SITC International Holdings Company Limited September 2010 - PowerPoint PPT Presentation

SITC International Holdings Company Limited September 2010

Disclaimer This document does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of SITC International Holdings Company Limited (the “Company”) in any jurisdiction or an inducement to enter into investment activity, nor may it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Specifically, this document does not constitute a “prospectus” within the meaning of the U.S. Securities Act of 1933 or the Hong Kong Companies Ordinance (Chapter 32 of the Laws of Hong Kong), as amended. Any decision to purchase securities in the Company shall only be made at your own assessment of the market and the market position of the Company and at your own risk. Shareholders and investors are reminded to exercise caution when dealing in the securities of the Company. This document has been prepared by the Company solely for the reference of the shareholders and investors. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. The information contained in this document should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the document. These materials do not contain all of the relevant information relating to the Company or its securities. None of the Company or any of its affiliates, advisors or representatives will be liable (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection therewith. The Company may alter, modify or otherwise change in any manner the content of this document, without obligation to notify any person of such revision or changes. Any information on the past performance of the Company is not necessarily indicative of its future performance. This document contains statements that constitute forward-looking statements that are based on current assumptions and beliefs as well as information currently available to the Company. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition of the Company. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ significantly from those in the forward-looking statements as a result of various factors and assumptions. The Company has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances.

Contents Company Overview 1 2 Business Highlights Business Strategy 3 Financial Information 4 1

1. Company Overview

Our Business We are a leading shipping logistics company in the PRC, exclusively focused on the intra-Asia market, providing integrated transportation solutions to our customers. Freight forwarding Ship agency Container shipping Depot and Warehousing Trucking 1st 3rd 4th Largest Non-State- 3 rd Largest Container 4th Largest Container Owned Shipping Shipping Company in Shipping Company in Logistics Company in the PRC the Intra-Asia Market the PRC Source: Drewry. 2 Company Overview

Our Corporate Milestones SITC has achieved a leading market position within a short period of 19 years since its establishment in 1991.  Signed strategic cooperation 2010 agreement with Shanghai Port to jointly develop depot, warehousing and other logistics businesses  Became market leader along 2009 PRC-Vietnam and PRC- Philippines routes  Became market leader along PRC- 2008 Japan route  Strategically relocated operating center 2007 from Qingdao to Shanghai  Became largest PRC-based non-state- 2006 owned shipping logistics company  Expanded into ASEAN Market 2004 2003  Established Qingdao logistics park  Purchased first vessel and started serving PRC-Japan 1992 trade lane  Began our depot and warehousing services  SITC Corp was established to operate freight forwarding 1991 business 3 Company Overview

2. Business Highlights

Business Highlights 1 Exclusively Focused on the Fast Growing Intra-Asia Market 2 Integrated “One-Stop” Logistics Services 3 Distinctive High Frequency, High Density Service Model 4 Stable and Experienced Management Team 4 Business Highlights

1 Intra-Asia Market: Largest and Fastest Growing The intra-Asia market (1) is the largest, fastest growing and most resilient trade market in the world. Intra-Asia: The Largest Trade Market Intra-Asia: Fastest Growing, Most Resilient Market 2009 Container Shipping Volume Intra-Asia: Fast Growing, Economically Active Market (Million TEU) 2006 – 2008 CAGR Container Shipping Volume Growth (%) 25.1% 17.4% 6.0% 5.6% 5.5% 3.0% 2.5% 1.5% (1) Intra-Asia Far East - World Core East- Transatlantic Transpacific (2) Europe container West 2009 World trade 13.0% Container Trade: 134.0 million TEU Intra-Asia: Most Resilient to Economic Fluctuations 58.0% 2008 – 2009 Container Shipping Volume Growth (%) 8.9% 9.9% 2.7% (5.2%) (9.0%) (11.1%) (12.4%) (13.3%) Intra-Asia Transpacific (19.0%) Far East - Europe Transatlantic Intra-Asia Far East - World Core East- Transpacific Transatlantic Other Europe container West trade Source: Drewry. Note: (1) Includes Northeast Asia and Southeast Asia Market; refers to trade within China, Japan, Korea, Taiwan, Hong Kong and ASEAN countries. (2) Core East-West trade refers to the Transpacific, Far East – Europe, and Transatlantic trade routes. 5 Business Highlights

1 Our Leading Position in the Intra-Asia Market The Northeast Asia Market is mature and has stable growth while the Southeast Asia Market is fast growing and emerging. We have a leading position in the Northeast Asia Market. Since 2004, we entered into the Southeast Asia Market and have achieved strong growth. Our Container Shipping Volume Northeast Asia Market (1) (Thousand TEU) (Thousand TEU) 2006 – 2008 CAGR:  Connects the PRC and Japan, % ( 6 5 the second and third largest 2007 – 2009 % of 2009 . . 7 9 % 2.0% 8,239 ) economies in the world, CAGR Volume 8,057 respectively （ % ） (%) 1,187 7,743 7,730 95.2% 34.9% 7,519 1,080 415 322 2006 2007 2008 2009 2010E 845 109 Southeast Asia Market (1) 2.4% 65.1% 646 (Thousand TEU)  Growth driven by strong economic growth in Southeast Asia countries, especially 2006 – 2008 CAGR: 279 (4.5%) 9.8% Thailand and Vietnam 17,349 8.2% 772 758  737 These countries have fast 16,543 growing industrial sectors with 15,806 15,760 high import demand for raw materials 367 14,134  Lower tariffs from China – ASEAN Free Trade Agreement in January 2010 to further boost trade between PRC and 2007 2008 2009 1H 2010 2006 2007 2008 2009 2010E ASEAN countries Northeast Asia Southeast Asia Source: Drewry. (1) The Northeast Asia Market refers to trade solely between the PRC, Japan and China while the Southeast Asia Market refers to trade within intra-Asia that involves Taiwan, Hong Kong or ASEAN countries 6 Business Highlights

2 Integrated “One-Stop” Logistics Services Our integrated “one-stop” services provide high quality and convenient supply chain solutions for our customers. Freight Land Customs Ship Depot and Shipping Manufacturer Forwarding Transportation Clearance Agency Retailer Warehousing Our sea freight logistics and land-based logistics business are closely interconnected and are equally important profit drivers for our business. Our ability to provide one-stop shop services is crucial to maintaining our long-term customer relationships. Our presence along the logistics value chain allows us to provide high quality and consistent service. 7 Business Highlights

2 Extensive Logistics Service Network Our integrated “one-stop” services cover 7 countries and 37 major ports and cities. Our Integrated Logistics Service Network Our Freight Forwarding Network  Extensive freight forwarding services network  Covers 22 major cities in China, Japan and Korea Our Shipping Agency Network Qinhuangdao Dalian Incheon Tianjin Weihai Yantai Tanggu  Covers 27 major ports in the PRC, Japan, Hong Seoul Qingdao Shidao Osaka Tokyo Pyeongtaek Kong, Korea, Vietnam, Thailand and Philippines Lianyungang Kobe Busan Shaoxing Nanjing Wuhan Shanghai  Our shipping agency business helps to source Suzhou Ningbo volumes for our freight forwarding business, and Yiwu Wenzhou is highly complementary to our freight forwarding Xiamen Dongguan network Shenzhen Guangzhou Zhuhai Foshan Hong Kong Hanoi Haiphong Bangkok Manila Laem Chabang Ho Chi Minh City Freight forwarding Shipping agency Freight forwarding and shipping agency 8 Business Highlights