Salik Company Pjsc · DFM:SALIK
Salik Company Pjsc — Q1 2023 Earnings Presentation
20 slides from Salik Company Pjsc's earnings presentation, May 15, 2023
Slide 1: Q1 2023 Financial Results Presentation
Q1 2023 Financial Results Presentation 15 May 2023 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 1st July 2022 Established in 2007 Exclusivity in Dubai 49-year concession with RTA, until 2071 Exclusive right to collect tolls from the existing 8 toll gates and from any future toll gates in Dubai Best-in-cl
Slide 4: Key Strategic Highlights
[ KEY STRATEGIC HIGHLIGHTS
Slide 5: Key strategic highlights
Key strategic highlights Record revenue-generating Strong performance shown by Salik completes first Strong growth in account and trips and toll usage fees in Q1 6.5% YoY revenue growth and dividend distribution as vehicle registrations 2023, exceeding pre- robust EBITDA and free cash flow publicly
Slide 6: Key financial highlights
Key financial highlights Revenue- Generating Trips Revenue EBITDA1 Net Profit Per Day Q1 2023 +7.9% YoY +6.5% YoY Margin: 66.8% Margin: 52.9% +2.4% QoQ +3.6% QoQ Q4 2022 Margin: 69.5% Margin: 57.2% Q1 2022 Margin: 82.9% Margin: 82.6% 1 EBITDA is earnings before finance cost, finance income, deprecia
Slide 7: Salik poised for future growth under favourable Dubai macroeconomic conditions
Salik poised for future growth under favourable Dubai macroeconomic conditions Dubai - the No. 1 global destination • Dubai's overnight visitors rose 17% in Q1 2023 compared to Q1 2022 marking the city’s best Q1 performance since the pandemic; just 2% below Q1 2019 • Average hotel occupancy in Q1 20
Slide 8: Key Mobility Highlights
KEY MOBILITY HIGHLIGHTS
Slide 9: Registered active accounts and vehicles growth
Government’s efforts to diversify and grow the economy and attract residents and tourists continue to drive registration growth Registered active accounts Registered active vehicles +4.2% +6.9% YoY YoY +1.6% +5.5% QoQ QoQ 2.11 Million Million 3.66 3.71 3.91 2.08 0.21 0.21 0.21 1.65 1.67 1.75 2.02 1.
Slide 10: Breaking records: Q1 2023 sees all time high revenue-generating trips
Breaking records: Q1 2023 sees all time high revenue-generating trips Trips -0.9% +7.6% -0.2% +0.1% +7.9% +7.9% 148.2 146.9 Million 136.5 115.5 106.8 115.2 113.5 105.3 113.6 Total trips Net toll traffic Revenue-generating trips Q1 2019 Q1 2022 Q1 2023 Discounted trips UAE violations, net of dismissa
Slide 11: Q1 2023 total trips: a comprehensive overview
Q1 2023 total trips: a comprehensive overview +7.6% YoY Total trip contribution Q1 2023 +11.0% +7.9% +5.9% +5.6% +12.2% +8.1% +1.1% +8.9% YoY YoY YoY YoY YoY YoY YoY YoY Al Barsha 20% Million Al Safa 19% Al Garhoud Bridge 15% Al Mamzar North 13% +1.8% QoQ Al Mamzar South 12% +2.3% +2.1% +1.8% - +7.2
Slide 12: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Why Salik
Slide 13: Growth in mobility continues to drive strong revenue growth
Growth in mobility continues to drive strong revenue growth +6.5% YoY +3.6% QoQ 488 502 520 11 13 10 AED Million 55 48 54 444 454 421 Q1 2022 Q4 2022 Q1 2023 Toll usage fees Fines & penalties Other 13 Other revenue includes tag activation fees, inactive balance write-off, and miscellaneous revenue.
Slide 14: Salik achieves record quarterly toll usage revenue in Q1 2023
Salik achieves record quarterly toll usage revenue in Q1 2023 +10.6% CAGR +0.1% 453.8 454.2 421.1 411.9 397.3 391.6 364.2 372.4 355.5 337.3 AED Million 226.7 203.0 190.4 188.1 188.3 100.8 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 15: Strong Q1 2023 EBITDA margin showcases Salik's business model resilience
Strong Q1 2023 EBITDA margin showcases Salik’s business model resilience Margin 82.9% 66.8% 69.5% 66.8% -14.1% -0.3% YoY YoY AED Million AED Million Key drivers (YoY): Key drivers (QoQ): (+) Growth in revenue driven by an increase in revenue-generating trips (+) Growth in revenue driven by an increa
Slide 16: Strong cash generation driven by robust profitability
Strong cash generation driven by robust profitability Net profit Free cash flow bridge – Q1 2023 Margin 82.6% 57.2% 52.9% Margin 66.8% 62.5% -31.7% YoY -4.1% QoQ AED Million AED Million 403 - - 281 281 287 275 Q1 2022 Q4 2022 Q1 2023 Key drivers (YoY): increase in revenue, absence of corporate alloc
Slide 17: Strong balance sheet with leverage of 2.1x
Strong balance sheet with leverage of 2.1x; maintaining financial stability for sustainable growth Sources vs. Uses – Q1 2023 4 AED Million Total borrowings Cash & cash equivalents As of March 31, 2023 As of March 31, 2023 355 30 55 Sources Uses Interest income on deposits Op. cash flow excl. change
Slide 18: Investment Highlights
INVESTMENT HIGHLIGHTS
Slide 19: Salik: The Gateway to Opportunities
Salik: The Gateway to Opportunities Exclusive Toll Operator for Dubai’s Strong Macro Growth Tailwinds from Custom-Built Technology Road Network in a City Where Car Use Dubai’s Ambitious Expansion Plans Underpinning Efficient and Seamless is Dominant Operations Positioned to Benefit from Additional F
Slide 20: Thank You
THANK YOU For enquiries, please contact Investor Relations: Mohamed Zein Head of Investor Relations E: Mohamed.Zeinelabedin@salik.ae