Contents Contents

1.0 Logistics Ecosystem

Overview

2.0 Express Delivery Services in Malaysia Figures

Courier Industry Outlook

Ministries & Agencies

3.0 About GDEX

Core Business

Customised Solution

Strategy for Growth

Logistics Logistics Ecosystem

Mail

• Malaysian logistics industry revenue for 2013 predicted to

increase to RM139.74Billion (Source : Frost & Sullivan)

LPI Logistics Performance Index Source : The World Bank

Express Delivery Services

(EDS) Industry

Figures Figures

2004 2005 2006 2007 2008 2009 2010 2011 2012

Total

Document

Parcel

EDS

15,106,949

31,817,185

12,043,521 14,563,487

27,150,470

46,380,672

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

50,000,000

1,175,618,531

1,222,719,248

1,022,982,365

900,000,000

950,000,000

1,000,000,000

1,050,000,000

1,100,000,000

1,150,000,000

1,200,000,000

1,250,000,000

2004 2005 2006 2007 2008 2009 2010 2011 2012

TOTAL

(Document & Parcel)

Source: MCMC

Mail

No. of Shipment

No. of Shipment

Trends that drive the growth

of the courier industry

* Globalization

* Service Dominated Economy

* Time Critical Competition

* Growing Environmental Sensitivity

* Refined Process Organization

* Deregulation and Privatization

* Focus of Core Competencies and Outsourcing

* Technological Advancement

Dynamism of Courier Industry Dynamism

Source: MCMC

LEVEL OF

ACCESS

1800 1900 2000

Access

to

Information Access

to

Physical

YEAR

Telegraph (1835)

Telephone (1875)

Telefax Widely Used (1960’s)

Internet Widely Used (1990’s)

Steam-Powered Locomotive

(1804)

Gas Powered Automobile

(1885)

Airplane (1903)

Advanced Logistics

Overnight Delivery (1973)

Integrated Supply Chain

Critical to People, Business & Nation

Empowerment

Market Reach

National Prosperity

Cost of Shipping and Weight per Shipment Vs. Transit Time By Mode

Shipper cost per ton-mile (LHS)

$6.00 1,000,000 Tons per shipment (RHS) - Log Scale

Barge

Air Express $5.00 100,000

Rail Truckload

$4.00 10,000

$3.00 1,000 LTL

$2.00 100

Ground Parcel

$1.00 10 LTL

Air Express Truckload Rail Barge

$0.00

Transit Time (Fastest to Slowest)

Source: Company data, Morgan Stanley Research, Note: Ton-Miles based on company disclosures. Barge ton-miles may include backhaul

Cost Benefits Cost Benefits of Air Express Vs. Other

Transportation Model

Shippers Use Parcel for Small or Time-Sensitive Shipments

New Entrance

Courier Industry Liberalized in 2011

Domestic Players

International Network

Roles

• Facilitate Export, create global reach,

improve Connectivity

• Encourage FDI and Deter Foreign

Divestment

• Foster Balanced Economic Growth

Throughout the Country

• Facilitate B2B, B2C & C2C transactions

• Improve SME / SMI Access to

Domestic & Global Market

Role of the Industry in Economy

Development & Nation Building

Ministries & Agencies

• MITI & MIDA • Incentives which encourage investment into the

EDS sector • Help to negotiate Free Trade Agreements (FTAs)

(Note : GDEX has benefitted from the incentives granted by MIDA)

• KKMM & MCMC • Regulate for Growth • Courier Industry Development Plan

• Working on Courier Industry Code of Practice

Ministries & Agencies

About

-10%

0%

10%

20%

30%

40%

50%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

29%

6.13%

5.33%

6-10%

4-8%

-1.72% -5.08%

10.20%

Established in 1997

Core business: Conventional Express Delivery, Customised Logistics,

Warehousing, Supply Chain Management

Top 4 Domestic Player among the 30 year old industry players

CAGR of 27% in the last 10 years compared to 7% in the industry

RM2 billion industry and growing at 6%-10%

GDEX is expected to out perform both GDP and Industry

Track Record Track Record

First domestic company to achieve ISO9001:2000, Quality

Management System in 2003 and upgraded to ISO9001:2008

in 2009

Obtained ISO 14001:2004 (Environmental Management

System)

Ability to design and upgrade facilities and processes, faster

turn around time, cost optimization

Towards real time processes

Sustainable growth with dividend payment

Network Network Resources

• A 70,000 sq.ft. Central All-Weather Clearing Hub

• Hub Integrated Operating System linked with 111

stations throughout the country

• Comprehensive security surveillance system

• More than 390 delivery trucks and vans

• State-of-the-Art IT system with proprietary software

• A 70,000 sq. ft. packaging and warehouse centre

• Customised storage and bulk-handling equipment

• More than 2,000 staff

Domestic Network

111 Stations

North Zone : 7

West Zone : 5

East Zone : 15

Klang Valley Zone : 26

Central Zone : 8 South Zone : 11

Sabah : 12

Sarawak : 26

Singapore : 1

Network Kajang

Serdang

Bangi

Kepong

Melawati

Rawang

Kuala Selangor

Bentong

Damansara Perdana

Petaling Jaya

Benta

Jenderam/Dengkil

Kuala Lipis

Pulau Ketam

Sabak Bernam

Tanjung Malim

Melaka

Malim Jaya

Bahau

Seremban

Muar

Gemencheh

Tampin

Tangkak

Johor Bahru

Pontian

Senai

Batu Pahat

Kluang

Segamat

Pasir Gudang

Gemas

Mersing

Yong Peng /Paloh

Muadzam Shah

Kota Kinabalu

Keningau

Bayan Baru

Penang

Parit Buntar

Alor Setar

Sg. Petani

Butterworth

Langkawi

Ipoh

Kampar

Sitiawan

Teluk Intan

Taiping

Jerantut

Kuantan

Mentakab

Kota Bharu

Kuala Terengganu

Maran

Triang

Bachok

Dungun

Gua Musang

Jerteh

Kok Lanas

Kuala Krai

T.Merah/Machang

Kemaman

Cheras

Kuala Lumpur

Wangsa Maju

Puchong

Subang Jaya

Sg Buloh

Banting

Port Klang

Shah Alam

Klang

Labuan

Lahad Datu

Sandakan

Kota Belud

Kudat

Kota Marudu

Ranau

Tambunan

Tenom

Tawau

Kuching

Bintulu

Miri

Sibu

Bau

Betong

Bintagor

Belaga

Belawai

Batu Niah

Dalat

Daro

Bekenu

Kanowit

Kapit

Limbang

Lundu

Lawas

Marudi

Mukah

Serian

Song

Sarikei

Sri Aman

Saratok

Tatau

Singapore

Network

Core Business Core Business

• Conventional Express Delivery

• Customised Logistics Solutions

• Warehousing

• Supply Chain Management with emphasis on value-added

and integrated services eg. D.O Return Service, Security

Handling Service, Reverse Charge, collection of duty and

freight charges for customers

• Value-added Services,

Client

Warehouse GDEX Warehouse

Branches / stations

East Malaysia

Transshipment Hub - HQ Singapore

Branches / stations –

West Malaysia

IILS IILS Process Flow Other International

Destinations

PJ Hub

0115

0010

2220 2345

0000

0200

0040

2315

0100

2340

0010 0215

0140

0140

0020

0100

2315

Shipment Movement at the Hub - Inbound

Bentong 1930

Mentakab 2035/2045

Alor Setar 1915

Sg. Petani 1930

Kota Bharu 1815

Kuala Krai 1855/1900

K.Terengganu 1830

Kuantan 2030

Dungun 1945/1950

Seremban 2000

Kajang 2100/2120

Kluang 2030

Tangkak 2200/2205

Batu Pahat 2000

Muar 2110/2130

Melaka 2030

Alor Gajah 2110/2115

JB2 2100

JB1 1930

Kuala Selangor 2210/2215

Teluk Intan 2100/2115

Sitiawan 2000

Taiping 2145 /2200

Ipoh 2000

Tj. Malim 2230

Kerteh 2030/2040

Maran 2200/2210

Kampar 2040/2050

Butterworth 2030

Parit Buntar 2045/2100

Penang 2045

Gua Musang 2040/2045

Kuala Lipis 2255/2300

Kemaman 2120/2135

Parit Buntar 2045/2100

Segamat 1930

Gemas 2020/2015

Tampin 2125/2115

Air Linehaul to East Malaysia, International Co-loaders & Singapore

ISO ISO Certifications

• ISO9001:2001 (Quality Management System) certification in

2003

• Upgraded to ISO9001:2008 in November 2009

• Obtained ISO14001:2004 (Environmental Management

System)

CSR CSR Initiatives

GDEX is committed to a long term Corporate Social Responsibility (CSR) programme that looks into 3 key areas:

Employees and workplace Training

Interns

The Community Scholarship

Blood Donation

The Environment ISO 14001

Go Green

Reduce, Reuse, Recycle (3R)

Strategy Strategy For Growth

• Incentives for employees to drive productivity

• Implementing automation to reduce cost, improve quality

and turn around time

• Diversification of business to Warehousing, Customised

Logistics (3PL) and Supply Chain Management by

leveraging on our network

• To become a one-stop Supply Chain Service Provider with

integrated value-added services for businesses

Strengths Strengths

• Comprehensive domestic network

• Value for money service, i.e. World Class standard at a

deep discount over the international players

• High growth business model with advantage in the

economy of scale and process development

• Security features with end to end process, producing

the best reliability and security of packages in the

industry

• Fully owned linehaul trucks with GPS, tail lifter for

loading and unloading

• Strong international alliance with major global players

Expansion Expansion

• Preparing for ASEAN integration

• Started the Restructuring of internal

departments to enable/offer Shared Services

• Establishment of Regional Operational HQ in

Malaysia

GOAL

Customers Advanced Application

Country / Region Balanced Economic

Development

Environment Lesser CO2 Emission Go Green, 3R

Employees Knowledge, Character & Good Morale

GOAL