Cosco Shipping Ports Limited · HKEX:1199
Cosco Shipping Ports — Q1 2023 Earnings Presentation
22 slides from Cosco Shipping Ports's earnings presentation, April 2023
Slide 1: 1Q2023 Results Presentation
1Q2023 Results Presentation April 2023
Slide 2: Agenda
AGENDA 1. Key Highlights 2. Financial Performance 3. Operational Review 4. Strategy & Outlook 5. Q&A 6. Appendix ésco PHSB OSRAA SHIPPING COSCO SHIPPING Ports Limited WAZ The Ports for ALL 9
Slide 3: 1. Key Highlights
Cosco PRABEORRAA AGENDA a one an Ports Limited 1. Key Highlights The Ports SorALL
Slide 4: Subsidiary Terminals' Profitability
1Q2023 Subsidiary Terminals’ Profitability Subsidiary Terminals’ Profit Outperformed in Our Portfolio ➢ In 1Q2023, subsidiary terminals’ profit increased 0.9% YoY to USD 22.8M. ASP increase helped offset throughput decline ➢ Total terminal profit in 1Q2023 contracted 6.3% YoY mainly due to lower thr
Slide 5: 2. Financial Performance
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Slide 6: Financial Highlights
1Q2023 Financial Highlights ASP Increase and Margin Expansion ➢ In 1Q2023, ASP increase (1) helped offset throughput decline at subsidiary terminals ➢ Lean operation strategy drives a growth of 11.2% YoY in gross profit and an increase of 2.9 pps in GP margin to 27.4% ➢ Mainly affected by a decrease
Slide 7: Revenue and Gross Profit Margin
1Q2023 Revenue and Gross Profit Margin Successful Lean Operation Strategy Continue to Drive Growth at TCT and CSP Abu Dhabi Projects 1Q2023 Subsidiaries’ revenue (US$ Million) and GPM (%) ➢ Strong earnings contributors: China Sub 55.0% • GPM in China remained at a relatively high level Overseas Sub
Slide 8: Terminal Profit
1Q2023 Terminal Profit Better Profit Performance of Subsidiary Terminals ➢ Terminal profit by regions: • In 1Q2023, terminal profit in the S.W. Coast, the Bohai Rim and overseas regions recorded a YoY growth • Given global economic slowdown, some terminals more relying on foreign trade in regions of
Slide 9: Financial Position
1Q2023 Financial Position Healthy Financial Condition to Promote Sustainable Development ➢ Healthy cash and net gearing level enable us to continue to capture growth opportunities ➢ Total CAPEX budget in 2023 is approximately USD 1.4B, with investment and PP&E accounting for about 40% and 60%, respe
Slide 10: 3. Operational Review
Cosco PRABEORRAA AGEND A SLIPPING COSCO SHIPPING Ports Limited The Ports for ALL 9) 3. Operational Review Group's Dual Brand COSCO SHIPPING |
Slide 11: Throughput
1Q2023 Throughput Uneven Throughput Performance across Different Regions ➢ The regions of the Bohai Rim and Southwest Coast posted a growth of 10.6% YoY and 14.7% YoY, respectively, while the overseas region declined slightly by 1.5% YoY ➢ Despite throughput slide in the regions of the YRD, Southeas
Slide 12: Market Development Strategy
1Q2023 Market Development Strategy Continuing to Increase ASP ➢ Continuing to make positive progress of introducing new shipping lines and increasing ASP 1Q2023 Customers as a percentage of total throughput (1) COSCO SHIPPING Lines OOCL Evergreen + CMA OCEAN Alliance 2M + THE Alliance Others Maintai
Slide 13: Technological Innovation
Technological Innovation Continuing the Construction of Smart Ports to Facilitate Lean Operations Management Further enhancing terminals’ IT infrastructure through the participation of GSBN and application of blockchain technology ➢ Launching CSP Portal for GSBN at 8 subsidiary terminals, promoting
Slide 14: New Sources of Growth
New Sources of Growth Accelerating the Development of Supply Chain Projects and Value-Added Products Supply chain projects EV Business CSP Abu Dhabi CFS Phase 1 CSP Zeebrugge CFS ➢ In 1Q2023, China's exports of electric vehicles surged more than double YoY. Total area Warehouse Capex Commissioning H
Slide 15: 4. Strategy & Outlook
Cosco PRABEORRAA AGENDA a one an Ports Limited 4. Strategy & Outlook IG Smart Ports
Slide 16: Strategy
Strategy Global Terminal Network and Lean Operations Management Capitalizing on Further implementing global economic growth to lean operations management to boost optimize terminal portfolio quality and efficiency ➢ Continuing to develop a global ➢ 3 keys to success in lean operations management: te
Slide 17: Outlook
Outlook Challenges ➢ Weakening global economic ➢ Further strengthening the performance growth with ongoing destocking of our strategic subsidiary terminals and continuing to enhance the global ➢ Increasing risks of geopolitical ports network and to optimize our conflict terminal portfolio, especiall
Slide 18: 5. Q&A
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Slide 19: 6. Appendix
Cosco PRABEORRAA AGENDA a one peat Ports Limited 6. Appendix BSG &L Sustainability | SUSTAINABLE iT ca ie Hepp se = | ISIGHT ACTION
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 Ecological and Environmental Protection Water Consumption Waste Target: Target for hazardous waste: ➢ To enhance the management of water resources and ➢ To maintain 100% hazard-free disposal of waste improve water use efficienc
Slide 22: 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