Slide 1: Investors Presentation FY & Q4 Results
Investors Presentation FY & Q4 Results Management Update | Q4 2018 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 | Q4 2018 Results | Long Term Performance | Management Outlook | Investor Presentation
Slide 4: Aramex is a Global Provider of Logistics and Transportation Solutions
Aramex Overview Aramex is a Global Provider of Logistics and Transportation Solutions 15,623 Employees | 600+ Offices in 65+ Countries | AED 5.1 Billion Revenues | AED 6.3 Billion Market Cap Domestic International Logistics Freight E-Commerce Express Express & Other We understand that With Aramex Wh
Slide 5: Aramex Shareholders were Rewarded by Good TSR
Shareholder Returns Aramex Shareholders were Rewarded by Good TSR Closing Price Q4 2018 Market Capitalization (AEDm) AED 4.29 7,000 6,000 5,959 6,296 6,281 5,000 4,451 4,539 4,627 Total Return Metrics 4,000 3,045 2,928 3,000 2,635 -4.65% 2,000 2,090 679 YTD 2018 share price 1,000 92 239 increase and
Slide 6: Management Delivers on overall 2018 Revenue Targets
Outlook & Guidance Management Delivers on overall 2018 Revenue Targets 2017 Actual 2018 Target 2018 Actual Express ↑ 19% AED 2,006 m Double-digit growth ↑ 13% AED 2,273 m Freight Forwarding ↑ 2% AED 1,157 m Single-digit growth ↑ 1% AED 1,164 m Domestic ↑ 4% AED 1,022 m Single-digit growth ↑ 3% AED 1
Slide 7: Management Focused on Four Key Areas to Drive 2018 Results
Key Messages Management Focused on Four Key Areas to Drive 2018 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 8: Management Remains Focused on Three Key Priorities
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 9: Management Remains Focused on Three Key Priorities
Management Priorities Management Remains Focused on Three Key Priorities Expand Footprint Leverage Infrastructure Develop & define our stronghold in Grow eCommerce business GCC & Levant Expand Aramex presence in Asia Integrate supply chain management Pacific and Africa solutions and value added serv
Slide 10: Management Remains Focused on Three Key Priorities
Management Priorities Management Remains Focused on Three Key Priorities Expand Footprint Leverage Infrastructure Organic Growth Develop & define our stronghold in Continue to deliver operational Grow eCommerce business GCC & Levant excellence Accelerate organic expansion Expand Aramex presence in A
Slide 11: 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 players i
Slide 12: Q4 2018 Results
Q4 2018 Results Management Update | Q4 2018 Results | Long Term Performance | Management Outlook | Investor Presentation
Slide 13: Strong Top and Bottom Line Performance
Financial Performance Strong Top and Bottom Line Performance Q4 2018 Results Performance across key indicators (AED) 1,323,973 1,231,913 1,239,108 1,425,402 1,189,632 Revenues 8% growth compared to Q4 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 235,843 272,035 166,628 191,599 175,410 EBITDA 15% yea
Slide 14: Q4 2018 Group Highlights
Financial & Performance Q4 2018 Group Highlights Highlights Management Comments Revenue (AED m) Cost of Revenues (AED m) 1,425 -642 -613 • Revenue growth in Q4 2018 was 1,324 1,239 contributed by most of our -569 regions, supported by the strong growth of cross-border Q4 2017 Q3 2018 Q4 2018 Q4 2017
Slide 15: Q4 2018 Financial Highlights
Financial Performance & Q4 2018 Financial Highlights Highlights Income Statement (AEDm) Quarter Movement (%) Q4 2018 Q3 2018 Q4 2017 q-o-q y-o-y Revenue 1,425 1,239 1,324 15% 8% Cost of Revenue (642) (569) (613) -13% -5% Gross Profit 783 671 711 17% 10% Overheads (543) (527) (507) -3% -7% Profit for
Slide 16: International Express and Domestic delivered 68% of revenues
Financial Performance & International Express and Domestic delivered 68% of revenues Highlights Revenues by Segment (AED m) Y-o-Y Growth 15% -4% -1% 23% 8% Other Logistics 5% 94 -11 -2 16 5 1,425 6% 1,324 Domestic 19% Express Q4 2018 49% Freight Forwarding 21% Q4 2017 Express Freight Domestic Logist
Slide 17: Geographic Performance – Strongest Growth Recorded in Middle East & Africa
Financial Performance & Geographic Performance – Strongest Growth Recorded in Middle East & Africa Highlights Revenues by Geography Y-o-Y Growth 6% -7% 6% 18% Asia and Others 1,500 1,425 30% 63 47 -11 2 1,324 1,250 Q4 2018 Middle East & Africa North 57% America 1,000 3% Europe 10% 750 500 250 - Q4 2
Slide 18: Q4 2018 Financial Highlights: Financial Ratios
Financial Performance & Q4 2018 Financial Highlights Highlights Financial Ratios (AEDm) Movement (%) Q4 2018 Q3 2018 Q4 2017 q-o-q y-o-y EPS (AED) 0.105 0.077 0.113 36% -7% Gross Profit Margin % 54.9% 54.1% 53.7% 0.8% 1.3% Net Profit Margin % 10.8% 9.1% 12.5% 1.7% -1.7% EBITDA Margin % 19.1% 14.2% 1
Slide 19: 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) Movement Current Assets Non-Current Assets 103 38 -39 -117 4,704 31 Dec 2018 31 Dec 2017 Actual Change % 206 4,404 109 Current assets 2,330 1,911 418 22% Non-current asset
Slide 20: Composition of Assets
Financial Performance & Composition of Assets Highlights Financial Ratios (AEDm) Movement 31 Dec 2018 31 Dec 2017 Actual in % Cash and cash equivalents 837 728 109 15% Receivables (net) 1,141 934 206 22% Other current assets 353 250 103 41% Total current assets 2,330 1,911 418 21.9% Property, Plant
Slide 21: Long Term Performance
Long Term Performance Management Update | Q4 2018 Results | Long Term Performance | Management Outlook | Investor Presentation
Slide 22: 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 10% 3% 16% 9% 8% 100% Express contribution to total revenues 12% 11% 12% 13% 11% 12% continues to grow, outgrowing all other businesses. 80% 25% 23% 26%
Slide 23: Aramex Maintains a Track Record of Delivering Operational Excellence
Long Term Performance Aramex Maintains a Track Record of Delivering Operational Excellence Aramex 2013 - 2018 (indexed) We delivered a consistently strong performance since 2013 2013 - 2018 CAGR Revenues 8.9% Cost of Revenues 8.8% EBITDA 13.1% 2013 2014 2015 2016 2017 2018 CoR Revenue EBITDA | Inves
Slide 24: Aramex Continues to Deliver Solid Top Line Performance
Long Term Performance Aramex Continues to Deliver Solid Top Line Performance Revenues (AEDm) 6,000 5,086 • Revenue growth of 8% in 2018 CAGR 5,000 4,721 8.9% 4,343 • Revenue growth reflects additional 4,000 3,643 3,755 income generated primarily in international 3,321 cross border express business a
Slide 25: Strong Underlying Results Right Across the Business
Long Term Performance Strong Underlying Results Right Across the Business EBITDA Before Special Items (AED m) CAGR 13.1% EBITDA before special items: 900 Aramex generated strong underlying results 806 across the business 800 700 669 586 ** 600 514 * 500 468 436 400 300 200 100 - 2013 2014 2015 2016
Slide 26: 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% 15.8% 10.0% 9.8% 9.7% 20.0% 18.8% 9.3% 9.0% 8.7% 18.0% 17.4% 8.4% 8.3% 15.0% 8.0% 16.0% 14.7% 14.4% 14.2% 14.1% 7.0% 14.0% 13.3% 14.0% 13.7% 13.5% 6.0% 12.
Slide 27: 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) 2013-2018 78 5,086 132 Growth story since 2013 5,000 -70 406 4,500 4,000 CAGR Express 16.6% 3,500 3,321 1,219 3,000 CAGR Freight Forwarding -1.2% 2,500 2,000 CAGR Domestic 10.3% 1,500 1,000 CAGR
Slide 28: 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) 2013-2018 1,020 5,086 Growth story since 2013 5,000 89 CAGR Middle East 4.5% 4,000 603 52 3,321 CAGR Europe 1.9% 3,000 CAGR North America 22.4% 2,000 CAGR Asia & Other 37.0% 1,000 0
Slide 29: Aramex Balance Sheet Evolution
Long Term Performance Aramex Balance Sheet Evolution Debt/Equity% Total Assets (AED m) 5,000 4,704 50% Aramex has consistently grown its balance 4,404 4,500 45% sheet. 3,974 4,000 40% 3,445 3,500 3,207 35% Driven mainly by acquisitions, Aramex will 2,986 continue to increase leverage. 3,000 27.7% 27
Slide 30: Management Proposes to Pay a Dividend of AED 0.165 for 2018
Value Creation Aramex Management Proposes to Pay a Dividend of AED 0.165 for 2018 Dividend Payout (AED/Share) Dividend Payout Ratio (%) Dividends 0.163 0.165 0.160 Dividend proposal of AED 0.165 per to 0.150 70.5% * be approved by shareholders at AGM 0.140 on 10 April 2019 60.6% 64.4% 0.115 54.9% **
Slide 31: Aramex Shareholders are Rewarded by Long Term Performance
Long Term Performance Aramex Shareholders are Rewarded by Long Term Performance Performance ( Jan 2013 - Dec 2018) Total Return 53.90% 8.60% 6.50% 33.50% 8.90% 3.77% Share price change: 138.33% 6 Annualized return: 13.18% 5 4 Total return 195.75% (dividends reinvested): 3 Annualized total return: 16
Slide 32: Management Outlook
Management Outlook Management Update | Q4 2018 Results | Long Term Performance | Management Outlook | Investor Presentation
Slide 33: 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 T
Slide 34: Management Ambition: Guidance
Outlook & Guidance Management Ambition: Guidance 2017 Actual 2018 Actual 2019 Targets Express ↑ 19% AED 2,006 m ↑ 13% AED 2,273 m Double-digit growth Freight Forwarding ↑ 2% AED 1,157 m ↑ 1% AED 1,164 m Single-digit growth Domestic ↑ 4% AED 1,022 m ↑ 3% AED 1,051 m Single-digit growth Logistics ↓ 2%
Slide 35: Long Term Ambition Level – Projected Roadmap to 2021
Outlook & Guidance Long Term Ambition Level – Projected Roadmap to 2021 5,086 4,721 4,343 3,643 3,755 3,321 669 806 627 436 468 468 2013 2014 2015 2016 2017 2018 2019E 2020E 2021E Revenue EBITDA | Investor Presentation
Slide 36: Aramex Investor Relations Contacts
Aramex Investor Relations Contacts Bashar Obeid Nadia Abu Sarah Iyad Kamal Mohammad Al Qassem CEO CFO COO Investor Relations Investor Relations: InvestorRelations@aramex.com Tel +971 4 211 8464 P.O. Box Dubai – UAE www.aramex.com/investors | Investor Presentation