8 May 2019 integration innovation intimacy 1 Our Business - - PowerPoint PPT Presentation

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8 may 2019
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8 May 2019 integration innovation intimacy 1 Our Business - - PowerPoint PPT Presentation

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Companys Performance Q1/2019 8 May 2019 integration innovation intimacy 1 Our Business Q1/2019 Financial Performance 2 AGENDA Performance Q1/2019 by BU 3 Business Outlook for Q2/2019 4 integration integration innovation

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integration innovation intimacy

Company’s Performance Q1/2019 8 May 2019

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integration innovation intimacy integration innovation intimacy

AGENDA

Our Business 2 Q1/2019 Financial Performance 3 Performance Q1/2019 by BU 4 Business Outlook for Q2/2019 1

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2 2

Our Business

AIR FREIGHT SEA FREIGHT & INLAND TRANSPORT LOGISTICS MANAGEMENT CHEMICAL & SPECIALTY LOGISTICS

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  • Cargo General Sales Agent (GSA): exclusive sales

agent of

  • Thai AirAsia & Thai AirAsiaX airline for all routes

from and to Thailand

  • Sri Lankan, Lan Cargo, Bhutan, Jeju Airlines and

US Bangla Airlines for all routes from Thailand

  • Wholesale Freight Forwarder : providing domestic

and international air freight services for co-loaders

  • Air Cargo Terminal : International and domestic cargo

terminal at Don Muang Airport

AIR FREIGHT

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  • Shipping Line Agencies :
  • Thailand sole agent for Rizhao Port

Shipping Line

  • Thailand Joint Venture : CK Line
  • Wholesale Freight Forwarder : Thailand

Joint Venture with ECU Worldwide, global leader in Less-than Container Load (LCL) services with network in over 160 countries

  • Inland Container Trucking Services:

transport containers to and from seaport / container depot

SEA FREIGHT & INLAND TRANSPORT

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  • Integrated Freight Forwarder : International

freight forwarding services for both sea & air transport and customs clearance for retail customers

  • Warehousing : storage, inventory management,

and real-time reporting

  • Distribution Management : modern trade, shops,

home delivery

  • Fulfillment Service : focus on E-Commerce and

end to end supply chain services

LOGISTICS MANAGEMENT

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  • Integrated Freight Forwarder :

International freight forwarding services for both sea & air transport and customs clearance for chemical & dangerous goods

  • Dedicated Chemical Warehouse : storage,

inventory management, and real-time reporting

  • Inland and Distribution Management : for

industrial and B2B market

  • DG Packaging : sale of packing materials,

DG declaration and repacking services

  • ISO Tank Business : as agent for Nippon

Concept Co., Ltd, a Japanese based ISO tank operator for liquid chemical

CHEMICAL & SPECIALTY LOGISTICS

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integration innovation intimacy integration innovation intimacy

AGENDA

Our Business 2 Q1/2019 Financial Performance 3 Performance Q1/2019 by BU 1 4 Business Outlook for Q2/2019

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8 603.0 682.6 733.0 682.6 Q1/18 Q1/19 Q4/18 Q1/19

Performance Q1/2019 – Revenue

Remark : 1/ After eliminating inter-company transactions.

Unit : Million Baht

YoY 13.2% Q1/18 Q1/19 % Revenue Contribution Q1/18 vs Q1/19

Revenue Q1/18 Q1/19 YoY Q4/18 Q1/19 QoQ Airfreight 487.1 547.0 12% 619.1 547.0 (12%) Sea freight 28.9 22.3 (23%) 24.3 22.3 (9%) Logistics 34.7 48.3 39% 33.6 48.3 44% Chemical 133.0 133.4 0% 133.9 133.4 (0%) Total Revenue 683.7 750.9 10% 810.9 750.9 (8%) Revenue Consol 1/ 603.0 682.6 13% 733.0 682.6 (7%)

QoQ -6.9% Q1/18 vs. Q1/19 Q4/18 vs. Q1/19

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9 127.9 114.0 104.5 114.0 21.2% 16.7% 14.3% 16.7% Q1/18 Q1/19 Q4/18 Q1/19

Performance Q1/2019 – Gross Profit

Remark : 1/ After eliminating inter-company transactions. 2/ Gross Profit in Q1/18 do not take into account the reclassification of “Selling expense” to “Cost of sales and services” 3/ Gross Profit in Q4/18 are managerial figures, calculated by using 12-month 2018 Gross Profit (After Reclassification) minus 9-month 2019 Gross Profit (no Reclassification)

Unit : Million Baht

% Gross Profit Contribution YE17 vs YE18

Gross Profit Q1/182/ Q1/19 YoY Q4/183/ Q1/19 QoQ Airfreight 72.9 55.3 (24%) 49.7 55.3 11% Sea freight 15.0 15.7 5% 16.6 15.7 (5%) Logistics 9.1 15.2 67% 7.6 15.2 100% Chemical 32.5 31.1 (4%) 32.4 31.1 (4%) Total Gross Profit 129.4 117.3 (9%) 106.2 117.3 10% Gross Profit Consol1/ 127.9 114.0 (11%) 104.5 114.0 9% GPM 21.2% 16.7% 14.3% 16.7%

Q1/18 Q1/19 Q1/18 vs. Q1/19 Q4/18 vs. Q1/19 YoY 10.9% QoQ 9.1%

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Performance Q1/2019 – Net Profit

Unit : Million Baht

Net Profit Q1/18 Q1/19 YoY Q4/18 Q1/19 QoQ Net Profit Consol 25.9 42.9 66% 42.7 42.9 0% NPM 4.3% 6.3% 5.8% 6.3%

25.9 42.9 42.7 42.9 4.3% 6.3% 5.8% 6.3% Q1/18 Q1/19 Q4/18 Q1/19 QoQ 0.4% YoY 65.5% Q1/18 vs. Q1/19 Q4/18 vs. Q1/19

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11 40.3 43.1 26.1 20.1 25.9 38.4 43.7 42.7 42.9 146.5 143.2 123.6 118.0 120.9 123.8 113.3 126.5 114.0 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Net Profit Total Gross Profit

31.98THB:USD

Quarterly Performance Since Y2017

Net Profit

Gross Profit Margin Daily THB:USD

Gross Profit

36.07 THB:USD

Cancel domestic airfreight of Thai Post Appreciation of Thai Baht

26.8% 25.4% 22.4% 17.5% 20.1% 17.7%

YoY 66%

15.4% 17.3%

32.61THB:USD

Note : Exchange rate as of 30 April 2019 = 32.10 THB:USD Exchange rate Average Y17 = 34.10 THB:USD Exchange rate Average Y18 = 32.49 THB:USD

32.85THB:USD

16.7% Remark: Q1-Q3 2018 Gross Profit figures in this slide represent adjusted Gross Profit from audited reports i.e., reclassify “Selling expense” to “Cost of sales and services” in each quarter

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Financial Status Financial Ratio

Liability Equity Asset

Ratio YE18 Q1/19 Company Performance ROE (%) 1/ 13.0% 14.0% Collection Period (days) 42.1 45.0 Payment Period (days) 61.1 61.1 Debt Performance Current Ratio (times) 2.1x 0.9x D/E Ratio (times) 0.6x 0.7x IBD/E Ratio (times) 0.0x 0.2x Profitability Performance Gross Profit Margin (%) 17.5% 16.7% EBITDA Margin (%) 7.9% 9.3% Net Profit Margin (%) 5.4% 6.3% EPS (Baht per share) 0.25 0.07

Trailing 12M EPS (Baht per share) 2/

0.25 0.28

Remark : 1/ Trailing 12M Net Profit 2/ Adjusted EPS based on existing shares at that time

2,166 1,256 910 Asset Liability and Equity

Q12019

Financial Health Q1/2019

Core Asset Million Baht Cash 244 AR 489 PPE 295 Investment (JV&Ass) 852 Core Liability Million Baht AP 472 IBD 233

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integration innovation intimacy integration innovation intimacy

AGENDA

Our Business 2 Q1/2019 Financial Performance 3 Performance Q1/2019 by BU 1 4 Business Outlook for Q2/2019

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1,041 853 455 853 3,814 3,558 3,928 3,558 4,855 4,411 4,383 4,411 Q1/18 Q1/19 Q4/18 Q1/19 1,207 1,016 583 1,016 13,214 15,630 20,148 15,630 14,420 16,647 20,731 16,647 Q1/18 Q1/19 Q4/18 Q1/19

AIR FREIGHT

Domestic International

Wholesale Freight Forwarder

  • Decreased in Transit volume from some

countries especially in Myanmar and Cambodia Cargo General Sales Agent (GSA) Unit : Tons Unit : Tons

  • YoY Volume increased due to an expansion of

routes and higher load factor

  • QoQ Volume decreased since Q1 is a low

season with long holidays

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17,133 22,656 24,390 25,208 18,199 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19

  • QoQ Volume decrease due to seasonal effect
  • Expect to regain volume in the next quarters in 2019 as in 2018

AIR FREIGHT

Unit : Tons Air Cargo Terminal YoY 6%

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379 495 438 495 2,952 2,499 2,317 2,499 3,331 2,994 2,755 2,994 Q1/18 Q1/19 Q4/18 Q1/19 22,324 27,929 25,561 27,929 Q1/18 Q1/19 Q4/18 Q1/19

Shipping Line Agencies (TEU)*

  • Continue growth through partnership with Rizhao

Inland Container Trucking Services (Trips)

  • Even with increased iii’s own fleet services

rendered, the revenue took a slight decrease due to large numbers of domestic service provided which the company receives lower fee than that of the cross-borders routes.

SEA FREIGHT & INLAND TRANSPORT

Remark * Sea Freight and Inland Transport figures previously presented in 2018 Analyst presentation and 2019 are not aligned because the BU changed the method

  • f collecting data since the beginning of 2019 in order to better analyze business

Own fleet Outsource

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131 172 106 172 Q1/18 Q1/19 Q4/18 Q1/19

LOGISTICS MANAGEMENT

Integrated Freight Forwarder

  • Both Sea and Air Freight volume increased from acquiring new key account customers

Sea Freight (TEU) Air Freight (Tons)

351 783 679 783 Q1/18 Q1/19 Q4/18 Q1/19

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4,016 3,296 3,296 3,296 Q1/18 Q1/19 Q4/18 Q1/19

LOGISTICS MANAGEMENT

Delivery (#Order) Warehousing (M2/Month)

  • Volume increased from E-Commerce distribution
  • rders, and more B2C deliveries with COD

shipments

  • Focus on better warehousing space utilization

Distribution Management & Fulfillment Service

25,093 75,482 63,192 75,482 Q1/18 Q1/19 Q4/18 Q1/19

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1,902 2,007 1,876 2,007 Q1/18 Q1/19 Q4/18 Q1/19

CHEMICAL & SPECIALTY LOGISTICS

Sea Freight (TEU) Air Freight (Kgs) Integrated Freight Forwarder

  • Increased in export volume

62,115 31,476 51,503 31,476 Q1/18 Q1/19 Q4/18 Q1/19

  • Lower volume because of decreased auto-parts

shipments

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1,210 1,284 1,233 1,284 Q1/18 Q1/19 Q4/18 Q1/19 21,454 21,454 21,454 21,454 Q1/18 Q1/19 Q4/18 Q1/19

CHEMICAL & SPECIALTY LOGISTICS

  • maintained warehouse space and retained high

utilization rate Warehousing (Pallet) ISO Tank Operator (TEU)

  • Stable growth for both export/import volumes
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679 772 764 772 Q1/18 Q1/19 Q4/18 Q1/19

CHEMICAL & SPECIALTY LOGISTICS

DG Packaging & Services Packing Service (Shipment) Packing Sales (Box)

  • Increased in services as a result of On-site packing services (DGP-2-GO) and more key

accounts being developed

3,391 3,643 2,406 3,643 Q1/18 Q1/19 Q4/18 Q1/19

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integration innovation intimacy integration innovation intimacy

AGENDA

Our Business 2 Q1/2019 Financial Performance 3 Performance Q1/2019 by BU 1 4 Business Outlook for Q2/2019

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Triple i Logistics 2021 Aspirations and Strategy

Enablers

  • IT/Operations: Leverage digital technology to increase efficiencies, reduce costs and provide services to customers and provide

business intelligence for decision making

  • HR/People: Fill key critical positions, review governance model

BU Strategy Strategic directions Aspirations

Leading Thai Logistics House with sustainable growth in SEA and achieving significant growth by 2021

Organic growth Inorganic Growth Partner-driven growth:

  • Lock in key long term partners (airlines,

network, authorities)

  • Wholesale business model and related services
  • Create new innovative products with partners

(master piece for Thailand) Customer-driven growth:

  • Maintain leadership position in DG as integrated

logistics provider and grow regionally

  • Integrated logistics provider for import

businesses

  • Partnership with Air

Asia (grow and maximize utilization)

  • Air cargo terminal at

DMK and HKT Inorganic

  • 1. Air Freight
  • Growth with CK Line

and Rizhao

  • 2. Sea Freight

Inorganic

  • Growth by further

penetration of its current customer base and acquisition

  • f new customers
  • 4. Chemical

Inorganic

  • 3. Logistics
  • Growth via the current

customer base and new customers in import businesses by leveraging new IT platform Inorganic

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Business Outlook - Air Freight Business

Organic

  • Volume will increase from Q1/2019 since the first quarter is a low

season with long holidays

  • Thai AirAsia X will open new routes to Tienjin (China) in May and

Brisbane (Australia) in June

  • US Bangala Airlines appointed the company as GSA in January,

serving direct flights to Dhaka (Bangladesh), a route with high demand, since March 2019 Inorganic Growth

  • Around
  • The company will fully recognize profit from its investment in

Q2/2019 and onward

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  • Volume will increase from the first

quarter as the latter half of the second quarter will be the beginning of high season up until third quarter, which will also drive exports to China and Vietnam which are the main routes of Rizhao Shipping Lines

Rizhao Port

Business Outlook – Sea Freight & Inland Transport

Sea Freight

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  • The company direction to expand Key Account customer base since

Q1/2019 results in positive performance, not only shown through increases in Air and Sea Freights, but also through increase in related services

  • In Q2/2019, the company will focus in E-Commerce customers

which have exponential growth and employ whole value chain logistics services

  • Focus in customers who use several services, making higher

profitability per unit area International Freight Forwarding Service Warehouse and Distribution Service

Business Outlook – Logistics Management

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  • In Q2/2019, the performance will be better due to an increase in new

customers and enhancing warehouse utilization

  • The company may expand Warehouse area to serve the increasing

demand

  • DGPS will provide a new service, DG Acceptance Process at

Singapore airport, as the law (DG acceptance process) will be in effect in Q2 onward

  • Acquired a new Key Account in Oil & Gas industry, generating higher

revenue Warehouse Expansion Performance from DGPS

Business Outlook – Chemical & Specialty Logistics

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  • Air freight rates will be stable as in the first quarter
  • Sea freight rates are expected to increase from the first quarter due to the

start of High season, and may escalate the rates for some services e.g., Reefer Container which has a high demand in Q2/2019

  • Exchange rates likely to depreciate compare to the first quarter, and still

volatile cause by domestic economic and political factors, and also international politic specifically the USA International Freight Trends Exchange Rate

Business Outlook – Ongoing Business