International Container Terminal Services, Inc. · PSE:ICT
International Container Terminal Services — Q3 2019 Earnings Presentation
29 slides from International Container Terminal Services's earnings presentation, Nov 12, 2019
Slide 1: 3Q 2019 Investors' Briefing
International Container Terminal Services, Inc. 3Q 2019 Investors’ Briefing
Slide 2: Highlights
Highlights Strong Financial and Operational Performance Net income Volume Revenues EBITDA attributable to equity holders +6% +10% +14% +29% EBITDA Margin 56% ▪ Positive YTD volume and revenue growth despite global headwinds ▪ Higher EBITDA Margin due to higher revenues and diligent cost management ▪
Slide 3: Agenda
Agenda 01 Recent Financial Performance 02 Liquidity and Capital Resources 03 Other Matters 04 Questions and Answers 05 Appendix
Slide 4: Recent Financial Performance
01 Recent Financial Performance
Slide 5: Volume
Volume Nine Months Third Quarter (in TEU) (in TEU) 6,836,611 7,152,392 7,590,090 2,291,207 2,438,137 2,548,175 5% 6% 6% 5% 387,716 (16%) +17% 455,317 (18%) 1,345,981 (18%) 380,771 (17%) +2% 1,159,906 (16%) +16% 1,075,696 (16%) +8% 713,785 (29%) +4% 739,423 (29%) 692,046 (30%) +3% 2,237,427 (29%) 2,1
Slide 6: Revenues
Revenues Nine Months Third Quarter (in US$’000) (in US$ ‘000) 918,269 1,005,723 1,107,339 314,553 343,959 355,554 9% 3% 10% 10% 74,309 (22%) 78,119 (22%) 68,961 (22%) +8% +5% 95,164 (28%) 98,142 (28%) 232,393 (21%) 98,148 (31%) +3% -3% +8% +20% 214,748 (21%) 178,848 (19%) 147,444 (47%) 174,486 (51%)
Slide 7: Consolidated P&L Highlights (9M)
Consolidated P&L Highlights (In US$ 000, except Volume and EPS) 9M 2018 9M 2019 % Change Volume up 6% mainly due continuing ramp-up at new terminals in PNG; improvement in trade activities at Volume (in TEU) 7,152,392 7,590,090 +6% SBITC, IDRC and ICTSI Iraq; and new contracts with shipping lines an
Slide 8: Consolidated P&L Highlights (3Q)
Consolidated P&L Highlights (In US$ 000, except Volume and EPS) 3Q 2018 3Q 2019 % Change Volume up 5% primarily due to improvement in trade activities; new shipping lines and services; and continuous Volume (in TEU) 2,438,137 2,548,175 +5% volume ramp-up at certain terminals. Organic volume growth a
Slide 9: Financing Charges & Other Expenses
Financing Charges & Other Expenses 9M 2018 9M 2019 % Change (In US$’ 000) Higher due to the acceleration of debt issue cost associated with the partial prepayment of Euro- Financing Charges & Other Expenses 89,166 95,199 +7% denominated term loan in July 2019. ▪ Interest Expense on Loans/Bonds 77,01
Slide 10: Recurring Net Income
Recurring Net Income (In US$ 000) 9M 2018 9M 2019 % Change Net Income Attributable to Equity Holders 142,889 184,858 +29% Non-recurring item: ▪ Less: MTM Gain on derivative of CMSA (2,752) – ▪ Add: Acceleration of DIC associated with the partial prepayment of Euro term loan – 2,678 Recurring Net Inc
Slide 11: 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 (9M 2019 R
Slide 12: FX Movement
FX Movement FX Movement since January 2015 and bottom line effect on ICTSI’s margins May-15 May-16 May-17 May-18 May-19 Sep-15 Nov-15 Sep-16 Nov-16 Sep-17 Nov-17 Sep-18 Nov-18 Sep-19 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 80 100 120 1
Slide 13: Yield/TEU and EBITDA Margin
Yield/TEU and EBITDA Margin Yield/TEU Evolution 160 150 0.79 -1.95 4.72 140 142.33 145.89 130 120 Yield/TEU Dec 2018 Organic New Terminals Forex Yield/TEU Sept 2019 EDBITA Margin Evolution 57% 56% 0.79% 0.38% 55% 0.74% 56.38% 54% 54.46% 53% EBITDA Margin % Dec 2018 Organic New Terminals Forex EBITDA
Slide 14: Yield/TEU Comparison
Yield/TEU Comparison 9M 2018 9M 2019 % Change Volume (TEU ‘000) 7,152 7,590 +6% Revenues (US$ millions) 1,006 1,107 +10% Yield/TEU (US$) 141 146 +4% EBITDA (US$ millions) 546 624 +14% EBITA Margin 54% 56% FX: Negative impact of EUR, BRL and AUD -2 +5 Increase in revenues from storage and ancillary s
Slide 15: Liquidity and Capital Resources
02 Liquidity and Capital Resources
Slide 16: Balance Sheet Summary
Balance Sheet Summary (In US$ millions) Dec 31, 2018 (1) Sep 30, 2019 Financial Ratios Intangible and Property and Equipment 3,344 3,353 Dec 31, 2018 (1) Sep 30, 2019 Gearing: Debt/SHE 0.69 0.96 Lease Assets 523 488 Current Ratio: Current Assets/Current Cash and Cash Equivalents 447 309 1.51 0.83 Li
Slide 17: Principal Redemption Profile
Principal Redemption Profile As of Sep 30, 2019 (US$ millions) 600 Millions 400 Perp NC22 (3) 200 Perp NC21 (1) Perp NC24 (2) €65M (Term Loan €260M) 0 2019 2020 2021 2022 2023 2024 2025 2026 ST LT / Bonds Perp Debt Breakdown(4) Others Floating 2% 5% EUR Subs AUD 5% 19% 14% Parent & Rate Currency Sub
Slide 18: Capital Expenditures
Capital Expenditures (In US$ millions) 2018B 2018A 2019B $40 $8 $45 2% $4 11% $40 12% 1% 15% $45 12% $36 14% US$380 US$261 US$380 $287 $182 70% $335 75% 88% US$3M US$5M 2018 CAPEX mainly for: 2019 CAPEX mainly for: GREENFIELD: Australia EXPANSIONARY: Manila, Honduras, Mexico & Iraq EXPANSIONARY: Man
Slide 19: Other Matters
03 Other Matters
Slide 20: Our Role in Society
International Our Role in Society conmmiiver Ferric PAPUANEW GUINEA Baruni Pn cl, located FEEDING a Cote - LIVELIHOOD pees ae Oe & FINANCIAL of international in Motukea international container ports in Asia Pacific, ais LITERACY orate the Co cpl abingrecgeara Rise americas cw opettne AMES ans Pais e
Slide 21: Recent Events
Recent Events Federal jury verdict in Portland, Oregon, USA rendered in favor of ICTSI Oregon Inc. with a total sum of $93,635,000 in a case it filed against the Nov International Longshore and Warehouse Union (ILWU) and ILWU Local 8 for unlawful labor practices ICTSI received a letter from the Suda
Slide 22: Questions and Answers
04 Questions and Answers
Slide 23: Appendix
05S Appendix
Slide 24: Entities with PFRS 16 Impact
Entities with PFRS 16 Impact Lease Term End of Lease Term (in years) Victoria International Container Terminal Ltd. (VICT) 26 2040 Australia Contecon Mazanillo S.A. (CMSA) 34 2044 Mexico Tecon Suape S.A. (TSSA) 30 2031 Brazil Baltic Container Terminal (BCT) 20 2023 Poland Mindanao International Cont
Slide 25: Impact of PFRS 16 on 9M 2018 P&L
Impact of PFRS 16 on 9M 2018 P&L (In US$ 000) Sep 30, 2018 EBITDA – Pre PFRS 16 ▪ Port Authorities’ Share in Gross Revenues 17,875 462,081 ▪ Equipment and Facilities – related expenses 66,450 Fixed and Guaranteed Port Fees 84,325 EBITDA – Post PFRS 16 546,406 Net Income – Pre PFRS 16 ▪ Fixed and Gua
Slide 26: Lease Expense
Impact of PFRS 16 (9M 2018 P&L) 90 80 A Lease expense under old standard 70 Lease Expense 60 B 50 40 30 C Depreciation of lease assets 20 10 Interest accretion on lease liabilities 0 Category 1 Category 2 Category 3 Lease Term A = Lease expense under old standard B + C = Lease expense under new stan
Slide 27: 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
Slide 28: Impact of PFRS 16 on 9M 2018 Cash Flows
Impact of PFRS 16 on 9M 2018 Cash Flows Sep 30, 2018 PFRS 16 Sep 30, 2018 (In US$ ‘000) (Audited) adjustments (Restated) Net Cash Flows from Operating Activities 460,978 38,667 499,645 Net Cash Flows from Investing Activities (257,919) – (257,919) Net Cash Flows from Financing Activities (55,116) (3
Slide 29: Thank you
International Container Terminal Services, Inc. ) thank you
International Container Terminal Services — Q3 2019 Earnings Presentation on 6ix