Cosco Shipping Ports Limited · HKEX:1199
Cosco Shipping Ports — FY2021 Earnings Presentation
36 slides from Cosco Shipping Ports's earnings presentation, Mar 30, 2022
Slide 1: FY2021 Results Presentation
ters COSCO SHIPPING Ports Limited SES! chit SEBO SRA Al The Porks for ALL FY2021 Results Presentation Improve Quality and Efficiency to Enhance Development Lean Operation Achieves Results March 30, 2022
Slide 2: Agenda
Agenda 1 Key Highlights 2 Financial Performance 3 Operational Review 4 Strategy & Outlook 5 Appendix
Slide 3: Agenda
Agenda 1 Key Highlights 2 Financial Performance 3 Operational Review 4 Strategy & Outlook 5 Appendix
Slide 4: Strong 4Q & FY Terminal Profit Growth
Strong 4Q & FY Terminal Profit Growth ➢ 4Q terminal profit increased by 32.0% YoY to USD 105.8M; FY21 terminal profit surged by 38.1% YoY to USD 427.3M ➢ The Company recorded strong 4Q and FY terminal profit growth on the back of our lean operations strategy as well as macro environment improvement
Slide 5: Strong Subsidiaries' Terminal Profit Growth
Strong Subsidiaries’ Terminal Profit Growth ➢ Substantial enhancement for subsidiaries’ terminal profit through effective “revenue boost” and “cost reduction” measures 4Q2021 Subsidiaries’ Terminal Profit (US$ million) FY2021 Subsidiaries’ Terminal Profit (US$ million) 28.7 88.8 16.3 China 18.0 +72.
Slide 6: Agenda
Agenda 1 Key Highlights 2 Financial Performance 3 Operational Review 4 Strategy & Outlook 5 Appendix
Slide 7: 4Q & FY2021 Financial Highlights with Satisfactory Margin Expansion
4Q & FY2021 Financial Highlights with Satisfactory Margin Expansion (US$ million, unless stated otherwise) 4Q2020 4Q2021 YoY (%) FY2020 FY2021 YoY (%) Consolidated throughput from Subsidiaries (in ’000 TEU) 5,858 6,093 +4.0 22,329 23,375 +4.7 Revenue 277.9 347.6 +25.1 1,000.6 1,208.3 +20.7 Cost of s
Slide 8: Solid 4Q & FY2021 Revenue Growth
Solid 4Q & FY2021 Revenue Growth ➢ Revenue growth accelerated in 4Q2021 driven by our effective sales and marketing strategy to raise ASP ➢ Optimistic outlook for further ASP growth in 2022 benefitting from tariff increase of major Chinese ports 4Q2021 Revenue (US$ million) FY2021 Revenue (US$ milli
Slide 9: Strong Gross Profit Growth with Further Margin Enhancement
Strong Gross Profit Growth with Further Margin Enhancement ➢ Greater bargaining power to increase revenue and effective cost control measures, leading to higher profit and margin expansion, particularly terminals in overseas region 4Q2021 Gross Profit (US$ million) FY2021 Gross Profit (US$ million)
Slide 10: Continued Terminal Profitability Enhancement
Continued Terminal Profitability Enhancement ➢ Benefiting from strong relationships with shipping companies to strengthen our sales and marketing strategy, meanwhile, cost reduction plan to enhance efficiency, terminal profit in 4Q21 and FY21 grew 32.0% and 38.1% YoY, respectively ➢ The portfolio ha
Slide 11: Solid Financial Position to Support Further M&A Projects
Solid Financial Position to Support Further M&A Projects ➢ As of 31 December 2021, our cash position maintained strong with cash and cash equivalents of USD 1.23 billion ➢ Net gearing ratio remained at a healthy level of 28.2% with average bank borrowing cost 2.92% ➢ Expected Capex in 2022 will be U
Slide 12: Agenda
Agenda 1 Key Highlights 2 Financial Performance 3 Operational Review 4 Strategy & Outlook 5 Appendix
Slide 13: Total Throughput Continued to Grow
Total Throughput Continued to Grow 4Q2021 Total Throughput (’000 TEU) FY2021 Total Throughput (’000 TEU) 129,286 32,728 32,855 123,825 Bohai Rim 30.6% Yangtze River Delta 33.1% 31.9% 33.8% S.E. Coast & Others 12.3% 11.7% 11.9% 11.9% 4.4% 4.8% Pearl River Delta 4.8% 4.4% 23.7% 23.7% 22.5% 22.3% S.W.
Slide 14: Equity Throughput Grew 3.7% YoY in 2021
Equity Throughput Grew 3.7% YoY in 2021 4Q2021 Equity Throughput (’000 TEU) FY2021 Equity Throughput (’000 TEU) 39,874 10,105 10,089 38,456 -0.2% YoY Bohai Rim 23.7% 22.8% 22.8% 23.9% Yangtze River Delta 10.4% 10.7% 10.6% 11.3% S.E. Coast & Others 8.2% 8.8% 8.4% 8.7% Pearl River Delta 22.0% 21.9% 21
Slide 15: Further Enhancing Synergy with Ocean Alliance
Further Enhancing Synergy with Ocean Alliance 4Q2021 Customers as A Percentage of Total Throughput (1) FY2021 Customers as A Percentage of Total Throughput (1) COSCO SHIPPING Lines OOCL Evergreen + CMA COSCO SHIPPING Lines OOCL Evergreen + CMA OCEAN Alliance 2M + THE Alliance Others OCEAN Alliance 2
Slide 16: Optimizing Terminal Assets Portfolio
Optimizing Terminal Assets Portfolio ➢ Future M&A opportunities in the regions of Southeast Asia, the Middle East, Africa and South America ➢ To target Hurdle rate at least low double-digit equity IRR ➢ Strategically pursue investment opportunities to create value to our shareholders Recent Acquisit
Slide 17: Continuing to Strengthen CSP Zeebrugge Terminal as Hub Port
Continuing to Strengthen CSP Zeebrugge Terminal as the Hub Port in Northwest Europe with Concession Extension to 2055 ➢ CSPL holds 85.45% stake in the Terminal. With more than 1200-meter quay length and 17.5-meter depth alongside, It has 3 berths with 1.3 million TEU target designed annual handling
Slide 18: Accelerating Development of Value-Added Projects to Create New Sources of Growth
Accelerating Development of Value-Added Projects to Create New Sources of Growth Accelerate supply ◼ Develop the supply chain business and accelerate the CSP Abu Dhabi CFS Phase 1 chain business to construction of the extended supply chain platform create new sources of profit ◼ Build up logistics n
Slide 19: Technology Development to Facilitate Lean Operations
Technology Development to Facilitate Lean Operations ➢ Actively advocate 5G smart ports ➢ Demonstration port for 5G smart application, Xiamen Ocean Gate Terminal is actively carrying out research and development of driverless container truck system ➢ Rapidly enhance the construction of EAM system, i
Slide 20: Agenda
Agenda 1 Key Highlights 2 Financial Performance 3 Operational Review 4 Strategy & Outlook 5 Appendix
Slide 21: Global Terminal Network and Lean Operations
Global Terminal Network and Lean Operations Capitalize on ◼ Identifying potential projects and tapping into the markets such as Southeast Asia, the global economic growth Middle East and Africa, particularly in strategic subsidiaries and highly-profitable non- optimize terminal portfolio subsidiarie
Slide 22: Lean Operations — Enhance Revenue
Lean Operations — Enhance Revenue Published price change of TEU in Chinese port authorities (1) ➢ Terminals maintain good relationships with shipping companies. Apart from maximizing synergy with parent Original published price 2022 published price company and OOCL, we also cooperate with different
Slide 23: Outlook
Outlook Challenges Opportunities ➢ Global economic uncertainties due to continued COVID-19 ➢ Long term opportunities for overseas terminals development as well as for domestic ports consolidation ➢ Rising inflation ➢ Good prospect on the back of our effective lean operations ➢ Increasing geopolitica
Slide 24: SDGs of our Major Concern
SDGs of our Major Concern We align our major initiatives with the Sustainable Development Goals (SDGs) of the United Nations. By identifying five goals as the most important and most relevant to our operations, we have integrated them into five key areas of sustainable development. SDG 4 Quality Edu
Slide 25: Our Sustainability Approaches
Our Sustainability Approaches Approach 1: Caring for Our People Providing a healthy, safe, inclusive and diverse work environment to attract and cultivate talents for our sustained growth Approach 2: Customers First Investing in building “green ports”, minimising the environmental impacts of our ope
Slide 26: Sustaining High Standard of Governance
Sustaining High Standard of Governance Balanced and Diverse Board Composition ESG Committee in Place ✓ High level of independent representation on the ✓ Led by an Independent Non-executive Director, Board and comprised the Chairman of the Company and another Independent Non-executive ✓ Diversified s
Slide 27: Q & A Session Thank you!
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Slide 28: Agenda
Agenda 1 Key Highlights 2 Financial Performance 3 Operational Review 4 Strategy & Outlook 5 Appendix
Slide 29: Terminal Profit Breakdown
Terminal Profit Breakdown US$' 000 2020 % of total 2021 % of total YoY Bohai Rim 141,634 45.8% 141,011 33.0% -0.4% Qingdao Qianwan Terminal 52 0.0% 0 0.0% N/A QPI 105,749 34.2% 120,505 28.2% 14.0% Dalian Container Terminal 7,633 2.5% 5,694 1.3% -25.4% Dalian Dagang Terminal 123 0.0% 61 0.0% -50.4% T
Slide 30: Terminal Profit Breakdown (Cont'd)
Terminal Profit Breakdown (Cont’d) Pearl River Delta 90,877 29.4% 121,630 28.5% 33.8% Yantian International Terminal 48,070 15.5% 69,372 16.2% 44.3% Nansha Stevedoring Terminal 5,966 1.9% 6,652 1.6% 11.5% *Guangzhou Oceangate Terminal 19,065 6.2% 22,706 5.3% 19.1% COSCO-HIT Terminal 10,055 3.2% 12,7
Slide 31: Global Footprint and Future M&A Opportunities
Global Footprint and Future M&A Opportunities Key Overseas Annual Designed Terminals Capacity (TEU) PCT (1) 6,200,000 CSP Spain Group (1) 5,100,000 CSP Abu Dhabi (1) 2,500,000 CSP Zeebrugge (1) 1,300,000 Chancay (1) 1,000,000 RSGT 5,200,000 Suez Canal 5,000,000 COSCO-PSA 4,850,000 Antwerp 3,700,000
Slide 32: Lean Operations — Cost Control
Lean Operations — Cost Control Four measures to improve lean operations A series of cost control measures and cost control capabilities Innovatively set up ports operations management COE Actively promote and enhance automation in the Team terminal to improve efficiency and lower outsourcing cost Es
Slide 33: Incentive Scheme – Aligning Shareholders' Interests
Incentive Scheme – Aligning Shareholders’ Interests ◼ A total of about 53 million share options were granted to around 238 eligible employees under the share option scheme on 19 June 2018 ◼ Exercising criteria are in line with shareholders’ interests Batch No. of Percentage of Return on Growth Rate
Slide 34: Key and Ongoing Initiatives under our Sustainability Approaches
Key and Ongoing Initiatives under our Sustainability Approaches Approach 1 Approach 2 Approach 3 Approach 4 Approach 5 Caring for Our People Customers First Green Development Win-win Cooperation Investing in Communities 1. Elevating diversity and 1. Building 5G smart ports to deliver more reliable a
Slide 35: 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 36: Thank you!
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