integration

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Opportunity DayCompany’s Performance Year 2018

19 March 2019

integration

innovation

intimacy

integrationinnovationintimacy

AGENDA

Our Business

2 YE2018 Financial Performance

3 Business Outlook for 2019

1

22

Our Business

AIR FREIGHT

SEA FREIGHT& INLAND

TRANSPORT

LOGISTICSMANAGEMENT

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 and Jeju 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 & SPECIALTYLOGISTICS

integration

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intimacy

integrationinnovationintimacy

AGENDA

Our Business

2 YE2018 Financial Performance

3 Business Outlook for 2019

1

8

2,294.6

2,770.6

YE17 YE18

YoY 21%

Performance YE2018 – Revenue

YE17 vs YE18

Revenue YE17 YE18 YoY

Airfreight 1,863.9 2,279.6 22%

Sea freight 87.0 116.6 34%

Logistics 105.4 135.0 28%

Chemical 539.7 561.9 4%

Total Revenue 2,596.1 3,093.1 19%

Revenue Consol 1/ 2,294.6 2,770.6 21%

Remark : 1/ After eliminating inter-company transactions.

Unit : Million Baht

YE17

YE18

▪ Overall revenue grew from increasing services

▪ BU Chemical revenue slightly grew due to decreasing of Packaging sale business

% Revenue Contribution YE17 vs YE18YE17 vs YE18

9

YoY -9%

Performance YE2018 – Gross Profit

Remark : 1/ After eliminating inter-company transactions.

YE17 vs YE18

Unit : Million Baht

Gross Profit YE17 YE18 YoY

Airfreight 320.7 249.9 (22%)

Sea freight 38.5 71.7 86%

Logistics 37.2 36.1 (3%)

Chemical 142.1 132.9 (7%)

Total Gross Profit 538.5 490.6 (9%)

Gross Profit Consol1/ 531.4 484.6 (9%)

GPM 23.2% 17.5%

YE17

YE18

▪ Sea freight BU shows outstanding performance in terms of GP growth

▪ Impacts to GP from Airfreight BU

▪ Change of cost recognition (Selling expense to COGS)

▪ Adjustment of accrued expenses in 2017

% Gross Profit Contribution YE17 vs YE18

531.4484.6

23.2%17.5%

YE17 YE18

10

Performance YE2018 – Net Profit

YE17 vs YE18

Unit : Million Baht

129.6150.7

5.6% 5.4%

YE17 YE18

YoY 16%

Unit : Million Baht YE17 YE18%

Change

Total Revenue 2,294.6 2,770.6 20.7%

Gross Profit 531.4 484.6 (8.8%)

GPM (%) 23.2% 17.5% (5.7%)

Other Income 15.5 18.7 20.8%

Selling Expense 110.9 77.2 (30.4%)

Admin Expense 281.0 295.2 5.0%

(Loss) Gain – Exchange rate (10.2) 7.0 n.m.

P/L from JV & Associate 16.7 33.1 98.2%

EBITDA 202.9 219.1 8.0%

Net Profit Consol 129.6 150.7 16.2%

NPM(%) 5.6% 5.4% (0.2%)

EPS (Baht per share) 0.21 0.25 16.2%

11

Performance Y2018 Analysis

Unit : Million BahtAudited Performa Analysis

YE17 YE18 % Change YE17 YE18 % Change

Total Revenue 2,294.6 2,770.6 20.7% 2,294.6 2,770.6 20.7%

Gross Profit 531.4 484.6 (8.8%) 498.2 /1 484.6 (2.7%)

GPM (%) 23.2% 17.5% (5.7%) 21.7% 17.5% (4.2%)

Selling Expense 110.9 77.2 (30.4%) 77.7 /1 77.2 (0.7%)

Admin Expense 281.0 295.2 5.0% 281.0 295.2 5.0%

P/L from JV & Associate 16.7 33.1 98.2% 16.7 33.1 /2 98.2%

Net Profit Consol 129.6 150.7 16.2% 129.6 150.7 16.2%

NPM(%) 5.6% 5.4% (0.2%) 5.6% 5.4% (0.2%)

Note

1. Change of cost recognition (“Selling expense” to “Cost of sales and services”) resulting in decreasing Gross Profit Margin, while selling expense significantly decreased by 30.4%

2. Recognized 2H18 profit of DG Packaging Pte amount of 10.9 million baht, while existing Company’s Associated and Joint Ventures profit increased by 33%

12

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% 20.2%16.6%

YoY 113%

16.5%17.3%

32.61THB:USD

Note : Exchange rate as of 26 Feb 2019 = 31.29 THB:USDExchange rate Average Y17 = 34.10 THB:USD Exchange rate Average Y18 = 32.49 THB:USD

32.85THB:USD

40.3 43.1

26.1 20.1 25.938.4 43.7 42.7

146.5 143.2

123.6 117.8 120.4 116.2 121.0 126.9

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

Net Profit Total Gross Profit

13

1,900

1,202

698

Asset Liability andEquity

YE2018

Financial Health YE2018

Financial Status Financial Ratio

Liability

EquityAsset

Ratio YE17 YE18

Company Performance

ROE (%) 1/ 17.8% 13.0%

Collection Period (days) 56.9 42.1

Payment Period (days) 93.7 61.1

Debt Performance

Current Ratio (times) 3.1x 2.1x

D/E Ratio (times) 0.4x 0.6x

IBD/E Ratio (times) 0.0x 0.0x

Interest Coverage Ratio (times) 27.0x 89.7x

Profitability Performance

Gross Profit Margin (%) 23.2% 17.5%

EBITDA Margin (%) 8.8% 7.9%

Net Profit Margin (%) 5.6% 5.4%

EPS (Baht per share) 0.21 0.25

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

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

Asset THB mm

Cash 732

AR 420

PPE 239

Lia THB mm

AP 443

IBD 33

14

Outstanding Performance with Highest Revenues and Net Profit

2,295

2,771

YE17 YE18

130 151

5.6%* 5.4%*

YE17 YE18

Net

pro

fit

Rev

en

ue

JV & Associated

✓ Recognized half year 2018 performance of DG Packaging (SN) more than 10.9 MB

✓ Performance from other JV&Associated growth 33%98%

86%✓ Outstanding performance in terms of GP growth

through strategic alliance with Rizhao Shipping Lines

✓ Airfreight’s revenue whom is core business still continue growth 22%

✓ International warehouse business at DMK is more successful than expected and continue growth

0.17✓ Dividend payment of 0.17 Baht per share in May 2019

✓ Dividend pay-out ratio is 68.2% (Consolidated NI2019)

Unit : MB

Remark : * Net Profit Margin

22%

integration

innovation

intimacy

integrationinnovationintimacy

AGENDA

Our Business

2 YE2018 Financial Performance

3 Business Outlook for 2019

1

16

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

BUStrategy

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

3. Chemical

Inorganic

4. Logistics

• Growth via the current customer base and new customers in import businesses by leveraging new IT platform

Inorganic

17

Business Outlook - Air Freight Business (1)

▪ Continually expand customer based in International E-Commerce business from

China and Hong Kong

▪ Expect to regain Domestic business from Thailand Post in 2H/2019

Cargo General Sales Agent

(GSA)

▪ Anticipating an increase in revenue at a higher growth rate from services inDMK

▪ Intend to expand and duplicate its services to other domestic airports inThailand

WholesaleFreight

Forwarder

▪ Increase volume from the expansion of new routes and number of flights of main alliance airlines ― Thai AirAsia & Thai AirAsia X

▪ Maximize the utilization capacity of existing service routes

Inorganic Growth- SAL

▪ In January 2019, the company invested in 14.95% shares of SAL Group, a company conducting airline and passenger ground services, as our strategic partner to increase opportunities and grow our businesses.

Airport Cargo Terminal

18

Business Outlook - Air Freight Business (2)

Inorganic Growth- Around Logistics

▪ Acquisition of 50% shares in Around Logistics Management Co., Ltd, a company

is registered in Hong Kong

Benefits to iii

Expansion and Growth

1

Diversification

2

▪ A remarkable stepping stone to further expand Air GSA regional network

▪ To capture growth and volume of transportation and logistics services in one of the

biggest trading hub in the world, Hong Kong and Singapore

▪ To expand Airline Services coverage, covering 24 countries and more than 22 airlines,

with Hubs in Hong Kong, Singapore and high economic growth country like Vietnam

▪ To boost iii’s net profit by an estimated 50% of HKD 20 mm through accounting

consolidation of the JV

▪ Manage iii’s risk of reliance on one airline (Thai Air Asia and Thai Air Asia X) and diverse

its revenue stream

19

Airline Services Coverage

III’s and Around Logistics ’s Airline services coverage

20

▪ Continual growth in 2019. Surge in services due to an increase in vessel space by 30%, and expand new servicing ports

▪ Plan to expand businesses related to containers transportation by utilizing partners’ strengths and opportunities in EEC project

▪ Thai― China sisters ports

Rizhao Port

Business Outlook – Sea Freight & Inland Transport

Sea Freight

21

▪ Focus on acquiring Key Accounts ― export/import―customers, especially

importers that are potential user of other related logistics services.

▪ Plan to develop services for E-Commerce customers with domestic

distributions through Air transportations.

International Freight

Forwarding Service

Warehouse and Distribution

Service

Business Outlook – Logistics Management

22

▪ Looking for new strategic location for warehouse expansion since the existing one is already fully utilized.

▪ Develop warehousing and related services specialized for Hazardous and Chemical goods by focusing on areas with service potentials such as East Economic Corridor (EEC)

▪ Company will fully recognize profit from its investment in DG Packaging (DGP) Pte. (Singapore) from 2019 and onward.

Warehouse Expansion

Performance from JV

Business Outlook – Chemical & Specialty Logistics

23

▪ In 2019, despite a more active transportation volume in both Air and Sea, the international freight rates trend is expected to maintain and holds close to the rates in the latter half of 2018.

▪ Nonetheless, the Company concentrates on its Logistics Management, which focuses on service qualities, and profits from the selling margin allowing the Company to reduce the impact from the declining freight rates.

▪ Exchange rates is still in fluctuation. Nevertheless, the Company manages it exchange rate risks by engaging in forward FX contracts and balancing its foreign incomes and expenses (Natural hedging)

▪ Moreover, the Company will also focuses on increasing THB income from export and domestic services.

International Freight Trends

Currency Exchange

Business Outlook – Ongoing Business