BAAR, SWITZERLAND: CEVA Logistics AG (“CEVA” or the “Company”) held its Annual General Meeting (AGM, which approved all resolutions and appointed a new Board of Directors. CEVA also announces its results for the first quarter of 2019.
New step in CEVA’s Corporate Governance
Among the key resolutions was the proposal to renew governance following CMA CGM’s successful completion of its Public Tender Offer to acquire CEVA.
Rodolphe Saadé elected Chairman of the Board of Directors
Rodolphe Saadé, Chairman and Chief Executive Officer of CMA CGM, has been elected as Chairman of the CEVA Board of Directors, with Rolf Watter acting as Vice-Chairman. Marvin O. Schlanger, Victor Balli, Dr. Rosalind Rivaz and John F. Smith did not stand for re-election. Rolf Watter, Daniel Hurstel and Emanuel R. Pearlman were re-elected for a one-year term of office until the AGM 2020. Three new Board members have been elected: Farid Salem, Michel Sirat and Béatrice de Clermont-Tonnerre.
The three Independent Directors are Rolf Watter, Manny Pearlman and Béatrice de Clermont-Tonnerre. Finally, KPMG has been elected as the independent auditor for the next one year term of office until the AGM 2020.
A new CEO for CEVA
Nicolas Sartini, who currently holds the position of Group Chief Operating Officer and Deputy CEO is appointed Chief Executive Officer as from June 1st. He will bring his experience and expertise to CEVA as it embarks on a new journey. He will replace Xavier Urbain who will become Executive Advisor to Rodolphe Saadé.
Group results for Q1 2019
In the first quarter of 2019, revenue increased by 1.1% in constant currencies to US$1,698 million.
On a reported basis, the revenue in the first quarter declined by 5.2% year-on-year due to negative translation of foreign currencies such as the BRL, the TRY, the EUR and the AUD into USD.
Revenue at Anji-CEVA Joint Venture (owned 50% by CEVA) amounted to US$369 million, an increase of 6.6% compared to the same period of 2018. In constant currency, the revenue increased by 13.2%.
Outlook
Despite a challenging global environment in the beginning of the year, CEVA has performed in line with its roadmap and targets and achieved a number of productivity improvements. The implementation of CEVA's new strategic plan, prepared jointly with CMA CGM, and the close cooperation between the teams of the two companies are going to drive an improvement in CEVA's financial performance and help it turn around quickly.
This cooperation will be further improved with the opening of a CEVA operational center in Marseilles to bring together CEVA’s management teams and support functions, i.e. 200 jobs (creation and transfer).
Therefore CEVA is confirming its medium term targets for 2021:
• CEVA's 2021 revenue target above US$9 billion, reflecting a 5% average annual organic growth and the contribution of CMA CGM Logistics of US$630 million;
• Upgraded 2021 management expectations on Adjusted EBITDA raised from US$380 million to
US$470-490 million pre-IFRS 16 implementation.
Management expectations remain that 2019 will see progress in line with the 2021 objectives, including improvement in EBITDA margin and in free cash flow.
