Slide 1: Investor Presentation - 3Q 2017 Results
02 Nov 2017 Investor Presentation - 3Q 2017 Results - Disclaimer Management Update 3Q 2017 Results Long term performance Management Outlook Contacts Page 1
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Disclaimer Cautionary Note Regarding Forward-Looking Statements This presentation has been prepared solely for informational purposes. The presentation may contain forward looking statements, which reflect our beliefs or current expectations and assumptions regarding the future of the business, futu
Slide 3: Management Update
02 Nov 2017 Management Update Disclaimer Management Update 3Q 2017 Results Long term performance Management Outlook Contacts Page 3
Slide 4: Aramex is a global provider of logistics and transportation solutions
Aramex Overview Aramex is a global provider of logistics and transportation solutions 18,000 employees 567 offices in 69 Countries AED 4.3 billion revenues AED 7.3 billion market cap Business Units Domestic International Freight Logistics & eCommerce Express Express Other At a glance Aramex Domestic
Slide 5: Aramex shareholders were rewarded by strong TSR
Shareholder Returns Aramex shareholders were rewarded by strong TSR Closing Price 3Q 2017 Market Capitalization (AEDm) 8,000 7,291 AED 4.98 7,000 5,959 6,000 4,451 4,539 4,627 5,000 Total Return Metrics: 4,000 3,045 2,928 2,635 3,000 +22% 2,090 YTD 2017 share price increase 2,000 679 1,000 92 239 +2
Slide 6: Management expects to deliver 2017 revenue targets
Outlook & Guidance Management expects to deliver 2017 revenue targets 2016 Actual 2017 Target 9M 2017 Actuall Express 22% AED 1,687 m Double-digit growth 18% AED 1,399 m → → ✓ Freight Forwarding 6% AED 1,131 m Single-digit decrease 1% AED 853 m → ✓ → Domestic 35% AED 981 m Single-digit growth 2% AED
Slide 7: Management focused on five key areas to drive 2017 results
Key Messages Management focused on five key areas to drive 2017 results Focus Areas Management remains focused on long-term growth drivers eCommerce → Continues to be the main growth driver of Aramex express and logistics businesses Asset-light model → Proves our business model can be successful thr
Slide 8: Delivering the best of both worlds to offer customers maximum flexibility
Key Messages Delivering the best of both worlds to offer customers maximum flexibility Postal Strengths Courier Strengths Hybrid • Delivers to every address in the world Courier • Tracking and notification technology • Most respected network by all nations Postal • Ability to pay duties and taxes at
Slide 9: Management remains focused on three key priorities
Management Priorities Management remains focused on three key priorities Expand Footprint Develop and defend our stronghold in GCC & Levant Expand Aramex presence in Asia Pacific and Africa Globalize the Aramex brand in emerging markets Investor Presentation Page 9 02 November 2017
Slide 10: Management remains focused on three key priorities
Management Priorities Management remains focused on three key priorities Expand Footprint Leverage Infrastructure Develop and defend our stronghold Grow e-Commerce business in GCC & Levant Expand Aramex presence in Integrate supply chain management Asia Pacific and Africa solutions and value added s
Slide 11: Management remains focused on three key priorities
Management Priorities Management remains focused on three key priorities Expand Footprint Leverage Infrastructure Organic Growth Develop and defend our stronghold Grow e-Commerce business Continue to deliver operational excellence in GCC & Levant Expand Aramex presence in Integrate supply chain mana
Slide 12: We believe in transforming our business to succeed in a digital world
Core Beliefs We believe in transforming our business to succeed in a digital world Business Model Disruption → We believe that the current logistics model will not last All the way from bulk to containers to pallets to boxes to pieces – new industry Shipping is changing → dynamics apply to all playe
Slide 13: We are continuing to build out the Aramex ecosystem
Aramex Ecosystem We are continuing to build out the Aramex ecosystem Delivery Options eCommerce (3rd party) Logistics • Courier delivery • Parcel Lockers • Postal delivery • Crowdsourced-Shippers Sellers Consumers eCommerce (proprietary) Pickup-Options Platforms • Courier • Access Points • Postal Of
Slide 14: 3Q 2017 Results
02 Nov 2017 3Q 2017 Results Disclaimer Management Update 3Q 2017 Results Long term performance Management Outlook Contacts Page 14
Slide 15: Underlying performance remains strong – impacted by FX
Financial Performance Underlying performance remains strong – impacted by FX 3Q 2017 Results → Performance across key indicators (AED) 9% growth compared to 3Q 16; 11% 1,050,377 1,158,455 1,105,932 1,147,638 1,143,628 Revenues → growth excluding exchange rate impact 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 116
Slide 16: Impact of FX
Financial Performance Impact of FX Revenues (AED m) → +9% +11% 119 1,169 1,144 1,200 1,150 -26 1,050 1,100 1,050 1,000 950 900 850 800 750 700 3Q 2016 headline Y-O-Y Growth 3Q 2017 underlying FX Impact 3Q 2017 headline Investor Presentation Page 16 02 November 2017
Slide 17: 3Q 2017 Group Highlights
Financial & Performance Highlights 3Q 2017 Group Highlights Management Comments → Revenues (AED m) Cost of Revenues (AED m) -531 -527 1,148 1,144 • Revenue growth in Q3 2017 was driven by most geographies with Asia being a major contributor. -473 1,050 • Cost of Revenues and overheads increased year
Slide 18: 3Q 2017 Financial Highlights
Financial & Performance Highlights 3Q 2017 Financial Highlights Income Statement (AEDm) → Quarter Movement (%) 3Q 17 2Q 17 3Q 16 q-o-q y-o-y Revenue* 1,144 1,148 1,050 0% 9% Cost of Revenues (531) (527) (473) -1% -12% Gross profit 613 621 578 -1% 6% Overheads (504) (497) (487) -1% -3% Profit for the
Slide 19: Revenue growth across all segments
Financial & Performance Highlights Revenue growth across all segments Revenues by segment (AED m) → Y-o-Y Growth 15% 5% 7% 4% 1% Other Logistics 6% 16 3 1 1,144 6% Express 14 59 40% 1,050 Domestic 23% 3Q 2017 Freight Forwarding 25% 3Q 2016 Express Freight Domestic Logistics* Other 3Q 2017 Forwarding
Slide 20: Geographic performance – strongest growth recorded again in Asia
Financial & Performance Highlights Geographic performance – strongest growth recorded again in Asia Revenue Bridge y-o-y (AED m) Revenues by Geography → Geographic Contribution (%) Asia and 50 1,144 1,050 38 0 5 Others 24% North America Middle East & 3Q 2017 3% Africa 61% Europe 12% Geographic Perfo
Slide 21: 3Q 2017 Financial Highlights
Financial & Performance Highlights 3Q 2017 Financial Highlights Income Statement Financial Ratios (AEDm) → Quarter Movement 3Q 17 2Q 17 3Q 16 q-o-q y-o-y EPS (AED) 0.056 0.066 0.049 -16% 13% Gross profit margin (%) 53.6% 54.1% 55.0% -0.5% -1.4% Net profit margin (%) 7.1% 8.5% 6.9% -1.3% 0.3% Debt/Eq
Slide 22: Balance sheet remains strong and liquid
Financial & Performance Highlights Balance sheet remains strong and liquid Balance Sheet Highlights → Asset Movement Y-o-Y (AED m) → Movement Current Assets Non-Current Assets 30 Sept 2017 31 Dec 2016 Actual Change % 39 0 25 4,088 3,974 66 128 Current assets 1,705 1,655 50 3% -144 Non-current assets
Slide 23: Composition of assets
Financial & Performance Highlights Composition of assets Income Statement Financial Ratios (AEDm) → Movement 30 Sept 2017 31 Dec 2016 Actual in % Cash and cash equivalents 557 701 -144 -21% Receivables (net) 883 754 128 17% Other current assets 265 199 66 33% Total current assets 1,705 1,655 50 3% P
Slide 24: Long-term Performance
02 Nov 2017 Long-term Performance Disclaimer Management Update 3Q 2017 Results Long term performance Management Outlook Contacts Page 24
Slide 25: Express business continues to drive growth
Financial & Performance Highlights Express business continues to drive growth Y-o-Y Total Segmental Revenues (%) → Revenue Growth 8% 10% 3% 16% Express contribution to total revenues continues to grow, outgrowing all other 100% 11% 12% 11% 12% 13% 12% businesses 80% 26% 25% The key driver of this de
Slide 26: Aramex maintains a track record of delivering operational excellence
Long Term Performance Aramex maintains a track record of delivering operational excellence Aramex 2012-9M 2017 (Annualized)→ 180 170 We delivered a consistently strong performance since 2012 160 150 2012-2016 CAGR 140 Revenues 9.0% 130 Cost of Revenues 7.8% EBITDA: 14.2% 120 110 100 2012 2013 2014 2
Slide 27: Aramex continues to deliver solid top line performance
Long Term Performance Aramex continues to deliver solid top line performance Revenues (AED m) → CAGR 5,000 9.0% 4,343 4,500 Revenue generation 4,000 3,643 3,755 • Strong revenue growth of 16% in 2016 3,321 3,397 reflects additional income generated 3,500 3,072 3,185 primarily in international cross-
Slide 28: Strong underlying results right across the business
Long Term Performance Strong underlying results right across the business CAGR EBITDA before special items (AED m) → 12.2% 700 EBITDA before special items: 584 600 Aramex generated strong underlying results 511 across the business 500 465 431 427 394 400 368 300 9M 200 2016 100 0 2012 2013 2014 2015
Slide 29: Aramex generates consistent performance across key KPIs
Long Term Performance Aramex generates consistent performance across key KPIs EBITDA margin (%) → Net Profit Margin (%) → Return on Equity (%) → 16.0% 12.0% 20.0% 18.8% 13.6% 13.5% 18.0% 14.0% 12.6% 13.0% 12.8% 9.8% 12.0% 10.0% 8.7% 16.0% 8.4% 8.3% 8.0% 14.7% 14.4% 12.0% 7.9% 13.3% 14.0% 8.0% 12.1%
Slide 30: Key components of Aramex's long term growth story
Long Term Performance Key components of Aramex’s long term growth story Contribution by Business (AED m) → 2012-2016 5,000 77 4,500 126 4,343 388 Growth story since 2012 718 4,000 3,500 -38 3,072 CAGR Express 14.9% 3,000 2,500 CAGR Freight Forwarding -0.8% 2,000 1,500 CAGR Domestic 13.4% 1,000 500 C
Slide 31: Defending and developing our market position in growth markets
Long Term Performance Defending and developing our market position in growth markets Contribution by Geography (AED m) → 2012-2016 5,000 4,500 588 4,343 Growth story since 2012 4,000 52 569 63 3,500 3,072 CAGR Middle East 5.8% 3,000 2,500 CAGR Europe 3.0% 2,000 1,500 CAGR North America 15.5% 1,000 5
Slide 32: Aramex balance sheet evolution
Long Term Performance Aramex balance sheet evolution Debt / Equity (%) Total Asset (AED m) → 4,500 50% 3,974 4,088 Aramex has consistently grown its balance 4,000 45% sheet. 3,445 3,500 3,207 40% 2,986 35% Driven mainly by acquisitions, Aramex will 3,000 2,715 27.7% 27.2% 30% continue to increase le
Slide 33: Aramex management paid a dividend of AED 0.16 for 2016
Value Creation Aramex management paid a dividend of AED 0.16 for 2016 Dividends → Dividend Payout (AED / share) Dividend Payout Ratio (%) 0.160 Dividend proposal of AED 0.160 per share 0.150 0.140 approved by shareholders at AGM on 19 Feb 2017 70.5%* 0.115 64.4% 60.0% 60.6% Long-term management targ
Slide 34: Aramex shareholders are rewarded by long term performance
Long Term Performance Aramex shareholders are rewarded by long term performance Total Performance (Jan 2012 - Sept 2017) → 13.9% 53.9% 8.6% 6.5% 33.5% 27.5% Return 6.00 Share Price Change: 176.7% 5.00 Annualized return: 19.3% 4.00 Total Return 3.00 (dividends reinvested): 243.32% 2.00 Annualized Tot
Slide 35: Management Outlook
02 Nov 2017 Management Outlook Disclaimer Management Update 3Q 2017 Results Long term performance Management Outlook Contacts Page 35
Slide 36: The Way Forward: Management Priorities
Outlook & Guidance The Way Forward: Management Priorities Grow the business Consistent profitability Shareholder participation Continue with our progressive Focus on innovation and technology → Focus on operational excellence → → dividend policy Grow eCommerce Portfolio → Variabilization of cost str
Slide 37: Management Ambition: Guidance
Outlook & Guidance Management Ambition: Guidance 2016 Targets 2016 Actual 2017 Targets Express Double-digit growth 22% AED 1,687 m Double-digit growth → Freight Forwarding Slight decrease 6% AED 1,131 m Single-digit decrease → Domestic Double-digit growth 35% AED 981 m Single-digit growth → Logistic
Slide 38: Long Term Ambition Level – Projected Roadmap to 2020
Outlook & Guidance Long Term Ambition Level – Projected Roadmap to 2020 4,343 3,643 3,755 3,321 3,397 3,072 465 465 626 368 431 427 2012 2013 2014 2015 2016 9M 2017 2017E 2018E 2019E 2020E Revenues EBITDA Investor Presentation Page 38 02 November 2017
Slide 39: Investor Relations Contacts
Aramex Investor Relations Contacts Hussein Hachem Bashar Obeid Mohammad Al Qassem CEO CFO Investor Relations Investor Relations: InvestorRelations@aramex.com Tel +971 4 211 8464 P.O. Box Dubai – UAE www.aramex.com/investors Investor Presentation Page 39 02 November 2017
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