SNC — Interim / Quarterly Report 2016

Mar 15, 2017

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2017 Bulk Shipping Market

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Sincere Navigation Corp. (2605) ： Speaker Lee Yih-Ren

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2017 Bulk Shipping – Positive/Negative Factor POSITIVE FACTORS:

• US President Mr. Donald J. Trump’s New Economic Policy

• China: One Belt One Road

• Steel industry to be recovery

• International Convention Regulation (Ballast Water Convention)

• NEGATIVE FACTORS

• Iron ore inventory at PRC reach 130M mt.

• • Over age vessels available for demolition to be reduced.

• .

• Supply and demand unbalance

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Charter Hire for Bulk Vessel

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Capesize Vessel Freight/Hire

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Charter Hire for Tanker

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VLCC WS & Hire

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New Building & Demolition Summary

Arthur Hsieh

7

2017/3/15

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Vessel Newbuilding Statistic

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Vessel Demolition Statistic

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SNC Fleet List

• Existed Vessels:

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圖表標題
Capesize
17%
Kamsarmax
6%
53% Handymax
12%
Woodchip
12%
Tanker
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– Bulk Carriers:

• Capesize: 9

• Kamsarmax: 2

• Handymax: 2

• Woodchip: 1

– Tanker: 3

• Newbuilding: 1 VLOC

船 名(中文) 船名(英文) 載重噸位 船 型 建造年份 華 興 輪 Daio Excelsior 48,181自卸木屑船 1997 麥 唐 娜 輪 Madonna-III 53,390輕便型散裝船 2007 佐 興 輪 Georgiana 53,383輕便型散裝船 2008 合 盛 輪 Oceana 81,594大型散裝船 2014 寶 隆 輪 Palona 81,676大型散裝船 2014 明 安 輪 Mineral Antwerpen 172,424特大型散裝船 2003 黃 山 輪 Huang Shan 175,980特大型散裝船 2003 青 山 輪 Chin Shan 175,569特大型散裝船 2004 舟 山 輪 Chou Shan 175,569特大型散裝船 2005 寶 山 輪 Bao Shan 175,009特大型散裝船 2006 衡 山 輪 Heng Shan 174,145特大型散裝船 2007 玉 山 輪 Yue Shan 177,798特大型散裝船 2009 明 和 輪 Mineral Oak 177,921特大型散裝船 2010 泰 山 輪 Tai Shan 176,469特大型散裝船 2011 海 福 輪 Elbhoff 300,838特大型油輪 2017 美 生 輪 Maxim 296,887特大型油輪 2011 高 登 輪 Condor 296,714特大型油輪 2012

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Expressed in thousands of New Taiwan Dollars, except earnings per share)

ITEMS	YEAR 2014	YEAR 2015	1-3Q of 2016
Operating revenue	4,468,377	5,063,606	3,099,370
Operating costs	(2,832,412)	(3,139,208)	(2,132,525)
Net operating margin	1,635,965	1,924,398	966,845
Operating expenses	(192,477)	(188,310)	(133,995)
Other gains-net	-	-	48,745
Operating profit	1,443,488	1,736,088	881,595
Non-operating income and expenses	(177,414)	(143,528)	(7,093)
Profit before income tax	1,266,074	1,592,560	874,502
Income tax expense	(131,874)	(269,437)	(134,046)
Profit for the period from continuing operations	1,134,200	1,323,123	740,456
Profit (loss) for the period from discontinuing operations	155,982	41,082	(13,969)
Profit for the period	1,290,182	1,364,205	726,487
Other comprehensive income, net	1,080,854	766,013	(965,256)
Total comprehensive income for the period	2,371,036	2,130,218	(238,769)
Profit, attributable to:
Owners of the parent	858,476	944,393	489,210
Non-controlling interest	431,706	419,812	237,277
Comprehensive income attributable to:
Owners of the parent	1,868,136	1,618,929	(367,742)
Non-controlling interest	502,900	511,289	128,973
Earning per share	1.51	1.66	0.87

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CONSOLIDATED BALANCE SHEETS (Expressed in thousands of New Taiwan Dollars, except net worth per share)

ITEMS	Dec. 31, 2014	Dec. 31, 2015	Sep. 30, 2016
Current assets	7,361,122	6,476,700	5,120,018
Property, plant and equipment	21,747,401	21,877,946	20,501,911
Other non-current assets	25,262	33,016	12,355
Total Assets	29,133,785	28,387,662	25,634,284
Current liabilities	3,320,188	2,930,956	2,669,207
Long-term borrowing	7,273,571	5,671,226	4,310,008
Other non-current liabilities	121,771	222,108	121,501
Total Liabilities	10,715,530	8,824,290	7,100,716
Share capital	5,683,042	5,683,042	5,683,042
Capital surplus	39,243	49,593	49,593
Retained earnings	10,711,260	11,085,681	11,006,587
Other equity interest	(365,770)	310,434	(546,518)
Non-controllonginterest	2,350,480	2,434,622	2,340,864
Total Equity	18,418,255	19,563,372	18,533,568
Total Liabilities and Equity	29,133,785	28,387,662	25,634,284
Debt Ratio (Liabilities/Equity)	0.58	0.45	0.38
Net gearing	0.26	0.14	0.12
Net Worth Per Share	28.27	30.14	28.49

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EARNINGS AND DIVIDENDS IN PAST TEN YEARS

(Expressed in thousands of New Taiwan Dollars, except earnings and dividends per share)

ITEMS	YEAR 2006	YEAR 2007	YEAR 2008	YEAR 2009	YEAR 2010
Netincome	2,746,196	3,308,150	2,891,791	3,080,856	2,103,471
Earning pershare	5.68	6.84	5.09	5.42	3.70
Cashdividend	5.00	3.50	2.50	3.00	2.50
Stockdividend	-	1.75	-	-	-
Totaldividend	5.00	5.25	2.50	3.00	2.50

ITEMS	YEAR 2011	YEAR 2012	YEAR 2013	YEAR 2014	YEAR 2015
Netincome	1,759,319	1,625,252	1,099,224	858,476	944,393
Earning pershare	3.10	2.86	1.93	1.51	1.66
Cashdividend	1.50	1.25	1.10	1.00	1.00
Stockdividend	-	-	-	-	-
Totaldividend	1.50	1.25	1.10	1.00	1.00

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Questions & Answers

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~ The End ~

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Thanks for Listening!

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