Arabnet 2015 Dubai IYAD KAMAL [email protected] IYAD KAMAL @IYADKAM Confidential

eBUSINESS TRENDS OPS, PAYMENT & RETURNS SOCIAL TRENDS ALL NEW Confidential

% 15 GLOBAL ECOMMERCE SALES? eBUSINESS TRENDS Source: eMarketer

OF AGE COMPRISE ABOUT MENA POPULA TION ONCE A MONTH 43% 60% INTERNET USER IN THE GCC ARE MAKING ONLINE PURCHASES 25 YEARS Source: Wamda - 25 Essential Stats on E-Commerce in the Middle East REGIONAL ECOMMERCE POTENTIAL eBUSINESS TRENDS

Source: eMarketer WHY DO PEOPLE BUY FROM ABROAD? OPPORTUNITIES FOR REGIONAL ETAILER eBUSINESS TRENDS

SNS, ecommerce; domestic, regional, international ARAMEX SPECIFIC DATA! eBUSINESS TRENDS

Source: Aramex eCommerce Data 31% Saudi 94% Saudi 29% Egypt Egypt 20% UAE UAE 14% UAE Saudi Origin Destination % of total packages WHERE ARE THE REGIONAL ECOMMERCE VOLUMES COMING FROM? eBUSINESS TRENDS

Source: Aramex eCommerce Data Intra MENA $102 Into MENA $139 willing to pay more shipping as variety has a price with duty % being an advantage VALUE OF ORDER? eBUSINESS TRENDS

SHOES APPAREL BEAUTY SUPPLIES BOOKS/BAGS 20% 19% 19% 2013 2014 BEAUTY SUPPLIES APPAREL SHOES TOOLS Source: Aramex Shop&Ship Data WHAT DO PEOPLE BUY eBUSINESS TRENDS

eBUSINESS TRENDS OPS, PAYMENT & RETURNS SOCIAL TRENDS ALL NEW Confidential

COD VS. CREDIT CARD PAYMENT Source: Aramex eCommerce Data Year Credit Card Cash on Delivery 2011 29% 71% 2012 29% 71% 2013 27% 73% 2014 24% 76% It is still a COD market and etailers promote it! Mainly domestic COD today but changing! GLOBAL ECOMMERCE SALES? OPS, PAYMENT & RETURNS

PAYMENT MEANS USED Source: Aramex Shop & Ship Data 2012 2013 2014 56% 52% 44% 35% 29% 23% 6% 16% 30% 3% 3% 3% OPS, PAYMENT & RETURNS

WHO PAYS ONLINE (SHIPPING) MORE Source: Aramex Shop & Ship Data 36% 26% 24% 23% UAE BAHRAIN LEBANON QATAR SAUDI ARABIA 22% OPS, PAYMENT & RETURNS

AVERAGE DELIVERY ATTEMPTS Source: Aramex Shop & Ship Data 9% 50% 20% 9% 25% Card: 1 1 COD: 1.88 1.50 2013 2014   OPS, PAYMENT & RETURNS

LAST MILE PAYMENT CONVERGANCE Source: Aramex Shop & Ship Data COD becoming POD With SADAD and mobile payment devices with couriers OPS, PAYMENT & RETURNS

MENA LOGISTICS RETURNS Source: Aramex eCommerce Data Payment 2012 2013 2014 COD 24% 21% 19% Credit Card 7% 7% 8%  OPS, PAYMENT & RETURNS

TOP RETURN REASONS Source: Aramex eCommerce Data No response 42% Bad address 13% Client not available 10% OPS, PAYMENT & RETURNS

EUROPEAN LOGISTICS RETURNS Source: Aramex eCommerce Data Less than 1% Why? - Orders are made with credit card - Addresses are correctly structured in Europe and customers provide accurate addresses including postcode - Carriers can leave at a safe place or deliver to a neighbor if the customer wasn’t available OPS, PAYMENT & RETURNS

GROWTH OF PICKUPS Source: Aramex eCommerce Data 17% from service centers as more pick up points become available OPS, PAYMENT & RETURNS

MYADDRESS RESPONSE RATES Source: Aramex Operations Data 50% Saudi: 25% UAE: 31% direct impact on call center! OPS, PAYMENT & RETURNS

eBUSINESS TRENDS OPS, PAYMENT & RETURNS SOCIAL TRENDS ALL NEW Confidential

WHERE ARE THE REQUESTS COMING FROM? Source: Aramex Social Media Data 9% 50% 20% 9% 25% KSA 53% KUWAIT 12% UAE 10% INDIA 9% EGYPT 5% QATAR 4% OTHER 9% 2013 2014 65% 5% 5% 4% 3% 14% 1% SOCIAL TRENDS

CUSTOMER SERVICE REQUESTS? Source: Aramex Social Media Data 58% 78% 68% 94% 2013 2014 SM a main customer service channel! SOCIAL TRENDS

eBUSINESS TRENDS PAYMENT & RETURNS SOCIAL TRENDS ALL NEW Confidential

WHAT KEEPS US BUSY? Simple: delivery on time and at an affordable price ALL NEW

FURTHER CONNECTING WITH THE CLIENT Client Courier Objectives: - Satisfied - Delivery on time - Affordable price Objectives: - Satisfied - Deliver on time - Affordable cost Focus: How to get them closer, physically and technically? (information and consistency) ALL NEW

ARAMEX KEY INVESTMENT AREA! Why? - Mobile is your address! - C2C communication, bypass the CC - Live tracking and avoid calls - Online payment, reduce cash management - Big data analysis: - Non payers - Not at home - Same address delivery, don’t call… TECHNOLOGY is making it happen (mobile in specific with more than 90% penetration) App App ALL NEW

LAST MILE SOLUTIONS / LAST MILE TO LOCKERS NEVER MISS A DELIVERY AGAIN! - Available 24/7 - 100% safe & secure - Quick, simple and fun - Cheapest delivery option ALL NEW

Announcement!

OUR NEW OFFERING to grow the industry… eCommerce Package o Classify clients by shipping tiers o Provide shipping rates based on tier volumes o Advance COD payment which equates to paying of COD amounts upon shipping o July 1st 2015

Thank You IYAD KAMAL [email protected] IYAD KAMAL @IYADKAM