Analyst briefing FY 2003

SAMUDERA SHIPPING LINE LTD
Investors and Analysts Briefing – March 2004
Review of
FY 2003 Result
AGENDA
• Financial Performance
• Performance Review
• Plans & Updates
• Questions & Answers
FINANCIAL PERFORMANCE
• Financial Highlights
• Margin, EPS, NTA per share
• Revenue by Business Activity
• Profit by Business Activity
Financial Highlights – FY 2003
(S$ m)
2002
2003
%
Revenue
491.2
505.1
2.8
EBIT
17.5
13.8
(21.1)
Interest, net
(4.0)
(2.9)
(27.5)
Operating Results
13.9
11.4
(18.0)
Forex Gain(Loss)
(3.8)
(2.0)
(47.4)
PBT excl E.O item
10.6
9.6
(10.4)
PBT
13.3
9.6
(27.8)
Net Profit
12.6
8.5
(32.5)
Financial Highlights – FY 2003
(continued)
2002
Operating Margin 2.83 %
2003
2.26 %
%
(20.1)
(before Tax, Foreign Exchange Gain or Loss, Share of associated company results)
EPS (c)
2.76
1.87
(32.2)
NTA p.s. (c)
42.18
43.09
2.2
Gearing
0.34
0.32
(3.0)
(Interest bearing loans over Net Worth)
Financial Highlights - FY 2003
(continued)
Exchange Rate SGD/USD
2002
Profit & Loss
2003 %
1.79
1.74 (2.8)
1.74
1.70
(average)
Balance Sheet
(2.3)
Revenue by Business Activity
2002
2003
Change
M S$
%
M S$
%
%
Container
Shipping
449.0
91
448.3
89
(0.2)
Industrial
Shipping
36.8
8
49.8
10
35.7
Group
491.2
100
505.1
100
2.8
Operating Result by Business Activity
(before Tax, Foreign Exchange Gain or Loss, Share of associated company results)
2002
2003
Change
M S$
%
M S$
%
%
Container
Shipping
6.73
48
4.24
37
(37)
Industrial
Shipping
6.34
46
7.29
64
15
Group
13.90
100
11.40
100
(18)
PERFORMANCE REVIEW
• Container Shipping
COC Content & Total Volume
2002
2003
Growth
’000 TEUS
%
’000 TEUS
%
%
SOC
976
80
1,101
81
12.8
COC
246
20
266
19
8.1
Total
1,222
100
1,367
100
11.9
SOC volume grew faster due primarily to organic growth in the existing
trade lanes and new services.
Container Shipping:
Volume by Geographical Region
Indonesia
Rest of SEA
ME + ISC
FE
Total
(’000 TEUs)
+2.4 %
600
541 554
2002
44 %
19 %
32 %
5%
100 %
2003
41 %
23 %
31 %
5%
100 %
+ 10.3 %
500
+ 36 .1%
400
387
427
313
300
230
+ 15.9 %
200
63
100
73
0
Indonesia
Rest of SEA
2002
ME + ISC
2003
FE
Container Shipping – Operating Results
(before Tax, Foreign Exchange Gain or Loss, Share of associated company results)
(S$ M)
(S$ M)
-0.2 %
500
450
400
350
300
250
200
150
100
50
0
449 448.3
-31.4 %
20.0
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
18.3
12.5
-36.9 %
6.7
4.2
0
Gross Profit
Revenue
2002
Operating Result
2003
While the volume rose by 11.9 %, the Operating Results decreased by 36.9%. Reasons are:
a. Average freight rate per TEU in 2003 was lower than that of 2002; 1st Half rates (which were
much lower due to stiff competition) pulled down the whole year average, despite the rate
restorations in the 2nd Half
b. Depreciation of US Dollar against Singapore Dollar
c. Cost of Service increased by S$5.1M mainly due to increase in charter hire, bunker cost, and
third party freight charges
d. Higher net Interest Income and a lower GA in 2003 reduced the negative impact to the
Operating Result of 2003.
PERFORMANCE REVIEW
• Industrial Shipping
Industrial Shipping – Operating Results
(before Tax, Foreign Exchange Gain or Loss, Share of associated company results)
(S$ M)
60
+ 35.3 %
49.8
50
40
36.8
+18.3%
30
+15.9%
20
11.5
13.6
6.3
10
7.3
0
Revenue
Gross Profit
2002
•
•
•
•
Operating Result
2003
Revenue increased due primarily to additional tankers and related agency services
Cost of Services rose due to additional vessels, more vessels under own operation,
increase in bunker price as well as in vessels’ running costs
Interest expenses (net) decreased by 19% to S$3.49M (2002: S$ 4.32M)
G&A expenses increased due to recruitment of additional employees, following the
acquisition of vessels in 2003
Review of
FY 2003 Results - Quarterly
Financial Highlights – 2003
(S$ m)
Q1
Q2
Q3
Q4
113.2
126.3
131.6
134.0
5.9
4.9
3.5
(0.5)
(0.67)
(0.63)
(0.77)
(0.78)
5.4
4.3
2.7
(1.0)
Forex Gain(Loss) (0.28)
(0.23)
(0.55)
(0.97)
Revenue
EBIT
Interest, net
Operating Results
PBT
5.1
4.1
2.2
(1.8)
Net Profit
4.96
4.05
2.19
(2.66)
Operating Margin
4.8%
3.4%
2.1% (0.7%)
(before Tax, FX gain/loss, Share of associated company result)
Revenue by Business Activity
Q1
S$ M
Container
Shipping
Industrial
Shipping
Group
Q2
%
102.2 90.3%
10.0
8.9%
113.2 100.0%
S$ M
Q3
%
S$ M
Q4
%
111.2 88.1%
115.7 88.0%
13.3 10.5%
14.4 11.0%
126.3 100.0%
131.6 100.0%
S$ M
%
119.1 88.9%
12.0
8.9%
134.0 100.0%
Operating Result by Business Activity
(before Tax, Foreign Exchange Gain or Loss, Share of associated company results)
Q1
S$ M
Container
Shipping
Industrial
Shipping
Group
Q2
%
S$ M
Q3
%
S$ M
Q4
%
S$ M
%
3.1 57.2%
2.5 58.8%
1.0 38.4%
(2.4)
n.m.
2.3 42.6%
1.7 39.4%
1.8 65.5%
1.5
n.m.
5.4 100.0%
4.3 100.0%
2.7 100.0%
(1.0)
n.m.
Container Shipping - Operating Results
(before Tax, Foreign Exchange Gain or Loss, Share of associated company results)
Q1
Q2
Q3
Q4
Volume
('000TEU)
341.6
342.9
336.2
346.7
Revenue (S$M)
102.2
111.2
115.7
119.1
COS (S$M)
97.2
106.1
113.0
119.5
Operating Result
(S$M)
3.1
2.5
1.0
(2.4)
The Group’s Operating Results in Q4 decreased due to:
• Increase of COS, which was mainly from charter hire. Total increase in COS was more
than the increase in Revenue
• Increase in administrative expenses as a result of an increase in provision for bad debt
Plans & Updates
Container Shipping
•
Following the rate restoration in 2nd Half 2003, another round of rate
restoration was implemented in January 2004
•
Charter hire rate is expected to remain high in 2004
•
The Company will continue exploring slot swaps and joint operations
with partners
•
The Company sold its 2 container vessels with a disposal gain of
approximately S$2.98 M, and the proceeds from sale will be used to
acquire younger vessels and to finance the business expansion of the
Group.
Plans & Updates
(continued)
Industrial Shipping
•
Industrial Shipping deployed 6 additional vessels between March
and August 2003, another 3 unit of special barges were deployed in
December 2003. These vessels will have a full year impact in 2004.
•
An additional vessel, currently under construction, is scheduled to
be delivered in Q3 2004.
Plans & Updates
(continued)
Agency
• Samudera Shipping Line (India) Pvt. Ltd. was
established in 2003 for agency services and started its
operation in January 2004.
• Another subsidiary providing agency services in
Thailand is expected to start operating in Q2 2004.