Kln Logistics Group Limited · HKEX:636

Kln Logistics — Kerry Logistics Network — H1 2017 Earnings Presentation

16 slides from Kln Logistics's earnings presentation, August 2017

1. Slide 1: Interim Results Announcement 2017

   I N T E R I M R E S U LT S A N N O U N C E M E N T 2017 © Kerry Logistics Network Limited. All rights reserved. 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: 2017 Interim Results – Key Financials

   2 0 1 7 I N T E R I M R E S U LT S – K E Y F I N A N C I A L S +31% +11% +7% IL IFF 13,705 884 222 TURNOVER (HK$’M) SEGMENT PROFIT (HK$’M) SEGMENT PROFIT (HK$’M) 1,019 © Kerry Logistics Network Limited. All rights reserved. CORE OPERATING PROFIT +5% (HK$’M) +10% 576 CORE NET PROFIT (HK$’M) 788 INTER

4. Slide 4: Interim Results – Highlights

   2 0 1 7 I N T E R I M R E S U LT S – H I G H L I G H T S 13,705 Increased freight rates +31% TURNOVER Acquisition of Apex (HK$’M) © Kerry Logistics Network Limited. All rights reserved. Strong growth in Asia and steady growth in HK 1,019 Higher overheads in China and Taiwan +10% CORE OPERATING PROFI

5. Slide 5: Interim Results – Overview

   2 0 1 7 I N T E R I M R E S U LT S – O V E R V I E W HK$’M 2017 1H 2016 1H YoY Segment profit IL 884 799 + 11% - Logistics Operations 622 556 + 12% - Hong Kong Warehouse 262 243 + 8% IFF 222 208 + 7% Total segment profit 1,106 1,007 + 10% © Kerry Logistics Network Limited. All rights reserved. Unall

6. Slide 6: Turnover Analysis

   T U R N O V E R ( 1 ) A N A LY S I S TURNOVER(1) HK$ 13,705M + 31% YoY 52% 48% 2016 1H 10,461 LOP HKW 2017 1H 13,075 IFF 44% 56% © Kerry Logistics Network Limited. All rights reserved. 2017 1H Turnover(1) HK$ M YoY Turnover(1) by Geographical Area 2017 1H Turnover(1) HK$’M YoY IL 6,086 + 13% 2% 14%

7. Slide 7: Segment Profit Overview

   SEGMENT PROFIT OVERVIEW SEGMENT PROFIT HK$ 1,106M + 10% YoY 79% 21% 2016 1H 556 243 208 1,007 LOP HKW 2017 1H 622 262 222 1,106 IFF 80% 20% © Kerry Logistics Network Limited. All rights reserved. 2017 1H Segment Profit HK$ M YoY Segment Profit by Geographical Area 2017 1H Segment Profit HK$’M YoY IL

8. Slide 8: 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 HK$ 1,106M + 10% YoY 79% 21% 2016 1H 556 243 208 1,007 LOP HKW 2017 1H 622 262 222 1,106 IFF 80% 20% © Kerry Logistics Network Limited. All rights reserved. IL IFF 2017 1H Segment Profit HK$’M YoY 2017 1H Segment Profit HK$’M YoY 4% 3% Hong Kon

9. Slide 9: Cash, Debt & Equity

   CASH, DEBT & EQUITY CASH & DEBT SHAREHOLDERS’ EQUITY(6) HK$ M HK$ M 7,549 8,000 6,933 20,000 17,517 16,541 6% 6,000 15,000 3,335 3,169 Cash(3) 4,000 10,000 Debt(4) 2,000 5,000 - - © Kerry Logistics Network Limited. All rights reserved. 31 Dec 2016 30 Jun 2017 31 Dec 2016 30 Jun 2017 (3) Cash and ban

10. Slide 10: Network Expansion

    2 0 1 7 N E T W O R K E X PA N S I O N + Kazakhstan + Kyrgyzstan + Turkmenistan + Armenia + Ukraine countries & 51 territories + Uzbekistan + Tajikistan + Georgia + Azerbaijan + Italy (7) STRONGEST NETWORK IN ASIA NEW SALES OFFICES CIS COMPREHENSIVE EURASIAN LAND-BRIDGE IN EUROPE © Kerry Logistics N

11. Slide 11: Forging Ahead: Focused Growth Plans in Asia

    FORGING AHEAD 1 FOCUSED GROWTH PLANS IN ASIA © Kerry Logistics Network Limited. All rights reserved. 2 CROSS-BORDER E-COMMERCE OPPORTUNITIES 3 REGIONAL EXPRESS NETWORK 10

12. Slide 12: Q&A

    Q&A 2017 I N T E R I M R E S U LT S 11 © Kerry Logistics Network Limited. All rights reserved.

13. Slide 13: Appendix I – Condensed Consolidated Interim Income Statement

    Appendix I – Condensed Consolidated Interim Income Statement Six months ended 30 Jun Unaudited Unaudited 2017 2016 HK$’000 HK$’000 Turnover 13,705,335 10,460,893 Direct operating expenses (11,786,516) (8,753,449) Gross profit 1,918,819 1,707,444 Other income and net gains 83,823 90,402 Administrativ

14. Slide 14: Appendix II – Condensed Consolidated Interim Statement of Financial Position

    Appendix II – Condensed Consolidated Interim Statement of Financial Position ASSETS AND LIABILITIES Unaudited Audited As at 30 Jun 2017 As at 31 Dec 2016 Non-current assets HK$’000 HK$’000 Intangible assets 3,686,734 3,224,599 Investment properties 9,177,709 8,836,851 Leasehold land and land use rig

15. Slide 15: Appendix II – Statement of Financial Position (Cont'd)

    Appendix II – Condensed Consolidated Interim Statement of Financial Position (Cont’d) Unaudited Audited As at 30 Jun 2017 As at 31 Dec 2016 HK$’000 HK$’000 Non-current liabilities Loans from non-controlling interests 163,555 194,715 Long-term bank loans 4,464,281 5,483,632 Deferred taxation 645,913

16. Slide 16: Thank You

    THANK YOU August 2017 15 © Kerry Logistics Network Limited. All rights reserved.

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