SAUDI TELECOM COMPANY ANNOUNCES ITS DIVIDEND POLICY STARTING FROM Q4 2018.

Element List	Explanation
Announcement Detail	Saudi Telecom Company-STC (the company) announce that the Board of Directors of Saudi Telecom Co., in their meeting held on 16/12/2018, has approved the company's dividend policy for the next three years starting from the 4th quarter 2018. The dividend policy as approved by the board of directors remains subject to the ratification in the next General Assembly Meeting which will be announced later. The objective of the dividend policy is to maintain a minimum level of dividend per share on quarterly basis. Dividend distribution for the next three years will therefore be in line with this dividend policy. The dividend policy as follows:

Element List

Explanation

Announcement Detail

Saudi Telecom Company-STC (the company) announce that the Board of Directors of Saudi Telecom Co., in their meeting held on 16/12/2018, has approved the company's dividend policy for the next three years starting from the 4th quarter 2018. The dividend policy as approved by the board of directors remains subject to the ratification in the next General Assembly Meeting which will be announced later. The objective of the dividend policy is to maintain a minimum level of dividend per share on quarterly basis. Dividend distribution for the next three years will therefore be in line with this dividend policy. The dividend policy as follows:

STC commits to pay a fixed minimum dividend of a SR 1 per share per quarter. Further, the company will consider and pay additional dividend subject to the Board approval after assessment and determination of the Company's financial situation, outlook and capital expenditure requirements. Additional dividends are likely to vary on quarterly basis depending on the company’s performance.

The dividends policy will remain subject to:

1. Any material changes in the strategy and business of the company (including the business environment it operates in).

2. Laws and regulations that are applicable on the company.

3. Any banking, other funding or credit rating covenants that the company may be bound to follow from time to time.

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.