S.f. Holding Co., Ltd. Class A · SZSE:002352
S.f. Holding Co., Ltd. Class A — Investor Presentation (2023)
29 slides from S.f. Holding Co., Ltd. Class A's investor presentation, 2023
Slide 1: 2023 Investor Presentation
Ticker 002352.SZ S.F. Holding 2023 Investor Presentation 1
Slide 2: Disclaimer
Disclaimer This document is prepared by S.F. Holding Co., Ltd. (顺丰控股股份有限公司 ) the "Company"). By reading this document, you agree to be bound by the following limitations: • Unauthorized duplication, reproduction, transmission or redistribution of this document or information contained herein in any
Slide 3: Agenda – 2023 Investor Presentation
Agenda – 2023 Investor Presentation Number Section 1 Business Overview 2 Financial Overview 3 Q&A Business Overview Financial Overview Q&A 3
Slide 4: 2023 Keywords
2023 Keywords Capability & Deepen Integration Asia Focus & Profitability & Strive for Global Enhancement Transformation Connectivity Time-definite Express, Economy Express, Multi-Network Integration, Ezhou Air Cargo Hub, Freight, Intra-city Delivery Operational Reform Supply Chain and International
Slide 5: Time-Definite: Remained Resilient
Time-Definite: Remained Resilient Outstanding Business Resilience Significant Growth of Robust Growth from a High Base Consumer Segment as the Key Driver Return Parcel Volume Time-definite parcel % of time-definite parcel volume volume growth % Platform A Industrial and Platform B others Platform C
Slide 6: Economy: Improved Volume and Profitability with Differentiated Positioning
Economy: Improved Volume and Profitability with Differentiated Positioning Both Parcel Volume and Profit Increased Steady Growth of Parcel Volume Profitability Improvement Unit: 100mm Volume and growth rate of e-commerce Unit: RMB E-commerce standard gross profit per parcel standard express1 E-comme
Slide 7: Freight: Volume growth Driven by Quality, Profitability Driven by Cost-Efficiency
Freight: Volume growth Driven by Quality, Profitability Driven by Cost-Efficiency Expanding Consumption Average daily Leading Timeliness volume (10k tons) 2 Scenarios High Service Quality +*% Volume Growth No. 1 in NPS1 Scaling up Manufacturing Scenarios 2022 2023 Sortation Transportation Last-mile
Slide 8: Intra-City: Turned Profitable for the First Time
Intra-City: Turned Profitable for the First Time Non-F&B Growth in 2C Business 21% Scenario1 Growth 34%+ 3-year CAGR 147% Lower-tier Cities & Counties3 2 Merchants / Individuals Riders • Deepen cooperation by expanding target merchants’ cohort through Intra-city • Optimize delivery routes and rider
Slide 9: Multi-Network Integration Led to Cost Reduction
Multi-Network Integration Led to Cost Reduction Transportation Sortation Last-mile Integration Integration Integration Continuous Cost Reduction 2 Integrated Capacity Long-haul Integration Flexible Operation Service Outlet Improvement Four- Multi- • Loading rate of line-haul vehicles • The fulfillme
Slide 10: Enhanced Efficiency through Operational Excellence
Enhanced Efficiency through Operational Excellence Transpor- Optimize Operations Sortation Enhance Efficiency Last-mile Upgrade Experience tation Enhance Sortation Centers Capabilities Direct Sortation and Delivery Optimize Procurement Adopt Standardized Strategy Pricing for Short-haul Improve Sorti
Slide 11: Ezhou Air Cargo Hub Commencement
Ezhou Air Cargo Hub Commencement Operational Progress Volume Growth Phase 1.0 Capability Enhancement Launch of New Flight Routes1 Timeliness Coverage Stability Service 45 10 ~90 Improved on-time ratio of Expanded next-morning delivery Improved flight on-time ratio 3 Decreased complaint rate for 2 2
Slide 12: Capture Growth Momentum, Focus on Asia, and Expand Globally
Capture Growth Momentum, Focus on Asia, and Expand Globally Global US$10.8tn1 Industry Trends Traditional Trade’s Chinese Manufacturing Global Enterprises’ Asia logistics market has Transition to Enterprises’ Overseas Supply Chain Cross-border Asia the fastest growth rate 2 Expansion Restructuring A
Slide 13: International Express: Reinforced Competitive Strengths
International Express: Reinforced Competitive Strengths Our Advantages vs Global Top 3 vs Domestic Peers Asia Domestic Market Relative Critical Logistics Extensive Global Integrated Cost Advantage Resources Customer Base Service Capability Capability Enhancement Market Share Gain Robust Revenue Grow
Slide 14: International Supply Chain Case Study: New Energy Lithium Battery Industry
International Supply Chain Case Study: Multi-Scenario Logistics Services for New Energy Lithium Battery Industry Safety, timeliness Information-oriented guarantee logistics Global Fulfillment of network resources hazardous goods Integration & Synergies Onshore Spare parts transportation Warehouse of
Slide 15: Differentiated Strengths for Cross-border E-commerce
Differentiated Strengths for Cross-border E-commerce Our Differentiated Strengths End-to-end Third-party Global vs. Industry Players All-Cargo Aircraft Last-Mile Delivery Services Independence Network SF Air cargo companies E-commerce platform backed logistics Freight-forwardin
Slide 16: 2024 Business Focus: Strive for Sustainable and Healthy Growth
2024 Business Focus Strive for Sustainable and Healthy Growth Strengthen Customer Loyalty Achieve Healthy & Sustainable Maintain Robust Profitability Business Growth Product Competitiveness ·Integration · Warmth ·Speed ·Depth ·Breadth Healthy Structure ·Lean Operation Overseas Expansion Customer Sat
Slide 17: Agenda – 2023 Investor Presentation
Agenda – 2023 Investor Presentation # Section 1 Business Overview 2 Financial Overview 3 Q&A Business Overview Financial Overview Q&A 17
Slide 18: Sustainable Profitablity Growth
Sustainable Profitablity Growth Steady Growth of Net Profit and Net Margin Attributable to the 2023 Key Metrics Parent Company Volume1 YoY Growth YoY Growth (excl. Fengwang) Net profit attributable to the YoY Growth Net margin attributable to the parent company 11.97bn parcels 7.5% 16.2% parent comp
Slide 19: Revenue and Volume Growth in Express Logistics
Revenue and Volume Growth in Express Logistics Robust Growth of Express Logistics Revenue Increasing Parcel Volume from a High Base Growth1 23.4% 37.3% 34.5% 29.1% -3.4% Growth2 25.8% 68.5% 29.7% 5.5% 7.5% Express Logistics Express Logistics Volume Revenue – excl. Fengwang – excl. Fengwang 3500Expre
Slide 20: High-Quality Business Growth with Balanced Revenue Mix
High-Quality Business Growth with Balanced Revenue Mix 2.0% 2.8% Time-definite express Economy express 23.2% 32.8% Freight 39.5% 44.7% Cold chain & pharmaceuticals 2022 2023 2.8% Intra-city on-demand delivery 4.0% Supply chain and international 12.8% Unit: RMB100 million 2.4% 10.4% 9.6% 9.7% Other n
Slide 21: Gross Profit and Margin Improved by Lean Operations
Gross Profit and Margin Improved by Lean Operations 800.00 14.5% 700.00 Annual Gross Profit and Gross Margin Unit: RMB100 million 14.0% Drivers for Improvement 600.00 13.5% 12.8% 13.0% Committed to sustainable and healthy development and strive for high-quality 500.00 12.5% business growth 12.5% 400
Slide 22: Decreased Transportation Costs as % of Revenue
Decreased Transportation Costs as % of Revenue Labor Costs and Transportation Costs and Other Operating Costs and as % of Revenue Unit: RMB100 million as % of Revenue Unit: RMB100 million as % of Revenue Unit: RMB100 million incl. Kerry 2,000.00 50.00% excl. Kerry ↑1.6ppts 1800 40.8% 45.00% 1000 1,8
Slide 23: Robust Growth of Net Profit and Margin Attributable to the Parent Company
Robust Growth of Net Profit and Margin Attributable to the Parent Company General and Administrative Expenses Selling and Distribution Expenses Net Profit and Margin Attributable to the Parent Company as % of Revenue as % of Revenue Unit: RMB100 million 3.2% 3.50% 140 Net120 profit attributable to 3
Slide 24: Optimized Capital Structure, Decreased Capital Expenditure as % of Revenue
Optimized Capital Structure, Decreased Capital Expenditure as % of Revenue Unit: RMB100 Unit: RMB100 Unit: RMB100 Capital Structure million Net Cash Flow million Capital Expenditure million Sorting center & warehouse Equity 71 Aircraft 60.0% investment Capital 54.1% 54.7% expenditure Vehicle 3000 53
Slide 25: Embrace ESG and Build Green Logistics
Embrace ESG and Build Green Logistics Significantly Improved Carbon Efficiency and Carbon Target with Continued Reduction of Carbon Footprint1 Year 2021 as the base year2 Carbon Efficiency Carbon Footprint per Parcel Carbon (Tons of CO2 equivalent /million of revenue) (Grams of CO2 equivlant /parcel
Slide 26: Industry Leading ESG Ratings
Industry Leading ESG Ratings SF ESG Practices are Widely Recognized by Domestic and International Rating Agencies and Media, and Have Received Multiple Awards Two years consecutively (2022-2023) 2023 Fortune China ESG Impact List (2 years consecutively) MSCI rated BBB No.1 in China Express & Logisti
Slide 27: Enhanced Shareholder Returns through Higher Dividends and Cancellation of Repurchased Stock
Enhanced Shareholder Returns through Higher Dividends and Cancellation of Repurchased Stock 2022 2023 2024-2028 Dividend Payout 20% Since 2017 +15ppts 35% “Future Five-Year (2024-2028) Shareholder Return Plan” Ratio1 “The cash dividend ratio Up To Dividend RMB 0.25 +140% RMB 0.60 from 2024 to 2028 w
Slide 28: 2024 Outlook
2024 Outlook Shifted focus from high-speed growth to high-quality Complex, ever-changing global environment External Market Environment growth in China express logistics industry with structural development opportunities Domestic Market Direction of Investment Strengthen Competitive Moats Service Co
Slide 29: Create a Digital Ecosystem, Empower Global Customers
Create a Digital Ecosystem, Empower Global Customers Foster Shared Growth, Celebrate Better Life Building a digital smart supply chain ecosystem, laying the foundation for reshaping global business civilization and production, enabling global enterprises to achieve excellence! Providing consumers wi