Salik Company Pjsc · DFM:SALIK
Salik Company Pjsc — FY2024 Earnings Presentation
31 slides from Salik Company Pjsc's earnings presentation, March 2025
Slide 1: FY 2024 Financial Results Presentation
FY 2024 Financial Results 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: Key Strategic Highlights
Why Salik KEY STRATEGIC HIGHLIGHTS
Slide 4: The Emirate of Dubai's exclusive toll gate operator
The Emirate of Dubai’s exclusive toll gate operator 18+ YEARS 100% Aspiration to become a leader in providing sustainable and smart mobility solutions OPERATIONS SINCE 2007 EXCLUSIVITY IN DUBAI and as a standalone entity since 1 July 2022 1 2 Tolling business Ancillary Revenue Streams 10 GATES 49 YE
Slide 5: Macroeconomic outlook supports Salik's growth
Macroeconomic outlook supports Salik’s growth 3.1% 57% Dubai 2040 9M 2024 GDP Growth Rate Population Growth Urban Master Plan transforming (target by 2040) the Emirate’s interconnectedness AED 32 trillion 46% 6.4% Economic Plan (doubling of AED 86 billion Annual Budget Increase in public transport s
Slide 6: Consistent strategic progress since listing
Consistent strategic progress since listing Landmark IPO on Dubai Arabian Automobile Dubai Mall Partnership Assigned Inaugural Introduction of Financial Market (DFM) Partnership commences Positive Credit Ratings Variable Pricing Core Tolling Business Ancillary Revenue Core Tolling Business September
Slide 7: 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 8: Key Operational Highlights
Why Salik KEY OPERATIONAL HIGHLIGHTS
Slide 9: Continued growth in Salik's core tolling business
Continued growth in Salik’s core tolling business Trips +7.6% +8.0% +8.1% YoY YoY YoY +17.5% +15.8% +15.9% YoY YoY 638.2 YoY Million 593.1 467.2 505.2 498.1 461.4 156.4 183.8 124.5 144.3 123.1 142.6 Total trips Net toll traffic¹ Revenue-generating trips² Q4 2023 Q4 2024 FY 2023 FY 2024 Registered ac
Slide 10: Q4 2024 revenue-generating trips: Comprehensive overview
Q4 2024 revenue-generating trips: Comprehensive overview +15.8% Revenue-generating trip YoY contribution1 123.1 0.3 3.0 0.9 8.0 0.9 0.4 0.4 0.3 7.6 0.5 142.6 (2.8) Gate Q4’24 Q4’23 +3.0% +15.9% +3.7% -12.1% NEW +8.5% +3.8% +4.4% +5.2% NEW +4.9% Al Barsha 18.4% 20.6% Million YoY YoY YoY YoY GATE3 YoY
Slide 11: Evolution of annual trips by gate
Evolution of annual trips by gate Annual total trips Annual total trips by gate 2021 2022 2023 2024 +7.6% YoY Million 638.2 593.1 539.1 119.4 116.6 114.6 110.7 481.2 107.6 31.0 102.9 29.2 25.9 23.6 94.6 93.2 90.4 88.5 14.4 79.4 78.1 77.2 71.6 68.9 67.9 66.6 66.5 66.0 62.6 60.9 8.4 59.3 49.5 47.5 46.
Slide 12: Introduction of variable pricing driving annual revenue
Introduction of variable pricing driving annual revenue For all days of the year, expect Ramadan Timing of traffic distribution in 2024 The approved system for Peak Hours Off Peak Hours Past Midnight 6:00 AM to 10:00 AM 10:00 AM to 4:00 PM variable pricing road tolls 1:00 AM to 6:00 AM 4:00 PM to 8:
Slide 13: Providing seamless parking solutions through key new partnerships
Providing seamless parking solutions through key new partnerships Ancillary Revenue Streams | Parking Payment Solution Barrier-free parking payment solution operational Salik’s Wallet will be integrated across Parkonic’s since 1st July, 2024 at world-famous Dubai Mall current and future locations in
Slide 14: Motor insurance partnership & launch of new customised tags initiative
Motor insurance partnership & launch of new customised tags initiative Ancillary Revenue Streams | Market Leading Motor Insurance Partnership Customized Salik Tags Launch of Customized Tags initiative Leveraging Salik’s comprehensive database by sending timely reminders for motor insurance renewal,
Slide 15: Key Financial Highlights
Why Salik KEY FINANCIAL HIGHLIGHTS
Slide 16: Robust growth across all key financial metrics
Robust growth across all key financial metrics Revenue Revenue generating trips +8.7% YoY +8.0% +15.6% YoY +15.8% AED Million YoY AED Million 2,291.9 YoY 2,108.6 461.4 498.1 563.0 651.0 123.1 142.6 2023 2024 Q4 2023 Q4 2024 2023 2024 Q4 2023 Q4 2024 EBITDA Net profit +6.1% +13.6% YoY YoY +26.7% +16.
Slide 17: Streamlined business model
Streamlined business model Depreciation, Amortization Total Revenue - Operating Costs = EBITDA - & Net Finance Costs = PBT - Income Tax = Net Profit % of total 86.9% 10.3% 2.7% 68.9% 55.8% 50.8% revenue 236.9 62.5 (460.6) (131.0) (121.2) (91.1) (208.3) AED Million 1,992.5 (115.1) 1,579.1 1,279.7 1,1
Slide 18: Growth in mobility continues to drive strong revenue momentum
Growth in mobility continues to drive strong revenue momentum +8.7% YoY 2,291.9 2,108.6 62.5 46.3 236.9 216.8 AED Million +19.2% QoQ 1,992.5 1,845.5 651.0 563.0 562.1 532.7 546.1 62.1 18.7 54.2 16.0 58.9 12.0 12.9 58.7 19.0 57.2 492.9 491.1 570.2 462.7 468.4 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 F
Slide 19: Consistent quarterly revenue from toll usage fees
Consistent quarterly revenue from toll usage fees1 +15.8% 570.2 492.9 491.1 454.2 455.3 462.7 468.4 443.7 443.1 426.3 421.1 AED Million 400.2 386.5 337.3 351.1 351.7 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 1. Toll usage fees, Salik’s largest co
Slide 20: Robust profitability in Q4 2024 with EBITDA up 26.7%
Robust profitability in Q4 2024 with EBITDA up 26.7% EBITDA Evolution (AED million) EBITDA (AED million) 81.9% 76.1% 65.9% 68.9% Margins since 2023 reflect 65.0% Margin 71.3% Salik’s new cost profile as a concessionaire +13.6% 16.9 464.1 88.0 YoY -5.1 -1.9 Concession Full Year of 65.0% 71.3% 366.1 b
Slide 21: Net Profit up 16.0% YoY in Q4 2024
Net Profit up 16.0% YoY in Q4 2024 Net Profit Evolution (AED million) Net Profit (AED million) Margins since 2023 reflect 52.4% Margin Net Profit margin before tax 57.8% Salik’s new cost profile as 81.5% 70.1% 52.1% 50.8% a concessionaire Net Profit margin after tax 52.6% +6.1% YoY 52.4% 52.6% Conce
Slide 22: Solid cash generation supported by robust profitability
Solid cash generation supported by robust profitability, positive working capital dynamics and minimal capex Free cash flow evolution (AED million) Free cash flow bridge FY 2024 (AED million) Concession Full Year of begins July Concession 68.9% Margin 63.6% 2022 fees 72.8% 79.9% 68.7% 63.6% 1,579.1
Slide 23: Balance sheet remains healthy with conservative leverage of 3.29x EBITDA
Balance sheet remains healthy with conservative leverage of 3.29x EBITDA Conservative leverage of 3.29x EBITDA Strong inaugural credit ratings Total borrowings Cash & cash equivalents December 2024: Moody’s assigned Salik a first- As of Dec 31, 2024 As of Dec 31, 2024 time Long-Term Issuer Default R
Slide 24: Attractive dividend profile
Attractive dividend profile 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 profit) (100% of H2 2024 net profit) AED 1,164.5 million (100% of 2024 net profit) 24
Slide 25: Outlook
Why Salik OUTLOOK
Slide 26: FY 2025 guidance revised upwards
FY 2025 guidance revised upwards Positive FY 2025 guidance reflects contribution from two new gates introduced in November 2024 and the introduction of the variable pricing model. FY 2024 FY 2025 Normalized: Key Assumptions Actual Guidance 4%-5% i. Incremental revenue from 2 new gates; ii. Implement
Slide 27: Concluding Remarks
Concluding Remarks HEALTHY PERFORMANCE AND STRONG REVENUE POSITIVE GUIDANCE FOR 2025, SUPPORTED BY THE ADDITION GENERATION ALONGSIDE GOOD PROGRESS ON AMBITION OF TWO NEW GATES, INTRODUCTION OF DYNAMIC PRICING TO BECOME A GLOBAL LEADER IN MOBILITY SOLUTIONS & CONTINUED CLOSURE OF THE FLOATING BRIDGE
Slide 28: Appendix
Why Salik APPENDIX
Slide 29: 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 30: Historical revenue-generating trips evolution
Historical revenue-generating trips evolution Revenue-Generating Trips (1) (m trips) % of Total Trips 58% 56% 56% 62% 64% 64% 65% 73% 75% 76% 76% 75% 76% 78% 78% Al Al Dubai Tram Jebel Ali Al Safa South Safe Maktoum 2008 2010 2012 2014 2016 2018 2020 2022 2024 2007 2009 2011 2013 2015 2017 2019 2021
Slide 31: Thank You
THANK YOU For enquiries, please contact Investor Relations: Wassim El Hayek Head of Investor Relations E: wassim.elhayek@salik.ae