CEVA Logistics Announces Preliminary Financial Results for 2018 Montag, 04. Februar 2019 - 07:00

CEVA Logistics AG / Key word(s): Preliminary Results
CEVA Logistics Announces Preliminary Financial Results for 2018

04-Feb-2019 / 07:00 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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  * 2018, a year of structural changes, including a major move towards
    deleveraging

  * Expected revenue growth of 5.2% in 2018 compared to previous year (5.4%
    at constant currency)

  * Net debt down to $1,190 million as of 31 December, 2018, representing a
    very significant decrease of 43% compared to $2,089 million a year
    earlier

Baar, Switzerland, 4 February, 2019 - CEVA Logistics AG ("CEVA" or the
"Company") announced today preliminary results for the year ended 31
December, 2018 . This communication is done in the context of the launch of
a proposed offering of $825 million in aggregate principle amount of Secured
Term Loan B due 2025 in a private transaction in connection with the likely
change of control triggered by the Public Tender Offer published by CMA CGM
SA on 28 January, 2019.

The year 2018 has been a year of structural changes for CEVA, not least of
which was the Company's successful initial public offering on the SIX Swiss
Stock Exchange which was followed by a transformational refinancing that saw
the Company overhaul its pre-IPO structure, extend maturities and reduce
interest costs. Since the transaction, the company has made positive
management and organizational adjustments and remains focused on its
long-term strategy rather than on short-term performance.

The Company's underlying business has continued to perform in line with
expectations in both freight management and contract logistics, albeit
various one-time items have significantly impacted profitability in the
third and the fourth quarters of the year. In the meantime, new business
performance has remained promising with a strong pipeline of new customers
as well as new opportunities with existing customers in both Freight
Management and Contract Logistics as a positive consequence of the IPO.

CEVA Logistics expects to report revenue growth of approximately 5.2% in
2018 versus the prior year, (by approximately 5.4% in constant currency) to
around US$7,356 million of revenues versus US$6,994 million in 2017. Net
revenue for 2018 was US$3,629 million. Freight Management revenue growth is
estimated at a strong 7.3% (7.2% in constant currency) to approximately
US$3,507 million while revenue growth in Contract Logistics is estimated to
be 3.3% (3.9% in constant currency ) to approximately US$3,848 million.

The Company anticipates Adjusted EBITDA1 for 2018 to be approximately US$260
million, compared to US$280 million in the prior year. This number includes
US$62 million representing CEVA's share of 50% from the Chinese JV Anji
CEVA. Whilst CEVA teams have achieved continued progress in productivity,
cost reduction and other margin improvement initiatives, EBITDA has been
negatively impacted by various one-time adverse events: Contract Logistics
issues in Italy in the third quarter as well as some changes in accounting
estimates in the fourth quarter reflecting a more conservative approach from
management. Without these events, CEVA estimates that Adjusted EBITDA for
2018 would have been approximately US$54 million higher at US$314 million.
In addition, CEVA has been facing negative foreign exchange impacts from the
BRL, the EUR and the TRY. These events have been mitigated by a capital gain
of US$14 million in the Chinese joint venture Anji CEVA Logistics Co. Ltd.

EBITDA (before specific items and share-based compensation) amounted to
approximately US$198 million, compared to US$230 million in 2017. This
represents an EBITDA margin2 of approximately 2.7%, compared with 3.3% in
2017. Excluding the adverse events CEVA's EBITDA margin would have seen an
improvement versus the prior year. EBITDA for Freight Management amounted to
US$93 million, up US$17 million versus the prior year and Contract Logistics
EBITDA was US$105 million versus US$154 million in 2017. Excluding the
impact of the issues in Italy and changes in estimates, Contract Logistics
EBITDA would have been US$52 million higher and showing an increase versus
the prior year.

CEVA capital expenditures have remained relatively stable at approximately
US$109 million in 2018 compared to US$102 million in the prior year. The
company anticipates net debt as of 31 December 2018 to be approximately
US$1,190 million down 43% compared to US$2,089 million as of 31 December
2017 in line with the significant de-leveraging following the Initial Public
Offering. Net working capital in the balance sheet was 2.3% of revenues at
the end of 2018.

The publication of CEVA's audited financial results for the year ended 31
December 2018 will be released on 28 February 2019. A conference call will
be held at 14:00 CET on this date.

Note: These preliminary results are based on internal management accounts
and reflect CEVA's preliminary expectations for its results for the year
ended 31 December 2018. These estimates have been prepared by management and
have not been reviewed or audited by an independent auditor. The estimates
should not be regarded as a representation or forecast by CEVA or any other
person regarding CEVA's results that will be reported for 2018 and investors
should not place undue reliance on them. The preliminary results for 2018
quoted above are subject to our normal close process. Our actual results for
2018 could vary from these estimates and the differences could be material.

1 Adjusted EBITDA includes the Group's share of EBITDA from the Anji-CEVA
joint venture and excludes specific items and non-cash share based
compensation.

2 EBITDA margin is calculated based on the Group's EBITDA excluding the
Anji-CEVA joint venture, specific items and non-cash share based
compensation cost.

For additional information please contact:

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

Media:
Matthias Hochuli
Group Head of Marketing and Communications
matthias.hochuli@cevalogistics.com
+41 41 547 00 52

Cathy Howe
Pilot Marketing
ch@pilotmarketing.co.uk
Tel: +44 (0)208 941 5381

CEVA - Making business flow
CEVA Logistics, a global asset-light third-party logistics company, designs
and operates industry leading supply-chain solutions for large and
medium-size national and multinational companies. Its integrated network in
Freight Management and Contract Logistics spans more than 160 countries.
Approximately 44,000 employees are dedicated to delivering effective
solutions across a variety of industry sectors where CEVA applies its
operational expertise to provide best-in-class services. CEVA generated
revenue of US$7 billion and adjusted EBITDA of US$280 million in 2017. CEVA
Logistics is listed on SIX Swiss Exchange under ticker symbol CEVA. For more
information, please visit www.cevalogistics.com

Safe Harbour Statement:
This news release contains specific forward-looking statements. These
forward-looking statements include, but are not limited to, its preliminary
estimated results for 2018 and guidance beyond, discussions regarding
industry outlook, CEVA's expectations regarding the performance of its
business or joint ventures, its liquidity and capital resources, and 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 news 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 CEVA's global operations, fluctuations and
increases in fuel prices, CEVA's substantial indebtedness, restrictions
contained in its debt agreements and risks that it will be unable to compete
effectively. Further information concerning CEVA and its business, including
factors that potentially could materially affect CEVA's financial results,
is contained in the annual and quarterly reports of CEVA Logistics AG (and
its predecessor CEVA Holdings LLC), available on the Company's website,
which investors are strongly encouraged to review. Should one or more of
these risks or uncertainties materialise 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

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