Cosco Shipping International (hong Kong) Co., Ltd. · HKEX:517
Cosco Shipping International (hong Kong) — Investor Presentation (May 2017)
34 slides from Cosco Shipping International (hong Kong)'s investor presentation, May 2017
Slide 1: Corporate Presentation
CORPORATE PRESENTATION May 2017
Slide 2: Agenda
Agenda Corporate Profile Investment Highlights 2016 Annual Results Financial Review Business Review Prospects
Slide 3: Corporate Profile
Corporate Profile SZ te ey costo Pie 8A SUIREANS COSCO SHIPPING Intemational
Slide 4: 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% 53.35% 66.12% COSCO SHIPPING COSCO SHIPPING China Shipping Holdings COSCO SHIPPING COSCO Corporation COSCO
Slide 5: 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 6: Customers General Description
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 7: 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 8: Investment Highlights
Investment Highlights Lt i— ™ = SZ ie ey costo His 8 HR SLICES COSCO SHIPPING Intemational
Slide 9: (1) Beneficiary of Shipping Capacity
(1) Beneficiary of Shipping Capacity Shipping services is driven by shipping capacity growth and ship owners’ fleet restructuring activity not affected by short-term fluctuation of freight rate, distinct from shipping companies mn DWT HK$ mn 2,000 800 1,782 * 1,728 1,800 1,671 1,618 700 1,556 1,
Slide 10: (2) Stable Dividend Payout Policy
(2) Stable Dividend Payout Policy The dividend policy of the Company is to pay no less than 50% of the profit attributable to equity holders of the Company as annual dividend, prior to practical progress in major investment project(s) in the futureNote 1. In 2016, to celebrate the 20th anniversa
Slide 11: (3) Healthy Operating Cash Flow & Strong Cash Position
(3) Healthy Operating Cash Flow & Strong Cash Position Net cash flows from operating activities in 2016: HK$401mn (2015: HK$421mn) Net cash of HK$6.65 bn* on hand as at the end of 2016 to support future acquisition and business expansion 82% of the cash was allocated as short-term bank deposits wi
Slide 12: (4) Consolidation of similar businesses from China Shipping Group
(4) Consolidation of similar businesses from China Shipping Group Completion of Acquisition of Equipment Supply Business On 28 Nov 2016, COSCO SHIPPING International entered into the share purchase agreement with COSCO SHIPPING Financial Holdings Co., Limited and China Merchants Hoi Tung Trading
Slide 13: 2016 Annual Results - Financial Review
2016 Annual Results- Financial Review 13
Slide 14: Financial Summary
Financial Summary (HK$ mn) 2016 2015 Changes Revenue 7,430 6,000 +24% Gross profit 544 691 -21% Gross profit margin 7.3% 11.5% -4.2ppts Other income and gains 35 861 -60% Selling, administrative and general expenses (447) (537) -17% Other expenses and losses (18) 2 (44) -59% Operating profit 1133 19
Slide 15: Profit Breakdown
Profit Breakdown Profit Before Income Tax (HK$ mn) 2016 2015 Changes Trading and Supply Others Shipping Services 275 372 -26% of Marine Fuel 7% Production and Sale 4% of Coatings General Trading 24% Ship Trading Agency Services 70 62 +13% 2% Marine Insurance Brokerage Services 69 67 +3% Supply of Ma
Slide 16: Financial Position & Financial Ratio Highlights
Financial Position & Financial Ratio Highlights (HK$ mn) As at 31 Dec 2016 As at 31 Dec 2015 Changes Total assets 9,388 9,467 -1% Trade receivables (net) 646 769 -16% Total deposits and cash 6,722 6,261 +7% Total liabilities 1,342 1,368 -2% Bank borrowings 67 36 +86% Equity (excluding non-controllin
Slide 17: Cash Flow Summary
Cash Flow Summary (HK$ mn) 2016 2015 Cash & Cash Equivalents - Beginning 1,115.2 1,164.7 Cash Inflow/(outflow) Net cash generated from operating activities 400.9 421.3 Net cash used in investing activities (39.2) (189.6) Net cash used in financing activities (171.6) (254.1) Net (decrease)/ increase
Slide 18: 2016 Annual Results - Business Review
2016 Annual Results- Business Review 18
Slide 19: 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 71% 150 63% 64% 63% 62% 64% 129 107 109 103 99 81 85 69 66 63 52 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Revenue from Newbuilding Revenue from Secondhand & Others Op
Slide 20: Business Review: Marine Insurance Brokerage Services
Business Review: Shipping Services (cont’d) 2. Marine Insurance Brokerage Services Revenue Operating Profit 71% 71% 71% 72% 72% 69% HK$ mn 94 91 92 89 HK$ mn 68 66 63 63 85 85 60 61 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Operating Profit Margin COSCO Insurance Brokers achieved
Slide 21: Business Review: Supply of Marine Equipment and Spare Parts
Business Review: Shipping Services (cont’d) 3. Supply of Marine Equipment and Spare Parts Revenue Operating Profit HK$ mn HK$ mn 1,097 1,050 1,065 7% 970 5% 923 4% 5% 889 3% 4% 63 49 51 47 42 31 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Revenue from Newbuilding Demand Revenue from
Slide 22: Business Review: Container & Industrial Anti-Corrosion Coatings
Business Review: Shipping Services (cont’d) 4. Production and Sale of Coatings: (1). Container & Industrial Anti-Corrosion Coatings by COSCO Kansai* HK$ mn Revenue HK$ mn Operating Profit 1,609 11% 1,323 1,391 1,275 9% 1,109 181 8% 7% 6% 114 105 637 86 70 2011 2012 2013 2014 2015 2016 2011 2012 2013
Slide 23: Business Review: Marine Coatings by 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 132,189 107 114,724 112,639 88 86,308 92,814 78,758 65 49 38 11 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Sales Volume fro
Slide 24: 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 ** HK$ mn ‘000 Tonnes 20,000 2,115 18,000 2,000 HK$ mn *** 16,000 54.6 14,000 1,371 1,500 12,000 1,200 1,162 1,147 10,000 865 1,000 8,000 6,680 6,228 5,657 18.5 19.9 6,000 4,767 17.5
Slide 25: Business Review: General Trading
Business Review: General Trading Revenue* and Asphalt Sales Volume Operating Profit HK$ mn '000 Tonnes 200 181 3.1% 173 3% 2,500 180 160 HK$ mn 2% 134 136 2,000 140 32 1.2% 125 121 1% 1% ** 120 26 1,500 1,386 24 1,248 100 1,162 948 80 1,000 837 768 14 60 9 40 8 500 20 0 0 2011 2012 2013 2014 2015 20
Slide 26: Prospects
<osco his 75 2 BR Sue He PP 24% COSCO SHIPPING International Prospects 26
Slide 27: Outlook in 2017
Outlook in 2017 Global Economy & Shipping Market Global economic growth is forecast to be faster than that in 2016. Although the overall imbalance between the supply and demand sides in the shipping sector still exists, it is expected to be relieved to a certain extent. The shipping market is
Slide 28: Development Strategy
Development Strategy Vision: To become a World Class and Leading Shipping Services Company in China Increase Upgrade profitability of Expand corporate existing businesses governance business coverage To intensify the effort to develop To strengthen internal To consolidate the assets non-COSCO
Slide 29: Thank you!
Thank you! For further information, please visit the Company’s website: www.coscointl.com Company Secretarial & Investor Relations Department Mr. Zheng Xiaofeng Ms. Candy Cheung Mr.YK Chen Tel: 852 2809 7810 Tel: 852 2809 7706 Tel: 852 2809 7820 Email: zhengxf@coscointl.com Email: cheungky@coscointl
Slide 30: Appendix
Appendix 30
Slide 31: Market Review: (1) Delivery & Contracting of Newbuilding
Market Review: (1) Delivery & Contracting of Newbuilding Newbuilding Delivery Trend Clarkson Price Index Newbuilding mn DWT Global Total Delivery Secondhand 150 Chinese Shipyards' Delivery 139 138 133 131 126 123 109 97 100 100 91 89 119 71 111 102 96 93 45 50 36 39 36 75 32 31 0 2013 2014 2015 2016
Slide 32: Market Review: (2) Output & ASP of Newbuild Containers
Market Review: (2) Output & ASP of Newbuild Containers Drivers of Container Coatings’ Demand & ASP Output and Average Selling Price of Monthly Output of Newbuild Containers in China Newbuild Containers in China '000 TEU 350 300 '000 TEU 250 5,000 US$2,612 200 4,500 US$2,396 150 US$2,128 4,000 US$2,0
Slide 33: 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 Equity interests in Sino Shanghai Acquired Acquired COSCO HK Ocean Land was 100% equity
Slide 34: 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
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