Aramex Pjsc · DFM:ARMX
Aramex Pjsc — Aramex — Q4 2015 Earnings Presentation
38 slides from Aramex Pjsc's earnings presentation, Mar 14, 2016
Slide 1: Investor Presentation: 4Q and FY 2015 Results
14 MAR 2016 Investor Presentation 4Q and FY 2015 Results Hussein Hachem, CEO Bashar Obeid, CFO Management Update 4Q 2015 Results FY 2015 Results Long-term Performance Outlook & Guidance Page 1
Slide 2: Disclaimer
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
14 MAR 2016 Management Update Hussein Hachem, CEO Bashar Obeid, CFO Management Update 4Q 2015 Results FY 2015 Results Long-term Performance Outlook & Guidance 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 Aramex Today Key Messages 13,830 Employees Management Focus 350+ offices in 60 Countries Listed on Dubai Financial Market Financial Performance AED 4.3 billion market cap Value Creation Core Beliefs FY 2015 Management
Slide 5: Aramex is well positioned for future growth
Key Messages Aramex is well positioned for future growth Leader in Transport and 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 towards a leaner, more
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: Aramex continues to deliver solid performance
Financial Performance Aramex continues to deliver solid performance FY 2015 Results → Performance across key indicators 3,321 3,643 3,837 2,571 3,072 5% growth overall, including 4.4% REVENUES → adverse impact from FX 2011 2012 2013 2014 2015 364 425 461 470 306 EBITDA → Year on year improvement 201
Slide 8: Aramex shareholders consistently participate in growth
Value Creation Aramex shareholders consistently participate in growth Market Capitalization (AED m) → 5,000 4,539 4,627 4,451 4,500 Dividend Payout (per share) Ratio 4,000 3,500 3,045 2,928 2012 AED 0.100 52.2% 3,000 2,635 2,500 2,090 2013 AED 0.115 60.6% 2,000 1,500 2014 AED 0.140 62.8% 1,000 679 5
Slide 9: 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 10: Three key components drive our operational roadmap
Operational Roadmap Three key components drive our operational roadmap Growth Innovation Transformation Organic Growth In-house R&D People Platform Infrastructure M&A M&A Culture FY 2015 Management Presentation Page 10 14 March 2015
Slide 11: M&A: Focus is on eCommerce and last mile delivery
Growth M&A: Focus is on eCommerce and last mile delivery Aramex → Fastway Ltd – last mile delivery 2020 → 21 Jan 2016 100% acquisition at AED 293.65 million; cash + debt 1,500 courier franchisees across Australia, New Zealand, Ireland, Northern Ireland → Strong last mile delivery network and South A
Slide 12: M&A: Focus is on eCommerce and last mile delivery
Growth M&A: Focus is on eCommerce and last mile delivery Aramex → Startup Portfolio 2020 → In FY 2015 6 small acquisitions of eCommerce and last mile delivery networks → Geographies 2 x India, 1x Canada, 1x Brazil, 1x Saudi Arabia, 1 x Dubai → Focus areas Parcel delivery, Food delivery, Laundry deli
Slide 13: 4Q 2015 Results
14 MAR 2016 4Q 2015 Results Hussein Hachem, CEO Bashar Obeid, CFO Management Update 4Q 2015 Results FY 2015 Results Long-term Performance Outlook & Guidance Page 13
Slide 14: Q4 2015 Financial Highlights
Financial & Performance Highlights Q4 2015 Financial Highlights Income Statement (AED m) → Quarter Movement (%) 4Q 15 3Q 15 4Q 14 q-o-q y-o-y Revenue 1,003.3 937.5 956.8 7.0% 4.9% Cost of services (434.9) (409.9) (428.6) -6.1% -1.5% Gross profit 568.4 527.5 528.1 7.7% 7.6% Overheads (497.0) (437.8)
Slide 15: Q4 2015 Financial Highlights
Financial & Performance Highlights Q4 2015 Financial Highlights → Revenues (AED m) CoR (AED m) Management Comments 1,003.3 428.6 409.9 434.9 956.8 937.5 5% Revenues increase mainly driven by double-digit growth in Express business (14.5% y-o-y); CoR remained stable (+1.5%) Q4 2014 Q3 2015 Q4 2015 Q4
Slide 16: Incentive plan aligns management and shareholder interests
Management Incentivization Incentive plan aligns management and shareholder interests Short-term incentivization → Long-term incentivization → Cash Settlement → Senior Executives Senior Executives Senior Executives 37 million Variable Fixed Variable phantom strike price 50% grant 50% granted Compens
Slide 17: Q4 2015 Financial Highlights
Financial & Performance Highlights Q4 2015 Financial Highlights Income Statement Financial Ratios (AED m) → Quarter Movement (%) 4Q 15 3Q 15 4Q 14 q-o-q y-o-y EPS (AED) 0.039 0.051 0.061 -23% -36% Gross profit margin (%) 57% 56% 55% 0% 1% Net profit margin (%) 6.7% 8.4% 10.2% -1.7% -3.5% EBITDA marg
Slide 18: 2015 Results
14 MAR 2016 2015 Results Hussein Hachem, CEO Bashar Obeid, CFO Management Update 4Q 2015 Results FY 2015 Results Long-term Performance Outlook & Guidance Page 18
Slide 19: Aramex continues to deliver solid revenue growth
Financial & Performance Highlights Aramex continues to deliver solid revenue growth Revenues (AED m) → CAGR 11.6% 4,500 Revenue generation 4,000 3,837 3,643 Despite market volatility, low oil price and 3,500 3,321 regional instability, very solid revenue growth 3,072 of 5.3% for 2015 3,000 2,571 2,5
Slide 20: Strong underlying result across the business
Financial & Performance Highlights Strong underlying result across the business EBITDA Margin % EBITDA before special items (AED m) → CAGR 13.4% 600 EBITDA before special items: 516 Aramex generated strong underlying result 500 461 across the business 425 400 364 306 300 275 200 100 2010 2011 2012 2
Slide 21: Aramex maintains performance across key indicators
Financial & Performance Highlights Aramex maintains performance across key indicators EBITDA margin before special items (%) → Net Profit Margin (%) → Return on Equity (%) → 16.0% 12.0% 16.0% 14.7% 14.4% 10.4% 14.0% 13.5% 14.0% 13.3% 12.4% 12.8% 12.7% 10.0% 9.4% 9.5% 9.5% 11.9% 11.9% 8.8% 9.0% 12.1%
Slide 22: Growth momentum across geographies in 2015
Financial & Performance Highlights Growth momentum across geographies in 2015 Revenues by Geography (AED m) → 47.8 3,836.8 145.4 43.9 -43.5 3,643.2 North America 3% Europe Asia and 14% Others 11% FY 2015 Middle East & Africa 72% FY 2014 Middle East & Europe North America Asia and FY 2015 Africa Othe
Slide 23: Growth momentum in core business segments
Financial & Performance Highlights Growth momentum in core business segments Revenues by segment (AED m) → 56.7 3,836.8 7.8 10.7 159.7 -41.3 3,643.2 Domestic Freight 21% Forwarding 31% Logistics FY 2015 6% Other 6% Express 36% FY 2014 International Domestic Freight Logistics Other FY 2015 Express Ex
Slide 24: Aramex balance sheet remains strong and liquid
Financial & Performance Highlights Aramex balance sheet remains strong and liquid 2015 Highlights → Total Assets (AED m) → Asset Movement Y-o-Y (AED m) → Total balance sheet grew by 7.4% Cash Receivables Other Assets 3,445 Total assets increased by AED 238 m 173 12 3,445 3,207 3,207 87 45 -50 Cash u
Slide 25: Aramex increased debt but maintains low leverage
Financial & Performance Highlights Aramex increased debt but maintains low leverage 2015 Highlights → Total Liabilities (AED m) → Total Debt Breakdown (AED m) → Total liabilities are up AED 131 m Other Liabilities Total Debt Shareholder's Equity Increase mainly a result of increased long 3,445 Long
Slide 26: Long-term Performance
14 MAR 2016 Long-term Performance Hussein Hachem, CEO Bashar Obeid, CFO Management Update 4Q 2015 Results FY 2015 Results Long-term Performance Outlook & Guidance Page 26
Slide 27: Aramex has a track record of delivering operational excellence
Financial & Performance Highlights Aramex has a track record of delivering operational excellence Aramex 2010-2015 (Indexed) → 200 190 We delivered a consistently strong 180 performance since 2010 170 160 2010-2015 CAGR 150 Revenues 11.6% 140 Cost of Revenues 10.4% 130 EBITDA: 11.3% 120 EBITDA befor
Slide 28: Aramex shareholders rewarded by long term performance
Financial & Performance Highlights Aramex shareholders rewarded by long term performance Performance (Jan 2010-Dec 2015) → Total 47.8% -9.42% 12.2% 55.6% 6.59% 6.23% Return 3.50 Share Price Change: 118.6% 3.00 Annualized return: 13.9% 2.50 Total Return 2.00 (dividends reinvested): 180.4% 1.50 Annual
Slide 29: Components of Aramex's growth story
Financial & Performance Highlights Components of Aramex’s growth story Contribution by Business (AED m) → 2010-2015 4,000 102 65 3,837 Growth story since 2010 480 3,500 279 698 CAGR Express 15.0% 3,000 2,500 2,212 CAGR Freight Forwarding 5.4% 2,000 1,500 CAGR Domestic 19.6% 1,000 CAGR Logistics 14.7
Slide 30: Express business is outgrowing freight forwarding
Financial & Performance Highlights Express business is outgrowing freight forwarding Y-o-Y Total Segmental Revenues (%) → Revenue 16% 19% 8% 10% 5% Growth Evolution of revenue mix since 2010 points 100% 12.1% 11.4% 11.1% 11.7% 11.4% 11.3% to Express business outgrowing other 90% businesses; this is
Slide 31: Defending and developing our market position in growth markets
Financial & Performance Highlights Defending and developing our market position in growth markets → Contribution by Geography (AED m) 2010-2015 4,000 224.0 3,836.8 Growth story since 2010 136.7 64.0 1,200.1 3,500 CAGR Middle East 12.1% 3,000 2,500 2,212.0 CAGR Europe 5.9% 2,000 1,500 CAGR North Amer
Slide 32: Aramex balance sheet Evolution
Financial & Performance Highlights Aramex balance sheet Evolution Debt / Equity (%) Total Asset (AED m) → 3,445 3,500 50% 3,207 Aramex consistently grows its balance sheet 2,986 45% 3,000 2,715 40% 2,493 We maintain a prudent approach towards 2,500 2,286 35% managing our debt 30% 2,000 25% Debt*/ Eq
Slide 33: Outlook & Guidance
14 MAR 2016 Outlook & Guidance Hussein Hachem, CEO Bashar Obeid, CFO Management Update 4Q 2015 Results FY 2015 Results Long-term Performance Outlook & Guidance Page 33
Slide 34: 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 35: Management Ambition: Guidance
Outlook & Guidance Management Ambition: Guidance 2015 Actual 2016 Target (AED m) → Express 13% AED 1,387 m Double-digit growth → Freight Forwarding 3.3% AED 1,203 m Slight decrease Domestic 7.5% AED 811 m Double-digit growth Logistics 3.9% AED 205 m Slight increase Other 4.9% AED 229 m Slight increa
Slide 36: Long Term Ambition Level – Projected Roadmap to 2020
Outlook & Guidance Long Term Ambition Level – Projected Roadmap to 2020 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - 2010 2011 2012 2013 2014 2015 2016E 2017E 2018E 2019E 2020E Revenues EBITDA FY 2015 Management Presentation Page 36 14 March 2015
Slide 37: Investor Relations Contacts
Aramex Investor Relations Contacts Hussein Hachem Bashar Obeid Mohammad Al Qassem CEO CFO Investor Relations Download Aramex App: Investor Relations: investors@aramex.com Tel +971 4 2118464 Dubai – UAE www.aramex.com/investors FY 2015 Management Presentation Page 37 14 March 2015
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