Salik Company Pjsc · DFM:SALIK
Salik Company Pjsc — Q1 2025 Earnings Presentation
29 slides from Salik Company Pjsc's earnings presentation, May 2025
Slide 1: Q1 2025 Financial Results Presentation
Q1 2025 Financial Results Presentation May 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: Why Salik: 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 5.0% 3.9 million 29% GDP growth outlook for Dubai’s population YoY Increase to AED 114 2026 (IMF) increased by 52,000+ billion in total real estate residents in Q1 2025 transaction value in Q1 2025 3.82 million 46% 33% International visitors in Q1 2025,
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) Partnership1 commences Positive Credit Ratings Variable Pricing Core Tolling Business Ancillary Revenue Core Tolling Business Septembe
Slide 7: Highlights in Q1 2025
Highlights in Q1 2025 Financial Highlights TOTAL CHARGEABLE TRIPS REVENUES EBITDA1 NET PROFIT Q1 158.0 MN AED 751.6 MN AED 519.6 MN AED 370.6 MN 2025 Revenue +37.9% YoY +33.7% YoY Trips +33.7% YoY EBITDA Margin: 69.1% Net Profit Margin: 49.3% Operational Highlights Implementation of variable pricing
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 Total Trips (mn) Total Chargeable Trips1 (Q1 2025, mn)2 +35.1% YoY 11.2 +14.7% QoQ 39.3 210.8 158.0 156.0 183.8 107.5 Q1 2024 Q4 2024 Q1 2025 Peak Off Peak Past Midnight Registered Active Accounts (mn) Registered Active Vehicles (mn) +7.3% +9.3% YoY
Slide 10: Evolution of quarterly trips by gate
Evolution of quarterly trips by gate Quarterly Total Trips Quarterly Total Trips by Gate Q1 2022 Q1 2023 Q1 2024 Q1 2025 +35.1% YoY Million 210.8 36.4 30.9 30.1 30.1 29.1 29.1 28.1 27.6 7.4 8.0 26.3 26.1 7.8 6.6 23.2 18.8 21.6 20.7 19.9 19.5 18.8 17.7 17.5 17.3 17.0 16.3 16.1 156.0 14.0 12.9 12.8 12
Slide 11: Introduction of variable pricing supporting annual revenue growth
Introduction of variable pricing supporting annual revenue growth Timing traffic distribution in FY2024 For all days of the year, except Ramadan 8% 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
Slide 12: Providing seamless parking solutions through key partnerships
Providing seamless parking solutions through key partnerships Ancillary Revenue Streams | Parking Payment Solutions Barrier-free parking payment solution operational Salik’s Wallet will be integrated gradually across since July 1, 2024 at world-famous Dubai Mall Parkonic’s current and future locatio
Slide 13: Motor insurance partnership & launch of customized tags initiative
Motor insurance partnership & launch of customized 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, redi
Slide 14: Key Financial Highlights
Why Salik KEY FINANCIAL HIGHLIGHTS
Slide 15: Robust growth across key financial metrics
Robust growth across key financial metrics Revenue Total Chargeable Trips (Q1 2025, mn)*1 +33.7% 11.2 YoY 39.3 AED Million 751.6 158.0 562.1 107.5 Q1 2024 Q1 2025 Peak Off Peak Past Midnight EBITDA Net profit +37.9% +33.7% YoY YoY AED Million AED Million 519.6 370.6 376.9 277.3 Q1 2024 Q1 2025 Q1 20
Slide 16: Streamlined business model
Streamlined business model Depreciation, Amortization Total Revenue - Operating Costs = EBITDA - & Net Finance Costs = PBT - Income Tax = Net Profit % 88.6% 9.1% 2.3% 69.1% 54.2% 49.3% of total revenue 68.4 17.5 (149.8) (42.4) (39.8) (36.2) AED Million 665.6 (76.2) (36.6) 519.6 407.2 370.6 Toll usag
Slide 17: Growth in mobility continues to drive strong revenue momentum
Growth in mobility continues to drive strong revenue momentum +33.7% YoY 751.6 651.0 17.5 68.4 562.1 546.1 18.7 532.7 62.1 AED Million 12.0 19.0 58.9 12.9 57.2 58.7 665.6 570.2 491.1 462.7 468.4 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Toll usages fees Fines Other¹ 17 1. Other revenue includes tag ac
Slide 18: Consistent quarterly revenue from toll usage fees
Consistent quarterly revenue from toll usage fees +35.5% 665.6 570.2 492.9 491.1 AED Million 454.2 455.3 462.7 468.4 426.2 443.7 443.1 421.1 400.2 386.5 337.3 351.1 351.7 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 Q1-25 18
Slide 19: Robust profitability in Q1 2025, with EBITDA up 37.9%
Robust profitability in Q1 2025, with EBITDA up 37.9% EBITDA Evolution (AED million) EBITDA (AED million) 81.9% 76.1% 65.9% 68.9% Margins since 2023 reflect 67.1% Margin 69.1% Salik’s new cost profile as a concessionaire +13.6% 189.5 YoY 519.6 (27.0) (11.9) (7.9) Concession Full Year of 67.1% 69.1%
Slide 20: Q1 2025 net profit up 33.7% YoY
Q1 2025 net profit up 33.7% YoY Net Profit Evolution (AED million) Net Profit (AED million) 49.3% Margin Net Profit margin before tax 54.2% Margins since 2023 reflect 81.5% 70.1% 52.1% 50.8% Salik’s new cost profile as Net Profit margin after tax 49.3% a concessionaire 189.5 (27.0) +6.1% (25.0) 49.3
Slide 21: Solid cash generation, positive working capital dynamics
Solid cash generation, positive working capital dynamics Free cash flow evolution (AED million) Free cash flow bridge Q1 2025 (AED million) 72.8% 79.9% 68.7% 63.6% 69.1% Margin 83.4% +0.5% YoY 62.7% 83.4% Concession begins July 12.5 0.0 626.7 2022 94.3 -0.2 Full year of concession fees 1,512.5 1,457
Slide 22: Healthy balance sheet with conservative leverage of 2.7x EBITDA
Healthy balance sheet with conservative leverage of 2.7x EBITDA Conservative leverage of 2.7x EBITDA Strong credit ratings Long term borrowings and related Cash & cash equivalents and Moody’s assigned Salik a first-time Long-Term party payable liabilities 2 Short Term Deposits Issuer Default Rating
Slide 23: Outlook
Why Salik OUTLOOK
Slide 24: Guidance: expectations for FY 2025 remain unchanged
Guidance: expectations for FY 2025 remain unchanged Positive FY 2025 guidance reflects contribution from two new gates introduced in November 2024 and introduction of variable pricing. FY 2024 Q1 2025 FY 2025 Normalized: Key Assumptions Actual Actual Guidance 4%-5% i) Incremental revenue from 2 new
Slide 25: Guidance: mid- and long-term expectations for ancillary revenues
Guidance: mid- and long-term expectations for ancillary revenues Medium to long term expectation: 2026-2030 Key Assumptions Dubai Mall Parking Generated AED 5.8m for the last 6 months in 2024 and 2026 2030 continuing to generate similar revenues in 2025 Parking Payment Solutions AED 30-50 million AE
Slide 26: Concluding remarks – a strong start to the year
Concluding remarks – a strong start to the year HEALTHY PERFORMANCE AND STRONG REVENUE POSITIVE GUIDANCE FOR 2025, SUPPORTED BY ADDITION PERFORMANCE ALONGSIDE GOOD PROGRESS ON OF TWO NEW GATES, INTRODUCTION OF VARIABLE PRICING & AMBITION TO BECOME A GLOBAL LEADER IN MOBILITY CONTRIBUTION FROM ANCILL
Slide 27: Appendix
Why Salik APPENDIX
Slide 28: Attractive dividend profile
Attractive dividend profile This dividend policy is designed to reflect the Company’s expectation of AED 544.7 million AED 619.8 million AED 1,164.5 million (100% of H1 2024 net profit) (100% of H2 2024 net profit) (100% of 2024 net profit) Historical Cash Dividends Distribution (AED million) 548 55
Slide 29: Thank You
THANK YOU For enquiries, please contact Investor Relations: Wassim El Hayek Head of Investor Relations E: wassim.elhayek@salik.ae