Annual Results China COSCO Holdings Company Limited. 11 April 2006

Transcription

1 Annual Results 2005 China COSCO Holdings Company Limited 11 April 2006

2 Agenda Highlights Financial Review Operational Review Group Outlook 2

3 Highlights RMB million (Restated) Change (%) Turnover 39,166 32, Gross profit 8,575 6, Profit before income tax 7,450 5, Net profit attributable to shareholders 5,451 4, Basic EPS(RMB) Dividend distribution: RMB 0.13 per share for the year of 2005, representing a pay-out ratio of 29.8% * * Based on the EPS of RMB for 2H of

4 Summary of Segment Results* RMB million 18% 15% 5,000 4,000 4,705 3,496 60% 3% 5% 14% 57% 16% 6% 6% 3,000 2,000 1,000 0 Container shipping Container terminals ,074 Container leasing Freight forwarding & shipping agency Others * Including share of profits less losses of jointly controlled entities and associated companies. 4

5 Financial Review 5

6 Summary Profit & Loss RMB million (Restated) Change (%) Turnover 39,166 32, Gross profit 8,575 6, Operating profit 7,055 5, Finance costs (868) (640) 35.7 Share of profit/loss JCE & Assoc. 1, Profit before tax 7,450 5, Income tax expenses (651) (285) Profit after tax 6,799 4, Net profit attributable to shareholders 5,451 4,

7 Summary Balance Sheet RMB million Restated Change (%) Non-current assets 38,598 32, Current assets 13,078 11, Current liabilities 12,509 17, Owner s equity 18,436 7, Minority interests 7,509 5, Non-current liabilities 13,222 13, Total assets 51,676 44,

8 Capital Structure Net Debt and Gearing Ratio RMB million As at 31 December 2005 RMB million 14,000 12,942 Short-term loans 2,123 12,000 Current portion of LTB. 2,197 10,000 8,542 Total current borrowings 4,320 8,000 *% 6,000 Long term borrowings 12, 369 4,000 *% Gross debt 16,689 2,000 Cash 8, Net debt 8,542 8

9 Cash Flow Statement RMB million Cash & Cash Equivalents -Beginning Cash Inflow (outflow) From Operating Activities Used in Investing Activities From Financing Activities Exchange Losses (gain) Cash & Cash Equivalents-Closing ,895 3,252 6,152 (7,615) 4,812 (96) 8, (Restated) 4, ,438 (5,722) 698 (14) 4,895 9

10 Capital Expenditure RMB million Purchase of containers 2,753 2,420 Purchase of container vessels 2,534 1,238 Investments in container terminals 730 2,843 Others 188 1,131 Total 6,205 7,632 10

11 Operational Review 11

12 Container Shipping Shipping Volume by Market 15% % 16% % 000 TEUs 6% 5% 1,600 1,400 1,200 1, , % 1, % 761 1, % 1,393 1,215 32% 20% 31% 25.1% % % Trans-pacific Asia-Europe Intra-Asia Other International 12 PRC

13 Container Shipping Turnover by Market RMB million 20% 9% 4% 40% 19% 8% 5% 39% 16,000 14,000 12,000 10,000 8,000 10, % 12,527 7, % 9, % 27% 29% 6,000 5,353 5, % 4,000 2,000 2,271 2, % 1,147 1,481 0 Trans-pacific Asia-Europe Intra-Asia Other International 13 PRC

14 Container Shipping Cost of Services Cost Per TEU 18% 6,000 61% 21% 54% 28% 5,500 5,354 18% Vessel costs Voyage costs Equipment and cargo transportation Growth rate of both equipment and cargo transportation costs and vessel costs were lower than that of volume Voyage costs up 48.1%, driven by rising fuel costs Average unit cost down by 3.9% 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, % 5,

15 Container Shipping Operating Profit Operating profit achieved steady growth RMB m 6, % 15.0% 5, % 4,705 4,000 3, % 3,000 2,000 1,000 1, % 5.0% % Operating profit 15 Operating profit margin

16 Container Shipping Steady Capacity Growth Nominal capacity (TEU) Total capacity =322,414 TEU 82,937 26% 21,621 7% 133,725 41% Future Capacity Owned 187, , , ,995 Chartered Total 400, , Delivered Vessel , , ,203 84,131 26% Date of Delivery November,2005 February,2005 March,2005 Capacity (TEU) 8,204 5,816 5,816 Deployed market Asia-Europe June,2005 5, TEU 3001TEU 5000TEU 1000TEU 1001TEU 3000TEU May,2005 June,2005 August,2005 September,2005 December, ,702 2,741 2,741 2,702 2,702 Trans -Pacific Trans -Pacific Intra-Asia Intra-Asia Trans -Pacific 16

17 Container Shipping Trade Lanes and Alliance CKYH alliance Joint services Slot exchange We collaborate with CKYH members in operating a total of 32 trade lanes, 192 vessels with over 800,000 TEU We operate 17 joint service trade lanes, providing more than 36 vessels with over 100,000 TEUs capacity We have slot exchange and purchase with 20 companies, covering 37 trade lanes and feeder routes Trans-pacific Asia /Europe 22.8% 24.4% CKYH 6.3% 20.3% 22.1% 9.2% 14.5% 11.3% 16.5% 23.5% 15.8% 13.3% CKYH Grand New World Maersk Sealand Evergreen/Lloyld Others Source Drewry, Dec

18 Container Shipping Growth Strategies Explore new potential markets, such as West Africa, India, Caribbean area Strengthen the CKYH alliance to reduce cost and risk by optimizing our service structure, enlarging port coverage Build long-term cooperative relationships with strategic global customers. Further consolidate and develop global customer base Control cost through successful implementation of IT system. Maximize benefits of economies of scale and lower average fixed cost per TEU Stabilize freight rate in shipping markets via shipping association 18

19 Freight Forwarding and Shipping Agency Achieved high growth during the past 3 years RMB Million 10,000 8,000 CAGR=32.9% 8,203 RMB Million CAGR=41.0% 531 6,000 4,000 4,643 5, , Revenue Segment Results 19

20 Container Terminals Steadily Growing Volume THROUGHPUT ( 000 TEU) 2005 TEU y -o-y 2004 TEU PEARL RIVER DELTA COSCO-HIT 1, % 1,697 Yantian Int l Terminals (Ph I, II,III) 7, % 6,260 YANGTZE RIVER DELTA Shanghai Terminals 3, % 3,650 Shanghai Pudong Int l Terminals 2, % 2340 Zhangjiagang Win Hanverky % 328 Terminal Yangzhou Yuanyang Int l Port % 118 Najing Port Longtan Container Co. 179 N/A - BOHAI RIM Qingdao Qianwan Terminal (Phases I, II, III) 20 5, % 4,533 Qingdao Cosport Int l Terminals % 386 Dalian Port Container Co. 2, % 2,172 Dalian Port Terminal 133 N/A - Yingkou Terminal Tianjin Five Continents Terminal % N/A OVERSEAS COSCO-PSA Terminal % 572 Antwerp Terminal 70 N/A - Total throughput 26, % 22,449

21 Container Terminals Port Acquisitions in 2005 Further strengthened our container terminal network via organic growth and further investments in China Container terminal New terminals Joint venture company established 1. Nanjing Longtan Terminal Joint venture contract signed 2. Guangzhou Nansha Port Phase II 3. Yangshan Port Phase II Terminal 4. Suez Canal Terminal Letter of intent signed 5. Ningbo Jintang Island Terminal 6. Tianjin North Basin Port Terminal 7. Ningbo Beilun Terminal Phase IV 7# New berths acquired by existing joint ventures 8. Zhangjiagang Win Hanverky Terminal 17# 9. Dalian Dayaowan Phase II 13# - 16# 10.Yantian Terminal Phase II, III Equity interest 20% 59% 10% 20% 20% 30% 20% 51% 20% 4.45% - 5% Capacity (TEUs) 1,000,000 1,000,000 9,600,000 4,200,000 3,200,000 2,200,000 6,000,000 3,500,000 2,100, ,000 9,100, ,000 3,200,000 5,400,000 No. of berths

22 Container Terminals Sustainable Demand The rise of global container transportation volume will be driven by relatively balanced container trade growth and shipping industry capacity expansion. Container trade volume TEUs in million CAGR: 8.7% Shipping industry capacity TEUs in million CAGR: 8.8% Source: Drewry 22

23 Container Leasing Increasing in Market Share 5yr CAGR=14.3% Container fleet (TEU) 1,200,000 1,000, , , , % 610, % 707, % 808, % 919, % 1,042, % 9.0% 7.0% 5.0% 3.0% Market share 200, % % Container fleet(teu) Market share 23

24 Group Outlook 24

25 Group Outlook Conclusion Healthy world economy China to maintain strong economic growth Continuous expansion in shipping capacity High oil price put pressure on shipping cost Opportunities and challenges coexist 25

26 China COSCO An Integrated Container Shipping Services Provider 26

27 Appendix 27

28 Group business structure COSCO Group 63.5% China COSCO Holdings Other businesses 100% 52% COSCO Container Lines Container shipping Freight forwarding & shipping agency (COSFRE,COSA and overseas network companies) COSCO Pacific Terminal operations Container leasing (Florens) 28 Logistics Container manufacturing (COSCO Logistics) (CIMC) Bulk shipping Tankers Specialized carriers Other shipping related businesses Other businesses

29 Investment highlights II. Market leadership China No.1 Container shipping: World No.5 Terminal: World No.5 Container leasing: World No.3 Container manufacturing: World No.1 Logistics: China No.1 I. China story III. Integrated business model Rapid economic growth Favourable foreign trade Secular outsourcing trend China story Market leader Presence across the container value chain Risk-mitigating business mix Tangible synergies Unique position Integrated model VI. Our unique position Strong parent Blue-chip subsidiary Experienced management High quality services Extensive coverage IV. Extensive coverage Unrivalled PRC network Extensive international network V. High quality services Well-recognized brand Reliable and differentiated services IT and e-commerce 29

30 I. China story Container shipping sector in China benefits from rapid economic growth and favorable foreign trade environment Rapidly growing GDP Favorable foreign trade environment 50 World GDP World trade China GDP 45 Import and Export Export Import Source: IMF Source: IMF 30

31 II. Market leadership Prominent market leader across all of our businesses Container Shipping Terminals World No. 5 Leading member of the largest global alliance Global trade lane network World No. 5 Unparalleled terminal portfolio in China Global liner customer base Container leasing World No. 3 High quality customers and well-established brand Container manufacturing World No. 1 with over 50% market share Global customer base Logistics Topped the 100 PRC logistics companies list Well established market position 31

32 III. Integrated businesses model One-stop door-to-door service to maximize value to our clients, thus enhancing customer loyalty Container manufacturing Container leasing Supply chain Related activities Factory Outbound sales and customer service COSA; COSCO Logistics Truck/rail/barge/ logistics Warehouse/ depots Terminals COSFRE,COSCO Logistics, Overseas network, Inland river barge COSCO Pacific Ship Door to door COSCO Pacific Inbound sales and customer service Terminals COSCO Pacific COSCON COSCO Pacific COSA; COSCO Logistics Warehouse /depots China COSCO Holdings involvement via ownership, JV or long term contract/relationship Truck/rail/barge/ logistics COSFRE,COSCO Logistics, Overseas network, Inland river barge Retailers 32

33 IV. Extensive network Extensive trade lane and global network coverage Trans-Pacific Trans-Atlantic Asia-Europe Intra-Asia (inc Aus) Asia-Africa Asia-South America Major freight forwarding and shipping agency sales and service points COSCO Pacific container terminals Representative offices of Florens 33

34 V. High quality service High quality, innovative and differentiated services Selected large customers Reliability and punctuality 1st 1st All-time leader in reliability and punctuality Safe and Reliable Vessels awarded by Ministry of Communication of China Innovative services Real-time e-commerce platform The Grain Express High quality and fast delivery of grain Schedule enquiry Fleet data Cargo tracking The Electrical Appliances Express High quality and fast delivery of electronic products The Fashion Express notification Online quotation E-pickup High quality and fast delivery of textile products The Green Express service Sino-Japan transportation of refrigerated agricultural products Account statements Online printing of bills of lading Slot booking assistant 34

35 VI. Our unique status Leading SOE in China Strong relationships with Chinese corporates and the Government Well-known brand Parent is No. 2 shipping company worldwide The largest Chinese shipping Group Leader in all types of fleet in China Bulk-cargo shipping fleet Tankers Specialized fleet Blue-chip subsidiary COSCO Pacific Well recognized by the market since its listing in 1994 Corporate governance is widely praised by investors In June 2003, became a Hang Seng Index constituent Recent share price performance reflected investors confidence China COSCO will be COSCO s overseas platform and flagship 35