Aramex Pjsc · DFM:ARMX
Aramex Pjsc — Aramex — Q3 2016 Earnings Presentation
25 slides from Aramex Pjsc's earnings presentation, Oct 31, 2016
Slide 1: Investor Presentation 3Q 2016 Results
31 OCT 2016 Investor Presentation 3Q 2016 Results Disclaimer Management Update 3Q 2016 Results Management Outlook Contacts 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
31 OCT 2016 Management Update Disclaimer Management Update 3Q 2016 Results Management Outlook Contacts 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 Introduction to Aramex 1. Key Messages 13,800+ employees 2. Management Focus 350+ offices in 60 Countries 3. Financial Performance 4. Value Creation AED 5.7 billion market cap 5. Our Core Beliefs Investor Presentation
Slide 5: Aramex is integrating digital platforms to give the business greater speed
Key Messages Aramex is integrating digital platforms to give the business greater speed Leader in 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 towar
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 Accelerate organic expansion, building on in GCC & Levant create new business opportunities strength and value
Slide 7: Strong top line growth in 3Q 2016 – bottom line offset by one-offs
Financial Performance Strong top line growth in 3Q 2016 – bottom line offset by one-offs 3Q Results → Performance across key indicators (AED) 917,248 981,901 1,029,340 1,104,986 1,050,377 REVENUES → 15 % growth compared to 3Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 149,298 116,903 91,726 87,081 70,233 EBIT
Slide 8: Aramex shareholders consistently participate in growth
Value Creation Aramex shareholders consistently participate in growth Market Capitalization (AEDm) Market Capitalization (AED m) → 7,000 Total Return Metrics: 6,000 5,769 +24.7% 5,000 4,627 YTD Share Price 4,451 4,539 4,000 +29.4% 3,045 2,928 Total Return 3,000 2,635 (Dividend reinvested) 2,090 2,00
Slide 9: Aramex paid a significant dividend for 2015
Value Creation Aramex paid a significant dividend 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 dividend yield: ~4% 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 Shipping is changing → dynamics apply to all playe
Slide 11: 3Q 2016 Results
30 OCT 2016 3Q 2016 Results Disclaimer Management Update 3Q 2016 Results Management Outlook Contacts Page 11
Slide 12: 3Q 2016 Group Highlights
Financial & Performance Highlights 3Q 2016 Group Highlights Management Comments → Revenues (AED m) CoR (AED m) -497 -473 1,105 1,050 -398 917 Revenue performance in the third quarter was driven by growth across most geographies, with Asia-Pacific being a major contributor to growth. 3Q 15 2Q 16 3Q 1
Slide 13: 3Q 2016 Financial Highlights
Financial & Performance Highlights 3Q 2016 Financial Highlights Income Statement (AEDm) → Quarter Movement (%) 3Q 16 2Q 16 3Q 15 q-o-q y-o-y Revenue 1,050.4 1,105.0 917.2 -5% 15% Cost of Revenues (472.8) (497.1) (398.1) 5% -19% Gross profit 577.5 607.8 519.1 -5% 11% Overheads (487.2) (499.7) (431.5)
Slide 14: Q3 2016 growth in core segments in line with management agenda
Financial & Performance Highlights Q3 2016 growth in core segments in line with management agenda Revenues by segment (AED m) → Y-o-Y Growth 20% -8% 37% 25% 19% 1,050 Other 13 11 66 7% 67 -24 Logistics 917 6% Express 38% Domestic 23% 3Q 2016 Freight Forwarding 3Q 2015 Express Freight Domestic Logist
Slide 15: Strong performance in Express business during 3Q 2016
Financial & Performance Highlights Strong performance in Express business during 3Q 2016 Y-o-Y Total Segmental Revenues (%) → Revenue Growth 16% 19% 8% 10% 3% Express contribution to total revenues 100% continues to grow, outgrowing other 12% 11% 11% 12% 11% 12% 13% businesses; 80% 34% 32% 26% 42% 4
Slide 16: Geographic performance – strongest growth recorded again in Asia
Financial & Performance Highlights Geographic performance – strongest growth recorded again in Asia Revenue Bridge y-o-y (AED m) Revenues by Geography → 145 1,050 Geographic Contribution (%) Asia and 917 1 Others 4 18% Middle -17 East & North America 3Q 2016 Africa 3% 66% Europe 13% Geographic Perfo
Slide 17: 3Q 2016 Financial Highlights
Financial & Performance Highlights 3Q 2016 Financial Highlights Income Statement Financial Ratios (AEDm) → Quarter Movement (%) 3Q 16 2Q 16 3Q 15 q-o-q y-o-y EPS (AED) 0.049 0.086 0.051 -43% -2% Gross profit margin (%) 55.0% 55.0% 56.6% 0.0% -1.6% Net profit margin (%) 6.9% 11.4% 8.1% -4.5% -1.2% EB
Slide 18: Balance sheet remains strong and liquid despite lower cash
Financial & Performance Highlights Balance sheet remains strong and liquid despite lower cash Balance Sheet Highlights → Asset Movement Y-o-Y (AED m) → Current Assets Non-Current Assets Movement 142 3,905 30 Sep 2016 31 Dec 2015 Actual Change % 170 166 3,445 55 33 Current assets 1,583 1,602 (19) -1%
Slide 19: 3Q 2016 Financial Highlights
Financial & Performance Highlights 3Q 2016 Financial Highlights Income Statement Financial Ratios (AEDm) → Movement 30 Sept 2016 31 Dec 2015 Actual in % Cash and cash equivalents 601.1 707.2 -106.1 -15.0% Receivables (net) 763.8 731.2 32.6 4.5% Other current assets 218.5 163.2 55.3 33.9% Total curre
Slide 20: Management Outlook
30 OCT 2016 Management Outlook Disclaimer Management Update 3Q 2016 Results Management Outlook Contacts Page 20
Slide 21: 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 22: Management Ambition: Guidance
Outlook & Guidance Management Ambition: Guidance 2015 Actual YTD 2016 2016 Target (AED m) Express 13% AED 1,387 m AED 1,189 m Double-digit growth → Freight Forwarding 3.3% AED 1,203 m AED 858 m Slight decrease → Domestic 3.4% AED 729 m AED 734 m Double-digit growth Logistics → 3.9% AED 206 m Slight
Slide 23: Long Term Ambition Level – Projected Roadmap to 2020
Outlook & Guidance Long Term Ambition Level – Projected Roadmap to 2020 3,643 3,755 3,321 3,185 3,072 2,571 2,212 364 425 461 464 435 275 306 2010 2011 2012 2013 2014 2015 YTD 2016 2016E 2017E 2018E 2019E 2020E Revenues EBITDA Investor Presentation Page 23 30 October 2016
Slide 24: Investor Relations Contacts
Aramex Investor Relations Contacts Hussein Hachem Bashar Obeid Mohammad Al Qassem CEO CFO Investor Relations Investor Relations: investors@aramex.com Tel +971 4 2118464 P.O. Box Dubai – UAE www.aramex.com/investors Investor Presentation Page 24 30 October 2016
Slide 25: Page 25
Page 25