International Container Terminal Services, Inc. · PSE:ICT
International Container Terminal Services — Q3 2022 Earnings Presentation
30 slides from International Container Terminal Services's earnings presentation, Nov 7, 2022
Slide 1: 3Q 2022 Investors' Briefing
3Q 2022 Investors’ Briefing November 7, 2022
Slide 2: Quarterly Results
Quarterly Results Business fundamentals remain constructive despite near term cyclical issues 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q (In US$ million except Volume, FY2018 FY2019 2022 Yield to TEU & EBITDA margin) 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 (ex MNHPI) Volume (in TEU ‘000) 9,7
Slide 3: 3Q2022 & 9M2022 - Financial and Operational Highlights
3Q2022 & 9M2022 - Financial and Operational Highlights Consolidated Results (with MNHPI) Volume Yield Revenues EBITDA Net Income(1) EBITDA Margin D. EPS(2) 3Q 2022 +11% +8% +20% 63% +23% +55% +43% Volume Yield Revenues EBITDA Net Income(1) EBITDA (2) D. EPS +20% +47% Margin 9M 2022 +7% +11% 63% +25%
Slide 4: Yield Performance
Yield Performance Yield / TEU (in US$) 200 183 (ex MNHPI) 180 181 (consolidated) 172 (MNHPI full 3Q) 170 (MNHPI full 9M) 160 165 140 146 148 143 142 135 135 136 130 130 120 125 127 100 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 9M 2022 ▪ Consolidated 9M2022 container yield/TEU at US
Slide 5: Increasing FCF
Increasing FCF ICTSI data (In US$ million) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 9M 2022 1,000 782 800 605 630 600 516 430 Free Cash Flow 400 298 200 96 109 75 18 29 12 0 -200 -180 -195 -400 5
Slide 6: Agenda
Agenda 01 Recent Financial Performance 02 Liquidity and Capital Resources 03 Questions and Answers 04 Appendix
Slide 7: Recent Financial Performance
01 Recent Financial Performance
Slide 8: Volume
Volume Nine Months Third Quarter (in TEUs) (in TEUs) 2,626,542 2,807,098 3,103,721 7,426,306 8,266,621 8,856,303 +7% +11% +11% +7% 658,801 (21%) +15% 686,494 (24%) -4% 596,059 (23%) +1% 2,003,381 (23%) 854,112 (28%) +13% 1,985,755 (24%) 754,611 (29%) +11% 835,440 (30%) +2% 1,750,548 (24%) +1% 2,554,
Slide 9: Revenues
Revenues Nine Months Third Quarter (in US$ ‘000) (in US$ ‘000) 1,103,570 1,365,014 1,639,607 379,309 482,391 576,699 +20% +27% +20% +24% 116,680 (20%) 345,399 (21%) 109,810 (23%) +6% +19% 194,185 (34%) 92,018 (24%) +10% 153,493 (32%) 313,554 (23%) +27% +18% 103,932 (27%) +48% 266,122 (24%) 560,870 (
Slide 10: Consolidated P&L Highlights
Consolidated P&L Highlights 3Q 2021 3Q 2022 % Change (In US$ 000, 9M 2021 9M 2022 % Change except Volume and EPS) 2,807,098 3,103,721 +11% Volume (in TEU) 8,266,621 8,856,303 +7% Gross Revenues from 482,391 576,699 +20% 1,365,014 1,639,607 +20% Port Operations Cash Operating 135,063 154,270 +14% 383
Slide 11: Yield / TEU Analysis
Yield / TEU Analysis 3Q 3Q % 9M 9M % 2021 2022 change 2021 2022 change 2,807 3,104 +11% Volume 8,267 8,856 +7% (TEUs ‘000) 472,153 562,686 +19% Revenues 1,347,831 1,603,143 +19% (US$ ‘000) 168 181 +8% Revenue / TEU 163 181 +11% (US$) FX due to unfavorable translation impact of FX due to unfavorable
Slide 12: Yield / Ton Analysis
Yield / Ton Analysis 3Q 3Q % 9M 9M % 2021 2022 change 2021 2022 change 1,671 2,282 +177% Volume 2,817 5,878 +109% (Tons ‘000) 10,238 14,012 +177% Revenues 17,183 36,464 +112% (US$ ‘000) 6.13 6.14 +0.2% Revenue / Ton 6.10 6.20 +2% (US$) -0.23 FX due to unfavorable translation impact of PHP -0.18 FX d
Slide 13: Proactive FX Risk Management
Proactive FX Risk Management ICTSI’s revenue and cash expenses are favourably matched, which provides a natural currency hedge that mitigates against volatility attributable to FX movements Revenue Currency by Subsidiary Cash Expense Currency by Subsidiary Revenues from Port Operations Subsidiaries
Slide 14: Yield per TEU and EBITDA Margin Evolution
Yield per TEU and EBITDA Margin Evolution Yield per TEU Evolution* In US$ 200 0.86 - 1.49 - 4.59 180 21.53 160 181.02 140 164.70 120 Yield/TEU Organic New Terminals MNHPI Forex Yield/TEU Dec 2021 Sept 2022 Note: *Excluding predominantly non-containerized terminals (MHCPSI, KMT, BIPI and HIPS) Consol
Slide 15: Cash Operating Expenses
Cash Operating Expenses (ORGANIC) 9M 2021 9M 2022 % change % change (In US$’ 000 except per TEU) Cash Operating Expenses 383,239 438,134 +14% +11% Cash Operating Expenses (excluding Fuel and Power) 336,397 373,561 +11% +8% 15
Slide 16: Financing Charges & Other Expenses
Financing Charges & Other Expenses 9M 2021 9M 2022 % Change (In US$’ 000) Financing Charges & Other Expenses 105,532 130,830 + 24% ▪ Interest Expense on Loans/Bonds 79,740 88,746 +11% ▪ Capitalized Borrowing Cost (455) (305) +33% ▪ Amortization of Debt Issue Cost 6,059 6,000 -1% ▪ Other Expense 20,1
Slide 17: Total Interest-bearing Debt and Perpetual Capital Securities
Total Interest-bearing Debt and Perpetual Capital Securities (In US$’ 000) 9M 2021 9M 2022 Difference % Change Loans/Bonds Interest Expense on Loans/Bonds 79,285 88,441 9,155 +12% Average Outstanding Loans/Bonds 1,822,097 2,300,969 478,872 +26% Perpetual Securities Cumulative Distribution on Perpetu
Slide 18: Liquidity and Capital Resources
02 Liquidity and Capital Resources
Slide 19: Balance Sheet Summary
Balance Sheet Summary Financial Ratios (In US$ million) Dec 31, 2021 Sept 30, 2022 Dec 31, 2021 Sept 30, 2022 Intangibles and Property and Gearing: Debt/SHE 1.42 1.60 Equipment 3,588 3,919 Current Ratio: Rights-of-use assets 664 697 Current Assets/Current Liabilities 1.81 0.84 Cash and Cash Equivale
Slide 20: Principal Redemption Profile
Principal Redemption Profile As of September 30, 2022 (In US$ million) Relationship Banks Bonds Perp 298 782 394 Perp NC26 (2) 400 400 290 Perp NC24 (1) 300 269 199 - - - - 45 40 34 31 31 30 17 17 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Notes: (1) Callable in 2024 with rate reset and
Slide 21: Capital Expenditures
Capital Expenditures (In US$ million) 2021B 2021A 2022B $42m $57m 13% 23% $37m $28m 22% 17% US$250m US$165m US$330m $193m 77% $100m $288m 61% 87% 2021A CAPEX mainly for: 2022B CAPEX mainly for: EXPANSIONARY: Manila, DR Congo, Australia, Mexico & Ecuador EXPANSIONARY: Madagascar, DR Congo, Australia,
Slide 22: ESG initiatives
ESG initiatives Environment Governance Economy ▪ ICTSI flagship secures ‘green port’ seal. The Asia-Pacific Economic ▪ New Global Policies. ICTSI has announced two new global policies for its • ICTSI Mexico gets more equipment. CMSA is adding four new state-of- Cooperation (APEC) Port Services Netwo
Slide 23: ESG initiatives
ESG initiatives Employees Customers Society • BCT supports training for Ukrainian refugees. BCT is supporting • Rhino dehorning program. ICTSI is working with Wild Wonderful World to initiatives of the Center of New Competences and the Fly Foundation to ▪ ICTSI mobile app now available for download
Slide 24: Conclusion and Outlook
Conclusion and Outlook ▪ Business fundamentals remain robust despite headwinds ▪ Globally diversified O&D portfolio and top line performance offset cost inflation; 7th consecutive quarter of double-digit consolidated revenue growth ▪ Strong balance sheet but equally strong CAPEX management ▪ Continu
Slide 25: Questions and Answers
03 Questions and Answers
Slide 26: Appendix
04 Appendix
Slide 27: Recent Events
Recent Events ICTSI sold 65% ownership in Hijo International Port Services, Inc. (HIPSI) Sept ICTSI formed a joint venture company in the Philippines to operate domestic and international ocean, air and land freight forwarding and logistics ICTSI to acquire majority ownership in a multi-purpose term
Slide 28: Rising EBITDA in a relatively Low CAPEX cycle
Rising EBITDA in a relatively Low CAPEX cycle ICTSI data (in million) CAPEX EBITDA CAPEX/EBITDA CAPACITY (TEUs) Axis Title 1,250 151% 160% 21.055 21,185 20.505 127% 19.275 17.925 1,000 CAPEX and EBITDA 120% 88% 14.855 750 81% 12.700 13.780 11.970 (in US$) 75% 68% 10.920 80% 500 50% 8.770 63% 46% 7.0
Slide 29: ICTSI Sustainability Reports
ICTSI Sustainability Reports OUR SUSTAINABILITY REPORTING JOURNEY Edition Covered 2017 2018 2019 2020 2021 Published 2018 2019 2020 2021 2022 Coverage: • Selected metrics: Group-wide • Selected metrics: Group-wide • Selected metrics: Group-wide • Selected metrics: Group-wide • Selected metrics: Grou
Slide 30: Thank you!
ner Terminal es, Inc.
International Container Terminal Services — Q3 2022 Earnings Presentation on 6ix