Aramex Pjsc · DFM:ARMX
Aramex Pjsc — Aramex — Non-Deal Roadshow (November 2024)
53 slides from Aramex Pjsc's roadshow presentation, Nov 21, 2024
Slide 1: Investor Presentation: Business Profile Update
Investor Presentation 2024 Business Profile Update
Slide 2: About Aramex
About Aramex 02 Strategic Update 9M 2024 Financial Results Historic Financial Highlights Appendix
Slide 3: Disclaimer
DISCLAIMER 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, future plans and strategies, projections, anticipated even
Slide 4: At a Glance
AT A GLANCE Aramex is A Global Provider of Comprehensive Logistics and Transportation Solutions 16,000+ 70 600+ USD 1.26bn USD 897M Employees Countries Offices Revenues 9M 2024 Market Cap on 30 September 2024 International Express Freight Forwarding With Aramex International Express, sending time-se
Slide 5: Purpose
Purpose Empower people to move the world Our Vision أ Deliver what our customers value most, everywhere, on time, every time! Our Mission Connect people & businesses, reliably & responsibly
Slide 6: Global Footprint
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 Iraq Palestine Sudan GCC Bahrain Jordan Tunisia Kuwait Lebanon Turkey Oman Qatar Saudi Arabia United Arab Emirates
Slide 7: Our Evolution
OUR EVOLUTION 1990 2006 2019 1982 Co-founded the Overseas Express Carriers. 1994 Acquired TwoWay in Ireland 2007 Developed the digital and business transformation framework. 2021 Launched a corporate university and Started offering Express, Domestic, and Operational Model Redesign with split of adop
Slide 8: Strategic Shareholders
STRATEGIC SHAREHOLDERS GeoPost – a strategic partner for Aramex Express Shareholder as of 20 October 2021 GeoPost is a holding company owned by Le Groupe La Poste. DPDgroup is the parcel delivery network of GeoPost, which posted sales of €14.7 billion in 2021. DPDgroup is the largest parcel delivery
Slide 9: Investment Highlights
INVESTMENT HIGHLIGHTS Product Competitive Growth prospects diversification advantage Aramex is a leading transportation player, Our end-to-end service offering - Well -positioned to capture with domestic and cross border expertise, across courier express, freight, growth at a higher rate than the as
Slide 10: Board Structure
BOARD STRUCTURE Aramex’s Board of Directors comprises of 9 non-executive independent members elected by the General Assembly. The following table demonstrates the structure of Aramex’s current Board, including its members’ status, date of accession to the Board, and their Board Committees’ membershi
Slide 11: Strategic Update
About Aramex 02 Strategic Update 9M 2024 Financial Results Historic Financial Highlights Appendix
Slide 12: Aramex Revenue Drivers
8% 1% Aramex Revenue Drivers Revenue by product 40% 26% Express FY 2023 Domestic Freight Forwarding Logistics 25% Other* The Aramex business today has a 9% Revenues lower concentration risk, with Revenue by by region region balanced revenues across products, 7% 3% customers and geographies to protec
Slide 13: Trade Lane Shifts
Trade Lane Shifts Growth of GCC and MENAT as ecommerce and trade hubs. Yesterday Tomorrow Dominance of US and Asia especially across ecommerce flows into the MENAT Growth driven by an expanding global reach from GCC and MENAT as well as servicing other potential markets with a focus on Africa Today
Slide 14: Industry trends: Nearshoring and Direct Injection
Industry trends: Nearshoring and Direct Injection As e-tailers and brands grow into consumer markets in the GCC and MENAT region, their supply chain requirements change. We are witnessing a shift from an international cross-border model to a more integrated regional model which aims to: Enhance supp
Slide 15: Shipment lifecycle
Shipment lifecycle These industry changes have redefined the way goods are being moved, stored, and fulfilled. We respond to these changes by providing a customizable and flexible end to end transportation solution across our products: express (international + domestic), contract logistics and freig
Slide 16: Product & Vertical Specialisation
Product & Vertical Specialisation We are investing in capabilities and sales specialism per product, to drive vertical specialization in high growth sectors. We have unified KPIs, with clear sales and profitability targets for each of our four products. International Domestic Logistics and Freight E
Slide 17: How we will win: Top strategic priorities
Top strategic priorities International Domestic Express Express •Focus on intra regional cross border in GCC •Market share play in core markets and MENAT, as well as key international trade • Continue investing in automation and into our home markets technology for operational efficiency, while •Inc
Slide 18: 2024 Financial priorities
Approximately 9% Stable Group GP Margin Develop Premium and Revenue growth in 2024. and SG&A structure, Deferred service unlocking further value offerings in bottom line. 2024 Financial priorities Debt repayment of USD Capex run rate at $43 million in 2024. 2% of revenues. Approximately 27% ETR. Pag
Slide 19: Delivering good: ESG performance
Engaged workforce • 80% participation in Pulse Employee Survey • 98% return to work rate after maternity leave • Active Learning & Development program, with internal and external courses Delivering Sustainable operations • Commitment to Carbon Neutrality by 2030 good: ESG • and Net Zero by 2050 Indu
Slide 20: Track Record in Reducing our Impact on the Environment
Case study Track Record in Reducing our Impact on the Environment As a logistics and shipping company, we have an impact on the environment around us. Therefore, we proactively take steps to measure, manage, and mitigate this impact, while also investing in solutions, awareness building, and knowhow
Slide 21: Pillars of achieving Carbon Neutral Targets by 2030
Case study Pillars of achieving Carbon Neutral Targets by 2030 Scope 1 Scope 2 Scope 3 Supply Chain Optimization and Sustainable Fleet and Operations Solar Installations- Renewable Energy Energy Efficiency Other Initiatives > Convert fleet to Low Emission and Electric > Upgrade and install new solar
Slide 22: Focus Areas
Product Aspirations Focus Areas Geographical Footprint Vertical Capabilities Solutions Development Operational Efficiency Tech Optimization Page 22
Slide 23: Automation example - Sydney
Case study Automation example - Sydney ▪ The largest automation system in the Aramex network featuring cutting edge technology ▪ Can handle 13,500 parcels per hour ▪ Can sort up to the route level with 350 couriers ▪ Includes 7 feeding lanes at 2 induction zones Page 23
Slide 24: Q3 & 9M 2024 Financial Results
About Aramex 02 Strategic Update Q3 & 9M 2024 Financial Results Historic Financial Highlights Appendix
Slide 25: Turnaround story: Focus on Improving Value Creation
Turnaround story: Focus on Improving Value Creation 9M 2024 Update +11% 10.2% 5.0% 2.1x $14m yoy -10bps +20bps -0.3x -61% yoy yoy yoy yoy Revenue EBITDA ROIC Net Debt to FCF Growth Margin EBITDA (incl. IFRS16)
Slide 26: Aramex Delivers Strong Q3 2024 Results
Aramex Delivers Strong Q3 2024 Results with Double-Digit Revenue Growth Across All Product Lines USD 434 mn USD 102 mn | 23% USD 19 mn | 4% USD 7 mn| 2% Revenue Gross Profit and Margin EBIT and Margin Net Profit and Margin ( 18% YoY) ( 11% YoY | 1.4pps) ( 52% YoY | 1.0 pps) ( 177% YoY | 1.
Slide 27: Product Contribution to Revenue and Gross Profit
Financial & Performance Highlights | Product Contribution to Revenue and Gross Profit Q3 2024 vs Q3 2023 (in USD million) Contribution to Group (in % of total) Revenues by Segment (USD m) 7% Y-o-Y 1% Growth 10% 27% 22% 13% 8% 35% REVENUE Express 28% Q3 2024 Domestic +18% Freight Forwarding 367 14 26
Slide 28: Group Highlights Q3 2024
Financial & Performance Highlights | Group Highlights Q3 2024 Revenue (USD 000) Gross Profit (USD 000) SG&A (USD 000) +18% 24.8% 23.4% • Aramex saw solid revenue contribution from 21.4% 19.6% all products with Group Revenue growing 433,577 18% year on year (YoY) in Q3 2024 attributed to volume growt
Slide 29: Regional Breakdown Q3 2024 vs Q3 2023
Regional Breakdown | Q3 2024 vs Q3 2023 Regions (in thousands USD) GCC MENAT Europe America Rev Ctrb to Group 41% Rev Ctrb to Group 14% Rev Ctrb to Group 10% Rev Ctrb to Group 8% Rev & Grth 177,200 21% Rev & Grth 60,546 33% Rev & Grth 42,873 (2%) Rev & Grth 35,829 (7%) GP & Grth 41,014 17% GP & Grth
Slide 30: Historic Financial Highlights
About Aramex Strategic Update 9M 2024 Financial Results Historic Financial Highlights Appendix
Slide 31: Financial Assessment
FINANCIAL ASSESSMENT Group P&L, 5-year overview, 2020-2024 [USD m] Comments Revenue Gross profit +11% 27.8% 23.6% 24.0% 25.1% 24.9% 24.1% -4% 0% +7% 1,500 1,652 1,614 1,550 1,135 1,261 418 390 388 389 283 303 2020 2021 2022 2023 9M 2023 9M 2024 2020 2021 2022 2023 9M 2023 9M 2024 EBITDA EBIT 13% 11%
Slide 32: International Express Product
INTERNATIONAL EXPRESS PRODUCT Volumes [million shipments] Revenues [USDm] GP Margins +4% +6% +2% +5% 40 34% 725 31% 32% 701 26 640 625 YEAR 24 25 23 619 612 30 21 22 546 17 459 16 20 10 0 2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 2022 2023 FY 2021 FY 2022 FY 2023 Volumes
Slide 33: Domestic Express Product
DOMESTIC EXPRESS PRODUCT Domestic Volumes Volume [million [million shipments] shipments] Domestic Revenues Volume [million shipments] [USDm] GP Margins +5% +5% 24% 25% 0% -5% 25 22% YEAR 108 438 20 97 100 100 408 389 371 80 302 15 72 67 73 267 278 286 10 5 0 FY 2021 FY 2022 FY 2023 2016 2017 2018 20
Slide 34: Freight Forwarding Product
FREIGHT FORWARDING PRODUCT Freight Forwarding Revenue by Year [USDm] Freight Forwarding Margins by Quarter and Year +4% Quarterly Full Year -11% 459 14% 15% 407 20 16% 16% 16% 15 12% 361 14% 14% 13% 308 315 317 310 295 15 12% 10 7% 7% 6% 6% 10 6% 5% 5% 4% 4% 5 3% 5 0 0 2016 2017 2018 2019 2020 2021
Slide 35: Logistics Product
LOGISTICS PRODUCT Logistics Revenue by Year [USD million] Domestic Logistics MarginsVolume [million shipments] (by year) +7% 25% 25% GP% 24% -5% 25 22% EBITDA% 19% 118 122 117 20 17% 102 15% YEAR 97 82 15 15% 11% 72 71 10% 10 (N) - indicates 5 normalized margins 0 2016 2017 2018 2019 2020 2021 2022
Slide 36: Appendix
About Aramex Strategic Update 9M 2024 Financial Results Historic Financial Highlights Appendix
Slide 37: Appendix: Aramex Stock
Appendix ARAMEX STOCK
Slide 38: ARMX Stock at a Glance
ARMX STOCK AT A GLANCE BLOOMBERG CODE: USD 1.0bn 49.7% FREE FLOAT ARMX.UH MARKET CAP REUTERS CODE: Listed on Dubai Financial on 31 March 2024 ARMX.DU Market (DFM) in 2005 FTSE Small Cap INDEX MSCI EM Small Cap INDEX INDEX INCLUSIONS International Integrated United Nations GRI Sustainability Reportin
Slide 39: 2022 Stock Profile Update
2022 STOCK PROFILE UPDATE FOL Developments • Based on authorization of the General Assembly on 21 April 2022, on Wednesday, 27th April 2022 the Board of Directors of Aramex PJSC (“Aramex”) (“the Company”) held a meeting by circulation and passed a resolution to amend Article (6) of the Company’s Art
Slide 40: Appendix: ESG Data
APPENDIX ESG Data
Slide 41: ESG Data
ESG Data Environmental data Unit of measure 2023 2022 2021 2020 Total Emissions tons (tCO2) 524,332 589,121 669,258 727,344 Scope 1 Emissions tons (tCO2) 55,314 63,268 64,414 59,334 Scope 2 Emissions tons (tCO2) 27,337 23,643 31,008 39,326 Scope 3 Emissions tons (tCO2) 441,682 502,210 573,836 628,68
Slide 42: ESG Data
ESG Data Environmental data Unit of measure 2023 2022 2021 2020 Gender Diversity, Management: % Senior Leadership (M-F) % 92 - 8 100 - 0 100 - 0 76 - 24 Middle Management (M-F) % 83 - 17 17 - 83 81 - 19 82 - 18 Others (M-F) % 73 - 27 72 - 28 75 - 25 75 - 25 Age distribution Employees <21 % 1 1 3 Emp
Slide 43: ESG Data
ESG Data Environmental data Unit of measure 2023 2022 2021 2020 Organizational Health Index (OHI) Aramex Pulse participants % 80 82 80.0 OHI score 75 74.5 Learning and Development Learning Hours Hours 101,988 114,221 57,753 60,439 Average Hours per Employee Hr/Employee 6.2 7.91 Average Courses per E
Slide 44: ESG Data: Certifications and Compliance
| 28 | A N N U A L R E P O R T 2 0 2 3 Environmental data Unit of measure 2023 2022 2021 2020 Management System Certifications ISO 9001 (Quality) - Number of Locations Sites Certified 39 35 27 ISO 45001 (Health & Safety) - Number of Sites Certified 47 39 15 Locations ISO 14001 (Environment) - Number
Slide 45: Appendix: Product offering
®, APPENDIX. * Product offering,
Slide 46: Express
Import Dangerous Import Drop & Ship International Express Goods Unlimited Returns EXPRESS Handling The International Express product, which includes Aramex’s Parcel Forwarding Business (“Shop & Ship and MyUS”), provides cross-border door-to-door shipping and delivery Priority Express Value Ecommerce
Slide 47: Domestic
Same Day Next Day Dedicated Leave-At- Door Click & Collect delivery delivery services Service DOMESTIC Domestic Express product provides nationwide door-to- Aramex Aramex ID Verification & Personalized Mobile door deliveries for parcels and packages, with options of Fleet SPOT Biometric based delive
Slide 48: Land Freight, Sea Freight, Air Freight
LAND FREIGHT SEA FREIGHT AIR FREIGHT Aramex has one of the largest and most advanced land freight Aramex provides comprehensive ocean freight forwarding services Aramex offers a global and cost-effective solution for all your air networks in the Middle East, United Kingdom and Ireland. backed by our
Slide 49: Cross Border Expertise
CROSS BORDER EXPERTISE CUSTOMS BROKERAGE & COMPLIANCE Comprehensive customs services for Global coverage - Dedicated Firsthand information in change in Air, Land and Sea Customs team regulations Aramex Own offices at major borders HSE Certified OGA Services (consulates, foreign affairs, various mini
Slide 50: Global Logistics Capabilities
Top Revenue generating sectors GLOBAL LOGISTICS CAPABILITIES O&G FMCG Telecommunication Fashion Ecommerce Electronics Established in 2002 Healthcare Warehousing IT Capabilities Total Warehouse Area + 800 thousand sqm • Serial number capturing (owned, leased, • Expiry date mgt managed) • RF scanner c
Slide 51: In the Middle East of It All
IN THE MIDDLE EAST OF IT ALL AN ARAMEX DOCUMENTARY | 40 YEARS OF OPERATIONS Click here to watch the documentary.
Slide 52: Case Study: Project Cargo
CASE STUDY PROJECT CARGO Click here to watch the video.
Slide 53: Contact Details
Contact Details Nicolas Sibuet Chief Financial Officer Anca Cighi Investor Relations Director InvestorRelations@aramex.com +971 4 5246 986