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2016 Annual Results
COSCO SHIPPING Holdings Co., Ltd.
31 March 2017
Contents
1
Part 1
Part 2
Highlights
Financial Review
Part 3
Part 4
Market & Business Review
Market Outlook & Development
Strategy
COSCO SHIPPING Holdings Co., Ltd.
Part 1 Highlights
Quarterly Performance
2
2016 Annual Results
Business Restructuring
3
Key Financials 2016
RMB(mn)
20151
RMB(mn) YoY
Revenues 69,833 55,148 26.6%
Cost of services 70,383 51,425 36.9%
Gross loss(-)/profit -550 3,723 -114.8%
Gross loss(-)/profit margin -0.79% 6.75% -7.54 PPs
Operating loss(-)/profit -5,041 1,732 -
loss(-)/profit attributable to equity holders -9,906 469 -
Basic EPS(RMB) -0.97 0.05 -
Net cash flows generated from operating activities 1,520 7,118 -78.6%
2016/12/31
RMB(mn)
2015/12/31
RMB(mn) YoY
Equity attributable to the equity holders of the Company 18,323 28,560 -35.8%
Net debt 25,188 52,574 -52.1%
Total equity 37,549 53,171 -29.4%
Net debt to total equity ratio 67.08% 98.88% -31.8 PPs
1. The comparative information of FY2015 financial statements has been restated considering the disposal of the dry bulk shipping and the container leasing
businesses and the acquisition of entities whose parent company is China Shipping Group in FY2016.
Highlights – Overwhelming pressure in a tough market
Q1
RMB(mn)
Q2
RMB(mn)
Q3
RMB(mn)
Q4
RMB(mn)
Revenue 13,282 16,285 18,945 21,320
Net loss(-)/profit attributable to equity holders -4,484 -2,725 -2,011 -686
Net loss(-)/profit attributable to equity holders (excluding extraordinary items)
-2,144 -2,677 -1,998 -276
Net cash flows generated from operating activities -578 622 -626 2,102
4
Highlights – Results improved quarterly
Note: The quarterly results were in accordance with Chinese Enterprise Accounting Standards
13,282
16,285
18,945
21,320
-2,144 -2,677 -1,998
-276
-5,000
0
5,000
10,000
15,000
20,000
25,000
Q1 Q2 Q3 Q4
Revenue
Net loss attributable to equity holders
(excluding extraordinary items)
44.83% 100% 100%
5 5
Pre-restructuring
COSCO SHIPPING Lines COSCO SHIPPING Ports
(COSCO Pacific, 1199.HK)
China Shipping Group COSCO Group
CSCL
(2866.HK) CS Terminal
China COSCO
Holdings
COSCO
Pacific
FLORENS
(Container
Leasing)
51%
49%
Key transactions
1. China COSCO* to operate vessels and containers
leased from CSCL and acquire network assets
from CSCL
COSCO Container Lines and CSCL signed leasing
contracts of container ships and containers on 1
March 2016, representing the official business
integration of the two companies.
The acquisition of CSCL’s network assets: the
acquisition of 33 companies completed on 30
2.China COSCO* to sell dry bulk business to
COSCO Group
Completed on 15 March 2016
3.COSCO Pacific** to acquire port assets held by
China Shipping Group and CSCL
Completed on 18 March 2016
4. COSCO Pacific** to sell container leasing business
(Florens) to CSCL
Completed on 24 March 2016
COSCO
Container Lines
COSCO
Bulk
COSCO SHIPPING Holdings (A+H)
(601919.SH / 1919.HK)
46.72% 100%
1
2
3
4
Post-restructuring
COSCO Group
China COSCO SHIPPING
Corporation Limited
100%
45.47%
* China COSCO Holdings changed its company name to “COSCO SHIPPING Holdings Company Limited” on 4 Nov 2016.
** COSCO Pacific (1199.HK) changed its company name to “COSCO SHIPPING Ports Limited” on 22 Jul 2016.
***COSCO Container Lines changed the name to “COSCO SHIPPING Lines” in Nov 2016.
Transition from an integrated shipping conglomerate to a pure player in container shipping value chain
To become a world-class container shipping and port service provider with its continuing efforts to build up a
global network, provide customers with integrated solutions and create higher return for shareholders
New Strategic
Positioning
and Objectives
Highlights – Key transactions completed in 1Q 2016
COSCO SHIPPING Holdings Co., Ltd.
Part 2 Financial Review
6
Consolidated Income Statement
Segment Results
Consolidated Balance Sheet
Consolidated Cash Flow
7
2016
RMB(mn)
2015
RMB(mn) YoY
Revenues 69,833 55,148 26.6%
Cost of services -70,383 - 51,425 36.9%
Gross loss(-)/profit -550 3,723 -
Gross loss(-)/profit margin -0.79% 6.75% -7.54 PPs
Subsidy for vessel demolition 109 1,549 -93.0%
loss(-)/gain on disposal of vessels, net1 -1,038 -237 338.0%
Other expense(-)/income, net -470 1,461 -
Selling, administrative and general expenses2 -4,021 -3,452 16.5%
Operating loss(-)/profit -5,041 1,732 -
Finance income 500 802 -37.7%
Finance costs -1,913 -1,861 2.8%
Net related exchange loss(-)/profit3 -402 -487 -17.5%
Net finance costs -1,815 -1,546 17.4%
Share of loss(-)/profits of JCE & associates 1,400 1,556 -10.1%
loss(-)/Profit before income tax (EBT) -5,456 1,742 -
Income tax expenses -506 -531 -4.6%
loss(-)/profit from continuing operations -5,963 1,211 -
loss(-)/profit on disposals of subsidiaries4 -2,430 - -
loss(-)/profit from discontinued operations -3,139 997 -
loss(-)/Profit for the year -9,101 2,209 -
loss(-)/profit attributable to equity holders -9,906 469 -
Financial Review – Consolidated Income Statement
1. During the reporting period, the
Group disposed of 16 container
vessels, including: demolition of 14
vessels and sales of 2 vessels.
2. A significant reason for the
increase in the administrative
expenses as compared to the same
period of last year is a 41.9% increase
of the legal and professional fees
mainly in connection with the
restructuring incurred in 2016.
3. In 2016, narrowed exchange loss
was mainly because that the structure
of company’s bank deposits and loans
was adjusted to avoid exchange rate
risks.
4. Net loss on disposal of subsidiaries
was due to the disposal of COSCO
Bulk Group and Florens.
8
Segment Revenues
(from external customers)
2016
RMB(mn)
2015
RMB(mn) YoY
Continuing operations
Container shipping and related business 66,569 52,051 27.9%
Terminal and related business 3,762 3,495 7.6%
Discontinued operations
Dry bulk shipping and related business 1,117 9,008 -87.6%
Container leasing and related business 477 1,967 -75.7%
Segment loss(-)/profit 2016
RMB(mn)
2015
RMB(mn) YoY
Continuing operations
Container shipping and related business -6,142 782 -
Terminal and related business 1,495 1,451 3.0%
Discontinued operations
Dry bulk shipping and related business -556 1,214 -
Container leasing and related business 83 669 -87.7%
Financial Review – Segment Results
Container
shipping
and related
business;
93%
Terminal
and related
business;
5%
Dry bulk
shipping
and related
business;
1%
Container
leasing and
related
business;
1%
9
2016/12/31
RMB(mn)
2015/12/31
RMB(mn) Change
Non-current assets 74,290 113,850 -34.7%
Current assets 45,362 46,643 -2.7%
Total assets 119,653 160,493 -25.4%
Non-current liabilities 48,549 77,147 -37.1%
Current liabilities 33,555 30,175 11.2%
Total liabilities 82,104 107,322 -23.5%
Equity attributable to the equity holders of the Company 18,323 28,560 -35.8%
Total equity 37,549 53,171 -29.4%
Net current assets 11,807 16,468 -28.30%
Total borrowings 57,377 86,472 -33.6%
Cash and cash equivalents 32,189 33,897 -5.0%
Net debt 25,188 52,574 -52.1%
Net debt to total equity ratio 67.1% 98.9% -31.8 PPs
Financial Review – Consolidated Balance Sheet
10
1. Cash received from the disposals of COSCO Bulk and Florens in 2016 amounted to RMB9.5bn. Cash payment of RMB6.3bn was applied in the
purchase and construction of fixed assets, intangible assets and other long-term assets.
2. Cash payments related to financing activities made during the year amounted to RMB9.0bn, which were primarily cash payments made for the
acquisition of the relevant agency companies and terminal companies China Shipping Group and the acquisition of shares in COSCO SHIPPING Ports
from the secondary market to increase shareholding.
2016
RMB(mn)
2015
RMB(mn) Change
Net cash flows generated from operating activities 1,520 7,118 -5,598
Net cash flows generated from investing activities1 4,986 -6,703 11,689
Net cash flows generated from financing activities2 -9,498 -8,480 -1,018
Net cash inflows in the year -2,992 -8,066 5,074
Net related exchange gain/loss(-) 1,283 1,014 270
Net increase in cash and cash equivalents -1,709 -7,052 5,343
Add: Cash & cash equivalents-Beginning 33,897 40,949 -7,052
Cash & cash equivalents-Closing 32,189 33,897 -1,709
Financial Review – Consolidated Cash Flow
COSCO SHIPPING Holdings Co., Ltd.
Part 3 Market & Business Review
11
Market Review
Container Shipping and Related Business
Terminal and Related Business
0
200
400
600
800
1000
1200
1400
1600
Jan-2005 Jan-2006 Jan-2007 Jan-2008 Jan-2009 Jan-2010 Jan-2011 Jan-2012 Jan-2013 Jan-2014 Jan-2015 Jan-2016 Jan-2017
500
550
600
650
700
750
800
850
900
Jan-2016 Apr-2016 Jul-2016 Oct-2016 Jan-2017
Historic Low: 632
(29th Apr, 2016)
▲
CCFI (China Container Freight Index, from 2005/1/1)
Historic Low: 632.36
(29th Apr, 2016)
▲
12
Source: Shanghai Shipping Exchange
CCFI(from 2016/1/1)
CCFI steadily rose after hitting an all-time
low, but was still in relatively low level.
Market Review – Hit historic low in 2Q16
300
400
500
600
700
800
900
1000
1100
1200
Jan-2015 Apr-2015 Jul-2015 Oct-2015 Jan-2016 Apr-2016 Jul-2016 Oct-2016 Jan-2017
CCFI
In 2016, the average of CCFI was 711, decreased by 18.5%.
The average of CCFI in 4Q increased respectively by 2.7% YoY and 9.3% QoQ to 764.
13
2015
Average of CCFI: 872 2016
Average of CCFI:711
Source: Shanghai Shipping Exchange
Market Review – Rebounded from the bottom
0
1000
2000
3000
4000
5000
6000
Jan-2015 Jul-2015 Jan-2016 Jul-2016
美西(基本港) 美东(基本港)
0
200
400
600
800
1000
1200
1400
1600
Jan-2015 Jul-2015 Jan-2016 Jul-2016 Jan-2017
欧洲(基本港) 地中海(基本港)
Freight rate of trunk routes recovered from a extremely low point
SCFI - Shanghai to Europe/Med.(USD/TEU) SCFI - Shanghai to USWC/USEC(USD/FEU)
14
Source: Shanghai Shipping Exchange
Market Review – Freight rate of trunk routes
0
200
400
600
800
Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17
2014
USD563/ton
Bunker Price (SGP 380CST)
2016
USD232/ton
(-19.8% YoY)
2015
USD289/ton
15
Market Review – Bunker price remained low despite periodic recovery
16
2016.12.1
Maersk announced an
acquisition intention of
Hamburg Süd. After an
agreement signed on March 14,
2017, the due diligence and
closing of transaction expected
to be finalised in 2017.
2015.12
CMA-CGM announced the
acquisition of NOL, and
completed a full takeover
on September 2, 2016
2015.12
COSCO and China Shipping
announced the consolidation of
liner business which started since
March 2016, and finished at the
end of 2016
2014.12
CSAV and Hapag - Lloyd
completed the
consolidation
2016.8.31
Hanjin Shipping declared
bankruptcy reorganization
procedure and was officially
declared bankrupt on
February 17, 2017
2016.10.31
Three Japanese shipping
companies announced the
integration plan of their container
shipping business, which will be
operated on April 1, 2018
2016.6.30
Hapag - Lloyd and UASC
announced an agreement on
the merger, expected to start
the integration in 2017
Market Review – Business Consolidation
17
Reliable cooperation: On
April 1, 2017, the first 5-
years-phase of the cooperation
is launched. If parties agree,
five years after the expiry of
the agreement will continue
for another five years. All
routes, long term schedule and
commencement voyage have
already been released as
planned on website.
Global footprint: Ocean Alliance
provides 41 services covering Trans
Pacific, Europe, Middle East, Red
Sea and the Transatlantic. We offer
nearly 600 port pairs, more than
current 543 port pairs covered by
CKYE and O3 Alliance.
Capacity: an estimated 350
vessels, 3.5 million TEU capacity
with the average size of
10,051TEU, pouring new
momentum into global trade.
Swift delivery: The shortest
delivery time from
Shanghai respectively to
Djibouti(19Ds) ,
Dubai(17Ds), Abu
Dhabi(20Ds), and
Dammam(21Ds).
We Deliver Value: OCEAN
Alliance offers unmatched valuable
services with more convenient
options such as NEW direct services
from FE and SE.Asia to Piraeus in
Greece to provide customers with
more efficient, lower-cost and more
diversified experiences.
Customers First, always: Jointly
set up a Call Center, providing a
rapid response catering to customer
demand.
Business Review – OCEAN Alliance, ready to sail
18
2015 2016 2017
11-Dec-2015
Preparation
for business
integration
1-Mar-2016 Business integration started
Initial preparation for
business integration
Adhering to the general requirement of “quick and deep reform”, we made full efforts in
putting forward business consolidation, continuously deepening the reform of internal
systems and mechanisms, and continuously maintaining the advantages of scale and the
synergy effect.
Realization of more
synergies post business
integration and new
Alliance’s operation
Completion of integration
and new domain name
online lines.coscoshipping.com
1-Apr-2017
OCEAN Alliance
ready to sail
31-Oct-2016 IT system migration completed
All routes and boxes
shifted into IRIS2 system
Business Review – Highly efficient business integration
COSCO and CSCL signed a series of leasing contracts of container
ships and containers, representing the official integration of the two
companies’ liner business
20-Apr-2016
Signing of OCEAN
Alliance MOU
COSCO, CMA CGM, Evergreen and OOCL
signed a Memorandum of Understanding to
form a new alliance – OCEAN Alliance
1-May-2016 Completion of domestic integration
15-May-2016 IT system migration started
CSCL brands South East
Asia service transferred to
COSCO operating system
Jun-2016 IT system migration continues
Africa service, South America
East Coast service, and China
domestic service
Jul-2016 IT system migration continues
Transpacific & Asia
Europe services
Aug-2016 IT system migration continues
All other
services
33 overseas country agencies and 9
overseas regional headquarters merged
Oct-2016 Overseas integration
3-Nov-2016 Signing of OCEAN Alliance Day One Product
12-Apr-2016 Overseas network
integration
started
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC FEB DEC MAR APR JAN
Top liner companies after known restructuring 1(existing capacity + order book)
(million TEU) 0.00 1.00 2.00 3.00 4.00
PIL
Hyundai M.M.
Yang Ming
OOCL
Evergreen
Hapag‐Lloyd+UASC
NYK Line+MOL+K line
COSCO SHIPPING Lines
CMA CGM
MSC
APM‐Maersk+Hamburg Süd
14
15
12
13
11
8
6
9
7
3
1
5
2
4
Post-restructuring, COSCO SHIPPING Lines ranks the 4th globally.
Source: Alphaliner March 2017, Company data
10
19
Maersk announced the potential acquisition of Hamburg Süd
on 1st December, 2016
Three Japanese carriers declared the integration plan of
their container shipping businesses on 31st Oct, 2016
11
8
6
9
7
3
1
5
2
4
10
Hapag-Lloyd and UASC announced merger in June 2016
Top liner companies (existing capacity + order book)
(million TEU) 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00
PIL
K line
Hyundai M.M.
MOL
NYK Line
UASC
OOCL
Yang Ming
Hamburg Süd
Hapag‐Lloyd
Evergreen
COSCO SHIPPING Lines
CMA CGM
MSC
APM‐Maersk
1. Based on assumption that known restructuring intentions could acquire related authority approvals and finalize as planned.
Business Review – Strengthened market position
No. of Vessels TEUs
Scrapped 14 52,114
Deliveries 1 9,092
Owned capacity change in 2016
20
COSCO SHIPPING Lines operating
Combined CSH
ordered
CSD
ordered
Combined
order book owned chartered-in
Capacity (TEU) - 94,910 94,910 209,000 126,000 335,000
Above 15,000TEU Vessels - 5 5 11 6 17
Capacity (TEU) 187,416 331,600 519,016 72,500 108,000 180,500
10,000–15,000TEU Vessels 16 26 42 5 8 13
Capacity (TEU) 9,092 338,799 347,891 36,368 - 36,368
8,000–10,000TEU Vessels 1 38 39 4 - 4
Capacity (TEU) - 12,464 12,464 - - -
6,000–8,000TEU Vessels - 2 2 - - -
Capacity (TEU) 161,752 358,464 520,216 - - -
4,000–6,000TEU Vessels 35 75 110 - - -
Capacity (TEU) - 40,888 40,888 - - -
2,000–4,000TEU Vessels - 17 17 - - -
Capacity (TEU) 14,240 99,165 113,405 - - -
Below 2,000TEU Vessels 10 87 97 - - -
Total Capacity (TEU) 372,500 1,276,290 1,648,790 317,868 234,000 551,868
Vessels 62 250 312 20 14 34
Ships owned and chartered ratio(in TEU)
Fleet capacity1 as at 31st Dec 2016 reached 312 vessels /1,648,790 TEUs, representing 85.9% YoY growth, with lower
average fleet age (8.7 years).
23% 77%
自有 租赁 Owned Chartered-in
1. Chartered-out capacity ( 3 vessel/ 8,770 TEUs) is not included.
Business Review – optimized fleet structure
1,798 1,942
3,422
833
2,956
2,501
3,609
4,427
1,220
5,146
-
1,000
2,000
3,000
4,000
5,000
6,000
跨太平洋 亚欧(包括地中海) 亚洲区内(包括澳洲) 其他国际(包括大西洋) 中国
2015年 2016年
(’000 TEU) 2016 2015 YoY
Cargo Volume 16,903 10,950 +54.4%
Breakdown by routes
21
Transpacific;
14.8%
Asia-Europe
(including
Mediterranean);
21.3%
Intra-Asia
(including
Australia);
26.2%
Other
international
market
(including
Atlantic Ocean);
7.2%
China; 30.4%
Container Shipping Review – Cargo volume
Transpacific Asia-Europe
(including
Mediterranean)
Intra-Asia (including
Australia)
Other international
market (including
Atlantic Ocean)
China
2015 2016
15,452
9,499 9,679
2,960
6,425
-1,668
17,383
14,349
11,891
5,062
10,046
-2,091
-5,000
-
5,000
10,000
15,000
20,000
跨太平洋 亚欧(包括地中海) 亚洲区内(包括澳洲) 其他国际(包括大西洋) 中国 航线之间内部交易抵消
2015 2016
RMB(million) 2016 2015 YoY
Revenue from shipping routes
56,639 42,346 +33.8%
Breakdown by routes1
22
Transpacific;
30%
Asia-Europe
(including
Mediterranean);
24%
Intra-Asia
(including
Australia); 20%
Other
international
market
(including
Atlantic Ocean);
9%
China; 17%
1. The diagram does not contain Elimination
Container Shipping Review – Revenue
Transpacific
Asia-Europe
(including
Mediterranean)
Intra-Asia (including
Australia)
Other international
market (including
Atlantic Ocean)
China Elimination
8,594
4,892
2,829
3,555
1,536
6,950
3,976
2,686
4,150
1,581
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
跨太平洋 亚欧(包括地中海) 亚洲区内(包括澳洲) 其他国际(包括大西洋) 内贸干线
2015 2016
23
2016 2015 YoY
Unit Income of international routes (RMB per TEU)
4,141 4,702 -11.9%
Unit Income of international routes1 (USD per TEU) 624 755 -17.4%
Unit Income of domestic routes2 (RMB per TEU) 1,581 1,536 +2.9%
1. USD/RMB rate: 1:6.6406(2016); 1:6.2307(2015)
2. Excluding the income from barge operations.
Container Shipping Review – Unit income
Transpacific Asia-Europe
(including
Mediterranean)
Intra-Asia (including
Australia)
Other international
market (including
Atlantic Ocean)
Domestic routes2
2,087
3,624 3,874
697
840
-
1,000
2,000
3,000
4,000
5,000
24
Shipping routes cost
RMB(mn) 2016 2015 YoY
Equipment & Cargo Costs 35,274 23,420 50.6%
Voyage Costs 11,777 9,329 26.2%
Vessel Costs 14,203 9,668 46.9%
Total 61,253 42,417 44.4%
Shipping routes unit cost
RMB 2016 2015 YoY
Equipment & Cargo Costs 2,087 2,139 -2.4%
Voyage Costs 697 852 -18.2%
Vessel Costs 840 883 -4.8%
Total 3,624 3,874 -6.4%
2015 2016 Equipment &
Cargo Costs;
58%
Voyage Costs;
19%
Vessel Costs;
23%
Routes cost breakdown
Container Shipping Review – Decreased unit cost
Equipment &
Cargo Costs
Voyage
Costs
Vessel
Costs
Rotterdam
Khalifa
After restructuring, COSCO SHIPPING Ports operates 158 container berths in 30 ports around the world, with
the annual handling capacity of 97.25 million TEUs.
In terms of the total throughput, COSCO SHIPPING Ports accounted for 13% of the global market share,
ranking top of the world1 and by the equity throughput, ranking the 5th with 4.3% market share.
25
1. Calculating by related data from the review and
outlook report on global container operators in 2016
released by Drewry
Terminal Operating Review – More extensive network
26
Terminal Operating Review – Accelerated globalization process
2015 2016 2017
1月 2月 3月 4月 5月 6月 7月 8月 9月 10月 11月 12月 1月 2月
16-Sep-2015
Acquisition of
Kumport Terminal
(Turkey)
Smooth and efficient completion of the restructuring
Establishing " The Ports For ALL " development Philosophy and five - year strategy
Accelerating the implementation of the strategy and projects
10月 11月 12月 3月 4月
14-Dec-2016
New logo
released
19-Dec-2016
Signing co-management
agreement of Hong
Kong Kwai-tsing
Container Terminal
20-Jan-2017
COSCO SHIPPING Ports and
Qingdao Port announced to enter
into the Transaction Agreement and
Strategic Cooperation Agreement
18-Mar-2016
Acquisition of port assets
held by China Shipping
28-Mar-2016
Signing of a new
JV agreement
with PSA 11-May-2016
Acquisition of 35%
equity in EUROMAX
Terminal
Jul-2016
Change company name to
“COSCO SHIPPING Ports”
28-Sep-2016
Signing of concession
agreement of Khalifa Port
Container Terminal 2 (KPCT2)
12-Oct-2016
Acquisition of
40% equity of
Italy Vado
Terminals
27
Total throughput in 2016: 95.1 million TEU, +5.1% YoY
31,199 32,612
19,072 18,508
4,129 4,533
25,239 24,697
921 1,138
9,927 13,583
2015年 2016年
海外
西南沿海
珠三角
东南沿海及其他
长三角
环渤海
’000TEU
4.6%
21.1%
34.5%
1.0%
27.9%
11.0%
4.8%
19.5%
34.3%
1.2%
26.0%
14.3%
breakdown YoY breakdown
Terminal Operating Review – Total throughput
Overseas
S.W. Coast
Pearl River Delta
S.E. Coast
Yangtze River Delta
Bohai Rim
COSCO SHIPPING Holdings Co., Ltd.
Part 4 Market Outlook &
Development Strategy
28
Market Outlook
Container Shipping Development Strategy
Terminal Development Strategy
2016 2017E 2018E 2019E
13% 17% 13% 13%
19% 6%
68% 77%
87% 87% >10,000TEU
5,100-9,999TEU
<5,100TEU
It is expected that the overall business environment of container shipping market will be better than 2016, but the
industry is still facing pressure and uncertainties.
2016-19 Fleet Projections (’000 TEU)
2016 2017E 2018E 2019E
Newbuild deliveries 935 1,333 1,572 274
Scrapping 665 750 500 250
Capacity at year-end 20,273 20,861 21,931 21,955
Annual growth rate 1.6% 2.9% 5.1% 0.1%
Source: Alphaliner, March 2017
29
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E 2018E
运力增长(%) 13.8% 13.2% 5.5% 9.1% 7.9% 6.0% 5.8% 6.3% 8.6% 1.6% 2.9% 5.1%
吞吐量增长(%) 12.4% 5.9% -8.3% 14.2% 8.3% 4.8% 3.7% 5.1% 1.4% 1.8% 2.7% 3.5%
13.8% 13.2%
5.5%
9.1%
7.9%
6.0% 5.8% 6.3%
8.6%
1.6%
2.9%
5.1%
12.4%
5.9%
-8.3%
14.2%
8.3%
4.8% 3.7% 5.1%
1.4%
1.8%
2.7% 3.5%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
Market outlook – Recovering demand with increasing capacity
Capacity growth(%)
Throughput growth(%)
Low Cost
3
Accelerate to realize synergies
To strengthen cost control and explore in depth the potential synergy of the optimization of shipping route network layout,
container management, and supplier procurement.
Customer-
oriented
2 Enhance service capabilities and improve customer experience
To insist on being customer-centric, demand-oriented, reliant on global resources in providing customers with customized
services in order to meet their diversified demands
To strengthen the construction of marketing team, improve customer experience.
One-stop
transportation
capability
4 Further improve the capability to provide one-stop solutions to customers
To strengthen the capabilities in one-stop transportation solutions and the seamless articulation with highways and railways so
as to further enrich and improve the service model and provide customers with more choices and convenience
To create more intermodal transportation products, strengthen the status of Piraeus as hub port.
Globalization
1 Optimize the shipping routes and network allocation, to implement the globalization strategy
To establish a globalized network layout and an alliance operation system that adapt with the shipping capacity so as to
achieve the OCEAN Alliance’s service advantages in east-west trunk routes and provide new momentum for global trading.
To capture strategy opportunities, such as the “One Belt One Road” and “Yangtze River Economic Belt” to improve
performance in emerging market and third-country routes.
Focusing on the implementation of four core strategies to enhance the international
competitiveness and improve operating performance.
30
Container Shipping Development Strategy – Four core strategies
31
Globalization
1 Actively seeking terminal assets on a global basis that offer good intrinsic value and long-term returns, so as to develop a comprehensive, well-balanced global terminals network
We prioritise control, the capability of generating higher shareholder returns, as well as the value brought to our terminal network at large
Target locations: Europe, Central and Southern America, SE Asia, Africa
The pace of our globalisation has accelerated since 2016
Control
3
Increase the proportion of terminals with controlling stakes
Carry out equity investments in port groups strategically
Adopt a standardised management and information system for all terminals with controlling stakes
Synergies
2
Fully exploiting the dominance arising from COSCO SHIPPING Lines and seizing significant
market share within the OCEAN Alliance
Volume commitment from COSCO SHIPPING Lines and the OCEAN Alliance
Enhanced bargaining power in bidding for terminal projects
Terminal Development Strategy – Three new strategies
Focusing on three new strategies to unleash unique advantages
COSCO SHIPPING Holdings Co., Ltd.
Thanks!
32
33
This presentation contains certain forward-looking statements with respect to
the financial condition, results of operations and business of COSCO
SHIPPING Holdings and certain plans and prospects of the management of
COSCO SHIPPING Holdings.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual result or performance
of COSCO SHIPPING Holdings to be materially different from any future
results or performance expressed or implied by such forward looking
statements. Such forward- looking statements are based on numerous
assumptions regarding COSCO SHIPPING Holdings’ present and future
business strategies and the political and economic environment in which
COSCO SHIPPING Holdings will operate in the future.
The representations, analysis and advice made by COSCO SHIPPING Holdings
in this presentation shall not be construed as recommendations for buying or
selling shares of COSCO SHIPPING Holdings. COSCO SHIPPING Holdings
shall not be responsible for any action or non-action made according to the
contents of this presentation.
Disclaimer
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