Slide 1: Investor Presentation 1Q 2016 Results
12 MAY 2016 Investor Presentation 1Q 2016 Results Bashar Obeid, CFO Management Update 1Q 2016 Results Long term performance Outlook & Guidance Appendix 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
12 MAY 2016 Management Update Bashar Obeid, CFO Management Update 1Q 2016 Results Long term performance Outlook & Guidance Appendix Page 3
Slide 4: Aramex is a global provider of logistics and transportation solutions
Aramex Today Aramex is a global provider of logistics and transportation solutions Key Topics Key Messages 13,800+ employees Management Focus 350+ offices in 60 Countries Financial Performance Value Creation AED 5.1 billion market cap Core Beliefs Management Incentive Plan 1Q 2016 Management Present
Slide 5: Aramex is well positioned for future growth
Key Messages Aramex is well positioned for future growth Leader in Transport and Logistics → Aramex is a market leader with a strong management track record of success Asset-light → We remain focused on delivering an asset-light business model Efficiency → We are transitioning towards a leaner, more
Slide 6: Aramex is focused on three key priorities
Management Focus Aramex is focused on three key priorities Expand Footprint Leverage Infrastructure Organic Growth Develop and defend our stronghold Leverage the existing infrastructure to create Accelerate organic expansion, building on in GCC & Levant new business opportunities strengths and value
Slide 7: Strong start in the first quarter 2016
Financial Performance Strong start in the first quarter 2016 1Q 2016 Results → Performance across key indicators 929 967 937 1,003 1,048 REVENUES → 12.7% year on year growth 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 129 137 111 93 141 EBITDA → 9% year on year improvement 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 13.9% 14.1
Slide 8: Shareholders consistently participate in growth despite market volatility
Value Creation Shareholders consistently participate in growth despite market volatility Market Capitalization (AED m) → 4,883 4,539 4,627 4,451 3,045 2,928 2,635 2,090 679 239 92 1997 2002 2005 2009 2010 2011 2012 2013 2014 2015 1Q 16 Listing on Delisting Listing on Nasdaq from DFM Nasdaq 1Q 2016 M
Slide 9: AGM approved significant dividend payout for 2015
Value Creation AGM approved significant dividend payout for 2015 Dividends → Dividend Payout (AED / share) Dividend Payout Ratio (%) Dividend proposal of AED 0.150 per share approved in April 2016 0.150 0.140 70.5% 64.4% 60.0% 60.6% Gross yield: ~4.5% 0.115 0.100 Management target remains unchanged:
Slide 10: 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 dynamics Shipping is changing → apply to all playe
Slide 11: Three key components drive our operational roadmap
Operational Roadmap Three key components drive our operational roadmap Growth Innovation Transformation Organic Growth In-house R&D People Platform Infrastructure M&A M&A Culture 1Q 2016 Management Presentation Page 11 12 May 2015
Slide 12: M&A: Focus is on eCommerce and last mile delivery
Growth M&A: Focus is on eCommerce and last mile delivery Aramex → Fastway Ltd – last mile delivery 2020 21 Jan 2016 100% acquisition at AED 293.65 million; cash + debt → 1,500 courier franchisees across Australia, New Zealand, Ireland, Northern Ireland and Strong last mile delivery network → South A
Slide 13: M&A: Focus is on eCommerce and last mile delivery
Growth M&A: Focus is on eCommerce and last mile delivery Aramex → Startup Portfolio 2020 In FY 2015 6 small acquisitions of eCommerce and last mile delivery networks → Geographies 2 x India, 1x Canada, 1x Brazil, 1x Saudi Arabia, 1 x Dubai → Focus areas Parcel delivery, Food delivery, Laundry delive
Slide 14: New incentive plan aligns management and shareholder interests
Management Incentivization New incentive plan aligns management and shareholder interests Short-term incentivization → Long-term incentivization → Cash Settlement → Senior Executives Senior Executives Senior Executives 37 million Variable strike phantom 50% grant 50% granted Fixed Variable price and
Slide 15: 1Q 2016 Results
12 MAY 2016 1Q 2016 Results Bashar Obeid, CFO Management Update 1Q 2016 Results Long term performance Outlook & Guidance Appendix Page 15
Slide 16: 1Q 2016 Group Highlights
Financial & Performance Highlights 1Q 2016 Group Highlights Management Comments → Revenues (AED m) CoR (AED m) -435 -457 1,003 1,048 -410 929 AED 118.2 million revenue increase mainly driven by double-digit growth in all core business, offset by decline in Freight Forwarding; AED 58 million increase
Slide 17: 1Q 2016 Key Performance Indicators
Financial & Performance Highlights 1Q 2016 Key Performance Indicators Income Statement Financial Ratios (AED m) → 1Q 16 4Q 15 1Q 15 q-o-q Y-o-y EPS (AED) 0.066 0.039 0.059 68.3% 11.8% Gross profit margin (%) 56% 57% 56% -0.3% 0.4% Net profit margin (%) 9.9% 6.7% 10.4% 3.3% -0.5% EBITDA margin % 13.4
Slide 18: Q1 growth in core segments in line with management agenda
Financial & Performance Highlights Q1 growth in core segments in line with management agenda Revenues by segment (AED m) → Y-o-Y Growth 16.9% -6.5% 25.8% 33.7% 27.6% 1,048 15 17 Other 51 Logistics 7% 55 6% 929 (20) Express 36% Domestic 24% 1Q 2016 Freight Forwarding 27% 1Q 15 Express Freight Domesti
Slide 19: 1Q 2016 Business segment highlights
Financial & Performance Highlights 1Q 2016 Business segment highlights Income Statement Segmental Performance (AED m) → Revenue Gross Profit 1Q 16 1Q 15 y-o-y 1Q 16 1Q 15 y-o-y Express 379.1 324.2 16.9% 261.3 218.6 20% Freight Forwarding 282.8 302.5 -6.5% 80.5 82.4 -2% Domestic 250.1 198.9 25.8% 138
Slide 20: Express business is outgrowing freight forwarding
Financial & Performance Highlights Express business is outgrowing freight forwarding Y-o-Y Total Segmental Revenues (%) → Revenue Growth 16% 19% 8% 10% 5% Evolution of revenue mix since 2010 points to Express business outgrowing other 100% 12.1% 11.4% 11.1% 11.7% 11.4% 11.3% 12.9% businesses; this i
Slide 21: Geographic performance – strongest growth in Asia
Financial & Performance Highlights Geographic performance – strongest growth in Asia Revenue Bridge y-o-y (AED m) Revenues by Geography → 84 1,048 Geographic Contribution (%) Asia and Others 17% Middle East & Africa 67% 30 0 3 North America 929 3% 1Q 2016 Europe 13% Geographic Performance y-o-y (%)
Slide 22: Balance Sheet Movement in 1Q 2016
Financial & Performance Highlights Balance Sheet Movement in 1Q 2016 Total Assets (AED m) → 3,896 248 35 115 Total assets increased AED 451 million (+13.1%), 3,445 56 mainly as a result of an increase in goodwill and 26 -29 property, plant & equipment from the acquisition of Fastway Ltd. 31 Dec 15 C
Slide 23: Q1 2016 acquisitions drive increase in total debt
Financial & Performance Highlights Q1 2016 acquisitions drive increase in total debt Liabilities (AED m) → 1,636 210.6 11.4 Debt/ Equity Ratio (%) 18.0 22.5 1,246 123.2 30.9% 4.7 16.2% 7.3% 7.1% 7.6% 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 Total Debt (AED m) 689 350 162 151 164 31 Dec 15 Due to Banks Current
Slide 24: Long-term Performance
12 MAY 2016 Long-term Performance Bashar Obeid, CFO Management Update 1Q 2016 Results Long term performance Outlook & Guidance Appendix Page 24
Slide 25: Aramex has a track record of delivering operational excellence
Long Term Performance Aramex has a track record of delivering operational excellence Aramex 2010-2015 (Indexed) → 200 190 We delivered a consistently strong performance 180 since 2010 170 160 2010-2015 CAGR 150 Revenues 11.6% 140 Cost of Revenues 10.4% 130 EBITDA: 11.3% 120 EBITDA before special ite
Slide 26: Aramex continues to deliver solid top line growth
Long Term Performance Aramex continues to deliver solid top line growth Revenues (AED m) → CAGR 11.6% 4,500 Revenue generation 4,000 3,837 3,643 Despite market volatility, low oil price and 3,500 3,321 regional instability, very solid revenue growth of 3,072 5.3% for 2015 3,000 2,571 2,500 2,212 Gro
Slide 27: Strong underlying result across the business
Long Term Performance Strong underlying result across the business EBITDA Margin % EBITDA before special items (AED m) → CAGR 13.4% 600 EBITDA before special items: 516 Aramex generated strong underlying result 500 461 425 across the business 400 364 306 300 275 200 100 2010 2011 2012 2013 2014 2015
Slide 28: Aramex maintains performance across key indicators
Long Term Performance Aramex maintains performance across key indicators EBITDA margin before special items (%) → Net Profit Margin (%) → Return on Equity (%) → 16.0% 12.0% 16.0% 14.7% 14.4% 10.4% 13.5% 14.0% 13.3% 14.0% 12.8% 12.7% 9.5% 9.5% 12.4% 10.0% 9.4% 11.9% 11.9% 8.8% 9.0% 12.1% 11.5% 11.3%
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) → 2010-2015 4,000 102 65 3,837 Growth story since 2010 480 3,500 279 698 CAGR Express 15.0% 3,000 2,500 2,212 CAGR Freight Forwarding 5.4% 2,000 1,500 CAGR Domestic 19.6% 1,000 CAGR Logistics 14.
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) → 2010-2015 3,837 4,000 224 Growth story since 2010 64 Thousands 1,200 137 3,500 CAGR Middle East 12.1% 3,000 2,500 2,212 CAGR Europe 5.9% 2,000 1,500 CAGR North America 18.8% 1,000
Slide 31: Aramex balance sheet Evolution
Long Term Performance Aramex balance sheet Evolution Debt / Equity (%) Total Asset (AED m) → 3,445 3,500 3,207 50% Aramex consistently grows its balance sheet 2,986 45% 3,000 2,715 40% 2,493 We maintain a prudent approach towards 2,500 2,286 35% managing our debt 30% 2,000 25% Debt*/ Equity low at 8
Slide 32: Aramex shareholders rewarded by long term performance
Long Term Performance Aramex shareholders rewarded by long term performance Performance (Jan 2010-Dec 2015) → Total 47.8% -9.42% 12.2% 55.6% 6.59% 6.23% Return 3.50 Share Price Change: 118.6% 3.00 Annualized return: 13.9% 2.50 Total Return 2.00 (dividends reinvested): 180.4% 1.50 Annualized Total Re
Slide 33: Outlook & Guidance
12 MAY 2016 Outlook & Guidance Bashar Obeid, CFO Management Update 1Q 2016 Results Long term performance Outlook & Guidance Appendix Page 33
Slide 34: 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 technology → Focus on operational excellence → → dividend policy Grow e Commerce Portfolio → Variabilization of cost structure → Targe
Slide 35: Management Ambition: Guidance
Outlook & Guidance Management Ambition: Guidance 2015 Actual 2016 Target (AED m) Express 13% AED 1,387 m Double-digit growth → Freight Forwarding 3.3% AED 1,203 m Slight decrease → Domestic 7.5% AED 811 m Double-digit growth Logistics 3.9% AED 205 m Slight increase Other 4.9% AED 229 m Slight increa
Slide 36: Long Term Ambition Level – Roadmap to 2020
Outlook & Guidance Long Term Ambition Level – Roadmap to 2020 AED m 6,000 5,000 3,837 4,000 3,650 3,325 3,072 3,000 2,571 2,212 2,000 1,000 464 516 275 309 368 430 - 2010 2011 2012 2013 2014 2015 2016E 2017E 2018E 2019E 2020E Revenues EBITDA 1Q 2016 Management Presentation Page 36 12 May 2015
Slide 37: Appendix
12 MAY 2016 Appendix Bashar Obeid, CFO Management Update 1Q 2016 Results Long term performance Outlook & Guidance Appendix Page 37
Slide 38: Aramex balance sheet remains strong and liquid
Financial & Performance Highlights Aramex balance sheet remains strong and liquid 2015 Highlights → Total Assets (AED m) → Asset Movement Y-o-Y (AED m) → Total balance sheet grew by 7.4% Cash Receivables Other Assets 3,445 Total assets increased by AED 238 m 173 12 3,445 Cash up by AED 87.3 m; 20.5%
Slide 39: Aramex increased debt to increasing funding flexibility for acquisitions
Financial & Performance Highlights Aramex increased debt to increasing funding flexibility for acquisitions 2015 Highlights → Total Liabilities (AED m) → Total Debt Breakdown (AED m) → Total liabilities are up AED 131 m Other Liabilities Total Debt Shareholder's Equity Increase mainly a result of in
Slide 40: Segmental Performance
Financial & Performance Highlights Segmental Performance AED m 1Q 16 4Q 15 1Q 15 q-o-q y-o-y Express Revenues 379.1 382.3 324.2 -0.8% 16.9% CoR (117.8) (121.2) (105.6) -2.8% 11.6% Gross Profit 261.3 261.1 218.6 0.1% 19.5% GP % of Revenue 68.9% 68.3% 67.4% 0.9% 2.2% Freight Forwarding Revenues 282.8
Slide 41: Investor Relations Contacts
Aramex Investor Relations Contacts Hussein Hachem Bashar Obeid Mohammad Al Qassem CEO CFO Investor Relations Download Aramex App: Investor Relations: investors@aramex.com Tel +971 4 2118464 Dubai – UAE www.aramex.com/investors 1Q 2016 Management Presentation Page 41 12 May 2015
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