Ataa Educational Co. announces its Interim Financial Results for the Period Ending on 2022-01-31 ( Six Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	133,984	63,188	112.04	140,428	-4.588
Gross Profit (Loss)	23,928	16,664	43.59	39,757	-39.814
Operational Profit (Loss)	11,867	11,623	2.099	25,952	-54.273
Net Profit (Loss) after Zakat and Tax	1,476	6,391	-76.905	66,252	-97.772
Total Comprehensive Income	1,476	6,646	-77.791	66,252	-97.772
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	274,412	124,414	120.563
Gross Profit (Loss)	63,685	30,372	109.683
Operational Profit (Loss)	37,819	21,482	76.049
Net Profit (Loss) after Zakat and Tax	67,728	11,307	498.991
Total Comprehensive Income	67,728	11,715	478.13
Total Share Holders Equity (after Deducting Minority Equity)	772,469	720,764	7.173
Profit (Loss) per Share	1.7	0.28
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The decrease in net profit for current quarter compared to the same quarter of the previous year is due to:

1- Revenues has been increased by 112% compared to last year, facing an increase in the operational cost by 137% as a result of adding the acquired companies (Al Wasat National Schools Company for Education and Training – Al Elm International Schools Company - The Arabian Group for Education and Training Holding Company) and the return of the physical attendance or students, which resulted in an increase in the number of students by 15 thousand Student compared to last year,It is worth noting that the increase in revenues by a percentage less than the increase in costs is due to the nature of the revenue proving of the Creators of Development Company for Rehabilitation (employment sector) and the Al-Faisal International Academy for Training Institutes Company (training sector) of the Arabian Group acquired this year, That is because of the different nature of proving the revenue in the recruitment sector and the training sector is characterized by seasonality in proving its revenues which are concentrated in the summer months (May, June, July, and August) .

2- Administrative expenses has been increased by 145% compared to last year

This is as a result of the consolidation of the financial statements with the acquired companies this year (Al Wasat National Schools for Education and Training Company - Al Elm International Schools Company - The Arabian Group for Education and Training Holding Company).

3- The increase in financing costs by 103% compared to last year due to the borrowing related to the purchasing of Al-Elm International Schools, the Arabian Group for Education and Training, as well as the consolidation of the financial statements with them.The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is The decrease in net profit during the current quarter compared to the previous quarter is due to:

1- The decrease in revenues by 4.6 % due to Giving additional discounts during the second quarter.

2- Operational expenses has been increased by 9% as a result of the increase in the item of salaries and wages by 13% from the previous quarter and due to the decrease in the item of salaries and wages for the month of August due to the dates of teachers' return from their vacations.

3- Proving profits resulting from the acquisition of the Arab Group Company, amounting to 52.5 Million Saudi Riyals in the previous quarter, as these profits are non-recurring ( Disclosure No. 11).The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is The increase in net profit for current period compared to the same period of the previous year is due to:

1- Revenues has been increased by 121% compared to last year as a result of an increase in the number of students by 56% from 25,000 to 40,000 students resulting from the acquisition of (Al Wasat National Schools for Education and Training Company - Al Elm International Schools Company – The Arabian Group for Education and Training Holding Company) despite of the increase of operational cost by 124%

2- The return of the physical attendance of students for the intermediate and secondary department and the consequent cancellation of the value of discounts for distance education.

3- Other Revenue increased by 141%, due to the consolidation of the financial statements with the acquired companies.

4- Non-recurring profits resulting from the acquisition of The Arabian Group for Education and Training Company, amounting to 52.5 million Saudi Riyals

(For more details, please refer to disclosure No. 11 in the financial statements)Statement of the type of external auditor's report Unmodified conclusionModification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion There is no notesReclassification of Comparison Items There is no notesAdditional Information We would like to draw the attention of the shareholders that the condensed consolidated interim financial statements for the current half ending on January 31, 2022 will be available on Ataa Educational Company website

at the following link

ataa.sa

After sending it to the competent authorities, the company also wishes to draw the attention of the financial analysts and investors to send their inquiries about the results of the midterm business to the company's email

ir@ataa.sa

within 10 days from the date of publishing the financial statements.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.