Slide 1: Investor Presentation Q1 2025
Investor Presentation Q1 2025
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by elm solely for informational purposes. The presentation may contain or include statements that are, or may be deemed to be, “forward-looking statements”. Any forward-looking statements reflect the Company’s current view with respect to future events
Slide 3: Agenda
Agenda Introduction elm 4.0 Strategy Q1 2025 Highlights M&A Update Financial Performance 2025 Guidance 3
Slide 4: elm At a Glance
elm At a Glance Providing e-services to individuals, Diversification into consulting services, IT Initial Public Offering (IPO) and listing businesses, and government agencies services, government process outsourcing, elm shares on the Main Market of the training solutions, and e-services Saudi Exch
Slide 5: Businesses and Segments
Businesses and Segments elm business includes 3 main offerings targeting the public and private sectors through various service models Digital Business Business Process Outsourcing Professional Services Offering Digital Products Digital Solutions Business Outsourcing Consulting Data & AI Type Develo
Slide 6: Brief About Top 6 Products
Brief About Top 6 Products Absher Fasah Nusuk Provide Ministry of Interior services (Passports, Facilitate international trade services by Organize pilgrims entire visit from Traffic, Civil Affairs, etc.) digitally in an automating the import and export applying e-Visa to booking hotels and integrat
Slide 7: elm's Sustainability Framework
United Nations Sustainable elm’s Sustainability Framework Development Goals Advancing Environmental Responsibility ▪ Emissions and Energy Use ▪ Waste and Resource Use ▪ Water Use Fostering Our People and Community ▪ Talent Acquisition and Retention ▪ Employee Health and Well-being ▪ Building Diversi
Slide 8: Agenda
Agenda Introduction elm 4.0 Strategy Q1 2025 Highlights M&A Update Financial Performance 2025 Guidance 8
Slide 9: elm 4.0 Strategy
elm 4.0 Strategy Horizons of Strategy Organically and inorganically: ▪ Expand into new gov. verticals ▪ Develop new products & services in current verticals ▪ New accounts penetration ▪ BPO digitalization ▪ More on IT consulting ▪ Expanding in digital emerging offering Build / Acquire / Partner new
Slide 10: elm 4.0 Strategy (Con.)
elm 4.0 Strategy (Con.) Gov’t Digital Products (G2B2X) elm 4.0 strategy focuses on diversification and modernize offerings, and require capital deployment in both GovTech and B2B offerings Digital Products Business Process Gov’t BPO 4.0 (mostly gov’t products today) Outsourcing Digital Business Busi
Slide 11: Agenda
Agenda Introduction elm 4.0 Strategy Q1 2025 Highlights M&A Update Financial Performance 2025 Guidance 11
Slide 12: Operational Highlights
Operational Highlights Continues growth in Digital Business by market growth and added value services Continues growth in Business Process Outsourcing in key projects Research & AI to be introduced/implemented in existing and potential businesses elm entered into a share purchase agreement to acquir
Slide 13: Financial Highlights
Financial Highlights Revenue Gross Profit Operational Profit Net Profit Q1 2025 1,877 million 773 million 471 million 495 million % Change from the Same Period Last Year 14.52% 23.88% 41.02% 43.48% 13
Slide 14: Agenda
Agenda Introduction elm 4.0 Strategy Q1 2025 Highlights M&A Update Financial Performance 2025 Guidance 14
Slide 15: M&A Update | Thiqah Acquisition
M&A Update | Thiqah Acquisition Transaction Background ▪ On 22nd of January 2025, Elm entered into a share purchase agreement to acquire 100% of Thiqah from the Public Investment Fund for a total of SAR 3.4bn (less an amount equal to certain costs related to the transaction, fees and payments as agr
Slide 16: M&A Update | Thiqah Acquisition
M&A Update | Thiqah Acquisition Revenue (2023) 5.9 >70% 1.6 >65% 7.5 >70% billion Digital Solutions billion Digital Solutions billion Digital Solutions Net Income (2023) c.23% c.11% 1.6 c.21% 1.4 180 billion Margin million Margin billion Margin No. of Employees +2000 81% +800 >75%2 +2,800 c.80% Empl
Slide 17: Agenda
Agenda Introduction elm 4.0 Strategy Q1 2025 Highlights M&A Update Financial Performance 2025 Guidance 17
Slide 18: P&L Highlights (million)
P&L Highlights ( million) Revenue by Business Segment Gross Profit by Business Segment Key Highlights ▪ Revenue Growth +14.5% +23.9% 773 Growth in revenue is resulted from the increase across all 1,877 46 9 segments, mainly from Digital business, that is contributing 1,639 74% compared to 71% in the
Slide 19: P&L Highlights (million)
P&L Highlights ( million) Operational Profit (EBIT) Key Highlights +41.0% ▪ EBIT Remains Strong EBIT demonstrated a significant increase to reach a 471 334 -7 1 21 -26 -1 margin of 25%, that is contributed by the increase in 149 gross profit. Furthermore, there was a reduction in ECL and depreciatio
Slide 20: Digital Business (million)
Digital Business ( million) DB Revenue DB Gross Profit Digital Products Revenue Key Highlights ▪ Continuous Revenue growth +20.5% Due to growth in digital products revenue. +18.1% +20.2% 1,382 636 1,289 ▪ Margin Expansion 1,170 529 1,070 +16.2% The increase in customer base & introduction of new ser
Slide 21: Business Process Outsourcing (million)
Business Process Outsourcing ( million) BPO Revenue BPO Gross Profit Key Highlights ▪ Revenue Growth +2.5% 449 BPO revenue slight increase is driven by new 438 128 +45.5% projects expansion and increased deliverables. 88 ▪ Increase Gross Profit and Margin The strong growth in gross profit & gross pr
Slide 22: Professional Services (million)
Professional Services ( million) PS Revenue PS Gross Profit Key Highlights ▪ Revenue Increased 48% The spike in revenue is primarily due to new projects. 46 +28.6% 9 +48.4% 7 ▪ Increase in Gross profit with a decline in 31 profitability Mainly due to the completion of high-margin projects. Q1 2024 Q
Slide 23: Balance Sheet and Cash Flow Highlights (million)
Balance Sheet and Cash Flow Highlights ( million) Cash Balance Movement ( millions) Receivable (Number of Days) Key Highlights 154 171 ▪ CFO as a percentage of Net profit was 45%. This 142 922 was due to settlement for Income share balances 3,073 and payment of employee's bonus. 222 -322 ▪ Total Cas
Slide 24: Agenda
Agenda Introduction elm 4.0 Strategy Q1 2025 Highlights M&A Update Financial Performance 2025 Guidance 24
Slide 25: 2025 Guidance
2025 Guidance Updated 2025 2025 Guidance* Q1 2025 Actual Guidance Revenue Growth 14% - 16% 15% No change Operational Profit Margin (EBIT %) 21% - 23% 25% No change Cash Flow from Operating Activities as % of Net Income 80% - 90% 45% No change *2025 Guidance does not include the impact of Thiqah Acqu
Slide 26: Thank you
Contact Information Investor Relations Department Tel: +(966) 11 250 3962 Thank you Email: ir@elm.sa Investor Relations Website Click here Investor Relations Webpage Investor Relations Application