Cosco Shipping Ports Limited · HKEX:1199
Cosco Shipping Ports — FY2018 Earnings Presentation
25 slides from Cosco Shipping Ports's earnings presentation, Mar 28, 2019
Slide 1: FY2018 Results Investor Presentation
FY2018 Results Investor Presentation 28 March 2019
Slide 2: FY2018 Financials
FY2018 Financials Operation Reviews – Growth driven by volume On Track to achieve Five-year Target FY2019 Outlook Appendix – Terminal Profit Breakdown
Slide 3: FY2018 Financials
FY2018 Financials Operation Reviews – Growth driven by volume On Track to achieve Five-year Target FY2019 Outlook Appendix – Terminal Profit Breakdown
Slide 4: Financial Highlights
Financial Highlights Like-for-like Reported (Exclude newly acquired projects and projects under construction etc.) US$’mn FY2018 FY2017 Change % FY2018 FY2017 Change % Revenue 1,000.4 634.7 +57.6 689.5 (1) 588.8 (1) +17.1 Cost of sales 706.7 425.4 +66.1 447.5 (1) 388.6 (1) +15.2 Gross Profit 293.7 2
Slide 5: Revenue Growth Remained Strong in FY2018
Revenue Growth Remained Strong in FY2018 Total Throughput (TEU) FY2018 FY2017 yoy% Revenue (US$’mn) Total throughput 117,365,360 100,202,185 +17.1 1,000.4 - Subsidiaries 22,507,686 17,353,422 +29.7 - Non-subsidiaries 94,857,674 82,848,763 +14.5 Total throughput (organic) 94,158,905 * 87,378,157 * +7
Slide 6: Newly acquired added costs – Costs of Sales
Newly acquired added costs – Costs of Sales Costs of Sales (US$’mn) Costs of Sales by Quarter (US$’mn) Costs of sales CSP Spain Group (% of total costs of sales) 706.7 191.5 173.9 177.2 11.8% 164.1 7.8% Nansha 2.9% Xiamen 425.4 33.1% Zeebrugge 19.0% 10.2% CSP Spain 0.3% Group 8.4% 25.8% 33.1% PCT Ot
Slide 7: Growth in profits mainly from subsidiaries
Growth in profits mainly from subsidiaries Terminal Profits (US$’mn) (1) Top 10 Terminal Contributors 378.7 FY2018 FY2017 QPI 26.3% QPI 18.1% 298.2 80.5 Yantian 14.3% Yantian 17.4% PCT 6.5% Shanghai Pudong 7.8% 58.8 Shanghai Pudong 5.9% Shanghai Mingdong 7.0% Subsidiaries Kumport 5.1% PCT 6.8% Non-s
Slide 8: CAPEX Spent in FY2018
CAPEX Spent in FY2018 • further strengthen the 4.34% Stake in Beibu cooperation with Beibu Gulf Port Gulf Port • lay a foundation for the Company US$68mn to participate in the integration of Guangxi ports COSCO-PSA Investment US$60mn • Berth expansion and related costs US$494mn Vs CAPEX plan less th
Slide 9: Financial Position Remains Healthy
Financial Position Remains Healthy US$mn At 31 Dec 2018 At 31 Dec 2017 Total Debt 2,479.9 2,334.3 Average cost of debt 3.58% 3.22% Cash on hand (included restricted cash) 606.7 566.4 Net debt to equity 32.2% 30.2% Interest coverage 6.6x 7.4x (1) Net debt to EBITDA 2.87x 3.73x (1) Net asset 5,819.7 5
Slide 10: Operation Reviews – Growth driven by volume
FY2018 Financials Operation Reviews – Growth driven by volume On Track to achieve Five-year Target FY2019 Outlook Appendix – Terminal Profit Breakdown
Slide 11: Geographical Analysis
Geographical Analysis Terminal Profits Equity Throughput 2017 (Total: US$295.3 million) 2017 (Total: 31,999,491 TEU) 2018 (Total: US$364.0 million) 2018 (Total: 37,062,172 TEU) 28.9% 35.1% 25.1% 29.7% 23.3% 23.5% 23.3% 27.5% 21.7% 23.3% 23.7% 17.5% 15.4% 17.0% 15.1% 14.2% 9.1% 9.0% 6.9% 4.6% 1.7% 2.
Slide 12: Strong Synergies with OCEAN Alliance
Strong Synergies with OCEAN Alliance Throughput from OCEAN Alliance as % of total throughput (6 Subsidiaries(1) ) 89.8% 2017 78.0% 2018 66.4% 62.8% 61.2% 58.9% 53.6% 44.2% 34.9% 38.3% 23.7% 19.8% PCT Xiamen Nansha Lianyungang CSP Spain Zeebrugge Group Note: (1) Acquisitions of CSP Spain Group (51%)
Slide 13: Strong Synergies with Ocean Alliance (cont’d)
Strong Synergies with Ocean Alliance (cont’d) Throughput from COSCO SHIPPING, OOCL and Evergreen + CMA as % of total throughput (1) Growth in Volume Contributions (2018 vs 2017) COSCO SHIPPING OOCL Evergreen + CMA OCEAN Alliance 2M + THE Alliance Others +33.7% OCEAN Alliance 20.4% 18.4% 27.8% 31.7%
Slide 14: Volume breakdown – subsidiaries
Volume breakdown – subsidiaries Overseas Subsidiaries China Subsidiaries Transhipment Transhipment O&D O&D 28.4% 28.0% 63.8% 65.5% 71.6% 72.0% 36.2% 34.5% FY2017 FY2018 FY2017 FY2018 14
Slide 15: On Track to achieve Five-year Target
FY2018 Financials Operation Reviews – Growth driven by volume On Track to achieve Five-year Target FY2019 Outlook Appendix – Terminal Profit Breakdown
Slide 16: On Track to achieve Five-year Target
On Track to achieve Five-year Target The 5-year Target FY2016 By 2021 FY2018 Change (Base Year) Equity + 60% 37.1mn TEU +25.7% 29.5mn TEU Throughput Total Assets + 50% US$9,045.5mn +33.3% US$6,786.5mn Net Profits + 100% US$324.6mn +79.4% US$180.9mn* *excluding one-off gain from disposal of FCHL and
Slide 17: FY2019 Outlook
FY2018 Financials Operation Reviews – Growth driven by volume On Track to achieve Five-year Target FY2019 Outlook Appendix – Terminal Profit Breakdown
Slide 18: 2019 Full-year Guidance – Volume
2019 Full-year Guidance – Volume Throughput Low double digit growth for FY2019 1. Increasing volume contributions from OCEAN Alliance, 2M and THE Alliance • Jan-Feb 2019 vs Jan-Feb 2018 • 2M+THE Alliance: + 19.6% • OCEAN Alliance: + 2.5% 2. Add volume from CSP Abu Dhabi terminal • 2 shipments from O
Slide 19: CAPEX Budgeted for FY2019
CAPEX Budgeted for FY2019 Operation/ Development Plans for FY2019 • China port group investments • Step up development of terminal extended logistics & logistic park • Divestment of non-performing assets FY2019 CAPEX about US$1.7 billion US$ million PP&E About US$872 million (including terminal exte
Slide 20: 2019 Outlook
2019 Outlook Headwinds in FY2019 • Impact of HKFRS 16 : target to keep the impact lower than $20mn ( non-cash impact) • D&A of Abu Dhabi 1. HKFRS 16 is non-cash impact, fundamentals of the operation won’t be impacted 2. Subsidiaries continue to grow to offset the negative impacts of the headwinds •
Slide 21: Appendix – Terminal Profit Breakdown
FY2018 Financials Operation Reviews – Growth driven by volume On Track to achieve Five-year Target FY2019 Outlook Appendix – Terminal Profit Breakdown
Slide 22: Appendix – Terminal Profit Breakdown
Appendix – Terminal Profit Breakdown Terminal Profits of Port Companies % of total % of total US$' 000 2018 terminal 2017 terminal YoY profit profit Bohai Rim 127,925 35.1% 81,073 27.5% 57.8% QPI 95,747 26.3% 53,524 18.1% 78.9% Dalian Port 8,256 2.3% 5,504 1.9% 50.0% Dongjiakou Ore Terminal 4,342 1.
Slide 23: Appendix – Terminal Profit Breakdown (cont’d)
Appendix – Terminal Profit Breakdown (cont’d) Pearl River Delta 84,898 23.3% 87,226 29.5% -2.7% Yantian International 52,086 14.3% 51,315 17.4% 1.5% *Guangzhou Oceangate Terminal 14,228 3.9% 15,210 5.2% -6.5% HK Terminal2 12,743 3.5% 15,133 5.1% -15.8% Nansha Stevedoring 5,841 1.6% 5,568 1.9% 4.9% S
Slide 24: 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 25: Thank you!
cosco SQane his eOsRAA a The Ports for ALL COSCO SHIPPING Ports Limited NI pila | »_- Thank you!