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.

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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！

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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