International Container Terminal Services, Inc. · PSE:ICT
International Container Terminal Services — Q2 2020 Earnings Presentation
31 slides from International Container Terminal Services's earnings presentation, Aug 6, 2020
Slide 1: 2Q 2020 Investors' Briefing
2Q 2020 Investors’ Briefing August 6, 2020
Slide 2: COVID-19 Update: Areas of Focus (4Cs)
COVID 19 Update Ensuring strength and resiliency: our response to COVID-19 Areas of Focus (4Cs) ▪ Cash Preservation o Focus on cash collection o Accelerate and maximize upstream of cash ▪ Capital Expenditure Re-assessment o Stringent review of groupwide capex budget ▪ Capital Structure Strength and
Slide 3: Highlights: Financial and Operational Performance
Highlights Financial and Operational Performance Net income attributable to Volume Revenues EBITDA equity holders -5% -4% -2% -12% EBITDA Margin 57% ▪ Volume and revenues lower in 1H2020 due to continuing impact of COVID19 on global trade in 2Q2020 as stricter quarantine measures took effect ▪ Less
Slide 4: MoM Segment Performance
MoM Segment Performance 2020 Jan Feb Mar Apr May Jun Asia EMEA AMERICAS Total Consolidated Volume Revenues (lowest month) (lowest month) 4
Slide 5: Quarterly Highlights
Quarterly Highlights Geographical diversification, stringent cost management and our rapid response to the COVID19 pandemic mitigated potential adverse effects on operating results (In US$ million except Volume, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Yield per TEU & EBITDA margin) 2018 2018 2018 2018 2019* 2
Slide 6: Agenda
Agenda 01 Recent Financial Performance 02 Liquidity and Capital Resources 03 Other Matters 04 Questions and Answers 05 Appendix
Slide 7: Recent Financial Performance
01 Recent Financial Performance
Slide 8: Volume
Volume First Half Second Quarter (in TEUs) (in TEUs) 4,714,255 5,041,916 4,799,765 2,388,715 2,563,244 2,290,779 7% -11% 456,377 (18%) 384,809 (16%) +19% -6% 427,155 (19%) 7% -5% 752,389 (29%) 750,123 (31%) +0.3% -5% 711,602 (31%) 890,664 (18%) 772,190 (16%) 883,553 (18%) +8% -15% +15% -1% 1,253,784
Slide 9: Revenues
Revenues First Half Second Quarter (in US$ ‘000) (in US$ ‘000) 661,764 751,785 724,261 336,384 368,001 348,485 9% -5% 14% -4% 78,753 (21%) 71,460 (21%) +10% 73,424 (21%) -7% 154,274 (21%) 106,537 (29%) 148,344 (20%) 103,226 (31%) 101,090 (29%) +3% -5% +10% -4% 140,439 (21%) +13% -5% 161,698 (48%) 18
Slide 10: Consolidated P&L Highlights (1H)
Consolidated P&L Highlights (In US$ 000, except Volume and EPS) 1H 2019 1H 2020 % Change Volume slightly decreased 5% as trade activities declined due to the impact of COVID-19 pandemic on global trade and Volume (in TEU) 5,041,916 4,799,765 -5% lockdown restrictions; partially tapered by the contri
Slide 11: Consolidated P&L Highlights (2Q)
Consolidated P&L Highlights (In US$ 000, except Volume and EPS) 2Q 2019 2Q 2020 % Change Volume decreased 11% as trade activities declined due to the impact of COVID-19 pandemic on global trade and Volume (in TEU) 2,563,244 2,290,779 -11% lockdown restrictions; partially tapered by the contribution
Slide 12: Financing Charges & Other Expenses
Financing Charges & Other Expenses 1H 2019 1H 2020 % Change (In US$’ 000) Increased primarily due to COVID19-related expenses and the absence of capitalized Financing Charges & Other Expenses 59,623 67,677 +14% borrowing cost related to the Phase 2 expansion project in Basra, Iraq in 2019 ▪ Interest
Slide 13: Proactive FX Risk Management
Proactive FX Risk Management ICTSI’s revenue and cash expenses are favourably matched, which provides a natural currency hedge that mitigates against volatility attributable to FX movements Revenue Currency by Subsidiary Cash Expense Currency by Subsidiary US$ Revenues from Port Operations (1H 2020
Slide 14: FX Movement
FX Movement May-18 May-19 May-20 Aug-18 Sep-18 Nov-18 Dec-18 Aug-19 Sep-19 Nov-19 Dec-19 Feb-18 Mar-18 Feb-19 Mar-19 Feb-20 Mar-20 Jan-18 Jun-18 Jan-19 Jun-19 Jan-20 Jun-20 Apr-18 Oct-18 Apr-19 Oct-19 Apr-20 Jul-18 Jul-19 90 110 130 150 170 Currency BRL COP MXN PKR AUD RMB EUR PHP Average 1H 2020 4.
Slide 15: Yield/TEU and EBITDA Margin
Yield/TEU and EBITDA Margin Yield/TEU Evolution 160 -3.34 2.13 150 6.55 140 150.90 145.55 130 120 Yield/TEU Organic New Terminals Forex Yield/TEU Dec 2019 June 2020 EBITDA Margin Evolution 58% -0.49% 0.31% 57% 1.63% 57.49% 56% 56.04% 55% EBITDA Margin % Organic New Terminal Forex EBITDA Margin % Dec
Slide 16: Yield/TEU Analysis
Yield/TEU Analysis (In US$ million) 2Q 2Q % 1H 1H % 2019 2020 change 2019 2020 change 2,563 2,291 -11% Volume (TEU ‘000) 5,042 4,800 -5% 368 348 -5% Revenues (US$ million) 752 724 -4% 144 152 +6% Yield/TEU (US$) 149 151 +1% 202 204 +1% EBITDA (US$ millions) 424 416 -2% 55% 59% EBITDA Margin 56% 57%
Slide 17: Liquidity and Capital Resources
02 Liquidity and Capital Resources
Slide 18: Balance Sheet Summary
Balance Sheet Summary Financial Ratios (In US$ millions) Dec 31, 2019 June 30, 2020 Dec 31, 2019 June 30, 2020 Intangible and Property and Equipment 3,590 3,403 Gearing: Debt/SHE 1.02 1.19 Current Ratio: Lease Assets 576 544 Current Assets/Current Liabilities 0.72 1.16 Cash and Cash Equivalents 235
Slide 19: Principal Redemption Profile
Principal Redemption Profile As of March 31, 2020 (US$ millions) Perp NC21 (1) 265 Perp NC22 (3) Perp NC24 (2) 400 394 400 375 333 280 267 77 86 26 19 5 5 3 - 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Proforma August 6, 2020 Perp NC26 (4) Perp NC22 (3) 300 Perp NC24 (2) 400 394 Perp NC2
Slide 20: Capital Expenditures
Capital Expenditures (In US$ millions) 2019A 2020B (ORIGINAL) 2020B (REVISED) $1m $25m 1% $7m 10% 3% $1m $54m $23m 1% 20% 14% US$241m US$270m US$160m $210m $136m $215 77% 85% m 89% 2019 CAPEX mainly for: 2020B CAPEX mainly for: EXPANSIONARY: Manila, Honduras, Mexico & Iraq EXPANSIONARY: Manila, Mexi
Slide 21: Other Matters
03 Other Matters
Slide 22: ICTSI Sustainability Reports
ICTSI Sustainability Reports 22
Slide 23: 2019 Sustainability Report
2019 Sustainability Report 23
Slide 24: Recent Events
Recent Events ICTSI concluded the Tender Offer relating to Senior Guaranteed Perpetual Securities of Royal Capital B.V. July ICTSI signed the concession contract to develop, operate and manage the Multi-Purpose Terminal of the Port of Kribi in Cameroon ICTSI successfully issued a new USD300 Million
Slide 25: Concluding Remarks
Concluding Remarks ▪ Safety and wellbeing of the ICTSI team and other stakeholders remains our number one priority ▪ Focused on prudent cash preservation and management ▪ Strengthened our capital structure to capitalise on opportunities ▪ Agile and able to respond swiftly to changing situations ▪ Me
Slide 26: Questions and Answers
04 Questions and Answers
Slide 27: Appendix
05 Appendix
Slide 28: COVID-related community support projects
COVID-related community support projects ICTSI Foundation and Sustainable and Development Unit Organization Beneficiaries o Provided immunopacks to indigent senior citizens. Coalition of Services for the Elderly Immunopacks contain face masks, milk, vitamins rice and other food items o 1,600 Aeta fa
Slide 29: COVID-related community support projects
COVID-related community support projects ICTSI Foundation and Sustainable and Development Unit Organization Beneficiaries Donation of Php5M for the purchase o City of Manila of COVID-19 testing machines o Residents of Parola Brgy. 20 and Donation of 50,000 face masks Brgy. 275 and Isla Puting Bato o
Slide 30: COVID-19: Supporting our Stakeholders
COVID-19: Supporting our Stakeholders ▪ Php355m to national and local government agencies, communities, employees and port stakeholders ▪ Donated personal protective equipment, ventilators, test kits, face masks and disinfectants to local hospitals and stakeholders ▪ Mass rapid antibody testing of o
Slide 31: Thank you!
International Container Terminal Services, Inc. wom ) thank you!
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