Company’s Performance Q1/2019 8 May 2019

integration

innovation

intimacy

Company’s Performance Q1/2019

8 May 2019

integration

innovation

intimacy

integration

innovation

intimacy

AGENDA

Our Business

2 Q1/2019 Financial Performance

3 Performance Q1/2019 by BU

4 Business Outlook for Q2/2019

1

22

Our Business

AIR FREIGHT

SEA FREIGHT

& INLAND

TRANSPORT

LOGISTICS

MANAGEMENT

CHEMICAL

& SPECIALTY

LOGISTICS

3

Cargo General Sales Agent (GSA): exclusive sales

agent of

• Thai AirAsia & Thai AirAsiaX airline for all routes

from and to Thailand

• Sri Lankan, Lan Cargo, Bhutan, Jeju Airlines and

US Bangla Airlines for all routes from Thailand

Wholesale Freight Forwarder : providing domestic

and international air freight services for co-loaders

Air Cargo Terminal : International and domestic cargo

terminal at Don Muang Airport

AIR FREIGHT

4

Shipping Line Agencies :

• Thailand sole agent for Rizhao Port

Shipping Line

• Thailand Joint Venture : CK Line

Wholesale Freight Forwarder : Thailand

Joint Venture with ECU Worldwide, global

leader in Less-than Container Load (LCL)

services with network in over 160 countries

Inland Container Trucking Services:

transport containers to and from seaport /

container depot

SEA FREIGHT &

INLAND TRANSPORT

5

Integrated Freight Forwarder : International

freight forwarding services for both sea & air

transport and customs clearance for retail

customers

Warehousing : storage, inventory management,

and real-time reporting

Distribution Management : modern trade, shops,

home delivery

Fulfillment Service : focus on E-Commerce and

end to end supply chain services

LOGISTICS MANAGEMENT

6

Integrated Freight Forwarder :

International freight forwarding services for

both sea & air transport and customs

clearance for chemical & dangerous goods

Dedicated Chemical Warehouse : storage,

inventory management, and real-time

reporting

Inland and Distribution Management : for

industrial and B2B market

DG Packaging : sale of packing materials,

DG declaration and repacking services

ISO Tank Business : as agent for Nippon

Concept Co., Ltd, a Japanese based ISO

tank operator for liquid chemical

CHEMICAL & SPECIALTY

LOGISTICS

integration

innovation

intimacy

integration

innovation

intimacy

AGENDA

Our Business



1


8

603.0

682.6733.0

682.6

Q1/18 Q1/19 Q4/18 Q1/19

Performance Q1/2019 – Revenue

Remark : 1/ After eliminating inter-company transactions.

Unit : Million Baht

YoY 13.2% Q1/18

Q1/19

% Revenue Contribution Q1/18 vs Q1/19

Revenue Q1/18 Q1/19 YoY Q4/18 Q1/19 QoQ

Airfreight 487.1 547.0 12% 619.1 547.0 (12%)

Sea freight 28.9 22.3 (23%) 24.3 22.3 (9%)

Logistics 34.7 48.3 39% 33.6 48.3 44%

Chemical 133.0 133.4 0% 133.9 133.4 (0%)

Total Revenue 683.7 750.9 10% 810.9 750.9 (8%)

Revenue Consol 1/ 603.0 682.6 13% 733.0 682.6 (7%)

QoQ -6.9%

Q1/18 vs. Q1/19 Q4/18 vs. Q1/19

9

127.9114.0

104.5114.0

21.2%

16.7%14.3%

16.7%

Q1/18 Q1/19 Q4/18 Q1/19

Performance Q1/2019 – Gross Profit

Remark : 1/ After eliminating inter-company transactions.

2/ Gross Profit in Q1/18 do not take into account the reclassification of “Selling expense” to “Cost of sales and services”

3/ Gross Profit in Q4/18 are managerial figures, calculated by using 12-month 2018 Gross Profit (After Reclassification)

minus 9-month 2019 Gross Profit (no Reclassification)

Unit : Million Baht

% Gross Profit Contribution YE17 vs YE18

Gross Profit Q1/182/ Q1/19 YoY Q4/183/ Q1/19 QoQ

Airfreight 72.9 55.3 (24%) 49.7 55.3 11%

Sea freight 15.0 15.7 5% 16.6 15.7 (5%)

Logistics 9.1 15.2 67% 7.6 15.2 100%

Chemical 32.5 31.1 (4%) 32.4 31.1 (4%)

Total Gross Profit 129.4 117.3 (9%) 106.2 117.3 10%

Gross Profit Consol1/ 127.9 114.0 (11%) 104.5 114.0 9%

GPM 21.2% 16.7% 14.3% 16.7%

Q1/18

Q1/19

Q1/18 vs. Q1/19 Q4/18 vs. Q1/19

YoY 10.9% QoQ 9.1%

10

Performance Q1/2019 – Net Profit

Unit : Million Baht

Net Profit Q1/18 Q1/19 YoY Q4/18 Q1/19 QoQ

Net Profit Consol 25.9 42.9 66% 42.7 42.9 0%

NPM 4.3% 6.3% 5.8% 6.3%

25.9

42.9 42.7 42.9

4.3%

6.3% 5.8% 6.3%

Q1/18 Q1/19 Q4/18 Q1/19

QoQ 0.4%YoY 65.5%

Q1/18 vs. Q1/19 Q4/18 vs. Q1/19

11

40.3 43.1

26.120.1

25.938.4 43.7 42.7 42.9

146.5 143.2

123.6 118.0 120.9 123.8113.3

126.5114.0

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19

Net Profit Total Gross Profit

31.98THB:USD

Quarterly Performance Since Y2017

Net Profit

Gross Profit Margin

Daily THB:USD

Gross Profit

36.07 THB:USD

Cancel domestic

airfreight of Thai Post Appreciation of Thai

Baht

26.8% 25.4%22.4%

17.5% 20.1% 17.7%

YoY 66%

15.4%17.3%

32.61THB:USD

Note : Exchange rate as of 30 April 2019 = 32.10 THB:USD

Exchange rate Average Y17 = 34.10 THB:USD

Exchange rate Average Y18 = 32.49 THB:USD

32.85THB:USD

16.7%

Remark: Q1-Q3 2018 Gross Profit figures in this slide represent

adjusted Gross Profit from audited reports i.e., reclassify

“Selling expense” to “Cost of sales and services” in each

quarter

12

Financial Status Financial Ratio

Liability

EquityAsset

Ratio YE18 Q1/19

Company Performance

ROE (%) 1/ 13.0% 14.0%

Collection Period (days) 42.1 45.0

Payment Period (days) 61.1 61.1

Debt Performance

Current Ratio (times) 2.1x 0.9x

D/E Ratio (times) 0.6x 0.7x

IBD/E Ratio (times) 0.0x 0.2x

Profitability Performance

Gross Profit Margin (%) 17.5% 16.7%

EBITDA Margin (%) 7.9% 9.3%

Net Profit Margin (%) 5.4% 6.3%

EPS (Baht per share) 0.25 0.07

Trailing 12M EPS (Baht per share) 2/ 0.25 0.28

Remark : 1/ Trailing 12M Net Profit

2/ Adjusted EPS based on existing shares at that time

2,166

1,256

910

Asset Liability and Equity

Q12019

Financial Health Q1/2019

Core AssetMillion

Baht

Cash 244

AR 489

PPE 295

Investment (JV&Ass) 852

Core

Liability

Million

Baht

AP 472

IBD 233

integration

innovation

intimacy

integration

innovation

intimacy

AGENDA

Our Business



1


14

1,041 853 455 853

3,8143,558 3,928 3,558

4,8554,411 4,383 4,411

Q1/18 Q1/19 Q4/18 Q1/19

1,207 1,016 583 1,016

13,21415,630

20,14815,630

14,420

16,647

20,731

16,647

Q1/18 Q1/19 Q4/18 Q1/19

AIR FREIGHT

Domestic

International

Wholesale Freight Forwarder

Decreased in Transit volume from some

countries especially in Myanmar and Cambodia

Cargo General Sales Agent (GSA)

Unit : Tons Unit : Tons

YoY Volume increased due to an expansion of

routes and higher load factor

QoQ Volume decreased since Q1 is a low

season with long holidays

15

17,133

22,65624,390 25,208

18,199

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19

QoQ Volume decrease due to seasonal effect

Expect to regain volume in the next quarters in 2019 as in 2018

AIR FREIGHT

Unit : Tons

Air Cargo Terminal

YoY 6%

16

379 495 438 495

2,952 2,499 2,317 2,499

3,3312,994 2,755 2,994

Q1/18 Q1/19 Q4/18 Q1/19

22,324

27,92925,561

27,929

Q1/18 Q1/19 Q4/18 Q1/19

Shipping Line Agencies (TEU)*

Continue growth through partnership with Rizhao

Inland Container Trucking Services (Trips)

Even with increased iii’s own fleet services

rendered, the revenue took a slight decrease

due to large numbers of domestic service

provided which the company receives lower fee

than that of the cross-borders routes.

SEA FREIGHT &

INLAND TRANSPORT

Remark * Sea Freight and Inland Transport figures previously presented in 2018 Analyst presentation and 2019 are not aligned because the BU changed the method

of collecting data since the beginning of 2019 in order to better analyze business

Own fleet

Outsource

17

131

172

106

172

Q1/18 Q1/19 Q4/18 Q1/19


Integrated Freight Forwarder

Both Sea and Air Freight volume increased from acquiring new key account customers

Sea Freight (TEU) Air Freight (Tons)

351

783

679

783

Q1/18 Q1/19 Q4/18 Q1/19

18

4,016

3,296 3,296 3,296

Q1/18 Q1/19 Q4/18 Q1/19


Delivery (#Order) Warehousing (M2/Month)

Volume increased from E-Commerce distribution

orders, and more B2C deliveries with COD

shipments

Focus on better warehousing space utilization

Distribution Management & Fulfillment Service

25,093

75,482

63,192

75,482

Q1/18 Q1/19 Q4/18 Q1/19

19

1,902 2,007

1,876 2,007

Q1/18 Q1/19 Q4/18 Q1/19


LOGISTICS

Sea Freight (TEU) Air Freight (Kgs)

Integrated Freight Forwarder

Increased in export volume

62,115

31,476

51,503

31,476

Q1/18 Q1/19 Q4/18 Q1/19

Lower volume because of decreased auto-parts

shipments

20

1,210 1,284 1,233 1,284

Q1/18 Q1/19 Q4/18 Q1/19

21,454 21,454 21,454 21,454

Q1/18 Q1/19 Q4/18 Q1/19


LOGISTICS

maintained warehouse space and retained high

utilization rate

Warehousing (Pallet) ISO Tank Operator (TEU)

Stable growth for both export/import volumes

21

679 772 764 772

Q1/18 Q1/19 Q4/18 Q1/19


LOGISTICS

DG Packaging & Services

Packing Service (Shipment)Packing Sales (Box)

Increased in services as a result of On-site packing services (DGP-2-GO) and more key

accounts being developed

3,391 3,643

2,406

3,643

Q1/18 Q1/19 Q4/18 Q1/19

integration

innovation

intimacy

integration

innovation

intimacy

AGENDA

Our Business



1


23

Triple i Logistics 2021 Aspirations and Strategy

Enablers • IT/Operations: Leverage digital technology to increase efficiencies, reduce costs and provide services to customers and provide

business intelligence for decision making

• HR/People: Fill key critical positions, review governance model

BU

Strategy

Strategic

directions

Aspirations

Leading Thai Logistics House with sustainable growth in SEA

and achieving significant growth by 2021

Organic growth

Inorganic Growth

Partner-driven growth:• Lock in key long term partners (airlines,

network, authorities)• Wholesale business model and related services• Create new innovative products with partners

(master piece for Thailand)

Customer-driven growth:• Maintain leadership position in DG as integrated

logistics provider and grow regionally• Integrated logistics provider for import

businesses

• Partnership with Air

Asia (grow and

maximize utilization)

• Air cargo terminal at

DMK and HKT

Inorganic

1. Air Freight

• Growth with CK Line

and Rizhao

2. Sea Freight

Inorganic

• Growth by further

penetration of its

current customer

base and acquisition

of new customers

4. Chemical

Inorganic

3. Logistics

• Growth via the current

customer base and

new customers in

import businesses by

leveraging new IT

platform

Inorganic

24

Business Outlook - Air Freight Business

Organic

Volume will increase from Q1/2019 since the first quarter is a low

season with long holidays

Thai AirAsia X will open new routes to Tienjin (China) in May and

Brisbane (Australia) in June

US Bangala Airlines appointed the company as GSA in January,

serving direct flights to Dhaka (Bangladesh), a route with high

demand, since March 2019

Inorganic Growth

- Around

The company will fully recognize profit from its investment in

Q2/2019 and onward

25

Volume will increase from the first

quarter as the latter half of the second

quarter will be the beginning of high

season up until third quarter, which will

also drive exports to China and

Vietnam which are the main routes of

Rizhao Shipping Lines

Rizhao Port

Business Outlook – Sea Freight & Inland Transport

Sea Freight

26

The company direction to expand Key Account customer base since

Q1/2019 results in positive performance, not only shown through

increases in Air and Sea Freights, but also through increase in

related services

In Q2/2019, the company will focus in E-Commerce customers

which have exponential growth and employ whole value chain

logistics services

Focus in customers who use several services, making higher

profitability per unit area

International

Freight

Forwarding

Service

Warehouse and

Distribution

Service

Business Outlook – Logistics Management

27

In Q2/2019, the performance will be better due to an increase in new

customers and enhancing warehouse utilization

The company may expand Warehouse area to serve the increasing

demand

DGPS will provide a new service, DG Acceptance Process at

Singapore airport, as the law (DG acceptance process) will be in

effect in Q2 onward

Acquired a new Key Account in Oil & Gas industry, generating higher

revenue

Warehouse

Expansion

Performance

from DGPS

Business Outlook – Chemical & Specialty Logistics

28

Air freight rates will be stable as in the first quarter

Sea freight rates are expected to increase from the first quarter due to the

start of High season, and may escalate the rates for some services e.g.,

Reefer Container which has a high demand in Q2/2019

Exchange rates likely to depreciate compare to the first quarter, and still

volatile cause by domestic economic and political factors, and also

international politic specifically the USA

International

Freight Trends

Exchange Rate

Business Outlook – Ongoing Business

Documents

Company’s Performance Q1/2019 8 May 2019