2005 Interim Results Announcement2005 Interim Results Announcement
Sinotrans LimitedAugust 26, 2005
Sinotrans LimitedAugust 26, 2005
2
Forward-Looking Statement DisclaimerForward-Looking Statement Disclaimer
This Presentation and subsequent discussions may contain forward-looking
statements that involve risks and uncertainties. These statements are generally
indicated by the use of forward-looking terminology such as believe, expect,
anticipate, estimate, plan, project, target, may, will or may be expressed to be
results of actions that may or are expected to occur in the future. You should not
place undue reliance on these forward-looking statements, which reflect our
belief only as of the date of this presentation. These forward-looking statements
are based on our own information and on information from other sources we
believe to be reliable. Our actual results may be materially less favourable than
those expressed or implied by these forward-looking statements which could
depress the market price of our shares.
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Table of ContentsTable of Contents
1. 2005 Interim Highlights
2. Outlook and Strategic Focus
3. Conclusion
3 – 14
15 – 16
17 –18
4
1.1. 2005 Interim Highlights2005 Interim Highlights
5
Interim Summary Highlights Interim Summary Highlights
Steady IH revenue growth of 33.7% and Profit attributable to equity holders of the
Company growth of 32.5%
Freight forwarding remained as the core business of the Group
Freight forwarding, storage and terminal service and the marine transport businesses continued
to bring significant growth
The increase in the price of international marine transportation stimulated our revenue growth
Continuous efforts in restructuring business resources and developing new products
Rapid development of NVOOC business
Better customer structure
Development of extended value-added services
Improving marine transportation business
Better management and operational efficiency and cost control
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9,754.4
02000.0
4000.0
6000.0
8000.0
10000.0
12000.0
14000.0
1H 2004
1H 2005
Strong Financial Performance Strong Financial Performance
EPS: RMB0.12
Profit Attributable to Equity Holders of the Company
(RMB mm)
(RMB mm)
(RMB mm)
Effective enhancing operational efficiency resulted in stable growth in financial performance
Stronger growth in our 2005 interim financial performance
0
100.0
200.0
300.0
400.0
500.0
600.0
1H 2004 1H 2005
376.3
0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
1H 2004 1H 2005
Dividend: RMB 0.038 per share
13,074.0
654.3
498.7
Turnover from Continuing OperationsOperating Profit from Continuing
Operations
533.2
700.0
7
0
2,000.0
4,000.0
6,000.0
8,000.0
10,000.0
12,000.0
1H 2004 1H 2005
(RMB mm) 1H 2004 1H 2005
Growing Turnover of Continuing OperationsGrowing Turnover of Continuing Operations
Key drivers of revenue growth
Continued momentum in freight forwarding and marine transportation services; strong growth in storage and terminal services
Adopted aggressive marketing strategy and enhancement in operational efficiency
2005 Interim Turnover Contribution
9,537.2
269.6
1,083.4
1,878.3
434.2
152.1
Turnover Trend
34.0%
(RMB mm)
Revenue Growth
Freight Forwarding
Shipping Agency
Express Services
Marine Transportation
Storage and Terminal Services
Other
Operating Turnover by Segment(RMB mm)
Freight Forwarding Express ServicesShipping Agency Marine Transportation
StorageOther
36.0%
32.3%
16.4%
33.2%
42.5%
1H 04–1H 05growth
01,000.0
2,000.0
3,000.0
4,000.0
5,000.0
6,000.0
7,000.0
8,000.0
9,000.0
1H 2004 1H 2005
9,754.4
14,000.0
10,000.0
7,158.5231.6
818.9
1,380.9
304.6
66.6
13,074.0
26.8%
7158.5
231.6818.9
1380.9304.6
66.611,000.0
12,000.0
13,000.0
14,000.0
9537.2
269.6
1083.4
1878.3
434.2
152.1
128%
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(RMB mm)
Improving Operating Profit Performance of Improving Operating Profit Performance of Continuing OperationsContinuing Operations
Growth in operating profit from freight forwarding, marine transportation business and storage and terminal business
Operating Profit Contribution
204.9
124.6
172.8
124.6
97.8
4.0
Operating Profit Trend
Note: After unallocated costs
Note: Before unallocated costs
Freight Forwarding
Shipping Agency
Express Services
Marine Transportation
Storage and Terminal Services
Other
(RMB mm)
Operating Profit by Segment
Note: Before unallocated costs
Freight Forwarding Express ServicesShipping Agency Marine Transportation
StorageOther
64.6%
42.4%
22.7%
1H 04–1H 05 growth
0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
1H 2004 1H 2005
Revenue Growth
533.2
0
100.0
200.0
300.0
400.0
500.0
600.0
1H 2004 1H 2005
(RMB mm) 1H 2004 1H 2005
654.3
155.3
110.9
166.6
87.5
59.4
(0.7)
NA
155.3
110.9
166.6
87.5
59.4
31.9%
12.4%
204.9
124.6
172.8
124.6
97.8
4.0
3.7%
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Total Operating Profit: RMB728.7mn Total Revenue: RMB13.074bn
Key Business Lines Key Business Lines
71.4%
8.1%
14.1%1.1%3.3%
2.0%
Operating Profit Contribution (2)Turnover Contribution (1)
Integrated Logistics
Sinotrans Limited
Support Services
Storage & Terminal Services
TruckingMarine
Transportation
Core Services
Shipping Agency
Freight Forwarding
Freight Forwarding Express Services Storage & Terminal ServicesShipping Agency Marine Transportation Other
(2) Percentage contribution is before unallocated costs and exclude the negative operating profit from others
(1) Percentage contribution is before inter-segment eliminations
Express Services
17.1%
23.7%17.1%
28.2%13.4%
0.6%
10
5,502.8
01,000.0
2,000.0
3,000.0
4,000.0
5,000.0
6,000.0
1H 2003 1H 2004 1H 2005
77.2
0
50.0
100.0
1H 2003 1H 2004 1H 2005
1.32
0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
1H 2003 1H 2004 1H 2005
(RMB mm)
(RMB mm)
Freight Forwarding Operating PerformanceFreight Forwarding Operating Performance
(million TEUS) (Kilogram in million)
Number of TEU Growth
30.1%
Amount of cargo
Note: Before elimination adjustments
A relatively fast business
development pace with better
customer structure
Operating Profit and Growth
Note: Before unallocated costs
Cargo Volume Growth Turnover and Growth
Growth
155.3
0
40.0
80.0
120.0
160.0
200.0
1H 2003 1H 2004 1H 2005
1.63
23.5%
118.4
53.4%
150.0
7,158.5
7,000.0
33.2%
179.3
13.4%
8,000.0
9,000.010,000.0
9,537.2
154.4
30.4%
2.19
34.4%
204.9
31.9%
11
818.9
0
200.0
400.0
600.0
800.0
1H 2004 1H 20050
1.0
2.0
3.0
4.0
5.0
6.0
1H 2004 1H 2005
Note: Before elimination adjustments
Express Services – the Performance of Continuing OperationsExpress Services – the Performance of Continuing Operations
Growth
21.0% 32.3%
Enhanced marketing efforts resulted in rapid business growth
Turnover and Growth(RMB mm)
Packages Growth(Packages in millions)
Growth
Operating Profit and Growth
Note: Before unallocated costs
(RMB mm)
0
50.0
100.0
150.0
200.0
250.0
1H 2004 1H 2005
4.43
7.0 1200.0
1083.4
172.8
3.7%
5.36
1000.0
166.6
12
1H 2003 1H 2004 1H 2005
Shipping Agency Operating PerformanceShipping Agency Operating Performance
96.2
0
20.0
40.0
60.0
80.0
100.0
120.0
17.8%
35.8%
Note: Before unallocated costs
Note: Before elimination adjustments
Turnover and volume growth due to enhanced customer service and marketing efforts
Net Registered Vessel Tonnage(NRT in millions)
Growth
Turnover and Growth
(RMB mm)
Growth
Operating Profit and Growth(RMB mm)
4.04%
16.4%
231.6222.6
0
50.0
100.0
150.0
200.0
250.0
1H 2003 1H 2004 1H 2005
124.3
0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
1H 2003 1H 2004 1H 2005
130.6
140.0
153.8269.6
110.9
Growth
10.8%
130.6
160.0
124.6
12.4%
13
Storage and Terminal Services Storage and Terminal Services Operating PerformanceOperating Performance
Note: Before unallocated costsNote: Before elimination adjustments
Turnover and Growth
(RMB mm)
Growth
Operating Profit and Growth
(RMB mm)
16.9%
42.5%
304.6258.8
0
100.0
200.0
300.0
400.0
500.0
1H 2003 1H 2004 1H 2005
50.8
0
15.0
30.0
45.0
60.0
75.0
90.0
105.0
1H 2003 1H 2004 1H 2005
434.2
59.4
Growth
97.8
64.6%17.7%
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Marine Transportation Operating PerformanceMarine Transportation Operating Performance
Note: Before unallocated costsNote: Before elimination adjustments
Turnover and Growth
(RMB mm)
Growth
Operating Profit and Growth
(RMB mm)
119.3%36%
1,380.91,175.5
0
500.0
1000.0
1500.0
200.0
2500.0
1H 2003 1H 2004 1H 2005
39.9
0
15.0
30.0
45.0
60.0
75.0
90.0
105.0
1H 2003 1H 2004 1H 2005
1,878.3
87.5
Growth
124.6
42.4%
17.5%
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Income StatementIncome Statement
RMB mm 1H 2005(1) 1H 2004(2)
Turnover 13,074.0 9,754.4
Other revenues 46.9 29.3
Total revenues 13,120.9 9,783.7
Operating costs (excl. Depreciation and amortization)
(9,969.1) (7,356.4)
Depreciation and amortization (129.0) (107.7)
Operating profit 654.3 533.2
Net financial income 12.6 22.6
Share of results of associates 6.6 6.5
Profit before taxation 673.5 562.3
Profit for the period from continuing operations
Profit for the period from discountinued operations
497.4
104.3
408.6
41.7
Note: (1) 2005 interim profit and loss statement is un-audited. (2) 2004 interim profit and loss statement is re-stated.
Profit attributable to shareholders 498.7 376.3
Profit for the period 601.7 450.4
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Balance Sheet StatementBalance Sheet StatementRMB mm 1H 20051 20042
Cash and cash equivalents 4,962.5 4,722.7
Term deposits with initial term of over three months 1,013.6 924.9
Trade and other receivables 5,005.4 4,073.6
Others 628.1 497.1
Total current assets 11,609.6 10,218.3
Property, plant and equipment 2,198.0 1,896.7
Other non-current assets 1,016.4 959.3
Total non-current assets
Non-current assets classified as held for sale
3,214.4
9.0
2,856.0
9.0
Total assets 14,833.0 13,083.3
Borrowings 136.9 194.5
Trade payables 3,896.1 3,074.6Other current liabilities 2,102.0 1,926.0
Total current liabilities 6,135.0 5,195.1
Borrowings 4.4 13.8
Deferred tax liabilities 6.7 1.5
Others 449.8 69.3
Total non-current liabilities 460.9 84.6
Owner’s equity 7,122.7 6,768.5
Minority interests 1,114.4 1,035.1
Total equity and liabilities 14,833.0 13,083.3Note: 1. 2005 interim balance sheet statement is un-audited 2. 2004 interim profit and loss statement is re-stated.
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Cash Flow StatementCash Flow Statement
RMB mm 1H 20051 1H 20042
Net cash inflow from operating activities 367.3 243.0
Net cash (used in)/ provided from investing activities (488.1) 119.7
Net cash used in from financing activities (165.0) (34.8)
Net (decrease) / increase in cash and cash equivalents
(285.8) 327.9
Note: 1. 2005 interim cash flow statement is un-audited. 2. 2004 interim profit and loss statement is re-stated.
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2.2. Outlook and Strategic FocusOutlook and Strategic Focus
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Company Strategies
Optimize marketing and customer management to enhance management level and cost control4
Open up new revenue resources by developing new services and new products3
Improve the service network and to expand NVOCC business2
Strengthen business integration and enhance operational quality to improve business efficiency1
Enjoy ongoing business growth in the ever-changing logistics and transportation market to cope with external trade and seasonal change in the
industry in the second half of 2005
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3.3. ConclusionConclusion
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ConclusionConclusion
Strong Sector Growth in China
Valuable Strategic
Relationships
Market Leadership
Extensive Network
Experienced Management
Team
Full Service Capabilities
Strong Brand Recognition
Superior Financial
Performance
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- Thank You -