CJ Logistics

3Q 2023

6 Nov. 2023
DISCLAIMER
CONTENTS

01 3Q23 02 Business Overview 03 Appendix

Company Highlight & Strategy

Company Highlight Parcel·E-commerce

3Q23 Financials CL(W&D, P&D)

Earnings by Segments Global

3Q23 Company Highlight
01.3Q23 Company Highlight

Company Highlight

3Q23 Sales 2.94 tril. KRW(YoY -5.7%), OP 124.8 bil. KRW(YoY +15.9%), NI 57.7 bil. KRW(YoY -4.2%)
Earnings Forwarding business revenue dropped due to global economic downturn
Stable earnings growth based on business competitiveness and improved profit structure of e-commerce/CL

Parcel·E-commerce New order increased in E-commerce(Vertical,CBE) and continued cost efficiency leaded to strong profit growth
Securing e-commerce volume by broadening fulfillment service scope and providing differentiated delivery services

CL Achieved remarkable improvement in OP by new orders and productivity enhancement

Key Sales increased due to new order expansion of 1PL customers, secured profit growth momentum by improving operational efficiency
Business based on advanced technology

Progress
Global Sales decreased caused by global trade volume slowdown and continued weak FF market
Targeting to strengthen fundamental by developing niche specialization in forwarding business and profit structure improvement of
overseas business

E&C Performed revenue growth and profit recovered based on new order intakes of 1 tril. KRW above
including key customers

5
01.3Q23 Company Highlight

3Q23 Financials

2.94 tril. KRW of sales(-5.7% YoY), 124.8 tril. KRW of OP(+15.9% YoY)
and 57.7 tril. KRW of NI(-4.2%)

Sales Operating Profit, OPM Net 순이익

Income
(Unit: bil KRW) (Unit: bil KRW) (Unit: bil KRW)

-5.7% +15.9% -4.2%

124.8
3,113.4
2,937.1
107.7 60.2 57.7

3.5% 4.2%

3Q22 3Q23 3Q22 3Q23

3Q22 3Q23

Despite stable growth in domestic market

Delivered high OP up 15.9% YoY by enhancing
based on service competitiveness, NI down 4.2% YoY mainly due to
cost efficiency based on technology and
Sales down 5.7% YoY due to financial expenses
profit structure improvement
weak global macro environment

6
01.3Q23 Company Highlight

Earnings by segments
Sales/OP by Segment Yearly trends of Sales/OP
(Unit: bil. KRW) (Unit: bil. KRW)
Parcel·E-commerce CL Global E&C Sales Operating Profit
YoY
12,130.7
+6.9%
11,343.7
Sales Operating Profit 10,781.1 YoY
10,415.1 411.8 +19.7%
9,219.7
170.4 9.5 YoY +25.0% 343.9
325.3
307.2
258.5 YoY +51.7% 7,110.4
7.6 15.4 242.7
YoY -44.6% 235.7
YoY
OPM 3.3% 2.6% 2.9% 3.0% 3.0% 3.4% +0.4%p
27.8
1,325.9
2017 2018 2019 2020 2021 2022
1,054.2 YoY -20.5%
YoY +44.0%
44.2
Sales/OP BY Quarter (Unit: bil. KRW)

35,000
Sales Operating Profit 1800

3,113.4 YoY
30.7 2,937.1
2,774.5 2,846.5 -5.7%
1600

30,000

2,621.8
2,418.4 1400

25,000

YoY
703.0 +15.9%
1200

723.4 124.8
YoY +2.9% 20,000

1000

YoY +33.9% 107.7

105.3
55.7
92.5
800

15,000

88.7
41.6 10,000
600

914.1 901.0 YoY -1.4% 52.9

400

YoY
5,000

200

OPM 2.2% 3.4% 3.3% 3.7% 3.5% 4.2% +0.7%p

3Q22 3Q23 3Q22 3Q23 0 0

3Q18 3Q19 3Q20 3Q21 3Q22 3Q23

7
01.3Q23 Company Highlight

3Q23 Financials
Consolidated P&L Consolidated Balance Sheet
(Unit: bil. KRW) 3Q22 3Q23 YoY (Unit: bil. KRW) As of 2022 3Q23 YoY

Sales 3,113.4 2,937.1 -176.3 -5.7% Total Assets 9,693.3 9,779.6 +86.3

COGS 2,804.2 2,602.6 -201.6 -7.2% Current Assets 2,956.5 2,841.3 -115.2

Gross Profit 309.2 334.5 +25.3 +8.2% Cash and Cash Equiv. 924.8 677.0 -247.8

SG&A 201.5 209.7 +8.2 +4.0% Non-current Assets 6,736.8 6,938.3 +201.5
Operating
107.7 124.8 +17.1 +15.9% Tangible Assets 3,364.2 3,410.8 +46.6
Profit

(%) 3.5% 4.2% +0.7%p Intangible Assets 1,197.5 1,200.9 +3.4

Non- Total Liabilities 5,659.0 5,550.8 -108.2

Operating -22.3 -42.5 -20.2 -
P&L Borrowings 2,337.9 2,015.7 -322.2
Profit Before
85.4 82.3 -3.1 -3.6% Lease Liabilities 1,266.0 1,394.9 +128.9
Tax

(%) 2.7% 2.8% +0.1%p Total Equity 4,034.3 4,228.8 +194.5

Net Income 60.2 57.7 -2.5 -4.2% Net Borrowings 1,413.1 1,338.7 -74.4

(%) 1.9% 2.0% +0.1%p Debt/Equity Ratio 140.3% 131.3% -9.0%p

8
Business Overview & Strategy

9
 02.Busienss Overview

Parcel•E-Commerce

Parcel E-Commerce
Sales ▪ Volume declined caused by off-line purchase increase due to long Sales ▪ Continued growth and rise in demand of fulfillment service
holiday despite new order expansion
‐ ASP 2,402 KRW(YoY +4. 4%, +101KRW / QoQ +1.1%, +25KRW) ‐ Fulfillment Vol. 14.2M Box(YoY +20.7%)
‐ Vol. 382M Box(YoY -6.8% -28M Boxes, QoQ -3.5%, -14M Boxes) ▪ New order expansion in vertical commerce and SME sellers
▪ Targeting to focus on fast-growing market by enhancing service ‐ 1,031 customers (YoY +309.1%, QoQ +22.7%)
competitiveness
‐ Volume of E-platform ‘A’ : 1Q 3.5MBox(QoQ+ 185%) → 3Q 9.0M Box(QoQ+70%)
Operating ▪ (F/C+LMD) Volume expansion accelerated OP growth
Operating ▪ Significant profit improvement through cost efficiency Profit
Profit ▪ (New LMD) Network and resource control contributed to
▪ Highly profitable volume proportion increased by providing profit improvement
Guaranteed delivery service

Parcel∙E-Commerce 3Q23 cumulated earnings trend E-Commerce(stand-alone) 3Q23 cumulated earnings trend
3Q22 Cum. 3Q23 Cum. (Unit : bil. KRW, 10M box,%)
3Q22 Cum. 3Q23 Cum. (Unit : bil. KRW, mil. Box,KRW)

2,733.0 419.7
166.6 2,388 188.8
2,684.6 122.4 2,287
117.0 149.5 300.9 +39%
+2% 1,267 +4% +26%

+32% 1,031
10.9
-4% +4x
Turned
profit
-1.7 252

Sales
매출액(bil. KRW) 영업이익
OP (bil. KRW) Vol.물동량
(M.l . Box) ASP (cum.ASP
average, KRW) Sales
매출액 (bil. KRW) 영업이익 Vol. (10,000
물동량 Box) (As
고객수of 3Q)
OP (bil. KRW)
10
 02.Busienss Overview

Parcel•E-Commerce

Parcel E-Commerce
▪ Targeting for securing fast growing customers based on competitiveness ▪ Providing category specialized fulfillment service to expand business scope

‐ Expand new orders in fashion/beauty vertical commerce and ‐ Strengthening competitiveness by full-scale launching of Guaranteed,
large platform by providing differentiated services(Guaranteed delivery) Sunday, and Same-day delivery services
with outstanding service level(Next-day delivered rate) ‐ Expanding client pool with customized service
‐ Services expansion in response to increased demand such as direct ‐ Shortening delivery time to promote online purchase and attract
purchase from global e-commerce platforms customers to use guaranteed service

Monthly Volume and ASP Trends Key Index for delivery service
(Unit : Mil Box) Volume ASP (Unit : krw)
Next day delivery rate Guaranteed delivery rate
200 2,500
97.6% 98.1% 98.4% 98.5%
2,450
150 2,400
2,350
100 92.6% 93.4%
2,300 91.1%
88.1%
50 2,250
83.8%
2,200
2,150
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 3Q22 4Q22 1Q23 2Q23 3Q23
2022 2023 11
 02. Business Overview

CL(W&D, P&D)

723.4 bil. krw 44.2 bil. krw

W&D, P&D

Sales ▪ (P&D) ASP increased, and port volume expanded Operating ▪ Enhanced profitability based on productivity improvement,
‐ Automobile(YoY +4.7%), Coal(YoY +6.8%) volume increased Profit recording the highest operating profit margin
‐ Per capita productivity improved 9.7% in Sep compared to the 1Q
▪ (W&D) Sales increased as new orders won with Plug-in strategy (Contributed +2.3%p in OPM)
based on operational competitiveness
‐ 4 Anchor clients, 63 Plug-in clients newly obtained ▪ Enlarged profits by increased ASP and improvement of core business structure
(3Q accumulated) ‐ Improved operational processes and ASP increase
※ W&D : Warehousing & Distribution, P&D : Port & Delivery,
Plug-in : After winning new large anchor clients, obtain new SME clients of the similar industry type

Sales Breakdown P&D Port Handling Volume Trend

Steel Automobile Coal Grain&Feed (Unit : Thousands Tons)
P&D W&D CL OPM (Unit : BilKRW)
6.1% 23,351
5.2% 5.2% 5.3%
4.4% 22,074 21,799
20,848 20,666 402
407 476
500 490 4,811
4,167 4,859
4,550 4,039
298.0 290.4 288.7 303.6 320.8
6,699 7,253
5,894 6,213 6,169

405.0 412.9 390.7 410.0 402.6 10,802 10,886

9,905 9,923 10,296

3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23
12
 02. Business Overview

CL(W&D, P&D)

Strategy & Outlook

productivity innovation project
▪ Secure competitiveness by promoting the integration and
reorganization in terms of channels and verticals
- Price competitiveness increased due to productivity improvement based
on enlargement and consolidation of bases by region/operational type
- Securing growth momentum through strengthening joint N/W
by vertical and expanding Plug-in sales of 1PL clients
▪ Increasing cost efficiency via productivity management
- Shipping cost/sales 33%(1Q 36%) , Unloading costs/sales 26%(1Q 29%)
▪ Strengthen CL capabilities and apply them to global business
Smart Logistics
▪ Volume forecast and productivity management through
systemization based on Big Data
- Optimization of operational resource through volume forecast based on
temperature and order type
- Monitoring real-time workforce and transport productivity
▪ Expansion of automation in centers by utilizing AI and robots
- Improve operation systems by utilizing digital twin
- Productivity improvement based on the introduction of automated
facilities

Key index for CL Productivity Innovation Project Unloading automation robot Digital Twin
(Palletizer)
37% ※ contract renewal for transportation
36%
35%
34%
33% 33% 33% 33%
32%
Existing) Manpower input, Actual operation site
Labor-intensive operation

30%
29% 29%
28%
27% 27%
26%
25% 25%

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep.

Shipping cost/sales
Virtual reality system
Change) Robot input
automation process
Unloading costs/sales
13
 02. Business Overview

Global

1054.2 bil. krw 15.4 bil. krw

Overseas Forwarding
Sales ▪ Sales decreased due to forwarding business in U.S. Sales ▪ Sales plunged due to sluggish forwarding market and
▪ Sales increased in India due to strong manufacturing economy economic downturn(YoY -35.7%)
and strengthening of market dominance in transportation ▪ CBE volume of key clients increased(+60.7%)
business
▪ Orders from strategic clients increased

Operating ▪ Improved profitability through structural reform and CL volume Operating ▪ Decreased due to weak freight rates and volume contraction
Profit increase in U.S(OPM YoY +1.1%p) Profit
▪ Expect gradual improvement as market rebounds
▪ Profit decreased due to economic slowdown in Vietnam and
Malaysia

U.S. Business Performance Trends India Business Performance Trends

Sales OP(OPM) Sales OP(OPM) (Unit: bilKRW)
(Unit: bilKRW)

355.8
328.7 180.2
170.7 175.7 169.9
283.2 173.1
278.6 286.2

7.7
6.6 5.9 4.9 4.7 4.7 4.7 5.2
5.8
3.6
2.0% 2.7%
1.6% 2.1% 2.9% 2.6% 2.8% 3.0%
1.3% 2.6%

3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23
14
 02. Business Overview

Global

Strategy & Outlook

CBE(Cross Border E-Commerce) Logistics
▪ Korea GDC→ Asia, Overseas→ Expand CBE business
- Enlarging Asia business by implementing auto-store at GDC(Incheon)
- Expanding ICC(Incheon) volume through New orders from global E-commerce
platform
▪ Expand global E-commerce partnership by entering Global CBE business
- Expanding E-commerce market coverage in Middle East based on Saudi GDC(’24)
- Entering the CBE business based on local CL and forwarding capabilities
Secondary Battery Logistics
▪ Expanding warehouse infrastructure of CJ Logistics America
- Secure logistics opportunities for batteries(materials, parts and finished products)
by utilizing North American logistics bases
▪ Securing orders based on supply chain localization within North America
- New orders: 300 Billion KRW from Korea’s major battery manufacturer
▪ Expansion of orders for battery logistics V/C based on heavy cargo
transportation and EPC project logistics experience

Secondary battery logistics value chain

Procurement Logistics Manufacturing Logistics Sales Logistics Collecting Logistics

Domestic/Overseas delivery Module/Pack transportation Collecting personal/commercial vehicle

Material Plant Battery Plant OEM Plant Collecting company

Storage of raw material

Customs clearance STO(Stock to transfer)
Domestic delivery and transportation Collecting/Storing of waste battery
CY management, operation Line feeding
Export inland transportation
Haulage transportation(truck, railroad) Manufacturing support Recycling of waste battery
Forwarding facilities btw plants
Storage, loading/unloading Storage and delivery of final products
Export raw material
15
 04
Appendix

16
04.Appendix

Consolidated profit and loss

(Unit: bil KRW, %) 3Q22 2Q23 3Q23 YoY QoQ

Sales 3,113.4 2,962.4 2,937.1 -176.3 -5.7% -25.3 -0.9%

COGS 2,804.2 2,635.0 2,602.6 -201.6 -7.2% -32.4 -1.2%

Gross Profit 309.2 327.4 334.5 +25.3 +8.2% +7.1 +2.1%

(%) 9.9% 11.1% 11.4% - +1.5%pt - -0.3%pt

SG&A 201.5 215.0 209.7 +8.2 +4.0% +5.3 -2.5%

(%) 6.5% 7.3% 7.1% - +0.6%pt - -0.2%pt

Operating Profit 107.7 112.4 124.8 +17.1 +15.9% +12.4 +11.0%

(%) 3.5% 3.8% 4.2% - +0.7%pt - +0.4%pt

Non-Operating P&L -22.3 -35.2 -42.5 -20.2 - -7.3 -

Profit Before Tax 85.4 77.2 82.3 -3.1 -3.6% +5.1 +6.6%

(%) 2.7% 2.6% 2.8% - +0.1%pt - +0.2%pt

Net Income 60.2 60.1 57.7 -2.5 -4.2% -2.4 -4.0%

(%) 1.9% 2.0% 2.0% - +0.1%pt - +0.0%pt

17
04.Appendix

Consolidated balance sheet

(Unit: bil KRW, %) 2018 2019 2020 2021 2022 3Q23 YoY

Total Assets 7,868.6 9,110.0 9,643.5 8,993.9 9,693.3 9,779.6 +86.3

Current Assets 2,180.9 2,322.2 2,538.5 2,348.2 2,956.5 2,841.3 -115.2

Cash and Cash Equiv. 163.3 220.9 387.6 229.5 582.9 676.9 -247.8

Non-current Assets 5,687.7 6,787.8 7,105.0 6,645.7 6,736.8 6,938.3 +201.5

Tangible Assets 2,429.5 3,306.4 3,519.0 3,496.2 3,364.2 3,410.8 +46.6

Intangible Assets 3,258.2 3,481.4 3,586.0 3,149.5 1,197.5 1,200.9 +3.4

Total Liabilities 4,737.8 5,454.8 5,603.6 4,977.6 5,659.0 5,550.8 -108.2

Borrowings 2,874.6 2,091.8 2,226.3 1,748.5 2,337.9 2,015.7 -322.2

Lease Liabilities 46.5 1,020.2 1,016.5 1,065.3 1,266.0 1,394.9 +128.9

Total Equity 3,130.8 3,655.2 4,039.9 4,016.3 4,034.3 4,228.8 +194.5

Debt to Equity ratio 150.9% 148.2% 138.7% 123.9% 140.3% 131.3% -9.0%p

18
 04.Appendix

Profit by division

(Unit: bil KRW) 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 YoY
Sales 895.8 978.2 846.6 923.9 914.1 961.1 910.8 921.2 901.0 -1.4%
Parcel· Gross Profit 123.6 127.1 88.7 123.6 100.6 128.4 120.7 132.9 122.1 +21%
E-commerce Operating Profit 62.4 67.0 28.0 57.1 41.6 53.5 49.3 61.6 55.7 +33.9%
OPM(%) 7.0 6.9 3.3 6.2 4.6 5.6 5.4 6.7 6.2 +1.7%p
Sales 664.0 691.6 646.9 689.5 703.0 703.3 679.4 713.6 723.4 +2.9%
Gross Profit 69.4 66.8 69.1 69.4 77.1 70.9 79.5 82.3 88.4 +15%
CL
Operating Profit 28.3 26.2 29.7 27.3 30.7 36.4 35.0 37.6 44.2 +44.0%
OPM(%) 4.3 3.8 4.6 4.0 4.4 5.2 5.2 5.3 6.1 +1.7%p
Sales 1,123.1 1,195.7 1,246.0 1,362.9 1,325.9 1,130.3 1,036.1 1,070.1 1,054.2 -20.5%
Gross Profit 68.1 75.3 87.7 107.3 110.6 89.2 96.3 96.4 102.3 -7.5%
Global
Operating Profit 9.7 -0.6 17.2 29.7 27.8 16.3 14.0 15.7 15.4 -44.6%
OPM(%) 0.9 -0.1 1.4 2.2 2.1 1.4 1.4 1.5 1.5 -0.6%p
Sales 163.6 191.8 117.5 160.6 170.4 228.8 181.5 257.5 258.5 +51.7%
Gross Profit 14.4 19.7 9.6 17.4 20.9 15.5 13.4 15.8 21.7 +3.8%
E&C
Operating Profit 4.9 7.2 0.8 2.0 7.6 6.1 7 -25 9.5 +25.0%
OPM(%) 3.1 3.8 0.7 1.2 4.5 2.7 0.4 -1.0 3.7 -0.8%p
Sales 2,846.5 3,057.3 2,857.0 3,136.9 3,113.4 3,023.4 2,807.8 2,962.4 2,937.1 -5.7%
Gross Profit 275.5 288.9 255.1 317.7 309.2 304.0 309.9 327.4 334.5 +8.2%
Total
Operating Profit 105.3 99.8 75.7 116.1 107.7 112.3 99.0 112.4 124.8 +15.9%
OPM(%) 3.7 3.3 2.6 3.7 3.5 3.7 3.5 3.8 4.2 +0.7%p

19
Thank you
Investor Relations
www.cjlogistics.com