Dvmp · RUS:FESH

Dvmp — FESCO Transportation Group — H1 2015 Earnings Presentation

18 slides from Dvmp's earnings presentation, Aug 28, 2015

  1. Slide 1: FESCO Transportation Group 1H 2015 Operational and Financial Results

    FESCO Transportation Group 1H 2015 Operational and Financial Results Investor conference call August 28, 2015

  2. Slide 2: Today's Speakers

    Today’s Speakers Victor Belyakov Alexander Isurin Vice President for Senior Vice President for Finance Commerce 2

  3. Slide 3: Key Highlights

    Key Highlights • FESCO maintained its leading market position in the Far East though it was impacted by challenging economic environment • Well diversified asset base helps to balance divisional results in turbulent economic conditions • Cost cutting program is well on track with c. 30% of $40m targ

  4. Slide 4: Market & Divisional Overview

    Market & Divisional Overview

  5. Slide 5: Russian Port Market Update

    Russian Port Market Update Container Throughput in Russian Ports, 1H 2015 (‘000 TEU) Shares of Major Container Operators in Far East, 1H 2015 2 682 -26% 407 -18% 1 986 778 334 29,7% 28,5% VMTP -21% 612 VSK Vladivostok Fishing 1 497 -31% 10,2% Other 1 040 31,5% 1H2014 1H2015 Baltic and Arctic Far Eas

  6. Slide 6: Russian Rail Market Update

    Russian Rail Market Update Freight Transportation Freight Transportation Containerised Cargo Gondola Railcars Rates, Volume (m tons) Turnover (bn tons-km) Transportation Volume (‘000 TEU) RUB/day/railcar 110 205 300 800 106 195 280 700 600 260 102 185 500 240 400 98 175 220 300 200 200 94 165 June 2

  7. Slide 7: Global Container Freight Market Update

    Global Container Freight Market Update Deep Sea Rates vs. Intermodal Transportation Rates ($ / 40’ TEU) $7 000 Spread between FESCO and Deep Sea Services $6 000 FESCO Service* (FOB Shanghai - Vladivostok - FOT Moscow) Deep Sea Services (FOB Shanghai - St-Petersburg - FOT Moscow) $5 000 $4 000 $3 000

  8. Slide 8: Operational Performance by Division for 1H 2015

    Operational Performance by Division for 1H 2015 Key Operating Metrics 1H 2014 1H 2015 YoY change Port Vladivostok port container volumes (TEU) 242,612 174,570 -28.0% Division Vladivostok port general and bulk cargo volumes (‘000 tons) 1,275 1,055 -17.2% Rail Rail container transportation (‘000 TEU)

  9. Slide 9: Financial Results Overview

    Financial Results Overview

  10. Slide 10: Consolidated Financial Results for the Group

    Consolidated Financial Results for the Group Revenue EBITDA and EBITDA margin 4000 80 3500 3663 70 -13% +23% 22 103 72,4 +45% 513,1 -25% 3000 60 62,7 17 947 2500 50 2534 383,4 16,6% 16,4% 2000 40 14,1% 14,1% 30 1500 20 1000 RUBm RUBm 10 500 $m $m 0 0 1H2014 1H2015 1H2014 1H2015 1H2014 1H2015 1H2014

  11. Slide 11: Financial Performance by Division for 1H 2015

    Financial Performance by Division for 1H 2015 Division Revenue ($m) YoY change EBITDA ($m) YoY change EBITDA margin YoY change Port 59.4 -34.0% 31.7 -21.9% 53.4% +8.3 pp Rail 58.0 -31.8% 11.3 -53.9% 19.5% -9.3 pp Liner and Logistics 198.4 -34.9% 8.1 -13.8% 4.1% +1.0 pp Shipping 48.2 +44.7% 15.9 +448

  12. Slide 12: Debt Overview

    Debt Overview

  13. Slide 13: Bond Buybacks

    Bond Buybacks Summary Overview • Following announcement of Eurobonds buyback on 31 March 2015 FESCO redeemed 2018 Notes with a nominal value of $129m and 2020 Notes with a nominal value of $91m for total consideration of $111m in April and May 2015 • In addition FESCO commenced a Public tender offer

  14. Slide 14: Leverage Overview

    Leverage Overview Summary Overview Consolidated Group Financial Position ($m) 30-Jun-2015 • $626.8m of the acquisition financing and part of pre- existing loans refinanced by Senior Secured Notes due Senior Secured Notes 626.8 2018 and 2020 Ruble Bonds 125.5 • RUB 2bn bond (BO-02) due 2016-2017 issu

  15. Slide 15: Optimization Initiatives

    Optimization Initiatives

  16. Slide 16: Managing Costs and CAPEX

    Managing Costs and CAPEX Costs and Expenses Optimisation Programme Capital Expenditures • Focus on operational efficiency improvement with ($m) 1H2014 1H2015 Port labour productivity growth, overheads reduction Division • Improving productivity of equipment, reduction of Port Division 9.8 2.0 mainte

  17. Slide 17: Managing FX Risk

    Managing FX Risk Revenue, 1H2015 Operating Costs, 1H2015 Port 23% 77% Port 100% Bunkering 23% 77% Bunkering 23% 77% Rail 98% 2% Rail 88% 12% LLD 43% 57% LLD 37% 63% Shipping 100% Shipping 37% 63% Group 39% 61% Group 44% 56% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% RUB USD Continued focus on a

  18. Slide 18: Contacts

    Contacts For more information please contact IR Department: Daria Fadeeva, Head of IR ir@fesco.com +7 (495) 926 80 00

FESCO Transportation Group — H1 2015 Earnings Presentation on 6ix