Sustained Infrastructure Holding Company · TADAWUL:2190
Sustained Infrastructure — Saudi Industrial Services Company (SISCO) — Q3 2023 Earnings Presentation
33 slides from Sustained Infrastructure's earnings presentation, November 2023
Slide 1: Q3FY23 Earning Presentation
SAUDI INDUSTRIAL SERVICES COMPANY Q3FY23 EARNING PRESENTATION November 2023 sisco.com.sa 1
Slide 2: 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 3: Table of Content
Table of Content 1. STRATEGY IMPLEMENTATION PROGRESS 04 2. HIGHLIGHTS Q3FY2023 09 3. FINANCIAL PERFORMANCE 11 4. PORTFOLIO PERFORMANCE 16 A. PORTFOLIO –CONSOLIDATED ASSETS 17 B. PORTFOLIO –OTHER ASSETS 21 5. SUMMARY 24 • APPENDIX 26 3
Slide 4: Strategy Implementation Progress
Strategy Implementation Progress SISCO | Q3FY23 Earning Presentation | November 2023 | Page 4
Slide 5: 6X26 Strategy Implementation Key Updates
6X26 Strategy Implementation Key Updates • In advanced discussions to finalise Bangladesh concession • Additional concessions being Logistics pursued in East and West Africa • Increased bonded zone warehouse capacity to 100k m2 • Approval of $ 1.69 M of • Work has commenced on Khumra Logistics addit
Slide 6: Capital Allocation of SAR 542 Millions
Capital Allocation of SAR 542 Millions Allocation Commitment Dividends 85.0 15% Share Buyback 6.2 RSPDI 105.0 10% SAR 85M GDI Acquisition 53.8 56% Total committed 250.0 SAR 50M 19% Not yet committed 292.0 Shareholder Total 542.0 SAR 310M Share Buyback SPVs % committed 46.0% SAR millions M&A 40% 80%
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS SISCO | Q3FY23 Earning Presentation | November 2023 | Page 7
Slide 8: Highlights Q3FY2023
Highlights Q3FY2023 Financial highlights Operating highlights Revenue* Ports and Terminals segment performed well with improved gateway SAR 276.1 m 28.6% volumes and GP margin Q3 - 2022: SAR 214.7 m Logistics Parks and Services Q3'23 revenues improved with strong GP margin of 53.5% in Q3’23, We are
Slide 9: Financial Performance
FINANCIAL PERFORMANCE SISCO | Q3FY23 Earning Presentation | November 2023 | Page 9
Slide 10: Income Statement Highlights
Income Statement Highlights SAR millions (adjusted: excludes accounting construction revenue) GROUP REVENUE GROSS PROFIT & MARGIN 776.4 49.3% 52.0% 53.5% 47.4% 53.2% 624.0 412.7 295.7 261.4 276.1 214.7 135.8 147.7 105.8 Q3'22 Q2'23 Q3'23 9M'22 9M'23 Q3'22 Q2'23 Q3'23 9M'22 9M'23 • Q3’23 Group revenu
Slide 11: OPEX And Investment Income
OPEX And Investment Income SAR millions OPERATING EXPENSES INVESTMENT INCOME 8.2 9.7 7.6 23.0 25.3 150.1 136.1 1.3 17.2 0.0 15.0 0.5 54.1 50.7 45.4 5.7 6.4 5.4 10.2 4.1 6.7 2.8 3.5 2.9 -2.1 Q3'22 Q2'23 Q3'23 9M'22 9M'23 Q3'22 Q2'23 Q3'23 9M'22 9M'23 Tawzea SA Talke Others • Q3’23 and 9M2023 operatin
Slide 12: EBITDA and Net Income
EBITDA and Net Income SAR millions ADJUSTED EBITDA & MARGIN ADJUSTED NET INCOME & MARGIN 53.1% 58.2% %58.8 52.0% 58.9% 6.7% 8.1% 8.6% 3.4% 8.5% 457.5 65.6 324.3 162.3 22.4 23.7 152.0 21.1 114.0 14.4 Q3'22 Q2'23 Q3'23 9M'22 9M'23 Q3'22 Q2'23 Q3'23 9M'22 9M'23 • Adjusted Q3’23 Adjusted EBITDA improved
Slide 13: Adjusted Free Cash Flow And Net Debt
Adjusted Free Cash Flow And Net Debt SAR millions ADJUSTED FREE CASH FLOW DEBT -32.6 m -141.9 m 33.6 m 277.3 m 1,080.4 424.2 821.4 787.8 803.2 245.8 282.3 213.2 2022 9M 23 2022 9M'2023 Operating CF (Inflows) Adj. Investing CF (Outflows) FCF Total Debt Cash and Short term deposit Net Debt • Free cash
Slide 14: Portfolio Performance
PORTFOLIO PERFORMANCE SISCO | Q3FY23 Earning Presentation | May 2023 | Page 14
Slide 15: A. Portfolio – Consolidated Assets
A. Portfolio –Consolidated Assets SISCO | Q2FY23 Q1FY23 Earning Presentation | May 2023 | Page 15
Slide 16: Ports & Terminal Snapshot | Q3'FY23
Ports & Terminal Snapshot | Q3’FY23 SAR millions REVENUE * GROSS PROFIT & MARGIN NET INCOME & MARGIN VOLUME (TEUS ‘000) 167.0 209.9 220.6 489.0 624.8 49.6% 52.4% 54.9% 49.6% 54.3% 1.2% 8.2% 11.2% 0.6 10.0% 733 796 835 2,086 2,412 339.2 62.8 242.8 212 151 1,403 1,336 142 109.9 121.1 24.8 138 82.9 72
Slide 17: Logistics, Parks & Services Snapshot | Q3'FY23
Logistics, Parks & Services Snapshot | Q3’FY23 SAR millions REVENUE GROSS PROFIT & MARGIN ADJUSTED NET INCOME & MARGIN * OCCUPANCY (%) 25.3 28.7 32.3 70.3 82.8 48.6% 52.7% 48.7% 45.6% 48.6% 20.3% 22.4% 21.9% 17.0% 21.2% 40.2 17.5 40.0 32.0 80% 11.9 35.9 100% 93% 100% 100% 15.2 15.7 7.1 6.4 27.1 12.3
Slide 18: Water Solution Snapshot | Q3'FY23
Water Solution Snapshot | Q3’FY23 SAR millions VOLUME, WATER SOLD REVENUE GROSS PROFIT & MARGIN NET INCOME & MARGIN (MILLION M3) 22.3 22.7 23.3 64.7 68.8 48.8% 47.3% 47.2% 32.7% 48.4% 31.2% 20.8% 31.9% 9.5% 27.7% 3.9 3.9 3.9 11.5 11.8 7.8 6.4 33.3 19.1 5.1 5.2 27.8 21.1 27.1 2.6 2.9 2.5 11.0 7.4 10.
Slide 19: B. Portfolio – Other Assets
B. Portfolio –Other Assets SISCO | Q2FY23 Earning Presentation | May 2023 | Page 19
Slide 20: TAWZEA Snapshot | Q3'FY23
TAWZEA Snapshot | Q3’FY23 SAR millions REVENUE GROSS PROFIT & MARGIN NET INCOME & MARGIN SISCO SHARE OF NET INCOME 12.6% 13.9% 14.3% 12.1% 12.8% 6.1% 7.2% 6.9% 5.6% 6.7% 304.4 20.4 241.4 39.1 13.4 29.2 117.1 8.1 10.2 89.8 97.1 16.8 5.5 7 13.5 6.7 11.3 3.5 4.1 2.8 Q3'22 Q2'23 Q3'23 9M'22 9M'23 Q2'22
Slide 21: SA TALKE Snapshot | Q3'FY23
SA TALKE Snapshot | Q3’FY23 SAR millions REVENUE GROSS PROFIT & MARGIN NET INCOME & MARGIN SISCO SHARE OF NET INCOME 27.6% 25.8% 28.2% 25.2% 26.8% 19.0% 19.8% 22.2% 17.8% 20.0% 231.5 233.6 46.7 41.3 17.2 58.3 62.6 15.0 79.0 78.0 78.7 21.8 20.1 22.2 15 15.5 17.5 5.4 5.7 6.5 Q3'22 Q2'23 Q3'23 9M'22 9M
Slide 22: Summary
SUMMARY SISCO | Q2FY23 Earning Presentation | May 2023 | Page
Slide 23: Q3 2023: Improving Momentum
Q3 2023: Improving Momentum Q3’23 witnessed a strong Q3’23 gross profit rose 39.6% Q3’23 adjusted net profit Progressing on recovery in business as compared to same quarter last increased 211% as compared to implementation of strategy fundamentals as revenues was year due to strong revenue Q3’22 dri
Slide 24: Appendix
APPENDIX SISCO | Q2FY23 Earning Presentation | May 2023 | Page 24
Slide 25: Strategic Objectives
Strategic Objectives Double group revenue in the next 5 years through Revenue of SAR 2 billion Target ROIC of more 1 organic and inorganic growth while maintaining by 2025 than 12% consistently strong margins. Achieve a diversified portfolio by investing in Future revenue and net income growth to be
Slide 26: Revenue And Gross Profit Composition
Revenue And Gross Profit Composition Ports Logistics Water SAR millions Revenue Composition Gross Profit Composition 105.8 135.8 147.7 295.8 412.7 9.0% 33.3 11.0% 11.0% 20.9 40.2 11.0% 32.0 11.0 10.7 10.6 339.2 15.2 15.7 242.8 78.0% 12.3 109.9 121.1 82.9 80.0% Inner | 9M 2022 Outer | 9M 2023 Q3'22 Q
Slide 27: Income Statement - Quarter
Income Statement - Quarter SAR millions Q2' 23 Q3' 23 Var. Var. % Q3' 22 Q3' 23 Var. Var. % Revenue* 261.3 276.1 14.8 5.7% 214.7 276.1 61.4 28.6% Direct costs* (125.5) (128.6) (3.1) 2.5% (108.9) (128.6) (19.7) 18.1% Gross profit 135.8 147.5 11.7 8.8% 105.8 147.5 41.7 39.4% Operating expenses
Slide 28: Income Statement – 9M 2023
Income Statement – 9M 2023 SAR millions 9M’22 9M’23 Var Var. % Revenue* 624.0 776.4 152.4 24.4% Direct costs* (328.3) (363.7) (35.4) 10.8% Gross profit 295.7 412.7 117.0 39.6% Operating expenses (136.1) (150.1) (14.0) 10.3% Operating profit 159.6 262.6 103.0 64.5% Investment income 22.9 25
Slide 29: Balance Sheet
Balance Sheet SAR millions 9M' 22 9M’23 Fixed Assets 3,745.6 4,092.1 Investments 230.2 303.4 Deferred Tax 5.0 5.7 Current Assets 884.7 1,077.0 Total Assets 4,865.5 5,478.2 Borrowings 670.4 1,039.6 Long Term Liabilities 1,536.3 1,548.9 Current Liabilities (excl. borrowings) 429.1 539.1 Total
Slide 30: Cash Flow Statement
Cash Flow Statement SAR millions Q3 2022 Q3 2023 Operating cash flow before working capital 306.4 452.3 Net working capital movement (167.5) (103.3) SAR million Q3' 22 Q3' 23 Cash generated from operating activities 138.9 349.0 Cash At Center 12.8 428.7 Finance charges, Zakat & income tax, EOS
Slide 31: Management Outlook
Management Outlook PORTS LOGISTICS WATER M&A Q3FY23 gateway volumes LogiPoint is expected to complete Improvement of gross profit margins Material progress on improved by 41.2% as compared an additional 25,000 sq m in Water segment, expected to acquisition pipeline with to Q3FY22 and trans-shipment
Slide 32: Digital Media Sentiments Dashboard
Digital Media Sentiments Dashboard Total New Users 9.8K 9.9K 1K increase in new users Q3 - 2023 Q2 - 2023 Total Returning Website Users 1.5K 1.6K 1K increase in returning users New website launch October 10, 2023 October 2023 Analysis After applying the new analytics tool on the new website Desktop
Slide 33: Thank You!
THANK YOU! sisco.com.sa SISCO | Q3FY23 Earning Presentation | November 2023 | Page
Saudi Industrial Services Company (SISCO) — Q3 2023 Earnings Presentation on 6ix