Cosco Shipping Ports Limited · HKEX:1199
Cosco Shipping Ports — COSCO Pacific — FY2013 Earnings Presentation
13 slides from Cosco Shipping Ports's earnings presentation, Mar 25, 2014
Slide 1: 2013 Final Results Press Conference
2013 Final Results FOCUS ON Press conference STRENGTH 25 March 2014 COSCO PACIFIC LIMITED Stock Code: 1199.HK
Slide 2: 2013 financial review
2013 financial review • Turnover amounted to US$798.6m of which 57% derived from terminals and 43% from container leasing. • 8.6% increase in turnover was mainly driven by 13.2% growth in terminal turnover while container leasing turnover rose 3.4% Presentation (March 2014) P. 2
Slide 3: 2013 financial review
2013 financial review • Cost of sales rose 14.3% to US$480.4m in 2013 exceeding the 8.6% growth in turnover. • Gross profit margin declined 3.1pp to 39.8%. – Terminal GP margin: 31.7% (-1.5pp) – Leasing GP margin: 51.1% (-3.8pp) Presentation (March 2014) P. 3
Slide 4: 2013 financial review
2013 financial review • Core profit reduced 5.0% to US$312.1m • Tightened control on corporate expenses and finance costs supported a 2.1% growth of profit attributable to equity holders from continuing operations. • Disposal gain from CIMC drove profit attributable to equity holders to surge 105.3%
Slide 5: Maintain stable payout ratio
Maintain stable payout ratio • Both of EPS and DPS rose 99.4% respectively to US24.95 cents and US9.98 cents including special DPS of US5.648 cents • To strike the balance between paying dividend to shareholders and reserving funds for future development, we maintained payout ratio at 40% including
Slide 6: Divestment of container manufacturing
Divestment of container manufacturing • Divestment of 21.8% CIMC stake – Consideration: US$1.22 billion – Net gain: US$393 million • Cash on hand – US$1.24 billion (+45.7%) • Net debt to total equity – 16.7% (-24.9pp) • Net asset value – US$4.84 billion (+14.8%) Presentation (March 2014) P. 6
Slide 7: Terminals business highlights
Terminals business highlights Terminal division 2013 YoY 2012 Divisional revenue (US$ m) 455.07 +13.2% 402.16 % of total revenue 57.0% +2.3pp 54.7% Divisional gross profit (US$ m) 144.38 +8.1% 133.59 Gross profit margin 31.7% -1.5pp 33.2% % of total gross profit 45.4% +3.0pp 42.4% Divisional profit
Slide 8: Acquisition of 40% stake in ACT
Acquisition of 40% stake in ACT • Total consideration: HK$1.65 billion (=US$212.3million) • ACT is located at Kwai Chun Terminal 8 west in Hong Kong COSCO Pacific Hutchison Port Holding Trust 50% 50% COSCO-HPHT ACT China Shipping Terminal Development 80% 20% Asia Container Terminals (“ACT”) Presenta
Slide 9: Create synergy between ACT and COSCO-HIT
Create synergy between ACT and COSCO-HIT COSCO Pacific Acquisition cost equity interests (100% equity) (Billion HK$ per berth) COSCO-HIT 50% since 1995 2.60 ACT 40% since 2014 2.06 • Combined quay length of 1,380m strengthens both terminals’ competitiveness for attracting more mega vessels to call.
Slide 10: Container leasing business highlights
Container leasing business highlights Container leasing division 2013 YoY 2012 Divisional revenue (US$ m) 347.75 +3.4% 336.22 - Container leasing revenue 290.88 +3.7% 280.51 - Disposal of returned containers 42.97 +0.8% 42.61 - Management income 7.40 -1.3% 7.49 - Others 6.50 +15.8% 5.61 % of total r
Slide 11: 2013 Awards
2013 Awards • “Titanium Award for Financial Performance, Environmental Responsibility and Investor Relations” by The Asset magazine; • “Corporate Governance Asia Recognition Award” for the seventh consecutive year and “1st Asian Company Secretary of the Year Recognition Award” by Corporate Governanc
Slide 12: Strive to achieve long-term sustainable growth
Strive to achieve long-term sustainable growth • Cautiously optimistic in global economic recovery • Benefit from economic recovery in Europe and the US • Strengthen sustainable terminal business growth by acquisitions • Maintain prudent strategy for container leasing business • Move forward solidly
Slide 13: Q&A
Q&A Presentation, November 2013 P. 13