SLIDE 1
Companys Performance Year 2018 19 March 2019 integration - - PowerPoint PPT Presentation
Companys Performance Year 2018 19 March 2019 integration - - PowerPoint PPT Presentation
Opportunity Day Companys Performance Year 2018 19 March 2019 integration innovation intimacy 1 Our Business YE2018 Financial Performance 2 AGENDA Business Outlook for 2019 3 integration integration innovation innovation intimacy
SLIDE 2
SLIDE 3
2 2
Our Business
AIR FREIGHT SEA FREIGHT & INLAND TRANSPORT LOGISTICS MANAGEMENT CHEMICAL & SPECIALTY LOGISTICS
SLIDE 4
3
▪ 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 and Jeju 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
SLIDE 5
4
▪ 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
SLIDE 6
5
▪ 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
SLIDE 7
6
▪ 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
SLIDE 8
integration innovation intimacy integration innovation intimacy
AGENDA
Our Business 2 YE2018 Financial Performance 3 Business Outlook for 2019 1
SLIDE 9
8 2,294.6 2,770.6 YE17 YE18 YoY 21%
Performance YE2018 – Revenue
YE17 vs YE18
Revenue YE17 YE18 YoY Airfreight 1,863.9 2,279.6 22% Sea freight 87.0 116.6 34% Logistics 105.4 135.0 28% Chemical 539.7 561.9 4% Total Revenue 2,596.1 3,093.1 19% Revenue Consol 1/ 2,294.6 2,770.6 21%
Remark : 1/ After eliminating inter-company transactions.
Unit : Million Baht
YE17 YE18
▪ Overall revenue grew from increasing services ▪ BU Chemical revenue slightly grew due to decreasing of Packaging sale business
% Revenue Contribution YE17 vs YE18 YE17 vs YE18
SLIDE 10
9 YoY -9%
Performance YE2018 – Gross Profit
Remark : 1/ After eliminating inter-company transactions.
YE17 vs YE18
Unit : Million Baht
Gross Profit YE17 YE18 YoY Airfreight 320.7 249.9 (22%) Sea freight 38.5 71.7 86% Logistics 37.2 36.1 (3%) Chemical 142.1 132.9 (7%) Total Gross Profit 538.5 490.6 (9%) Gross Profit Consol1/ 531.4 484.6 (9%) GPM 23.2% 17.5%
YE17 YE18
▪ Sea freight BU shows outstanding performance in terms of GP growth ▪ Impacts to GP from Airfreight BU ▪ Change of cost recognition (Selling expense to COGS) ▪ Adjustment of accrued expenses in 2017
% Gross Profit Contribution YE17 vs YE18 531.4 484.6 23.2% 17.5% YE17 YE18
SLIDE 11
10
Performance YE2018 – Net Profit
YE17 vs YE18
Unit : Million Baht
129.6 150.7 5.6% 5.4% YE17 YE18 YoY 16% Unit : Million Baht YE17 YE18 % Change Total Revenue 2,294.6 2,770.6 20.7% Gross Profit 531.4 484.6 (8.8%) GPM (%) 23.2% 17.5% (5.7%) Other Income 15.5 18.7 20.8% Selling Expense 110.9 77.2 (30.4%) Admin Expense 281.0 295.2 5.0% (Loss) Gain – Exchange rate (10.2) 7.0 n.m. P/L from JV & Associate 16.7 33.1 98.2% EBITDA 202.9 219.1 8.0% Net Profit Consol 129.6 150.7 16.2% NPM(%) 5.6% 5.4% (0.2%) EPS (Baht per share) 0.21 0.25 16.2%
SLIDE 12
11
Performance Y2018 Analysis
Unit : Million Baht Audited Performa Analysis YE17 YE18 % Change YE17 YE18 % Change Total Revenue 2,294.6 2,770.6 20.7% 2,294.6 2,770.6 20.7% Gross Profit 531.4 484.6 (8.8%) 498.2 /1 484.6 (2.7%) GPM (%) 23.2% 17.5% (5.7%) 21.7% 17.5% (4.2%) Selling Expense 110.9 77.2 (30.4%) 77.7 /1 77.2 (0.7%) Admin Expense 281.0 295.2 5.0% 281.0 295.2 5.0% P/L from JV & Associate 16.7 33.1 98.2% 16.7 33.1 /2 98.2% Net Profit Consol 129.6 150.7 16.2% 129.6 150.7 16.2% NPM(%) 5.6% 5.4% (0.2%) 5.6% 5.4% (0.2%) Note 1. Change of cost recognition (“Selling expense” to “Cost of sales and services”) resulting in decreasing Gross Profit Margin, while selling expense significantly decreased by 30.4% 2. Recognized 2H18 profit of DG Packaging Pte amount of 10.9 million baht, while existing Company’s Associated and Joint Ventures profit increased by 33%
SLIDE 13
12
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% 20.2% 16.6%
YoY 113%
16.5% 17.3%
32.61THB:USD
Note : Exchange rate as of 26 Feb 2019 = 31.29 THB:USD Exchange rate Average Y17 = 34.10 THB:USD Exchange rate Average Y18 = 32.49 THB:USD
32.85THB:USD
40.3 43.1 26.1 20.1 25.9 38.4 43.7 42.7 146.5 143.2 123.6 117.8 120.4 116.2 121.0 126.9 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Net Profit Total Gross Profit
SLIDE 14
13
1,900 1,202 698 Asset Liability and Equity
YE2018
Financial Health YE2018
Financial Status Financial Ratio
Liability Equity Asset
Ratio YE17 YE18 Company Performance ROE (%) 1/ 17.8% 13.0% Collection Period (days) 56.9 42.1 Payment Period (days) 93.7 61.1 Debt Performance Current Ratio (times) 3.1x 2.1x D/E Ratio (times) 0.4x 0.6x IBD/E Ratio (times) 0.0x 0.0x Interest Coverage Ratio (times) 27.0x 89.7x Profitability Performance Gross Profit Margin (%) 23.2% 17.5% EBITDA Margin (%) 8.8% 7.9% Net Profit Margin (%) 5.6% 5.4% EPS (Baht per share) 0.21 0.25
Trailing 12M EPS (Baht per share) 2/
0.21 0.25
Remark : 1/ Trailing 12M Net Profit 2/ Adjusted EPS based on existing shares at that time
Asset THB mm Cash 732 AR 420 PPE 239 Lia THB mm AP 443 IBD 33
SLIDE 15
14
Outstanding Performance with Highest Revenues and Net Profit
2,295 2,771 YE17 YE18 130 151 5.6%* 5.4%* YE17 YE18
Net profit Revenue
JV & Associated ✓ Recognized half year 2018 performance of DG Packaging (SN) more than 10.9 MB ✓ Performance from other JV&Associated growth 33%
98% 86%
✓ Outstanding performance in terms of GP growth through strategic alliance with Rizhao Shipping Lines ✓ Airfreight’s revenue whom is core business still continue growth 22% ✓ International warehouse business at DMK is more successful than expected and continue growth
0.17
✓ Dividend payment of 0.17 Baht per share in May 2019 ✓ Dividend pay-out ratio is 68.2% (Consolidated NI2019)
Unit : MB
Remark : * Net Profit Margin
22%
SLIDE 16
integration innovation intimacy integration innovation intimacy
AGENDA
Our Business 2 YE2018 Financial Performance 3 Business Outlook for 2019 1
SLIDE 17
16
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 of new customers
- 3. Chemical
Inorganic
- 4. Logistics
- Growth via the current
customer base and new customers in import businesses by leveraging new IT platform Inorganic
SLIDE 18
17
Business Outlook - Air Freight Business (1)
▪ Continually expand customer based in International E-Commerce business from China and Hong Kong ▪ Expect to regain Domestic business from Thailand Post in 2H/2019
Cargo General Sales Agent (GSA)
▪ Anticipating an increase in revenue at a higher growth rate from services in DMK ▪ Intend to expand and duplicate its services to other domestic airports in Thailand
Wholesale Freight Forwarder ▪ Increase volume from the expansion of new routes and number of flights of main alliance airlines ― Thai AirAsia & Thai AirAsia X ▪ Maximize the utilization capacity of existing service routes Inorganic Growth
- SAL
▪ In January 2019, the company invested in 14.95% shares of SAL Group, a company conducting airline and passenger ground services, as our strategic partner to increase opportunities and grow our businesses. Airport Cargo Terminal
SLIDE 19
18
Business Outlook - Air Freight Business (2)
Inorganic Growth
- Around Logistics
▪ Acquisition of 50% shares in Around Logistics Management Co., Ltd, a company is registered in Hong Kong
Benefits to iii
Expansion and Growth
1
Diversification
2
▪ A remarkable stepping stone to further expand Air GSA regional network ▪ To capture growth and volume of transportation and logistics services in one of the biggest trading hub in the world, Hong Kong and Singapore ▪ To expand Airline Services coverage, covering 24 countries and more than 22 airlines, with Hubs in Hong Kong, Singapore and high economic growth country like Vietnam ▪ To boost iii’s net profit by an estimated 50% of HKD 20 mm through accounting consolidation of the JV ▪ Manage iii’s risk of reliance on one airline (Thai Air Asia and Thai Air Asia X) and diverse its revenue stream
SLIDE 20
19
Airline Services Coverage
III’s and Around Logistics ’s Airline services coverage
SLIDE 21
20 ▪ Continual growth in 2019. Surge in services due to an increase in vessel space by 30%, and expand new servicing ports ▪ Plan to expand businesses related to containers transportation by utilizing partners’ strengths and opportunities in EEC project ▪ Thai― China sisters ports
Rizhao Port
Business Outlook – Sea Freight & Inland Transport
Sea Freight
SLIDE 22
21
▪ Focus on acquiring Key Accounts ― export/import―customers, especially importers that are potential user of other related logistics services. ▪ Plan to develop services for E-Commerce customers with domestic distributions through Air transportations. International Freight Forwarding Service Warehouse and Distribution Service
Business Outlook – Logistics Management
SLIDE 23
22
▪ Looking for new strategic location for warehouse expansion since the existing one is already fully utilized. ▪ Develop warehousing and related services specialized for Hazardous and Chemical goods by focusing on areas with service potentials such as East Economic Corridor (EEC) ▪ Company will fully recognize profit from its investment in DG Packaging (DGP) Pte. (Singapore) from 2019 and onward. Warehouse Expansion Performance from JV
Business Outlook – Chemical & Specialty Logistics
SLIDE 24