Cosco Shipping Ports Limited · HKEX:1199
Cosco Shipping Ports — FY2017 Earnings Presentation
23 slides from Cosco Shipping Ports's earnings presentation, Mar 26, 2018
Slide 1: FY2017 Results Investor Presentation
FY2017 Results Investor Presentation 26 March 2018
Slide 2: Content
CONTENT Page Reviews of FY2017 • FY2017 highlights 4 • Well positioned to capture growth 5 • Financial highlights 6 • Net profit analysis 7 • Terminal profit analysis- increasing contributions from subsidiaries 8 • Terminal profit by regions 9 • Equity throughput on the rise 10 • Analysis of equity
Slide 3: FY2017 Reviews
FY2017 Reviews GLOBALIZATION 3
Slide 4: FY2017 Highlights
FY2017 Highlights • Total throughput was 100.2mn TEU*, up 5.4% yoy, total equity throughout was 32.0mn, up 8.6% yoy; excluding QPI and QQCT, total throughput increased 13.4% to 87.9mn TEU, equity throughput was 29.7mn, up11% yoy • Own 48 port companies, operate and manage 269 berths and 35 ports wor
Slide 5: Well positioned to capture growth
Well positioned to capture growth Port operator with Changing landscape of the supports from shipping shipping industry company Increasing Decision of investment in port companies Trend of mega demand for links closely with network of routes of vessel terminals with shipping companies modern facilit
Slide 6: Financial Highlights
Financial Highlights US$’mn FY2017 Change FY2016 Revenue 634.7 +14.1% 556.4 Gross Profit 209.3 +5.1% 199.1 Share of profit from JV & associates 236.6 +18.1% 200.2 Operating profit 409.3 +613.5% 57.4 One-off PAT from QPI Transaction 285.4 - - Continuing operations 512.5 180.9 - Discontinued operation
Slide 7: Net profit analysis
Net profit analysis US$ mn FY2017 YoY FY2016 Terminal profit 295.1 +21.6% 242.4 Adjusted net profit* 227.1 +25.5% 180.9 FY17 Terminal profit by regions Top 10 profit contributors FY17 FY16 QPI 18.3% Yantian 21.1% Overseas S.W Coast Yantian 17.4% QQCT 20.0% 0.7% 14.2% Shanghai Pudong 7.8% PCT 12.9% S
Slide 8: Terminal profit analysis – Increasing contributions from subsidiaries
Terminal profit analysis – Increasing contributions from subsidiaries US’mn US’mn FY16 250 +29.2% 237 FY17 70 FY16 FY17 59 58 60 200 185 50 +38.1% 38 150 40 30 28 100 20 50 10 0 0 Subsidiaries (exclude PCT) Subsidiaries Non-subsidiaries • Terminal profit of subsidiaries, exclude PCT, increased 38.1%
Slide 9: Terminal profit by regions
Terminal profit by regions US$ mn FY2017 YoY %* % of total Pearl River Delta 88.1 +7.4 29.9% Bohai Rim* 81.1 +64.3 27.5% Yangtze River Delta 68.7 +12.2 23.3% 100 Southeast Coast and others 13.4 +47.1 4.5% 90 88.1 81.1 FY2016 Southwest Coast 2.1 +42.0 0.7% 82.1 80 FY2017 Overseas terminal** 41.8 +6.7
Slide 10: Equity throughput on the rise
Equity throughput on the rise TEU mn FY2017 YoY % % of total Bohai Rim* 5.2 +1.1 17.4% Pearl River Delta 8.0 +11.6 27.1% 10 Yangtze River Delta 5.6 +3.4 18.8% FY2016 Southeast Coast and 2.9 +16.8 9.8% 8.0 others 8 FY2017 7.5 Southwest Coast 0.5 +19.2 1.8% 7.2 Overseas ** 7.5 +22.3 25.1% 6.1 Total 29
Slide 11: Analysis of equity throughput
Analysis of equity throughput ‘000 TEU 25,000 FY16 +7.7% FY17 20,946 20,000 19,446 15,000 +10.2% 11,053 10,027 10,000 5,000 0 Subsidiaries Non-subsidiaries 11
Slide 12: Throughput growth vs the market
Throughput growth vs the market Total throughput 000’TEU COSCO SHIPPING Ports Total throughout of the region FY 2017 YoY % FY2016 FY2017 YoY % FY2016 Bohai Rim* 15,975 +5.7% 15,113 62,843 +5.2% 59,761 Yangtze River Delta 19,631 +6.1% 18,508 71,844 +9.7% 65,465 Southeast Coast and others 5,080 +12.1%
Slide 13: Remained financially prudent
Remained financially prudent US$mn As of 31 Dec 2017 YoY As of 31 Dec 2016 Total debt 2,334 +55.3% 1,503 Average cost of debt % 3.22 -0.15pp 3.37 Cash on hand 566.4 -32.3% 837.1 Net debt to equity 30.2% 14.0% Interest coverage 12.5x 5.9x Net asset 5,845 +22.7% 4,766 Total assets 8,954 +31.9% 6,786 W
Slide 14: The Five Year Plan - key milestones in FY2017
The Five Year Plan - key milestones in FY2017 SYNERGY 14
Slide 15: Further enhance synergies
Further enhance synergies • In 2017, Ocean Alliance continued to increase calls at our terminals; more contributions from Ocean Alliance are expected in 2018 • Further enhanced synergies with parent company, throughput contributions from parent company continued to increase Subsidiaries Contribution
Slide 16: Strategic partnerships to maximize synergies
Strategic partnerships to maximize synergies Continue to establish close partnerships and good relationships with port groups, terminal operators and international liner companies to further maximize synergies • Formed strategic partnership with QPI in developing overseas businesses; with both parti
Slide 17: Global footprint further extended
Global footprint further extended Dedicated to building a global terminal network with controlling stake that offers linkage effects on costs, services and synergies • Acquired 51% stake in Noatum • Increased stake in Zeebrugge and made it the second overseas wholly-owned terminal following PCT 17
Slide 18: Maximizing value in China market
Maximizing value in China market • Strategic investment in QPI to enjoy the growth of the whole port, QPI was the biggest contributor of terminal profit in FY17 and made up 18.3% of the total • This new model of strategic investment in port authority acts as a significant reference for our future de
Slide 19: Diversifying to terminal-related logistics business
Diversifying to terminal-related logistics business • Diversifying business into terminal-related logistics businesses to • optimize full development potential of entire port districts • further penetrate the business chain • build economies of scale • enhance operational efficiency, competitiveness
Slide 20: Continue to enhance efficiencies
Continue to enhance efficiencies The Group is committed to optimising terminal assets and enhancing the terminal operational efficiency • Signed subscription agreements with Navis and TSB for their terminal operating systems • Adopted a unified management and information system to promote the unific
Slide 21: Our responses to market challenges
CONTROL Our responses to market challenges 21
Slide 22: Our responses to market challenges
Our responses to market challenges • Growth to be driven by volume • Limited impact as only two • Diversify business to terminal terminals of us handle containers extended logistics services for transpacific routes • Formation of a global terminal • Increase business from other network that has link
Slide 23: 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