Hyundai Merchant Marine. 3Q 2017 Earnings Release

Transcription

1 Hyundai Merchant Marine 3Q 2017 Earnings Release

2 Disclaimer The financial information of Hyundai Merchant Marine contained herein have been duly made subject to K-IFRS(Korean International Financial Reporting Standards). The information contained in this material is for general purpose on matters of interest only, and it is Strictly prohibited to use, distribute and/or copy all or any part of the material without the prior consent of Hyundai Merchant Marine. The forecast includes, but is not limited to, projections and figures contained herein and is purely based on Hyundai Merchant Marine s current market forecast and its own analysis of business surroundings. Given the changing nature of the global economy, politics and/or other conditions, there may be delays, omissions or inaccuracies in information contained in this material. While we have made every attempt to ensure that the information contained herein has been obtained from reliable sources, Hyundai Merchant Marine is not responsible for any errors or omissions, or for the results obtained from the use of the information contained herein. Further, Hyundai Merchant Marine is in no way responsible for supplement or amend any information contained herein. 2

3 Table of Contents 1 3Q 2017 Review 2 Plans to Improve Competitiveness 3 Appendix 3

4 1 3Q 2017 Review 1.1. Profit and Loss 1.2. Financial Position 1.3. General Review 1.4. Performance Trend 4

5 1. 3Q 2017 Review_1. Profit and Loss [Consolidated] R e v e n u e * Item Total Container Bulk Others Fleet Capacity V o l u m e Unit \(Bn) (U$mn) \(Bn) (U$mn) \(Bn) (U$mn) \(Bn) (U$mn) 1,296 (1,145) 1,117 (987) 138 (122) 41 (36) 1,078 (961) 872 (778) 135 (120) 72 (64) 20.1% 28.2% 2.6% 1,242 (1,100) 1,085 (961) Exchange rate (KRW/USD) : 1,132.24(3Q 17)/ 1,121.37(3Q 16)/1,129.43(2Q 17) *Volume : Container transported volume (125) 16 (14) 4.3% 3.0% -2.2% TEU 429, , % 441, % Total TEU 1,048, , % 986, % Trans- Pacific TEU 395, , % 356, % Europe TEU 170, , % 167, % Asia TEU 424, , % 408, % Emerging Mkt Container Utilization Ratio Operating Income Fuel Cost Net Profit Total (Container) TEU 57,624 49, % 54, % % % % U$/MT % % \(Bn) (U$mn) \(Bn) (U$mn) \(Bn) (U$mn) 3Q (-27) -6 (-5) -60 (-53) 3Q (-205) -191 (-170) 297 (265) YoY \200bn \185bn - 2Q (-113) -94 (-83) -174 (-154) QoQ - \98bn \88bn \114bn 1. Revenue KRW 1,296bn (+20.1% YoY, +4.3% QoQ) Container % YoY Container + 3.0% QoQ Bulk + 2.6% YoY Bulk - 2.2% QoQ 2. Container transported volume 1,048,203 TEU (+41% YoY, +6.3% QoQ) Trans-Pacific +32.0% YoY Trans-Pacific +11.2% Asia +85.5% YoY Asia + 3.8% 3. Utilization Ratio +2.7% YoY, +0.3% QoQ 4. Operating Income KRW +200bn YoY, KRW +98bn QoQ Improvements are driven by increase in transported volume, freight rate increases in Europe route(+18%) and Asia route(+25%) compared to 3Q 16 Despite rise in fuel costs, operating loss is reduced as a result of continuous cost saving efforts. 5

6 1. 3Q 2017 Review_2. Financial Position Capital injection by issuance of perpetual CB & paid-in capital increase Liabilities reduced by repayment of long term borrowings [Consolidated, Unit : KRW Billion, %] Assets Liabilities Item 3Q Diff. Total 3,442 4, Current 1,206 1, Non Current 2,236 3, Total 2,806 3, Current Non Current 2,032 2, Equity Debt to Equity Ratio 441% 349% 1. Assets KRW 956bn (compared to the end of 16) Disposal of vessels and repayment of borrowings, etc. 2. Liabilities KRW 613bn (compared to the end of 16) Repayment of long term borrowings, etc. 3. Equity KRW 343bn (compared to the end of 16) Equity increased by paid-in capital increase(krw 104.3bn) and the issuance of perpetual convertible bonds(krw 600bn) Equity decreased due to operating loss(krw -289bn), vessel impairment loss(krw -480bn) and currency translation loss(krw-68bn), etc. 4. Debt to Equity Ratio(D/E Ratio) D/E ratio is expected to decrease from 441%(3Q 17) to 227%(estimated based on figures of 3Q 17) after the capital increase of KRW 600bn planned in Dec. 17 6

7 1. 3Q 2017 Review_ 3. General Review Boosting revenue & improving the cost structure Improving op. margin Raising capital Recovering fleet competitiveness 7

8 1. 3Q 2017 Review_ 4. Performance Trend Strong growth in container volume and revenue compared to 3Q 16 8

9 1. 3Q 2017 Review_ 4. Performance Trend (Sales] Container volume Strong volume growth in Asia route Container Freight Index 600, , , ,000 2,000 1, ,495 1,048,203 Unit : TEU 743, , , , , , , , , ,339 49,362 54,133 57,624 3Q Q Q 2017 Transpacific Europe Asia Emerging Mkt Qtly Volume Unit : Index, USD 2,336 2,357 2,006 1,409 1,349 1, Q Q Q 2017 Source : Shanghai Shipping Exchange USWC($/FEU) USEC($/FEU) Europe($/TEU) Mediterranean($/TEU) SCFI Index Container Op. Margin Gradual improvement % % -10.4% -15.9% % Unit : KRW 10bn, % Revenue Source : Hyundai Merchant Marine Q Q Q Q Q 2017 Op.Profit Op.Margin 9

10 1. 3Q 2017 Review_ 4. Performance Trend (Sales] Sales Portfolio Container portion increase 12.5% 6.7% 80.8% 11.4% 1.3% 87.3% 86.2% Container Bulk Others 3Q Q Q 2017 Sales Portfolio by route Asia portion increase 7.6% 1.1% 17.8% 26.0% 47.5% 6.6% 1.8% 26.5% 21.7% 43.4% 6.9% 3.2% Transpacific 43.8% Europe 27.6% Asia 18.6% Emerg.Mkt 3Q Q Q 2017 Others Service Reliability On-time performance ranked Top 1 out of 18 carriers Unit : % Average (18 carriers) HMM Source : SeaIntel 20 0 April May June July August Ranking 10

11 1. 3Q 2017 Review_ 4. Performance Trend (Finance] Debt to Equity Ratio % % % 441% Q Q Q Q 2017 Unit : KRW 10bn, % 227%(Estimated) After Capital Increase(estimated) Equity Liabilities D/E Ratio Current Ratio Enhanced repayment capability % % 174% 156% Q Q Q Q %(Estimated) After Capital increase(estimated) Unit : KRW 10bn, % Current Asset Current Liabilities Current Ratio Total Borrowings to Total Assets % % 54.96% % Q Q Q Q %(Estimated) Unit : KRW 10bn, % Total Asset Total Borrowings Total borrowings to total assets After Capital increase(estimated) 11

12 2 Plans to Improve Competitiveness 2.1. Trend of Global Liner Business 2.2. Mid-long Term Strategies 12

13 2. Plans to Improve Competitiveness _ 1. Trend of Global Liner Business Maersk MSC COSCO+OOCL CMA CGM Hapag-Lloyd ONE(MOL+NYK+K Line) Evergreen Over 2M TEU Over 1M TEU Market-leading liners Global carriers with competitive fleet capacity Yang Ming HMM Under 1M TEU Market challengers focusing on certain markets 13

14 2. Plans to Improve Competitiveness _ 2. Mid-Long Term Strategies Improving business competitiveness by securing fine assets Gov t support for shipping industry Acquiring fine terminal assets Acquiring eco-friendly highly efficient mega-sized vessels Raising capital in advance Decision on paid-in capital increase (13 th Oct. 2017) Secure over KRW 600bn with 120M shares of common stock to invest on vessels & terminals Improve financial structure Preemptive fund raising requires Be reborn as a global leading liner by securing cost competitive vessels(over 1M TEU) Contribute to national port competitiveness Provide reliable transportation services to domestic importer and exporters Support domestic shipbuilder s competitiveness by letting them develop global leading eco-friendly and highly efficient shipbuilding technologies 14

15 2. Plans to Improve Competitiveness _ 2. Mid-Long Term Strategies Use of fund raised Establish mid-long term competitiveness by securing investment funds for vessels, terminals, etc. For vessels : KRW 200bn For terminals (USEC, Vietnam, Singapore, Busan, etc.) : KRW 200bn (Unless used until Q1 2018, the funds will be used as operating expenses) Prepare for borrowings due in 2018 & secure stable working capital Borrowings due in 2018 : KRW 129bn (Vessels : KRW 58.2bn / EQ : KRW 21.8bn / CB : KRW : 49bn) Fuel and charter costs : KRW 164.6bn (Q1 2018) (Fuel costs : KRW 76.7bn / Charter costs : KRW 87.9bn) Improve financial stability (Debt-equity ratio, current ratio, total borrowings to total assets) Repayment burdens will be eased and customer credibility also be enhanced by improved financial structure) 15

16 3 Appendix 3.1. Effects of Paid-in Capital Increase 3.2. Fleet Portfolio 3.3. Borrowings 16

17 3. Appendix _ 1. Effects of Paid-in Capital Increase Before Capital Increase (as of the end of 3Q 2017) After Capital Increase (as of the end of 3Q 2017) Current Assets Current Ratio 156% Debt- Equity Ratio 233% KRW 0.6tn Current Liabilities 227% Current Ratio Available Funds KRW 1.21tn KRW 0.77tn Total Liabilities Debt-Equity Ratio 441% Establish a mid-long term foundation for growth by securing investment funds KRW 2.81tn Total Equity KRW 0.64tn Investment on vessels & terminals : KRW 0.4tn Borrowings due in 2018 : KRW 0.13tn Fuel & charter costs (Q1 2018) : KRW 0.16tn 17

18 3. Appendix _ 2. Fleet Portfolio (Unit : Container 1,000 TEU / Bulk 1,000 DWT / As of Sep. 30, 2017) Item Owned Vessels Chartered-in Vessels Total Units Capa. Units Capa. Units Capa. > 10,000TEU ,000-10,000TEU Containerships 4,000-8,000TEU < 4,000TEU Sub Total Crude tanker ,210 Tankers Other tanker Sub Total , ,462 Capesize , ,789 Panamax Dry Bulkers Supramax Handysize Heavy Lift Sub Total , ,958 Grand Total (Units)

19 3. Appendix _ 3. Borrowings Borrowings decreased by 22% to KRW 2tn from 2.56tn at the end of 2016 (Unit : KRW 100 Mil, %) Item Q 2016 Change Amount % Remark Short-term Borrowings Current Portion of Long-term Debt 1,298 1, % Long-term Borrowings 10,951 16,735-5,784-35% Bonds, CP 7,259 6, % Change by bond discount (the same principal) Financial Lease Liabilities % Total 20,041 25,553-5,512-22% 19

20 THANK YOU 20