Title: Announcement regarding issuance of Disciplinary Board Resolution No. (43/2023) Disciplinary Board - (36,37/2023) Authority and imposition of a warning against each of: 1- AAN Digital Services Holding Company, 2- The External Auditor of AAN Digital Services Holding Company For Violating the Listing Rules and Rules of Securities Activities and Registered Persons of the Executive Bylaws of Law No. 7 of 2010 and their Amendments.

Announcement regarding issuance of Disciplinary Board Resolution No. (43/2023) Disciplinary Board - (36,37/2023) Authority and imposition of a warning against each of:

1- AAN Digital Services Holding Company,

2- The External Auditor of AAN Digital Services Holding Company

For violating the Listing Rules, and the Rules of Securities activities and Registered Persons of the Executive Bylaws of Law No. 7 of 2010 and their amendments.

For the following reasons:

First: AAN Digital Services Holding Company:

The Company violated the provision of Article (1-14) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010. It was proven to the Authority that the Company failed to comply with the International Financial Reporting Standards No. 9 “Financial Instruments” where it did not conduct a valuation of assets stipulated under clause “Financial assets at fair value through other comprehensive income.”

Second: The External Auditor of AAN Digital Services Holding Company violated the following:

1- Provision of Item (7) of Article (3-4-4) of Module Five (Securities Activities and Registered Persons) of the Executive Bylaws of the aforementioned Law:

It was proven to the Authority that he did not notify it with the existing violation on AAN Digital Services Holding Company regarding non-compliance with the International Financial Reporting Standards No. 9 “Financial Instruments” in the financial statements ending on 31/03/2023.

2- Provision of Article (3-4-5) of the same module:

It was proven to the Authority:

a. As the auditor of AAN Digital Services Holding Company, he did not comply with the requirements of International Auditing Standard No. 2410, as he did not make any observations in his report on the Company’s financial statements for the financial periods ending on 31/03/2022, 30/06/2022, and 30/09/2022, which is represented by ANN Digital Services Holding Company gathering concentrated periodical information collected for the subsidiaries according to financial information prepared by the management.

b. failure to comply with making any observation in the report he prepared indicating the non-compliance of ANN Digital Services Holding Company with International Financial Reporting Standard No. (9) (Financial Instruments) in the report on the Company’s financial statements for the financial period ending on 31/03/2022, as the Company did not conduct an evaluation of its assets stipulated in item “Financial assets at fair value through other comprehensive income.”

The Resolution included the infliction of the following penalty: -

"First: Levying a warning against AAN Digital Services Holding Company and the External Auditor of AAN Digital Services Holding Company for the attributed violations and considering its non-repetition in the future.”

In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these Laws in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.