Investors Presentation Q2 2020 Results Management Update | Q2 2020 Results | Long Term Performance | Management Outlook
Cautionary Note Regarding Forward-Looking Statements 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 events and trends, the economy and other future conditions. Forward looking statements are neither historical facts nor assurances of future performance and can generally be identified by terminology including "anticipate”, "aspire", "believe", "project", "estimate", "expect", "forecast", "strategy", "target", "trend", "future", "likely", "may", "should", "will", "intend", "plan", "goal", "objective", "seek", “roadmap”, and other words of similar meaning or similar expressions. By their nature, forward looking information and statements are subject to known and unknown uncertainties, risks and changes in circumstances that are difficult to predict and not in our control. Our actual results of operations and financial conditions may differ materially from that or those indicated in the forward looking statements. You should not place undue reliance on any of these forward looking statements. Any forward looking statement made by us in the presentation is based only on information currently available to us and speaks only as to the date on which this presentation is made. Past performance is not a reliable indication of future performance. We make no representations or warranties as to the accuracy, or completeness of the information and shall not have any liability for any representations, express or implied, regarding the information contained in, or for any omissions from, the information included in this presentation. We undertake no obligation to publicly update any forward looking statement whether as a result of new information, future developments or otherwise. The information contained in the presentation is prepared to assist prospective investors in making their own evaluation of the Company. | Investor Presentation
Management Update Management Update | Q2 2020 Results | Long Term Performance | Management Outlook
Aramex is a Global Provider of Logistics and Transportation Solutions Aramex Overview 15,623 65+ 600+ in AED 2.5 AED 5.1 | | | Billion Market Cap Employees Offices Countries Billion Revenues We understand that delivering from one side of the country to another requires efficiency and reliability of global Domestic Express standards and local operations that continually strive for excellence. International Express With Aramex International Express, sending time-sensitive documents or packages is prompt, convenient and easy. Whether by sea, air or land, Aramex Freight provides the facilities and expertise for seamless and streamlined Freight operations. As a global logistics and transportation solutions provider, Aramex will help simplify customers’ operations with cost - Logistics & Other effective and comprehensive solutions. Aramex works round-the-clock to serve e-businesses of all sizes. From customized solutions for the checkout, order E-Commerce fulfilment, customs clearance, international shipping, and last mile delivery to returns management. | Investor Presentation
Aramex Shareholders were Rewarded by Good TSR Shareholder Returns Closing Price Q2 2020 Market Capitalization (AEDm) AED 3.45 7,000 6,296 6,281 5,959 6,000 5,227 5,051 4,627 5,000 4,539 4,451 Total Return Metrics 4,000 3,045 2,928 2,635 3,000 -0.12% 2,090 2,000 679 YTD share price 2020 1,000 239 92 increase and total - 1997 - 2002- De- 2005- 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q2 2020 shareholder return Listing listing Listing (dividend reinvested) on from on DFM Nasdaq Nasdaq -3.36% Aramex cumulated traded volume (million shares) Geographic Ownership 2019 share price increase 469 423 38 47 241 -3.09% 2020 total shareholder 13 2 return (dividend reinvested) 1 2 3 4 5 6 7 8 9 10 11 12 UAE GCC Arab Foreign 2018 2019 2020 | Investor Presentation
2020 Management Focused on Four Key Areas to Drive Results Key Messages Focus Area Management Remains Focused on Long-Term Growth Drivers Continues to be the main growth driver of Aramex express and logistics eCommerce businesses Asset-light model Proves our business model can be successful through market cycles Enhances our customer experience and enables us to expand our business Innovation and technology operations Operational efficiency Implementation of ERP platform fosters enterprise-wide collaboration | Investor Presentation
Management Remains Focused on Three Key Priorities Management Priorities Expand Footprint Develop & define our stronghold in GCC & Levant Expand Aramex presence in Asia Pacific and Africa Globalize the Aramex brand in emerging markets | Investor Presentation
Management Remains Focused on Three Key Priorities Management Priorities Expand Footprint Leverage Infrastructure Develop & define our Grow eCommerce business stronghold in GCC & Levant Expand Aramex presence in Integrate supply chain management Asia Pacific and Africa solutions and value added services Globalize the Aramex Leverage the existing infrastructure brand in emerging markets to create new business opportunities | Investor Presentation
Management Remains Focused on Three Key Priorities Management Priorities Expand Footprint Leverage Infrastructure Organic Growth Develop & define our Continue to deliver operational Grow eCommerce business stronghold in GCC & Levant excellence Accelerate organic expansion Expand Aramex presence in Integrate supply chain management building on strength and value of Asia Pacific and Africa solutions and value added services the Aramex brand Short term investment in people and Globalize the Aramex Leverage the existing infrastructure systems to take advantage of long- brand in emerging markets to create new business opportunities term growth opportunities | Investor Presentation
Q2 2020 Results Management Update | Q2 2020 Results | Long Term Performance | Management Outlook
Strong Top and Bottom Line Performance Financial Performance Performance across key indicators Q2 2020 Results (AED) 1,278,602 1,269,940 1,463,259 1,331,846 1,195,771 Revenues 4% growth compared to Q2 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 289,578 243,256 233,667 222,841 197,493 EBITDA -8% year on year headline EBITDA growth Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 9.6% 9.0% 10.4% 5.6% 7.1% Net Profit Margin -255 bp margin year on year Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 0.104 0.084 0.078 0.064 0.046 EPS -23% earnings per share increase Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 | Investor Presentation
Q2 2020 Group Highlights Financial & Performance Highlights Management Comments Revenue (AED m) Cost of Services (AED m) 1,332 -688 Growth of both, Revenues and Net Profit, -601 1,279 -565 continued to be negatively impacted by the rise in unforeseen costs prompted by the global 1,196 onslaught of Novel Coronavirus (COVID-19) Pandemic. Q2 2019 Q1 2020 Q2 2020 Q2 2019 Q1 2020 Q2 2020 Total Domestic Express shipment volumes surged 133% in core markets driven by the Total Overheads (AED m) Attributable Net Profit (AED m) exceptional growth from e-commerce related deliveries as government mandated stay at home measures and lockdowns forced people to 123 turn to online channels to shop for necessities 94 and other goods. 67 -528 -515 -514 Revenue mix has shifted on the back of considerable changes in consumer shopping Q2 2019 Q1 2020 Q2 2020 Q2 2019 Q1 2020 Q2 2020 behavior and e-commerce trends, combined with an increase in the cost of doing business. | Investor Presentation
Q2 2020 Financial Highlights Financial Performance & Highlights Income Statement (AEDm) Quarter Movement (%) Q2 2020 Q1 2020 Q2 2019 q-o-q y-o-y Revenue 1,332 1,196 1,279 11% 4% Cost of Services (688) (565) (601) -22% -14% Gross Profit 644 631 678 2% -5% Overheads (514) (528) (515) 3% 0% Profit for the period 94 67 123 40% -23% EBITDA 223 197 243 13% -8% | Investor Presentation
International Express and Domestic delivered of revenues 69% Financial Performance & Highlights Revenues by Segment (AED m) Y-o-Y Growth -1% -3% 31% 0% -17% Other 5% Logistics 6% 0 1,332 79 -12 -4 1,279 -9 Domestic Express 25% 44% Q2 2020 Freight Forwarding 20% Q2 2019 Express Freight Domestic Logistics Other Q2 2020 Forwarding | Investor Presentation
Geographic Performance – Strongest Growth Recorded in Middle East & Africa Financial Performance & Highlights Revenues by Geography Y-o-Y Growth -2.5% 27% -25% 15% 1,500 1,332 Asia and 46 38 -11 1,279 -19 Others 27% 1,250 Middle East 1,000 Q2 2020 North & Africa America 57% 2% 750 Europe 13% 500 250 - Q2 2019 Middle East & Europe North America Asia and Others Q2 2020 Africa | Investor Presentation
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