We Maximize Your Value!

Transcription

1 Investor Relations 2009 We Maximize Your Value! Business Performance

2 Contents 1. About GLOVIS GLOVIS Overview Mid-long Term Strategy Growth Potential Q Business Result Summarized Result Sales Analysis SG&A Analysis Non-op Analysis 3. Appendix Summarized B/S Summarized I/S Investment Securities Shareholding Structure 1

3 1. About GLOVIS 1. About GLOVIS GLOVIS Overview Mid-long Term Strategy Growth Potential Q Business Result Summarized Result Sales Analysis SG&A Analysis Non-op Analysis 3. Appendix Summarized B/S Summarized I/S Investment Securities Shareholding Structure 2

4 GLOVIS Overview Sales, Plan by Business Division Competency As of Sept. 30, (P) Employee Korea Certified Professional Logisticians : 153 CPIM : 15, CPM : 3 Customs Broker : 4 Total Logistics Korea Company Certification of Integrated Logistics Comp ( 07) Korea RFID Industrialization Presidential Award Establishment of Logistics Research Institute Distribution Sales International CKD Merchandise , , , Network Korea Overseas 19 Logistics bases - for Cars : 12 (including CKD center) - for Used Car : 2 -for Steel : 5 18 Logistics bases - Subsidiary : 15 - Branch : 2 - Office : 1 Total 3, ,400.0 SCM Systemized throughout total logistics Overseas Subsidiaries IT System -itms(integrated Transportation System) -WMS (Warehouse Management System) -Goals (Glovis Overseas Advanced Logistics System) -Genisys(Glovis Extended Network Info System) - RFID system 3

5 Mid-long Term Strategy More than the best logistics company in Korea, Leap ahead to become a Logistics Company representing Asia Quickening Automotive Specialized Logistics Company Integrated Hyundai/Kia Motor s logistics Frameworked as a automotive specialized logistics company Entered into used car auction biz Preparing 성장준비기 Framework to Become Global Logistics Company Entered into Dis/Sales biz (CKD) - Alabama, Slovakia Certified as integrated total logistics company Established global network Certified with ISO environmental management system Expanding Growth from Business Expansion Entered into Finished car shipping biz (PCC biz) Expanded CKD business - Czech, Georgia (US) Expanded used car auction center Obtained international credit rating (1st one to obtain rating in Korean logistics industry) Awarded for RFID industrialization presidential award Globally Growing Logistics Company Representing Asia Expansion of PCC biz Hyundai Steel s raw material shipping for iron-making Expansion of CKD - Russia, Brazil Expansion of the 3PL (3rd party logistics) 4

6 Growth Potential 1. Finished Car Shipping Business (Pure Car Carrier) Finished Car Export (Korea) Unit : 10,000 cars Sales of Korean PCC companies , , , , Korean Cars Exported Hyundai Exported Kia Exported Source :KAMA (Korea Automobile Manufacturers Association), HKMC IR websites EUKOR STX Panocean GLOVIS Source : Public disclosure materials of each company Investment in Pure Car Carriers Unit : USD 1 MN Global PCC Market Based in yr 2008 Year # Size (CEU) Price Condition Company NYK Country Japan Fleet # 110 Shipping (cars) 573,660 M/S 17.5% ,200 CEU : 2 6,000 CEU : 1 6,000 CEU Bareboat Charter Hire Purchase (BBCHP) EUKOR Korea MOL Japan K-line Japan WWL Norway Hoegh Norway Others , , , , , , % 13.2% 11.9% 11.3% 8.0% 24.6% Total 642 3,284, % BBCHP : acquire the vessel after the bareboat charter contract expires Source : World Pure Car Carrier Fleet, Hesnes Shipping AS 5

7 Growth Potential 2. Hyundai Steel s Raw Material Shipping Business Blast Furnace Schedule ~ BF #1 Operation (P) China Canada Gov t Approval Site Preparation & Construction BF #2 Operation Production BF #3 2.8 MN ton 6.7 MN ton 8 MN ton 12 MN ton Brazil Source : Hyundai Steel Website Australia Iron Ore Coal Brazil, W. Australia Canada, E. Australia, China Raw Material Shipping Contract Lime Stone Korea, etc. 1st Contract 2nd Contract Shipping Companies Long-term Transporting Contract Long-term Chartering Contract Type Date Amount Period # of Vessels Public Disclosure Long-term Consecutive Voyage Charter Contract Jan. 24th, 2008 Nov. 3rd, 2008 USD 1,404 MN USD 1,015 MN 2010 ~ 2030 (for 20 yrs) ~ 2025 (for 15 yrs) ~ 2031 (for 20 yrs) 5 vessels 4 vessels(15-yr : 3 vessels, 20-yr : 1 vessel) Entering into Single Sales or Supply Contract (Jan / Nov. 2008) 6

8 Growth Potential 3. CKD Business Transacting Parties Unit : 10,000 cars GLOVIS CKD Business, % Region USA(HMMA) Production Cap 30 Production(P) % 40.5% 39.2% 39.2% Current Czech(HMMC) Slovakia(KMS) Russia Nov Jan % 1, ,333.7 New Brazil Turkey USA(KMMG) Apr Nov ,011.9 Production Status Unit : 10,000 cars CKD Sales % to Total Sales (P) Specialization of HAG s CKD business HyundaiㆍKia M I P parts Hyundai Mobis Modularized parts GLOVIS the Rest parts HMMA Production KMS Production HMMC Production 1.2 Expecting continuous growth in CKD business - Expansion of HyundaiㆍKia s global production HAG : Hyundai Automotive Group MIP : Made-in-Plant 7

9 Growth Potential 4. Used Car Business Used Car Market in Korea Unit : 10,000 cars, % GLOVIS Used Car Business Unit : 10,000 cars, % New Car Sales Used Car Trade % of Auction among Used Car 3.8% 5.0% 4.8% # of Used Car for Bidding M/S of GLOVIS in Used Car Market 2.7% 3.0% 3.2% % % Source : KAMA, GLOVIS Forecast (Accumulative) (Accumulative) Used Car Market in Japan New Car Sales Used Car Trade 56.4% % of Auction among Used Car 56.0% 51.0% 47.3% Source : GLOVIS (Interview with a Japanese Used Car Business Associate) Unit : 10,000 cars, % Business Operating - operate 2 auction centers (off-line, wholesale) - Bundang Center(Feb. 01 ~), Sihwa Center(Sept. 08 ~) Sales Structure - ordinary auction : bid fee + success fee - GLOVIS buying : bid price High Growth Potential - small auction M/S compared with Japan(56%) and USA(25%) - price competitiveness by open bidding, reducing distribution channel and cost 8

10 Q Business Result 1. About GLOVIS GLOVIS Overview Mid-long Term Strategy Growth Potential Q Business Result Summarized Result Sales Analysis SG&A Analysis Non-op Analysis 3. Appendix Summarized B/S Summarized I/S Investment Securities Shareholding Structure 9

11 Summarized Result, % Q Q YoY QoQ Sales Sales % 8.9% Operating Income % 4.9% (OP Margin) 4.0% 5.0% 4.8% - - 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 EBITDA % 1.4% Operating Income EBT % -44.6% Net Income % -35.7% Summarized Business Result 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 Increase in Sales Increase in Operating Income EBITDA Sales recovered to sales level of last year Sales with active participation in PCC biz Sales with the 2nd auction center open Sales increase in biz with higher OP margin - u-car biz portion, CKD biz portion Decrease in SG&A Expense - CKD transporting fee Q 08 4Q 08 1Q 09 2Q 09 3Q 09 10

12 Sales Analysis Sales Korea Logistics International Logistics Korea Logistics 2, % 2, % Q 08 4Q 08 1Q 09 2Q 09 3Q 09 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 International Logistics 28.0% 30.1% Sales recovered to sales level of last year - government s support policy to auto industry - new transporting Sales with active participation in PCC biz - successfully entered into the business CKD Merchandise CKD 41.1% 37.0% Merchandise 4.9% 6.1% Q 08 Accumulative 3Q 09 Accumulative 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 CKD sales recovery - reached above the last year s sales - offset by new procuring (to H. Czech) Sales with the 2nd auction center open - # of cars exhibited and succeeded in bidding 11

13 SG&A Expense Analysis Q Q YoY QoQ Major Items Freight Expense % -0.8% 24.6% 24.8% Salaries % 8.6% 3Q 08 Accumulative 3Q 09 Accumulative Others % -3.3% 21.2% 54.2% 26.5% 48.7% Total % 0.4% Freight Expense Salaries Others Ratio to Sales 3.4% 3.2% 2.9% Ratio to Sales Key Factors for Increase/Decrease 3.8% 3.6% 3.2% 3.4% Freight Expense - Transporting expense for CKD parts - Decrease in container freight charge % 24.8 Salaries Salaries : Salaries + Retirement Allowance + Employment Benefit - More employees due to business expansion 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 12

14 Non-operating Income/Expense Analysis Non-operating Income Quarterly Non-op In 3Q 08 3Q Interest Income F/X Gain Equity Method Gain Others 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 Non-operating Expense Quarterly Non-op Ex 3Q 08 3Q Interest Expense F/X Loss Equity Method Loss Others Q 08 4Q 08 1Q 09 2Q 09 3Q 09 13

15 3. Appendix 1. About GLOVIS GLOVIS Overview Mid-long Term Strategy Growth Potential Q Business Result Summarized Result Sales Analysis SG&A Analysis Non-op Analysis 3. Appendix Summarized B/S Summarized I/S Investment Securities Shareholding Structure 14

16 Summarized Balance Sheet Current Assets Cash & Cash Equivalent Non-current Assets Total Assets , ,367.7 Current Liabilities Non-current Liabilities Long-term Payables Total Liabilities Capital Stock Capital Surplus Accumulated Other Comprehensive Income Retained Earnings Total Stockholders Equity Debt-to-Equity Ratio 72.5% 78.9% 76.2% 71.1% 15

17 Summarized Income Statement Q J~S 08 J~S 09 Sales 1, , , , ,191.9 Cost of Goods & Services Sold 1, , , , ,010.6 Gross Profit SG&A Expense Operating Income Non-operating Income Non-operating Expense EBT Income Taxes Net Income EPS(KRW) 1,778 2,161 3, ,347 2,687 4,258 16

18 Investment Securities Equity Method Investment Available-for-Sale Securities ( 09 3Q Accumulative, ) () Company Stake(%) Sales Net Income Book Value Equity Method Gain Company Stake(%) Sales Book Value Remark Amco 24.96% Hyundai Mobis 0.67% 7, Merge with Hyundai Autonet Hyundai Food System 19.50% Haevichi Resort 5.00% GLOVIS America % Hyundai A&I 19.50% GLOVIS Slovakia % GLOVIS India % Beijing GLOVIS % GLOVIS Australia % GLOVIS Europe % GLOVIS Russia % GLOVIS Czech % GLOVIS Turkey %

19 Shareholding Structure Shareholders Freefloat As of Oct. 16, 2009 Haevichi Foundation Wilh. Wilhelmsen ASA 2.03% 15.03% Individuals Number of shares 2,209,844 Stake(%) 5.77% Chairman MK Chung 24.36% Total # shares 37,500,000 Freefloat 26.70% Institutions Mirae Asset National Pension 5,396,389 1,984,574 1,481, % 5.29% 3.95% Vice Chairman ES Chung 31.88% Foreigners Others Total freefloat 2,162, ,537 10,011, % 0.65% 26.70% Overseas Subsidiary Shareholding As of Oct. 16, 2009 GLOVIS Europe GLOVIS Russia GLOVIS Korea Invested Subsidiary GLOVIS Czech GLOVIS Slovakia GLOVIS Turkey GLOVIS India Beijing GLOVIS GLOVIS Hong Kong GAPS GUS 75% GLOVIS America GLOVIS Canada GUS GAPS Alabama GAPS GAPS Georgia GAPS GLOVIS Georgia GUS GLOVIS Alabama GUS GLOVIS America Invested Subsidiary GAPS Invested Subsidiary GLOVIS Australia 18