year LEAP strategy: 2020-2025

Now in our third strategic phase (Horizon III), solutions by stc is looking to maintain stable revenue drivers, whilst investing in new business lines with high growth potential and a high contribution-margin.

The strategy is centered around four key focus areas:

L

Lead in managed and professional services

E

Expand product portfolio and market reach

A

Achieve Excellence in Total Experience

P

Promote internal efficiencies and collaboration

Lead in managed and professional services

The Company places great emphasis on the core business of system integration, managed services, connectivity and digital services. Initiatives are in place to increase business volumes to ensure strengthening of market position for managed and professional services (including integration, consulting, development and management) and Business Process Outsourcing (BPO), whilst nurturing customer relationships throughout the IT value chain to improve competitiveness. To this end, solutions by stc works to leverage the best external technology, optimize and improve harmonization of delivery teams, and continuously expand operational capabilities.

Expand offerings portfolio and market reach

solutions by stc actively seeks to venture into new and adjacent business lines; thereby improving operational diversity and meeting the evolving needs of customers, whilst establishing brand equity as an innovator in the market. The Company’s moves are backed by detailed assessments of market trends and customer needs. Company's expansion of offerings and market reach are enabled by strong organic and inorganic strategies to unlock accelerated growth of the business. This is an exciting phase of growth for the Company with potential to grow outside the Kingdom, whilst continuing to invest in the Kingdom’s IT value-chain.

Achieve Excellence in Total Experience

Customer-centricity is a key component of solutions by stc’s strategy for growth in Horizon III. From instilling a Customer-centric culture in the Company’s DNA, to focusing on Customer Experience (CX) as a unique differentiator and competitive advantage, solutions by stc is focused on winning with customers and partners. Building and maintaining relationships with global technology vendors, represents an essential element of the Company’s go-to-market strategy, with solutions by stc being the partner of choice for foreign partners to access the Saudi market. As the Company draws strength from its robust partner ecosystem, strategic focus remains on building relationships and seeking mutually beneficial outcomes for suppliers, business partners, and the Company.

Promote internal efficiencies and collaboration

Central to solutions by stc’s success in this phase of growth, is the Company’s continual investment in developing capabilities in key growth areas, including attracting the best talent to drive innovation, promote efficiency and adopt best in class sustainability practices. solutions by stc seeks to actively cultivate synergies and transparency within the business, to obtain the maximum benefit from of its broad operational capabilities. Collaboration of synergies across business units and subsidiaries is being promoted through a concerted effort, and these efforts promise to unlock new advantages and opportunities for the Company.

Transforming risks into opportunities

In 2022, the Company’s existing risk appetite statement was updated and expanded to better capture the context, and ensure a more robust management of risks. This is in line with solutions by stc’s plans for growth as per its ambitious five-year LEAP strategy. The Company also achieved ISO 31000 Risk Management Certification, which reiterates solutions by stc’s commitment to continual enhancement of our Risk Management practices. Further, as part of a long-term sustainability journey, the Company identified material ESG areas to focus on, which lays the foundation for the Company’s efforts to identify, measure, and mitigate ESG risks and challenges.

Analysis of material risks faced by solutions by stc, and steps taken to manage, mitigate, and transform these risks into opportunities are further explored in the Company’s Corporate Governance report.

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