International Container Terminal Services, Inc. · PSE:ICT

International Container Terminal Services — Q1 2019 Earnings Presentation

23 slides from International Container Terminal Services's earnings presentation, May 2019

  1. Slide 1: 1Q 2019 Investor Presentation

    1Q 2019 Investor Presentation May 2019

  2. Slide 2: Agenda

    AGENDA Recent Financial Performance Liquidity and Capital 2 Resources 3 Other Matters 4 Questions and Answers

  3. Slide 3: Volume

    Volume First Quarter (in TEU) 2,272,647 2,325,540 2,478,672 7% 2% 434,287 337,282 387,381 18% 17% 15% 745,615 772,761 696,850 30% 30% 34%  1Q 2019 vs 1Q 2018 consolidated volume up 7%; Organic volume grew 5% 1,241,309 1,298,770 1,162,604  Volume growth was due to improvement in trade 53% 52% 51% a

  4. Slide 4: Revenues

    Revenues First Quarter (in US$’000) 297,205 325,380 383,784 18% 9% 75,521 20% 68,978 51,569 21% 17% Yield:TEU 155 112,015 (in US$) 29% 143 142 135 135 136 103,254 101,364 130 130 31% 125 127 35% 119 196,248 142,382 155,038 51% 48% 48%  Consolidated revenues 18% higher in 1Q 2019 vs 1Q 2018 1Q 2017

  5. Slide 5: Consolidated P&L Highlights

    Consolidated P&L Highlights (In US$ 000, except Volume & EPS) 1Q 2018* 1Q 2019 % Change  Volume up 7% due to to improvement in trade activities, new Volume (In TEU) 2,325,540 2,478,672 7% shipping lines and services and continuous volume ramp-up at certain terminals; Organic volume growth at 5%. 

  6. Slide 6: Financing Charges & Other Expenses

    Financing Charges & Other Expenses (In US$ ‘000) 1Q 2018 1Q 2019 % Change Financing Charges & Other Expenses 31,073 28,322 -9%  Interest Expense on Loans/Bonds 26,468 24,664 -7%  Lower due to prepayment of the CMSA project finance loan in May 2018  Capitalized Borrowing Cost (271) (665) 145%  Am

  7. Slide 7: Proactive FX Risk Management

    Proactive FX Risk Management ICTSI’s revenue and cash expenses are favorably matched, which provides a natural currency hedge that mitigates against volatility attributable to FX movements. Revenue Currency by Subsidiary Cash Expense Currency by Subsidiary US$ Revenues from Port Operations Subsidiar

  8. Slide 8: FX Movement

    150 140 130 120 110 100 160 90 Jan-15 Feb-15 BRL Mar-15 PKR PHP EUR AUD RMB MXN Apr-15 Currency May-15 Jun-15 Jul-15 Aug-15 111.41 51.45 18.72 6.36 0.81 1.27 3.24 Sep-15 Oct-15 Nov-15 Dec-15 January-March 52.37 19.20 6.75 0.88 1.40 3.77 139.69 Jan-16 FX Movement Feb-16 Mar-16 Apr-16 May-16 Jun-16 Av

  9. Slide 9: Yield/TEU Comparison

    Yield/TEU Comparison 1Q 1Q 2018 2019 % change Volume (TEU ‘000) 2,326 2,479 7% Revenues (US$ millions) 325 384 18% Yield/TEU (US$) 140 155 11% EBITDA (US$ millions) 178 223 25% EBITDA Margin 55% 58% FX Negative impact of PHP, AUD, BRL and EUR: -4 Increase revenues from general cargoes, storage and +

  10. Slide 10: Yield/TEU and EBITDA Margin

    Yield/TEU and EBITDA Margin Yield/TEU Evolution 160 0.85 0.90 150 12.55 140 154.83 130 142.33 120 Yield/TEU Organic New Terminals Forex Yield/TEU Dec 2018 Mar 2019 EBITDA Margin Evolution 59% 58% 0.4% 0.5% 57% 56% 2.6% 55% 58.0% 54% 53% 54.5%* 52% EBITDA Margin % Organic New Terminals Forex EBITDA M

  11. Slide 11: Agenda

    AGENDA Recent Financial 1 Performance Liquidity and Capital Resources 3 Other Matters 4 Questions and Answers

  12. Slide 12: Balance Sheet Summary

    Balance Sheet Summary (In US$ millions) Dec 31, 2018(1) Mar 31, 2019 Intangible and Property and Equipment 3,344 3,365 Lease Assets 523 517 Cash and Cash Equivalents 447 295 Other Current and Non-current Assets 1,002 1,508 Total Assets 5,316 5,685 Total Short–term and Long–term Debt 1,307 1,567 Conc

  13. Slide 13: Principal Redemption Profile

    Principal Redemption Profile Principal Redemption Profile Proforma as of Apr 30, 2019 (US$ millions) 800 600 € 260M Term Loan Perp NC24 (3) 400 Perp NC21 (2) Perp NC19 (1) Perp 200 NC22 (4) 0 2019 2020 2021 2022 2023 2024 2025 2026 ST LT / Bonds Perp Debt Breakdown (5) by Rate Debt Breakdown (5) by

  14. Slide 14: Capital Expenditures

    Capital Expenditures (In US$ millions) 2018B 2018A 2019B $40 $8 $45 11% 2% 12% $4 $45 $40 1% 12% 15% US$380 $36 US$380 14% US$261 $182 $287 70% $335 75% 88% US$3M US$5M Greenfield Expansionary Maintenance New Projects Investment (SPIA) 2018 CAPEX mainly for: 2019 CAPEX mainly for: GREENFIELD: Austra

  15. Slide 15: Agenda

    AGENDA Recent Financial 1 Performance Liquidity and Capital 2 Resources Other Matters 4 Questions and Answers

  16. Slide 16: Entities with PFRS 16 Impact

    Entities with PFRS 16 Impact End of Lease Term Lease (in years) Term Victoria International Container Terminal Ltd. (VICT) - 26 2040 Australia Contecon Mazanillo S.A. (CMSA) - Mexico 34 2044 Tecon Suape S.A. (TSSA) - Brazil 30 2031 Baltic Container Terminal (BCT) - Poland 20 2023 Mindanao Internatio

  17. Slide 17: Impact of PFRS 16 on 1Q 2018 P&L

    Impact of PFRS 16 on 1Q 2018 P&L (In US$ 000) March 31, 2018 EBITDA – Pre PFRS 16 147,771 Port Authorities’ Share in Gross Revenues 6,879 Equipment and Facilities – related expenses 22,888 Fixed and Guaranteed Port Fees 29,768 EBITDA – Post PFRS 16 177,539 NET INCOME – Pre PFRS 16 50,883 Fixed and G

  18. Slide 18: Impact of PFRS 16 (1Q 2018 P&L)

    Impact of PFRS 16 (1Q 2018 P&L) L Lease expense under e A old standard a s B e E x C Depreciation of lease p assets e n s Interest accretion on e lease liabilities Lease Term A = Lease expense under old standard B + C = Lease expense under new standard (PFRS16)

  19. Slide 19: Impact of PFRS 16 on 2018 Balance Sheet

    Impact of PFRS 16 on 2018 Balance Sheet Dec 31, 2018 PFRS 16 Dec 31, 2018 (In US$ millions) (Audited) adjustments (Restated) Intangible and Property and Equipment 3,344 - 3,344 Lease Assets - +523 523 Cash and Cash Equivalents 447 - 447 Other Current and Non-current Assets 912 +90 1,002 Total Assets

  20. Slide 20: Impact of PFRS 16 on 1Q 2018 Cash Flows

    Impact of PFRS 16 on 1Q 2018 Cash Flows Mar 31, 2018 PFRS 16 Mar 31, 2018 (In US$ ‘000) (Audited) adjustments (Restated) Net cash flows from operating activities 153,935 13,986 167,921 Net cash flows from investing activities (87,095) - (87,095) Net cash flows from financing activities 305,055 (13,9

  21. Slide 21: Recent Events

    Recent Events Complied with the last of the Conditions Precedent (CPs) needed prior to the transfer a further 15.7% May MNHPI shares to ICTSI; ICTSI's shareholdings in MNHPI has been increased from 34.83% to 50% Apr ICTSI Global Finance B.V. availed of US$300M Guaranteed Term Loan ICTSI declared a r

  22. Slide 22: Agenda

    AGENDA Recent Financial 1 Performance Liquidity and Capital 2 Resources 3 Other Matters Questions and Answers

  23. Slide 23: Thank you

    International Soniine feria Thank you

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