Salik Company Pjsc · DFM:SALIK
Salik Company Pjsc — FY2023 Earnings Presentation
29 slides from Salik Company Pjsc's earnings presentation, March 2024
Slide 1: FY 2023 Financial Results Presentation
FY 2023 Financial Results Presentation March 2024 1
Slide 2: Disclaimer
Disclaimer No statement in this document is intended to be nor may be construed as a profit forecast. Any statements made in this document which could be classed a “forward-looking” are based upon various assumptions, including, management’s examination of historical operating trends, data contained
Slide 3: The Emirate of Dubai's exclusive toll gate operator
The Emirate of Dubai’s exclusive toll gate operator Operating as a standalone entity since 1 July 2022 16+ YEARS 100% 49-year concession with RTA, ending in 2071 Operations since 2007 Exclusivity in Dubai Exclusive right to collect tolls from the existing 8 toll gates and from any future toll gates
Slide 4: Key Strategic Highlights
fe ee » KEY STRATEGIC HIGHLIGHTS
Slide 5: Key strategic highlights in FY 2023
Key strategic highlights in FY 2023 Consistent and stable revenue-generating Strong FY 2023 performance with 11.4% YoY Total dividends of AED 1,098 million in FY Strong growth in account registrations and trips and toll usage revenues in Q4 2023 revenue growth robust EBITDA and free cash 2023 stable
Slide 6: Key financial highlights
Key financial highlights # Revenue Generating Revenues EBITDA1 Net Profit Trips FY 2023 461.4 MN AED 2,109 MN AED 1,390 MN AED 1,098 MN Trips Revenues EBITDA Margin: 65.9% Net Margin: 52.1% +11.7 % YoY +11.4% YoY 123.2 MN AED 563 MN AED 366 MN AED 295 MN Q4 2023 Trips Revenue EBITDA Margin: 65.0% Ne
Slide 7: Macroeconomic outlook supports Salik's growth
Macroeconomic outlook supports Salik’s growth STRONG ECONOMIC PERFORMANCE IN 2023 Dubai continues to retain and attract talent Tourism continues to outperform at global level Dubai population continues to grow with a forward-looking growth Dubai continues to be top tourist destination and the recipi
Slide 8: Macroeconomic outlook supports Salik's growth (cont'd)
Macroeconomic outlook supports Salik’s growth (cont’d) Extraordinary roster of events to further drive ➢ AED 32 trillion economic plan to double the size of Dubai's economy in the next decade and influx of visitors consolidate its position among the top three global cities ➢ Retaining No.1 global de
Slide 9: Key Mobility Highlights
KEY MOBILITY HIGHLIGHTS
Slide 10: Continued growth in Salik's customer base
Continued growth in Salik’s customer base Registered active accounts (mn) Registered active vehicles (mn) +16.0% +8.3% YoY YoY +2.2% +2.4% QoQ QoQ 2.4 3.7 3.9 4.0 2.3 0.2 0.2 0.2 2.1 1.7 1.8 1.8 1.8 2.0 2.0 Q4 2022 Q3 2023 Q4 2023 Q4 2022 Q3 2023 Q4 2023 Dubai Other Emirates Non-UAE Total Tags sold
Slide 11: Strong momentum continued in Q4 2023 with improved YoY and QoQ activity
Strong momentum continued in Q4 2023 with improved YoY and QoQ activity Trips +8.5% +10.7% +11.1% YoY YoY YoY +8.9% +11.0% +11.2% QoQ QoQ QoQ Million 144.2 143.7 156.4 112.4 112.2 124.5 110.9 110.8 123.2 Total trips Net toll traffic¹ Revenue-generating trips² Q4 2022 Q3 2023 Q4 2023 Discounted trips
Slide 12: Q4 2023 revenue-generating trips: comprehensive overview
Q4 2023 revenue-generating trips: comprehensive overview +11.1% YoY Revenue-generating trip contribution1 +53.6% +12.2% +6.7% +7.1% +16.5% +9.3% +4.3% +12.8% +3.4% Gate Q4’23 Q4’22 Million YoY YoY YoY YoY YoY YoY YoY YoY YoY Al Barsha 21% 21% Al Safa 19% 20% Al Garhoud Bridge 15% 15% Al Mamzar North
Slide 13: 2023 revenue-generating trips: comprehensive overview
2023 revenue-generating trips: comprehensive overview Revenue-generating trip contribution1 +11.7% Gate 2023 2022 YoY Al Barsha 21% 21% Al Safa 19% 20% Al Garhoud Bridge 15% 15% Million +14.0% +9.3% +8.6% +41.2% +15.2% +8.2% +7.3% +12.2% +9.4% YoY YoY YoY YoY YoY YoY YoY YoY YoY Al Mamzar North 9% 9
Slide 14: Strategy Update
STRATEGY UPDATE a Ws,
Slide 15: Salik's strategic evolution to becoming a global leader
Salik’s strategic evolution to becoming a global leader Salik aspires to become a global leader in providing sustainable and smart mobility solutions. Over the next 5 years, Salik will be focused on 4 key strategic pillars. 1 2 3 4 Establish a future-proof Thrive in the tolling business Build ESG st
Slide 16: Over the next 5 years, Salik will pursue 12 core objectives
Over the next 5 years, Salik will pursue 12 core objectives under its 4 strategic pillars 1 2 3 4 Thrive in the tolling Achieve sustainable Establish future-proof Build ESG stewardship business growth company Strengthen performance of Reduce carbon footprint and Deliver a seamless parking Ensure eff
Slide 17: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Why Salik
Slide 18: Growth in mobility continues to drive strong revenue momentum
Growth in mobility continues to drive strong revenue momentum +11.4% +12.2% YoY YoY 2,109 47 1,892 217 38 202 AED Million +10.6% QoQ 1,845 1,652 502 520 517 509 563 10 11 9 12 16 54 48 55 53 54 444 454 455 443 493 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2022 FY 2023 Toll usages fees Fines Other¹
Slide 19: Consistent quarterly revenue from toll usage fees, exceeding pre-pandemic peak
Consistent quarterly revenue from toll usage fees1, exceeding pre-pandemic peak +6.0% CAGR +11.0% 600 550 500 493 443 447 450 420 426 444 AED Million 372 367 400 363 351 336 350 300 250 207 194 207 190 186 200 150 100 Q4 2008 Q4 2009 Q4 2010 Q4 2011 Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4
Slide 20: Robust EBITDA and Net Profit generation in FY 2023
Robust EBITDA and Net Profit generation in FY 2023 in spite of elevated cost structure EBITDA (AED million) Net Profit (AED million) 76.1% Margin 65.9% 70.1% Margin 52.1% 216 216 1,440 1,326 1,390 1,098 (254) (139) (1) (11) (254) (11) (1) (39) 2022 Δ in Net finance Concession O&M and D&A Other inc.
Slide 21: Balance sheet remains healthy with conservative leverage of 2.7x EBITDA
Balance sheet remains healthy with conservative leverage of 2.7x EBITDA Free cash flow bridge FY 2023 AED 1,098 million of dividends generated in FY 2023 65.9% Margin 68.7% AED 4.0 bn AED 266 mn AED 750 mn Total borrowings Cash & cash equivalents Short-term deposits As of December 31, 2023 As of Dec
Slide 22: Attractive dividend profile
Attractive dividend profile MANAGEMENT TEAM SALIK AT A GLANCE INVESTMENT HIGHLIGHTS OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE H1 2023 distributed dividend of H2 2023 proposed dividend of Total dividends of AED 1,098 This dividend policy is designed to AED 548 million AED 550 million million in F
Slide 23: Outlook
OUTLOOK WLLLLLLLLLL,
Slide 24: Positive outlook for 2024
Positive outlook for 2024 Salik is well-positioned for another strong year in 2024, on the back of robust 2023 performance and a growth focused five-year strategy. FY 2023 Actual FY 2024 Guidance Revenue growth (%) 11.4% 4%-6% Revenue-generating trips growth (%) 11.7% 4%-6% EBITDA margin (%) 65.9% 6
Slide 25: Appendix
APPENDIX WLLLLLLLLLL,
Slide 26: Key investment highlights
Key investment highlights Exclusive Toll Operator for Dubai’s Road Network in a City Strong Macro Growth Tailwinds from Dubai’s Ambitious Custom-Built Technology Underpinning Efficient and Where Car Use is Dominant Expansion Plans and Additional Growth Levers Seamless Operations Capex-Light Business
Slide 27: Salik announced diversification of revenue outside of toll gates for the first time
Salik announced diversification of revenue outside of toll gates for the first time On December 22, 2023, Salik announced a partnership with Emaar Malls to deliver a seamless and efficient parking management system at the world-famous Dubai Mall, effective Q3 2024. Salik’s technology will be deploye
Slide 28: Annual and quarterly trips by gate
Annual and quarterly trips by gate Total Trips (Mn) FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Airport Tunnel 29.3 21.1 23.6 25.9 29.2 6.6 6.3 6.1 6.9 7.4 7.0 7.0 7.7 Al Barsha 105.7 72.9 93.2 107.6 116.6 27.6 26.2 24.5 29.4 30.1 28.9 26.8
Slide 29: Thank you
THANK YOU For enquiries, please contact Investor Relations: Wassim El Hayek Head of Investor Relations E: wassim.elhayek@salik.ae