U-ming Marine Transport Corp. · TWSE:2606
U-ming Marine Transport — Non-Deal Roadshow (September 2006)
28 slides from U-ming Marine Transport's roadshow presentation, Sep 5, 2006
Slide 1: U-Ming Marine
U-Ming Marine Merrill Lynch - Investor Road show , Singapore Presented by: President C.K Ong 2006/9/5
Slide 2: Table of Content
Table of Content Why U-Ming Marine? 9 Company Introduction 9 Corporate Structure 9 Past Performance Dry Bulk Shipping Industry 9 World Economy Outlook 9 Market Demand 9 Market Supply Business Strategies 1
Slide 3: Company Introduction
Company Introduction A member of Far Eastern Group. Publicly listed at the Taiwan Stock Exchange (Code: 2606). Largest dry bulk fleet owner in Taiwan. 9 33 bulkers in about total of 3.4 mdwt. (including JV owned, under construction and charter-in) Vessel Type Current Under Construction Capesize 12 1
Slide 4: Corporate Structure
Corporate Structure U-Ming Marine Transport Operation HQ (Taipei) U-Ming Marine U-Ming Marine Transport (Singapore) Transport (HK) Pte Ltd AIS Pte Ltd CEPA Shanghai office Cape Asia Ltd Great Era Investment Cape Asia NB Ltd Elegance Carriers Cape Asia NB (II) 3
Slide 5: Company Performance
Company Performance A highly competitive, profitable company. 2003 2004 2005 EPS 3.7 9.57 7.01 DPS 3.5 6.0 5.0 CPS 3.8 7.38 8.69 Dividend Yield 18% 13% 11% ROE 23.7% 52% 34.7% P/E Ratio 5.24 4.93 6.30 L/A Ratio 43% 29% 23% Economic 1,380 m 5,599 m 4,512 m Value Added *2006 H1 EPS: 2.13 4
Slide 6: Annual Revenue & Profit
Annual Revenue & Profit 140 Hundred 127.79 Million 120 113.37 100 Consolidated 80 75.31 68.42 Revenue 60.16 60 Consolidated 40 43.05 Income 22.99 18.26 20 0 2003 2004 2005 2006H1 NTD 10 9 9.57 8 7 7.01 EPS 6 6 5 DPS 5 3.7 3.5 4 3 2.13 2 1 0 2003 2004 2005 2006H1 5
Slide 7: Credentials
Credentials Ranked No.1 on past 5 years EPS growth in Forbes Asia’s annual best under a billion companies. (Forbes, 2005/11) Listed Top 10 in shareholders return over a three- year period. (Business Week Asian Edition, 2005/10/24) In “ Top 1000 Enterprises Across the Strait”, ranked: (Business Weekl
Slide 8: Table of Content
Table of Content Why U-Ming Marine? 9 Company Introduction 9 Corporate Structure 9 Past Performance Dry Bulk Shipping Industry 9 World Economy Outlook 9 Market Demand 9 Market Supply Business Strategies 7
Slide 9: World Economic Outlook
World Economic Outlook China economy growth leads to surging raw material prices( 2006 H1 GDP reached 10.9%) Oil price continue to rise, WTI crude oil price hit USD 77/pb on July 14, 2006. IMF projected world GDP growth to remain a strong rate at 4.9% in 2006. 2004 2005 E 2006 F 2007 F China 10.1 9.
Slide 10: Dry Bulk Demand Prospects
Dry Bulk Demand Prospects Dry bulk sea trade volume forecasted to increase about 4% to 2,647 mt in 2006. Price of raw material remains high, demand sustains. China steel production increases, growth of iron ore, estimated to increase about 20% to 330MT in 2006. Booming India economy leads to increas
Slide 11: Growth of Dry Bulk Seaborne Trade
Growth of Dry Bulk Seaborne Trade Dry Bulk Sea Trade Volume MT 3000 2647 2446 2554 2500 2290 2172 2000 1500 1000 500 0 2002 2003 2004 2005 2006f MT 2002 2003 2004 2005E 2006F Iron ore 481 518 597 662 710 Coking Coal 173 179 180 182 186 Steam Coal 407 453 474 498 512 Grain 271 264 275 271 281 5 Major
Slide 12: Crude Steel Production Growth
Crude Steel Production Growth World Crude Steel 2006 World Crude Steel Production Production MT MT 110,000 1400 CAGR: +6.09% 1215 1200 1132 105,000 1067 969 1000 904 100,000 800 95,000 600 90,000 400 200 85,000 0 80,000 2002 2003 2004 2005 2006f Jan Feb Mar Apr May Jun July Source: IISI; MEPS 11
Slide 13: China: Gulp for iron ore
China: Gulp for iron ore China Iron Ore Import 2006 China iron ore import MT MT 450 35 400 CAGR: +22.36% 387.6 30 350 334.2 25 300 275.5 250 208.1 20 200 148.2 15 150 111.5 10 100 50 5 0 0 2002 2003 2004 2005 2006f 2007f Jan Feb Mar Apr May Jun July China’s iron ore imports rose 22.9% to 161.36MT in
Slide 14: China: Coal import increasing sharply
China : Coal import increasing sharply MT China coal import 2006 China Coal import MT 40 4.5 +88.2% 35 4 35 3.5 30 26.17 3 25 2.5 20 18.6 2 1.5 15 1 10 0.5 5 0 Jan Feb Mar Apr May June 0 2004 2005 2006f China’s coal imports rose 51.6% to 18.33 MT in six months to June Source: China Customs; Uming Re
Slide 15: China: Coal export dropping
China : Coal export dropping 2006 China Coal export MT China coal export MT 8 100 7 90 86.67 -27.3% 6 80 71.68 5 70 63 4 60 3 50 2 40 1 30 0 Jan Feb Mar Apr May June July 20 10 China’s coal export decreased 12.7% 0 to 32.07 MT in six months to June 2004 2005 2006f Source: China Customs; Uming Resear
Slide 16: India: steam & coking coal imports moving up
India : steam & coking coal imports moving up MT 80 CAGR +13.11% 70 70 60 48.4 50 39.1 40 30.1 30 26 23.1 20 10 0 2002 2003 2004 2005 2006f 2010f Source: The ministry of Coal, India 15
Slide 17: Current Orderbook for delivery
Current Orderbook for delivery in Current Orderbook for delivery in .. MT 35 30.8 30 25 20.3 20 15.9 17.7 15 10 7.9 5.9 5.2 6.2 5.9 4.9 3.6 4.4 5 1.2 1.8 2.2 0 2006H2 2007 2008+ Total Bulker Capesize Panamax Handymax Handysize Source: Clarkson dry bulk outlook in 2006 June 16
Slide 18: Bulk carriers on order v.s 20+ year fleet
Bulk carriers on order v.s 20+ year fleet Million Dwt 46.7 Orderbook 48 44 20 years & over 40 25 years & over 36 32 29.1 28 24.5 24 22.1 21.2 20 63.6% 18.6 16.5 16 12.8 25.1% 33.3% 19% 12 22.6% 7.5 18.3% 8 6.0 23.9% 18.4% 4 4.6 4 7.6% 5.8% 7.6% 4% 0 Handysize Handymax Panamax Capesize Source: Clarks
Slide 19: 20+ year old dry bulk carrier fleet
20+ year old dry bulk carrier fleet Mdwt % 110 30 100 Capacity Share of fleet 90 25 80 20 70 60 15 50 40 10 30 20 5 10 0 0 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: Clarkson, SSY, Uming Research 18
Slide 20: Dry bulk carrier net fleet changes
Dry bulk carrier net fleet changes DWT -MT 25 22.1 20 20.8 18.3 15 14.2 12.3 10 7.3 7.6 7.4 5 2.6 0 -5 -10 Additions Deletions Net Change -15 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: SSY, Uming Research 19
Slide 21: Port Congestion factor
Port Congestion factor Days 9 8 7.68 7 6.6 6 5 5 4.43 4.33 4.34 4 3.7 3.54 2.75 3 2 1 1 0 E. Aus W.Aus Brazil Indonesia China 2005 2006 H1 Source: Uming Research 20
Slide 22: Port Congestion Analysis
Port Congestion Analysis Coal ports of E. Australia : Shippers can not ready some specific coking coal in time, worsened the port congestion, and - Chinese’s coking coal export is declining (2006 Jan to May : 5.31 MT, -17.8% yoy), it makes Asia buyers change to Australia. - Expansion of Australian p
Slide 23: 2006 -- Baltic Indices Trends
22 2006/8/31 2006/8/31 5169 2006/8/16 9/4 2006/8/16 3800 9/4 2006/8/1 2006/8/1 2006/7/17 2006 -- Baltic Indices Trends 2006/7/17 2006/7/2 2006/7/2 2006/6/17 2006/6/17 2006/6/2 2006/6/2 2006/5/18 2006/5/18 2006/5/3 BCI 2006/5/3 BPI 2006/4/18 2006/4/18 2006/4/3 2006/4/3 2006/3/19 2006/3/19 2543 3/14 2
Slide 24: Outlook
Outlook Short term Thermal coal consume bounces on oil record Japan nuclear facilities outages to boost coal demand Steel price forecasts in steady for H2 2006 Heat wave in Europe and N. America further consumes more coal in Summer in power plants . 2007 Supply increment will slower than 2005 and 20
Slide 25: Table of Content
Table of Content Why U-Ming Marine? 9 Company Introduction 9 Corporate Structure 9 Past Performance Dry Bulk Shipping Industry 9 World Economy Outlook 9 Market Demand 9 Market Supply Business Strategies 24
Slide 26: Competitive Advantages
Competitive Advantages Provide full service portfolio with comprehensive vessel types. Take advantage of capital strengths to secure competitiveness over other players. Enforce maintenance program to improve fleet competitiveness. Flexible deployment of fleet with the mixter of long and spot cargo.
Slide 27: Business Strategies
Business Strategies For China: 9 Increase import of iron ore in the booming of Chinese steel industry, and export coals from china to reduce ballast voyages. 9 Proceed to develop river-sea, road and railway business with Group’s synergy. 9 Maintain scheduled ship repairs in China to save cost. For I
Slide 28: THANK YOU
THANK YOU 27
U-Ming Marine Transport — Non-Deal Roadshow (September 2006) on 6ix