integration

innovation

intimacy

Company’s Performance Q2/2020

14 August 2020

integration

innovation

intimacy

AGENDA

Our Business

2 Q2/2020 Financial Performance

4 Business Outlook for Q3/2020

1

3 Performance Q2/2020 by BU

22

Our Business

AIR FREIGHT

SEA FREIGHT& INLAND

TRANSPORT

LOGISTICSMANAGEMENT

CHEMICAL& SPECIALTYLOGISTICS

3

▪ Cargo General Sales Agent (GSA): exclusive sales agent of • All AirAsia Airlines under Teleport 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 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 & SPECIALTYLOGISTICS

integration

innovation

intimacy

AGENDA

Our Business

2 Q2/2020 Financial Performance

4 Business Outlook for Q3/2020

1

3 Performance Q2/2020 by BU

8

1,394.4

754.2

6M19 6M20

Performance Q2/2020 – Revenue

711.8

346.6 407.6 346.6

Q2/19 Q2/20 Q1/20 Q2/20

Quarterly – Q2/19 Vs. Q1/20 Vs. Q2/20

Revenue 6M19 6M20 YoY Q2/19 Q2/20 YoY Q1/20 Q2/20 QoQAirfreight 1,142.0 425.11/ (63%) 595.0 182.91/ (69%) 242.21/ 182.91/ (24%)Sea freight 43.5 22.82/ (48%) 21.2 10.92/ (49%) 11.92/ 10.92/ (8%)Logistics 95.8 78.7 (18%) 47.5 43.7 (8%) 34.9 43.7 25%Chemical 261.9 250.5 (4%) 128.5 120.1 (7%) 130.4 120.1 (8%)Total Revenue 1,543.1 777.0 (50%) 792.2 357.6 (55%) 419.3 357.6 (15%)Revenue Consol 3/ 1,394.4 754.2 (46%) 711.8 346.6 (51%) 407.6 346.6 (15%)

YTD – 6M19 Vs. 6M20Unit : Million Baht

Remark: 1/ Airfreight revenue did not include GSA revenues from servicing AirAsia in the approximate amount of THB 100 million and THB 250 million in Q1/20 and Q2/20 respectively, since TLP-TH was categorized as Joint Venture

2/ Sea freight revenue significantly decreased since Rizhao ceased its business since January 20203/ After eliminating inter-company transactions.

9

Revenue Composition Q2/2020

55%

3%10%

32%

74%

3%

6%

17%

Revenue

Revenue (Million Baht) Airfreight Sea freight Logistics Chemical Total6M19 1,142.0 43.5 95.8 261.9 1,543.16M20 425.1 22.8 78.7 250.5 777.0

% Proportion

Chemical

Airfreight

Chemical

Sea freight

AirfreightSea freight

6M206M19

Remark : *These figures shown are gross numbers before eliminating Inter-company transactions.

10

Performance Q2/2020 – Gross ProfitQuarterly – Q2/19 Vs. Q1/20 Vs. Q2/20YTD – 6M19 Vs. 6M20

Unit : Million Baht

117.870.5 86.4 70.5

16.6%20.3% 21.2% 20.3%

5.0%

10.0%

15.0%

20.0%

25.0%

Q2/19 Q2/20 Q1/20 Q2/20 -

100.0

200.0231.8

156.9

16.6%20.8%

-2.0%

3.0%

8.0%

13.0%

18.0%

23.0%

6M19 6M20 -

100.0

200.0

300.0

400.0

Gross Profit 6M19 6M20 YoY Q2/19 Q2/20 YoY Q1/20 Q2/20 QoQAirfreight 112.7 55.4 (51%) 57.5 16.5 (71%) 38.9 16.5 (58%)Sea freight 31.1 11.6 (63%) 15.4 5.8 (62%) 5.8 5.8 0%Logistics 27.2 25.6 (6%) 12.0 15.4 28% 10.2 15.4 52%Chemical 63.0 66.4 5% 31.9 34.0 7% 32.4 34.0 5%Total Gross Profit 234.1 159.0 (32%) 116.8 68.3 (42%) 87.3 71.7 (18%)Gross Profit Consol 231.8 156.9 (32%) 117.8 70.5 (40%) 86.4 70.5 (18%)GPM 16.6% 20.8% 16.6% 20.3% 21.2% 20.3%

11

Gross Profit Composition Q2/2020Gross Profit

Revenue (Million Baht) Airfreight Sea freight Logistics Chemical Total6M19 112.7 31.1 27.2 63.0 234.16M20 55.4 11.6 25.6 66.4 159.0

% Proportion

6M206M19

Remark : *These figures shown are gross numbers before eliminating Inter-company transactions.

35%

7%16%

42%48%

13%

12%

27%

Chemical AirfreightChemical

Airfreight

12

Performance Q2/2020 – Net ProfitQuarterly – Q2/19 Vs. Q1/20 Vs. Q2/20YTD – 6M19 Vs. 6M20

Unit : Million Baht

Net Profit 6M19 6M20 YoY Q2/19 Q2/20 YoY Q1/20 Q2/20 QoQNet Profit Consol 93.3 54.1 (42%) 50.4 31.5 (38%) 22.5 31.5 40%NPM 6.7% 7.2% 7.1% 9.1% 5.5% 9.1%

93.3

54.1

6.7%7.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

6M19 6M20 -

50.0

100.0

150.0

50.431.5

22.531.5

7.1%9.1%

5.5%

9.1%

-20.040.060.080.0

100.0

Q2/19 Q2/20 Q1/20 Q2/200.0%2.0%4.0%6.0%8.0%10.0%

13

Analysis

Overall Performance 6M2020

Unit : Million Baht 6M19 6M20 Change%

Change+ / (-)

Revenues from sales and services 1,394.4 754.2 (640.2) (45.9%)

Costs of sales and services 1,162.6 597.3 (565.3) (48.6%)Gross profit 231.8 156.9 (74.9) (32.3%)

Gross profit margin (%) 16.6% 20.8% 4.2%

Other income 4.6 7.4 2.8 61.3%Selling expenses 40.1 32.8 (7.3) (18.2%)Administrative expenses 139.0 135.0 (4.0) (2.9%)Gain (loss) on exchange rate - net 8.0 0.1 (7.9) (98.9%)Financial Cost 6.4 14.0 7.7 120.6%Share of profits from investment in Asso&JV 45.4 76.1 30.7 67.5%Net profit 93.3 54.1 (39.3) (42.1%)Net profit margin (%) 6.7% 7.2% 0.5%

▪ Gain (loss) on exchange rate decreased as the Companycompletely paid all accrued expenses for acquisition ofDGP & Around

▪ Financial Cost increased mainly due to the cost ofacquiring Around Group and other Financial Cost thathas been change due to TFRS 16.

▪ Provision for Employee benefit obligations in Q1/19 wasreversed for amount of THB 13 million, resulting in adecrease of SG&A in 6M19.

▪ In 6M20, the Company transferred employees to TLPTH, reducing expense for amount approximately of THB2 million per month.

▪ Profits from Asso&JV increased from Around Group’soutstanding performance

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Financial Status as of 30 June 2020 Financial Ratio

Liability

EquityAsset

Ratio YE18 YE19 6M20

Company Performance

ROE (%) 1/ 13.0% 13.3% 9.9%

Collection Period (days) 42.1 45.9 55.7

Payment Period (days) 61.1 67.8 72.3

Debt Performance

Current Ratio (times) 2.1x 1.2x 0.8x

D/E Ratio (times) 0.6x 0.7x 0.9x

IBD/E Ratio (times) 0.0x 0.3x 0.6x

DSCR (times) 14.5x 3.0x 1.4x

Profitability Performance

Gross Profit Margin (%) 17.5% 16.1% 20.8%

EBITDA Margin (%) 7.9% 8.9% 16.1%

Net Profit Margin (%) 5.4% 6.1% 7.2%

EPS (Baht per share) 0.25 0.27 0.09

Trailing 12M EPS (Baht per share) 2/ 0.25 0.27 0.21

Remark : 1/ Trailing 12M Net Profit2/ Adjusted EPS based on existing shares at that time

Core Asset Million Baht

Cash 104

AR 311

PPE 206

Investment (JV&Asso) 1/ 1,258

Core Liability Million Baht

AP 225

IBD2/ 837

Unit : Million Baht

Remark : 1/ DGP THB 266 million, Around THB 513 million and GV THB 65 million2/ Short-term loan THB 140 million / Long-term loan THB 420 million and Leasing THB 277 million

Financial Health Q2/2020

2,473

1,140

1,332

Asset Liability and Equity

integration

innovation

intimacy

AGENDA

Our Business

2 Q2/2020 Financial Performance

4 Business Outlook for Q3/2020

1

3 Performance Q2/2020 by BU

16

39,063

18,445

6M/19 6M/20

Total Volume of Air Cargo in Thailand (BKK, DMK, HKT, HDY, CNX and CEI)

Domestic

International

Wholesale Freight Forwarder

Unit : Tons Unit : Tons

Air Cargo Terminal

Performance – Air Business Unit▪ Air services volume was greatly affected by Covid-19,

as all of AirAsia airplanes were grounded from 15th

March, and hence volume drop especially in Q2/2020.

▪ WFF: Although a huge drop in volume due to impactfrom almost all airlines grounding their airplanes, westill managed to improve yield which reflects in ahigher Gross profit ratio.

▪ Air Cargo Terminal: Financial performance greatlyimpacted following the sharp drop in volume as AGSmainly serves cargo handling for all Air Asia flightsthat being grounded.

1,206 1,088

8,017

4,177

9,222

5,265

6M/19 6M/20

389 401 398 402347 339 345 377

321

167-11% -16% -13% -6% -8%

-51%

-60%-40%-20%0%20%40%60%80%100%

0

100

200

300

400

500

600

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Average growth -29% for 6M20

2018 2019 2020

17

1,437 982

18,703

5,041

20,140

6,023

6M/19 6M/20

Cargo General Sales Agent (GSA)

Unit : Tons

Performance – Air Business Unit : GSA

Domestic

Export

Impact to Revenue

596Unit : Million Baht

all activitiesFD/XJ / other

airlines

6M/19 6M/20

35

other airlines +

Ramp 348

TLP-TH only Export

Performance from TLP-TH is recognized as Share of profits from investment in Asso&JV

TLP record

III record

▪ GSA: Export volumes sharply dropped particularly in Q2/20 since all AirAsia flights were grounded from 15th March 2020 with impact from COVID-19 pandemic.

▪ GSA Import Volume was 14,078 and 689 Tons in 6M/19 and 6M/20 respectively due to the new JV structure with TLP-TH

▪ The Company through new JV TLP-TH has built new source of income by operating chartered flights cargo with AirAsia by employing passenger planes as cargo flight in which such services created income recover in Q2/20.

▪ GSA income compare YOY was huge dropped because income being transferred to record in JV TLP-TH and import part were transferred to each origin.

18

544

324

6M/19 6M/20

Shipping Line Agency (TEU)* Trailer Services (Trips) ISO Tank Operators (TEU)

Performance – Sea & Inland-Logistics Business Unit

33,375 27,907

6M/19 6M/20

950

1,511

6M/19 6M/20

▪ Volume of Shipping Line Agency (CK Line) decreased due to a drop in export volume

▪ Trailer Services volume greatly increased from last year as we focus more on this business. Volume declined QoQ as we concentrated more on profitability which resulted in higher profit margin.

* Rizhao cease its operations from January 2020. The volume was 20,900 TEU for 6M19.

19

Delivery (#Order)

Distribution Management & Fulfillment Service Integrated Freight Forwarder

Sea Freight (TEU)Air Freight (Tons)

Performance - Logistics Management Business Unit

185,888

229,563

6M/19 6M/20

212 153

6M/19 6M/20

661 721

6M/19 6M/20

▪ Distribution Management & Fulfilment Services volume increased due to a significant growth of e-commerce

▪ Although Air Freight volume decreased as customers affected by COVID 19, profit was still able to maintain QoQ due to higher freight rates

▪ Sea Freight volume increased from a China Cargo project

20

Integrated Freight Forwarder

Air Freight (Kgs) Sea Freight (TEU)

ISO Tank Operator (TEU)

Performance - Chemical Logistics Business Unit

64,519

39,622

6M/19 6M/20

3,397

2,917

6M/19 6M/20

2,568 2,427

6M/19 6M/20

▪ Integrated Freight Forwarder volume significantly decreased due to the impact of Covid-19 outbreak

▪ Slight reduction of ISO Tank shipments due to the impact of Covid-19

DG Packaging & Services

Packing Sales (Box) Packing Service (Shipment)

8,183

18,492

6M/19 6M/20

1,510 1,366

6M/19 6M/20

▪ DG Packing Sales significantly increased, particularly for alcohol products and UN Certified Boxes, due to higher demand during Covid-19 outbreak.

▪ Packing Service volume reduced in Airfreight shipment as a result of airport shutdown.

integration

innovation

intimacy

AGENDA

Our Business

2 Q2/2020 Financial Performance

4 Business Outlook for Q3/2020

1

3 Performance Q2/2020 by BU

22

Business Plan Q3/2020

➢ Impact from Covid-19 to Air Transportation is expected to be relieved➢ Focus on domestic transportation for fresh products and consumer goods and International routes that

generate high margin➢ Cost management: Continual cost management procedure to reduce costs

➢ Continual increase trailer service and cross-border transport and develop other forms of inland transport

➢ Focus on customers who are not affected by Covid-19 in the following groups:I. Food, medicine and medical device: Total logistics solutionsII. Construction project, infrastructure and electricity: Multimodal transportIII. E-Commerce: develop Order Management System (OMS) to complement with Warehouse Management

System (WMS), and also Packing Station in warehouse

➢ Warehouse expansion in Q3: Expand warehouse area at TPARK on Bangna-Trad road➢ Product line extension: Sell new DG packaging product – Customized box

23

Business Strategies for Business DevelopmentThe COVID-19 outbreak has created a changing trend in consumer behavior in using logistics services, demanding diverse forms ofservices. The Company has put great importance on local logistics service and logistics service within the region under the threemain principles:

• On-Demand Charter flight: The Company, in cooperation with TLP-TH, will provide on-demandCharter flight service

• AOTGA ground handling services: SKY ICT PCL, who specialized and experienced in Informationand communication technology, became a new partner in SAL. This cooperation will develop andincrease service potential of both SAL and AOTGA to cover more ranges of services.

• Project Cargo Handling & Cross Border and Rail transport: In the process of studying jointinvestment plan with potential partner

• E-Logistics Platform: Further develop potential business with X Commerce who is an expert increating platforms for e-commerce business and has C2C customers. The Company will focus oncustomers development to expand its existing customer base, which mainly consists of B2B customers,to increase potentials and sales channels in the form of online marketplace.

Expansion of business through cooperation with business partners

1

Expansion of scope of logistics services

2

Development of logistics services via digital platform

3