Aramex Pjsc · DFM:ARMX
Aramex Pjsc — Aramex — Q3 2021 Earnings Presentation
40 slides from Aramex Pjsc's earnings presentation, 2021
Slide 1: Investor Presentation Q3 2021 Results
INVESTOR PRESENTATION Q3 2021 RESULTS Q3 2021 Financial Results Highlights | Corporate Update and Outlook | Regional Performance |Financial statements highlights | Stated Strategic Priorities
Slide 2: Disclaimer | 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, fut
Slide 3: Aramex Overview | Asset-light Global Provider of Logistics and Transportation Solutions
Aramex Overview | Aramex is an asset-light Global Provider of Logistics and Transportation Solutions 17,000+ 65+ 600+ AED 4.5 + AED 5 + 98m 1.1M 605M KGs Employees Countries Offices Billion Revenues Billion Market Cap Express Volumes SQM global Moved in 9M 2021 9m 2021 owned, leased and 9m 2021 mana
Slide 4: Table of contents
Disclaimer | Table of contents 1. Q3 2021 Financial Results Highlights 2. Corporate Update Appendices: Appendix 1 – Regional Performance Appendix 2 – Financial Statements Highlights Appendix 3 – Stated Strategic Priorities Page 4
Slide 5: Q3 2021 Financial Results Highlights
Q3 2021 Financial Results Highlights Q3 2021 Financial Results Highlights | Corporate Update and Outlook | Regional Performance |Financial statements highlights | Stated Strategic Priorities
Slide 6: Financial Performance | Q3 2021 Group Results
Financial Performance | Q3 2021 Group Results Performance across key indicators Q3 2021 Results (AED "000") 1,466,534 1,598,345 1,424,933 1,570,923 1,461,404 Revenues -0.3% growth Year on year Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 169,496 179,604 169,844 192,711 163,134 EBITDA -4% EBITDA growth ye
Slide 7: Management comments
Financial & Performance Highlights |Q3 2021 Group Highlights Management Revenue (AED m) Cost of Services (AED m) comments 1,571 -1182 -1105 We delivered a good topline performance, with double digit -1058 1,467 1,461 growth in revenues in Domestic Express, Freight Forwarding and Logistics. E-commerc
Slide 8: Financial & Performance Highlights | Business segment breakdown
Financial& Performance Highlights|Business segment breakdown Courier Freight Logistics Other Services Grand -total 2021 Vs2020 3rd Qrt'21 3rdQrt'20 3rd Qrt'21 3rdQrt'20 3rd Qrt'21 3rdQrt'20 3rd Qrt'21 3rdQrt'20 % % % % 3rd Qrt'21 3rd Qrt'20 % Revenue 997,395 1,065,473 (6%) 318,000 274,872 16% 108,44
Slide 9: Regional Breakdown | Q3 2021
Regional Breakdown | Q3 2021 EUROPE REV 185.9 m 13% NORTH ASIA AMERICA Rev GRTH GP 28.9 32.3 m 18% 41% REV 108.9 m 7% 66.1 m Volumes 1,130,616 -3% Rev GRTH -114.9 -51% REV 5% 16.3 m 33% GP 28.2 m -65% Rev GRTH 10.9 m 20% Volumes 685,890 -51% GP Volumes 1,090,283 44% MENAT Management comments REV Rev
Slide 10: Revenues by Segment (AED m)
Financial & Performance Highlights | double digit growth in Domestic, freight and logistics Revenues by Segment (AED m) Y-o-Y Growth -16% 16% 13% 15% 17% -112 44 14 5 1,461 Logistics Other 1,467 43 7% 3% Domestic 27% Express Q3 2021 41% Freight Forwarding 22% Q3 2020 Express Freight Domestic Logisti
Slide 11: Revenues by Geography (AED m)
Financial & Performance Highlights | stable revenues overall Revenues by Geography (AED m) 16 20 35 -115 1,467 -20 21 29 13 -4 1,461 GCC MENAT 34% 14% Europe Others Q3 2021 13% 1% Sub-Saharan and Americas South Africa 5% 6% North Asia Oceana 7% South Asia 11% 9% Q3 202 0 GCC MENAT Eur ope Americas O
Slide 12: Gross profit by Geography (AED m)
Financial & Performance Highlights | positive performance in most markets Gross profit by Geography (AED m) 408 8 9 2 0.3 3 -51 4 -12 -15 356 MENAT GCC 18% 28% Europe 9% Q3 2021 Americas Others 3% 9% Oceana Sub-Saharan and 12% South Africa North AsiaSouth Asia 8% 8% 5% Q3 202 0 GCC MENAT Eur ope Ame
Slide 13: Financial Ratios
Financial & Performance Highlights |Q3 2021 Group Highlights Financial Ratios Movement (%) Q3 2021 Q2 2021 Q3 2020 q-o-q y-o-y EPS (AED) 0.046 0.045 0.032 2% 47% Gross Profit Margin % 24.4% 24.7% 27.8% -0.3% -3.4% Net Profit Margin % 4.6% 4.2% 3.2% 0.47% 1.5% EBITDA Margin % 11.2% 12.3% 11.6% -1.1%
Slide 14: 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 30 Sep 2021 31 Dec 2020 Actual Change % 6,115 -104 -18 81 24 67 5,836 -104 -18 Current assets 2,580 2,621 -40 -2% 6,000 Asse
Slide 15: Corporate Update
corporate Update Q3 2021 Financial Results Highlights | Corporate Update and Outlook | Regional Performance |Financial statements highlights | Stated Strategic Priorities
Slide 16: New Shareholder Structure
corporate Update | NEW SHAREHOLDER STRUCTURE NEW SHAREHOLDER STRUCTURE • During the period October 20 – 26 2021, GeoPost/DPDgroup announced it had acquired 24.9% of the outstanding share capital of Aramex th th through a combination of direct and open market transactions. The investment is subject t
Slide 17: Sustainability Targets
corporate Update | sustainability and Science Based Target initiative SUSTAINABILITY TARGETS • Post period, on October 10th, 2021, Aramex signed a commitment with the Science Based Target initiative (SBTi) to significantly reduce its greenhouse gas emissions by 2030. By signing this commitment, Aram
Slide 18: Appendix 1: Regional Performance
Appendix 1: Regional Performance Q3 2021 Financial Results Highlights | Corporate Update and Outlook | Regional Performance |Financial statements highlights | Stated Strategic Priorities
Slide 19: Regions | Aramex Global Footprint
Regions | Aramex Global Footprint Eu Czech Republic France Ireland Malta Netherlands Slovakia United Kingdom N&S America MENAT United States of America Canada & GSO Algeria Libya North Asia China Hong Kong Egypt Morocco Georgia Iran Palestine Sudan GCC Bahrain Iraq Tunisia Kuwait Jordan Turkey Oman
Slide 20: Regional Performance | GCC
Regional Performance| GCC Quarter Movement (%) Q3 2021 Q2 2021 Q3 2020 q-o-q y-o-y Total Revenue (AED "000") 501,543 550,657 522,041 -9% -4% Express (incl SnS) 151,945 186,334 211,641 -18% -28% Domestic 146,203 143,632 139,636 2% 5% Freight Forwarding 142,818 158,640 126,365 -10% 13% Logistics 58,83
Slide 21: Regional Performance | MENAT
Regional Performance| MENAT Quarter Movement (%) Q3 2021 Q2 2021 Q3 2020 q-o-q y-o-y Total Revenue (AED "000") 205,554 198,043 184,542 4% 11% Express (incl SnS) 58,878 62,292 53,265 -5% 11% Domestic 54,034 48,005 39,977 13% 35% Freight Forwarding 56,999 56,125 58,713 2% -3% Logistics 32,276 29,702 3
Slide 22: Regional Performance | Europe
Regional Performance| Europe Quarter Movement (%) Q3 2021 Q2 2021 Q3 2020 q-o-q y-o-y Total Revenue (AED "000") 185,855 205,073 156,910 -9% 18% Express (incl SnS) 90,877 107,388 79,153 -15% 15% Domestic 12,606 12,924 12,656 -2% 0% Freight Forwarding 71,714 72,458 52,154 -1% 38% Logistics 10,093 11,7
Slide 23: Regional Performance | Americas
Regional Performance| Americas Quarter Movement (%) Q3 2021 Q2 2021 Q3 2020 q-o-q y-o-y Total Revenue (AED "000") 66,062 74,786 49,751 -12% 33% Express (incl SnS) 57,630 70,132 45,686 -18% 26% Freight Forwarding 7,791 4,408 3,350 77% 133% Other 642 246 715 161% -10% Gross Profit (AED "000") 10,911 7
Slide 24: Regional Performance | Oceana
Regional Performance| Oceana Quarter Movement (%) Q3 2021 Q2 2021 Q3 2020 q-o-q y-o-y Total Revenue (AED "000") 165,697 143,987 145,727 15% 14% Express (incl SnS) 2,087 1,748 1,595 19% 31% Domestic 137,383 119,373 119,699 15% 15% Other 26,227 22,866 24,433 15% 7% Gross Profit (AED "000") 42,903 41,2
Slide 25: Regional Performance | South Asia
Regional Performance| South Asia Quarter Movement (%) Q3 2021 Q2 2021 Q3 2020 q-o-q y-o-y Total Revenue (AED "000") 135,594 127,259 100,315 7% 35% Express (incl SnS) 108,978 101,480 75,979 7% 43% Domestic 2,933 2,798 2,876 5% 2% Freight Forwarding 19,165 18,133 16,720 6% 15% Logistics 4,365 4,764 4,
Slide 26: Regional Performance | North Asia
Regional Performance| North Asia Quarter Movement (%) Q3 2021 Q2 2021 Q3 2020 q-o-q y-o-y Total Revenue (AED "000") 108,904 180,041 223,806 -40% -51% Express (incl SnS) 106,664 178,136 220,677 -40% -52% Domestic 6 10 6 -38% 2% Freight Forwarding 2,186 1,816 3,025 20% -28% Logistics 48 79 98 -39% -51
Slide 27: Regional Performance | Sub-Saharan and South Africa
Regional Performance| Sub-Saharan and South Africa Quarter Movement (%) Q3 2021 Q2 2021 Q3 2020 q-o-q y-o-y Total Revenue 84,678 82,923 71,877 2% 18% Express (incl SnS) 19,216 18,435 16,230 4% 18% Domestic 40,907 40,485 35,374 1% 16% Freight Forwarding 17,328 17,015 14,545 2% 19% Logistics 2,824 2,7
Slide 28: Regional Performance | Others
Regional Performance| Others Quarter Movement (%) Q3 2021 Q2 2021 Q3 2020 q-o-q y-o-y Total Revenue 7,517 8,156 11,566 -8% -35% Express (incl SnS) 7,048 7,611 11,022 -7% -36% Other 469 546 544 -14% -14% Gross Profit (AED "000") 33,806 42,500 48,406 -20% -30% Gross Profit Margin 450% 521% 419% -71% 3
Slide 29: Appendix 2: Financial statements highlights
Appendix 2: Financial statements highlights Q3 2021 Financial Results Highlights | Corporate Update and Outlook | Regional Performance |Financial statements highlights | Stated Strategic Priorities
Slide 30: Income Statement (AEDm)
Financial & Performance Highlights |Q3 2021 Group Highlights Income Statement (AEDm) Quarter Movement (%) Q3 2021 Q2 2021 Q3 2020 q-o-q y-o-y Revenue 1,461 1,571 1,467 -7% 0% Cost of Services (1,105) (1,182) (1,058) 7% -4% Gross Profit 356 389 408 -8% -13% Overheads (290) (296) (273) 2% -6% Profit f
Slide 31: Balance Sheet Statement (AEDm)
Financial & Performance Highlights |Q3 2021 Group Highlights Income Statement (AEDm) Movement 30 Sep 2021 31 Dec 2020 Actual in % Cash and cash equivalents 1,151 1,255 -104 -8% Receivables (net) 1,076 1,094 -18 -2% Other current assets 353 272 81 30% Total current assets 2,580 2,621 -40 -2% Assets h
Slide 32: Appendix 3: Stated Strategic Priorities
Appendix 3: Stated Strategic Priorities Q3 2021 Financial Results Highlights | Corporate Update and Outlook | Regional Performance |Financial statements highlights | Stated Strategic Priorities
Slide 33: Strategic Priorities | Aramex Express
Strategic Priorities | Aramex Express Cross Border Express • Continues to be the main growth driver for the business. • We continue to see consumer preference for international shopping and we expect this trend to continue. • We aim to significantly increase the flow from major hubs in the US, UK, A
Slide 34: Strategic Priorities | Aramex Logistics: Warehousing and Freight Forwarding
Strategic Priorities | Aramex Logistics: Warehousing and Freight Forwarding Warehouse infrastructure • Identified significant potential in the logistics sector which we intend to pursue aggressively. • Invest in specialized warehouses to cater for high potential verticals such as cold chain, pharma,
Slide 35: Strategy | Strategic Drivers
Strategy | Strategic Drivers Operational Excellence Service Management & Excellence Data Driven Processes Automation & Digitization Operations Capacity & Peak Planning Operational Agility & Scalability Customer Journey Customer Experience Strategic Last Mile Transformation Drivers Market & Customer
Slide 36: Digital | Enabling Growth and High Performance
Digital | Enabling Growth and High Performance Customer Journey Digital Products Core Modernization & Cloud Migration Digitize the end to end customer led by modern application development Re-imagine core landscape and business engagement experience product teams. Teams are lean, multi logic to prom
Slide 37: Digital | Artificial Intelligence and Machine Learning
Digital | Artificial Intelligence and Machine Learning Mission: Empower operations and business at Aramex to take data-driven decisions at scale to meet Aramex Goals. Data Science Address Route Consumer Capacity Data Business prediction Optimization Intelligence Planning enablement intelligence prog
Slide 38: Strategic Priorities | Long-Term Focus Areas
Strategic Priorities | Long-Term Focus Areas Focus Area Management Remains Focused on Long Term Growth Drivers Vertical Diversification Intensify growth and diversify into high potential verticals including Pharma, FMCG, Retail, O&G, Automotive, E-commerce Infrastructure Investments Hub, facility, t
Slide 39: Investor Relations Contacts
Investor Relations Contacts Arun Singh InvestorRelations@aramex.com Chief Financial Officer Investor Tel + 971 4 211 8464 Relations Dubai - UAE aramex.com/investors Anca Cighi Investor Relations Officer Page 39
Slide 40: Thank You
THANK YOU Q3 2021 Financial Results Highlights | Corporate Update and Outlook | Regional Performance |Financial statements highlights | Stated Strategic Priorities