Slide 1: Investor Presentation - FY & 4Q 2017 Results
01 MAR 2018 Investor Presentation - FY & 4Q 2017 Results - Disclaimer Management Update 4Q 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
01 MAR 2018 Management Update Disclaimer Management Update 4Q 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 17,195 employees 604 offices in 71 Countries AED 4.7 billion revenues AED 6.3 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 good TSR in 2017
Shareholder Returns Aramex shareholders were rewarded by good TSR in 2017 Closing Price 4Q 2017 Market Capitalization (AEDm) 7,000 6,296 AED 4.3 5,959 6,000 5,000 4,451 4,539 4,627 Total Return Metrics: 4,000 3,045 2,928 3,000 2,635 2,090 +5.65% 2,000 2017 share price increase 679 1,000 92 239 0 +8.
Slide 6: Management delivers on overall 2017 revenue targets
Outlook & Guidance Management delivers on overall 2017 revenue targets 2016 Actual 2017 Target 2017 Actual Express 22% AED 1,687 m Double-digit growth 19% AED 2,007 m → ✓ → Freight Forwarding ✓ 6% AED 1,131 m Single-digit decrease 2% AED 1,157 m → → Domestic ✓ 35% AED 981 m Single-digit growth 4% AE
Slide 7: Management focused on four key areas to drive 2017 results
Key Messages Management focused on four 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 01 March 2018
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: 4Q 2017 Results
01 MAR 2018 4Q 2017 Results Disclaimer Management Update 4Q 2017 Results Long term performance Management Outlook Contacts Page 14
Slide 15: Strong top and bottom line performance
Financial Performance Strong top and bottom line performance 4Q 2017 Results → Performance across key indicators (AED) 1,158,455 1,105,932 1,147,638 1,143,628 1,324,188 Revenues → 14% growth compared to 4Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 190,129 236,827 142,106 150,788 134,526 EBITDA → 25% year on
Slide 16: 4Q 2017 Group Highlights
Financial & Performance Highlights 4Q 2017 Group Highlights Management Comments → Revenues (AED m) Cost of Revenues (AED m) -614 1,324 -531 -494 1,158 1,144 • Revenue growth in 4Q 2017 was driven by most geographies with Asia being a major contributor. • Cost of Revenues increased year-on-year in li
Slide 17: 4Q 2017 Financial Highlights
Financial & Performance Highlights 4Q 2017 Financial Highlights Income Statement (AEDm) → Quarter Movement (%) 4Q 17 3Q 17 4Q 16 q-o-q y-o-y Revenue 1,324 1,144 1,158 16% 14% Cost of Revenues (614) (531) (494) -16% -24% Gross profit 711 613 664 16% 7% Overheads (507) (504) (516) -1% 2% Profit for th
Slide 18: International Express and Domestic delivered 67% of revenues
Financial & Performance Highlights International Express and Domestic delivered 67% of revenues Revenues by segment (AED m) → Y-o-Y Growth 22% 11% 10% 2% -3% 25 2 1,324 31 110 -3 Other Logistics 5% 5% 1,158 Express Domestic 46% 21% 4Q 2017 Freight Forwarding 23% 4Q 2016 Express Freight Domestic Logi
Slide 19: 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 → 89 1,324 Geographic Contribution (%) 61 12 4 1,158 Asia and Others Middle East & 27% Africa 58% North America 4Q 2017 3% Europe 12% Geographic Perf
Slide 20: 4Q 2017 Financial Highlights
Financial & Performance Highlights 4Q 2017 Financial Highlights Income Statement Financial Ratios (AEDm) → Quarter Movement 4Q 17 3Q 17 4Q 16 q-o-q y-o-y EPS (AED) 0.113 0.056 0.090 102% 25% Gross profit margin (%) 53.7% 53.6% 57.3% 0.1% -3.7% Net profit margin (%) 12.5% 7.1% 11.4% 5.3% 1.1% EBITDA
Slide 21: 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 31 Dec 2017 31 Dec 2016 Actual Change % 71 25 22 4,404 37 192 4,029 26 Current assets 1,911 1,655 256 15% Non-current assets
Slide 22: Composition of assets
Financial & Performance Highlights Composition of assets Income Statement Financial Ratios (AEDm) → Movement 31 Dec 2017 31 Dec 2016 Actual in % Cash and cash equivalents 728 701 26 4% Receivables (net) 934 742 192 26% Other current assets 249 212 37 18% Total current assets 1,911 1,655 256 15% Prop
Slide 23: Long-term Performance
01 MAR 2018 Long-term Performance Disclaimer Management Update 4Q 2017 Results Long term performance Management Outlook Contacts Page 23
Slide 24: Evolution of Express business – outgrowing freight forwarding
Financial & Performance Highlights Evolution of Express business – outgrowing freight forwarding Y-o-Y Total Segmental Revenues (%) → Revenue Growth 8% 10% 3% 16% 9% Express contribution to total revenues 100% continues to grow, outgrowing all other 11% 12% 11% 12% 13% 11% businesses 80% 26% 25% 38%
Slide 25: Aramex maintains a track record of delivering operational excellence
Long Term Performance Aramex maintains a track record of delivering operational excellence Aramex 2012 - 2017 (Indexed) → 190 180 We delivered a consistently strong performance 170 since 2012 160 150 2012-2017 CAGR Revenues 9.0% 140 Cost of Revenues 8.9% 130 EBITDA: 12.5% 120 110 100 2012 2013 2014
Slide 26: 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 4,721 4,500 9.0% 4,343 Revenue generation • Revenue growth of 9% in 2017 despite 4,000 3,643 3,755 3,500 3,321 impact of exchange rate volatility. Excluding 3,072 exchange rate impacts, total r
Slide 27: Strong underlying results right across the business
Long Term Performance Strong underlying results right across the business CAGR EBITDA before special items (AED m) → 12.5% 700 664 EBITDA before special items: 600 584 Aramex generated strong underlying results 510 across the business 500 465 431 400 368 300 200 100 0 2012 2013 2014 2015 2016 2017 *
Slide 28: 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 (%) → 16.0% 12.0% 20.0% 18.8% 13.6% 13.4% 14.1% 18.0% 17.4% 14.0% 10.0% 9.8% 9.2% 13.0% 12.8% 8.7% 12.0% 8.4% 8.3% 16.0% 14.7% 14.4% 7.9% 12.0% 13.3% 14.0% 8.0%
Slide 29: 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) → 2012-2017 5,000 72 4,721 429 122 Growth story since 2012 4,500 1,038 4,000 -12 CAGR Express 15.7% 3,500 3,072 3,000 CAGR Freight Forwarding -0.2% 2,500 2,000 CAGR Domestic 11.5% 1,500 1,000 CAG
Slide 30: 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) → 2012-2017 5,000 899 4,721 Growth story since 2012 4,500 4,000 608 74 69 CAGR Middle East 4.9% 3,500 3,072 3,000 CAGR Europe 2.8% 2,500 2,000 CAGR North America 15.3% 1,500 1,000 C
Slide 31: Aramex balance sheet evolution
Long Term Performance Aramex balance sheet evolution Debt / Equity (%) Total Asset (AED m) → 5,000 50% Aramex has consistently grown its balance 4,404 4,500 45% sheet. 3,974 4,000 40% 3,445 3,500 3,207 35% Driven mainly by acquisitions, Aramex will 2,986 3,000 2,715 27.7% 30% continue to increase le
Slide 32: Aramex management proposes to pay a dividend of AED 0.163 for 2017
Value Creation Aramex management proposes to pay a dividend of AED 0.163 for 2017 Dividends → Dividend Payout (AED / share) Dividend Payout Ratio (%) 0.160 0.163 Dividend proposal of AED 0.163 per share to be 0.150 0.140 approved by shareholders at AGM on 8 April 2018. 70.5%* 0.115 64.4% 60.0% 60.6%
Slide 33: Aramex shareholders are rewarded by long term performance
Long Term Performance Aramex shareholders are rewarded by long term performance Total Performance (Jan 2012 - Dec 2017) → 13.9% 53.9% 8.6% 6.5% 33.5% 8.9% Return 6 Share Price Change: 138.89% 5 Annualized return: 15.6% 4 Total Return 3 (dividends reinvested): 196.44% 2 Annualized Total Return: (divi
Slide 34: Management Outlook
01 MAR 2018 Management Outlook Disclaimer Management Update 4Q 2017 Results Long term performance Management Outlook Contacts Page 34
Slide 35: 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 36: Management Ambition: Guidance
Outlook & Guidance Management Ambition: Guidance 2016 Actual 2017 Actual 2018 Targets Express 22% AED 1,687 m 19% AED 2,007 m Double-digit growth → → Freight Forwarding 6% AED 1,131 m 2% AED 1,157 m Single-digit growth → → Domestic 35% AED 981 m 4% AED 1,022 m Single-digit growth → → Logistics 29% A
Slide 37: Long Term Ambition Level – Projected Roadmap to 2020
Outlook & Guidance Long Term Ambition Level – Projected Roadmap to 2020 4,721 4,343 3,643 3,755 3,321 3,072 626 664 368 431 465 465 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E Revenues EBITDA Investor Presentation Page 37 01 March 2018
Slide 38: Investor Relations Contacts
Aramex Investor Relations Contacts Bashar Obeid Mohammad Al Qassem CEO Investor Relations Investor Relations: InvestorRelations@aramex.com Tel +971 4 211 8464 P.O. Box Dubai – UAE www.aramex.com/investors Investor Presentation Page 38 01 March 2018
Slide 39: Value creation for shareholders
Value creation for shareholders Page 39