Slide 1: Investor Presentation - 2Q 2017 Results
31 July 2017 Investor Presentation - 2Q 2017 Results - Disclaimer Management Update 2Q 2017 Results Long term performance 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 July 2017 Management Update Disclaimer Management Update 2Q 2017 Results Long term performance Management Outlook Contacts Page 3
Slide 4: Aramex is a global provider of logistics and transportation solutions
Aramex Overview Aramex is a global provider of logistics and transportation solutions 18,000 employees 567 offices in 69 Countries AED 4.3 billion revenues AED 7.6 billion market cap Business Units Domestic International Freight Logistics & eCommerce Express Express Other At a glance Aramex Domestic
Slide 5: Aramex shareholders were rewarded by strong TSR
Shareholder Returns Aramex shareholders were rewarded by strong TSR Closing Price 2Q 2017 Market Capitalization (AEDm) 8,000 7,584 AED 5.18 7,000 5,959 6,000 4,451 4,539 4,627 5,000 Total Return Metrics: 4,000 3,045 2,928 2,635 3,000 +27% 2,090 YTD 2017 share price increase 2,000 and Total Sharehold
Slide 6: Management expects to deliver 2017 revenue targets
Outlook & Guidance Management expects to deliver 2017 revenue targets 2016 Actual 2017 Target 1H 2017 Actual Express 22% AED 1,687 m Double-digit growth 19% AED 939 m → → ✓ Freight Forwarding 6% AED 1,131 m Single-digit decrease 3% AED 567 m → ✓ → Domestic ✓ 35% AED 981 m Single-digit growth → 0% AE
Slide 7: Management focused on five key areas to drive 2017 results
Key Messages Management focused on five key areas to drive 2017 results Focus Areas Management remains focused on long-term growth drivers eCommerce → Continues to be the main growth driver of Aramex express and logistics businesses Asset-light model → Proves our business model can be successful thr
Slide 8: Delivering the best of both worlds to offer customers maximum flexibility
Key Messages Delivering the best of both worlds to offer customers maximum flexibility Postal Strengths Courier Strengths Hybrid • Delivers to every address in the world Courier • Tracking and notification technology • Most respected network by all nations Postal • Ability to pay duties and taxes at
Slide 9: Management remains focused on three key priorities
Management Priorities Management remains focused on three key priorities Expand Footprint Develop and defend our stronghold in GCC & Levant Expand Aramex presence in Asia Pacific and Africa Globalize the Aramex brand in emerging markets Investor Presentation Page 9 31 July 2017
Slide 10: Management remains focused on three key priorities
Management Priorities Management remains focused on three key priorities Expand Footprint Leverage Infrastructure Develop and defend our stronghold Grow e-Commerce business in GCC & Levant Expand Aramex presence in Integrate supply chain management Asia Pacific and Africa solutions and value added s
Slide 11: Management remains focused on three key priorities
Management Priorities Management remains focused on three key priorities Expand Footprint Leverage Infrastructure Organic Growth Develop and defend our stronghold Grow e-Commerce business Continue to deliver operational excellence in GCC & Levant Expand Aramex presence in Integrate supply chain mana
Slide 12: 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 13: We are continuing to build out the Aramex ecosystem
Aramex Ecosystem We are continuing to build out the Aramex ecosystem Delivery Options eCommerce (3rd party) Logistics • Courier delivery • Parcel Lockers • Postal delivery • Crowdsourced-Shippers Sellers Consumers eCommerce (proprietary) Pickup-Options Platforms • Courier • Access Points • Postal Of
Slide 14: 2Q 2017 Results
31 July 2017 2Q 2017 Results Disclaimer Management Update 2Q 2017 Results Long term performance Management Outlook Contacts Page 14
Slide 15: Underlying performance remains strong – impacted by special items and FX
Financial Performance Underlying performance remains strong – impacted by special items and FX 2Q 2017 Results → Performance across key indicators (AED) 4% growth compared to 2Q 16; 8% 1,104,986 1,050,377 1,158,455 1,105,932 1,147,638 Revenues → growth excluding exchange rate impact 2Q 16 3Q 16 4Q 1
Slide 16: Impact of FX and special items
Financial Performance Impact of FX and special items Revenues → EBITDA → Net Profit → +4% -14% -23% +8% +12% +24% 1,300 +15% 176 126 84 1,189 1,148 16 151 20 1,200 104 1,105 -42 135 97 -42 84 -7 1,100 1,000 -42 900 800 700 2Q 2016 Y-O-Y Growth 2Q 2017 FX Impact 2Q 2017 2Q 2016 Special Items 2Q 2016
Slide 17: 2Q 2017 Group Highlights
Financial & Performance Highlights 2Q 2017 Group Highlights Management Comments → Revenues (AED m) CoR (AED m) 1,148 1,105 1,106 -527 • Revenue growth in Q2 2017 was driven by Asia, -497 -494 the U.S and Africa. Revenues in other regions were affected by currency fluctuations, especially the Egyptia
Slide 18: 2Q 2017 Financial Highlights
Financial & Performance Highlights 2Q 2017 Financial Highlights Income Statement (AEDm) → Quarter Movement (%) 2Q 17 1Q 17 2Q 16 q-o-q y-o-y Revenue* 1,148 1,106 1,105 4% 4% Cost of Revenues (527) (494) (497) -7% -6% Gross profit 620 612 608 1% 2% Overheads (497) (496) (500) 0% 1% Profit for the per
Slide 19: Domestic and international express delivered 63% of revenues
Financial & Performance Highlights Domestic and international express delivered 63% of revenues Revenues by segment (AED m) → Y-o-Y Growth 18% -4% -5% -5% -4% 73 1,148 Other -12 -12 Logistics 6% 1,105 -3 -3 6% Express 42% Domestic 21% 2Q 2017 Freight Forwarding 25% 2Q 2016 Express Freight Domestic L
Slide 20: 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 → Geographic Contribution (%) Asia and 1,105 76 1,148 Others 5 Middle East & 24% -34 -3 Africa 60% North America 2Q 2017 3% Europe 13% Geographic Per
Slide 21: 2Q 2017 Financial Highlights
Financial & Performance Highlights 2Q 2017 Financial Highlights Income Statement Financial Ratios (AEDm) → Quarter Movement 2Q 17 1Q 17 2Q 16 q-o-q y-o-y EPS (AED) 0.066 0.063 0.086 5% -23% EPS before special items* (AED) 0.066 0.072 0.057 -8% 15% Gross profit margin (%) 54.1% 55.3% 55.0% -1.2% -0.9
Slide 22: Balance sheet remains strong and liquid
Financial & Performance Highlights Balance sheet remains strong and liquid Balance Sheet Highlights → Asset Movement Y-o-Y (AED m) → Movement Current Assets Non-Current Assets 30 June 2017 31 Dec 2016 Actual Change % 119 43 11 0 26 4,078 3,974 Current assets 1,722 1,655 67 4% -95 Non-current assets
Slide 23: Composition of assets
Financial & Performance Highlights Composition of assets Income Statement Financial Ratios (AEDm) → Movement 30 June2017 31 Dec 2016 Actual in % Cash and cash equivalents 606 701 -95 -14% Receivables (net) 874 754 119 16% Other current assets 242 199 43 21% Total current assets 1,722 1,655 67 4% Pro
Slide 24: Long-term Performance
31 July 2017 Long-term Performance Disclaimer Management Update 2Q 2017 Results Long term performance Management Outlook Contacts Page 24
Slide 25: Express business continues to drive growth
Financial & Performance Highlights Express business continues to drive growth Y-o-Y Total Segmental Revenues (%) → Revenue Growth 8% 10% 3% 16% Express contribution to total revenues 100% continues to grow, outgrowing all other 11% 12% 11% 12% 13% 11% businesses 80% 26% 25% 38% 37% 34% 32% The key d
Slide 26: Aramex maintains a track record of delivering operational excellence
Long Term Performance Aramex maintains a track record of delivering operational excellence Aramex 2012-1H 2017 (Annualized)→ 180 170 We delivered a consistently strong performance 160 since 2012 150 2012-2016 CAGR 140 Revenues 9.0% 130 Cost of Revenues 7.8% 120 EBITDA: 14.2% EBITDA before special it
Slide 27: Aramex continues to deliver solid top line performance
Long Term Performance Aramex continues to deliver solid top line performance Revenues (AED m) → 5,000 CAGR 9.0% 4,343 4,500 Revenue generation 4,000 3,643 3,755 • Strong revenue growth of 16% in 2016 3,500 3,321 reflects additional income generated 3,072 primarily in international cross-border 3,000
Slide 28: Strong underlying results right across the business
Long Term Performance Strong underlying results right across the business CAGR EBITDA before special items (AED m) → 12.2% 700 584 EBITDA before special items: 600 Aramex generated strong underlying result 511 500 465 across the business 431 400 368 306 300 200 100 0 2012 2013 2014 2015 2016 1H 2017
Slide 29: Aramex generates consistent performance across key KPIs
Long Term Performance Aramex generates consistent performance across key KPIs EBITDA margin before special items (%) → Net Profit Margin (%) → Return on Equity (%) → 16.0% 12.0% 20.0% 18.8% 13.6% 13.5% 13.6% 18.0% 14.0% 9.8% 13.0% 12.8% 10.0% 12.0% 16.0% 14.7% 8.7% 8.4% 14.4% 12.0% 8.4% 8.3% 7.9% 13
Slide 30: 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) → 2012-2016 5,000 77 4,500 126 4,343 388 Growth story since 2012 718 4,000 3,500 -38 3,072 CAGR Express 14.9% 3,000 2,500 CAGR Freight Forwarding -0.8% 2,000 1,500 CAGR Domestic 13.4% 1,000 500 C
Slide 31: 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) → 2012-2016 5,000 4,500 588 4,343 Growth story since 2012 4,000 52 569 63 3,500 3,072 CAGR Middle East 5.8% 3,000 2,500 CAGR Europe 3.0% 2,000 1,500 CAGR North America 15.5% 1,000 5
Slide 32: Aramex balance sheet evolution
Long Term Performance Aramex balance sheet evolution Debt / Equity (%) Total Asset (AED m) → 4,500 50% 3,974 4,078 Aramex has consistently grown its balance 4,000 45% sheet. 3,445 40% 3,500 3,207 2,986 35% 3,000 2,715 30.1% Driven mainly by acquisitions, Aramex will 27.7% 30% continue to increase le
Slide 33: Aramex management paid a dividend of AED 0.16 for 2016
Value Creation Aramex management paid a dividend of AED 0.16 for 2016 Dividends → Dividend Payout (AED / share) Dividend Payout Ratio (%) 0.160 Dividend proposal of AED 0.160 per share 0.150 0.140 approved by shareholders at AGM on 19 Feb 2017 70.5% 0.115 64.4% 60.0% 60.6% Gross dividend yield: 3.9%
Slide 34: Aramex shareholders are rewarded by long term performance
Long Term Performance Aramex shareholders are rewarded by long term performance Total Performance (Jan 2012-June 2017) → 13.9% 53.9% 8.6% 6.5% 33.5% 27.3% Return 6.00 Share Price Change: 187.8% 5.00 Annualized return: 21.2% 4.00 Total Return 3.00 (dividends reinvested): 246.63% 2.00 Annualized Total
Slide 35: Management Outlook
31 July 2017 Management Outlook Disclaimer Management Update 2Q 2017 Results Long term performance Management Outlook Contacts Page 35
Slide 36: 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 str
Slide 37: Management Ambition: Guidance
Outlook & Guidance Management Ambition: Guidance 2016 Targets 2016 Actual 2017 Targets Express Double-digit growth 22% AED 1,687 m Double-digit growth → Freight Forwarding Slight decrease 6% AED 1,131 m Single-digit decrease → Domestic Double-digit growth 35% AED 981 m Single-digit growth → Logistic
Slide 38: Long Term Ambition Level – Projected Roadmap to 2020
Outlook & Guidance Long Term Ambition Level – Projected Roadmap to 2020 4,343 3,643 3,755 3,321 3,072 2,254 465 465 626 368 431 293 2012 2013 2014 2015 2016 1H 2017 2017E 2018E 2019E 2020E Revenues EBITDA Investor Presentation Page 38 31 July 2017
Slide 39: Investor Relations Contacts
Aramex Investor Relations Contacts Hussein Hachem Bashar Obeid Mohammad Al Qassem CEO CFO Investor Relations Investor Relations: InvestorRelations@aramex.com Tel +971 4 211 8464 P.O. Box Dubai – UAE www.aramex.com/investors Investor Presentation Page 39 31 July 2017
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