People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs SF Express

China’s First Air Express Cargo Hub

Presenter: Wai To

People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs

Introduction to SF Express Project Concept Cooperation model

SF Express

People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs

2.3 3.7 5.7

9.2

14.0

20.6

2010 2011 2012 2013 2014 2015

Express shipment volume in China (billion shipments)

• China is the biggest express market in the world

• SF Express ranks No.1 in terms of revenue

0

1000

2000

3000

4000

5000

2009 2010 2011 2012 2013 2014

其他货邮量 顺丰航空货量

• Air cargo carried by SF Airline occupies over 20% of domestics air cargo volume

Air cargo volume in China (thousand tonnes)

SF Express is the top player in China

SF Air Cargo Volume Others Volume

SF Express

People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs

Staff SF employs nearly 400,000 employees in large and medium-sized cities in greater China (mainland, Hong Kong, Macau and Taiwan) and overseas countries, providing excellent services to our customers.

We operate more than 50,000 vehicles, ensure the timely and safe delivery for all the shipments.

Vehicles

400,000

50,000 SF Express

People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs

Major Customers

SF Express provides comprehensive logistics services Express delivery Supply chain solutions

Major Customers

E-commerce logistics

Major Customers

SF Express

Financial services

SF Pay: online payment and settlement tools Supply chain financing

Customized solutions for industry verticals in fresh food, pharmaceuticals, auto parts, and electronic products

One-stop e-commerce logistics services incl. order fulfillment, warehousing, distribution, return service and etc.

Series of time-definite products to fulfill business and individual customer needs

People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs

SF Airline – China’s largest cargo fleet SF Express operates a fleet of 50 aircrafts

SF Express

People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs

Nearly 400 warehousing facilities and distribution centers

SF Express

People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs

Zhengzhou

Xiamen

Xi'an

WuxiWuhan

Weifang

Tianjin

Shenzhen

Shenyang

Shanghai

Quanzhou

Qingdao

Ningbo

Nantong

Hong Kong

Hangzhou

Dalian

ChongqingChengdu

Changzhou

Canton

Beijing

Wenzhou

TaipeiKunming

Harbin

700 flights per week

32 domestic gateways

Utilizes 42% commercial flights to

carry 2400 tons/day

Covers USA, Australia, Japan, South Korea, Singapore, Malaysia and Thailand etc.

SF Express air network

SF Express

People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs

Introduction to SF Express Project Concept Cooperation model

SF Express

People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs

• Time-sensitive • Next-Day/Next-Morning

delivery

• Reliability • 98%+ network reliability

• Full-scale Coverage • Nationwide/Global

Consumer Electronics Pharmaceutical Medical Devices Fashion SMEs …

Lean Manufacturing

Inventory Control

Customized Service

Customer Service

E-commerce R&D

Key Characteristics of air express

Impact on economic activities（1）

Impact on industries（2）

(1)”The Economic Impact of Express Carriers in Europe “ Oxford Economic Forecasting (2)”The Parcel Services Industry in the U.S.: Its Size and Role in Commerce” by E.K.Morlok and Etc.

An advanced air express network is the backbone of a high-efficient and open economy

SF Express

People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs

Louisville Volume：2.22m tons Rank：7

Memphis Volume：4.14m tons Rank：2

Leipzig Volume：0.88m tons Rank：26

Air cargo hub is key to advanced express network There are three in the world, we build the 4th!

SF Express

People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs

Airport Airport Industry Park Industrial Zone Living Supporting Facilities Passengers Reserved Portal Public &Commercial Supporting

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3

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2

2

Cargo Airport 1 Aerotropolis Logistics Park 2

Surrounding industrial zone 3

Site location and functionality

SF Express

People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs

Introduction to SF Express Project Concept Cooperation model

SF Express

People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs

SF Express Government National

development fund

Asset mgmt company

Operation mgmt

company

Deal structure

• Positioning: private driven, with public features

• Entity: government vs. SF Express

• Functionalities: tailor for SF Express

• Funding: public + private

SF Express

Key characters