Cosco Shipping Ports Limited · HKEX:1199
Cosco Shipping Ports — Q3 2018 Earnings Presentation
18 slides from Cosco Shipping Ports's earnings presentation, Oct 29, 2018
Slide 1: 3Q2018 Results
3Q2018 RESULTS 29 October 2018
Slide 2: 1H2018 Highlights / 3Q2018 Financials
1H2018 Highlights 3Q2018 Financials 2
Slide 3: Non-subsidiaries dragged down 3Q2018 Results
Non-subsidiaries dragged down 3Q2018 Results Like-for-like Reported (Exclude newly acquired projects and projects under construction etc.) US$’mn 3Q2018 3Q2017 Change 3Q2018 3Q2017 Change Revenue 253.0 155.6 +62.6% 174.0 (1) 155.6 +11.8% Cost of sales 177.2 98.8 +79.3% 110.9 (1) 98.8 +12.3% Gross Pr
Slide 4: 9-month 2018 Financial Performance
9-month 2018 Financial Performance Like-for-like Reported (Exclude newly acquired projects and projects under construction etc.) 9 months 9 months 9 months 9 months US$’mn Change Change 2018 2017 2018 2017 Revenue 748.4 431.3 +73.5% 518.2(b) 431.3 +20.1% Cost of sales 515.2 276.1 +86.6% 322.4(b) 276
Slide 5: Revenue Growth Remained Strong in 3Q
Revenue Growth Remained Strong in 3Q TEU 3Q2018 3Q2017 yoy% Revenue Total throughput 30,811,695 27,744,774 +11.1 US$253mn Total throughput 29,802,429* 27,744,774 +7.4 (organic) Throughput from 5,793,569 4,355,405 +33.0 subsidiaries Other Throughput from non- US$156mn subsidiaries 25,018,126 23,389,3
Slide 6: Newly acquired added costs – Costs of Sales
Newly acquired added costs – Costs of Sales • On a like-for-like basis, ie exclude Noatum and Zeebrugge, costs of sales only had an increase of 12.3% Total US$177.2mn • Noatum is a major reason for costs increased in 3Q2018; given that it’s just completed, costs will come down in Nansha 12.3% FY2019
Slide 7: Growth in profits mainly from subsidiaries
Growth in profits mainly from subsidiaries Terminal Profits Top 10 Terminal Contributors 3Q2018 3Q2017 US$91.8mn US$87.8mn QPI ** QPI 20.4% Subsidiaries Subsidiaries Yantian 17.2% Yantian 17.6% 17,945 22,508 Piraeus 7.6% Shanghai Pudong 7.2% Kumport 6.1% Piraeus Terminal 6.9% Shanghai Pudong 5.7% Sh
Slide 8: Financial Position Remains Healthy
Financial Position Remains Healthy US$mn 30 Sept 2018 30 June 2018 30 Sept 2017 Total Debt 2,368 2,307 1,953 Average cost of debt 3.38% 3.41% 3.19% Cash on hand (excluding 678 573 801 restricted cash) Net debt to equity 29.5% 29.4% 20.7% Interest coverage 6.76x 6.91x 7.44x(1) Net debt to annualized
Slide 9: Operations Review
1H2018 OperationOperations Reviews Review 9
Slide 10: Geographical Analysis
Geographical Analysis Terminal Profits Equity Throughput US$87.8mn US$91.8mn 8,617,545 TEU 9,599,513 TEU Overseas Overseas Overseas 29.0% 20.8% Overseas 14.1% S.W. Coast 0.7% 21.4% S.W. Coast 1.2% Pearl River S.W.Coast 1.4% Pearl River S.W.Coast 1.7% Delta Delta 28.5% Pearl River Pearl River 25.2% D
Slide 11: More Synergies, Bigger Growth
1H2018 Operations More Synergies Review Bigger Growth 11
Slide 12: Strong Synergies with Ocean Alliance
Strong Synergies with Ocean Alliance Throughput from Ocean Alliance as % of total throughput Throughput from Ocean Alliance, COSCO SHIPPING and (6 Subsidiaries) OOCL as % of total throughput* 90.0% 89.0% 3Q2017 3Q2018 OOCL COSCO SHIPPING Ocean Alliance** 3.30% 71.1% 2.30% 61.8% 62.5% 62.3% 24.90% 21
Slide 13: Invest for Sustainable Growth
1H2018 Invest for Operations Review Sustainable Growth 13
Slide 14: CAPEX
CAPEX CAPEX Spent 9-mth 2018 Total: US$201mn Others Investment 0.4% in PSA 10.0% • 4Q2018 CAPEX : < US$550mn • FY2019 CAPEX: < US$1200mn P&E 89.6% We will continue to seize development opportunities and prioritize our investments in those adding greater value to us 14
Slide 15: FY2018 Guidance
1H2018 Operations FY2018 ReviewGuidance 15
Slide 16: 2018 Full-year Guidance
2018 Full-year Guidance • Throughput for FY2018 to have low-double digit growth • Growth in subsidiaries continue to outperform non-subsidiaries Despite • Traditional low season in 4Q • Sino-US trade tension started to impact imports and exports • Geopolitical risk • Depreciation of currency 16
Slide 17: 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 18: Thank you!
1H2018 Operations Review Thank you! 18