Salik Company Pjsc · DFM:SALIK
Salik Company Pjsc — Q1 2025 Earnings Presentation
45 slides from Salik Company Pjsc's earnings presentation, May 2025
Slide 1: Investor Presentation May 2025
Investor 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: The Emirate of Dubai's exclusive toll gate operator
The Emirate of Dubai’s exclusive toll gate operator ATTRACTIVE MACRO STRATEGIC & OUR BUSINESS MODEL SALIK AT A GLANCE OUR STRATEGY FINANCIAL HIGHLIGHTS OUTLOOK CONDITIONS OPERATIONAL HIGHLIGHTS 18+ YEARS 100% Aspiration to become a leader in providing sustainable and smart mobility solutions OPERATI
Slide 4: Salik's attractive investment proposition
Salik’s attractive investment proposition ATTRACTIVE MACRO STRATEGIC & OUR BUSINESS MODEL SALIK AT A GLANCE OUR STRATEGY FINANCIAL HIGHLIGHTS OUTLOOK CONDITIONS OPERATIONAL HIGHLIGHTS 1 2 3 4 Global leader in Stable revenue- Robust financials & Dominant car usage in sustainable and smart generating
Slide 5: Consistent strategic progress since listing
Consistent strategic progress since listing ATTRACTIVE MACRO STRATEGIC & OUR BUSINESS MODEL SALIK AT A GLANCE OUR STRATEGY FINANCIAL HIGHLIGHTS OUTLOOK CONDITIONS OPERATIONAL HIGHLIGHTS Landmark IPO on Dubai Arabian Automobile Dubai Mall Partnership Assigned Inaugural Introduction of Financial Marke
Slide 6: 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 7: Attractive Macroeconomic Conditions
ATTRACTIVE MACROECONOMIC CONDITIONS
Slide 8: Macroeconomic outlook supports Salik's growth
Macroeconomic outlook supports Salik’s growth ATTRACTIVE MACRO OUR STRATEGY STRATEGIC & OUR BUSINESS MODEL SALIK AT A GLANCE FINANCIAL HIGHLIGHTS OUTLOOK CONDITIONS OPERATIONAL HIGHLIGHTS 5.0% 3.9 million 29% GDP growth outlook for Dubai’s population YoY Increase to AED 114 2026 (IMF) increased by 5
Slide 9: Salik gates are strategically located across Dubai
Salik gates are strategically located across Dubai ATTRACTIVE MACRO OUR STRATEGY STRATEGIC & OUR BUSINESS MODEL SALIK AT A GLANCE FINANCIAL HIGHLIGHTS OUTLOOK CONDITIONS OPERATIONAL HIGHLIGHTS Al Mamzar North 2 New Toll Gates Al Mamzar South Floating Bridge Al Maktoum Airport Tunnel Al Garhoud Busin
Slide 10: Connecting the centres of Dubai in a city where car use is dominant
Connecting the centres of Dubai in a city where car use is dominant ATTRACTIVE MACRO OUR STRATEGY STRATEGIC & OUR BUSINESS MODEL SALIK AT A GLANCE FINANCIAL HIGHLIGHTS OUTLOOK CONDITIONS OPERATIONAL HIGHLIGHTS Dubai Journey Mode Split Exclusive operator Serving high-population areas 12% Private Car
Slide 11: Our Strategy
OUR STRATEGY
Slide 12: Salik's strategic evolution to becoming a global leader
Salik’s strategic evolution to becoming a global leader ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Salik aspires to become a global leader in providing sustainable and smart mobility solutions. Over th
Slide 13: 12 core objectives under 4 strategic pillars
Over the next 5 years, Salik will pursue 12 core objectives under its 4 strategic pillars ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS 1 2 3 4 Thrive in the tolling Achieve sustainable Establish future-p
Slide 14: ESG
Forward thinking organization with a sustainable agenda aligned with Dubai’s ESG goals ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Committed to Reduced congestion & fuel Digital Green Clear commitment t
Slide 15: Strategic & Operational Highlights
STRATEGIC & OPERATIONAL HIGHLIGHTS
Slide 16: Robust growth across key Operational metrics
Robust growth across key Operational metrics ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS 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 1
Slide 17: Introduction of variable pricing supporting annual revenue growth
Introduction of variable pricing supporting annual revenue growth ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Timing traffic distribution in FY2024 For all days of the year, except Ramadan 8% The approv
Slide 18: Providing seamless parking solutions through key new partnerships
Providing seamless parking solutions through key new partnerships ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Ancillary Revenue Streams | Parking Payment Solution Barrier-free parking payment solution o
Slide 19: Motor insurance partnership & launch of customised tags initiative
Motor insurance partnership & launch of new customised tags initiative ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE OUR STRATEGY OUR BUSINESS MODEL CONDITIONS OPERATIONAL HIGHLIGHTS Customized Salik Tags Ancillary Revenue Streams | Market Leading Motor Insurance Partne
Slide 20: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 21: Streamlined business model
Streamlined business model ATTRACTIVE MACRO STRATEGIC & SALIK AT A GLANCE OUR STRATEGY FINANCIAL HIGHLIGHTS OUTLOOK OUR BUSINESS MODEL CONDITIONS OPERATIONAL HIGHLIGHTS Depreciation, Amortization Total Revenue - Operating Costs = EBITDA - & Net Finance Costs = PBT - Income Tax = Net Profit % 88.6% 9
Slide 22: Growth in mobility continues to drive strong revenue momentum
Growth in mobility continues to drive strong revenue momentum ATTRACTIVE MACRO STRATEGIC & OUTLOOK SALIK AT A GLANCE OUR STRATEGY FINANCIAL HIGHLIGHTS OUR BUSINESS MODEL CONDITIONS OPERATIONAL HIGHLIGHTS Revenue Evolution Commentary +8.7% • Total revenue growth of 33.7% YoY for the first YoY quarter
Slide 23: Operating cost structure places Salik among the most profitable
Operating cost structure places Salik among the most profitable in the industry ATTRACTIVE MACRO STRATEGIC & OUTLOOK SALIK AT A GLANCE OUR STRATEGY FINANCIAL HIGHLIGHTS OUR BUSINESS MODEL CONDITIONS OPERATIONAL HIGHLIGHTS Operating Costs Evolution Commentary 18.5% 26.7% 37.9% 35.0% 36.9% 35.8% Carve
Slide 24: Resilient EBITDA generation and robust margins
Resilient EBITDA generation and robust margins ATTRACTIVE MACRO STRATEGIC & OUTLOOK SALIK AT A GLANCE OUR STRATEGY FINANCIAL HIGHLIGHTS OUR BUSINESS MODEL CONDITIONS OPERATIONAL HIGHLIGHTS EBITDA Evolution Commentary • Salik has a track record of consistent EBITDA 81.9% 76.1% 65.9% 68.9% 67.1% 69.1%
Slide 25: Advance customer charges drive positive working capital profile
Advance customer charges drive positive working capital profile ATTRACTIVE MACRO STRATEGIC & OUTLOOK SALIK AT A GLANCE OUR STRATEGY FINANCIAL HIGHLIGHTS OUR BUSINESS MODEL CONDITIONS OPERATIONAL HIGHLIGHTS Net Working Capital1 Evolution Commentary Net Working (78.3) (147.4) (192.4) (536.8) (681.2) C
Slide 26: Solid cash generation supported by robust profitability
Solid cash generation supported by robust profitability, positive working capital dynamics and minimal capex ATTRACTIVE MACRO STRATEGIC & OUTLOOK SALIK AT A GLANCE OUR STRATEGY FINANCIAL HIGHLIGHTS OUR BUSINESS MODEL CONDITIONS OPERATIONAL HIGHLIGHTS Free Cash Flow Evolution Commentary • Thanks to S
Slide 27: Healthy balance sheet with conservative leverage of 2.7x EBITDA
Healthy balance sheet with conservative leverage of 2.7x EBITDA ATTRACTIVE MACRO STRATEGIC & SALIK AT A GLANCE CONDITIONS OUR STRATEGY FINANCIAL HIGHLIGHTS OUTLOOK OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Conservative leverage of 2.7x EBITDA Strong credit ratings Long term borrowings and related Ca
Slide 28: Attractive dividend profile
Attractive dividend profile ATTRACTIVE MACRO STRATEGIC & SALIK AT A GLANCE CONDITIONS OUR STRATEGY FINANCIAL HIGHLIGHTS OUTLOOK OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS 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 (
Slide 29: Guidance: expectations for FY 2025 remain unchanged
Guidance: expectations for FY 2025 remain unchanged ATTRACTIVE MACRO STRATEGIC & SALIK AT A GLANCE CONDITIONS OUR STRATEGY FINANCIAL HIGHLIGHTS OUTLOOK OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Positive FY 2025 guidance reflects contribution from two new gates introduced in November 2024 and introdu
Slide 30: Guidance: mid- and long-term expectations for ancillary revenues
Guidance: mid- and long-term expectations for ancillary revenues ATTRACTIVE MACRO STRATEGIC & SALIK AT A GLANCE CONDITIONS OUR STRATEGY FINANCIAL HIGHLIGHTS OUTLOOK OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Key Assumptions Medium to long term expectation: 2026-2030 Dubai Mall Parking Generated AED 5
Slide 31: Our Business Model
OUR BUSINESS MODEL
Slide 32: Concession agreement overview
Concession agreement overview ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Relevant Authorities and Relationship with Salik Key Concession Agreement Terms Legislative Term of the Concession Governmental
Slide 33: Concession agreement overview (cont'd)
Concession agreement overview (cont’d) ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS SALIK’S KEY RIGHTS RTA’S KEY OBLIGATIONS TO SALIK Take necessary actions during the registration Ensure that any operat
Slide 34: Price increase mechanism and concession fee overview
Price increase mechanism and concession fee overview ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Price Increase Mechanism Approval Process • Mechanism for tariff increase that is linked to inflation pro
Slide 35: New gate addition mechanism
New gate addition mechanism In January 2024, Salik announced that it would introduce 2 new gates in Dubai, to become operational by November 2024, taking the total number of gates from 8 to 10 ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUS
Slide 36: Addition of new gates
Addition of new gates ATTRACTIVE MACRO STRATEGIC & FINANCIAL HIGHLIGHTS OUTLOOK SALIK AT A GLANCE CONDITIONS OUR STRATEGY OUR BUSINESS MODEL OPERATIONAL HIGHLIGHTS Detailed Action Plan Followed by RTA RTA’s Process for Assessing New Gate Opportunities Mission Optimise for better traffic management S
Slide 37: Appendix
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Slide 38: Recognised as a global leader
Recognised as a global leader Best Investor Relations by CEO UAE CFO Power List Joins UN Global Most Honored Middle East Compact Companies Reinforcing 2024 Developed commitment to Europe & Emerging Best Investor sustainable business EMEA Executive Relations by CFO practices awards Middle East 38
Slide 39: An Experienced Management Team
An Experienced Management Team • 20+ years track record of achieving • 30+ years experience in finance and • 17+ years of management commercial transformation across a audit including Big4 audit firms experience in public transportation, wide range of projects smart cities and autonomous • 12 years
Slide 40: Annual and quarterly total trips by gate
Annual and quarterly total trips by gate Total Trips (Mn) FY 2021 FY 2022 FY 2023 FY 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Airport Tunnel 23.6 25.9 29.2 31.0 7.4 7.0 7.0 7.7 8.0 7.2 7.6 8.2 7.8 Al Barsha 93.2 107.6 116.6 119.4 30.1 28.9 26.8 30.8 30.9 28.9 28.0
Slide 41: Mobility highlights
Mobility highlights Million Q1 2025 Q1 2024 % ∆ YoY Q4 2024 % ∆ QoQ FY 2024 FY 2023 % ∆ YoY Total trips 210.8 156.0 35.1% 183.8 14.7% 638.2 593.1 7.6% Total chargeable trips 158.0 - - - - - - - Peak trips (AED 6) 39.3 - - - - - - - Low peak trips (AED 4) 107.5 - - - - - - - Past midnight trips (AED
Slide 42: Summary of P&L
Summary of P&L AED million Q1 2025 Q1 2024 % ∆ YoY Q4 2024 % ∆ QoQ FY 2024 FY 2023 % ∆ YoY Revenue 751.6 562.1 33.7% 651.0 15.52% 2,291.9 2,108.6 8.7% Toll usage fees 665.6 491.1 35.5% 570.2 16.7% 1,992.5 1,845.5 8.0% Fines 68.4 58.9 16.2% 62.1 10.2% 236.9 216.8 9.3% Tag activation fees 11.5 9.8 17.
Slide 43: Summary of Cash Flows
Summary of Cash Flows AED million Q1 2025 Q1 2024 % ∆ YoY Q4 2024 % ∆ QoQ FY 2024 FY 2023 % ∆ YoY Operating cash flow before changes in working capital 532.4 387.1 37.5% 449.6 18.4% 1,594.0 1,424.5 11.9% Changes in working capital 94.3 (33.4) -382.0% (46.9) -300.9% (130.8) 29.7 -539.7% Net cash flow
Slide 44: Summary of Financial Position
Summary of Financial Position AED million 31-Mar-25 31-Dec-24 % Δ YtD Total assets, including: 8,494.4 7,985.9 6.4% Cash and cash equivalents 1,041.3 963.7 8.1% Short term deposit with bank (1) 500.5 - - Total liabilities, including: 7,035.8 6,897.9 2.0% Borrowings and related party liabilities (2)
Slide 45: Thank You
THANK YOU For enquiries, please contact Investor Relations: Wassim El Hayek Head of Investor Relations E: wassim.elhayek@salik.ae