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Kln Logistics Group Limited · HKEX:636

Kln Logistics — Kerry Logistics Network — FY2019 Earnings Presentation

18 slides from Kln Logistics's earnings presentation, 2020

  1. Slide 1: Resilience in Times of Adversity: Annual Results 2019

    RESILIENCE IN TIMES OF ADVERSITY A N N U A L R E S U LT S 2 0 1 9 © Kerry Logistics Network Limited. All rights reserved. 0636.HK 2019 ANNUAL 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: © Kerry Logistics Network Limited. All rights reserved.

    2019 ANNUAL RESULTS 2 © Kerry Logistics Network Limited. All rights reserved.

  4. Slide 4: Financial Highlights (HK$'M)

    FINANCIAL HIGHLIGHTS (HK$’M) REVENUE(1) SEGMENT PROFIT SEGMENT PROFIT IL IFF 8% 15% 13% 41,139 2,435 622 © Kerry Logistics Network Limited. All rights reserved. CORE OPERATING PROFIT CORE NET PROFIT ADJUSTED CORE NET PROFIT (w/o IFRS16) 17% 4% 8% 2,765 1,374 1,429 PROFIT ATTRIBUTABLE TO SHAREHOLDERS

  5. Slide 5: Revenue Analysis

    R E V E N U E A N A LY S I S Revenue Change by Region (in HK$’M, comparable growth in %) LOP +20% -14% +9% +3% 41,139 47% 2019 © Kerry Logistics Network Limited. All rights reserved. +8% 52% +10% +8% IFF 1% +10% HKW 38,139 HK$’ M YoY IL 19,512 +16% - Logistics Operations 19,244 + 16% 2018 Hong Kong

  6. Slide 6: 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 62% (in HK$’M, comparable growth in %) 2019 +43% 3,057 +8% +35% +20% © Kerry Logistics Network Limited. All rights reserved. +15% +18% +23% 18% 20% HKW IFF +6% 2,660 HK$’ M YoY IL 2,435 +15% - Logistics Operations 1,894 + 2

  7. Slide 7: IFRS16 Impact

    I F R S 1 6 I M PA C T PnL Impact B/S Impact IFRS16 Results w/o Non-current Assets HK$'M Reported Impact IFRS16 As of 31.12.2018 28,149 HK$'M YoY% HK$'M HK$'M YoY% © Kerry Logistics Network Limited. All rights reserved. IFRS16 Impact 2,506 Segment Profit 3,057 15% 20 3,037 14% As of 1.1.2019 30,655

  8. Slide 8: IL Segment Profit

    IL SEGMENT PROFIT 2% • With the resilient business model, recorded growth from expanding IL 29% 38% 16% 22% e-commerce exposure and new customer wins in Food & Beverage, Pharmaceutical & General Services divisions 2,435m © Kerry Logistics Network Limited. All rights reserved. +15% • Enhanced the eff

  9. Slide 9: IFF Segment Profit

    IFF SEGMENT PROFIT 3% 4% 8% Network Expansion • Our global network coverage extends to 55 countries and territories 31% IFF 33% • ASAV in Turkey joined with strong airfreight capabilities for our EMEA connections 622m © Kerry Logistics Network Limited. All rights reserved. +13% Project Logistics & R

  10. Slide 10: Strategic Projects Updates

    S T R AT E G I C P R O J E C T S U P D AT E S Acquisition of Remaining 49% Proposed Spin-off in Apex US of Kerry Express Thailand Acquired by the Group in 2016 Feb 2020 Submitted IPO application to Securities and Exchange Commission, Thailand. © Kerry Logistics Network Limited. All rights reserved.

  11. Slide 11: GFA under Management & Capex

    G FA U N D E R M A N A G E M E N T & C A P E X GFA 75M ft2 CAPEX HK$ 2,637M GFA under Management CAPEX HK$ M 2018 35 7 18 60M ft2 Leased facilities Owned investment properties 4,000 © Kerry Logistics Network Limited. All rights reserved. 2019 48 8 19 75M ft2 Owned self-used properties 2,992 2,971 3,

  12. Slide 12: Cash, Debt & Equity

    CASH, DEBT & EQUITY CASH & DEBT SHAREHOLDERS EQUITY HK$ M HK$ M 24,176 9,700 8,355 21,214 10,000 24,000 7,500 5,825 18,000 4,306 Cash (5) © Kerry Logistics Network Limited. All rights reserved. 5,000 12,000 Debt (6) 2,500 6,000 - - 31 Dec 2018 31 Dec 2019 31 Dec 2018 31 Dec 2019 1% 1% 60% 45.7% 24%

  13. Slide 13: Outlook

    OUTLOOK Survival needs to Aftermath Chaos Domestic Global © Kerry Logistics Network Limited. All rights reserved. Essential & Medical Uncertainty for non-essential consumer goods Domestic demand in Hong Kong, Solid diversified capabilities to help Taiwan, Thailand and Asia reestablish global supply

  14. Slide 14: Appendices

    2019 ANNUAL RESULTS APPENDICES 13 © Kerry Logistics Network Limited. All rights reserved.

  15. Slide 15: Appendix I: Consolidated Income Statement

    Appendix I: Consolidated Income Statement For the year ended 31 Dec 2019 2018 HK$’000 HK$’000 Revenue 41,139,102 38,138,528 Direct operating expenses (35,736,601) (33,382,961) Gross profit 5,402,501 4,755,567 Other income and net gains 199,801 176,462 © Kerry Logistics Network Limited. All rights re

  16. Slide 16: Appendix II: Consolidated Statement of Financial Position

    Appendix II: Consolidated Statement of Financial Position ASSETS AND LIABILITIES As at 31 Dec 2019 As at 31 Dec 2018 Non-current assets HK$’000 HK$’000 Intangible assets 4,764,904 4,250,877 Investment properties 10,308,139 11,039,020 Leasehold land and land use rights – 590,450 Property, plant and e

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

    Appendix II: Consolidated Statement of Financial Position (cont’d) As at 31 Dec 2019 As at 31 Dec 2018 HK$’000 HK$’000 Non-current liabilities Loans from non-controlling interests 223,805 177,833 Long-term bank loans 6,173,790 4,569,564 Lease liabilities 2,545,880 - Deferred taxation © Kerry Logisti

  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 ANNUAL RESULTS 17

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