J&t Global Express Limited · HKEX:1519
J&t Global Express — J&T Global Express Ltd B — FY2023 Earnings Presentation
45 slides from J&t Global Express's earnings presentation, Mar 22, 2024
Slide 1: 2023 Results Presentation
2023 Results Presentation March 2024
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation materials and ancillary materials, you agree to be bound by the following limitations:: • The information in this presentation has been prepared by representatives of J&T Global Express Limited (the “
Slide 3: Table of Contents
Table of Contents 1 Business Overview 4 2 Financial Overview 13 3 Core Competence and Growth Strategies 23 4 Appendix 37 3
Slide 4: Business Overview
a | QT exoress —Express Your Online Business — Section 1 Business Overview
Slide 5: Global Footprint
Global Footprint Express delivery service provider covering 13 countries with the leading position in Southeast Asia(1), a competitive position in China and an expanding footprint in Latin America and the Middle East Full network coverage across the 237 seven Southeast Asia sorting centers(3) countr
Slide 6: Well Positioned to Capture Growth Opportunities in Southeast Asia, China and New Markets
Well Positioned to Capture the Growth Opportunities in Southeast Asia, China and New Markets Growth opportunities arising from shift to e-commerce, demand for express delivery services from Southeast Asia, China and New Markets Southeast Asia China New Markets In USD Bn In USD Bn In USD Bn E-commerc
Slide 7: Business Overview
Business Overview Parcel Volume Company and Industry Growth Rate Market Share(1) （bn） % + 2.9% 2 8. 9 2023 Y oY 3.2 2.5 28.9% 14.4% SEA ＞ Industry 22.5% 25.4% Company Growth Rate Growth Rate （bn） 2023 6% + 0.7% Y 27. Yo 15.3 China 12.0 27.6% 19.4% ＞ Industry Company Growth Rate Growth Rate 10.9% 11.
Slide 8: Business Overview: Average Daily Parcel Volume
Business Overview Average Dailye Parcel Volume (mm) 2022 2023 • Strong growth driven by capitalizing on the rapid growth of the e-commerce market in SEA 10.2 9.4 • An important e-commerce customer contributed SEA 8.5 less than expected parcel volume in Q4 due to 7.3 government policy adjustments, bu
Slide 9: Ranked First in SEA for 4 Consecutive Years
Ranked First in SEA for 4 Consecutive Years(1) • Ranked first in the fast-growing Southeast Asian express delivery market • Market share of 25.4% in 2023(1), an increase of 2.9 percentage points from 2022 Parcel Volume Growth and Its Ranked First in SEA for Driving Factors Leading Position in SEA 4
Slide 10: Consolidated Competitive Position in China and Continuously Gain Market Share
Consolidated Competitive Position in China and Continuously gain Market Share • 15.3 billion parcels delivered in 2023, a YoY increase of 27.6% • Market share continued to increase, reaching 11.6%(1) in 2023, an increase of 0.7 percentage points from 2022 Parcel Volume Growth and Its Became a Top 6
Slide 11: Improved Service Quality, Diversified Products and Optimized Customer Structure in China
Improved Service Quality, Diversified Products and Optimized Customer Structure in China • In 2023, the Company's complaint rate(1), complaint handling comprehensive indicator (2) and other service quality indicators remained as best-in-class in China • Continuously penetrating the lower-tier market
Slide 12: Rapid Development in New Markets
Rapid Development in New Markets • 230 million parcels delivered in 2023, a YoY increase of 369.0%, market share reaching 6.0%(1) • Empowering rapid development of e-commerce partners in new markets Parcel Volume Growth and Its Rapid Increase in Both Parcel Growing Together with Partners Momentum Vo
Slide 13: Financial Overview
Section 2 Financial Overview
Slide 14: Our Financial Highlights
Our Financial Highlights Higher-than- Achieved Positive Resilient Margin Rapid Growth In New Proven Industry Adjusted EBITDA in in SEA Markets Path to Profitability Growth in Volume China 清晰的盈利路径 SEA US$ 0.34 US$ 0.34 (3.7%) 5.3% 28.9% 14.4% ~14% 2022 2023 2022 2023 US$81.8mm US$ 0.3bn Company Indus
Slide 15: Parcel Volume Growth Drives Revenue Growth
Parcel Volume Growth Drives Revenue Growth Segment Revenue Key Drivers of Performance Total Revenue (US$ mm) (US$ mm % 10.6 • Gain more parcel volume and market % YoY % SEA .8 15.2 share through flexible pricing YoY 21 8,849.3 SEA 2,633.4 • Capture the rapid growth of the e- China Y 2,381.7 commerce
Slide 16: Healthy Unit Economics in SEA
Healthy Unit Economics in SEA SEA Unit Economics Key Components of SEA Unit Cost (US$ per parcel) (US$ per parcel) 0.95 0.93 0.43 0.43 0.81 0.40 0.41 0.77 0.76 0.73 0.67 0.63 0.22 0.20 0.17 0.15 0.19 0.20 0.14 0.14 0.09 0.09 0.09 0.08 0.13 0.12 0.13 0.11 2022 2023 2022H2 2023H2 2022 2023 2022H2 2023
Slide 17: Unit Economics in China Turned Positive
Unit Economics in China Turned Positive China Unit Economics Key Components of China Unit Cost (US$ per parcel) （US$ per parcel） 0.40 0.39 0.34 0.34 0.20 0.20 0.21 0.19 0.34 0.34 0.33 0.33 0.002 0.009 (0.03) 0.09 0.09 0.07 0.07 0.004 (0.08) 0.009 (0.06) (0.06) 0.08 0.07 0.06 0.05 2022 2023 2022H2 20
Slide 18: Improving Unit Economics in New Markets
Improving Unit Economics in New Markets New Markets Unit Economics Key Components of New Markets Unit Cost (US$ per parcel) (US$ per parcel) 2.05 1.42 0.93 1.67 0.84 1.41 0.71 0.01 0.26 (0.38) (0.35) 0.24 0.24 (1.50) 2022 2023 2022 2023 Revenue per parcel COGS per parcel Pickup and delivery Transpor
Slide 19: Clear Margin Improvement
Clear Margin Improvement Gross Profit and Gross Profit Margin Adj. EBITDA and Adj. EBITDA Margin(1) Key Drivers of Performance （US$ mm） （US$ mm） 21.0% • Proactive pricing adjustment to gain market share 20.0% 18.0% 17.9% 13.9% 14.3% 14.5% 13.8% • Maintain a healthy and sustainable margin through SEA
Slide 20: Operating Leverage Driven by Economies of Scale
Operating Leverage Driven by Economies of Scale Adj. SG&A Expenses(1) and as % of Revenue R&D Expenses and as % of Revenue (US$ mm) (US$ mm) 11.2% 14.2% 7.9% 7.3% 0.6% 0.6% 0.6% 0.5% 814.2 695.0 548.4 44.5 46.1 354.0 27.2 23.6 2022 2023 2022H2 2023H2 2022 2023 2022H2 2023H2 • Adj. SG&A as a percenta
Slide 21: Investment in Infrastructure
Investment in Infrastructure Key Drivers of Performance （US$ mm） 1,178.7 1,052.9 Increase in PP&E as company continuously invests in its PP&E • global network 2022/12/31 2023/12/31 （US$ mm） • Capex is primarily related to investment in PPE, Commitment 592.4 609.5 intangible assets and investment pro
Slide 22: Consistent Capex and Healthy Cash Position
Consistent Capex and Healthy Cash Position Key Drivers of Performance （US$ mm） (132.6) • Recorded positive OCF of US$342.0mm Free Cash (1,100.5) (1.5%) Flow(1) • Significant improvement in free cash flow as % of revenue (15.1%) FCF as % of Revenue 2022 2023 （US$ mm） 1,583.8 1,525.1 • Strong cash pos
Slide 23: Core Competence and Growth Strategies
Section 3 Core Competence and Growth Strategies
Slide 24: Core Competitiveness
Core competitiveness 1 Tackling operational challenges in SEA and continuously leading the SEA Market 2 Independent e-commerce enabler connecting merchants to consumers 3 Scalable regional sponsor model that promotes rapid penetration in all markets 4 Empower global operations with adaptable technol
Slide 25: Tackling Operation Challenges and Ranked No. 1 for 4 Consecutive Years
1 Tackling Operation Challenges and ranked No. 1 for 4 Consecutive Years(1) • We tackle unique challenges in SEA with strong network, ancillary services and proprietary technologies. These challenges create barrier to entry and present an opportunity for J&T • We have historically helped e-commerce
Slide 26: Independent E-commerce Enabler Connecting Merchants to Consumers
2 Independent E-commerce Enabler Connecting Merchants to Consumers • Platform neutral and diversified • Proven track record of enabling e-commerce growth and providing reliable and cost-competitive express delivery services with a broad network, reliable service and local know-how • Focused on devel
Slide 27: Unique Regional Sponsor Model
3 Unique Regional Sponsor Model • Pioneered a unique and highly scalable regional sponsor model based on our local networks • Regional sponsor model allows us to align interests and share culture as well as maintain strong operational control Traditional Express Delivery Models J&T’s Regional Sponso
Slide 28: Adaptive Technology System and Continued Focus on Innovation
4 Adaptive Technology System and Continued Focus on Innovation to Empower Global Operations A Self-developed Complex Finance Integrated & Process Management Universal Framework and Customer Service Efficient Resource A Proprietary Platform Management Localized Scalable Flexible and Address Digitizat
Slide 29: Adaptive Technology System and Continued Focus on Innovation (Cont'd)
4 Adaptive Technology System and Continued Focus on Innovation to Empower Global Operations (Cont’d) Self-developed & Self-maintained Self-developed & Self-maintained Address Database Address Digitalization System Efficient Resource Allocation > Mapping Algorithm __ < Reliable Tools with Uninterrupt
Slide 30: Quality Services Catering to Regional Customer and Market Needs
5 Quality Services Catering to Regional Customer and Market Needs • We provide quality services that cater to regional customer and market needs • Standardize and control service quality throughout our network and offer ancillary services based on local market demands Provide Broadest coverage of A
Slide 31: Entrepreneurial and Experienced Management Team and Regional Sponsors
6 Entrepreneurial and Experienced Management Team and Regional Sponsors Dedicated to Cultivating Leaders and Promoting Development of Our Network Jet Li Steven Fan Founder, CEO Executive President Regional Sponsors • Serial entrepreneur with over 20 years of sales and • Rich overseas management expe
Slide 32: Our Growth Strategies
Our Growth Strategies Solidify Our Leading Position and Continue to Grow Our Market 1 Share 2 1 Deepen Cooperation With All E-commerce Platforms Further Strengthen Infrastructure, Continuously Improving 3 Network Quality and Capacity 1 Consolidate Refined Management and Improve Operational 4 Efficie
Slide 33: Further Strengthening Infrastructure and Upgrading Network Quality
Further Strengthening Infrastructure and Upgrading Network Quality and Capability • Selectively self-build sorting centers in key transport hub areas to enhance our network capacity and efficiency so as to ensure meeting of customer demands • In 2023, the Company launched two self-built sorting cent
Slide 34: Consolidating Refined Management and Improving Operational Efficiency
Consolidating Refined Management and Improving Operational Efficiency • The company's self-owned fleet enables greater flexibility and transport efficiency • Keep increasing self-owned fleet capacity, boosting the management efficiency and utilization of self-owned vehicles to improve service qualit
Slide 35: Continuously Investing in ESG to Support Sustainable Development
Continuously Investing in ESG to Support Sustainable Development • Integrating ESG into daily operations to improve ESG performance • Actively utilizing business advantages, promoting end-to-end green and low-carbon initiatives, and assisting local communities Environmental Social Corporate Governan
Slide 36: Q&A
Q&A 36
Slide 37: Appendix
a | QT exoress —Express Your Online Business — Appendix
Slide 38: Our Journey
Our Journey 2015 2018 2019 2020 2021 2022 2023 Established J&T Expanded to Expanded to the Expanded to Acquisition of Expanded to Established strategic and applied Vietnam and Philippines, Singapore and Thailand and Saudi Arabia, cooperation with SF regional sponsor Malaysia Thailand, and China Indo
Slide 39: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS USD’000 2023/12/31 2022/12/31 USD’000 2023/12/31 2022/12/31 EQUITY Non-current assets Share capital 18 14 Share premium 9,061,736 603,829 Investment properties 278 507 Other reserves (185,273) (434,108) Property, plant and equipment 1,178,690 1,052,884 Accumulated losses
Slide 40: Consolidated Income Statements
CONSOLIDATED INCOME STATEMENTS USD’000 FY2023 FY2022 Revenue 8,849,251 7,267,428 Cost of revenue (8,376,453) (7,537,666) Gross profit/(loss) 472,798 (270,238) Selling, general and administrative expenses (2,157,413) (1,095,528) Research and development expenses (46,091) (44,483) Net impairment losse
Slide 41: Consolidated Statement of Cash Flows
CONSOLIDATED STATEMENT OF CASH FLOWS USD’000 FY2023 FY2022 Cash flows generated from/(used in) operating activities 341,953 (519,817) Net cash used in investing activities (858,847) (859,757) Net cash generated from financing activities 500,897 881,328 Net decrease in cash and cash equivalents (15,9
Slide 42: Relatively Stable Margin
Relatively stable margin Gross Profit and Gross Prifit Margin Adjusted EBITDA and Adjusted EBITDA Margin(1) （US$ mm） （US$ mm） 20.0% 21.0% 14.8% 17.9% 18.9% 17.7% 18.0% 13.9% 14.3% 13.3% 14.5% 13.8% SEA 331.6 375.7 476.0 470.3 223.0 253.0 220.1 250.2 156.7 174.8 184.1 191.6 58.8 75.9 30.7 75.7 (17.1)
Slide 43: Unit Economics in SEA
Unit Economics in SEA SEA Unit Economics Key Components of SEA Unit Cost (US$ per parcel) (US$ per parcel) 0.95 0.97 0.93 0.87 0.44 0.43 0.43 0.41 0.81 0.40 0.40 0.77 0.79 0.76 0.73 0.71 0.67 0.63 0.23 0.22 0.20 0.19 0.17 0.15 0.19 0.18 0.20 0.14 0.16 0.14 0.11 0.13 0.09 0.09 0.09 0.09 0.08 0.13 0.1
Slide 44: Unit Economics in China
Unit Economics in China China Unit Economics Key Components of China Unit Cost (US$ per parcel) （US$ per parcel） 0.40 0.40 0.39 0.34 0.34 0.34 0.21 0.20 0.21 0.20 0.20 0.19 0.34 0.34 0.35 0.33 0.34 0.33 0.002 (0.007) 0.009 0.10 (0.03) (0.04) (0.08) 0.09 0.09 0.08 0.07 0.07 0.004 (0.003) 0.009 0.09 (
Slide 45: Operating Leverage Driven by Economies of Scale
Operating Leverage Driven by Economies of Scale Adjusted SG&A Expenses(1) and as % of Revenue R&D Expenses and as % of Revenue (US$ mm) (US$ mm) 14.2% 11.2% 7.9% 7.8% 8.5% 7.3% 814.2 0.6% 0.6% 0.6% 0.6% 0.5% 0.5% 695.0 548.4 44.5 46.1 341.0 354.0 265.7 27.2 23.6 20.9 18.9 2022 2023 2022H1 2022H2 202
J&T Global Express Ltd B — FY2023 Earnings Presentation on 6ix