Elm Co. announces its Annual Consolidated Financial Results for the Year Ended 31-12-2022

Element List	Current Year	Previous Year	%Change
Sales/Revenue	4,606	3,828	20.32
Gross Profit (Loss)	1,886	1,323	42.55
Operational Profit (Loss)	972	615	58.05
Net Profit (Loss) after Zakat and Tax	930	567	64.02
Total Comprehensive Income	913	576	58.51
Total Share Holders Equity (after Deducting Minority Equity)	3,047	2,810	8.43
Profit (Loss) per Share	11.94	7.09
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current year compared to the last year is	The Company achieved a net profit after Zakat of SR 930 million for the year ended 31 December 2022, with an increase of 64.02% (SR 363 million) compared to last year. This increase is due to:

Increase in revenue by 20.32% (SR 778 million), which led to an increase in gross profit by 42.55% (SR 563 million). The increase in revenue resulted from an increase in Digital Business revenue by 49.34% and an increase in Professional Services revenue by 83.14%, this was partially offset by the decrease in Business Process Outsourcing revenue by 20.41%.

On the other hand, there was an increase in operating expenses by 28.96% (SR 205 million) as a result of the increase in the general and administrative expenses by SR 67 million, an increase in the expected credit losses by SR 58.8 million, an increase in the selling and marketing expenses by SR 38.5 million, and increase in the impairment of Intangible assets by SR 36.5 million.

Furthermore, there was an increase in the Murahbah deposit income by SR 32.2 million and an increase in the other income by SR 16.9 million. This was offset with a decrease in the change in fair value of investments through profit or loss by SR 25.1 million and an increase in Zakat expense by SR 11.2 million. Statement of the type of external auditor's report Unmodified opinion Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion N/A Reclassification of Comparison Items Certain comparative year figures have been reclassified to agree with the current year presentation of the consolidated financial statements, with no impact on the comparative year’s results. Additional Information - EBITDA for the year 2022 amounted to SR 1,092 million compared to SR 730 million for the year 2021, with an increase of 49.6%.

- For earning per share calculation purposes, the number of shares for the year 2021 has been adjusted retrospectively due to the capital increase.

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