Slide 1: Interim Results 2018
I N T E R I M R E S U LT S 2018 © Kerry Logistics Network Limited. All rights reserved. 636.HK 2018 INTERIM RESULTS 0
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
Slide 3: Financial Highlights (HK$ M)
FINANCIAL HIGHLIGHTS (HK$ M) +27% IL +25% IFF +6% 17,461 1,107 235 TURNOVER SEGMENT PROFIT SEGMENT PROFIT © Kerry Logistics Network Limited. All rights reserved. 1,216 700 CORE OPERATING PROFIT CORE NET PROFIT +19% +22% 948 DIVIDEND (HK CENTS PER SHARE) GROSS GEARING PROFIT ATTRIBUTABLE TO THE SHARE
Slide 4: Overview
O V E RV I E W HK$ M +27% 17,461 New wins boosted by booming intra-Asia trade & TURNOVER e-commerce © Kerry Logistics Network Limited. All rights reserved. +19% 1,216 Business volume grew with the increased production activities shifted out from China at a faster pace CORE OPERATING PROFIT 700 Stron
Slide 5: Earnings Drivers – Hong Kong
EARNINGS DRIVERS – HONG KONG Segment profit by geographical area IL IFF Segment LOP Segment Europe Mainland Profit 2013-2017 HKW Profit 2013-2017 1% China Americas 6% HK$ M CAGR HK$ M CAGR 16% Taiwan Asia 15% +9% +5% 26% Hong 900 40 © Kerry Logistics Network Limited. All rights reserved. Kong 775 Yo
Slide 6: Earnings Drivers – Asia (ex-Greater China)
EARNINGS DRIVERS – ASIA (ex-Greater China) Segment profit by geographical area IL IFF Segment Segment Europe Mainland Profit 2013-2017 Profit 2013-2017 1% China Americas 6% HK$ M CAGR HK$ M CAGR 16% Taiwan Asia 15% +18% +5% 26% Hong 500 100 © Kerry Logistics Network Limited. All rights reserved. Kon
Slide 7: Earnings Drivers – Asia (ex-Greater China)
EARNINGS DRIVERS – ASIA (ex-Greater China) - KSSP, Thailand - – Mandalay Dry Port, Myanmar - In Co pr m og pl re et ss ed © Kerry Logistics Network Limited. All rights reserved. - Phnom Penh SEZ, Cambodia - – Yangon Dry Port, Myanmar- Co In m pr pl og et re ed ss 2018 INTERIM RESULTS 6
Slide 8: Earnings Drivers – Taiwan
E A R N I N G S D R I V E R S – TA I WA N Segment profit by geographical area IL IFF Segment Segment Europe Mainland Profit 2013-2017 Profit 2013-2017 1% China Americas 6% HK$ M CAGR HK$ M CAGR 16% Taiwan Asia 15% +9% +26% 26% Hong 500 16 © Kerry Logistics Network Limited. All rights reserved. Kong
Slide 9: Challenges – Mainland China
CHALLENGES – MAINLAND CHINA Segment profit by geographical area IL + IFF China is under structural changes Segment • China is transforming from export-base to Europe Mainland Profit 2013-2017 1% China Americas HK$ M import-base 16% Taiwan 6% CAGR Asia 15% +1% • Manufacturing capacities have been shi
Slide 10: Cash, Debt & Equity
CASH, DEBT & EQUITY CASH & DEBT SHAREHOLDERS’ EQUITY(5) HK$ M HK$ M 9,106 19,042 19,511 10,000 8,205 20,000 7,500 15,000 5,000 3,570 3,915 Cash (3) 10,000 © Kerry Logistics Network Limited. All rights reserved. Debt(4) 2,500 5,000 - - 31 Dec 2017 30 Jun 2018 31 Dec 2017 30 Jun 2018 (3) Cash and bank
Slide 11: Network Expansion & Asset Optimisation
N E T W O R K E X PA N S I O N & A S S E T O P T I M I S AT I O N NETWORK EXPANSION ASSET OPTIMISATION 53 countries & territories Expansion Divestment © Kerry Logistics Network Limited. All rights reserved. JV in Completed Disposed / Divested Project Logistics China LC : Shanghai & Wuxi II China LC
Slide 12: Outlook
OUTLOOK 1 G r o w t h M o m e n t u m i n A s i a , H o n g K o n g & Ta i w a n © Kerry Logistics Network Limited. All rights reserved. 2 G r o w t h M o m e n t u m i n I F F, E x p r e s s & E - c o m m e r c e 3 Asset Optimisation Initiatives 4 Capability Expansion in Project Logistics 2018 INTE
Slide 13: Appendices
APPENDICES © Kerry Logistics Network Limited. All rights reserved. INTERIM RESULTS 2018 BACKGROUND RESOURCES & ASSETS WHAT WE OFFER SHOWCASES 2018 ACCREDITATIONS & INTERIM AWARDSRESULTS 12
Slide 14: I: Financial Analysis – Turnover
Appendix I: Financial Analysis – Turnover(6) GROUP TURNOVER (6) HK$ 17,461m +27% 44% 56% HK$ M YoY HK$ M YoY IL 8,166 + 34% IFF 9,295 + 22% 1H 2017 13,705 LOP 8,058 + 38% 1H 2018 17,461 HKW 108 -59% © Kerry Logistics Network Limited. All rights reserved. 47% 53% Turnover(6) by Geographical Area Asia
Slide 15: II: Financial Analysis – Segment Profit
Appendix II: Financial Analysis – Segment Profit GROUP SEGMENT PROFIT HK$ 1,342m +21% 80% 20% HK$ M YoY HK$ M YoY IL 1,107 + 25% IFF 235 + 6% 1H 2017 622 262 222 1,106 LOP 843 + 36% 1H 2018 843 264 235 1,342 HKW 264 + 1% © Kerry Logistics Network Limited. All rights reserved. 82% 18% Segment Profit
Slide 16: II: Financial Analysis – Segment Profit
Appendix II: Financial Analysis – Segment Profit GROUP SEGMENT PROFIT HK$ 1,342m +21% 80% 20% HK$ M YoY HK$ M YoY IL 1,107 + 25% IFF 235 + 6% 1H 2017 622 262 222 1,106 LOP 843 + 36% 1H 2018 843 264 235 1,342 HKW 264 + 1% © Kerry Logistics Network Limited. All rights reserved. 82% 18% IL - LOP IFF 84
Slide 17: III: Earnings Drivers
Appendix III: Earnings Drivers HONG KONG ASIA TAIWAN CHINA IL IL IL IL & IFF Segment LOP Segment 2013-2017 Segment Segment 2013-2017 2013-2017 2013-2017 Profit +18% Profit Profit Profit CAGR +9% HKW 500 HK$ M CAGR YoY 500 CAGR +9% YoY 600 CAGR +1% YoY 1,000 HK$ M HK$ M HK$ M 426 +54% +1% -3% 800 775
Slide 18: IV: Condensed Consolidated Interim Income Statement
Appendix IV: Condensed Consolidated Interim Income Statement For the 6 months ended 30 Jun Unaudited Unaudited 2018 2017 HK$’000 HK$’000 Turnover 17,461,227 13,705,335 Direct operating expenses (15,163,182) (11,786,516) Gross profit 2,298,045 1,918,819 Other income and net gains 166,925 83,823 © Ker
Slide 19: V: Condensed Consolidated Interim Statement of Financial Position
Appendix V: Condensed Consolidated Interim Statement of Financial Position ASSETS AND LIABILITIES Unaudited Audited As at 30 Jun 2018 As at 31 Dec 2017 Non-current assets HK$’000 HK$’000 Intangible assets 4,263,853 3,884,482 Investment properties 10,137,615 9,892,482 Leasehold land and land use righ
Slide 20: V: Condensed Consolidated Interim Statement of Financial Position (cont'd)
Appendix V: Condensed Consolidated Interim Statement of Financial Position (cont’d) Unaudited Audited As at 30 Jun 2018 As at 31 Dec 2017 HK$’000 HK$’000 Non-current liabilities Loans from non-controlling interests 171,034 166,826 Long-term bank loans 4,448,983 4,198,758 Deferred taxation 701,767 66
Slide 21: VI: Special Dividend
Appendix VI: Special Dividend Disposal Gain of 17% of KETH Special Dividend HK$ M HK$ © Kerry Logistics Network Limited. All rights reserved. Consideration 1,022 Special dividend per share 0.12 Less: Book value as of 30 Jun 2018 (34) Special dividend amount 204m Gross Gain 988 Dividend payout ratio
Slide 22: Thank You
THANK YOU © Kerry Logistics Network Limited. All rights reserved. BACKGROUND RESOURCES & ASSETS WHAT WE OFFER SHOWCASES 2018 ACCREDITATIONS & INTERIM RESULTS AWARDSAugust 21 2018