Yang Ming Marine Transport Corp. · TWSE:2609
Yang Ming Marine Transport — 2019 Investor Conference
38 slides from Yang Ming Marine Transport's conference presentation, December 2019
Slide 1: Yang Ming Investor Conference
1 Team Work、Innovation、Honesty、Pragmatism
Slide 2: Legal Disclaimer
Legal Disclaimer The information contained in this presentation, including all forward- looking information, is subject to change without notice, whether as a result of new information, further events or otherwise, and Yang Ming Marine Corp. (the “Company”) undertakes no obligation to publicly upd
Slide 3: Outline
Outline 1、 Container Shipping Overview 2、 Business Information 3、 Financial Results 4、 Operational Improvement & Future Prospects 3 Team Work、Innovation、Honesty、Pragmatism
Slide 4: Container Shipping Overview
Container Shipping Overview 4 Team Work、Innovation、Honesty、Pragmatism
Slide 5: Global Economy Prospect
Global Economy Prospect Trade disputes continue to affect while global economy slows down IMF World Economic Outlook, October 2019 • The global economy growth is projected at 3.0% in 2019 and 3.4% in 2020 with rising trade barriers, elevated uncertainty surrounding trade and geopolitics. • GDP growt
Slide 6: Supply and Demand
Supply and Demand More balanced and a cautiously optimistic outlook is held. 2020 supply and demand forecast • Alphaliner, Drewry, and Clarkson research forecast supply and demand will be near equilibrium. • It is expected that the supply-demand gap will gradually narrow, and the overall development
Slide 7: Sino-US trade war impact
Sino-US trade war impact Supply chain disruption and shift in cargo flow • The exact impact of the trade war is difficult to evaluate. Despite the two countries came to an interim phase one agreement in mid of October, the trade dispute itself brings uncertainty to the shipping industry outlook. • T
Slide 8: Marine Fuel Oil Price Outlook
Marine Fuel Oil Price Outlook Singapore market price 600 Price of VLSFO should be remaining stable. 550 500 450 400 Price difference between VLSFO and HSFO would shrink 350 due to the increasing scrubber installation on vessels. 300 250 Last updated Dec 9, 2019 200 Jan20 Feb20 Mar20 Apr20 May20 Jun2
Slide 9: Green House Gas emission
Green House Gas emission IMO’s preliminary strategy for major reductions in GHG emission from shipping. - MEPC 72(2018) 2030： Carbon intensity -40% 2050： Carbon intensity -70% a) Note that the business-as-usual emissions are illustrative, and not Annual GHG Emissions -50% consistent with the emiss
Slide 10: Green House Gas emission
Green House Gas emission Through various energy-saving and carbon reduction measures/modification plans, YM’s carbon emissions per TEU-km have been reduced by 49.37% compared with 2008; and we are pursuing to further reduce carbon emissions by 20% from 2020 to 2025. YM will follow IMO’s policies
Slide 11: Business Information
Business Information 11 Team Work、Innovation、Honesty、Pragmatism
Slide 12: Fleet and Service
Fleet and Service • 100+ Services / 160+ Ports / 60+ Countries / 240+ offices 1 loops 7 loops 6 loops Asia - Red Europe - North America Asia - Europe 11 loops 8 loops Asia - North America West Coast 15 loops Asia -Gulf/India 4 loops Intra Europe Feeder Asia - North America East Coast Intra Mediterra
Slide 13: Market Share and Rank
Market Share and Rank • As of 2nd December 2019, YM’s market share is ranked 8th in the world. Source: Alphaliner, 2nd Dec 2019 13 Team Work、Innovation、Honesty、Pragmatism
Slide 14: The Variance of East-West Market Share
The Variance of East-West Market Share Trans-Pacific • Since THE Alliance extended agreement for 10 years and expanded the scale after new member OA 2M THEA Others onboard, the performance and synergy will be 2019 6% 42% 26% 26% enhanced. • In year 2020, THE Alliance's market share and competitivene
Slide 15: THE Alliance's strength in year 2020
THE Alliance's strength in year 2020 Expand Market Reduce Average Improve Service Share Slot Cost Frequency and Product With THE Alliance's After 20 x 15K-23K The frequency of TP Market Share in TP, mega-vessels being Trade will be increased FE-EUR and TA deployed in THE from 15 to 16 services. clim
Slide 16: Years of awards and recognition
Years of awards and recognition Striving for excellence through teamwork Received Automated Mutual Assistance Vessel Awarded Best Shipping Received the plaque from Rescue System (AMVER) Line-Intra-Asia by Asia Liberian Registry to YM certificate and Blue Cargo News readers during EXCELLENCE in honor
Slide 17: High-quality Intra-Asia service
High-quality Intra-Asia service Received recognition from Asia Cargo News readers for 4 years Asia Cargo News Asian Freight, Logistics & Supply Chain Awards 2016 2017 2018 2019 17 Team Work、Innovation、Honesty、Pragmatism
Slide 18: Effective and timely humanitarian aid
Effective and timely humanitarian aid Recognized and appreciated by The Liberian Registry 18 Team Work、Innovation、Honesty、Pragmatism
Slide 19: Financial Results
Financial Results 19 Team Work、Innovation、Honesty、Pragmatism
Slide 20: Proportion of Consolidated Operating Income of Yang Ming Group
The Proportion of Consolidated Operating Income of Yang Ming Group 陽明海運 集 團 Logistics Bulk Container Shipping Wharf 3.52% 2.03% 94.07% 0.23% 20 Team Work、Innovation、Honesty、Pragmatism
Slide 21: Proportion of Consolidated Operating Income
The Proportion of Consolidated Operating Income ★AWE、PSW 、PNW ★Intra-East Asia America ASIAI 41% 13% ASIAII 15% EUROPE 31% ★Middle East, Red sea, South America, Australia, South Asia ★NCP、MED、TA、IEU Data interval:201901~201910 21 Team Work、Innovation、Honesty、Pragmatism
Slide 22: Lifting Volume Analysis
Lifting Volume Analysis-Lifting Volume increased by 4% YOY 201801~10：4.34 million TEU 201901~10：4.51 million TEU 16.20% 16.55% 30.14% America 29.56% 24.49% Europe 23.51% America Asia I Europe 29.16% Asia II 30.38% Asia I Asia II 0.6 0.5 0.4 0.3 0.2 0.1 0.0 1801 1802 1803 1804 1805 1806 1807 1808 180
Slide 23: Consolidated Operating Revenue
Consolidated Operating Revenue Consolidated Operating Revenue increased by 8.30% YOY NTD$100 Millions 1,600 1,400 2019 1,200 2018 1,000 800 600 400 200 0 2016 2017 2018 01~10 23 Team Work、Innovation、Honesty、Pragmatism
Slide 24: Main Operating Costs Analysis
Main Operating Costs Analysis 201801~09 V.S. 201901~09 Operating Revenue YOY% + 9.59% NTD$100 Millions ------------------------------------------------------------------------------------------------------------------- Total Cost YOY% Unit Cost YOY% 300 Fuel + 5.75% - 1.90% Stevedoring + 5.64% - 2.0
Slide 25: Structure of Shareholders
Structure of Shareholders Domestic natural person Government 35.02% 47.64% Foreign investment Domestic legal entity Domestic 5.21% 7.95% financial institution 4.18% Note : The latest closing date was April 27,2019,but the company converted C.B. into common stocks at maturity on June 27,2019. So only
Slide 26: Operational Improvement & Future Prospects
Operational Improvement & Future Prospects 26 Team Work、Innovation、Honesty、Pragmatism
Slide 27: Operational strengthening strategy
Operational strengthening strategy Service Rationalization Marginal Contribution & Utilization Enhancement Digitalization: A Customer- Focus Liner Service Replacement and Optimization of the Fleet Group Business Centralization Management 27 Team Work、Innovation、Honesty、Pragmatism
Slide 28: Service Rationalization-Strategies
Service Rationalization-Strategies • Strengthen the competitiveness of east-west routes through close cooperation with THE Alliance. East-West Network • Establish a new cooperation with four members and a 10-year term until April 2030. • Strengthen current joint service cooperation on South America/
Slide 29: Service Rationalization: S.E.A and potential market development
Service Rationalization- S.E.A and potential market development • In response to the rapid changes of industrial relocation, starting from October 2019, a new service between East India to East Mediterranean and North Europe has been launched. Continuously study the feasibility of expanding new serv
Slide 30: Operating Performance Enhancement
Operating Performance Enhancement (TTEU=Thousand TEU) 201901~10 vs 201801~10 vs 201701~10 Capacity Lifting -33 TTEU +166 TTEU 6,000 +374 TTEU (-0.5%) 4,500 (+4%) TTEU (+6.7%) +413 TTEU TTEU 5,500 4,300 (+10.5%) 5,000 4,100 4,500 3,900 4,000 5,926 5,893 3,700 4,348 4,514 5,552 3,935 3,500 3,500 Y2017
Slide 31: Increment of Marginal Contribution
Increment of Marginal Contribution Marginal Contribution of 201901~10 grew by 142M USD over the corresponding period of Y2018. Total Marginal Contribution 2,000 +32M USD +142M USD (+9%) 1,717 Million USD (+2%) 1,543 1,575 1,500 1,000 500 - Y2017 Y2018 Y2019 31 Team Work、Innovation、Honesty、Pragmati
Slide 32: Digitalization: A Customer-Focus Liner Service
Digitalization: A Customer- Focus Liner Service ▪A Digital Container Shipping ▪Digital Service & Platform Association Member ▪Quick Response to the needs ▪Commit on Industrial Standardization & Digitalization ▪Customer-Focus e-Service Be a Customer- Focus Liner Service 32 Team Work、Innovation、Honest
Slide 33: Digitalization: A Customer-Focus Liner Service
Digitalization: A Customer- Focus Liner Service • Globalization: Push Message & e-Service @ @ Digital-BL • Localization : Social Media & APPs @Taiwan E-D/O @Taiwan ChatBot @China WeChat E- D/O Printing - Efficient - Eco - Cost down 33 Team Work、Innovation、Honesty、Pragmatism
Slide 34: Yang Ming's Fleet Capacity and New Delivery
Yang Ming’s Fleet Capacity and New Delivery Up to 4th December 2019, there are 102 vessels in Yang Ming’s fleet, and total capacity is 673,990 TEU 120 vessels 724,460 750,760 750,000 TEU 673,990 657,260 100 vessels 650,000 TEU 80 vessels 42 53 49 52 550,000 TEU YM Owned Vessels 60 vessels Chartered-
Slide 35: Solutions for environmental regulations
Solutions for environmental regulations- Diversify risks and cost saving • To comply with the IMO2020 Sulphur Cap taken effect from 1st January 2020, YM’s operating fleets have initiated a few corresponding measures to well prepare ourselves for the regulation since 2018. The main purpose is to redu
Slide 36: Smart ship notation
Smart ship notation - 2800 TEU Container ship ES-Bow Big-data Trim-optimization Trim-optimization 2.8k TEU ES-Propeller Project Project for 8k TEU Project for 14k TEU smart ship vessel vessel YANG MING YM YM Guideline Application Smart Smart level published by for smart notation 2.8K class society a
Slide 37: Improvement Strategy for Agency
Improvement Strategy for Agency • Setting up own agency in • Agents are contracted and those countries with evaluated by headquarter good volume and profit • Centralized management of Year 2019: Set up PT. Yang global subsidiaries Ming Shipping Indonesia Year 2019: Set up West Asia Year 2020: Set up
Slide 38: Q & A
Q&A 38 Team Work、Innovation、Honesty、Pragmatism
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