Aramex Pjsc · DFM:ARMX
Aramex Pjsc — Aramex — Q4 2022 Earnings Presentation
29 slides from Aramex Pjsc's earnings presentation, Mar 16, 2023
Slide 1: Investor Presentation Q4 & FY 2022 Results
INVESTOR PRESENTATION Q4 & FY 2022 RESULTS
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, fut
Slide 3: Table of contents
Disclaimer | Table of contents 1. Aramex at a Glance 2. Key Highlights of Year 2022 3. FY & Q4 2022 Product Breakdown 4. FY & Q4 2022 Group Financial Results Page 3
Slide 4: Aramex Overview: Global Provider of Logistics and Transportation Solutions
Aramex Overview | Aramex is a Global Provider of comprehensive Logistics and Transportation Solutions 16,000+ 65+ +600 USD 1.61 B USD 1.40 B Employees Countries Offices Revenues 2022 Market Cap on 30 December 2022 International Express Freight Forwarding With Aramex International Express, sending ti
Slide 5: Aramex Global Footprint
Regions | Aramex Global Footprint Eu Czech Republic Ireland Netherlands United Kingdom NORTH America MENAT United States of America Canada North Asia China Algeria Libya Hong Kong Egypt Morocco Georgia Iran Palestine Sudan GCC Bahrain Iraq Tunisia Kuwait Jordan Turkey Oman Lebanon Qatar Saudi Arabia
Slide 6: Key investment highlights
Aramex Overview | Key investment highlights Product Competitive Growth diversification advantage prospects A leading transportation player, with Our end-to-end service offering - Well -positioned to capture domestic and cross border expertise, across courier express, freight, growth at a higher rate
Slide 7: In the Middle East of It All: An Aramex Documentary
IN THE MIDDLE EAST OF IT ALL AN ARAMEX DOCUMENTARY | 40 YEARS OF OPERATIONS Click here to watch the video.
Slide 8: FY & Q4 2022 Key Highlights
FY & Q4 2022 Key Highlights
Slide 9: Key highlights 2022
Business Highlights | Key highlights 2022 1. Stabilisation of GP Margins for the Express and Domestic products and significant improvement in GP margins for the Freight Forwarding and Logistics products, delivered a stable Group GP Margin 2. Continued focus on revenue quality and diversification 3.
Slide 10: Product Breakdown
Product Breakdown
Slide 11: International Express volumes
Financial & Performance Highlights | International Express International Express Volumes (in million of shipments) Geographic contributions to int’l express volumes in Q4 2022 -3.5 -2.5 -4% 25.7 3.7 6.1 0.3 0.1 5.8 22.2 0.0 -0.1 0.0 -0.5 0.0 0.0 -0.2 6.1 5.3 5.9 5.8 5.1 1.2 Q4 Q1 Q2 Q3 Q4 FY FY FY F
Slide 12: International Express quarter and FY financials
Financial & Performance Highlights | International Express Quarter and FY Financials (in USD thousands) International Express Margins GP% Q4 2022 Q4 2021 Change Revenue 165,427 183,302 (10%) Total Direct Cost 112,604 133,055 (15%) 40 40 Gross Profit 52,823 50,247 5% 27% 32% 32% 31% 32% 31% 32% GP% 3
Slide 13: Domestic Courier volumes
Financial & Performance Highlights | Domestic Courier Quarterly and FY Domestic Volumes (in million of shipments) Geographic contributions to domestic volumes in Q4 2022 -8.2 108.2 100.1 -10% -8.5 29.4 -0.9 0.0 -0.2 0.0 0.0 0.0 -2.0 26.5 -3.0 51.5 43.0 29.4 26.5 25.0 24.1 24.5 Q4 Q1 Q2 Q3 Q4 FY FY F
Slide 14: Domestic Courier quarter and FY financials
Financial & Performance Highlights | Domestic Courier Quarter and FY Financials (in USD thousands) Domestic Courier Margins GP% Q4 2022 Q4 2021 Change Revenue* 104,079 115,438 (10%) 25% 28% 24% Total Direct Cost 77,506 92,305 (16%) 30 26% 25 23% 22% Gross Profit 26,573 23,133 15% 25 20% 20 20 GP% 26
Slide 15: Courier Services quarter financials
Financial & Performance Highlights | Courier Services (consolidated Domestic and International Express) Quarter Financials (in USD thousands) Courier Margins Q4 2022 Q4 2021 Change GP% Revenue 269,507 298,740 (10%) EBITDA% 28% 29% 30% 29% Total Direct Cost 190,110 225,361 (16%) 30 25% Gross Profit 7
Slide 16: Courier Services FY financials
Financial & Performance Highlights | Courier Services (consolidated Domestic and International Express) FY Financials (in USD thousands) Courier Margins FY 2022 FY 2021 Change GP% Revenue 1,021,097 1,162,590 (12%) EBITDA% Total Direct Cost 725,497 835,289 (13%) 30 28% 29% Gross Profit 295,600 327,30
Slide 17: Freight Forwarding quarter financials
Financial & Performance Highlights | Freight Forwarding Quarter Financials (in USD thousands) Freight Margins and Volumes* Q4 2022 Q4 2021 Change GP% Revenue 114,715 106,376 8% 13% 13% 14% 15% EBITDA% 15 Total Direct Cost 97,844 94,156 4% 11% Gross Profit 16,871 12,220 38% 10 6% 6% 7% 6% GP% 15% 11%
Slide 18: Freight Forwarding FY financials
Financial & Performance Highlights | Freight Forwarding FY Financials (in USD thousands) Freight Margins and Volumes* FY 2022 FY 2021 Change GP% Revenue 458,633 360,930 27% 14% EBITDA% 15 12% Total Direct Cost 395,273 319,032 24% Gross Profit 63,360 41,898 51% 10 6% GP% 14% 12% 5 3% 0 EBIT 19,568 3,
Slide 19: Logistics quarter financials
Financial & Performance Highlights | Logistics Quarter Financials (in USD thousands) Logistics Margins GP% Q4 2022 Q4 2021 Change EBITDA% Revenue 30,213 30,773 (2%) Total Direct Cost 24,561 28,271 (13%) 25% 30 26% 26% Gross Profit* 5,652 2,502 126% 25 22% GP*% 19% 8% 17% 19% 20 24% 15% 15 12% EBIT*
Slide 20: Logistics FY financials
Financial & Performance Highlights | Logistics FY Financials (in USD thousands) Logistics Margins GP% FY 2022 FY 2021 Change EBITDA% Revenue 121,248 118,406 2% Total Direct Cost 100,214 105,390 (5%) 25 24% Gross Profit* 21,034 13,016 62% 19% 20 17% GP*% 17% 11% 15 11% EBIT* 4,754 (1,648) 388% 10 EBI
Slide 21: Group Financial Results
aqramex Group Financial Results
Slide 22: Revenues by Segment (USD m)
Financial & Performance Highlights | Product Contribution to Revenue Revenues by Segment (USD m) Y-o-Y Growth -10% -10% 8% -2% 14% 7% 1% 7% 1% -5% 439 -18 418 -11 8 -1 0 26% 42% 25% 40% Q4 2021 Q4 2022 24% 27% Express Domestic Other* Freight Forwarding Logistics Q4 2021 Express Domestic Freight Logi
Slide 23: Revenues by Geography (USD m)
Financial & Performance Highlights | Strong performance in GCC markets; 40% of total revenues Revenues by Geography (USD m) Group Revenues – Geographic Contribution 12% 9% -5% 7% 439 10 -1 0 22 -32 10% 36% 3% 9 -15 -13 418 40% 0 10% Q4 2021 Q4 2022 10% 5% 4% 5% 10% 13% 12% 13% GCC America Q4 2021 GC
Slide 24: Regional Breakdown | Q4 2022
Regional Breakdown | Q4 2022 Regions (in USD millions) GCC MENAT Europe America Rev & Ctrb 165,189 40% Rev & Ctrb 52,977 13% Rev & Ctrb 53,172 13% Rev & Ctrb 41,280 10% Rev Grth 8,693 6% Rev Grth 9,783 23% Rev Grth 84 0% Rev Grth 22,048 115% GP 35,848 17% GP 15,030 152% GP 7,413 (22%) GP 12,924 283%
Slide 25: Group Highlights Q4 & FY 2022
Financial & Performance Highlights | Group Highlights Q4 & FY 2022 Revenue (USD m) Gross Profit (USD m) Net Profit (USD m) Reported *Normalised, excl MyUS Normalised, excl MyUS and and extraordinary items Reported extraordinary items -5% 439 +16% QUARTER 418 +6% 104 89 92 97 -27% +42% 13 12 9 9 20%
Slide 26: Robust balance sheet, conservative leverage, and strong cash position
Financial & Performance Highlights | Robust balance sheet, conservative leverage, and strong cash position Balance Sheet Highlights (in USD thousands) Movement 31 Dec 2021 31 Dec 2022 Change Change % Current assets 621,514 594,401 (27,113) -4% Assets held for sale 2,900 1,789 (1,111) -38% Non-curren
Slide 27: Group Free Cash Flow
Financial & Performance Highlights | Group Free Cash Flow FCF Evolution • Free Cash Flow in 2022 includes the consideration paid for the acquisition of MyUS • Normalised Free Cash Flow was $86,452m in 2022, representing 5.42% of sales and indicating the start of a good recovery compared to 2021 • No
Slide 28: Q4 2022 and FY 2022 Group Highlights: Financial Ratios
Financial & Performance Highlights | Q4 2022 and FY 2022 Group Highlights Financial Ratios Q4 2022 Q4 2021 FY 2022 FY 2021 Gross Profit Margin 24.8% 20.3% 24.0% 23.6% Normalised Gross Profit Margin 24.3% 20.9% 24.0% 23.7% EBIT Margin 3.6% 3.6% 4.1% 5.0% Normalised EBIT Margin 4.8% 2.7% 4.8% 4.4% EBI
Slide 29: Investor Relations Contacts
Investor Relations Contacts Nicolas Sibuet InvestorRelations@aramex.com Chief Financial Officer Investor Tel + 971 4 211 8464 Relations Dubai - UAE aramex.com/investors Anca Cighi Investor Relations Officer Page 29