#1شركة الإمارات لتعليم قيادة السيارات EMIRATES DRIVING COMPANY EMIRATES DRIVING COMPANY P.J.S.C. Investor Presentation - 1st Quarter 2022 Update May 2022#2SUSTAINABLE VALUE CREATION شركة الإمارات لتعليم قيادة السيارات Emirates Driving Company#3Executive Summary 04 Financial Summary 06 Number of Customers 10 ESG Progress 12 Key Announcements 14 About EDC 16#4EXECUTIVE SUMMARY 1st QUARTER 2022 UPDATE#5EXECUTIVE SUMMARY SUMMARY Emirates Driving Company (EDC) showed yet again its ability to run a highly efficient operation by further increasing its margins – gross, operating, and net income margins were at 83.88%, 63.42%, and 99.19% respectively. Moreover, the company recorded a net income for the 1st quarter of the year at AED 75.62 million, a staggering 60% increase from the same period last year. In addition to the above, the company recorded a net gain from equity investment of AED 17.59 million which also contributed to the higher net income number. The company remains laser focused on further digitizing its internal and external operational processes and embedding technology & artificial intelligence in its offering. A key innovative step was taken during the first quarter by announcing the launch of a smart parking test project which will further enhance EDC's offering and solidify its leadership position. As part of the company's quest to run a sustainable operation and to create value to all stakeholders, EDC is further embedding sustainability into its business model and has accordingly created an independent Sustainability Committee reporting directly to the board. The committee will be approving, during the second quarter, the company's five-year sustainability strategy and will supervise its implementation. During the 1st quarter of the year, 31,623 customers registered to train with EDC, a 15.60% increase from the previous quarter and a slight 9.00% decline from the same period last year. KEY HIGHLIGHTS Free Cash Flow شركة الإمارات لتعليم قيادة السيارات EMIRATES DRIVING COMPANY Free Cash Flow (FCF) is an important measurement of efficiency and a key metric that identifies the actual amount of cash at a company's disposal. In turn, Free Cash Flow demonstrates a corporation's ability to repay creditors or pay dividends to investors. EDC continues to have healthy liquidity with FCF increasing to AED 48.05 million, ~14% higher from the same period last year. Profitability EDC reported a record net income of AED 75.62 million for the 1st quarter of the year, an impressive 60% increase from last year's AED 47.25 million number. Gross and operating margins reached 83.88% and 63.42% respectively, (an increase of 2.17% and 4.78%), showing continued high operational efficiency The above resulted in an earnings per share (EPS) number of 0.84 compared to 0.53 from the same period the previous year (an increase of 58.49%). Net Gain from Equity Investment As a result of our long-term, value focused and prudent investment strategy, we have opted during the 1st quarter to lock in some of our unrealized gains from our equity investments. Such decision led to a AED 17.59 million net gain from equity investment a 3.75 fold increase compared to the 1st quarter of 2021 which stood at AED 3.70 million. Low Debt We have maintained a healthy balance sheet with a debt to asset ratio set at 4.32%. INVESTOR PRESENTATION EMIRATES DRIVING COMPANY 5#6FINANCIAL SUMMARY 1st QUARTER 2022 UPDATE#7FINANCIAL SUMMARY Significantly High Numbers Across All Key Figures UNAUDITED (in AED MM, except percentages and per share figures) Revenue from Customers Gross Profit Gross Margin Net Gain from Equity Investment Rental Income Operating Expenses Income from Operations Operating Margin Net Profit for the period Net Profit Margin EPS (basic and diluted) from continuing operations Net Cash Generated from Operating Activities Free Cash flow Cash and cash equivalents INVESTOR PRESENTATION EMIRATES DRIVING COMPANY شركة الإمارات لتعليم قيادة السيارات EMIRATES DRIVING COMPANY Three months period ended 31 March (Q1) 2022 Key Highlights & Figures 2022 2021 % Change 76.24 64.72 17.79% 63.95 52.88 83.88% 81.71% 20.93% 2.17% +20.93% increase in Gross Profit 63.95M M 52.8... 17.59 1.23 3.70 1.39 3.75x -11.51% Net Gain from Equity Investment 3.75 fold increase 15.60 14.93 48.35 63.42% 37.96 58.64 4.50% 27.39% 4.78% +27.39% Higher Operating Income 48.35... 37.96M M 75.62 47.25 99.19% 73.00% 60.04% 26.19% Increase in Net Profit 0.84 0.53 58.49% EPS Increase +60.04% +58.49% 56.26 43.63 28.95% 48.05 42.31 13.58% +13.58% Increase in Free 48.05 MM 273.25 230.91 Cash Flow 18.34% 42.31M M#8FINANCIAL HIGHLIGHTS (1/2) Maintaining the Strong Momentum Revenue from Customers شركة الإمارات لتعليم قيادة السيارات EMIRATES DRIVING COMPANY 90 Net Profit (in AED MM) 80 75.62 75.62 80 76.24 76.24 (in AED MM) 71.07 70 70 65.79 64.72 58.51 60 60 47.25 50 45.26 50 38.26 37.23 40 40 30 30 20 20 10 10 0 0 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 Q1'21 Earnings Per Share 60.00 Free Cash Flow 0.90 (in AED) 0.80 0.70 0.60 0.50 0.50 0.43 0.41 0.40 0.30 0.20 0.10 0.84 0.84 (in AED MM) 51.52 48.05 48.05 50.00 44.91 42.31 40.00 36.91 0.53 30.00 20.00 10.00 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 Q1'21 INVESTOR PRESENTATION EMIRATES DRIVING COMPANY Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 Q1'21 8#9FINANCIAL HIGHLIGHTS (2/2) Healthy Margins/Ratios Across all Key Financial Indicators Gross Profit Margin Net Profit Margin 75.00% FY 2018 48.15% Total Assets Total Liabilities Shareholders' Equity (in AED MM) 79.18% FY 2019 50.30% 81.36% شركة الإمارات لتعليم قيادة السيارات EMIRATES DRIVING COMPANY 99.19% 81.42% 83.88% 64.59% 52.60% FY 2020 Return on Equity Debt to Asset Ratio FY 2021 Q1'22 24.53%* 1000 911.65 931.87 850 21.96% 796.49 812.51 800 709.06 795.87 800 17.76% 805.54 15.31% 14.38% 600 750 702.78 672.66 724.62 400 700 5.82% 5.36% 4.93% 4.32% 200 93.71 87.89 106.11 136 650 36.4 0% 0 600 FY 2018 FY 2019 FY 2020 FY 2021 Q1'22 FY 2018 FY 2019 FY 2020 FY 2021 Q1'22 INVESTOR PRESENTATION EMIRATES DRIVING COMPANY *LTM#10NUMBER OF CUSTOMERS 1st QUARTER 2022 UPDATE#11NUMBER OF CUSTOMERS Continued Positive Trend Number of Customers (Last four quarters) A 15.60% increase in registered customers compared to the previous quarter 10,369 Q2'2021 24,765 Q3'2021 Number of Customers (Same period as last year comparison) Slight 9.00% decrease in the number of registered customers when compared to the same period the previous year 34,756 Q1'2021 INVESTOR PRESENTATION EMIRATES DRIVING COMPANY 31,623 27,359 +15.60% Q4'2021 -9.00% 31,623 Q1'2022 Q1'2022 شركة الإمارات لتعليم قيادة السيارات EMIRATES DRIVING COMPANY 11#12ESG PROGRESS 1st QUARTER 2022 UPDATE#13ESG PROGRESS Our Value Creation Model As part of our 2021 regulatory disclosures, we have issued an Integrated Report that focused on Emirates Driving Company's ability to create value to all stakeholders. Accordingly we have reported on our five essential capitals (resources) which include our Financial, Human, Intellectual, Infrastructure & Natural, and Social & Relationship capitals and followed best-global- practice (using the International Integrated Reporting Framework, currently being transitioned under the IFRS Foundation) to portray the outcome these various capitals are generating through our business model. The following chart depicts our value creation model: Input FINANCIAL CAPITAL Liquidity (cash & cash equivalent including longer maturity bank deposits): AED 373.13 Million Retained Earnings: AED 601.56 Million Investments (property & listed equity portfolio): AED 280.34 Million HUMAN CAPITAL 486 Total Employees: 3.4% increase from 2021 48 new hires (27% female) 30 Nationalities 10,000+ hours of Training & Development in 2021 INTELLECTUAL CAPITAL EDC's offered curricula have been developed with Sweroad (a company governed by the Swedish Transport Administration from 1983 to 2018) and follow global standards Over 20 years of experience, track record, and relationships in driving education and road safety INFRASTRUCTURE & NATURAL CAPITAL Diversified Fleet: Total of 386 vehicles including cars, light vehicles, trucks and buses Two Main Large branches & 5 Satellite branches covering Abu Dhabi emirate Large branch in Zayed City (in 2022) SOCIAL & RELATIONSHIP CAPITAL Strategic global relationships, memberships and alliances Providing expertise to the government for safer roads EDC is a provider of vocational training directly benefiting society Multiple involvement in sponsorship opportunities Continuous engagement with our customers through surveys and mystery shopper initiatives Local Community focused Our Value Creation Model Our Vision To be the leader in promoting and contributing towards safer roads in the region. Our Mission To work efficiently and effectively towards promoting and contributing to safer roads through innovation,collaboration, investment in new technologies and smarter operating and delivery models. Our Values Socially responsible Act with Integrity Results-Driven Stakeholder-Inclusive Innovative 2021-2023 STRATEGIC PILLARS Customer Happiness Business Excellence Market Expansion Innovation Sustainability Partnerships 97,249 New Students in 2021 Our Offering EDC offers a full range of training courses covering all driving competencies for a variety of vehicle types to ensure road safety as well as coverage of all customer needs Pre-licensing Courses Light vehicle Motorcycle Heavy vehicle Heavy Bus Heavy Machinery Light Machinery Post-licensing Courses School Bus Drivers School Bus Supervisors Desert Driving Training Light Vehicle Defensive Driving Heavy Vehicle Defensive Driving Heavy Bus Defensive Driving Heavy Motorcycle Driving Specialized and Tailor-made Courses Crane Operator Training Safety Driving Awareness Output & Outcome FINANCIAL CAPITAL شركة الإمارات لتعليم قيادة السيارات EMIRATES DRIVING COMPANY Revenue from Customers: AED 260.09 Million & Net Income at AED 168.00 Million Dividends: AED 44,893.200 Million (0.5AED per share) EDC has AED 0 debt from banks, and a healthy Cash & Equity Ratios at 4.5 and 0.88 respectively Dividend from Investments & Rental Income at AED 6.44 Million HUMAN CAPITAL 96% retention rate, an increase of 5% from 2020 75% (favourable) was EDC's score according to the 2021 employee engagement survey 17% female presence INTELLECTUAL CAPITAL EDC continued to be Abu Dhabi's strategic and exclusive partner in ensuring road safety Safer Abu Dhabi roads with 14% less road accidents, 25% less traffic injuries and 8% less fatalities compared to 2018 taking into account a 9% increase in cars on the road Improvement in first-time pass rates from an average of 68% for the theory exam in 2020 to 82% and 77% in Abu Dhabi and Al Ain respectively INFRASTRUCTURE & NATURAL CAPITAL Able to serve a large customer base: 97,249 students in total in 2021 Able to diversify service offering without the need to build new infrastructure or purchase additional assets Office facilities scored 87% and 91% by individuals and corporates in the 2021 satisfaction survey, while other asset related components of the survey scored above 90% SOCIAL & RELATIONSHIP CAPITAL EDC contributes yearly to the awareness campaigns launched by Abu Dhabi Police as well as the Integrated Transport Centre EDC provides expertise and is the main contributor to Abu Dhabi's road safety education committee AED 66.5 Million spent through local suppliers (99.21% of total procurement) 04 Mystery shopper assignment score at 81% 2021 Independent Customer satisfaction survey overall score at 89% 37 Emiratis working at EDC in 2021, a 21% out of total hire INVESTOR PRESENTATION EMIRATES DRIVING COMPANY 13#14KEY ANNOUNCEMENTS 1st QUARTER 2022 UPDATE#15KEY ANNOUCEMENTS In Line with EDC's Strategic Objectives Emirates Driving Company Board of Directors Khalifa Al Romaithi Chairman Mohamed Al Khoori Vice Chairman Emirates Driving Company's New Announced Board of Directors شركة الإمارات لتعليم قيادة السيارات EMIRATES DRIVING COMPANY • As part of Emirates Driving Company's objective to continuously enhance its governance as per best-practices and shape a diverse and expert group of board of directors, the company announced its new elected board composition for the period 2022-2024 In addition, an independent Sustainability Committee (combined with the Strategy Committee) has been established to further embed material ESG factors into the company's business model Samia Bouazza Mohamed Al Ameri Board Member Board Member Ahmed Al Romaithi Board Member شركة الإمارات لتعليم الرادة السيارات EMIRATES DRIVING COMPANY CEPA 20 SWR EMIRATES DRIVING COMPANY APPOINTS Khalid Al Shemeili As Chief Executive Officer edcabudhabi Emirates Driving Company Appoints Mr. Khalid Al Shemeili as CEO • Mr. Khaled Al Shemeili has more than 23 years of experience (18 at EDC), during which he held several leadership positions in the company, including Acting CEO and Operations Director Mr. Al Shemeili has a long and successful track record in leading and growing public shareholding companies in addition to having extensive experience in the fields of training and education related to traffic and road safety He holds outstanding governance expertise in merging the transport, automotive, and education sectors while leading and developing transformation and sustainability programs INVESTOR PRESENTATION EMIRATES DRIVING COMPANY 15#16KEY ANNOUCEMENTS In Line with EDC's Strategic Objectives ADX ADX recognition شركة الإمارات لتعليم قيادة السيارات EMIRATES DRIVING COMPANY easylease شركة الإمارات لتعليم قيادة السيارات بالمز الرياضية PALMS SPORTS ESG EMIRATES GROUP JONS EMIRATES DRIVING COMPANY nbf National Bank of Fujairah بنك التحية الوطني يشكر سوق أبوظبي للأوراق المالية أول خمس شركات أفصحت عن بياناتها المالية المدققة لعام 2021 ADX wishes to thank the first five listed companies who disclosed their audited financial statement 2021 . • As part of Emirates Driving Company's robust governance structure, the Board of Directors and Senior Management are adamant on ensuring that EDC shareholders can swiftly access the company's quarterly and yearly financial performance after the closure of the period Accordingly, ADX has recognized Emirates Driving Company as being one of the first five listed companies to disclose their audited financial statements for the year 2021 ADX.AE نظام فحص الموقف الذكي - Smart Parking Test System Arab Traffic Week أسبوع المرور العربي مرور آمن ومتطور SAFE AND DEVELOPED TRAFFIC INVESTOR PRESENTATION EMIRATES DRIVING COMPANY Innovation through Technology & Artificial Intelligence • In line with Emirates Driving Company continued quest to embrace innovation through technology and artificial intelligence, the company intends to develop a smart parking test system program with capabilities to read and analyse the student's parking manoeuvres during the test without human intervention • The above project was announced by the company during the Arab Traffic Week ("Safe and Developed Traffic") 16#17ABOUT EMIRATES DRIVING COMPANY 1st QUARTER 2022 UPDATE#18PROFILE 22 Years of Corporate Excellence ESTABLISHMENT FOOTPRINT ☐ Established in 2000 under Amiri Decree No. 1 The leading drivers training and road safety institute in the emirate of Abu Dhabi Multiply Group is the major shareholder (at 48%) Headquartered in Abu Dhabi Two main branches - Abu Dhabi City and Al Ain One large branch in Zayed City Four other Satellite branches in the emirate of Abu Dhabi Sweroad PEOPLE 499 total employees 378 trainers & drivers 29 nationalities CUSTOMERS 500 new students registered per day 97,249 new students in 2021 Over 80,000 graduates per year on average REGULATED AA ALLIANCES شركة الإمارات لتعليم قيادة السيارات EMIRATES DRIVING COMPANY CEPA MOBILITY CARE MOTOR HARLEY-DAVIDSON CYCLES VERITA CERTIFICATIONS / ACCREDITATIONS TADANO ROSPA ISO 9001 ISO 14001 ISO 45001 BUREAU VERITAS Certification EAU BURE EFA Licensed by the Department of Economic Development in Abu Dhabi Public Joint Stock Company IRF ☐ Listed on the Abu Dhabi Securities Exchange (ADX) since 2005 INVESTOR PRESENTATION EMIRATES DRIVING COMPANY MEMBERSHIPS c/leca The piecational Commission for Oner Lesting 1828 WE SUPPORT UN GLOB COMPACT 18#19FIVE GROWTH PILLARS Dynamic Growth Plan 吸习 RA K 吸习 EXPANSION & ACQUISITION SMART MOBILITY DIGITALIZATION & ΑΙ SUSTAINABILITY شركة الإمارات لتعليم قيادة السيارات EMIRATES DRIVING COMPANY RESEARCH & DEVELOPMENT • We will expand our geographic presence across other emirates and key GCC locations We will also look to expand horizontally within the mobility sector and capture unique opportunities Growth organically and by acquiring existing companies Ensure that EDC plays a leading role in the smart mobility sector and capture market share in disruptive mobility technologies • Create strategic partnerships and incubate smart mobility start ups Digitalize our operation and make it a seamless experience for our customers, strive for business excellence Aim to enhance value and personalize training by using Al to capture customers' unique needs Embed sustainability into our business model and day-to- day corporate practices Manage ESG related risks & opportunities, enhance our ESG performance, and be a corporate leader in the transition to a Net Zero UAE economy Embed innovation in EDC's DNA by means of building R&D capabilities R&D creates knowledge and builds products & services that will serve as growth catalysts Collaborate with reputable global knowledge centers with mobility expertise INVESTOR PRESENTATION EMIRATES DRIVING COMPANY 19#20CREATING SUSTAINABLE VALUE To All Stakeholders • • OUR VALUE DRIVERS CONSISTENT 20+ years of business excellence • Market leadership Growth & financial performance OUR BUSINESS VALUES YEARS 20 عاما من التعليم و الثمان of education and safety O RELIABLE Strong strategic partnerships & alliances Listed since 2005 Multiple accreditations & ISO certifications SUSTAINABLE • Commitment to the transition to a sustainable path • Stakeholder value creation business model • Sustainability at the core of EDC's 2021-2023 strategy BL SOCIALLY RESPONSIBLE INNOVATIVE ACT WITH INTEGRITY RESULT DRIVEN STAKEHOLDER INCLUSIVE IMPACT-ORIENTED Mapping, monitoring and measuring our contribution to the relevant United Nations Sustainable Development Goals INVESTOR PRESENTATION EMIRATES DRIVING COMPANY M 9 IHC International Hilding Company MULTIPLY • GROUP شركة الإمارات لتعليم قيادة السيارات EMIRATES DRIVING COMPANY OUR COMPETITIVE ADVANTAGE • • • • • • UNIQUE POSITIONING EDC has exclusive status in Abu Dhabi for providing pre-licensing services Trusted government partner in shaping legislation related to Licensing, Cars, and Road Safety SHAREHOLDER SUPPORT Continued support by our new major shareholder IHC is publicly listed and is one of the fastest- growing holding companies in the region Multiply Group is a tech-focused holding with global presence VAST RESOURCES Experienced leadership Large access to and ownership of infrastructure Strategic relationship with relevant government entities Strong balance sheet GROWTH-ORIENTED Strong yearly annual performance (e.g., net income growth compared to same period last year of 33%) Innovation is at the heart of our business model Committed to an ambitious & diversified growth plan 20#21SELECT AWARENESS CAMPAIGNS #roadsafety #trafficsafety #staysafe RAMADAN DRIVING TIPS RAMADAN DRIVING TIPS RAMADAN DRIVING TIPS Today's Tip! for Driving in Fog خطط يومك بشكل صحيح، غادر مبكراً لتجنب السرعة ولتصل بأمان. ننصحك بأخذ قسطاً كافياً من الراحة قبل القيادة لتجنب التعب والإرهاق حفاظاً على سلامتك وسلامة الآخرين. توخي الحذر أثناء القيادة في فترة ما قبل الإفطار مباشرة Pay attention while driving during the period before Iftar edcabudhabi www.edcad.ae شركة المارات التعليم قيادة السيارات EMIRATES DRIVING COMPANY TODAY'S TIP! FOR DRIVING FOCUS Avoid using any distractions such as cell phones while driving Always stay alert and focused. 600 588880 www.ada 000 catch Get enough rest and sleep before driving to avoid getting tired and fatigue for everyone's safety. edcabudhabi www.edcad.ae قونة بوطيق ABU SHAB POLICE شركة الإمارات لتعليم قيادة السيارات قرطة أبوظبي EMIRATES DRIVING COMPANY Plan your day propely, leave early to avoid speed and to arrive safely. 00edcabudhabi www.edcad.ae شركة الإمارات التعليم قيادة السيارات قطة أبوظبي EMIRATES DRIVING COMPANY Avoid overtaking and maintain your lane. In foggy weather, it is not easy to predict sudden actions and decisions from other drivers, and this increases the risk of accindents. INVESTOR PRESENTATION EMIRATES DRIVING COMPANY قطة الوطني. شركة اليمالات للتعليم قيادة السيارات EMIRATES DRIVING COMPANY حقنا في العبور.. كحقكم في القيادة الانحراف المفاجئ SUDDEN DEVIATION شركة الإمارات لتعليم قيادة السيارات EMIRATES DRIVING COMPANY شركة الإمارات لتعليم قيادة السيارات EMIRATES DRIVING COMPANY حافظ على انتباهك كي لا تفقد مسارك Stay focused to not lose track edcabudhabi ( www.edcad.ae شركة الإمارات للتعليم قيادة السيارات EMIRATES DRIVING COMPANY sibulas ABU DHABI POLICE 21#22DISCLAIMER THIS PRESENTATION DOES NOT CONSTITUTE AN OFFER OR SOLICIATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR USE AS AN INVESTOR PRESENTATION AND IS PROVIDED AS INFORMATION ONLY. This presentation does not contain all the information that is material to an investor and has been prepared by Emirates Driving Company PJSC (the "Company") with reasonable care to ensure that the information contained is accurate at the time of last revision. That being said, neither the Company nor any other person or party is under any obligation to update or keep current the information contained herein. In addition, the information herein may be amended and may not be relied upon for the purposes of entering into any transaction. Emirates Driving Company expressly disclaims any liability for any loss howsoever arising out of or in connection with a recipient's use of, or reliance on, or otherwise arising in connection with this presentation. The information in this presentation and the views reflected therein are those of the Company and are subject to change without notice. All historical information should be understood as speaking from the date of its first publication. This presentation contains forward-looking statements that reflect the Company's intentions, believes or expectations. Such statements may be based on subjective assessments and assumptions. The company assumes no obligation to update these statements. This presentation does not disclose all the risks and other significant issues related to an investment. Past performance is not necessarily indicative of future performance. You are cautioned not to rely on such forward-looking statements. INVESTOR PRESENTATION EMIRATES DRIVING COMPANY 22 22#23H A BE WISE... DRIVE SAFE...