Numbers above are rounded

KUWAIT – November 14, 2019 – Agility, a leading global logistics provider, today reported third-quarter earnings of 13 fils per share on net profit of KD 21.7 million, an increase of 8.4% (or 12.1% excluding IFRS16 impact) over the same period in 2018. Q3 EBITDA grew 20.9% (or 2.8% excluding IFRS16 impact) to KD 47.4 million, and revenue increased 1.6% to KD 400.7 million.

Year to date, earnings were 38.2 fils per share and net profit was KD 63.6 million, up 7.9% (or 11.3% excluding IFRS 16 impact). Year-to-date EBITDA was KD 142.4 million, an increase of 24.9% (or 6.4% excluding IFRS 16 impact). Revenue for the first three quarters was KD 1,175.8 million, an increase of 2.2%.

“Our Infrastructure portfolio of companies drove our results in the third quarter, with all major entities seeing growth. Our Global Integrated Logistics (GIL) business, on the other hand, was affected by challenging market conditions and trade-war headwinds that have affected the industry as a whole,” Tarek Sultan, Agility Vice Chairman and CEO, said. “Even so, GIL is moving forward aggressively with its digitization agenda to improve operational efficiency and drive a better customer experience.”

Sultan said: “We continue to invest in technology-driven change and seek to be the digital leaders in our industry. Our Agility Ventures team is partnering with innovative start-ups that are re-shaping the supply chain in areas ranging from green technologies to e-commerce. We are also accelerating in-house development, acquisitions, and partnerships to grow our digital logistics platform, Shipa. We believe this is the key to differentiating Agility and positioning us for future growth.”

Agility Global Integrated Logistics (GIL)

GIL EBITDA was KD 7.8 million (excluding IFRS 16 impact), a 1% decline from same period in 2018. The decrease was due to higher operating expenses related to new facilities, as well as investments in digital transformation.

GIL gross revenue was KD 285 million, a 2.4% decline (or 0.7% decline on a constant currency basis) from same period in 2018 due to challenges within the freight forwarding industry. GIL’s Q3 net revenue was KD 67.3 million, a 4% increase (or 5.3% increase on a constant currency basis) vs. Q3 2018.  The net revenue increase was driven mainly by growth in Ocean Freight, Project Logistics and Contract Logistics. The overall net revenue margin was 23.6% in Q3 vs. 22.2% in Q3 2018.

Q3 Air Freight volume fell 15.8% (in tonnage) as a result of trade concerns and lower demand from customers across industries and geographies.  This decline in volume was partially offset by higher yields – expressed as net revenue/ton – which increased 15.5%. As a result, Air Freight net revenue decreased 2.8% vs. Q3 2018.

Ocean Freight TEUs fell 9.3%, but Q3 yields improved 13.7% vs. the same period in 2018. GIL Ocean Freight yields were strongest in the Americas and Europe. Ocean Freight net revenue improved 3.2% as compared with Q3 2018.

Contract Logistics posted healthy growth, mainly in the US, Australasia, India and Singapore, with the MEA region continuing to perform well.  Project Logistics also showed solid and increased growth.

Excluding IFRS 16 impact, year-to-date GIL EBITDA was KD 24.5 million, flat vs. the same period in 2018. Year-to-date net revenue improved 2.7%, and revenue fell 2.1%.

To strengthen performance and its market differentiation, GIL is implementing its digital strategy. By accelerating its digital transformation, GIL intends to enhance customer and supplier connectivity, create innovative complex customer solutions, increase the efficiency of its business processes, and enable comprehensive business insight.

Agility’s Infrastructure Companies

Agility’s Infrastructure group EBITDA rose 3.8% to KD 32.6 million in the third quarter. Revenue reached KD 119.7 million, an increase of 13.4%. For the nine months, EBITDA grew 8.3%; and revenue increased 14.5% (all numbers exclude IFRS 16 impact).

Agility Logistics Parks (ALP) reported a 14.2% increase in third-quarter revenue as compared with the same quarter in 2018. Revenue from facilities completed in late 2018 contributed to strong results, as did yield improvement at existing facilities. Near-term growth will be driven by development of new logistics parks and warehouses in Saudi Arabia and Africa, along with optimization of the company’s land bank in Kuwait.

Tristar, a fully integrated liquid logistics company, posted 9.6% revenue growth in the third quarter, driven by increases in road transport, warehousing operations and the shipping business, in addition to business wins from new and existing customers. Tristar continues to execute and to look for opportunities to unlock additional value for its shareholders.

National Aviation Services (NAS) revenue rebounded, growing 8.5% in Q3 after a difficult start to the year. NAS’s first-half performance was hurt by unforeseen regulatory and operational expenses in Kuwait, price reduction in Cote d’Ivoire, and a temporary reduction of flights in and out of Afghanistan. NAS expects improvement in results to continue into Q4 and 2020. Operations in Mozambique, Tanzania and Morocco remain in launch phases and are hindering group performance, but Uganda, Jordan and Egypt continue to outperform.

United Projects for Aviation Services Company (UPAC) posted Q3 revenue growth of 1.4%. UPAC operations are still being affected by the shift in passenger traffic to dedicated airline terminals at Kuwait International Airport.  UPAC has been able to offset the impact by generating new revenue from car park management operations in (T4) and through the strong performance of its real estate management operations in Kuwait.  In Abu Dhabi, construction continues to progress on Reem Mall, a $1.2 billion project.

GCS, Agility’s customs modernization company, posted revenue growth of 8.2% in Q3. Gains were driven by implementation of new services in customs operations, digital services for the trade community, and port operations. GCS continues implementing digital initiatives to drive efficiency and improve profitability.

Recap of Agility third quarter 2019 Financial Performance (reported)

• Agility’s net profit increased 8.4% to KD 21.7 million in the 3^rd quarter of 2019. EPS was 13 fils vs. 12 fils a year earlier.
• Agility’s 3^rd quarter reported EBITDA increased 20.9% to KD 47.4 million.
• Agility’s 3^rd quarter revenue rose 1.6%, to KD 400.7 million and net revenue increased 6.5%.
• GIL 3^rd quarter revenue declined 2.4% to KD 285 million (a decline of 0.7% on a constant currency basis).
• Infrastructure’s 3^rd quarter revenue grew 13.4% to KD 119.7 million.
• Agility enjoys a healthy balance sheet with KD 2 billion in assets. Net debt on a reported basis was KD 295.1 million as of September 30, 2019 (excluding IFRS 16 Net debt is KD 196 million). Reported operating cash flow was KD 98.1 million for the nine months of 2019, an increase of 77.2%.

Agreement broadens cooperation, gives JD Logistics freight capacity, local warehousing options

Left to Right: Zachary Gidwitz and Stard Huang of JD Logistics stand alongside Henadi Al-Saleh and Sushant Palakurthi Rao of Agility at JD Logistics’ 4th Global Supply Chain Summit in Beijing

BEIJING – Oct. 30, 2019 – Agility, a leading global logistics provider, together with its digital innovation arm, Shipa, has signed a memorandum of understanding with JD Logistics, an independent business group under JD.com, China’s largest retailer, to collaborate on logistics in fast-growing e-commerce markets.

Agility and JD Logistics will work together to make it easier for consumers in some of the world’s fastest growing markets to get access to JD’s product range and products offered by JD Logistics’ merchant partners. The new agreement focuses on cross-border logistics, procurement and retail. It covers markets in Southeast Asia, the Middle East, and Africa.

In Southeast Asia, Agility will act as a cross-border business-to-consumer (B2C) trunk service provider, utilizing its strong air freight capacity, and will also act a local business-to-business (B2B) warehouse provider. In the Middle East and Africa, Agility will act as JD’s primary logistics service provider and will handle terminal customs clearance and delivery services for its B2C line, helping JD Logistics improve its local logistics system and build a more complete transportation service network. Jointly, Agility and JD Logistics will build door-to-door cross-border and local B2C services. JD Logistics is the operator of China’s largest B2C e-commerce fulfillment network.

In addition, Agility and JD will also cooperate in retail and procurement by promoting high-quality products made or assembled in the Middle East and Africa to Chinese sourcing merchants, and creating more sales channels for Chinese merchants. Agility will also help strengthen JD’s international supply chain. At the same time, JD will leverage its extensive logistics network and industry expertise to help Agility and its partners further enhance their footprint in the Chinese market, and increase overall operations efficiency.

Henadi Al-Saleh, Chairperson of Agility, said: “Agility has a long record of providing specialized services in emerging markets. By partnering with JD Logistics, we will leverage our respective strengths to make it easier to connect the businesses looking to tap the consumer demand in fast-growing markets such as ASEAN and the Middle East with the vast supplier base in China.”

Zhenhui Wang, CEO of JD Logistics said: “JD Logistics has developed advanced supply chain systems, technology and operations, and has extensive supply chain and logistics management experience. By partnering with Agility, we will provide customers with a variety of transportation services for ocean, land, air and rail transportation, helping us design the optimal logistics solution to reduce costs and increase efficiency for customers.”

The MOU was signed at JD Logistics’ 4^th Global Supply Chain Summit in Beijing. The summit focused on the impact of advanced technologies on the global industrial economy and examined how artificial intelligence, big data, cloud computing and blockchain will affect economic and social development.

Supply chain and logistics operations in Africa are beset by difficulties including a lack of infrastructure and suitable storage facilities. One logistics provider, Agility Africa, hopes to tackle this by establishing a chain of high-quality warehouses throughout the continent

Operating in Africa can be a big challenge, and the establishment of a new supply chain there even more so. The acquisition or construction of decent storage facilities, the recruitment of suitable staff and the need to contend with local laws are all potential barriers to setting up business. However, Agility Africa, a division of the Kuwait-based parent company which operates in more than 100 countries, aims to change this by “de-risking” the process and providing a series of well-managed logistics facilities across the continent.

Geoffrey White, CEO of Agility Africa, told Automotive Logistics that the company has a “build it and they will come” strategy regarding setting up warehouses in key ports on the continent. “There is a risk perception regarding Africa that is incredibly high,” he says. “This is a big disincentive for a lot of people to come.”

In implementing this strategy, the company is committing itself to major investments: at least $200m on each park. These start with a first phase covering around 25,000 sq.m, with more space of similar size added as demand grows.

Read full article on Automotive Logistics

Agility Fairs & Events has been the official logistics partner of the Porsche Carrera Cup Asia since 2016. Watch how we ensure precision both on and off the track. It takes Agility.

New 900,000 sqm logistics park in Riyadh represents support of Vision 2030

RIYADH – October 20, 2019 – Agility, a leading global logistics provider, today announced the opening of a new 900,000 square meter logistics park in Riyadh, part of a series of investments in the country valued at 1 billion Saudi riyals (SAR).

The new facility, inaugurated on October 17, was developed by Agility Logistics Parks (ALP) and includes 250,000 sqm of built-up, high standard warehousing and logistics facilities. The Riyadh ALP will serve leading multinationals as well as small and medium-sized businesses operating in Saudi Arabia.

H.E. Dr. Nabil Alamoudi, Saudi Arabia Minister of Transportation, said: “The Kingdom of Saudi Arabia is heavily investing in logistics infrastructure, to enable us to compete globally, in line with the goal set out in Vision 2030. The support of key private sector partners, such as Agility, will help us achieve this vision.”

The development of the new Riyadh ALP is consistent with Saudi Arabia’s intent to become a regional and global logistics hub. Among the goals outlined as part of the country’s Vision 2030, the Saudi government seeks to diversify the economy, grow the private sector, create new jobs, improve its competitiveness, become a logistics leader, increase non-oil exports, and draw foreign investment.

Henadi Al-Saleh, Chairperson, Agility, said: “Agility is committed to building infrastructure that will strengthen the business environment for both multinationals and small and medium-sized businesses in the Kingdom. Our investments, valued at SAR 1 billion, are aimed at driving the development of logistics facilities across Saudi Arabia. The Agility Logistics Park in Riyadh represents our commitment to supporting the Kingdom’s 2030 vision to become a regional and global logistics hub.”

Across the GCC, and in Saudi Arabia, Agility also invests in technology to transform the logistics industry. Agility is an investor in Homoola, a digital load-matching service that is based in Saudi Arabia and uses technology to improve road freight efficiency by connecting shippers and trucking companies. In addition, Agility’s digital logistics arm – Shipa – also operates in the Kingdom, providing last-mile delivery services as well as access to the world’s most comprehensive online freight forwarding platform.

In the 2019 Agility’s Emerging Markets Logistics Index, Saudi Arabia ranked sixth globally, and fifth for business fundamentals, among the world’s 50 leading emerging markets, indicative of the country’s notable improvement in its business environment.

Successful contract extension includes innovative paperless technology and digital dimensioning solution

Bonn, Hamburg, September 24, 2019: Messe Frankfurt, one of the world’s largest exhibition, congress and event organizers, has extended its exclusive cooperation with forwarding agents DHL Trade Fairs & Events and Agility for five years. This is the third time in a row that both companies have been contracted as the official logistics providers for the exhibition grounds in Frankfurt. These grounds span almost 60 hectares, and feature 11 halls with over 400,000 sqm of indoor and outdoor exhibition space. Messe Frankfurt organizes close to 50 trade fairs a year, including the Frankfurt Book Fair and the International Motor Show (IAA).

“We’re proud to be an exclusive logistics partner for Messe Frankfurt”, says Stefan Engisch, Head of Trade Fairs & Events Germany. “This contract is one of the biggest in global exhibition logistics and by combining best-in-class services and innovative technological solutions we have once more proven being provider of choice for fair and event logistics.”

At the Messe Frankfurt exhibition grounds, Agility and DHL work closely to coordinate the delivery of goods to the exhibition grounds, handle customs procedures, loading and unloading, and ensure the timely delivery of exhibits and their assembly at exhibition stands. Exhibitors have access to a large warehouse for empty transport packaging and unneeded exhibition material. To facilitate and expedite the dimensioning and registration process of all incoming and outgoing shipments DHL Trade Fairs & Events implemented an innovative volume measurement solution. The solution works with camera sensors of a renowned game consoles manufacturer using 3D camera technology.

Further, a specially designed IT solution has been introduced to ensure the smooth and largely paperless handling of all orders, giving all three partners – Messe Frankfurt, DHL and Agility – simultaneous access to all information from every order. Employees will use mobile devices to record all deliveries upon arrival. Additionally, orders, changes and performance specifications can be saved and displayed in real time.

“Agility has been working with DHL to organize professional logistics for exhibitors and visitors at Messe Frankfurt since 2007. Our experience working at this venue gives us unrivaled knowledge of the exhibition space, and demonstrates our successful track record of delivering outstanding logistics services at events and exhibitions across the globe,” said Markus Lingohr, CEO for Central Europe at Agility.

Agility Fairs & Events continues to provide logistics support for the exhibition center

LONDON, United Kingdom – September 4, 2019 – Following a successful seven-year partnership, Agility, a leading global logistics provider, has been awarded an extended contract by ExCeL London exhibition and international convention center to continue being their venue preferred logistics partner.

Under the new five-year contract, Agility Fairs & Events will continue to partner with ExCeL to provide event organizers, exhibitors and contractors with specialist event transportation, pre and post show storage, on-site receiving and delivery, forklift/mechanical handling equipment and customer logistics advice and support.

“We have been working with ExCeL since 2012, and our on-site presence gives us a tremendous insight into their business,” said David Richards, European Regional Director for Agility Fairs & Events. “This renewal demonstrates our successful track record of delivering world-class logistics services at ExCeL. We are excited to continue this partnership for the benefit of the venue’s event organizers and exhibitors.”

ExCeL London, the international exhibition and convention center, is the host venue for a variety of events from award-winning exhibitions and conferences to international association meetings, product launches, banquets, award ceremonies, and sporting events.

“Our vision is to create truly memorable experiences at ExCeL London for organisers, exhibitors and visitors alike,” said Jeremy Rees CEO of ExCeL London.   “It is crucial that we align ourselves with the right service partners so that events continue to thrive at ExCeL. We made a commitment to work with Agility Fairs & Events over six years ago because of the critical importance of freight forwarding and logistics to our organisers and exhibitors. We are delighted to be extending our partnership and the successful and enduring collaboration with the Agility team based at ExCeL.”

Agility committed to supporting start-ups that pioneer the sustainable supply chains of the future

BAAR, Switzerland – 27 Aug, 2019 – Agility, a leading global logistics provider, announced that it has invested $18 million in green supply chain technologies so far through its corporate venture arm Agility Ventures.

The announcement came today as part of Agility’s launch of its latest sustainability report, “Values into Action.” It follows the news that Agility committed to adopt science-based targets for greenhouse gas emissions reduction and achieved third-party certification for its shipment emissions reporting.

Agility is pursuing an ambitious environmental strategy. By 2025, it plans to cut its emissions by 25% from 2016 levels. To reach that goal, the company is implementing renewable energy pilots in large facilities across the world and building to green standards as it adds over 300,000m2 of facilities to its portfolio of warehousing and light industrial facilities across the Middle East and Africa. Agility incorporates sustainability into business discussions with customers and offers emissions reports using a methodology certified to ISO 14064 standards. To drive green transformation across the industry, Agility Ventures has made green technologies one of its four core investment areas.

Agility Chairwoman Henadi Al-Saleh said: “Green technology is a major focus of our investment strategy, and we’re always on the lookout for dynamic new businesses that can revolutionize the supply chain to help protect the planet. We are looking at innovative solutions that drive business value by reducing costs, increasing efficiency, and reducing energy consumption at the same time.”

Green technology start-ups benefitting from the $18 million investment include Hyliion and TVP Solar. Hyliion is a hybrid technology for the trucking industry that reduces fuel consumption and corresponding emissions by up to 30 percent. It achieves this by recycling kinetic energy from braking that would otherwise be wasted. TVP Solar is a break-through, high-vacuum solar thermal technology serving the most energy-demanding applications, such as air conditioning, desalination, and process heat. Already deployed in the Middle East – including in Agility’s corporate headquarters – TVP solutions operate autonomously with no need for cleaning, directly replacing fossil fuels with cheaper, cleaner, solar heat.

Agility CEO Tarek Sultan said the company has strived to set high standards for corporate citizenship over the past decade, particularly in the areas of environmental responsibility, humanitarian relief logistics, and fair labor practices.

“We’ve invested heavily in our human rights approach over the years and tried to lead by example, especially in emerging markets. Our community outreach program has helped more than 1.6 million people in need and we’ve supported the education of over 36,000 students around the world in the last three years. In partnership with the humanitarian community, Agility has donated logistics expertise and services to more than 45 major humanitarian operations in countries ranging from Indonesia to Peru. Agility’s investments in the environment are the company’s new frontier.”