Sustained Infrastructure Holding Company · TADAWUL:2190
Sustained Infrastructure — Sustainable Infrastructure Holding Company — Q3 2024 Earnings Presentation
37 slides from Sustained Infrastructure's earnings presentation, November 2024
Slide 1: Sustainable Infrastructure Holding Company Investor Presentation
SUSTAINABLE INFRASTRUCTURE HOLDING COMPANY INVESTOR PRESENTATION / NOVEMBER 2024
Slide 2: Agenda
AGENDA Contents Slide No. 1. INTRODUCTION 3 2. STRATEGY IMPLEMENTATION PROGRESS 7 3. M&A UPDATE 13 3. Q3’FY24 HIGHLIGHTS 16 4. FINANCIAL PERFORMANCE 20 5. PORTFOLIO PERFORMANCE 21 6. APPENDIX 24 sisco.com.sa 2
Slide 3: Introduction
INTRODUCTION
Slide 4: SISCO Holding
SISCO HOLDING The first publicly listed, full-cycle logistics and infrastructure investment company 8 Portfolio Companies SAR 4.5b AUM National Industrial Development and Logistics Program 135% 10-year portfolio return >12% 10-year IRR 10% 10-year revenue CAGR sisco.com.sa 4
Slide 5: SISCO Structure - Portfolio Companies
SISCO Structure- Portfolio Companies SISCO Portfolio Shareholding Company % RSGT 36.4% Holding level LogiPoint 76.0% Operating Isnad 97.0% level S.A Talke 33.3% Logistics Water Ports & Ports Logistics Elite 24.0% Portfolio RSPD 60.6% RSPDI 60.6% RSPDI S.A. RSGTI 36.4% RSPD GDI Isnad LogiPoint 3PL Co
Slide 6: Industry-leading Senior Management
Industry-leading Senior Management Strong management teams with decades of experience Khalid Suleimani Mahmood Hussain CEO CFO 25+ years in VC Investment, Digital 22+ years in financial transformation and Entrepreneurship and investment management Logistics Water Jens Floe Farooq A Abdullah Tuwariqi
Slide 7: Strategy Implementation Progress
STRATEGY IMPLEMENTATION PROGRESS
Slide 8: SISCO Logistics Strategy
SISCO LOGISTICS STRATEGY Specialized Logistics Logistics Services Ports Logistics Infrastructure 3PL / 4PL E-commerce LMD (Petro-Chem) Adjacencies Platform In development Company In development • Continue • Build on the BRZ • Roll up strategy in : • Create an end to • Achieve • Expansion into biddin
Slide 9: Strategic Objectives
Strategic Objectives Revenue of SAR Target ROIC of 1 2 billion by 2026 more than 12% Targeting increasing revenue 2 and net income contribution from Logistics segment Strong total Sustainable 3 returns for dividend shareholders distribution sisco.com.sa 9
Slide 10: SISCO Key Transformation Initiatives
SISCO Key Transformation Initiatives Integrated logistics platform Maximizing synergies across Capital value across the Develop 3PL / 4 PL capabilities SISCO’s portfolio companies logistics value chain Ports & Current Future Logistics o Single Port Operator o New Concessions o Largest Port Terminal
Slide 11: 6X26 Strategy Implementation Key Updates
6X26 Strategy Implementation Key Updates Logistics • GII JV to explore RSGT Bangladesh expansion in Riyadh commenced operatio ns in • Inc reased bonded zone June 2024 warehou se c apacity to • Additional concessi ons being 1. Fortify national championship ✓ pursued in East and West Africa 120k m2 •
Slide 12: M&A Update
M&A Update Ports and Logistics Parks and Corporate GDI Terminals Services M&A (e-commerce) Strong pipeline locally LogiPoint has signed an Has signed an NBO GDI as two active NBO and internationally via MOU with GII to launch over one year ago, in final closing RSGTI with a SAR 1B fund to create whi
Slide 13: Dry Powder Capital Allocation
Dry Powder Capital Allocation • Percentages are i ndi cative only and may change from time to time at the SISCOs di scursion and as business needs progress. ** Out of the total GDI commi tment, SAR 61.6m has already been deployed Allocation Commitment Dividends 85.0 Share Buyback 6.2 10.8% Committed
Slide 14: Q3'FY24 Highlights
| it Q3'FY24 HIGHLIGHTS Ke j ] | i |
Slide 15: Financial Highlights Q3'FY24
Financial Highlights Q3’FY24 *Excluding accounting construction revenue REVENUE* EBITDA - ADJUSTED SAR 341.8m SAR 210.2m Q3 2023: SAR 276.1m Q3 2023: SAR 162.3m +23.8% Y-Y +29.5% Y-Y GROSS PROFIT NET INCOME - ADJUSTED SAR 179.8m SAR 23.5m Q3 2023: SAR 147.7m Q3 2023: SAR 23.7m +21.7% Y-Y -0.6% Y-Y s
Slide 16: Portfolio Highlights Q3'FY24
Portfolio Highlights Q3’FY24 Ports and Logistics SA Talke Elite Water Terminals Parks and segment Services Water segment Sales increased revenues rose, with Ports and Terminals Logistics Parks and Strong revenue gross profit rising by EBTDA 59.7 million segment saw strong Services revenues growth 13
Slide 17: Financial Performance
FINANCIAL PERFORMANCE
Slide 18: Income Statement Highlights
Income Statement Highlights SAR millions (adjusted: excludes accounting construction revenue) GROUP GROSS PROFIT & MARGIN REVENUE 52.6% 53.5% REVENUE YTD GROSS PROFIT YTD SAR 901.8m SAR 469.5m 341.8 179.8 276.1 +16.2% 147.7 +13.8% Q3'23 Q3'24 Q3'23 Q3'24 • Revenue up 23.8% Y-Y and up 16.2% YTD drive
Slide 19: OPEX and Investment Income
OPEX and Investment Income SAR millions Q3 INCOME FROM EQUITY OPERATING EXPENSES FINANCE CHARGES ACCOUNTED ASSOCIATES F/V Fees Others SAR 4m 29.4 30 -48.1% 21.5 59.5 63.7 50.7 FINANCE CHARGES 42.8 43.1 43.2 SAR 218.9m +15.6% Q3'23 Q2'24 Q3'24 Q3'23 Q2'24 Q3'24 • Operating expenses rose by SAR 13.0m
Slide 20: EBITDA and Net Income
EBITDA and Net Income SAR millions ADJUSTED NET INCOME ADJUSTED EBITDA & MARGIN & MARGIN 61.5% 8.6% 6.9% ADJUSTED EBITDA YTD ADJUSTED NET INCOME 58.8% YTD SAR 543.8m SAR 52.7m 23.7 23.6 210.2 162.3 +17.7% -19.6% Q3'23 Q3'24 Q3'23 Q3'24 • Adjusted net income in Q3 broadly remained in line with last y
Slide 21: Portfolio Performance Details
PORTFOLIO PERFORMANCE DETAILS
Slide 22: Ports and Terminals Q3'FY24
Ports and Terminals Q3’FY24 SAR millions Q3 NET INCOME (MARGIN) REVENUE* GROSS PROFIT & SAR 46.9 m (16.7%) MARGIN Gateway Transhipment 55.7% +89.1% Y-Y Consignee 281.1 53.1% 248.2 54.9% 220.6 109.3 VOLUME (TEUS ‘000) 95.5 Gateway Transhipment 75.8 159.5 41.2 135.1 31.7 121.1 49.2 383 481 304 121 130
Slide 23: Logistics, Parks and Services Q3'FY24
Logistics, Parks and Services Q3’FY24 SAR millions Q3 ADJUSTED NET INCOME (MARGIN) REVENUE GROSS PROFIT & SAR 4.7m (14.6%) MARGIN Land Warehouse Service -33.3% Y-Y 48.7% 32.3 32.6 44.6% 30.6 29.0% 14.8 15.5 OCCUPANCY (%) 14.7 Land Warehouse 15.7 13.7 80% 9.7 9.5 9.9 11.9 86% 88% 7.8 6 5.2 98% Q3'23
Slide 24: Water Solutions Q3'FY24
Water Solutions Q3’FY24 SAR millions Q3 ADJUSTED NET INCOME (MARGIN) GROSS PROFIT & REVENUE MARGIN SAR 8.4m (32.4%) Tawzea Others 49.1% +13.7% Y-Y 48.0% 26.1 47.2% 23.3 23.5 3.6 2.9 3.2 VOLUME, WATER SOLD (MN M3) 8.2 Tawzea Others 7.3 7.4 12.8 11 11.3 1.4 1.3 1.3 13.1 12.9 14.3 2.6 2.6 2.9 Q3'23 Q2'
Slide 25: Tawzea Q3'FY24
Tawzea Q3’FY24 SAR millions Q3 ADJUSTED NET INCOME REVENUE ADJUSTED GROSS PROFIT & (MARGIN) MARGIN 13.6% SAR 18.5m (9.9%) 13.7% +128.4% Y-Y 11.4% 158.3 21.6 131.1 SISCO SHARE OF Q3 117 16.0 15.0 ADJUSTED NET INCOME SAR 7.8m Q3'23 Q2'24 Q3'24 Q3'23 Q2'24 Q3'24 +95.0% Y-Y • Reported adjusted revenue (
Slide 26: SA Talke Q3'FY24
SA Talke Q3’FY24 SAR millions Q2 ADJUSTED NET INCOME REVENUE ADJUSTED GROSS PROFIT & MARGIN SAR 16.4m 28.2% 27.7% 26.3% -6.8%Y-Y 78.7 77.8 81.4 22.2 SISCO SHARE OF Q2 21.6 21.4 ADJUSTED NET INCOME SAR 6.0m Q3'23 Q2'24 Q3'24 Q3'23 Q2'24 Q3'24 -6.3 % Y-Y • Revenue broadly stable • SISCO Holding’s shar
Slide 27: Appendix
APPENDIX.
Slide 28: Income Statement - Quarterly
Income Statement - Quarterly SAR 000 Q3 2023 Q3 2024 Variance Q2 2024 Operational Revenue 276.1 341.8 23.8% 302.5 Direct Costs (128.6) (161.9) -25.9% (145.6) Gross Profit 147.7 179.8 21.7% 156.9 Operating expenses (50.7) (63.7) 25.6% (59.4) Operating Profit 97.0 116.1 19.7% 97.5 Investment Income 7.
Slide 29: Income Statement – FY 2023
Income Statement – FY 2023 SAR 000 YTD 2023 YTD 2024 Variance Operational Revenue 776.4 901.9 16.2% Direct Costs (363.7) (432.3) 18.9% Gross Profit 412.7 469.6 13.8% Operating expenses (150.1) (176.4) 17.5% Operating Profit 262.6 293.0 11.6% Investment Income 25.3 (17.8) -170.4% Finance Charges (183
Slide 30: Balance Sheet
Balance Sheet FY 2023 9M 2024 Fixed Assets 4,284.6 4,358.8 Investments 283.6 254.8 Other Long-Term Assets 6.0 6.0 Current Assets 1,415.7 1,383.0 Total Assets 5,989.9 6,002.6 Borrowings 1,492.4 1,295.5 Long Term Liabilities 1,553.0 1,633.7 Current Liabilities (excl. borrowings) 629.8 638.6 Total Liab
Slide 31: Progress On Strategy
Progress On Strategy Strategic Progress Progress Against Targets M&A Growth Levers AUMs (billion) • Completed SAR 47.3m acquisition of GDI from LogiPoint SISCO Holding • Agreed two further M&A deals expected to complete during 4.5+ 6 1H 2024 2026 Target Portfolio Value • Acquired LogX, a leading col
Slide 32: Progress On Strategy
Progress On Strategy Strategic Progress 2023 Progress Against Targets Organic Growth Levers (continued) • Diversified its revenues by adding MRO, fertilizer, order Market Share processing, spare house management and chemical SA Talke 55% 65% warehousing services to its product mix. • Offsite expansi
Slide 33: M&A Strategy In Action – Case Study
M&A Strategy In Action – Case Study 22 Year Concession to develop and operate Patenga Container terminal In Bangladesh Elite acquired LogX in December 2023 Concession is signed in partnership with PIF LogX was established in 2016 RSGT will develop and operate 500,000 TEUs capacity at PCT Acquire Log
Slide 34: Cash Flow Statement
Cash Flow Statement 9M 2023 9M 2024 Operating cash flow before working capital 452.3 502.6 SAR million FY 2023 9M 2024 Net working capital movement (103.3) (242.5) Cash At Center 370.4 315.8 Cash generated from operating activities 349.0 260.1 Cash At Affiliates 796.4 699.6 Finance charges, Zakat &
Slide 35: Revenue And Gross Profit Composition
Revenue And Gross Profit Composition Ports Logistics Water SAR millions Revenue Composition Adjusted Gross Profit Composition 147.7 156.8 179.8 412.7 469.5 8.0% 35.3 10.0% 9.0% 33.3 35.6 11.0% 40.2 12.8 11.0 12.3 398.6 9.4 339.2 82.0% 15.7 13.7 121.0 131.8 157.6 82.0% Inner | 9M 2023 Outer | 9M 2024
Slide 36: Disclaimer
Disclaimer • This presentation is strictly confidential and is being shown to you solely for your information and may not be reproduced, retransmitted, further distributed to any other person or published, in whole or in part, for any purpose. • This presentation has been prepared by Saudi Industria
Slide 37: sisco.com.sa
sisco.com.sa &w
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