Orient Overseas (international) Limited · HKEX:316
Orient Overseas (international) — H1 2017 Earnings Presentation
24 slides from Orient Overseas (international)'s earnings presentation, August 2017
Slide 1: 2017 Interim Results
2017 Interim Results Orient Overseas (International) Limited August 2017 Nov 2016 1
Slide 2: Disclaimer
Disclaimer The information provided is for reference only and includes data obtained from sources provided by the relevant information provider(s) and is subject to change without notice. Orient Overseas (International) Limited (“OOIL”) and its affiliates, and the concerned information provider(s),
Slide 3: 2017 Interim Results Highlights
2017 Interim Results Highlights 1H 2017 US$M Group Profit After Tax 53.6 Liner Logistics Segment EBIT 31.4 Liner Logistics EBIT % 1.1 3
Slide 4: Group Result Breakdown
Group Result Breakdown 1H 2017 1H 2016 US$M Container Transportation and Logistics – 31.4 (65.5) EBIT Property and Investments - EBIT Wall Street Plaza 33.9 13.9 Hui Xian 24.8 23.4 Interest, Investments and Others 29.1 20.3 87.8 57.6 OOIL GROUP – EBIT 119.2 (7.9) Finance Costs (45.0) (39.6) Taxation
Slide 5: Group Balance Sheet Highlights
Group Balance Sheet Highlights US$M 30-Jun-2017 31-Dec-2016 Non-current Assets 6,910 6,838 Current Assets 2,783 2,566 Total Assets 9,693 9,404 Non-current Liabilities 3,664 3,572 Current Liabilities 1,437 1,313 Total Liabilities 5,101 4,885 Shareholders’ Funds and Total Equity 4,592 4,519 5
Slide 6: Total Liquid Assets
Total Liquid Assets US$M 30-Jun-2017 31-Dec-2016 Cash and Bank Balances 1,754 1,627 Portfolio Investments, Equities and Bonds 567 560 Total 2,321 2,187 6
Slide 7: Net Debt Position
Net Debt Position US$M 30-Jun-2017 31-Dec-2016 Liquid Assets 2,321 2,187 Debt 4,214 4,091 Net Debt 1,893 1,904 7
Slide 8: Debt-to-Equity Ratios
Debt-to-Equity Ratios Gross Debt to Equity Net Debt to Equity Gross Debt to Equity Ratio Ratio 1.0 1.0 0.91 0.92 0.86 0.85 0.63 0.48 0.5 0.5 0.42 0.41 0.32 0.28 0.06 0.12 0 0 2012 2013 2014 2015 2016 1H2017 2012 2013 2014 2015 2016 1H2017 8
Slide 9: Container Transportation (excl. Logistics)
Container Transportation (excl. Logistics) 1H 2017 1H 2016 %▲ Liftings ('000 TEU) 3,087 2,890 7% Revenue (US$M) 2,599 2,275 14% Revenue Per TEU (US$) 842 787 7% Net Operating Capacity (TEU) 671,042 594,065 13% Load Factor (%) 85.6 84.5 1.1 9
Slide 10: Unit Operating Cost Saving 1H 2017
Unit Operating Cost Saving 1H 2017 1H 2017 / 1H 2016 1H 2017 Per Lifting %▲ Proportion Total costs 3% 100% Cargo costs -1% 57% Equipment and repo costs -2% 14% Vessel Voyage costs -4% 18% Bunker costs 55% 12% 10
Slide 11: Bunker price
Bunker price US$/t Sing 380c St (M) 400.00 350.00 300.00 250.00 200.00 150.00 100.00 50.00 - Sing 380c St (M) 11
Slide 12: SCFI
1,000 1,200 1,400 1,600 1,800 0 200 600 800 400 16/10/2009 27/11/2009 15/1/2010 5/3/2010 SCFI 16/4/2010 28/5/2010 9/7/2010 20/8/2010 1/10/2010 12/11/2010 24/12/2010 11/2/2011 25/3/2011 6/5/2011 17/6/2011 29/7/2011 9/9/2011 21/10/2011 2/12/2011 13/1/2012 24/2/2012 6/4/2012 18/5/2012 29/6/2012 8/10/20
Slide 13: Industry Development - Alliances
Industry Development - Alliances Ocean Alliance 2M THE Alliance 2 Global capacity share1 Far East–Europe trade1 Far East–US trade1 Other HMM + HMM + 1% UASC UASC Other 6% 2M 7% 7% Other 2M 16% 24% 2M 28% THE 34% Alliance HMM + 23% THE UASC Alliance Ocean 5% THE Ocean 32% Alliance Alliance Ocean Alli
Slide 14: Ocean Alliance
Ocean Alliance New Alliance began operation from 1 April 2017. Significant volume growth. Binding agreement for an initial period of 5 years. Trade mix adjustment, and increased long-haul concentration. Implementation phase completed. Planning second year deployment. 14
Slide 15: Long Beach Container Terminal
Long Beach Container Terminal Terminal continues to perform above expectation. Positive P&L impact expected to increase as terminal is further utilised. Over 50% of US$650m budget spent, ongoing spend flat across periods. Depreciation started in 2016: non-material impact in 2017. Strategic
Slide 16: 1H17 Review
1H17 Review Increased liftings and improved contract and spot rates positively impacting revenues. Economic growth fundamentals continue to show further improvement. Net supply growth stabilising due to high scrapping and idling rates, and marginal slowdown in vessel deliveries. Bunker price
Slide 17: Industry Trade Volume – YTD June 2017
Industry Trade Volume – YTD June 2017 YTD YTD YTD Trade 2017 vs 2016 2016 v 2015 2015 v 2014 Trans Pacific EB 4.9% 3.6% 4.3% Asia Europe WB 5.2% 3.7% (4.3%) Intra Asia (IADA) (5.9%) (4.6%) (4.0%) Trans Atlantic 5.0% 3.1% 4.7% WB Sources: JOC, CTS, IADA 17
Slide 18: New Building Deliveries - Static Slots
New Building Deliveries - Static Slots mil TEU 9.2% < 7,499 TEU ships 1.8 1.73 7,500 -14,500NPX 8.5% 6.9% 1.6 6.4% > 13,300 TEU ships 1.47 1.48 1.46 1.4 0.81 1.2 0.60 4.6% 0.73 1.0 0.94 0.89 0.8 0.48 0.6 0.55 0.70 0.50 1.2% 0.4 0.35 0.29 0.34 0.2 0.22 0.32 0.22 0.25 0.22 0.12 0.02 0.0 0.05 2014 2015
Slide 19: Monthly Capacity Growth
Monthly Capacity Growth TransPacific Trade Asia-Europe Trade 415,000 440,000 410,000 435,000 405,000 430,000 400,000 395,000 425,000 390,000 420,000 385,000 415,000 380,000 375,000 410,000 370,000 405,000 365,000 400,000 360,000 JUL-16 JUL-17 OCT-16 AUG-16 DEC-16 SEP-16 MAR-17 APR-17 MAY-17 NOV-16 F
Slide 20: Property Investment
Property Investment Wall Street Plaza Fair value gain of US$27.7 million for 2017 Interim Valuation of US$250 million as at 30 June 2017 Performance is in line with expectations Vacancy rate of 1.3% as at end of 30 June 2017 Hui Xian US$49.9 million (Hui Xian Holding US$36.3 million/Hu
Slide 21: Gs OOCL
17, \™ Gs OOCL SHIPPING AZ
Slide 22: Transaction Summary
Transaction Summary Joint Offerors : COSCO / SIPG. Voluntary General Offer (VGO) to all OOIL shareholders. Offer Price HK$78.67 per share in cash. Pre Conditions: • Regulatory • Shareholders’ approval 22
Slide 23: Transaction Summary
Transaction Summary Timing Post Closing • Retain listed status. • Maintain global HQ function and presence in Hong Kong. • Committed to the continuity and stability of management team, staff, business, and service network. • Retain OOCL brand. 23
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