Egyptian Transport & Commercial Services Co. SAE · EGX:ETRS
Egyptian Transport & Commercial Services Co. SAE — Investor Presentation (January 2014)
70 slides from Egyptian Transport & Commercial Services Co. SAE's investor presentation, January 2014
Slide 1: Investors' Presentation January 2014
Investors’ Presentation January 2014
Slide 2: Agenda
Agenda Company Synopsis Performance 9M13 vs. 9M12 Mission & Vision Performance by LoB 2009‐9M13 Values Performance by Branch 2009‐9M13 Background Important KPIs Affiliates & Subsidiaries Strategic Position & Direction Key Corporate Milestones Market Position Shareholders’ S
Slide 3: Company Synopsis
~ EGYTRANS Company Synopsis
Slide 4: Mission & Vision
Mission & Vision Mission We make integrated transport easy, safe and cost‐effective. Vision We will be the preferred partner for integrated global transport services and solutions in Egypt, providing the best value to customers, employees and shareholders. EGYTRANS Investors’ Presentation Ja
Slide 5: Values
Values Integrity: We always live up to our promises and treat everyone with respect, dignity and honesty. We hold ourselves to the highest moral and ethical standards and we are committed to provide consistent and reliable services in everything we do. We uphold our duty to the society in which we
Slide 6: Values
Values Learning & Personal Growth: We believe that our learning and growth as an organization is based on the learning and growth of each one of us. We seek to improve continually as a company and as individuals. Building Partnerships: Our customers’ success is the main driving force behind ever
Slide 7: Background
Background EGYTRANS was established in September 1973 as a Limited Liability Company under the Open Door policy. In January 1987, the legal framework was changed to an S.A.E. company under the umbrella of Law 159 for the year 1981 and its regulations. However, its experience in transport activitie
Slide 8: Affiliates & Subsidiaries
Affiliates & Subsidiaries Source: EGYTRANS EGYTRANS Investors’ Presentation January 2014
Slide 9: ETAL (Subsidiary)
ETAL (Subsidiary) Egyptian Transportation & Logistics (ETAL) was established in 1982 under the umbrella of the Internal Investment System Law 343 for the year 1974. In December 2012, ETAL increased its authorized capital from EGP 25 mn to EGP 250 mn, while its paid‐in capital was increased by EG
Slide 10: EDS (Subsidiary)
EDS (Subsidiary) Global Depot Solutions (GDS) was established in September 2009 under Law 159 for the year 1981. In February 2012, EGYTRANS fully acquired the company by buying the remaining 25% and changed the name to EGYTRANS Depot Solutions (EDS). The company’s authorized capital is USD 5 mn
Slide 11: ERP (Subsidiary)
ERP (Subsidiary) EGYTRANS River Ports (ERP) was established in May 2009 under Law 159 for the year 1981. The company is currently in the process of obtaining all required licenses to start its activities. It has an authorized capital of EGP 100 mn with a current paid‐in capital of EGP 25 mn dist
Slide 12: EBL (Subsidiary)
EBL (Subsidiary) EGYTRANS Barge Link (EBL) was established in May 2009 under Law 159 for the year 1981. It has an authorized and paid‐in capital of EGP 2.5 mn distributed over 25,000 shares. The company’s main purpose is to transport cargo and containers to and from sea ports and terminals ove
Slide 13: Red Sea Ports Joint Venture (Subsidiary)
Red Sea Ports Joint Venture (Subsidiary) In 4Q13, EGYTRANS won a bid after a competition with 6 companies to establish a new joint venture company with the Red Sea Ports Authority. According to the offer, 80% of the new company will be owned by EGYTRANS, while the remaining 20% will be owned by
Slide 14: Barwil EGYTRANS & Scan Arabia (Affiliates)
Barwil EGYTRANS & Scan Arabia (Affiliates) Barwil EGYTRANS was established in August 1995 and Scan Arabia in June 1998. Both were established under Law 159 for the year 1981. The purpose of both companies is representing vessel owners/operators and shipping lines in Egyptian sea ports and termin
Slide 15: Key Corporate Milestones
Key Corporate Milestones • Established Corporate Governance & Risk Management in addition to Int'l Forwarding departments • Attained ISO 10002 certification • EGYTRANS selected by IFC as a leader in terms of Corporate Governance in the MENA 2007 region • A 1.5:10 stock dividend declared to sharehold
Slide 16: Key Corporate Milestones
Key Corporate Milestones • Shareholders to subscribe to the EGP100-n capital increase to EGP156.1mn • EGYTRANS sold 25% stake of GDS to Oversight Enterprises LTD • EGYTRANS increased GDS and ETAL capitals to USD 0.8mn and EGP 8 mn, respectively • Obtaining the Armed Forces approval for ERP to own la
Slide 17: Key Corporate Milestones
Key Corporate Milestones • EGYTRANS fully acquired GDS and changed its name to Egytrans Depot Solutions (EDS). Capital was raised to USD 1.5 mn. • Testing the Libyan market for potential investments and operational opportunities. • ETAL started expansion program for its fleet and equipment 2012 • GA
Slide 18: Shareholder Structure
Shareholder Structure Free Float, 23.2% Egyptian Arab Individuals, National Institutions, 18.4% Investment Other, 34.5% Bank, 25.3% 8.6% Egyptian Institutions, Leheta Family, 4.9% 17.1% Arab Foreign Individuals, Institutions, 1.7% 0.9% Source: Egytrans EGYTRANS Investors’ Presentation January 2014
Slide 19: Lines of Business
Lines of Business The company offers a wide array of services in the field of integrated transport: Customs Clearance Project Logistics & Specialized Transport Sea Freight. Air Freight Consolidation (LCL) Warehousing (Bonded Warehouse and Free Zone) Transit Chartering Exhibitions
Slide 20: Customs Clearance
Customs Clearance EGYTRANS offers customs clearance services for all types of cargo including general, break bulk, containerized or Ro/Ro cargo. It employs a specialized highly qualified team for this purpose which helps to save time and offers high quality service. EGYTRANS Investors’ Presentat
Slide 21: Projects
Projects EGYTRANS specializes in logistical solutions for mega projects including transport of sensitive equipment and packages of exceptional weight or dimensions. The company has a highly trained and specialized team that carries out detailed road surveys and logistical studies to determine the
Slide 22: Sea Freight
Sea Freight EGYTRANS is able to ship all types of cargo including general, break bulk, containerized or Ro/Ro cargo to and from any part of the world at competitive tariffs in addition to issuing its own Suez Gulf Line NVOCC bills of lading. EGYTRANS Investors’ Presentation January 2014
Slide 23: Air Freight
Air Freight EGYTRANS provides a quick and easy air freight service at competitive rates. Our service includes import, export, consolidation and hanging garment containers. EGYTRANS Investors’ Presentation January 2014
Slide 24: Consolidation
Consolidation EGYTRANS offers weekly consolidation services from Egypt to over 400 worldwide destinations with receiving stations in Cairo and Alexandria. Consolidation groups many small sea or air freight shipments together into a single large shipment and offers the advantages of competitive fre
Slide 25: Warehousing
Warehousing EGYTRANS owns and operates warehouses strategically located at or near industrial areas in Cairo, Alexandria and the Port Said Free Zone. The company provides distribution services, bonded warehousing, container yard operations and domestic storage. Many years of experience and continu
Slide 26: Chartering
Chartering EGYTRANS offers cost‐effective and reliable chartering solutions designed to meet any sea freight challenge since 1997. We have successfully brokered transport for agricultural commodities, fertilizers, chemicals and mining products, whether bulk or general cargo in addition to project
Slide 27: Exhibitions
Exhibitions EGYTRANS provides integrated solutions in the field of fairs and exhibitions, smoothly coordinating the transport of cargo and materials to and from any exhibition. The company has a specialized Exhibitions Department comprising a team of professionals in transportation, logistics and
Slide 28: Policies, Certificates & Systems
Policies, Certificates & Systems
Slide 29: Corporate Governance
Corporate Governance EGYTRANS has committed itself to a code of corporate governance that ensures responsible, value‐based, transparent management of the company, reinforcing the long‐term confidence of shareholders, customers, employees and other stakeholders in the leadership of the company. E
Slide 30: Corporate Social Responsibility
Corporate Social Responsibility EGYTRANS is committed to building sustainable growth and to fulfilling its responsibility towards its employees and stakeholders and towards the community. EGYTRANS has undertaken a number of initiatives in the area of CSR. Industry sponsor for the new AUC IEEI
Slide 31: Strategic Planning
Strategic Planning EGYTRANS has put in place a strategic management system based on the Balanced Scorecard, enabling us to measure our progress, not just financially, but also in key areas related to our relationship with customers, the quality and efficiency of our internal processes and how well
Slide 32: Integrated Management System
Integrated Management System 1st services company in Egypt to attain ISO 9001 Quality Management certification designed to drive continual improvement within the organization and ensure customer satisfaction in 1994. 1st services company in Egypt to attain OHSAS 18001 certification for Occupatio
Slide 33: IT Systems
IT Systems EGYTRANS has embarked on an ambitious project to become an e‐business, using the internet to serve our customers, integrate with our agents and suppliers and streamline our internal business processes. EGYTRANS has implemented Oracle E‐business Suite (Financials & HR) and is in the fi
Slide 34: Consolidated Financial & Operational Performance
Consolidated Financial & Operational Performance
Slide 35: Performance (2007-9M13)
Performance (2007-9M13) Overall Performance Margins Performance Revenues Cost of Revenues SG&A Gross Profit Margin EBITDA Margin Net Profit Margin EBITDA Net Profits Revenues Growth Net Profits Growth 30% 2012 In EGPmn 120% 25% 230 100% 20% 200 80% 170 15% 60% 140 40% 10% 110 20% 80 5% 0% 50 ‐20% 0%
Slide 36: Performance (2007-9M13)
Performance (2007-9M13) Investment Income is considered one of the major net profit contributors that is directly related to our business. It is the dividend that comes from our affiliates “Barwil EGYTRANS” and “Scan Arabia” Shipping Agencies, in which EGYTRANS owns a 30% stake each. Investment Inco
Slide 37: Performance 2012 vs. 2011
Performance 2012 vs. 2011 Revenues Breakdown by LoB 2012 Revenues Breakdown by LoB 2011 Transit Commercial Consolidation Air Freight Transportation Consolidation Commercial 7.5% Operations Transportation 10.1% 5.3% 5.1% Operations 5.0% 6.2% 2.9% 2.1% Air Freight Transit 4.2% 4.1% Free Zone EDS Proje
Slide 38: Performance 2012 vs. 2011
Performance 2012 vs. 2011 Revenues Breakdown by Branch 2012 Revenues Breakdown by Branch 2011 Merghem Free Zone Damietta Free Zone 7.4% 2.3% Port Said 7.2% 0.4% Damietta 7.7% 8.1% Merghem 8.6% Port Said Alexandria * Alexandria * 9.9% 49.5% 48.7% Cairo 11.5% Suez 11.2% Cairo Suez 11.6% 15.9% * Alexan
Slide 39: Performance 2012 vs. 2011
Performance 2012 vs. 2011 GP Breakdown by LoB 2012 GP Breakdown by LoB 2011 GPM % GPM GPM % GPM 50% 100% 40% 110% 40% 80% 30% 80% 20% 30% 60% 50% 10% 20% 40% 20% 0% 10% 20% ‐10% ‐10% 0% 0% ‐20% ‐40% ‐10% ‐20% ‐30% ‐70% * Others include; Renting Equipment, Insurance, * Others include; Renting Equipme
Slide 40: Performance 2012 vs. 2011
Performance 2012 vs. 2011 GP Breakdown by Branch 2012 GP Breakdown by Branch 2011 GPM % GPM GPM % GPM 50% 100% 50% 40% 40% 80% 40% 20% 30% 60% 30% 0% 20% 40% 20% ‐20% 10% 20% 10% ‐40% 0% 0% 0% ‐60% ‐10% ‐20% ‐10% ‐80% * Alexandria branch includes EDS * Alexandria branch includes EDS Source: Egytrans
Slide 41: Performance 9M13 vs. 9M12
Performance 9M13 vs. 9M12 Revenues Breakdown by LoB 9M13 Revenues Breakdown by LoB 9M12 * Others include; Renting Equipment, Insurance, * Others include; Renting Equipment, Insurance, Packing, Storage and Commercial Operations Packing and Storage Source: Egytrans financials Source: Egytrans financia
Slide 42: Performance 9M13 vs. 9M12
Performance 9M13 vs. 9M12 Revenues Breakdown by Branch 9M13 Revenues Breakdown by Branch 9M12 Damietta Free Zone Merghem Free Zone Port Said 2.2% 1.8% 7.2% 1.0% 5.7% Cairo Damietta 6.5% 7.2% Suez Port Said 7.1% 9.0% Alexandria * Alexandria * 52.3% Merghem 69.4% Cairo 7.3% 11.1% Suez 12.2% * Alexandr
Slide 43: Performance 9M13 vs. 9M12
Performance 9M13 vs. 9M12 GP Breakdown by LoB 9M13 GP Breakdown by LoB 9M12 GPM % GPM GPM % GPM 60% 100% 40% 100% 50% 30% 80% 80% 40% 60% 60% 20% 40% 30% 40% 10% 20% 20% 0% 0% 10% 20% 0% 0% * Others include; Renting Equipment, Insurance, * Others include; Renting Equipment, Insurance, Packing, Stora
Slide 44: Performance 9M13 vs. 9M12
Performance 9M13 vs. 9M12 GP Breakdown by Branch 9M13 GP Breakdown by Branch 9M12 GPM % GPM GPM % GPM 60% 100% 60% 100% 50% 80% 50% 80% 40% 40% 60% 60% 30% 30% 40% 40% 20% 20% 10% 20% 10% 20% 0% 0% 0% 0% * Alexandria branch includes EDS * Alexandria branch includes EDS Source: Egytrans financials So
Slide 45: Performance by LoB (2009-9M13)
Performance by LoB (2009-9M13) Clearance Performance Projects Performance In EGPmn Revenues Cost Gross Profit GPM In EGPmn Revenues Cost Gross Profit GPM 80 12% 70 35% 70 10% 60 30% 60 50 25% 8% 50 40 20% 40 6% 30 15% 30 4% 20 10% 20 2% 10 5% 10 0 0% 0 0% 2009 2010 2011 2012 9M13 2009 2010 2011 2012
Slide 46: Performance by LoB (2009-9M13)
Performance by LoB (2009-9M13) Transportation Performance Transit Performance In EGPmn Revenues Cost Gross Profit GPM In EGPmn Revenues Cost Gross Profit GPM 10 120% 10 95% 9 8 100% 90% 8 80% 7 6 85% 6 60% 5 80% 4 40% 4 75% 2 3 20% 2 70% 0 0% 1 2009 2010 2011 2012 9M13 0 65% ‐2 ‐20% 2009 2010 2011 2
Slide 47: Performance by LoB (2009-9M13)
Performance by LoB (2009-9M13) Commercial Operations Performance Consolidation Performance In EGPmn Revenues Cost Gross Profit GPM In EGPmn Revenues Cost Gross Profit GPM 9 20% 16 50% 8 18% 14 45% 7 16% 40% 12 14% 35% 6 12% 10 30% 5 10% 8 25% 4 8% 6 20% 3 6% 15% 2 4 4% 10% 1 2% 2 5% 0 0% 0 0% 2009 2
Slide 48: Performance by LoB (2009-9M13)
Performance by LoB (2009-9M13) Air Freight Performance Free Zone Performance * In EGPmn Revenues Cost Gross Profit GPM In EGPmn Revenues Cost Gross Profit GPM 25 20% 70 100% 60 80% 20 10% 50 60% 15 0% 40% 40 10 ‐10% 20% 30 5 ‐20% 0% 20 ‐20% 0 ‐30% 10 ‐40% 2009 2010 2011 2012 9M13 ‐5 ‐40% 0 ‐60% 2009
Slide 49: Performance by Branch (2009-9M13)
Performance by Branch (2009-9M13) Alexandria Performance * Cairo Performance In EGPmn Revenues Cost Gross Profit GPM In EGPmn Revenues Cost Gross Profit GPM 90 25% 20 40% 80 18 35% 70 20% 16 30% 14 60 15% 12 25% 50 10 20% 40 10% 8 15% 30 6 20 10% 5% 4 10 2 5% 0 0% 0 0% 2009 2010 2011 2012 9M13 2009
Slide 50: Performance by Branch (2009-9M13)
Performance by Branch (2009-9M13) Suez Performance Port Said Performance In EGPmn Revenues Cost Gross Profit GPM In EGPmn Revenues Cost Gross Profit GPM 25 60% 14 25% 50% 12 20 20% 10 40% 15 8 15% 30% 10 6 10% 20% 4 5 5% 10% 2 0 0% 0 0% 2009 2010 2011 2012 9M13 2009 2010 2011 2012 9M13 Source: Egytr
Slide 51: Performance by Branch (2009-9M13)
Performance by Branch (2009-9M13) Damietta Performance Merghem Performance In EGPmn Revenues Cost Gross Profit GPM In EGPmn Revenues Cost Gross Profit GPM 20 18% 16 50% 18 16% 14 40% 16 14% 12 14 12% 10 30% 12 10% 8 10 20% 8% 6 8 6% 4 10% 6 4 4% 2 0% 2 2% 0 0 0% ‐2 ‐10% 2009 2010 2011 2012 9M13 2009
Slide 52: Performance by Branch (2009-9M13)
Performance by Branch (2009-9M13) Free Zone Performance In EGPmn Revenues Cost Gross Profit GPM 70 100% 60 80% 50 60% 40% 40 20% 30 0% 20 ‐20% 10 ‐40% 0 ‐60% 2009 2010 2011 2012 9M13 ‐10 ‐80% * Operations stopped in Dec 2009 and resumed in Jul 2012 Source: Egytrans financials EGYTRANS Investors’ Pre
Slide 53: Important KPIs
Important KPIs Profitability 2007 2008 2009 2010 2011 2012 2012 * 9M13 ROE 9.1% 15.9% 20.6% 6.0% 6.1% 0.2% 11.2% 10.1% ROA 4.5% 8.8% 9.1% 4.4% 4.6% 0.1% 8.2% 8.1% ROC 8.6% 12.9% 0.3% 5.6% 2.3% 0.2% 10.9% 11.3% GP Margin 15.0% 11.4% 14.0% 11.1% 16.9% 23.5% 23.5% 27.8% EBITDA Margin 6.5% 4.8% 6.3% -2.
Slide 54: Strategic Position & Direction
Strategic Position & Direction
Slide 55: Market Position
Market Position Technical & market leader in transport field. 1st to introduce many transport services to Egyptian market including consolidation & bonded warehousing. Major Player in project logistics & specialized transport with a market share of 40% in 2012, increased to 45% in 2013. Stro
Slide 56: Capex Plan
Capex Plan Capex Amount Subsidiary / Activity Invested Remaining Source of Finance Description Exp. Time Frame ETAL EGP37mn Equity raise and Buying new unique and versatile equipment to During 2014 EGP10mn internal finance meet the expected demand on Projects Lifting & Installation Equity raise and
Slide 57: Future Outlook
Future Outlook One of the major growth drivers is entering the new river transport business in line with the government plan to reach 10% of the cargo transported locally via river. River transport via barges and ports operations and management has high profitability margins. Projects LoB is one
Slide 58: Future Outlook
Future Outlook Expanding regionally, there is huge potential in the Libyan market during the stage of reconstruction once stability and security are recovered. Global containerization trend will allow EGYTRANS to increase its trading volume of containers. EGYTRANS added new Bonded Warehousing
Slide 59: SWOT Analysis
SWOT Analysis Strengths: Weaknesses: Industry know‐how and technical Staff competence levels in some areas expertise and in some soft skills Financial Position Efficiency of receivables collection Features & quality of services provided requires improvement Agent network & relationsh
Slide 60: SWOT Analysis
SWOT Analysis Opportunities: Threats: Stevedoring & Bonded Warehousing Local political and economic situation Targeting major accounts with high level Stock market volatility and overall lack of customer expectations of investor confidence due to local Inland Water Transport situation
Slide 61: Share Performance
~ EGYTRANS Share Performance
Slide 62: Share Data & Info (2008-2013)
Share Data & Info (2008-2013) Item 2008 2009 2010 2011 2012 2013 Market Capitalization * 93,568,313 69,069,000 214,273,813 84,273,750 180,564,313 212,088,938 Day High 26.96 26.57 29.09 15.03 17.01 13.89 Day Low 9.63 13.64 10.75 4.67 4.87 6.83 Average Daily Volume 488,343 440,299 190,035 115,381 112,
Slide 63: Performance - 2013
Performance - 2013 Average Close & % Change Buy/Sell Volumes Ratio Close % Chg. Buy Volume Sell Volume Ratio * 16 15% 100% 9 14 90% 8 10% 80% 12 7 5% 70% 6 10 60% 5 8 0% 50% 4 6 40% ‐5% 30% 3 4 2 ‐10% 20% 2 10% 1 0 ‐15% 0% 0 * The Grey line is the ratio’s benchmark. If the ratio is above 1x, it mean
Slide 64: Relative Performance - 2013
Relative Performance - 2013 YTD Growth vs. Market Indices Relative Performance vs. Market Indices Egytrans EGX30 EGX70 Egytrans EGX30 ‐ rebased EGX70 ‐ rebased EGX100 EGX20 Capped EGX100 ‐ rebased EGX20 ‐ rebased Linear (Egytrans) 30% 14 20% Performance reached the bottom on June 30 10% 12 0% ‐10% 1
Slide 65: Relative Performance - Post June 30, 2013
Relative Performance - Post June 30, 2013 Egytrans vs. Market Indices Egytrans vs. Industry Peers Egytrans EGX30 ‐ rebased EGX70 ‐ rebased ETRS ALCN ‐ rebased CSAG ‐ rebased EGX100 ‐ rebased EGX20 ‐ rebased Linear (Egytrans) UASG ‐ rebased Linear (ETRS) 16.00 18.00 16.00 14.00 14.00 12.00 12.00 10.0
Slide 66: Why Invest in EGYTRANS?
~ EGYTRANS Why Invest in EGYTRANS?
Slide 67: Why EGYTRANS?
Why EGYTRANS? EGYTRANS proved resilient despite the tough political and economic unrest in Egypt and successfully surpassed the negative economic impact of the global financial crisis and January 2011 revolution and its consequences. EBITDA and net profit margins improved rapidly from 6.6% and 3
Slide 68: Why EGYTRANS?
Why EGYTRANS? Has a clear strategic plan for the next 5 years in order to enhance revenues and profitability. The plan includes expansions into new LoB within EGYTRANS in addition to entering new businesses that are related to transport & logistics via new subsidiaries or existing ones. Good uti
Slide 69: Questions…
Questions… EGYTRANS Investors’ Presentation January 2014
Slide 70: EGYTRANS Investors' Presentation January 2014
EGYTRANS Investors’ Presentation January 2014