Good afternoon, everyone, and welcome to Salik's full year 2025 earnings presentation. Thank you for joining us today as we close out a landmark year for our company.

My name is Wassim El Hayek, Head of Investor Relations at Salik. On behalf of the team, I would like to thank you all for taking the time to be with us today, and special thanks for Bank of America for hosting this session.

Our speakers today are Mr. Ibrahim Al Haddad, our CEO; Mr.

Maged Ibrahim, our CFO; and Mr. Tariq Ismail, our CTO.

We are also joined by Mr. Tariq Al Mutawaa, Tariq Support Services Director, and Mr.

Hariharan Gopal, our Director of Strategy and Growth, who will be available to address questions during the Q&A. Today's session will begin with an overview for our full year 2025 strategic and operational highlights, followed by a detailed review of our financial performance for the year and the dividend recommendation.

We will then conclude with our outlook and guidance for the full year 2026 before opening the floor for questions. Before we begin, please take a moment to review the disclaimer on this slide, which is relevant to our status as publicly listed company.

Today's session is being recorded and transcribed, and a copy of this presentation is available on our website for your reference. With that, I will now hand over to our CEO, Mr.

Ibrahim Al Haddad.

Thank you, Wassim, and good afternoon, everyone. Before we begin, I would like to briefly comment on the current developments in the region.

These are challenging times for many, and our thoughts are with everyone affected. We sincerely hope for stability and for this period of uncertainty to pass soon, with safety and peace prevailing across the region.

While situations like this naturally bring some concern, I would like to assure our investors that Salik's operations continued as normal, with no impact on system performance. Turning to our earnings presentation, 2025 has been an exceptional year for Salik, marked by record operation and financial achievements alongside the announcement for a special dividend in addition to our commitment to distributing 100% of net profit.

Our core tolling operation remain robust, with toll usage fees representing more than 88% of our revenue, [unclear] Driven by 10 gates across Dubai that served nearly 4.8 million registered active vehicles as of 31st December 2025. Beyond tolling, 2025 represented a year of growth and further diversification, enhancing our ancillary revenue streams primarily across parking payment solutions.

Dubai's macroeconomic environment continues to be a key driver of our growth, with continued population growth, which has grown over 4 million, doubling since 2011, and the GDP, which has maintained its growth trajectory, being the two primary drivers, alongside booming tourism and sustained focus by the government on infrastructure investment. It is clear that the demand for smart mobility solutions remains high, positioning Salik to tap into this momentum and contribute to Dubai's long-term mobility vision.

Salik ambition is to become a global leader in sustainable and smart mobility. That ambition has always been motivated by our strategy, which is anchored around four clear strategic pillars that shape how we operate, grow, and evolve the business.

While we remain focused on strengthening our core tolling platform and advancing ESG stewardship, we are placing an increasing emphasis on driving sustainable growth and building a future-ready organization by diversifying our services across the mobility ecosystem. Since our listing, we've consistently executed our strategy, and 2025 has been a standout year for Salik, marked by key milestones and impactful developments.

During the year, we successfully implemented our variable pricing mechanism, which alongside the first full year operation of the two new gates, provided strong growth to our core tolling operation. We are also proud of our inclusion in the MSCI Emerging Markets Index this year, Fitch credit rating upgrade, and Moody's rating reaffirmation, alongside ranking first in the transportation and infrastructure sector in UAE as per S&P Corporate Sustainability Assessment, all of which underscores our growing market presence and the confidence of leading reputable institution in Salik equity story.

Additionally, we expanded our mobility ecosystem through strategic partnership across parking payment solutions, EV charging, and e-wallet payments, positioning Salik as a comprehensive player in the mobility space. Looking ahead to 2026, we are carrying this momentum forward, highlighted by our recent 10-years agreement with Dubai Airports, which will further solidify our role in Dubai's future mobility infrastructure.

In full year 2025, Salik went above and beyond, with new highs across all financial metrics. Total chargeable trips reached 639.1 million, driving revenue to 3.1 billion dirhams, the highest revenue recorded since inception, up by 35.1%.

EBITDA also grew by 35.8% to reach 2.1 billion dirhams, delivering a margin of 69.2%, while net profit surged by 33.4%, achieving 1.6 billion dirhams with a net margin of 50.2%. These highlight the strength of our tolling business and the success of strategic initiatives, positioning Salik for continued growth.

I will now hand over to Tariq Ismail, our Chief Technology Officer, to take you through our operational performance.

Thank you, Ibrahim, and good afternoon, everyone. I will now walk you through the key operational highlights for the period.

Salik's core tolling business continued to deliver strong growth during the period. Total trips increased to 224.3 million in Q4 2025, up 22% year-on-year and 9.9% quarter-on-quarter, reflecting sustained mobility demand and the continue contribution from the new gates.

Total chargeable trips reached 168.6 million in Q4, up 10.8% quarter-on-quarter, driven by higher peak and off-peak traffic volumes across the network. Registered active accounts increased to 2.79 million, up 7.7% year-on-year, while registered active vehicles reached 4.76 million, representing growth of 8.7% compared to the previous year.

Traffic growth in Q4 2025 was broad-based across Salik's network, with total trips rising 22% year-on-year to 224.3 million. Business Bay Crossing and Al Safa South were the largest contributors to growth, continuing to scale following their late-2024 launch, while Al Barsha and Al Safa North remained the leading gate by volume of trips.

Chargeable trips increased 10.8% quarter-on-quarter to 168.6 million, with Q4 marking 11 months under variable pricing. Variable pricing has played an important role in supporting Salik's annual revenue growth by improving the timing mix of trips across the network.

The blended tariff reached 4.28 dirhams for the financial year 2025. Since its introduction in January 2025, the model has encouraged a greater share of travel during off-peak and past-midnight periods, while preserving demand during peak hours.

This shift in timing has supported higher toll revenues, while also contributing to smoother traffic flow across the network. Traffic distribution has remained relatively stable quarter-on-quarter, highlighting consistent commuter behavior.

Building on the strength of our core tolling business and the benefits of variable pricing, Salik continued to expand its ancillary revenue base through the rollout of seamless parking payment solutions enabled by strategic partnerships in 2025, including those with Emaar and Parkonic. The partnership with Parkonic marked Salik's first geographic expansion outside Dubai, with a 5-year agreement covering 197 locations across the UAE, out of which 110 are already live.

In addition, more recently in January 2026, Salik signed a 10-year agreement with Dubai Airports to enable seamless e-wallet parking payment across approximately 7,400 spaces at Terminals 1, 2, and 3 and the Cargo Terminal, establishing a long-term platform for growth. Together, these partnerships demonstrate Salik's ability to scale its digital mobility platform beyond tolling and unlock new recurring ancillary revenue streams.

Our ancillary revenue platform continues to benefit from a series of recently signed MOUs. Through our partnership with Liva, formerly RSA, we are leveraging Salik's customers database to deliver timely motor insurance renewal reminders, seamlessly directing customers to Liva's digital platform and enabling bespoke insurance solutions for drivers across the UAE.

In parallel, we have recently signed new MOUs to extend our e-wallet beyond parking and tolling. Together with Schneider Electric and V-Charge, we have successfully completed a proof of concept for EV charging payments, with integration expected across more than 1,800 charging points from the third quarter of 2026.

We have also signed an MOU with ENOC to pilot seamless payment solutions at 4 to 5 fuel stations in the second half of 2026, with a formal agreement expected to follow subject to the successful completion of the pilot. With that, I will hand over to our CFO, Maged Ibrahim, to review our financial performance.

Thank you, Ibrahim and Tariq. Good afternoon, everyone.

I will now walk you through our key financial highlights for the fourth quarter of 2025 and full year of 2025. As you can see, Salik delivered strong growth across all key financial metrics in full year 2025 and the fourth quarter of 2025.

2025 revenue increased 35.1% year-on-year to 3.1 billion dirhams, with a Q4 revenue up 26.3% year-on-year to 821.9 million dirhams, driven by higher number of chargeable trips and the impact of variable pricing. 2025 EBITDA grew 35.8% year-on-year to 2.1 billion dirhams, delivering a margin of 69.2%, while the Q4 EBITDA increased 20.7% year-on-year to 560.2 million dirhams with a margin of 68.2%.

The net profit increased 33.4% year-on-year to 1.6 billion dirhams for the full year of 2025, with a net margin of 50.2%. In the fourth quarter, net profit rose 19.6% year-on-year to 409.6 million dirhams, resulting in a margin of 49.8%, reflecting a strong operating leverage and continued cost discipline.

Next. Salik continues to benefit from a lean, asset-light operating model that supports high margins and efficient cost controls.

During the period, toll usage fees remained the core source of revenue, contributing 88.4% of the total revenue, while fines accounted for 9.1%, and other income made up the balance. Operating leverage improved during the year, supported by the contribution of the two new gates and continued revenue uplift following 11 months of variable pricing.

Cost discipline remained strong. Tolls concession fees, operation and maintenance, and related expenses are aligned with underlying business growth.

The increase in finance costs primarily reflects the funding associated with the two new gates commissioned in November 2024. In Q4 2025, revenue increased 26.3% year-on-year to almost 822 million dirhams, and grew 9.9% quarter-on-quarter, reflecting higher chargeable trips and the continued impact of variable pricing.

For the full year, revenue rose 35.1% year-on-year to 3.1 billion dirhams, with toll usage fees remaining the primary contributor, complemented by a solid growth in ancillary and other revenues. Toll usage fee revenue has continued to build on a quarterly basis, with Q4 2025 recording a 27% year-on-year increase.

This performance reflects sustained growth in mobility across Dubai, alongside the continued positive impact of variable pricing and the contribution from the expanded toll gate network. Next.

2025 EBITDA performance remained strong, increasing 35.8% year-on-year to 2.1 billion dirhams, with margins sustained at 69.2%. As illustrated on this waterfall chart, revenue growth was the primary contributor to EBITDA expansion, while higher concession fees, operation and maintenance, and other expenses remained aligned with the growth of the business.

Salik's net profit margin of 50.2% in 2025 was primarily driven by higher revenue from the increased chargeable trips, partially offset by higher concession fees, operation and maintenance expenses, finance costs, and income tax. In Q4, net profit rose 19.6% year-on-year to 409.6 million dirhams, with margins remaining strong at 49.8%.

Talking about the cash generation, Salik continued to generate strong cash flow, supported by high profitability and disciplined working capital management. Free cash flow increased 42.7% year-on-year to 2.1 billion dirhams, reflecting strong EBITDA conversion and a healthy free cash flow margin of 67.1%.

As illustrated on the free cash flow bridge, cash generation was driven by EBITDA growth, partially offset by income tax payments, working capital movements, and relatively limited capex, with non-cash impairment add-backs supporting the overall cash flow. Salik maintained a healthy balance sheet as of December 2025 year-end.

As of 31st of December 2025, net debt stood at 4.8 billion dirhams, with net debt-to-EBITDA at 2.24 times, well within covenant limits, supported by 1 billion dirhams in cash. In November 2025, Fitch upgraded Salik's long-term issuer rating to A from A-, while Moody's reaffirmed an investment grade rating of A3 in December 2025, both with a stable outlooks.

Salik continues to offer an attractive and highly visible dividend profile, supported by strong cash generation. In light of the strong full year performance, the board of directors has proposed a total dividend of 890.3 million dirhams to be paid during the first half of 2026.

This comprises a cash dividend of 782.5 million dirhams, representing 100% payout of the second half of 2025 net profit, as well as a proposed special dividend of 107.8 million dirhams, which represents the portion of retained earnings equivalent to the implied finance costs for both 2024 and 2025 financial years, net of tax after deducting the tax that has been paid on this portion, recorded on net debt with the RTA. Accordingly, and following to the distributed cash dividend for H1 2025, which amounted to 770.9 million dirhams, the total full year 2025 dividends will reach 1.66 billion dirhams, subject to the AGM approval.

Our dividend policy reflects the strength of Salik's cash flows and our confidence in the company's long-term earnings growth potential. With that, I will now hand it back to our Chief Executive Officer, Mr.

Ibrahim Al Haddad, to share Salik's outlook and closing remarks.

Thank you, Maged. We are pleased to announce that our performance for 2025 came in line with our guidance across all key metrics.

Looking ahead to 2026, we maintain our revenue guidance of 4% to 6% increase as driven by organic growth. Additionally, following the approval of the new concession fee calculation formula, the EBITDA margin guidance remains at 68% to 69%, considering the expected increase in the concession fee to 23.12% from 22.5%, based on 2025 blended tariff of 4.28 dirham and the inflation rate of 2.78%.

Our commitment to 100% profit distribution remains firm, supported by strong cash generation and visibility into long-term earnings. We are also excited about our expanding ancillary revenue streams.

Parking payment solution are expected to grow from 35 to 50 million dirhams in 2026, and over the long term, it could scale up to 120 to 150 million dirhams by 2030. Data monetization is expected to reach 5 to 10 million dirhams in '26 and could scale to 20 to 50 million dirhams by 2030.

Other streams, including smart mobility and insurance, are also expected to grow substantially. These area will contribute significantly to our long-term growth and diversification.

In conclusion, '25 has been a transformative year for Salik, with continued robust traffic growth, a clear focus on diversification, and disciplined operational execution. Finally, we are proud to have met our full year targets and set the stage for sustained growth in 2026 and beyond.

Thank you, and we now welcome your questions.

Thanks for the opportunity to ask questions. Just a quick one from our side.

In terms of visibility on the new gates, are you having any discussion with the RTA? Do you have a little bit more visibility now of what could be the potential timing, potential location?

Do we have any information on that? Thank you.

As of now, we don't have any visibility in where the gates will be. As we always say, the gates is traffic management tool, and RTA, as they are having the bird eye, they can see all the places where the congestion is and whether this can be solved through a gate or it can be through expanding the road by adding extra lanes or building parallel road.

It's all about RTA to decide where and when we will have those gates, but as of now, we don't have any visibility in when or where will be the gates.

Clear. Thank you.

Thank you, management, for the presentation. My question is around the special dividend, right?

Can you walk us through how did you arrive at this amount, and what's the context of the special dividend? We know that obviously you are paying for the new gates in a staggered manner that added to the shareholder equity, but if you can walk us through the thought process around the amount.

The second question that I have is that if let's say you add a new gate, right, timing is unclear as you mentioned, would we still have the same payment mechanism invoked for a new gate?

Talking about the first question, let me just stress on a point that this special dividend does not represent a change in our dividend policy. Our policy remains unchanged, and it's will remain 100% of the net profit.

The purpose of this special dividend, effectively it's some kind of return to the shareholders a portion of the retained earnings attributable to this non-cash interest expense as when we reached an agreement with RTA to install the upfront payment for the new gates over six months, as per IFRS, we have to book an interest for that, and because we are not paying this for anyone, it has to go as a profit for the company and the retained earnings. To be fair with investors, we proposed to our board of director, and the board of director will propose to the AGM, to distribute the portion related to the interest expense that were charged in '24 and '25 back in a form of special dividend after deducting the tax that has been paid on this portion.

This regarding the first question. The second question was talking about the new gate payment mechanism.

We cannot comment on this right now as we don't have any visibility on any new gates coming in the future. When it comes, it will be subject to the discussion with RTA, and we cannot assure that this will be a similar treatments that will happen for all the coming gates.

It's ad hoc process, and we will disclose whenever we have an information on that.

One final question, right? Short one.

Given the special situation we are in right now, is there any clause that gives you a waiver around concession fee given the circumstances that we are in right now or not really?

I don't think the current situation reflects a situation that will activate a force majeure, something similar to that, but other than that, we have no clauses in the concession agreement not to fulfill our obligation by paying to RTA the concession for this as per the concession agreement.

All right, many thanks.

Thank you.

Good morning, guys. Congrats on the results.

Thanks for hosting the call. Just a very quick question just describing sort of what we're seeing on the ground in terms of the current conflicts.

For the sake of sensitivity analysis and looking at from a scenario perspective, are you seeing sort of a rough reduction volume going through the gates? We've anecdotally seen maybe roughly 60% reduced traffic volumes.

Would that be fair to say?

It's too early to assess right now, to be honest. At this stage it's too early to comment on any very near-term movement that took place over the last few days.

We continue to monitor the traffic and revenue trends closely, and we'll reassess as more data becomes available. If any material development, we will communicate with our shareholders.

On

this, I think just to add one more point, I think if you base the analysis or the forecast on what you see today, it's really going to be misleading because this is like an immediate reaction the days before whatever occasions happen, but I think in my opinion, it's going to be misleading. It's too early, as Maged said, to draw a conclusion or forecast the traffic in the future.

Absolutely. Thank you very much, guys.

Sorry, Shashank, what were you saying, on the uptake on the segment?

Correct. We've grown this business significantly over the last 1 and 1/2 years.

I think parking alone, if you look and compare the performance last year as compared to the earlier years, it is almost 280% growth. We are seeing significant expansion in this area.

Today as we speak, we have already expanded the locations to almost 120 locations across UAE, and this continues to expand on a day-by-day basis. We are looking quite bullish on this, and we feel that this ancillary revenue streams will contribute significantly in the long term.

Yeah. Thank you, Shashank.

I would like to thank you all for attending today's call. Also thanks for Bank of America for hosting today's call.

Please, if you have any follow-up questions, feel free to reach out to me directly or send an email on the investor relations at salik.ae or visit our website, salik.ae. Thank you very much, and have a good day.

Thank you, everyone.

Bye-bye.