Evergreen Marine Corp. (taiwan) Ltd. · TWSE:2603
Evergreen Marine Corp. (taiwan) — Evergreen Marine — Investor Presentation (2018)
30 slides from Evergreen Marine Corp. (taiwan)'s investor presentation, 2018
Slide 1: Evergreen Marine Corp. 2018 Investor Conference
TSE: 2603 Evergreen Marine Corp. 2018 Investor Conference Challenge․Innovation․Teamwork
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 Evergreen Marine Corp. (the “Company”) undertakes no obligation to publicly updat
Slide 3: Outline
Outline 1. Company Overview 2. Financial Results 3. Container Shipping Outlook 4. Business Strategy 3
Slide 4: 1. Company Overview
1. Company Overview Evergreen Line Ranked 7th Continuous Fleet Strengthened by Ocean Intensive Service Network in Capacity Renovation Alliance 4
Slide 5: Evergreen Line currently ranked 7th in Capacity
Evergreen Line currently ranked 7th in Capacity The only Taiwanese shipping line listed in million TEU club. Growing steadily to outperform its size. Source：Alphaliner Monthly Monitor Report April 2018 5
Slide 6: Continuous Fleet Renovation
Continuous Fleet Renovation Strategically designed vessel sizes, flexibly adjusted carrying capacity to meet the market demand Future new tonnages 45 vessels/ 482,330TEU Owned Vessels Evergreen Group Capacity 108 units/ 560,595TEU Chartered in 195 vessels/ 1,086,335TEU (Up to 20180401) vessels 87 un
Slide 7: Intensive Service Network
Intensive Service Network More than 150 routes covering over 250 ports in 319 offices worldwide loops 3 loops Trans- Atlantic loops 70+ loops Intra-Asia, Persian 4 loops Gulf 1 loop 2 loops loops 4 North America -South America Asia - Australia Asia- South America loops Asia- Africa 7
Slide 8: Strengthened by Ocean Alliance
Strengthened by Ocean Alliance More joint capacity/number of routes providing customers with more comprehensive and diverse services. 聯盟 2M OCEAN ALLIANCE THE ALLIANCE CMA CGM Maersk COSCO Hapag-Lloyd Member MSC Evergreen Line ONE HMM OOCL Yang Ming Total Capacity(TEU) 7.73M 6.24M 3.76M Joint Capaci
Slide 9: 2. Financial Results
2.Finacial Results 9
Slide 10: Consolidated Operating Revenue Analysis (YE 2017 vs. YE 2016)
Consolidated Operating Revenue Analysis (YE 2017 VS. YE 2016) Volume : 25.13% 30% YE 2016 4.8755 million TEU The Volume increased by YE 2017 5.6708 million TEU 16.31%YOY. 25% +16.31% Average O/F Rate (USD/ +13.58% TEU) increased by 13.58% 20% YOY . 15% Marine Freight Income increased by 25.13%
Slide 11: The Proportion of Consolidated Operating Income
The Proportion of Consolidated Operating Income *FE-Africa, FE-South America, etc. Other/11% *FE-Europe, FE-Mediterranean, *FE-North America Intra-Europe Feeder Service, etc. Europe Services/28% America Services/39% Intra-Asia Services/22% *Intra-Far East Gulf, Red sea, etc. The Proportion of Europ
Slide 12: Consolidated Main Operating Costs Analysis
Consolidated Main Operating Costs Analysis NT $ 100 Million YE 2016 V.S. YE 2017 700 608 568 ‾ The Volume increased by 600 16.31% YOY. ‾ Port Charge increased by 500 7.06% YOY. 400 ‾ Connecting Expense (transshipment/ logistic) 210 215 157 300 144 195 increased by 2.37% YOY. 145 ‾ Slottage Expense
Slide 13: Consolidated Income Statement
Consolidated Income Statement Unit: NT$ Millions Item YE 2016 YE 2017 Growth % Unit: NT$ 100 Millions Operating revenue 124,467.61 150,582.69 21% EMC’s Operating Revenue Gross Profit (Loss) (3,494.11) 10,874.29 411% 1,506 Operating Income (Loss) (7,848.26) 4,817.47 161% + 21% 2000 1,245 Net Income (
Slide 14: Consolidated operating income, gross profit margin and net income margin
Consolidated operating income, gross profit margin and net income margin NT $ 100 Millions 450 415 15% 8.56% 10.88% 400 377 375 10% 338 6.18% 9.69% 350 342 319 2.14% 286 297 7.69% 5% 300 -1.31% 2.77% 250 0% -3.84% 0.50% -1.14% 200 -5% -3.24% 150 -5.00% -9.31% -4.28% -10% 100 -15% 50 -16.04% 0 -20% 2
Slide 15: Consolidated Cash flow Analysis
Consolidated Cash flow Analysis NT$100 Millions 382.68 381.08 370.30 390 329.85 330 60 52.85 32.28 37.47 40 22.53 14.94 19.63 20 0 -4.70 -20 2017Q1 2017Q2 2017Q3 -8.80 2017Q4 -40 -8.39 -20.24 -15.95 -60 -80 -69.66 營業活動之淨現金流入(流出) Cash Flows From Operating Activities 投資活動之淨現金流入(流出) Cash Flows From Inv
Slide 16: 2018 Q1 Consolidated Operating Revenue
2018 Q1 Consolidated Operating Revenue NT$100 Millions 2018 Q1 Consolidated Operating Revenue is 36.769 Billion, increased by 6.47% YOY. 16
Slide 17: 3. Container Shipping Outlook
3. Container Shipping Outlook Regulations & Supply and Demand Gap Alliance Trend Benefits Growing World Economy Technologies Trigger Narrowing Competition Transformation 17
Slide 18: Growing Global Economy
Growing Global Economy Trade protectionism might bring uncertainties in the short term, but the momentum for mid-long term is still abundant. IMF latest World Economy Outlook Survey at January 2018 • The global economy will continue to grow in 2018 and 2019, with GDP growth expected to reach 3.9% pe
Slide 19: Supply and Demand Gap Narrowing
Supply and Demand Gap Narrowing Ship enlargements and port berth restrictions limit the excessive expansion of service routes. Alphaliner forecasts 2018 market total capacity growth slightly higher than market volume growth rate Capacity 6.0% vs Cargo 5.1% 2019 Market volume growth rate is forecaste
Slide 20: Alliance Trend Benefits Competition
Alliance Trend Benefits Competition Fewer and bigger surviving carriers after Hanjin Bankruptcy lead to more rational operating environment. The market share Higher Market of three major Concentration alliances in the Global top 10 key east-west carriers’ market market up-lifted capacity share at •
Slide 21: Regulations & Technologies Trigger Transformation
Regulations & Technologies Trigger Transformation To meet challenges from new regulations, big data and cyber security, threshold to operate is lifted higher. International Maritime The International Ballast In response to global The trend of shipping Organization Water Management warming, the activ
Slide 22: 4. Business Strategy
4. Business Strategy Timely Shipbuilding & Strict Control of Cost- Product & Service Diligent Cultivation of Green Upgrades Effectiveness Enhancement Marine Talents 22
Slide 23: Timely Shipbuilding & Green Upgrades
Timely Shipbuilding & Green Upgrades by ordering 20x2800TEU ships as main short-haul loader when price was low. Evergreen B Type Vessel Profile •Length Overall (LOA): 211 meters •Breadth: 32.8 meters •Design Draft: 10 meters •Container Intake: 2,800 Twenty-Foot Equivalent Units (TEU) •Vessel Feature
Slide 24: Timely Shipbuilding & Green Upgrades
Timely Shipbuilding & Green Upgrades by ordering 20x11000TEU ships as main long-haul loader when price was low. Sample CGI Source: SHI Evergreen 11K Vessel Profile •Length Overall (LOA): 333.9 meters •Breadth: 48.4 meters •Design Draft: 13 meters •Container Intake:11,000 Twenty-Foot Equivalent Units
Slide 25: Timely Shipbuilding & Green Upgrades
Timely Shipbuilding & Green Upgrades by pro-actively upgrading green ship features to fulfill policy and efficiency. More fuel savings to newly built ships! • Optimization in engine, hull, and designs will bring better fuel efficiency to new G type ships in delivery and 11000TEU ships on order at al
Slide 26: Strict Control of Cost-Effectiveness
Strict Control of Cost-Effectiveness by optimizing cost control, ship deployment, and operation efficiency. Lowering Box-to-Slot Ratio by more Strict control of 4 main costs: match-load, less empty reposition, fast stevedore/intermodal/transshipment/ turnaround, and optimized empty bunker equipment
Slide 27: Product & Service Enhancement
Product & Service Enhancement by enriching both loop coverage and customer service interface. Partners with renowned e-commerce portal, Bolero International, in providing “i-B/L” & “i-Dispatch” Besides OA product, Intra-Asia and solutions to help simplify emerging market loops will be customers’ sup
Slide 28: Product & Service Enhancement
Product & Service Enhancement by integrated business/customer service teamwork with recognitions. Awarded “Carrier Awarded “2017 of the Year 2016” Ocean Carrier of the Year” by Awarded “2016 by Dollarama Dollar Tree Gold Award for Awarded “Sea- outstanding Carrier Ocean Carrier Benchmark Service and
Slide 29: Diligent Cultivation of Marine Talents
Diligent Cultivation of Marine Talents by academic cooperation plus regular recruits to develop marine talents. Encouraging students to study marine Assigning senior captains and chief Regular recruiting in Taiwan’s three engineering majors by providing engineers to teach in industry- Marine Technol
Slide 30: Thank You!
Thank You! http://www.evergreen-marine.com 30