4Q18 EARNINGS RELEASE 1 4Q18 EARNINGS RELEASE 0 50 100 150 200 250 300 350 400 2018 2017 277.9 352.3 Revenues in EGP millions EBITDA 0 20 40 60 80 100 120 2018 2017 49.2 113.3 in EGP millions Key Highlights consolidated 2018 ● Revenues decreased by 21.1% Y-o-Y to EGP 277.9 million ● Costs were reduced by 45.9% to EGP 192.5 million ● SG&A increased by 4.9% to EGP 36.2 million ● EBITDA declined 56.5% to 49.2 EGP million ● Investment Income turned positive to reach EGP 2 million ● Net Interest Income surged a 128% to reach EGP 5.5 million ● Taxes shrank by 64.4% to reach EGP 11.0 million ● Net Profits declined 45.9% to to reach EGP 42 million Net Profits after Taxes 0 10 20 30 40 50 60 70 80 2018 2017 41.8 77.3 in EGP millions Costs 0 50 100 150 200 250 2018 2017 192.5 204.6 in EGP millions Egytrans’ [ETRS.CA; ETRS EY Equity] diversification strategy proves successful, driving record growth of 34% Y-o-Y in regular business revenues to reach EGP 128 million, partially offsetting impact of cyclical projects business which recorded 21% Y-o-Y decline in revenues reaching EGP 278 million. Positive performance in SG&A and Costs, reflecting continued focus on cost and cash discipline, and decline in Taxes by 64% Y-o-Y and net profit by 45.9% Y-o-Y to EGP 41.8 million.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
4Q18EARNINGS RELEASE 1
4Q18EARNINGS RELEASE
0
50
100
150
200
250
300
350
400
20182017
2779
3523
Revenues in EGP millions
EBITDA
0
20
40
60
80
100
120
20182017
492
1133
in EGP millions
Key Highlights consolidated 2018 Revenues decreased by 211 Y-o-Y to EGP 2779 million Costs were reduced by 459 to EGP 1925 million SGampA increased by 49 to EGP 362 million EBITDA declined 565 to 492 EGP million Investment Income turned positive to reach EGP 2 million Net Interest Income surged a 128 to reach EGP 55 million Taxes shrank by 644 to reach EGP 110 million Net Profits declined 459 to to reach EGP 42 million
Net Profits after Taxes
0
10
20
30
40
50
60
70
80
20182017
418
773
in EGP millionsCosts
0
50
100
150
200
250
20182017
19252046
in EGP millions
Egytransrsquo [ETRSCA ETRS EY Equity] diversification strategy proves successful driving record growth of 34 Y-o-Y in regular business revenues to reach EGP 128 million partially offsetting impact of cyclical projects business which recorded 21 Y-o-Y decline in revenues reaching EGP 278 million Positive performance in SGampA and Costs reflecting continued focus on cost and cash discipline and decline in Taxes by 64 Y-o-Y and net profit by 459 Y-o-Y to EGP 418 million
4Q18EARNINGS RELEASE 2
4Q18EARNINGS RELEASE
2018 Consolidated Financials Review 2018 represents a record year for Egytransrsquo regular business
showing growth rates above market with an aggregate of 34 increase Y-o-Y to reach EGP 128 million driven by our strategy of improving performance in key business sectors and thereby partially offsetting the expected decrease in revenues from cyclical projects Total revenues reached EGP 2779 million representing a decrease of 211 Y-o-Y The absence of high-margin mega projects business resulted in an increase in CostRevenues ratio by 11203 bps to record 693 in 2018 vis-agrave-vis 581 in 2017 This accordingly led to a decrease of 14434 bps in EBITDA margin to 177 vs 322 for both years respectively
NetProfitsafterTaxesfortheyeardeclinedby459reaching EGP 418 million down from EGP 773 million registeringaNetProfitMarginof150vis-a-visamarginof219in2017ThisdeclineinNetProfitswasmitigatedbyasignificantincreaseinrevenuesfromEgytransrsquoregular
business a decrease in SGampA due to our continued emphasis on cost and cash discipline positive Investment Income a considerable increase in Net Interest Income to EGP 55 millionlowerTaxProvisionsforEgytransampETALandfinallyathree-fold decrease in annual taxes
On the Balance Sheet front Accounts Receivable Days Sales Outstanding (DSO) has increased to 100 days in 2018 compared to 79 days in 2017 due to lower Revenues
In the meantime Cash balance decreased by 272 to register EGP 1059 million by end of 2018 from EGP 1455 million by end of 2017 due to the payment of dividends as well as purchase of new company headquarters tax payments and buy back of treasury shares amounting to 2215 million shares in 4Q18
Meanwhilefinancialleveragerecorded36in2018versusnil a year ago due to leasing 5 new trucks for the land transport pilot project as well as a loan for EGP 125 million to purchase the new HQ for Egytrans in the 5th Settlement (with DE ratio of 50-50)
15
20
25
30
35
20182017
322
177
EBITDA Margin
15
20
25
20182017
219
150
Net Profit Margin
4Q18EARNINGS RELEASE 3
4Q18EARNINGS RELEASE
2018 Operational Review On a macroeconomic level we have witnessed a more
stable operating market throughout 2018 as a result of thegovernmentrsquosfiscalandmonetarypolicyvisibleindecreasedinflationandavailabilityofforeigncurrenciesespeciallyUSDinthebanksdespitesomefluctuationinFXrates
In 3Q18 Egytrans signed a new contract for West Cairo and Assiut-Walidiya power stations with estimated total revenues of EGP 40 million The project commenced work in 3Q18 and will extend for 6 months during which all transport logistics and installation services will be performed by Egytrans
The successful completion of the majority of mega project works resulted in an expected slowdown in our operations 2018 Revenues from ETAL whose core business is projects and therefore cyclical declined as a result by 557 thereby negatively impacting the overall performance of Egytrans
thereby ameliorating negative impact of cyclical nature of projects on the bottom line Our continued focus on performanceandportfoliodiversificationhasreapedresultsas Egytransrsquo regular business lines exhibited exceptional growthduringtheyearwithStorageSeaFreightFreeZoneandAirFreightrevenuesincreasingby922424and13 respectively in 2018 compared to 2017
During 2018 Egytrans launched a new land transport project Early results in this area are encouraging and indicate potential opportunity for growth Going into 2019 Egytrans will continue to support this new business line withplanstodoubleitsfleetfrom5trucksto10truckswithanestimatedinvestmentcostofLE8MillionOverthemedium term we will continue to build upon data received from this pilot project as part of our strategy to diversify and strengthen our services as this will ultimately drive sustainable long-term growth for the company
EDS signaled a Y-o-Y growth of 34 in its performance during 2018 The company continues on track holding 70 of the market share in ISO tank storage and cleaning solutions
Egytrans Separate Egytransrsquo separate revenues reached EGP 2426 million showing a 179 decline Y-o-Y In the meantime costs improved by 38 to EGP 1873 million and SGampA added 61 to EGP 288 million As a result EBITDA margin retreated 641 to EGP 265 million in 2018 from EGP 737 million in 2017NetProfitsafterTaxes decreased to EGP 355 million in 2018 vis-agrave-vis EGP 726 million a year agorepresentingNetProfitMarginsof146and246for both respective years Earnings per Share (EPS) reached EGP 091 for 2018 compared to 186 in 2017
Net Profit Before Taxes 6759384 6708075 2239081 -666 -669 95919951 42491769 -557
Taxes (4881674) 62092 (2636057) na -460 (23272608) (6967736) -701Net Profit After Taxes 1877710 6770167 (396976) na na 72647343 35524033 -511
Egytrans Separate
4Q18EARNINGS RELEASE 7
4Q18EARNINGS RELEASE
286
211135
91
67
65
53
4132 11 09
Land Transport
Storage (Free Zone)
Unloading
Storage (Others)
Sea Freight
Extra Services
Storage (Adabeya)
Customs Clearance
Air Freight
Other Revenues
Transit
Revenues by line of business 2018
Revenues by line of business 2017
478
149
140
47
44
42
3523 19 12 09
Land Transport
Unloading
Storage (Free Zone)
Extra Services
Sea Freight
Storage (Adabeya)
Customs Clearance
Air Freight
Storage (Others)
Transit
Other Revenues
Revenues contribution amp growth by line of business
Revenues contribution amp growth by branch
Sea Fr
eight
Air Frei
ght
Custo
ms Clea
rance
Unload
ing
Extra S
ervice
s
Land
Tran
sport
Storag
e (Adab
eya)
Storag
e (Fre
e Zon
e)
Storag
e (Oth
er)
Transit
Others
-100
0
100
200
300
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
2017 2018 Change
-100
-80
-60
-40
-20
0
20
40
60
80
100
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
100000000
110000000
2017 2018 Change
4Q18EARNINGS RELEASE 8
4Q18EARNINGS RELEASE
ETAL Egyptian Transport amp Logistics (ETAL) a fully owned subsidiary of Egytrans executes specialized transport and installation of cargos with exceptional weight and dimensions for large projects in addition to other operations The company recorded 557 Y-o-Y lower Revenues of EGP175millionMeanwhileNetProfitsafterTaxesrecorded a 575 drop Y-o-Y to EGP 57 million in 2018 following a 59 reduction in Taxes to EGP 17 million compared to EGP 18 million a year ago
IS ComparisonItem (In EGP) 4Q17 3Q18 4Q18 QoQ YoY 2017 2018 YoYRevenues 1226455 2515000 4600150 829 2751 39436558 17488189 -557Costs (911413) (1148794) (2060143) 793 1260 (10226926) (5725651) -440Gross Profit 315042 1366206 2540007 859 7062 29209632 11762538 -597SGampA (1654794) (857354) (984777) 149 -405 (4001979) (4080385) 20EBITDA (1339752) 508852 1555230 na na 25207653 7682153 -695Depreciation (294228) (479869) (498742) 39 695 (1928826) (1227862) -363EBIT (1633980) 28983 1056488 na na 23278827 6454291 -723Net Interest Income 307980 155044 134651 -132 -563 1012959 958788 -53FXGainLoss 6812 2010 (3105) na na 88328 (2617) naSocial Insurance Expense 0 0 (18635) nm nm 0 (18635) nmOthers (4921286) 0 49080 nm na (4917286) 72630 naNet Profit Before Taxes (6240474) 186037 1218479 5550 na 19462828 7464457 -616Taxes 128033 1323947 (388372) na na (5617521) (1793346) -681
Net Profit After Taxes (6112441) 1509984 830107 -450 na 13845307 5671111 -590
ETAL
4Q18EARNINGS RELEASE 10
4Q18EARNINGS RELEASE
EDS Egytrans Depot Solutions (EDS) a fully owned subsidiary of Egytrans specializing in storing cleaning and repairing liquid bulk cargo containers (ISO Tanks) recorded a 138 increase in its 2018 Net ProfitsafterTaxestoUSD0432 million vis-a-vis USD 0379 million in 2017 On another note Revenues recorded an increase of 34 to USD 0998 million as opposed to USD 0965 million in 2017
Buying Treasury Shares in 4Q18 Based on Egytrans BoDrsquos decision dated 1-Oct-18 and due to our belief that the companyrsquos shares were undervalued and didnotreflectthecompanyrsquosfuturepotentialoritsstrongcompetitive position the company started the process to buy back2215500ofitsfreefloatsharesOPRwasopenedbyEGXatafixedpriceofEGP72pershare(15premiumoverthe market price of EGP 622) for an aggregate amount of EGP 159 million The transaction took place during the period from 1-Oct-18 until 11-Oct-18The offer was subscribed only 13 x with shareholders offering 28millionEgytranssharesontheEGXagainstthe22millionsharesofthebuybackThisweakresponsereflectstheshareholdersrsquo belief in the companyrsquos performance and future potentialandintheoverallrecoveryofEGX
the stock outperformed all the indices during the treasury shares purchasing period
4Q18EARNINGS RELEASE 13
4Q18EARNINGS RELEASE
Future Outlook We are operating in a fast-changing environment with potential for growth The global transport and logistics market is growing Looking forward the market is projected to reach a value of US$ 1374 Billion by 2023 registering a CAGR of 73 during 2018-2023 Today the industry is entering a period of significantchangebringingopportunitiesandchallengesAsnew technological solutions come into everyday use driven by market trends the sector has been undergoing an important transformation At no point in recent history have we witnessed such a large degree of political economic social technological environmentalandlegalchangesinfluencingthissegmentoftheeconomy
Our strategic responseWe have analyzed each of these forces in detail taking into account their driving trends as well as the maturity of solutions emerging in the market as a response Our strategy is designed to respond to this changing environment To bring differentiated high-quality solutions and services to our customers with our various business lines technical know-how and talented people Our long-term priorities of Portfolio Performance and Trust will help us to deliver our strategyIn 2018 Egytrans refocused its business to make it stronger and more competitive in order to deliver improved sustainable returnsWehavesimplifiedourcommercialmanagementstructure and reshaped our operations We are aggressively reallocating resources to those areas best able to deliver profitablesustainablegrowthandreturnswithmuchmorefocuson new services and major markets The changes we are making will drive sharper prioritization a simpler portfolio faster decision-making more effective capital allocation and a strong focus on execution Our plans for 2019 are to continue streamlining our operations and inject new investments with a focus on generating growth
and synergies based on a group structure with multiple brands contributing to generating new potential and sustainable income andprofitsGoingforwardEgytranswilldeliverbestinclasstransport and logistics services with a strategy that rests on three pillars of performance portfolio and trust to deliver long term profitablegrowth Portfolio Achieving operational excellence by introducing high
quality services and improved customer experience through delivering new solutions in the transport and logistics industry designedtomeetthespecificneedsofeachcustomerEgytrans will continue to grow its market share with a view to vertical expansion to deliver innovative customer solutions
PerformanceEnsuringefficiencyinutilizationofworkingcapital and the best value delivered to shareholders and other stakeholders The company is therefore considering various investments in new areas in the transport and logistics sector to support this strategy while focusing on cost effectiveness and best practices to enhance returns Developing new services for existing and new customers is a key deliverable at the core of the strategy
Trust Continuously improving Egytransrsquo capabilities and internal systems while investing in human capital the companyrsquos most valuable asset and one of the most important factors in achieving our success and leading position
Outlook
Over the strategic plan period to 2020 we expect a single-digit CAGRforsalesasweseektoreducethestrongfluctuationsthat are the result of our cyclical project business We do so by continuingalongthestrategyofdiversificationofbusinesslinesand strengthening of core business Strong performances from our core business together with disciplined cost management are expected to enable the business to continue to achieve strong results
4Q18EARNINGS RELEASE 14
4Q18EARNINGS RELEASE
Egytrans Investor Relations
Contact Information Name Sherif HelmyTelephone +20 1015172111Email iregytranscomWebsite iregytranscom
About Egyptian Transport and Commercial Services Company (Egytrans) The Egyptian Transport and Commercial Services Company (Egytrans) is a leading integrated transport and logistics company with a comprehensive portfolio of services in Egypt With experience dating back to 1939 the company was established in 197 under the name Egytrans It has since developedanumberofsubsidiaryandaffiliatebrandsconsistingof Egytrans Depot Solutions (EDS) Egyptian Transportation amp Logistics SAE (ETAL) Wilhelmsen Ships Service Egypt and Scan Arabia Working across 9 branches in Egypt the mission of Egytrans is to make integrated transport easy safe and cost-effective Egytrans enables and facilitates global and national supply chains through its extensive range of services including SeaFreightAirFreightLandTransportCustomsClearanceProject Logistics Exhibitions and Storage Egytrans employs around 350 employees across its operations in Egypt and is publiclytradedontheEgyptianStockExchange(EGX)as[ETRSCA]forReutersand[ETRSEYEquity]forBloombergFormore information please visit ir egytranscom
Forward Looking Statements
Statements contained in this document that are not historical facts are based on current expectations estimates projections opinions and beliefs of Egytrans Such statements involve known and unknown risks uncertainties and other factors undue reliance should not be placed thereon Certain information contained herein constitutes ldquotargetsrdquo or ldquoforward-looking statementsrdquowhichcanbeidentifiedbytheuseofforward-looking terminology such as ldquomayrdquo ldquowillrdquo ldquoseekrdquo ldquoshouldrdquo ldquoexpectrdquo ldquoanticipaterdquo ldquoprojectrdquo ldquoestimaterdquo ldquointendrdquo ldquocontinuerdquo or ldquobelieverdquo or the negatives thereof or other variations thereon or comparable terminology Actual events or results or the actual performance of Egytrans may differ materially from those reflectedorcontemplatedinsuchtargetsorforward-lookingstatements The performance of Egytrans is subject to risks and uncertainties Various factors could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this document including worldwide economic trendstheeconomicandpoliticalclimateofEgypttheMiddleEast and changes in business strategy and various other factors
4Q18EARNINGS RELEASE 2
4Q18EARNINGS RELEASE
2018 Consolidated Financials Review 2018 represents a record year for Egytransrsquo regular business
showing growth rates above market with an aggregate of 34 increase Y-o-Y to reach EGP 128 million driven by our strategy of improving performance in key business sectors and thereby partially offsetting the expected decrease in revenues from cyclical projects Total revenues reached EGP 2779 million representing a decrease of 211 Y-o-Y The absence of high-margin mega projects business resulted in an increase in CostRevenues ratio by 11203 bps to record 693 in 2018 vis-agrave-vis 581 in 2017 This accordingly led to a decrease of 14434 bps in EBITDA margin to 177 vs 322 for both years respectively
NetProfitsafterTaxesfortheyeardeclinedby459reaching EGP 418 million down from EGP 773 million registeringaNetProfitMarginof150vis-a-visamarginof219in2017ThisdeclineinNetProfitswasmitigatedbyasignificantincreaseinrevenuesfromEgytransrsquoregular
business a decrease in SGampA due to our continued emphasis on cost and cash discipline positive Investment Income a considerable increase in Net Interest Income to EGP 55 millionlowerTaxProvisionsforEgytransampETALandfinallyathree-fold decrease in annual taxes
On the Balance Sheet front Accounts Receivable Days Sales Outstanding (DSO) has increased to 100 days in 2018 compared to 79 days in 2017 due to lower Revenues
In the meantime Cash balance decreased by 272 to register EGP 1059 million by end of 2018 from EGP 1455 million by end of 2017 due to the payment of dividends as well as purchase of new company headquarters tax payments and buy back of treasury shares amounting to 2215 million shares in 4Q18
Meanwhilefinancialleveragerecorded36in2018versusnil a year ago due to leasing 5 new trucks for the land transport pilot project as well as a loan for EGP 125 million to purchase the new HQ for Egytrans in the 5th Settlement (with DE ratio of 50-50)
15
20
25
30
35
20182017
322
177
EBITDA Margin
15
20
25
20182017
219
150
Net Profit Margin
4Q18EARNINGS RELEASE 3
4Q18EARNINGS RELEASE
2018 Operational Review On a macroeconomic level we have witnessed a more
stable operating market throughout 2018 as a result of thegovernmentrsquosfiscalandmonetarypolicyvisibleindecreasedinflationandavailabilityofforeigncurrenciesespeciallyUSDinthebanksdespitesomefluctuationinFXrates
In 3Q18 Egytrans signed a new contract for West Cairo and Assiut-Walidiya power stations with estimated total revenues of EGP 40 million The project commenced work in 3Q18 and will extend for 6 months during which all transport logistics and installation services will be performed by Egytrans
The successful completion of the majority of mega project works resulted in an expected slowdown in our operations 2018 Revenues from ETAL whose core business is projects and therefore cyclical declined as a result by 557 thereby negatively impacting the overall performance of Egytrans
thereby ameliorating negative impact of cyclical nature of projects on the bottom line Our continued focus on performanceandportfoliodiversificationhasreapedresultsas Egytransrsquo regular business lines exhibited exceptional growthduringtheyearwithStorageSeaFreightFreeZoneandAirFreightrevenuesincreasingby922424and13 respectively in 2018 compared to 2017
During 2018 Egytrans launched a new land transport project Early results in this area are encouraging and indicate potential opportunity for growth Going into 2019 Egytrans will continue to support this new business line withplanstodoubleitsfleetfrom5trucksto10truckswithanestimatedinvestmentcostofLE8MillionOverthemedium term we will continue to build upon data received from this pilot project as part of our strategy to diversify and strengthen our services as this will ultimately drive sustainable long-term growth for the company
EDS signaled a Y-o-Y growth of 34 in its performance during 2018 The company continues on track holding 70 of the market share in ISO tank storage and cleaning solutions
Egytrans Separate Egytransrsquo separate revenues reached EGP 2426 million showing a 179 decline Y-o-Y In the meantime costs improved by 38 to EGP 1873 million and SGampA added 61 to EGP 288 million As a result EBITDA margin retreated 641 to EGP 265 million in 2018 from EGP 737 million in 2017NetProfitsafterTaxes decreased to EGP 355 million in 2018 vis-agrave-vis EGP 726 million a year agorepresentingNetProfitMarginsof146and246for both respective years Earnings per Share (EPS) reached EGP 091 for 2018 compared to 186 in 2017
Net Profit Before Taxes 6759384 6708075 2239081 -666 -669 95919951 42491769 -557
Taxes (4881674) 62092 (2636057) na -460 (23272608) (6967736) -701Net Profit After Taxes 1877710 6770167 (396976) na na 72647343 35524033 -511
Egytrans Separate
4Q18EARNINGS RELEASE 7
4Q18EARNINGS RELEASE
286
211135
91
67
65
53
4132 11 09
Land Transport
Storage (Free Zone)
Unloading
Storage (Others)
Sea Freight
Extra Services
Storage (Adabeya)
Customs Clearance
Air Freight
Other Revenues
Transit
Revenues by line of business 2018
Revenues by line of business 2017
478
149
140
47
44
42
3523 19 12 09
Land Transport
Unloading
Storage (Free Zone)
Extra Services
Sea Freight
Storage (Adabeya)
Customs Clearance
Air Freight
Storage (Others)
Transit
Other Revenues
Revenues contribution amp growth by line of business
Revenues contribution amp growth by branch
Sea Fr
eight
Air Frei
ght
Custo
ms Clea
rance
Unload
ing
Extra S
ervice
s
Land
Tran
sport
Storag
e (Adab
eya)
Storag
e (Fre
e Zon
e)
Storag
e (Oth
er)
Transit
Others
-100
0
100
200
300
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
2017 2018 Change
-100
-80
-60
-40
-20
0
20
40
60
80
100
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
100000000
110000000
2017 2018 Change
4Q18EARNINGS RELEASE 8
4Q18EARNINGS RELEASE
ETAL Egyptian Transport amp Logistics (ETAL) a fully owned subsidiary of Egytrans executes specialized transport and installation of cargos with exceptional weight and dimensions for large projects in addition to other operations The company recorded 557 Y-o-Y lower Revenues of EGP175millionMeanwhileNetProfitsafterTaxesrecorded a 575 drop Y-o-Y to EGP 57 million in 2018 following a 59 reduction in Taxes to EGP 17 million compared to EGP 18 million a year ago
IS ComparisonItem (In EGP) 4Q17 3Q18 4Q18 QoQ YoY 2017 2018 YoYRevenues 1226455 2515000 4600150 829 2751 39436558 17488189 -557Costs (911413) (1148794) (2060143) 793 1260 (10226926) (5725651) -440Gross Profit 315042 1366206 2540007 859 7062 29209632 11762538 -597SGampA (1654794) (857354) (984777) 149 -405 (4001979) (4080385) 20EBITDA (1339752) 508852 1555230 na na 25207653 7682153 -695Depreciation (294228) (479869) (498742) 39 695 (1928826) (1227862) -363EBIT (1633980) 28983 1056488 na na 23278827 6454291 -723Net Interest Income 307980 155044 134651 -132 -563 1012959 958788 -53FXGainLoss 6812 2010 (3105) na na 88328 (2617) naSocial Insurance Expense 0 0 (18635) nm nm 0 (18635) nmOthers (4921286) 0 49080 nm na (4917286) 72630 naNet Profit Before Taxes (6240474) 186037 1218479 5550 na 19462828 7464457 -616Taxes 128033 1323947 (388372) na na (5617521) (1793346) -681
Net Profit After Taxes (6112441) 1509984 830107 -450 na 13845307 5671111 -590
ETAL
4Q18EARNINGS RELEASE 10
4Q18EARNINGS RELEASE
EDS Egytrans Depot Solutions (EDS) a fully owned subsidiary of Egytrans specializing in storing cleaning and repairing liquid bulk cargo containers (ISO Tanks) recorded a 138 increase in its 2018 Net ProfitsafterTaxestoUSD0432 million vis-a-vis USD 0379 million in 2017 On another note Revenues recorded an increase of 34 to USD 0998 million as opposed to USD 0965 million in 2017
Buying Treasury Shares in 4Q18 Based on Egytrans BoDrsquos decision dated 1-Oct-18 and due to our belief that the companyrsquos shares were undervalued and didnotreflectthecompanyrsquosfuturepotentialoritsstrongcompetitive position the company started the process to buy back2215500ofitsfreefloatsharesOPRwasopenedbyEGXatafixedpriceofEGP72pershare(15premiumoverthe market price of EGP 622) for an aggregate amount of EGP 159 million The transaction took place during the period from 1-Oct-18 until 11-Oct-18The offer was subscribed only 13 x with shareholders offering 28millionEgytranssharesontheEGXagainstthe22millionsharesofthebuybackThisweakresponsereflectstheshareholdersrsquo belief in the companyrsquos performance and future potentialandintheoverallrecoveryofEGX
the stock outperformed all the indices during the treasury shares purchasing period
4Q18EARNINGS RELEASE 13
4Q18EARNINGS RELEASE
Future Outlook We are operating in a fast-changing environment with potential for growth The global transport and logistics market is growing Looking forward the market is projected to reach a value of US$ 1374 Billion by 2023 registering a CAGR of 73 during 2018-2023 Today the industry is entering a period of significantchangebringingopportunitiesandchallengesAsnew technological solutions come into everyday use driven by market trends the sector has been undergoing an important transformation At no point in recent history have we witnessed such a large degree of political economic social technological environmentalandlegalchangesinfluencingthissegmentoftheeconomy
Our strategic responseWe have analyzed each of these forces in detail taking into account their driving trends as well as the maturity of solutions emerging in the market as a response Our strategy is designed to respond to this changing environment To bring differentiated high-quality solutions and services to our customers with our various business lines technical know-how and talented people Our long-term priorities of Portfolio Performance and Trust will help us to deliver our strategyIn 2018 Egytrans refocused its business to make it stronger and more competitive in order to deliver improved sustainable returnsWehavesimplifiedourcommercialmanagementstructure and reshaped our operations We are aggressively reallocating resources to those areas best able to deliver profitablesustainablegrowthandreturnswithmuchmorefocuson new services and major markets The changes we are making will drive sharper prioritization a simpler portfolio faster decision-making more effective capital allocation and a strong focus on execution Our plans for 2019 are to continue streamlining our operations and inject new investments with a focus on generating growth
and synergies based on a group structure with multiple brands contributing to generating new potential and sustainable income andprofitsGoingforwardEgytranswilldeliverbestinclasstransport and logistics services with a strategy that rests on three pillars of performance portfolio and trust to deliver long term profitablegrowth Portfolio Achieving operational excellence by introducing high
quality services and improved customer experience through delivering new solutions in the transport and logistics industry designedtomeetthespecificneedsofeachcustomerEgytrans will continue to grow its market share with a view to vertical expansion to deliver innovative customer solutions
PerformanceEnsuringefficiencyinutilizationofworkingcapital and the best value delivered to shareholders and other stakeholders The company is therefore considering various investments in new areas in the transport and logistics sector to support this strategy while focusing on cost effectiveness and best practices to enhance returns Developing new services for existing and new customers is a key deliverable at the core of the strategy
Trust Continuously improving Egytransrsquo capabilities and internal systems while investing in human capital the companyrsquos most valuable asset and one of the most important factors in achieving our success and leading position
Outlook
Over the strategic plan period to 2020 we expect a single-digit CAGRforsalesasweseektoreducethestrongfluctuationsthat are the result of our cyclical project business We do so by continuingalongthestrategyofdiversificationofbusinesslinesand strengthening of core business Strong performances from our core business together with disciplined cost management are expected to enable the business to continue to achieve strong results
4Q18EARNINGS RELEASE 14
4Q18EARNINGS RELEASE
Egytrans Investor Relations
Contact Information Name Sherif HelmyTelephone +20 1015172111Email iregytranscomWebsite iregytranscom
About Egyptian Transport and Commercial Services Company (Egytrans) The Egyptian Transport and Commercial Services Company (Egytrans) is a leading integrated transport and logistics company with a comprehensive portfolio of services in Egypt With experience dating back to 1939 the company was established in 197 under the name Egytrans It has since developedanumberofsubsidiaryandaffiliatebrandsconsistingof Egytrans Depot Solutions (EDS) Egyptian Transportation amp Logistics SAE (ETAL) Wilhelmsen Ships Service Egypt and Scan Arabia Working across 9 branches in Egypt the mission of Egytrans is to make integrated transport easy safe and cost-effective Egytrans enables and facilitates global and national supply chains through its extensive range of services including SeaFreightAirFreightLandTransportCustomsClearanceProject Logistics Exhibitions and Storage Egytrans employs around 350 employees across its operations in Egypt and is publiclytradedontheEgyptianStockExchange(EGX)as[ETRSCA]forReutersand[ETRSEYEquity]forBloombergFormore information please visit ir egytranscom
Forward Looking Statements
Statements contained in this document that are not historical facts are based on current expectations estimates projections opinions and beliefs of Egytrans Such statements involve known and unknown risks uncertainties and other factors undue reliance should not be placed thereon Certain information contained herein constitutes ldquotargetsrdquo or ldquoforward-looking statementsrdquowhichcanbeidentifiedbytheuseofforward-looking terminology such as ldquomayrdquo ldquowillrdquo ldquoseekrdquo ldquoshouldrdquo ldquoexpectrdquo ldquoanticipaterdquo ldquoprojectrdquo ldquoestimaterdquo ldquointendrdquo ldquocontinuerdquo or ldquobelieverdquo or the negatives thereof or other variations thereon or comparable terminology Actual events or results or the actual performance of Egytrans may differ materially from those reflectedorcontemplatedinsuchtargetsorforward-lookingstatements The performance of Egytrans is subject to risks and uncertainties Various factors could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this document including worldwide economic trendstheeconomicandpoliticalclimateofEgypttheMiddleEast and changes in business strategy and various other factors
4Q18EARNINGS RELEASE 3
4Q18EARNINGS RELEASE
2018 Operational Review On a macroeconomic level we have witnessed a more
stable operating market throughout 2018 as a result of thegovernmentrsquosfiscalandmonetarypolicyvisibleindecreasedinflationandavailabilityofforeigncurrenciesespeciallyUSDinthebanksdespitesomefluctuationinFXrates
In 3Q18 Egytrans signed a new contract for West Cairo and Assiut-Walidiya power stations with estimated total revenues of EGP 40 million The project commenced work in 3Q18 and will extend for 6 months during which all transport logistics and installation services will be performed by Egytrans
The successful completion of the majority of mega project works resulted in an expected slowdown in our operations 2018 Revenues from ETAL whose core business is projects and therefore cyclical declined as a result by 557 thereby negatively impacting the overall performance of Egytrans
thereby ameliorating negative impact of cyclical nature of projects on the bottom line Our continued focus on performanceandportfoliodiversificationhasreapedresultsas Egytransrsquo regular business lines exhibited exceptional growthduringtheyearwithStorageSeaFreightFreeZoneandAirFreightrevenuesincreasingby922424and13 respectively in 2018 compared to 2017
During 2018 Egytrans launched a new land transport project Early results in this area are encouraging and indicate potential opportunity for growth Going into 2019 Egytrans will continue to support this new business line withplanstodoubleitsfleetfrom5trucksto10truckswithanestimatedinvestmentcostofLE8MillionOverthemedium term we will continue to build upon data received from this pilot project as part of our strategy to diversify and strengthen our services as this will ultimately drive sustainable long-term growth for the company
EDS signaled a Y-o-Y growth of 34 in its performance during 2018 The company continues on track holding 70 of the market share in ISO tank storage and cleaning solutions
Egytrans Separate Egytransrsquo separate revenues reached EGP 2426 million showing a 179 decline Y-o-Y In the meantime costs improved by 38 to EGP 1873 million and SGampA added 61 to EGP 288 million As a result EBITDA margin retreated 641 to EGP 265 million in 2018 from EGP 737 million in 2017NetProfitsafterTaxes decreased to EGP 355 million in 2018 vis-agrave-vis EGP 726 million a year agorepresentingNetProfitMarginsof146and246for both respective years Earnings per Share (EPS) reached EGP 091 for 2018 compared to 186 in 2017
Net Profit Before Taxes 6759384 6708075 2239081 -666 -669 95919951 42491769 -557
Taxes (4881674) 62092 (2636057) na -460 (23272608) (6967736) -701Net Profit After Taxes 1877710 6770167 (396976) na na 72647343 35524033 -511
Egytrans Separate
4Q18EARNINGS RELEASE 7
4Q18EARNINGS RELEASE
286
211135
91
67
65
53
4132 11 09
Land Transport
Storage (Free Zone)
Unloading
Storage (Others)
Sea Freight
Extra Services
Storage (Adabeya)
Customs Clearance
Air Freight
Other Revenues
Transit
Revenues by line of business 2018
Revenues by line of business 2017
478
149
140
47
44
42
3523 19 12 09
Land Transport
Unloading
Storage (Free Zone)
Extra Services
Sea Freight
Storage (Adabeya)
Customs Clearance
Air Freight
Storage (Others)
Transit
Other Revenues
Revenues contribution amp growth by line of business
Revenues contribution amp growth by branch
Sea Fr
eight
Air Frei
ght
Custo
ms Clea
rance
Unload
ing
Extra S
ervice
s
Land
Tran
sport
Storag
e (Adab
eya)
Storag
e (Fre
e Zon
e)
Storag
e (Oth
er)
Transit
Others
-100
0
100
200
300
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
2017 2018 Change
-100
-80
-60
-40
-20
0
20
40
60
80
100
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
100000000
110000000
2017 2018 Change
4Q18EARNINGS RELEASE 8
4Q18EARNINGS RELEASE
ETAL Egyptian Transport amp Logistics (ETAL) a fully owned subsidiary of Egytrans executes specialized transport and installation of cargos with exceptional weight and dimensions for large projects in addition to other operations The company recorded 557 Y-o-Y lower Revenues of EGP175millionMeanwhileNetProfitsafterTaxesrecorded a 575 drop Y-o-Y to EGP 57 million in 2018 following a 59 reduction in Taxes to EGP 17 million compared to EGP 18 million a year ago
IS ComparisonItem (In EGP) 4Q17 3Q18 4Q18 QoQ YoY 2017 2018 YoYRevenues 1226455 2515000 4600150 829 2751 39436558 17488189 -557Costs (911413) (1148794) (2060143) 793 1260 (10226926) (5725651) -440Gross Profit 315042 1366206 2540007 859 7062 29209632 11762538 -597SGampA (1654794) (857354) (984777) 149 -405 (4001979) (4080385) 20EBITDA (1339752) 508852 1555230 na na 25207653 7682153 -695Depreciation (294228) (479869) (498742) 39 695 (1928826) (1227862) -363EBIT (1633980) 28983 1056488 na na 23278827 6454291 -723Net Interest Income 307980 155044 134651 -132 -563 1012959 958788 -53FXGainLoss 6812 2010 (3105) na na 88328 (2617) naSocial Insurance Expense 0 0 (18635) nm nm 0 (18635) nmOthers (4921286) 0 49080 nm na (4917286) 72630 naNet Profit Before Taxes (6240474) 186037 1218479 5550 na 19462828 7464457 -616Taxes 128033 1323947 (388372) na na (5617521) (1793346) -681
Net Profit After Taxes (6112441) 1509984 830107 -450 na 13845307 5671111 -590
ETAL
4Q18EARNINGS RELEASE 10
4Q18EARNINGS RELEASE
EDS Egytrans Depot Solutions (EDS) a fully owned subsidiary of Egytrans specializing in storing cleaning and repairing liquid bulk cargo containers (ISO Tanks) recorded a 138 increase in its 2018 Net ProfitsafterTaxestoUSD0432 million vis-a-vis USD 0379 million in 2017 On another note Revenues recorded an increase of 34 to USD 0998 million as opposed to USD 0965 million in 2017
Buying Treasury Shares in 4Q18 Based on Egytrans BoDrsquos decision dated 1-Oct-18 and due to our belief that the companyrsquos shares were undervalued and didnotreflectthecompanyrsquosfuturepotentialoritsstrongcompetitive position the company started the process to buy back2215500ofitsfreefloatsharesOPRwasopenedbyEGXatafixedpriceofEGP72pershare(15premiumoverthe market price of EGP 622) for an aggregate amount of EGP 159 million The transaction took place during the period from 1-Oct-18 until 11-Oct-18The offer was subscribed only 13 x with shareholders offering 28millionEgytranssharesontheEGXagainstthe22millionsharesofthebuybackThisweakresponsereflectstheshareholdersrsquo belief in the companyrsquos performance and future potentialandintheoverallrecoveryofEGX
the stock outperformed all the indices during the treasury shares purchasing period
4Q18EARNINGS RELEASE 13
4Q18EARNINGS RELEASE
Future Outlook We are operating in a fast-changing environment with potential for growth The global transport and logistics market is growing Looking forward the market is projected to reach a value of US$ 1374 Billion by 2023 registering a CAGR of 73 during 2018-2023 Today the industry is entering a period of significantchangebringingopportunitiesandchallengesAsnew technological solutions come into everyday use driven by market trends the sector has been undergoing an important transformation At no point in recent history have we witnessed such a large degree of political economic social technological environmentalandlegalchangesinfluencingthissegmentoftheeconomy
Our strategic responseWe have analyzed each of these forces in detail taking into account their driving trends as well as the maturity of solutions emerging in the market as a response Our strategy is designed to respond to this changing environment To bring differentiated high-quality solutions and services to our customers with our various business lines technical know-how and talented people Our long-term priorities of Portfolio Performance and Trust will help us to deliver our strategyIn 2018 Egytrans refocused its business to make it stronger and more competitive in order to deliver improved sustainable returnsWehavesimplifiedourcommercialmanagementstructure and reshaped our operations We are aggressively reallocating resources to those areas best able to deliver profitablesustainablegrowthandreturnswithmuchmorefocuson new services and major markets The changes we are making will drive sharper prioritization a simpler portfolio faster decision-making more effective capital allocation and a strong focus on execution Our plans for 2019 are to continue streamlining our operations and inject new investments with a focus on generating growth
and synergies based on a group structure with multiple brands contributing to generating new potential and sustainable income andprofitsGoingforwardEgytranswilldeliverbestinclasstransport and logistics services with a strategy that rests on three pillars of performance portfolio and trust to deliver long term profitablegrowth Portfolio Achieving operational excellence by introducing high
quality services and improved customer experience through delivering new solutions in the transport and logistics industry designedtomeetthespecificneedsofeachcustomerEgytrans will continue to grow its market share with a view to vertical expansion to deliver innovative customer solutions
PerformanceEnsuringefficiencyinutilizationofworkingcapital and the best value delivered to shareholders and other stakeholders The company is therefore considering various investments in new areas in the transport and logistics sector to support this strategy while focusing on cost effectiveness and best practices to enhance returns Developing new services for existing and new customers is a key deliverable at the core of the strategy
Trust Continuously improving Egytransrsquo capabilities and internal systems while investing in human capital the companyrsquos most valuable asset and one of the most important factors in achieving our success and leading position
Outlook
Over the strategic plan period to 2020 we expect a single-digit CAGRforsalesasweseektoreducethestrongfluctuationsthat are the result of our cyclical project business We do so by continuingalongthestrategyofdiversificationofbusinesslinesand strengthening of core business Strong performances from our core business together with disciplined cost management are expected to enable the business to continue to achieve strong results
4Q18EARNINGS RELEASE 14
4Q18EARNINGS RELEASE
Egytrans Investor Relations
Contact Information Name Sherif HelmyTelephone +20 1015172111Email iregytranscomWebsite iregytranscom
About Egyptian Transport and Commercial Services Company (Egytrans) The Egyptian Transport and Commercial Services Company (Egytrans) is a leading integrated transport and logistics company with a comprehensive portfolio of services in Egypt With experience dating back to 1939 the company was established in 197 under the name Egytrans It has since developedanumberofsubsidiaryandaffiliatebrandsconsistingof Egytrans Depot Solutions (EDS) Egyptian Transportation amp Logistics SAE (ETAL) Wilhelmsen Ships Service Egypt and Scan Arabia Working across 9 branches in Egypt the mission of Egytrans is to make integrated transport easy safe and cost-effective Egytrans enables and facilitates global and national supply chains through its extensive range of services including SeaFreightAirFreightLandTransportCustomsClearanceProject Logistics Exhibitions and Storage Egytrans employs around 350 employees across its operations in Egypt and is publiclytradedontheEgyptianStockExchange(EGX)as[ETRSCA]forReutersand[ETRSEYEquity]forBloombergFormore information please visit ir egytranscom
Forward Looking Statements
Statements contained in this document that are not historical facts are based on current expectations estimates projections opinions and beliefs of Egytrans Such statements involve known and unknown risks uncertainties and other factors undue reliance should not be placed thereon Certain information contained herein constitutes ldquotargetsrdquo or ldquoforward-looking statementsrdquowhichcanbeidentifiedbytheuseofforward-looking terminology such as ldquomayrdquo ldquowillrdquo ldquoseekrdquo ldquoshouldrdquo ldquoexpectrdquo ldquoanticipaterdquo ldquoprojectrdquo ldquoestimaterdquo ldquointendrdquo ldquocontinuerdquo or ldquobelieverdquo or the negatives thereof or other variations thereon or comparable terminology Actual events or results or the actual performance of Egytrans may differ materially from those reflectedorcontemplatedinsuchtargetsorforward-lookingstatements The performance of Egytrans is subject to risks and uncertainties Various factors could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this document including worldwide economic trendstheeconomicandpoliticalclimateofEgypttheMiddleEast and changes in business strategy and various other factors
Egytrans Separate Egytransrsquo separate revenues reached EGP 2426 million showing a 179 decline Y-o-Y In the meantime costs improved by 38 to EGP 1873 million and SGampA added 61 to EGP 288 million As a result EBITDA margin retreated 641 to EGP 265 million in 2018 from EGP 737 million in 2017NetProfitsafterTaxes decreased to EGP 355 million in 2018 vis-agrave-vis EGP 726 million a year agorepresentingNetProfitMarginsof146and246for both respective years Earnings per Share (EPS) reached EGP 091 for 2018 compared to 186 in 2017
Net Profit Before Taxes 6759384 6708075 2239081 -666 -669 95919951 42491769 -557
Taxes (4881674) 62092 (2636057) na -460 (23272608) (6967736) -701Net Profit After Taxes 1877710 6770167 (396976) na na 72647343 35524033 -511
Egytrans Separate
4Q18EARNINGS RELEASE 7
4Q18EARNINGS RELEASE
286
211135
91
67
65
53
4132 11 09
Land Transport
Storage (Free Zone)
Unloading
Storage (Others)
Sea Freight
Extra Services
Storage (Adabeya)
Customs Clearance
Air Freight
Other Revenues
Transit
Revenues by line of business 2018
Revenues by line of business 2017
478
149
140
47
44
42
3523 19 12 09
Land Transport
Unloading
Storage (Free Zone)
Extra Services
Sea Freight
Storage (Adabeya)
Customs Clearance
Air Freight
Storage (Others)
Transit
Other Revenues
Revenues contribution amp growth by line of business
Revenues contribution amp growth by branch
Sea Fr
eight
Air Frei
ght
Custo
ms Clea
rance
Unload
ing
Extra S
ervice
s
Land
Tran
sport
Storag
e (Adab
eya)
Storag
e (Fre
e Zon
e)
Storag
e (Oth
er)
Transit
Others
-100
0
100
200
300
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
2017 2018 Change
-100
-80
-60
-40
-20
0
20
40
60
80
100
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
100000000
110000000
2017 2018 Change
4Q18EARNINGS RELEASE 8
4Q18EARNINGS RELEASE
ETAL Egyptian Transport amp Logistics (ETAL) a fully owned subsidiary of Egytrans executes specialized transport and installation of cargos with exceptional weight and dimensions for large projects in addition to other operations The company recorded 557 Y-o-Y lower Revenues of EGP175millionMeanwhileNetProfitsafterTaxesrecorded a 575 drop Y-o-Y to EGP 57 million in 2018 following a 59 reduction in Taxes to EGP 17 million compared to EGP 18 million a year ago
IS ComparisonItem (In EGP) 4Q17 3Q18 4Q18 QoQ YoY 2017 2018 YoYRevenues 1226455 2515000 4600150 829 2751 39436558 17488189 -557Costs (911413) (1148794) (2060143) 793 1260 (10226926) (5725651) -440Gross Profit 315042 1366206 2540007 859 7062 29209632 11762538 -597SGampA (1654794) (857354) (984777) 149 -405 (4001979) (4080385) 20EBITDA (1339752) 508852 1555230 na na 25207653 7682153 -695Depreciation (294228) (479869) (498742) 39 695 (1928826) (1227862) -363EBIT (1633980) 28983 1056488 na na 23278827 6454291 -723Net Interest Income 307980 155044 134651 -132 -563 1012959 958788 -53FXGainLoss 6812 2010 (3105) na na 88328 (2617) naSocial Insurance Expense 0 0 (18635) nm nm 0 (18635) nmOthers (4921286) 0 49080 nm na (4917286) 72630 naNet Profit Before Taxes (6240474) 186037 1218479 5550 na 19462828 7464457 -616Taxes 128033 1323947 (388372) na na (5617521) (1793346) -681
Net Profit After Taxes (6112441) 1509984 830107 -450 na 13845307 5671111 -590
ETAL
4Q18EARNINGS RELEASE 10
4Q18EARNINGS RELEASE
EDS Egytrans Depot Solutions (EDS) a fully owned subsidiary of Egytrans specializing in storing cleaning and repairing liquid bulk cargo containers (ISO Tanks) recorded a 138 increase in its 2018 Net ProfitsafterTaxestoUSD0432 million vis-a-vis USD 0379 million in 2017 On another note Revenues recorded an increase of 34 to USD 0998 million as opposed to USD 0965 million in 2017
Buying Treasury Shares in 4Q18 Based on Egytrans BoDrsquos decision dated 1-Oct-18 and due to our belief that the companyrsquos shares were undervalued and didnotreflectthecompanyrsquosfuturepotentialoritsstrongcompetitive position the company started the process to buy back2215500ofitsfreefloatsharesOPRwasopenedbyEGXatafixedpriceofEGP72pershare(15premiumoverthe market price of EGP 622) for an aggregate amount of EGP 159 million The transaction took place during the period from 1-Oct-18 until 11-Oct-18The offer was subscribed only 13 x with shareholders offering 28millionEgytranssharesontheEGXagainstthe22millionsharesofthebuybackThisweakresponsereflectstheshareholdersrsquo belief in the companyrsquos performance and future potentialandintheoverallrecoveryofEGX
the stock outperformed all the indices during the treasury shares purchasing period
4Q18EARNINGS RELEASE 13
4Q18EARNINGS RELEASE
Future Outlook We are operating in a fast-changing environment with potential for growth The global transport and logistics market is growing Looking forward the market is projected to reach a value of US$ 1374 Billion by 2023 registering a CAGR of 73 during 2018-2023 Today the industry is entering a period of significantchangebringingopportunitiesandchallengesAsnew technological solutions come into everyday use driven by market trends the sector has been undergoing an important transformation At no point in recent history have we witnessed such a large degree of political economic social technological environmentalandlegalchangesinfluencingthissegmentoftheeconomy
Our strategic responseWe have analyzed each of these forces in detail taking into account their driving trends as well as the maturity of solutions emerging in the market as a response Our strategy is designed to respond to this changing environment To bring differentiated high-quality solutions and services to our customers with our various business lines technical know-how and talented people Our long-term priorities of Portfolio Performance and Trust will help us to deliver our strategyIn 2018 Egytrans refocused its business to make it stronger and more competitive in order to deliver improved sustainable returnsWehavesimplifiedourcommercialmanagementstructure and reshaped our operations We are aggressively reallocating resources to those areas best able to deliver profitablesustainablegrowthandreturnswithmuchmorefocuson new services and major markets The changes we are making will drive sharper prioritization a simpler portfolio faster decision-making more effective capital allocation and a strong focus on execution Our plans for 2019 are to continue streamlining our operations and inject new investments with a focus on generating growth
and synergies based on a group structure with multiple brands contributing to generating new potential and sustainable income andprofitsGoingforwardEgytranswilldeliverbestinclasstransport and logistics services with a strategy that rests on three pillars of performance portfolio and trust to deliver long term profitablegrowth Portfolio Achieving operational excellence by introducing high
quality services and improved customer experience through delivering new solutions in the transport and logistics industry designedtomeetthespecificneedsofeachcustomerEgytrans will continue to grow its market share with a view to vertical expansion to deliver innovative customer solutions
PerformanceEnsuringefficiencyinutilizationofworkingcapital and the best value delivered to shareholders and other stakeholders The company is therefore considering various investments in new areas in the transport and logistics sector to support this strategy while focusing on cost effectiveness and best practices to enhance returns Developing new services for existing and new customers is a key deliverable at the core of the strategy
Trust Continuously improving Egytransrsquo capabilities and internal systems while investing in human capital the companyrsquos most valuable asset and one of the most important factors in achieving our success and leading position
Outlook
Over the strategic plan period to 2020 we expect a single-digit CAGRforsalesasweseektoreducethestrongfluctuationsthat are the result of our cyclical project business We do so by continuingalongthestrategyofdiversificationofbusinesslinesand strengthening of core business Strong performances from our core business together with disciplined cost management are expected to enable the business to continue to achieve strong results
4Q18EARNINGS RELEASE 14
4Q18EARNINGS RELEASE
Egytrans Investor Relations
Contact Information Name Sherif HelmyTelephone +20 1015172111Email iregytranscomWebsite iregytranscom
About Egyptian Transport and Commercial Services Company (Egytrans) The Egyptian Transport and Commercial Services Company (Egytrans) is a leading integrated transport and logistics company with a comprehensive portfolio of services in Egypt With experience dating back to 1939 the company was established in 197 under the name Egytrans It has since developedanumberofsubsidiaryandaffiliatebrandsconsistingof Egytrans Depot Solutions (EDS) Egyptian Transportation amp Logistics SAE (ETAL) Wilhelmsen Ships Service Egypt and Scan Arabia Working across 9 branches in Egypt the mission of Egytrans is to make integrated transport easy safe and cost-effective Egytrans enables and facilitates global and national supply chains through its extensive range of services including SeaFreightAirFreightLandTransportCustomsClearanceProject Logistics Exhibitions and Storage Egytrans employs around 350 employees across its operations in Egypt and is publiclytradedontheEgyptianStockExchange(EGX)as[ETRSCA]forReutersand[ETRSEYEquity]forBloombergFormore information please visit ir egytranscom
Forward Looking Statements
Statements contained in this document that are not historical facts are based on current expectations estimates projections opinions and beliefs of Egytrans Such statements involve known and unknown risks uncertainties and other factors undue reliance should not be placed thereon Certain information contained herein constitutes ldquotargetsrdquo or ldquoforward-looking statementsrdquowhichcanbeidentifiedbytheuseofforward-looking terminology such as ldquomayrdquo ldquowillrdquo ldquoseekrdquo ldquoshouldrdquo ldquoexpectrdquo ldquoanticipaterdquo ldquoprojectrdquo ldquoestimaterdquo ldquointendrdquo ldquocontinuerdquo or ldquobelieverdquo or the negatives thereof or other variations thereon or comparable terminology Actual events or results or the actual performance of Egytrans may differ materially from those reflectedorcontemplatedinsuchtargetsorforward-lookingstatements The performance of Egytrans is subject to risks and uncertainties Various factors could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this document including worldwide economic trendstheeconomicandpoliticalclimateofEgypttheMiddleEast and changes in business strategy and various other factors
4Q18EARNINGS RELEASE 5
4Q18EARNINGS RELEASE
Egytrans Separate Egytransrsquo separate revenues reached EGP 2426 million showing a 179 decline Y-o-Y In the meantime costs improved by 38 to EGP 1873 million and SGampA added 61 to EGP 288 million As a result EBITDA margin retreated 641 to EGP 265 million in 2018 from EGP 737 million in 2017NetProfitsafterTaxes decreased to EGP 355 million in 2018 vis-agrave-vis EGP 726 million a year agorepresentingNetProfitMarginsof146and246for both respective years Earnings per Share (EPS) reached EGP 091 for 2018 compared to 186 in 2017
Net Profit Before Taxes 6759384 6708075 2239081 -666 -669 95919951 42491769 -557
Taxes (4881674) 62092 (2636057) na -460 (23272608) (6967736) -701Net Profit After Taxes 1877710 6770167 (396976) na na 72647343 35524033 -511
Egytrans Separate
4Q18EARNINGS RELEASE 7
4Q18EARNINGS RELEASE
286
211135
91
67
65
53
4132 11 09
Land Transport
Storage (Free Zone)
Unloading
Storage (Others)
Sea Freight
Extra Services
Storage (Adabeya)
Customs Clearance
Air Freight
Other Revenues
Transit
Revenues by line of business 2018
Revenues by line of business 2017
478
149
140
47
44
42
3523 19 12 09
Land Transport
Unloading
Storage (Free Zone)
Extra Services
Sea Freight
Storage (Adabeya)
Customs Clearance
Air Freight
Storage (Others)
Transit
Other Revenues
Revenues contribution amp growth by line of business
Revenues contribution amp growth by branch
Sea Fr
eight
Air Frei
ght
Custo
ms Clea
rance
Unload
ing
Extra S
ervice
s
Land
Tran
sport
Storag
e (Adab
eya)
Storag
e (Fre
e Zon
e)
Storag
e (Oth
er)
Transit
Others
-100
0
100
200
300
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
2017 2018 Change
-100
-80
-60
-40
-20
0
20
40
60
80
100
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
100000000
110000000
2017 2018 Change
4Q18EARNINGS RELEASE 8
4Q18EARNINGS RELEASE
ETAL Egyptian Transport amp Logistics (ETAL) a fully owned subsidiary of Egytrans executes specialized transport and installation of cargos with exceptional weight and dimensions for large projects in addition to other operations The company recorded 557 Y-o-Y lower Revenues of EGP175millionMeanwhileNetProfitsafterTaxesrecorded a 575 drop Y-o-Y to EGP 57 million in 2018 following a 59 reduction in Taxes to EGP 17 million compared to EGP 18 million a year ago
IS ComparisonItem (In EGP) 4Q17 3Q18 4Q18 QoQ YoY 2017 2018 YoYRevenues 1226455 2515000 4600150 829 2751 39436558 17488189 -557Costs (911413) (1148794) (2060143) 793 1260 (10226926) (5725651) -440Gross Profit 315042 1366206 2540007 859 7062 29209632 11762538 -597SGampA (1654794) (857354) (984777) 149 -405 (4001979) (4080385) 20EBITDA (1339752) 508852 1555230 na na 25207653 7682153 -695Depreciation (294228) (479869) (498742) 39 695 (1928826) (1227862) -363EBIT (1633980) 28983 1056488 na na 23278827 6454291 -723Net Interest Income 307980 155044 134651 -132 -563 1012959 958788 -53FXGainLoss 6812 2010 (3105) na na 88328 (2617) naSocial Insurance Expense 0 0 (18635) nm nm 0 (18635) nmOthers (4921286) 0 49080 nm na (4917286) 72630 naNet Profit Before Taxes (6240474) 186037 1218479 5550 na 19462828 7464457 -616Taxes 128033 1323947 (388372) na na (5617521) (1793346) -681
Net Profit After Taxes (6112441) 1509984 830107 -450 na 13845307 5671111 -590
ETAL
4Q18EARNINGS RELEASE 10
4Q18EARNINGS RELEASE
EDS Egytrans Depot Solutions (EDS) a fully owned subsidiary of Egytrans specializing in storing cleaning and repairing liquid bulk cargo containers (ISO Tanks) recorded a 138 increase in its 2018 Net ProfitsafterTaxestoUSD0432 million vis-a-vis USD 0379 million in 2017 On another note Revenues recorded an increase of 34 to USD 0998 million as opposed to USD 0965 million in 2017
Buying Treasury Shares in 4Q18 Based on Egytrans BoDrsquos decision dated 1-Oct-18 and due to our belief that the companyrsquos shares were undervalued and didnotreflectthecompanyrsquosfuturepotentialoritsstrongcompetitive position the company started the process to buy back2215500ofitsfreefloatsharesOPRwasopenedbyEGXatafixedpriceofEGP72pershare(15premiumoverthe market price of EGP 622) for an aggregate amount of EGP 159 million The transaction took place during the period from 1-Oct-18 until 11-Oct-18The offer was subscribed only 13 x with shareholders offering 28millionEgytranssharesontheEGXagainstthe22millionsharesofthebuybackThisweakresponsereflectstheshareholdersrsquo belief in the companyrsquos performance and future potentialandintheoverallrecoveryofEGX
the stock outperformed all the indices during the treasury shares purchasing period
4Q18EARNINGS RELEASE 13
4Q18EARNINGS RELEASE
Future Outlook We are operating in a fast-changing environment with potential for growth The global transport and logistics market is growing Looking forward the market is projected to reach a value of US$ 1374 Billion by 2023 registering a CAGR of 73 during 2018-2023 Today the industry is entering a period of significantchangebringingopportunitiesandchallengesAsnew technological solutions come into everyday use driven by market trends the sector has been undergoing an important transformation At no point in recent history have we witnessed such a large degree of political economic social technological environmentalandlegalchangesinfluencingthissegmentoftheeconomy
Our strategic responseWe have analyzed each of these forces in detail taking into account their driving trends as well as the maturity of solutions emerging in the market as a response Our strategy is designed to respond to this changing environment To bring differentiated high-quality solutions and services to our customers with our various business lines technical know-how and talented people Our long-term priorities of Portfolio Performance and Trust will help us to deliver our strategyIn 2018 Egytrans refocused its business to make it stronger and more competitive in order to deliver improved sustainable returnsWehavesimplifiedourcommercialmanagementstructure and reshaped our operations We are aggressively reallocating resources to those areas best able to deliver profitablesustainablegrowthandreturnswithmuchmorefocuson new services and major markets The changes we are making will drive sharper prioritization a simpler portfolio faster decision-making more effective capital allocation and a strong focus on execution Our plans for 2019 are to continue streamlining our operations and inject new investments with a focus on generating growth
and synergies based on a group structure with multiple brands contributing to generating new potential and sustainable income andprofitsGoingforwardEgytranswilldeliverbestinclasstransport and logistics services with a strategy that rests on three pillars of performance portfolio and trust to deliver long term profitablegrowth Portfolio Achieving operational excellence by introducing high
quality services and improved customer experience through delivering new solutions in the transport and logistics industry designedtomeetthespecificneedsofeachcustomerEgytrans will continue to grow its market share with a view to vertical expansion to deliver innovative customer solutions
PerformanceEnsuringefficiencyinutilizationofworkingcapital and the best value delivered to shareholders and other stakeholders The company is therefore considering various investments in new areas in the transport and logistics sector to support this strategy while focusing on cost effectiveness and best practices to enhance returns Developing new services for existing and new customers is a key deliverable at the core of the strategy
Trust Continuously improving Egytransrsquo capabilities and internal systems while investing in human capital the companyrsquos most valuable asset and one of the most important factors in achieving our success and leading position
Outlook
Over the strategic plan period to 2020 we expect a single-digit CAGRforsalesasweseektoreducethestrongfluctuationsthat are the result of our cyclical project business We do so by continuingalongthestrategyofdiversificationofbusinesslinesand strengthening of core business Strong performances from our core business together with disciplined cost management are expected to enable the business to continue to achieve strong results
4Q18EARNINGS RELEASE 14
4Q18EARNINGS RELEASE
Egytrans Investor Relations
Contact Information Name Sherif HelmyTelephone +20 1015172111Email iregytranscomWebsite iregytranscom
About Egyptian Transport and Commercial Services Company (Egytrans) The Egyptian Transport and Commercial Services Company (Egytrans) is a leading integrated transport and logistics company with a comprehensive portfolio of services in Egypt With experience dating back to 1939 the company was established in 197 under the name Egytrans It has since developedanumberofsubsidiaryandaffiliatebrandsconsistingof Egytrans Depot Solutions (EDS) Egyptian Transportation amp Logistics SAE (ETAL) Wilhelmsen Ships Service Egypt and Scan Arabia Working across 9 branches in Egypt the mission of Egytrans is to make integrated transport easy safe and cost-effective Egytrans enables and facilitates global and national supply chains through its extensive range of services including SeaFreightAirFreightLandTransportCustomsClearanceProject Logistics Exhibitions and Storage Egytrans employs around 350 employees across its operations in Egypt and is publiclytradedontheEgyptianStockExchange(EGX)as[ETRSCA]forReutersand[ETRSEYEquity]forBloombergFormore information please visit ir egytranscom
Forward Looking Statements
Statements contained in this document that are not historical facts are based on current expectations estimates projections opinions and beliefs of Egytrans Such statements involve known and unknown risks uncertainties and other factors undue reliance should not be placed thereon Certain information contained herein constitutes ldquotargetsrdquo or ldquoforward-looking statementsrdquowhichcanbeidentifiedbytheuseofforward-looking terminology such as ldquomayrdquo ldquowillrdquo ldquoseekrdquo ldquoshouldrdquo ldquoexpectrdquo ldquoanticipaterdquo ldquoprojectrdquo ldquoestimaterdquo ldquointendrdquo ldquocontinuerdquo or ldquobelieverdquo or the negatives thereof or other variations thereon or comparable terminology Actual events or results or the actual performance of Egytrans may differ materially from those reflectedorcontemplatedinsuchtargetsorforward-lookingstatements The performance of Egytrans is subject to risks and uncertainties Various factors could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this document including worldwide economic trendstheeconomicandpoliticalclimateofEgypttheMiddleEast and changes in business strategy and various other factors
Net Profit Before Taxes 6759384 6708075 2239081 -666 -669 95919951 42491769 -557
Taxes (4881674) 62092 (2636057) na -460 (23272608) (6967736) -701Net Profit After Taxes 1877710 6770167 (396976) na na 72647343 35524033 -511
Egytrans Separate
4Q18EARNINGS RELEASE 7
4Q18EARNINGS RELEASE
286
211135
91
67
65
53
4132 11 09
Land Transport
Storage (Free Zone)
Unloading
Storage (Others)
Sea Freight
Extra Services
Storage (Adabeya)
Customs Clearance
Air Freight
Other Revenues
Transit
Revenues by line of business 2018
Revenues by line of business 2017
478
149
140
47
44
42
3523 19 12 09
Land Transport
Unloading
Storage (Free Zone)
Extra Services
Sea Freight
Storage (Adabeya)
Customs Clearance
Air Freight
Storage (Others)
Transit
Other Revenues
Revenues contribution amp growth by line of business
Revenues contribution amp growth by branch
Sea Fr
eight
Air Frei
ght
Custo
ms Clea
rance
Unload
ing
Extra S
ervice
s
Land
Tran
sport
Storag
e (Adab
eya)
Storag
e (Fre
e Zon
e)
Storag
e (Oth
er)
Transit
Others
-100
0
100
200
300
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
2017 2018 Change
-100
-80
-60
-40
-20
0
20
40
60
80
100
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
100000000
110000000
2017 2018 Change
4Q18EARNINGS RELEASE 8
4Q18EARNINGS RELEASE
ETAL Egyptian Transport amp Logistics (ETAL) a fully owned subsidiary of Egytrans executes specialized transport and installation of cargos with exceptional weight and dimensions for large projects in addition to other operations The company recorded 557 Y-o-Y lower Revenues of EGP175millionMeanwhileNetProfitsafterTaxesrecorded a 575 drop Y-o-Y to EGP 57 million in 2018 following a 59 reduction in Taxes to EGP 17 million compared to EGP 18 million a year ago
IS ComparisonItem (In EGP) 4Q17 3Q18 4Q18 QoQ YoY 2017 2018 YoYRevenues 1226455 2515000 4600150 829 2751 39436558 17488189 -557Costs (911413) (1148794) (2060143) 793 1260 (10226926) (5725651) -440Gross Profit 315042 1366206 2540007 859 7062 29209632 11762538 -597SGampA (1654794) (857354) (984777) 149 -405 (4001979) (4080385) 20EBITDA (1339752) 508852 1555230 na na 25207653 7682153 -695Depreciation (294228) (479869) (498742) 39 695 (1928826) (1227862) -363EBIT (1633980) 28983 1056488 na na 23278827 6454291 -723Net Interest Income 307980 155044 134651 -132 -563 1012959 958788 -53FXGainLoss 6812 2010 (3105) na na 88328 (2617) naSocial Insurance Expense 0 0 (18635) nm nm 0 (18635) nmOthers (4921286) 0 49080 nm na (4917286) 72630 naNet Profit Before Taxes (6240474) 186037 1218479 5550 na 19462828 7464457 -616Taxes 128033 1323947 (388372) na na (5617521) (1793346) -681
Net Profit After Taxes (6112441) 1509984 830107 -450 na 13845307 5671111 -590
ETAL
4Q18EARNINGS RELEASE 10
4Q18EARNINGS RELEASE
EDS Egytrans Depot Solutions (EDS) a fully owned subsidiary of Egytrans specializing in storing cleaning and repairing liquid bulk cargo containers (ISO Tanks) recorded a 138 increase in its 2018 Net ProfitsafterTaxestoUSD0432 million vis-a-vis USD 0379 million in 2017 On another note Revenues recorded an increase of 34 to USD 0998 million as opposed to USD 0965 million in 2017
Buying Treasury Shares in 4Q18 Based on Egytrans BoDrsquos decision dated 1-Oct-18 and due to our belief that the companyrsquos shares were undervalued and didnotreflectthecompanyrsquosfuturepotentialoritsstrongcompetitive position the company started the process to buy back2215500ofitsfreefloatsharesOPRwasopenedbyEGXatafixedpriceofEGP72pershare(15premiumoverthe market price of EGP 622) for an aggregate amount of EGP 159 million The transaction took place during the period from 1-Oct-18 until 11-Oct-18The offer was subscribed only 13 x with shareholders offering 28millionEgytranssharesontheEGXagainstthe22millionsharesofthebuybackThisweakresponsereflectstheshareholdersrsquo belief in the companyrsquos performance and future potentialandintheoverallrecoveryofEGX
the stock outperformed all the indices during the treasury shares purchasing period
4Q18EARNINGS RELEASE 13
4Q18EARNINGS RELEASE
Future Outlook We are operating in a fast-changing environment with potential for growth The global transport and logistics market is growing Looking forward the market is projected to reach a value of US$ 1374 Billion by 2023 registering a CAGR of 73 during 2018-2023 Today the industry is entering a period of significantchangebringingopportunitiesandchallengesAsnew technological solutions come into everyday use driven by market trends the sector has been undergoing an important transformation At no point in recent history have we witnessed such a large degree of political economic social technological environmentalandlegalchangesinfluencingthissegmentoftheeconomy
Our strategic responseWe have analyzed each of these forces in detail taking into account their driving trends as well as the maturity of solutions emerging in the market as a response Our strategy is designed to respond to this changing environment To bring differentiated high-quality solutions and services to our customers with our various business lines technical know-how and talented people Our long-term priorities of Portfolio Performance and Trust will help us to deliver our strategyIn 2018 Egytrans refocused its business to make it stronger and more competitive in order to deliver improved sustainable returnsWehavesimplifiedourcommercialmanagementstructure and reshaped our operations We are aggressively reallocating resources to those areas best able to deliver profitablesustainablegrowthandreturnswithmuchmorefocuson new services and major markets The changes we are making will drive sharper prioritization a simpler portfolio faster decision-making more effective capital allocation and a strong focus on execution Our plans for 2019 are to continue streamlining our operations and inject new investments with a focus on generating growth
and synergies based on a group structure with multiple brands contributing to generating new potential and sustainable income andprofitsGoingforwardEgytranswilldeliverbestinclasstransport and logistics services with a strategy that rests on three pillars of performance portfolio and trust to deliver long term profitablegrowth Portfolio Achieving operational excellence by introducing high
quality services and improved customer experience through delivering new solutions in the transport and logistics industry designedtomeetthespecificneedsofeachcustomerEgytrans will continue to grow its market share with a view to vertical expansion to deliver innovative customer solutions
PerformanceEnsuringefficiencyinutilizationofworkingcapital and the best value delivered to shareholders and other stakeholders The company is therefore considering various investments in new areas in the transport and logistics sector to support this strategy while focusing on cost effectiveness and best practices to enhance returns Developing new services for existing and new customers is a key deliverable at the core of the strategy
Trust Continuously improving Egytransrsquo capabilities and internal systems while investing in human capital the companyrsquos most valuable asset and one of the most important factors in achieving our success and leading position
Outlook
Over the strategic plan period to 2020 we expect a single-digit CAGRforsalesasweseektoreducethestrongfluctuationsthat are the result of our cyclical project business We do so by continuingalongthestrategyofdiversificationofbusinesslinesand strengthening of core business Strong performances from our core business together with disciplined cost management are expected to enable the business to continue to achieve strong results
4Q18EARNINGS RELEASE 14
4Q18EARNINGS RELEASE
Egytrans Investor Relations
Contact Information Name Sherif HelmyTelephone +20 1015172111Email iregytranscomWebsite iregytranscom
About Egyptian Transport and Commercial Services Company (Egytrans) The Egyptian Transport and Commercial Services Company (Egytrans) is a leading integrated transport and logistics company with a comprehensive portfolio of services in Egypt With experience dating back to 1939 the company was established in 197 under the name Egytrans It has since developedanumberofsubsidiaryandaffiliatebrandsconsistingof Egytrans Depot Solutions (EDS) Egyptian Transportation amp Logistics SAE (ETAL) Wilhelmsen Ships Service Egypt and Scan Arabia Working across 9 branches in Egypt the mission of Egytrans is to make integrated transport easy safe and cost-effective Egytrans enables and facilitates global and national supply chains through its extensive range of services including SeaFreightAirFreightLandTransportCustomsClearanceProject Logistics Exhibitions and Storage Egytrans employs around 350 employees across its operations in Egypt and is publiclytradedontheEgyptianStockExchange(EGX)as[ETRSCA]forReutersand[ETRSEYEquity]forBloombergFormore information please visit ir egytranscom
Forward Looking Statements
Statements contained in this document that are not historical facts are based on current expectations estimates projections opinions and beliefs of Egytrans Such statements involve known and unknown risks uncertainties and other factors undue reliance should not be placed thereon Certain information contained herein constitutes ldquotargetsrdquo or ldquoforward-looking statementsrdquowhichcanbeidentifiedbytheuseofforward-looking terminology such as ldquomayrdquo ldquowillrdquo ldquoseekrdquo ldquoshouldrdquo ldquoexpectrdquo ldquoanticipaterdquo ldquoprojectrdquo ldquoestimaterdquo ldquointendrdquo ldquocontinuerdquo or ldquobelieverdquo or the negatives thereof or other variations thereon or comparable terminology Actual events or results or the actual performance of Egytrans may differ materially from those reflectedorcontemplatedinsuchtargetsorforward-lookingstatements The performance of Egytrans is subject to risks and uncertainties Various factors could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this document including worldwide economic trendstheeconomicandpoliticalclimateofEgypttheMiddleEast and changes in business strategy and various other factors
4Q18EARNINGS RELEASE 7
4Q18EARNINGS RELEASE
286
211135
91
67
65
53
4132 11 09
Land Transport
Storage (Free Zone)
Unloading
Storage (Others)
Sea Freight
Extra Services
Storage (Adabeya)
Customs Clearance
Air Freight
Other Revenues
Transit
Revenues by line of business 2018
Revenues by line of business 2017
478
149
140
47
44
42
3523 19 12 09
Land Transport
Unloading
Storage (Free Zone)
Extra Services
Sea Freight
Storage (Adabeya)
Customs Clearance
Air Freight
Storage (Others)
Transit
Other Revenues
Revenues contribution amp growth by line of business
Revenues contribution amp growth by branch
Sea Fr
eight
Air Frei
ght
Custo
ms Clea
rance
Unload
ing
Extra S
ervice
s
Land
Tran
sport
Storag
e (Adab
eya)
Storag
e (Fre
e Zon
e)
Storag
e (Oth
er)
Transit
Others
-100
0
100
200
300
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
2017 2018 Change
-100
-80
-60
-40
-20
0
20
40
60
80
100
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
100000000
110000000
2017 2018 Change
4Q18EARNINGS RELEASE 8
4Q18EARNINGS RELEASE
ETAL Egyptian Transport amp Logistics (ETAL) a fully owned subsidiary of Egytrans executes specialized transport and installation of cargos with exceptional weight and dimensions for large projects in addition to other operations The company recorded 557 Y-o-Y lower Revenues of EGP175millionMeanwhileNetProfitsafterTaxesrecorded a 575 drop Y-o-Y to EGP 57 million in 2018 following a 59 reduction in Taxes to EGP 17 million compared to EGP 18 million a year ago
IS ComparisonItem (In EGP) 4Q17 3Q18 4Q18 QoQ YoY 2017 2018 YoYRevenues 1226455 2515000 4600150 829 2751 39436558 17488189 -557Costs (911413) (1148794) (2060143) 793 1260 (10226926) (5725651) -440Gross Profit 315042 1366206 2540007 859 7062 29209632 11762538 -597SGampA (1654794) (857354) (984777) 149 -405 (4001979) (4080385) 20EBITDA (1339752) 508852 1555230 na na 25207653 7682153 -695Depreciation (294228) (479869) (498742) 39 695 (1928826) (1227862) -363EBIT (1633980) 28983 1056488 na na 23278827 6454291 -723Net Interest Income 307980 155044 134651 -132 -563 1012959 958788 -53FXGainLoss 6812 2010 (3105) na na 88328 (2617) naSocial Insurance Expense 0 0 (18635) nm nm 0 (18635) nmOthers (4921286) 0 49080 nm na (4917286) 72630 naNet Profit Before Taxes (6240474) 186037 1218479 5550 na 19462828 7464457 -616Taxes 128033 1323947 (388372) na na (5617521) (1793346) -681
Net Profit After Taxes (6112441) 1509984 830107 -450 na 13845307 5671111 -590
ETAL
4Q18EARNINGS RELEASE 10
4Q18EARNINGS RELEASE
EDS Egytrans Depot Solutions (EDS) a fully owned subsidiary of Egytrans specializing in storing cleaning and repairing liquid bulk cargo containers (ISO Tanks) recorded a 138 increase in its 2018 Net ProfitsafterTaxestoUSD0432 million vis-a-vis USD 0379 million in 2017 On another note Revenues recorded an increase of 34 to USD 0998 million as opposed to USD 0965 million in 2017
Buying Treasury Shares in 4Q18 Based on Egytrans BoDrsquos decision dated 1-Oct-18 and due to our belief that the companyrsquos shares were undervalued and didnotreflectthecompanyrsquosfuturepotentialoritsstrongcompetitive position the company started the process to buy back2215500ofitsfreefloatsharesOPRwasopenedbyEGXatafixedpriceofEGP72pershare(15premiumoverthe market price of EGP 622) for an aggregate amount of EGP 159 million The transaction took place during the period from 1-Oct-18 until 11-Oct-18The offer was subscribed only 13 x with shareholders offering 28millionEgytranssharesontheEGXagainstthe22millionsharesofthebuybackThisweakresponsereflectstheshareholdersrsquo belief in the companyrsquos performance and future potentialandintheoverallrecoveryofEGX
the stock outperformed all the indices during the treasury shares purchasing period
4Q18EARNINGS RELEASE 13
4Q18EARNINGS RELEASE
Future Outlook We are operating in a fast-changing environment with potential for growth The global transport and logistics market is growing Looking forward the market is projected to reach a value of US$ 1374 Billion by 2023 registering a CAGR of 73 during 2018-2023 Today the industry is entering a period of significantchangebringingopportunitiesandchallengesAsnew technological solutions come into everyday use driven by market trends the sector has been undergoing an important transformation At no point in recent history have we witnessed such a large degree of political economic social technological environmentalandlegalchangesinfluencingthissegmentoftheeconomy
Our strategic responseWe have analyzed each of these forces in detail taking into account their driving trends as well as the maturity of solutions emerging in the market as a response Our strategy is designed to respond to this changing environment To bring differentiated high-quality solutions and services to our customers with our various business lines technical know-how and talented people Our long-term priorities of Portfolio Performance and Trust will help us to deliver our strategyIn 2018 Egytrans refocused its business to make it stronger and more competitive in order to deliver improved sustainable returnsWehavesimplifiedourcommercialmanagementstructure and reshaped our operations We are aggressively reallocating resources to those areas best able to deliver profitablesustainablegrowthandreturnswithmuchmorefocuson new services and major markets The changes we are making will drive sharper prioritization a simpler portfolio faster decision-making more effective capital allocation and a strong focus on execution Our plans for 2019 are to continue streamlining our operations and inject new investments with a focus on generating growth
and synergies based on a group structure with multiple brands contributing to generating new potential and sustainable income andprofitsGoingforwardEgytranswilldeliverbestinclasstransport and logistics services with a strategy that rests on three pillars of performance portfolio and trust to deliver long term profitablegrowth Portfolio Achieving operational excellence by introducing high
quality services and improved customer experience through delivering new solutions in the transport and logistics industry designedtomeetthespecificneedsofeachcustomerEgytrans will continue to grow its market share with a view to vertical expansion to deliver innovative customer solutions
PerformanceEnsuringefficiencyinutilizationofworkingcapital and the best value delivered to shareholders and other stakeholders The company is therefore considering various investments in new areas in the transport and logistics sector to support this strategy while focusing on cost effectiveness and best practices to enhance returns Developing new services for existing and new customers is a key deliverable at the core of the strategy
Trust Continuously improving Egytransrsquo capabilities and internal systems while investing in human capital the companyrsquos most valuable asset and one of the most important factors in achieving our success and leading position
Outlook
Over the strategic plan period to 2020 we expect a single-digit CAGRforsalesasweseektoreducethestrongfluctuationsthat are the result of our cyclical project business We do so by continuingalongthestrategyofdiversificationofbusinesslinesand strengthening of core business Strong performances from our core business together with disciplined cost management are expected to enable the business to continue to achieve strong results
4Q18EARNINGS RELEASE 14
4Q18EARNINGS RELEASE
Egytrans Investor Relations
Contact Information Name Sherif HelmyTelephone +20 1015172111Email iregytranscomWebsite iregytranscom
About Egyptian Transport and Commercial Services Company (Egytrans) The Egyptian Transport and Commercial Services Company (Egytrans) is a leading integrated transport and logistics company with a comprehensive portfolio of services in Egypt With experience dating back to 1939 the company was established in 197 under the name Egytrans It has since developedanumberofsubsidiaryandaffiliatebrandsconsistingof Egytrans Depot Solutions (EDS) Egyptian Transportation amp Logistics SAE (ETAL) Wilhelmsen Ships Service Egypt and Scan Arabia Working across 9 branches in Egypt the mission of Egytrans is to make integrated transport easy safe and cost-effective Egytrans enables and facilitates global and national supply chains through its extensive range of services including SeaFreightAirFreightLandTransportCustomsClearanceProject Logistics Exhibitions and Storage Egytrans employs around 350 employees across its operations in Egypt and is publiclytradedontheEgyptianStockExchange(EGX)as[ETRSCA]forReutersand[ETRSEYEquity]forBloombergFormore information please visit ir egytranscom
Forward Looking Statements
Statements contained in this document that are not historical facts are based on current expectations estimates projections opinions and beliefs of Egytrans Such statements involve known and unknown risks uncertainties and other factors undue reliance should not be placed thereon Certain information contained herein constitutes ldquotargetsrdquo or ldquoforward-looking statementsrdquowhichcanbeidentifiedbytheuseofforward-looking terminology such as ldquomayrdquo ldquowillrdquo ldquoseekrdquo ldquoshouldrdquo ldquoexpectrdquo ldquoanticipaterdquo ldquoprojectrdquo ldquoestimaterdquo ldquointendrdquo ldquocontinuerdquo or ldquobelieverdquo or the negatives thereof or other variations thereon or comparable terminology Actual events or results or the actual performance of Egytrans may differ materially from those reflectedorcontemplatedinsuchtargetsorforward-lookingstatements The performance of Egytrans is subject to risks and uncertainties Various factors could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this document including worldwide economic trendstheeconomicandpoliticalclimateofEgypttheMiddleEast and changes in business strategy and various other factors
4Q18EARNINGS RELEASE 8
4Q18EARNINGS RELEASE
ETAL Egyptian Transport amp Logistics (ETAL) a fully owned subsidiary of Egytrans executes specialized transport and installation of cargos with exceptional weight and dimensions for large projects in addition to other operations The company recorded 557 Y-o-Y lower Revenues of EGP175millionMeanwhileNetProfitsafterTaxesrecorded a 575 drop Y-o-Y to EGP 57 million in 2018 following a 59 reduction in Taxes to EGP 17 million compared to EGP 18 million a year ago
IS ComparisonItem (In EGP) 4Q17 3Q18 4Q18 QoQ YoY 2017 2018 YoYRevenues 1226455 2515000 4600150 829 2751 39436558 17488189 -557Costs (911413) (1148794) (2060143) 793 1260 (10226926) (5725651) -440Gross Profit 315042 1366206 2540007 859 7062 29209632 11762538 -597SGampA (1654794) (857354) (984777) 149 -405 (4001979) (4080385) 20EBITDA (1339752) 508852 1555230 na na 25207653 7682153 -695Depreciation (294228) (479869) (498742) 39 695 (1928826) (1227862) -363EBIT (1633980) 28983 1056488 na na 23278827 6454291 -723Net Interest Income 307980 155044 134651 -132 -563 1012959 958788 -53FXGainLoss 6812 2010 (3105) na na 88328 (2617) naSocial Insurance Expense 0 0 (18635) nm nm 0 (18635) nmOthers (4921286) 0 49080 nm na (4917286) 72630 naNet Profit Before Taxes (6240474) 186037 1218479 5550 na 19462828 7464457 -616Taxes 128033 1323947 (388372) na na (5617521) (1793346) -681
Net Profit After Taxes (6112441) 1509984 830107 -450 na 13845307 5671111 -590
ETAL
4Q18EARNINGS RELEASE 10
4Q18EARNINGS RELEASE
EDS Egytrans Depot Solutions (EDS) a fully owned subsidiary of Egytrans specializing in storing cleaning and repairing liquid bulk cargo containers (ISO Tanks) recorded a 138 increase in its 2018 Net ProfitsafterTaxestoUSD0432 million vis-a-vis USD 0379 million in 2017 On another note Revenues recorded an increase of 34 to USD 0998 million as opposed to USD 0965 million in 2017
Buying Treasury Shares in 4Q18 Based on Egytrans BoDrsquos decision dated 1-Oct-18 and due to our belief that the companyrsquos shares were undervalued and didnotreflectthecompanyrsquosfuturepotentialoritsstrongcompetitive position the company started the process to buy back2215500ofitsfreefloatsharesOPRwasopenedbyEGXatafixedpriceofEGP72pershare(15premiumoverthe market price of EGP 622) for an aggregate amount of EGP 159 million The transaction took place during the period from 1-Oct-18 until 11-Oct-18The offer was subscribed only 13 x with shareholders offering 28millionEgytranssharesontheEGXagainstthe22millionsharesofthebuybackThisweakresponsereflectstheshareholdersrsquo belief in the companyrsquos performance and future potentialandintheoverallrecoveryofEGX
the stock outperformed all the indices during the treasury shares purchasing period
4Q18EARNINGS RELEASE 13
4Q18EARNINGS RELEASE
Future Outlook We are operating in a fast-changing environment with potential for growth The global transport and logistics market is growing Looking forward the market is projected to reach a value of US$ 1374 Billion by 2023 registering a CAGR of 73 during 2018-2023 Today the industry is entering a period of significantchangebringingopportunitiesandchallengesAsnew technological solutions come into everyday use driven by market trends the sector has been undergoing an important transformation At no point in recent history have we witnessed such a large degree of political economic social technological environmentalandlegalchangesinfluencingthissegmentoftheeconomy
Our strategic responseWe have analyzed each of these forces in detail taking into account their driving trends as well as the maturity of solutions emerging in the market as a response Our strategy is designed to respond to this changing environment To bring differentiated high-quality solutions and services to our customers with our various business lines technical know-how and talented people Our long-term priorities of Portfolio Performance and Trust will help us to deliver our strategyIn 2018 Egytrans refocused its business to make it stronger and more competitive in order to deliver improved sustainable returnsWehavesimplifiedourcommercialmanagementstructure and reshaped our operations We are aggressively reallocating resources to those areas best able to deliver profitablesustainablegrowthandreturnswithmuchmorefocuson new services and major markets The changes we are making will drive sharper prioritization a simpler portfolio faster decision-making more effective capital allocation and a strong focus on execution Our plans for 2019 are to continue streamlining our operations and inject new investments with a focus on generating growth
and synergies based on a group structure with multiple brands contributing to generating new potential and sustainable income andprofitsGoingforwardEgytranswilldeliverbestinclasstransport and logistics services with a strategy that rests on three pillars of performance portfolio and trust to deliver long term profitablegrowth Portfolio Achieving operational excellence by introducing high
quality services and improved customer experience through delivering new solutions in the transport and logistics industry designedtomeetthespecificneedsofeachcustomerEgytrans will continue to grow its market share with a view to vertical expansion to deliver innovative customer solutions
PerformanceEnsuringefficiencyinutilizationofworkingcapital and the best value delivered to shareholders and other stakeholders The company is therefore considering various investments in new areas in the transport and logistics sector to support this strategy while focusing on cost effectiveness and best practices to enhance returns Developing new services for existing and new customers is a key deliverable at the core of the strategy
Trust Continuously improving Egytransrsquo capabilities and internal systems while investing in human capital the companyrsquos most valuable asset and one of the most important factors in achieving our success and leading position
Outlook
Over the strategic plan period to 2020 we expect a single-digit CAGRforsalesasweseektoreducethestrongfluctuationsthat are the result of our cyclical project business We do so by continuingalongthestrategyofdiversificationofbusinesslinesand strengthening of core business Strong performances from our core business together with disciplined cost management are expected to enable the business to continue to achieve strong results
4Q18EARNINGS RELEASE 14
4Q18EARNINGS RELEASE
Egytrans Investor Relations
Contact Information Name Sherif HelmyTelephone +20 1015172111Email iregytranscomWebsite iregytranscom
About Egyptian Transport and Commercial Services Company (Egytrans) The Egyptian Transport and Commercial Services Company (Egytrans) is a leading integrated transport and logistics company with a comprehensive portfolio of services in Egypt With experience dating back to 1939 the company was established in 197 under the name Egytrans It has since developedanumberofsubsidiaryandaffiliatebrandsconsistingof Egytrans Depot Solutions (EDS) Egyptian Transportation amp Logistics SAE (ETAL) Wilhelmsen Ships Service Egypt and Scan Arabia Working across 9 branches in Egypt the mission of Egytrans is to make integrated transport easy safe and cost-effective Egytrans enables and facilitates global and national supply chains through its extensive range of services including SeaFreightAirFreightLandTransportCustomsClearanceProject Logistics Exhibitions and Storage Egytrans employs around 350 employees across its operations in Egypt and is publiclytradedontheEgyptianStockExchange(EGX)as[ETRSCA]forReutersand[ETRSEYEquity]forBloombergFormore information please visit ir egytranscom
Forward Looking Statements
Statements contained in this document that are not historical facts are based on current expectations estimates projections opinions and beliefs of Egytrans Such statements involve known and unknown risks uncertainties and other factors undue reliance should not be placed thereon Certain information contained herein constitutes ldquotargetsrdquo or ldquoforward-looking statementsrdquowhichcanbeidentifiedbytheuseofforward-looking terminology such as ldquomayrdquo ldquowillrdquo ldquoseekrdquo ldquoshouldrdquo ldquoexpectrdquo ldquoanticipaterdquo ldquoprojectrdquo ldquoestimaterdquo ldquointendrdquo ldquocontinuerdquo or ldquobelieverdquo or the negatives thereof or other variations thereon or comparable terminology Actual events or results or the actual performance of Egytrans may differ materially from those reflectedorcontemplatedinsuchtargetsorforward-lookingstatements The performance of Egytrans is subject to risks and uncertainties Various factors could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this document including worldwide economic trendstheeconomicandpoliticalclimateofEgypttheMiddleEast and changes in business strategy and various other factors
4Q18EARNINGS RELEASE 9
4Q18EARNINGS RELEASE
IS ComparisonItem (In EGP) 4Q17 3Q18 4Q18 QoQ YoY 2017 2018 YoYRevenues 1226455 2515000 4600150 829 2751 39436558 17488189 -557Costs (911413) (1148794) (2060143) 793 1260 (10226926) (5725651) -440Gross Profit 315042 1366206 2540007 859 7062 29209632 11762538 -597SGampA (1654794) (857354) (984777) 149 -405 (4001979) (4080385) 20EBITDA (1339752) 508852 1555230 na na 25207653 7682153 -695Depreciation (294228) (479869) (498742) 39 695 (1928826) (1227862) -363EBIT (1633980) 28983 1056488 na na 23278827 6454291 -723Net Interest Income 307980 155044 134651 -132 -563 1012959 958788 -53FXGainLoss 6812 2010 (3105) na na 88328 (2617) naSocial Insurance Expense 0 0 (18635) nm nm 0 (18635) nmOthers (4921286) 0 49080 nm na (4917286) 72630 naNet Profit Before Taxes (6240474) 186037 1218479 5550 na 19462828 7464457 -616Taxes 128033 1323947 (388372) na na (5617521) (1793346) -681
Net Profit After Taxes (6112441) 1509984 830107 -450 na 13845307 5671111 -590
ETAL
4Q18EARNINGS RELEASE 10
4Q18EARNINGS RELEASE
EDS Egytrans Depot Solutions (EDS) a fully owned subsidiary of Egytrans specializing in storing cleaning and repairing liquid bulk cargo containers (ISO Tanks) recorded a 138 increase in its 2018 Net ProfitsafterTaxestoUSD0432 million vis-a-vis USD 0379 million in 2017 On another note Revenues recorded an increase of 34 to USD 0998 million as opposed to USD 0965 million in 2017
Buying Treasury Shares in 4Q18 Based on Egytrans BoDrsquos decision dated 1-Oct-18 and due to our belief that the companyrsquos shares were undervalued and didnotreflectthecompanyrsquosfuturepotentialoritsstrongcompetitive position the company started the process to buy back2215500ofitsfreefloatsharesOPRwasopenedbyEGXatafixedpriceofEGP72pershare(15premiumoverthe market price of EGP 622) for an aggregate amount of EGP 159 million The transaction took place during the period from 1-Oct-18 until 11-Oct-18The offer was subscribed only 13 x with shareholders offering 28millionEgytranssharesontheEGXagainstthe22millionsharesofthebuybackThisweakresponsereflectstheshareholdersrsquo belief in the companyrsquos performance and future potentialandintheoverallrecoveryofEGX
the stock outperformed all the indices during the treasury shares purchasing period
4Q18EARNINGS RELEASE 13
4Q18EARNINGS RELEASE
Future Outlook We are operating in a fast-changing environment with potential for growth The global transport and logistics market is growing Looking forward the market is projected to reach a value of US$ 1374 Billion by 2023 registering a CAGR of 73 during 2018-2023 Today the industry is entering a period of significantchangebringingopportunitiesandchallengesAsnew technological solutions come into everyday use driven by market trends the sector has been undergoing an important transformation At no point in recent history have we witnessed such a large degree of political economic social technological environmentalandlegalchangesinfluencingthissegmentoftheeconomy
Our strategic responseWe have analyzed each of these forces in detail taking into account their driving trends as well as the maturity of solutions emerging in the market as a response Our strategy is designed to respond to this changing environment To bring differentiated high-quality solutions and services to our customers with our various business lines technical know-how and talented people Our long-term priorities of Portfolio Performance and Trust will help us to deliver our strategyIn 2018 Egytrans refocused its business to make it stronger and more competitive in order to deliver improved sustainable returnsWehavesimplifiedourcommercialmanagementstructure and reshaped our operations We are aggressively reallocating resources to those areas best able to deliver profitablesustainablegrowthandreturnswithmuchmorefocuson new services and major markets The changes we are making will drive sharper prioritization a simpler portfolio faster decision-making more effective capital allocation and a strong focus on execution Our plans for 2019 are to continue streamlining our operations and inject new investments with a focus on generating growth
and synergies based on a group structure with multiple brands contributing to generating new potential and sustainable income andprofitsGoingforwardEgytranswilldeliverbestinclasstransport and logistics services with a strategy that rests on three pillars of performance portfolio and trust to deliver long term profitablegrowth Portfolio Achieving operational excellence by introducing high
quality services and improved customer experience through delivering new solutions in the transport and logistics industry designedtomeetthespecificneedsofeachcustomerEgytrans will continue to grow its market share with a view to vertical expansion to deliver innovative customer solutions
PerformanceEnsuringefficiencyinutilizationofworkingcapital and the best value delivered to shareholders and other stakeholders The company is therefore considering various investments in new areas in the transport and logistics sector to support this strategy while focusing on cost effectiveness and best practices to enhance returns Developing new services for existing and new customers is a key deliverable at the core of the strategy
Trust Continuously improving Egytransrsquo capabilities and internal systems while investing in human capital the companyrsquos most valuable asset and one of the most important factors in achieving our success and leading position
Outlook
Over the strategic plan period to 2020 we expect a single-digit CAGRforsalesasweseektoreducethestrongfluctuationsthat are the result of our cyclical project business We do so by continuingalongthestrategyofdiversificationofbusinesslinesand strengthening of core business Strong performances from our core business together with disciplined cost management are expected to enable the business to continue to achieve strong results
4Q18EARNINGS RELEASE 14
4Q18EARNINGS RELEASE
Egytrans Investor Relations
Contact Information Name Sherif HelmyTelephone +20 1015172111Email iregytranscomWebsite iregytranscom
About Egyptian Transport and Commercial Services Company (Egytrans) The Egyptian Transport and Commercial Services Company (Egytrans) is a leading integrated transport and logistics company with a comprehensive portfolio of services in Egypt With experience dating back to 1939 the company was established in 197 under the name Egytrans It has since developedanumberofsubsidiaryandaffiliatebrandsconsistingof Egytrans Depot Solutions (EDS) Egyptian Transportation amp Logistics SAE (ETAL) Wilhelmsen Ships Service Egypt and Scan Arabia Working across 9 branches in Egypt the mission of Egytrans is to make integrated transport easy safe and cost-effective Egytrans enables and facilitates global and national supply chains through its extensive range of services including SeaFreightAirFreightLandTransportCustomsClearanceProject Logistics Exhibitions and Storage Egytrans employs around 350 employees across its operations in Egypt and is publiclytradedontheEgyptianStockExchange(EGX)as[ETRSCA]forReutersand[ETRSEYEquity]forBloombergFormore information please visit ir egytranscom
Forward Looking Statements
Statements contained in this document that are not historical facts are based on current expectations estimates projections opinions and beliefs of Egytrans Such statements involve known and unknown risks uncertainties and other factors undue reliance should not be placed thereon Certain information contained herein constitutes ldquotargetsrdquo or ldquoforward-looking statementsrdquowhichcanbeidentifiedbytheuseofforward-looking terminology such as ldquomayrdquo ldquowillrdquo ldquoseekrdquo ldquoshouldrdquo ldquoexpectrdquo ldquoanticipaterdquo ldquoprojectrdquo ldquoestimaterdquo ldquointendrdquo ldquocontinuerdquo or ldquobelieverdquo or the negatives thereof or other variations thereon or comparable terminology Actual events or results or the actual performance of Egytrans may differ materially from those reflectedorcontemplatedinsuchtargetsorforward-lookingstatements The performance of Egytrans is subject to risks and uncertainties Various factors could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this document including worldwide economic trendstheeconomicandpoliticalclimateofEgypttheMiddleEast and changes in business strategy and various other factors
4Q18EARNINGS RELEASE 10
4Q18EARNINGS RELEASE
EDS Egytrans Depot Solutions (EDS) a fully owned subsidiary of Egytrans specializing in storing cleaning and repairing liquid bulk cargo containers (ISO Tanks) recorded a 138 increase in its 2018 Net ProfitsafterTaxestoUSD0432 million vis-a-vis USD 0379 million in 2017 On another note Revenues recorded an increase of 34 to USD 0998 million as opposed to USD 0965 million in 2017
Buying Treasury Shares in 4Q18 Based on Egytrans BoDrsquos decision dated 1-Oct-18 and due to our belief that the companyrsquos shares were undervalued and didnotreflectthecompanyrsquosfuturepotentialoritsstrongcompetitive position the company started the process to buy back2215500ofitsfreefloatsharesOPRwasopenedbyEGXatafixedpriceofEGP72pershare(15premiumoverthe market price of EGP 622) for an aggregate amount of EGP 159 million The transaction took place during the period from 1-Oct-18 until 11-Oct-18The offer was subscribed only 13 x with shareholders offering 28millionEgytranssharesontheEGXagainstthe22millionsharesofthebuybackThisweakresponsereflectstheshareholdersrsquo belief in the companyrsquos performance and future potentialandintheoverallrecoveryofEGX
the stock outperformed all the indices during the treasury shares purchasing period
4Q18EARNINGS RELEASE 13
4Q18EARNINGS RELEASE
Future Outlook We are operating in a fast-changing environment with potential for growth The global transport and logistics market is growing Looking forward the market is projected to reach a value of US$ 1374 Billion by 2023 registering a CAGR of 73 during 2018-2023 Today the industry is entering a period of significantchangebringingopportunitiesandchallengesAsnew technological solutions come into everyday use driven by market trends the sector has been undergoing an important transformation At no point in recent history have we witnessed such a large degree of political economic social technological environmentalandlegalchangesinfluencingthissegmentoftheeconomy
Our strategic responseWe have analyzed each of these forces in detail taking into account their driving trends as well as the maturity of solutions emerging in the market as a response Our strategy is designed to respond to this changing environment To bring differentiated high-quality solutions and services to our customers with our various business lines technical know-how and talented people Our long-term priorities of Portfolio Performance and Trust will help us to deliver our strategyIn 2018 Egytrans refocused its business to make it stronger and more competitive in order to deliver improved sustainable returnsWehavesimplifiedourcommercialmanagementstructure and reshaped our operations We are aggressively reallocating resources to those areas best able to deliver profitablesustainablegrowthandreturnswithmuchmorefocuson new services and major markets The changes we are making will drive sharper prioritization a simpler portfolio faster decision-making more effective capital allocation and a strong focus on execution Our plans for 2019 are to continue streamlining our operations and inject new investments with a focus on generating growth
and synergies based on a group structure with multiple brands contributing to generating new potential and sustainable income andprofitsGoingforwardEgytranswilldeliverbestinclasstransport and logistics services with a strategy that rests on three pillars of performance portfolio and trust to deliver long term profitablegrowth Portfolio Achieving operational excellence by introducing high
quality services and improved customer experience through delivering new solutions in the transport and logistics industry designedtomeetthespecificneedsofeachcustomerEgytrans will continue to grow its market share with a view to vertical expansion to deliver innovative customer solutions
PerformanceEnsuringefficiencyinutilizationofworkingcapital and the best value delivered to shareholders and other stakeholders The company is therefore considering various investments in new areas in the transport and logistics sector to support this strategy while focusing on cost effectiveness and best practices to enhance returns Developing new services for existing and new customers is a key deliverable at the core of the strategy
Trust Continuously improving Egytransrsquo capabilities and internal systems while investing in human capital the companyrsquos most valuable asset and one of the most important factors in achieving our success and leading position
Outlook
Over the strategic plan period to 2020 we expect a single-digit CAGRforsalesasweseektoreducethestrongfluctuationsthat are the result of our cyclical project business We do so by continuingalongthestrategyofdiversificationofbusinesslinesand strengthening of core business Strong performances from our core business together with disciplined cost management are expected to enable the business to continue to achieve strong results
4Q18EARNINGS RELEASE 14
4Q18EARNINGS RELEASE
Egytrans Investor Relations
Contact Information Name Sherif HelmyTelephone +20 1015172111Email iregytranscomWebsite iregytranscom
About Egyptian Transport and Commercial Services Company (Egytrans) The Egyptian Transport and Commercial Services Company (Egytrans) is a leading integrated transport and logistics company with a comprehensive portfolio of services in Egypt With experience dating back to 1939 the company was established in 197 under the name Egytrans It has since developedanumberofsubsidiaryandaffiliatebrandsconsistingof Egytrans Depot Solutions (EDS) Egyptian Transportation amp Logistics SAE (ETAL) Wilhelmsen Ships Service Egypt and Scan Arabia Working across 9 branches in Egypt the mission of Egytrans is to make integrated transport easy safe and cost-effective Egytrans enables and facilitates global and national supply chains through its extensive range of services including SeaFreightAirFreightLandTransportCustomsClearanceProject Logistics Exhibitions and Storage Egytrans employs around 350 employees across its operations in Egypt and is publiclytradedontheEgyptianStockExchange(EGX)as[ETRSCA]forReutersand[ETRSEYEquity]forBloombergFormore information please visit ir egytranscom
Forward Looking Statements
Statements contained in this document that are not historical facts are based on current expectations estimates projections opinions and beliefs of Egytrans Such statements involve known and unknown risks uncertainties and other factors undue reliance should not be placed thereon Certain information contained herein constitutes ldquotargetsrdquo or ldquoforward-looking statementsrdquowhichcanbeidentifiedbytheuseofforward-looking terminology such as ldquomayrdquo ldquowillrdquo ldquoseekrdquo ldquoshouldrdquo ldquoexpectrdquo ldquoanticipaterdquo ldquoprojectrdquo ldquoestimaterdquo ldquointendrdquo ldquocontinuerdquo or ldquobelieverdquo or the negatives thereof or other variations thereon or comparable terminology Actual events or results or the actual performance of Egytrans may differ materially from those reflectedorcontemplatedinsuchtargetsorforward-lookingstatements The performance of Egytrans is subject to risks and uncertainties Various factors could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this document including worldwide economic trendstheeconomicandpoliticalclimateofEgypttheMiddleEast and changes in business strategy and various other factors
Buying Treasury Shares in 4Q18 Based on Egytrans BoDrsquos decision dated 1-Oct-18 and due to our belief that the companyrsquos shares were undervalued and didnotreflectthecompanyrsquosfuturepotentialoritsstrongcompetitive position the company started the process to buy back2215500ofitsfreefloatsharesOPRwasopenedbyEGXatafixedpriceofEGP72pershare(15premiumoverthe market price of EGP 622) for an aggregate amount of EGP 159 million The transaction took place during the period from 1-Oct-18 until 11-Oct-18The offer was subscribed only 13 x with shareholders offering 28millionEgytranssharesontheEGXagainstthe22millionsharesofthebuybackThisweakresponsereflectstheshareholdersrsquo belief in the companyrsquos performance and future potentialandintheoverallrecoveryofEGX
the stock outperformed all the indices during the treasury shares purchasing period
4Q18EARNINGS RELEASE 13
4Q18EARNINGS RELEASE
Future Outlook We are operating in a fast-changing environment with potential for growth The global transport and logistics market is growing Looking forward the market is projected to reach a value of US$ 1374 Billion by 2023 registering a CAGR of 73 during 2018-2023 Today the industry is entering a period of significantchangebringingopportunitiesandchallengesAsnew technological solutions come into everyday use driven by market trends the sector has been undergoing an important transformation At no point in recent history have we witnessed such a large degree of political economic social technological environmentalandlegalchangesinfluencingthissegmentoftheeconomy
Our strategic responseWe have analyzed each of these forces in detail taking into account their driving trends as well as the maturity of solutions emerging in the market as a response Our strategy is designed to respond to this changing environment To bring differentiated high-quality solutions and services to our customers with our various business lines technical know-how and talented people Our long-term priorities of Portfolio Performance and Trust will help us to deliver our strategyIn 2018 Egytrans refocused its business to make it stronger and more competitive in order to deliver improved sustainable returnsWehavesimplifiedourcommercialmanagementstructure and reshaped our operations We are aggressively reallocating resources to those areas best able to deliver profitablesustainablegrowthandreturnswithmuchmorefocuson new services and major markets The changes we are making will drive sharper prioritization a simpler portfolio faster decision-making more effective capital allocation and a strong focus on execution Our plans for 2019 are to continue streamlining our operations and inject new investments with a focus on generating growth
and synergies based on a group structure with multiple brands contributing to generating new potential and sustainable income andprofitsGoingforwardEgytranswilldeliverbestinclasstransport and logistics services with a strategy that rests on three pillars of performance portfolio and trust to deliver long term profitablegrowth Portfolio Achieving operational excellence by introducing high
quality services and improved customer experience through delivering new solutions in the transport and logistics industry designedtomeetthespecificneedsofeachcustomerEgytrans will continue to grow its market share with a view to vertical expansion to deliver innovative customer solutions
PerformanceEnsuringefficiencyinutilizationofworkingcapital and the best value delivered to shareholders and other stakeholders The company is therefore considering various investments in new areas in the transport and logistics sector to support this strategy while focusing on cost effectiveness and best practices to enhance returns Developing new services for existing and new customers is a key deliverable at the core of the strategy
Trust Continuously improving Egytransrsquo capabilities and internal systems while investing in human capital the companyrsquos most valuable asset and one of the most important factors in achieving our success and leading position
Outlook
Over the strategic plan period to 2020 we expect a single-digit CAGRforsalesasweseektoreducethestrongfluctuationsthat are the result of our cyclical project business We do so by continuingalongthestrategyofdiversificationofbusinesslinesand strengthening of core business Strong performances from our core business together with disciplined cost management are expected to enable the business to continue to achieve strong results
4Q18EARNINGS RELEASE 14
4Q18EARNINGS RELEASE
Egytrans Investor Relations
Contact Information Name Sherif HelmyTelephone +20 1015172111Email iregytranscomWebsite iregytranscom
About Egyptian Transport and Commercial Services Company (Egytrans) The Egyptian Transport and Commercial Services Company (Egytrans) is a leading integrated transport and logistics company with a comprehensive portfolio of services in Egypt With experience dating back to 1939 the company was established in 197 under the name Egytrans It has since developedanumberofsubsidiaryandaffiliatebrandsconsistingof Egytrans Depot Solutions (EDS) Egyptian Transportation amp Logistics SAE (ETAL) Wilhelmsen Ships Service Egypt and Scan Arabia Working across 9 branches in Egypt the mission of Egytrans is to make integrated transport easy safe and cost-effective Egytrans enables and facilitates global and national supply chains through its extensive range of services including SeaFreightAirFreightLandTransportCustomsClearanceProject Logistics Exhibitions and Storage Egytrans employs around 350 employees across its operations in Egypt and is publiclytradedontheEgyptianStockExchange(EGX)as[ETRSCA]forReutersand[ETRSEYEquity]forBloombergFormore information please visit ir egytranscom
Forward Looking Statements
Statements contained in this document that are not historical facts are based on current expectations estimates projections opinions and beliefs of Egytrans Such statements involve known and unknown risks uncertainties and other factors undue reliance should not be placed thereon Certain information contained herein constitutes ldquotargetsrdquo or ldquoforward-looking statementsrdquowhichcanbeidentifiedbytheuseofforward-looking terminology such as ldquomayrdquo ldquowillrdquo ldquoseekrdquo ldquoshouldrdquo ldquoexpectrdquo ldquoanticipaterdquo ldquoprojectrdquo ldquoestimaterdquo ldquointendrdquo ldquocontinuerdquo or ldquobelieverdquo or the negatives thereof or other variations thereon or comparable terminology Actual events or results or the actual performance of Egytrans may differ materially from those reflectedorcontemplatedinsuchtargetsorforward-lookingstatements The performance of Egytrans is subject to risks and uncertainties Various factors could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this document including worldwide economic trendstheeconomicandpoliticalclimateofEgypttheMiddleEast and changes in business strategy and various other factors
Buying Treasury Shares in 4Q18 Based on Egytrans BoDrsquos decision dated 1-Oct-18 and due to our belief that the companyrsquos shares were undervalued and didnotreflectthecompanyrsquosfuturepotentialoritsstrongcompetitive position the company started the process to buy back2215500ofitsfreefloatsharesOPRwasopenedbyEGXatafixedpriceofEGP72pershare(15premiumoverthe market price of EGP 622) for an aggregate amount of EGP 159 million The transaction took place during the period from 1-Oct-18 until 11-Oct-18The offer was subscribed only 13 x with shareholders offering 28millionEgytranssharesontheEGXagainstthe22millionsharesofthebuybackThisweakresponsereflectstheshareholdersrsquo belief in the companyrsquos performance and future potentialandintheoverallrecoveryofEGX
the stock outperformed all the indices during the treasury shares purchasing period
4Q18EARNINGS RELEASE 13
4Q18EARNINGS RELEASE
Future Outlook We are operating in a fast-changing environment with potential for growth The global transport and logistics market is growing Looking forward the market is projected to reach a value of US$ 1374 Billion by 2023 registering a CAGR of 73 during 2018-2023 Today the industry is entering a period of significantchangebringingopportunitiesandchallengesAsnew technological solutions come into everyday use driven by market trends the sector has been undergoing an important transformation At no point in recent history have we witnessed such a large degree of political economic social technological environmentalandlegalchangesinfluencingthissegmentoftheeconomy
Our strategic responseWe have analyzed each of these forces in detail taking into account their driving trends as well as the maturity of solutions emerging in the market as a response Our strategy is designed to respond to this changing environment To bring differentiated high-quality solutions and services to our customers with our various business lines technical know-how and talented people Our long-term priorities of Portfolio Performance and Trust will help us to deliver our strategyIn 2018 Egytrans refocused its business to make it stronger and more competitive in order to deliver improved sustainable returnsWehavesimplifiedourcommercialmanagementstructure and reshaped our operations We are aggressively reallocating resources to those areas best able to deliver profitablesustainablegrowthandreturnswithmuchmorefocuson new services and major markets The changes we are making will drive sharper prioritization a simpler portfolio faster decision-making more effective capital allocation and a strong focus on execution Our plans for 2019 are to continue streamlining our operations and inject new investments with a focus on generating growth
and synergies based on a group structure with multiple brands contributing to generating new potential and sustainable income andprofitsGoingforwardEgytranswilldeliverbestinclasstransport and logistics services with a strategy that rests on three pillars of performance portfolio and trust to deliver long term profitablegrowth Portfolio Achieving operational excellence by introducing high
quality services and improved customer experience through delivering new solutions in the transport and logistics industry designedtomeetthespecificneedsofeachcustomerEgytrans will continue to grow its market share with a view to vertical expansion to deliver innovative customer solutions
PerformanceEnsuringefficiencyinutilizationofworkingcapital and the best value delivered to shareholders and other stakeholders The company is therefore considering various investments in new areas in the transport and logistics sector to support this strategy while focusing on cost effectiveness and best practices to enhance returns Developing new services for existing and new customers is a key deliverable at the core of the strategy
Trust Continuously improving Egytransrsquo capabilities and internal systems while investing in human capital the companyrsquos most valuable asset and one of the most important factors in achieving our success and leading position
Outlook
Over the strategic plan period to 2020 we expect a single-digit CAGRforsalesasweseektoreducethestrongfluctuationsthat are the result of our cyclical project business We do so by continuingalongthestrategyofdiversificationofbusinesslinesand strengthening of core business Strong performances from our core business together with disciplined cost management are expected to enable the business to continue to achieve strong results
4Q18EARNINGS RELEASE 14
4Q18EARNINGS RELEASE
Egytrans Investor Relations
Contact Information Name Sherif HelmyTelephone +20 1015172111Email iregytranscomWebsite iregytranscom
About Egyptian Transport and Commercial Services Company (Egytrans) The Egyptian Transport and Commercial Services Company (Egytrans) is a leading integrated transport and logistics company with a comprehensive portfolio of services in Egypt With experience dating back to 1939 the company was established in 197 under the name Egytrans It has since developedanumberofsubsidiaryandaffiliatebrandsconsistingof Egytrans Depot Solutions (EDS) Egyptian Transportation amp Logistics SAE (ETAL) Wilhelmsen Ships Service Egypt and Scan Arabia Working across 9 branches in Egypt the mission of Egytrans is to make integrated transport easy safe and cost-effective Egytrans enables and facilitates global and national supply chains through its extensive range of services including SeaFreightAirFreightLandTransportCustomsClearanceProject Logistics Exhibitions and Storage Egytrans employs around 350 employees across its operations in Egypt and is publiclytradedontheEgyptianStockExchange(EGX)as[ETRSCA]forReutersand[ETRSEYEquity]forBloombergFormore information please visit ir egytranscom
Forward Looking Statements
Statements contained in this document that are not historical facts are based on current expectations estimates projections opinions and beliefs of Egytrans Such statements involve known and unknown risks uncertainties and other factors undue reliance should not be placed thereon Certain information contained herein constitutes ldquotargetsrdquo or ldquoforward-looking statementsrdquowhichcanbeidentifiedbytheuseofforward-looking terminology such as ldquomayrdquo ldquowillrdquo ldquoseekrdquo ldquoshouldrdquo ldquoexpectrdquo ldquoanticipaterdquo ldquoprojectrdquo ldquoestimaterdquo ldquointendrdquo ldquocontinuerdquo or ldquobelieverdquo or the negatives thereof or other variations thereon or comparable terminology Actual events or results or the actual performance of Egytrans may differ materially from those reflectedorcontemplatedinsuchtargetsorforward-lookingstatements The performance of Egytrans is subject to risks and uncertainties Various factors could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this document including worldwide economic trendstheeconomicandpoliticalclimateofEgypttheMiddleEast and changes in business strategy and various other factors
4Q18EARNINGS RELEASE 13
4Q18EARNINGS RELEASE
Future Outlook We are operating in a fast-changing environment with potential for growth The global transport and logistics market is growing Looking forward the market is projected to reach a value of US$ 1374 Billion by 2023 registering a CAGR of 73 during 2018-2023 Today the industry is entering a period of significantchangebringingopportunitiesandchallengesAsnew technological solutions come into everyday use driven by market trends the sector has been undergoing an important transformation At no point in recent history have we witnessed such a large degree of political economic social technological environmentalandlegalchangesinfluencingthissegmentoftheeconomy
Our strategic responseWe have analyzed each of these forces in detail taking into account their driving trends as well as the maturity of solutions emerging in the market as a response Our strategy is designed to respond to this changing environment To bring differentiated high-quality solutions and services to our customers with our various business lines technical know-how and talented people Our long-term priorities of Portfolio Performance and Trust will help us to deliver our strategyIn 2018 Egytrans refocused its business to make it stronger and more competitive in order to deliver improved sustainable returnsWehavesimplifiedourcommercialmanagementstructure and reshaped our operations We are aggressively reallocating resources to those areas best able to deliver profitablesustainablegrowthandreturnswithmuchmorefocuson new services and major markets The changes we are making will drive sharper prioritization a simpler portfolio faster decision-making more effective capital allocation and a strong focus on execution Our plans for 2019 are to continue streamlining our operations and inject new investments with a focus on generating growth
and synergies based on a group structure with multiple brands contributing to generating new potential and sustainable income andprofitsGoingforwardEgytranswilldeliverbestinclasstransport and logistics services with a strategy that rests on three pillars of performance portfolio and trust to deliver long term profitablegrowth Portfolio Achieving operational excellence by introducing high
quality services and improved customer experience through delivering new solutions in the transport and logistics industry designedtomeetthespecificneedsofeachcustomerEgytrans will continue to grow its market share with a view to vertical expansion to deliver innovative customer solutions
PerformanceEnsuringefficiencyinutilizationofworkingcapital and the best value delivered to shareholders and other stakeholders The company is therefore considering various investments in new areas in the transport and logistics sector to support this strategy while focusing on cost effectiveness and best practices to enhance returns Developing new services for existing and new customers is a key deliverable at the core of the strategy
Trust Continuously improving Egytransrsquo capabilities and internal systems while investing in human capital the companyrsquos most valuable asset and one of the most important factors in achieving our success and leading position
Outlook
Over the strategic plan period to 2020 we expect a single-digit CAGRforsalesasweseektoreducethestrongfluctuationsthat are the result of our cyclical project business We do so by continuingalongthestrategyofdiversificationofbusinesslinesand strengthening of core business Strong performances from our core business together with disciplined cost management are expected to enable the business to continue to achieve strong results
4Q18EARNINGS RELEASE 14
4Q18EARNINGS RELEASE
Egytrans Investor Relations
Contact Information Name Sherif HelmyTelephone +20 1015172111Email iregytranscomWebsite iregytranscom
About Egyptian Transport and Commercial Services Company (Egytrans) The Egyptian Transport and Commercial Services Company (Egytrans) is a leading integrated transport and logistics company with a comprehensive portfolio of services in Egypt With experience dating back to 1939 the company was established in 197 under the name Egytrans It has since developedanumberofsubsidiaryandaffiliatebrandsconsistingof Egytrans Depot Solutions (EDS) Egyptian Transportation amp Logistics SAE (ETAL) Wilhelmsen Ships Service Egypt and Scan Arabia Working across 9 branches in Egypt the mission of Egytrans is to make integrated transport easy safe and cost-effective Egytrans enables and facilitates global and national supply chains through its extensive range of services including SeaFreightAirFreightLandTransportCustomsClearanceProject Logistics Exhibitions and Storage Egytrans employs around 350 employees across its operations in Egypt and is publiclytradedontheEgyptianStockExchange(EGX)as[ETRSCA]forReutersand[ETRSEYEquity]forBloombergFormore information please visit ir egytranscom
Forward Looking Statements
Statements contained in this document that are not historical facts are based on current expectations estimates projections opinions and beliefs of Egytrans Such statements involve known and unknown risks uncertainties and other factors undue reliance should not be placed thereon Certain information contained herein constitutes ldquotargetsrdquo or ldquoforward-looking statementsrdquowhichcanbeidentifiedbytheuseofforward-looking terminology such as ldquomayrdquo ldquowillrdquo ldquoseekrdquo ldquoshouldrdquo ldquoexpectrdquo ldquoanticipaterdquo ldquoprojectrdquo ldquoestimaterdquo ldquointendrdquo ldquocontinuerdquo or ldquobelieverdquo or the negatives thereof or other variations thereon or comparable terminology Actual events or results or the actual performance of Egytrans may differ materially from those reflectedorcontemplatedinsuchtargetsorforward-lookingstatements The performance of Egytrans is subject to risks and uncertainties Various factors could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this document including worldwide economic trendstheeconomicandpoliticalclimateofEgypttheMiddleEast and changes in business strategy and various other factors
4Q18EARNINGS RELEASE 14
4Q18EARNINGS RELEASE
Egytrans Investor Relations
Contact Information Name Sherif HelmyTelephone +20 1015172111Email iregytranscomWebsite iregytranscom
About Egyptian Transport and Commercial Services Company (Egytrans) The Egyptian Transport and Commercial Services Company (Egytrans) is a leading integrated transport and logistics company with a comprehensive portfolio of services in Egypt With experience dating back to 1939 the company was established in 197 under the name Egytrans It has since developedanumberofsubsidiaryandaffiliatebrandsconsistingof Egytrans Depot Solutions (EDS) Egyptian Transportation amp Logistics SAE (ETAL) Wilhelmsen Ships Service Egypt and Scan Arabia Working across 9 branches in Egypt the mission of Egytrans is to make integrated transport easy safe and cost-effective Egytrans enables and facilitates global and national supply chains through its extensive range of services including SeaFreightAirFreightLandTransportCustomsClearanceProject Logistics Exhibitions and Storage Egytrans employs around 350 employees across its operations in Egypt and is publiclytradedontheEgyptianStockExchange(EGX)as[ETRSCA]forReutersand[ETRSEYEquity]forBloombergFormore information please visit ir egytranscom
Forward Looking Statements
Statements contained in this document that are not historical facts are based on current expectations estimates projections opinions and beliefs of Egytrans Such statements involve known and unknown risks uncertainties and other factors undue reliance should not be placed thereon Certain information contained herein constitutes ldquotargetsrdquo or ldquoforward-looking statementsrdquowhichcanbeidentifiedbytheuseofforward-looking terminology such as ldquomayrdquo ldquowillrdquo ldquoseekrdquo ldquoshouldrdquo ldquoexpectrdquo ldquoanticipaterdquo ldquoprojectrdquo ldquoestimaterdquo ldquointendrdquo ldquocontinuerdquo or ldquobelieverdquo or the negatives thereof or other variations thereon or comparable terminology Actual events or results or the actual performance of Egytrans may differ materially from those reflectedorcontemplatedinsuchtargetsorforward-lookingstatements The performance of Egytrans is subject to risks and uncertainties Various factors could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this document including worldwide economic trendstheeconomicandpoliticalclimateofEgypttheMiddleEast and changes in business strategy and various other factors