Cosco Shipping Ports Limited · HKEX:1199
Cosco Shipping Ports — 3Q 2017 Earnings Presentation
21 slides from Cosco Shipping Ports's earnings presentation, Oct 26, 2017
Slide 1: COSCO SHIPPING Ports Limited 3QFY17 Results
COSCO SHIPPING Ports Limited 3QFY17 Results 1
Slide 2: Content Page
CONTENT PAGE Corporate Overview Strategical Transformation 4 Strong synergies within the Group 5 The Ports for All 6 Gear up for bigger growth 7 Financial Performances Strong operating results in 3Q17 9 1-3Q 2017 Results Highlight 10 Equity throughput picking up 11 GP margin improved 12 Well-balance
Slide 3: Corporate Overview
Corporate Overview
Slide 4: Strategical Transformation
Strategical Transformation • Gears up for bigger growth • Restructuring • Global Terminal Operator Year 2017 - now • Diversification • Stronger parental An extensive network of support 188 berths (162 Year 2016 container berths, 23 bulk Changed company name berths, 3 automobile to COSCO SHIPPING ber
Slide 5: Strong Synergies within the Group
Strong Synergies within the Group • The No. 1 integrated shipping company in the world, a private China COSCO Shipping Corporation company, provides strong backup to Limited the companies within the COSCO Group 45.47% • With capacity of 1.82 million TEU, it COSCO SHIPPING Holdings Co. Ltd. Enjoying
Slide 6: Vision – The Ports For All
Vision – The Ports For All THE FIVE-YEAR PLAN • Strengthens our leading – By year 2021 position in the world • TOTAL ASSET +50% • Unlocks hidden • EQUITY THROUGHPUT +60% enterprise value • NET PROFIT +100% • Brings better returns to shareholders M&A + Management Efficiency + Organic Growth GLOBALIZA
Slide 7: Gear up for Bigger Growth
Gear up for Bigger Growth Annual designed Equity capacity Terminals Shareholding capacity (TEU) (TEU) Piraeus Terminal 6,200,000 100% 6,200,000 Noatum Terminal 5,100,000 51% 2,601,000 Antwerp Terminal 3,500,000 20% 700,000 Euromax Terminal 3,200,000 35% 1,120,000 Kumport Terminal 3,000,000 26% 780,0
Slide 8: Financial Performances
Financial Performances
Slide 9: Strong Operating Results in 3Q2017
Strong Operating Results in 3Q2017 US$ mn 3Q2017 YoY 3Q2016 Total container throughput (TEU)* 27.7mn + 14.6% 24.2mn • Driven by growth of international trade Equity container throughput (TEU)* 8.6mn +12.4% 7.7mn and increasing supports from Ocean *Included QQCT’s throughput in 3Q16 and QPI’s Allianc
Slide 10: 1-3Q2017 Results Highlights
1-3Q2017 Results Highlights US$ mn 1Q-3Q 2017 YoY 1Q-3Q 2016 Total container throughput (TEU)* 72.6mn + 3.3% 70.2mn • Driven by growth of international Equity container throughput (TEU)* trade and increasing supports from *Included QQCT’s 9-month throughput in 2016 and Ocean Alliance and parent comp
Slide 11: Equity Throughput picking up
Equity Throughput picking up 3 TEU mn 3Q2017* YoY %** % of total 3 3Q2016 Bohai Rim 2.3 +0.7 26.3 2.2 Pearl River Delta 2.2 +17.9 25.1 2 2.3 3Q2017 2.2 Yangtze River Delta 1.4 +11.8 16.4 TEU mn 1.8 1.8 2 1.4 Southeast Coast and 1.6 0.8 +18.9 9.1 others 1 1.1 Southwest Coast 0.1 +40.6 1.7 1 0.7 0.8 E
Slide 12: GP Margin improved
GP Margin improved US$ mn 3Q2017 YoY 3Q2016 • D&A of PCT increased 27.1% yoy in as its phase one of western part of berth 3 commenced operation in Sept 2016; D&A Depreciation & 24.0 -5.5% 25.4 of PCT made up of 23.4% of the total amortization • D&A of Guangzhou South China Terminal made up 26.7% of
Slide 13: Well-balanced Portfolio - Net profit analysis
Well-balanced Portfolio - Net profit analysis US$ mn 3Q2017 YoY% 3Q2016 1-3Q2017** YoY% 1-3Q2016** Net profit 67.2 53.0% 43.9 166.5 11.2% 149.8 Total terminal profits amounted to US$87.8mn Net profit by regions Other Top 10 profit contributors % of total Terminal profits Overseas 1.40% QPI * S.W Coa
Slide 14: Net Profits by Regions
Net Profits by Regions 30 US$ mn 3Q2017 YoY %* % of total 26.1 24.8 Bohai Rim** 26.1 +387.6 29.7 3Q2016 25 22.8 Pearl River Delta 24.8 +8.8 28.3 3Q2017 20 19.4 Yangtze River Delta 19.4 +31.9 22.1 Southeast Coast and 4.3 +72.9 4.9 US$ mn 14.7 others 15 12.5 Southwest Coast 0.7 +968.9% 0.7 10 9.0 Euro
Slide 15: 3Q throughput growth outperformed the market
3Q throughput growth outperformed the market Total Total throughout of Total throughout of the throughput COSCO SHIPPING Ports COSCO SHIPPING Ports the region region 000’TEU 3Q 3Q 3Q 3Q 1-3Q 1-3Q 1-3Q 1-3Q YoY % YoY % YoY % YoY % 2017 2016 2017 2016 2017 2016 2017 2016 Bohai Rim 8,901 +5.3% 8,451 16
Slide 16: Stay Focused - What we've achieved in 1-3Q2017
Stay Focused - What we’ve achieved in 1-3Q2017 PROJECTS GLOBALIZATION CONTROL SYNERGY QPI • Acquired 18.41% interests in QPI and disposal of 20% QQCT posted an increase of US$700mn in √ √ asset size and a full participation of the entire port Noatum Terminal • Acquisition of 51% equity interest in N
Slide 17: Capex Plan — Deploy Resources Prudently
Capex Plan — Deploy Resources Prudently • With the 5- year target set, the Group will deploy its resources carefully to bring better returns for shareholders • The Group will continue to strengthen its leading position in the Greater China region, extend its global footprint and market share, optimi
Slide 18: Financial Position remains healthy
Financial Position remains healthy US$mn As of 30 Sept 2017 YoY % As of 31 Dec 2016 Total debt 1,953 +29.9% 1,503 • Decrease in average cost of bank Average cost of debt % 3.19％ 3.37% borrowings Cash on hand 801 -4.3% 837 Net debt to equity 20.7% 14.0% • Gearing remained healthy after US$1,057mn CAP
Slide 19: Appendix: Equity throughput by region
Appendix: Equity throughput by region 000 TEU 3Q2016 % of total 3Q2017 % of total YoY Bohai Rim 2,246 29.3% 2,262 26.3% 0.7% QPI NA NA 854 9.9% NA QQCT 881 11.5% NA NA NA Dalian Port 160 2.1% 180 2.1% 12.3% Dalian International 367 4.8% 378 4.4% 2.9% Dalian Dagang 2 0.0% 2 0.0% 4.4% Tianjin Port Eur
Slide 20: 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 21: Thank you
Thank you