Dear Shareholders,
I am pleased to present Kuwait Telecommunications Company’s (stc) Annual Report for the year ended 31 December 2021, which demonstrates stc’s exceptional performance during the COVID-19 crisis and the recovery period. Despite the fact that the global health has been gradually improving since the onset of 2021 after completing the vaccination process in most of the countries worldwide, many sectors are still struggling to overcome the economic consequences resulted from the crisis. In this regard, it is worth mentioning the crucial role of the return back to the normal life plan adopted by the Kuwaiti government in alleviating the negative impacts on the local society in addition to spreading the sense of security and stability on the individual and corporate levels.

In addition to stc’s sustainability and business continuity plans that were developed internally to help the company combat the challenges of the COVID-19 crisis, this report also sheds the light on stc’s refreshed strategy, which has been updated in FY2021 to enable stc’s viability and maintain its market position throughout the most critical economic conditions. This was combined with the great efforts of stc’s executive management, dedicated employees and the company’s specialized arm (solutions by stc) in order to provide the most innovative high quality products, services and solutions aimed at adding value to our customers and achieving good returns.

Accordingly, in adherence to the local regulations and in line with the Kuwaiti government’s plan of the gradual return to the normal life in Kuwait, stc is proud to announce its ability to remain viable over the unprecedented periods accompanied with the global uncertain economic conditions. Whereby, stc has managed to meet the aspirations of its shareholders, recording a net profit of 44.9 KD million.

The Telecommunications Market and Socio-economic Recovery

The past years had a substantial effect on the telecommunications market in Kuwait, which demonstrated its resilience and flexibility in dealing with the unexpected economic hazards. Throughout FY2021, stc has done its utmost to leverage on the societal needs for digitization to expand its IT infrastructure and ensure its operational and financial business continuity. With an attempt to provide the local society with a wide range of cuttingedge technologies that would enable continued business operations, people’s connectivity as well as educational and public services functionality, stc ensured hiring specialized ICT talents to enhance the team’s capabilities and capture business opportunities.

Throughout the tough operating environment, which was forced by the COVID-19 crisis during FY2021, stc was keen on leveraging on the 5G network to support its operational and financial performance through providing the most advanced digital products and services beyond the traditional telecommunication services. stc also ensured updating its business model to meet the tremendous constant growth in the digital communications services by offering integrated technical solutions as well as Driven by stc’s strong position in the Telecom market and our commitment to create value to company’s shareholders, it is privilege to announce unprecedented distributions of cash dividends 60 fils per share and 100% bonus shares for the year 2021 enterprise database solutions that would enable and support the economic and social recovery processes of COVID-19 crisis. This would, in turn, improve stc’s operational and financial performance with a forward looking to achieve performance excellence in the future periods.

Despite the stiff market competition in the telecom sector, stc’s business model’s integration with that of solutions by stc represents a key cornerstone that enabled the company to maintain its strong position in the telecom market as a leader in providing digital solutions. As a result, stc has been better able to cope with the rapid developments of the integrated technical solutions and digital tools on a global scale in addition to supporting the Kuwaiti government to implement the necessary recovery steps through delivering the essential digital products and services for the individual, enterprise, public and private sectors.

Creating shareholders Value

At stc, we are committed to create shareholders value through investing in our capabilities to achieve the desired growth, efficiency in our business environment, and long-term value proposition. stc has extensively relied on its solid corporate strategy, effective business continuity plans and potential growth opportunities to realize long-term growth in sustainable profits and attain good returns that are in the best interests of the company’s shareholders. As we believe in the critical role of our working teams on company’s operational efficiency and effectiveness, stc strives to expand its digital operating framework in the internal working environment aimed at enhancing employees’ productivity and increase their motivation towards working in more digitized areas.

All the way through the recovery phase, stc embraced innovation, monitored developments and worked hard on developing the optimal business solutions that would alleviate the negative repercussions and facilitate the recovery process for the local community.

stc’s 2021 outcomes emphasized company’s strong financial solvency position and the implementation of its flexible strategy. Whereby, stc’s strong performance has been obvious in its operational efficiency, financial stability, and product developments, in addition to its distinct and well-established brand in the telecommunications sector.

With the global gradual recovery from COVID-19 crisis across different sectors, stc managed to achieve a total revenue of KD 296.3 mn, where EBITDA reached KD 79.6 mn with an EBITDA margin of 27%. As a result, stc recorded a net profit of KD 44.9 mn. On the other hand, shareholders’ equity increased by 7% at the end of 2021, reaching a book value of 475 fils per share.

stc’s Board of Directors has recommended distributing cash dividends to respective shareholders of 60 fils representing 60% of the share’s nominal value for the year ended 2021. stc’s Board of Directors has also recommended distributing 100% free bonus shares from the issued and paid in capital by issuing 499,366,852 new shares to be distributed as free grant shares to the shareholders. This recommendation is subject to the approval of the Annual General Assembly.

These results reflect the dedication of stc’s employees and their sincerity in implementing company’s refreshed corporate strategy aimed at empowering stc and distinguishing it among its competitors in the telecom and ICT industries. 2021 results, also demonstrate the efficient role and devotion of stc’s Board of Directors and executive management to improve company’s financial and operational efficiency in order to preserve its market position as a leader in the telecom industry.

With an aim to deliver the best quality and increase customer satisfaction, stc is committed to the continuous update and implementation of our corporate strategy in addition to keeping the corporate’s purpose and values going forward.

Corporate Governance

stc is committed to adhere to the corporate governance rules and regulations issued by the Capital Markets Authority in the State of Kuwait which aims to uphold transparency, protect shareholders value and improve company’s operating environment. In conjunction with all the recent changes imposed by the regulatory bodies. stc ensured applying all laws and regulations that conform to its values and the professional foundations that guide our work to better serve the interests of our shareholders. The corporate governance report in a later chapter of this report outlines our framework in further details.

Corporate Social Responsibility

As a responsible company, stc puts the interest of its customers, employees, suppliers, community and environment, all of which have contributed to the company’s success since its inception in 2008, above everything else. stc’s long history of supporting and contributing to our local community, in addition to expanding its commercial activities and market share demonstrate its dedication to continue to develop high-value, innovative, and highquality products over the long-term. The past two years have witnessed a genuine commitment from stc towards not only improving the local community’s health but also lowering the environmental impact through participating in and initiating a number of activities that contribute to the healthcare, sports, education, and entrepreneurship sectors. With its unceasing focus on adhering to the Kuwaiti government’s rules and regulations, stc’s corporate social responsibility programs are created in the best way to leave a positive footprint on Kuwait’s existing and future generations. Accordingly, stc has been working towards reducing the environmental impact on the local society by collaborating with non-profit organizations such as Trahum Volunteer Team for the biggest cleaning up campaign in Kuwait. stc has also worked with Omnia, one of the largest recycling firms in Kuwait to encourage the internal and external recycling process. Likewise, stc is currently implementing the paperless office transformation process within the company premises and its branches to achieve the entire electronic paperless framework at stc in the near future.

In FY2021, stc found a great opportunity in supporting the Kuwaiti government to fasten the recovery process of COVID-19 pandemic through lending a helping hand to a number of governmental agencies and SMEs, leveraging on its advanced digital services and partnerships with high-tech enterprises.

Appreciation

On behalf of the Board of Directors, I would like to thank His Highness, the Amir Sheikh Nawaf Al Ahmed Al Jaber Al Sabah, H.H. the Crown Prince Sheikh Meshaal Al Ahmed Al Jaber Al Sabah, H.H. the Prime Minister Sheikh Sabah Al Khalid Al Sabah his distinguished government for their continued support to the telecommunications sector, which puts our precious country on the map of the advanced and developed countries in the field of telecommunications.

I would also like to express my appreciation and gratitude to all stc family members for their significant efforts, dedication, and great sacrifices during 2021. Furthermore, I would like to highlight their ongoing enthusiasm and dedication to making stc a fascinating successful company during a time when the global economy has been greatly impacted. I would like to thank our loyal customers in particular for their continued trust in stc, which motivates us to provide the best services of the highest quality possible. Our heartfelt gratitude to our valued shareholders for their ongoing support and confidence in us.

Dear Shareholders,
2021 was a year full of extraordinary operational and financial achievements for stc, in spite of the stiff working environment imposed by the COVID-19 crisis on the Kuwaiti telecommunications market, which in turn demonstrated its resilience and flexibility in addressing economic risks. stc has also updated its business model and strategy to meet the continuous and massive growth in the digital communications services. Accordingly, stc is committed to provide integrated technical solutions and corporate database solutions that would enable as well as support the economic and social recovery process of the COVID-19 crisis. This would, in turn, enhance stc’s operational and financial performance, with the aspiration to achieving an outstanding performance in the coming periods.

The recent amplified trend and global shift towards digital transformation have increased the reliance on digital products and services while maintaining open communication channels across various business sectors worldwide. These significant events have led to a strategic shift in stc’s operating model and highlighted the importance of sustaining a strong telecom infrastructure capable of delivering vast digital solutions that enable businesses to maintain their operations remotely and cater to their customers’ needs. Since then and with the spread of COVID-19 pandemic, telecom services and digital solutions have become a critical component of the gradual road to normalcy with the initiatives taken by the Kuwaiti government, local society and businesses to adopt the digital technology.

Driven by the enormous need for adopting a digital culture, stc found itself at the brim of a rapidly changing world and was quick to realize the necessity of implementing its business continuity plan to continue providing pioneering digital solutions and telecom services to its customers. stc’s digital transformation strategy that has been developed and implemented over the past few years was a key success factor that aided the company in its numerous contributions to the local economy and government initiatives adopted throughout and post COVID-19 crisis.

Recovery Strategy

Throughout the COVID-19 pandemic, the strategic steps we took to preserve stc’s competitive and empowering working culture were essential in getting us to where we are today. One of the main functions executed by stc to maintain its communication and operation lines was implementing our three-level business continuity plan. This was based on adhering to three scenarios that would facilitate controlling the tough operating environment, protect stc’s customers and employees through enforcing social distancing and maintain all Company’s operations during the lockdown period via remote working.

In response to the gradual return to normal life plan executed by the Kuwaiti government, stc was keen to refresh its corporate strategy to cope with the sudden economic and societal changes in addition to expediting the recovery process. In this regard, stc have embraced the necessary developments within its own digital transformation journey to instill a performance driven culture that is built on efficiency. Hence, we have Our unique and smart strategy was the main driver of stc’s outstanding operational and financial performance supported by the continuous progress and strategic growth in the ICT market and B2B segment automated all the internal and external processes, which have proven to be resilient during the most difficult times.

stc has found an opportunity to enhance its operations, reputation and market position in the recovery period of COVID-19; whereby, it paved the way towards implementing an internal and external transformation aimed at supporting the local society, economy and environment. Shaping stc’s recovery process by utilizing the optimization resources consumption, mobility in operations and environmental impact reduction has helped the Company to build a resilient financial and operational recovery. This, in turn, has helped stc to exploit the arising business and economic opportunities to best execute its digital transformation strategy, enrich the customer experience and achieve its short, medium and long-term strategic goals.

The Digital Future and beyond

The recovery period is witnessing an upward shift towards digitization aimed at immunizing enterprises against future catastrophic events. As a result, digitizing businesses has now become a critical aspect in this digital age, especially after the transition that most companies are experiencing to keep pace with the latest technological innovations. This, in turn, represents a promising future for telecom operators to capitalize on their advanced infrastructure to provide the next generation with a range of sophisticated, finest and latest comprehensive digital services and products that will strengthen the customer experience.

In view of that, stc continuously strives to accelerate vertical transformation by constructing advanced Business Support Systems tailored to fulfil a wide range of industry transformations and business model requirements. This reflects our commitment to fulfill the needs of startups, SMEs, and larger enterprises by offering flexible, scalable, guaranteed, and reliable solutions that showcase the strength of our 5G network and ICT integrated solutions. In 2021, stc was able to provide a wealth of solutions and services to corporate and individual customers through the use of its 5G network. This was supported by the ease of access and fast speeds the technology possesses, which opens the doors for the company to a wide range potential opportunities in terms of accessibility, innovation, and expanded network services. Hence, the 5G revolution has redefined the way we connect to the world and has contributed in enhancing the level of services and solutions we can offer our customers.

In line with the digital transformation that shall play a great role in the future of stc, the Company has been focused on investing in its digital marketing arena since the onset of COVID-19 pandemic, being one of the most critical aspects of uplifting Company’s leadership and distinguishing it from its competitors. Accordingly, stc has set up a huge transformation journey to cater customer needs and enrich their experience, which was highlighted in company’s Corporate Strategy ‘AHEAD’. By leveraging on our experience and expertise, we will continue to set our sights moving forward on meeting the needs of our individual customers in a way that empowers and enriches their lifestyle, while assisting our corporate customers in achieving the diverse objectives under their unique digital transformation strategies.

Financial Performance of 2021

Despite the stiff competition in the Kuwaiti telecom market post the recovery period of COVID-19 crisis, stc was able to achieve good financial results that meet the aspirations of the company’s shareholders during the current circumstances and intense competition. Whereby, stc’s total revenue grew by 4.6% to reach KD 296.3 mn in 2021, compared to KD 283.2 mn last year. This increase is mainly attributed to the services and smart packages that are created to meet most of the individual sector’s needs, in addition to the growth in the enterprise sector through the implementation of the digital transformation strategy and providing integrated technical solutions to the private and government sectors. stc also ensured pushing its business into new areas of sustainable growth through a series of innovative initiatives aimed at upgrading the operational efficiency and delivering the best in-class services and products that cater to customers’ needs and meet their anticipations in light with COVID-19 crisis and its consequences. This was accompanied with stc’s support to business operations through its advanced infrastructure with the best and widest coverage of the 5G network.

These outcomes resulted in the growth of EBITDA by 8.5% in 2021 compared to 2020. Whereby, EBITDA margin reached 27% during the year ended in 2021. As a result, the company’s net profit during the FY2021 recorded a growth of 40% to reach KD 44.9 million (earnings per share 90 fils) with a net profit margin of 15%. stc’s customer base reached approx. 2.0 million customers at the end of December 2021.

At stc, we are working on implementing a balanced cost-efficiency policy to achieve the best results and enhance profitability through adopting effective financial plans to direct our operational and capital expenditures. Whereby, stc was able to structure its capital expenditures, especially after the negative impact of the current economic crisis, to ensure liquidity of its cash flows under the current circumstances. stc’s financial results throughout FY2021 also reflected its competitiveness and strengthened its position as the second largest telecommunications company in terms of its market share of revenue in the Kuwait telecommunications sector with a market share of approx. 36%.

Capturing Business opportunities

In addition to having several successful milestones that reflected our position as a pioneering telecom and digital solutions provider, this year, stc achieved a great achievement embodied in receiving the approval from the Communication and Information Technology Regulatory Authority’s (CITRA) to launch the first-of-itskind mobile virtual network operator (MNVO) license to launch Virgin Mobile Kuwait in partnership with Virgin Mobile Middle East & Africa. The license will permit Virgin Mobile Kuwait to operate using stc’s network, with stc acting as a Host Facilities Based Provider “FBP” with Virgin Mobile Kuwait, offering prepaid plans to users, and making it the first virtual telecom service in the country.

ICT Expansion

In alignment with its corporate strategy of expanding its activities to shift from providing traditional telecommunication services to a variety of digital services as well as advanced integrated communications information solutions and advanced technical solutions, stc announced signing a binding offer to acquire 100% of the share capital of e-portal Holding Company and its subsidiaries. The acquisition of e-portal – one of the most prominent companies in the ICT field, is aimed at strengthening stc’s internal ICT capabilities in line with the recent rapid global developments.

Driven by the key pillars of stc’s corporate strategy which focuses on harnessing the Company’s expertise to provide the most advanced digital solutions, merging the ICT division of stc with e-portal is considered an integral opportunity for both companies to expand their scope of work and share expertise between their teams. This would allow stc to exploit the potential growth opportunities arising in the enterprise sector, develop its scope and share the required expertise necessary to support the digital transformation process in the State of Kuwait.

Accordingly, this acquisition will be the corner stone that would support stc to provide the necessary infrastructure in order to develop its ICT portfolio backed by our current capabilities. Whereby, stc will continue to provide the best services, products and solutions to exceed the expectations and requirements of our enterprise and corporate customers.

Human Capital Development

At stc, we continue to invest in our people, the cornerstone of our operational excellence and solid financial performance. stc ensures taking the necessary steps to develop the capabilities of its employees, empower them and support their determination to do their best at diverse working environments and under different circumstances. Throughout 2021, and in line with Company’s corporate strategy, stc was committed to offer its employees with a flexible working environment throughout 36 CEO Statement CEO Statement 37 the recovery period of COVID-19, to maintain their wellbeing, safety and dedication. This was manifested in implementing the structured rotation between employees within each department across all Company’s sectors while providing them with the latest training courses for a better progress. Devoting the performance culture across employees reflect stc’s keenness to take a proactive position in leading the way to build a robust and effective workforce that would contribute to the future generation. As part of stc’s commitment to support the Kuwaiti employment program «Kuwaitization» aimed at increasing the indigenous participation rate in the private sector, we have placed the Kuwaiti employment replacement program as one of the main pillars of our human resources strategy. Whereby, the Kuwaiti employees at stc reached 63% of company’s total employees by the end of 2021.

Appreciation and Gratitude

In conclusion, I am pleased to express my gratitude and thank our valued customers for their loyalty and confidence in stc, which has enabled us to achieve these results despite the difficult times we faced due to the COVID-19 crisis. Furthermore, I would like to thank the Board of Directors, Executive Management, stc family members and partners for their contributions in achieving this remarkable operational performance through their outstanding teamwork. I would also like to shed the light on their contributions to company’s success during these difficult and unprecedented times through their cooperation, enthusiasm, dedication and continued support. This, in turn, has paid off with the fact that stc is now at the forefront of the most innovative digital communications services providers. Through your support and our productivity in implementing company’s new strategy, transformation plan and investment activities, we are confident that stc will be able to move forward in achieving its future goals.

Dear shareholders,
stc delivered excellent results throughout the FY2021 due to our commitment to continuously provide a wide range of new products and services enabled stc to overcome the economic distortions caused by COVID-19 crisis and all the subsequent consequences. With the persistent fear resulted from uncertain economic and health crises as well as increasing demand on digital products and services, stc ensured implementing an appropriate pricing system to maintain good levels of profitability margins. This will allow stc to obtain a competitive edge and sustain its dominance in the Kuwaiti Telecommunications market.

Driven by stc’s commitment to exceed customers’ expectations during critical situations as well as harsh economic and market conditions, we strive to invest in our key areas to maintain a high-level cash flows and strong solvency position, optimize our operational performance, better allocate our capital investments and strengthen company’s position in the enterprise segment. stc has also updated its financial strategy during 2021 in line with its corporate strategy besides taking the necessary actions in order to stand ready for any unprecedented events that would occur in the future, which may have a negative impact on the operational and financial performance of the telecommunications sector.

Throughout the continuous global fear of fluctuating market and economic conditions, many companies are still suffering the repercussions of the COVID-19 crisis. This crisis has been a turning point for many companies to move more towards digital solutions than ever before, to keep pace with the global trend towards digitization and to prepare for unprecedented events without impeding their operations. In this regard, stc has found an opportunity in allocating its investment decisions in providing ultimate innovative B2B solutions, backed by the 5G network, to achieve the highest levels of operational efficiency that would allow the company to realize good financial indicators and meet shareholders’ expectations.

With the fierce competition in the telecommunications and ICT sectors that created the need for integrating ICT services in business solutions with the traditional telecommunication services provided for the B2B segment, the telecom sector witnessed a trend towards mergers, acquisitions and/ or partnerships between telecom operators as well as digital solutions and ICT services providers, on a global level. Consequently, since the onset of COVID-19 pandemic, stc has been exploring and seizing potential opportunities to support its financial performance through adopting a successful business model which has been implemented in our subsidiary solutions by stc. This was mainly driven by stc’s corporate strategy which focuses on digitization, harnessing business opportunities and enabling the digital transformation in Kuwait. Accordingly, stc signed a binding offer to fully acquire the share capital of e-portal, one of the prominent ICT players in Kuwait with a reputable image and solid customer base of the enterprise segment. Additionally, followed by the significant impact on company’s financial and operational performance, stc strives to uphold on its cost optimization program to better distribute its capital expenditures and direct its investment decisions towards new areas of sustainable growth.

With an aim to achieve company’s 2021 corporate strategy, which has been updated to keep pace with the latest developments in the ICT and Telecommunications market, stc has not only considered incorporating the industry’s best practices, but it also ensured maintaining the highest level of transparency with the current and potential investors, in addition to applying the corporate governance principles across all company activities. stc’s ranking as the 1st Leading Corporate for Investor Relations in Kuwait and amongst the top 5 companies in the Middle East, demonstrates its great efforts in fulfilling the needs of the investment community in an efficient, transparent and timely manner to meet the global best practices in this field.

Solid Financial Performance

stc witnessed various events impacting stc’s operational and financial performance. The increased demand for the traditional communication and digital services enabled stc to sustain the revenue growth by leveraging on its 5G network’s capabilities and efficiency. Despite the Omicron virus outbreak during the fourth quarter of the FY2021 which forced the government to re-impose additional restrictions and regulations on the local community, stc was able to maintain both its strong financial position and performance during 2001 which were reflected in achieving good levels in its revenue, EBITDA, EBITDA margin and net profit.

Throughout the current crisis, stc reported excellent consolidated financial results for the year ended 2021. Driven by the high demand on data services and digital platforms especially from the enterprise segment, stc’s revenues grew by 4.6% to reach KD 296.3 million at the year ended 31 December 2021. This increase is mainly attributed to the Company’s outstanding performance and its flexible strategy. On the other hand, despite the high marketing and sales costs due to stiff market competition, the exceptional efforts of company’s working teams significantly contributed in driving stc’s business efficiency which was demonstrated in its good EBITDA results which grew by 8.5% to reach KD79.6 million in 2021 compared to KD 73.4 million in 2020. Whereby, stc’s EBITDA margin reached 27% in 2021 compared to 26% in the previous year. Thus, the net income reached KD 44.9 million (earnings per share 90 fils) in 2021 compared to KD 32.1 million (earnings per share 64 fils) in 2020, as the financial impact of litigation had a significant impact on this growth in 2021.

Driven by the extensive demand on digital and ICT services, stc was keen on maintaining a well-developed and upgraded 5G infrastructure to provide better products and services for its customers. Whereby, company’s total capex spending reached KD 27.4 million over the year, representing 9% of stc’s total revenue in 2021, compared to KD 26.2 million representing 9% of stc’s total revenues in 2020. On the other hand, stc’s total assets reached KD 393.8 million. In addition, company’s total shareholders’ equity grew by 7% reaching KD 237.2 million, with a book value of 475 Kuwaiti fils per share. It is worth highlighting that one of stc’s competitive advantage is having a strong solvency position among its peers in the MENA region, were the debt to equity ratio reached 0.02x by the end of 2021, which is considered low compared to the industry average.

Financial Strategy

Since inception, stc has been always keen on directing its financial resources by all means that would cater customers’ needs, exceed their expectations and create value to its shareholders. Therefore, stc ensures investing in its human capital, being the infrastructure of company’s operations and outstanding performance. stc has also invested heavily in its strategic business units and internal capabilities to provide a wide range of products and services while maintaining its cost optimization framework to increase Company’s efficiency. In this regard, stc is currently keen on enhancing its IT infrastructure further by hiring the top expertise in the ICT sector besides harnessing the business, professional, service delivery and project management capabilities in order to develop new business models that will aid the company to enhance, produce and provide comprehensive enterprise database solutions.

Driven by the outstanding performance of solutions by stc - Company’s specialized arm in providing digital solutions to the enterprise sector - stc was determined to refresh its financial strategy and align it with the overall corporate strategy around smart investments in potential market opportunities. This is aimed at expanding stc’s operations and elevating its performance in the ICT sector following the current excessive demand on IT systems and solutions, IoT, cloud computing, big data, storage as well as security services which amplified the competition in the telecommunication and ICT industries.

For that reason, the acquisition of e-portal would enable stc to provide the most advanced integrated technical solutions in addition to serving the latest corporate and individual needs for the digital tools. Besides the operational outlook of expanding its presence in the Kuwaiti Market, this is likely to positively impact stc’s financial performance and market share through providing innovative, scalable and diversified technological and IT communications solutions to support the global growing demand for the ICT services. stc is delighted to own a specialized arm in providing ICT digital solutions under the umbrella of four well-established subsidiaries. Proudly stated, this is considered the first step taken towards achieving stc’s main objective of leading the ICT market in Kuwait.

Moving Forward

stc is committed to provide its valued customers with the best in-class products and services. We seek to harness potential opportunities to offer a large basket of ICT products and services to the enterprise sector. In the current worldwide stressful economic conditions, stc will continue to expand its products offerings to support its enterprise arms and deliver a better value to its customers and shareholders. In line with our AHEAD strategy and driven by our healthy cash position at the FY2021 of KD 65.2 million, hunting similar strategic potential value-creating digital opportunities in the near future represents an integral part of our outlook and daily operations. With an aim to sustain our leadership position in the Kuwaiti telecom market and align the recent M&A activities with our organizational structure, stc will hold onto investing in its human capital, internal processed and the latest technological advances as means of lifting up company’s efficiency and strengthening its core activities.

Throughout the pandemic, stc’s proved its resiliency which was reflected by its efficient supply chain and inventory management processes. From a future perspective, stc looks forwards to maintain a healthy cash flow position while investing in the digital platforms, creating strategic partnerships with digital providers and spending on its R&D function to provide the best-in-class services to its customers, individuals and enterprises.