International Container Terminal Services, Inc. · PSE:ICT
International Container Terminal Services — 2Q 2022 Earnings Presentation
30 slides from International Container Terminal Services's earnings presentation, Aug 4, 2022
Slide 1: 2Q 2022 Investors' Briefing
2Q 2022 Investors’ Briefing August 4, 2022
Slide 2: Quarterly Results
Quarterly Results Business fundamentals remain firm despite global headwinds (In US$ million except Volume, Yield to TEU & EBITDA margin) FY2018 FY2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 Volume (in TEU ‘000) 9,737 10,178 2,509 2,291 2,627 2,767 2,708 2,75
Slide 3: Highlights – 2Q2022 & 1H2022
Highlights – 2Q2022 & 1H2022 Financial and Operational Performance Net Income Volume Revenues EBITDA attributable to Equity 2Q2022 +6% +20% EBITDA margin +25% holders 63% +43% Net Income attributable Volume Revenues EBITDA to Equity holders 1H2022 +5% +20% EBITDA Margin +26% +50% 63% ▪ Positive firs
Slide 4: Agenda
Agenda 01 Recent Financial Performance 02 Liquidity and Capital Resources 03 Questions and Answers 04 Appendix
Slide 5: Recent Financial Performance
01 Recent Financial Performance
Slide 6: Volume
Volume First Half Second Quarter (in TEUs) (in TEUs) 4,799,765 5,459,523 5,752,582 2,290,779 2,751,731 2,919,581 +20% +6% +14% +5% 674,078 (23%) 649,249 (24%) +20% +4% 1,344,580 (23%) 540,554 (24%) 1,299,261 (24%) +3% 869,292 (30%) +13% 815,173 (30%) +15% +7% 1,154,489 (24%) 711,602 (31%) +1% 1,699,
Slide 7: Revenues
Revenues First Half Second Quarter (in US$ ‘000) (in US$ ‘000) 724,261 882,624 1,062,909 348,485 447,037 534,642 +28% +20% +20% 113,768 (21%) +22% +11% 228,719 (22%) 102,789 (23%) +21% 183,318 (34%) +17% +12% 84,918 (24%) 203,744 (23%) 137,998 (31%) +33% 101,090 (29%) +37% 174,104 (24%) 366,686 (34%
Slide 8: Consolidated P&L Highlights
Consolidated P&L Highlights 2Q 2021 2Q 2022 % Change (In US$ 000, 1H 2021 1H 2022 % Change except Volume and EPS) 2,751,731 2,919,581 +6% Volume (in TEU) 5,459,523 5,752,582 +5% 447,037 534,642 +20% Gross Revenues from 882,624 1,062,909 +20% Port Operations Cash Operating 125,730 146,759 +17% 248,17
Slide 9: Yield / TEU Analysis
Yield / TEU Analysis 2Q 2Q % 1H 1H % 2021 2022 change 2021 2022 change 2,752 2,920 +6% Volume 5,460 5,753 +5% (TEUs ‘000) 442,388 521,777 +18% Revenues 875,678 1,040,457 +19% (US$ ‘000) 161 179 +11% Revenue / TEU 160 181 +13% (US$) FX due to unfavorable translation impact of AUD, FX due to unfavorab
Slide 10: Yield / Ton Analysis
Yield / Ton Analysis 2Q 2Q % 1H 1H % 2021 2022 change 2021 2022 change 734 2,032 +177% Volume 1,146 3,596 +214% (Tons ‘000) 4,649 12,865 +177% Revenues 6,945 22,452 +223% (US$ ‘000) 6.334 6.331 -0% Revenue / Ton 6.06 6.24 +3% (US$) -0.178 FX due to unfavorable translation impact of PHP -0.15 FX due
Slide 11: Yield per TEU and EBITDA Margin Evolution
Yield per TEU and EBITDA Margin Evolution Yield per TEU Evolution* In US$ 200 ( 2.90 ) 180 ( 0.44 ) + 19.51 160 183.77 180.87 180.87 140 164.70 164.70 120 Yield/TEU Organic New Terminals Forex Yield/TEU Dec 2021 June 2022 Note: *Excluding predominantly non-containerized terminals (MHCPSI, KMT, BIPI
Slide 12: Cash Operating Expenses
Cash Operating Expenses (ORGANIC) 1H 2021 1H 2022 % change % change (In US$’ 000) Cash Operating Expenses 248,175 283,865 +14% +11% Cash Operating Expenses (excluding Fuel and Power) 218,250 242,951 +11% +7% 12
Slide 13: Financing Charges & Other Expenses
Financing Charges & Other Expenses 1H 2021 1H 2022 % Change (In US$’ 000) Financing Charges & Other Expenses 68,561 88,934 + 30% ▪ Interest Expense on Loans/Bonds 53,196 57,641 +8% ▪ Capitalized Borrowing Cost (318) (184) -42% ▪ Amortization of Debt Issue Cost 4,158 4,081 -2% ▪ Other Expense 11,525
Slide 14: Total Interest-bearing Debt and Perpetual Capital Securities
Total Interest-bearing Debt and Perpetual Capital Securities (In US$’ 000) 1H 2021 1H 2022 Difference % Change Loans/Bonds Interest Expense on Loans/Bonds 53,196 57,641 4,445 +8% Average Outstanding Loans/Bonds 1,797,142 2,256,428 459,286 +26% Perpetual Securities Cumulative Distribution on Perpetua
Slide 15: Liquidity and Capital Resources
02 Liquidity and Capital Resources
Slide 16: Balance Sheet Summary
Balance Sheet Summary Financial Ratios (In US$ million) Dec 31, 2021 Jun 30, 2022 Dec 31, 2021 Jun 30, 2022 Intangibles and Property and Gearing: Debt/SHE 1.42 1.89 Equipment 3,588 3,708 Current Ratio: Rights-of-use assets 664 662 Current Assets/Current Liabilities 1.81 0.69 Cash and Cash Equivalent
Slide 17: Principal Redemption Profile
Principal Redemption Profile As of June 30, 2022 (In US$ million) Relationship Banks Bonds Perp Perp NC26 (2) 394 298 782 Perp NC24 (1) 400 290 270 176 203 28 29 31 - 32 - 31 16 17 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 FCF Notes: (1) Callable in 2024 with rate reset and 250–bp step–
Slide 18: Capital Expenditures
Capital Expenditures (In US$ million) 2021B 2021A 2022B $42m $57m 13% $37m $28m 23% 19% 15% US$250m US$165m US$330m $193m 77% $128m $288m 66% 87% 2021A CAPEX mainly for: 2022B CAPEX mainly for: EXPANSIONARY: Manila, DR Congo, Australia, Mexico & Ecuador EXPANSIONARY: Madagascar, DR Congo, Australia,
Slide 19: ESG initiatives
ESG initiatives Environment Governance Economy ▪ ICTSI Foundation’s environmental projects on track. Several ▪ New Global Policies. ICTSI has announced three new global policies for • ICTSI expands global footprint. ICTSI continues to pursue its global environmental protection and conservation proje
Slide 20: ESG initiatives
ESG initiatives Employees Customers Society ▪ Learning and development. As part of preparations for the ▪ TecPlata to operate new service with Port of Montevideo. TecPlata ▪ Vaccination program. More than 665,000 doses of Moderna, including deployment of the first ever quay cranes at Papua New Guine
Slide 21: Conclusion and Outlook
Conclusion and Outlook ▪ Strong first half performance across key performance indicators supported by continued positive performances from Joint Ventures and New Terminals ▪ Benefiting from a resilient business with fundamentals remaining strong ▪ Continuing to proactively manage inflation, and seek
Slide 22: Questions and Answers
03 Questions and Answers
Slide 23: Appendix
04 Appendix
Slide 24: Recent Events
Recent Events ICTSI to acquire majority ownership in a multi-purpose terminal in Lamongan Regency, East Java, Indonesia Jul IRB Logistica Ltda. partners with Tracker Logistica to form iTracker Logistica Inteligente (“iTracker”) 2022 DIPSSCOR unwind operations at Sasa Wharf, Port of Davao Mar ICTSI d
Slide 25: Rising EBITDA in a relatively Low CAPEX cycle
Rising EBITDA in a relatively Low CAPEX cycle ICTSI data (in million) CAPEX EBITDA CAPEX/EBITDA CAPACITY (TEUs) Axis Title 1,250 151% 160% 21.055 21,185 20.505 127% 19.275 17.925 1,000 CAPEX and EBITDA 120% 88% 14.855 750 81% 12.700 13.780 11.970 (in US$) 75% 68% 10.920 80% 500 50% 8.770 63% 46% 7.0
Slide 26: Increasing FCF
Increasing FCF ICTSI data (In US$ million) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1,000 782 800 605 600 516 Free Cash Flow 430 400 298 200 96 109 75 18 29 12 0 -200 -180 -195 -400 26
Slide 27: 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 28: 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 29: COVID Strategic Response: 4Cs
COVID 19 Strategic Response: 4Cs Ensuring strength and resiliency: our response to COVID-19 Initiatives Areas of Focus Benefits • Improved collection processes • Focus on cash collection • Managed DSO and DPO more efficiently Cash Preservation • Accelerate and maximize upstream • Accelerated and max
Slide 30: Thank you!
International Container Terminal Services, Inc.
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