Slide 1: GDEX Berhad 1Q22 Investor Presentation
GDEX BERHAD 1Q22 Investor Presentation 26 May 2022 IR Adviser
Slide 2: GDEX 2.0 A New Era of Growth
Building a regional tech-based delivery services ecosystem… cultural excellence at the core Growth Straetgy - M&A Startups - Strategic Investments - Partnerships - Building Ecocystem GDEX 2.0 A New Era of Growth 2
Slide 3: GDEX 2.0 strategy to transform Group into Southeast Asia's preferred logistics ecosystem
Converging forces and rapid technological disruption shaping businesses of the future.. GDEX 2.0 strategy to transform Group into Southeast Asia’s preferred logistics ecosystem GDEX 2.0 Last Mile Convergence Ecosystem • Transformation towards Infrastructure & Logistics Services Technology Services p
Slide 4: Strong core competencies gained over the years to become leader in last-mile deliveries
Strong core competencies gained over the years to become leader in last-mile deliveries with technology focus… GDEX skillset transferable to converging sectors in era of digital disruption Process Engineering Proven capabilities to streamline operating processes for scale, growth and profitability E
Slide 5: Accelerating growth via multi-pronged strategy
Accelerating growth via multi-pronged strategy… ranging from M&As and collaboration to developing in-house innovations Mergers Strategic & Acquisitions Startups Investments Partnerships Intrapreneurship • To accelerate GDEX 2.0 transformation via multi-pronged strategy • Developing Competitive Advan
Slide 6: Financial Highlights
Building a regional tech-based delivery services ecosystem… cultural excellence at the core Growth Straetgy - M&A Startups - Strategic Investments - Partnerships - Building Ecocystem Financial Highlights 6
Slide 7: 1Q22 group revenue lower due to highly competitive landscape in Malaysia
1Q22 group revenue lower due to highly competitive landscape in Malaysia… Vietnam operations recorded double-digit revenue growth on improving economic activity Group Revenue RM (mil) • 1Q22 revenue declined 13.2% YoY to RM91.9 22.9% 21.0% 21.1% million due mainly to Malaysia operations 19.4% 17.1%
Slide 8: Reported 1Q22 loss due to higher competition and labour costs
Reported 1Q22 loss due to higher competition and labour costs… partially mitigated by improved performance in Vietnam and Indonesia operations Group PATMI RM (mil) • Group recorded loss after tax and minority interest of RM1.9 million in 1Q22 14.7% 10.3% • Due to predatory pricing and higher 8.1% 6.
Slide 9: Express deliveries segment impacted in 1Q22; logistics services demand remained firm
Express deliveries segment impacted in 1Q22… however logistics services demand remained firm 16.8% Express Deliveries EBIT Revenue from 9.0% 7.1% 8.7% 5.8% Jan-Mar 21 5.6 Express • Express Delivery Jan-Mar 22 -4.0% -3.3 Delivery • 1Q22 revenue RM (mil) (14.6%) –14.6% YoY as a result 96.5 82.4 of inc
Slide 10: Vietnam operations registered 21.8% growth in revenue contribution in 1Q22
Vietnam operations registered 21.8% growth in revenue contribution in 1Q22 on recovering economy… FY2020* 18m FP21^ Jan-Mar 2021 Jan-Mar 2022 Revenue by 0.5% 0.5% 0.5% 0.4% Country RM (mil) 7.6% 14.1% 11.7% 16.4% 85.4% 87.8% 83.2% 91.9% Malaysia Vietnam Singapore Revenue by Country FY18 FY19 FY20* 1
Slide 11: Robust balance sheet with net cash position
Robust balance sheet with net cash position… well-positioned for organic and M&A growth strategies 41.2 40.2 30.5 449.7 303.3 479.2 279.7 496.4 267.7 496.3 274.2 494.8 264.4 18.9 16.0 FY18 FY19 FY20* 31.12.21 31.03.22 Shareholders' Equity Gross Borrowings Cash & Equivalents FY18 FY19 FY20* As at 31.
Slide 12: Recent Developments
Building a regional tech-based delivery services ecosystem… cultural excellence at the core Growth Straetgy - M&A Startups - Strategic Investments - Partnerships - Building Ecocystem Recent Developments 12
Slide 13: Actively engaging local communities to promote e-commerce and entrepreneurship
Actively engaging local communities to promote e-commerce and entrepreneurship through adoption of Group’s innovative digital solutions and services… • Conducted introductory course on Beeline social commerce platform at Digital Economy Centre in Jeli, Kelantan in March 2022 • Provided training and
Slide 14: Launching more solutions and services to cater to latest needs
Launching more solutions and services to cater to latest needs of businesses and consumers… • Launched GDEX COOL – Frozen and Chilled Delivery Service in May 2022 • Providing store-to-store and direct-to-home deliveries of fresh and climate sensitive goods • Ability to track latest status and journe
Slide 15: Collaborating with prominent academic institution to nurture industry-ready talent
Collaborating with prominent academic institution to nurture industry-ready skilled talent… potential to unlock research & development and commercial opportunities • Entered MOU with University Tunku Abdul Rahman in March 2022 • Joint collaboration towards unlocking opportunities in areas of: • Rese
Slide 16: Implementing green energy solutions
Implementing green energy solutions… sustainability a key facet to long term goals • Implemented solar panel project in April 2022 • Completed installation of rooftop solar PV system at Petaling Jaya headquarters • Estimated payback period: 3 years & 2 months SOLAR ENERGY ADOPTION 16
Slide 17: Adopting sustainable policies and practices in line with global sustainability agenda
Adopting sustainable policies and practices in line with global sustainability agenda… 2016 2019 2020 2021 2022 • Joined • Mangrove • Sustainability • Launched • Installation of FTSE4Good planting journey electric rooftop solar Bursa Malaysia program started motorcycles panels Index (completed April
Slide 18: Investor Relations Contacts
Investor Relations Contacts: Toh Kar Inn, Advisor, Corporate Strategy corpcomm@gdexpress.com Tay Tze Yi, IR Consultant tayty@aquilas.com.my IR Adviser
Slide 19: Appendix
Building a regional tech-based delivery services ecosystem… cultural excellence at the core Growth Straetgy - M&A Startups - Strategic Investments - Partnerships - Building Ecocystem APPENDIX 19
Slide 20: Leading home-grown express delivery services provider with growing Southeast Asia presence
Leading home-grown express delivery services provider with growing Southeast Asia presence… Established in 1997, GDEX Berhad is a leading domestic and international express delivery services provider in Malaysia. GDEX also has increasing presence in Southeast Asia, with operations in Singapore, Indo
Slide 21: GDEX gaining prominence as trusted regional logistics and express services provider
GDEX gaining prominence as trusted regional logistics and express services provider… aiming to further expand Group’s Southeast Asian network Malaysia Singapore Vietnam (50% stake in Netco) Extensive network of 1,300 locations Maintain a presence to service our Prominent brand name trusted by leadin
Slide 22: Proven track record of rapid organic growth and integration of strategic acquisitions
Proven track record of rapid organic growth and integration of strategic acquisitions… Over 10 years of continuous revenue growth Key milestones/strategic acquisitions 2020 10-YR CAGR: 16.6% 2019 Revenue Trend 430.5 RM (mil) 2016 364.0 2011 Entered B2C market & • Acquired • New developed tech infra
Slide 23: Technology infrastructure the backbone of growth and efficiency
Technology infrastructure the backbone of growth and efficiency… robust platforms enable rapid rollout and scalability of new products and solutions DIGITAL PLATFORMS CONVENIENCE AT FINGERTIPS myGDEX Retail Cash Portal myGDEX Prime Account Portal Mobile Apps for Customers (for both iOS and Android)