samudera shipping line limited - samudera indonesia group

Annual General Meeting 2012

Corporate Presentation

SAMUDERA SHIPPING LINE LIMITED

Corporate Overview

Industry Trends

Operations Review

Financial Highlights

Outlook & Strategy



Corporate Profile

• Regional provider of efficient and reliable sea transportationsolutions:

• Extensive container shipping network covering Indian Sub-continent, South East Asia, Middle East and the Far Eastmarkets

• Widest network coverage in Indonesia

Regional Container Shipping

Indonesia DomesticContainer Shipping

Bulk Carrier & Tanker


Our International Network

Middle East• UAE

• Iran

• Kuwait

• India

• Bangladesh

• Pakistan

• Sri Lanka

South East Asia• Singapore (HQ)

• Indonesia

• Thailand

• Malaysia

• Vietnam

• Myanmar

• Philippines

• China

• Korea

• Hong Kong

• Taiwan

India-Sub Continent

Far East



• Established feeder services transporting containerised cargo between hub port and spoke ports– provide services to Main Line Operators– main hub port in Singapore– spoke ports throughout our international network

• Liner services transporting cargo port to port – provide service to cargo owner, traders

and freight forwarders

• Fleet of 21 vessels, capacity of more than 27,000 TEUS

• More than 20 service routes, coveringmore than 30 ports


Indonesia Domestic Container Shipping

• Fleet of 14 vessels, with total capacity of ~4,200 TEU– smaller-sized vessels due to shallow waters at Indonesian ports – more efficient operations and faster vessel turnaround have resulted in total

volume handled of 152,279 TEUs• 10 service routes

– from Jakarta and Surabaya base to outlying ports in Sumatra, Kalimantan and Sulawesi islands

• Capitalize strengths of parent company, Samudera Indonesia– extensive network– strong support services: terminal, warehousing, container depot, trucking

and forwarding

• Cabotage law fully implemented in Indonesia– requires vessels plying Indonesia waters to be Indonesia flagged– huge domestic market potential with an estimated throughput from the

seven busiest port in Indonesia of more than 8,4 million TEUs



• Fleet of 16 tankers and 6 dry bulk carriers• Chartered out on spot and medium to long-

term on time charter and contracts of affreightment

• Back-to-back charter

• Marine operations services– harbour tug services, crewing, ship

management and terminal operations


Competitive Advantage

• Better positioned to tap Indonesia’s robust economic growth• Unique position

– combination of Indonesia domestic and regional container shipping services– benefit from Indonesia cabotage law– well-established brand name

• Synergies with Samudera Indonesia group– extensive network in Indonesia– wide customer base– logistics capabilities

• Operational excellence – quality and high frequency

transportation services

• Focus on core competencies

Corporate Overview

Industry Trends


Outlook & Strategy

Operations Review



2011 Actions


• Converted 3 chartered vessels into owned vessels– better cost management, balance of owned and chartered vessel

portfolio in the long run

2010 2011No of calls 798 771 Lifting ('000 teus) 1,200 1,266 Load factor 65% 66%No of container (teus) 18,500 25,000

Operational performance


2011 Actions

Domestic Container Shipping

• Added capacity, 3 acquired and 2 chartered– capitalise on cabotage law– leverage parent company’s customer base and network– ride on opportunities provided by booming Indonesian economy

• Introduced 3 new services linking Jakarta-Padang, Jakarta-Batam, and Surabaya-Balikpapan

2010 2011No of calls 337 420 Lifting ('000 teus) 119 152 Load factor* 65% 60%No of container (teus) 7,700 9,000

Notes: drop in load factor due to some new routes introduced

Operational performance


2011 Actions


• Delivery of 2 dry bulk (supramax) vessels

• Re-flagged 1 chemical tanker to Indonesian registry – Tap on cabotage law opportunity, gives flexibility to deploy tankers

in both Indonesia and international waters, in response to market demand

2010 2011Time charter 2,452 2,728 Voyage charter 3,724 3,759 BTB charter * 1,514 983 Total 7,690 7,470

* BTB: Back‐to‐back

Employment days

Corporate Overview

Industry Trends

Operations Review

Outlook & Strategy




Consolidated Profit & Loss US$'000

2010 2011

Revenue 369,141 454,213 23%Cost of services (340,792) (426,436) 25%Gross profit 28,349 27,777 ‐2%

Marketing & Administrative (16,015) (16,922) 6%Other operating income (exps) 1,044 6,350 508%Finance, net (2,337) (2,835) 21%Profit before tax 11,041 14,370 30%

Profit for the year 9,393 12,572 34%


Segmented Results

US$'0002010 2011

Revenue 369,141 454,213 23%Regional Container 275,426 322,323 17%Domestic Container 35,960 57,597 60%Bulk & Tankers 57,755 74,294 29%

Profit before tax 11,041 14,371 30%Regional Container 7,786 959 ‐88%Domestic Container 1,002 9,092 807%Bulk & Tankers 2,253 4,319 92%


Balance Sheets

2010 2011Non‐current assetsVessels 289,786 350,501 21%Non vessels 25,418 24,193 ‐5%Others 7,620 3,378 ‐56%

322,824 378,072 17%Current assetsCash and bank balances 47,002 30,646 ‐35%Trade debtors 46,297 60,955 32%Others 23,031 29,411 28%

116,330 121,012 4%

TOTAL ASSETS 439,154 499,084 14%

US$'0002010 2011

Current liabilitiesTrade creditors 20,782 27,876 34%Term Loans 13,779 28,959 110%Others 23,465 23,965 2%

58,026 80,800 39%Non‐current liabilitiesTerm Loans 149,619 180,425 21%Others 1,070 711 ‐34%

150,689 181,136 20%

Equity 230,439 237,148 3%

TOTAL LIABILITIES AND EQUITY 439,154 499,084 62%

Corporate Overview

Industry Trends

Operations Review


Outlook & Strategy



Current External Conditions

• Slow US economic recovery, ailing Eurozone and slow China’s export growth affect global trade volumes

• Oversupply situation in almost all shipping segments continues in 2012

• Bunker price expected to remain high • Challenges in Indonesia

− port infrastructure issues − additional capacity in 2012− new bunker price regulation


2012 Priorities

• Optimize current fleet utilisation & service performance

• Review non-performing Assets, divest as necessary

• Explore new opportunity by leveraging low charter hire

• Strengthening Cash position:

- tighter investment

- stricter collection

• Overseas Network restructuring (China, Malaysia, India)


Strategic Direction• Strike a more balance business portfolio

- reduce exposure in low-return and capital intensive business segments

- increase exposure in higher-return business segments - re-deploy capacity from underperforming sectors to capitalize

on growth opportunities in Indonesia

• Explore funding alternatives for future expansion

• Leverage on the Parent Group strengths− synergise regional and Indonesia domestic container business− optimize cargo generation from Indonesia-wide network− explore its customer base− venture its logistics capabilities

• Improve brand awareness to customers, investors as well as public

• Increase use of technology− improve operational efficiency

samudera shipping line limited - samudera indonesia group

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