Investor Presentation - Q2 2012

Aramex PJSC
Investor Presentation
2nd quarter 2012
Company Profile
Company Structure
Strategic Direction
Financial Analysis
Aramex Quick Overview

Highlights
Background
Established: 1982, 27 years in operation

Hubs: Main hubs in Amman, Dubai, Hong Kong, Liege, London, New York and Singapore.
Offices: 309 offices in 200 major cities worldwide
Staff: Over 10,295 employees
Founder of the Global Distribution Alliance (GDA) and co-founder of the WFA World Freight Alliance.
Activities: Aramex is a logistics and supply chain management company providing total
transportation solutions One Stop Shop.
Financial
Performance
Year 2011
Revenue (2011): US$701 million

Gross Margin (2011): 53%
Net Income (2011): US$57.6 million
Net Margin: 8.2%
Shareholders Equity (2011): US$516 million
Total Assets (2011): US$679 million
Cash (2011): US$86 million
Financial
Performance
nd Q12
2nd
Revenue (2nd Q'12): US$213 million

Gross Margin (2nd Q'12): 53.6%
Net Income (2nd Q'12): US$17.5 million
Net Margin: (2nd Q'12 ) 8.2%
Shareholders Equity (2nd Q'12): US$528 million
Total Assets (2nd Q'12): US$693 million
Cash (2nd Q'12): US$57 million
Aramex Background History

Ownership
1982
1997
2002
2005
Established as a
Privately Held
Company
First Arab-based
Company on
NASDAQ
Returned to
Private
Ownership
Public on Dubai
Financial Market
Product Progression
1982
Express
Wholesale
Delivery
1984
Express
Retail
1985
Multiple
Product
Offering
1997
2004
Value Added
Services
Supply Chain
Solutions
Shareholders Value Creation
Growth in Aramexs Value (US$ Million)
Aramex Geographic Coverage
Aramex People
Growth in Number of Staff in the past 7 years
Sustainability
Key Sustainability Issues
Aramex is one of the first companies in the region to report on its sustainable business
practices
Community Empowerment: Community based projects that target

community and youths needs through a highly interactive participatory
approach. Partners include NGOs, private sector, public sector,
community centers, etc.
Youth Empowerment & Education: Providing internship and training

opportunities to students, as well as developing applied training
programs in partnership with universities.
Sports: Sponsorship of sports events, the Riyadi Club (Basketball and

Squash) in Jordan, Jeddah United (the first women basketball team in
Saudi Arabia, etc.)
Environment: Introduction of Hybrid cars into aramex fleet, change to

unleaded gas, using biodegradable and recycled material, commitment
to become the first carbon neutral company in the region, etc.
Emergency Relief : Providing logistics support and aid donation

campaigns to disaster stricken areas such as: Asia Tsunami, Pakistan
Earthquake, Lebanon War, Gaza War, etc.
Company Profile
Company Structure
Strategic Direction
Financial Analysis
Asset Light Model
Aramex asset-light business model translated into a high degree of flexibility and
agility in pursuing opportunities as well as efficient cost management.
During the recession, Aramex asset-light business model allowed the company to
create considerable efficiencies improving both the gross profit and net profit margins.
The Aramex Model

Highlights
Federal System
Front Line
Global
Services
Office
Federation of interdependent companies, that function as an

independent unit managed by a local CEO
Each unit sets its own business plans, objectives and budgets in line
with the corporate strategy
Manages interaction among members of the federation

Sets policies, procedures, & monitors compliance
Provides marketing, network infrastructure & IT infrastructure
Aramex geographic regions are divided into five areas: Levant, Gulf,
Africa, Asia and West (Europe and US)
Area
Boards
Each area has a board composed of the senior regional manager,

and other functional directors etc
Area boards are responsible for the areas strategic direction,
budgeting, performance, and operations
The Aramex Model
Culture and Values
Highlights
Unique
Corporate
Culture
Belief that people are Aramexs most significant asset.

Encouraging creativity, innovation and entrepreneurship.
Empowering employees through continuous development &
training.
Promotion from within
Committed to economic and social development as well as
environmentally friendly practices.
Key
Values
Customer centric and dedication to service excellence

Decentralized and flat organization
Trust based system that empowers the front line
Company Profile
Company Structure
Strategic Direction
Financial Analysis
Vision: To enable and facilitate regional & global trade & commerce
Emerging markets: Capitalizing on experience, technology, product offering

and international network by expanding the geographic reach into emerging
economies with high growth potential.
Core markets: Leveraging and expanding infrastructure in existing geographic
locations to strengthen market positioning by introducing new products and
services.
Mediums of geographic expansion:
Franchising which will provide Aramex with a revenue stream, requiring minimal
capital and management.
Small and medium-sized attractive acquisitions and Joint Ventures which can be
integrated.
Regions Identified for Geographic Expansion
Aramex has extensive knowledge and experience in underdeveloped and developing

markets and sees tremendous value in developing its global network by introducing its
asset light model and product offering into new markets with high growth potential.
Taking the Aramex model to new markets will strengthen its position as a key global
provider specialized in emerging markets while operating a global independent
network:
Potential areas for expansion
1.
Africa and CIS: Aramex is looking to invest in key African and CIS markets that enjoy political stability and
economic growth potentials by working with partners that possess industry knowledge and can benefit from
Aramexs network and know-how.
2.
Asia: Aramex will further expand its current operations in locations like Singapore, Hong Kong, Indonesia,
Vietnam, while developing its gateways in China and looking for investment opportunities in other South
East Asian countries. The Asian presence aims at servicing important trade routes between Asian markets
and other markets.
3.
India: Aramex has a sizable operation in India that offers international and domestic express service, and is
looking to further enlarge its geographic presence and product offering.
Expansion through Acquisitions

Advantage
Performance
Financial
Management /
Employees
Highlights
Profitable company with margins in line with Aramexs margins.
Capacity to support reasonable levels of leverage to allow for financing.
Proper financial disciplines with accredited auditors.
Non-asset based companies.
Experienced management teams that are willing to continue post acquisition

Track history of having met projections and budgets
Diversified client base with minimal reliance on top clients or on network of
agents
Not part of or affiliated with an already established network
Strong corporate culture that is in line with Aramexs
Ability to change and incorporate the Aramex Accounting and IT systems.
Leveraging Existing Infrastructure

Highlights
Expansion of
Warehousing
Facilities
Acquisition
New Product
Development
Supply chain solutions outsourcing is expanding in the Middle East and South Asia;
warehousing is a critical pre-requisite for offering these services and where appropriate
warehousing space is not available Aramex will invest in purpose built facilities
There are a number of small to medium size businesses within the region that can be
integrated with the existing Aramex operation and produce considerable efficiencies.
Aramex continuously seeks to identify such companies to grow revenues and profit at
higher efficiency.
Aramex has succeeded in introducing new products when it acquired Info-Fort, a

records and information management service provider. The offering has proved to be a
very successful and niche one that has already expanded to 9 countries (GCC, Jordan,
Egypt, Iran) and that has potential to other core markets.
There are also various opportunities across the network, to further develop products
and services, using existing infrastructure.
Company Profile
Company Structure
Strategic Direction
Financial Analysis
Revenue
Growth in Revenue (US$000)
CAGR
9.6%
Product Distribution
Change in Product Distribution
2008
2nd Q'12
Geographic Distribution
Change in Geographic Distribution
2008
2nd Q'12
Gross Profit & Gross Margin

Growth in Gross Profit (US$000)
CAGR
% 12.8
Net Income & Net Margin

Growth in Net Profit (US$000)
CAGR
% 14.9
Aramex PJSC Balance Sheets

Investor Presentation - Q2 2012

Uploaded by

Copyright:

Available Formats

Investor Presentation - Q2 2012

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Investor Presentation - Q2 2012

Uploaded by

Copyright:

Available Formats

Aramex PJSC

2nd quarter 2012

Aramex Quick Overview

Established: 1982, 27 years in operation

Revenue (2011): US$701 million

Revenue (2nd Q'12): US$213 million

Aramex Background History

Shareholders Value Creation

Growth in Aramexs Value (US$ Million)

Aramex Geographic Coverage

Key Sustainability Issues

Community Empowerment: Community based projects that target

Youth Empowerment & Education: Providing internship and training

Sports: Sponsorship of sports events, the Riyadi Club (Basketball and

Environment: Introduction of Hybrid cars into aramex fleet, change to

Emergency Relief : Providing logistics support and aid donation

Asset Light Model

The Aramex Model

Federation of interdependent companies, that function as an

Manages interaction among members of the federation

Each area has a board composed of the senior regional manager,

The Aramex Model

Culture and Values

Belief that people are Aramexs most significant asset.

Customer centric and dedication to service excellence

Emerging markets: Capitalizing on experience, technology, product offering

Regions Identified for Geographic Expansion

Aramex has extensive knowledge and experience in underdeveloped and developing

Expansion through Acquisitions

Experienced management teams that are willing to continue post acquisition

Leveraging Existing Infrastructure

Aramex has succeeded in introducing new products when it acquired Info-Fort, a

Gross Profit & Gross Margin

Net Income & Net Margin

Aramex PJSC Balance Sheets

You might also like