Yang Ming Marine Transport Corp. · TWSE:2609
Yang Ming Marine Transport — 2018 Investor Conference
35 slides from Yang Ming Marine Transport's conference presentation, Dec 14, 2018
Slide 1: Yang Ming Marine Corp. 2018 Investor Conference
Yang Ming Marine Corp. 2018 Investor Conference Dec.14 2018 1 Team Work、Innovation、Honesty、Pragmatism
Slide 2: Legal Disclaimer
Legal Disclaimer The information contained in this presentation, including all forward- looking information, is subject to change without notice, whether as a result of new information, further events or otherwise, and Yang Ming Marine Corp. (the “Company”) undertakes no obligation to publicly upd
Slide 3: Outline
Outline 1、 Container Shipping Overview 2、 Business Information 3、 Financial Results 4、 Future Prospects 3 Team Work、Innovation、Honesty、Pragmatism
Slide 4: Container Shipping Overview
Container Shipping Overview 4 Team Work、Innovation、Honesty、Pragmatism
Slide 5: Global Economy Prospect
Global Economy Prospect Trade protectionism brings uncertainty while modest recovery is foreseen. IMF World Economic Outlook, October 2018 Modest recovery: Global growth is projected at 3.7% in 2018 and 2019. GDP growth for major advanced economies: US: 2018: 2.9%, 2019: 2.5% Euro Area: 2018: 2.
Slide 6: Supply and Demand
Supply and Demand More balanced and a cautiously optimistic outlook is held. 2019 supply and demand forecast • Alphaliner, Drewry, and Clarkson research forecasts demand will exceed supply by 0.1% to 1.1%, showing the overall market in 2019 to be relatively stable. 2016 2017 2018(f) 2019(f) Supply 1
Slide 7: Freight Rate Trend
Freight Rate Trend Supply-demand balanced, cargo demand stays on the high side. • Based on Nov/2018 figure, SCFI surged nearly 30% compared the same period last year. Affected by cargo frontloading spurred by the China-US trade war, volume on the Trans Pacific trade is at a relatively high level, an
Slide 8: Bunker Price
Bunker Price 2018Q1~Q4 USD/MT 2015Q1~Q4 2016Q1~Q4 2017Q1~Q4 (Until 2018.DEC) SGP 380 CST 292 233 329 438 2018Q4 USD/MT 2015Q4 2016Q4 2017Q4 (Until 2018.DEC) SGP 380 CST 219 297 363 478 (USD/MT) Bunker price- SGP 380 CST 600 438 500 329 400 292 233 300 Ave. Bunker Price YoY (2017-2018) Ave. Bunker 20
Slide 9: Sino-US trade war impact
Sino-US trade war impact Reacting with flexibility to cope with the shift in cargo flow The exact impact of the trade war is difficult to evaluate. Despite the agreement of a 90-day truce, the trade dispute itself brings uncertainty to the shipping industry outlook. • Global supply chain disruptio
Slide 10: Impact of Environmental Regulation (IMO 2020)
Impact of Environmental Regulation (IMO 2020) • International Maritime Organization(IMO) have approved MARPOL Annex VI amendment: all vessels are prohibited to USE marine fuel with Sulphur content excess 0.5% from 2020/1/1, and all vessels are prohibited to CARRY marine fuel with Sulphur content exc
Slide 11: Business Information
Business Information 11 Team Work、Innovation、Honesty、Pragmatism
Slide 12: Fleet and Service
Fleet and Service • 90+ Service / 150+ Port / 70+ Country / 240+ office 1 loops 7 loops 5 loops Asia - Red Europe - North America Asia - Europe 11 loops 9 loops Asia - North America West Coast 7 loops Asia -Gulf/India 5 loops Intra Europe Feeder Asia - North America East Coast Intra Mediterranean Eu
Slide 13: Market Share and Rank
Market Share and Rank • As of Nov. 16, 2018, YM’s market share is ranked 8th in the world. Existing Fleet Owned Chartered Orderbook Market Rnk Operator Share Existing Fleet Orderbook TEU Ships TEU Ships TEU Ships TEU Ships 1 AMP-Maersk 4,038,515 709 2,275,403 312 1,763,112 397 73,606 6 17.8% 2 Medit
Slide 14: Ship Capacity of Top Shipping Alliance
Ship Capacity of Top 3 Shipping Alliance • THE Alliance accounts for 16.7% of global • Market share of East-West Service ship capacity, about 3.8 million TEU. 2M+H and OCEAN mainly focus on Europe – • 2M+HMM occupies the highest proportion N. America and FE.-N. America trade of global ship capacity,
Slide 15: Deliver award-winning service
Deliver award-winning service by collaborative customer support team Received Quest For Quality from Logistics Management during 2017 & Received Highly 2018 Commended Awarded Ocean Liner Trade Carrier of the Award-Australia- Year by North East Asia Allenberg Cotton by Daily Cargo Co. News Recognized
Slide 16: Achieve sustainability in shipping industry
Achieve sustainability in shipping industry by committing to marine environmental protection Received Automated Mutual Assistance Vessel Received Blue Circle Awards from Vancouver Rescue System (AMVER) certificate and Blue Fraser Port Authority three years in a roll Pennant by The U.S. Coast Guard f
Slide 17: Financial Results
Financial Results 17 Team Work、Innovation、Honesty、Pragmatism
Slide 18: Group Operating Revenue Proportion
Yang Ming Group Operating Revenue Proportion Yang Ming Group Logistics Bulk Container Shipping Wharf 3.33% 2.30% 93.81% 0.29% 18 Team Work、Innovation、Honesty、Pragmatism
Slide 19: The Proportion of Consolidated Operating Income
The Proportion of Consolidated Operating Income ★AWE、PSW 、PNW ★Intra-Far East Gulf, Red Sea, etc. America Asia 40% 29% Europe 31% ★NCP、MED、TA Data interval:201801~201811 19 Team Work、Innovation、Honesty、Pragmatism
Slide 20: Consolidated Operating Revenue
Consolidated Operating Revenue Consolidated Operating Revenue increased by 6.7% YOY 14,000,000 12,000,000 10,000,000 8,000,000 2017 2018 6,000,000 4,000,000 2,000,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 20 Team Work、Innovation、Honesty、Pragmatism
Slide 21: Lifting Volume Analysis
Lifting Volume Analysis-Lifting Volume increased by 11% YOY 201701~11：4.32 million TEU 201801~11：4.79 million TEU 31.36% 30.03% 40.55% America 40.83% America 28.09% Europe 29.14% Europe Asia Asia 0.5 0.4 0.3 0.2 0.1 0 Asia Volume(million TEU) Europe Volume(million TEU) America Volume(million TEU) 21
Slide 22: Main Operating Costs Analysis
Main Operating Costs Analysis NTD$100 Millions 201701~09 V.S. 201801~09 300 Fuel YOY% +31.37% Stevedoring YOY% + 6.26% Inland Haulage YOY% - 7.53% 250 Container/Chassis Exp. YOY% + 7.16% Containers Repo. YOY% - 2.02% 247 232 200 150 169 100 127 98 74 50 91 73 52 48 - Fuel Stevedoring Inland Haulage
Slide 23: Brent crude oil price forecast
Brent crude oil price forecast Fuel oil cost fall as oil price down U.S. crude oil production to reach record high level and softens stance on Iran sanction, oil price falls from October 2018 high. Bank\Time 1Q2019F 2Q2019F 3Q2019F 4Q2019F 2019F JP Morgan 71.33 74.33 73.33 71.33 72.58 Barclays PLC 7
Slide 24: Structure of Shareholders
Structure of Shareholders Domestic natural person Government 38.87% 45.07% Foreign Domestic investment legal entity Domestic 4.83% 6.78% financial institution 4.45% Date : 2018.4.24 24 Team Work、Innovation、Honesty、Pragmatism
Slide 25: Future Prospects
Future Prospects 25 Team Work、Innovation、Honesty、Pragmatism
Slide 26: Operational strengthening strategy
Operational strengthening strategy Contribution Management & Service Optimization IT System & Business Process Refine Fleet Structure and Operation Optimization Group Business Centralization management 26 Team Work、Innovation、Honesty、Pragmatism
Slide 27: Contribution Management
Contribution Management • 2018 Jan-Nov vs 2017 Jan-Nov： Marginal Contribution increased 66 M (USD) 2018 Jan-Nov vs 2017 Jan-Nov - Marginal Contribution 1,800 Unit: USD, Million 1,780 1,760 +6,600萬 1,740 1,720 1,700 +66 M 1,680 1,660 1,640 1,620 Year 2017 Year 2018 27 Team Work、Innovation、Honesty、Pra
Slide 28: Service Rationalization: East-West Service Competitiveness
Service Rationalization: YM West & East Service Competitiveness Improvement SLOTTAGE 900.0 ↘5.8% 2017 2018 2019 ↘6.6% ↘4.0% ↘14.6% 550.0 ↘5.5% ↘2.0% 200.0 FE-NCP FE-MED FE-USEC FE-PSW FE-PNW EU-NAM Yang Ming continues to endeavor unit cost reduction on east-west trades through improving service comp
Slide 29: Service Rationalization
Service Rationalization Intra Asia • Yang Ming is to continue service rationalization, enhancing Intra Asia service network. According to Clarkson Research, Intra Asia trade volumes increased 9% year on year during the start of the year. In comparison to last year, Yang Ming Intra Asia capacity incr
Slide 30: IT System & Business Process Refine
IT System & Business Process Refine Reinforce Managing Tool for Profit Driven Optimize Global Agency Operation System for Centralization management Refine Booking Process for Customer Satisfaction & laborforce productivity 30 Team Work、Innovation、Honesty、Pragmatism
Slide 31: Yang Ming's Fleet Capacity and New Delivery
Yang Ming’s Fleet Capacity and New Delivery Order Book 24 units/194,880 TEU Owned Vessels (19%) 42 units/192,533 TEU 2020 expired long-term (34%) charter-in vessel 12 units/57,306 TEU(10%) Charter – in Vessels 46 units/396,623 TEU (37%) Up to 2018/11/15 Yang Ming’s total fleet capacity 100 vessels/6
Slide 32: Yang Ming Fleet's Cascading Plan
Yang Ming Fleet’s Cascading Plan 18 units of charter-in vessels expired between 2018 - 2020 Year Vessel Type Units Cost saving 2018 4,000 TEU / 8,000 TEU 7 About USD 9 mil. 2019 4,000 TEU / 8,000 TEU 7 About USD 26 mil. 2020 4,000 TEU / 8,000 TEU 4 About USD 15 mil. Old design vessel’s cascading sch
Slide 33: Optimize Fleet Operation
Optimize Fleet Operation by flexible swapping vessels to decrease idle time Integrate all vessel resources from different services and arrange vessel swap operation to fully utilize the whole fleet: Item 2016(day) 2017(day) 2018(day) Owned vessel’s dry docking/retrofit 346 390 171 Charter-in vessel’
Slide 34: Group Business Centralization Management
Group Business Centralization Management • Setting up own agency • Agents are contracted and in those countries with evaluated by headquarter good volume and profit Ownership Centralization • Global subsidiaries centralization management Strengthening Optimization • Strengthening the • Rationalizati
Slide 35: Q & A
Q&A 35 Team Work、Innovation、Honesty、Pragmatism
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