15.05.2018 – 06:47

CEVA Logistics AG

EQS-Adhoc: CEVA Logistics AG: CEVA continues to deliver good results in Q1 2018

EQS Group-Ad-hoc: CEVA Logistics AG / Key word(s): Quarter Results
CEVA Logistics AG: CEVA continues to deliver good results in Q1 2018

15-May-2018 / 06:45 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.

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CEVA continues to deliver good results in Q1 2018
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CEVA Logistics AG
Results for the First Quarter ended 31 March 2018

-Revenue up 5.4% year-on-year in constant currency

- Adjusted EBITDA of $66 million, up $12 million year-on-year

- EBITDA margins improved in both Freight Management and Contract Logistics

- Successfully completed all-primary IPO on Swiss Stock Exchange and raised CHF
1.2 bn - deleveraging will unlock important growth and margin opportunities

- Expect to repay and refinance majority of existing debt facilities in coming
months

Baar, Switzerland, 15thMay 2018 - CEVA Logistics AG, one of the leading
asset-light third-party logistics companies, announced today its results for the
quarter ended 31 March 2018.

Key Financials     Q1 2018 Q1 2017 Change YoY Change YoY constant FX
($ million)

Revenue            1,790   1,596   12.2%      5.4%

EBITDA(a)          53      45      17.8%      17.8%

EBITDA margin      3.0%    2.8%    20 bps     40 bps

Adjusted EBITDA(b) 66      54      22.2%      20.0%
 
(a)EBITDA excludes specific items and share-based compensation cost

(b)Adjusted EBITDA includes the proportional contribution of the ANJI-CEVA joint
venture and excludes specific items and share-based compensation cost

"I am pleased to report another good quarterly result. Q1 2018 has shown once
more that CEVA is delivering on its transformation with continued growth and
consistent EBITDA improvement. We've seen good momentum and had several new
business wins. We have further improved productivity and reduced cost" said
Xavier Urbain, CEO of CEVA Logistics. "The successful IPO opens a new chapter
for CEVA. The deleveraged balance sheet and the strategic investment by CMA CGM
will create important growth opportunities. I am confident that we can further
improve margins and deliver significant earnings growth in the years to come -
our target is to improve Adjusted EBITDA by $100 million in the medium-term."


Freight Management

Revenue in Freight Management was $803 million in the first quarter of 2018, an
increase of 14.4% year-on-year or 8.7% in constant currency on the basis of good
volumes, new business wins and higher freight rates, notably in Air.

Revenue in Air Freight was strong with an increase of 21.8% year-on-year. Volume
growth at 1.6% was lower than in prior quarters reflecting the delayed
onboarding of new business wins and certain contract losses. Yields (Net Revenue
per ton), however, were up 17.1% year-on-year driven by better procurement and
active margin management.

Revenue in Ocean Freight increased by 13.8% year-on-year. Ocean Freight volumes
have increased 8.5% with good growth in all key trade lanes and market share
wins. Yields in Ocean (Net Revenue per TEU) were broadly flat. Revenue in our
other Freight Management activities increased 6.3%.

Freight Management EBITDA increased by $5 million or 50% to $15 million,
supported by yield improvements, continued productivity increases and
efficiencies. EBITDA margin improved by 50 basis points to 1.9% in the
seasonally lowest quarter.

Contract Logistics

Revenue in Contract Logistics was $987 million, an increase of 10.4% or 2.8% in
constant currency versus prior year. This reflects volume growth, new business
wins and the termination of certain contracts and transfer of the Contract
Logistics activities in China to the Anji-CEVA JV (as of July 2017). Growth was
particularly strong in some of the European clusters, Latin America and
South-East Asia.

Contract Logistics EBITDA increased by $3 million to $38 million. The focused
improvement initiatives at key operations are showing good results. EBITDA
margin was 3.9%, an increase of 30 basis points in constant currency.

The quarter has seen the implementation of major automotive and industrial
contracts that will benefit the coming quarters as well as significant wins of
e-commerce and consumer/retail contracts, notably in the US, Australia and
Brazil.

Financial results

The first quarter 2018 shows the progress CEVA is making in its transformation
with continued good revenue growth, improved EBITDA and cash flows - this is a
continuation of the performance in the prior quarters and a good start to the
year. The first quarter is seasonally the weakest quarter for CEVA in terms of
revenue, profits, margins and cash flows.

Revenue in the first quarter of 2018 was $1,790 million, up 12.2% versus prior
year or 5.4% in constant currency.

Adjusted EBITDA was $66 million up $12 million or 22% year on year. Reported
EBITDA was $53 million up $8 million year on year.

EBITDA margin was 3.0% in the first quarter, an improvement of 40 basis points
in constant currency. Both Freight Management and Contract Logistics showed
better margins.

As a result of completing the IPO and concurrent private placement with CMA CMG
Group on 8 May 2018, CEVA has significantly strengthened its financial position.

Repayment of Debt and Refinancing

Following the successful IPO on SIX Swiss Exchange, CEVA has initiated the
process of repaying debt with the net proceeds from the IPO.

CEVA has recently delivered redemption notices for the 7.0% First Lien Loan
Senior Secured Notes due 2021, the 9.0% Senior Secured Notes due 2021 and the
12.75% Senior Notes due 2020 which will be repaid in due course. The company has
also repaid a portion of the indebtedness under its term loan and other
facilities.

CEVA expects Moody's and S&P Global to update the company's credit ratings in
coming weeks, reflecting the improved financial position.

Following such updates, CEVA plans to replace the majority of its remaining debt
facilities through a comprehensive refinancing. It is expected that a new
financing package will be comprised of term loans, bonds, revolver and/or asset
backed facilities in USD and EUR. Subject to prevailing market rates, CEVA
expects to lower average interest rate to c.4.5% compared to the current 6.5%.
CEVA intends to execute the refinancing plan in the coming months subject to
market conditions.

Outlook

Management targets to grow revenue above market and to increase EBITDA margins
from the 3.3% recorded in 2017 to at least 4.0% in the medium-term. This should
translate into an additional $100 million in Adjusted EBITDA.

For 2018, CEVA expects continued good volume and revenue growth in view of the
sales momentum and recent business wins. The further productivity, cost savings
and pricing initiatives pursued in Freight Management, Contract Logistics and
SG&A are expected to support an increase in EBITDA margin in the year. Benefits
from deleveraging are expected to already partially materialize this year. As
such, management continues to believe that it can achieve for 2018, assuming no
change in market conditions, double-digit Adjusted EBITDA growth and positive
free cash flow (normalized for IPO and refinancing cost).

Investor call

CEVA Logistics will hold an investor call and webcast today at 12.00 CET to
present its first quarter 2018 results.

To participate, please register underhttps://www.kpneventcall.nl/EventRegistrati
on/892b5313-292b-4dd6-bad3-74b98b5a93c7, where you will get dial-in details and
a personal pin code to access the call.

Webcast:https://www.kpnwebshow.nl/3fy5gm9k

Documents

CEVA Logistics Q1 2018 report and presentation are available under :

http://www.ir.cevalogistics.com/websites/ceva/English/3000/results-centre.html

The recording of the investor call will be available at the above address after
the call.

-End-

 

Notes to Editors:

1. The results for the first quarter 2018 are for CEVA Holdings LLC, the
predecessor company to CEVA Logistics AG. On 3 May 2018, CEVA Holdings LLC
legally merged with CEVA Logistics AG with CEVA Logistics AG being the surviving
entity that then listed on the Swiss Stock Exchange.

2. EBITDA excludes specific items and share-based compensation cost. Adjusted
EBITDA includes the proportional contribution of the ANJI-CEVA joint venture and
excludes specific items and share-based compensation cost.

3. The 7.0% First Lien Loan Senior Secured Notes due 2021 will be redeemed on 24
May 2018 at a redemption price of 101.75% of principal amount plus accrued and
unpaid interest thereon to the redemption date; the 9.0% Senior Secured Notes
due 2021 will be redeemed on 24 May 2018 at a redemption price of 102.250% of
principal amount plus accrued and unpaid interest thereon to the redemption
date; and the 12.75% Senior Notes due 2020 will be redeemed on 13 June 2018 at a
redemption price of 100.00% of principal amount plus accrued and unpaid interest
thereon to the redemption date.

For more information, please contact:

Investors:
Pierre Benaich
SVP Investor Relations 
pierre.benaich@cevalogistics.com
+41 41 547 0048

Media:
David Urbach
SVP Corporate Development 
david.urbach@cevalogistics.com
+41 799 333 083

Dynamics Group AG
Thomas Balmer / Philippe Blangey 
tba@dynamicsgroup.ch/prb@dynamicsgroup.ch
+41 43 268 32 32

Pilot Marketing
Derek  Jonesdj@pilotmarketing.co.uk
Cathy  Howech@pilotmarketing.co.uk
London, UK
+44 20 8941 5381


CEVA - Making business flow
CEVA Logistics, a leading global asset-light supply chain management company,
designs and implements industry leading solutions for large and medium-size
national and multinational companies. Approximately 56,000 employees in more
than 160 countries are dedicated to delivering effective and robust supply-chain
solutions across a variety of sectors where CEVA applies its operational
expertise to provide best-in-class services across its integrated network. For
more information, please visitwww.cevalogistics.com.

SAFE HARBOR STATEMENT:
This news release may contain forward-looking statements. These statements
include, but are not limited to, discussions regarding industry outlook, the
Company's expectations regarding the performance of its business or joint
ventures, its liquidity and capital resources, its guidance for 2018 and beyond,
and the other non-historical statements. These statements can be identified by
the use of words such as "believes" "anticipates," "expects," "intends,"
"plans," "continues," "estimates," "predicts," "projects," "forecasts," and
similar expressions. All forward-looking statements are based on management's
current expectations and beliefs only as of the date of this press release and,
in addition to the assumptions specifically mentioned in the above paragraphs,
there are a number of factors that could cause actual results and developments
to differ materially from those expressed or implied by these forward-looking
statements, including the effect of local and national economic, credit and
capital market conditions, a downturn in the industries in which we operate
(including the automotive industry and the Air freight business), risks
associated with the Company's global operations, fluctuations and increases in
fuel prices, the Company's substantial indebtedness, restrictions contained in
its debt agreements and risks that it will be unable to compete effectively.
Further information concerning the Company and its business, including factors
that potentially could materially affect the Company's financial results, is
contained in the Company's annual and quarterly reports, available on the
Company's website, which investors are strongly encouraged to review. Should one
or more of these risks or uncertainties materialize or the consequences of such
a development worsen, or should underlying assumptions prove incorrect, actual
outcomes may vary materially from those forecasted or expected. CEVA disclaims
any intention or obligation to update publicly or revise such statements,
whether as a result of new information, future events or otherwise.

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End of ad hoc announcement------------------------------------------------------

685751  15-May-2018 CET/CEST