Hyundai Merchant Marine Co., Ltd. August 2010

Transcription

1 Hyundai Merchant Marine Co., Ltd. August 2010

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 Ⅱ. Performance Review 3

4 1. Business Portfolio Historical Business Portfolio Total Container Wet Bulk Dry Bulk (Unit : KRW Bn) Historical Operating Profit Container Wet Bulk Dry Bulk Total (Unit : KRW Bn) 5,541 5,190 32% 32% 15% 15% 8,003 5,119 5,092 19% 4,846 4,644 4,734 19% 13% 3,945 18% 16% 18% 16% 19% 12% 18% 18% 12% 18% 16% 18% 66% 16% 68% 53% 73% 64% 66% 66% 53% 73% 64% 66% ,137 15% 15% , 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 Aug 2010) Owned Chartered Total No. 1,000 Dwt Capacity No. 1,000 Dwt Capacity No. 1,000 Dwt Capacity 6,000TEU , , Container* 3,000-6,000TEU , ,000TEU Container total 22 1, , , Gas carrier** ,371 Wet Bulk Crude tanker 9 2, , ,448 Other tanker Wet bulk total 17 2, , ,914 1,371 Capesize 10 1, , ,744 Panamax Dry Bulk Supramax Handy Heavy Lift Dry bulk total 11 1, , ,697 Total 50 6, , ,398 * Contaner capacity : 1,000 TEU (Owned and Chartered over one year) ** Gas carrier capacity : 1,000 CBM 5

6 3. Fleet Expansion Plan HMM s investment strategy is based on Balanced fleet acquisition and Optimization in use of resource. Currently, we are seeking opportunity to expand fleet, especially dry bulkers, at attractive vessel price. Vessel ltype Size Own Charter Own Charter Own Charter Container 6,350 TEU 1 12,500 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 Focus on Profitability Outstanding Operating Profits Margin On time delivery High utilization ratio HMM NOL Hanjin MOL NYK 10% Reliability Customer relationship Optimize match back ratio Advanced IT Solution 5% 0% 4% 4.0% 3.2% 8% 0.2% 0.1% 5% 11% 10% Premium Brand Yield Management 15% 20% FY2008 FY H Strategically weight on Profitability. With advanced IT system, worldwide sales network makes yield management efficient. Strong partner relationship, driven by premium service and customer satisfaction. 7

8 4. HMM s Competitiveness Strategic Investment Wet Bulk Consecutively Positive Profit in Wet Bulk (Unit : USD Mn ) (VLCC) (OP Margin) Tanker OP margin WS (pt) % 200 VLCC NB Price % % VLCC Delivery % 30% H 50 0 (Source: Clarkson, HMM Data) Competitive fleet price is the biggest assets of HMM s Tanker business. Outstanding balance between SPOT and Long term contracts allows stable profits. 8

9 Table of Contents Ⅰ. Company Overview Ⅱ. Performance Review 1. Overall Result Guidance 3. Container 4. Wet Bulk 5. Dry Bulk 6. Summary Financial Statements 9

10 1. Overall Results Revenue Operating Profit & Margin Container Wet bulk Dry Bulk 2010 Q Q Q2 1, ,071 QoQ 16% 2, ,414 YoY 42% 1, % 2% 7% 8% 1% 10% 2% 13% 5% 24% 8% 10% 2010 Q Q Q2 Container Wet Bulk Dry Bulk Total (Unit : KRW Bn) 2010 Q Q Q2 YoY Container 1,071 1, % Wet Bulk % Dry Bulk % Total 1,756 2,041 1,433 39% (Unit : KRW Bn) 2010 Q Q Q2 Container Wet Bulk Dry Bulk Total OP Margin 0.7% 7.6% 10.2% 10

11 Guidance Profitability Stability Growth Freight Rate Recovery Secure COA Contracts Vessel Investment Cost Reduction Risk Management Develop New Business Recovery in 2010 Classification (E) YoY H Achieve Revenue (KRW bn) 6,115 7, % 3, % Operating Profit (KRW bn) Turn Black % Volume (1,000 TEU) 2,511 3, % 1, % CAPEX (KRW bn) % 11

12 3. Container HMM Freight Rate Trend Transpacific E/B Asia Europe W/B Intra Asia W/B Trade volume and freight rate increased in response to global economic recovery. TPS GRI (1 May) succeeded and early imposition of PSS was conducted. Cost rationalization led to reduction in cargo unit cost. HMM Utilization Ratio HMM Volume Trade 110% 100% 90% 80% 70% 60% 50% Transpacific E/B Asia Europe W/B Intra Asia W/B Transpacific Asia Europe Intra Asia Source: HMM data (Unit : 1,000 TEU) 12

13 3. Container Investment on terminals for premium services and cost reduction. MV2 WUT CUT Busan Kaohsiung Terminal Capacity Remarks California United Terminal (CUT) 950K TEU Washington United Terminal (WUT) 650K TEU Kaohsiung Terminal Busan New Port K TEU 2,000K TEU Massvlakte 2 - (Consortium) 4,400K TEU Open in

14 4. Wet Bulk WS remained firm in H supported by strong crude oil demand from Asia centering China, India etc. VLCC & LNG profitability underperformed due to dry docking. Product tanker &LPG market remained low. Revenue Mix Spot vs. Fixed Crude Tanker Product Tanker LNG LPG 5% 3% 3% FIXED SPOT 21% 26% 29% 12% 12% 11% 51.1% 30.7% 36.5% 62% 59% 58% 48.9% 69.3% 63.5% H Source: HMM Data H Source: H HMM Results 14

15 5. Dry Bulk 2Q BDI remained firm along with increase in raw material demand following global economic recovery. Strong BPI,BSI & Cost Restructuring led to improvement in the 2Q performance. Revenue Mix Spot vs. Fixed Capesize Panamax Suprmax Handy FIXED SPOT 10% 9% 5% 54% 39% 53% 75.2% 62.2% 67.4% 10% 19% 16% 27% 33% 27% 24.8% 37.8% 32.6% H Source: HMM Data H Source: H HMM Results 15

16 6. Summary Financial Statements Balance Sheet Income Statement ( ) (Unit KRW Mn) ( ~ ) (Unit KRW Mn) Classification i Amount Classification i Amount Total assets 8,576,127 Sales 3,796,800 Current assets 1,996,482 Cost of sales 3,555,081 (Cash & Cash equivalents) 882,228 Gross profit 241,719 Fixed assets 6,579,645 Operating profit 167,699 Total liabilities 6,434,893 Pre tax profit 91,544 Current liabilities 1,561,358 Net income 103,947 Long term liabilities 4,873,535 Total Stockholders' equity 2,141,234 Capital stock 765,366 Capital surplus 855,653 Retained earnings 305,915 Accumulated Other Comprehensive income 465,453 Debt to Equity 300.5% Net Debt to Equity 223.8% Net D/E =(Interest bearing debt Cash & Cash equivalents)/equity Capital Adjustments -251,

17 Investor Contact HMM Investor Relations Contact Sam Yoon sangho.yoon@hmm21.com Ellie Jung ellie.jung@hmm21.com Bex Jung bex.jung@hmm21.com Suk Won Kang sukwon.kang@hmm21.com