Orient Overseas (international) Limited · HKEX:316
Orient Overseas (international) — H1 2008 Earnings Presentation
32 slides from Orient Overseas (international)'s earnings presentation, Jul 31, 2008
Slide 1: Interim Result Announcement
1 Orient Overseas (International) Ltd INTERIM RESULT ANNOUNCEMENT Media July 31st 2008
Slide 2: Agenda
Orient Overseas (International) Ltd 2 Agenda 1. Key Developments & Group Financial Performance 2. OOCL Operating Performance & Outlook 3. Property Division Performance & Outlook
Slide 3: Key Developments & Group Financial Performance
3 Orient Overseas (International) Ltd 1) Key Developments & Group Financial Performance
Slide 4: 1H 2008 Interim Results
Orient Overseas (International) Ltd 4 1H 2008 Interim Results • Group turnover increased by 27.4% to US$3,204 million. • OOCL Revenue increased by 24.8%; liftings up by 9.4%. • Operating Profit from Container Transportation and Logistics increased 1.7% y-o-y to US$208.9 million. • Earnings from non-
Slide 5: 1H 2008 Interim Results
Orient Overseas (International) Ltd 5 1H 2008 Interim Results • Wall Street Plaza was revalued down by US$10 million to US$190 million. • Profit before Tax from continuing operations, including the impact of the WSP revaluation, was US$175.6 million. • Profit Attributable to Shareholders of US$158.3
Slide 6: 1H 2008 EPS & DPS
Orient Overseas (International) Ltd 6 1H 2008 EPS & DPS • Earnings per share from continuing operations of US25.3 cents (US36.7 cents last year). • Interim Dividend of US6.5 cents (HK$0.51) per share. • Interim dividend represent 25.7% of Net Profit after Tax from Continuing Operations.
Slide 7: Key Events – Vessel Fleet
Orient Overseas (International) Ltd 7 Key Events – Vessel Fleet • Delivery taken of three new 4,506 TEU vessels. • No new orders placed in the first half of 2008. • 20 Vessels still to deliver by the end of 2011. • Financing arranged or in progress by the end of the first half for sixteen of those t
Slide 8: Key Events – Property Division
Orient Overseas (International) Ltd 8 Key Events – Property Division • Wall Street Plaza revalued down by US$10 million to US$190 million. • Wall Street Plaza 90.1% leased. • Property Development projects progressing as forecast. • Term Loan syndicated and other bank facilities completed.
Slide 9: Total Group Results – 1H08
Orient Overseas (International) Ltd 9 Total Group Results – 1H08 US$'000 1H2008 1H2007 Variance Continued Operations: Turnover 3,203,723 2,514,250 689,473 E.B.I.T.D.A. 331,636 357,604 (25,968) Depreciation/Amortization (100,114) (84,492) (15,622) E.B.I.T. 231,522 273,112 (41,590) Finance costs (45,9
Slide 10: Operating Profit From Continuing Operations
Orient Overseas (International) Ltd 10 Operating Profit From Continuing Operations US$'000 1H2008 1H2007 Variance Operating results by activity: Container transport and logistics 208,895 205,389 3,506 Property investment & development 4,295 7,595 (3,300) Other 14,430 60,431 (46,001) Operating Profit
Slide 11: OOIL - Interim Operating Profit By Division
11 OOIL - Interim Operating Profit By Division, before WSP Revaluation $225 $205.4 $208.9 $200 1H2007 1H2008 $175 $150 US$ Million $125 $100 $75 $63.4 $50 $25 $14.4 $4.6 $4.3 $0 Container Transportation and Property Development and Other Logistics Investment
Slide 12: Changes in Interim Net Profit Before Tax
12 OOIL – Changes in Interim Net Profit Before Tax 300 $254.0m (31.3) 250 (14.7) (35.0) 200 2.6 $175.6m US$M 150 100 50 0 1H2007 NPBT Interest Investment WSP Other 1H2008 NPBT Income Income Revaluation
Slide 13: Operating Profit From Other Activities
Orient Overseas (International) Ltd 13 Operating Profit From Other Activities US$'000 1H2007 NPBT $ 254,033 1H2008 1H2007 Interest Income 25,201 56,495 (31,294) Investment Portfolio Income (2,218) 12,539 (14,757) Wall Street Plaza Revaluation (10,000) 25,000 (35,000) Other 2,609 1H2007 NPBT $ 175,59
Slide 14: Balance Sheet Highlights
Balance Sheet Highlights 14 US$millions 30 June 2008 31 Dec 2007 Total Assets 7,393 7,214 Total Liabilities 3,090 3,038 Total Equity 4,303 4,176 Total Debt 2,245 2,206 Total Cash 1,973 2,237 Net Debt 272 (31) Total Debt / Cash 1.14 0.99 Total Debt to Equity Ratio 0.52 0.53 Net Debt to Equity Ratio 0
Slide 15: Net Debt-to Equity Ratio
Net Debt-to Equity Ratio 15 Net Debt To Equity Ratio 1 0.75 0.5 0.40 0.30 0.30 0.20 0.25 0.06 n/a 0 2003 2004 2005 2006 2007 1H2008 July 2008
Slide 16: 2008 Outlook
Orient Overseas (International) Ltd 16 2008 Outlook • Rising costs continue to be a major concern and will put pressure on margin • The weak US economy and sub prime crisis will continue to affect world commerce • Sentiment and uncertain economic outlook will expose carriers to the risk of deteriora
Slide 17: OOCL Operating Performance and Outlook
Orient Overseas (International) Ltd 17 2) OOCL Operating Performance and Outlook
Slide 18: OOCL Global Revenue & Volume Distribution
18 OOCL Global Revenue & Volume Distribution Trans Pacific Market 1H08 = 660,744 TEU 1H07 = 627,452 TEU Growth = 5.3% Total Trans Atlantic Market Asia Europe Market (incl. Intra Europe) 1H08 = 207,907 TEU 1H08 = 2,415,413 TEU 1H07 = 190,225 TEU 1H08 = 405,725 TEU 1H07 = 2,206,896 TEU Growth = 9.3% 1
Slide 19: OOCL Global Revenue & Volume Distribution
OOCL Global Revenue & Volume Distribution 19 Revenue (in US$) 1H2008 Revenue (in US$) 1H2007 Intra Asia / Transpacific Intra Asia Transpacific Market Australasia Market Market 38% Market 27% 37% 26% Trans Atlantic Asia Europe Trans Market Market Atlantic Asia Europe 13% 23% Market Market 12% 24% Vol
Slide 20: Bunker Prices
Bunker Price 20 650 Singapore Quarter Average Price Rotterdam Quarter Average Price 600 OOCL Bunker Cost 577 550 Bunker Prices (US$ per M ton) 500 480 457 450 400 378 350 337 323 324 303 317 300 283 257 279 250 201 200 161 189 167 186 177 183 156 160 158 161 150 148 135 136 127 116 117 100 1Q01 2Q01
Slide 21: Bunker Fuel Cost
Bunker Fuel Cost 21 Full Full Full Year Year YoY Year YoY 1st Half 2005 2006 Change 2007 Change 2008 Total consumption (‘000 ton) 1,669.40 1,786.30 7.00% 2,187.20 22.40% 1,141.00 Average price (US$) 250 314 25.60% 357 13.70% 502 Total bunker costs (US$m) 425 573.1 34.90% 791.2 38.10% 582 % total ope
Slide 22: OOCL Operational Quarterly Update 2Q08
OOCL Operational Quarterly Update 2Q08 22 Q2 2008 Q2 2007 change Q1 2008 Q1 2007 change Q4 2007 Q4 2006 change Q3 2007 Q3 2006 change Q2 2007 Q2 2006 change LIFTINGS (TEU'S) Trans-Pacific 331,248 334,230 -0.9% 329,496 293,222 12.4% 337,903 293,568 15.1% 377,170 319,016 18.2% 334,230 309,919 7.8% Asi
Slide 23: Trade Outlook 2008
Trade Outlook 2008 23 • Trading environment for Trans-Pacific Trade will be tough in 2008 as the U.S. Economy continue to slow • There will be minimal or reduction in growth in US inbound volume creating pressure on getting rate up to recover cost increases. • Surge in US export is expected to conti
Slide 24: Trans-Atlantic Trade
Trans-Atlantic Trade 24 • The Trans-Atlantic Trade - the trading environment is challenged as a result of economic, currency and cost issues. The US import will realize minimal growth as a result of the weakened US economy and strong EUT based currencies. • While the export trades from both the US a
Slide 25: Trade Outlook 2008
Trade Outlook 2008 25 • The Asia-Europe Trade – Demand growth for Asia-Europe is reduced from the highs of recent years • As new capacity is introduced to the trade it will bring pressure to the rate level. • Beijing Olympic Game may disrupt the normal peak season pattern in Q3 July 2008
Slide 26: Intra-Europe Trade
Intra-Europe Trade 26 • Intra-Europe Trade - 2008 will see continued growth in the North Europe and Baltic sector, principally driven by the strengthening Russian economy. • Improved service offering linking West and East Mediterranean and Baltic Sea regions will create new markets July 2008
Slide 27: Asia-Australia Trade
Asia-Australia Trade 27 • Asia-Australia Trade – Demand will continue to grow and this is inline with our expansion in this service. • Conversion of bulk goods to container helps the North Bound leg and equipment return • We anticipate tough competition though from other carriers in the second half
Slide 28: Intra-Asia Trade
Intra-Asia Trade 28 Trade Outlook • While China exports remain robust, there are signs of slower growth for imports. This may reflect the slow down of exports from China to the U.S. and Europe causing a reduction of raw material and semi finished goods movement. • There will be a seasonal dip in vol
Slide 29: Reefer Trade
Reefer Trade 29 • Demand for refrigerated container service continues to be strong especially Live Reefer sector which is expected to have double digit growth this year. • Import to Europe, Middle East and China are expected to be very strong though we expect rate pressure as more carriers are inves
Slide 30: Property Division Performance and Outlook
30 Orient Overseas (International) Ltd 3) Property Division Performance and Outlook Chingning Zhong Shan Road Mixed used project Kunshan Residential Project Luwan Hotel Project Luman Residential Project Kunshan Hotel Hangshan Road Hotel Project Project
Slide 31: Outlook for 2008 Property
Outlook for 2008 31 Property • Continues to work towards creation of a stand alone real estate development and investment business. • Expect real estate to produce a meaningful income in the future. • Focus on current projects with aim to be completed in 2009-2011 • Diversify market risk by investin
Slide 32: Thank You
32 THANK YOU
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