Cosco Shipping International (hong Kong) Co., Ltd. · HKEX:517
Cosco Shipping International (hong Kong) — H1 2018 Earnings Presentation
33 slides from Cosco Shipping International (hong Kong)'s earnings presentation, Aug 24, 2018
Slide 1: 2018 Interim Results Analyst Meeting
2018 Interim Results Analyst Meeting 24-8-2018
Slide 2: Agenda
Agenda Interim Results Highlights Business Review Financial Review Prospects Appendix: Corporate Profile
Slide 3: Interim Results Highlights
Interim Results Highlights 3
Slide 4: Review in 1H2018
Review in 1H2018 Global Economy & Shipping Market Global economic was well-performed in 1H2018. Uncertainty in trade friction and excess shipping capacity led the shipping market lapsed into mediocrity. Solution Aim to build up shipping services industrial cluster. Actively adapt to the modern
Slide 5: Solid Revenue Growth and Stable Dividend Policy
(1) Solid Revenue Growth Profit Attributable to the Equity Revenue: HK$4,788mn (+26% YOY) Holders of the Company Mainly attributable to the increase in revenue of HK$ mn marine fuel supply Profit attributable to the equity holders of the 206 184 Company: HK$184mn 1H2017 1H2018 (2) Stable Divid
Slide 6: Strong Cash Position; Restructuring and Business Expansion
(3) Strong Cash Position to Support Future Expansion Net cash: HK$6.3bn as at 30 Jun 2018 (HK$6.49bn as at 31 Dec 2017) to support future acquisition and business expansion. (4) Restructuring and business expansion have achieved remarkable results. Entering into management services agreement wit
Slide 7: Business Review
Business Review Pd
Slide 8: Business Review: Shipping Services
Business Review: Shipping Services 1H2018 Revenue from Shipping Services*: HK$4.48 bn (+25% YOY) 1H2018 Profit Before Income Tax from Shipping Services: HK$128 mn (-25% YOY) HK$ mn Shipping Services PBT 488 410 403 393 372 325 311 294 275 257 170 128 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 9: Business Review: Shipping Services - Ship Trading Agency Services
Business Review: Shipping Services (cont’d) 1. Ship Trading Agency Services Revenue Operating Profit HK$ mn HK$ mn 91% 129 137 64% 63% 62% 64% 66% 67% 103 99 90 81 85 74 66 63 62 52 56 49 2013 2014 2015 2016 2017 1H2017 1H2018 2013 2014 2015 2016 2017 1H2017 1H2018 Revenue from Newbuilding Revenue f
Slide 10: Business Review: Shipping Services - Marine Insurance Brokerage Services
Business Review: Shipping Services (cont’d) 2. Marine Insurance Brokerage Services Revenue Operating Profit 71% 72% 72% 70% 71% 69% 64% HK$ mn 96 HK$ mn 68.1 68 92 94 66 89 91 63 63 47 33 36 23 2013 2014 2015 2016 2017 1H2017 1H2018 2013 2014 2015 2016 2017 1H2017 1H2018 Operating Profit Margin Th
Slide 11: Business Review: Shipping Services - Marine Equipment and Spare Parts
Business Review: Shipping Services (cont’d) 3. Supply of Marine Equipment and Spare Parts Revenue Operating Profit HK$ mn 1199 HK$ mn Operating Profit Margin 1097 7% 7% 1050 1065 4% 5% 5% 889 3% 4% 58 652 51 47 556 42 43 38 31 2013 2014 2015 2016 2017 1H2017 1H2018 2013 2014 2015 2016 2017 1H2017 1H
Slide 12: Business Review: Coatings - COSCO Kansai
Business Review: Shipping Services (cont’d) 4. Production and Sale of Coatings: (1). Container & Industrial Anti-Corrosion Coatings by COSCO Kansai* Revenue Operating Profit HK$ mn HK$ mn Operating Profit Margin 1,323 1,391 8% 1,109 7% 6% 889 637 105 2% 516 1% 86 387 70 -1% -3% 9 7 2013 2014 2015 20
Slide 13: Business Review: Coatings - Jotun COSCO
Business Review: Shipping Services (cont’d) 4. Production and Sale of Coatings: (2). Marine Coatings by Jotun COSCO* Sales Volume Share of Profit Tonnes HK$ mn 112,639 107 92,814 88 86,308 90,567 78,758 65 64 44,335 44,768 34 11 2013 2014 2015 2016 2017 1H2017 1H2018 2013 2014 2015 2016 2017 1H2017
Slide 14: Business Review: Trading and Supply of Marine Fuel
Business Review: Shipping Services (cont’d) 5.Trading and Supply of Marine Fuel * ** Revenue and Sales Volume Segment PBT 2,315 2,115 HK$ mn 5,657 5,815 19.9 4,767 17.5 1,162 15.8 3,979 1,147 1,064 1,005 12.1 12.0 865 2,780 2,430 3,309 7.6 6.9 2013 2014 2015 2016 2017 1H2017 1H2018 2013 2014 2015 20
Slide 15: Business Review: General Trading
Business Review: General Trading Operating Profit Operating Profit Margin 6.9% 181 HK$ mn 173 154 134 136 3.1% 26 ** 1% 1.2% 1.1% 21 1,248 1% 77 948 0.2% 837 14 768 50 650 9 8 7 308 220 0.5 2013 2014 2015 2016 2017 1H2017 1H2018 2013 2014 2015 2016 2017 1H2017 1H2018 Revenue (HK$ mn) Sales Volume ('
Slide 16: Financial Review
a WN cosco A iB 5 iz as SLICES COSCO SHIPPING Intemational Financial Review
Slide 17: Financial Summary
Financial Summary (HK$ mn) 1H2018 1H2017 Changes Revenue 4,788 3,809 +26% Gross profit 306 302 +1% Gross profit margin 6.4% 7.9% -1.5ppts Other income and gains-net1 76 66 +15% Selling, administrative and general expenses (257) (233) +10% Reversal of provision/(provision) for impairment of trade and
Slide 18: Profit Breakdown
Profit Breakdown Profit Before Income Tax (HK$ mn) 1H2018 1H2017 Changes Production and Sale of Coatings Shipping Services 129 170 -25% 0% Marine Insurance Brokerage Services Ship Trading Agency Services 58 52 +12% 11% Others Marine Insurance Brokerage 32% Supply of Marine 24 33 -27% Equipment and S
Slide 19: Financial Position & Financial Ratio Highlights
Financial Position & Financial Ratio Highlights (HK$ mn) As at 30 Jun 2018 As at 31 Dec 2017 Changes Total assets 9,567 9,611 -0.5% Trade receivables (net) 875 667 31% Total deposits and cash 6,384 6,487 -2% Total liabilities 1,394 1,397 -0.2% Equity (excluding non-controlling interests) 7,871 7,914
Slide 20: Cash Flow Summary
Cash Flow Summary (HK$ mn) 1H2018 1H2017 Cash & Cash Equivalents - Beginning 983.6 1,281.9 Cash Inflow/(outflow) Net cash (used in) operating activities (69.3) (186.0) Net cash generated from investing activities 233.8 221.8 Net cash (used in) financing activities (99.6) (202.8) Net increase/(decrea
Slide 21: Prospects
<osco his 75 2 BR Sue He PP 24% COSCO SHIPPING International Prospects 21
Slide 22: Outlook in 2H2018
Outlook in 2H2018 Global Economy & Shipping Market Global economic recovery is still making progress. The uncertainty in global economy which caused by the trade friction has gradually showed up. The shipping service industry will not be effected directly. Attention to the Capital Market Mak
Slide 23: Development Strategy - Internal Management
Development Strategy- Internal Management Vision: To build up shipping services industrial cluster and non-financial asset investment platform 01 02 Construction of Transformation and Headquarter Upgrading To transfer from management Pay close attention to the headquarter to operation and operation,
Slide 24: Development Strategy - Entity Management
Development Strategy- Entity Management Vision: To build up shipping services industrial cluster and non-financial asset investment platform 01 02 Looking for a greater return Differentiated and targeted based on the risk measures management. 03 Strict cost control and strive to open up new sources
Slide 25: Development Strategy - Transformation and Upgrading
Development Strategy- Transformation and Upgrading Vision: To build up shipping services industrial cluster and non-financial asset investment platform 1 2 The shipping service industry cluster mainly focuses To seek and explore the opportunity of on how to adapt to the modernization and non-financi
Slide 26: Thank you!
Thank you! For further information, please visit the Company’s website: www.coscointl.com Company Secretarial & Investor Relations Department Mr. Zheng Xiaofeng Mr.YK Chen Tel: 852 2809 7810 Tel: 852 2809 7820 Email: zhengxf@coscointl.com Email: chenyk@coscointl.com 26
Slide 27: Appendix: Corporate Profile
Appendix: Corporate Profile 27
Slide 28: Corporate Structure
Corporate Structure COSCO SHIPPING International (“COSCO SHIP INTL”) is a HK-based shipping services COSCO SHIPPING provider, offering diversified and specialized shipping related services or products to 100% customers such as shipping companies, ship yards, container manufacturers, etc. COSCO SHIPP
Slide 29: Position in China COSCO Shipping Corporation
Position in China COSCO Shipping Corporation COSCO SHIPPING * Shipping Equipment Shipping Social 50.01% Shipping Logistics Internet+ Finance Manufacturing Services Services 45.47% 50.94% 39.02% 66.12% COSCO SHIPPING COSCO SHIPPING COSCO SHIPPING China Shipping COSCO SHIPPING Network Holdings Develop
Slide 30: Business Overview
Business Overview Marine Insurance Marine Equipment & Ship Trading Agency Coatings Marine Bunker Supply Brokerage Spare Parts Supply Two JVs produce and sell Sinfeng (100%-owned) and As the “sole agent” for COSCO SHIPPING’s fleet to provide centralised procurement, and about 70% container coatin
Slide 31: COSCO SHIPPING Raises Stake in COSCO SHIP INTL to 66.12%
COSCO SHIPPING Raises Stake in COSCO SHIP INTL to 66.12% Parent company has been showing its confidence in COSCO SHIP INTL by raising its stake A. COSCO Group B. In Jun/Jul 2009 , C. COSCO Group D. COSCO Group E. COSCO Group F. COSCO purchased 51,416,000 COSCO Group bought a total of bought a total
Slide 32: Development Milestones in the past 20 Years
Development Milestones in the past 20 Years Strategic Transformation from a Conglomerate into a Shipping Services Provider COSCO Kansai COSCO Kansai started relocated its to build a new plant in plant in Shanghai Shanghai Acquired Acquired COSCO HK Yuantong signed 100% equityEntering into Acquired C
Slide 33: Disclaimer
Disclaimer This presentation contains certain forward-looking statements with respect to the financial position, results of operations and business of COSCO SHIPPING International and certain plans and prospects of the management of COSCO SHIPPING International. Such forward-looking statements i
COSCO SHIPPING International (Hong Kong) — H1 2018 Earnings Presentation on 6ix