Aramex Pjsc · DFM:ARMX
Aramex Pjsc — Aramex — Q2 2020 Earnings Presentation
33 slides from Aramex Pjsc's earnings presentation, 2020
Slide 1: Investors Presentation Q2 2020 Results
Investors Presentation Q2 2020 Results Management Update |Q2 2020 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 |Q2 2020 Results | Long Term Performance | Management Outlook
Slide 4: Aramex Overview
Aramex Overview Aramex is a Global Provider of Logistics and Transportation Solutions 15,623 | 600+ in 65+ | AED 2.5 | AED 5.1 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 Q2 2020 Market Capitalization (AEDm) AED 3.45 7,000 6,000 5,959 6,296 6,281 5,227 5,051 5,000 4,451 4,539 4,627 Total Return Metrics 4,000 3,045 2,928 3,000 2,635 -0.12% 2,000 2,090 679 YTD 2020 share price 1,000 92 239
Slide 6: Management Focused on Four Key Areas to Drive 2020 Results
Key Messages Management Focused on Four Key Areas to Drive 2020 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 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 8: Management Remains Focused on Three Key Priorities
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 Remains Focused on Three Key Priorities
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: Q2 2020 Results
Q2 2020 Results Management Update |Q2 2020 Results | Long Term Performance | Management Outlook
Slide 11: Strong Top and Bottom Line Performance
Financial Performance Strong Top and Bottom Line Performance Q2 2020 Results Performance across key indicators (AED) 1,278,602 1,269,940 1,463,259 1,195,771 1,331,846 Revenues 4% growth compared to Q2 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 243,256 233,667 289,578 222,841 197,493 EBITDA -8% yea
Slide 12: Q2 2020 Group Highlights
Financial & Performance Q2 2020 Group Highlights Highlights Management Comments Revenue (AED m) Cost of Services (AED m) 1,332 -688 Growth of both, Revenues and Net Profit, 1,279 -601 -565 continued to be negatively impacted by the rise in unforeseen costs prompted by the global 1,196 onslaught of N
Slide 13: Q2 2020 Financial Highlights
Financial Performance & Q2 2020 Financial Highlights Highlights Income Statement (AEDm) Quarter Movement (%) Q2 2020 Q1 2020 Q2 2019 q-o-q y-o-y Revenue 1,332 1,196 1,279 11% 4% Cost of Services (688) (565) (601) -22% -14% Gross Profit 644 631 678 2% -5% Overheads (514) (528) (515) 3% 0% Profit for
Slide 14: International Express and Domestic delivered 69% of revenues
Financial Performance & International Express and Domestic delivered 69% of revenues Highlights Revenues by Segment (AED m) Y-o-Y Growth -1% -3% 31% 0% -17% Other Logistics 5% 6% 0 79 -12 1,332 1,279 -4 -9 Domestic Express 25% 44% Q2 2020 Freight Forwarding 20% Q2 2019 Express Freight Domestic Logis
Slide 15: 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 -2.5% 27% -25% 15% 1,500 Asia and 38 46 1,332 Others 1,279 -19 -11 27% 1,250 Middle East 1,000 North Q2 2020 & Africa America 57% 2% 750 Europe 13% 500 250
Slide 16: Q2 2020 Financial Highlights: Financial Ratios
Financial Performance & Q2 2020 Financial Highlights Highlights Financial Ratios (AEDm) Movement (%) Q2 2020 Q1 2020 Q2 2019 q-o-q y-o-y EPS (AED) 0.064 0.046 0.084 39% -24% Gross Profit Margin % 48.4% 52.7% 53.0% -4.4% -4.6% Net Profit Margin % 7.1% 5.6% 9.6% 1.4% -2.6% EBITDA Margin % 16.7% 16.5%
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 5,743 -43 5,704 30 Jun 2020 31 Dec 2019 Actual Change % 6,000 137 -113 -6 -11 0 -2 Current assets 2,487 2,469 18 1% 5,000 Non-cu
Slide 18: Composition of Assets
Financial Performance & Composition of Assets Highlights Financial Ratios (AEDm) Movement 30 Jun 2020 31 Dec 2019 Actual in % Cash and cash equivalents 1,137 1,000 137 14% Receivables (net) 1,084 1,196 -113 -9% Other current assets 266 272 -6 -2% Total current assets 2,487 2,469 18 0.7% Property, Pl
Slide 19: Long Term Performance
Long Term Performance Management Update |Q2 2020 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 3% 16% 9% 8% 3% 100% International and Domestic Express 11% 12% 13% 11% 12% 12% 12% contribution to total revenues continues to grow, outgrowing all othe
Slide 21: Aramex Maintains a Track Record of Delivering Operational Excellence
Long Term Performance Aramex Maintains a Track Record of Delivering Operational Excellence Aramex 2014 - 2019 (indexed) We delivered a consistently strong performance since 2014 2014 - 2019 CAGR Revenues 7.6% Cost of Services 8.5% EBITDA 16.0% 2014 2015 2016 2017 2018 2019 CoR Revenue EBITDA | Inves
Slide 22: Aramex Continues to Deliver Solid Top Line Performance
Long Term Performance Aramex Continues to Deliver Solid Top Line Performance Revenues (AEDm) 6,000 CAGR 7.6% 5,246 5,086 • Revenue growth of 3% in 2019 5,000 4,721 4,343 • Revenue growth reflects additional 4,000 3,643 3,755 income generated primarily in international cross border express business a
Slide 23: Strong Underlying Results Right Across the Business
Long Term Performance Strong Underlying Results Right Across the Business EBITDA Before Special Items (AED m) CAGR 16.0% EBITDA before special items: 1,200 Aramex generated strong underlying results across the business 983 1,000 806 800 669 586 ** 600 514 * 468 400 200 - 2014 2015 2016 2017 2018 201
Slide 24: 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 (%) 20.0% 10.0% 9.8% 9.7% 21.0% 9.5% 20.4% 9.2% 18.7% 8.7% 20.0% 19.0% 9.0% 8.3% 19.0% 18.8% 19.0% 18.0% 8.0% 18.0% 17.0% 7.0% 17.4% 17.0% 15.8% 16.0% 6.0% 16.0% 15.
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) 2014-2019 76 5,246 157 Growth story since 2014 5,000 1,122 354 -106 4,500 CAGR Express 13.9% 4,000 3,643 3,500 3,000 CAGR Freight Forwarding -1.8% 2,500 2,000 CAGR Domestic 8.0% 1,500 1,000 CAGR
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) 2014-2019 Growth story since 2014 932 5,246 5,000 -32 136 566 CAGR Middle East 4.0% 4,000 3,643 CAGR Europe -1.1% 3,000 CAGR North America 24.9% 2,000 CAGR Asia & Other 28.7% 1,000
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 45% 6,000 5,743 5,704 sheet. 40% 5,000 4,704 33.9% 33.1% 35% Driven mainly by acquisitions, Aramex will 4,404 continue to increase leverage. 3,974 30% 4,000 25.6
Slide 28: Management Proposes to Pay a Dividend of AED 0.165 for 2019
Value Creation Aramex Management Proposes to Pay a Dividend of AED 0.165 for 2019 Dividend Payout (AED/Share) Dividend Payout Ratio (%) Dividends 0.165 0.165 Dividend proposal of AED per 0.165 0.163 70.5% share was approved by the 0.160 shareholders at AGM on 22nd June 2020 64.4% 54.9% * 54.8% ** 0.
Slide 29: Aramex Shareholders are Rewarded by Long Term Performance
Long Term Performance Aramex Shareholders are Rewarded by Long Term Performance Performance ( Jan 2014 - Jun 2020 ) Total Return 8.60% 8.60% 6.50% 33.50% 8.90% 3.77% Share price change: 2.99% 6 5 Annualized return: 38.00% 4 Total return 13.00% (dividends reinvested): 3 2 1 0 2014 2015 2016 2017 2018
Slide 30: Management Outlook
Management Outlook Management Update |Q2 2020 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 T
Slide 32: Long Term Ambition Level – Projected Roadmap to 2022
Outlook & Guidance Long Term Ambition Level – Projected Roadmap to 2022 5,246 5,086 4,721 4,343 3,643 3,755 983 669 806 627 468 468 2014 2015 2016 2017 2018 2019 2020E 2021E 2022E Revenue EBITDA | Investor Presentation
Slide 33: Investor Relations Contacts
Aramex Investor Relations Contacts Bashar Obeid Nadia Abu Sarah Othman Aljeda Mohammad Al Qassem CEO CFO Acting COO Investor Relations Investor Relations: InvestorRelations@aramex.com Tel +971 4 211 8464 P.O. Box Dubai – UAE aramex.com/investors | Investor Presentation