Cosco Shipping Ports Limited · HKEX:1199
Cosco Shipping Ports — H1 2022 Earnings Presentation
35 slides from Cosco Shipping Ports's earnings presentation, Aug 30, 2022
Slide 1: 1H2022 Results Presentation
Bess COSCO SHIPPING Ports Limited ES! hee SRAA) The Ports for ALL 1H2022 Results Presentation — Accelerating Development by Improving Quality Achieving Results by Increasing Efficiency August 30, 2022
Slide 2: Agenda
Agenda 1 Key Highlights 2 Financial Performance 3 Operational Review 4 Strategy & Outlook 5 Q&A
Slide 3: Agenda
Agenda 1 Key Highlights 2 Financial Performance 3 Operational Review 4 Strategy & Outlook 5 Q&A
Slide 4: Strong Subsidiary Terminals’ Profit Growth Momentum in 1H2022
Strong Subsidiary Terminals’ Profit Growth Momentum in 1H2022 ➢ Total terminal profit in 1H2022 increased by 0.9% YoY. Subsidiary terminals’ profit rose 45.1% YoY, mainly driven by successful lean operations management to boost revenue and reduce costs and contribution of TCT (1). ➢ Amid global econ
Slide 5: Subsidiary Terminals’ Profit Growth Momentum Remains Strong in 2Q2022
Subsidiary Terminals’ Profit Growth Momentum Remains Strong in 2Q2022 ➢ 2Q2022 total terminal profit decreased by 2.4% YoY. Subsidiary terminals’ profit in 2Q2022 rose 35.6% YoY (equity throughput grew 28.5% YoY), mainly driven by a strong growth at our overseas subsidiary terminals, successful lean
Slide 6: Agenda
Agenda 1 Key Highlights 2 Financial Performance 3 Operational Review 4 Strategy & Outlook 5 Q&A
Slide 7: 1H2022 Financial Highlights
1H2022 Financial Highlights — Continuing ASP Expansion with 8.3% YoY Increase (1) On a comparable basis, excluding Reported contribution from TCT which was not our (US$ million, unless stated otherwise) subsidiary terminal during 1H2021 1H2021 1H2022 YoY Change 1H2021 1H2022 YoY Change Consolidated
Slide 8: 2Q2022 Financial Highlights
2Q2022 Financial Highlights — ASP Further Hiked by 13.0% YoY (1) On a comparable basis, excluding Reported contribution from TCT which was not our (US$ million, unless stated otherwise) subsidiary terminal during 2Q2021 2Q2021 2Q2022 YoY Change 2Q2021 2Q2022 YoY Change Consolidated throughput from S
Slide 9: Revenue and Gross Profit Growth Accelerated during 2Q2022
Revenue and Gross Profit Growth Accelerated during 2Q2022 ➢ Revenue and gross profit growth accelerated in 2Q2022 mainly driven by overseas operations with strong margin improvement 2Q2022 Revenue (US$ million) 2Q2022 Gross Profit (US$ million) 374.9 116.8 Guangzhou Nansha Xiamen Oceangate 25.6 51.9
Slide 10: Strong Growth Momentum of Overseas and Subsidiary Terminals in 2Q2022
Strong Growth Momentum of Overseas and Subsidiary Terminals in 2Q2022 ➢ Terminal profit from overseas operations increased 22.6% YoY to USD 22.9 M, contributing 19.1% of total in 2Q2022, compared to 15.1% in 2Q2021 ➢ Terminal profit from subsidiaries rose 35.6% YoY to USD 36.8 M, contributing 30.7%
Slide 11: Solid Financial Position to Support Further M&A Projects
Solid Financial Position to Support Further M&A Projects ➢ As of 30 June 2022, our cash and bank balance maintained strong at USD 1.14 billion ➢ Net gearing ratio remained at a healthy level of 28.0% ➢ According to our latest Capex plan, adjusted expected Capex in 2022 will be USD 924 million, of wh
Slide 12: Agenda
Agenda 1 Key Highlights 2 Financial Performance 3 Operational Review 4 Strategy & Outlook 5 Q&A
Slide 13: Throughput Contribution from Subsidiary Terminals Continued to Rise during 2Q2022
Throughput Contribution from Subsidiary Terminals Continued to Rise during 2Q2022 ➢ Proportion of equity throughput from subsidiary terminals increased from 37.2% to 45.7% in 2Q22 after TCT acquisition. 2Q2022 Total Throughput (’000 TEU) 2Q2022 Equity Throughput (’000 TEU) 32,533 32,919 10,176 10,63
Slide 14: Further Enhancing Synergy with Shipping Companies
Further Enhancing Synergy with Shipping Companies 2Q2022 Customers as A Percentage of Total Throughput (1) 1H2022 Customers as A Percentage of Total Throughput (1) COSCO SHIPPING Lines OOCL Evergreen + CMA COSCO SHIPPING Lines OOCL Evergreen + CMA OCEAN Alliance 2M + THE Alliance Others OCEAN Allian
Slide 15: Accelerating Development of Value-Added Projects to Create New Sources of Growth
Accelerating Development of Value-Added Projects to Create New Sources of Growth Accelerate the ◼ Develop the supply chain business and accelerate the CSP Abu Dhabi CFS Phase 1 development of construction of the extended supply chain platform supply chain business to create ◼ Build up logistics netw
Slide 16: A Big Push for Technological Innovation at Subsidiary Terminals
A Big Push for Technological Innovation at Subsidiary Terminals to Facilitate Lean Operations ➢ Promote and implement the experience of 5G smart port construction at Wuhan Terminal. Expanding the 5G smart port demonstration area, deploying autonomous container truck system at Xiamen Terminal, extend
Slide 17: Agenda
Agenda 1 Key Highlights 2 Financial Performance 3 Operational Review 4 Strategy & Outlook 5 Q&A
Slide 18: Global Terminal Network and Lean Operations
Global Terminal Network and Lean Operations Capitalize on ◼ Identifying potential projects and tapping into the markets such as Southeast Asia, the global economic growth Middle East and Africa, particularly in strategic subsidiaries and highly-profitable non- optimize terminal portfolio subsidiarie
Slide 19: Lean Operations — Revenue Increase
Lean Operations — Revenue Increase Published price change of TEU in Chinese port authorities (1) ➢ Terminals maintain good relationships with shipping companies. Apart from maximizing synergy with parent Original published price 2022 published price company and OOCL, we also cooperate with different
Slide 20: Pledge to Reach Carbon Neutrality at Subsidiary Level
Pledge to Reach Carbon Neutrality at Subsidiary Level Enhancing Energy Use Efficiency to Reduce Emissions and Combat Climate Change GHG Emissions Energy Consumption Long-term Commitment: Short-term Target: • To achieve carbon neutrality no later than 2060 • To reduce energy consumption intensity of
Slide 21: Enhancing Water and Waste Management at Subsidiary Level
Enhancing Water and Waste Management at Subsidiary Level Contributing to Ecological and Environmental Protection Water Consumption Waste Target: Target for Hazardous Waste: • To enhance the management of water resources • To maintain 100% hazard-free disposal of waste and improve water use efficienc
Slide 22: Outlook
Outlook Challenges Opportunities ➢ Resurgence of COVID-19 ➢ Long term opportunities for overseas terminals development as well as for domestic ports consolidation ➢ Surging Inflation and interest rate hike ➢ Good prospect on the back of our effective lean operations ➢ Increasing risks of geopolitica
Slide 23: Q & A Session Thank you!
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Slide 24: Agenda
Agenda 1 Key Highlights 2 Financial Performance 3 Operational Review 4 Strategy & Outlook 5 Q&A 6 Appendix
Slide 25: Solid Revenue and Gross Profit Growth for 1H2022
Solid Revenue and Gross Profit Growth for 1H2022 ➢ Solid revenue and gross profit growth during 1H2022 was mainly driven by our successful sales and marketing strategy to raise ASP in our global subsidiary terminals, as well as the acquisition of TCT 1H2022 Revenue (US$ million) 1H2022 Gross Profit
Slide 26: Continuous Profitability Enhancement for Subsidiary Terminals during 1H2022
Continuous Profitability Enhancement for Subsidiary Terminals during 1H2022 ➢ Strong performance at subsidiary terminals offset the fair results of JV & Associates, leading to a 0.9% YoY increase in total terminal profit during 1H2022 1H2022 Terminal Profit by Regions (US$ million) (1) Top 10 Termin
Slide 27: Equity Throughput from Subsidiary Terminals Continued to Grow during 1H2022
Equity Throughput from Subsidiary Terminals Continued to Grow during 1H2022 ➢ 1H2022 equity throughput increased 5.3% YoY. The main contributors were Overseas region and Bohai Rim region 1H2022 Total Throughput (’000 TEU) 1H2022 Equity Throughput (’000 TEU) 63,210 20,494 62,711 19,465 Bohai Rim 32.8
Slide 28: Lean Operations — Cost Control
Lean Operations — Cost Control Four measures to improve lean operations A series of cost control measures and cost control capabilities Innovatively set up ports operations management COE Actively promote and enhance automation in the Team terminal to improve efficiency and lower outsourcing cost Es
Slide 29: Incentive Scheme – Aligning Shareholders’ Interests
Incentive Scheme – Aligning Shareholders’ Interests ◼ A total of about 53 million share options were granted to around 238 eligible employees under the share option scheme on 19 June 2018 ◼ Exercising criteria are in line with shareholders’ interests Batch No. of Percentage of Return on Growth Rate
Slide 30: SDGs of our Major Concern
SDGs of our Major Concern We align our major initiatives with the Sustainable Development Goals (SDGs) of the United Nations. By identifying five goals as the most important and most relevant to our operations, we have integrated them into five key areas of sustainable development. SDG 4 Quality Edu
Slide 31: Our Sustainability Approaches
Our Sustainability Approaches Approach 1: Caring for Our People Providing a healthy, safe, inclusive and diverse work environment to attract and cultivate talents for our sustained growth Approach 2: Customers First Investing in building “green ports”, minimising the environmental impacts of our ope
Slide 32: Sustaining High Standard of Governance
Sustaining High Standard of Governance Balanced and Diverse Board Composition ESG Committee in Place ✓ High level of independent representation on the ✓ Led by an Independent Non-executive Director, Board and comprised the Chairman of the Company and another Independent Non-executive ✓ Diversified s
Slide 33: Key and Ongoing Initiatives under our Sustainability Approaches
Key and Ongoing Initiatives under our Sustainability Approaches Approach 1 Approach 2 Approach 3 Approach 4 Approach 5 Caring for Our People Customers First Green Development Win-win Cooperation Investing in Communities 1. Elevating diversity and 1. Building 5G smart ports to deliver more reliable a
Slide 34: Disclaimer
Disclaimer This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of COSCO SHIPPING Ports Limited (“COSCO SHIPPING Ports”) and certain plans and prospects of the management of COSCO SHIPPING Ports. Such forward-lookin
Slide 35: Thank you!
®BZBOBRAA (O SHIPPING Ports Limit IPPING ig COSC: Thank you! __ 4