Development of human capital through digital innovation

We are committed to enhancing our services through data-driven insights and customer feedback. Using advanced analytics and targeted engagement strategies, we align with evolving customer expectations. In 2025, stc KSA achieved a customer satisfaction rate of 89%, based on surveys covering 5,726 of customers, while stc Bahrain and stc Kuwait recorded satisfaction rates of 90% and 90.4%, respectively. Analytics form a core component of stc's strategy to optimize sales channels and elevate the customer experience. Our Customer Value Management (CVM) team employs big data to develop targeted campaigns for upselling and cross-selling, thereby strengthening customer relationships. To further improve the customer experience, stc implemented several initiatives designed to directly enhance customer satisfaction, including:

In 2025, stc sustained its focus on expanding coverage, enhancing capacity and improving service quality across Saudi Arabia, Bahrain and Kuwait. Investments in fifth generation technology and fiber infrastructure reinforced the commitment that geographic location should never limit digital opportunity.

Coverage expanded to 75 cities across Saudi Arabia, supported by the commissioning of 1,261 new fifth generation sites, bringing the total number of enabled sites to 10,803. The expansion also extended fifth-generation coverage to more than 2,000 additional locations across the Kingdom, with a particular focus on underserved and less densely populated areas. The network was further strengthened through the establishment of 8,858 fiber backhaul connections and over 3,800 upgrades to fourth-generation layers following third generation shutdown activities. Indoor connectivity was enhanced through the addition of 4,500 fifth generation indoor antennas and approximately 16,000 fourth generation indoor antennas.

These upgrades significantly improved network performance. In Saudi Arabia, average mobile broadband download speed increased from 142.97 Mbps in 2024 to 222.33 Mbps in 2025, surpassing the network target originally set for 2027. This progress contributed to Saudi Arabia ranking 9th globally in the Ookla Global Index as of October 2025.

Network traffic continued to rise across all markets, reflecting growing digital adoption and increased demand for high bandwidth services. At the same time, stc advanced its transition from copper to fiber infrastructure, enhancing capacity while improving energy efficiency. In 2025, the rollout also included the activation of 125,000 new Fiber-to-the-Home connections and the deployment of more than 1,100 km of additional fiber-optic cables, further strengthening nationwide broadband coverage and network resilience. In collaboration with partners, legacy copper cables are being removed and recycled, supporting national sustainability objectives and responsible resource management.

Network expansion and performance improvements are complemented by continued investment in resilient digital infrastructure designed to support long-term growth and operational stability.

In 2025, stc advanced its cloud enabled infrastructure through the development of 3 new data centers designed to support rising digital demand across the region. These facilities integrate energy efficient technologies and advanced cooling systems to optimize power usage effectiveness and reduce environmental impact.

Artificial intelligence (AI)-driven driven network optimization tools were further deployed to enhance capacity planning, predictive maintenance and traffic management, strengthening service reliability while improving energy efficiency across the network.

stc also expanded its multi access edge computing capabilities and private network solutions, enabling high speed data processing and secure connectivity

In 2025, stc group accelerated its enterprise evolution through a strategic initiative to establish a unified cloud-based enterprise resource planning platform. This transformation represents a foundational shift toward a more integrated, intelligent and sustainable operating model, reinforcing the alignment between digital leadership and environmental, social and governance performance.

This cloud-based ERP ensures we use resources more efficiently, make better decisions with real-time data (including AI insights) and turn our sustainability promises into real, measurable results. We have completed key early steps, such as assessing maturity levels, creating a multi-year roadmap and standardizing important data, i.e. accounts, items and suppliers.

Building on its digital transformation journey, stc advanced from system level enablement to ecosystem level orchestration. Central to this evolution is the Single Source of Truth (SSoT) platform, which serves as a unified enterprise data layer integrating operational and business information across stc group.

The platform now governs more than 800 corporate key performance indicators, providing standardized catalogues, automated approval workflows and executive level dashboards. It enables consistent subsidiary level reporting and supports enterprise-wide visibility across

In 2025, stc evolved its customer experience approach into an integrated Voice of Experience framework that unifies the voice of the customer, the voice of the employee and the voice of the process. This framework positions experience management not merely as feedback collection but as a structured governance mechanism that connects operational performance with customer perception.

The group Customer Experience Index was refined to align more closely with strategic pillars, product portfolios and key touchpoints, providing a comprehensive measure of performance across markets. Year on year improvement in this index reflects sustained focus on responsiveness, quality and trust.

Digital channels now represent the primary interface between stc and its customers. The mystc application has evolved into a comprehensive digital platform enabling customers to manage subscriptions, order SIM cards, pay bills, access support and oversee account activity through a single integrated environment.

In Saudi Arabia, the number of active mystc users increased to more than 16 million in 2025, with total subscriptions exceeding 36 million. 47% of sales transactions were conducted through the application, while digital self-service support reached 97%. This transition toward digital first engagement has enhanced convenience and transparency while reducing dependency on physical outlets and resource intensive processes.

stc continues to integrate internet of things, AI and advanced data analytics to enable smarter operations across industries. Through iot squared, a joint venture with the Public Investment Fund, public sector entities, enterprises and small and medium sized businesses are adopting connected technologies that improve safety, efficiency and cost management.

Connected worker identification solutions enhance safety at construction sites through real time tracking capabilities, while fleet management platforms provide operational insights that reduce fuel consumption and prevent penalties. By 2025, more than 10,000 devices had been deployed, delivering measurable efficiency gains and supporting responsible resource utilization.

These initiatives reinforce stc's contribution to national digital transformation objectives while advancing long-term economic and environmental resilience.