May 2008 COMPANY OVERVIEW & UPDATE

Transcription

1 May 2008 COMPANY OVERVIEW & UPDATE

2 Important Notice Forward-looking statements and figures in this presentation are based on Hyundai Merchant Marine s current expectations and no assurances can be made for the accuracy of such expectations. Actual outcomes and results may differ materially from these expectations and assumptions due to changes in global, political, economic, business, competitive market, regulatory and other factors. We undertake no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or other factors. 2

3 Overview of HMM Hyundai Merchant Marine Co., Ltd. (HMM), established in 1976, has been listed on the Korea Stock Exchange since 1995 ( KS) HMM has a highly diversified revenue mix, comprised of containers, tankers, LNG carriers, iron ore/coal carriers, trampers, etc. HMM is a member of The New World Alliance (TNWA), other members include MOL of Japan and APL which is owned by NOL HMM Overseas Sales Network 1Q08 HMM Revenue Breakdown 4 Regional HQ Dry Bulk 16.9% Others 0.3% 28 Subsidiaries KRW 1,602 Bn Container Wet Bulk 61.5% 21.3% 73 Branch Offices 2 Overseas Offices 3

4 Revenue double digit growth 1Q08 revenue grew by 41.6% YoY to KRW 1,602 Billion from KRW 1,131 Billion Reasons for growth in revenue 1 Addition of container capacity 2 Robust container freight rates 3 Rebound of dry bulk rates 4 Stronger than expected tanker rates KRW Bn Revenue 2,000 Dry Bulk Wet Bulk Container 1,500 1, Q07 1Q08 1Q07 4

5 Operating profit almost tripled YoY 1Q08 Operating Profit grew by strong 198% YoY to KRW 172 Billion from KRW 58 Billion What caused the strong OP? 1 Unexpectedly strong WS 2 Robust BDI 3 Strong container freight rates and additional collection of bunker surcharge in TPS Operating Profit KRW Bn 200 Dry Bulk Wet Bulk Container Q07 1Q08 1Q07 5

6 Container HMM freight index (Jul 2002 = 100) Transpacific Asia-Europe Intra-Asia(1) Intra-Asia(2) TPS : Hong Kong L.A. 40 dry cargo Asia-Europe : Hong Kong North Continent Port 40 dry cargo Intra-Asia(1): Shanghai, China Dubai, UAE 40 dry cargo Intra-Asia(2) : Shanghai, China Nhavasheva, India 40 dry cargo 6

7 Container - volume continues to rise 1Q08 total volume 9.7% YoY to 587K Teu TPS volume 78%YoY 7.8% YoY, AsiaEurope Asia-Europe remained almost flat and Intra-Asia surged by 22.3% TPS westbound(us Asia) volume increased by strong 15.3% YoY Container capacity growth [Yr. end] HMM volume movement by routes ('000 Teu) K TEU Asia-Europe Intra Asia TPS % YoY (Accumulative) K TEU Q Q Q Q Q Q % YoY 162K TEU (Annual) 2007(A) % 2.37 Mn 2.94 Mn 2008(E) Asia Europe Intra Asia TPS 7

8 Terminals expanding Rotterdam MV2 TNWA, CMA-CGMCGM and DPW Consortium will operate Rotterdam Maasvlakte 2 The new terminal will open in 2013 Busan New Terminal Step 2-2 HMM will operate new Busan terminal Step Busan terminal operation will begin in 2009 Existing HMM Terminals Long Beach, USA / Tacoma, USA / Kaohsiung, Taiwan Rotterdam Maasvlakte 2 Terminal Site Rotterdam MV2 Source : Port of Rotterdam 8

9 Tanker Very strong rate continues + Tightness in VLCC supply due to conversion of SH VLCCs to other types + Preference in DH VLCCs thanks to SH VLCC regulation + Iran owners/ship owners holding VLCCs to push the rates up + Increase in long haul from strong crude imports by Chinese to prepare for Beijing Olympics + Greater speculative crude demand - Still heavy orderbook and new VLCC deliveries VLCC Worldscale & WTI VLCC deliveries 300 P 250 P WS(Left) WTI(Right) 241 $140 $ P 150 P 100 P 50 P $100 $80 $60 $40 $ P $ Source: Clarkson/Petronet Source: Clarkson 9

10 Dry bulk Rather sharp correction + Stalled iron-ore negotiation b/w Chinese steel mills and Australian iron-ore producers + More queue days in Australia and Brazil + Strong coal demand by India + Delays in delivery of bulk vessels by Chinese ship yards - Chinese government s pressure on reduction of iron-ore stockpiles in Chinese ports - Great new tonnage from SH VLCCs conversion to VLOCs Baltic Dry Index(BDI) 8,586 8,063 8,287 6,402 6,572 7,195 7,170 6,874 5,772 Source: Clarkson 10,426 10,543 9,854 10,844 (Mn DWT) Source: SSY Global Bulk Carrier Delivery Exist Cape Panamax Handymax Handy 10

11 HMM fleet profile (As of May 2008) Type Ownership Size No. of vessels Capacity Container Own >5,000 Teu 11 79,209 <5,000 Teu 7 32,560 Subtotal ,769 Charter >5,000 Teu 13 80,439 <5,000 Teu 18 51,507 Subtotal ,946 Container total (teu) ,715 Tanker Own VLCC 8 2,319,289 Others 3 205,462 Subtotal 11 2,524,751 Charter VLCC 12 3,454,077 Others 13 1,260,852 Subtotal 25 4,714,929 Tanker total (dwt) 36 7,239,680 LNGC Own 125,000~135,000 cbm 6 790,000 Charter 126,000 cbm 1 126,000 LNGC total(cbm) 7 916,000 LPGC Charter(dwt) 78, ,000 Chemical tanker Chater(dwt) 12,000~14, ,408 Dry bulk Own Cape size 10 1,593,484 Others 1 37,450 Subtotal t ,630,934 Charter Cape size 3 485,876 Others 23 1,132,238 Subtotal 26 1,618,114 Dry bulk total(dwt) 37 3,249,048 Total 136 *Owned and chartered over two years 11

12 New vessel delivery plan Type Size Delivery schedule Container 4700t 4,700 teu * 6,300 teu 1 * 3 * 1 * - 8,600 teu 4 4 * ,500 teu * Tanker Aframax (105k dwt) 2 * 1 * - - MR (50k dwt) - 3 * - - Chemical (20k dwt) - 2 * 1 * - LPG VLGC (58k) 3 * Dry Bulker Cape - 1 * 3 * 2 Panamax - 2 * - 1 * Handymax * 1 * Handy - 4 * 3 * 3 * Total no. of new vessels * denotes long term chartered ships 12

13 Healthy financial status Balance Sheet Income Statement ( ) (Unit : KRW Mn) ( ~ ) (Unit : KRW Mn) Classification Amount Classification Amount Total assets 6,298,091 Current assets 1,694,507 Fixed assets 4,603,584 Total liabilities 4,297,870 Current liabilities 1,239,769 Long-term liabilities 3,058,101 Total stockholders' equity 2,000,221 Sales 1,602,050 Cost of sales 1,398,142 Gross profit 203,903 Operating profit 172,834 Operating profit ratio 10.8% Pre-Tax Profit (4,536) Net income 72,126 Capital stock 765,366 Capital surplus 851,401 Retained earnings Accumulated other comprehensive income 551,147 (8,880) Debt-to-Equity t 214.9% Net Debt-to-Equity 133.6% Capital adjustments (158,813) Net D/E = (Interest bearing debt Cash & cash equivalents)/equity 13

14 Guidance for 2008 HMM estimates revenue of KRW 6,351 Bn for 2008 or 25% growth YoY On Operating Profit, KRW 387 Bn is estimated, which is 23% higher than 2007 About 2.94 Mn TEU of container boxes are targeted to be transported throughout the world in 2008, which is about 24% growth YoY (Unit : KRW Bn, USD Mn, Mn Teu) Classification 2007(A) 2008(E) Growth Revenue(KRW) 5,092 6, % Revenue(USD) , , % Operating Profit(KRW) % Container Volume % Assumptions : Yearly Average Forex : KRW915/USD Assumptions : Bunker Price : USD420/Metric Ton 14

15 Hyundai Group structure HD Securities (20.2%) HD Asan (36.9%) HD Logistics (47.2%) (18.9%) HD U&I (22.7%) Transorient Shipping (51.0%) Haeyoung Maritime (80.0%) 0%) HD Research Institute (35.3%) 15

16 Investor contact HMM Business Management Team Sam Yoon Kyung-Hyun Park gepkh@hmm21.com Danny Baek dannyb@hmm21.com Bex Jung goldpool@hmm21.com 16