The RIGHT solution, the RIGHT partner

The RIGHT solution, the RIGHT partner 2


▪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


669.3

335.6 346.6 335.6

Q3/19 Q3/20 Q2/20 Q3/20

2,063.7

1,089.9

9M19 9M20

Performance Q3/2020 – Revenue Quarterly – Q3/19 Vs. Q2/20 Vs. Q3/20

Revenue 9M19 9M20 YoY Q3/19 Q3/20 YoY Q2/20 Q3/20 QoQAirfreight 1,681.4 589.81/ (65%) 539.4 164.71/ (69%) 182.91/ 164.71/ (10%)Sea freight 64.1 35.22/ (45%) 20.7 12.52/ (40%) 10.92/ 12.52/ 14%Logistics 139.3 120.6 (13%) 43.5 42.0 (4%) 43.7 42.0 (4%)Chemical 399.3 379.8 (5%) 137.4 129.3 (6%) 120.1 129.3 8%Total Revenue 2,284.1 1,125.5 (51%) 741.0 348.5 (53%) 357.6 348.5 (3%)Revenue Consol 3/ 2,063.7 1,089.9 (47%) 669.3 335.6 (50%) 346.6 335.6 (3%)

YTD – 9M19 Vs. 9M20Unit : Million Baht

Remark: 1/ Airfreight revenue did not include GSA revenues from servicing AirAsia in the approximate amount of THB 100 million, THB 250 million and THB 4 million in Q1/20, Q2/20 and Q3/2020 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.


52%

3%11%

34%

74%

3%

6%

17%

Revenue Composition Q3/2020Revenue

Revenue (Million Baht) Airfreight Sea freight Logistics Chemical Total9M19 1,681.4 64.1 139.3 399.3 2,284.19M20 589.8 35.2 120.6 379.8 1,125.5

% Proportion

Chemical

Airfreight

Chemical

Sea freight

Airfreight

Sea freight

9M209M19

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


111.975.7 70.5 75.7

16.7%

22.6%20.3%

22.6%

5.0%

10.0%

15.0%

20.0%

25.0%

Q3/19 Q3/20 Q2/20 Q3/20 -

100.0

200.0

343.7

232.616.7%

21.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

9M19 9M20 -

100.0

200.0

300.0

400.0

Performance Q3/2020 – Gross ProfitQuarterly – Q3/19 Vs. Q2/20 Vs. Q3/20YTD – 9M19 Vs. 9M20

Unit : Million Baht

Gross Profit 9M19 9M20 YoY Q3/19 Q3/20 YoY Q2/20 Q3/20 QoQAirfreight 167.6 76.01/ (55%) 54.8 20.6 (62%) 16.5 1/ 20.6 25%Sea freight 45.4 17.7 (61%) 14.3 6.1 (57%) 5.8 6.1 5%Logistics 39.5 39.6 0% 12.4 14.0 13% 15.4 14.0 (9%)Chemical 95.9 102.6 7% 32.9 36.2 10% 34.0 36.2 6%Total Gross Profit 348.4 235.9 (32%) 114.3 76.9 (33%) 71.7 76.9 7%Gross Profit Consol 1/ 343.7 232.6 (32%) 111.9 75.7 (32%) 70.5 75.7 7%GPM 16.7% 21.3% 16.7% 22.6% 20.3% 22.6%

Remark: 1/ After eliminating inter-company transactions.


48%

13%

11%

28% 32%

8%

17%

43%

Gross Profit Composition Q3/2020Gross Profit

Revenue (Million Baht) Airfreight Sea freight Logistics Chemical Total9M19 167.6 45.4 39.5 95.9 348.49M20 76.0 17.7 39.6 102.6 235.9

% Proportion

9M209M19

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

Chemical AirfreightChemical

Airfreight


42.857.0

34.7

57.0

6.4%

17.0%

10.0%

17.0%

-

20.0

40.0

60.0

Q3/19 Q3/20 Q2/20 Q3/200.0%

5.0%

10.0%

15.0%

136.1

114.2

6.6%

10.5%

-1.0%1.0%3.0%5.0%7.0%9.0%11.0%

9M19 9M20100.0

110.0

120.0

130.0

140.0

Performance Q3/2020 – Net ProfitQuarterly – Q3/19 Vs. Q2/20 Vs. Q3/20YTD – 9M19 Vs. 9M20

Unit : Million Baht

Net Profit 9M19 9M20 YoY Q3/19 Q3/20 YoY Q2/20 Q3/20 QoQNet Profit Consol 136.1 114.2 (16%) 42.8 57.0 33% 34.7 57.0 64%NPM 6.6% 10.5% 6.4% 17.0% 10.0% 17.0%


Analysis

Overall Performance 9M2020

Unit : Million Baht 9M19 9M20 Change%

Change+ / (-)

Revenues from sales and services 2,063.7 1,089.9 (973.9) (47.2%)Costs of sales and services 1,720.0 857.2 (862.8) (50.2%)Gross profit 343.7 232.6 (111.1) (32.3%)Gross profit margin (%) 16.7% 21.3% 4.7%Other income 8.2 55.9 47.7 581.7%Selling expenses 61.2 49.0 (12.2) (19.9%)Administrative expenses 209.5 196.1 (13.4) (6.4%)Gain (loss) on exchange rate - net 10.0 (0.3) (10.3) (103.1%)Financial Cost 10.7 21.5 10.8 100.4%Share of profits from investment in Asso&JV 71.5 85.2 13.7 19.2%Net profit 136.1 114.2 (21.9) (16.1%)Net profit margin (%) 6.6% 10.5% 3.9%

▪ Gain (loss) on exchange rate decreased as the Companycompletely paid all accrued expenses for acquisition ofDGP & Around in Q1/20

▪ Financial Cost from the cost of borrowing and the right ofuse due to adoption of new accounting standard for theamount of THB 17 million and THB 4 million,respectively.

▪ Decrease in SG&A resulting from cost managementmeasures that reduced expense to support a decrease inrevenue due to the Covid-19 impact, and from thebusiness restructuring of TLP-TH.

▪ Provision for extraordinary expense during the 2nd and 3rd

quarter 2020 for the total amount of THB 29 million.

▪ Profits from Asso&JV slightly increased although AroundGroup and DGPS achieved their performance targetssince the Company take loss from AOTGA for amount ofTHB 27 million in Q3/20

SAL’s gain on disposal of investment in a subsidiary andrevaluation of fair value for the total amount of THB 50million.


Financial Status as of 30 September 2020 Financial Ratio

Liability

EquityAsset

Ratio YE18 YE19 9M20

Company Performance

ROE (%) 1/ 13.0% 13.3% 11.4%Collection Period (days) 42.1 45.9 63.8 Payment Period (days) 61.1 67.8 82.7 Debt Performance

Current Ratio (times) 2.1x 1.2x 0.9xD/E Ratio (times) 0.6x 0.7x 0.9xIBD/E Ratio (times) 0.0x 0.3x 0.7xDSCR (times) 14.5x 3.0x 1.2xProfitability Performance

Gross Profit Margin (%) 17.5% 16.1% 21.3%EBITDA Margin (%) 7.9% 8.9% 18.0%Net Profit Margin (%) 5.4% 6.1% 10.5%EPS (Baht per share) 0.25 0.27 0.19Trailing 12M EPS (Baht per share) 2/ 0.25 0.27 0.23

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

Core Asset Million Baht

Cash 73AR 471PPE 184Investment (JV&Asso) 1/ 1,200

Core Liability Million Baht

AP 227IBD2/ 846

Unit : Million Baht

Remark : 1/ DGP THB 266 million, Around THB 513 million and GV THB 65 million2/ Short-term loan THB 180 million / Long-term loan THB 405 million and Leasing THB 261 million

Financial Health Q3/2020

2,384

1,150

1,244

Asset Liability and Equity


389 401 398 402347 339 345 377

321

167 192-11% -16% -13% -6% -8%

-51% -44%

-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 Q3

60,588

18,525

9M/19 9M/20

1,764 1,731

11,548

5,539

13,312

7,270

9M/19 9M/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

▪ In Q3/20, Air Services volume slightly improved fromQ2/20 as AirAsia was able to partially operate mainlyin domestic but overall services in 2020 still greatlyaffected by Covid-19.

▪ WFF: Although overall volume hugely dropped due toimpact from Covid-10, volume in Q3/20 significantlyincreased from domestic and Charter Flight for ThaiPost and other high-yield-generating customers.

▪ Air Cargo Terminal: Financial performance greatlyimpacted following the sharp drop in volume as AGSmainly serves cargo handling for international Air Asiaflights that are mostly being grounded.Average growth -34% for 9M20

2018 2019 2020


1,983 1,525

28,483

5,068

30,467

6,593

9M/19 9M/20

Cargo General Sales Agent (GSA)

Unit : Tons

Performance – Air Business Unit : GSA

Domestic

Export

Impact to Revenue

882Unit : Million Baht

all activitiesFD/XJ / other

airlines

9M/19 9M/20

43

other airlines +

Ramp 352

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 from Q2/20 since most AirAsia flights were grounded from 15th March 2020 with impact from COVID-19 pandemic.

▪ GSA Import Volume was 22,546 and 689 Tons in 9M/19 and 9M/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 and Q3/20.

▪ 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.


866

513

9M/19 9M/20

1,497

2,137

9M/19 9M/20

47,466 42,940

9M/19 9M/20

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

Performance – Sea & Inland-Logistics Business Unit

▪ Volume of Shipping Line Agency (CK Line) decreased due to a decline in Sea freight volume which is affected by Covid-19.

▪ Trailer Services increased both volume and financial performance as we focus more on the business this year.

* Rizhao cease its operations from January 2020. The volume was 31,620 TEU for 6M19.


944 1,067

9M/19 9M/20

289

205

9M/19 9M/20

298,165 376,816

9M/19 9M/20

Delivery (#Order)

Distribution Management & Fulfillment Service Integrated Freight Forwarder

Sea Freight (TEU)Air Freight (Tons)

Performance - Logistics Management Business Unit

▪ Distribution Management & Fulfilment Services volume increased due to a significant growth of E-commerce and an increasing number of new customers.

▪ Air Freight volume greatly affected by the Covid-19 as Airlines ceased their services.

▪ Despite the impact from Covid-19, Sea Freight volume increased from a China Cargo project and from gaining new customers.


2,287 2,194

9M/19 9M/20

15,855

27,852

9M/19 9M/20

3,714

3,586

9M/19 9M/20

5,338 4,209

9M/19 9M/20

102,965

54,227

9M/19 9M/20

Integrated Freight Forwarder

Air Freight (Kgs) Sea Freight (TEU)

ISO Tank Operator (TEU)

Performance - Chemical Logistics Business Unit

▪ Integrated Freight Forwarder volume significantly decreased due to the impact of Covid-19 outbreak. However, financial performance in Q3/20 was improved from higher margin due to limited supply.

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

DG Packaging & Services

Packing Sales (Box) Packing Service (Shipment)

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

▪ Packing Service volume slightly reduced in Airfreight shipment as a result of airport shutdown, but financial performance still improved from last year.


Business Plan Q4/2020

o Outlook Q4/2020: Quarter 4/2020 will be the business high season and will have positive impacts on theCompany’s main business. The Company continues from Quarter 3/2020 to focus on increasing its revenues fromdomestic freight business and logistics related business. This can be seen from increase in the volume ofdomestic air freight business and acquisition of new customers for warehouse, distribution, and E-fulfillmentservices

o Enhance Fulfillment service efficiency for E-commerce and social commerce: develop Centralized FulfillmentStation by installing Sorting Line to enhance service efficiency to support E-Commerce and social commercecustomers. The services is expected to be ready in November 2020

o Focus on domestic Air freight: domestic air freight is expected to continually increase from Q3/2020 particularlyfor fresh vegetables and fruits products such as strawberry

o Cargo Flight: the Company, in cooperation with TLP-TH, will provide Cargo flight services for both inbound andoutbound air freight with more frequent and consistent schedules. The services will start in late October withapproximately 10 routes covering major economic cities in Asia – Hong Kong, Guangzhou, Singapore, KualaLumpur, Seoul and New Delhi etc.


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:

• New Acquisitions: the Company plans to acquire domestic and overseas logistics related business.The Company is in the process of consideration and will be able to conclude its decision by the end ofthe year 2020

• AOTGA ground handling services: AOTGA expects to expand its airport ground handling andpassenger service business to the new airport ─ Phuket International Airport ─ in the late of Q4/2020or early of 2021 (currently provide services at Don Mueng Airport only)

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

• Total Fulfillment Solutions for E-Commerce: Develop platform and total fulfillment solutions for e-commerce customers

Expansion of business through cooperation with business partners

1

Expansion of scope of logistics services

2

Development of logistics services via digital platform

3

Documents

The RIGHT solution, the RIGHT partner