Orient Overseas (international) Limited · HKEX:316
Orient Overseas (international) — H1 2010 Earnings Presentation
30 slides from Orient Overseas (international)'s earnings presentation, Aug 5, 2010
Slide 1: 2010 Interim Results Announcement
ORIENT OVERSEAS (INT’L) LTD 2010 Interim Results Announcement Aug 5th 2010
Slide 2: Group Results Summary – 2010 1H
Group Results Summary – 2010 1H Results Financial 2010 Trading Conditions • OOIL Revenue Increased 32% to US$2.73 Billion • Profit from Continuing Operations US$287 Million • Profit from Sale of OODL US$1,004 Million • Profit Attributable to Equity holders US$1,285 Million • Earnings per Ordinary Sh
Slide 3: Group Results – 2010 1H
Group Results – 2010 1H Results Financial 2010 Trading Conditions US$M 1H10 1H09 %▲ Revenue 2,733 2,065 32% Operating Profit / (Loss) From Core 310 (177) 275% Operation Revaluation of Wall Street Plaza - (15) N/A Profit / (Loss) Attributable to Equity 1,285 (232) 654% holders 3 Aug 5th, 2010
Slide 4: Group Results – 2010 1H
Group Results – 2010 1H Results Financial 2010 Trading Conditions US$M 1H10 1H09 %▲ Revenue 2,733 2,065 32% EBIT 313 (190) 265% EBITDA 446 (95) 569% Profit / (Loss) after Tax 1,292 (231) 659% EBIT Margin (%) 11.5% -9.2% 20.7% 4 Aug 5th, 2010
Slide 5: Earnings / (loss) per Ordinary Share
Earnings / (loss) per Ordinary Share Results Financial 2010 Trading Conditions US Cents 1H10 1H09 ▲ EPS – Continuing Operations 44.8 (35.1) 79.9 EPS – Discontinued Operation 160.5 (1.9) 162.4 EPS – Basic and Diluted 205.3 (37.0) 242.3 5 Aug 5th, 2010
Slide 6: 2010 1H – Dividend pay out
2010 1H – Dividend pay out Results Financial 2010 Trading Conditions Ordinary Dividend US11.5 Cents Special Dividend US40.0 Cents * Dividend will be paid on 21 September 2010 to those ordinary equity holders whose names st appear on the register on 6th September 2010 6 Aug 5th, 2010
Slide 7: Dividend – Historical pay out
Dividend – Historical pay out Results Financial 2010 Trading Conditions US Cents 100 80 80 80 60 40 40 13.5 20 12 15 11 12 11.5 9.5 6.5 4.5 Nil 0 2005 2006 2007 2008 2009 2010 Interim Dividends Final Dividends Special Dividends 7 Aug 5th, 2010
Slide 8: Container Transportation (excl. Logistics)
Container Transportation (excl. Logistics) Results Financial 2010 Trading Conditions US$ / TEU 1H10 1H09 %▲ Liftings ('000) 2,230 1,999 11.6% Revenue (US$M) 2,526 1,824 38.5% Revenue Per TEU 1,133 912 24.2% Net Operating Capacity 377,351 350,638 7.6% Load Factor 83% 69% 14% 8 Aug 5th, 2010
Slide 9: All Trades Liftings and Revenue per TEU
All Trades Liftings and Revenue per TEU* Results Financial 2010 Trading Conditions 2008 Total Lifting 2009 Total Lifting 2010 Total Lifting 2008 Total Revenue per TEU 2009 Total Revenue per TEU 2010 Total Revenue per TEU TEU ('000) Revenue per TEU (US$) 1,400 1,300 1,200 1,200 1,000 1,100 800 1,000
Slide 10: OOCL Operational Update
OOCL Operational Update* Results Financial 2010 Trading Conditions YTD Q2 2010 Q2 2009 change 1H 2010 1H 2009 change LIFTINGS (TEU'S) Trans-Pacific 313,174 279,589 12.0% 583,435 558,966 4.4% Asia-Europe 190,291 170,614 11.5% 371,501 334,914 10.9% Trans-Atlantic 89,029 84,219 5.7% 176,219 169,597 3.9
Slide 11: OOCL Operational Update
OOCL Operational Update* Results Financial 2010 Trading Conditions QoQ QoQ QoQ QoQ Q2 2010 change Q1 2010 change Q4 2009 change Q3 2009 change LIFTINGS (TEU'S) Trans-Pacific 313,174 15.9% 270,261 -11.7% 306,055 4.5% 292,879 4.8% Asia-Europe 190,291 5.0% 181,210 3.6% 174,959 3.5% 168,996 -0.9% Trans-
Slide 12: OOCL Average Revenue / TEU & Bunker Price
OOCL Average Revenue / TEU* & Bunker Price Results Financial 2010 Trading Conditions Revenue Per TEU (US$) 2,000 1,831 1,790 1,830 1,800 1,694 1,726 1,806 1,714 1,782 1,718 1,634 1,531 1,629 1,600 1,640 1,536 1,472 1,607 1,397 1,467 1,396 1,507 1,355 1,304 1,400 1,289 1,420 1,207 1,211 1,266 1,197 1
Slide 13: Investment Property
Investment Property Results Financial 2010 Trading Conditions • Wall Street Plaza – No change in the existing US$150M valuation – Operations are in line with expectations – Vacancy rate of 8.4% as at end of June 30 • Beijing Oriental Plaza – Performing as forecast – Continues to make modest profits
Slide 14: Hang Seng Corporate Sustainability Index
Hang Seng Corporate Sustainability Index Results Financial 2010 Trading Conditions On July 16, 2010 OOIL was included as a founding constituent member of the: Hang Seng Corporate Sustainability Index. “The index has been created to allow investors to identify corporations that emphasise long-term va
Slide 15: Financial Position
Financial Position The Group is running a high level of liquidity following the sale of OODL and will continue to do so while we look for strategic opportunities to expand OOCL’s operations in addition to normal organic growth
Slide 16: Balance Sheet Highlights
Balance Sheet Highlights Results Financial 2010 Trading Conditions US$M 30 Jun 2010 31 Dec 2009 Non-current Assets 4,385 4,324 Current Assets 4,456 3,006 Total Assets 8,841 7,330 Non-current Liabilities 2,596 2,170 Current Liabilities 996 1,192 Total Liabilities 3,592 3,362 Equity 5,243 3,944 Non-co
Slide 17: Net Cash / (Debt) Position
Net Cash / (Debt) Position Results Financial 2010 Trading Conditions US$M 30 Jun 2010 31 Dec 2009 Liquid Assets 3,972 1,354 Debt 2,784 2,568 Net Cash / (Debt) 1,188 (1,214) 17 Aug 5th, 2010
Slide 18: Debt-to-Equity Ratios
Debt-to-Equity Ratios Results Financial 2010 Trading Conditions Ratio Gross Debt to Equity Ratio Net Debt to Equity 2.0 2.0 1.5 1.5 1.0 1.0 0.76 0.65 0.53 0.54 0.53 0.5 0.5 0.33 0.31 Net Cash 0.07 Net Cash 0.0 0.0 2006 2007 2008 2009 2010 1H 2006 2007 2008 2009 2010 1H 18 Aug 5th, 2010
Slide 19: Net Profit / (Loss)
Net Profit / (Loss) Results Financial 2010 Trading Conditions US$’000 1H10 1H09 Variance 1H2009 Loss Attributable to Equity holders (231,848) Gross Profit 540,351 20,164 520,187 Other (256,608) (222,219) (34,389) (incl. other operating expenses) Interest Income 5,944 6,633 (689) Investment Income/(L
Slide 20: Total Liquid Assets
Total Liquid Assets Results Financial 2010 Trading Conditions US$M 30 Jun 2010 31 Dec 2009 Restricted bank balances 2 2 Cash and bank balances 3,817 1,225 Portfolio investments, Equities and Bonds 153 127 Total 3,972 1,354 20 Aug 5th, 2010
Slide 21: Bunker Fuel Cost
Bunker Fuel Cost* Results Financial 2010 Trading Conditions US$M 1H10 1H09 %▲ Total Consumption ('000 TON) 876 943 7% Average Price 463 291 -59% Total Bunker Costs (US$M) 412 279 -48% % of Total Operating Costs 18% 14% -4% *Note: Excluding consumption of diesel 21 Aug 5th, 2010
Slide 22: Trading Conditions
Trading Conditions
Slide 23: Chairman’s Message
Chairman’s Message Results Financial 2010 Trading Conditions • While the strengthened demand experienced in the first half of the year has seen a welcome return to profitability for the industry, • Some caution is warranted to the extent that the demand has been driven by inventory level changes and
Slide 24: 2010 1H - Overall Market
2010 1H - Overall Market Results Financial 2010 Trading Conditions • 2010 started positively for the container transportation sector with lifting increased by 11.6% and revenue by 38.5% • An improved supply/demand balance and upward pressure on freight rates that will see the industry return to prof
Slide 25: 2010 - Overall Market
2010 - Overall Market Results Financial 2010 Trading Conditions • Despite the positive first half environment, the likely strength of consumer demand in the second half of the year remains unclear and freight rate levels continue to be fragile with significant new- build capacity still to be absorbe
Slide 26: OOCL Static Slot Capacity Breakdown
OOCL Static Slot Capacity Breakdown Results Financial 2010 Trading Conditions % of # of Capacity Average As at 30 Jun 2010 Total Vessels (TEU) (TEU) Fleet Owned 45 268,502 5,967 71% Long Term Chartered 13 61,660 4,743 16% Operating Lease 1 4,402 4,402 1% Short Term Chartered 27 66,339 2,457 18% Char
Slide 27: OOCL Fleet for Future Deliveries
OOCL Fleet for Future Deliveries Results Financial 2010 Trading Conditions • Delivery schedule of 6 x 8600 teus vessels: 1. April 2011 2. June 2011 3. 2H 2012 4. 1H 2013 5. 1H 2013 6. 1H 2013 • New orders were placed with Hudong – Zhonghua Shipyard (Group) Co. Ltd, PRC • Financing has been arranged
Slide 28: OOCL Static Slot Capacity
OOCL Static Slot Capacity Results Financial 2010 Trading Conditions Operating Capacity Increased By 7.6% TEU ('000) 400 377 351 300 200 100 0 30 Jun 2009 30 Jun 2010 28 Aug 5th, 2010
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),
Slide 30: Thank You
THANK YOU
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