COSCO PACIFIC LIMITED Final Results. 9 April 2009

Transcription

1 COSCO PACIFIC LIMITED 2008 Final Results 9 April 2009

2 Chairman s s statement Press conference_2009_0409 P. 2

3 Global economic downturn triggered by the financial tsunami in 4Q2008 yoy change 23.5% -5.7pp -1.7pp 7.6% -3.4pp 12.0% -4.8pp 7.2% 13.0% -4.0pp 9.0% 17.8% 3.8% 2.1% 4.2% Global GDP Global Trade Global Containerized Trade China GDP China Imports & Exports Sources:Economist Intelligence Unit (March 2009) Drewry (4Q2008) China Customs Press conference_2009_0409 P. 3

4 Stable performance in 2008 Profit attributable to equity holders: USD 275m 2.5% Steady development of terminal business Total throughput: 45.88m TEUs 17.7% Strengthened its leading position as the fifth largest global container terminal operator Satisfactory performance of container leasing business Container fleet size expanded by 6.7% to 1.62m TEUs with utilization rate of 94.6% Ranked as the world s second largest container leasing company Press conference_2009_0409 P. 4

5 Dividend payout Proposed a final dividend of HK10.7 cents per share. Together with the interim dividend of HK27.4 cents per share, total full-year dividend for 2008 will be HK38.1 cents, down by 48.1% Adjust the dividend payout ratio to 40.0% (2007: 56.6%) and provide scrip dividend alternative so as to retain cash for the future business development. In addition to preserving cash, the scrip dividend alternative provides shareholders with an option to reinvest in COSCO Pacific. Press conference_2009_0409 P. 5

6 Four transformation strategy leads to a solid profitability of terminal division CONTROL: From an investment-based model to a control-based model by obtaining controlling stakes in new terminal investments GLOBALISE: From solely focusing on terminal investment in China to being a global player with the primarily focus on China DIVERSIFY: From investing solely in container terminals to a diversified terminal portfolio REVALUE: From profit-centric strategy to value-maximizing strategy Press conference_2009_0409 P. 6

7 A year with unprecedented challenges in 2009 The precipitous decline in trade activity is damaging the markets and industries During the first two months of 2009, China trade volume and China port throughput declined by 27.2% and 15.0% respectively Terminal and container leasing industries are in difficult situation which is highly likely to last for the full year of 2009 China plays an important role in stimulating the global economy and China GDP growth is expected to be about 8% To meet challenges ahead, we maintain our prudent financial policy with risk management playing an important part of our long term planning. Press conference_2009_0409 P. 7

8 Long range planning With the strong support from COSCO Group, China COSCO s shipping fleet and COSCO Pacific will fully leverage its business synergy so as to strengthen its core competence among our peer group s competitors. Further strengthen our cooperation with terminal business partners so as to overcome difficulties arising from the volatile markets and to make solid progress towards our long-term development targets. COSCO Pacific is confidential that our long range planning will steer it through the current financial storm and should be beneficial to its long term stability and lead to a solid profitability for our shareholders. Press conference_2009_0409 P. 8

9 Vice Chairman s s report Press conference_2009_0409 P. 9

10 Stable performance of core businesses in 2008 Turnover: USD 338m 13.1% Profit attributable to equity holders: USD 275m 2.5% Profit contribution* from four major businesses: USD 334m remained flat over 2007 Total assets: USD 4.21 billion 8.8% * The profit contribution excluded net interest expenses and net corporate expenses. Profit contribution USD YOY Terminals 128m Flat Container leasing 141m 19.5% Container manufacturing 39m 42.5% COSCO Logistics 25m 27.2% Total assets breakdown as at 31 Dec Divisional profit contribution breakdown Logistics 5.8% Container manufacturing 13.9% Others 11.7% Terminals 37.3% Container manufacturing 11.8% Logictics 7.5% Terminals 38.4% Container leasing 31.3% Container leasing 42.3% Press conference_2009_0409 P. 10

11 Expand the global terminal network Witnessed by President Hu Jintao of China and Prime Minister Kostas Karamanlis of Greece, Dr. Wei Jiafu, the President of COSCO Group, signed on behalf of COSCO Pacific a concession agreement of Piers 2 and 3 of Piraeus port on 25 November Pier 3 Construction: Build 1.1M TEUs by 2015 Pier 2 Upgrade: Expand capacity from existing 1.6M TEUs to 2.6M TEUs by 2014 Piraeus is the largest port in Greece. The total annual handling capacities of Piers 2 and 3 of Piraeus Port is expected to reach 3.7m TEUs before 2015 and it will become an important hub port in the Eastern Mediterranean region. Press conference_2009_0409 P. 11

12 Solid growth of terminal business COSCO Pacific s terminal portfolio includes 146 berths located at 19 ports in China and overseas, among which 124 berths in China and 22 berths at overseas. HPH APM Terminals PSA DP World Top 10 global container terminal operators 13.3% 12.1% 11.0% 8.7% Total number of operating berths: 89 Total throughput grew by 17.7% to 45.88m TEUs in 2008 Ranked as the fifth largest global container terminal operator with 5.5% COSCO 中遠太平洋 Pacific MSC Eurogate Evergreen SSA Marine HHLA 2.9% 2.7% 2.1% 1.6% 1.5% 5.5% market share. Source:Drewry Shipping Consultants Limited (Sept 2008) Press conference_2009_0409 P. 12

13 Steady performance of terminals in China Number of operating berths in China: 79 Handled 41.15m TEUs in 2008 up 11.1% and represented 89.7% of COSCO Pacific s total throughput Bohai Rim Throughput: 17.10m TEUs 6.4% 37.3% of COSCO Pacific s total throughput Yantze River Delta Throughput: 9.5m TEUs 14.4% 20.7% of COSCO Pacific s total throughput Pearl River Delta and Southeast Coast Throughput: 14.55m TEUs 14.9% 31.7% of COSCO Pacific s total throughput Press conference_2009_0409 P. 13

14 Satisfactory performance of overseas terminals No. of overseas berths: 10 Handled 4.73m TEUs in 2008 up 143.2% and represented 10.3% of COSCO Pacific s total throughput. COSCO-PSA Terminal Throughput: 1.25m TEUs 49.6% Second new berth commenced operation Antwerp Terminal Throughput: 1.09m TEUs 37.8% Suez Canal Terminal Throughput: 2.39m TEUs 649.6% Commenced Phase II construction work Press conference_2009_0409 P. 14

15 Optimise the capital structure of container leasing business by asset light model Container fleet capacity: 1.62m TEUs Top 10 container leasing company in the world Ranked as the second largest container leasing company in the world with 13.6% of market share Raised USD 272m by Disposal of 13,509 TEUs of containers for USD 22m in March 2008 and provided container management services for the buyer Disposal of 118,094 TEUs of containers for USD 250m by sale-and-leaseback in Textainer Group COSCO 中遠太平洋 Pacific ( 佛羅倫 (Florens) ) Triton Container TAL International Seacastle Container GE SeaCo CAI UES International (HK) Gold Container Cronos Group 2,050,000 1,621,222 1,500,000 1,060, , , , , , ,000 July Source:World Cargo News, August 2008 Press conference_2009_0409 P. 15

16 Strengthen risk management and maintain a healthy financial position Monitor the potential impact of the global economy and market condition on our operational performance so as to implement a more flexible business strategy to meet challenges ahead Maintain a healthy financial position: Cash on hand: USD 429m Net debt to equity: 37.6% Interest coverage: 6.2 x Further strengthen the financial flexibility so as to meet challenges ahead and to provide a solid base for the long term business development Press conference_2009_0409 P. 16

17 Enhance corporate governance Received the Corporate Governance Asia Recognition Award from the Corporate Governance Asia magazine Recognized as one of the best companies in China in the Corporate Governance Award from The Asset magazine Awarded the Hong Kong Outstanding Enterprise by the Economic Digest (Hong Kong) magazine Attaching great importance in enhancing shareholder returns, the Company became a constituent of the Dow Jones Global Select Dividend Index, Dow Jones EPAC Select Dividend Index, and Dow Jones Asia/Pacific Select Dividend 30 Index in November Press conference_2009_0409 P. 17

18 Challenging economic and business outlook for 2009 The precipitous decline in trade activity across the globe is consequently damaging the shipping and port related industries. The terminal operators are facing relatively sharp market contraction of which is highly likely to last for the year of yoy change 2.1% -4.0pp 4.2% -7.7pp 7.2% -4.4pp 2.8% 9.0% -3.0pp 6.0% 17.8% -38.0pp -1.9% -3.5% -20.2% E E E E E Global GDP Global Trade Global Containerized Trade China GDP China Imports & Exports Sources:Economist Intelligence Unit (March 2009) Drewry (4Q2008) Press conference_2009_0409 P. 18

19 Confident in long range planning Under this challenging business environment, COSCO Pacific will maintain its continual development through a series of strategies in 2009, including strengthening operation management, prevention and management of risks, cost control and enhancement of efficiency. Take over Piraeus Container Terminal in Greece on 1 October As a top priority, we adhere to our prudent financial strategy to ensure the safety of our capital and assets. Press conference_2009_0409 P. 19

20 Bringing fruit to long term stability and profitability 2009 is expected to be a year full of challenges. Despite the complex and challenging economic environment, with the support from the parent company and the efforts by our outstanding team, COSCO Pacific will further strengthen the competitiveness of its core businesses, and deliver an even higher quality of services to its customers. We will continue to adhere to the principle of prudent business management. By implementing stringent measures to control risks and enhancement in management, COSCO Pacific will strengthen its sustainable core competence and continue to steadily develop its business despite the difficult economic environment. The sharp economic downturn has caused companies to cut back on costs and reduce inventories. However, once the efforts by governments around the world to stimulate the economy start to produce positive effects, demands for goods will increase and the global economy will start to recover. While it is difficult to predict when the economy will start to recover, COSCO Pacific has formulated its long term development plan and is accumulating momentum for the next development phase. Press conference_2009_0409 P. 20

21 2008 Final Results 9 April 2009