Hyundai Merchant Marine Co., Ltd. Company overview November 2009 Hyundai Merchant Marine Co.,Ltd. 1
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.
Table of Contents Ⅰ. Company Overview 1. Business portfolio 2. Investment 3. Financial Statements Ⅱ. Performance Review (2009-1H) 3
Ⅰ. Company Overview 1. Business portfolio Diversified portfolio enable HMM to generate stable earnings. Revenue Breakdown (Based on FY2009 Q3 results) Transpacific service Asia-Europe service Intra-Asia service 66.6% Total Revenue $3,439 Mn 0.4% 13.0% Others Capesize Panamax Supramax 20.0% Crude Tanker Product Tanker Chemical Tanker LNG Carrier LPG Carrier 4
Ⅰ. Company Overview 1. Business portfolio With diversified operating fleet, our balanced revenue mix won t change in near term. (As of November 1st, 2009) Owned Chartered Total No. 1,000 Dwt Capacity No. 1,000 Dwt Capacity No. 1,000 Dwt Capacity Container* 22 1,642 133 39 2,254 184 61 3,897 317 Gas carrier** 7 519 925 5 292 446 12 811 1,371 Wet Bulk Crude tanker 10 2,706 15 3,441 25 6,147 Other tanker 2 101 13 630 15 731 Wet bulk total 19 3,326 33 4,363 52 7,689 Dedicated 10 1,492 0 0 10 1,492 Dry Bulk Dry Bulk 0 0 38 2,333 38 2,333 Dry bulk total 10 1,492 38 2,333 48 3,825 Total 51 6,461 110 13,313 161 15,411 * Container capacity : 1,000 TEU ** Gas carrier capacity : 1,000 CBM (Owned and Chartered over one year) 5
Ⅰ. Company Overview 2. Strategic investment 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 2009 2010 2011 Own Charter Own Charter Own Charter Container 6,300 TEU 4 1 8,600 TEU 4 VLCC 2 Tanker Chemical (20K) 3 MR (50K) 3 Capesize 1 3 2 1 Dry Bulk Panamax 1 Handymax 1 Handy 2 3 Total No. of new vessels 15 6 2 8 (Owned and chartered more than five years) 6
Ⅰ. Company Overview 2. Strategic investment 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 950K TEU 650K TEU 430K TEU Busan New Port 2-2 2,000K TEU Open in 2010 Massvlakte 2 - (Consortium) 4,400K TEU Open in 2013 7
Ⅰ. Company Overview 3. Summary financial statements Balance Sheet Income Statement (2009. 09. 30) (Unit KRW Mn) (2009. 01. 01 ~ 2009. 09. 30) (Unit KRW Mn) Classification Amount Classification Amount Total assets 8,301,751 Sales 4,545,184 Current assets 1,753,515 Cost of sales 4,933,534 Fixed assets 6,548,236 Gross profit -388,350 Total liabilities 5,967,742 Operating profit -483,575 Current liabilities 1,378,844 Pre-tax profit -713,395 Long-term liabilities 4,588,898 Net income -724,247 Total Stockholders' equity 2,334,009 Capital stock 765,366 Capital surplus 855,653 Retained earnings -188,934 Accumulated Other Comprehensive income 545,233 Capital Adjustments 356,691 Debt-to-Equity 255.7% Net Debt-to-Equity 187.0% Net D/E =(Interest bearing debt - Cash & Cash equivalents)/equity 8
Table of Contents Ⅰ. Company Overview Ⅱ. Performance Review (2009-Q3) 1. Overall 2. Container 3. Wet Bulk 4. Dry Bulk 9
Ⅱ. Performance Review 1. Overall Results Revenue Operating Profit & Margin Container Wet Bulk Dry Bulk 2009 Q1 2009 Q2 2009 Q3 1,693 213 1,433 1,420 17% 8% 361 166 212 1,113 292 256 968 945-8% -14% -18% -13% -6% -10% -19% -17% -24% -34% 2009 1Q 2009 2Q 2009 3Q (Unit : KRW Bn) Division 2009 1Q 2009 2Q 2009 3Q QoQ Container 1,113 968 945 2.3% Wet Bulk 361 292 256 12.3% Dry Bulk 213 166 212 27.7% HMM 1,693 1,433 1,420 0.9% (USD Mn) $1,180 $1,110 $1,149 3.5% Container Wet Bulk Dry Bulk HMM (Unit : KRW Bn) Division 2009 Q1 2009 Q2 2009 Q3 Container -88-133 -170 Wet Bulk 63 24-34 Dry Bulk -74-39 -40 HMM -95-147 -242 OP margin -5.6% -10.2% -17.1% 10
Ⅱ. Performance Review 2. Container Since 2 nd quarter, trade volume showed recovery. HMM s Volume Trade 729 588 176 676 212 224 663 207 528 621 187 668 205 QoQ Q3 YoY 9 Month 131 147 164 161 157 135 158 166 Transpacific 7.7% 12.9% 14.1% Asia-Europe 4.8% 1.0% 4.1% 282 318 341 295 235 276 297 Intra-Asia 9.8% 8.6% 10.3% Total 7.6% 8.4% 8.9% 2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4 HMM s Volume data, (Unit : 000 teu) 11
Ⅱ. Performance Review 2. Container We see market restoration trend through increase in freight rate and improvement in utilization ratio. HMM Freight Rate Trend 200 Transpacific E/B Asia Europe W/B Intra Asia W/B HMM Utilization Ratio 125% Transpacific E/B Asia Europe W/B Intra Asia W/B 150 100% 100 75% 50 50% Source: HMM data Source: HMM data 12
Ⅱ. Performance Review 3. Wet Bulk Tanker market was slow in Q3. Although long-term contracts generated profit, SPOT business was the loss maker. Composition of Wet Bulk Business WS(Left) and HMM Tanker Index(Right) (Unit : pt) WS (L) Tanker (R) (Unit : $/MT) 250 50 Crude Tanker 61% Total Revenue $ 688 Mn Gas carrier 27% Product Tanker 12% 200 150 100 50 0 40 30 20 10 0 Based on 2009 Q3 accumulated revenue (USD) Source: Clarkson YTD, HMM data 13
Ⅱ. Performance Review 4. Dry Bulk Still in red but operating loss was reduced by BDI increase in Q3. Composition of Dry Bulk Business BDI(Left) vs HMM Bulk Index(Right) (Unit : pt) BDI (L) Dry Bulk (R) (Unit : $/MT) 12,500 100 Capesize 26% 10,000 75 Supramax 51% Total Revenue $ 447 Mn 7,500 5,000 2,500 50 25 Panamax 23% 0 0 Based on 2009 Q3 accumulated revenue (USD) Source: Clarkson YTD, HMM data 14
Investor contact HMM Business Management Team (IR) Contact Sam Yoon +82-2-3706-5868 sangho.yoon@hmm21.com Ellie Jung +82-2-3706-5884 ellie.jung@hmm21.com Bex Jung +82-2-3706-5879 bex.jung@hmm21.com Suk-Won Kang +82-2-3706-5872 sukwon.kang@hmm21.com