Cosco Shipping Ports Limited · HKEX:1199
Cosco Shipping Ports — Q1 2019 Earnings Presentation
23 slides from Cosco Shipping Ports's earnings presentation, Apr 25, 2019
Slide 1: 1Q2019 Results: Strengthening Global Footprint
1Q2019 Results Strengthening Global Footprint 25 April 2019
Slide 2: Agenda
Agenda 1 Financial Highlights 2 Operational Review 3 Strategies 4 Q&A
Slide 3: Agenda
Agenda 1 Financial Highlights 2 Operational Review 3 Strategies 4 Q&A
Slide 4: Financial Highlights: On the Right Track
Financial Highlights: On the Right Track (US million, unless stated otherwise) 1Q2019 1Q2018 YoY Change Revenue 247.7 237.9 +4.1% Cost of sales 177.6 164.0 +8.3% Gross Profit 70.1 73.9 -5.2% Share of Profits from Joint Ventures & Associates 61.9 63.3 -2.2% Net Profit to shareholders 49.9 69.2 -27.9%
Slide 5: Financial Position: Healthy Balance Sheet
Financial Position: Healthy Balance Sheet (US million, unless stated otherwise) As at 31 March 2019 As at 31 March 2018 Total Debt 2,525.7 2,359.2 Cash on hand (included restricted cash) 635.4 559.6 Net debt to equity 32.2% 29.5% Interest coverage 4.31x 6.11x Net asset 5,865.0 6,100.9 Total assets 9
Slide 6: Upward Trend of Return on Equity Holders – Five-Year Planning On Track
Upward Trend of Return on Equity Holders – Five-Year Planning On Track ROE 6.3 (%) 4.8(2) ROE (%) 1.46 (3) 3.5(1) 1.31 (1) 0.83 0.85 1Q16 1Q17 1Q18 1Q19 FY2016 FY2017 FY2018 Note: (1) Excludes one off gains of FCHL transaction of US$59.0 m and three months of share profits of FCHL of US$7.1 m (2) Ex
Slide 7: Agenda
Agenda 1 Financial Highlights 2 Operational Review 3 Strategies 4 Q&A
Slide 8: Operational: Continuous Support from OCEAN Alliance & Parent
Operational: Continuous Support from OCEAN Alliance & Parent Total Throughput (TEU) 1Q2019 1Q2018 YoY Change Total throughput 28,731,733 27,202,380 +5.6% - Subsidiaries 5,943,433 5,234,258 +13.5% - Non-subsidiaries 22,788,300 21,968,122 +3.7% Total throughput (organic)* 28,526,912 27,202,380 +4.9% E
Slide 9: Geographical Analysis: Increasing Contribution from Overseas
Geographical Analysis: Increasing Contribution from Overseas Equity Throughput FY2016 (Total: 29,473,573 TEU) 1Q2019 (Total: 9,276,920 TEU) Greater China Greater China Overseas Overseas 20.7% 32.1% 67.9% 79.3% 9
Slide 10: Agenda
Agenda 1 Financial Highlights 2 Operational Review 3 Strategies 4 Q&A
Slide 11: Clear and Effective Growth Strategies
Clear and Effective Growth Strategies Globalisation Building a global terminal network with controlling stake Leveraging the synergies with OCEAN Alliance Synergy Strategies Strengthening control and management of the ports and terminals business Increasing the value of these investments through bui
Slide 12: Globalisation: Growing Good Quality Asset Base
Globalisation: Growing Good Quality Asset Base Asset Investments Total Throughput (million TEU) CAPEX: 117.4 CAPEX: Investments – US$128m Investments – US$147m PP&E – US$366m 100.2 95.1 PP&E – US$487m Examples: Example: • COSCO-PSA (one new berth) • Euromax • CSP Abu Dhabi 2016 2017 2018 2019 28.7 C
Slide 13: Synergy: Strong Support from OCEAN Alliance
Synergy: Strong Support from OCEAN Alliance Throughput from OCEAN Alliance as % of total throughput (6 Subsidiaries ) 89.7% 89.4% 1Q2018 1Q2019 67.2% 62.6% 56.6% 54.9% 46.7% 44.0% 39.4% 38.6% 28.3% 25.9% PCT Xiamen Nansha Lianyungang CSP Spain Zeebrugge Group 13
Slide 14: Synergy: Strong support from Ocean Alliance (cont’d)
Synergy: Strong support from Ocean Alliance (cont’d) Throughput from COSCO SHIPPING, OOCL and Growth in Volume Contributions Evergreen + CMA as % of total throughput (1) (1Q2018 vs 1Q2019) COSCO SHIPPING OOCL Evergreen + CMA OCEAN Alliance 2M + THE Alliance Others +1.9% OCEAN Alliance 16.9% 15.7% 30
Slide 15: Control: Cost Reduction by Adopting Technology
Control: Cost Reduction by Adopting Technology Reducing cost by application of Navis N4 system Three terminals will officially launch Navis N4 in coming quarters to reduce operating cost. Navis N4 system ◼ CSP Zeebrugge Terminal, CSP Spain Group-Valencia Terminal and Lianyungang New Oriental Interna
Slide 16: 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 Return on Growth Rate Sh
Slide 17: On Track to Achieve Five-year Target
On Track to Achieve Five-year Target 5-year Target FY2016 By 2021 FY2018 Change (Base Year) Equity Throughput + 60% 37.1mn TEU +25.7% 29.5mn TEU Total Assets + 50% US$9,045.5mn +33.3% US$6,786.5mn Net Profits + 100% US$324.6mn +79.4% US$180.9mn* Note: * Excluding one-off gain from disposal of FCHL a
Slide 18: 2019 Full-year Guidance – Volume
2019 Full-year Guidance – Volume FY2019 Throughput Low double-digit growth* Increasing volume contributions from OCEAN Alliance, 2M and THE Alliance ◼ Jan-Mar 2019 vs Jan-Mar 2018 ◼ 2M+THE Alliance h 26.0% ◼ Ocean Alliance h 1.9% Add Volume from CSP Abu Dhabi Terminal ◼ 2 shipments from OCEAN Allian
Slide 19: CAPEX Budgeted for FY2019
CAPEX Budgeted for FY2019 FY2019 about CAPEX US$1,702 million US$830mn US$872 mn Equity Investments (including investment in China port groups) PP&E (including terminal extended logistics developments) Operation / Development Plans for FY2019 ◼ China port group investments ◼ Step up development of t
Slide 20: Catalysts
Catalysts 1 More development about terminal extending business 2 Potential easing of China-US trade tension 3 Possible value accretive acquisitions or divestments Throughput growth upside on the back of OCEAN Alliance 4 and contribution from newly acquired ports 20
Slide 21: Agenda
Agenda 1 Financial Highlights 2 Operational Review 3 Strategies 4 Q&A
Slide 22: 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 23: Thank you!
cosco SQane his eOsRAA a The Ports for ALL COSCO SHIPPING Ports Limited NI pila | »_- Thank you!