WANHAI — Interim / Quarterly Report 2021

Jun 4, 2021

Stock Symbol：2615

Wan Hai Lines 2021 First Quarter Update

Randy Chen HSBC Transport& Logistics Conference Jun 7[th] , 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

• Appendix

• Q&A

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Company Overview

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Global Service Network

• Vessels (As of end-Mar 2021)

• Operating 132

• 369,163 TEUs of total Capacity (As of end-Mar 2021)

• Ranking as Top11 Global liner by Capacity

(Source from Alphaliner as of end-Mar 2021)

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Intra Asia Services

• 40 Dedicated Service Routes

• The Best in Service coverage and frequency

• 15% of Intra Asia Market Share

• 67% of Lifting Volume

(As of end-Mar 2021)

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High Percentage of Owned Vessels/Containers

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Vessles(Ships) Containers(TEU)
Leased
Containers
25%
Chartered Owned
Owned
Vessels Vessels
Containers
44% 56%
75%
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• Operating high percentage of owned vessels (56%) and owned containers (75%) to control fixed cost effectively.

(As of end-Mar 2021)

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Strategic Highlights

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• Mitigating operation cost

• 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 service network

• Volume growth nourished by Port-to-port cargoes

New Services

Date	Service	Network	Capacity
2021/1	CV7	East China – Taiwan and Ho Chi Minh	650 Teu X2
2021/4	CI8	South China – Vietnam and West India	2,100Teu X4
2021/5	TVT2	Taiwan – Thailand – Vietnam	1,050Teu X2
2021/5	AS1	Asia – South America	2,200Teu X10

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Transpacific Service Expansion

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Launch four weekly services from Asia to USWC. In response to the surge in cargo demand, four new services commenced in mid-March.

－ － － 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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Newbuild Vessel Orders

	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
	Hyundai Heavy Industries	5x 13,200	USD 562 M	2023Q1- 2023Q4
Samsung Heavy Industries		4x 13,100	USD 445.6 M	2022Q4- 2023Q1
Samsung Heavy Industries		4x 13,100	USD474M ~USD500M	2023Q2- 2024Q1

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Second-Hand Vessel Purchases

	Vessel Name	Design (TEU)	Delivery
	TEAL HUNTER	4,178	Jan-21
	Hyundai New York		Jan-21
	Partner Star	6,350	Mar-21
	MOL Pace		Mar-21
	ASTRID SCHULTE		May-21
	ADRIAN SCHULTE	7,241	May-21
	ANTON SCHULTE		2021H2
	Granville Bridge	5,642	2021H2
	Harrier Hunter	4,255	Mar-21
	MY NY	6,030	2021Q2
	Toucan Hunter	4,178	2021Q3

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New Container Purchases

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	Containers(Teus)	Total amount	Delivery
	52,000	USD101M	2020Q4- 2021Q1
	50,000	USD141.7M	2021Q2
	32,000	USD99.6M	2021Q2
	50,000	USD151.88M	TBA

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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 2021Q1, no single customer accounted for more than 1% 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-1Q21

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Financial Results(1Q21 vs.1Q20)

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Revenue Gross Profit
+130 +1,129
1,379.16 683.82
% %
USD$M USD$M
EPS
Net Profit
524.73 +18,850 1Q21 1Q20
% NT$6.62 NT$0.04
USD$M
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Income Statement Highlights

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1Q21 1Q20 YoY
US$M
Operating Revenue 1,379.16 599.25 +130%
Gross profit 683.82 55.62 +1,129%
Operating Income 628.47 20.28 +2,998%
Profit,attribute to
524.73 2.77 +18,850%
owners of the parent
EPS (NTD) 6.62 0.04 +17,557%
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*Weighted average outstanding shares were 2.22 bn units as of Mar 31,2021.

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Volume & Revenue-Quarterly

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Revenue (USD$M) Volume ('000 TEU)
1,300
1,400
1,250
1,200 1,200
1,150
1,000
1,100
800
1,050
600 1,000
950
400
900
200
850
- 800
1Q20 2Q20 3Q20 4Q20 1Q21
Revenue (USD$M) Volume ('000 TEU)
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• 1Q21 Operating revenue YOY +130% (USD)

• 1Q21 Volume YOY +11%

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Revenue vs. Volume Breakdown

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1Q21 Revenue 1Q21 Volume
Middle East/India
8.3%
Middle
South America
East/India
Intra Asia 4.9%
22.9%
USA
Intra Asia
47.4%
South
19.9%
66.9%
America
13.4% USA
16.3%
1Q20 Revenue 1Q20 Volume
Middle
South
Middle East/India
America
East/India 18.0%
2.8%
South 23.7%
Intra Asia Intra Asia
America
64.0% 75.1%
USA
6.5%
4.1%
USA
5.8%
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Freight Rate

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USD

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3,500
3,000
2,500
2,000
1,500
1,000
500
0
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
South America USA Middle East/India Intra Asia
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Cost Structure

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1Q21 1Q20
Terminal Others Terminal
Others
21.5% Handling 17.3% Handling
31.0% 31.4%
Adm Cost
6.1%
Adm Cost
Vessel Charter
7.4%
Hire 5.4%
Vessel
Charter Hire
6.8% Bunkerage
Container
19.8% Bunkerage
Related
Container 25.9%
8.4%
Related
Port Charge Port Charge
8.7%
4.8% 5.5%
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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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Singapore Bunker Price: USD/TON

Bunker Cost : USD $M

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600 190
550
170
500
150
450
400
130
350
110
300
250
90
200
70
150
100 50
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
Singapore Bunker Price: USD/TON Bunker Cost (inc.all oil types)
( before 2020: IFO380 Singapore/
after 2020 : 0.5% VLSFO Singapore)
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Capital Expenditures Schedule

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USD$M
1,200
Actual Expected
$961M
1,000
800
$678M
600
$482M
400
200
-
2015 2016 2017 2018 2019 2020 2021 2022
Vessel Container Box Terminal Equipment Office
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*Does not include May 11 and May 13 Board Resolution for 8 additional Newbuilds of 13,000 TEU

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3 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
• Compensated for pre- • Provides Access • Advocate for
sign on quarantine to VSAT/Internet Unencumbered
and testing protocols Crew Changes
• Strictly implement • Provide Medical • Average service time
gangway control Consultation at of 9 months (Less
sea
• Sufficient epidemic- than MLC regulation
prevention supplies of 12 months)
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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 TransPacific 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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4 Q&A

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