Zhejiang Expressway Co. Ltd. Class H · HKEX:576
Zhejiang Expressway Co. Ltd. Class H — H1 2005 Earnings Presentation
23 slides from Zhejiang Expressway Co. Ltd. Class H's earnings presentation, 2005
Slide 1: Interim Results Presentation 2005
2005 Interim Results Presentation Creating Value through Service Excellence.
Slide 2: Agenda
Agend a Results Highlights Achievement Highlights Financial Highlights Business Review Toll Road Operations Toll Road-related Business Operations Long-term Investments Expressway Widening Project Outlook
Slide 3: Results Highlights
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Slide 4: Achievement Highlights
Achievement Highlights Turnover grew 13.5%; net profit up 18.1% Traffic volume on Shanghai-Hangzhou-Ningbo Expressway a nd Shangsan Expressway grew 7.2% and 9.5% respectively, with toll income up 9.9% and 16.4% respectively Lower toll rates and revised classification scheme for heavy trucks have boo
Slide 5: Financial Highlights
Financial Highlights Results (unaudited) 2005 2004 (RMB ’000) (RMB ’000) % change For the six months ended June 30 (Re-stated) Turnover 1,673,912 1,474,367 +13.53 Operating costs (507,586) (438,226) +15.83 Gross profit 1,166,326 1,036,141 +12.56 Other revenue 62,221 (6,361) N/A Administrative expens
Slide 6: Financial Highlights (cont'd)
Financial Highlights (cont’d) Turnover Net Profit RMB million RMB million 3,500 1,400 3,132 1,226 3,000 1,200 2,472 1,009 2,500 1,000 2,168 890 2,000 800 761 1,723 711 1,674 % % 7.8 2 7.4 636 +1 602 + 1,474 G R 1,500 GR 600 CA 1,189 CA 492 1,100 446 1,005 1,000 400 368 754 315 7% 599 1 3. 2 % + 17.
Slide 7: Financial Highlights (cont'd)
Financial Highlights (cont’d) ROE Dividend Payout % RMB cents 20 12 11.43 9.94 10 9.20 15 8.19 8 7.10 15 6.6 5.9 10 11 6 5.0 9 4.7 4.1 4 7 3.5 7 5 7 2 4 4 4 3 2 0 0 2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005 Annual Interim
Slide 8: Business Review
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Slide 9: Toll Road Operations
Toll Road Operations Shanghai-Hangzhou-Ningbo Expressway Daily Traffic Volume Full-trip 37,500 2005 32,500 2004 2003 27,500 2002 Traffic volume grew 7.2 22,500 2001 % yoy, averaging 35,29 17,500 2000 5 full-trip equivalents p 1999 er day 1998 12,500 Toll income grew 9.9%, 7,500 totaling approximatel
Slide 10: Toll Road Operations (cont'd)
Toll Road Operations (cont’d) Shangsan Expressway Daily Traffic Volume Full-trip 22,500 2005 2004 17,500 2003 Traffic volume grew 9.5 12,500 2002 % yoy, averaging 20,79 4 full-trip equivalents p 2001 7,500 er day 2000 1999 Toll income grew 16.4%, 2,500 totaling approximately Jan Mar May Jul Sep Nov
Slide 11: Toll Road Operations (cont'd)
Toll Road Operations (cont’d) Lower traffic volume growth rates due to: Macro-economic control measures and slowed down economic growth rate in Zhejiang Province Traffic diversions caused by expressway widening projects (Both on Shanghai-Hanghzou-Ningbo Expressway and on neighboring expressways)
Slide 12: Toll Road-related Business Operations
Toll Road-related Business Operations Turnover grew 35.3% to RMB166.7 million Turnover growth rate > traffic volume growth rate Service Areas Roadside Advertising Vehicle Servicing
Slide 13: Long-term Investments
Long-term Investments Shida Co (50% jointly-controlled entity) Traffic volume grew 23.3%; toll income grew 15.8% to reach RMB40.4 million Profit before taxation increased 43.7% to RMB31.9 million Petroleum Co (50% associate company) Revenue grew 27.1%; net profit reached RMB8.1 million JoinHan
Slide 14: Expressway Widening Project
Expressway Widening Project SHANGHAI Shanghai-Hangzhou-Ningbo Expressway Phase II HANGZHOU Phase III Cost/ Phase I NINGBO Phase From To Length Lane From To Budget (RMB mn) Cost: I Hongken Guzhu 44km 48 Oct 00 Dec 03 SHANGSAN 556 EXPRESSWAY Budget: II Dajing Fengjing 95km 48 Jul 03 end-05 2,463 TAI
Slide 15: Outlook
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Slide 16: Economic Outlook
Economic Outlook Zhejiang Province’s economy is undergoing structural adjustments after more t han ten years of rapid development The ongoing macro-economic control measures have slowed down the investmen t growth rate at the provincial level GDP growth rate for Zhejiang Province may slow down, thou
Slide 17: Business Outlook
Business Outlook Traffic volume on the two expressways are expected to continue to grow, albeit at reduced growth rates Toll income growth rates will be more in line with traffic volume growth rates as the impact of the “truck factor” diminishes Full completion of Widening Project Phase II by end-20
Slide 18: Business Outlook
Business Outlook This slide is for script only Traffic volume on the two expressways are expected to continue to grow, albeit at reduced growth rates Toll income growth rates will be more in line with traffic volume growth rates as the impact of the “truck factor” diminishes Full completion of Widen
Slide 19: Consolidating Our Strengths to Capture Further Growth
Consolidating Our Strengths to Capture Further Growth Continue to search for expressway assets wit h good potential for acquisitions Zhejiang Province will add another 3,500km of expressways within the next 15 years Maximize income generated from existing assets Vehicle handling capacity will be
Slide 20: Interim Results Presentation 2005
2005 Interim Results Presentation Creating Value through Service Excellence.
Slide 21: Appendix I – Balance Sheet
Appendix I – Balance Sheet Balance Sheet (unaudited) As at As at June 30, 2005 Dec 31, 2004 % change (RMB million) (RMB million) Cash and bank deposits 763 804 –5.10 Short-term investments 630 676 –6.80 Total assets 15,874 15,461 +2.67 Total liabilities 3,993 3,649 +9.43 Total debt 2,639 2,443 +8.02
Slide 22: Appendix II – Organization Chart
Appendix II – Organization Chart Zhejiang Expressway Co., Ltd. 99.9995% 51% 73.625% 50% 35% Jiaxing Co Yuhang Co Shangsan Co Shida Co Jiashao Co 50% 51% 27.58% Petroleum Co Development Co JoinHands Technology 51% 70% 85% 45% Lutong Advertising Advertising Co Services Co Concord Property
Slide 23: Appendix III – Zhejiang Province Map
Appendix III – Zhejiang Province Ma p