2P is leading this national evolution through the innovation of advanced digital services and products specifically designed to facilitate the acceleration of the Kingdom of Saudi Arabia's digital economy. Pursuant to the provisions of the Companies Act and the Company's Bye-laws, the Board of Directors is.
A Breakthrough Year
Our growth story
In a year of historic milestones, 2P accelerated its growth trajectory and closed the year as
Our IPO
Our national contribution Our future role
Theme of the Year
Maximising Returns
Strategic Review
Net profit
Revenue
The company's mid-term product development approach will seek to capitalize on its deep understanding of the Saudi ICT market. I would like to thank the members of the Board of Directors whose efforts have proven so essential to the completion of a ground-breaking IPO.
In a landmark year that saw an outstanding return on equity and
I would like to extend a warm welcome to all our shareholders to the presentation of the annual report of the Board of Directors for the financial year 2022. These core principles are a testament to the deep operational expertise of the company's management team and the undoubted success and popularity of its products and company services. While much of the rest of the world grappled with geopolitical and economic uncertainties in 2022, the fast-moving economic development of the Kingdom of Saudi Arabia presented numerous opportunities for international suppliers.
Finally, on behalf of the Board of Directors, I take this opportunity to express my sincere gratitude to the legislators for their support and guidance in ensuring that the Company's public offering was such a success.
59% Market value
In the context of the rapidly growing ICT sector in the Kingdom of Saudi Arabia, 2P successfully achieved revenue growth and the largest backlog in 2022. As a new company listed on the Saudi Stock Exchange, 2P is proud to have contributed to the enrichment of the Kingdom's capital markets with a market capitalization of SAR 2.775 billion at the time of listing. In addition, it enables 2P to maintain and improve its position as the leading ICT company in the Kingdom.
The Kingdom of Saudi Arabia is moving through a truly transformative moment in its national story, and through our partnerships with some of the Kingdom's most exciting giga-projects, we have been fortunate to play a formative role in the development of many key developments.
Chairman’s Statement
In the coming months and years, 2P will continue to do all it can to create opportunities for Saudi innovators and economic players in national value chains. Partnerships with national and international innovators have also supported in-house product development over the past few years, leading to the launch of two transformative new products in 2022. Perfect Engage is a high-value enterprise communications application years in the making that has been launch extremely well received.
As we look to secure further growth, the company's strong digital capabilities and scale will enable it to offer its clients advanced, end-to-end bespoke solutions that meet their immediate and long-term needs.
Through historic growth across all three lines of
CEO’s Message
Backlog
In 2022, 2P delivered
CFO’s Review
Software Development Unit
Operation and Maintenance Unit
Customer Experience Unit
Business units
Financial future
Company performance
Comparison of business results
The impact of the main line of business on the Company’s results
Geographical analysis of the Company’s revenuesCompare assets and liabilities
Furthermore, the strength of the Company's performance - and its investor proposition - is firmly underpinned by its proven role as a leader in the development of UK ICT products and services. 2P has also established a significant role in developing the Kingdom of Saudi Arabia's digital economy and deploying truly game-changing digital solutions for numerous mega Saudi Government projects. The listing now allows the company to take advantage of preferential bidding opportunities for government projects in multiple vertical markets, including defense, healthcare, education and other government entities and projects.
The move also gives the company a mandate to drive its future growth in line with market demands and enables it to maintain and enhance its position as a leading ICT company in the Kingdom of Saudi Arabia.
Investment Case
Founded in 2004, 2P has rapidly established its position as a leading, trusted provider of comprehensive, integrated information and communication technology (ICT) services.
A historic opportunity
Reasons to invest
Highest-ever backlog
Business Model
Software 1
Development
Operation and Maintenance
Customer 2
Experience
Inputs
Outputs
Key activities
Value proposition
How We
Create Value
Revenue streams
Customer relationships
Strategy and KPIs
Our philosophy
Our strategic pillars
VISION
MISSION VALUES
2P's Board of Directors, its subcommittees and the Executive Board set risk standards, evaluate them and manage them, as well as monitor and establish controls that reduce any operational risks, in order to create a professional and effective working environment in Risk Management. 2P has achieved this by developing and operating the Risk Management framework that determines the process and identifies tools to realize its objectives. A central Risk Management framework has been established to simplify the identification and analysis of all risks in 2P, enabling informed decision-making to support business results and overall business risk management.
Risk Management
Overview
Risk Management framework
Risk Management highlights/achievements
Risk Vulnerability
A company's past success and its future success depend to a large extent on its ability to recruit and retain highly qualified IT personnel. The financial and strategic importance of a company's customers can make it a target for criminal attacks and cyber espionage. In addition, the pricing policy of the company's competitors may adversely affect the company's financial position.
A decrease in demand for the Company's products for any reason would adversely affect the Company's financial results.
Business Review
With a heavily oversubscribed listing, SAR 2 billion backlog and historic
Through this and the implementation of its new competencies, the unit has increased overall satisfaction and increased the delivery success rate. This important work led to 2P being recognized with the Best Customer Service Award at the 2022 edition of the International Customer Experience Awards (iCXA). By leveraging its existing services and its strong position in the market, 2P is very well positioned to benefit from the Kingdom of the Netherlands.
The customer experience was also enhanced through 24/7 operations for 110 active projects around the Kingdom, in addition to workshops and the rollout of five mobile units in all regions of the country.
New product lines
The Company's newly developed Contracting Business ERP product was launched in 2022, offering organizations a suite of software solutions that automate the business operations of the contracting business from lead to collections. With a workforce of more than 4,000 people, the Company's employee attraction, training, development, welfare and retention is an integral part of its operations. The Company's very high Saudization and gender diversity metrics led to the awarding of Platinum status by the Government Ministry of Human Resources - the highest possible category for diversity and Saudization.
This gives the company long-term resilience in an increasingly competitive and fast-growing ICT sector.
Localisation
Furthermore, with a significant proportion of the workforce working within research, development and product development, 2P's sustainability as a business relies heavily on talent. 2022 focused heavily on Human Resources to support a rapidly growing volume of contracts and a growing backlog. The localization regulations require the Company to source from the local talent pool, with varying minimum requirements such as electrical 20%, IUT 30% and overall 70% localization.
Going forward, the company will ease challenges in filling key roles such as programmers in 2023 thanks to the launch of a new talent database launched in November 2022.
Females
This will further support a long-term approach to attracting talent from across the Saudi ICT market and recent graduates.
Human Capital
After the IPO, the company must meet the HR Ministry's localization targets, which have been achieved. The company's goals provide a roadmap for the continued recruitment of new women into senior positions. In addition, the company introduced a new policy to provide employees with access to sports and wellness facilities, including gyms.
One of the main strategic results of 2P is to maximize the value of the stock, achieve the maximum possible profit and protect the assets of the company.
Social Responsibility Policy
The customer is at the center of the company's strategy, with a focus on developing customized solutions and services that meet each customer's unique needs in a way that suits their needs. Furthermore, the company seeks to help its customers achieve an increase in productivity and performance, facilitating its customers. The Company believes that it is the Shareholder's right to receive sufficient information about the Company's results, its strategies and management.
2P is also operationally oriented towards treating all its shareholders fairly without discrimination or prejudice, accepting and openly dealing with shareholder complaints, and involving shareholders in the company's decisions at the general meeting.
Sustainability and Social Responsibility
The company is committed to complying with prevailing and ethical laws, regulations and guidelines, providing the best services and not harming any competing organization. This openness is an integral part of the Company's approach to encourage and motivate every employee to increase their passion for work and bring out the best in them, which helps to achieve the Company's goals. The company seeks to play a positive role in the community, develops programs and identifies the necessary tools to launch initiatives in the field of social work.
The company also works as far as possible to provide direct and indirect support to social and developmental institutions.
Environmental stewardship
The Company's employees also have access to numerous training opportunities that enable them to learn new skills that match the latest technological trends and help them achieve their professional goals. Additionally, the Company works hard to provide a safe, healthy and motivating work environment that supports the health and well-being of employees without prejudice to their obligations to their families. The company not only adheres to all mandated regulatory requirements, but also pursues voluntary activities to improve the living standards of its employees and their families while contributing to the sustainable development of its communities.
As the company moves forward, it is committed to communicating openly and transparently on all matters relating to CSR and environmental, social and governance (ESG) principles.
Social and communities
All employees are guided by accepted rules of conduct and are encouraged to listen to others' opinions with respect so that everyone can make a fair contribution to the decision-making process. Because 2P believes in the crucial role entrusted to private sector companies in the National Transformation Program 2020, 2P generates jobs within its strategic objectives to achieve the objective of the Kingdom's Vision 2030. 2P actively promotes a culture of job security across the private sector through an attractive work environment suited to the ambitions of qualified Saudi nationals.
In addition, the company works with several government agencies to raise awareness of job opportunities at 2P and help young Saudi talent prepare for the world of work in the fast-growing ICT sector.
Governance
- Current and previous positions, qualifications, and experiences of the Board members
- Board of Directors
- Names of companies inside or outside the Kingdom in which a Board member of the Company is a member of their current or previous Board of Directors or one of its Managers
- Board of Directors meetings for the first Board session during 2022
- Committees of the General Assembly and the Board of Directors
- Audit Committee
- Nomination and Remuneration Committee
- Investment Committee
- Executive Management
- Mr. Mohammed Qasim Al Hussain
- Disclosure of Remuneration for Board Members, Committee Members and
Board of Directors Al Amthal Limited Liability Company for Business and Commercial Investment Company Inside Chairman i. The Committee also reviews the Company's interim and annual financial statements before presenting them to the Board of Directors. The Audit Committee has not issued any recommendations that conflict with the decisions of the Board of Directors.
commissions of the general assembly and the board of directors and the board of directors.
Executive Management4. Profit Distribution Policy
- Percentages of profits distributed to Shareholders during the various periods of the fiscal year 31 December, 2022, and the total of these profits
- Remuneration of Board members and Committee members
- Remuneration policy for Board members and Committee members
- Remuneration of the Board members
- Remuneration of the Committees
- Executive Management Remuneration Policy
- Remuneration of senior Executives
- The relationship between the granted remuneration and the applicable remuneration policy
- Business and Contracts
- Transactions with related party companies
- Borrowing
- Statutory payments
- Penalties and violations6.2 Engagement in competitive works
- Financial Obligations
- Major Shareholders and change in equity
- Ordinary General Assembly
- Extraordinary General Assembly
- Percentage of share ownership and its change during 2022 for the Board members and senior Executives, their spouses, and minor children
- Ownership of the Company
- Shareholders of the Company
- Senior Executives
- Table for Shareholders Register requests
- The measures taken by the Board of Directors to inform its members - especially Non-Executives - about the Shareholder’s proposals and notes regarding the Company and its performance
- Most important resolutions of the Board during 2022
- Compliance with the Corporate Governance Regulation
- Notes on 2022
- Acknowledgement of the Board of Directors
The Company's shares, which represent 30% of the Company's capital, on the main market of the Saudi Capital Market (Tadawul). However, his powers have been added to the specializations of the Board of Administration that he will exercise. There is no agreement or arrangement under which a member of the Board of Directors or a senior executive in the company waives any right to profits.
The Board did not decide or recommend the change of the Company's Auditor during the year.
