Orient Overseas (international) Limited · HKEX:316
Orient Overseas (international) — H1 2013 Earnings Presentation
29 slides from Orient Overseas (international)'s earnings presentation, Aug 8, 2013
Slide 1: Orient Overseas (International) Ltd 2013 Interim Results Presentation
Orient Overseas (International) Ltd 2013 Interim Results Presentation Presentation 8th August 2013
Slide 2: Interim Results Summary - OOIL 2013
Interim Results Summary - OOIL 2013 • 1H 2013 was disappointing for OOIL • OOIL recorded a loss for the period of US$15.1 million on a total revenue of US$3 billion • Weak demand and capacity oversupply have exerted pressure on freight rates, improvements are expected for 2H 2013
Slide 3: Group Results Summary - 1H 2013
Group Results Summary - 1H 2013 OOIL Revenue decreased 3.1% to US$3.0 Billion Container Transportation & Logistics Loss (US$22.6 Million) Profit from Other Activities US$7.5 Million Loss for the Period (US$15.1 Million) 3
Slide 4: Earnings per Ordinary Share – 1H 2013
Earnings per Ordinary Share – 1H 2013 Loss per Ordinary Share (US 2.4 Cents) Interim Ordinary Dividend Nil 4
Slide 5: Results Breakdown – 1H 2013
Results Breakdown – 1H 2013 (Restated) US$M 1H13 1H12 VAR Container Transportation and Logistics (22.6) 42.8 (65.4) Others Wall Street Plaza Revaluation (4.6) 5.0 (9.6) Hui Xian Dividends and Distribution 9.1 42.6 (33.5) Others 3.0 26.8 (23.8) 7.5 74.4 (66.9) Total (15.1) 117.2 (132.3) Note: 1H12 re
Slide 6: EBIT – 1H 2013
EBIT – 1H 2013 (Restated) US$M 1H13 1H12 % Change Core EBIT 6 103 (94%) Core EBITDA 154 226 (32%) Core EBIT Margin (%) 0.2% 3.3% (3.1%) Note: Excluding Revaluation of Wall Street Plaza, Dividends from Hui Xian and Loss on Disposal of Vessels 6
Slide 7: Balance Sheet Highlights – 1H 2013
Balance Sheet Highlights – 1H 2013 (Restated) US$M 30 Jun 2013 31 Dec 2012 Non-current Assets 5,902 5,466 Current Assets 2,780 2,765 Total Assets 8,682 8,231 Non-current Liabilities 3,027 2,391 Current Liabilities 1,237 1,352 Total Liabilities 4,264 3,743 Equity holders 4,412 4,482 Non-controlling I
Slide 8: Total Liquid Assets - 1H 2013
Total Liquid Assets - 1H 2013 US$M 30 Jun 2013 31 Dec 2012 Cash and bank balances 1,879 1,862 Portfolio investments, Equities and Bonds 474 459 Available Liquid Assets 2,353 2,321 Restricted bank balances 21 18 Total Liquid Assets 2,374 2,339 8
Slide 9: Net Debt Position – 1H 2013
Net Debt Position – 1H 2013 US$M 30 Jun 2013 31 Dec 2012 Total Liquid Assets 2,374 2,339 Debt 3,386 2,882 Net Debt 1,012 543 9
Slide 10: Debt-to-Equity Ratios – 1H 2013
Debt-to-Equity Ratios – 1H 2013 Ratio Gross Debt to Equity Ratio Net Debt to Equity 2.00 2.0 1.50 1.5 1.00 1.0 0.77 0.65 0.63 0.64 0.48 0.50 0.5 0.31 0.23 0.12 Net cash 0.06 0.00 0.0 2009 2010 2011 2012 20131H 2009 2010 2011 2012 20131H 10
Slide 11: Container Transportation (excl. Logistics)
Container Transportation (excl. Logistics) US$ / TEU 1H13 1H12 %q Liftings ('000) 2,549 2,587 (1.5%) Revenue (US$M) 2,772 2,878 (3.7%) Revenue Per TEU (US$) 1,088 1,112 (2.2%) Static Slot Capacity (TEU) 477,859 432,825 10.4% Load Factor (%) 72% 74% (2.0%) 8/15/2013 11
Slide 12: OOCL Revenue and Lifting – 1H 2013
OOCL Revenue and Lifting – 1H 2013 Revenue by Trade Lifting by Trade Total $2,771,680 Total 2,548,538 TEU 12
Slide 13: OOCL Average Revenue / TEU
OOCL Average Revenue / TEU Revenue Per TEU (US$) 2,000 1,861 1,762 1,800 1,714 1,692 1,721 1,694 1,662 1,722 1,639 1,696 1,621 1,602 1,600 1,629 1,718 1,599 1,708 1,542 1,574 1,531 1,508 1,614 1,623 1,616 1,607 1,597 1,585 1,553 1,536 1,396 1,472 1,407 1,416 1,543 1,400 1,355 1,476 1,304 1,266 1,435
Slide 14: OOCL Operational Update
OOCL Operational Update YTD Q2 2013 Q2 2012 change 1H2013 1H2012 change LIFTINGS (TEU'S) Trans-Pacific 298,847 325,729 8.3% 606,996 632,300 -4.0% Asia-Europe 208,110 223,743 -7.0% 414,869 426,195 -2.7% Trans-Atlantic 102,134 105,153 -2.9% 197,264 212,669 -7.2% Intra-Asia/Australasia 697,993 687,996
Slide 15: Liner Operating Costs
Liner Operating Costs 1H 13 1H 12 Aug-1, 2013 15
Slide 16: Bunker Fuel Cost – 1H 2013
Bunker Fuel Cost – 1H 2013 US$M 1H13 1H12 %▲ Total Consumption ('000 TON) 888 845 5% Average Price (US$ per TON) 626 689 (9%) Total Bunker Costs (US$M) 572* 598 (4%) % of Total Operating Costs 20% 21% (1%) * Including diesel fuel 3% 16
Slide 17: Bunker Price and Crude Oil Price
Bunker Price 800 200 180 700 637 160 606 605 605 600 140 604 604 611609 Crude Oil Price (US$ per barrel) Bunker Price (US$ per M Ton) 124 120 500 114 108 107 103 106 103 100 94 94 96 94 92 89 94 86 89 90 400 85 78 80 74 74 76 75 65 66 60 60 300 57 57 42 40 200 Singapore Quarter Average Price Rotterd
Slide 18: Bunker Price (RMG 380cSt)
620 615 610 605 600 595 590 Bunker Price (RMG 380cSt RMG 380cSt (SIN) RMG 380cSt {RTM} —~ 613.50 611.50 T T 26-Jul-2013 29-Jul-2013 30-Jul-2013 31-Jul-2013 1-Aug-2013 2-Aug-2013 5-Aug-2013 “ T T T 1 18
Slide 19: OOCL Static Slot Capacity Breakdown
OOCL Static Slot Capacity Breakdown # of Capacity Average % of Total As at 30 Jun 2013 Vessels (TEU) (TEU) Fleet Owned 51 353,460 6,931 74% Long Term Chartered 7 41,216 5,888 9% Short Term Chartered 41 139,132 3,393 29% Charter-Out (6) (55,949) (9,325) (12%) Total 93 477,859 5,138 100% 19
Slide 20: OOCL Fleet for Future Deliveries
OOCL Fleet for Future Deliveries Delivery schedule of vessels: 1. 2013 (8,888 TEU x 2) & (13,000 TEU x 8) 8888 TEU x 2 & 13,000 TEU x 5 delivered in 1H 2013 2. 2014 (8,888 TEU x 2) & (13,000 TEU x 2) 3. 2015 (8,888 TEUS x 2) 8 x 8,888 TEU vessels were placed with Hudong – Zhonghua Shipbuilding (Grou
Slide 21: State of the Industry
State of the Industry • Over supply and weak demand continue to be the overriding factors that is affecting our industry • Carrier margins Remains thin and volatile until supply and demand reaches balance • 2H There are some positive signs of demand returning July 1 rate increase generally suc
Slide 22: Demand and Supply - Container Shipping
Demand and Supply - Container Shipping Howe Robinson - May13 45% Danish Ship Finance - Apr13 3.0% ABS Outlook - Mar13 2.9% 42% IHS Global Insight - Feb13 14.3% 70% 1.9% 3.0% Clarkson demand - Jun13 4.1% -9.1% 13.1% 7.2% 3.3% 5.8% Macquarie - May13 7.2% -8.1% 13.1% 6.2% 2.0% 2.3% Deutsche Bank - Jun1
Slide 23: Global Container Trade Growth is Slowing
Global Container Trade Growth is Slowing World GDP growth Container Demand growth GDP multiplier Growth 20% 2002-2007 average 1992-2001 average container growth 11.8% container growth 8.5% 15% 10% 2013-2017 average container growth 5.5% 5% 0% 1999 2002 1992 1993 1994 1995 1996 1997 1998 2000 2001 20
Slide 24: Transpacific Trade EB Demand
Transpacific Trade EB Demand '000 TEU per month 1,300 Jul 13 +2.0% 1Q13 2Q13 1H13 YTD Jul 13 +1.8% +1.8% 1,100 FY2012 +2.3% +13% MOM FY2011 -0.2% FY2010 900 +17.9% FY2009 -15.1% 700 500 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2009 2010 2011 2012 2013 Source: JoC 24
Slide 25: Asia-Europe Westbound Lifting
Asia-Europe Westbound Lifting '000 TEU per month 1400 1Q13 2Q13 1H13 -1.3% +3.4% +1.1% 1300 June +9.7% FY2012 -4.7% 1200 FY2011 +5.2% 1100 FY2010 +15.9% 1000 FY2009 -15.0% 900 800 700 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2009 2010 2011 2012 2013 Source: FEFC/ELAA/CTS 25
Slide 26: OOIL's Strategy
OOIL’s Strategy • Differentiation / Segmentation • Cost efficiency Cost focus Productivity focus Delivery of new buildings in 2013/2014 Average fleet age 6.5 years • Investing into future Vessels Port IT Logistics • Retains initiative/flexibility by maintaining a strong and liquid Gr
Slide 27: Financial Prudency
Financial Prudency • Strong balance sheet Net debt to equity ratio 0.23:1 One of the lowest in the container transportation industry Relative Competitiveness in Financing • High Liquidity $2.1 billion of Liquid Assets * Conservative Cash Management Philosophy Interest Rate Hike hedge I
Slide 28: OOIL Group
OOIL Group Proven Track Record Clear Direction Shareholder Management Alignment Forward Looking Financial Prudency 28
Slide 29: Disclaimer
Disclaimer The information provided is for reference only and includes data obtained from sources provided by the relevant information provider(s) and is subject to change without notice. Orient Overseas (International) Limited (“OOIL”) and its affiliates, and the concerned information provider(s),
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