Aramex PJSC

Investor Presentation2nd quarter 2012

Company ProfileCompany StructureStrategic DirectionFinancial Analysis

Financial PerformanceYear 2011BackgroundRevenue (2011): US$701 millionGross Margin (2011): 53%Net Income (2011): US$57.6 millionNet Margin: 8.2%Shareholders Equity (2011): US$516 millionTotal Assets (2011): US$679 millionCash (2011): US$86 million

HighlightsEstablished: 1982, 27 years in operationHubs: Main hubs in Amman, Dubai, Hong Kong, Liege, London, New York and Singapore. Offices: 309 offices in 200 major cities worldwideStaff: Over 10,295 employeesFounder 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. Aramex Quick OverviewFinancial Performance2nd Q12Revenue (2nd Q'12): US$213 millionGross Margin (2nd Q'12): 53.6%Net Income (2nd Q'12): US$17.5 millionNet Margin: (2nd Q'12 ) 8.2%Shareholders Equity (2nd Q'12): US$528 millionTotal Assets (2nd Q'12): US$693 millionCash (2nd Q'12): US$57 million

2004 2005 2002 1997 1982First Arab-based Company on NASDAQReturned to Private OwnershipPublic on Dubai Financial MarketEstablished as a Privately Held CompanyAramex Background HistoryOwnership 1997 1985 1984 1982Express RetailExpress Wholesale DeliveryProduct ProgressionMultiple Product OfferingValue Added ServicesSupply Chain Solutions

Shareholders Value CreationGrowth in Aramexs Value (US$ Million)

Aramex Geographic Coverage

Aramex PeopleGrowth in Number of Staff in the past 7 years

Chart1

4002

6031

6600

7600

8100

8675

10175

Employees

10,295

Sheet1

2005200620072008200920102011

Employees4,0026,031660076008100867510,175

www2.dfm.ae2007- Retail Project Award (Shop &Ship product)- Global Mail Awards- Environment Award, BIFA- 3rd Party Logistics Provider of the Year, SCATA- Best Environmental Practices, International Green Apple AwardsOutstanding Achievement of the year Award, SCATAExpress Logistics Provider of the Year, SCATABest Quality Assurance Program, Middle East Call Center AwardsThe Aramex team won the Best Small Call Center at the Call Center Awards 2011 in the UAE.Special Services Award at the 2011 BIFA Awards in London, UK. Most Improved Website - consumer and lifestyle at the Internet Awards Middle East in Dubai, UAE.Nominated for the Best Social Media Company by Mashable, in Las Vegas, Nevada.Aramex in Ireland and the UK get recognized at the IFW Awards as highly commended road freight operator.Awards & RecognitionsHighlights2008200920102011

SustainabilityAramex is one of the first companies in the region to report on its sustainable business practicesKey Sustainability Issues 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 ProfileCompany StructureStrategic DirectionFinancial 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.

Federal SystemFront LineFederation of interdependent companies, that function as an independent unit managed by a local CEOEach unit sets its own business plans, objectives and budgets in line with the corporate strategy

The Aramex ModelHighlightsManages interaction among members of the federationSets policies, procedures, & monitors complianceProvides marketing, network infrastructure & IT infrastructureGlobal Services OfficeAramex geographic regions are divided into five areas: Levant, Gulf, Africa, Asia and West (Europe and US)Each area has a board composed of the senior regional manager, and other functional directors etcArea boards are responsible for the areas strategic direction, budgeting, performance, and operations

Area Boards

Culture and ValuesUnique 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 ValuesThe Aramex ModelHighlightsCustomer centric and dedication to service excellenceDecentralized and flat organizationTrust based system that empowers the front line

Company ProfileCompany StructureStrategic DirectionFinancial Analysis

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.Vision: To enable and facilitate regional & global trade & commerce

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

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.

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.

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. Regions Identified for Geographic Expansion

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.AdvantageHighlights PerformanceFinancial Management / EmployeesExperienced management teams that are willing to continue post acquisitionTrack history of having met projections and budgetsDiversified client base with minimal reliance on top clients or on network of agentsNot part of or affiliated with an already established networkStrong corporate culture that is in line with AramexsAbility to change and incorporate the Aramex Accounting and IT systems.Expansion through Acquisitions

Franchising OpportunitiesAramex can offer potential franchisees its established IT systems technology that is capable of running multiple transportation products using latest internet based technology. In addition the Aramex independent international network and brand can provide opportunities for growth to local and regional transportation companies looking to offer a global service.

At the same time, Aramex can benefit from the local knowledge of such independent local companies to facilitate market entry, grow its revenue base, expand its brand awareness and improve service offering.

As part of the franchise program, Aramex has the ability to acquire a majority stake at favorable valuations which will provide attract acquisition targets.

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 facilitiesExpansion of Warehousing FacilitiesThere 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.Acquisition 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. New Product DevelopmentHighlights Leveraging Existing Infrastructure

Company ProfileCompany StructureStrategic DirectionFinancial Analysis

RevenueCAGR9.6%Growth in Revenue (US$000)

Chart1

485702

566344

533896

602279

701465

Revenues

Sheet1

20072008200920102011

Revenues485,702566344533,896602,279701,465

Product Distribution2008Change in Product Distribution2nd Q'12

Chart1

B.S 04-2010

All values in 000' USD2004 A2005 A2006 A2007 A2008 A2009A2010A2nd Q'11

Assets

Current Assets

Cash and cash equivalents14,71492,67560,60165,03793,619136,650151,048111,188

Receivables (net)33,47840,72071,24586,90194,28595,044110,012129,553

Other current assets6,2758,05521,32826,13526,68623,68826,60234,264

Total current assets54,467141,450153,174178,074214,591255,382287,662275,0051,009,983

Non-Current Assets

Property, Plant and equipment (net)12,12121,27034,89152,54865,44967,23290,438101,238

Goodwill (net)8,949171,089218,845218,755219,311232,377235,037237,678

Other non current assets1,2003,3524,9006,6593,1025,4359,43510,775

Total non-current assets22,270195,711258,636277,962287,862305,044334,910349,691

Total assets76,737337,161411,810456,035502,452560,426622,572624,6962,294,258

Liabilities, Minority Interest and Shareholders' Equity

Current Liabilities:

Due to Banks34617,4705,4983,8942,4371,8694,255

Current Portion of LTD9411,4992,2623,5553,1852,0371,8281,722

Trade payables17,67019,42932,00435,96730,81632,24835,16534,611

Other current liabilities12,13918,14937,34939,26454,80263,29071,72073,022

Total current liabilities31,09639,07879,08584,28492,697100,012110,582113,611417,248

Non-Current Liabilities:

Long term debt7061,2883,6434,0054,2931,7601,7713741,375

Other non current liabilities5,2396,55911,19310,88214,32416,51618,58521,05077,310

Total non-current liabilities5,9457,84714,83614,88718,61718,27620,35621,42578,685

Minority interest in subsidiaries3,2674,1805,2516,9287,8847,6636,6927,51027,581

Shareholders' Equity:

Issued and paid-up capital52272,287272,287299,515329,467362,414398,655398,6551,464,100

Contribution to surplus12,44100000000.0

Reserve03265393,7306,99711,14316,95616,95662,274

Cumulative change in fair value0003,899158611345101370

Accumulated other comprehensive income (loss)(475)(168)4861,006(1,668)(697)(1,724)(2,175)(7,988)

Reserve arised from acquisition of non-controlling interest(3,376)(4,092)(15,030)

Cash Dividends0027,229000000.0

Proposed directors fees00218000000.0

Retained earnings24,41113,61111,88141,78648,30061,00574,08672,705267,018

Total shareholders' equity36,429286,056312,638349,936383,254434,475484,942482,1501,770,744

Total Liabilities, minority interest and shareholders' equity76,737337,161411,810456,035502,452560,426622,572624,6962,286,458

00000000

491,634489,660

Market Value

1997 - Listing on Nasdaq2002- De-listing from Nasdaq2005- Listing on DFMDec-09Dec-10Jun-11

Value2565185569829702

Market Value

Value

Rev. per product Pie chart

Revenue2nd Q'11

Express57,612

Freight Forwarding73,712

Domestic25,238

Logistics7,269

Others12,705

Total176,536

Express32.6%

Freight Forwarding41.8%

Domestic14.3%

Logistics4.1%

Others7.2%

Rev. per product Pie chart

Rev. per region chart

Region2nd Q'11

Middle East121,076

Europe35,223

North America2,845

Asia17,392

Total176,536

Middle East68.6%

Europe20.0%

North America1.6%

Asia9.9%

Total100.0%

Rev. per region chart

GP & N.I margins chart

(Gross Profit) & (Net Income) Margins

200620072008200920102nd Q'11

GP%45%47%50%57%54%53%

N.I%7.0%6.8%7.1%9.4%9.2%8.7%

GP & N.I margins chart

GP%

N.I%

Years

Margins

(Gross Profit) & (Net Income) Margins

CAGR

2002200320042005200620072008200920102nd Q'11CAGAR

Revenues136,530166,797188,736232,492371,345485,702566,344533,896602,297176,53621.0%

CAGR12.85%

Gross Profit62,32573,44585,916110,693168,774227,537282,629301,705324,06693,48024.0%

GP %46%44%46%48%45%47%50%57%54%53%

CAGR17.72%

Net Income4,00110,04712,9572025925,92833,09740,11350,17955,57215,38722.4%

NI%2.9%6.0%6.9%8.7%7.0%6.8%7.1%9.4%9.2%8.7%

21.00%

CAGR

Sheet5

Geographic DistributionChange in Geographic Distribution20082nd Q'12

Gross Profit & Gross MarginGrowth in Gross Profit (US$000)CAGR 12.8 %

Chart1

2275370.47

2826290.5

3017050.565

3240660.538

3689320.526

Gross Profit

Gross Margin

46.8%

49.9%

56.5%

53.8%

52.6%

Sheet1

200620072008200920102011

Gross Profit168,774227,537282,629301,705324,066368,932

Gross Margin45%47%50%56.50%53.80%52.60%

Net Income & Net MarginGrowth in Net Profit (US$000)CAGR14.9 %

Chart1

330970.068

401130.071

501790.094

555720.092

575990.082

Net Income

Net Margin

Sheet1

200620072008200920102011

Net Income25,433330974011350,17955,57257,599

Net Margin7.0%6.8%7.1%9.4%9.2%8.2%

Aramex PJSC Balance Sheets

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