company performance q2/2021
TRANSCRIPT
COMPANY PERFORMANCE Q2/2021
2. Q2/2021Financial Performance
3. Business Outlookfor Q3/2021
1. Our Business
▪Cargo General Sales Agent (GSA): exclusive sales agent of • All AirAsia Airlines under Teleport Thailand
• Sri Lankan, Lan Cargo, Bhutan, Jeju Airlines, US Bangla Airlines and Viet Jet Air 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
▪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
▪ 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
▪ 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
3. Business Outlookfor Q3/2021
1. Our Business
2. Q2/2021Financial Performance
754.2
1,274.6
6M/20 6M/21
346.6
641.5 633.1 641.5
Q2/20 Q2/21 Q1/21 Q2/21
Performance Q2/2021 – Revenue Quarterly – Q2/20 Vs. Q1/21 Vs. Q2/21
Revenue 6M20 6M21 YoY Q2/20 Q2/21 YoY Q1/21 Q2/21 QoQAirfreight 425.1 762.7 79% 182.9 376.7 106% 386.0 376.7 (2%)Sea freight 22.8 44.1 94% 10.9 28.2 158% 16.0 28.2 76%Logistics 78.7 119.6 52% 43.7 61.7 41% 57.9 61.7 7%Chemical 250.5 378.6 51% 120.1 190.6 59% 188.0 190.6 1%Total Revenue 777.0 1,305.0 68% 357.6 657.2 84% 647.9 657.2 1%Revenue Consol 1/ 754.2 1,274.6 69% 346.6 641.5 85% 633.1 641.5 1%
YTD – 6M20 Vs. 6M21Unit : Million Baht
Remark: 1/ After eliminating inter-company transactions.
59%
3%
9%
29%
55%
3%10%
32%
Revenue Composition Q2/2021Revenue
Revenue (Million Baht) Airfreight Sea freight Logistics Chemical Total6M20 425.1 22.8 78.7 250.5 777.06M21 762.7 44.1 119.6 378.6 1,305.0
% Proportion
Chemical
Airfreight
Chemical
Sea freight
Airfreight
Sea freight
6M216M20
Remark : *These figures shown are gross numbers before eliminating Inter-company transactions.
156.9
254.220.8% 19.9%
0.0%
5.0%
10.0%
15.0%
20.0%
6M/20 6M/21 -
100.0
200.0
300.0
70.5
137.4116.8
137.4
20.3% 21.4%18.5%
21.4%
5.0%
10.0%
15.0%
20.0%
25.0%
Q2/20 Q2/21 Q1/21 Q2/21 -
50.0
100.0
150.0
200.0
Performance Q2/2021 – Gross ProfitQuarterly – Q2/20 Vs. Q1/21 Vs. Q2/21YTD – 6M20 Vs. 6M21
Unit : Million Baht
Gross Profit 6M20 6M21 YoY Q2/20 Q2/21 YoY Q1/21 Q2/21 QoQAirfreight 55.4 107.8 95% 16.5 66.8 305% 41.0 66.8 63%Sea freight 11.6 12.8 10% 5.8 8.0 37% 4.8 8.0 66%Logistics 25.6 40.6 59% 15.4 16.9 9% 23.7 16.9 (29%)Chemical 66.4 100.4 51% 34.0 51.7 52% 48.8 51.7 6%Total Gross Profit 159.0 261.7 65% 71.7 143.4 100% 118.3 143.4 21%Gross Profit Consol 1/ 156.9 254.2 62% 70.5 137.4 95% 116.8 137.4 18%GPM 20.8% 19.9% 20.3% 21.4% 18.5% 21.4%
Remark: 1/ After eliminating inter-company transactions.
41%
5%16%
38%35%
7%16%
42%
Gross Profit Composition Q2/2021Gross Profit
Gross Profit (Million Baht) Airfreight Sea freight Logistics Chemical Total6M20 55.4 11.6 25.6 66.4 159.06M21 107.8 12.8 40.6 100.4 261.7
% Proportion
6M216M20
Remark : *These figures shown are gross numbers before eliminating Inter-company transactions.
Chemical AirfreightChemical
Logistics
Airfreight
57.2
163.2
7.6%
12.8%
-2.0%
3.0%
8.0%
13.0%
6M/20 6M/21 -
50.0
100.0
150.0
34.7
85.7 77.5 85.710.0%
13.4%12.2%
13.4%
-
50.0
100.0
Q2/20 Q2/21 Q1/21 Q2/210.0%
5.0%
10.0%
Performance Q2/2021 – Net ProfitQuarterly – Q2/20 Vs. Q1/21 Vs. Q2/21YTD – 6M20 Vs. 6M21
Unit : Million Baht
Net Profit 6M20 6M21 YoY Q2/20 Q2/21 YoY Q1/21 Q2/21 QoQNet Profit Consol 57.2 163.2 185% 34.7 85.7 147% 77.5 85.7 11%NPM 7.6% 12.8% 10.0% 13.4% 12.2% 13.4%
Analysis
Overall Performance 6M2021
Unit : Million Baht 6M20 6M21 Change%
Change+ / (-)
Revenues from sales and services 754.2 1,274.6 520.3 69.0%Costs of sales and services 597.3 1,020.3 423.0 70.8%Gross profit 156.9 254.2 97.3 62.0%Gross profit margin (%) 20.8% 19.9% (0.9%)Other income 7.4 6.2 (1.2) (16.2%)Selling expenses 32.8 38.6 5.8 17.8%Administrative expenses 135.0 131.2 (3.8) (2.8%)Gain (loss) on exchange rate - net 0.1 0.3 0.2 248.6%Financial Cost 14.0 14.5 0.4 3.2%Share of profits from investment in Asso&JV 76.1 100.0 23.9 31.5%Net profit 57.2 163.2 106.0 185.2%Net profit margin (%) 7.6% 12.8% 5.2%
▪ Selling expenses increased corresponding to an increasein revenue, while Administrative expenses were wellmanaged, hence SG&A increased only about 1.2%
▪ JV Gains from Around Group and DGP Singaporecontinue growing. Also, JVs in Sea freight group – bothCK Line and ECU – contributed outstanding profits dueto the higher freight rates.
▪ Revenue and Gross Profit increased from all businessunits but mainly from Airfreight and Chemical BUs
▪ Net Profit of THB 163.2 million is greater than the wholeyear Net Profit in 2020 of THB 162.5 million, an increaseof 185.2% YoY
JV & Associated Performance
Unit : THB million6M20 6M21 YoY
Revenue Net ProfitShare profits
Revenue Net ProfitShare profits
Share profits
Airfreight related group 2,580.20 136.62 61.17 3,583.49 165.54 74.24 21%
Teleport (Thailand) Co., Ltd. TLP 348.04 7.67 3.78 436.31 15.84 7.92 110%
Around Logistics Management Co., Ltd. AROUND 1,218.76 83.04 41.82 2,054.23 118.30 57.29 37%
SAL Group (Thailand) Co., Ltd. SAL - (36.35) (7.14)* - (37.26) (10.52) n.m.
Others 1,013.41 82.25 22.71 1,092.95 68.67 19.56 (14%)Sea freight related group 204.06 6.97 3.12 342.77 25.03 10.96 251%
ECU Worldwide (Thailand) Co., Ltd. ECU 178.41 6.44 2.77 303.56 13.03 5.60 102%
CK Line (Thailand) Co., Ltd. CKT 25.65 0.52 0.35 39.21 11.99 5.35 1415%Chemical related group 193.49 25.89 12.14 290.70 34.00 16.24 34%DG Packaging Pte Ltd DGPS 124.98 22.65 10.31 213.03 31.86 14.92 45%Others 68.52 3.23 1.83 77.67 2.14 1.31 (28%)New Business/E-Commerce related - (1.15) (0.36) 443.15 5.64 (1.42) n.m.Grand Total 2,977.76 168.32 76.07 4,660.11 230.21 100.02 31%
* Performance Q2/20 only at 52.8% before reduce portion to 25% in September 2020
Financial Status as of 30 June 2021 Financial Ratio
Liability
EquityAsset
Ratio YE19 YE20 Q6M21
Company PerformanceROE (%) 1/ 13.3% 12.6% 18.9%Collection Period (days) 2/ 61.6 105.4 72.8 Payment Period (days) 68.8 104.4 59.4 Debt PerformanceCurrent Ratio (times) 1.2x 0.9x 0.9xD/E Ratio (times) 0.7x 0.9x 0.8xIBD/E Ratio (times) 0.3x 0.6x 0.5xDSCR (times) 2.9x 1.6x 2.3xProfitability PerformanceGross Profit Margin (%) 16.1% 20.8% 19.9%EBITDA Margin (%) 8.9% 18.3% 19.1%Net Profit Margin (%) 6.1% 10.1% 12.8%EPS (Baht per share) 0.27 0.27 0.27Trailing 12M EPS (Baht per share) 3/ 0.27 0.27 0.44
Remark : 1/ Trailing 12M Net Profit2/ Changed the calculation formula to be in accordance with SET3/ Adjusted EPS based on existing shares at that time
Core Asset Million BahtCash 107AR 538PPE 198Investment (JV&Asso) 1/ 1,433
Core Liability Million BahtAP 327IBD2/ 772
Unit : Million Baht
Remark : 1/ DGP THB 266 million, Around THB 513 million, GV THB 65 million and ATP 105 million2/ Short-term loan THB 260 million / Long-term loan THB 315 million and Leasing THB 197 million
Financial Health Q2/2021
2,680
1,509
1,172
Asset Liability and Equity
1. Our Business
2. Q2/2021Financial Performance
3. Business Outlookfor Q3/2021
o CK Line’s New Services and Cargo Space Expansion: Introduced 2 new services, starting from the end of Q2/2, and hasincreased freight area and container volumes to support increased cargo volume.
o Allowing the Company to accommodate high-season demands in Q3/2021 and generate more income from related services.
o Cargo Flight Service Expansion: Adjusted cargo flight services routes tocover important regional routes and increased flight frequency.
o Freighter Aircraft: Teleport will offer freighter aircrafts (cargo flights) withhigher frequency and more routes starting from the end of Q3/2021 or atthe latest in Q4/2021.
Business Plan Q3/2021Quarter 3/2021 will be the beginning of high season for international freight and related logistics service and the volume of domestic parceldelivery, particularly e-commerce and online sale platforms will increase due to the country’s lockdown.
Business Plan Q3/2021
o International Logistics Business: Chemical and dangerous goods logistics services, via both air and sea freight,continuously increase as Thailand’s chemical export grows.
o Warehouse for Chemical and Dangerous Goods : The rate of utilization and volume of services are likely to continueto increase.
o Laws relating to storage of chemicals and dangerous goods: The laws relating to storage of chemicals anddangerous goods by regulators in the future will be more stringent and hence the demand are likely to increase.
o International Logistics Business: Generating income and profitability from international logistics as Thailand’s importand export of medicine, medical supplies and equipment continues to grow as a result of the Covid-19 outbreak.
o Warehouse, Fulfillment and Domestic Distribution Services: Expedited the development of logistics and fulfilmentservices to e-commerce customers and new business projects.
o E-Commerce Enabler: Prepare to introduce a new “E-Commerce Enabler” service.
Business Strategies for Business Development
• Restructuring the GSA business as part of the strategic planningto become a leading regional GSA, covering Thailand, HongKong, Singapore, Vietnam, Myanmar and Cambodia.
• Currently the group is acting as GSA for more than 20 regionalairlines.
Regional GSA for Airlines
1
Local Logistics for E-Commerce Customers
2 • Increase stake in A.T.P. Friends Services Co., Ltd. (Shipsmile) to38% with target more than 3,000 branches by the end of 2021
• Cooperation with Kerry Express (Thailand) PLC to use Shipsmileas a pick-up point.
• Employing the Company’s strengths and partners, such asMakesend, to develop sameday delivery logistics services forShipsmile.
Business Strategies for Business Development (Con’t)
Rail Logistics3 • Developing logistics services via local railway system.
Temperature-controlled Transportation
4• Incorporation of Cool Chain Logistics Pte.
Ltd. in Singapore to accommodate logisticsservice for medicines and medical devicesthat require temperature control duringtransportation
• Conducted a feasibility study and set a goalto become a logistics service provider forvaccines in Asia using Singapore as thecenter.