Salik Company Pjsc · DFM:SALIK
Salik Company Pjsc — Investor Presentation (March 2025)
45 slides from Salik Company Pjsc's investor presentation, March 2025
Slide 1: Investor Presentation
Investor Presentation March 2025 1
Slide 2: Disclaimer
Disclaimer No statement in document is intended to be nor may be construed as a profit forecast. Any statements made in this document which could be classed as "forward-looking" are based upon various assumptions, including management’s examination of historical operating trends, data contained in t
Slide 3: The Emirate of Dubai's exclusive toll gate operator
The Emirate of Dubai’s exclusive toll gate operator ATTRACTIVE MACRO STRATEGIC & OUR BUSINESS MODEL SALIK AT A GLANCE OUR STRATEGY FINANCIAL HIGHLIGHTS OUTLOOK CONDITIONS OPERATIONAL HIGHLIGHTS 18+ YEARS 100% Aspiration to become a leader in providing sustainable and smart mobility solutions OPERATI
Slide 4: Salik's attractive investment proposition
Salik’s attractive investment proposition ATTRACTIVE MACRO STRATEGIC & OUR BUSINESS MODEL SALIK AT A GLANCE OUR STRATEGY FINANCIAL HIGHLIGHTS OUTLOOK CONDITIONS OPERATIONAL HIGHLIGHTS 1 2 3 4 Global leader in Stable revenue- Robust financials & Dominant car usage in sustainable and smart generating
Slide 5: Consistent strategic progress since listing
Consistent strategic progress since listing ATTRACTIVE MACRO STRATEGIC & OUR BUSINESS MODEL SALIK AT A GLANCE OUR STRATEGY FINANCIAL HIGHLIGHTS OUTLOOK CONDITIONS OPERATIONAL HIGHLIGHTS Landmark IPO on Dubai Arabian Automobile Dubai Mall Partnership Assigned Inaugural Introduction of Financial Marke
Slide 6: Highlights in FY 2024
Highlights in FY 2024 Financial Highlights # REVENUE GENERATING TRIPS REVENUES EBITDA1 NET PROFIT2 Q4 142.6 MN AED 651.0 MN AED 464.1 MN AED 342.5 MN 2024 Trips Revenue +26.7% YoY +16.0% YoY2 +15.8% YoY +15.6% YoY EBITDA Margin: 71.3% Net Profit Margin: 52.6% FY 498.1 MN AED 2.3 BN AED 1.6 BN AED 1.
Slide 7: Attractive Macroeconomic Conditions
ATTRACTIVE MACROECONOMIC CONDITIONS
Slide 8: Macroeconomic outlook supports Salik's growth
Macroeconomic outlook supports Salik’s growth ATTRACTIVE MACRO OUR STRATEGY STRATEGIC & OUR BUSINESS MODEL SALIK AT A GLANCE FINANCIAL HIGHLIGHTS OUTLOOK CONDITIONS OPERATIONAL HIGHLIGHTS 3.1% 57% Dubai 2040 9M 2024 GDP Growth Rate Population Growth Urban Master Plan transforming (target by 2040) th
Slide 9: Salik gates are strategically located across Dubai
Salik gates are strategically located across Dubai ATTRACTIVE MACRO OUR STRATEGY STRATEGIC & OUR BUSINESS MODEL SALIK AT A GLANCE FINANCIAL HIGHLIGHTS OUTLOOK CONDITIONS OPERATIONAL HIGHLIGHTS Al Mamzar North 2 New Toll Gates Al Mamzar South Floating Bridge Al Maktoum Airport Tunnel Al Garhoud Busin
Slide 10: Connecting the centres of Dubai in a city where car use is dominant
Connecting the centres of Dubai in a city where car use is dominant ATTRACTIVE MACRO OUR STRATEGY STRATEGIC & OUR BUSINESS MODEL SALIK AT A GLANCE FINANCIAL HIGHLIGHTS OUTLOOK CONDITIONS OPERATIONAL HIGHLIGHTS Dubai Journey Mode Split Exclusive operator Serving high-population areas 12% Private Car
Slide 11: Our Strategy
OUR STRATEGY
Slide 12: Salik's strategic evolution to becoming a global leader
Salik’s strategic evolution to becoming a global leader ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Salik aspires to become a global leader in providing sustainable and smart mobility solutions. Over th
Slide 13: 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 ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS 1 2 3 4 Thrive in the tolling Achieve sustainable Establish future-p
Slide 14: Forward thinking organization with a sustainable agenda
Forward thinking organization with a sustainable agenda aligned with Dubai’s ESG goals ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Committed to Reduced congestion & fuel Digital Green Clear commitment t
Slide 15: Strategic & Operational Highlights
STRATEGIC & OPERATIONAL HIGHLIGHTS
Slide 16: Continued growth in Salik's core tolling business
Continued growth in Salik’s core tolling business ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Trips +7.6% +8.0% +8.1% YoY YoY YoY +17.5% +15.8% +15.9% YoY YoY 638.2 YoY Million 593.1 467.2 505.2 498.1 4
Slide 17: Historical revenue-generating trips evolution
Historical revenue-generating trips evolution ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Revenue-Generating Trips (1) (m trips) % of Total Trips 58% 56% 56% 62% 64% 64% 65% 73% 75% 76% 76% 75% 76% 78%
Slide 18: Introduction of variable pricing driving annual revenue
Introduction of variable pricing driving annual revenue ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Timing of traffic distribution in 2024 For all days of the year, except Ramadan Peak Hours Off Peak Ho
Slide 19: Providing seamless parking solutions through key new partnerships
Providing seamless parking solutions through key new partnerships ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Ancillary Revenue Streams | Parking Payment Solution Barrier-free parking payment solution o
Slide 20: Motor insurance partnership & launch of new customised tags initiative
Motor insurance partnership & launch of new customised tags initiative ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE OUR STRATEGY OUR BUSINESS MODEL CONDITIONS OPERATIONAL HIGHLIGHTS Customized Salik Tags Ancillary Revenue Streams | Market Leading Motor Insurance Partne
Slide 21: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 22: Streamlined business model
Streamlined business model ATTRACTIVE MACRO STRATEGIC & SALIK AT A GLANCE OUR STRATEGY FINANCIAL HIGHLIGHTS OUTLOOK OUR BUSINESS MODEL CONDITIONS OPERATIONAL HIGHLIGHTS Depreciation, Amortization Total Revenue - Operating Costs = EBITDA - & Net Finance Costs = PBT - Income Tax = Net Profit % of tota
Slide 23: Growth in mobility continues to drive strong revenue momentum
Growth in mobility continues to drive strong revenue momentum ATTRACTIVE MACRO STRATEGIC & OUTLOOK SALIK AT A GLANCE OUR STRATEGY FINANCIAL HIGHLIGHTS OUR BUSINESS MODEL CONDITIONS OPERATIONAL HIGHLIGHTS Revenue Evolution Commentary +8.7% • Strong revenue growth in 2024, up 8.7% year-on-year to AED
Slide 24: Operating cost structure places Salik among the most profitable in the industry
Operating cost structure places Salik among the most profitable in the industry ATTRACTIVE MACRO STRATEGIC & OUTLOOK SALIK AT A GLANCE OUR STRATEGY FINANCIAL HIGHLIGHTS OUR BUSINESS MODEL CONDITIONS OPERATIONAL HIGHLIGHTS Operating Costs Evolution Commentary 18.5% 26.7% 38.2% 35.2% 32.3% 39.1% Carve
Slide 25: Resilient EBITDA generation and robust margins
Resilient EBITDA generation and robust margins ATTRACTIVE MACRO STRATEGIC & OUTLOOK SALIK AT A GLANCE OUR STRATEGY FINANCIAL HIGHLIGHTS OUR BUSINESS MODEL CONDITIONS OPERATIONAL HIGHLIGHTS EBITDA Evolution Commentary 81.9% 76.1% 65.9% 68.9% Margins since 2023 reflect • Salik has a history of consist
Slide 26: Advance customer charges drive positive working capital profile
Advance customer charges drive positive working capital profile ATTRACTIVE MACRO STRATEGIC & OUTLOOK SALIK AT A GLANCE OUR STRATEGY FINANCIAL HIGHLIGHTS OUR BUSINESS MODEL CONDITIONS OPERATIONAL HIGHLIGHTS Net Working Capital Evolution Commentary (78.3) (147.4) (192.4) (536.8) • Salik recorded a net
Slide 27: Solid cash generation supported by robust profitability and minimal capex
Solid cash generation supported by robust profitability, positive working capital dynamics and minimal capex ATTRACTIVE MACRO STRATEGIC & OUTLOOK SALIK AT A GLANCE OUR STRATEGY FINANCIAL HIGHLIGHTS OUR BUSINESS MODEL CONDITIONS OPERATIONAL HIGHLIGHTS Free Cash Flow Evolution Commentary Concession Fu
Slide 28: Balance sheet remains healthy with conservative leverage of 3.29x EBITDA
Balance sheet remains healthy with conservative leverage of 3.29x EBITDA ATTRACTIVE MACRO STRATEGIC & SALIK AT A GLANCE CONDITIONS OUR STRATEGY FINANCIAL HIGHLIGHTS OUTLOOK OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Conservative leverage of 3.29x EBITDA Strong inaugural credit ratings December 2024:
Slide 29: Attractive dividend profile
Attractive dividend profile ATTRACTIVE MACRO STRATEGIC & SALIK AT A GLANCE CONDITIONS OUR STRATEGY FINANCIAL HIGHLIGHTS OUTLOOK OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS This dividend policy is designed to reflect the AED 544.7 million AED 619.8 million Company’s expectation of (100% of H1 2024 net
Slide 30: FY 2025 guidance revised upwards
FY 2025 guidance revised upwards ATTRACTIVE MACRO STRATEGIC & SALIK AT A GLANCE CONDITIONS OUR STRATEGY FINANCIAL HIGHLIGHTS OUTLOOK OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Positive FY 2025 guidance reflects contribution from two new gates introduced in November 2024 and the introduction of the va
Slide 31: Our Business Model
OUR BUSINESS MODEL
Slide 32: Concession agreement overview
Concession agreement overview ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Relevant Authorities and Relationship with Salik Key Concession Agreement Terms Legislative Term of the Concession Governmental
Slide 33: Concession agreement overview (cont'd)
Concession agreement overview (cont’d) ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS SALIK’S KEY RIGHTS RTA’S KEY OBLIGATIONS TO SALIK Take necessary actions during the registration Ensure that any operat
Slide 34: Price increase mechanism and concession fee overview
Price increase mechanism and concession fee overview ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Price Increase Mechanism Approval Process • Mechanism for tariff increase that is linked to inflation pro
Slide 35: New gate addition mechanism
New gate addition mechanism In January 2024, Salik announced that it would introduce 2 new gates in Dubai, to become operational by November 2024, taking the total number of gates from 8 to 10 ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUS
Slide 36: Addition of new gates
Addition of new gates ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Detailed Action Plan Followed by RTA RTA’s Process for Assessing New Gate Opportunities Mission Optimise for better traffic management S
Slide 37: Appendix
xs Q 2 Lu a. a <x
Slide 38: Recognised as a global leader
Recognised as a global leader Best Investor Relations by CEO UAE CFO Power List Joins UN Global Most Honored Middle East Compact Companies Reinforcing 2024 Developed commitment to Europe & Emerging Best Investor sustainable business EMEA Executive Relations by CFO practices awards Middle East 38
Slide 39: An Experienced Management Team
An Experienced Management Team • 20+ years track record of achieving • 30+ years experience in finance and • 17+ years of management commercial transformation across a audit including Big4 audit firms experience in public transportation, wide range of projects smart cities and autonomous • 12 years
Slide 40: Annual and quarterly trips by gate
Annual and quarterly trips by gate Total Trips (Mn) FY 2021 FY 2022 FY 2023 FY 2024 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Airport Tunnel 23.6 25.9 29.2 31.0 6.9 7.4 7.0 7.0 7.7 8.0 7.2 7.6 8.2 Al Barsha 93.2 107.6 116.6 119.4 29.4 30.1 28.9 26.8 30.8 30.9 28.9 28.0
Slide 41: Mobility highlights
Mobility highlights Million Q4 2024 Q4 2023 % Δ YoY Q3 2024 % Δ QoQ FY 2024 FY 2023 % Δ YoY Total trips(1) 183.8 156.4 17.5% 150.5 22.1% 638.2 593.1 7.6% Discounted trips(2) 39.5 31.9 23.7% 32.0 23.2% 133.0 125.9 5.6% % of total trips 21.5% 20.4% 1.1% 21.3% 0.2% 20.8% 21.2% -0.4% Net toll traffic(3)
Slide 42: Summary of P&L
Summary of P&L AED million Q4 2024 Q4 2023 % Δ YoY Q3 2024 % Δ QoQ FY 2024 FY 2023 % Δ YoY Revenue 651.0 563.0 15.6% 546.1 19.2% 2,291.9 2,108.6 8.7% Toll usage fees 570.2 492.9 15.7% 468.4 21.7% 1,992.5 1,845.5 8.0% Fines and penalties 62.1 54.2 14.5% 58.7 5.7% 236.9 216.8 9.3% Tag activation fees
Slide 43: Summary of Cash Flows
Summary of Cash Flows AED million Q4 2024 Q4 2023 % Δ YoY Q3 2024 % Δ QoQ FY 2024 FY 2023 % Δ YoY Operating cash flow before changes in working capital 449.6 377.6 19.1% 383.7 17.2% 1,594.0 1,424.5 11.9% Changes in working capital (46.9) 31.1 -250.8% (13.4) 250.9% (130.8) 29.7 -539.7% Net cash flow
Slide 44: Summary of Financial Position
Summary of Financial Position AED million 31-Dec-24 30-Sep-24 % Δ QoQ 31-Dec-23 % Δ YtD Total assets, including: 7,985.9 5,059.2 57.8% 5,223.8 52.9% Cash and cash equivalents 963.7 836.6 15.2% 266.2 262.0% Short term deposit with bank (1) - - - 750.0 - Total liabilities, including: 6,897.9 4,669.4 4
Slide 45: Thank You
THANK YOU For enquiries, please contact Investor Relations: Wassim El Hayek Head of Investor Relations E: wassim.elhayek@salik.ae
Salik Company PJSC — Investor Presentation (March 2025) on 6ix