CFO’S REVIEW

Revenue grew by 8.6% year-over-year, rising from % 16.8 billion in 2023 to % 18.2 billion in 2024. This growth was driven by strong contributions across all segments, particularly the Business segment, which remains a key enabler of the Kingdom’s digital transformation. Notably, the Wholesale segment achieved double-digit growth supported by a series of deals aimed at enhancing network performance, while our strategic efforts to meet the needs of our diverse customer base led to a healthy expansion in our subscriber base, driving consistent growth in the Consumer segment. Our industry-leading EBITDA margin also remained robust at 39.5%, with EBITDA increasing by 8.6% from % 6.6 billion to % 7.2 billion, reflecting enhanced operational efficiency and healthy margins that are sustainable over the long-term.

Our focus on efficiency, deeply embedded in Mobily’s DNA, continued to yield results through digitalization, investments in infrastructure and disciplined cost management. These efforts have enabled us to maintain strong liquidity and generate a robust cash flow from operations, providing the agility to reinvest in growth and reward our shareholders. Free cash flow (EBITDA-CAPEX) grew by 7.2%, reaching % 4.6 billion, reinforcing our ability to balance investments, shareholder returns and operational requirements.

For the first time in 10 years, we resumed interim dividends in 2024, increasing total payouts for the year by 51.7% to % 2.20 per share. Additionally, earnings per share rose significantly to % 4.0, marking an impressive 39.2% increase from % 2.9 in 2023, further underscoring the strength of our financial strategy and operational execution.

The Evolving Saudi Telecommunications Market

Saudi Arabia’s telecommunications sector continued to experience significant transformation throughout 2024, driven by Vision 2030’s emphasis on digitalization, economic diversification and connectivity enhancement. The competitive consumer landscape evolved further, with increased appetite for digital solutions, rising 5G adoption and higher data usage. Mobily successfully navigated this dynamic market by focusing on high-value customers in the postpaid segment, prioritizing customer experience and delivering tailored solutions that align with changing consumer demands.

In the business-to-business space, competition remained robust, with Mobily maintaining its differentiation through a strong emphasis on quality of service and customer experience. These efforts resulted in topline growth and improved efficiency, solidifying Mobily’s position as a trusted partner for businesses. The Wholesale segment also presented opportunities for growth, with Mobily expanding its footprint to meet the increasing demand for advanced connectivity solutions.

Increased tourist activity, driven by the Hajj and Umrah visitors and broader tourism trends, emerged as a key growth area within the Consumer segment, creating opportunities to expand Mobily’s tailored services. Additionally, partnerships with the Government to support giga projects and the Kingdom’s digital transformation initiatives reinforced Mobily’s role as a critical enabler of national infrastructure and innovation. Mobily continued its strong focus on empowering small and mediumsized enterprises (SMEs) and fintech companies, offering advanced connectivity solutions and supporting their growth. The success of Mobily Pay highlighted its strategic importance in the digital payment space, with plans to expand its market share and further enhance its offerings with unparalleled customer experience.

Through these strategic efforts, Mobily remained at the forefront of the Saudi telecommunications market in 2024, leveraging its strengths in customer focus, innovation and partnerships to drive growth across consumer, enterprise and government segments while supporting the Kingdom’s Vision 2030 aspirations.

Strategic Execution that Empowers Transformation

During 2024, Mobily advanced its financial strategy to align seamlessly with the Company’s broader 2023-2027 vision. This transformation is guided by 4 strategic pillars: accelerating growth and enhancing operational efficiency, adopting a Stakeholder-focused approach, rethinking processes for a seamless experience, and fostering talent capabilities and well-being. Through this framework, we aim to enable sustainable growth while supporting the Kingdom’s Vision 2030 objectives.

We made significant progress by expanding our infrastructure, targeting high-potential growth segments, and capturing opportunities across government, corporate, SME and individual customer bases. By powering their digital transformations and providing innovative access to the modern economy, Mobily reinforced its position as a trusted enabler in Saudi Arabia’s evolving digital landscape.

Sustainability remains a key priority, as demonstrated by our notable advancement in ESG ratings, and the integration of sustainability principles across operations. With a long-term vision, we continue to embed ESG considerations into our strategy and execution, ensuring Mobily contributes meaningfully to the Kingdom’s economic transformation and global leadership in sustainability. By executing on these priorities, Mobily is accelerating growth and delivering value while also laying the groundwork for a more sustainable and connected future, all while empowering our clients and Stakeholders while advancing our leadership in the telecommunications sector.

Focused Investments Drive Long-Term Growth

Mobily’s commitment to strategic growth is reflected in our consistent focus on capital expenditure (CAPEX), while delivering strong returns for shareholders. CAPEX increased by 11.2% year-over-year to reach % 2.6 billion, representing a CAPEX-to-revenue ratio of 14.2%. This growth underscores our dedication to enhancing customer experience, advancing digital infrastructure and fostering innovation to meet future demands.

Investments were strategically allocated to accelerate connectivity through the expansion of our 5G network, IoT infrastructure, data centers and submarine cables. These initiatives serve to enhance network quality and coverage, positioning Mobily as a leader in the telecommunications landscape.

We also continued to deleverage our balance sheet this year, achieving a substantial reduction in the Company’s debt balance. Compared to 2023, we successfully reduced our debt portfolio by over % 2.0 billion, bringing the total gross debt to % 9.6 billion in 2024. A key component of this success was the full repayment of our % 5.3 billion syndicated loan, improving our financial flexibility. This was achieved through a combination of proactive measures, including a refinancing agreement with Saudi National Bank, which secured favorable terms and competitive interest rates, and the strategic deployment of % 1.6 billion of our cash balance, reflecting our strong financial position and flexibility.

Overall net debt declined by 19.2% year-over-year to % 6.4 billion, reflecting our long-term financial strategy and disciplined approach to cost management. Earnings growth further supported a significant improvement in our net debt-to- EBITDA ratio, which decreased to 0.89x, compared to 1.20x at the end of 2023.

Mobily’s enterprise value increased for the sixth consecutive year, a testament to our commitment to generating sustainable value for shareholders. This remarkable achievement, combined with significant CAPEX investments, debt reduction, free cash flow growth and increased shareholder returns - all accomplished within the same year - showcases our financial strength and strategic execution. Investments in infrastructure and digital capabilities have strengthened our foundation for long-term growth. With continued strong returns on equity and efficient capital allocation, Mobily is well- positioned to lead the market while driving innovation.

Looking Forward to 2025

As we look to 2025, Mobily is poised to build on its strong foundation and deliver another year of sustainable and healthy growth across all segments. Our focus remains on driving topline growth, increasing market share and expanding our customer base while maintaining robust margins and delivering bottom- line results. By prioritizing efficiency and innovation, we are committed to creating long-term value for our shareholders and driving enterprise value in alignment with our strategic goals.

Key to our vision is continued investment in infrastructure and human capital to enhance customer experience and stay at the forefront of technological advancements. From expanding our 5G reach and coverage to innovating with artificial intelligence and data monetization, we aim to provide cutting-edge tools and solutions that empower our customers and support the Kingdom’s aspirations. Partnerships with hyperscalers, manufacturers and other global leaders will further strengthen our capabilities and ensure exceptional service delivery.

Our commitment to sustainability will guide our efforts to integrate environmentally responsible practices across operations, ensuring we create a positive impact while meeting shareholder expectations. Additionally, through strong cash flow management and disciplined investment, we are determined to deliver healthy returns on investment and equity, ensuring continued confidence from our shareholders. As we continue to enable government partnerships, giga projects, SMEs and other key sectors, Mobily remains steadfast in driving Saudi Arabia’s digital future and contributing to the Kingdom’s economic transformation.