Slide 1: 2010 Final Results Press Conference
2010 Final Results Press Conference 23 March 2011 COSCO Pacific Limited File: 2011-0323_Final Results_Press Conference 1
Slide 2: Strong revenue and profit growth
Strong revenue and profit growth 2010 2009 P&L YoY US$ million US$ million Turnover 446.49 +27.8% 349.42 Gross profit 166.72 +11.7% 149.25 Operating profit 113.27 +13.4% 99.92 Operating profit 90.37 +36.7% 66.12 after finance income & costs Share of profits less losses of - Jointly controlled entiti
Slide 3: Three non-recurring items
Three non-recurring items 2010 2009 P&L YoY US$ million US$ million Profit attributable to equity holders 361.31 +109.4% 172.53 Profit on disposal of COSCO Logistics (84.71) n/c - Profit contribution from COSCO Logistics - n/c (25.63) Profit on disposal of Dalian Port (7.02) n/c - Dividends received
Slide 4: Core profit grew by 45.7%
Core profit grew by 45.7% 2010 2009 Net profit by segments YoY US$ million US$ million Terminals 119.88 +43.5% 83.55 Container leasing, management and sale 96.37 + 35.0% 71.38 Container manufacturing 91.87 +197.5% 30.88 Logistics - n/c 25.63 Core profit 308.12 +45.7% 211.44 Net corporate expense & f
Slide 5: Stable payout ratio
Stable payout ratio DPS / EPS 2010 YoY 2009 Total basic earnings per share Note 1 US14.17cents + 85.0% US7.66cents HK19.3 cents HK9.3 cents Final dividend per share Note 2 +107.1% US2.483 cents US1.199 cents HK13.7 cents HK14.4 cents Interim dividend per share -5.5% US1.759 cents US1.862 cents HK11.
Slide 6: Terminal business
Terminal business Largest profit contributor Terminal revenue 5 yr CAGR +61.9% (US$ million) 43.8% Terminal division 2010 YoY 2009 34.2% Divisional revenue Note 1 25.3% 195.6 195.59 +63.5% 119.59 (US$ million) 17.1% 119.6 % of total revenue 43.8% +9.6pp 34.2% 9.6% 85.4 51.0 Divisional profit (US$ mi
Slide 7: Terminal business
Terminal business Well balanced throughput growth YoY change Total throughput growth by 19.4% to 48.52m TEU Million TEU 17.9% Qingdao Qianwan 10.57 18.1% Yantian 10.13 7.3% Shanghai 3.20 41.8% Guangzhou South China 3.06 7.4% Suez Canal 2.86 All four regions enjoyed strong throughput growth 6.9% Shan
Slide 8: Container leasing business
Container leasing business Utilisation rate increased by 6.7pp to 97.3% Utilisation well above industry average Container leasing division 2010 YoY 2009 97.3% 96.2% 94.5% 94.6% Divisional revenue (US$ million) 250.90 +9.2% 229.83 94.0% 90.6% 95.0% - Leasing revenue 207.25 +4.6% 198.07 93.0% 91.8% -
Slide 9: Healthy financial position
Healthy financial position • Placement for the acquisition of about 10% interests in Yantian Terminal: USD584 million • Seizing opportunity for terminal business development while maintaining healthy financial position with cash on hand amounted to US$524 million (2009: US$406 million). Assets and L
Slide 10: 2010 Awards
2010 Awards • “Corporate Governance Asia Recognition Award” – by Corporate Governance Asia magazine • “The Hong Kong outstanding enterprise” – by Economist Digest magazine • “The Asset Corporate Governance Gold Award for Investor Relations” – by The Asset magazine. • “Citation for corporate governan
Slide 11: Opportunities in 2011
Opportunities in 2011 • Solid global economic growth: +4.4% – Moderate economic recovery in US (+3%) and Europe (+1.5%) – Solid economic growth in China (+9.6%) • Increasing utilisation of ports and terminals – China ports: From 73% in 2010 to 79% in 2011 – China container ports throughput: +13% • E
Slide 12: Challenges in 2011
Challenges in 2011 • Modest economic growth in Europe • Political tension in Middle East region – No significant impact to ports and terminals • Tightening monetary policy in China – Higher interest rates and financial costs • Rising inflation in China and other emerging markets – Increasing labour
Slide 13: Building a solid platform for balanced growth
Building a solid platform for balanced growth • Focus resources to build core competence – Optimising business model with focus on terminals as key earnings growth driver • Strengthened terminal portfolio – Striving to achieve terminal profit exceeding 50% of net profit – Balancing short-term intere