previous year from better profits and focus on working capital
• Expecting improved EBITDA and cash flow for 2017.

Hoofddorp, the Netherlands, 4 August, 2017 – CEVA Holdings LLC (“CEVA” or the “Company”), one of the world’s leading non‐asset based supply chain management companies, today reported results for the First Half of the year ended 30 June, 2017.

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

“Our Q2 is a further improvement on Q1, delivering revenue, profitability and cash flow improvements despite market headwinds. Our underlying trading was even stronger,” said Xavier Urbain, CEO of CEVA. “The Excellence Program, with a relentless focus on impeccable execution and productivity is demonstrating a strong momentum and we shall see more impact in the coming quarters. We have made much progress in terms of cost reductions and cash flow and we keep winning new business. In view of these improvements, we confirm our expectation for robust results in 2017 in EBITDA and cash flow.”

Freight Management

In Q2, Freight Management achieved revenue growth of 8.8% YoY in constant currency with Air Freight volumes up 15.6% YoY notably on the Trans-Pacific and Intra-Asia trade lanes and Ocean Freight up 3.5% YoY driven by volumes out of Asia and from Europe to Middle-East.

Although the market situation remains difficult in view of rising carrier rates, yields were maintained at relatively good levels. Productivity improvements through the implementation of our Excellence Program led to reductions in direct operating expenses per file, which mitigated the impact of the rate environment.

Freight management EBITDA in Q2 was $20 million, up $2 million in constant currency.
Contract Logistics

New business wins, particularly in Automotive, Consumer & Retail and E-Commerce, ensured continued top-line growth in Contract Logistics in Q2. Revenue was up 4.5% in constant currency.

Contract Logistics EBITDA was $39 million in Q2, up $6 million YoY in constant currency. Positive results driven from our Excellence Program together with improvements on selected contracts lead to a strengthening of margins by 50 bps.
Financial results

Second Quarter revenues were $1,721 million up 6.4% in constant currency and up 3.3% in actual currency. This is a further acceleration over the growth in previous quarters. For the first half, revenues were $3,317 million up 5.8% in constant currency and up 2.6% in actual currency.

In Q2, adjusted EBITDA came in at $70 million, up $9 million in constant currency versus the prior year. In H1, adjusted EBITDA came in at $124 million, up $11 million in constant currency versus the prior year. The improvement in profits was driven by growth and cost savings achieved from the Excellence Program which more than offset margin pressures in Air & Ocean. Continuing cost reductions will support profits in the coming quarters.

Operating cash flow in the second quarter was $72 million, an improvement of $55 million YoY reflecting better profits and the continued focus on working capital. For the first half, operating cash flow improved by $68 million YoY. CEVA has launched new initiatives to reduce working capital structurally and improve cash flows.

CEVA – Making business flow
CEVA Logistics, one of the world’s leading non-asset based supply-chain management companies, designs and implements industry leading solutions for large and medium-size national and multinational companies. Approximately 40,000 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 visit www.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 2017 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.