CorporateCorporate PresentationPresentation
AprilApril 20102010 2 TableTable ofof ContentsContents
SectionSection 11：：China’sChina’s PortPort IndustryIndustry
SectionSection 22：：TianjinTianjin PortPort DevelopmentDevelopment inin 20092009
SectionSection 33：：LookingLooking ForwardForward 3
SectionSection 11：：China’sChina’s PortPort IndustryIndustry 4 ChinaChina PortsPorts GrowthGrowth SlowedSlowed
China’s Foreign Trade Value Declined in 2009
Trade value declined yoy by 13.9% in 2009, first time reduction since joining WTO in 2001
Throughput at major ports in China in 2009 is 121 million TEUs and 6,910 million tonnes
China Total Trade Values Throughput at Major Ports in China
Million TEUs Million tonnes US$Bn 09) CAGR (2000 – 20 9)：20% 8000 2001 – 200 150 128 6,910 CAGR ( Container = 21% 121 % 5,870 7000 3,000 2,562 120 otal Cargo = 23 T 93 6000 2,500 2,174 2,207 4,560 90 5000 2,000 1,760 1,422 57 4000 1,500 1,155 60 3000 851 2,028 1,000 621 2000 510 30 753 21 1,106 500 6 1000 0 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 1995 2000 2004 2006 2008 2009 Container Total Cargo
Source Ministry of Communications of the PRC Source China Port web PortPort ofof TianjinTianjin DemonstratesDemonstrates ResilientResilient 5 PerformancePerformance inin ChallengingChallenging EnvironmentEnvironment
Container Throughput Growth of China Major Ports(Note) (2009) Million YoY 11.2 8.7 10.3 4.6 10.5 4.7 25.0 18.3 TEUs 10% 4.9% 2.4% 2.4% 1.1% 0%
-3.9% -25% -7.0% -10.7% Guangzhou Tianjin Qingdao Dalian Ningbo - Xiamen Shanghai Shenzhen-14.8% -20% Zhoushan Total Cargo Throughput Growth of China Major Ports(Note) (2009) Million YoY 246.7 577.6 272.0 381.1 315.5 363.9 592.1 249.4 tonnes 19.0% 20%
11.0% 10.6% 10% 7.1% 5.1% 4.9% 1.8%
0% Suzhou Ningbo - Dalian Tianjin Qingdao Guangzhou Shanghai Qinhuangdao Zhoushan -1.1%
Note: Top 8 ports in China in terms of container throughput and total cargo throughput -25% 6 PortPort ofof TianjinTianjin MaintainsMaintains SteadySteady GrowthGrowth
Despite slowdown in foreign trade, port of Tianjin maintains 2.4% growth in container throughput and 7.1% growth in total throughput in 2009
Top 10 Total Throughput Ports in China Top 10 Container Ports in China
2009 2009 % Growth Total % Growth Container National National Port 2009 Throughput Port 2009 Throughput Ranking Ranking vs 2008 (Million vs 2008 (Million tonnes) TEUs) Shanghai 1 1.8% 592.1 Shanghai 1 -10.7% 25.0 Ningbo/ Zhoushan 2 11.0% 577.6 Shenzhen 2 -14.8% 18.3 Tianjin 3 7.1% 381.1 Guangzhou 3 4.9% 11.2 Guangzhou 4 4.9% 363.9 Ningbo/ Zhoushan 4 -3.9% 10.5 Qingdao 5 5.1% 315.5 Qingdao 5 2.4% 10.3 Dalian 6 10.6% 272.0 Tianjin 6 2.4% 8.7 Qinghuangdao 7 -1.1% 249.4 Xiamen 7 -7.0% 4.7 Suzhou 8 19.0% 246.7 Dalian 8 1.1% 4.6 Shenzhen 9 -8.3% 193.6 Lianyungang 9 1.3% 3.0 Rizhao 10 20.1% 181.3 Yingkou 10 24.6% 2.5
Source Ministry of Transport of the PRC 7
SectionSection 22：：TianjinTianjin PortPort DevelopmentDevelopment inin 20092009 8 CorporateCorporate StructureStructure inin 20092009
Tianjin Dev. (00882.HK) Public and Others
68% (1) 32%
Tianjin Port Dev. (03382.HK)
100% 100% 40% 40% 51%
No. 2 Co. TCT Euroasia Alliance Haifeng
Non- containerised Container Container Container Container Logistics cargo
Number of berths 71434N/A
0.3 million 1.6 million 1.8 million 1.7 million N/A GFA 190,000m2 Designed capacity TEUs TEUs TEUs TEUs
Trial operation 13.7 million 0.5 million 2.0 million 1.7 million 21,000m² commenced Actual (2009) tonnes TEUs TEUs TEUs (as at 31 Dec 09) In 2010
Note 1. Including Tsinlien Group 9 PerformancePerformance SummarySummary
Total container throughput dropped 3.4% to 4.2 million TEUs, subsidiaries 2.5 million TEUs, JVs 1.7 million TEUs
Total container market share at the port of Tianjin of 48.7%
Non-containerised cargo throughput grew 4.6% to 13.7 million tonnes
Revenue HK$1,402.8 million, of which revenue from cargo handling HK$1,065 million, revenue from sales business HK$337 million
Recurring operating profit margin lowered to 4.2%(1) (2008 : 14.5%(2))
Recurring operational net profit dropped by 86.8% to HK$17.2 million
Net loss attributable to shareholders HK$47.8 million after taking into account project related expenses
No final dividend recommended
Notes: 1. Excluding exchange gain and project related expenses in relation to the acquisition of Tianjin Port Co 2. Excluding exchange gain 10 EarningsEarnings GrowthGrowth AffectedAffected
Income Statement
Change vs HK$ million 2009 2008
Revenue 1,402.8 11.4%
- cargo handling 1,065.4 -15.4%
- sales 337.4 N/A
Recurring operating profit margin (1) 4.2% -10.3 ppt.
Recurring operational net profit 17.2 -86.8%
Note 1. Excluding exchange gain and project related expenses in relation to the acquisition of Tianjin Port Co 11 ContainerContainer HandlingHandling BusinessBusiness
Group (excluding Alliance) 2009 2008 Change
Throughput (million TEUs) 2.50 2.77 -9.7% Average Unit Price (HK$) 236.4 279.0 -15.3% Revenue (HK$ million) 591.3 773.2 -23.5%
Volume dropped by 9.7% mainly due to reduction in foreign trade containers
Unit price dropped by 15.3% yoy, as a result of higher proportion of empty and domestic containers 12 ContainerContainer HandlingHandling BusinessBusiness (cont.)(cont.)
Alliance
During 2009, recorded volume and net profit of 1.7 million TEUs and HK$58.3 million respectively, of which the Group has a 40% share
Market share of the Group’s container handling business (including Alliance) at the port of Tianjin at 48.7% (2008: 51.7%)
Euroasia
Construction completed and commenced trial operation in 2010
Possess 3 berths with total quay length of 1,100m and a designed capacity of 1.8 million TEUs 13 Non-containerisedNon-containerised CargoCargo HandlingHandling BusinessBusiness
2009 2008 Change
Throughput (million tonnes) 13.7 13.1 4.6%
Average Unit Price (HK$) 32.8 35.3 -7.1%
Revenue (HK$ million) 450.7 462.6 -2.6%
Grains and metal ore handling increased by 38.6% and 5.2 times respectively, due to increasing domestic demand
Steel handling volume declined by 31.7%, mainly due to slowing steel export 14 OtherOther BusinessesBusinesses
Sales Business 2009 2008
Revenue (HK$ million) 337 - Contribution (HK$ million) 8 - Operating Margin 2.4% -
Value added services for the non-containerised cargo handling business which brings additional cargo supply and secures an additional source of income
Bring positive contribution to non-containerised cargo handling operation in long run
Logistics Warehousing Business 4 out of 10 blocks of warehouse were in operation since 2008, the rest of 6 blocks were completed and commenced operation in the second half of 2009
Loss of about HK$28.7 million in 2009, the Group equity accounted for 51% in its results 15 HealthyHealthy AssetAsset BaseBase && OperatingOperating CashCash FlowFlow
Balance Sheet
Change vs. HK$ million 31/12/09 31/12/08 Total Assets 5,445 +11.0% Total Equity 3,591 -0.8% Net Asset Per Share (HK $) 2.0 - Total Borrowings 1,349 +18.3% Gearing (%) (1) 37.6% +6.1 ppt.
Cash Flow
HK$ million 2009 Net cash from operating activities 60 Net cash used in investing activities (140) Net cash from financing activities 197 Net increase in cash 117
Note 1. Total borrowings to total equity 16
SectionSection 33：：LookingLooking ForwardForward 17 LandmarkLandmark TransactionTransaction
The acquisition of a 56.81% stake in Tianjin Port Co (an A-share listed company) for HK$10.96 billion was completed in February 2010
The enlarged Group integrates all the listed quality assets within the port of Tianjin, results to a more diversified business structure and enhances overall competitiveness
Improved flexibility for financing with access to both HK and PRC capital market
Potential to benefit from future asset injections into Tianjin Port Co.
Milestone to participate in the merging of the port of Tianjin to a world class comprehensive port 18 CorporateCorporate StructureStructure (post(post acquisition)acquisition)
Tianjin Development Tianjin Port Group Public (00882.HK)
53.5% 21.2%(1) 25.3% Tianjin Port Development (03382.HK) 56.81% Tianjin Port Co (600717.SH)
7 container operating units with a total capacity of 12 million TEUs 14 non-containerised cargo operating units, including professional terminals handling specific cargoes like coal, coke, oil and related products, steel products and automobiles, with a total capacity reaches 200 million tonnes 2 logistics warehouses providing logistics and auxilliary services
Note 1. Including Tsinlien Group 19 TianjinTianjin PortPort CoCo
Income Statement
Change vs RMB million 2009 2008
Revenue 9,776.1 -13.2%
Profit attributable to shareholders 643.7 -31.7%
Earnings per share (RMB) 0.38 -33.3% 20 TianjinTianjin PortPort CoCo
Revenue by Segment
RMB million 2009 Segment %
Cargo handling 3,549.7 36.3%
Sales 4,965.1 50.8%
Other services 1,261.3 12.9%
9,776.1 100% 21 TianjinTianjin PortPort CoCo
Cargo Handling
2009 Change Throughput (1) - Container handling (million TEUs) 4.5 +8.7% - Non-containerised cargo handling (million tonnes) 195.8 -5.0% - Total throughput (million tonnes) 238.2 -3.9%
Note 1. Including associates 22 TianjinTianjin PortPort CoCo
Sales Business
2009 Change
Revenue (million RMB) 4,965.1 -19.3% 23 StrongStrong AssetAsset FoundationFoundation
Balance Sheet
Change vs. RMB million 31/12/09 31/12/08 Total Assets 21,419 +7.9% Shareholder’s Equity 9,717 +8.2% Net Asset Per Share (RMB) 5.8 +8.2% Total Borrowings 6,239 +12.7% Gearing (%) (1) 48.4% +2.0 ppt.
Note 1. Total borrowings to total equity 24 TheThe portport ofof TianjinTianjin –– the the PearlPearl ofof BohaiBohai Bay Bay
The port of Tianjin – Largest artificial port and important international trading port in PRC ― Total area: approximately 200 km2 Xinjiang Inner Mongolia ― Land area: approximately 47 km2 Beijing Hebei Ningxia Tianjin Vast economic hinterland: 14 provinces, municipalities Qinghai Shanxi Shandong and autonomous regions including Beijing and Tianjin GansuShaanxiHenan Tibet Sichuan The key international shipping and logistics centre in the northern regions of the PRC
Hinterland served by the port of Tianjin
Global reach of trade connections from the port of Tianjin: ― Trade connections with over 400 ports in more than 180 countries ― Over 60 regular liners have developed more than 100 shipping routes to the port of Tianjin; all of the top 20 liners in the world have established operations in the port of Tianjin 25 TianjinTianjin BinhaiBinhai New New AreaArea
Located at the east coast of Tianjin, in the centre of the Bohai Rim Region with a planned area of Tianjin Binhai New Area 2,270 square kilometres and a coastline of 153 kilometres Designated under the 11th Five Year Plan to become a key regional economic growth driver in China, after the Shenzhen Special Economic Zone and the Shanghai Pudong New Area Generated GDP of approximately RMB381.1 billion (51% of Tianjin’s GDP) in 2009 Over 100 Fortune-500 companies have investment projects with direct foreign investment totaling approximately US$5.7 billion made in 2009 The major global corporations with business interests in the area include Coca Cola, Motorola,
Samsung, Toyota, IBM, Airbus and Kodak Tianjin Port Tianjin Binhai New Area is undergoing to establish a comprehensive transportation system to further facilitate the regional integration and improve the connectivity to the hinterland 26 InvestmentInvestment HighlightsHighlights
Binhai Coastal Area: the focus of China’s economic development
Strategic location at Bohai Bay Rapidly developing hinterland The largest port in North Dominant position at China and the largest the port of Tianjin single-location port with unparalleled listed in Hong Kong competitive strengths
Potential for further Optimized business integration to create mix to enhance future synergies outlook 27
Q & A www.tianjinportdev.com 28 ForwardForward LookingLooking StatementsStatements
This presentation and subsequent discussion may contain certain forward- looking statements with respect to the financial condition, results of operations and business of Tianjin Port Development. These forward-looking statements represent Tianjin Port Development’s expectations or beliefs concerning future events and involve known and unknown risks and uncertainties which could cause actual results, performance or events to differ materially from those expressed or implied in such statements.