Slide 1: Investor Presentation - 1Q 2017 Results
30 APR 2017 Investor Presentation - 1Q 2017 Results - Disclaimer Management Update 1Q 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
30 APR 2017 Management Update Disclaimer Management Update 1Q 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 7.2 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 1Q 2017 Market Capitalization (AEDm) 8,000 7,247 AED 4.95 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 +22% 3,000 2,090 1Q 2017 share price increase 2,000 and Total Shareholde
Slide 6: Management expects to deliver 2017 revenue targets
Outlook & Guidance Management expects to deliver 2017 revenue targets 2016 Actual 2017 Target 1Q 2017 Actual Express 22% AED 1,687 m Double-digit growth 20% AED 457 m → → ✓ Freight Forwarding 6% AED 1,131 m Single-digit decrease 3% AED 276 m → ✓ → Domestic 35% AED 981 m Single-digit growth 5% AED 24
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 30 April 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: 1Q 2017 Results
30 APR 2017 1Q 2017 Results Disclaimer Management Update 1Q 2017 Results Long term performance Management Outlook Contacts Page 14
Slide 15: Continue to deliver a good underlying performance
Financial Performance Continue to deliver a good underlying performance 1Q 2017 Results → Performance across key indicators (AED) 7% growth compared to 1Q 16; 13% 1,029,340 1,104,986 1,050,377 1,158,455 1,105,932 REVENUES → growth excluding exchange rate impact 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 149,298
Slide 16: 1Q 2017 Group Highlights
Financial & Performance Highlights 1Q 2017 Group Highlights Management Comments → Revenues (AED m) CoR (AED m) 1,158 -494 -494 1,106 -447 1,029 Revenue performance in the first quarter was driven by growth across most geographies, with Asia- Pacific being a major contributor. Revenues in other regio
Slide 17: 1Q 2017 Financial Highlights
Financial & Performance Highlights 1Q 2017 Financial Highlights Income Statement (AEDm) → Quarter Movement (%) 1Q 17 4Q 16 1Q 16 q-o-q y-o-y Revenue* 1,105.9 1,158.5 1,029.3 -5% 7% Cost of Revenues (494.2) (494.4) (446.8) 0% -11% Gross profit 611.7 664.1 582.5 -8% 5% Overheads (496.0) (515.8) (468.3
Slide 18: Domestic and international express delivered 63% of revenues
Financial & Performance Highlights Domestic and international express delivered 63% of revenues Revenues by segment (AED m) → Y-o-Y Growth 20% -3% 5% -8% 0% 78 11 0 1,106 Other 6% -7 -5 Logistics 1,029 6% Express 41% Domestic 22% 1Q 2017 Freight Forwarding 1Q 2016 Express Freight Domestic Logistics*
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 (%) 98 1,106 Asia and Others 1,029 3 24% Middle East 3 North America & Africa -27 61% 3% 1Q 2017 Europe 12% Geographic Perf
Slide 20: 1Q 2017 Financial Highlights
Financial & Performance Highlights 1Q 2017 Financial Highlights Income Statement Financial Ratios (AEDm) → Quarter Movement 1Q 17 4Q 16 1Q 16 q-o-q y-o-y EPS (AED) 0.063 0.090 0.066 -30% -5% EPS before special items* (AED) 0.072 0.090 0.066 -20% 8% Gross profit margin (%) 55.3% 57.3% 56.6% -2.0% -1.
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 Mar 2017 31 Dec 2016 Actual Change % 13 4,082 35 6 0 59 Current assets 1,744 1,655 89 5% 3,974 Non-current assets 2,338 2
Slide 22: Composition of assets
Financial & Performance Highlights Composition of assets Income Statement Financial Ratios (AEDm) → Movement 31 Mar 2017 31 Dec 2016 Actual in % Cash and cash equivalents 696 701 -5 -1% Receivables (net) 813 754 59 8% Other current assets 234 199 35 17% Total current assets 1,744 1,655 89 5% Propert
Slide 23: Long-term Performance
30 APR 2017 Long-term Performance Disclaimer Management Update 1Q 2017 Results Long term performance Management Outlook Contacts Page 23
Slide 24: 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 other 100% 11% 12% 11% 12% 13% 12% businesses 80% 32% 26% 25% The key driver of this de
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% 14.1% 18.0% 17.3% 14.0% 9.8% 13.0% 12.8% 10.0% 12.0% 8.7% 16.0% 14.7% 14.4% 12.0% 8.4% 8.3% 8.3% 1
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 4,082 Aramex has consistently grown its balance 4,000 45% 3,445 40% sheet. Driven mainly by acquisitions, Aramex 3,500 3,207 will continue to increase leverage. 2,986 32.0% 35% 3,000 2,715 27
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-Mar 2017) → 13.9% 53.9% 8.6% 6.5% 33.5% 21.6% Return 6.00 Share Price Change: 175.0% 5.00 Annualized return: 21.2% 4.00 Total Return 3.00 (dividends reinvested): 231.2% 2.00 Annualized Total Retur
Slide 34: Management Outlook
30 APR 2017 Management Outlook Disclaimer Management Update 1Q 2017 Results Long term 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 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 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 30 April 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 4 211 8464 P.O. Box Dubai – UAE www.aramex.com/investors Investor Presentation Page 38 30 April 2017
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