CCTC — Interim / Quarterly Report 2018

Nov 16, 2018

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CHINA CONTAINER TERMINAL CORP

3nd Quarter 2018 Earnings Conference

Nov 15th, 2018

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Disclaimer

This contains statements. These statements are presentation forward-looking forward-looking subject to risks, uncertainties and assumptions, some of which are beyond our control. Actual results differ from those or these may materially expressed implied by forward-looking statements. Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this presentation might not occur in the way we expect, or at all. You should not place undue reliance on any forward-looking information.

In preparing the information herein, CCTC have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to CCTC or which was otherwise reviewed by CCTC. Neither CCTC nor its advisors have made or as to the or of such any representation warranty accuracy completeness information and nor do they assume any undertaking to supplement such information as further information becomes available or in light of changing circumstances. None of CCTC, nor any of their respective affiliates, advisers or representatives shall have any liability whatsoever(in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. Neither this presentation nor any of its contents may be reproduced to a third party without the prior written consent of CCTC.

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Table of Contents

First、Company Profile

◆Business Performance

◆Financial Performance

◆ Capital Expenditure Planning

Second、Unknown of Operation

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YOKOHAMA
1250 NM
SHANGHAI BUSAN
500 NM 810 NM
KEELUNG
110 NM
XIAMEN
155 NM
TAICHUNG
North latitude 24 ° 17 ´ 40.03”
East longitude 120 ° 29 ´ 27.3”
HONG KONG
365 NM KAOHSIUNG
110 NM
SINGAPORE MANILA
1720 NM 645 NM
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Container Throughput in Taiwan

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Reference：Taiwan International Ports Corporation, Ltd.

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Container Throughput in Kaohsiung Port

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Reference：Port of Kaohsiung, Taiwan International Ports Corporation, Ltd.

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Container Throughput in Taichung Port

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Reference： Port of Taichung, Taiwan International Ports Corporation, Ltd.

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Container Throughput in Keelung Port

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Reference：Port of Keelung,TaiwanInternational Ports Corporation, Ltd.

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Container Throughput in Taipei Port

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Reference：Port of Keelung,TaiwanInternational Ports Corporation, Ltd.

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Container Throughput in Taiwan of main ports

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Reference：Taiwan International Ports Corporation, Ltd.

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Container Throughput YoY in Taiwan of main ports

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Reference：Taiwan International Ports Corporation, Ltd.

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Container Throughput in Taichung Port

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Reference：Port of Kaohsiung, Taiwan International Ports Corporation, Ltd.

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Container Throughput YoY in Taichung Terminal CCTC

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Business market share of Taichung Port

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Container Throughput in Keelung Port (Including Change parking TIPC)

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Reference：Port of Keelung,TaiwanInternational Ports Corporation, Ltd.

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Container Throughput YoY in Keelung Terminal CCTC (Including Change parking TIPC)

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Business market share of Keelung Port (Including Change parking TIPC)

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Keelung Terminal CCTC

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2Q 18 Import Container of keelung CCTC YoY Comparison

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3Q 18 Import Container of keelung CCTC YoY Comparison

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Table of Contents

First、Company Profile

◆Business Performance
◆Financial Performance

◆Capital Expenditure Planning

Second、Unknown of Operation

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3Q 18 Consolidated Income Statement YoY Comparison

Unit:NT$ Thousand

		Unit:NT$ Thousand
Items	3Q 18 ％	3Q 18 ％ Chg％ 697,373 100.00 6.41 (629,714) (90.30) 6.21 67,659 9.70 8.21 (36,006) (5.16) 7.20 31,653 4.54 9.35 (5,158) (0.74) 0.58 26,495 3.80 11.06 (3,846) (0.55) 155.02 22,649 3.25 (13.38) 0.2 (10.00)
Keelung Terminal CCTC	742,049 100.00
Cost of Sales	(668,835) (90.13)
Gross Profit	73,214 9.87
Operating Expenes	(38,600) (5.20)
Operating Income	34,614 4.66
Non-Operation Items	(5,188) (0.70)
Income before Inocme Tax	29,426 3.97
Inocme Tax Expense	(9,808) (1.32)
Net Income	19,618 2.64
EPS (NT$) after Tax	0.18

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2018 Q1-Q3 Consolidated Income Statement YoY Comparison

Unit:NT$ Thousand

Items	2018 Q1~Q3 ％	2017 Q1~Q3 ％ Chg％ 1,981,573 100.00 8.20 (1,830,465) (92.37) 6.13 151,108 7.62 33.31 (96,345) (4.86) 10.29 54,763 2.76 73.83 (16,784) (0.85) 61.26 37,979 1.91 79.38 (5,819) (0.29) 127.70 32,160 1.62 70.64 0.29 72.41
Net Revenue	2,144,151 100.00
Cost of Sales	(1,942,703) (90.60)
Gross Profit	201,448 9.40
Operating Expenes	(106,255) (4.96)
Operating Income	95,193 4.44
Non-Operation Items	(27,066) (1.26)
Income before Inocme Tax	68,127 3.18
Inocme Tax Expense	(13,250) (0.62)
Net Income	54,877 2.56
EPS (NT$) after Tax	0.5

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3Q 18 Consolidated Income Statement QoQ Comparison

		Unit:NT$ Thousand 3Q 17 ％ 1,402,102 100.00 (1,273,868) (90.85) 128,234 9.15 (67,655) (4.83) 60,579 4.32 (21,878) (1.56) 38,701 2.76 (3,442) (0.25) 35,259 2.51 0.32
Items	3Q 18 ％
Net Revenue	742,049 100.00
Cost of Sales	(668,835) (90.13)
Gross Profit	73,214 9.87
Operating Expenes	(38,600) (5.20)
Operating Income	34,614 4.66
Non-Operation Items	(5,188) (0.70)
Income before Inocme Tax	29,426 3.96
Inocme Tax Expense	(9,808) (1.32)
Net Income	19,618 2.64
EPS (NT$) after Tax	0.18

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Net Revenue Comparison

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2017 Sales amount and Proportion

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Name	YML	OOCL	MSK	TSL	MHM	Other	Net sales
NT$ Thousand	354,496	353,479	231,651	191,427	151,626	1,380,428	2,663,107
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2018 Q1-Q3 Sales amount and Proportion

2018 Q1-Q3 Sales amount and Proportion	2018 Q1-Q3 Sales amount and Proportion	2018 Q1-Q3 Sales amount and Proportion	2018 Q1-Q3 Sales amount and Proportion	2018 Q1-Q3 Sales amount and Proportion	2018 Q1-Q3 Sales amount and Proportion	2018 Q1-Q3 Sales amount and Proportion	2018 Q1-Q3 Sales amount and Proportion
Name	YML	OOCL	MSK	TSL	MHM	Other	Net sales
NT$ Thousand	357,227	265,678	183,728	177,999	128,908	1,030,610	2,144,150
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Operating Results Summary

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Table of Contents

First、Company Profile

◆Business Performance

◆Financial Performance

◆Capital Expenditure Planning

Second、Unknown of Operation

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Year 2018 Capitaled Cost

Location	Fix asset	Completion time
Keelung Termina	Purchase 2 units used Rail Mounted Gantry crane	2nd quarter
	Purchase 2 units new Reach stacker	3ndquarter
Taichung Terminal	Install 3rd RMG rail 436M	3ndquarter
	Purchase 4 units new RMG	3ndquarter
Location	Facility equipment	Completion time
Keelung Termina	Repair asphalt of Container Yard around 20W	2nd quarter
	Renew underground High voltage Elect Cables for 4 units gantry crane at pier 19	4nd quarter
Taichung Terminal	Yard Marking for 3rd RMG operation area	2nd quarter
	Build 2 units Yard control booth	3ndquarter

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Install 3rd RMG rail 436M
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Reach Stacker（35 tons）
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Forklift
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Table of Contents

First、Company Profile

◆Business Performance

◆Financial Performance

◆Capital Expenditure Planning
Second、Unknown of Operation

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Unknown of Operation

• Trends of ships getting bigger

• Shipping alliance restructuring

• Changes in labor policy

• US-China trade war

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2018 Q1-Q3 Container Throughput YoY in Keelung Terminal CCTC (Including TIPC)

Unit：Box

					Unit：Box
Month	CCTC Container Throughput	PS4 Container Throughput	Proportion of CCTC	ALX1 Container Throughput	Proportion of CCTC
Jan	28,442	8,457	29.73%	-	-
Feb	23,750	5,883	24.77%	-	-
Mar	28,026	5,621	20.06%	-	-
Apr	27,253	6,047	22.19%	-	-
May	30,127	7,845	26.04%	-	-
Jun	30,441	6,629	21.78%	2,696	8.86%
Jul	30,232	7,771	25.70%	2,116	7.00%
Aug	29,854	7,529	25.22%	3,597	12.05%
Sep	28,606	6,860	23.98%	3,786	13.23%
Total	256,731	62,642	24.39%	12,195	4.75%
Average	28,526	6,960	24.39%	3,049	34 4.75%

PS4 (美西線) Vessel Rotation

Port Rotation

HONGKONG - YANTIAN - KAOHSIUNG - KEELUNG - LOS ANGELES - OAKLAND - KEELUNG - KAOHSIUNG – HONGKONG

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ALX1(中南美線)Vessel Rotation

Port Rotation:
Keelung, Hong Kong, Yantian, Xiamen, Ningbo, Shanghai, Busan, Manzanillo,
Callao, Iquique, Puerto Angamos, Valparaiso

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2018 Q1-Q3 Container Throughput YoY in Keelung Terminal CCTC (Including Change parking TIPC)

Unit：Box	Unit：Box	Unit：Box	Unit：Box
Month	CCTC	Intra Asia Container Throughput	Proportion of CCTC
Jan	28,442	20,251	71.20%
Feb	23,750	18,351	77.27%
Mar	28,026	21,967	78.38%
Apr	27,253	21,469	78.78%
May	30,127	22,615	75.07%
Jun	30,441	20,328	66.78%
Jul	30,232	19,809	65.52%
Aug	29,854	18,804	62.99%
Sep	28,606	18,300	63.97%
Total	256,731	181,894	70.85%
Average	28,526	20,210	37 70.85%

2018 Q1-Q3 Container Throughput YoY in Taichung Port

Unit：TEUs

				Unit：TEUs
Month	EMC	WHL	CCTC	Total
Jan	43,291	43,919	53,169	140,379
Feb	29,525	38,968	38,558	107,051
Mar	43,854	47,470	54,486	145,810
Apr	44,658	44,903	51,480	141,041
May	47,163	48,416	59,761	155,340
Jun	41,582	45,177	58,213	144,972
Jul	44,128	45,359	57,349	146,836
Aug	40,440	42,440	55,613	138,493
Sep	44,189	45,397	54,786	144,372
Total	378,830	402,049	483,415	1,264,294
Average	42,092	44,672	53,713	140,477
%	30%	31.8%	38.2%	100%

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Thank you Q & A http://www.cctcorp.com.tw