Slide 1: Investor Presentation - FY & 4Q 2016 Results
20 FEB 2017 Investor Presentation - FY & 4Q 2016 Results - Disclaimer Management Update 4Q 2016 Results FY 2016 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
20 FEB 2017 Management Update Disclaimer Management Update 4Q 2016 Results FY 2016 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 6 billion market cap Business Units Domestic International Freight Logistics & eCommerce Express Express Other At a glance Aramex Domestic I
Slide 5: Aramex shareholders were rewarded by strong TSR in 2016
Shareholder Returns Aramex shareholders were rewarded by strong TSR in 2016 Closing Price FY 2016 Market Capitalization (AEDm) 7,000 AED 4.07 6,000 5,959 5,000 4,451 4,539 4,627 4,000 Total Return Metrics: 3,045 2,928 3,000 2,635 2,090 +29% 2,000 2016 share price increase 679 1,000 239 92 0 +34% 199
Slide 6: Management delivered and exceeded all targets for 2016
Outlook & Guidance Management delivered and exceeded all targets for 2016 2015 Actual 2016 Target 2016 Actual Express AED 1,387 m Double-digit growth 22% AED 1,687 m → ✓ Freight Forwarding AED 1,203 m Slight decrease 6% AED 1,131 m → ✓ Domestic ✓ AED 729 m Double-digit growth 35% AED 981 m → Logisti
Slide 7: Management focused on five key areas to drive 2016 results
Key Messages Management focused on five key areas to drive 2016 results 2016 was a record year for Aramex Strong top and bottom line performance, especially in Q4 2016 eCommerce → Continues to be the main driver of Aramex express and logistics businesses Asset-light model → Proves our business model
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 20 February 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 have already started building out the Aramex ecosystem
Aramex Ecosystem We have already started building 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 • Pos
Slide 14: 4Q 2016 Results
20 FEB 2017 4Q 2016 Results Disclaimer Management Update 4Q 2016 Results FY 2016 performance Management Outlook Contacts Page 14
Slide 15: Strong top and bottom line growth continues
Financial Performance Strong top and bottom line growth continues 4Q 2016 Results → Performance across key indicators (AED) 1,029,340 1,104,986 1,050,377 1,158,455 981,901 REVENUES → 18% growth compared to 4Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 149,298 163,522 116,903 91,726 70,233 EBIT → 133% year on
Slide 16: 4Q 2016 Group Highlights
Financial & Performance Highlights 4Q 2016 Group Highlights Management Comments → Revenues (AED m) CoR (AED m) 1,158 -473 -494 -422 1,050 982 Revenue performance in the fourth quarter was driven by growth across most geographies, with Asia-Pacific being a major contributor. 4Q 15 3Q 16 4Q 16 4Q 15 3
Slide 17: 4Q 2016 Financial Highlights
Financial & Performance Highlights 4Q 2016 Financial Highlights Income Statement (AEDm) → Quarter Movement (%) 4Q 16 3Q 16 4Q 15 q-o-q y-o-y Revenue 1,158.5 1,050.4 981.9 10% 18% Cost of Revenues (494.4) (472.8) (422.1) -5% -17% Gross profit 664.1 577.5 559.8 15% 19% Overheads (515.8) (487.2) (490.8
Slide 18: Domestic and international express delivered 64% of revenues
Financial & Performance Highlights Domestic and international express delivered 64% of revenues Revenues by segment (AED m) → Y-o-Y Growth 30% -9% 30% 29% 24% 14 1,158 57 15 Other 6% 116 -26 Logistics 6% Express 43% 982 Domestic 21% 4Q 2016 Freight Forwarding 4Q 2015 Express Freight Domestic Logisti
Slide 19: 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 (%) 177 1,158 Asia and Others 982 4 3 24% Middle East & Africa -7 North America 61% 3% 4Q 2016 Europe 12% Geographic Perfor
Slide 20: 4Q 2016 Financial Highlights
Financial & Performance Highlights 4Q 2016 Financial Highlights Income Statement Financial Ratios (AEDm) → Quarter Movement 4Q 16 3Q 16 4Q 15 q-o-q y-o-y EPS (AED) 0.090 0.049 0.039 83% 129% Gross profit margin (%) 57.3% 55.0% 57.0% 2.3% 0.3% Net profit margin (%) 11.4% 6.9% 5.9% 4.5% 5.5% EBITDA ma
Slide 21: 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 31 Dec 2016 31 Dec 2015 Actual Change % 3,974 292 Current assets 1,655 1,602 53 3% 46 137 3,445 23 36 Non-current assets 2,3
Slide 22: 4Q 2016 Financial Highlights
Financial & Performance Highlights 4Q 2016 Financial Highlights Income Statement Financial Ratios (AEDm) → Movement 31 Dec 2016 31 Dec 2015 Actual in % Cash and cash equivalents 701 707 -6 -1% Receivables (net) 754 731 23 3% Other current assets 199 163 36 22% Total current assets 1,655 1,602 53 3%
Slide 23: Long-term Performance
20 FEB 2017 Long-term Performance Disclaimer Management Update 4Q 2016 Results FY 2016 performance Management Outlook Contacts Page 23
Slide 24: Evolution of Express business – outgrowing freight forwarding
Financial & Performance Highlights Evolution of Express business – outgrowing freight forwarding Y-o-Y Total Segmental Revenues (%) → Revenue Growth 8% 10% 3% 16% Express contribution to total revenues continues to grow, outgrowing other 100% 11% 12% 11% 12% 13% businesses 80% 34% 32% 26% The key dr
Slide 25: Aramex maintains a track record of delivering operational excellence
Long Term Performance Aramex maintains a track record of delivering operational excellence Aramex 2012-2016 (Indexed) → 180 170 We delivered a consistently strong performance 160 since 2012 150 2012-2016 CAGR 140 Revenues 9.0% 130 Cost of Revenues 7.8% 120 EBITDA: 14.2% EBITDA before special items:
Slide 26: 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 reflects 3,500 3,321 additional income generated primarily in 3,072 international cross-border express
Slide 27: Strong underlying results right across the business
Long Term Performance Strong underlying results right across the business EBITDA before special items (AED m) → CAGR 700 12.2% 584 EBITDA before special items: 600 Aramex generated strong underlying result 511 500 465 across the business 431 400 368 300 200 100 0 2012 2013 2014 2015 2016 Investor Pr
Slide 28: Aramex generates consistent performance across key KPIs
Long Term Performance Aramex generates consistent performance across key KPIs EBITDA margin before special items (%) → Net Profit Margin (%) → Return on Equity (%) → 16.0% 12.0% 20.0% 18.8% 13.6% 13.5% 18.0% 14.0% 9.8% 13.0% 12.8% 10.0% 12.0% 8.7% 16.0% 8.4% 8.3% 14.7% 14.4% 12.0% 7.9% 13.3% 14.0% 8
Slide 29: 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 4,343 4,500 388 126 Growth story since 2012 718 -38 4,000 3,500 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 30: 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 5,000 588 4,343 4,500 Growth story since 2012 569 4,000 63 52 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 31: Aramex balance sheet evolution
Long Term Performance Aramex balance sheet evolution Debt / Equity (%) Total Asset (AED m) → 4,500 50% 3,974 Aramex has consistently grown its balance 4,000 45% sheet. Driven mainly by acquisitions, Aramex 3,445 40% 3,500 3,207 will continue to increase leverage. 2,986 35% 3,000 2,715 27.7% 30% 2,50
Slide 32: Aramex management proposes to pay a dividend of AED 0.16 for 2016
Value Creation Aramex management proposes to pay 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 to be 0.150 0.140 approved by shareholders at AGM on 19 Feb 2017 70.5% 0.115 64.4% 60.0% 60.6% Gross div
Slide 33: Aramex shareholders rewarded by long term performance
Long Term Performance Aramex shareholders rewarded by long term performance Total Performance (Jan 2012-Dec 2016) → 13.9% 53.9% 8.6% 6.5% 33.5% Return 4.50 Share Price Change: 126.1% 4.00 3.50 Annualized return: 17.7% 3.00 Total Return 2.50 (dividends reinvested): 172.4% 2.00 1.50 Annualized Total R
Slide 34: Management Outlook
20 FEB 2017 Management Outlook Disclaimer Management Update 4Q 2016 Results FY 2016 performance Management Outlook Contacts Page 34
Slide 35: 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 36: Management Ambition: Guidance
Outlook & Guidance Management Ambition: Guidance 2015 Actual 2016 Actual 2017 Targets Express AED 1,387 m AED 1,687 m Double-digit growth Freight Forwarding AED 1,203 m AED 1,131 m Single-digit decrease Domestic AED 729 m AED 981 m Single-digit growth Logistics AED 206 m AED 265 m Double-digit growt
Slide 37: 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 3,072 465 465 626 368 431 2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E Revenues EBITDA Investor Presentation Page 37 20 February 2017
Slide 38: Investor Relations Contacts
Aramex Investor Relations Contacts Hussein Hachem Bashar Obeid Mohammad Al Qassem CEO CFO Investor Relations Investor Relations: investors@aramex.com Tel +971 4 2118464 P.O. Box Dubai – UAE www.aramex.com/investors Investor Presentation Page 38 20 February 2017
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