Salik Company Pjsc · DFM:SALIK
Salik Company Pjsc — Q3 2023 Earnings Presentation
22 slides from Salik Company Pjsc's earnings presentation, November 2023
Slide 1: Q3 2023 Financial Results Presentation
Q3 2023 Financial Results Presentation November 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 1 July 2022 49-year concession with RTA, ending in 2071 Established in 2007 Exclusivity in Dubai Exclusive right to collect tolls from the existing 8 toll gates and from any future toll gates in Dubai Best-in-
Slide 4: Key Strategic Highlights
KEY STRATEGIC HIGHLIGHTS
Slide 5: Key strategic highlights
Key strategic highlights Consistent and stable revenue-generating Strong performance with 14.2% YoY revenue Salik distributed AED 548 million in Strong growth in account registrations and trips and toll usage revenues in Q3 2023, growth and robust EBITDA and free cash dividends during Q3 2023 (100%
Slide 6: Key financial highlights
Key financial highlights # Revenue Generating Revenues EBITDA1 Net Profit Trips 9M 2023 Net Margin: 51.9% Trips Revenues EBITDA +12.0 % YoY +11.2% YoY Margin: 66.2% Q3 2023 Trips Revenue EBITDA Net Margin: 50.1% +14.6% YoY +14.2% YoY Margin: 64.9% -2.7% QoQ -1.5% QoQ 6 1. EBITDA is profit for the pe
Slide 7: Macroeconomic outlook supports Salik's growth
Macroeconomic outlook supports Salik’s growth Dubai continues to retain and attract talent STRONG ECONOMIC PERFORMANCE IN 2023 AED 32 trillion economic plan to double the size of Dubai's economy in the next decade and • Dubai population continues to grow with a forward-looking growth consolidate its
Slide 8: Key Mobility Highlights
KEY MOBILITY HIGHLIGHTS
Slide 9: Continued growth in Salik's customer base
Continued growth in Salik’s customer base Registered active accounts (mn) Registered active vehicles (mn) +13.0% +8.8% YoY YoY +9.1% +2.2% QoQ QoQ 2.4 2.2 2.1 3.8 3.9 3.6 Q3 2022 Q2 2023 Q3 2023 Q3 2022 Q2 2023 Q3 2023 Total Tags sold (000s) Tag activations vs. deactivations (000s) +19.7% YoY +3.2%
Slide 10: Strong momentum continued in Q3 2023 with improved YoY activity
Strong momentum continued in Q3 2023 with improved YoY activity Trips +12.3% +14.5% +14.6% YoY YoY YoY -1.7% -2.7% -2.7% QoQ QoQ QoQ 146.1 143.7 Million 128.0 115.3 112.2 113.8 97.9 96.6 110.8 Total trips Net toll traffic¹ Revenue-generating trips² Q3 2022 Q2 2023 Q3 2023 Discounted trips UAE violat
Slide 11: Q3 2023 revenue-generating trips: a comprehensive overview
Q3 2023 revenue-generating trips: a comprehensive overview +14.6% YoY Revenue-generating trip contribution1 +61.4% +16.3% +10.1% +9.2% +17.5% +10.0% +8.4% +14.1% +14.7% Gate Q3’23 Q3’22 Million YoY YoY YoY YoY YoY YoY YoY YoY YoY Al Barsha 20% 20% Al Safa 19% 20% Al Garhoud Bridge 16% 15% Al Mamzar
Slide 12: 9M 2023 revenue-generating trips: a comprehensive overview
9M 2023 revenue-generating trips: a comprehensive overview Revenue-generating trip contribution +12.0% 9M 2023 YoY Al Barsha 21% Million Al Safa 19% Al Garhoud Bridge 15% +14.7% +9.3% +8.5% +36.7% +14.8% +7.8% +8.4% +12.0% +11.7% Al Mamzar North 9% YoY YoY YoY YoY YoY YoY YoY YoY YoY Jebel Ali 8% Al
Slide 13: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Why Salik
Slide 14: Growth in mobility continues to drive strong revenue momentum
Growth in mobility continues to drive strong revenue momentum +11.2% +14.2% YoY YoY 1,546 31 1,390 163 29 153 -1.5% AED Million QoQ 520 517 1,353 445 509 1,208 11 9 11 10 55 53 54 49 386 454 455 443 Q3 2022 Q1 2023 Q2 2023 Q3 2023 9M 2022 9M 2023 Toll usages fees Fines Other¹ 14 1. Other revenue inc
Slide 15: Consistent quarterly revenue from toll usage fees, exceeding pre-pandemic peak
Consistent quarterly revenue from toll usage fees1, exceeding pre-pandemic peak +7.2% CAGR +14.6% 600 500 408 454 455 443 382 369 332 340 352 386 AED Million 400 338 322 299 300 186 172 169 180 200 136 100 - Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q1 Q2 Q3 2008 2009 2010 2011 2012 2013 2014 201
Slide 16: Q3 2023 EBITDA and Net Profit margins demonstrate resilience of business model
Q3 2023 EBITDA and Net Profit margins demonstrate resilience of business model EBITDA (AED million) Net Profit (AED million) Adj. Margin1 65.3% 54.3% Margin 50.1% 65.4% Margin 64.9% 63 63 Adj. EBITDA1 333 330 255 242 291 (14) (26) (8) (2) (14) (8) (0) (2) Q3 2022 Δ in revenue Concession O&M & Other
Slide 17: Balance sheet remains healthy with conservative leverage of 2.4x EBITDA
Balance sheet remains healthy with conservative leverage of 2.4x EBITDA Free cash flow bridge Q3 2023 AED 548 million in H1 dividends distributed in Q3 2023 64.9% Margin 70.5% Total borrowings Cash & cash equivalents + Deposits As of September 30, 2023 As of September 30, 2023 1 Key drivers (YoY): N
Slide 18: Investment Highlights
INVESTMENT HIGHLIGHTS
Slide 19: Salik: The Gateway to Opportunities
Salik: The Gateway to Opportunities 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-Ligh
Slide 20: Appendix
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Slide 21: Annual and quarterly trips by gate
Annual and quarterly trips by gate Total Trips (Mn) FY 2019 FY 2020 FY 2021 FY 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Airport Tunnel 29.3 21.1 23.6 25.9 6.6 6.3 6.1 6.9 7.4 7.0 7.0 Al Barsha 105.7 72.9 93.2 107.6 27.6 26.2 24.5 29.4 30.1 28.9 26.8 Al Garhoud Bridge 80.9 53.6 66
Slide 22: Thank You
THANK YOU For enquiries, please contact Investor Relations: Mohamed Zein Head of Investor Relations E: Mohamed.Zeinelabedin@salik.ae