Cosco Shipping Ports Limited · HKEX:1199
Cosco Shipping Ports — Q1 2022 Earnings Presentation
32 slides from Cosco Shipping Ports's earnings presentation, Apr 29, 2022
Slide 1: 1Q2022 Results Presentation
ters COSCO SHIPPING Ports Limited SES! chit SEBO SRA Al The Porks for ALL 1Q2022 Results Presentation Improve Quality and Efficiency to Enhance Development Lean Operation Achieves Results April 29, 2022
Slide 2: Agenda
Agenda 1 Key Highlights 2 Financial Performance 3 Operational Review 4 Strategy & Outlook 5 Appendix
Slide 3: Agenda: Key Highlights
Agenda 1 Key Highlights 2 Financial Performance 3 Operational Review 4 Strategy & Outlook 5 Appendix
Slide 4: Terminal Profit Growth Momentum Remains in 1Q2022
Terminal Profit Growth Momentum Remains in 1Q2022 ➢ 1Q2022 total terminal profit increased by 5.2% YoY to USD 98.8 M ➢ 1Q2022 subsidiary terminals’ profit rose 64.8% YoY to USD 21.5 M on the back of macro environment improvement, our lean operations management and contribution from acquisition of TC
Slide 5: Agenda: Financial Performance
Agenda 1 Key Highlights 2 Financial Performance 3 Operational Review 4 Strategy & Outlook 5 Appendix
Slide 6: 1Q2022 Financial Highlights — Continuing ASP Expansion
1Q2022 Financial Highlights — Continuing ASP Expansion with 6.8% YoY Increase (1) On a comparable basis, excluding Reported contribution from TCT which was not our (US$ million, unless stated otherwise) subsidiary terminal during 1Q2021 1Q2021 1Q2022 YoY Change 1Q2021 1Q2022 YoY Change Consolidated
Slide 7: Solid 1Q2022 Revenue & Gross Profit Growth
Solid 1Q2022 Revenue & Gross Profit Growth ➢ Revenue growth accelerated in 1Q2022 driven by our effective sales and marketing strategy to raise ASP as well as the acquisition of TCT project 1Q2022 Revenue (US$ million) 1Q2022 Gross Profit (US$ million) 80.9 329.7 Guangzhou Nansha Xiamen Oceangate 61
Slide 8: Continuing Terminal Profitability Enhancement
Continuing Terminal Profitability Enhancement ➢ Benefiting from strong relationships with shipping companies to increase pricing power as well as the contribution of TCT project, terminal profit in 1Q2022 rose 5.2% YoY 1Q2022 Terminal Profit by Regions (US$ million) (1) Top 10 Terminal Contributors
Slide 9: Solid Financial Position to Support Further M&A Projects
Solid Financial Position to Support Further M&A Projects ➢ As of 31 March 2022, our cash position maintained strong with cash and cash equivalents of USD 1.24 billion ➢ Net gearing ratio remained at a healthy level of 28.4% ➢ Expected Capex in 2022 will be USD 1.23 billion, of which approximately 30
Slide 10: Agenda: Operational Review
Agenda 1 Key Highlights 2 Financial Performance 3 Operational Review 4 Strategy & Outlook 5 Appendix
Slide 11: Equity Throughput Continued to Grow
Equity Throughput Continued to Grow ➢ Proportion of equity throughput from controlling stake increased from 36.6% to 45.6% in 1Q22 after TCT acquisition. We have strengthened our terminal network through building more controlling stake for better implementation of lean operations management 1Q2022 T
Slide 12: Further Enhancing Synergy with All Customers
Further Enhancing Synergy with All Customers 1Q2022 Customers as A Percentage of Total Throughput (1) 1Q2022 YoY Change 49.6% 23.4% +22.8% COSCO SHIPPING Lines OCEAN Alliance 52.6% 6.3% 24.6% +34.5% OOCL +21.7% 19.9% 6.0% s +17.0% Evergreen + CMA 22.0% 23.9% 29.7% +3.5% 2M + THE Alliance 26.5% +92.6
Slide 13: Optimizing Terminal Assets Portfolio
Optimizing Terminal Assets Portfolio ➢ Future M&A opportunities in the regions of Southeast Asia, the Middle East, Africa and South America ➢ To target Hurdle rate at least low double-digit equity IRR ➢ Strategically pursue investment opportunities to create value to our shareholders Recent Acquisit
Slide 14: Accelerating Development of Value-Added Projects
Accelerating Development of Value-Added Projects to Create New Sources of Growth Accelerate supply ◼ Develop the supply chain business and accelerate the CSP Abu Dhabi CFS Phase 1 chain business to construction of the extended supply chain platform create new sources of profit ◼ Build up logistics n
Slide 15: Technology Development to Facilitate Lean Operations
Technology Development to Facilitate Lean Operations ➢ Actively advocate 5G smart ports ➢ Demonstration port for 5G smart application, Xiamen Ocean Gate Terminal is actively carrying out research and development of driverless container truck system ➢ Rapidly enhance the construction of EAM system, i
Slide 16: Agenda: Strategy & Outlook
Agenda 1 Key Highlights 2 Financial Performance 3 Operational Review 4 Strategy & Outlook 5 Appendix
Slide 17: Global Terminal Network and Lean Operations
Global Terminal Network and Lean Operations Capitalize on ◼ Identifying potential projects and tapping into the markets such as Southeast Asia, the global economic growth Middle East and Africa, particularly in strategic subsidiaries and highly-profitable non- optimize terminal portfolio subsidiarie
Slide 18: Lean Operations — Enhance Revenue
Lean Operations — Enhance Revenue Published price change of TEU in Chinese port authorities (1) ➢ Terminals maintain good relationships with shipping companies. Apart from maximizing synergy with parent Original published price 2022 published price company and OOCL, we also cooperate with different
Slide 19: Outlook: Challenges and Opportunities
Outlook Challenges Opportunities ➢ Global economic uncertainties due to continued COVID-19 ➢ Long term opportunities for overseas terminals development as well as for domestic ports consolidation ➢ Rising inflation ➢ Good prospect on the back of our effective lean operations ➢ Increasing geopolitica
Slide 20: Pledge to Reach Carbon Neutrality at Subsidiary Level
Pledge to Reach Carbon Neutrality at Subsidiary Level Enhancing Energy Use Efficiency to Reduce Emissions and Combat Climate Change GHG Emissions Energy Consumption Long-term Commitment: Short-term Target: • To achieve carbon neutrality no later than 2060 • To reduce energy consumption intensity of
Slide 21: Enhancing Water and Waste Management at Subsidiary Level
Enhancing Water and Waste Management at Subsidiary Level Contributing to Biological and Environmental Protection Water Consumption Waste Target: Target for Hazardous Waste: • To enhance the management of water resources • To maintain 100% hazard-free disposal of waste and improve water use efficienc
Slide 22: Q & A Session Thank you!
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Slide 23: Agenda: Appendix
Agenda 1 Key Highlights 2 Financial Performance 3 Operational Review 4 Strategy & Outlook 5 Appendix
Slide 24: Global Footprint and Future M&A Opportunities
Global Footprint and Future M&A Opportunities Key Overseas Annual Designed Terminals Capacity (TEU) PCT (1) 6,200,000 CSP Spain Group (1) 5,100,000 CSP Abu Dhabi (1) 2,500,000 CSP Zeebrugge (1) 1,300,000 Chancay (1) 1,000,000 RSGT 5,200,000 Suez Canal 5,000,000 COSCO-PSA 4,850,000 Antwerp 3,700,000
Slide 25: Lean Operations — Cost Control
Lean Operations — Cost Control Four measures to improve lean operations A series of cost control measures and cost control capabilities Innovatively set up ports operations management COE Actively promote and enhance automation in the Team terminal to improve efficiency and lower outsourcing cost Es
Slide 26: Incentive Scheme – Aligning Shareholders' Interests
Incentive Scheme – Aligning Shareholders’ Interests ◼ A total of about 53 million share options were granted to around 238 eligible employees under the share option scheme on 19 June 2018 ◼ Exercising criteria are in line with shareholders’ interests Batch No. of Percentage of Return on Growth Rate
Slide 27: SDGs of our Major Concern
SDGs of our Major Concern We align our major initiatives with the Sustainable Development Goals (SDGs) of the United Nations. By identifying five goals as the most important and most relevant to our operations, we have integrated them into five key areas of sustainable development. SDG 4 Quality Edu
Slide 28: Our Sustainability Approaches
Our Sustainability Approaches Approach 1: Caring for Our People Providing a healthy, safe, inclusive and diverse work environment to attract and cultivate talents for our sustained growth Approach 2: Customers First Investing in building “green ports”, minimising the environmental impacts of our ope
Slide 29: Sustaining High Standard of Governance
Sustaining High Standard of Governance Balanced and Diverse Board Composition ESG Committee in Place ✓ High level of independent representation on the ✓ Led by an Independent Non-executive Director, Board and comprised the Chairman of the Company and another Independent Non-executive ✓ Diversified s
Slide 30: Key and Ongoing Initiatives under our Sustainability Approaches
Key and Ongoing Initiatives under our Sustainability Approaches Approach 1 Approach 2 Approach 3 Approach 4 Approach 5 Caring for Our People Customers First Green Development Win-win Cooperation Investing in Communities 1. Elevating diversity and 1. Building 5G smart ports to deliver more reliable a
Slide 31: 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
Slide 32: Thank you!
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