EUKOR Presentation Customer Day - Wallhamn. Wallhamn, Sweden April 25 th, 2013

Transcription

1 EUKOR Presentation Customer Day - Wallhamn Wallhamn, Sweden April 25 th, 2013

2 EUKOR Vision Customers to Nominate EUKOR as the Preferred Operator through: Excellent Service Quality Cost Efficient Operations Proactive Risk Management

3 Company facts EUKOR carries around 4.4 million car equivalent units annually (2012) EUKOR has an annual turnover of over USD 2.4 billion (2012) EUKOR operates over 80 specialized car carrier vessels in global services (2012) EUKOR traditionally had Hyundai and Kia Motors as its main customers but today serves the majority of the larger automotive OEMs EUKOR has a core staff of 137 in Korea + 57 abroad, with several key markets covered by agents EUKOR s shareholders - and closely related group companies - provide a unique platform for competence development, service / quality enhancements and growth

4 Strategy Provide the best ocean transportation service available in the relevant markets to our customers with regards to: Space availability Transit time Quality Adjusting to new transport requirements Optimize fleet flexibility and utilization Leading operator in emerging markets Continuous improvement with regards to service quality Increased focus on environmental impact and sustainable development

5 Global offices and partners WSS Hamburg WWL Istanbul Gulf Agency Company Beijing Pyeongtaek Mokpo Shanghai SEOUL Ulsan Tokyo Los Angeles Inchcape Shipping New Jersey Dubai Chennai Diamond Shipping WSS Ian Taylor Sao Paulo Head office Branch offices [10 overseas + 3 domestic] Agent areas

6 Global Network of Group Companies Central and regional offices Technical sites (VPCs) WWL Ocean routes EUKOR Ocean routes Terminals Technical sites (Plant VPCs) Main ports Inland distribution ARC Ocean routes For illustrative purposes not accurate 5

7 Service routes

8 EUKOR Customers

9 Global Market Update GDP vs. PCTC Supply/Demand Gradual upturn in global growth during 2013 as the factors underlying soft global activity subside Downside risks remain including renewed setbacks in Europe and excessive near-term fiscal contraction in the US Global transport volume of cars is to make a slow but steady growth mainly spurred by strong China and US sales/strong exports from emerging countries The gap between supply and demand is to get narrower whereby vessel utilization goes higher 8,0 Global GDP Growth (Percent; quarter over quarter, annualized) Global PCTC Supply and Demand 6,0 6,6 4,0 4,2 2,0 2,2 0, Q Q Q Q4 World Advanced Economies Emerging Economies [Source: World Economy Outlook Jan 2013, IMF] [Source: The PCTC market Nov 2012, RS Platou]

10 The Car Carrier Industry World PCC Fleet and Prospect PCTC capacity is not likely to increase substantially until 2015 due to slow new building activity Several of the recent new building orders are post-panamax vessels allowing more cargo and more efficient operation Lifting Capacity (Unit) No scrap +30 Years years Lifting Capacity (Unit) N/B OrderBook End 2012 End 2013 End 2014 End 2015 [Source: Fearnley Research July 2012] 28

11 The Car Carrier Industry World PCC Fleet and Operators EUKOR stands as the second biggest operator in terms of operating capacity When the EUKOR capacity is combined with WWL, the combined portion of global lifting capacity reaches about 25% Operators Portion Capacity Avg. Size Remarks (No of Vessel) NYK 16.3% 599,897 5, EUKOR 13.5% 497,455 6, MOL 12.9% 475,809 5, K-Line 11.2% 413,134 5, WWL 10.8% 400,140 6, HAL 7.6% 281,438 6, Hyundai Glovis 6.8% 252,554 5, Grimaldi 4.8% 177,428 3, Others 16.1% 592,405 4, TOTAL 100.0% 3,690,260 5, [Source: HESNES - The Car Carrier Market Dec, 2012]

12 The Car Carrier Industry World PCC Fleet Development An extensive recycling scheme for older tonnage was carried out between 2008 and 2011 as a response to the rapidly declining demand, and to make room for newbuildings already in the orderbooks A total of 76 vessels were older than 25 years by end 2012 (12% of world fleet) Current orderbook ( ) at 49 vessels of which 38 ships are scheduled for delivery in No. of vessels Year [Source: Hesnes Shipping AS ( ) and Gram Car Carriers] 11

13 The Car Carrier Industry Newbuilding Status EUKOR has currently the biggest N/B order-book in the industry Operators NB Total Operator NB on Order Tonnage suppliers NB on charter Remarks (No of Vessel) EUKOR NYK Hyundai Glovis HAL MOL K-Line WWL Grimaldi 45 Others Vessel unfixed 8 8 Total [Source: HESNES - The Car Carrier Market Dec, 2012]

14 EUKOR Fleet Composition Average Vessel Capacity and Vessel Age Unit: CEU Year 18, ,0 14, , , , , ,0 Average vessel capacity Average fleet age

15 EUKOR Fleet and Newbuilding Programme Expanding on Behalf of our Customers Over 80 specialized car carriers (PCC / PCTC) Capacity range between 2,000 8,000 CEU Mix of wholly owned and chartered vessels Over the past two years, EUKOR has taken delivery of 5 new vessels In the past year, EUKOR has committed to 9 further newbuilding contracts for delivery in 2013 and 2014: - 5,700 unit capacity: 2 vessels - 6,600 unit capacity: 4 vessels - 7,350 unit capacity: 3 vessels (Post Panamax)

16 In Conclusion the current situation Industry is still somewhat recovering (2008 crisis, earthquakes, yen effect, Thailand floods etc) Generally limited N/B orders across the industry. EUKOR stands out from the crowd Vessel sizes ever increasing Industry struggles with cost increases from environmental regulations and piracy issues EUKOR continuously strives to amend/improve service products

17 In Conclusion the way forward The Market is strongly driven by China and the Far East, a market which is: Competitive High Volume Fast Growing Customer critical (product to market, difficult to forecast) EUKOR Strategy: Maintain our leading position in key import/export trades Secure long term contracts with selected successful customers Be active in securing new tonnage and increase capacity to stand well prepared Our Proposal: A market-leading service product eastbound from Europe on the back of steady commitments and cargo flows from the Far east. We listen to and adhere to what customers want quickly Develop our product through continuous improvement and best practices Group Synergies for our customers benefit

18 Regional Hub in North-East Asia The Gateway to Korea Pyeongtaek International Ro-Ro Terminal

19 Automobile Factories & Ro-Ro Ports in Korea (Incheon) (Hwasung) Pyeongtaek Port (Asan) Seoul (Sohari) (Pyeongtaek) (Kunsan) (Jeonju) (Ulsan) (Mokpo) (Masan) (Busan) Automobile Factories :11 Ro-Ro Ports : 7 18

20 Pyeongtaek Port Hyundai Steel Berth Y 2013 Y 2015 Y 2020 Total Container Ro-Ro Coil & Steel Bulk Total (71) +13(84) 84 Hinterland Phase 1 Phase 2 Phase 3 Size 1,405,000m2 1,223,000m2 1,851,000m2 Completed by Y 2010 Y 2020 Not Fixed 19

21 Pyeongtaek International Ro-Ro Terminal 20

22 Pyeongtaek Ro-Ro Terminals 290m 240m 290m 290m 295m Container KMC 116,000 m2 KMC 96,000 m2 116,000 m2 116,000 m2 (under plan) 165,000 m2 400m T6 T5 T4 T3 T2 T1 21

23 PIRT Terminal Facts T 3 T 2 Opening Nov, 2008 Dec, 2010 Berthing Capability 8,000 CEU Ro-Ro Vessel 8,000 CEU Ro-Ro Vessel Investment USD 59.0 million USD 61.0 million Developer EUKOR Car Carriers Inc. (90%) Wallenius Wilhelmsen Logistics (10%) EUKOR Car Carriers Inc. (90%) Wallenius Wilhelmsen Logistics (10%) Max. Storage 5,000 Units 5,000 Units Handling Capacity 300,000 Units 300,000 Units 22

24 PIRT Facts Establishment of PIRT : May % 40% 40% PIRT Staff : 101 employees 50% Vessel Calls : 800 ships 50% Handling Volume : 630,000 units 50% 50% 23

25 Business Statistics of PIRT Volume per Trade Volume per Cargo Type 14% 8% 4% 3% 2% 23% 12% 48% 63% 23% EXPORT IMPORT T/S 24

26 Floating Pontoons Dimension Tidal difference >8 meters Size : 30 m X 30 m Safety Working Load : 120 ton Max Handling Cargo Length : 23 m (74.45ft) 25

27 PIRT Security System 24 hours security 33 CCTVS Certificate of ISPS (The International Ship and Port Facility Security) Maritime Patrols 26

28 PIRT Customers Export 27

29 PIRT Customers Import 28

30 PIRT Customers HUB 29

31 PIRT Customers Carriers 30

32 Thank You for your attention