WANHAI — Annual Report 2020

Mar 22, 2021

Stock Symbol：2615

Wan Hai Lines Fiscal Year 2020 Laura Su Mar 23, 2021

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Disclaimer

• The information contained in this presentation and its accompanying announcements, including content relating to business outlooks, financial operations, is based on information derived from internal corporate data and external economic developments as a whole.

• The company’s finance, business and Q&A made in this presentation could be different from the future actual results. This may be due to various factors including but not limited to market demand, changes in policies and regulations and overall economic conditions, and other factors or risks beyond the Company’s control.

• The Company is not responsible for updating or amending changes or adjustments made to the contents of this presentation, if such changes or adjustments should occur in the future.

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Outline

• Company Overview

• Performance Update

• Outlook

• Appendix

• Q&A

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Company Overview

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Global Service Network

• 119 Operated Vessels

• Total Capacity of 323,357 TEUs

(As at end-Dec2020)

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Intra-Asia Services

• 41 Dedicated Service Routes

• 1 in Service coverage and frequency

• 15% of Intra-Asia Market Share

• 74% of Lifting Volume

(As at end-Dec 2020)

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Wan Hai Lines Capacity

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Source：Alphaliner Monthly Monitor Report Feb 2021

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High Percentage of Owned Vessels/Containers

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Vessels(ships) Containers(Teu)
Leased
Containers
Chartered Owned Owned
26%
Vessels Vessels Containers
44% 56% 74%
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• The company has high percentage of owned vessels (56%) and owned containers (74%) to lower fixed cost.

(As at end-Dec2020)

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Strategic Highlights

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• Low cost operator

• Low fixed cost structure

• Competitive handling costs driven by significant cargo volumes in key terminal hubs

• Comprehensive service network

• Intra-Asia network leverages high-growth, multi-directional cargo volumes

• Long-haul volumes fueled by China exports and regional feeder network

• Yield Management

• Well diversified customer base

• Direct sales distribution network

• Organic volume growth limited to Port-to-Port cargoes

	The New Launch Service	The New Launch Service	The New Launch Service	The New Launch Service	The New Launch Service	The New Launch Service			10
		Date		Service		Network
				CI6		North China and West India
				KCS2		South China to Indonesia & Malaysia
		2020/11		SBX		Straits and Chittagong
				CV8		South China to Vietnam
				PS2		Gulf Region and Pakistan
		2020/12		CT5		Central China to Cambodia & Thailand
				CI5		North China and East India
		2021/1		CV7		East China – Taiwan and Ho Chi Minh for weeklyservice

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Launch from Asia to USWC

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Launch four weekly services from Asia to USWC. The effective voyages will be around mid-March, 2021. － － － AA1 : Shanghai Ningbo Los Angeles Shanghai － － － － AA2 : Kaohsiung Yantian Long Beach Yantian Kaohsiung － － － － － AA3 : Haiphong Cai Mep Hong Kong Yantian Xiamen － － Long Beach Shekou Haiphong － － － － － AA5 : Kaohsiung Yantian Shanghai Ningbo Seattle － Oakland Kaohsiung

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New-build Vessels

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	Shipyard	Size (TEU)	Total amount	Delivery
	JMU (Japan)	8x 3,036	USD 334 M	2020-21
	Guangzhou Wenchong	12x 2,038	USD 316 M	2021-22
	JMU (Japan)	12x 3,013	USD 565.2 M	2022-23

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n	d Hand Vessel Purchasing	d Hand Vessel Purchasing
	Vessel Name	Design (TEU)	Purchase Year
	WH805/KOTA PANJANG	11,923	Mar-20
	TEAL HUNTER	4,178	Dec-20
	Hyundai New York/ Partner Star/MOL Pace	6,350	Dec-20
	ASTRID SCHULTE/ADRIAN SCHULTE/ ANTON SCHULTE	7,241	Dec-20
	Granville Bridge	5,642	Feb-21
	Harrier Hunter	4,255	Feb-21
	MY NY	6,030	Feb-21
	Toucan Hunter	4,178	Mar-21

2[nd] Hand Vessel Purchasing

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Brand New Containers

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	Containers(Teus)	Total amount	Delivery
	52,000	USD101M	2020Q4- 2021Q1
	50,000	USD141.7M	2021Q2
	32,000	USD99.6M	2021Q2

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Well-Diversified Customer Base

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• More than 300,000 clients that are diversified by geography and industry

• In 2020, no single customers accounted for more than 10% of WHL’s volume or consolidated operating revenues

• WHL’s customers include retailers, manufacturers of automobiles, automotive parts, chemicals, machinery and electronic products as well as freight forwarders and agents

• Both Taiwan- based enterprises as well as companies with multinational operations

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Key Terminal Investments

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1987 – Opened Pier 63 terminal in Kaohsiung

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1996 – Opened Pier 31 terminal in Taichung

2003 - Opened Ohi-5 Terminal in Tokyo, Japan

2009 – Opened Taipei Port project with JV partners, Evergreen and Yang Ming Lines

2010 - Opened Caimep, Vietnam Port project with JV partners, SNP, MOL and Hanjin Transportation 2018 -Opened Haiphong, Vietnam Port project with JV partners, SNP, MOL and ITOCHU

2019- Purchase Vietnam Da Nang Port Joint Stock Company stock (20%)

2023- Relocate to Pier 79~81 terminals in Kaohsiung

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Performance Update-2020

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FY2020 vs FY2019 Financial Results

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Revenue Gross Profit
+159
2,799.93 +18% 608.11
%
USD$M USD$M
EPS
Net Profit
393.52 +239 2020 2019
% NT$5.10 NT$1.61
USD$M
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Income Statement Highlights

US$M		FY2020	FY2019	YoY
Operating Revenue		2,799.93	2,365.40	+18%
Gross profit		608.11	234.58	+159%
Operating Income		443.96	92.59	+379%
Profit,attribute to owners of theparent		393.52	116.13	+239%
EPS (NTD)*		5.10	1.61	+217%

*Weighted average outstanding shares were 2.22 bn units at Dec 31,2020.

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Volume & Revenue-Quarterly

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Revenue (USD$M) Volume ('000 TEU)
1,000 1,250
900 1,200
800 1,150
700 1,100
600 1,050
500 1,000
400 950
300 900
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
EPS(NTD 0.53 0.04 0.75 0.81 3.50
Revenue (USD$M) Volume ('000 TEU)
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• Q4 2020 Operating revenue YOY +59% (USD)

• • Q4 2020 Volume YOY +5%

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Revenue vs . Volume Breakdown

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2020 Revenue
USA/South
America
21.6%
Intra Asia
Middle-
56.9%
East/India
21.5%
2019 Revenue
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USA/South
America
15.1%
Middle-
Intra Asia
East/India
64.7%
20.2%
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2020 Volume
USA/South
America
8.4%
Middle-
East/India
17.4%
Intra Asia
74.2%
2019 Volume
USA/South
America
8.0%
Middle-
East/India
17.9% Intra Asia
74.1%
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Freight Rate

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USD

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Cost Structure

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Remark: Others includes items such as WHL terminal, vessel repair, crew expenses, slottage and commission

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Bunker Costs

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Capital Expenditures Schedule

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Actual Expected
1,000
$903M
900
800
700 $528M
600
500
400 $373M
300
$231M
200 $179M
100
-
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Vessel Container Box Terminal Equipment Office
USD$M
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*Not covering an ongoing deal of building 9 vessels with 13,000 TEU

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Outlook

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Supply and Demand

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In 2020, market capacity was higher Forecast: 2021 market capacity is slightly than market volume. higher than market volume. Capacity +2.6% vs Cargo-1.4% Capacity+ 3.7% vs Cargo+3.4%

Source: Alphaliner Monthly Monitor Report Feb 2021

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Idle Fleet vs Charter Rates

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Source: Alphaliner Weekly Newsletter no. 11

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Fuel Spread-VLSFO vs HSFO -spread has narrowed from 2020

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Source: Alphaliner Monthly Monitor Report Feb 2021

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Appendix

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ESG-Smart Ship Notation

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•
New ship design is aimed to offer significant benefits in efficiency and reducing CO2 emissions.
•
Smart ship system can monitor our fleet and transmit to Wan Hai Eagle-eye during the voyage for
safe operations.
•
Implement a digital management platform to prevent and detect irregularities.
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ESG-Crew Management

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Human-centered
Precautions Crew health
management
• Stay in quarantine • Freely access • Against crew change
and have PCR test VSAT internet challenges
before sign on • Provide Medical • Average serve on
• Strictly implement Consultation at board for 9 months
gangway control sea • Sufficient epidemic- MLC- 12 months>
prevention supplies
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Business History

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• Started container liner services with Taiwan - Japan Trade in 1976

• Expanded Intra-Asia services to include the entire East Asian market by 1993, establishing itself as the largest container liner operator in the region

• Launched East Asia- Middle East/India Service in 1998

• Launched Trans-Pacific service in 2000 via slot purchase followed by the launch of own service the following year

• Launched Far East-Europe service in 2004

• Launched Black Sea service in 2007

• Launched East Africa service in 2010

• Launched S. Africa/East Coast S. America Service in 2010

• Launched West Coast S. America Service in 2011

• Launched Independent Mindanao Service, Far East to Pakistan / Mundra Express Service in 2014

• Launched Independent Kansai / Haiphong Service II, Independent South China / Vietnam / Malaysia Service in 2015

• Launched China – India Service II (CI2) in 2016

• Launched Independent Cambodia Service in 2017

• Launched Red Sea Service/ Indonesia-Malaysia/Japan-Korea/New China-Vietnam service in 2018

• Launched Haiphong—Pacific service/China-Philippines service/China-Vietnam and Cambodia service

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Core Values of WAN HAI

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1. Top the global liner schedule reliability survey 2016-2019 from Seaintel.

2. Seven-time winner of “ CONTAINER SHIPPING LINE OF THE YEAR – FAR EAST TRADE LANE “ from maritime and logistic awards, India.

3. Four-time winner of “ CONTAINER SHIPPING LINE OF THE YEAR “ from Lloyd's List Maritime Asia Award.

4. Winner of “ BEST SHIPPING LINE – INTRA ASIA “ in 2015 and “ BEST GREEN SHIPPING LINE “in 2016 from Asia cargo news, AFLAS.

5. Two-time winner of “ MOST ADMIRED COMPANY “ in maritime shipping category from Common Wealth

Magazine.

1. Five - time winner of “GREEN FLAG “ from port of Long Beach , CA.

2. Younger average container age ( 4.3 years ) than that of the industry ( 6.6 years ).

3. Widely – recognized with most comprehensive service network in intra - Asia.

4. 9.Balanced financial structure and steady operating status.

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Awards

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Environment -Safety and Health

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Q&A

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