Salik Company Pjsc · DFM:SALIK
Salik Company Pjsc — Q2 2023 Earnings Presentation
22 slides from Salik Company Pjsc's earnings presentation, August 2023
Slide 1: Q2 2023 Financial Results Presentation
Q2 2023 Financial Results Presentation August 2023 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: The Emirate of Dubai's exclusive toll gate operator
The Emirate of Dubai’s exclusive toll gate operator Operating as a standalone entity since 1 July 2022 49-year concession with RTA, ending in 2071 Established in 2007 Exclusivity in Dubai Exclusive right to collect tolls from the existing 8 toll gates and from any future toll gates in Dubai Best-in-
Slide 4: Key Strategic Highlights
a Ws, » KEY STRATEGIC HIGHLIGHTS
Slide 5: Key strategic highlights
Key strategic highlights A new record revenue-generating trips Strong performance shown by 13.1% Salik to distribute AED 548 million in Strong growth in account and vehicle and toll usage revenues in Q2 2023, YoY revenue growth and robust dividends (100% of H1 2023 net profit) registrations amidst s
Slide 6: Key financial highlights
Key financial highlights # Revenue - Revenues EBITDA1 Net Profit Generating Trips H1 2023 Net Margin: 52.8% Trips Revenues EBITDA +10.7 % YoY +9.7% YoY Margin: 66.9% Q2 2023 Trips Revenue EBITDA Net Margin: 52.8% +13.8% YoY +13.1% YoY Margin: 66.9% +0.2% QoQ -0.7% QoQ 6 1. EBITDA is profit for the p
Slide 7: Macroeconomic outlook supports Salik's growth
Macroeconomic outlook supports Salik’s growth Dubai continues to retain and attract talent STRONG ECONOMIC PERFORMANCE IN 2023 AED 32 trillion economic plan to double the size of Dubai's economy in the next • Dubai population continues to witness growth with a forward-looking growth decade and conso
Slide 8: Key Mobility Highlights
KEY MOBILITY HIGHLIGHTS
Slide 9: Continued growth in Salik's customer base
Continued growth in Salik’s customer base Registered active accounts (mn) Registered active vehicles (mn) +5.2% +8.2% YoY YoY +2.4% +2.0% QoQ QoQ 2.16 3.7 3.9 4.0 2.11 0.2 0.2 0.2 1.7 1.7 1.8 2.05 1.8 2.0 2.0 Q2 2022 Q1 2023 Q2 2023 Q2 2022 Q1 2023 Q2 2023 Dubai Other Emirates Non-UAE Total Tags sol
Slide 10: Breaking records: record number of revenue-generating trips
Breaking records: strong momentum continued in Q2 2023 with record number of revenue-generating trips Trips +12.1% +13.2% +13.7% YoY YoY YoY -0.5% +0.1% +0.2% QoQ QoQ QoQ Million 146.9 146.1 130.3 115.2 115.3 101.9 100.1 113.6 113.8 Total trips Net toll traffic¹ Revenue-generating trips² Q2 2022 Q1
Slide 11: Q2 2023 revenue-generating trips: a comprehensive overview
Q2 2023 revenue-generating trips: a comprehensive overview +13.8% YoY Revenue-generating trip contribution1 +15.7% +8.6% +9.1% +11.3% +13.7% +52.4% +17.7% +9.7% +9.2% YoY YoY YoY YoY YoY Gate Q2’23 Q2’22 YoY YoY YoY YoY Al Barsha 21% 21% Million Al Safa 19% 20% Al Garhoud 15% 15% Bridge Al Mamzar 9%
Slide 12: H1 2023 revenue-generating trips: a comprehensive overview
H1 2023 revenue-generating trips: a comprehensive overview Revenue-generating trip +10.7% YoY contribution H1 2023 +25.2% +13.5% +6.7% +8.3% +11.1% +10.3% +8.9% +8.2% +14.0% YoY YoY YoY YoY YoY YoY YoY YoY Al Barsha 21% YoY Million Al Safa 19% Al Garhoud Bridge 15% Al Mamzar North 9% +9.6% HoH Jebel
Slide 13: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Why Salik
Slide 14: Growth in mobility continues to drive strong revenue growth
Growth in mobility continues to drive strong revenue growth +9.7% YoY +13.1% 1,037 YoY 945 19 19 108 -0.6% 104 QoQ AED Million 520 517 457 11 9 6 55 53 910 50 821 454 455 400 Q2 2022 Q1 2023 Q2 2023 H1 2022 H1 2023 Toll usages fees Fines and penalties Other¹ 14 1. Other revenue includes tag activati
Slide 15: Salik records highest quarterly revenue from toll usage fees in Q2 2023
Salik records highest quarterly revenue from toll usage fees1 in Q2 2023 +9.5% CAGR +6.0% 454 455 430 406 400 399 359 366 363 AED Million 351 316 201 189 187 194 171 117 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q1 Q2 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 16: Q2 2023 EBITDA margin of 66.9% highlights resilience of business model
Q2 2023 EBITDA margin of 66.9% highlights the resilience of business model EBITDA Net Profit 66.8% Margin 66.9% 52.9% Margin 52.8% 3 348 346 (4) (0) (1) Q1 2023 O&M & Δ in revenue Concession Other income Q2 2023 EBITDA related fees and EBITDA expenses expenses Key drivers (QoQ): Key drivers (QoQ): (
Slide 17: Balance sheet remains healthy with leverage at 2.3x EBITDA
Balance sheet remains healthy with leverage at 2.3x EBITDA Free cash flow bridge – Q2 2023 H1 2023 dividends of AED 548 million approved for distribution 66.9% Margin 69.1% Total borrowings Cash & cash equivalents As of June 30, 2023 As of June 30, 2023 Key drivers (YoY): Net debt Net debt-to-T12M E
Slide 18: Investment Highlights
INVESTMENT HIGHLIGHTS
Slide 19: Salik: The Gateway to Opportunities
Salik: The Gateway to Opportunities Exclusive Toll Operator for Dubai’s Road Network in Strong Macro Growth Tailwinds from Dubai’s Custom-Built Technology Underpinning Efficient and a City Where Car Use is Dominant Ambitious Expansion Plans and Additional Growth Seamless Operations Levers Capex-Ligh
Slide 20: Appendix
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Slide 21: Trips by gate
Trips by gate Total Trips (Mn) FY 2019 FY 2020 FY 2021 FY 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Airport Tunnel 29.3 21.1 23.6 25.9 6.6 6.3 6.1 6.9 7.4 7.0 Al Barsha 105.7 72.9 93.2 107.6 27.6 26.2 24.5 29.4 30.1 28.9 Al Garhoud Bridge 80.9 53.6 66.6 78.1 19.5 18.6 18.8 21.2 21.6 21.9
Slide 22: Thank you
THANK YOU For enquiries, please contact Investor Relations: Mohamed Zein Head of Investor Relations E: Mohamed.Zeinelabedin@salik.ae