Lumi Rental Company · TADAWUL:4262
Lumi Rental — EFG Hermes Investor Conference September 2024
37 slides from Lumi Rental's conference presentation, September 2024
Slide 1: EFG HERMES – Investor Conference
EFG HERMES – Investor Conference September 2024
Slide 2: Vision & Mission
Vision & Mission 1 Lumi Earnings Presentation EFG HERMES | 20 May – Investor Conference | Sep2024 2024 2
Slide 3: Vision and Mission: Next phase of Market Leadership
As Lumi embarks on the next phase of Market Leadership…. Our Vision: Reshape the way people and businesses move across the Kingdom and beyond by digital innovation in the land mobility sector. Our Mission: Create convenience and drive customer loyalty through innovation, operational excellence, and
Slide 4: Lumi's Journey
Lumi’s Journey 1 Lumi Earnings Presentation EFG HERMES | 20 May – Investor Conference | Sep2024 2024 4
Slide 5: From breakeven towards market leadership within less than a decade
CONFIDENTIAL From breakeven towards market leadership within less than a decade, Lumi is focused to maintain growth in the Car Rental industry post IPO Breakeven Period Growth Era Billion Riyal Journey Post IPO Transformation Period Capitalizing on B2B Business Digitalizing B2C Business Maintaining
Slide 6: Strategic Optimization over the Lifecycle of the Assets
CONFIDENTIAL This Journey Was Only Possible Through Strategic Optimization over the Lifecycle of the Assets 1. Fleet Procurement 2. Vehicle Usage Bargaining power with vehicle suppliers & other vendors Maximizing Efficiency and Profitability in Vehicle Usage key dealer relationships for optimal Maxi
Slide 7: Business Segment
Business Segment 1 Lumi Earnings Presentation EFG HERMES | 20 May – Investor Conference | Sep2024 2024 7
Slide 8: Three business lines built on scalable operational infrastructure
CONFIDENTIAL Lumi is structured into three business lines built on powerful and scalable operational infrastructure Lease Rental Used Car Sales (UCS) B2B | Offered for 2 – 5 Years B2B and B2C | Offered for < 12 Months B2B and B2C | Dispose internal vehicles ▪ 3-4 years cycle ▪ 2 years cycle ▪ Mainta
Slide 9: Consistent fleet growth in lease and rental segments
CONFIDENTIAL Consistent fleet growth in lease and rental segments Total Fleet Size (# Vehicles) Total Fleet Composition H1 2024 +34% +50% +29% 33,253 33,518 Rental, 25,971 32.4% 22,296 16,666 Lease, 67.6% 2021 2022 2023 H1 2023 H1 2024 Lease Fleet Size (# Vehicles) Rental Fleet Size (# Vehicles) +29
Slide 10: Business Segment Lease
Business Segment Lease 1 Lumi Earnings Presentation EFG HERMES | 20 May – Investor Conference | Sep2024 2024 10 11
Slide 11: Secured and Delivered Lease Contracts of SAR 2.46 Billion
CONFIDENTIAL Secured and Delivered Lease Contracts of SAR 2.46 Billion 51% YoY Revenue Growth in Lease Segment Lease Revenue (SAR Mn) Cumulative Contract Value (SAR Mn) 2,462 +51% 260 718 370 245 260 337 304 172 87 141 2017 2018 2019 2020 2021 2022 2023 H1 2024 Total Securing increasingly larger cor
Slide 12: 237 Active Clients from 19 Diverse Industries
CONFIDENTIAL Maintaining Growth with 237 Active Clients from 19 Diverse Industries Corporate Retention Rate of 81% and Government Bid Win Rate of 12% Lease Fleet Size (# Vehicles) 22.7K 3.3K Vehicles delivered Lease Fleet 22,657 in H1 2024 20,847 16,110 14,007 178 59 10,849 Active Corporate Active G
Slide 13: Average Lease Revenue of SAR 24K per Vehicle
CONFIDENTIAL Sustaining an Average Lease Revenue of SAR 24K per Vehicle with Increasing Lease Agreement Lease Revenue & Available Lease Vehicles SAR, Th – # of Vehicles Revenue Per 25.7 24 22.2 22.8 23.9 Vehicle Available Lease Vehicles 9,841 12,428 17,427 15,059 21,752 388M 260M 298M 172M 253M 2021
Slide 14: Customized vehicle lease solutions with corporate majority
CONFIDENTIAL Delivering customized vehicle lease solutions with majority of revenue contribution from corporate sector Lease Revenue by Segment – SAR, Mn - % Leasing solutions tailored to corporate and government client needs 388 Flexible Contract period (1 - 5 years) 130 298 34% Comprehensive maint
Slide 15: Enhancing Lease Operations Through In-House Digitalization Solutions
CONFIDENTIAL Enhancing Lease Operations Through In-House Digitalization Solutions Lease Portal for Client Management
Slide 16: Business Segment Rental
Business Segment Rental 1 Lumi Earnings Presentation EFG HERMES | 20 May – Investor Conference | Sep2024 2024 16 1 6
Slide 17: Maintaining Growth in Rental business, Northern Region
CONFIDENTIAL Maintaining Growth in Rental business with Major Contribution from Northern Region Rental Revenue (SAR Mn) Total Revenue From Rental Region Composition (%) H1 2024 +32% 2.92% 6.50% Central Region 15.57% Northern Region 20.30% Western Region 173 228 Southern Region 54.69% Eastern Region
Slide 18: Omni-Channel Services across 20 Major cities
CONFIDENTIAL Omni-Channel Services across the kingdom covering 20 Major cities 20 Major Cities 41 Rental Branches 17 Airport Branches 24 Downtown Branches Leveraging Multiple Channels to Enhance Customer Experience and Maximize Fleet Utilization Confidential 18
Slide 19: Average Rental Revenue of SAR 39K Per Vehicle
Optimizing Utilization and Sustaining an Average Rental Revenue of SAR 39K Per Vehicle Average Rental revenue Per Vehicle & Available Vehicles Simple Average SAR, Th – # of Vehicles (Simple Average) Revenue Per Vehicle 40.7 39.5 35.7 38.2 39.3 Available Rental 9,075 11,634 4,513 7,053 10,348 Vehicle
Slide 20: Customized vehicle rental solutions, corporate majority
Delivering customized vehicle rental solutions with majority of revenue contribution from corporate sector Rental Revenue by Segment – SAR, Mn - % 12 Comprehensive Rental Services 3% 388 Growing modern and well-diversified fleet. 11 4% 178 48% High-quality & customized service, including: 298 5 • ex
Slide 21: Enhancing Rental Operations Through In-House Digitalization Solutions
CONFIDENTIAL Enhancing Rental Operations Through In-House Digitalization Solutions Mobile Application and Website for Bookings • Easy 4-step booking process. • Convenient online payments. • Ability of booking extension online • Automated cancellation and refunds Rental Revenue for B2C via Digital Ch
Slide 22: Business Segment Used Car Sales
Business Segment Used Car Sales 1 Lumi Earnings Presentation EFG HERMES | 20 May – Investor Conference | Sep2024 2024 22 2 2
Slide 23: Efficient Fleet Turnover and Purchase Price Recovery
Ensuring Efficient Fleet Turnover Achieving Competitive Purchase Price Recovery UCS Revenue (SAR Mn) Sold vehicles (over the period) +25% CAGR +65% 5,665 2,968 3,568 1,846 1,976 3,733 2019 2020 2021 2022 2023 H1 2024 Purchase price recovery (%) 74% 72% 71% 66% 154 255 36 36 34 31 H1 2023 H1 2024 202
Slide 24: Sold 263 vehicles through Showroom to B2C Customers
Sold 263 vehicles through Showroom to the B2C Customers Achieving 75% Purchase Price Recovery Ratio from Direct Sales Riyadh Jeddah Dammam 263 Vehicles Sold in H1 2024 34 Average Age (Months) 75% Purchase Price Recovery 24
Slide 25: Enhancing UCS Operations Through In-House Digitalization Solutions
Enhancing UCS Operations Through In-House Digitalization Solutions Used Car Sales Bidding Platform • User-Friendly Selection and Bidding Process. • Efficient Backend Operations. • B2C car sales application in planning. 565 Registered Buyers Account 3.5K Vehicles Sold in 2024 63 No. of Online Auction
Slide 26: Focusing on Broader Business Opportunities
Focusing on Broader Business Opportunities 1 Lumi Earnings Presentation EFG HERMES | 20 May – Investor Conference | Sep2024 2024 26 2 6
Slide 27: Business Expansion to Capture the Opportunities
Business Expansion to Capture the Opportunities in the Right Time Business Opportunities Truck Rental Hajj & Umrah Transportation Staff Transportation • Hired seasoned industry experts to run • Acquired NAQABA license to operate • High demand for buses for staff the business unit. transport for pilg
Slide 28: Unlocking Opportunities in Saudi Arabia's Truck Rental Market
Unlocking Opportunities in Saudi Arabia's Truck Rental Market Industry Opportunity Vision 2030-Driven Growth Development of Logistic Areas Logistics Growth The Saudi Arabia truck rental Saudi Arabia is investing $7.7 Saudi Arabia's transport and market is projected to grow at billion in developing 1
Slide 29: Expanding into Hajj & Umrah Transportation Industry
Driving Value through Expanding into Hajj & Umrah Transportation Industry Industry Opportunity Increasing Pilgrim Numbers Saudi government is investing Infrastructure Modernization Saudi Arabia aims to welcome $82.7 billion into projects to The government is making 30 million pilgrims annually by bo
Slide 30: Capitalizing on Staff Transportation Demand in Saudi Arabia
Capitalizing on Staff Transportation Demand in Saudi Arabia Industry Opportunity Workforce Growth $1 trillion Investment by 2030 Development in remote areas The construction sector in Saudi Arabia is investing heavily requires transporting Saudi Arabia employs over 2.5 in mega projects like NEOM, t
Slide 31: Other Initiatives
Other Initiatives 1 Lumi Earnings Presentation EFG HERMES | 20 May – Investor Conference | Sep2024 2024 31 3 1
Slide 32: Investing in Employee Development with Training Programs
Investing in Employee Development with Relevant Training Programs 4,725 Hours of Training conducted for 1,321 Trainees in H1 2024 Internal Systems ERP Performance Evaluation 459 459 297 198 159 159 Trainees Hours Trainees Hours Trainees Hours Customer Service Defensive driving course Data Analysis 1
Slide 33: Financial Overview
Financial Overview 1 Lumi Earnings Presentation EFG HERMES | 20 May – Investor Conference 2024 | Sep 2024 33 3 3
Slide 34: Revenue of SAR 744M in H1 2024, growth of 49%
Lumi has generated a revenue of SAR 744M in H1 2024 with a growth of 49% compared to H1 2023 SAR (Millions) FY2021 FY2022 FY2023 H1 2023 H1 2024 +112% +49% Revenue 1,106 744 521 783 500 +131% +21% Gross Profit 381 209 165 260 173 783 1,106 521 Gross Profit Margin % 32% 33% 34% 35% 28% +124% +23% EBI
Slide 35: Operational Efficiency Reflected in EBITDA and Adjusted EBITDA
Enhanced Operational Efficiency Reflected in EBITDA and Adjusted EBITDA Performance SAR (Millions) FY2021 FY2022 FY2023 H1 2023 H1 2024 EBITDA +63% +26.9% Earning before interest, Tax, Depreciation and Amortization 309 437 503 271 344 EBITDA Margin % 60% 56% 46% 54% 46% +111% +51.6% Adjusted EBITDA
Slide 36: Flexible Capital Structure defined for Business Growth
Flexible Capital Structure defined for Business Growth FY2021 FY2022 FY2023 H1 2023 H1 2024 RoA 9.3% 9.0% 6.3% 9.8% 5.5% Net Income / Average Assets RoIC 14.8% 16.5% 12.3% 16.3% 11.8% NOPAT / (Total Equity + Total Debt) Net Debt/Equity - 0.5 1.3 0.9 1.6 (Total Debt – Cash) / Equity Net Debt/EBITDA -
Slide 37: Thank You
Thank You 1 Lumi Earnings Presentation EFG HERMES | 20 May – Investor Conference 2024 | Sep 2024 37 3 7
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