COSCO SHIPPING International Hong Kong : 2022 Annual Results Presentation Transcript

綠色領航，智能引航

Green and Smart Shipping

Leads the Future

Welcome to the COSCO SHIPPING International 2022 Annual Results Press Conference.

The three-year pandemic has caused us to lose many opportunities for face-to-face communication. It was a pleasure to see many old friends and some new ones again this time. I would also like to take this opportunity to thank all friends for their long-term attention and support to COSCO SHIPPING International, thank you.

1

2022 Review & Key Highlights

Market Review and Segmental Performance

Financial Performance

Outlook

2

Now, I would like to briefly introduce Market Review and Segmental Performance

First report performance highlights:

•  2H2022 profit surged by 41.0% YoY, FY2022 profit increased by 20%

•  Strong profit growth was resulting from increase in share of profits of joint ventures and finance income as well as prudent cost control

2H22 Profit attributable to Shareholders

FY22 Profit attributable to Shareholders

HK$' m HK$' m

288.3

128.7

FY2021

FY2022

3

In 2022, global economy was affected by multiple obstacles, including the

COVID-19 epidemic, geopolitical conflicts, extensive fluctuations in energy and food prices, persistent inflationary pressures, and tightening financial environment.

Uncertainty has increased significantly.

COSCO SHIPPING International adheres to its business strategy, provides customers with comprehensive value-added solutions, together with our well-diversified shipping service business and investment portfolio, those have effectively eliminated cyclical fluctuations of our performance and successfully achieved profit growth this year.

During the year, the company realized a profit attributable to equity holders of HK$347.1 million, reprensentating a year-on-year increase of 20%. Among them, the profit growth in the second half of the year was particularly strong, with a year-on-year increase of 41%.

•  Earnings per share increased by 21% YoY to HK$22.74 cents

•  Proposed final dividend per share of HK$11.50 cents

•  FY2022 dividend per share increased by 18 % YoY to HK$22.50 cents，payout ratio at 99.0%

Earnings per Share

Dividend per Share

HK$' cents HK$' cents

As the profit attributable to equity holders of the Company increased, the basic earnings per share of 2022 was HK22.74 cents, a year-on-year increase of 21%.

This year, the Board proposed to distribute a final dividend of HK11.5 cents per share, plus the interim dividend of HK11 cents per share, the total dividend per share for 2022 will be HK22.5 cents, an increase of 18% from last year's HK19 cents. The payout ratio is 99%.

Since 2020, we have increased the actual dividend payout ratio to nearly 100%, which makes a demonstration of the company's commitment in maximizing shareholder returns.

•  Repurchased shares from open market, no. of shares repurchased and canceled of 51,262,000 shares

•  Total return for shareholders in FY2022 was approximately HK$458m [HK$340m (Dividends) + HK$118m (Buybacks)]

Payout ratio

Buybacks

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

5

Shares repurchased in 2022	Cash spent on repurchases (HK$)
51,262,000	118,091,720
Issued shares as of 31 December 2021
1,532,955,429
Weighted average number of shares for EPS calculation
1,526,108,930
Issued shares as of 28 Feb 2023
1,481,693,429

In addition to the distribution of dividends, we have further optimized the way of shareholder returns and the utilization of the Company's cashflow through shares buyback. In 2022, have repurchased our shares from the open market, the number of shares that repurchased and canceled is 51.26 million shares.

Together with the annual dividend payout, the combined shareholders' return in 2022 is approximately HK$458 million.