Logistics provider teams up to transform global, cross-border supply chain

BAAR, Switzerland – Feb. 6, 2018 – Agility, a leading global logistics provider, is the first freight forwarder to collaborate on a Maersk-IBM solution to provide more efficient and secure methods for conducting global trade by using blockchain technology to manage and track container shipments.

Agility has agreed to identify events associated with individual shipments and to share and receive information about them via the distributed ledger blockchain technology developed by IBM and Maersk.

Agility’s goal is to reduce costs and increase shipping efficiency by integrating information about shipments onto a secure platform accessible to shippers, carriers, freight forwarders and others in the supply chain.

“Blockchain technology is going to make shipping cheaper, safer and more reliable. As early adopters, companies like Agility can help Maersk and IBM understand the needs of shippers and develop standards that will make trade more efficient,” said Essa Al-Saleh, CEO of Agility Global Integrated Logistics. “We can help customers understand how to use blockchain to improve shipment visibility, eliminate paperwork, reduce errors, and shorten transit and clearance times.”

Blockchain is a secure, immutable and tamper-resistant ledger that can be used to track shipments, documentation and payment transactions. Its digital infrastructure can connect parties in the supply chain, giving them access to information and real-time visibility based on their level of permission.

Documentation and administration are estimated to be one-fifth of the $1.8 trillion spent annually to move goods across borders. In addition to showing the location of containers in transit, blockchain can show the status of customs documents, bills of lading and other documentation. It can improve workflow, cut processing costs and enhance visibility by integrating shipping processes and partners.

Customs and border authorities can use the technology to improve the information available for risk analysis, leading to increased safety and security as well as greater efficiency in border inspection clearance.

“For Agility, it’s important to be involved early in blockchain and to work with forward-thinking companies like Maersk and IBM,” Al-Saleh said. “Together, we have a lot to learn and share in order to bring the benefits of this technology to shippers and consumers as quickly as possible.”

About Agility

Agility brings efficiency to supply chains in some of the globe’s most challenging environments, offering unmatched personal service, a global footprint and customized capabilities in developed and developing economies alike. Agility is one of the world’s leading providers of integrated logistics. It is a publicly traded company with $4 billion in revenue and more than 22,000 employees in over 500 offices across 100 countries. Agility’s core commercial business, Global Integrated Logistics (GIL), provides supply chain solutions to meet traditional and complex customer needs. GIL offers air, ocean and road freight forwarding, warehousing, distribution, and specialized services in project logistics, fairs and events, and chemicals. Agility’s Infrastructure group of companies manages industrial real estate and offers logistics-related services, including e-government customs optimization and consulting, waste management and recycling, aviation and ground-handling services, support to governments and ministries of defense, remote infrastructure and life support.

For more information about Agility, visit www.agility.com

Twitter: twitter.com/agility

LinkedIn: linkedin.com/company/agility

YouTube: youtube.com/user/agilitycorp

For more information:

Sabrina Mundy

Man Bites Dog

+44 1273 716 826

teamagility@manbitesdog.com

KUWAIT CITY – February 20, 2018

Figures in the table above have been rounded

Agility’s Financial Results for Full Year and Q4 2017

Agility, a leading global logistics provider, today announced its 2017 financial results, reporting a net profit of KD 68.5 million, or 54.4 fils per share, an increase of 16% over 2016. Revenue for the year reached KD 1,407 million and EBITDA was KD 135.2 million.

For the fourth quarter 2017, Agility reported a net profit of KD 19.3 million, or 15.3 fils per share, an increase of 22.5 % over Q4 2016. EBITDA for Q4 2017 was KD 37.6 million, an increase of 19.8%.

Board of Directors Recommendation

 The Board of Directors has recommended a cash dividend distribution of 15% (15 fils per share), along with 15% bonus shares (15 shares for every 100 shares), subject to approval of the General Assembly.

Agility Consolidated Results

 “In 2017, Agility posted another year of healthy growth and continued to plant the seeds for a future of sustainable growth. To reach our target of $800 million EBITDA by 2020, we remained focused on improving GIL’s performance and investing in our Infrastructure companies. For every business in the group, 2017 was a critical year,” said Tarek Sultan, Agility CEO and Vice Chairman.

2017 Milestones:

• 4% growth in EBITDA largely as a result of strong Infrastructure group performance.
• Net profit and EPS growth of 16% and 16.6% respectively.
• Healthy operating cash flow growth, but limited Free Cash flow due to the required investment to grow the business.
• Balanced dividends distribution which rewards shareholders without inhibiting business growth.
• Increasing borrowing to fund company’s future developments which resulted in a net debt position of KD 93.2 mln.
• The settlement of the U.S. Department of Justice litigation.

Agility Global Integrated Logistics

Agility Global Integrated Logistics (GIL) revenue grew 14.3% to KD 1,061.6 million in 2017. The increase is attributable to growth in the freight forwarding business and contract logistics. Full year net revenue grew 2.6%. Net revenue margins shrunk to 23.7% from 26.4% amid yield pressure across the industry.

In Q4, GIL revenue was KD 293 million, a 21.5% increase over Q4 2016. Revenues from air and ocean increased by 25%. Volumes grew 9.7% in air tonnage, and 12% in ocean TEUs. Contract logistics and specialties (Project Logistics and Fairs & Events) improved revenue 17.6% over the same period in 2016.

Fourth-quarter net revenue increased 6%, but net revenue margins declined to 22.6% vs. 26% in Q4 2016, amid yield pressure throughout the freight forwarding industry. Contract logistics continued its strong growth in Q4, primarily in the Middle East and Asia Pacific, aided by a combination of new customers and investments in new facilities. EBITDA improved 30.7% with margins expanding from 4% in Q4 2016 to 4.3% in Q4 2017.

“GIL is growing through a strategy that focuses on defined solutions and customer segments, enhanced sales productivity and efficient trade lane development,” Sultan said. “In addition, GIL is building systems and solutions that enable business insight, efficiencies, and increased productivity for our operations and for our customers. As always we are working hard to maintain cost discipline.”

Agility’s Infrastructure Companies

For the full year, revenue for the Infrastructure group grew by 12.7%, EBITDA has also increased by 28.2% to KD 120.9 million with margins expanding from 29.7% in FY 2016 to 33.7% in 2017. Agility is investing in those companies to drive its future growth.

Infrastructure group revenue grew 25% in Q4 2017. EBITDA increased largely on strong performance by Global Clearinghouse Systems (GCS), Agility Real Estate (RED), National Aviation Services (NAS) and Tristar.

Agility Industrial Real Estate, a leading owner and developer of logistics parks, remains one of the strongest contributors to Agility’s performance. Agility Industrial Real Estate is working to improve the efficiency of its Kuwaiti assets, develop a Saudi logistics park and expand in multiple locations in Africa. In 2017, Agility broke ground on two warehouses of 38,000 SQM each in Saudi Arabia. Delivery is expected this year.  In Africa, Agility identified new locations for logistics parks, and established operations in Ghana, Cote D’Ivoire and Mozambique to cater for increasing demands for warehousing services in the continent.

Tristar, a fully integrated liquid logistics company, on-boarded the strategic investor Gulf Investment Corporation (GIC) in 2017. Tristar received a capital injection of $100 million for a consideration of 19.4% of the company’s capital.  Tristar revenue grew from existing and new customers in 2017. Tristar continues to diversify its business via shipping growth and geographic expansion in an effort to create more value for shareholders.

National Aviation Services (NAS), Agility’s airport services subsidiary posted healthy growth in Kuwait, Cote D’Ivoire and Afghanistan; with revenue in Cote D’Ivoire and Afghanistan growing more than 20%. In Q4, NAS also launched operations in Liberia and Uganda. The company is working to turn around performance in Tanzania and Morocco.

UPAC, a leading real estate and facilities management company in the Middle East, experienced a strong year in 2017. It improved operational efficiencies and reduced costs across its key operations within the Kuwait International Airport, Sheikh Saad Terminal and Discovery Mall. UPAC is also developing the 450-store Reem Mall in Abu Dhabi in partnership with National Real Estate Company (NREC). Financing for the $1.2 billion project concluded in 2017.

GCS, a company specialized in customs modernization, manages all customs activities at ports of Kuwait and aims to enhance customs modernization through its services. GCS showed improved performance in 2017 by deploying new services within different ports.

Financial Performance for 2017

• Agility’s net profit reached KD 68.5 million, a 16% increase from KD 59.1 million in 2016. EPS was 54.4 fils, compared with 46.7 fils a year earlier.
• EBITDA was KD 135.2 million, a 17.4% increase from 2016.
• Agility’s revenue for 2017 was KD 1,407 million, an increase of 14% from KD 1,234 million in 2016. Net revenue increased by 9.5%.
• GIL’s revenue was KD 1,061.6 million, a 14.3% increase from 2016.
• Infrastructure group revenue was KD 358.2 million, compared with KD 317.9 million in 2016, a 12.7% increase.
• Agility enjoys a healthy balance sheet with KD 1,729 million in assets. Its net debt position was KD 93.2 million as of Dec. 31, 2017. Operating cash flow was KD 63.5 million for full year 2017 a figure that accounts for the settlement of litigation claims.

Closing

 “Agility thanks its shareholders, customers, employees and partners for a strong year. The company continues to grow in emerging markets logistics parks, fuel logistics, airport services, and commercial real estate development. The core commercial logistics business is also growing its volumes, despite margin pressure in a tight market.  Agility is accelerating its strategy to transform the business through technology and establish its position as the leading digital player in our industry,” Sultan said.

State-of-the-art building receives prestigious LEED Silver certification

KUWAIT CITY – Nov. 14, 2017 – Agility, a leading global logistics provider, has been awarded the LEED Silver certification for its new environment-friendly management building in Sulaibiya, Kuwait.

The LEED rating system, developed by the U.S. Green Building Council (USGBC), is the foremost program for buildings, homes and communities that are designed, constructed, maintained and operated for improved environmental and human health performance. The Agility Management Building, which was finalized in January 2017, was built with state-of-the-art sustainability features that maximizes the use of natural light while improving overall cooling efficiency and energy use.

The 834 sq.m. building is equipped with solar thermal panels, which provide the energy needed to operate the air-conditioning units. The building also includes triple-pane windows that are covered in electro chromic coating, to adjust tint in response to external conditions, allowing light to pass through while blocking heat and increasing energy efficiency.

Tarek Sultan, Vice Chairman and CEO, Agility said, “Responsibility is ingrained in Agility’s corporate DNA, and we take carbon footprint reduction very seriously. Creating a better environment for our talent is an important component of our overall sustainability efforts.”

Sultan added: “This achievement is the result of years of collaboration not only with our planners, architects, and contractors, but also in consultation with our employees. We hope to replicate this model in future infrastructure projects.”

Mahesh Ramanujam, President and CEO, USGBC, said: “LEED is a transformative tool that ensures a building is designed and operating to achieve high performance in key areas of human and environmental health while enhancing the triple bottom line – people, planet and profit. By prioritizing sustainability, the Agility project is leading the way in their industry and helping USGBC continue toward our vision of a sustainable built environment within a generation.”

In Kuwait, Agility is one of only four certified projects, and one of 38 registered LEED projects in the country. Incorporating green building practices in the construction industry is a critical way for Kuwaiti companies to help meet the country’s sustainability targets.

More than 38,600 commercial projects have been LEED certified across 167 countries. LEED is the most widely used third-party verification for green buildings, with around 2.2 million square feet certified daily. LEED-certified buildings are resource efficient, using less water and energy and reduce greenhouse gas emissions.

The LEED Silver certification is one of a number of environmental projects and achievements for the company. The Agility 2016 Corporate Social Responsibility Report showcases its commitment to building a greener supply chain, including sustainable construction and upgrades to warehouses and logistics facilities, and achieving ISO 14001 certification in 19 countries; 48% of Agility employees work in an ISO 14001 certified site.

Download the full Agility 2016 Corporate Social Responsibility Report here.

Consortium signs $457 million credit facility

KUWAIT – November 21, 2017 – Agility, UPAC, and NREC, the consortium behind Abu Dhabi’s Reem Mall, a retail, leisure and entertainment destination, announced today that financing for the $1.2 billion project is now complete, by signing the largest real estate asset based facility in the United Arab Emirates in 2017.

“The business climate in Abu Dhabi is one of the things that makes it so attractive to investors. The speed with which Abu Dhabi authorities completed the formalities to proceed with Reem Mall is a great example of efficiency in action,” said Tarek Sultan, CEO, Agility. “The Agility group is making a significant investment in Abu Dhabi because we strongly believe in the Reem Mall project and in Abu Dhabi’s growth prospects.”

Reem Mall, located on Abu Dhabi’s Reem Island, will offer 2 million sq. ft. of leasable area (2.9 million sq. ft. of floor area) comprising 450 stores housing local and international brands, including 85 food and beverage outlets. It will feature education-oriented anchors and family-focused entertainment, including Snow Park Abu Dhabi, a destination attraction.

The project is being developed by Al Farwaniya Property Developments, a partnership between Agility, Agility affiliate United Projects for Aviation Services Company (UPAC), and National Real Estate Company (NREC). Together, the companies bring a sound financial base, deep experience in asset management and commercial real estate development, and a track record of successful mall operations.

To complete the financing, Al Farwaniya signed an agreement for a $457 million senior credit facility. The seven-year credit facility is provided by regional and international banks: Abu Dhabi Commercial Bank (ADCB), Gulf Bank Kuwait, Noor Bank, and Standard Chartered Bank. The facility is subject to final conditions, and is expected to be completed shortly.

Faisal Sultan, Chairman of NREC, said: “Reem Mall is moving forward in an exciting way. It is one of the most significant leisure and retail developments ever undertaken in Abu Dhabi. We look forward to the day it opens its doors to its residents and visitors.”

The Reem Mall site is located in the Najmat District on Reem Island, the residential and commercial master development by Reem Developers. Reem Island is expected to have a population of 200,000 residents at completion.

About Reem Mall

Reem Mall is Abu Dhabi’s major new retail, leisure, dining and entertainment destination. The Reem Mall project will comprise 450 stores, including 85 F&B outlets and a range of family-focused entertainment offerings including Snow Park Abu Dhabi by Majid Al Futtaim.

For more information please visit the website: www.reemmall.ae

Please connect with us on Facebook: facebook.com/reemmall

About Agility
Agility brings efficiency to supply chains in some of the globe’s most challenging environments, offering unmatched personal service, a global footprint and customized capabilities in developed and developing economies alike. Agility is one of the world’s leading providers of integrated logistics. It is a publicly traded company with more than $4.1 billion in revenue and more than 22,000 employees in over 500 offices across 100 countries. Agility’s core commercial business, Global Integrated Logistics (GIL), offers air, ocean and road freight forwarding, warehousing, distribution, and specialized services in project logistics, fairs and events, and chemicals. Agility’s Infrastructure group of companies manages industrial real estate and offers logistics-related services, including e-government customs optimization and consulting, waste management and recycling, aviation and ground-handling services, support to governments and ministries of defense, remote infrastructure and life support, and commercial real estate services.

For more information about Agility, visit www.agility.com

Twitter: twitter.com/agility

LinkedIn: linkedin.com/company/agility

YouTube: youtube.com/user/agilitycorp

About NREC

Established in Kuwait in 1973, NREC is a publicly listed real estate and investment company with a presence in the Middle East and North Africa. Over the years, NREC has grown into one of the largest real estate companies in the region with assets exceeding US$ 1.8 billion. Headquartered in Kuwait, NREC has subsidiaries and developments across the MENA region, including the UAE, Egypt, Jordan, Iraq, Lebanon, and Libya. NREC’s portfolio of projects (completed or under development) includes offices, mixed use centers, industrial parks, residential communities and super-regional malls. In addition to a strong track record in property development, NREC brings experience and required knowledge in property management of commercial complexes and shopping centers.

For more information please visit the website: www.nrec.com.kw

About UPAC

Established in 2000, publicly listed on Boursa Kuwait, and headquartered in Kuwait, UPAC is a leading commercial real estate and facilities management company with a specialization in Build Operate Transfer (BOT) initiatives. Its services cover project management and consultancy, real estate development as well as property and facilities management. UPAC manages over 24,000 sqm of commercial space at the Kuwait International Airport, Sheikh Saad Terminal and other prominent locations within the country.

For more information please visit the website: www.upac.com.kw

About Reem Developers

Headquartered in Abu Dhabi, Reem Developers is one of the key developers in the capital, contributing to the city’s cosmopolitan skyline in alignment with the Abu Dhabi 2030 vision. A subsidiary and real estate arm of the prestigious Reem Investments, Reem Developers delivers immaculate quality projects, leaving a mark on the city with creative, efficient and functional design. With a diverse portfolio of successful projects, Rawdhat, Najmat and Nalaya villas are a few that have redefined vibrant living and tranquil bliss in one setting. A blend of natural beauty and modern innovation, these projects rise to the forefront with their conceptual essence, highlighting the distinguished standard Reem Developers produces.

About Najmat

Najmat, a 165 hectare Manhattan-like township covers 20% of Reem Island. Najmat will be home to residential and commercial towers and will also feature a marina, canal, waterfront promenades, hotels, shopping malls, schools, healthcare facilities, mosques, parks and ample open spaces. The first two of three infrastructure phases are complete and development is currently underway.

Announcement follows completion of financing for world-class $1.2 billion retail and entertainment destination

KUWAIT – November 27, 2017 – The Reem Mall consortium today announced the appointment of Itinera Ghantoot, a UAE-Italy joint venture, as lead contractor on the $1.2 billion shopping, leisure and entertainment project.

Itinera Ghantoot is a joint venture between Itinera, one of Italy’s largest construction companies, and Ghantoot, one of the UAE’s leading builders, which has extensive experience in Abu Dhabi and the Emirates.

The group backing Reem Mall announced on 21 November that it had signed a $457 million senior credit facility to complete financing on the project, a mega-mall of 450 stores and food and beverage outlets spread over 2.9 million square feet in the Najmat District of Reem Island. The mall will offer education attractions and family-focused entertainment such as Snow Park Abu Dhabi.

The project is being developed by Al Farwaniya Property Developments, a partnership between three Kuwait-based companies: Agility, Agility affiliate United Projects for Aviation Services Company (UPAC), and National Real Estate Company (NREC). Together, the companies bring a sound financial base, deep experience in asset management and commercial real estate development, and a track record of successful mall operations to the planned mega-mall project.

Shane Eldstrom, CEO of Al Farwaniya Property Developments, said: “This is a major milestone toward delivery of Abu Dhabi’s new lifestyle, retail and entertainment destination. We are very excited about working with the Itinera Ghantoot JV. We are confident that they will perform work of the highest quality and deliver a mall that Abu Dhabi and the wider UAE can truly be proud of.”

Ghantoot is one of the Middle East’s leading construction, development and service groups, specializing in civil engineering, electrical projects, road construction and transport and marine services. Itinera is responsible for construction of showcase projects across the USA, Latin America, Europe, and Africa. The Reem Mall contract follows Itinera’s success with Il Centro mall in Arese, Italy, one of Europe’s 10 largest shopping centres. Il Centro received the MAPIC Award for the Best Shopping Mall in the World in 2016.

Massimo Malvagna, CEO of Itinera, said: “This prestigious contract to build Reem Mall rewards Itinera’s skills and know-how in highly complex civil and industrial building projects that have architectural, commercial, and social value. We are proud to participate in this initiative and to partner with Ghantoot, which has a global reputation for finding the creative solutions to complex projects. Together, we will be able to deliver something special for Abu Dhabi.”

Manea Ali Al Balooshi, Managing Director of Ghantoot Transport and General Contracting said, “We are always looking for ways to turn imaginative ideas into leading products and services and it is an honour for us to work alongside the distinguished Itinera for the successful development of Reem Mall. We look forward to delivering this iconic retail establishment to Abu Dhabi in the timeliest manner.”

The Reem Mall site is located in the Najmat District on Reem Island, the residential and commercial master development by Reem Developers. Reem Island is planned to have a population of 200,000 at completion.

About Reem Mall

Reem Mall is Abu Dhabi’s major new retail, leisure, dining and entertainment destination. The Reem Mall project will comprise 450 stores, including 85 F&B outlets and a range of family-focused entertainment offerings including Snow Park Abu Dhabi by Majid Al Futtaim.

For more information please visit the website: www.reemmall.ae

Please connect with us on Facebook: facebook.com/reemmall

 About Agility
Agility brings efficiency to supply chains in some of the globe’s most challenging environments, offering unmatched personal service, a global footprint and customized capabilities in developed and developing economies alike. Agility is one of the world’s leading providers of integrated logistics. It is a publicly traded company with more than $4.1 billion in revenue and more than 22,000 employees in over 500 offices across 100 countries. Agility’s core commercial business, Global Integrated Logistics (GIL), offers air, ocean and road freight forwarding, warehousing, distribution, and specialized services in project logistics, fairs and events, and chemicals. Agility’s Infrastructure group of companies manages industrial real estate and offers logistics-related services, including e-government customs optimization and consulting, waste management and recycling, aviation and ground-handling services, support to governments and ministries of defense, remote infrastructure and life support, and commercial real estate services.

For more information about Agility, visit www.agility.com

Twitter: twitter.com/agility

LinkedIn: linkedin.com/company/agility

YouTube: youtube.com/user/agilitycorp

About NREC

Established in Kuwait in 1973, NREC is a publicly listed real estate and investment company with a presence in the Middle East and North Africa. Over the years, NREC has grown into one of the largest real estate companies in the region with assets exceeding US$ 1.8 billion. Headquartered in Kuwait, NREC has subsidiaries and developments across the MENA region, including the UAE, Egypt, Jordan, Iraq, Lebanon, and Libya. NREC’s portfolio of projects (completed or under development) includes offices, mixed use centers, industrial parks, residential communities and super-regional malls. In addition to a strong track record in property development, NREC brings experience and required knowledge in property management of commercial complexes and shopping centers.

For more information please visit the website: www.nrec.com.kw

About UPAC

Established in 2000, publicly listed on Boursa Kuwait, and headquartered in Kuwait, UPAC is a leading commercial real estate and facilities management company with a specialization in Build Operate Transfer (BOT) initiatives. Its services cover project management and consultancy, real estate development as well as property and facilities management. UPAC manages over 24,000 sqm of commercial space at the Kuwait International Airport, Sheikh Saad Terminal and other prominent locations within the country.

For more information please visit the website: www.upac.com.kw

About Itinera

Founded in 1938, Itinera is one of the leading companies in Italy and around the world in the construction of large infrastructure projects and in the development of greenfield concession projects.

Itinera is part of the Gavio Group, the world’s fourth largest operator in toll motorways with approximately 3,320 km of network since the 1960s, and is present worldwide from the USA to Latin America, Europe, Africa and Middle East.

For more information please visit the website: www.itinera-spa.it

About Ghantoot Group

Ghantoot Group is the region’s leading construction, development and service group specializing in civil engineering, electrical projects, road construction and transport and marine services. From civil works to electrical projects, marine works to landscaping and irrigation, pharmaceuticals to interior designing, Ghantoot Group has always been dedicated in turning imaginative ideas into leading projects and services.

For more information please visit the website: www.ghantootgroup.com

About Reem Developers

Headquartered in Abu Dhabi, Reem Developers is one of the key developers in the capital, contributing to the city’s cosmopolitan skyline in alignment with the Abu Dhabi 2030 vision. A subsidiary and real estate arm of the prestigious Reem Investments, Reem Developers delivers immaculate quality projects, leaving a mark on the city with creative, efficient and functional design. With a diverse portfolio of successful projects, Rawdhat, Najmat and Nalaya villas are a few that have redefined vibrant living and tranquil bliss in one setting. A blend of natural beauty and modern innovation, these projects rise to the forefront with their conceptual essence, highlighting the distinguished standard Reem Developers produces.

About Najmat

Najmat, a 165 hectare Manhattan-like township covers 20% of Reem Island. Najmat will be home to residential and commercial towers and will also feature a marina, canal, waterfront promenades, hotels, shopping malls, schools, healthcare facilities, mosques, parks and ample open spaces. The first two of three infrastructure phases are complete and development is currently underway.

We are pleased to announce that Agility Road Freight Europe has started to operate a daily road freight connection between Germany and Spain as of September 1, 2017.

Customer benefits include:

• Daily road freight connection between Stuttgart, Germany and Barcelona, Spain for groupage and LTL shipments
• A reliable and competitive road freight service linking these major European trade zones in just 48 hours

Contact your local Agility office for more information.

The south east coast of Texas has been battered by Hurricane Harvey since Friday, August 28, when the storm made landfall from the Gulf of Mexico. Although Houston was not in the direct path of the storm, the city has been devastatingly impacted by widespread flooding caused by torrential rains. Agility’s Houston branch office is closed and will remain closed until September 4.

For the latest information on Agility shipments, please contact your account manager or email marketing@agility.com.