International Container Terminal Services, Inc. · PSE:ICT
International Container Terminal Services — Q2 2023 Earnings Presentation
25 slides from International Container Terminal Services's earnings presentation, Aug 14, 2023
Slide 1: 2Q 2023 Investors’ Briefing
2Q 2023 Investors’ Briefing 14 August 2023
Slide 2: Consolidated Financial & Operational Highlights
Consolidated Financial & Operational Highlights 2Q 2023 +9% +1% +11% +12% +5% 63% +6% VOLUME YIELD (1) REVENUE EBITDA NET INCOME (2) EBITDA MARGIN DILUTED EPS 1H 2023 +9% -0.4% +10% +8% +7% 63% +9% MNHPI consolidation continues to drive volume and revenue growth; Organic volume grew by 1% Various re
Slide 3: Quarterly Results
Quarterly Results 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2018 FY2019 FY2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 Volume (in TEU ‘000) 9,737 10,178 10,194 2,708 2,752 2,807 2,897 2,833 2,920 3,104 3,360 3,102 3,174 Gross Revenues 1,386 1,481 1,506 436 447 482 500 528 535 577 603 572 593 Yield /
Slide 4: Recent Events
Recent Events Pakistan International Container ICTSI declared the Preferred ICTSI launched its Climate Terminal (PICT) concession Bidder for the operation and Change Action Initiative; expired; ICTSI assisting new development of commits to combat climate concessionaire with transition Durban Contain
Slide 5: Agenda
Agenda Recent Financial Performance Liquidity and Capital Resources Questions and Answers Appendix
Slide 6: Recent Financial Performance
Recent Financial Performance
Slide 7: Consolidated P&L Highlights
Consolidated P&L Highlights 2Q 2022 2Q 2023 % Change (In US$ 000, 1H 2022 1H 2023 % Change except Volume and EPS) 2,919,581 3,173,732 +9% Volume (in TEU) 5,752,582 6,275,837 +9% Gross Revenues from 534,642 592,726 +11% 1,062,909 1,164,972 +10% Port Operations 146,759 162,716 +11% Cash Operating Expe
Slide 8: Volume
Volume First Half Second Quarter (in ‘000 TEUs) (in ‘000 TEUs) 5,460 5,753 6,276 2,752 2,920 3,174 +9% +9% +6% +5% 1,300 21% 653 1,345 674 21% -3% 1,299 23% -3% 649 23% 24% +3% 24% +4% 908 1,743 29% 28% 869 815 +4% 1,700 30% +7% 30% 1,688 30% +3% 31% +1% 1,613 1,287 +7% 1,376 +17% 51% 47% 47% 3,233
Slide 9: Revenues
Revenues First Half Second Quarter (in US$ millions) (in US$ ‘millions) 883 1,063 1,165 447 535 593 +11% +10% +20% +20% 245 122 +7% 21% 21% +11% 114 229 +7% 21% 22% 103 +12% 23% 213 204 183 +16% 36% 23% 388 138 +33% 34% 33% 31% 367 34% +6% 286 +28% 258 32% 206 238 +9% +15% 44% 44% 46% +14% 532 2Q 20
Slide 10: Yield / TEU Analysis
Yield / TEU Analysis 2Q 2Q % 1H 1H % 2022 2023 change 2022 2023 change 2,920 3,174 +9% Volume 5,753 6,276 +9% (TEUs ‘000) 521,777 574,542 +10% Revenues 1,040,457 1,130,413 +9% (US$ ‘000) 178.72 181.03 +1% Revenue / TEU 180.87 180.12 -0.4% (US$) 178.72 +14.78 -12.76 +0.30 181.03 180.87 +13.08 -12.59
Slide 11: Yield / Ton Analysis
Yield / Ton Analysis 2Q 2Q % 1H 1H % 2022 2023 change 2022 2023 change 2,032 2,404 +18% Volume 3,596 4,599 +28% (Tons ‘000) 12,865 18,184 +41% Revenues 22,452 34,559 +54% (US$ ‘000) 6.33 7.56 +19% Revenue / Ton 6.24 7.51 +20% (US$) 6.33 +1.30 -0.07 7.56 6.24 +1.61 -0.35 7.51 Yield/Ton, Organic Forex
Slide 12: EBITDA and Free Cash Flow
EBITDA and Free Cash Flow EBITDA & EBITDA Margin Free Cash Flow (in US$ millions) (in US$ millions) 729 8% 672 484 41% 63% 63% 343 1H 2022 1H 2023 1H2022 1H2023 12
Slide 13: Liquidity and Capital Resources
Liquidity and Capital Resources
Slide 14: Capital Expenditure
Capital Expenditure 2022 Actual 2023 Budget 1H2023 Capex at $152M or 38% of Budget $42M $52M 11% 13% $82M 21% US$386M US$400M $262M 68% $348M 87% Expansionary New Projects Maintenance 2022A CAPEX mainly for: 2023B CAPEX mainly for: EXPANSIONARY: VICT, MICT, CMSA, ICTSNL, MICTSL, IDRC EXPANSIONARY: V
Slide 15: Balance Sheet Summary
Balance Sheet Summary Strong balance sheet with functional and reporting currency in USD Balance Sheet Highlights Debt Ratios (In US$ million) Dec 31, 2022 Jun 30, 2023 Dec 31, 2022 Jun 30, 2023 Total Assets 7,054 7,116 Gearing: Debt/SHE 1.43 1.37 Current Ratio: Total Liabilities 5,327 5,425 1.00 1.
Slide 16: Financing Charges & Other Expenses
Financing Charges & Other Expenses 1H 2022 1H 2023 % Change (In US$’ 000) Financing Charges & Other Expenses 88,934 91,700 +3% ▪ Interest Expense on Loans/Bonds 57,641 68,531 +19% ▪ Capitalized Borrowing Cost (184) (1,144) -522% ▪ Amortization of Debt Issue Cost 4,081 4,164 +2% ▪ Impairment Charge -
Slide 17: Principal Redemption Profile
Principal Redemption Profile As of June 30, 2023 (In US$ million) Relationship Banks Bonds Perpetual Securities Perp NC26 (3) 298 Perp NC24 (1) 100 290 400 400 300 269 July 17, 2023 272 146 36 34 34 28 19 19 20 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Notes: (1) Callable in 2024 with rate r
Slide 18: Summary
Summary Consolidated volume, revenue, and EBITDA all increased in 1H2023 due mainly to the consolidation of Manila North Harbor and trade recovery in certain terminals EBITDA Margin expanded to 63% in 2Q 2023 Continued balance sheet management with further debt repayments in 2Q 2023 and again in Jul
Slide 19: Questions and Answers
Questions and Answers
Slide 20: Conclusion and Outlook
Conclusion and Outlook A diversified portfolio supported a strong performance and cushioned macroeconomic environment Various revenue initiatives offset inflationary cost pressures All-time high EBITDA in 2Q2023 Balance sheet and cash generation are robust; well-positioned to capitalize on growth op
Slide 21: Appendix
Appendix
Slide 22: EESG: 2Q2023 Highlights
EESG: 2Q2023 Highlights ENVIRONMENT ECONOMY SOCIETY GOVERNANCE • Rio Brasil Terminal (RBT) is the first port terminal • Matadi Gateway Terminal (MGT) unveiled new • Various terminals have achieved safety • Different port calls from government institutions in Brazil to receive carbon-neutral certific
Slide 23: Proactive FX Risk Management
Proactive FX Risk Management Revenue Currency by Subsidiary Cash Expense Currency by Subsidiary ICTSI’s revenue and cash USD EUR Local Currency Subsidiaries Local Currency EUR USD Revenues from Port Operations expenses are favourably (1H 2023 Revenue Breakdown by Currency) 44% 56% PHP MICT 90% PHP 1
Slide 24: Capital Structure Breakdown (in USD '000)
Building a Value Accretive Capital Structure ICTSI has a proven track record of accessing diverse sources of capital with demonstrated strong investor following. The company has been successful in deploying capital to its existing terminals and expansion projects, more than doubling the no. of termi
Slide 25: Thank you!
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