Cosco Shipping Ports Limited · HKEX:1199
Cosco Shipping Ports — FY2022 Earnings Presentation
26 slides from Cosco Shipping Ports's earnings presentation, March 2023
Slide 1: FY2022 Results Presentation
FY2022 Results Presentation March 2023
Slide 2: Agenda
AGENDA 1. Key Highlights 2. Financial Performance 3. Operational Review 4. Strategy & Outlook 5. Q&A 6. Appendix ésco PHSB OSRAA SHIPPING COSCO SHIPPING Ports Limited WAZ The Ports for ALL 9
Slide 3: 1. Key Highlights
cosco PRABEORRAA sH Re NG COSCO SHIPPING Ports Limited AGENDA The Ports for ALL 9 1. Key Highlights
Slide 4: FY2022 Subsidiary Terminals' Profitability
FY2022 Subsidiary Terminals’ Profitability Strong Terminal Profit Contributed from Subsidiary Terminals ➢ Subsidiary terminals’ profit in 2022 rose 53.7% YoY to USD 136.5M, which is more than double than the pre-covid subsidiary terminals’ profit in 2018. The surge was mainly driven by the contribut
Slide 5: 2. Financial Performance
LIX cosco PRABEORRAA SHIPPING COSCO SHIPPING Ports Limited AGENDA een 2. Financial Performance
Slide 6: FY2022 Financial Highlights
FY2022 Financial Highlights Top-Line Growth and Margin Expansion (US$ Million, unless stated otherwise) FY2021 FY2022 Y/Y Revenue 1,208.3 1,441.3 +19.3% Cost (883.1) (1,011.6) +14.5% ➢ Revenue in 2022 was up 19.3% YoY, Gross profit 325.2 429.7 +32.1% gross profit grew by 32.1% YoY and gross profit m
Slide 7: FY2022 Revenue and Gross Profit Margin
FY2022 Revenue and Gross Profit Margin Most Subsidiaries Recorded Margin Expansion FY2022 Subsidiaries’ revenue (US$ Million) and GPM (%) ➢ Strong earnings contributors: China Sub Xiamen Ocean Gate • GPM in China remained at a relatively high 60.0% Overseas Sub Guangzhou Nansha Rev: 144.6M (+12.7% Y
Slide 8: FY2022 Terminal Profit
FY2022 Terminal Profit Subsidiaries to Drive Our Profitability ➢ Terminal profit by regions: • Terminal profit in the Bohai Rim, S.E. Coast and overseas regions recorded a strong growth due to the contribution from TCT and higher profitability of our subsidiaries in 2022 • Given global economic slow
Slide 9: Financial Position
Financial Position Well Positioned to Capture M&A Opportunities for Sustainable Growth ➢ Strong cash and cash bank balance, healthy net gearing ratio and low borrowing rate enable us to continue to capture potential M&A opportunities for sustainable development ➢ Total CAPEX budget in 2023 is approx
Slide 10: 3. Operational Review
cosco PRABEORRAA AGEND A SLIPPING COSCO SHIPPING Ports Limited The Ports for ALL 9) 3. Operational Review
Slide 11: FY2022 Throughput
FY2022 Throughput Equity throughput was up 5.5% ➢ 45% of equity throughput was from our controlling subsidiaries, up 8.0pps YoY ➢ Equity throughput in Bohai Rim increased by 26.5% YoY, mainly due to the contribution from newly acquired TCT project FY2022 Total throughput (Million TEU) FY2022 Equity
Slide 12: FY2022 Market Development
FY2022 Market Development Further Optimizing Customer Portfolio & Continuing to Increase ASP ➢ Optimizing our customers portfolio by further exploring the market of non-shipping alliance members during 2022 ➢ Continuing to make positive progress of introducing new shipping lines and increasing ASP F
Slide 13: Technological Innovation
Technological Innovation Continuing the Construction of Smart Ports to Facilitate Lean Operations Management Further enhancing terminals’ IT infrastructure through the participation of GSBN and application of blockchain technology ➢ Launching CSP Portal for GSBN at 8 subsidiary terminals, promoting
Slide 14: New Sources of Growth
New Sources of Growth Accelerating the Development of Supply Chain Projects and Value-Added Products Supply chain projects EV Business CSP Abu Dhabi CFS Phase 1 CSP Zeebrugge CFS ➢ In 2022, China's exports of electric vehicles surged 131.8% YoY. High-tech, value-added Total area Warehouse Capex Comm
Slide 15: 4. Strategy & Outlook
cosco PRABEORRAA sH Re NG COSCO SHIPPING Ports Limited AGENDA The Ports for ALL 9 4. Strategy & Outlook
Slide 16: Strategy
Strategy Global Terminal Network and Lean Operations Management Capitalizing on Further implementing global economic growth to lean operations management to boost optimize terminal portfolio quality and efficiency ➢ Continuing to develop a global ➢ 3 keys to success in lean operations management: te
Slide 17: 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 18: 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 and ➢ To maintain 100% hazard-free disposal of waste improve water use efficienc
Slide 19: Outlook
Outlook Challenges ➢ Weakening global economic ➢ Further strengthening the performance growth with ongoing destocking of our strategic subsidiary terminals and continuing to enhance the global ➢ Increasing risks of geopolitical ports network and to optimize our conflict terminal portfolio, especiall
Slide 20: 5. Q&A
AGENDA 5. Q&A Global Supply. Chain Network. eaeaith PRIDE IE cosco PRSBSOARAA SHIPPING COSCO SHIPPING Ports Limited Nagy The Ports for ALL Y Satis og iia :
Slide 21: 6. Appendix
cosco PRABEORRAA AGENDA seme AE. Ports Limited 6. Appendix SUSTAINABLE ~ Wepp 2a: ISIGHT ACTION
Slide 22: Terminal Profit
Terminal Profit Terminal Profits US$' 000 FY2021 % of total FY2022 % of total YoY Bohai Rim 140,708 33.6% 155,231 35.1% 10.3% QPI 120,505 28.8% 128,191 29.0% 6.4% Dalian Container Terminal 5,694 1.4% 5,791 1.3% 1.7% Dalian Dagang Terminal 61 0.0% 86 0.0% 41.0% Tianjin Port Euroasia Terminal 866 0.2%
Slide 23: Terminal Profit (Continued)
Terminal Profit (Continued) Pearl River Delta 121,262 29.0% 103,747 23.5% -14.4% Yantian International Terminal 69,372 16.6% 56,658 12.8% -18.3% Nansha Stevedoring Terminal 6,652 1.6% 5,731 1.3% -13.8% *Guangzhou Oceangate Terminal 22,706 5.4% 26,249 5.9% 15.6% COSCO-HIT Terminal 12,701 3.0% 9,244 2
Slide 24: SDGs of Our Major Concern
SDGs of Our Major Concern Aligning with the Sustainable Development Goals of the United Nations 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
Slide 25: Key and Ongoing Initiative under Our Sustainability Approaches
Key and Ongoing Initiative under Our Sustainability Approaches Promoting Inclusive Development 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 Improving operation
Slide 26: 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