Orient Overseas (international) Limited · HKEX:316
Orient Overseas (international) — FY2013 Earnings Presentation
29 slides from Orient Overseas (international)'s earnings presentation, Mar 10, 2014
Slide 1: Orient Overseas (International) Ltd 2013 Annual Results
Orient Overseas (International) Ltd Presentation 2013 Annual Results March 10th 2014 1
Slide 2: Result Summary
Result Summary Profit After Tax US$47.1 million Profit Attributable to Equity Holders US$47.0 million Group Revenue US$6,232 million Earnings Per Share US7.5 cents Final Ordinary Dividend US1.88 cents per share (HK$0.147) 2
Slide 3: Significant Events
Significant Events • Expanded G6 Network • New Deliveries • MHRP – Crane delivery • IT investment 3
Slide 4: Summary Highlights – 2013
Summary Highlights – 2013 • Supply and demand imbalance continues with supply at 5.7% and demand at 4.2% for 2013* • Container Transport and Logistic business reported EBIT of US$75 million • The Group took delivery of 8 x 13,208 TEU ‘Mega’ class vessels and 2 x 8,888 TEU ‘SX’ class vessels in 2013
Slide 5: Summary Highlights – 2H13
Summary Highlights – 2H13 • Container Transport and Logistics EBIT margin increased from 0.1% in 1H13 to 2.3% in 2H13 • Full year Container Transport and Logistics EBIT margin of 1.2% • Load factor weakness in 1H 2013 at 72% but recovered in 2H 13 at 75%. Full year load factor brought back to 73%, c
Slide 6: Group Results – Full Year 2013
Group Results – Full Year 2013 2013 2013 Restated US$M Final Interim 2012 Final Revenue 6,232 3,025 6,459 Group EBIT 108 15 343 Profit / (Loss) After Tax 47 (15) 296 Earnings / (Loss) per Ordinary Share 7.5 (2.4) 47.2 (US$ Cents) 6
Slide 7: Income Statement – 2013
Income Statement – 2013 2013 2013 Restated US$M Final Interim 2012 Final Group Profit / (Loss) for the Year 47.1 (15.1) 296.3 Made up of: Profit / (Loss) from Container 17.6 (22.6) 196.2 Transport and Logistics OOIL Other Activities 29.5 7.5 100.1 7
Slide 8: Income Statement – 2013
Income Statement – 2013 Restated 2013 2013 2012 US$M Final Interim Final Container Transportation and Logistics - 75.1 2.8 243.9 EBIT OOIL Activities - EBIT Wall Street Plaza Revaluation (6.9) (4.6) 0.5 Hui Xian Dividends and Distribution 10.2 9.1 43.7 Interest and Investments 20.1 0.1 52.9 Others 9
Slide 9: Group Balance Sheet Highlights
Group Balance Sheet Highlights Restated US$M 2013 2012 Non-current Assets 6,146 5,466 Current Assets 2,844 2,765 Total Assets 8,990 8,231 Non-current Liabilities 3,328 2,391 Current Liabilities 1,185 1,352 Total Liabilities 4,513 3,743 Shareholder’s Funds 4,471 4,482 Non-controlling Interests 6 6 To
Slide 10: Total Liquid Assets
Total Liquid Assets US$M 31 Dec 2013 31 Dec 2012 Restricted Bank Balances 26 19 Cash and Bank Balances 1,912 1,862 Portfolio Investments, Equities and Bonds 473 459 Total 2,411 2,340 10
Slide 11: Net Debt Position
Net Debt Position US$M 31 Dec 2013 31 Dec 2012 Liquid Assets 2,411 2,340 Debt 3,534 2,882 Net Debt 1,123 542 11
Slide 12: Debt-to-Equity Ratios
Debt-to-Equity Ratios Gross Debt to Equity Ratio Net Debt to Equity Ratio 2.0 2.0 1.5 1.5 1.0 1.0 0.79 0.65 0.63 0.64 0.48 0.5 0.5 0.31 0.25 0.12 0.06 Net Cash 0.0 0.0 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 12 12
Slide 13: OOCL Revenue and Lifting – FY 2013
OOCL Revenue and Lifting – FY 2013 Revenue by Trade Lifting by Trade Unit: US$’000 Total US$5,608,614,000 Total 5,293,537 TEU 13
Slide 14: Total Operating Costs
Total Operating Costs 2013 2012 13% 13% 13% 11% 49% 48% 5% 7% 20% 21% 14
Slide 15: Container Transportation (excl. Logistics)
Container Transportation (excl. Logistics) 2013 2013 2012 Final Interim Final Liftings ('000) 5,294 2,549 5,217 Revenue (US$M) 5,609 2,772 5,899 Revenue Per TEU (US$) 1,060 1,088 1,131 Net Operating Capacity (TEU) 496,106 477,859 452,246 Load Factor (%) 73% 72% 73% 15
Slide 16: OOCL Static Slot Capacity Breakdown
OOCL Static Slot Capacity Breakdown No of Capacity Average % of Total As at 31 Dec 2013 Vessels (TEU) (TEU) Fleet Owned 54 393,084 7,279 79% Long Term Chartered 7 41,216 5,888 8% Short Term Chartered 40 138,827 3,471 28% Charter-Out (7) (77,021) (11,003) (15%) Total 94 496,106 5,278 100% 16
Slide 17: OOCL Fleet for Future Deliveries
OOCL Fleet for Future Deliveries • Delivery schedule of vessels: 2014 (8,888 TEU x 2) & (13,208 TEU x 2) 2015 (8,888 TEU x 2) • 4 x 8,888 TEU vessels were placed with Hudong– Zhonghua Shipbuilding (Group) Co. Ltd, PRC • 2 x 13,208 TEU vessels were placed with Samsung Heavy Industries Co., Ltd. 17
Slide 18: OOCL Future Static Slot Capacity
OOCL Future Static Slot Capacity New Deliveries Chartered Out New Deliveries Existing Fleet 600,000 CAGR*=+4% 500,000 %▲+9.7% 400,000 300,000 200,000 100,000 0 31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15 31-Dec-16 *Note: CAGR=Compound annual growth rate, which assumes no major change in charter-fleet si
Slide 19: Property Investment
Property Investment • Wall Street Plaza – Fair value loss of US$6.9 million for 2013 – Valuation of US$170M as at 31 December 2013 – Performance is in line with expectations – Vacancy rate of 4.6% as at end of 31 December 2013 • Beijing Oriental Plaza – Directly and indirectly holding approx. 4.6% o
Slide 20: Macro-Economy
Macro-Economy • The sentiment of economic turn round of the US, Eurozone economics and Abenomics seems to run ahead of the physical market • Seaborne trade growth was subdued and overall 2013 was not a particularly good year for the industry 20
Slide 21: Macro-economy - 2014
Macro-economy - 2014 • The industry is still under a great deal of challenges from supply and demand imbalances which will exert pressure on freight rates • Supply and demand dynamics drives the industry to look further into cost rationalization, efficiencies gains, and alliance/partnership • IMF fo
Slide 22: New Vessel Orders YTD 2014
New Vessel Orders YTD 2014 Updated 5-Feb-2014 22
Slide 23: New Vessel Orders YTD 2014
New Vessel Orders YTD 2014 Updated 5-Feb-2014 Source: News Media 23
Slide 24: New Vessel Orders in 2013
New Vessel Orders in 2013 Updated 2-Jan-2014 Source: News Media 24
Slide 25: Transpacific Capacity Cascading
Transpacific Capacity Cascading
Slide 26: Trade Outlook
Trade Outlook • Further tonnage growth leads to continued over capacity • Vessel cascading effect from Asia-Europe trade will have a negative impact on other trades in particular Transpacific and Intra-Asia Trades • Trans-Atlantic trade remains stable • Demand growth in 2014 will outpace that of 201
Slide 27: Group Focus
Group Focus • While the 1H 2013 was disappointing from both the demand and freight rate, 2H improved moderately and some lost grounds were made up • The Group continues to focus on contribution enhancement by way of a disciplined approach to differentiation and segmentation • Continuous effort to dr
Slide 28: OOIL
OOIL • Headquartered in Hong Kong • Principal business activities: container transport and logistics • Over US$6.2 billion revenue in 2013 • Shareholders Equity: US$4.5 billion • 320 offices in 65 countries • Employing over 9,210 staff globally • Operating 94 vessels as of Dec 2013 29
Slide 29: Disclaimer
Disclaimer The information provided is for reference only and includes data obtained from sources provided by the relevant information provider(s) and is subject to change without notice. Orient Overseas (International) Limited (“OOIL”) and its affiliates, and the concerned information provider(s),
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