Kln Logistics Group Limited · HKEX:636

Kln Logistics — Kerry Logistics Network — FY2020 Earnings Presentation

15 slides from Kln Logistics's earnings presentation, March 2021

1. Slide 1: Annual Results 2020: The Year Haunted by COVID-19

   ANNUAL RESULTS 2020 THE YEAR HAUNTED BY COVID-19 © Kerry Logistics Network Limited. All rights reserved. BACKGROUND RESOURCES & ASSETS WHAT WE OFFER SHOWCASES ACCREDITATIONS & AWARDS 2020 ANNUAL RESULTS 0636.HK 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) REVENUE(1) CORE OPERATING PROFIT CORE NET PROFIT 30% 20% 33% 53,361 3,320 1,828 © Kerry Logistics Network Limited. All rights reserved. SEGMENT PROFIT PROFIT ATTRIBUTABLE TO THE SHAREHOLDERS IL IFF 8% NORMALISED 6% STATUTORY 64% 58% NORMALISED 24% STATUTORY 2,583 1,017 2

4. Slide 4: Revenue Analysis

   R E V E N U E A N A LY S I S Revenue(1) Change by Region (in HK$’M, comparable growth in %) +59% +16% +50% 53,361 +57% +11% - IL 40% 20FY 60% IFF 41,139 +26% © Kerry Logistics Network Limited. All rights reserved. +30% HK$ M YoY IL 21,280 +9% 19FY Hong Hong Mainland Kong Mainland Hong China Taiwan T

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 Segment Profit Change by Region (in HK$’M, comparable growth in %) +34% +>200% -4% 3,600 +23% +3% 28% IFF +14% +26% 20FY © Kerry Logistics Network Limited. All rights reserved. +18% LOP 58% 3,057 14% HKW HK$ M YoY IL 2,583 +6% 19FY Hong Mainland Taiwan Asia(3

6. Slide 6: IL Segment Profit

   IL SEGMENT PROFIT 1% HONG KONG • LOP leveraged on the rise in demand for home-delivered daily necessities, electronic IL 28% 20% products and pharmaceutical logistics 39% • Warehouse business contracted due to the disposal of two warehouses in 2019 2,583m © Kerry Logistics Network Limited. All right

7. Slide 7: IFF Segment Profit

   IFF SEGMENT PROFIT 5% POWERHOUSE OF THE GROWTH 2% 21% • Captured opportunities from unprecedented volatile global freight market, in terms 25% IFF of rates, capacity and equipment availability • Growth mainly driven by a high global demand for pandemic-related products, and by 1,017m production and

8. Slide 8: Outlook

   OUTLOOK © Kerry Logistics Network Limited. All rights reserved. Pandemic Disruption Will Continue Global supply chain is not likely to see normality until after 2021 Demand for IFF will remain strong Vaccination Programmes Will Bring Recovery to IL Reopening of economies will boost domestic consumpt

9. Slide 9: KLN & SF Proposed Timeline

   KLN & SF PROPOSED TIMELINE Feb 10 - Special Deal Agreements By the long stop date (9 Aug) Q4 Signing & Announcement - Deal Announcement - Satisfy all pre-conditions - Tender acceptance of no less - Release of Circular • Disposal of the Hong Kong warehouses than 336,706,623 shares held • Disposal of

10. Slide 10: Q&A

    Q&A © Kerry Logistics Network Limited. All rights reserved. VA L U E C R E AT I O N OPENNESS INTEGRITY COMMITMENT EXCELLENCE 2020 ANNUAL RESULTS 9

11. Slide 11: Appendix I: Consolidated Income Statement

    Appendix I: Consolidated Income Statement For the year ended 31 Dec 2020 2019 HK$’000 HK$’000 Revenue 53,360,540 41,139,102 Direct operating expenses (47,187,538) (35,736,601) Gross profit 6,173,002 5,402,501 Other income and net gains 257,573 199,801 Administrative expenses (3,072,541) (2,841,723)

12. Slide 12: Appendix II: Consolidated Statement of Financial Position

    Appendix II: Consolidated Statement of Financial Position ASSETS AND LIABILITIES As at 31 Dec 2020 As at 31 Dec 2019 Non-current assets HK$’000 HK$’000 Intangible assets 4,771,897 4,764,904 Investment properties 11,503,215 10,308,139 Property, plant and equipment 11,693,226 11,343,539 Right-of-use a

13. Slide 13: Appendix II: Consolidated Statement of Financial Position (cont'd)

    Appendix II: Consolidated Statement of Financial Position (cont’d) As at 31 Dec 2020 As at 31 Dec 2019 HK$’000 HK$’000 Non-current liabilities Loans from non-controlling interests 233,654 223,805 Long-term bank loans 5,069,439 6,173,790 Lease liabilities 3,178,122 2,545,880 Deferred taxation 744,467

14. Slide 14: Appendix III: Cash, Debt & Equity

    Appendix III: Cash, Debt & Equity CASH & DEBT SHAREHOLDERS EQUITY HK$ M HK$ M 27,487 9,232 24,176 10,000 8,355 8,471 24,000 7,500 5,825 Cash (5) 16,000 © Kerry Logistics Network Limited. All rights reserved. 5,000 Debt (6) 8,000 2,500 - - 31 Dec 2019 31 Dec 2020 31 Dec 2019 31 Dec 2020 Multiple 60%

15. Slide 15: Appendix V: Background of KLN & SF

    Appendix V: Background of KLN & SF Creating the leading Asia-based global logistics platform (8) • Strong network in Mainland China with a direct management model • Global presence across 59 countries and territories with a solid • Comprehensive logistics service network of “aviation +ground + Wider

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