U-ming Marine Transport Corp. · TWSE:2606
U-ming Marine Transport — Non-Deal Roadshow (September 2006)
20 slides from U-ming Marine Transport's roadshow presentation, Sep 28, 2006
Slide 1: U-Ming Marine Transport Corporation
U-Ming Marine Transport Corporation 28th Sept 2006
Slide 2: Company Introduction
Company Introduction A member of Far Eastern Group. Publicly listed at the Taiwan Stock Exchange (Code: 2606). Largest dry bulk fleet owner in Taiwan. 9 33 bulkers in about total of 3.4 mdwt. (including JV owned, under construction and charter-in) Vessel Type Current Under Construction Capesize 12 1
Slide 3: Corporate Structure
Corporate Structure U-Ming Marine Transport Operation HQ (Taipei) U-Ming Marine U-Ming Marine Transport (Singapore) Transport (HK) Pte Ltd AIS Pte Ltd CEPA Shanghai office Cape Asia Ltd Great Era Investment Cape Asia NB Ltd Elegance Carriers Cape Asia NB (II) 2
Slide 4: Company Performance
Company Performance A highly competitive, profitable company. 2003 2004 2005 EPS 3.7 9.57 7.01 DPS 3.5 6.0 5.0 CPS 3.8 7.38 8.69 Dividend Yield 18% 13% 11% ROE 23.7% 52% 34.7% P/E Ratio 5.24 4.93 6.30 L/A Ratio 43% 29% 23% Economic 1,380 m 5,599 m 4,512 m Value Added *2006 H1 EPS: 2.13 3
Slide 5: Annual Revenue & Profit
Annual Revenue & Profit 140 Hundred 127.79 Million 120 113.37 100 Consolidated 80 75.31 68.42 Revenue 60.16 60 Consolidated 40 43.05 Income 22.99 18.26 20 0 2003 2004 2005 2006H1 NTD 10 9 9.57 8 7 7.01 EPS 6 6 5 DPS 5 3.7 3.5 4 3 2.13 2 1 0 2003 2004 2005 2006H1 4
Slide 6: World Economic Outlook
World Economic Outlook China economy growth leads to surging raw material prices( 2006 H1 GDP reached 10.9%) High Oil price, WTI crude oil price hit USD 77/pb on July 14, 2006. IMF projected world GDP growth to remain a strong rate at 4.9% in 2006. 2004 2005 E 2006 F 2007 F China 10.1 9.9 9.5 9 Indi
Slide 7: Dry Bulk Demand Prospects
Dry Bulk Demand Prospects Dry bulk sea trade volume forecasted 4% increase to 2,647 mt in 2006. Price of raw material remains high, demand sustains. China steel production increases, growth of iron ore estimated about 20% to 330mt in 2006. Booming India economy leads to increase of coking and therma
Slide 8: Growth of Dry Bulk Seaborne Trade
Growth of Dry Bulk Seaborne Trade Dry Bulk Sea Trade Volume MT 3000 2647 2446 2554 2500 2290 2172 2000 1500 1000 500 0 2002 2003 2004 2005 2006f MT 2002 2003 2004 2005E 2006F Iron ore 481 518 597 662 710 Coking Coal 173 179 180 182 186 Steam Coal 407 453 474 498 512 Grain 271 264 275 271 281 5 Major
Slide 9: Crude Steel Production Growth
Crude Steel Production Growth World Crude Steel 2006 World Crude Steel Production Production MT MT 110,000 1400 CAGR: +6.09% 1215 1200 1132 105,000 1067 969 1000 904 100,000 800 95,000 600 90,000 400 200 85,000 0 80,000 2002 2003 2004 2005 2006f Jan Feb Mar Apr May Jun July Source: IISI 8
Slide 10: China: Gulp for iron ore
China: Gulp for iron ore China Iron Ore Import 2006 China iron ore import MT MT 450 35 400 CAGR: +22.36% 387.6 30 350 334.2 25 300 275.5 250 208.1 20 200 148.2 15 150 111.5 10 100 50 5 0 0 2002 2003 2004 2005 2006f 2007f Jan Feb Mar Apr May Jun July China’s iron ore imports rose 22.9% to 161.36MT in
Slide 11: China: Coal import increasing sharply
China : Coal import increasing sharply MT China coal import 2006 China Coal import MT 40 4.5 +88.2% 35 4 35 3.5 30 26.17 3 25 2.5 20 18.6 2 1.5 15 1 10 0.5 5 0 Jan Feb Mar Apr May June 0 2004 2005 2006f China’s coal imports rose 51.6% to 18.33 MT in six months to June Source: China Customs; Uming Re
Slide 12: China: Coal export dropping
China : Coal export dropping 2006 China Coal export MT China coal export MT 8 100 7 90 86.67 -27.3% 6 80 71.68 5 70 63 4 60 3 50 2 40 1 30 0 Jan Feb Mar Apr May June July 20 10 China’s coal export decreased 12.7% 0 to 32.07 MT in six months to June 2004 2005 2006f Source: China Customs; Uming Resear
Slide 13: India: steam & coking coal imports moving up
India : steam & coking coal imports moving up MT 80 CAGR +13.11% 70 70 60 48.4 50 39.1 40 30.1 30 26 23.1 20 10 0 2002 2003 2004 2005 2006f 2010f Source: The ministry of Coal, India 12
Slide 14: Current Orderbook for delivery
Current Orderbook for delivery in Current Orderbook for delivery in .. MT 35 30.8 30 25 20.3 20 15.9 17.7 15 10 7.9 5.9 5.2 6.2 5.9 4.9 3.6 4.4 5 1.2 1.8 2.2 0 2006H2 2007 2008+ Total Bulker Capesize Panamax Handymax Handysize Source: Clarkson dry bulk outlook in 2006 June 13
Slide 15: Bulk carriers on order vs 20+ year fleet
Bulk carriers on order v.s 20+ year fleet Million Dwt 46.7 Orderbook 48 44 20 years & over 40 25 years & over 36 32 29.1 28 24.5 24 22.1 21.2 20 63.6% 18.6 16.5 16 12.8 25.1% 33.3% 19% 12 22.6% 7.5 18.3% 8 6.0 23.9% 18.4% 4 4.6 4 7.6% 5.8% 7.6% 4% 0 Handysize Handymax Panamax Capesize Source: Clarks
Slide 16: 20+ year old dry bulk carrier fleet
20+ year old dry bulk carrier fleet Mdwt % 110 30 100 Capacity Share of fleet 90 25 80 20 70 60 15 50 40 10 30 20 5 10 0 0 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: Clarkson, SSY, Uming Research 15
Slide 17: Dry bulk carrier net fleet changes
Dry bulk carrier net fleet changes DWT -MT 25 22.1 20 20.8 18.3 15 14.2 12.3 10 7.3 7.6 7.4 5 2.6 0 -5 -10 Additions Deletions Net Change -15 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: SSY, Uming Research 16
Slide 18: Port Congestion factor
Port Congestion factor Days 9 8 7.68 7 6.6 6 5 5 4.43 4.33 4.34 4 3.7 3.54 2.75 3 2 1 1 0 E. Aus W.Aus Brazil Indonesia China 2005 2006 H1 Source: Uming Research 17
Slide 19: Outlook
Outlook Short term Thermal coal consume bounces on oil record Japan nuclear facilities outages to boost coal demand Steel price forecasts in steady for H2 2006 Heat wave in Europe and N. America further consumes more coal in Summer in power plants . 2007 Supply increment will slower than 2005 and 20
Slide 20: Competitive Advantages
Competitive Advantages Provide full service portfolio with comprehensive vessel types. Take advantage of capital strengths to secure competitiveness over other players. Enforce maintenance program to improve fleet competitiveness. Flexible deployment of fleet with the mixter of long and spot cargo.
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