Cosco Shipping Ports Limited · HKEX:1199
Cosco Shipping Ports — COSCO Pacific — H1 2010 Earnings Presentation
14 slides from Cosco Shipping Ports's earnings presentation, Aug 24, 2010
Slide 1: 2010 Interim Results Press Conference
2010 Interim Results Press Conference 24 August 2010 COSCO Pacific Limited 1
Slide 2: Profit contribution from continuing operations grew by 20.6%
Profit contribution from continuing operations grew by 20.6% 1H2010 1H2009 P&L YoY US$ million US$ million Turnover 222.66 + 40.0% 159.03 Gross profit 69.77 - 4.4% 73.01 Operating profit 55.05 - 4.3% 57.55 Operating profit 43.37 + 15.1% 37.69 after finance income & cost Share of profits less losses
Slide 3: Net profit increased by 81.7%
Net profit increased by 81.7% 1H2010 1H2009 P&L YoY US$ million US$ million Profit from continuing operation 107.44 + 20.6% 89.11 Profit on disposal of COSCO Logistics 84.71 n/c - Profit contribution from COSCO Logistics - n/c 17.02 Profit attributable to equity holders 189.94 +81.7% 104.51 3
Slide 4: Net profit breakdown
Net profit breakdown 1H2010 1H2009 Net profit by segments YoY US$ million US$ million Terminals 39.57 - 11.4% 44.66 Container leasing, management and sale 47.99 + 29.5% 37.05 Container manufacturing 26.94 -8.1% 29.32 Logistics - n/c 17.02 Core profit 114.50 - 10.6% 128.05 Net corporate expense & fin
Slide 5: Stable payout ratio with special dividend distribution
Stable payout ratio with special dividend distribution DPS / EPS 1H2010 YoY 1H2009 Total basic earnings per share Note 1 US7.96 cents + 70.8% US4.66 cents HK13.7 cents HK14.4 cents Interim dividend per share Note 2 - 4.9% US1.759 cents US1.862 cents HK11.1 cents Special dividend per share n/c — US1.
Slide 6: Healthy financial position with gearing reduced to 26.8%
Healthy financial position with gearing reduced to 26.8% 30/6/2010 YoY 31/12/2009 Net debt to equity 26.8% -15.1pp 41.9% Total assets (US$ million) 5,148 +11.1% 4,635 Total liabilities (US$ million) 1,797 +1.1% 1,777 Total debt (US$ million) 1,565 -2.4% 1,604 Net assets (US$ million) 3,351 +17.2% 2,
Slide 7: Expand global business network
Expand global business network TAKEOVER STRATEGY Piraeus Terminal • A wholly-owned subsidiary CONTROL • 35-year concession right starting from October 2009 GLOBAL network • Transshipment hub in Mediterranean with primary focus in China • Gateway to South Europe • Handled 376,727 TEU in 1H2010 PERFOR
Slide 8: Strong equity throughput grew by 25.3%
Strong equity throughput grew by 25.3% Terminal division 1H2010 YoY change 1H2009 Divisional revenue Note 1 (US$ million) 103.27 +131.4% 44.62 % of total revenue 46.4% +18.3pp 28.1% Divisional profit (US$ million) 39.57 -11.4% 44.66 Divisional profit (adjusted) (US$ million) 43.22 +23.1% 35.10 Divis
Slide 9: Outstanding throughput growth in Pearl River Delta & Overseas
Outstanding throughput growth in Pearl River Delta (+25.1%) & Overseas (+39.7%) YoY change 1H2010 total throughput: +18.7% to 22.43 million TEU 1H2010 equity throughput: +25.3% to 5.46 million TEU Million TEU 12.5% Qingdao Qianwan 4.98 21.3% Yantian 4.60 8.2% Shanghai 1.55 10.4% Suez Canal 1.38 Thro
Slide 10: Acquisition of additional 10% interest in Yantian Terminals
Acquisition of additional 10% interest in Yantian Terminals ACQUISITION STRATEGY 10% effective interest in Yantian Terminals • Increased effective interest in Yantian Terminals from 5% to 15% CONTROL • From AFS to ASSOCIATE COMPANY in June 2010 GLOBAL network • 44% market share of total throughput i
Slide 11: Utilization rate increased by 5.1pp
Utilization rate increased by 5.1pp Container leasing division 1H2010 YoY change 1H2009 Divisional revenue (US$ million) 119.39 +4.4% 114.41 % of total revenue 53.6% -18.3pp 71.9% Divisional profit (US$ million) 47.99 +29.5% 37.05 Divisional profit % of total core profit 41.9% +13.0pp 28.9% Fleet ca
Slide 12: Stable leasing revenue: 92.5% long-term leases
Stable leasing revenue: 92.5% long-term leases As at 30 June 2010 Leasing 92.5 % of leasing revenue Customers Fleet Capacity containers under long-term leases Of leasing revenue (1H2010: US$97m) SALE & 118,094 TEU 1,605,963 1,597,779 COSCON 15.1% TEUs TEUs LEASEBACK 10 years long-term 7.4% 7.4% 34.1
Slide 13: Market Outlook
Market Outlook • Constrained global demand – Modest economic growth in Western nations • Sustainable economic growth of China in 2010 – GDP: +9.5% – Export / Import: + 24.5% / + 33.6% – China port total throughput: 140 million TEUs (YoY: +16%) • Positive business outlook for global shipping liners i
Slide 14: Develop terminal business to be its principal earnings driver
Develop terminal business to be its principal earnings driver Achieve solid growth in container leasing business. • Strengthen its leading position in the industries – Container terminals in China are likely to achieve solid throughput growth in the second half while the acquisition of additional 10