Slide 1: Investors Presentation FY & Q4 Results
Investors Presentation FY & Q4 Results Management Update | Q4 2019 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 | Q4 2019 Results | Long Term Performance | Management Outlook | Investor Presentation
Slide 4: Aramex is a Global Provider of Logistics and Transportation Solutions
Aramex Overview Aramex is a Global Provider of Logistics and Transportation Solutions 15,623 Employees | 600+ Offices in 65+ Countries | AED 5.2 Billion Revenues | AED 5.2 Billion Market Cap Domestic International Logistics Freight E-Commerce Express Express & Other We understand that With Aramex Wh
Slide 5: Aramex Shareholders were Rewarded by Good TSR
Shareholder Returns Aramex Shareholders were Rewarded by Good TSR Closing Price Q4 2019 Market Capitalization (AEDm) AED 3.57 7,000 6,000 5,959 6,296 6,281 5,227 5,000 4,451 4,539 4,627 Total Return Metrics 4,000 3,045 2,928 3,000 2,635 -13.91% 2,000 2,090 679 YTD 2019 share price 1,000 92 239 incre
Slide 6: Management Delivers on overall 2019 Revenue Targets
Outlook & Guidance Management Delivers on overall 2019 Revenue Targets 2018 Actual 2019 Target 2019 Actual Express ↑ 13% AED 2,273 m Single-digit growth ↑ 3% AED 2,349 m Freight Forwarding ↑ 1% AED 1,164 m Single-digit growth ↓ 2% AED 1,138 m Domestic ↑ 3% AED 1,051 m Single-digit growth ↑ 5% AED 1,
Slide 7: Management Focused on Four Key Areas to Drive 2019 Results
Key Messages Management Focused on Four Key Areas to Drive 2019 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 8: 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 9: Management Remains Focused on Three Key Priorities
Management Priorities Management Remains Focused on Three Key Priorities Expand Footprint Leverage Infrastructure Develop & define our stronghold in Grow eCommerce business GCC & Levant Expand Aramex presence in Asia Integrate supply chain management Pacific and Africa solutions and value added serv
Slide 10: 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 stronghold in Continue to deliver operational Grow eCommerce business GCC & Levant excellence Accelerate organic expansion Expand Aramex presence in A
Slide 11: Q4 2019 Results
Q4 2019 Results Management Update | Q4 2019 Results | Long Term Performance | Management Outlook | Investor Presentation
Slide 12: Strong Top and Bottom Line Performance
Financial Performance Strong Top and Bottom Line Performance Q4 2019 Results Performance across key indicators (AED) 1,425,402 1,233,737 1,278,602 1,269,940 1,463,259 Revenues 3% growth compared to Q4 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 272,035 216,666 243,256 233,667 289,578 EBITDA 6% year
Slide 13: Q4 2019 Group Highlights
Financial & Performance Q4 2019 Group Highlights Highlights Management Comments Revenue (AED m) Cost of Revenues (AED m) 1,463 -692 1,425 -642 Revenues growth impacted by pricing -597 pressure on core business, prompted by 1,270 shifting ecommerce dynamics. Q4 2018 Q3 2019 Q4 2019 Q4 2018 Q3 2019 Q4
Slide 14: Q4 2019 Financial Highlights: Income Statement
Financial Performance & Q4 2019 Financial Highlights Highlights Income Statement (AEDm) Quarter Movement (%) Q4 2019 Q3 2019 Q4 2018 q-o-q y-o-y Revenue 1,463 1,270 1,425 15% 3% Cost of Revenue (692) (597) (642) -16% -8% Gross Profit 771 673 783 14% -2% Overheads (573) (520) (543) -10% -6% Profit fo
Slide 15: International Express and Domestic delivered 68% of revenues
Financial Performance & International Express and Domestic delivered 68% of revenues Highlights Revenues by Segment (AED m) Y-o-Y Growth -4% 0.2% 20% 15% -1% Other Logistics 5% -28 13 -1 1,463 1,425 1 54 7% Domestic 22% Express Q4 2019 46% Freight Forwarding 20% Q4 2018 Express Freight Domestic Logi
Slide 16: 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 6% 4% 57% -9% Asia and Others 48 6 24 1,463 1,500 1,425 -40 26% Middle East 1,250 North Q4 2019 & Africa America 59% 5% 1,000 Europe 10% 750 500 250 - Q4 2
Slide 17: Q4 2019 Financial Highlights: Financial Ratios
Financial Performance & Q4 2019 Financial Highlights Highlights Financial Ratios (AEDm) Movement (%) Q4 2019 Q3 2019 Q4 2018 q-o-q y-o-y EPS (AED) 0.104 0.078 0.105 33.3% -1% Gross Profit Margin % 52.68% 53.02% 54.94% -0.34% -2.27% Net Profit Margin % 10.42% 8.96% 10.80% 1.46% -0.38% EBITDA Margin %
Slide 18: 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 854 4 -14 5,743 31 Dec 2019 31 Dec 2018 Actual Change % 4,704 163 56 -80 55 5,000 Current assets 2,469 2,330 139 6% 4,000 Non-cu
Slide 19: Composition of Assets
Financial Performance & Composition of Assets Highlights Financial Ratios (AEDm) Movement 31 Dec 2019 31 Dec 2018 Actual in % Cash and cash equivalents 1,000 837 163 19.5% Receivables (net) 1,196 1,141 56 4.9% Other current assets 272 353 -81 -22.7% Total current assets 2,469 2,330 139 6.0% Property
Slide 20: Long Term Performance
Long Term Performance Management Update | Q4 2019 Results | Long Term Performance | Management Outlook | Investor Presentation
Slide 21: 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% Express contribution to total revenues 11% 12% 13% 11% 12% 12% continues to grow, outgrowing all other businesses. 80% 25% 23% 22% 2
Slide 22: 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 Revenues 8.5% EBITDA 16.0% 2014 2015 2016 2017 2018 2019 CoR Revenue EBITDA | Inves
Slide 23: Aramex Continues to Deliver Solid Top Line Performance
Long Term Performance Aramex Continues to Deliver Solid Top Line Performance Revenues (AEDm) 6,000 CAGR 5,246 5,086 • Revenue growth of 3% in 2019 7.6% 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 24: 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 25: 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 (%) 9.8% 9.7% 20.4% 10.0% 19.0% 18.7% 9.5% 9.2% 20.0% 19.0% 18.8% 9.0% 8.7% 18.0% 8.3% 17.4% 8.0% 17.0% 14.7% 15.0% 14.4% 7.0% 16.0% 15.8% 6.0% 15.0% 5.0% 14.2% 10.0
Slide 26: 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 -106 354 4,500 CAGR Express 13.9% 4,000 3,643 1,122 3,500 3,000 CAGR Freight Forwarding -1.8% 2,500 2,000 CAGR Domestic 8.0% 1,500 1,000 CAGR
Slide 27: 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 932 5,246 Growth story since 2014 5,000 136 566 - 32 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 28: 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 sheet. 40% 5,000 4,704 33.9% 35% Driven mainly by acquisitions, Aramex will 4,404 continue to increase leverage. 3,974 27.0% 30% 4,000 3,445 24.3
Slide 29: Aramex 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 0.165 per 0.163 70.5% share to be discussed for approval by 0.160 shareholders at AGM on 7 April 2020 64.4% 54.9% * 5
Slide 30: Aramex Shareholders are Rewarded by Long Term Performance
Long Term Performance Aramex Shareholders are Rewarded by Long Term Performance Performance ( Jan 2014 - Dec 2019) Total Return 53.90% 8.60% 6.50% 33.50% 8.90% 3.77% Share price change: 16.67% 6 Annualized return: 42.00% 5 4 Total return 17.00% (dividends reinvested): 3 2 1 0 2014 2015 2016 2017 201
Slide 31: Management Outlook
Management Outlook Management Update | Q4 2019 Results | Long Term Performance | Management Outlook | Investor Presentation
Slide 32: 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 33: Management Ambition: Guidance
Outlook & Guidance Management Ambition: Guidance 2018 Actual 2019 Actual 2020 Targets Express ↑ 13% AED 2,273 m ↑ 3% AED 2,349 m Single-digit growth Freight Forwarding ↑ 1% AED 1,164 m ↓ 2% AED 1,138 m Single-digit growth Domestic ↑ 3% AED 1,051 m ↑ 5% AED 1,108 m Double-digit growth Logistics ↑ 16%
Slide 34: 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 35: Aramex Investor Relations Contacts
Aramex Investor Relations Contacts Bashar Obeid Nadia Abu Sarah Iyad Kamal Mohammad Al Qassem CEO CFO COO Investor Relations Investor Relations: InvestorRelations@aramex.com Tel +971 4 211 8464 P.O. Box Dubai – UAE www.aramex.com/investors | Investor Presentation