Sal Saudi Logistics Services Company · TADAWUL:4263
Sal Saudi Logistics Services — Q1 2024 Earnings Presentation
24 slides from Sal Saudi Logistics Services's earnings presentation, May 16, 2024
Slide 1: SAL Earnings Call 1st Quarter 2024
SAL Earnings Call 1st Quarter 2024 16 May 2024 sal.sa RESTRICTED
Slide 2: Disclaimer
Disclaimer This document has been prepared by SAL Saudi Logistics Services Co. solely for presentation purposes and the information included therein shall not be construed as legal, tax, investment, financial or other advice, and it has not been independently verified and no representation or warran
Slide 3: Today’s agenda
Today’s agenda Shareholding Structure and Market Information Section 1 Introduction to SAL and operations overview Section 2 Financial overview Section 3 Corporate governance and ESG Section 4 sal.sa 3 RESTRICTED
Slide 4: Shareholding Structure and Market Information
Section 1 Shareholding Structure and Market Information sal.sa RESTRICTED
Slide 5: Shareholding Structure and Market Information
Shareholding Structure and Market Information Share Information Market Saudi Exchange, Saudi Arabia Currency SAR Listing date 2023 1st November 2023 30% Saudi Arabia Airline Financial year-end 31st December Corporation 49% Market capitalization (SAR bn)¹ 19.25 Tarabut Air Cargo Services Company 21%
Slide 6: SAL’s Presenters’ Team
SAL’s Presenters’ Team Faisal Al Bedah Haydar Ucar CEO & Managing Director Chief Financial Officer ▪ CEO & Managing Director since February ▪ CFO at SAL since May 2024 2022 ▪ Previously served as CFO in DSV Turkey and ▪ Former Secretary General of the Saudi Export head of corporate accounting at DSV
Slide 7: Introduction to SAL and Business Overview
Section 2 Introduction to SAL and Business Overview sal.sa RESTRICTED
Slide 8: Q1 2024 Financials Released
Q1 2024 Financials Released NOTE, all figures in this document have been rounded to the nearest thousand. sal.sa * Calculated on weighted average number of shares of 60,505,000. 8 RESTRICTED
Slide 9: SAL: A leading cargo handling player with a global logistics solutions network
SAL: A leading cargo handling player with a global logistics solutions network Key performance metrics Presence at KSA airports Global logistics solutions presence Major airport Minor airport SAR 453m 57.4% +169k sqm Q1 2024 Revenue Q1 2024 EBITDA margin Cargo terminal area (Q1 2023: SAR 340m) (Q1 2
Slide 10: Expertise across a broad spectrum of cargo handling services
Expertise across a broad spectrum of cargo handling services Cargo handling services I Import T Transfer E Export Airside Landside Value Added I T E I T E I T I T I T E T I T Storage and Delivery Aircraft Ramp Handling Cargo Handling Terminal Handling Cold Chain Escorting Road Feeder Services Screen
Slide 11: Dominant market share at strategically located stations
Dominant market share at strategically located stations SAL’s leadership all major stations in the KSA provides significant barriers to entry Jeddah¹ Riyadh¹ Flights handled +172 Flights handled +192 (per day) (per day) 1st Quarter volume 117 tons 1st Quarter volume 107k tons handled in 2024 handled
Slide 12: A comprehensive service offering across logistics value-chain
A comprehensive service offering across logistics value-chain Logistics solutions services End-to-end solutions Special Projects Customs Clearance and Warehousing Motorsports, Events & Sea Freight Air Freight Land Freight Project Logistics Tailor-made Solutions Customs Clearance Warehousing Exhibiti
Slide 13: Fulfilment as a natural addition to the logistics value chain
Fulfilment as a natural addition to the logistics value chain Attractive market opportunity Completed Initiatives Ongoing Initiatives sal.sa 13 RESTRICTED
Slide 14: Financial overview
Section 3 Financial overview sal.sa RESTRICTED
Slide 15: Financial snapshot of SAL
Financial snapshot of SAL Cargo handling Logistics solutions Revenue SAR 453m Overview Strong expertise across a broad spectrum of cargo (Q1 2023: SAR 340m) Offers a comprehensive service portfolio across logistics handling services with presence across all the major value-chain enabled by a global
Slide 16: ... growth of core Cargo Handling business
... growth of core Cargo Handling business Cargo handling revenues Commentary in SARm 366 294 ◆ Business is growing on the back of high- 250 24% 216 18% volume growth with record high tonnages. 16% 209 Landside revenue 155 119 137 ◆ Which also drives and supports the 139 157 Airside revenue landside
Slide 17: ...as expanding Logistics business
...as expanding Logistics business Logistics Revenue Commentary in SARm 87 ◆ Logistics revenue almost doubled in revenue. 89% 46 ◆ Continue to expand across sectors such as 33 39% government, events, and Healthcare. Q1 2022 Q1 2023 Q1 2024 Diversified client base 24% 34% 42% sal.sa Entertainment & A
Slide 18: …translating into attractive profitability
…translating into attractive profitability EBITDA and EBITDA Margin Commentary in SARm 57.4% 500 60.0% 46.3% ◆ EBITDA margin reached 57.4% in Q1 2024 42.6% 400 37.8% due to increase in Cargo Handling 260 40.0% business, logistics growth and stable cost 300 base. 200 158 120 20.0% 82 ◆ Resulting in d
Slide 19: …and maintaining healthy leverage…
…and maintaining healthy leverage… 1 Net debt evolution Commentary In SARm 1,057 912 ◆ Company’s net debt position improved significantly as business maintain healthy 473 498 growth. ◆ As a result, company leverage ratio reduced to 0.5x. FY 2021 FY 2022 FY 2023 Q1 2024 Leverage Ratio (Net debt / EBI
Slide 20: …resulted in a healthy investors growth
…resulted in a healthy investors growth Cash Flow 1 Commentary in SARm 623 ◆ Consistent cash flow generation resulting 458 from consistent top-line growth as well as prudent capex expenditure. 161 127 ◆ ROCE is increasing on the back of increased profitability. FY 2021 FY 2022 FY 2023 Q1 2024 2 Retu
Slide 21: Corporate governance and ESG
Section 4 Corporate governance and ESG A visionary and experienced Management team with a clear ESG agenda sal.sa RESTRICTED
Slide 22: Experienced management team
Experienced management team C-suite level Other senior management Strong management team with decades of experience… …aligned with a world world-class execution team… 29 16 Amer Abu Obeid Abdulaziz Talal Al Sharif 23 ▪ CEO & Managing Director since February 2022 President, Cargo Handling Chief Share
Slide 23: An established ESG agenda focused on our material ESG issues
An established ESG agenda focused on our material ESG issues Environmental Governance Clean energy Board of directors • Diverse board in experience, industry background, and age • Planning development of solar energy solutions in new terminal • Independent Chairman of the board Fleet electrification
Slide 24: Closing remarks and Q&A
Closing remarks and Q&A Faisal Albedah, CEO sal.sa RESTRICTED
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