China Merchants Port : 2019 Annual Results Presentation for Media Press Conference

2019 Annual Results

15thApril, 2020

目錄

1.Performance Highlights

1. Business Analysis
2. Operation Overview
3. Outlook

5.Q&A

Performance Highlights - Profit & Lost

Items	2019	2018	Y-o-Y Change
Container throughput (million TEUs)	111.72	109.06	2.4%
Bulk cargo throughput (million Tonnes)	449	502	-10.5%
	HK$'million	HK$'million
Revenue	8,898	10,160	-12.4%
Revenue derived from ports operation	8,243	9,544	-13.6%
Profit attributable to equity holders of the Company	8,362	7,245	15.4%
Derived from ports operation	9,721	8,408	15.6%
Recurrent profit1	4,163	4,294	-3.1%
Derived from ports operation	5,594	5,716	-2.1%
Basic EPS (HK cents)	247.84	219.54	12.9%
Interim dividend per ordinary share (HK cents)	22.00	22.00	flat
Final dividend per ordinary share (HK cents)	58.00	73.00	-16.4%
Annual dividend per ordinary share (HK cents)	80.00	95.00	-15.8%

Note: 1. Profit attributable to equity holders of the Company net of non-recurrent gains after tax. Non-recurrent gains include: for 2019, change in fair value of financial assets and liabilities at fair value through profit or loss, change in fair value of investment properties, gain on deemed disposal of interest in a joint venture and gain on resumption of certain land parcels at Qianhai and Shantou; while for 2018, gain on disposal of subsidiaries, change in fair value of financial assets and liabilities at fair value through profit or loss and change in fair value of investment properties.

Performance Highlights - Financial Position

• Total assets increased by HKD9,145 million, mainly attributed to a gain on resumption of certain land parcels at Qianhai which was used for capital contribution to an associate during the year
  •Net gearing ratio decreased by 2.4ppts to 33.6% compared with 31 Dec 2018

Items	31 Dec 2019	31 Dec 2018	Change
	HK$'million	HK$'million
Total assets	149,082	139,937	6.5%
Net assets attributable to equity holders of	79,783	75,321	5.9%
the company
NAV per share (HK$)	23.13	22.62	2.3%
Interest-bearing debts2	39,416	38,856	1.4%
Cash and bank balances	7,800	7,175	8.7%
Net interest-bearing debts	31,616	31,681	-0.2%
Net gearing ratio3	33.6%	36.0%	Down by 2.4 ppts

Notes: 2. Interest-bearing debts include bank loans, listed notes and loans from China Merchants Group，and loan from a non-controlling equity holder of a subsidiary

3. Net gearing ratio is calculated as period-end net debt divided by period-end net assets

目錄

1.Performance Highlights

2.Business Analysis

-Container Handling Operation

3.Operation Overview

4.Outlook

5.Q&A

Business Analysis - Container Operation

• Total container throughput grew by 2.4% with the proportion of Mainland China increased by 1ppt.
• CMPort's container business in Mainland China grew by 3.6%, overseas grew by 0.9%

2019 Container Throughput

111.72m TEUs（+2.4%）

Overseas 19%

	20.84m TEUs	HK &
	Taiwan
Mainland	7.21m TEUs 6%
China
75%
83.67mTEUs

2018 Container Throughput

109.06m TEUs

Overseas 19%

20.66m TEUs	HK &
Taiwan
Mainland	7.67m TEUs 7%
China
74%
80.73mTEUs

Business Analysis - Greater China

• Performance in Greater China（Mainland, HK & Taiwan）was better off in 2H 2019 than 1H 2019
• Bohai Rim was the best performer with 8.9% y-o-y growth and 1ppt proportion expanded.

2019 Container Throughput

• Greater China 90.88mTEUs（+2.8%）

	Pearl
Bohai	River
Delta
Rim
19%	Others
25%

22.61mTEUs	17.17mTEUs	5%
4.50mTEUs
	Yangtze
	River
	Delta
	51%
46.59mTEUs

2018 Container Throughput

• Greater China 88.40m TEUs

Pearl

Bohai	River
Rim	Delta
24%	20%	Others
	18.00mTEUs
20.76mTEUs	5%

4.48mTEUs

Yangtze

River

Delta 51%

45.16mTEUs

Business Analysis - Pearl River Delta

• West SZ container volume decreased mainly due to the disposal of Shenzhen Chiwan
• CMPort HK outperformed overall HK port market

Container Throughput (million TEU)	2018
	2019
	0.1%
25.74	25.77

	4.6%		4.4%
10.06	9.60	10.69	10.21

SCCT (Int'l Container) CMPort - West SZ

Shenzhen Total

Container Throughput		2018
(million TEU)			2019
			6.6%
		19.60	18.30
	6.1%
5.93	5.57
CMPort - HK	HK Total

Business Analysis - Yangtze River Delta

• Continued to be the World's No.1 Port for the 10th year, SIPG rose by 3.1%
• Benefitted from the adjustment of certain shipping routes, Ningbo Daxie rose by 4.1%

Container Throughput

2018

(million TEU)	2019
	3.1%

42.01 43.30

SIPG

Container Throughput (million TEU)		2018
			2019
	4.5%
26.35	27.53
			4.1%
		3.16	3.29
Ningbo-Zhoushan Port	Ningbo Daxie
Zone

Business Analysis - Bohai Rim

• Tianjin project rose significantly due to the integration project of container terminals in Tianjin
• Driven by the growth of new international and domestic routes, Qingdao Qianwan rose by 14.3%
• Container throughput of Dalian Port (PDA) dropped by 8.0% due to business restructure

Business Analysis - Mainland Others & Taiwan

• Zhanjiang PG rose by 12.6% due to new shipping routes and sea-rail intermodal transport
• Shantou PG rose by 3.5% due to the increase in domestic containers
• Affected by environmental policies and African swine fever, Zhangzhou dropped by 7.7%

Container Throughput		2018	2019	Container Throughput		2018	2019
(million TEU)			(million TEU)
	3.5%					6.3%
1.29	1.34	12.6%			1.75	1.64
		1.11
		0.98
				7.7%
			0.46	0.42
Shantou	Zhanjiang	Zhangzhou	Taiwan KMCT

Business Analysis - Overseas

• CMPort's greenfield projects CICT&LCT rose 7.4% and 7.7% respectively
• Brasil TCP rose significantly by 32.0% through active exploration of cargo in its hinterland
• Terminal Link dropped by 2.8% due to customer adjustment in one of it's port
• TICT and Kumport's performance was better in 2H 2019 than 1H 2019

Container Throughput (million TEU)	20.84 million TEUs（+0.9%）			2018	2019
	7.4%						2.8%
					13.64
2.68	2.88					13.25
			7.7%										1.9%
				32.0%				6.8%
									2.5%	1.26	1.28
		1.05	1.13		0.92			0.86	0.92
		0.69
						0.48	0.47
Sri Lanka CICT	Togo LCT	Brazil TCP	Terminal Link	Djibouti PDSA	Nigeria TICT	Turkey Kumport

目錄

1.Performance Highlights

2.Business Analysis

-Bulk Cargo Handling Operation

3.Operation Overview

4.Outlook

5.Q&A

Business Analysis-Bulk Cargo Operation in Mainland China

• CMPort's bulk cargo volume dropped more than 10% in 2019, however overseas volume rose by 26.1%
• PRD's drop was due to the disposal of Shenzhen Chiwan, SIPG's drop was due to business restructure
• Zhangzhou and Shantou business volume decreased due to environmental protection policies

Bulk Cargo Volume (million Tonnes)								2018	2019
				2019 Bulk cargo volume Mainland China :
					443 m tonnes (-10.9%)
		23.4%		2.5%
		150.33	135.37					0.8%
			132.04
		115.15				3.5%
						75.49	91.87	91.17
					72.90
	40.9%									41.3%		23.2%
23.03	13.60								14.32	8.41	9.23
								7.09
Peral River	SIPG	Dalian Port (PDA)	Qingdao	Zhanjiang	Zhangzhou	Shantou
Delta

Business Analysis-Bulk Cargo Operation in Overseas

• Djibouti recorded 20.2% growth due to the increase in import from Ethiopia
• Hambantota's bulk business grew by 183.1% and wheeled business grew by 75.6%

Bulk Cargo Volume (million Tonnes)

20.2%

5.68

4.72

2018

2019

2019 Bulk cargo volume overseas:

6.29m tonnes (+26.1 %)

	19.8%		183.1%		75.6%
0.09	0.10	0.18	0.50	0.24	0.41
Djibouti	Turkey	Hambantota	Hambantota (Vehicle Million
					units)

目錄

1.Performance Highlights

2.Business Analysis

-Logistics Operation

3.Operation Overview

4.Outlook

5.Q&A

Business Analysis - Bonded Logistics

• Due to active exploration of new clients and the development of self-operated business, CM and Qingdao bonded logistics presents steady performances.

•CMPort partially invested bonded warehouse in Djibouti commenced operation in 1H 2019 ,utilisation rate reached 86% by year end.

Warehouse Utilization Rate
CM Bonded
Logistics
Qingdao Bonded
Logistics
Tianjin Bonded
Logistics
Djibouti Bonded
Warehouse
(Partically Invested)
Djibouti Bonded		30%
Warehouse
(Wholly owned)

2019	2018
95%
98%
99%
99%

66%

75%

86%

目錄

1. Performance Highlights
2. Business Analysis

3.Operation Overview

1. Outlook
2. Q&A

Operations Overview -Development in Guangdong- Hong Kong-Macao Greater Bay Area

WSZ Homebase

Port

Qianhai-Shekou

FTZ

Tonggu	Berths	Haixing
Channel	Intelligent
Upgrade
Optimisation	Port

HKD	425,300	Dachan Bay
3,281m	sqm	Port Phase II

Operations Overview - Overseas Expansion

Acquired a portfolio of participations in 10 terminals located in Asia, Europe, Middle-East and theCaribbean through Terminal Link

#	Nameof Terminal(s)	Countries	Shareholding
1	Kingston FreeportTerminal Limited	Jamaica	100%
2	Rotterdam World Gateway	The	30%
Netherlands
3	First Logistics Development Company	Vietnam	47.25%
4	Qingdao QianwanUnited Advance Container	China	24%
Terminal Co., Ltd
5	Umm Qasr terminal	Iraq	100%
6	Odessa Terminal Holdco Ltd	Ukraine	50%
7	Mundra Terminal Private Ltd	India	50%
8	CMA CGM PSA Lion Terminal Pte	Singapore	49%
9	Laem Chabang International Terminal Co Ltd	Thailand	14.5%
10	Gemalink (越南)	Vietnam	25%

Operations Overview-Comprehensive Development

Comprehensive development	Djibouti International Free Trade
project of Hambantota port	Zone

Completed the revision on the overall planning for the future development The one-stop service center for induction of business and investment officially commenced operation

DIFTZ officially put into operation in early 2019 with positive progress

Totaled 78 registered enterprises by the end of 2019

Operations Overview - Innovative Development

CM ePort

The e-commerce platform for port and shipping industry was further promoted

Electronic Invoice

The first B2B block chain electronic invoices system for ports in China

	5G Laboratory				Intelligent Port
	The first RTG			Haixing Intelligent
	Remote Control			Port project &
	operation under 5G			Zhanjiang port
	network at Mawan			automation project
	Container Terminal			were well underway

目錄

1. Performance Highlights
2. Business Analysis

3.Operation Overview

1. Outlook
2. Q&A

Outlook - Global Economic Environment

Alphaliner Global Container Forecast

IMF World Economic Outlook（April 2020）

	Estimated	Forecast Economic
	Economic	2020 vs 2019
Country/Region	Growth	Growth
	2019	2020	2021	Change
Global	2.9	(3.0)	5.8	(5.9)
Developed	1.7	(6.1)	4.5	(7.8)
Countries
USA	2.3	(5.9)	4.7	(8.2)
Euro Zone	1.2	(7.5)	4.7	(8.7)
Japan	0.7	(5.2)	3.0	(5.9)
UK	1.4	(6.5)	4.0	(7.9)
Developing	3.7	(1.0)	6.6	(4.7)
Countries
ASEAN	4.8	(0.6)	7.8	(5.4)
China	6.1	1.2	9.2	(4.9)
India	4.2	1.9	7.4	(2.3)
Brazil	1.1	(5.3)	2.9	(6.4)
Russia	1.3	(5.5)	3.5	(6.8)
Int'l Trade Volume	0.9	(11.0)	8.4	(11.9)

Outlook - 2020 Major Strategies

Homebase Port

Development

Overseas

Expansion

Comprehensive

Development

• WSZ homebase port: actively expand ocean-going routes in tandem with the optimisation of channels and other resources.
• CICT: optimise customer structure, promote synergy with Hambantota Port
• Hambantota: develop oil & gas business, container business and maritime services
• Complete the acquisition of the 10 terminals located in Asia, Europe, Middle- East and the Caribbean through Terminal Link
• Work diligently on the overall planning of overseas development
• Hambantota: carry out the work of inducing business and investment by following the overall plan for future development
• Djibouti: push forward the construction and development of the DIFTZ and the transformation projects the old ports

Outlook -Strive for World Class Standard

Homebase Port

CapitalDevelopment

Operation

Comprehensive

OverseasDevelopment

Expansion

World Class

Operation

InnovativeManagement

Development

Marketing &

Commerce

Shekou

Dalian

Qingdao

Shanghai

Zhanjiang

Ningbo

Zhangzhou

Tianjin

Shantou

Shunde

Taiwan Kaoshing HK MTL

Sri Lanka CICT	Sri Lanka		World's Leading Comprehensive
	Hambantota
			Port Service Provider
Djibouti DMP	Brasil TCP	Togo LCT	Nigeria TICT	Turkey Kumport Terminal Link