Salik Company Pjsc · DFM:SALIK
Salik Company Pjsc — Q3 2022 Earnings Presentation
20 slides from Salik Company Pjsc's earnings presentation, Nov 10, 2022
Slide 1: Salik – Q3 2022 Financial Results Presentation
Salik – Q3 2022 Financial Results Presentation 10 November 2022 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: High quality core transportation infrastructure asset, serving Dubai's busiest toll road corridor
High quality core transportation infrastructure asset, serving Dubai’s busiest toll road corridor Operating as a standalone entity since 1st July 2022 Established in 2007 Exclusivity in Dubai 49-year concession with RTA, until 2071 Exclusive right to collect tolls from the existing 8 toll gates and
Slide 4: Key Business Highlights
[ KEY BUSINESS HIGHLIGHTS
Slide 5: Key strategic highlights
Key strategic highlights A landmark IPO which drew in New corporate identity Chief Technology Officer and Solid performance, with 16% orders exceeding USD 50 unveiled; rebranding Support Services Director YoY growth in revenues in 9M billion complete for toll gates appointed, and all key 2022, a Q3
Slide 6: Key financial highlights
Key financial highlights 9M 2022 Total Trips Per Day 9M 2022 Revenue 9M 2022 EBITDA 9M 2022 Net Profit +15.1% YoY +15.8% YoY Margin: 78.5% Margin: 74.7% Q3 2022 Total Trips Per Day Q3 2022 Revenue Q3 2022 EBITDA Q3 2022 Net Profit +10.6% YoY +9.1% YoY Margin: 65.4% Margin: 54.3% 6
Slide 7: Key Operational Highlights
KEY OPERATIONAL HIGHLIGHTS
Slide 8: Strong recovery and growth in travel activity, supported by positive economic activity
Strong recovery and growth in travel activity, supported by positive economic activity 9M Trips Q3 Trips +15.1% +10.6% +16.1% 424.5 +16.6% +10.3% 394.8 +9.9% 135.3 343.0 128.0 327.8 322.9 306.6 115.8 302.0 103.4 102.1 262.8 260.0 97.9 96.6 Million Million 88.8 87.9 Total trips Net toll traffic Reven
Slide 9: Traffic performance by toll gate – 9M 2022
Traffic performance by toll gate – 9M 2022 +15.1% Total trip contribution 9M 2022 Al Barsha 19.8% +6% +9% +13% +28% +9% YoY YoY +21% YoY +17% YoY YoY YoY Al Safa 19.1% +19% YoY YoY Million Al Garhoud Bridge 14.4% Al Mamzar North 13.4% Al Mamzar South 12.3% Al Maktoum Bridge 9.3% Jebel Ali 6.9% Airpo
Slide 10: Traffic performance by toll gate – Q3 2022
Traffic performance by toll gate – Q3 2022 +10.6% Total trip contribution Q3 2022 +8% +4% Al Barsha 19.1% +7% +5% +16% +17% YoY YoY +12% YoY YoY +13% YoY YoY YoY YoY Al Safa 18.9% Al Garhoud Bridge 14.7% Million Al Mamzar North 13.7% Al Mamzar South 12.7% Al Maktoum Bridge 9.3% Jebel Ali 6.7% Airpor
Slide 11: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Why Salik
Slide 12: Strong revenue growth led by the increase in travel activity
Strong revenue growth led by the increase in travel activity +15.8% 1,390 +9.1% 29 1,201 153 445 AED Million AED Million 27 408 1,208 10 134 11 49 1,040 46 386 352 9M 2021 9M 2022 Q3 2021 Q3 2022 Toll usage fees Fines & penalties Other Toll usage fees Fines & penalties Other 12
Slide 13: Robust profitability; Q3 first quarter to reflect Salik's actual expenses as a standalone entity
Robust profitability; Q3 first quarter to reflect Salik’s actual expenses as a standalone entity EBITDA & EBITDA MARGIN +12.5% Margin Salik was carved 78.5% out in June 2022 80.8% -12.5% 1,091 970 Q3 Q3 AED million Change 2021 2022 81.5% 65.4% 333 291 Corporate allocation expense 25 - -25 Q3 2021 Q3
Slide 14: Revenue to earnings bridge
Revenue to earnings bridge Q3 2022 AED Million - - 281 281 14 * Business partner commissions are included under ‘other expenses’ in Salik’s financial statements
Slide 15: Attractive working capital profile thanks to advance customer recharges
Attractive working capital profile thanks to advance customer recharges • RTA, E-Government, and Dubai Taxi Corporation were reclassified AED million 30-Sep-22 1-Jul-22 Change 1 as related parties as per IFRS • Decrease in trade and other receivables was mainly due to Net working capital 2 (124) (10
Slide 16: Solid cash generation, supported by positive working capital dynamics and minimal capex
Solid cash generation, supported by positive working capital dynamics and minimal capex 9M 2022 Q3 2022 81.5% 82.4% 65.4% 70.6% AED Million AED Million - - 281 281 Margin Margin * Changes in working capital as per the cash flow statement 16 ** Free cash flow excludes one-time upfront concession fee
Slide 17: Healthy balance sheet with net debt-to-EBITDA of 3.0x
Healthy balance sheet with net debt-to-EBITDA of 3.0x Sources vs. Uses - 9M 2022 Capital, 221 Finance cost paid, net, 28 FCF, 1,140 Net distributions to parent*, 827 Total borrowings Cash & cash equivalents As of Sep 30, 2022 As of Sep 30, 2022 AED Million - 281 Upfront Borrowings, concession 3,983
Slide 18: Investment Highlights
INVESTMENT HIGHLIGHTS
Slide 19: Salik: The Gateway to Opportunities
Salik: The Gateway to Opportunities Exclusive Toll Operator for Dubai’s Strong Macro Growth Tailwinds from Custom-Built Technology Road Network in a City Where Car Use Dubai’s Ambitious Expansion Plans Underpinning Efficient and Seamless is Dominant Operations Positioned to Benefit from Additional F
Slide 20: Thank You
THANK YOU For enquiries, please contact Investor Relations: Mohamed Zein Head of Investor Relations E: Mohamed.Zeinelabedin@salik.ae