Agility Earnings Call Presentation Full Year 2018 Results - PowerPoint PPT Presentation

21 February 2019 Agility Earnings Call Presentation Full Year 2018 Results

Disclaimer This presentation is strictly confidential and is being shown to you solely for your information and may not be reproduced, retransmitted, further distributed to any other person or published, in whole or in part, for any purpose. This presentation has been prepared by Agility Public Warehousing Company KSCP (“Agility”) and reflects the management’s current expectations or strategy concerning future events and are subject to known and unknown risks and uncertainties. Some of the statements in this presentation constitute "forward-looking statements" that do not directly or exclusively relate to historical facts. These forward-looking statements reflect Agility’s current intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside Agility’s control. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks. Agility undertakes no obligation to revise any such forward-looking statements to reflect any changes to its expectations or any change in circumstances, events, strategy or plans. Because actual results could differ materially from Agility’s current intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained in this presentation with due care and caution and seek independent advice when evaluating investment decisions concerning Agility. No representation or warranty, express or implied, is made or given by or on behalf of Agility or any of its respective members, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in or discussed at this presentation. 2

Agenda Financial Highlights 1 Business Segments 2 Agility’s Outlook 3 Q & A 4 3

2018 highlights Agility Highlights GIL Infrastructure • Solid group performance in • GIL outperformed the market in 2018 despite market • both air and ocean volumes Positive results in 2018 aligned challenges with the roadmap set for each • GIL continues to invest in its company • Double digit EBITDA growth global operating platform, for the third year in a row • digital transformation strategy Constant focus to improve and its digital logistics platform efficiency, expand customers • Exploring different avenues base and geographic reach to maximize value for its • GIL has an ongoing effort to shareholders • drive margin improvements in Agility continues to invest in in its contract logistics business this group and looks for • Board of directors and new investments were opportunities to unlock the recommendation of 15% made in 2018 to support that value for shareholders cash dividends and 15% initiative bonus shares 1 1 Subject to the approval of the General Assembly 4

FY 2018 Group financial performance KD Mn Another year of healthy growth Revenue Net Revenue +143.2 +27.9 (+10.2% ) (+5.9%) 1,550.2 1,407.0 497.8 469.9 Margin Margin 32.1% 33.4% 2017 2018 2017 2018 EBITDA Net Profit +19.6 +12.6 (+14.5%) (+18.4%) 154.8 81.1 135.2 68.5 Margin Margin Margin Margin 9.6% 10.0% 4.9% 5.2% 2017 2018 2017 2018 5

FY 2018 Group financial performance KD Mn Revenue contribution by Business Group EBITDA contribution by Business Group Y-o-Y +17.2% +14.5% +6.3% +8.6% +14.9% +10.2% Growth 154.8 1,550.2 17.5 35.9 135.2 2.1 53.8 2.1 1,407.0 91.5 (23%) 33.8 GIL (25%) 1,153.1 1,061.6 (74%) GIL (75%) 119.0 101.5 (77%) Infra (75%) 397.1 345.5 Infra (26%) (25%) FY 2017 GIL Infra Elim. FY 2018 FY 2017 GIL Infra&Adj. FY 2018 • Eliminations are Inter-company revenue 6

Balance Sheet KD Mn Maintaining a strong balance sheet Balance sheet FY 2018 FY 2017 Variance % • Healthy balance sheet, Current assets 584.8 530.5 54.3 10.2% with ability to leverage Non-Current assets 1,258.3 1,198.5 59.9 5.0% future growth 1,843.2 1,728.9 114.2 6.6% Total assets Current liabilities 506.5 553.3 (46.8) (8.5%) • Constant support and Non-current liabilities 270.5 152.1 118.4 77.9% commitment to its 776.9 705.3 71.6 10.1% Total liabilities stakeholders: Non-controlling Interest 1) Shareholders 52.7 49.8 2.9 5.8% Shareholders’ equity 1,013.5 973.8 39.7 4.1% 2) Banks 3) Internal Businesses Highlights (135.1) (93.2) Net Cash (Debt) 0.9X 0.7X ND / EBITDA 7

Statement of Cash Flows KD Mn Investing in the business to capture profitable growth opportunities FY 2017 1 Cash Flow Statement FY 2018 Variance % 75 100 94 269 100% Cash from Operating activities before 156.8 129.3 27.5 21.3% ALP 8.4% changes in working capital 19.7% 20.5% 27.8% Changes in working capital (36.3) (17.0) (19.4) 114% Other Items (22.7) (47.6) 24.9 52.3% Net Cash flow from operating 97.7 64.7 33.0 51% 17.9% activities Tristar 51.6% 29.9% 25.5% CAPEX (94.0) (100.3) 6.3 6.3% 17.3% Other items 1.3 11.3 (10.0) (88.5%) 15.7% Net Cash flow from investing (92.7) (89.0) (3.7) (4.1%) 16.6% activities GIL 12.3% 44.2% Free Cash Flow 5.0 (24.3) 29.4 120.7% 34.7% 30.1% Other 27.6% Highlights 63.1 % 47.9% Conversion ratio (OCF/EBITDA) 2016 2017 2018 Total 6.1% 7.1% CAPEX as % of Revenue 1 2017 Cash flows include the settlement with US government 8

Business Segments 9

GIL financial performance – FY 2018 KD Mn Financial Highlights Regional Revenue Contribution +91.5 22% (+8.6%) 20% (248) 18% Growth 1,153.1 (211) Revenue AME 1,061.6 31% EUR 33% 4% (361) (347) ASP MEA 33% 31% 14% (378) (331) 2017 2018 16% 14% -3% (172) (166) 2017 2018 +12.4 (+4.9%) Service Revenue 263.9 251.5 Net Revenue & margins Growth Freight Margin Margin Contract Log. 22.9% 23.7% 9% 1.025 944 (89%) (89%) 2017 2018 117 128 9% +2.1 (11%) (11%) (6.3%) 2017 2018 35.9 33.8 Ocean Freight volume Air Freight volumes & margins EBITDA Margin Margin +9% +7% 3.2% 3.1% Vs 2017 Vs 2017 10 2017 2018

Infrastructure Group financial performance – FY 2018 KD Mn Solid performance across all key entities +53.8 (+15.0%) 412.0 FY 2017 358.2 FY 2018 +17.5 (+17.2%) 118.9 101.5 1 Revenue EBITDA Revenue growth Y/Y 6.7% 33.7% -1.9% 17.3% 12.3% Development and Transport, storage and Commercial real estate Ground handling, cargo management of logistics parks distribution of fuels plus development and management aviation and Digital customs services and across ME and Africa chemicals supply chain management lounge services customs operation 11 1 Includes corporate

Agility’s Outlook 12

Agility’s Outlook EBITDA $ 800 Mln On Track to Achieve Target, Timeline Could Extend Beyond 2020 13

2020 Goal Growth aimed towards our 2020 Target 2017 A 2016 A Key Guidance given in 2016 FY 2018 Profitability EBITDA Growth 15% 17% 15% Expect to grow at double digit rate KD 93 Mn 1 Operating Cash Growth KD 98 Mn KD 81 Mn (+5%) (+15%) (-23%) To grow in line with EBITDA growth Cash/Balance Sheet Free Cash Flow KD 4 Mln 1 KD 5 Mln KD 2 Mn Limited due to Capex Program Net Debt KD 135 Mn KD 93 Mn KD 45 Mn Net Debt to Continue due to levered investments Dividends Lower & limited as we are investing for the future 15 fils cash 15 fils cash 15 fils Cash 15%Shares 15% Shares 10% Shares 27% Payout 28% Payout 29% Payout 1 Adjusted for US Government Settlement 14

IFRS-16 What has changed? Impact on 2018 numbers if it was implemented BALANCE SHEET 1. No distinction between Operating and finance leases going forward. Total Assets ~+5% Total Liabilities ~+12% 2. All Qualified Operating leases will be Equity No impact captured in the balance sheet P&L 3. Right of use Asset and a EBITDA ~+16% corresponding lease obligation in the balance sheet. EBIT ~+2% Net Income to decrease ~ -2% Effective 1 st Jan 2019. Adjustments 4. will be reflected in the Q1-19 CASH FLOW No Impact financials. 15

Agility Value Creation Trajectory Created KD 1,051 Mn in value for our shareholders with 24% IRR since 2011 Value Growth - 842 KD Mn (80%) 179 Dividends - KD 209 Mn (20%) +17% 1,438 335 160 +45% 19 137 204 318 +18% 254 +35% 38 +1,051 17 96 +48% 41 170 (271%) -272 176 34 225 +46% -234 30 -27% 147 387 30 387 Dec 11 MCap 2012 2013 2014 2015 2016 2017 2018 Total EBITDA CAGR Net Profit CAGR 155 +17% 81 +15% 135 69 115 59 53 100 100 51 94 46 79 34 58 27 2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018 16

Q&A Session 17