Kln Logistics Group Limited · HKEX:636

Kln Logistics — Kerry Logistics Network — H1 2019 Earnings Presentation

18 slides from Kln Logistics's earnings presentation, 2019

1. Slide 1: Interim Results 2019

   I N T E R I M R E S U LT S 2 0 1 9 0636.HK © Kerry Logistics Network Limited. All rights reserved. 2019 INTERIM RESULTS 0

2. Slide 2: Disclaimer

   DISCLAIMER This presentation was prepared by Kerry Logistics Network Limited (the “Company”) for reference and general information purposes only. This presentation is not intended to and does not constitute investment advice, recommendation, invitation or offer to enter into, any agreement to purcha

3. Slide 3: Financial Highlights (HK$'M)

   FINANCIAL HIGHLIGHTS (HK$’M) TURNOVER(1) SEGMENT PROFIT SEGMENT PROFIT IL IFF 13% 5% 22% 19,810 1,162 288 © Kerry Logistics Network Limited. All rights reserved. CORE OPERATING PROFIT CORE NET PROFIT 9% 4% 1,330 669 PROFIT ATTRIBUTABLE TO SHAREHOLDERS DIVIDEND (HK CENTS PER SHARE) 194% SPECIAL (PAID

4. Slide 4: Turnover Analysis

   T U R N O V E R ( 1 ) A N A LY S I S Turnover(1) Change by Region (in HK$’M, comparable growth in %) LOP +23% 19,810 +16% +25% -% 47% 1H 19 © Kerry Logistics Network Limited. All rights reserved. +13% 52% +5% +8% IFF +21% 17,461 1% HKW HK$’ M YoY IL 9,518 +17% - Logistics Operations 9,339 + 16% 1H 1

5. Slide 5: Segment Profit Analysis

   S E G M E N T P R O F I T A N A LY S I S LOP Segment Profit Change by Region 61% (in HK$’M, comparable growth in %) +30% 1H 19 +12% ->200% 1,450 © Kerry Logistics Network Limited. All rights reserved. +8% +10% +12% -86% +9% 19% 20% HKW IFF 1,342 HK$’ M YoY IL 1,162 +5% - Logistics Operations 892 + 6

6. Slide 6: IL Segment Profit HK$ 1,162M

   SEGMENT PROFIT • Hong Kong LOP +18% • Taiwan +11% IL © Kerry Logistics Network Limited. All rights reserved. • Asia(2) +7% HK$ 1,162M + 5% • Financed HK$ 40M in Kerry Express network: - Malaysia, Vietnam and Indonesia • China still flat (2) Asia ex-Greater China. 2019 INTERIM RESULTS 5

7. Slide 7: IFF Segment Profit HK$ 288M

   SEGMENT PROFIT • All regions recorded growth except Europe • Strong growth in Intra-Asia traffic IFF • Increasing contribution from Project Logistics © Kerry Logistics Network Limited. All rights reserved. and Belt & Road countries HK$ 288M + 22% • Weak European export to Asia 2019 INTERIM RESULTS 6

8. Slide 8: Disposal of Chai Wan & Shatin Warehouses

   D I S P O S A L O F C H A I WA N & S H A T I N WA R E H O U S E S Cash Received Impact on Financials Transaction completed on 28 Jun 2019 Special Dividend – HK$ 600m © Kerry Logistics Network Limited. All rights reserved. Estimates of 2H 19 HK$’M 17% Investment Opportunities Revenue 60 5% – HK$ 200m

9. Slide 9: Cash, Debt & Equity

   CASH, DEBT & EQUITY CASH & DEBT SHAREHOLDERS EQUITY HK$ M HK$ M 9,700 23,903 8,773 21,214 10,000 24,000 7,500 6,053 18,000 4,306 Cash (4) © Kerry Logistics Network Limited. All rights reserved. 5,000 12,000 Debt (5) 2,500 6,000 - - 31 Dec 2018 30 Jun 2019 31 Dec 2018 30 Jun 2019 1% 1% 80% 19% 24% <

10. Slide 10: Proposed Spin-off of Kerry Express Thailand

    P R O P O S E D S P I N - O F F O F K E R RY E X P R E S S T H A I L A N D Waiver of Assured Entitlement was approved in the SGM on 31 May 2019 © Kerry Logistics Network Limited. All rights reserved. PN15 application was approved by Hong Kong Stock Exchange on 14 Jun 2019 Filing of IPO application t

11. Slide 11: Outlook

    OUTLOOK 1 Softening Asia Growth © Kerry Logistics Network Limited. All rights reserved. 2 Enriching Business Mix 3 Seizing E-commerce Growth 4 Pursuing Asset-lighter Model 2019 INTERIM RESULTS 10

12. Slide 12: Appendices

    2019 INTERIM RESULTS APPENDICES 11 © Kerry Logistics Network Limited. All rights reserved.

13. Slide 13: Appendix I: IL Segment Profit Analysis

    Appendix I: IL Segment Profit Analysis Segment Profit Change by Region Growth Momentum Maintained (in HK$’M, and comparable growth in %) 20 • Hong Kong Continuous growth as market penetration deepens. 22 1,162 • Mainland China © Kerry Logistics Network Limited. All rights reserved. (28) Starting to

14. Slide 14: Appendix II: IFF Segment Profit Analysis

    Appendix II: IFF Segment Profit Analysis Segment Profit Change by Region IFF Volume Swelled (in HK$’M, and comparable growth in %) • Hong Kong 22 Strong growth in Intra-Asia volume. 288 23 • Mainland China © Kerry Logistics Network Limited. All rights reserved. (16) (2) Growth was driven by Intra-As

15. Slide 15: Appendix III: Condensed Consolidated Interim Income Statement

    Appendix III: Condensed Consolidated Interim Income Statement For the six months ended 30 Jun Unaudited Unaudited 2019 2018 HK$’000 HK$’000 Turnover 19,810,329 17,461,227 Direct operating expenses (17,284,673) (15,163,182) Gross profit 2,525,656 2,298,045 © Kerry Logistics Network Limited. All right

16. Slide 16: Appendix IV: Condensed Consolidated Interim Statement of Financial Position

    Appendix IV: Condensed Consolidated Interim Statement of Financial Position ASSETS AND LIABILITIES Unaudited Audited As at 30 Jun 2019 As at 31 Dec 2018 Non-current assets HK$’000 HK$’000 Intangible assets 4,629,864 4,250,877 Investment properties 9,637,231 11,039,020 Leasehold land and land use rig

17. Slide 17: Appendix IV: Statement of Financial Position (cont'd)

    Appendix IV: Condensed Consolidated Interim Statement of Financial Position (cont’d) Unaudited Audited As at 30 Jun 2019 As at 31 Dec 2018 HK$’000 HK$’000 Non-current liabilities Loans from non-controlling interests 200,548 177,833 Long-term bank loans 5,176,242 4,569,564 Lease liabilities 2,119,606

18. Slide 18: Thank You

    THANK YOU © Kerry Logistics Network Limited. All rights reserved. VA L U E C R E AT I O N OPENNESS INTEGRITY COMMITMENT EXCELLENCE 2019 INTERIM RESULTS 17

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