Evergreen Marine Corp. (taiwan) Ltd. · TWSE:2603
Evergreen Marine Corp. (taiwan) — Evergreen Marine — Q1 2019 Earnings Presentation
26 slides from Evergreen Marine Corp. (taiwan)'s earnings presentation, 2019
Slide 1: Evergreen Marine Corp. 2019 Investor Conference
TSE: 2603 Evergreen Marine Corp. 2019 Investor Conference Challenge․Innovation․Teamwork 1
Slide 2: Legal Disclaimer
Legal Disclaimer The information contained in this presentation, including all forward-looking information, is subject to change without notice, whether as a result of new information, further events or otherwise, and Evergreen Marine Corp. (the “Company”) undertakes no obligation to publicly updat
Slide 3: Outline
Outline 1. Company Overview 2. Financial Results 3. Container Shipping Outlook 4. Business Strategy 3
Slide 4: 1. Company Overview
1. Company Overview Evergreen Line Ranked Intensive Service Continuous Fleet 7th in Capacity Network Renovation 4
Slide 5: Evergreen Line currently ranked 7th in Capacity
Evergreen Line currently ranked 7th in Capacity Source：Alphaliner Monthly Monitor Report July 2019 5
Slide 6: Intensive Service Network
Intensive Service Network loops 2 loops Trans- Atlantic loops 80+ loops Intra-Asia, Persian 8 loops Gulf 1 loop 3 loops loops 4 North America -South America Asia - Australia Asia- South America loops Asia- Africa 6
Slide 7: Continuous Fleet Renovation
Continuous Fleet Renovation On Order 63 vessels/ Owned 383,384TEU 113 vessels/ Evergreen Group Capacity Chartered In 576,088TEU 207 vessels/ 1,277,133TEU (Capacity Share: 45%) (Up to 20190701) 94 vessels/ 701,045TEU (Capacity Share: 55%) Year 2019 (2nd Half) • 2 x 2800TEU、3 x 20000TEU、3 x Group 1800
Slide 8: 2. Financial Results
2.Finacial Results Steady Growth in Hovering Burden of Fuel Better YoY Profit Margin Revenue Cost 8
Slide 9: Consolidated Operating Revenue Analysis (2019Q1 VS. 2018Q1)
Consolidated Operating Revenue Analysis (2019Q1 VS. 2018Q1) The Volume increased Volume : by 12.21%. 2019Q1 1.6452 Million TEU 2018Q1 1.4662 Million TEU Average O/F Rate (USD/ TEU) increased by 3.46%. Marine Freight Income increased by 21.90%. 9
Slide 10: Consolidated Main Operating Costs Analysis
Consolidated Main Operating Costs Analysis NT $ 100 Million 2018Q1 V.S. 2019Q1 ‾ The Volume increased by 12.21%. ‾ Port/ Terminal Charge increased by 7.49%. ‾ Connecting Expense (transshipment/ logistic) increased by 12.99%. ‾ Slottage Expense decreased by 21.21%. ‾ Fuel Cost increased by 27.38%.
Slide 11: Consolidated Income Statement
Consolidated Income Statement Unit: NT$ Millions Item 2018Q1 2019Q1 Growth % Operating revenue 36,840.69 45,697.05 24% Unit: NT$ 100 Millions Gross Profit (Loss) 909.15 3,424.76 277% Operating Income (22.60) 1,303.08 5,866% 457 (Loss) Net Income (Loss) 15.88 463.91 2,821% 368 Profit(Loss), attribute
Slide 12: Consolidated operating income, gross profit margin and net income margin
Consolidated operating income, gross profit margin and net income margin NT $ 100 Millions 12
Slide 13: 3. Container Shipping Outlook
3. Container Shipping Outlook Moderate Growth in Narrowing Gap between IMO2020 Low Sulfur World Economy Supply and Demand Regulations 13
Slide 14: Moderate Growth in World Economy
Moderate Growth in World Economy IMF latest World Economic Outlook: • World GDP growth Forecast: 2019 3.2% 2020 3.5% Forecast of economic growth rate of the world's leading economies: Emerging Market and • U.S.A.: 2019 2.6%, 2020 1.9% World Economy Advanced economies developing economies Euro Area:
Slide 15: Narrowing Gap between Supply and Demand
Narrowing Gap between Supply and Demand Alphaliner forecasts 2019 market volume growth slightly lower than total capacity growth rate. Demand 2.5% vs Supply 3.1% Estimated 2020 market volume growth will get closer to total capacity growth Demand 3.1% vs Supply 3.5% Source：Alphaliner Monthly Monitor
Slide 16: IMO2020 Low Sulfur Regulations
IMO2020 Low Sulfur Regulations IMO 2020 Regulations From January 2020, the IMO will ban ships from using fuels with a sulfur content above 0.5%. (0.1% cap has been implemented in Emission Control Areas since July 2015.) Shipping Lines’ 3 Options: Using alternative energy, such as Installing Sox Usin
Slide 17: 4. Business Strategy
4. Business Strategy Steer Along the Build Ships with Install Scrubber to Enhance Cloud Trade War Scale/Fuel Economy Save Earth and Cost Shipping E-Service 17
Slide 18: Steer Along the Trade War
Steer Along the Trade War Far East to U.S. Although China export volume to US drops 5.22%, China: volume drops SE Asia: volume adds the total market 5.2%, share drops 4.3% 21.5%, share adds 3.4% volume slightly increases 1.09%. 2014 – 2018 2018 (01-05) 2019 (01-05) 2014 – 2018 2018 (01-05) 2019 (01-
Slide 19: Building New Ships with Scale and Fuel Economy
Building New Ships with Scale and Fuel Economy Evergreen B-Type Profile Evergreen O-Type Profile Evergreen C-Type Profile •Number: 20 vessels •Number: 14 vessels •Number: 24 vessels •LOA/Beam: 211m/32.80m •LOA/Beam: 194.90m/32.20m •LOA/Beam: 171.90m/28.40m •Design Draft: 10.00m •Design Draft: 10.00m
Slide 20: Building New Ships with Scale and Fuel Economy
Building New Ships with Scale and Fuel Economy Sample CGI Source: SHI Evergreen F-Type Profile Evergreen G-Type Profile •Number: 20 vessels •Number: 11 vessels •LOA/Beam: 333.90m/48.40m •LOA/Beam: 400.00m/58.80m •Design Draft: 13.00m •Design Draft: 14.50m •Container Intake: 12,000TEU •Container Inta
Slide 21: Install Scrubber to Save Earth and Cost
Install Scrubber to Save Earth and Cost Open-looped scrubber is already scientifically certified of no adverse impacts on environment by “CSA(Clean Shipping Alliance)”, “Danish Ministry of the Environment” and “Japanese Ministry of Land, Infrastructure, Transportation and Tourism”. To meet the requi
Slide 22: Install Scrubber to Save Earth and Cost
Install Scrubber to Save Earth and Cost Evergreen’s Plan on Scrubber Installation • Owned: incumbent x 60 + newbuild x 12 • Chartered: incumbent x 21 + newbuild x 46 • Totally 139 vessels(53 of which will be completed before January 1st, 2020.) Other Liners also in Pursuit • Alphaliner: by end of Ma
Slide 23: Install Scrubber to Save Earth and Cost
Install Scrubber to Save Earth and Cost Estimated average price gap ( during 2019 – 2024) between HSFO and 0.5%VLSFO could be $160/Ton, so vessels equipped with scrubbers can continue to use cheaper HSFO to save fuel cost. 5 Years Forward Curve Year Sing380 0.5 VLSFO Diff. 600 2019 $373 $545 $172 55
Slide 24: Enhance Cloud Shipping E-Service
Enhance Cloud Shipping E-Service i-B/L • i-B/L provides paperless BL transaction and alteration to streamline customer’s shipping process and efficiency. • Through Evergreen’s own platform “ShipmentLink”, customers can generate i- B/L certified by banks and insurance companies, to speed up transacti
Slide 25: Enhance Cloud Shipping E-Service
Enhance Cloud Shipping E-Service Digital Container Shipping Association (DCSA) is formed and participated by 9 major container shipping lines to set up standardization of international container shipping by communicating with governments and authorities to streamline the international shipping proce
Slide 26: Thank You!
Thank You! http://www.evergreen-marine.com 26