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Strategic Direction

Our growth strategy of focusing on building our business, both organically and inorganically, across growth markets will be a competitive differentiator for the company.

“Aramex’s robust business model is closely aligned with its growth strategy, making it a stable investment choice for local and foreign investors.”

Aramex’s long-term sustainable and profitable growth strategy is built on the foundation of our corporate values and will drive our successful development in coming years to achieve our vision: to become leading transportation and logistics provider in growth markets of our choice. We continue to make investments in our people, our technology and infrastructure, and implement innovative solutions to satisfy our customers’ evolving needs, while delivering maximum value to our stakeholders and maintaining our partnerships with local communities.

Growth

New Markets, Acquisitions and Franchising

Going forward, Aramex has ambitious targets for organic growth in the Middle East, where our core business remains. We will continue to invest in developing our business in this core market in addition to accelerating growth through acquisitions and partnerships that make clear strategic sense and meet criteria that the company has defined.

Aramex remains committed to building its franchise and operations in its core growth markets, and aims to proactively strengthen its footprint in key emerging markets in Africa, Asia and the Commonwealth of Independent States (CIS) through new acquisitions. While this has been Aramex’s strategy for the past several years, there were no acquisition announcements in 2013. However, moving forward, Aramex will be investigating potentially larger acquisition opportunities with companies in rapidly growing economies that have suitable, scalable synergies with its existing infrastructure.

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Our franchising program has been further developed and this year we have further strengthened our small, specialized team for closer communication and ongoing support and monitoring of franchising arrangements as we planned last year.

Aside from providing additional revenue streams with minimal capital and management costs, franchising facilitates market entry, allowing us to benefit from local knowledge, grow our revenue base, expand brand awareness and improve our service offering.

After signing with 8 new franchisees in 2013, Aramex now has 15 franchises. In 2013 we signed on with franchisees in Pakistan and Western Africa (Sierra Leone, Burkina Faso, Togo and Benin), among other places.

Performance

Aramex’s robust business model is closely aligned with its growth strategy, making it a stable investment choice for local and foreign investors.

An agile business model enables Aramex to swiftly respond to forces of change, while the company’s federal, decentralized structure empowers its people to be responsive to evolving customer needs. Also, being a local entity in areas we operate creates local job opportunities and enables us to address some of the challenges of the local communities.

Aramex maintains a very strong financial performance despite continued instability in the Middle East & North Africa and the uncertainties clouding the global economic outlook, underscoring the reliability in our business and the ability to deliver growth. During the recession, Aramex’s asset-light business model allowed the company to create considerable efficiencies improving both the gross profit and net profit margins while other companies suffered huge losses.

We also seek to update our existing infrastructure in line with our ambitious growth plans in core markets. We are developing environmentally-friendly logistics facilities as per our commitment to comply with highest environmental standards. Since 2010, we assured all newly constructed Aramex logistic centers would be constructed according to the LEED (Leadership in Energy and Environmental Design). So far, three out of seven of our facilities are LEED certified.

Innovation

Aramex is continually innovating as a business and identifies bespoke solutions tailored to customer needs.

E-commerce development remains a key strategic goal, and we view our partnerships with online retailers as a vital element in our future growth. In the coming years, the company plans to invest heavily in its e-commerce platform to support the growth of online trading across its core emerging markets to take advantage of the significant opportunities in growth markets in Asia, Africa and the Middle East.

We are a customer-centric company, and view our customers as long-term partners. We invest in worldclass infrastructure and technology in order to deliver the best possible services to our customers around the world. Through our close engagement and responsiveness to clients, continuous service improvement and innovation, and specifically tailored solutions, we aim to grow together with our customers and benefit from each other’s success. To find out how, please see the Our Customers section of this report.

Sustainability

Today, we still live our beliefs and our values through our actions. We know that being a good corporate citizen is integral to our innovation and top-line performance. We believe that responsible, sustainable practices will impact our business growth and will also facilitate social and economic development for our stakeholders around the world. We endeavor to integrate sustainable development into everything we do – this is the foundation of our management approach. We are convinced in the power of this company to help build a better, more sustainable world. In our Sustainability section you’ll find considerable evidence of our progress.

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It is the people at Aramex that make the company successful and it is their knowledge, expertise and contributions that drive the business forward. It is important that we nurture them and provide an environment to grow our people personally and professionally in a supportive culture where everyone is encouraged to reach their full potential.

Our learning and development strategy has always included workplace based experience and more structured training programmes to build our people’s skills and encourage collaboration and networking with their colleagues across the group. We keep expanding our people development activities; to learn more, please look at the Our People section of this report.