COSCO SHIPPING Holdings Co., Ltd.

Transcription

1 Stock Code: SH / 1919.HK 31 October 2017 COSCO SHIPPING Holdings Co., Ltd Q3 Results

2 Contents Financial Review Market & Business Review Material Events Market Outlook * The quarterly results were in accordance with Chinese Enterprise Accounting Standards and had not been audited. 1

3 Financial Review 2

4 Highlights a profit of 2.7 billion yuan during the reporting period Key Financials 2017 Q1-Q3 RMB(mn) 2016 Q1-Q3 RMB(mn) Revenue 67,599 50, Net profit attributable to equity holders of the listed Company Net profit attributable to equity holders of the listed Company, net of non-recurring 1 profit and loss YoY 2,736-9,177-1,110-6,819 - Net cash flows generated from operating activities 5, Equity attributable to the equity holders of the listed Company 2017/9/30 RMB(mn) 2016/12/31 RMB(mn) Change 21,069 18, Total Asset 132, , Net Debt 32,888 26, Net debt to total equity ratio (%) PPs 2017 Q1-Q3 RMB 2016 Q1-Q3 RMB Weighted average return on net assets (%) PPs Basic EPS The non-recurring profit in the third quarter of 2017 mainly included vessel replacement subsidy of RMB510 mn. YoY 3

5 Consolidated Income Statement 2017 Q1-Q Q1-Q3 RMB(mn) RMB(mn) YoY Revenues 1 67,599 50, Cost of services 2 61,774 52, Gross profit/(loss) 5,824-2,130 - Gross profit/(loss) margin (%) % +12.9PPs Selling expenses Administration expenses 3,199 2, Finance costs 1,310 1, Impairment loss on assets Investment income 2 3,394-1,362 - Other income Operating profit/loss(-) 4,567-7,913 - Add: Non-operating income Less: Non-operating expenses Total profit/loss(-) 5,398-8,151 - Less: Income tax expenses Net profit/loss(-) 4,567-8,538 - Net profit attributable to equity holders of the listed Company 2,736-9,177 - Net profit attributable to equity holders of the listed Company, net of non-recurring profit and loss 1,110-6,819 - Basic EPS Despite the effect of the disposal of COSCO Bulk Group Limited and Florens Container Holdings Limited during the same period of last year, the operating revenue from January to September 2017 increased by RMB billion or 38.52% as compared to the same period of last year. 2. Of which: the investment income of RMB2.150 billion was generated from the acquisition of additional 16.82% of the equity interests in Qingdao Port International by Shanghai China Shipping Terminal, a subsidiary of COSCO SHIPPING Ports, at a consideration of 20% of the equity interests in Qingdao Qianwan Container Terminal Limited plus cash during the Reporting Period. The investment income from associates and joint ventures as measured under the equity method during the Reporting Period amounted to RMB123.2 million, representing an increase of RMB205 million as compared to the same period of last year. 4

6 Consolidated Balance Sheet 2017/9/30 RMB(mn) 2016/12/31 RMB(mn) YoY RMB(mn) Current assets 45,728 45, Non-current assets 86,714 74, Total assets 132, , Current liabilities 42,854 33, Non-current liabilities 46,608 48, Total liabilities 89,462 82, Equity attributable to the equity holders of the Company 21,069 18, Total equity 42,981 37, Total borrowings 64,447 58, minus: Cash and cash equivalents 31,559 32, Net debt 32,888 26, Net debt to total equity ratio(%) PPs 5

7 Consolidated Cash Flow Statement 人民币 ( 百万元 ) 2017 Q1-Q3 RMB(mn) 2016 Q1-Q3 RMB(mn) YoY Net cash (used in)/generated from operations 5, ,688 Net cash used in investing activities 1-10,683 6,227-16,911 Net cash generated from/(used in) financing activities 2 5,670-5,926 11,596 Net cash inflows in the year Net related exchange gain/(loss) ,377 Net increase in cash and cash equivalents ,004 Cash and cash equivalents as at 1 January 32,189 33,897-1,709 Cash and cash equivalents as at 30 September 31,559 34,272-2, (i) cash paid for purchase of fixed assets, intangible assets and other long-term assets was RMB8,241 million, of which expenses for purchase and construction of container vessels amounted to RMB5,997 million and expenses for purchase of containers were RMB1,445 million. (ii) cash paid for investment was RMB3,157 million, of which Shanghai China Shipping Terminal, a subsidiary of COSCO SHIPPING Ports, made a cash contribution of RMB2,600 million for additional purchase of shares in Qingdao Port International; COSCO SHIPPING Ports made a capital contribution of C= 7,052,000 for purchase of 40% share in APM Terminals Vado Holdings B.V. and provided a shareholder loan of 38,800,000 to APM Terminals Vado Holdings B.V.; COSCO SHIPPING Lines (Hong Kong) Co., Ltd., a subsidiary of COSCO SHIPPING Lines, made a capital contribution of US$38,000,000 for purchase of 24.5% equity interests in dry ports of Horgos, Kazakhstan. 2. (i) the net cash inflow from bank loans of RMB6,659 million. (ii) the cash receipt from investments of RMB681 million, of which Shanghai Pan Asia Shipping Co Ltd., a subsidiary of COSCO SHIPPING Lines, implemented capital increase and employee shareholding program in the 3rd quarter of 2017, Shanghai Fosun Industrial Investment Co., Ltd.(as the strategic investor) and Ningbo Hongyang Investment Management Partnership (LLP) (as the employee shareholding platform) invested RMB427 million and RMB251 million respectively to Shanghai Pan Asia Shipping Co. Ltd. (iii) cash paid for dividends, profits distribution and interest payment of RMB1,486 million. 6

8 Market & Business Review 7

9 maintaining a relatively slow and stable recovery 1500 CCFI (China Container Freight Index, since 2007/1/1) Historic Low: 632 (29th Apr, 2016) 300 Jan-2007 Jan-2008 Jan-2009 Jan-2010 Jan-2011 Jan-2012 Jan-2013 Jan-2014 Jan-2015 Jan-2016 Jan CCFI(since 2017/1/1) The fluctuation of container shipping market has the trend of moderation since the beginning of this year, while seeing a relatively slow and stable recovery YTD highest: 878 (3rd Feb, 2017) YTD lowest: 772 (20th Oct, 2017) Source: Shanghai Shipping Exchange 600 Jan-2017 Apr-2017 Jul-2017 Oct

10 better than the last third quarter but facing pressure During the first three quarters of 2017, CCFI was 20.2% higher year-on-year Q CCFI Avg.: Q CCFI Avg.: Q CCFI Avg.: Jan-2016 Apr-2016 Jul-2016 Oct-2016 Jan-2017 Apr-2017 Jul-2017 Oct-2017 Source: Shanghai Shipping Exchange 9

11 freight rate of trunk routes SCFI - Shanghai to Europe/Med. (USD/TEU) SCFI - Shanghai to USWC/USEC (USD/FEU) 欧洲 ( 基本港 ) 地中海 ( 基本港 ) 美西 ( 基本港 ) 美东 ( 基本港 ) Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Source: Shanghai Shipping Exchange 10

12 bunker price Bunker Price (SGP 380CST) Q1-Q USD211/ton Q1-Q USD315/ton (+49.2% YoY) Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 11

13 keeping an organic capacity growth Fleet capacity 1 as at 30 th Sep 2017 reached 358 vessels / 1,837,303 TEUs, representing a 11.4% growth as compared with the beginning of this year, with average fleet age of 8.9 years and average fleet capacity of 5,132 TEUs. COSCO SHIPPING Lines operating 1 owned chartered-in Combined ordered Combined order book Capacity (TEU) - 94,910 94, , ,308 15,000 Vessels Capacity (TEU) 201, , , , ,328 10,000 15,000 Vessels Capacity (TEU) 45, , , ,887 8,000-10,000 Vessels Capacity (TEU) - 26,767 26,767-26,767 6,000-8,000 Vessels Capacity (TEU) 178, , , ,462 4,000-6,000 Vessels Capacity (TEU) - 71,551 71,551-71,551 2,000-4,000 Vessels Capacity (TEU) 14, , , ,070 <2,000 Vessels Total Capacity (TEU) 440,498 1,396,805 1,837, ,070 2,348,373 Vessels Chartered-out capacity ( 7vessels/ 35,084 TEUs) not included Ships owned and chartered ratio(by TEU) 24% 76% 自有 Owned 租赁 Chartered-in 12 Owned capacity change in Q1-Q No. of Vessels Capacity Scrapped 1 5,446 Deliveries 5 50,936

14 global ranking by fleet capacity Top liner companies (existing capacity) (million TEU) Top liner companies (existing capacity + order book) (million TEU) APM Maersk APM Maersk MSC MSC CMA CGM CMA CGM COSCO SHIPPING Lines COSCO SHIPPING Lines Hapag Lloyd Hapag Lloyd Evergreen Evergreen OOCL OOCL Yang Ming Yang Ming Hamburg Süd Hamburg Süd NYK Line NYK Line MOL MOL PIL PIL Zim Zim Hyundai M.M Hyundai M.M K line K line 0.41 Three Japanese carriers declared the integration plan of their container shipping businesses on 31st Oct, 2016 Maersk announced the acquisition of Hamburg Süd on 1st December, 2016 COSCO SHIPPING Holdings have made a pre-conditional voluntary general offer to all shareholders of OOIL on the 7th of July 2017 Source: Alphaliner October 2017, Company data 13

15 container shipping liftings ( 000 TEU) Q1-Q Q1-Q YoY(%) Cargo Volume 15,491 11, China; 30.4% Breakdown by routes Transpacific; 14.7% Asia-Europe (including Med.); 19.2% Other international market (including Atlantic Ocean); 8.8% H 2016 年 1-9 月份 1H 年 1-9 月份 Intra-Asia (including Australia); 26.9% 5,000 4,707 4,500 4,164 4,000 3,500 3,000 2,500 2,281 2,593 2,975 3,221 3,465 2,000 1,749 1,500 1,365 1, Other international 跨太平洋亚欧 ( Asia-Europe 包括地中海 ) 亚洲区内 Intra-Asia ( 包括澳洲 (including Transpacific ) 其他国际 market ( 包括大西洋 (including ) 中国 China (including Med.) Australia) Atlantic Ocean) 14

16 revenue generated from routes China; 15% Breakdown by routes 1 RMB(million) Q1-Q Q1-Q YoY(%) Routes revenue 57,748 39, Other international market (including Atlantic Ocean); 11% Transpacific; 28% Intra-Asia (including Australia); 21% 22, H 2016 年 1-9 月份 H 2017 年 1-9 月份 Asia-Europe (including Med.); 25% 17,000 16,665 14,567 12,000 7,000 11,906 9,989 8,364 12,359 6,786 6,662 8,802 3,489 2,000-3,000-1,402-1,431 Other international 跨太平洋亚欧 ( Asia-Europe 包括地中海 ) 亚洲区内 Intra-Asia ((including Transpacific 包括澳洲 ) 其他国际 market ( 包括大西洋 (including ) 中国 China 航线之间内部交易抵消 Elimination (including Med.) Australia) Atlantic Ocean) 1. The diagram does not contain Elimination 15

17 unit income (RMB per TEU) Q1-Q Q1-Q YoY(%) Unit Income of international routes 4,671 4, Unit Income of domestic routes 1,870 1, Unit Income of all routes 3,728 3, H 2016 年 1-9 月份 H 2017 年 1-9 月份 8,000 7,000 6,807 7,307 6,000 5,000 4,896 4,972 4,000 3,000 3,852 2,597 2,968 4, % 2,000 1,923 1,870 1,000 - 跨太平洋亚欧 ( 包括地中海 ) 亚洲区内 ( 包括澳洲 ) 其他国际 Other ( international 包括大西洋 ) 中国 Transpacific Asia-Europe Intra-Asia (including market (including China (including Med.) Australia) Atlantic Ocean) 16

18 more stable throughput growth in Q3 Breakdown YoY Breakdown 16.8% 1.4% 000 TEU 000 TEU 13,568 9, % 1.5% The total terminal throughput 1 amounted to million TEUs during the first three quarters, representing an increase of 13.5% as compared to the same period of last year. 31.7% 18,114 20, % 海外西南沿海珠三角 东南沿海及其他 5.8% 3,311 3, % 长三角环渤海 24.2% 13,851 14, % 20.1% Bohai Rim +3.57% ,481 11, % 2016 年 1-9 月 2017 年 1-9 月 1. During January to September 2017, Shanghai China Shipping Terminal, a subsidiary of COSCO SHIPPING Ports, acquired additional 16.82% equity interests in Qingdao Port International, at a consideration of 20% equity interests in Qingdao Qianwan Container Terminal plus cash. In order to make the throughput data in the Reporting Period comparable to the same period of last year, the total throughput and non-controlled terminals throughput from January to September 2017 and during the same period of last year as set out in the above table did not contain the throughput of Qingdao Qianwan Container Terminal and Qingdao Port International. 17

19 Material Events 18

20 VSA progress The general cash offer to all shareholders of OOIL has received the approval of filing from SASAC and the approval from shareholders at the EGM of CSH. It has also cleared the US antitrust review. The offer is still subject to the satisfaction of certain pre-conditions, including the reviews by the Ministry of Commerce of the PRC and EU s antitrust regulator, as well as the approval of filing from the National Development and Reform Commission. 7 th July, 2017 jointly made a pre-conditional voluntary general cash offer to all shareholders of OOIL 28 th August, 2017 the approval of filing from SASAC received 16 th Oct, 2017 approved by shareholders at the EGM of CSH with over 99.9% affirmative voting rate 23 rd Oct, 2017 the US antitrust reviews cleared 19

21 A-share Private Placement Overview Placees Offering Price and Pricing Method Shares Offered No more than 10 placees including China COSCO SHIPPING Co. Ltd., all placees involved are required to meet the qualifications set by CSRC The benchmark pricing date is the first day of the issuance period The offering price is subject to the bidding process, while should not be lower than 90% of average trading price of A-share stocks for 20 consecutive trading days prior to the benchmark pricing date and the latest audited BPS upon issuance No more than 2,043,254,870 shares (representing 20% of the pre-money share capital) Funds Raised No more than RMB 12.9 billion COSCO SHIPPING Subscription Scale UoP Lock-up Period China COSCO SHIPPING pledges to subscribe 50% of new shares issued Payment for ship-building fees of existing orders The shares subscribed by China COSCO SHIPPING are not permitted to be transferred in 36 months upon completion of the private placement The shares subscribed by the other placees are not permitted to be transferred in 12 months upon the completion of this private placement 20

22 Market Outlook 21

23 supply and demand outlook 20.0% 15.0% 13.8% 13.2% 14.2% 10.0% 5.0% 0.0% 12.5% 5.8% 5.5% 9.1% 7.9% 8.3% 4.7% 6.0% 5.9% 6.3% 3.7% 5.1% 1.5% 8.6% 2.5% 1.7% 6.1% 4.1% 5.8% 4.8% -5.0% -8.2% -10.0% E 2018E Capacity 运力增长 growth(%) 13.8% 13.2% 5.5% 9.1% 7.9% 6.0% 5.9% 6.3% 8.6% 1.7% 4.1% 5.8% Throughput 吞吐量增长 growth(%) 12.5% 5.8% -8.2% 14.2% 8.3% 4.7% 3.7% 5.1% 1.5% 2.5% 6.1% 4.8% Fleet Projections ( 000 TEU) E 2018E 2019E Newbuild deliveries 940 1,246 1, Scrapped % 79% 83% 88% >10,000TEU 5,100-9,999TEU Capacity at year-end 20,324 21,148 22,364 22,664 <5,100TEU Growth rate, net 1.7% 4.3% 5.3% 0.1% 19% 5% 1% Source: Alphaliner, October % 16% 16% 12% E 2018E 2019E

24 To become a top-tier container shipping and port service provider Disclaimer This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of COSCO SHIPPING Holdings and certain plans and prospects of the management of COSCO SHIPPING Holdings. Thanks! Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual result or performance of COSCO SHIPPING Holdings to be materially different from any future results or performance expressed or implied by such forward looking statements. Such forward- looking statements are based on numerous assumptions regarding COSCO SHIPPING Holdings present and future business strategies and the political and economic environment in which COSCO SHIPPING Holdings will operate in the future. The representations, analysis and advice made by COSCO SHIPPING Holdings in this presentation shall not be construed as recommendations for buying or selling shares of COSCO SHIPPING Holdings. COSCO SHIPPING Holdings shall not be responsible for any action or non-action made according to the contents of this presentation. 23