International Container Terminal Services, Inc. · PSE:ICT
International Container Terminal Services — Q1 2020 Earnings Presentation
28 slides from International Container Terminal Services's earnings presentation, May 7, 2020
Slide 1: 1Q 2020 Investors' Briefing
1Q 2020 Investors’ Briefing May 7, 2020
Slide 2: Our Response to COVID-19: Four Areas of Focus
Our Response to COVID-19: Four Areas of Focus § Protecting lives and livelihoods, our people remain our No.1 priority § Continuing to provide excellent services to our customers § Living by our values: providing support and care for our host communities § Implementing measures to ensure ICTSI’s cont
Slide 3: COVID-19 Update
COVID-19 UPDATE A strong and resilient business Swift action taken to protect our people and ensure business continuity Diverse Driving Focused on Development of Shift to online revenue operational gateway cargo safety protocols transactions streams efficiency Agility Strong Enhanced Sound capital T
Slide 4: Highlights
Highlights Financial and Operational Performance Net income attributable to Volume Revenues EBITDA equity holders +1% -2% -5% -18% EBITDA Margin 56% § Volume flattish due to decline in trade activities caused by the impact of COVID-19 pandemic on global trade § EBITDA and EBITDA Margin lower due to
Slide 5: Agenda
Agenda 01 Recent Financial Performance 02 Liquidity and Capital Resources 03 Other Matters 04 Questions and Answers 05 Appendix 5
Slide 6: Recent Financial Performance
01 Recent Financial Performance
Slide 7: Volume and Revenue
Volume and Revenue Volume Revenue (in TEU) (in US$ ‘000) 2,325,540 2,478,672 2,508,986 325,380 383,784 375,776 7% 1% 18% -2% +27% 196,248 (51%) -8% 180,410 (48%) +5% 1,298,770 (52%) -3% 1,264,641 (50%) 1,241,309 (53%) 155,038 (48%) +11% +8% 120,446 (32%) +6% 787,947 (31%) 112,015 (29%) +7% 745,615 (
Slide 8: Consolidated P&L Highlights
Consolidated P&L Highlights (In US$ 000, except Volume and EPS) 1Q 2019 1Q 2020 % Change Volume slightly increased 1% primarily due to contribution of ICTSI Rio, a new terminal in Rio de Janeiro in Brazil, and Volume (in TEU) 2,478,6472 2,508,986 +1% new services at certain terminals; tapered by dec
Slide 9: Financing Charges & Other Expenses
Financing Charges & Other Expenses 1Q 2019 1Q 2020 % Change (In US$’ 000) Increased primarily due to COVID19-related expenses and the absence of capitalized Financing Charges & Other Expenses 28,322 33,182 +17% borrowing cost related to the Phase 2 expansion project in Basra, Iraq in 2019 § Interest
Slide 10: Proactive FX Risk Management
Proactive FX Risk Management ICTSI’s revenue and cash expenses are favourably matched, which provides a natural currency hedge that mitigates against volatility attributable to FX movements Revenue Currency by Subsidiary Cash Expense Currency by Subsidiary US$ Revenues from Port Operations (1Q 2020
Slide 11: 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 Mar-15 Sep-15 Nov-15 Mar-16 Sep-16 Nov-16 Mar-17 Sep-17 Nov-17 Mar-18 Sep-18 Nov-18 Mar-19 Sep-19 Nov-19 Mar-20 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jul-15 Jul-16 Jul-17 Jul-1
Slide 12: Yield/TEU and EBITDA Margin
Yield/TEU and EBITDA Margin Yield/TEU Evolution 155 -1.82 150 2.23 3.81 145 149.77 145.55 140 Yield/TEU Dec 2019 Organic New Terminal Forex Yield/TEU Mar 2020 EBITDA Margin Evolution 57% -0.40% 0.12% 0.70% 56% 56.46% 56.04% 55% EBITDA Margin % Organic New Terminal Forex EBITDA Margin % Dec 2019 Mar
Slide 13: Yield/TEU Comparison
Yield/TEU Comparison 1Q 2019 1Q 2020 % Change Volume (TEU ‘000) 2,479 2,509 +1% Revenues (US$ millions) 384 376 -2% Yield/TEU (US$) 155 150 -3% EBITDA (US$ millions) 223 212 -5% EBITA Margin 58% 56% FX: Negative impact of AUD, BRL, MXN, -2 tapered by positive impact of PHP -5 Lower revenues from sto
Slide 14: Liquidity and Capital Resources
02 Liquidity and Capital Resources
Slide 15: Balance Sheet Summary
Balance Sheet Summary (In US$ millions)0 Dec 31, 2019 Mar 31, 2020 Financial Ratios Intangible and Property and Equipment 3,590 3,373 Dec 31, 2019 Mar 31, 2020 Gearing: Debt/SHE 1.02 1.25 Lease Assets 576 483 Current Ratio: Current Assets/Current Cash and Cash Equivalents 235 450 0.72 0.80 Liabiliti
Slide 16: Principal Redemption Profile
Principal Redemption Profile As of March 31, 2020 (US$ millions) 600 Perp NC21 (1) 400 $265 Perp NC22 (3) $400 Perp $394 NC24 (2) 200 $375 $400 $267 $303 $280 $77 $86 - $26 $19 $5 2020 2021 2022 2023 2024 2025 2026 2027 Relationship Banks Bonds Perp Debt Breakdown(4) Others EUR 2% 2% AUD Subsidiary
Slide 17: Capital Expenditures
Capital Expenditures (In US$ millions) 2019B 2019A 2020B $45m $1m 12% $25m 1% $7m 10% 3% $54m 20% US$380m US$241 US$270m $335m $210m 88% $215 77% m 89% 2019 CAPEX mainly for: 2020B CAPEX mainly for: EXPANSIONARY: Manila, Honduras, Mexico & Iraq EXPANSIONARY: Manila, Mexico & DR Congo NEW: Rio Greenf
Slide 18: Other Matters
03 Other Matters
Slide 19: ICTSI Sustainability Reports
ICTSI Sustainability Reports 19
Slide 20: Recent Events
Recent Events Apr ICTSI 2020 Annual Stockholders’ Meeting rescheduled to Thursday, June 18, 2020 at 10:00am at The Tent at Solaire Resort & Casino 2020 Mar ICTSI declared a regular cash dividend in the amount of Php3.31 per share which was paid on April 16, 2020 Feb South Pacific International Termi
Slide 21: Concluding Remarks
Concluding Remarks § Proud of the dedication and determination of the ICTSI people across the world § Our ports are key to social and economic improvement in host countries; resilience and agility even more relevant § Living by our values and social purpose: focused on supporting our people and host
Slide 22: COVID-19: Supporting our Stakeholders
COVID-19: Supporting our Stakeholders § Php350m to national and local government agencies, communities, employees and port stakeholders § Donated personal protective equipment, ventilators, test kits and disinfectants to local hospitals and stakeholders § Mass rapid antibody testing of our employees
Slide 23: Questions and Answers
04 Questions and Answers
Slide 24: Appendix
05 Appendix
Slide 25: IMF Global Growth Forecast - Silver Lining
IMF Global Growth Forecast - Silver Lining § IMF projects global growth to contract 3% § Some regions more affected than others; DM vs EM § Bounce back in 2021 25
Slide 26: COVID-related community support projects
COVID-related community support projects PHILIPPINES • The Razon Group has contributed a significant amount to this fight against the spread of COVID19 in all the jurisdictions in which we operate; Donations are coursed through ICTSI Foundation and Bloomberry Cultural Foundation, Inc. ü Php100 milli
Slide 27: COVID-related community support projects
COVID-related community support projects ICTSI Foundation Organization Beneficiaries o Provided immunopacks to Coalition of Services for the indigent senior citizens. Elderly Immunopacks contain face masks, milk, vitamins rice and other food items o 1,600 Aeta families in Capas, Project Liwanag Ph,
Slide 28: Thank you!
International Container Terminal Services, Inc. bo 7 SES Sen 5 Bh. Thank you!
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