International Container Terminal Services, Inc. · PSE:ICT
International Container Terminal Services — Q3 2023 Earnings Presentation
24 slides from International Container Terminal Services's earnings presentation, Nov 8, 2023
Slide 1: 3Q 2023 Investors' Briefing
3Q 2023 Investors’ Briefing 08 November 2023
Slide 2: Consolidated Financial & Operational Highlights
Consolidated Financial & Operational Highlights 3Q 2023 +2% +1% +3% +3% +0.05% 64% +0.3% VOLUME YIELD (1) REVENUE EBITDA NET INCOME (2) EBITDA MARGIN DILUTED EPS 9M 2023 +7% 0% +7% +7% +4% 63% +6% ▪ Diversified portfolio and operating strategy continued to support industry-wide outperformance ▪ EBIT
Slide 3: Quarterly Results
Quarterly Results (In US$ million except Volume, 1Q 2Q 3Q 4Q 1Q 2Q 3Q Yield per TEU & EBITDA margin) FY2018 FY2019 FY2020 FY2021 2022 2022 2022 2022 2023 2023 2023 Volume (in TEU ‘000) 9,737 10,178 10,194 11,163 2,833 2,920 3,104 3,360 3,102 3,174 3,176 Gross Revenues 1,386 1,481 1,506 1,865 528 535
Slide 4: Project Update: DCT Pier 2
Project Update ▪ Preferred Bidder for the 25-year J.V. to develop and operate Durban Container Terminal (DCT) Pier 2 ▪ Transnet: majority ownership of 50% plus one share; ICTSI: ownership of 50% minus one share ▪ DCT Pier 2 is South Africa’s largest terminal: ▪ handles 72% of the port’s throughput a
Slide 5: Sustainability Updates
Sustainability Updates ▪ Decarbonization Targets for 2030 and 2050 to be released by year-end ▪ Four ICTSI Terminals (CMSA, CGSA, ICTSI Rio, TSSA) now officially certified as carbon neutral representing 23% of consolidated volume and 26% of consolidated gross revenues ▪ Deployment of hybrid RTGs in
Slide 6: Agenda
Agenda Recent Financial Performance Liquidity and Capital Resources Questions and Answers Appendix
Slide 7: Recent Financial Performance
Recent Financial Performance
Slide 8: Consolidated P&L Highlights
Consolidated P&L Highlights (In US$ 000, 3Q 2022 3Q 2023 % Change except Volume and EPS) 9M 2022 9M 2023 % Change 3,103,721 3,176,076 +2% Volume (in TEU) 8,856,303 9,451,912 +7% Gross Revenues from 576,699 594,878 +3% 1,639,607 1,759,850 +7% Port Operations 154,270 163,291 +6% Cash Operating Expense
Slide 9: Volume
Volume Nine Months Third Quarter (in ‘000 TEUs) (in ‘000 TEUs) 8,267 8,856 9,452 2,807 3,104 3,176 +7% +2% +11% +7% 659 622 1,922 20% 20% 21% 2,003 686 -6% 23% -4% 1,986 24% -4% 24% +1% 854 951 28% 30% 2,694 835 +2% +11% 29% 2,554 30% 2,523 29% +5% 31% +1% +24% +1% 1,591 1,603 1,285 51% 50% 46% +12%
Slide 10: Revenues
Revenues Nine Months Third Quarter (in US$ millions) (in US$ millions) 1,365 1,640 1,760 482 577 595 +3% +7% +20% +20% 117 123 368 +5% 21% 20% 21% +6% 345 +6% 110 21% +10% 23% 194 225 314 34% +16% 38% 23% 153 +27% 613 32% 561 35% 34% +9% 440 +28% 32% 266 -7% 247 219 +21% 46% 45% 42% +20% 733 +6% 779
Slide 11: Yield / TEU Analysis
Yield / TEU Analysis 3Q 3Q % 9M 9M % 2022 2023 change 2022 2023 change 3,104 3,176 +2% Volume 8,856 9,452 +7% (TEUs ‘000) 562,686 579,782 +3% Revenues 1,603,143 1,710,195 +7% (US$ ‘000) 181 183 +1% Revenue / TEU 181 181 0% (US$) 181 +4 -8 +6 183 181 +10 -11 +1 181 Yield/TEU, Organic and MNHPI Forex
Slide 12: Yield / Ton Analysis
Yield / Ton Analysis 3Q 3Q % 9M 9M % 2023 2023 change 2022 2023 change 2,282 2,014 -12% Volume 5,878 6,613 +13% (Tons ‘000) 14,012 15,096 +8% Revenues 36,464 49,655 +36% (US$ ‘000) 6.1 7.5 +22% Revenue / Ton 6.2 7.5 +21% (US$) 6.1 +1.2 +0.2 7.5 6.2 +1.5 -0.2 7.5 Yield/Ton, Organic Forex Yield/Ton, Y
Slide 13: EBITDA and Free Cash Flow
EBITDA and Free Cash Flow EBITDA & EBITDA Margin Free Cash Flow (in US$ millions) (in US$ millions) 7% 1,107 722 1,038 11% 653 63% 63% 9M 2022 9M 2023 9M 2022 9M 2023 13
Slide 14: Financing Charges & Other Expenses
Financing Charges & Other Expenses 9M 2022 9M 2023 % Change (In US$’ 000) Financing Charges & Other Expenses 130,830 132,684 +1% ▪ Interest Expense on Loans/Bonds 88,746 99,161 +12% ▪ Capitalized Borrowing Cost (305) (1,796) -489% ▪ Amortization of Debt Issue Cost 6,000 9,141 +52% ▪ Impairment Charg
Slide 15: Capital Expenditure
Capital Expenditure 2022 Actual 2023 Budget 9M2023 Capex at $234M or 58% of Budget $42M $52M 11% 13% $82M 21% US$386M US$400M $262M 68% $348M 87% Expansionary New Projects Maintenance 2022A CAPEX mainly for: 2023B CAPEX mainly for: EXPANSIONARY: VICT, MICT, CMSA, ICTSNL, MICTSL, IDRC EXPANSIONARY: V
Slide 16: Liquidity and Capital Resources
Liquidity and Capital Resources
Slide 17: Balance Sheet Summary
Balance Sheet Summary Strong balance sheet with functional and reporting currency in USD Balance Sheet Highlights Debt Ratios (In US$ million) Dec 31, 2022 Sept 30, 2023 Dec 31, 2022 Sep 30, 2023 Total Assets 7,054 7,101 Gearing: Debt/SHE 1.43 1.18 Current Ratio: Total Liabilities 5,327 5,243 1.00 1
Slide 18: Principal Redemption Profile
Principal Redemption Profile (In US$ million) Conversion of US$300M ST to LT loans on Sept 6, 2023 Perp NC26 (2) 298 100 Perp NC24 (1) 400 290 400 200 240 300 272 30 30 59 46 36 34 33 27 18 19 19 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Relationship Banks Bonds Perp As of September 30, 2023
Slide 19: Summary
Summary Diversified portfolio and operating strategy continued to support a strong performance and mitigated effects of global headwinds Cost management efforts kept 3Q2023 cash opex flat despite volume and revenue growth; EBITDA margin rose to mid-60% All-time high EBITDA and Net Income Balance she
Slide 20: Questions and Answers
Questions and Answers
Slide 21: Appendix
Appendix
Slide 22: EESG: 9M2023 Highlights
EESG: 9M2023 Highlights ENVIRONMENT ECONOMY SOCIETY GOVERNANCE • The Company continues to ramp up its efforts • More expansion efforts of ICTSI terminals were • ICTSI continues to commit to its stakeholders and • Sustainability maintains at the core of ICTSI's towards decarbonization through green e
Slide 23: Proactive FX Risk Management
Proactive FX Risk Management Revenue Currency by Subsidiary Cash Expense Currency by Subsidiary Revenues from Port Operations ICTSI’s revenue and cash USD EUR Local Currency Subsidiaries Local Currency EUR USD (9M 2023 Revenue Breakdown by Currency) expenses are favourably 45% 55% PHP MICT 90% PHP 1
Slide 24: Thank you!
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