Aramex Pjsc · DFM:ARMX
Aramex Pjsc — Aramex — Q1 2021 Earnings Presentation
33 slides from Aramex Pjsc's earnings presentation, 2021
Slide 1: Investors Presentation Q1 2021 Results
Investors Presentation Q1 2021 Results Management Update |Q1 2021 Results | Long Term Performance | Management Outlook
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
Management Update Management Update |Q1 2021 Results | Long Term Performance | Management Outlook
Slide 4: Aramex Overview
Aramex Overview Aramex is a Global Provider of Logistics and Transportation Solutions 17,000+ | 600+ in 65+ | AED 1.4 | AED 5.8 Employees Offices Countries Billion Revenues Billion Market Cap We understand that delivering from one side of the country to another requires efficiency and reliability of
Slide 5: Shareholder Returns
Shareholder Returns Aramex Shareholders were Rewarded by Good TSR Closing Price Q1 2021 Market Capitalization (AEDm) AED 3.93 7,000 6,000 5,959 6,296 6,281 6,413 5,754 5,227 5,000 4,451 4,539 4,627 Total Return Metrics 4,000 3,045 2,928 3,000 2,635 2,090 -10.92% 2,000 1,000 679 YTD 2021 share price
Slide 6: Management Focused on Four Key Areas to Drive 2021 Results
Key Messages Management Focused on Four Key Areas to Drive 2021 Results Focus Area Management Remains Focused on Long-Term Growth Drivers Continues to be the main growth driver of Aramex express and logistics eCommerce businesses Asset-light model Proves our business model can be successful through
Slide 7: Management Priorities: Expand Footprint
Management Priorities Management Remains Focused on Three Key Priorities Expand Footprint Develop & define our stronghold in GCC & Levant Expand Aramex presence in Asia Pacific and Africa Globalize the Aramex brand in emerging markets | Investor Presentation
Slide 8: Management Priorities: Leverage Infrastructure
Management Priorities Management Remains Focused on Three Key Priorities Expand Footprint Leverage Infrastructure Develop & define our Grow eCommerce business stronghold in GCC & Levant Expand Aramex presence in Integrate supply chain management Asia Pacific and Africa solutions and value added serv
Slide 9: Management Priorities: Organic Growth
Management Priorities Management Remains Focused on Three Key Priorities Expand Footprint Leverage Infrastructure Organic Growth Develop & define our Continue to deliver operational Grow eCommerce business stronghold in GCC & Levant excellence Accelerate organic expansion Expand Aramex presence in I
Slide 10: Q1 2021 Results
Q1 2021 Results Management Update |Q1 2021 Results | Long Term Performance | Management Outlook
Slide 11: Strong Top and Bottom Line Performance
Financial Performance Strong Top and Bottom Line Performance Q1 2021 Results Performance across key indicators (AED) 1,151,644 1,293,777 1,466,534 1,598,345 1,424,933 Revenues 24% growth compared to Q1 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 184,239 209,876 168,515 179,603 169,844 EBITDA -8% ye
Slide 12: Q1 2021 Group Highlights
Financial & Performance Q1 2021 Group Highlights Highlights Management Comments Revenue (AED m) Cost of Services (AED m) -1191 Revenues jumped 24% to AED 1,425 million driven 1,598 1,425 -1066 by increased demand for Express business including 1,152 -801 cross border e-commerce and last mile service
Slide 13: Q1 2021 Financial Highlights: Income Statement
Financial Performance & Q1 2021 Financial Highlights Highlights Income Statement (AEDm) Quarter Movement (%) Q1 2021 Q4 2020 Q1 2020 q-o-q y-o-y Revenue 1,425 1,598 1,152 -11% 24% Cost of Services (1,066) (1,191) (801) 10% -33% Gross Profit 359 407 350 -12% 2% Overheads (287) (286) (255) -0.4% -13%
Slide 14: International Express and Domestic delivered 70% of revenues
Financial Performance & International Express and Domestic delivered 70% of revenues Highlights Revenues by Segment (AED m) Y-o-Y Growth 35% 10% 23% 10% 16% Other Logistics 2% 67 10 4 7% 1,425 167 26 1,152 Domestic 25% Express 45% Q1 2021 Freight Forwarding 20% Q1 2020 Express Freight Domestic Logis
Slide 15: Geographic Performance – Strongest Growth in Middle East & Africa
Financial Performance & Geographic Performance – Strongest Growth Recorded in Middle East & Africa Highlights Revenues by Geography Y-o-Y Growth 9% 31% 36% 60% Asia and 1,500 146 1,425 Others 27% 45 20 1,250 63 1,152 Middle East North Q1 2021 & Africa 54% 1,000 America 5% 750 Europe 13% 500 250 - Q1
Slide 16: Q1 2021 Financial Highlights: Financial Ratios
Financial Performance & Q1 2021 Financial Highlights Highlights Financial Ratios (AEDm) Movement (%) Q1 2021 Q4 2020 Q1 2020 q-o-q y-o-y EPS (AED) 0.031 0.040 0.046 -23% -33% Gross Profit Margin % 25.2% 25.5% 30.4% -0.3% -5.2% Net Profit Margin % 3.2% 3.7% 5.9% -0.4% -2.6% EBITDA Margin % 11.9% 11.2
Slide 17: Balance Sheet Remains Strong and Liquid
Financial Performance & Balance Sheet Remains Strong and Liquid Highlights Balance Sheet Highlights Asset Movement Y-o-Y (AED m) Current Assets Non-Current Assets Movement 31 Mar 2021 31 Dec 2020 Actual Change % 6,115 -204 -21 -28 -6 5,887 24 1 0 6,000 Current assets 2,419 2,621 -201 -8% 5,000 Asset
Slide 18: Composition of Assets
Financial Performance & Composition of Assets Highlights Composition of Assets Movement 31 Mar 2021 31 Dec 2020 Actual in % Cash and cash equivalents 1,051 1,255 -204 -16% Receivables (net) 1,073 1,094 -21 -2% Other current assets 296 272 24 9% Total current assets 2,419 2,621 -201 -8% Assets held f
Slide 19: Long Term Performance
Long Term Performance Management Update |Q1 2021 Results | Long Term Performance | Management Outlook
Slide 20: Evolution of Express Business – Outgrowing Freight Forwarding
Financial Performance & Evolution of Express Business – Outgrowing Freight Forwarding Highlights Y-o-Y Total Segmental Revenues (%) Revenue Growth 9% 8% -0.4% 9% 100% 9% International and Domestic Express 13% 11% 12% 9% 9% contribution to total revenues continues to grow, outgrowing all other busine
Slide 21: Track Record of Delivering Operational Excellence
Long Term Performance Aramex Maintains a Track Record of Delivering Operational Excellence Aramex 2015 - 2020 (indexed) We delivered a consistently strong performance since 2015 2015 - 2020 CAGR Revenues 8.0% Cost of Services 10.7% EBITDA 9.7% 2015 2016 2017 2018 2019 2020 Revenue EBITDA CoR On 3 Fe
Slide 22: Aramex Continues to Deliver Solid Top Line Performance
Long Term Performance Aramex Continues to Deliver Solid Top Line Performance Revenues (AEDm) CAGR 6,000 8.0% 5,510 • Revenue growth of 9% in 2020 5,086 5,068 5,000 4,721 4,343 • Revenue growth reflects additional income generated primarily in international 4,000 3,755 cross border express business a
Slide 23: Strong Underlying Results Right Across the Business
Long Term Performance Strong Underlying Results Right Across the Business CAGR EBITDA Before Special Items (AED m) 10.6% EBITDA before special items: 1,000 925 Aramex generated strong underlying results 900 across the business 806 800 742 *** 700 669 586 ** 600 514 * 500 400 300 On 3 February 2021,
Slide 24: Consistent Performance Across Key KPIs
Long Term Performance Aramex Generates Consistent Performance Across Key KPIs EBITDA Margin (%) Net Profit Margin (%) Return on Equity (%) 20.0% 10.0% 9.8% 9.7% 9.8% 22.0% 21.0% 20.4% 9.2% 20.0% 19.0% 19.0% 9.0% 18.8% 18.2% 8.3% 19.0% 18.0% 17.4% 18.0% 8.0% 17.0% 16.0% 17.0% 7.0% 15.0% 14.4% 14.0% 1
Slide 25: 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) 2015-2020 6,000 Growth story since 2015 169 -114 5,510 5,500 633 1,186 -118 5,000 CAGR Express 13.2% 4,500 4,000 3,755 3,500 CAGR Freight Forwarding -2.1% 3,000 2,500 2,000 CAGR Domestic 13.3% 1,
Slide 26: 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) 2015-2020 Growth story since 2015 6,000 1,238 5,510 5,000 CAGR Middle East 1.9% 106 138 274 3,755 4,000 CAGR Europe 4.6% 3,000 CAGR North America 14.4% 2,000 CAGR Asia & Other 36.3%
Slide 27: Aramex Balance Sheet Evolution
Long Term Performance Aramex Balance Sheet Evolution Debt/Equity% Total Assets (AED m) 7,000 50% Aramex has consistently grown its balance 6,115 45% 5,743 5,887 sheet. 6,000 40% 5,000 4,704 35% Driven mainly by acquisitions, Aramex will 4,404 3,974 33.9% continue to increase leverage. 4,000 30% 27.7
Slide 28: Management Proposes to Pay a Dividend of AED 0.130 for 2020
Value Creation Aramex Management Proposes to Pay a Dividend of AED 0.130 for 2020 Dividend Payout (AED/Share) Dividend Payout Ratio (%) Dividends 0.163 0.165 0.165 0.160 Dividend proposal of AED 0.130 per 71.4% was approved by the shareholders at AGM on 21st April 2021 0.130 54.8% 54.9% * 49.0% ** 4
Slide 29: Shareholders are Rewarded by Long Term Performance
Long Term Performance Aramex Shareholders are Rewarded by Long Term Performance Performance ( Jan 2015 - Mar 2021) Total Return 33.50% 8.90% 3.77% -2.19% 29.00% Share price change: 28.43% 6 5 Annualized return: 4.39% 4 Total return 4.81% (dividends reinvested): 3 2 1 0 2016 2017 2018 2019 2020 2021
Slide 30: Management Outlook
Management Outlook Management Update |Q1 2021 Results | Long Term Performance | Management Outlook
Slide 31: 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 structure O
Slide 32: Long Term Ambition Level – Projected Roadmap to 2023
Outlook & Guidance Long Term Ambition Level – Projected Roadmap to 2023 5,510 5,086 5,068 4,721 4,343 806 925 627 669 742 * 2016 2017 2018 2019 2020 2021E 2022E 2023E Revenue EBITDA * Excluding the fire incident related provisions in Lebanon & Morocco and expected credit loss on cash at bank in Leba
Slide 33: Aramex Investor Relations Contacts
Aramex Investor Relations Contacts Arun Singh Anas Hijjawi Thomas Kipp Mohammad Al Qassem Acting CFO & CCO COO Investor Relations Corporate Treasurer Investor Relations: InvestorRelations@aramex.com Tel +971 4 211 8464 P.O. Box Dubai – UAE aramex.com/investors | Investor Presentation