Aramex Pjsc · DFM:ARMX
Aramex Pjsc — Aramex — Q3 2022 Earnings Presentation
33 slides from Aramex Pjsc's earnings presentation, Nov 10, 2022
Slide 1: Investor Presentation Q3 2022 Results
INVESTOR PRESENTATION Q3 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. Aramex documentary teaser marking 40 years of operations 3. Q3 2022 Financial Results Highlights 4. MyUS Acquisition 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+ AED 1.4 AED 5.6 Employees Countries Offices Billion Revenues Billion Market Cap at Q3 2022 at 30 Sep 2022 With Aramex International Express, sending time-sensitive documents or pack
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 trailer.
Slide 8: 40th anniversary celebration activities
Our boxes for the month of We rebranded 3 Oct was delivery vans to rebranded with our original the original branding in Aramex logo as Dubai, Amman part of the 40th & Egypt – When celebration. people spot the van they can take a picture and tag us to win prizes. We had a “Did you know” fact everyday
Slide 9: Q3 2022 Results Highlights
Q3 2022 Results Highlights
Slide 10: Business Highlights | Q3 2022
Business Highlights | Q3 2022 Domestic Courier International Express Freight and Logistics Technology infrastructure M&A activity Courier • GP Margin maintained stable at • GP Margin maintained at 31% in • 38% revenue growth in FF and • Sprinklr - as part of our • Currently engaged in multiple 28% i
Slide 11: Group Financial Results
Group Financial Results
Slide 12: International Express Volumes
Financial & Performance Highlights | International Express International Express Volumes (in million of shipments) Geographic contributions to int’l express volumes in Q3 2022 -1.2 -19% 6.3 6.1 5.4 6.3 5.9 4.9 5.3 -0.5 -0.8 5.1 -0.1 0.0 0.1 -0.1 -0.4 5.1 0.0 0.0 Q3 Q4 Q1 Q2 Q3 Q3 Q3 Q3 GCC* MENAT SS
Slide 13: International Express Quarter Financials
Financial & Performance Highlights | International Express Quarter Financials (in AED thousands) International Express Margins 35 31% 32% 32% 32% 32% 31% Q3 2022 Q3 2021 Change 27% 30 Revenue 496,500 608,877 (18%) 25 Total Direct Cost 342,798 414,055 (17%) 20 Gross Profit 153,702 194,822 (21%) 15 10
Slide 14: Domestic Courier Quarterly Volumes
Financial & Performance Highlights | Domestic Courier Quarterly Domestic Volumes (in million of shipments) Geographic contributions to domestic volumes in Q3 2022 -3.1 29.4 13.9 27.6 -11% 25.0 24.1 24.5 -3.4 10.6 27.6 0.5 -0.2 -0.1 0.0 0.0 0.0 24.5 -3.4 Q3 Q4 Q1 Q2 Q3 Q3 Q3 Q3 2021 GCC MENAT Africa
Slide 15: Domestic Courier Quarter Financials
Financial & Performance Highlights | Domestic Courier Quarter Financials (in AED thousands) Domestic Express Margins 30 28% 28% Q3 2022 Q3 2021 Change 23% 25% 25 23% 22% 20% Revenue* 416,535 460,775 (10%) 20 Total Direct Cost 300,465 333,462 (10%) 15 Gross Profit 116,070 127,313 (9%) 10 GP% 28% 28%
Slide 16: Courier Services Quarter Financials
Financial & Performance Highlights | Courier Services (consolidated Domestic and International Express) Quarter Financials (in AED thousands) Courier Margins Q3 2022 Q3 2021 Change Revenue 913,035 1,069,652 (15%) Total Direct Cost 643,263 747,513 (14%) 35 28% 30% 30% 29% 30% 28% Gross Profit 269,773
Slide 17: Freight Forwarding Quarter Financials
Financial & Performance Highlights | Freight Forwarding Quarter Financials (in AED thousands) Freight Volumes* Q3 2022 Q3 2021 Change Revenue 439,530 318,000 38% Total Direct Cost 378,656 279,789 35% Q3 2022 Q3 2021 Change Gross Profit 60,873 38,211 59% Land freight (FTL) 7,355 6,294 17% GP% 14% 12%
Slide 18: Logistics Quarter Financials
Financial & Performance Highlights | Logistics Quarter Financials (in AED thousands) Top Revenue generating sectors Q3 2022 Q3 2021 Change Revenue 110,475 108,445 2% Total Direct Cost 101,859 94,777 7% Gross Profit 8,616 13,668 -37% GP% 8% 13% Industrials FMCG Telecommunication Fashion Normalised Gr
Slide 19: Group Revenues by Segment
Financial & Performance Highlights | Group Revenues: Continued growth in Freight and Logistics Revenues by Segment (AED m) Y-o-Y Growth 38% -18% -10% 2% 6% 7% -3% 8% -2% -2% 35% 1,461 122 -112 1,426 42% -44 2 -2 32% 29% Q3 2021 Q3 2022 22% 31% Express Domestic Other* Freight Forwarding Logistics Q3
Slide 20: Group Revenues by Geography
Financial & Performance Highlights | Group Revenues – Geographic Contribution Revenues by Geography (AED m) Strong performance in GCC markets; 41% of total revenues 11% 9% -2% 9% 1,461 80 -12 2 -15 9 -53 1,426 9% -12 -34 -1 34% 4% 41% 7% Q3 2021 5% Q3 2022 5% 6% 6% 14% 12% 13% 14% GCC America Q3 202
Slide 21: Group Highlights
Financial & Performance Highlights | Group Highlights Revenue (AED m) Gross Profit (AED m) Management Commentary -2.4% -9.9% Q3 2022 Revenue declined 2.4% YoY to AED 1.42 billion, a deceleration compared to the decline reported in Q2 2022 of 3.5% YoY, attributed to lower Courier revenues and 1,461 1
Slide 22: Regional Breakdown | Q3 2022
Regional Breakdown | Q3 2022 Regions (in AED millions) GCC MENAT Europe South Asia REV & Ctrb 582 41% REV & Ctrb 1 93.7 1 4% REV & Ctrb 1 71 .3 1 2% REV & Ctrb 1 23.6 9% Rev GRTH 80.4 16% Rev GRTH (1 1 .9) -6.0% Rev GRTH -1 4.6 -8% Rev GRTH -1 1 .9 -9% GP 106.4 7% GP 51 .1 -1 8% GP 25.1 -22% GP 22.7
Slide 23: 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 AED thousands) Movement 31 Dec 2021 30 Sep 2022 Change Change % Current assets 2,282,572 2,001,594 (280,978) -12% Assets held for sale 10,650 7,992 (2,658) -25% Non
Slide 24: Q3 2022 and 9M 2022 Group Highlights Financial Ratios
Financial & Performance Highlights | Q3 2022 and 9M 2022 Group Highlights Financial Ratios (in AED millions) Change Q3 2022 Q3 2021 9M 2022 9M 2021 Q3’22 vs Q3’21 9M’22 vs 9M’22 Gross Profit Margin % 22.5% 24.4% 23.8% 24.8% -1.9% -1% EBIT % 3.6% 4.7% 4.3% 5.5% -1.1% -1.2% EBITDA% 9.9% 11.2% 10.6% 11
Slide 25: MyUS Acquisition
MyUs Acquisition \ S99 MyUScom aramex
Slide 26: Transaction rationale
Provides an attractive financial profile – a profitable business with superior cash conversion which provides an accretive financial profile improving the global ROIC. Transaction is fully financed with debt Considerably expands coverage of new destinations Transaction and complements Aramex’s posit
Slide 27: Long term E-commerce growth
Large Addressable Market Growing Global Retail E-Commerce Market (USD Tn) Long term E-commerce ~302m ~4.9bn $7.4 growth $6.8 US Internet Users Worldwide Intl. Internet Users $6.2 (~90% Penetration) $4.3 $4.9 $5.5 (~63% Penetration) fundamentals ~2% 2021 YoY Growth ~6% 2021 YoY Growth 2020A 2021A 202
Slide 28: MyUS at a glance
MyUs at a glance Provides a subscription-based service that allows global consumers to shop from US, UK and China-based websites USD 100+ m EBITDA margin ~180 k Provides package consolidation, Revenues in 2021 at 24% for 2021 Active B2C customers tracking and tax-free zip code globally as of 2021 se
Slide 29: Strong product offering and advanced tech capabilities
Strong product offering and advanced tech capabilities enable MyUS to serve a variety of customers Current Offerings Recently Launched B2C B2B C2C • Provides customers with virtual • Offers fulfilment service for • Leverages MyUS’s cross-border mailbox to enable cross-border white-label partners whi
Slide 30: MyUS has a diverse customer base
MyUS has a diverse customer base with a strong presence in many high growth markets ❖ Complements Aramex’s position NORTH AMERICA EUROPE ASIA for Middle East flows but also % of Total % of Total % of Total expands coverage to new 5% 11% 18% destinations. In common markets, the customer base is diffe
Slide 31: MyUS provides an attractive financial profile
Expected EBITDA Synergies – to be achieved MyUS contribution of MyUS [USD m] within 12-24 months provides an Synergies Selection of synergy categories – Non-exhaustive ~34 attractive ~30 Revenue synergies Expanding MyUS network ~25 financial EBITDA Provide customers at MyUS and SNS with superior pro
Slide 32: 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 32
Slide 33: Thank you
‘. % MyUS.com aramex unbox the possibilities delivery unlimited Thank you. November 2022