Hyundai Merchant Marine Co., Ltd. Company overview

Transcription

1 Hyundai Merchant Marine Co., Ltd. Company overview May 21 Hyundai Merchant Marine Co.,Ltd. 1

2 Important Notice This presentation contains forward-looking statements, that are based on Hyundai Merchant Marine s current expectations, prospects, assumptions, market view and strategies. These statements are subject to risks and uncertainties as various factors may cause actual results to differ materially. We undertake no duty to update or revise any forward looking statements, whether as a results of new information, future events, or otherwise.

3 Table of Contents Ⅰ. Company Overview 1. Business Portfolio 2. Fleet Portfolio 3. Fleet Expansion Plan 4. HMM s Competitiveness 5. Overall Result Market Outlook Guidance Ⅱ. Divisional Data 3

4 1. Business Portfolio Historical Business Portfolio Historical Operating Profit Total Container Wet Bulk Dry Bulk (Unit : KRW Bn) Container Wet Bulk Dry Bulk Total (Unit : KRW Bn) 5,19 32% 15% 53% 5,541 4,644 3,945 12% 16% 73% 5,119 18% 18% 64% 4,846 4,734 5,92 16% 18% 66% 8,3 15% 15% 6,115 19% 13% 19% 66% 68% 13% 19% 1,755 2% 19% 61% Diversified portfolio enables HMM to generate stable earnings. Along with our major container and cash generating tanker business, we re seeking opportunities to expand the dry bulk segment. 4

5 2. Fleet Portfolio As HMM pursues balanced revenue mix, we will keep operating fleet diversified. (As of May 1st, 21) Owned Chartered Total No. 1, Dwt Capacity No. 1, Dwt Capacity No. 1, Dwt Capacity 6,TEU , , Container* 3,-6,TEU , ,TEU Container total 22 1, , , Gas carrier** ,371 Wet Bulk Crude tanker 9 2, , ,448 Other tanker Wet bulk total 17 2, , ,962 1,371 Capesize 1 1, ,329 Panamax Dry Bulk Supramax Handy Heavy Lift Dry bulk total 11 1, , ,142 Total 5 6, , ,819 * Contaner capacity : 1, TEU ** Gas carrier capacity : 1, CBM (Owned and Chartered over one year) 5

6 3. Fleet Expansion Plan We are currently pursuing for long-term charters under our investment strategy Consistent fleet acquisition program and Dispersion of capital against potential depression. Vessel Type Size Own Charter Own Charter Own Charter Container 6,35 TEU 1 12,5 TEU 5 Capesize Dry Bulk Panamax 1 Supramax Handy Total No. of new vessels (Owned and chartered more than two years) 6

7 4. HMM s Competitiveness Container Yield Management Wet Bulk Strategic Investment HMM NOL Hanjin MOL NYK (Unit : USD Mn / PT) 1. % 2 1. % 4.3 % 3.11 % 15 WS VLCC NB Price % -2. % % FY28 FY Q VLCC Delivery Strategically weight on Profitability. With advanced IT system, worldwide sales network makes yield management possible. Strong partner relationship, driven by premium service and customer satisfaction. Competitive fleet price is the biggest assets of HMM s Tanker business. Outstanding balance between SPOT and Longterm contracts allows stable profits. 7

8 5. Overall Results Revenue Container Wet Bulk Dry Bulk Operating Profit & Margin 29 Q1 21 Q1 29 Q % 17% 2% 7% -6% 2% -1% -12% -6% 1% -5% 1,118 1,71 1,82-35% 29 Q1 21 Q1 29 Q4 (Unit : KRW Bn) 29 Q1 21 Q1 29 Q4 YoY Container 1,118 1,71 1,82-4% Wet Bulk % Dry Bulk % Total 1,693 1,756 1,57 4% Container Wet Bulk Dry Bulk Total (Unit : KRW Bn) 29 Q1 21 Q1 29 Q4 Container Wet Bulk Dry Bulk Total OP Margin -5.7%.7% -5.2% 8

9 6. 21 Market Outlook Container Tanker Dry Bulk (Unit : M TEU) (Unit : M TEU) (Unit : MDWT) (Unit : MBD) (Unit : MDWT) (Unit : MDWT) , , ,22 2, , , (E) 21(E) 28 29(E) 21(E) 28 29(E) 21(E) Supply(L) Demand(R) Supply(L) Demand(R) Supply(L) Demand(R) Back on the right track Sound recovery Sustainable but volatile Source : Clarkson Shipping Intelligence / IEA / SSY. 1.44M TEU(11% of total capacity) idling capacity reported (Alphaliner Jan, 21) 9

10 7. 21 Guidance Profitability Stability Growth Freight Rate Recovery Secure COA Contracts Vessel Investment Cost Reduction Risk Management Develop New Business Recovery in 21 Classification (E) YoY Revenue (KRW bn) 6,115 7, % Operating Profit (KRW bn) Turn Black Volume (1, TEU) 2,511 3,5 21.5% CAPEX (KRW bn) % 1

11 Table of Contents Ⅰ. Company Overview Ⅱ. Divisional Data 1. Container 2. Wet Bulk 3. Dry Bulk 4. Summary Financial Statements 11

12 1. Container Revenue & OP Margin Capacity & Volume Growth Revenue OP Margin (Unit : KRW Bn) Volume Vessel (Unit : No. / 1, TEU) 7, 1% 3, 8 6, 5, 3.1% 4.3% 5% , % 2, 42 3, 2, 3,363 5,29 4,18-5% -1% 1, 2,366 2,657 2, , -11.1% -15% (Unit : KRW Bn) Revenue 3,363 5,29 4,18 Operating Profit OP Margin 3.1% 4.3% -11.1% (Unit : No. / 1, TEU) Volume 2,366 2,657 2,512 Vessel Capacity

13 1. Container Container market will back on the right track in 21. The surge in demand has been proved by high utilization ratio since Q4 29. The supply outlook remains uncertain due to idling capacity (1% of total capacity) and new vessel delivery. HMM will focus on both freight rate increase and cost reduction for recovery in 21. HMM Freight Rate Trend HMM Utilization Ratio HMM Volume Trade 125 TPS E/B AES W/B Intra Asia W/B TPS E/B AES W/B Intra Asia W/B TPS AES Intra Asia 11% % 9% 8% 7% 6% % Source: HMM data (Unit : 1, TEU) 13

14 1. Container Investment on terminals for premium services and cost reduction. MV2 WUT CUT Busan Kaohsiung Terminal Capacity Remarks California United Terminal (CUT) Washington United Terminal (WUT) Kaohsiung Terminal Busan New Port K TEU 65K TEU 43K TEU 2,K TEU Massvlakte 2 - (Consortium) 4,4K TEU Open in

15 2. Wet Bulk Revenue & OP Margin Capacity & Volume Growth Revenue OP Margin (Unit : KRW Bn) Volume Vessel (Unit : 1, Dwt) 1,6 2% 8, 8 1,4 7, 1,2 1, 13.7% 13.2% 15% 6, 5, ,495 1% 4, , % 5% 3, 2, 56,849 53,89 37, , % (Unit : KRW Bn) (Unit : No. / 1, Dwt) Revenue 925 1,495 1,186 Volume 56,849 53,89 37,7 Operating Profit Vessel OP Margin 13.7% 13.2% 5.8% Capacity 7,891 8,14 7,669 15

16 2. Wet Bulk Wet Bulk market seems to recover after a challenging 29. Increase in crude oil demand and S/H vessel phase outs could uphold recovery. However, excess supply will still remain as a task to challenge. HMM will keep optimal level of SPOT and COA/CVC proportion. SPOT vs. Fixed WS(Left) vs. HMM Tanker Index(Right) (Unit : pt) WS Tanker(R) (Unit : $/MT) 25 5 SPOT 32% 2 4 KRW 1,189 Bn Fixed 68% Source: 29 HMM wet bulk revenue Source: Clarkson YTD, HMM data 16

17 3. Dry Bulk Revenue & OP Margin Capacity & Volume Growth Revenue OP Margin (Unit : KRW Bn) Volume Vessel (Unit : 1, Dwt) 1,4 1,2 1.4% 13.3% 2% 15% 25, 8 1% 2, 1, 6 8 5% % 15, , % -1% 1, 32 22,215 18,822 2, % -15% -2% 5, 2-25% (Unit : KRW Bn) (Unit : 1, Dwt) Revenue 84 1, Volume 22,215 18,822 2,85 Operating Profit Vessel OP Margin 1.4% 13.3% -21.6% Capacity 3,4 3,342 3,782 17

18 3. Dry Bulk Dry Bulk market may become volatile in 21. Many swing factors are subject to change the market trend.(ex. China and Emerging markets.) HMM will pursue long-term cargo contracts for stable earnings. SPOT vs. Fixed BDI(Left) vs. HMM Bulk Index(Right) (Unit : pt) BDI(L) Dry Bulk(R) (Unit : $/MT) Fixed 24% 1, 7, KRW 798 Bn 5, 5 SPOT 76% 2,5 25 Source: 29 HMM dry bulk revenue Source: Clarkson YTD, HMM data 18

19 4. Summary Financial Statements Balance Sheet Income Statement ( ) (Unit KRW Mn) ( ~ ) (Unit KRW Mn) Classification Amount Classification Amount Total assets 8,381,15 Sales 1,755,574 Current assets 2,1,69 Cost of sales 1,73,255 (Cash & Cash equivalents) 1,215,459 Gross profit 52,319 Fixed assets 6,281,81 Operating profit 11,643 Total liabilities 6,381,174 Pre-tax profit -93,897 Current liabilities 1,55,486 Net income -93,897 Long-term liabilities 4,875,688 Total Stockholders' equity 1,999,976 Capital stock 765,366 Capital surplus 855,653 Retained earnings 18,72 Debt-to-Equity 319.6% Net Debt-to-Equity % Net D/E Accumulated Other Comprehensive income 473,899 =(Interest bearing debt - Cash & Cash equivalents)/equity Capital Adjustments -23,14 19

20 Investor Contact HMM Investor Relations Contact Sam Yoon Ellie Jung Bex Jung Suk-Won Kang