NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION

THIS ANNOUNCEMENT IS NOT AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER UNDER RULE 2.7 OF THE CITY CODE ON TAKEOVERS AND MERGERS AND THERE CAN BE NO CERTAINTY THAT AN OFFER WILL BE MADE

FOR IMMEDIATE RELEASE

14 February 2022

Further to the announcement on 10 February 2022, National Aviation Services (“NAS“) reiterates its belief that its improved possible cash offer for John Menzies PLC (“Menzies”) at a price of 510 pence per share represents a full and fair value for Menzies and a compelling opportunity for Menzies shareholders to realise their investment in cash in the near-term.

Contrary to what has been publicised, NAS’s improved possible offer represents a pre-IFRS 16 EV/EBITDA 2019 multiple of 9.5x⁽¹⁾, broadly in line with the median multiple paid in comparable transactions.⁽²⁾

NAS and Agility Public Warehousing Company KSCP group (“Agility”) are strategic operators with deep expertise in airport services and global logistics that take a financially disciplined approach to investments and acquisitions.

The improved possible cash offer of 510 pence per share reflects the following assumptions:

• Menzies’ revenue recovers to pre-pandemic levels by early 2023;
• Menzies’ margin forecasts incorporate the full benefit of the cost savings publicly disclosed by management; and
• the material government support received under Covid-19 schemes in the U.K, U.S. and other key markets will be replaced by sustainable cash flows going forward.

As a successful strategic operator in the aviation services sector, NAS has a clear and detailed view on the challenges and opportunities present in the sector as it recovers from the pandemic and has framed its analysis on that basis.

Menzies’ board and management team have chosen not to engage with NAS or share any information to corroborate their differing views on the company and industry, and therefore valuation. NAS sees no reason to change its view on valuation and continues to view its improved possible cash offer of 510 pence per share as a full and fair price relative to the information Menzies has provided to the market on its current business and prospects.

NAS has today again requested information access and dialogue with management. NAS looks forward to engaging with Menzies’ shareholders in parallel.

Hassan El-Houry, NAS CEO said:

“We made a compelling offer that represents a 76% premium to the company’s share price less than two weeks ago. Our view is that Menzies has a strong brand legacy with a geographic presence that is complementary to NAS, but as operators ourselves, we also see a sector facing a number of challenges and a company that lacks the balance sheet to thrive. Unfortunately, Menzies’ management has not meaningfully engaged in a way that changes our view.”

Pursuant to Rule 2.5 of the Code, NAS reserves the right to introduce other forms of consideration and/or vary the mix or composition of consideration of any offer and vary the transaction structure. NAS also reserves the right to amend the terms of any offer (including making the offer at a lower value) in the circumstances set out in its announcement of 10 February 2022.

In accordance with Rule 2.6(a) of the Code, NAS must, by not later than 5.00 p.m. (London time) on 9 March 2022, either announce a firm intention to make an offer for Menzies in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer for Menzies, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.

This deadline will be extended only with the consent of Menzies and the Takeover Panel in accordance with Rule 2.6(c) of the Code.

A further statement will be made as appropriate.

Enquiries:

Agility Public Warehousing Co. KSCP
Jonathan Kerherve
+44 (0) 75 4019 4997

Barclays Bank PLC, acting through its Investment Bank
Omar Faruqui
Chris Brooks
Osman Akkaya
+44 (0) 20 7623 2323

Finsbury Glover Hering
James Murgatroyd
Richard Webster-Smith
+44 (0) 20 7251 3801

Barclays Bank PLC, acting through its Investment Bank (“Barclays”), which is authorised by the Prudential Regulation Authority and regulated in the United Kingdom by the Financial Conduct Authority and the Prudential Regulation Authority, is acting exclusively for NAS and no one else in connection with NAS’s evaluation of Menzies and will not be responsible to anyone other than NAS for providing the protections afforded to clients of Barclays nor for providing advice in relation to a possible offer or any other matter referred to in this announcement.

In accordance with the Code, normal United Kingdom market practice and Rule 14e-5(b) of the Exchange Act, Barclays and its affiliates will continue to act as exempt principal trader in Menzies securities on the London Stock Exchange. These purchases and activities by exempt principal traders which are required to be made public in the United Kingdom pursuant to the Code will be reported to a Regulatory Information Service and will be available on the London Stock Exchange website at www.londonstockexchange.com. This information will also be publicly disclosed in the United States to the extent that such information is made public in the United Kingdom

In accordance with Rule 26.1 of the Code, a copy of this announcement will be available at www.nas.aero, by no later than 12 noon (London time) on 15 February 2022. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.

This announcement is not intended to, and does not, constitute an offer to sell, or the solicitation of an offer to subscribe to buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote in any jurisdiction.

The release, publication or distribution of this announcement in jurisdictions outside the United Kingdom may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves about, and observe such restrictions. Any failure to comply with such restrictions may constitute a violation of the securities law of any such jurisdiction.

Notes

Note 1. Rounded to 1 decimal place.

2019 pre-IFRS EBITDA of £69.1m – calculated as 2019 reported EBITDA of £138.7m (Source: John Menzies Annual Report and Accounts 2019, published 8 April 2020, page 29, reported as underlying operating profit), minus IFRS 16 depreciation charge of right of use assets of £62.0m for 2019 (Source: John Menzies Annual Report and Accounts 2020, published 8 April 2021, page 183), minus IFRS 16 interest charge on lease liabilities of £7.6m for 2019 (Source: John Menzies Annual Report and Accounts 2020, published 8 April 2021, page 183).

2019 enterprise value of £653.3 – calculated as equity value (£479.7m) plus net borrowings (£184.2m) plus non-controlling interest in equity (£4.7m) minus investment in joint venture and associates (£13.5m), where:

• Equity value (£479.7m) is calculated using an offer price of 510p multiplied by shares outstanding on a fully diluted basis of 94.1m ordinary shares. The fully diluted shares outstanding is based on 91.9m ordinary shares in issue (excluding treasury shares) (Source: Company announcement, Total Voting rights, released on 1 February 2022), plus the dilution impact of 2.2m ordinary shares which is calculated based on the outstanding share options from 2017-2020 as at 31 December 2020 (Source: John Menzies Annual Report and Accounts 2020, published 8 April 2021, page 189), outstanding LTIP awards as at 31 December 2020 (Source: John Menzies Annual Report and Accounts 2020, published 8 April 2021, page 191) and additional LTIP awards granted on 15 March 2021 (Source: Company announcement, Long-Term Incentive Plan (“LTIP”): Performance Conditions for 2021, released on 2 August 2021), and outstanding TIP awards as at 31 December 2020 (Source: John Menzies Annual Report and Accounts 2020, published 8 April 2021, page 117), assuming net settlement based on the exercise prices of such options and awards and an offer price of 510p.
• Net borrowings as at 30 June 2021(£182.4m) is calculated as preference shares of £1.4m, plus bank overdrafts of £70.8m, plus bank loans due within one year of £12.1m, plus debt due after one year of £261.5m, plus government loan due after one year of £41.7m, plus net derivative liabilities of £1.2m, less cash and cash equivalent of £206.3m (Source: John Menzies Interim Results Announcement 2021, published 1 September 2021, page 27).
• Non-controlling interest in equity as at 30 June 2021 is £4.7m (Source: John Menzies Interim Results Announcement 2021, published 1 September 2021, page 15).
• Investments in joint ventures and associates as at 30 June 2021 are £13.5m (Source: John Menzies Interim Results Announcement 2021, published 1 September 2021, page 15).

Note 2. As per page 8 of the Menzies’ Response to National Aviation Services (“NAS”) Proposal presentation dated February 2022.

Disclosure requirements of the Code

Under Rule 8.3(a) of the Code, any person who is interested in 1% or more of any class of relevant securities of an offeree company or of any securities exchange offeror (being any offeror other than an offeror in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must make an Opening Position Disclosure following the commencement of the offer period and, if later, following the announcement in which any securities exchange offeror is first identified. An Opening Position Disclosure must contain details of the person’s interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be made by no later than 3.30 pm (London time) on the 10th business day following the commencement of the offer period and, if appropriate, by no later than 3.30 pm (London time) on the 10th business day following the announcement in which any securities exchange offeror is first identified. Relevant persons who deal in the relevant securities of the offeree company or of a securities exchange offeror prior to the deadline for making an Opening Position Disclosure must instead make a Dealing Disclosure.

Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1% or more of any class of relevant securities of the offeree company or of any securities exchange offeror must make a Dealing Disclosure if the person deals in any relevant securities of the offeree company or of any securities exchange offeror. A Dealing Disclosure must contain details of the dealing concerned and of the person’s interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s), save to the extent that these details have previously been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 pm (London time) on the business day following the date of the relevant dealing.

If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire or control an interest in relevant securities of an offeree company or a securities exchange offeror, they will be deemed to be a single person for the purpose of Rule 8.3.

Opening Position Disclosures must also be made by the offeree company and by any offeror and Dealing Disclosures must also be made by the offeree company, by any offeror and by any persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).

Details of the offeree and offeror companies in respect of whose relevant securities Opening Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Takeover Panel’s website at www.thetakeoverpanel.org.uk, including details of the number of relevant securities in issue, when the offer period commenced and when any offeror was first identified. You should contact the Panel’s Market Surveillance Unit on +44 (0) 20 7638 0129 if you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION

THIS ANNOUNCEMENT IS NOT AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER UNDER RULE 2.7 OF THE CITY CODE ON TAKEOVERS AND MERGERS AND THERE CAN BE NO CERTAINTY THAT AN OFFER WILL BE MADE

FOR IMMEDIATE RELEASE

10 February 2022

NAS Holding for Company’s Business Management (Holdco) S.P.C. (“National Aviation Services” or “NAS”) notes the announcement made by John Menzies PLC (“Menzies”) on 9 February 2022 and confirms that it has made two proposals to Menzies:

• The first proposal was made on 17 January 2022 regarding a possible cash offer to acquire the entire issued and to be issued share capital of Menzies at an offer price of 460 pence per share. This proposal was rejected by the Board of Menzies on 26 January 2022.
• The second proposal, also rejected by the Board of Menzies, was made on 2 February 2022 regarding an improved possible cash offer at 510 pence per share, representing a premium of approximately:
  • 76% to Menzies’ closing share price of 290 pence per share on 2 February 2022; and
  • 68% to Menzies’ 30-day volume weighted average share price of 304 pence for the period ended 2 February 2022.

As one of the industry’s fastest growing aviation services providers, with a presence in more than 55 airports across the Middle East, Africa and South Asia, NAS has a strong understanding of the dynamics of the aviation sector and the opportunities and challenges ahead as the sector recovers from the pandemic.

NAS is part of the Agility Public Warehousing Company KSCP group (“Agility”), which, over the past 20 years, has been one of the largest investors in the logistics sector globally. Agility, listed on the Kuwait Stock Exchange, is a global player and a pioneer in emerging markets through diversified logistics activities and technological ventures.

NAS and Agility are strategic investors who take a financially disciplined approach to investments and acquisitions. In formulating its proposals, NAS and its advisors have considered publicly available information in detail, including Menzies’ performance before the pandemic, recent cost reduction measures, contract renewals and new business wins. In addition, NAS and its advisors have taken into account the company’s debt levels, debt service obligations and ability to generate free cash flows and distribute profits to its shareholders, particularly in light of the investments required to remain competitive and grow the business.

NAS believes that its improved possible cash offer at 510 pence per share represents a compelling opportunity for shareholders to realise full value for their investment in cash.

Menzies and NAS share highly complementary geographical footprints and product portfolios, with minimal overlap. NAS places importance on Menzies’ Scottish heritage, its enviable brand, and its long-standing operational excellence across the globe. A combination with NAS would bring greater geographical diversification to Menzies, forging deeper relationships with the combined customer base.  NAS believes that a combination of both businesses would equip the combined entity with the scale and resources necessary to serve a broader customer base globally, and capitalise on growth opportunities as the aviation industry emerges from the pandemic.

Hassan El-Houry, Group Chief Executive Officer of NAS commented:

“We have made an attractive offer that we urge Menzies’s shareholders to consider carefully. Our offer represents a 76% premium over Menzies’ share price just over a week ago. 

In our view, the fundamentals of Menzies and of the industry as a whole are unlikely to change substantially, notwithstanding cost-cutting measures by Menzies. Let’s be clear: even as air travel recovers, airlines will look to contain costs with their airport service providers. 

NAS is a disciplined investor with a proven track record of growth, even throughout the COVID-19 pandemic that has largely decimated the industry. We are one of the fastest growing and most successful airport services companies in emerging markets, with an experienced leadership team.”

Pursuant to Rule 2.5 of the Code, NAS reserves the right to introduce other forms of consideration and/or vary the mix or composition of consideration of any offer and vary the transaction structure. NAS also reserves the right to amend the terms of any offer (including making the offer at a lower value):

1. with the recommendation or consent of the Menzies Board;
2. if Menzies announces, declares or pays any dividend or any other distribution or return of value to shareholders after the date of this announcement, in which case NAS reserves the right to make an equivalent reduction to the terms of its proposal;
3. following the announcement by Menzies of a whitewash transaction pursuant to the Code; or
4. if a third party announces a firm intention to make an offer for Menzies at a lower price than referred to above.

In accordance with Rule 2.6(a) of the Code, NAS must, by not later than 5.00 p.m. (London time) on 9 March 2022, either announce a firm intention to make an offer for Menzies in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer for Menzies, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.

This deadline will be extended only with the consent of Menzies and the Takeover Panel in accordance with Rule 2.6(c) of the Code.

A further statement will be made as appropriate.

Enquiries:

Agility Public Warehousing Co. KSCP
Jonathan Kerherve
+44 (0) 75 4019 4997

Barclays Bank PLC, acting through its Investment Bank
Omar Faruqui
Chris Brooks
Osman Akkaya
+44 (0) 20 7623 2323

Finsbury Glover Hering
James Murgatroyd
Richard Webster-Smith
+44 (0) 20 7251 3801

Barclays Bank PLC, acting through its Investment Bank (“Barclays”), which is authorised by the Prudential Regulation Authority and regulated in the United Kingdom by the Financial Conduct Authority and the Prudential Regulation Authority, is acting exclusively for NAS and no one else in connection with NAS’s evaluation of Menzies and will not be responsible to anyone other than NAS for providing the protections afforded to clients of Barclays nor for providing advice in relation to a possible offer or any other matter referred to in this announcement.

In accordance with the Code, normal United Kingdom market practice and Rule 14e-5(b) of the Exchange Act, Barclays and its affiliates will continue to act as exempt principal trader in Menzies securities on the London Stock Exchange. These purchases and activities by exempt principal traders which are required to be made public in the United Kingdom pursuant to the Code will be reported to a Regulatory Information Service and will be available on the London Stock Exchange website at www.londonstockexchange.com. This information will also be publicly disclosed in the United States to the extent that such information is made public in the United Kingdom.

In accordance with Rule 26.1 of the Code, a copy of this announcement will be available at https://www.nas.aero/, by no later than 12 noon (London time) on 11 February 2022. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.

This announcement is not intended to, and does not, constitute an offer to sell, or the solicitation of an offer to subscribe to buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote in any jurisdiction.

The release, publication or distribution of this announcement in jurisdictions outside the United Kingdom may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves about, and observe such restrictions. Any failure to comply with such restrictions may constitute a violation of the securities law of any such jurisdiction.

Disclosure requirements of the Code

Under Rule 8.3(a) of the Code, any person who is interested in 1% or more of any class of relevant securities of an offeree company or of any securities exchange offeror (being any offeror other than an offeror in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must make an Opening Position Disclosure following the commencement of the offer period and, if later, following the announcement in which any securities exchange offeror is first identified. An Opening Position Disclosure must contain details of the person’s interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be made by no later than 3.30 pm (London time) on the 10th business day following the commencement of the offer period and, if appropriate, by no later than 3.30 pm (London time) on the 10th business day following the announcement in which any securities exchange offeror is first identified. Relevant persons who deal in the relevant securities of the offeree company or of a securities exchange offeror prior to the deadline for making an Opening Position Disclosure must instead make a Dealing Disclosure.

Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1% or more of any class of relevant securities of the offeree company or of any securities exchange offeror must make a Dealing Disclosure if the person deals in any relevant securities of the offeree company or of any securities exchange offeror. A Dealing Disclosure must contain details of the dealing concerned and of the person’s interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s), save to the extent that these details have previously been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 pm (London time) on the business day following the date of the relevant dealing.
If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire or control an interest in relevant securities of an offeree company or a securities exchange offeror, they will be deemed to be a single person for the purpose of Rule 8.3.

Opening Position Disclosures must also be made by the offeree company and by any offeror and Dealing Disclosures must also be made by the offeree company, by any offeror and by any persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).

Details of the offeree and offeror companies in respect of whose relevant securities Opening Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Takeover Panel’s website at www.thetakeoverpanel.org.uk, including details of the number of relevant securities in issue, when the offer period commenced and when any offeror was first identified. You should contact the Panel’s Market Surveillance Unit on +44 (0)20 7638 0129 if you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure.

Logistics park facilities in Kuwait to be equipped with latest ICT technologies

KUWAIT – October 31, 2021 – Agility, a leader in supply chain services, innovation and investment, has signed a memorandum of understanding (MoU) with Huawei, a leading provider of information and communications technology and infrastructure, to develop solutions for smart campus services at Agility Logistics Parks (ALP) facilities in Kuwait and other locations.

The agreement was exchanged by official representatives from both Agility and Huawei sides, and represents the first step towards equipping ALPs with centralized information and communications technologies (ICT) and services that can transform ALPs into smart industrial campuses.

Smart campuses use next-generation technologies such as Artificial Intelligence (AI) among others that will improve operational efficiency; enhance cybersecurity and physical security; and optimize movement of goods.

The agreement includes evaluation of technologies and systems that will help manage visitor management and vehicle entrances; create “smart streets” covered by WiFi; and improve safety at the ALP complexes.

ALP and Huawei teams will work to identify the requirements for solutions and innovations that will best optimize operations at each facility. ALP aims to increase management efficiency, decrease operational costs, present customers with a better service experience, and provide stronger security while generating less energy waste. Agility has commenced implementing these technologies at its logistics park in Mina Abdullah.

Nader Sakeen, CEO of ALP Kuwait and GCC, said:“Working with a leader in ICT technologies will give ALP an edge and enable us to provide customers with unparalleled services at our facilities. Agility’s goals are in line with the ‘New Kuwait’ 2035 vision, which aims to boost Kuwait’s industrial, logistics, crafts and workshops sectors by providing the right business landscape and ecosystem.”

“Sustainability is an integral part of our strategy and is an essential element in the design of our facilities. We design our facilities to help lower energy costs and reduce waste. We’re not only building for Kuwait and its industrial sector, but we’re also trying to build a more sustainable future for the next generation. We’re excited about the partnership with Huawei as we build future smart facilities in Kuwait and in the region,” Sakeen said.  

The Huawei Smart Campus solutions help make commercial and industrial complexes secure, comfortable, efficient, and green. The company’s technologies focus on digital security, smart property management, and smart offices.

Liam Zhao, CEO of Huawei Gulf North, said: “We are proud to have the opportunity to support a leading supply chain services company such as Agility with our world-class smart city solutions. As smart cities are a priority for Kuwait’s national agenda, Huawei is committed to doing all it can to support achieving the nation’s vision by empowering enterprises through our advanced solutions to further drive the country’s digital transformation journey.”

Agility Logistics Parks is a world leader in the design and construction of logistics parks and warehousing solutions. Logistics warehouses provide essential infrastructure required for both multinational companies and local businesses that need storage, distribution, packaging, processing and light manufacturing space.

ALPs offer ambient and air-conditioned warehousing; freezers and chillers; asphalted container-storage yards; and racked warehousing. In addition, Agility’s warehouses meet international environmental standards and feature eco-friendly construction materials, using energy-efficient roof and side-insulated panels, wind-driven roof fans, skylights for natural lighting, along with LED and energy-saving light fittings.

Mexico, Chile, Uruguay show strength in annual logistics rankings

BAAR, Switzerland – February 9, 2021 – Latin American countries broadly improved the competitiveness of their business climates in 2020, a surprise finding in the 2021 Agility Emerging Markets Logistics Index.

The Index, in its 12^th year, looks at the logistics strengths and competitiveness of the world’s 50 leading emerging markets countries. In the area of business fundamentals, only Chile at No.5 ranks near the top, but eight Latin economies moved up in that category in the 2021 Index: Uruguay (12), Mexico (20), Peru (24), Colombia (27), Ecuador (28), Brazil (36), Paraguay (40) and Bolivia (41).

In the overall annual Index, Mexico ranks as the world’s No. 7 emerging market. Chile is 12^th, and Brazil is 16^th. Outside of the top 20, the remaining Latin American nations are scattered: Uruguay (23); Peru (25); Colombia (27); Ecuador (35); Argentina (36); Paraguay (43); Bolivia (44) and Venezuela (50).

Argentina slipped five spots in the 2021 Index and was alone among Latin countries in experiencing a sharp drop in its business fundamentals ranking, where it fell three places. In addition to pandemic-driven economic damage, Argentina was plagued by many long-standing economic problems as it restructured nearly $65bn in debt owed to private investors. 

International logistics opportunity and potential is highest in Mexico, which ranks No. 3 in that area of the Index despite seeing significant challenges raised by the COVID-19 pandemic and doubts about the direction of its economic policies. The country’s economy was battered by a contraction of 9% in 2020, according to IMF projections.

Domestic logistics opportunity and potential are highest in Brazil at No. 8, down three places from last year. Uruguay rose three spots to No. 25 in domestic logistics as well.

Venezuela, engulfed in political and economic turmoil, ranks last among the 50 Index countries for international logistics opportunity and 49^th for business fundamentals.

The Index ranks 50 countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors. The top 10 are: China, India, Indonesia, United Arab Emirates, Malaysia, Saudi Arabia, Mexico, Vietnam, Qatar, and Turkey.

China, India and Indonesia rank highest for domestic logistics; China, India and Mexico are top for international logistics; and UAE, Malaysia and Saudi Arabia have the best business fundamentals.

Along with the Index, Agility surveyed more than 1,200 supply chain professionals for their views on the disruption caused by the COVID-19 pandemic. A majority, 52%, say they do not foresee a global economic recovery until 2022 or beyond, which includes South America. Those surveyed believe Asia, North America and Europe will rebound this year.

2021 Index and Survey Highlights

• Even when they consider easing dependence on China, few companies plan to bring manufacturing jobs back home. Only 7.8% of industry executives say relocating production from China would mean reshoring to their home countries. Vietnam (19.6%), India (17.4%) and Indonesia (12.4%) are the leading choices for relocation, followed by Thailand (10.3%) and Malaysia (9.6%), according to those surveyed.

• While total cost is driving overall shifts in production supply chains, today low-cost labor is barely a consideration for emerging markets investment — with only 2.2% of industry executives saying it’s important. Executives say the most important factors are government bureaucracy and regulation (25.8%); infrastructure quality (14.1%); and supply of skilled labor (8.0%). As companies examine new production locations, they say their biggest concerns are inadequate infrastructure (14.5%) and additional cost (13.5%).

• Of the executives surveyed, 19.1% say 2020 sales decreased as a result of the pandemic. But only 9.4% say COVID-related employee safety measures have decreased efficiency.

• The sustainability movement has momentum. More than a quarter (26.9%) of executives surveyed say their companies are boosting implementation of environmentally sustainable practices in the wake of the pandemic. Another 45.2% say their plans are unchanged, suggesting they have no intention of retreating from sustainability commitments.

• The most competitive emerging markets are manufacturing powerhouses in Asia and the business-friendly economies in the Gulf region. From Asia, China (1), India (2), Indonesia (3), Malaysia (5) and Vietnam (8) made the top 10. Gulf nations United Arab Emirates (4), Saudi Arabia (6), Qatar (9) also ranked in the top 10. Mexico came in at 7^th; Turkey was No. 10.

• Nigeria improved its competitiveness more than any country in the 2021 Index, moving up five spots to No. 30, the highest climb for any market in Sub-Saharan Africa in the 12 years of the Index. Nigeria improved its relative position in all three areas of the Index: business climate, international logistics and domestic logistics.

• The countries improving their domestic logistics strengths the most were Malaysia, Nigeria, Vietnam, Iran, Uruguay, Myanmar and Cambodia. The biggest strides in international logistics came from Morocco, Ukraine, Kenya, Myanmar and Paraguay.

Transport Intelligence (Ti), a leading analysis and research firm for the logistics industry, compiled the Index.

John Manners-Bell, Chief Executive of Ti, says: “The strength of the Agility Emerging Markets Logistics Index has always been to differentiate between those emerging markets which demonstrate resilience in the face of adversity and those which are more fragile. This year is no exception. Although some – especially China and Vietnam – have been able to rebalance around domestic industrial and consumer demand, the majority are still highly dependent on international markets and investment. A lack of global demand, combined with the breakdown of air and sea logistics networks, has had severe consequences for these economies and societies. As the COVID crisis finally unwinds over the next two years, those most resilient will bounce back the fastest. Inevitably, those which have failed to embrace market, trade, governmental and social reforms will be hardest hit by the fallout from the pandemic.”

2021 Agility Emerging Markets Logistics Index: www.agility.com/2021Index

Kenya leaps in domestic logistics amid lackluster performance by Sub-Saharan Countries

BAAR, Switzerland – February 9, 2021 – Nigeria improved its business competiveness across three key indicators – business climate, international logistics and domestic logistics in the 2021 Agility Emerging Markets Logistics Index, while other emerging economies in Sub-Saharan Africa had a mixed performance.

Nigeria, Africa’s largest economy, climbs five spots to No. 30 in the annual 50-country Index. It jumps to No.10 for domestic logistics, up six spots from last year; moves up two spots to No. 37 in business fundamentals; and rises two places to No. 43 in strength of international logistics. The 2021 Index report notes that Nigeria has a growing and increasingly middle-class population, a vibrant and expanding online retail market, and a FinTech eco-system that is bringing formal banking services to millions in the country.

The Index, now in its 12^th year, ranks 50 countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors. China, India and Indonesia topped the Index. Among countries in Sub-Saharan Africa, only South Africa made the top half of the overall Index, ranking No. 24. 

China, India and Indonesia top all countries for domestic logistics; China, India and Mexico are at the top for international logistics, with Kenya leaping five spots to No. 27. In the area of business fundamentals, three countries in Africa were in the top 25: South Africa at No. 22, Tanzania at No. 23 and Kenya No. 25. 

“Most Sub-Saharan economies should return to positive growth in 2021, even if they will not reach pre-pandemic levels of economic activity. One factor that could slow them is large levels of debt, which could make it difficult to fund economic stimulus and public health initiatives at the same time,” said Geoffrey White, CEO of Agility Africa. “In Nigeria, Kenya and several other key countries, infrastructure improvements and streamlined customs procedures are galvanizing growth. Progress by regional leaders could accelerate the Continent’s overall recovery.”

Along with the Index, Agility surveyed more than 1,200 supply chain professionals for their views on the disruption caused by the COVID-19 pandemic. A majority, 52%, say they do not foresee a global economic recovery until 2022 or beyond, despite an expectation that Asia, North America and Europe will rebound this year. They see Sub-Saharan Africa and Latin America as the last regions to climb back to pre-pandemic GDP levels.

2021 Index and Survey Highlights

• Even when they consider easing dependence on China, few companies plan to bring manufacturing jobs back home. Only 7.8% of industry executives surveyed say relocating production from China would mean reshoring to their home countries. Vietnam (19.6%), India (17.4%) and Indonesia (12.4%) are the leading choices for relocation, followed by Thailand (10.3%) and Malaysia (9.6%), according to those surveyed.

• While total cost is driving overall shifts in production supply chains, today low-cost labor is barely a consideration for emerging markets investment — with only 2.2% of industry executives saying it’s important. Executives say the most important factors are government bureaucracy and regulation (25.8%); infrastructure quality (14.1%); and supply of skilled labor (8.0%). As companies examine new production locations, they say their biggest concerns are inadequate infrastructure (14.5%) and additional cost (13.5%).

• Of the executives surveyed, 19.1% say 2020 sales decreased as a result of the pandemic. But only 9.4% say COVID-related employee safety measures have decreased efficiency.

• The sustainability movement has momentum. More than a quarter (26.9%) of executives surveyed say their companies are boosting implementation of environmentally sustainable practices in the wake of the pandemic. Another 45.2% say their plans are unchanged, suggesting they have no intention of retreating from sustainability commitments.

• In Latin America, Mexico is the strongest emerging market, ranking 7^th overall. Argentina (36) and Venezuela (50) continue to be plagued by chronic economic dysfunction. Notably, though, eight countries in Latin America improved their business fundamentals: Uruguay, Mexico, Peru, Colombia, Ecuador, Brazil, Paraguay, and Bolivia. The region’s best business climate is in Chile, which ranks 5^th out of 50 countries in that category.

• The countries improving their domestic logistics strengths the most were Malaysia, Nigeria, Vietnam, Iran, Uruguay, Myanmar and Cambodia. The biggest strides in international logistics came from Morocco, Ukraine, Kenya, Myanmar and Paraguay.

Transport Intelligence (Ti), a leading analysis and research firm for the logistics industry, compiled the Index.

John Manners-Bell, Chief Executive of Ti, says: “The strength of the Agility Emerging Markets Logistics Index has always been to differentiate between those emerging markets which demonstrate resilience in the face of adversity and those which are more fragile. This year is no exception. Although some – especially China and Vietnam – have been able to rebalance around domestic industrial and consumer demand, the majority are still highly dependent on international markets and investment. A lack of global demand, combined with the breakdown of air and sea logistics networks, has had severe consequences for these economies and societies. As the COVID crisis finally unwinds over the next two years, those most resilient will bounce back the fastest. Inevitably, those which have failed to embrace market, trade, governmental and social reforms will be hardest hit by the fallout from the pandemic.”

China, India, Indonesia, Malaysia among leaders in global logistics ranking

SINGAPORE – February 9, 2021 – Asia-Pacific nations lead all emerging market regions with China, India and Indonesia being the world’s top emerging markets in the 12^th annual Agility Emerging Markets Logistics Index, a broad gauge of competitiveness based on logistics strength and business fundamentals.

The Index ranks 50 countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors. Among ASEAN countries, Vietnam climbs three spots to No. 8 overall. Indonesia (3), Malaysia (5) and Thailand (11) are strong; the Philippines rises one spot to No. 21.

China and Vietnam were virtually alone in the world in 2020, posting positive GDP growth for the year after being hit early by economic fallout from the COVID-19 pandemic.

Early 2020 supply disruptions in China prompted some to question whether it would experience an exodus of manufacturing by multi-nationals seeking to diversify sourcing and production. But the 1,200 logistics industry executives surveyed for Agility’s Index indicate little desire to uproot from China or other markets, preferring by a two-to-one margin to protect their supply chains by accelerating adoption of digital tools and technology (41.3%) as opposed to pursuing multi-shoring, near-shoring or reshoring strategies (21.9%).

Of those who would consider moving out of China, more respondents chose Vietnam as a preferred production hub than any other country (19.6%). Other Asian markets – India (17.4%), Indonesia (12.4%), Thailand (10.3%) and Malaysia – are the next leading choices. Only 7.8% of industry executives say relocating production from China would mean reshoring to their home countries.

Asia-Pacific is the region that more respondents believe will recover from the global pandemic by the end of 2021. Of those surveyed, 55.9% predict an Asia-Pacific economic recovery in 2021; 53.1% believe Europe will rebound.

“Asia Pacific experienced great turmoil in the beginning of 2020 due to the COVID-19 crisis, but it has rebounded strongly, led by the powerful performance of China and Vietnam. The region is on track for a full recovery this year,” says Andy Vargoczky, SVP of Sales & Marketing Asia-Pacific, Agility GIL. “India, Indonesia, Malaysia, Thailand and Vietnam continue to improve their supply chain infrastructure and capabilities, showing why they are leaders in domestic and international logistics.”

Across 50 countries, China, India and Indonesia rank highest in the Index for domestic logistics. China, India and Mexico are on top for international logistics with Vietnam 4^th, Indonesia 5^th, and Malaysia 7^th. UAE, Malaysia and Saudi Arabia have the best business fundamentals.

2021 Index and Survey Highlights

• While total cost is driving overall shifts in production supply chains, today low-cost labor is barely a consideration for emerging market investment — with only 2.2% of industry executives saying it’s important. Executives say the most important factors are government bureaucracy and regulation (25.8%); infrastructure quality (14.1%); and supply of skilled labor (8.0%). As companies examine new production locations, they say their biggest concerns are inadequate infrastructure (14.5%) and additional cost (13.5%).

• Of the executives surveyed, 19.1% say 2020 sales decreased as a result of the pandemic. But only 9.4% say COVID-related employee safety measures have decreased efficiency.

• The sustainability movement has momentum. More than a quarter (26.9%) of executives surveyed say their companies are boosting implementation of environmentally sustainable practices in the wake of the pandemic. Another 45.2% say their plans are unchanged, suggesting they have no intention of retreating from sustainability commitments.

• The most competitive emerging markets are manufacturing powerhouses in Asia and the business-friendly economies in the Gulf region. From Asia, China (1), India (2), Indonesia (3), Malaysia (5) and Vietnam (8) made the top 10. Gulf nations United Arab Emirates (4), Saudi Arabia (6), Qatar (9) also ranked in the top 10. Mexico came in at 7^th; Turkey was No. 10.

• In Latin America, Mexico is the strongest emerging market, ranking 7^th overall. Argentina (36) and Venezuela (50) continue to be plagued by chronic economic dysfunction. Notably, though, eight countries in Latin America improved their business fundamentals: Uruguay, Mexico, Peru, Colombia, Ecuador, Brazil, Paraguay, and Bolivia. The region’s best business climate is in Chile, which ranks 5^th out of 50 countries in that category.

• Nigeria improved its competitiveness more than any country in the 2021 Index, moving up five spots to No. 30, the highest climb for any market in Sub-Saharan Africa in the 12 years of the Index. Nigeria improved its relative position in all three areas of the Index: business climate, international logistics and domestic logistics.

• The countries improving their domestic logistics strengths the most were Malaysia, Nigeria, Vietnam, Iran, Uruguay, Myanmar and Cambodia. The biggest strides in international logistics came from Morocco, Ukraine, Kenya, Myanmar and Paraguay.

Transport Intelligence (Ti), a leading analysis and research firm for the logistics industry, compiled the Index.

John Manners-Bell, Chief Executive of Ti, says: “The strength of the Agility Emerging Markets Logistics Index has always been to differentiate between those emerging markets which demonstrate resilience in the face of adversity and those which are more fragile. This year is no exception. Although some – especially China and Vietnam – have been able to rebalance around domestic industrial and consumer demand, the majority are still highly dependent on international markets and investment. A lack of global demand, combined with the breakdown of air and sea logistics networks, has had severe consequences for these economies and societies. As the COVID crisis finally unwinds over the next two years, those most resilient will bounce back the fastest. Inevitably, those which have failed to embrace market, trade, governmental and social reforms will be hardest hit by the fallout from the pandemic.”

Gulf economies offer emerging markets’ best business conditions

DUBAI – February 9, 2020 – The United Arab Emirates, Saudi Arabia and Qatar rank among the world’s most competitive emerging markets, and Gulf countries as a group offer the best emerging-economy business climates, according to the annual Agility Emerging Markets Logistics Index.

The Index, now in its 12^th year, ranks 50 countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors. China, India and Indonesia topped the Index, while three Gulf countries made the top 10: UAE (4), Saudi Arabia (6) and Qatar (9).

In the area of business fundamentals, Gulf countries dominated the top spots. UAE was No. 1, followed by Saudi Arabia (3), Qatar (4), Bahrain (7), Oman (8) and Kuwait (11). Nearby Jordan was 10^th. China, India and Indonesia rank highest for domestic logistics; China, India and Mexico are at the top for international logistics.

“Gulf countries are pushing hard to diversify and integrate their economies by developing world-class infrastructure and creating fair, transparent conditions for business,” says Elias Monem, Agility Global Integrated Logistics (GIL) CEO for Middle East & Africa. “Good infrastructure and stable business conditions are areas of huge competitive advantage for the Gulf region. They will be key to recovering from the economic downturn brought on by the pandemic.”

The regional Gulf economy could get a boost as a result of the diplomatic breakthrough that ended Saudi Arabia’s three-year economic blockade of neighboring Qatar in late 2020. That could lead to tighter integration in a region where cross-border trade, trucking and e-commerce are growing dramatically.

Along with the Index, Agility surveyed more than 1,200 supply chain professionals for their views on the disruption caused by the COVID-19 pandemic. Of the executives surveyed, 44.7% see a Middle East/North Africa recovery in 2021; 38.9% say a recovery for the region won’t take place until 2022-2024. A majority expect Asia, North America and Europe to rebound this year.

2021 Index and Survey Highlights

• Even when they consider easing dependence on China, few companies plan to bring manufacturing jobs back home. Only 7.8% of industry executives surveyed say relocating production from China would mean reshoring to their home countries. Vietnam (19.6%), India (17.4%) and Indonesia (12.4%) are the leading choices for relocation, followed by Thailand (10.3%) and Malaysia (9.6%), according to those surveyed.

• While total cost is driving overall shifts in production supply chains, today low-cost labor is barely a consideration for emerging markets investment — with only 2.2% of industry executive’s saying it’s important. Executives say the most important factors are government bureaucracy and regulation (25.8%); infrastructure quality (14.1%); and supply of skilled labor (8.0%). As companies examine new production locations, they say their biggest concerns are inadequate infrastructure (14.5%) and additional cost (13.5%).

• Of the executives surveyed, 19.1% say 2020 sales decreased as a result of the pandemic. But only 9.4% say COVID-related employee safety measures have decreased efficiency.

• The sustainability movement has momentum. More than a quarter (26.9%) of executives surveyed say their companies are boosting implementation of environmentally sustainable practices in the wake of the pandemic. Another 45.2% say their plans are unchanged, suggesting they have no intention of retreating from sustainability commitments.

• In Latin America, Mexico is the strongest emerging market, ranking 7^th overall. Argentina           (36) and Venezuela (50) continue to be plagued by chronic economic dysfunction. Notably, though, eight countries in Latin America improved their business fundamentals: Uruguay, Mexico, Peru, Colombia, Ecuador, Brazil, Paraguay, and Bolivia. The region’s best business climate is in Chile, which ranks 5^th out of 50 countries in that category.

• Nigeria improved its competitiveness more than any country in the 2021 Index, moving up five spots to No. 30, the highest climb for any market in Sub-Saharan Africa in the 12 years of the Index. Nigeria improved its relative position in all three areas of the Index: business climate, international logistics and domestic logistics.

• The countries improving their domestic logistics strengths the most were Malaysia, Nigeria, Vietnam, Iran, Uruguay, Myanmar and Cambodia. The biggest strides in international logistics came from Morocco, Ukraine, Kenya, Myanmar and Paraguay.

Transport Intelligence (Ti), a leading analysis and research firm for the logistics industry, compiled the Index.

John Manners-Bell, Chief Executive of Ti, says: “The strength of the Agility Emerging Markets Logistics Index has always been to differentiate between those emerging markets which demonstrate resilience in the face of adversity and those which are more fragile. This year is no exception. Although some – especially China and Vietnam – have been able to rebalance around domestic industrial and consumer demand, the majority are still highly dependent on international markets and investment. A lack of global demand, combined with the breakdown of air and sea logistics networks, has had severe consequences for these economies and societies. As the COVID crisis finally unwinds over the next two years, those most resilient will bounce back the fastest. Inevitably, those which have failed to embrace market, trade, governmental and social reforms will be hardest hit by the fallout from the pandemic.”

2021 Agility Emerging Markets Logistics Index: www.agility.com/2021index

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