Aug 2019

2

5

712.01

9.79

EPS DPS

HK cents

3

1H18 1H19

-18%

1H18 1H19

+40%

HK cents

(HK$’ m) 1H2018 1H2019 YoY

Revenue 4,787.6 1,626.0 -66%

Gross profit 305.6 274.2 -10%

Other income and gains/(losses) – net 75.2 (8.5) Turnaround loss

Selling & Admin expenses (256.8) (241.1) -6%

Operating profit 144.9 59.9 -59%

Finance income – net 74.9 105.8 +41%

Share of profit/(losses) from JVs &Associates (2.4) 16.8 Turnaround profit

Profit attributable to Shareholders 184.0 150.0 -18%

4

Adjusted Net Profit* (HK$’ m) 1H2018 1H2019 YoY

Excl. non-recurring income/gains in 1H18 ($17.8m reversal of provision, $12.2m government subsidy for factory relocation)

158.1 150.0 -5.1%

Further exclusion of FX gains of $39.7m in 1H18 and FX losses of $14.1m in 1H19 123.8 162.2 +31.0%

*Adjusted net profit is calculated by after tax effect with a tax rate of 16.5%

(HK$’ m) As of 31 Dec 2018 As of 30 Jun 2019

Total Assets 9,256.7 9,284.1

Total Liabilities 1,102.0 1,119.3

Shareholders’ equity 7,853.9 7,869.7

Cash on Hand 6,375.7 6,166.4

Debt to Equity 0.5% 0.7%

Current Ratio 7.8x 7.7x

Quick Ratio 7.5x 7.4x

Interest Coverage 176.7x 115.1x

5

Per Share As of 31 Dec 2018 As of 30 Jun 2019

Issued Shares 1,532,955,429 1,532,955,429

Net Assets (HK$) 5.12 5.13

Net Cash (HK$)(Cash on Hand minus Total Liabilities) 3.44 3.29

6

7

(HK$’ m) 1H2018 1H2019 YoY

Shipping Services 128.0 108.2 -15%

- Ship Trading Agency 58.0 32.2 -45%

- Insurance Brokerage 24.0 23.2 -3%

- Marine Equipment 37.6 36.1 -4%

- Coatings 0.8 25.8 +3005%

- Marine Fuel Trading 7.6 (9.0) Turnaround loss

(HK$’ m) 1H2018 1H2019 YoY

General Trading 19.3 6.9 -64%

8

58.0

32.2

PBT

1H18 1H19

-45%

HK$ m

43.4

31.9

Adjusted PBT (taking out FX factor)

1H18 1H19

-26%

HK$ m1. FX gains of $0.16m in 1H19 vs $14.6m in 1H18

2. Adjusted PBT margin 64.5% in 1H19 vs 70.2% in 1H18

Orders through COSCO SHIPPING Ship Trading

1H18 1H19

No. of vessel

mnDWT

No. of vessel

mnDWT

Newbuild delivery 18 3.1 8 1.3

Newbuild contracts 8 1.9 11 1.6

Secondhand vessels 14 0.56 11 0.2

Orderbook on hand* 53 9.85 84 10.09

*as at the end of Jun

24.0 23.2

9

PBT

1H18 1H19

-3%

HK$ m

1. Revenue declined by 2% to $35.6m in 1H19 vs $36.2m in 1H18

2. Lower ship prices drove premium down

3. Increase in war insurance counterweigh some downside pressure

33.0 36.8

37.6 36.1

10

PBT

1H18 1H19

-4%

HK$ m

Adjusted PBT (taking out FX factor)

1H18 1H19

+11.5%

HK$ m1. FX losses of $0.7m in 1H19 vs gains of $4.6m in

1H18

2. Adjusted PBT margin 5.8% in 1H19 vs 5.9% in 1H18

1. Revenue increased by 15% to $640.1m in 1H19 vs $555.9m in 1H18

2. Increased number of external customers

9.3

3.9

0

2.7

-8.5

19.2

11

PBT of COSCO Kansai

1H18 1H19

-58%

HK$ m

1H18 1H19

Turnaroundprofit

HK$ m

1H18 1H19

HK$ m

Profit of COSCO Juton Profit of Nasurfar

1. Nasurfar was acquired in Aug-2018

2. Avg monthly profit in 1H19 was $0.46m, vs $0.40m in FY18

3. Earnings growth on track with effective governance and cost control

1. Enhanced pricing strategy to reflect material costs instantly

2. Higher GPM with lower costs

1. All sales volume +10.5% YoY2. Margin squeezed as container

coatings ASP -19% YoY3. Absence of $12.2m government

subsidy recorded in 1H18

(million litres) 1H18 1H19 YoY

Newbuild 22.7 22.1 -3%

Maintenance 10.5 11.6 +11%

(tonnes) 1H18 1H19 YoY

Container 9,983 11,684 +17%

Heavy-dutyanti corrosion 9,117 9,426 +3%

7.6

-9.0

12

PBT

1H18 1H19

HK$ m

1. Sinfeng’s business was purposely trimmed down for risk control

Turnaroundloss

HK$ million 1H18 1H19

Operating profit of Sinfeng 3.5 (1.6)

Share of profit from Double Rich 5.1 (6.9)

19.3

6.9

13

PBT

1H18 1H19

HK$ m

1. ASP +33% YoY

2. Absence of $17.8m reversal of provision recorded in 1H18

(tonnes) 1H18 1H19 YoY

Asphalt sale volume 77,197 69,690 -9.7%

-64%

1.5

6.9

Adjusted PBT (taking out non-recurring factor)

1H18 1H19

+360%

HK$ m

14

Global Order Book‘m DWT

15

Source: Clarksons

234.4222 227.6

198

100.999.8 95.3 88.4

2016 2017 2018 Jun-19

Global China

100.6 9880.6

50.9

83.7 83.8

36.1 38.7 35.218.6

30.4 33.2

2016 2017 2018 Jun-19 E2019 E2020

Global China

Clarksons Newbuilding Price Index

Newbuilding Delivery Newbuilding Contracting

m DWT m DWT

16

Source: Clarksons

126

133138

131

123125

130 131

2012 2013 2014 2015 2016 2017 2018 1H19

118.3

30.2

91 93.1

24.937.9

13.7

41.4 33.5

13.7

2015 2016 2017 2018 1H19

Global China

3,152

3,786

2,027

1,419

2,238 2,086 2,202

1,785

Total Output ASP

Output and Average Selling Price of Newbuild Containers in China

Source: Company Statistical Data

‘000 TEU

17

1H18 1H19FY2017 FY2018

-30%

-18.9%

18

Shipping services unified

operation platform

Non-financial business

investment platform

LeadingInternational

Shipping Service

Company

Strong supportfrom COSCOSHIPPING

Group

Clear vision

Ample internal

resources

19

20

China COSCO Shipping Corporation Limited, a merger of COSCO Group and China Shipping Group, was established on 5 Feb 2016 in Shanghai. It comprises 1,114 vessels with a capacity of 85.32mn DWT, ranking No.1 in the world. The vision of China COSCO Shipping is to build a world-leading business entity that provides integrated logistics and supply chain services.

*

China COSCO SHIPPING Corp.*

Specialised and General Cargo Transportation

COSCO SHIPPING 600428.SH

50.94%

COSCO SHIPPING Development

2866.HK / 601866.SH

Container Leasing and Ship Chartering

39.02%China Shipping

Network Technology 2401.SZ

Intelligent Transportation

System

50.01%

Shipping Services

COSCO SHIPPINGInternational

517.HK

66.12%45.47%

46.72%

Port Operation

COSCO SHIPPING Holdings

1919.HK / 601919.SH

Container Shipping

Oil & Gas Shipping

COSCO SHIPPING Energy

1138.HK / 600026.SH

COSCOSHIPPING

Ports 1199.HK

38.56%

Shipping Logistics Shipping Finance

Equipment Manufacturing

ShippingServices

Social Services Internet+

Orient Overseas (International)

0316.HK^

Container Shipping

21

• As at the end of Dec 2018, the total number of issued shares was 1,532,955,429.

COSCO SHIPPING International (Hong Kong) is a HK-based shipping services provider, offering diversified and specialized shipping related services or products to customers such as shipping companies, ship yards, container manufacturers, etc.

COSCO SHIPPING

(Hong Kong) Ship Trading

Public shareholders

COSCO SHIPPING International Trading

COSCO Kansai [Container Coatings]

COSCO SHIPPING(HK) Insurance

Brokers

Yuantong Marine Service (HK)

100%

33.88%

64%

50%

100%

18%

66.12%

Ship Trading Agency

Marine Insurance Brokerage

Marine Equipment & spare parts supply

Production & Sale of Coatings

General Trading

Shenzhen COSCO Insurance Brokers

100%

55%

Jotun COSCO [Marine Coatings]

Marine Bunker Supply

Sinfeng Marine Services(Singapore)

Double Rich (HK)

100%100%

COSCO SHIPPING

100%

Shin Chung Lin (Japan)

Xing Yuan (Singapore)

100%

100%

Yuantong Marine Trade (Shanghai)

100%

Centralised Procurement Platform for COSCO SHIPPING’s Fleet

Hanyuan Technical Service (Germany)

100%

COSCO (Beijing) Marine Electronic Equipment Limited

100%

COSCO SHIPPING (HK)

COSCO SHIPPING International (00517.HK)*

COSCO SHIPPING International (00517.HK)*

CSHT Marine Machinery Suppliers Limited

51%Yuan Hua Technical &

Supply (USA)100%

22

Nasurfar Biomaterial Technology

33%

1997 2002 2003 2004 2005 2008 2009 2010 2011 2013 2014 2015 2016 2017 2018

COSCO HK Group acquired a HK-listed Shun ShingConstruction &Engineering Company Limited and renamed it as “COSCO International Holdings Limited ”

Acquired COSCO Ship Trading from COSCO Group, and began to develop shipping services

Acquired equity interests in COSCO Kansai to develop container coatings

Acquired COSCO HK Insurance Brokers and Yuantong from COSCO Group for marine insurance brokerage and equipment supply

Established thejoint venture Jotun COSCO to develop marine coatings

Disposed of propertyinvestments in HK

Divested the building construction business& a property investment in Shenyang, China

Acquired 18% equity interest in Double Rich in HK and established Sinfengin Singapore, first into marine bunker supply business

Acquired Xing Yuan in Singapore and established Shin Chung Lin in Japan

Disposed all shares of Sino Ocean Land with net proceeds of HK$5.26 billion, paid out special dividend of 35 HK cents per share

COSCO Kansai started to build a new plant in Shanghai

Acquired 100% equity interest in Hanyuan in Germany to enlarge marine equipment supply network outside Asia

Acquired 51% equity interests in Yuan Hua in the USA

Jotun COSCO closed its old plant in Guangzhou and started production in its new plant in Qingdao

COSCO Kansai relocated its plant in Shanghai

Yuantong signed a strategic cooperation agreement with CSHT Marine Machinery Suppliers Ltd.

Strategic Transformation from a Conglomerate into a Shipping Services Provider

Acquired 100% equity interest in CSHT Marine Machinery Suppliers Limited

Jotun COSCO started to build a new plant in Qingdao

The Company’s name was changed to “COSCO SHIPPING International (Hong Kong ) Co., Ltd.

Subscription of 33% equity interest in NasurfarBiomaterial Technology (Changshu)

Entering into management services agreement with COSCO SHIPPING (Hong Kong)

23

This presentation contains certain forward-looking statements with respect to the financialposition, results of operations and business of COSCO SHIPPING International and certainplans and prospects of the management of COSCO SHIPPING International.

Such forward-looking statements involve known and unknown risks, uncertainties andother factors which may cause the actual result or performance of COSCO SHIPPINGInternational to be materially different from any future results or performance expressed orimplied by such forward looking statements. Such forward-looking statements are based onnumerous assumptions regarding COSCO SHIPPING International’s present and futurebusiness strategies and the political and economic environment in which COSCOSHIPPING International will operate in the future.

The representations, analysis and advice made by COSCO SHIPPING International in thispresentation shall not be construed as recommendations for buying or selling shares ofCOSCO SHIPPING International. COSCO SHIPPING International shall not beresponsible for any action or non-action made according to the contents of this presentation.

24