Official freight and on-site handler at leading toy and hobby exhibition

LONDON – August 9, 2017 – Agility, a leading global logistics provider, has been appointed official freight and on-site handling contractor at the prestigious Toy Fair for 2018-2020.

Agility Fairs & Events will assist exhibitors and their contractors with international logistics and shipping requirements for moving their exhibits to and from the trade show. Organized by the British Toy and Hobby Association (BTHA), The Toy Fair is the UK’s leading trade exhibition for the toy and hobby industry, held annually at the Olympia London fairground.

“Agility continues to offer us a first-class efficient and professional service. The management are highly experienced, communicative and reliable, whilst the team on-site endeavor to assist our exhibitors in all ways possible in order to meet their needs. The decision to renew the contract was an easy one, and I wouldn’t hesitate to recommend their services to other event organisers,” said Majen Immink, Director of Fairs & Special Projects, BTHA.

“Agility have been involved with BTHA and The Toy Fairs for over 10 years, and it’s a great pleasure to be able continue our relationship,” said Garcia Newell, Business Development Director for Agility Fairs & Events UK.

​Report shows GST will drive growth despite jolt from recent move to replace currency notes

BAAR, Switzerland – July 19 2017 – The shift to a unified national tax has set off a wave of change in India’s notoriously inefficient logistics sector as companies alter the way they store, move and account for goods, the Agility Mid-Year Emerging Markets Review finds.

India’s Goods and Services Tax (GST), introduced July 1, rolled more than a dozen state and federal levies into a single tax. The GST is already prompting logistics providers and their customers to consolidate warehousing, revamp road freight strategies, and invest in system upgrades to improve the efficiency of their supply chains.

The GST could cut logistics costs in India’s formal, organized logistics sector by 20% and provide a dramatic boost to the country’s surging economy, according to the Agility report, which also examines the impact of the UK’s Brexit on emerging markets.

Essa Al-Saleh, CEO of Agility Global Integrated Logistics, says the GST and other changes encourage long-overdue investment in Indian infrastructure. “The GST eliminates borders and checkpoints between India’s 29 states, paving the way for big efficiency gains,” Al-Saleh says. “Companies can carry less inventory, move to hub-and-spoke warehousing, take advantage of long-haul trucking, and look to third-party logistics providers to improve operations and save.”

The Agility report was prepared by Transport Intelligence, a leading analysis and research firm for the logistics industry. The report indicates that India’s overnight decision in late 2016 to introduce new bank notes sapped economic growth and curtailed activity in the country’s massive, cash-based informal sector of small merchants, truckers and others. But it concludes that the impact of “demonetisation” will be short-lived.

In its look at Brexit, the Agility report highlights hurdles faced by the UK in its effort to “cut and paste” existing European Union trade rules into an exit agreement with the EU. The more difficult the terms of a UK-EU divorce, the more likely the UK is to seek ambitious new trade deals with emerging markets countries, particularly Commonwealth countries in Southeast Asia and Africa, the report finds.

Brexit leaves key emerging markets exporters – South Africa, Kenya, Turkey and others – exposed because the value of the pound has declined and the UK economy is expected to be smaller as a result of the UK’s departure from the EU.

The Agility report also suggests that emerging markets countries using the UK as a gateway to Ireland and other EU countries will need to find new routes to those markets. UK exports to the EU could face burdensome checks and customs procedures unless the UK hews to EU product standards and British transporters conform with EU transport rules.

Agility Mid-Year Emerging Markets Review: www.agility.com/2017index

Agility partners with Transport Intelligence to produce the annual Agility Emerging Markets Logistics Index, a ranking of the world’s 50 leading emerging markets and a survey of more than 800 global logistics industry professionals.

UK may lose role as gateway to Ireland, other EU markets

BAAR, Switzerland – July 19, 2017 – The UK will try to spark its economy through trade with emerging markets if it is unable to preserve the basic outlines of its current relationship with European Union trading partners, says the Agility Mid-Year Emerging Markets Review.

The UK government has expressed the desire to maintain something akin to its existing trade relationship with the EU, but the EU’s chief negotiator has said “frictionless trade” is “not possible” following Brexit.

The more difficult the UK-EU divorce, the more likely the UK is to seek ambitious new trade deals with emerging markets countries, particularly Commonwealth countries in Southeast Asia and Africa, the Agility report indicates. Brexit leaves key emerging markets exporters – South Africa, Kenya, Turkey and others – exposed because the value of the pound has declined and the UK economy is expected to be smaller in the initial aftermath of the UK’s split with the EU.

The Agility report was prepared by Transport Intelligence, a leading analysis and research firm for the logistics industry. It suggests that emerging markets countries using the UK as a gateway to Ireland and other EU countries might need to find new distribution centers and routes to those markets. Meantime, UK exports to the EU could face burdensome checks and customs procedures unless the two form a new customs union and the UK hews to EU product standards.

Essa Al-Saleh, CEO of Agility Global Integrated Logistics, says it is too soon to know how UK-EU negotiations will go, “but apart from the political hurdles, the UK’s desire for ‘frictionless’ trade with the EU faces complex technical obstacles – what to do about tariff-rate quotas, rules of origin, product standards and import duties. Anything that alters existing UK-EU arrangements probably means delays and added cost to the movement of goods.”

In addition to Brexit, the Agility report looks at the impact of India’s decision to replace more than a dozen state and federal levies with a single Goods and Services Tax (GST). The shift to a unified national tax has set off a wave of change in India’s notoriously inefficient logistics sector as companies alter the way they store, move and account for goods, the report finds.

The GST, introduced July 1, is already prompting logistics providers and their customers to consolidate warehousing, revamp road freight strategies, and invest in system upgrades to improve the efficiency of their supply chains. It could cut logistics costs in India’s formal, organized logistics sector by 20%, encourage infrastructure investment, and provide a dramatic boost to the country’s surging economy, according to the Agility report.

Agility Mid-Year Emerging Markets Review

Agility partners with Transport Intelligence to produce the annual Agility Emerging Markets Logistics Index, a ranking of the world’s 50 leading emerging markets and a survey of more than 800 global logistics industry professionals.

Agility today announced a settlement in the criminal case involving the U.S. government food-supply contracts that the company held from 2003 to 2010 (the “Prime Vendor Contracts”).

In the criminal portion of the case, Agility agreed to plead to a misdemeanor in connection with a single invoice valued at $551 (KD 167). The misdemeanor is a minor offense, unrelated to any of the original criminal charges, requiring Agility to pay a maximum of $551 (KD 167) in restitution, but no criminal fine.

Agreement to settle the criminal portion of the case is conditional upon Agility signing a separate agreement with the U.S. Department of Justice resolving the pending civil case captioned United States of America, ex rel, et al. v. the Public Warehousing Company, et al., Case No. 1:05-cv-02968-TWT. Any agreements will be subject to final District Court approval.

A settlement, once finalized, will resolve all outstanding criminal issues with the U.S. government in connection with the Prime Vendor contracts for Agility, its affiliates, employees, directors, and officers. The civil proceedings with the U.S. Department of Justice in connection with the Prime Vendor Contracts remain pending.

Separately, Agility also entered into settlement agreements with the Defense Logistics Agency resolving all pending and potential administrative claims between Agility and DLA involving the Armed Services Board of Contract Appeals, and resolving Agility’s suspension from federal government contracting.

The DLA agreements are conditional upon Agility signing a further settlement agreement with the U.S. Department of Justice resolving the pending civil case.

These agreements, once made effective, will allow Agility to resume pursuit of new U.S. government contracts. Under the terms of the settlement, the U.S. government has agreed to remove Agility and its subsidiaries and affiliates from the list of suspended companies on its System for Award Management (SAM) database, formerly known as the Excluded Parties List System (EPLS), within 60 days.

For more information, contact [email protected].

New logistics partner for prestigious Porsche Motorsports racing series

BAAR, Switzerland – May 18th 2017 – Agility, a leading global logistics provider, has signed a three-year logistics partnership agreement with Porsche Motorsports for the seven-weekend Porsche Carrera Cup Deutschland (PCCD) racing series.

Agility is active in a number of industry verticals and the automotive sector is a key area of focus, with the company already serving leading automakers, parts manufacturers and after-market suppliers in Germany and around the world. Agility works with automotive customers to improve visibility, shorten delivery times, cut costs, manage supplier networks and increase efficiency.

“Porsche Motorsports and the teams competing in various series have exacting logistics requirements. This partnership with the PCCD gives us an opportunity to demonstrate our understanding of the special demands of automotive logistics and our ability to deliver under the pressure of race conditions,” said Essa Al-Saleh, CEO of Agility Global Integrated Logistics.

Dr. Frank Steffen Walliser, Porsche Vice President Motorsport & GT-Cars, said, “The German Carrera Cup is one of the most tradition-steeped brand trophies in the world and we welcome Agility to join our select group of partners. We look forward to a long and successful partnership.”

The 2017 edition of the PCCD series opened May 5-7 at Hockenheim and features Porsche 911 GT3 Cup vehicles in 60-kilometer Saturday sprints and 80-kilometer Sunday races.

Financial Highlights

KUWAIT – May 10, 2017 – Agility, a leading global logistics provider, today reported earnings of 12.7 fils per share on net profit of KD 14.6 million, an increase of 11.4% over the same period in 2016.

Agility reported EBITDA of KD 30.8 million, a 17.4% increase, along with revenue of KD 320.5 million, a 7.3% increase over Q1 2016. The results represent the fifth consecutive quarter of double-digit growth in Agility’s EBITDA, in line with the company’s long-term guidance.

“Our performance has been driven by strong growth in our Infrastructure companies in emerging markets and by the steady progress we have made in improving the underlying fundamentals of our commercial logistics business,” said Tarek Sultan, Agility Vice Chairman and CEO. “We remain on track to achieve our target of $800 million in EBITDA by 2020.”

Agility Global Integrated Logistics (GIL)

Revenue for Agility Global Integrated Logistics (GIL), the company’s core logistics business, grew 6.5% in Q1, to KD 240.3 million. Revenue growth was driven by all products. Air freight volume grew 16% and ocean freight volume grew 12.5% this quarter, both outpacing the market average.

GIL net revenue grew 2% in Q1, increasing in most products and showing a 9% increase in contract logistics over the same period a year earlier. Net revenue margins, 26% in Q1 2016, declined to 25%, mainly because of pressure on rates and tightening capacity on major trade lanes.

GIL EBITDA fell by 12% (7.4% on a constant currency basis) for the quarter, despite revenue and net revenue growth. GIL’s Q1 EBITDA margins were 2.4% vs. 2.9% in Q1 2016. EBITDA decreased because of increased currency fluctuations; ongoing investments in technology development; and increased investment in solutions and growth opportunities in its core markets and verticals.

“GIL is winning new business and containing its costs by driving productivity increases. We believe our strategic focus on trade lanes, solutions and sales excellence will lead to continued growth in freight forwarding volumes this year,” Sultan said.

GIL is investing in profitable and growing contract logistics businesses. New facilities are coming online in the Middle East and Singapore over the course of 2017. GIL is also investing in transforming its business through technology and further strengthening its online solutions for customers.

Agility’s Infrastructure Companies

Agility Infrastructure group EBITDA rose 24.1%, to KD 27.4 million, on revenue growth of 8.6%. Agility Real Estate and Tristar are the main drivers behind the growth.

Agility Real Estate, the largest contributor in the group, increased revenue by 10.8% in Q1. Agility Real Estate is the largest private owner of industrial real estate in the Middle East and Africa, where it is developing new facilities. In Kuwait, Agility is developing more than 900,000 sqm. of warehousing over the next three years.

Tristar is a fully integrated liquid logistics company serving the downstream oil and gas industry with surface transport, ocean shipping, dangerous goods warehousing, fuel farm management and other services. Tristar reported healthy growth in this quarter, driven by new shipping business complimented by its recent E-ships acquisition. Tristar is focused on diversifying its customer base and expanding its shipping business while increasing its productivity.

National Aviation Services (NAS) has become one of the largest ground handling and airport services companies in emerging markets. With a leading position in Africa, NAS will continue to focus primarily on the continent for growth. NAS’s Q1 revenue growth was driven by its Cote D’Ivoire operations, which saw double-digit increases in flight volumes. NAS is also launching operations in Morocco and working on improving yields in its Kuwait business.

UPAC, a publically-listed commercial real estate company, announced earnings of KD 2.2 million, a 14.5% increase over the same period in 2016. UPAC revenue increased 7.4% to KD 3.5 million. UPAC continues to improve its managed projects at the Kuwait airport and Discovery Mall, increasing footfall and demand for space, and achieving 100% utilization. The Reem mega-mall in Abu Dhabi, a planned retail, entertainment, and dining destination of more than 2 million square feet, is key to UPAC’s future growth and development.

Recap of Agility Q1 Financial Performance

• Agility’s net profit increased 11.1% to KD 14.6 million in Q1 2017. EPS was 12.7 fils vs.11.4 fils a year earlier.
• EBITDA increased 17.4% to KD 30.8 million.
• Q1 revenue rose 7.3%, to KD 320.5 million and net revenue increased by 8.6%.
• GIL EBITDA fell 12% (7.4% on a constant currency) while its revenue grew 6.5%.
• Infrastructure’s revenue grew 8.6% to KD 81.8 million, compared with Q1 2016.
• Agility enjoys a healthy balance sheet with KD 1.6 billion in assets. Net debt position was KD 56.4 million as of March 31, 2017. Operating cash flow was KD 24.3 million for the first quarter of 2017, which represents 78.9% of EBITDA.

Summary

Agility is entering an investment and growth phase and expects:

• EBITDA: double-digit growth
• Net profit: growth at a slower rate than EBITDA due to interest expense and minority interest
• Free cash flow: limited due to capex program
• Debt: move to net debt position from the net cash position maintained over the past six years. Debt ring-fenced at the operating level with limited parent recourse and guarantee.

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Deepens high-end service offering for manufacturers, retailers, e-commerce customers

SINGAPORE – March 20, 2017 – Agility, a leading global logistics provider, acquired a two-story warehouse close to Changi International Airport, giving it more than 600,000 square feet of warehouse space in total in Singapore.

The newly acquired 177,000-square-foot warehouse is located in an area with access to an array of logistics services and two major expressways. Agility has operated in Singapore for more than 40 years and employs more than 400 people there. It owns four other warehouses in Singapore.

With an expanded footprint, Agility will be offering more services: automated quality inspections; a container-management e-system; a large-scale recycling program for packing materials; and enhanced warehouse management systems with regional data back-up and business-continuity features.

Mykell Lee, Agility CEO Singapore, said the company’s decision to invest S$25.5 million (US$18.25 million) in the warehouse is a sign of its long-term commitment and belief in Singapore as one of the world’s foremost transportation and shipping hubs. He said the acquisition gives Agility more capacity to add to its value-added service offering, which includes testing, assembly, configuring, labelling and packing.

“We aren’t just storing goods within four walls. In an expensive market like Singapore, customers want service innovation,” Lee said. “We are offering them technology-driven solutions to optimize their supply chains across the region. We have strong infrastructure and well-trained people to help execute that vision.”

Lee said Agility customers want help managing vendors, spare parts and raw materials. In addition, Agility provides tracking and visibility systems that allow customers to keep up with increasingly rapid inventory turns and complex supply chains. “For our fashion and retail customers, for example, we’re also the ones tagging goods with price and security labels, managing reverse logistics, promotions, and warehouse and atrium sales,” Lee said.

Agility’s acquisition comes as Singapore is expanding and upgrading port and airport infrastructure as part of its strategic plan to strengthen its position as a global logistics powerhouse and emerging leader in fast-growing Asian e-commerce. While historically a B2B provider in Singapore, Agility has recently partnered with a number of customers to help expand their supply chains from brick-and-mortar stores to e-commerce home delivery. “The market is moving and creating new opportunities. We are uniquely positioned to grow with our customers in this space.”