Slide 1: Interim Results 2023
INTERIM R E S U LT S 2023 0636.HK
Slide 2: Disclaimer
DISCLAIMER 1 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 purc
Slide 3: Financial Highlights
2 FINANCIAL HIGHLIGHTS (in HK$’M) REVENUE CORE OPERATING PROFIT CORE NET PROFIT 25,315 568 368 © Kerry Logistics Network Limited. All rights reserved. -47% -84% -85% SEGMENT PROFIT IL E&E IFF 718 (505) 621 +0.2% N/A -82% PROFIT ATTRIBUTABLE INTERIM DIVIDEND GEARING TO THE SHAREHOLDERS 368* For conti
Slide 4: Core Net Profit & Segment Profit
3 CORE NET PROFIT & SEGMENT PROFIT CORE NET PROFIT SEGMENT PROFIT (in HK#039;M) 368 834 © Kerry Logistics Network Limited. All rights reserved. 3,722 2,372 International Freight Forwarding Integrated Logistics 2,185 E-commerce & Express 1,212 3,398 209 834 959 1,038 531 1,416 IFF CAGR Growth 1H19 – 1H2
Slide 5: Segment Profit
4 SEGMENT PROFIT International Freight Forwarding Integrated Logistics E-commerce & Express (in HK#039;M) IL E&E IFF Consolidated 1H22 1H23 YoY 1H22 1H23 YoY 1H22 1H23 YoY 1H22 1H23 YoY © Kerry Logistics Network Limited. All rights reserved. (in HK#039;M) 3,722 Hong Kong 393 286 -27% 12 2 -82% 178 9 -95%
Slide 6: Segment Profit Integrated Logistics
5 SEGMENT PROFIT INTEGRATED LOGISTICS Compare to YoY Comparison Pre-COVID Period (in HK#039;M) © Kerry Logistics Network Limited. All rights reserved. 1H22 1H23 YoY 1H19 CAGR (restated) By Region IL Business Remained Stable in 1H23 Hong Kong 393 286 -27% 183 +12% Oceania • Economic activities in Asia h
Slide 7: Segment Profit International Freight Forwarding
6 SEGMENT PROFIT INTERNATIONAL FREIGHT FORWARDING Compare to YoY Comparison Pre-COVID Period (in HK#039;M) © Kerry Logistics Network Limited. All rights reserved. 1H22 1H23 YoY 1H19 CAGR Weak Global Demand + Plunged Freight Rate By Region Profit Decline Hong Kong 178 9 -95% 29 -25% Oceania Hong Kong
Slide 8: Segment Profit E-commerce & Express
7 SEGMENT PROFIT E-COMMERCE & EXPRESS Compare to YoY Comparison Pre-COVID Period © Kerry Logistics Network Limited. All rights reserved. (in HK#039;M) 1H22 1H23 YoY 1H19 CAGR (restated) Hong Kong 12 2 -82% 16 -41% E&E Continued to Register a Segment Loss (1) • Kerry Express Thailand is expected to stab
Slide 9: Cash, Debt & Equity
8 CASH, DEBT & EQUITY (in HK#039;M) As at 30 Jun 2023 18,429 18,537 31 Dec 2022 30 Jun 2023 © Kerry Logistics Network Limited. All rights reserved. As at 31 Dec 2022 (5) Debt Ratios EBITDA / Bank Interest 23.4x 9.6x 9,240 8,897 Debt / EBITDA 1.27x 1.99x 7,760 8,242 Gearing Ratio Gross 48.3% 44.5% Net N
Slide 10: Outlook
9 9 OUTLOOK Extreme circumstances are gradually fading in global logistics activities • Signs of improvement in both freight rates and volumes in key markets © Kerry Logistics Network Limited. All rights reserved. Expect a sustainable CAGR growth in IL & IFF using pre-pandemic 2019 as the base • Sta
Slide 11: Thank You
10 COMMITMENT TO ENHANCING ENVIRONMENTAL AND SOCIAL SUSTAINABILITY PERFORMANCE © Kerry Logistics Network Limited. All rights reserved. THANK YOU Following the release of the first ISSB standards in Jun 2023, KLN is undergoing a feasibility study to strengthen governance practices and to align sustai
Slide 12: Appendix I: Revenue Analysis
11 Appendix I : Revenue Analysis E-commerce & Express International Freight Forwarding Compare to Integrated Logistics YoY Comparison Pre-COVID Period (in HK#039;M) © Kerry Logistics Network Limited. All rights reserved. (in HK#039;M) YoY CAGR 1H22 1H23 1H19 48,034 3,057 By Region Hong Kong 4,616 3,318 -2
Slide 13: Appendix II: Condensed Consolidated Interim Income Statement
Appendix II : Condensed Consolidated Interim Income Statement 12 For the six months ended 30 Jun Unaudited Unaudited 2023 2022 HK$’000 HK$’000 Revenue 25,314,623 48,034,324 Direct operating expenses (23,185,834) (42,746,293) Gross profit 2,128,789 5,288,031 © Kerry Logistics Network Limited. All rig
Slide 14: Appendix III: Condensed Consolidated Interim Statement of Financial Position
Appendix III : Condensed Consolidated Interim Statement of Financial Position 13 Unaudited Audited As at 30 Jun 2023 As at 31 Dec 2022 HK$’000 HK$’000 ASSETS AND LIABILITIES Non-current assets Intangible assets 5,893,965 5,855,895 Investment properties 1,782,704 1,819,589 Property, plant and equipme
Slide 15: Appendix III: Statement of Financial Position (Cont'd)
Appendix III : Condensed Consolidated Interim Statement of Financial Position (Cont’d) 14 Unaudited Audited As at 30 Jun 2023 As at 31 Dec 2022 HK$’000 HK$’000 Non-current liabilities Loans from non-controlling interests 237,875 209,144 © Kerry Logistics Network Limited. All rights reserved. Long-te