International Container Terminal Services, Inc. · PSE:ICT
International Container Terminal Services — FY2021 Earnings Presentation
30 slides from International Container Terminal Services's earnings presentation, Mar 3, 2022
Slide 1: FY 2021 Investors' Briefing
FY 2021 Investors’ Briefing March 3, 2022
Slide 2: Highlights
Highlights Financial and Operational Performance Net income attributable to Volume Revenues EBITDA equity holders +10% +24% +30% +321% EBITDA Recurring Margin Net Income 61% +57% ▪ Continued momentum and favourable market conditions raised financial and operational performance in 2021 ▪ Double digit
Slide 3: 2020 & 2021 Quarterly Highlights
2020 & 2021 Quarterly Highlights Reaping the benefits of operating leverage (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 Volume (in TEU ‘000) 9,737 10,178 2,509 2,291 2,627 2,767 2,708 2,752 2,807 2,897 Gro
Slide 4: 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 4
Slide 5: Agenda
Agenda 01 Recent Financial Performance 02 Liquidity and Capital Resources 03 Questions and Answers 04 Appendix
Slide 6: Recent Financial Performance
01 Recent Financial Performance
Slide 7: Volume and Revenue
Volume and Revenue Volume Revenue in TEUs) (in US$ ‘000) 10,178,018 10,193,384 11,163,473 1,481,412 1,505,500 1,865,020 +10% +24% 0.2% +2% 425,897 (23%) 2,657,555 (24%) 2,347,355 (23%) 2,399,834 (24%) +11% +18% +2% 362,795 (24%) -0.4% 361,519 (24%) 3,377,135 (30%) 602,509 (32%) 2,979,852 (29%) 3,092
Slide 8: Consolidated P&L Highlights
Consolidated P&L Highlights (In US$ 000, except Volume and EPS) 2020 2021 % Change Volume higher by 10% primarily due to volume growth and improvement in trade activities as economies recover from Volume (in TEU) 10,193,384 11,163,473 +10% the impact of the COVID-19 pandemic and lockdown restriction
Slide 9: Recurring Net Income
Recurring Net Income (In US$ 000) 2020 2021 % Change Net Income Attributable to Equity Holders 101,764 428,569 +321% Non-recurring item: ▪ Add: Impairment charge on the concession rights assets of TECPLATA 100,000 - ▪ Add: Charges associated with the prepayment of loan facilities at VICT, net of tax
Slide 10: Yield / TEU Analysis
Yield / TEU Analysis % 2020 2021 change Volume 10,193 11,163 +10% (TEUs ‘000) Revenues 1,498,369 1,838,645 +23% (US$ ‘000) Revenue / TEU 146.99 164.70 +12% (US$) FX due to favorable translation impact of AUD, +1.90 PHP, MXN, RMB and EUR partially tapered by unfavorable translation impact of BRL and
Slide 11: Yield / Ton Analysis
Yield / Ton Analysis % 2020 2021 change Volume (Tons ‘000) 1,390 4,246 +206% Revenues (US$ ‘000) 7,131 26,376 +270% Revenue / Ton (US$) 5.13 6.21 +21% +0.01 FX due to favorable translation impact of PHP +1.08 Contribution of new non-containerized terminals, +1.07 KMT and MHCPSI Note: Includes predom
Slide 12: Yield per TEU and EBITDA Margin Evolution
Yield per TEU and EBITDA Margin Evolution Yield to TEU Evolution* 170 1.37 1.90 14.44 150 164.70 146.99 130 Yield/TEU Organic New Terminals Forex Yield/TEU Dec 2020 Dec 2021 *Note: Excluding predominantly non-containerized terminals (MHCPSI, KMT, BIPI and HIPS) Consolidated EBITDA Margin Evolution 6
Slide 13: Liquidity and Capital Resources
02 Liquidity and Capital Resources
Slide 14: Balance Sheet Summary
Balance Sheet Summary Financial Ratios (In US$ million) Dec 31, 2020 Dec 31, 2021 Dec 31, 2020 Dec 31, 2021 Intangibles and Property and Gearing: Debt/SHE 0.95 1.42 Equipment 3,457 3,588 Current Ratio: Rights-of-use assets 612 664 Current Assets/Current Liabilities 1.98 1.81 Cash and Cash Equivalent
Slide 15: Principal Redemption Profile
Principal Redemption Profile As of September 30, 2021 (US$ millions) Perp NC26 (3) Perp NC22 (2) 298 394 Perp NC24 (1) 400 375 400 400 288 230 94 10 29 22 6 6 4 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 As of December 31, 2021 Relationship Banks Bonds Perp (US$ millions) Perp NC26 (3) 2
Slide 16: Liability Management Exercise
Liability Management Exercise LME transaction replacing 2022 and 2024 perpetual securities with 10Y Senior Dated Bond Perpetual Securities Senior Dated Bond • Higher coupon - Fixed For Life • Lower Coupon • Shorter tenor - 2024 has a step-up • Longer dated tenor • Equity accounted • Debt accounted •
Slide 17: 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 $288m 66% 87% 2021A CAPEX mainly for: 2022B CAPEX mainly for: EXPANSIONARY: Manila, DR Congo, Australia, Mexico & Ecuador EXPANSIONARY: Madagascar, DR Congo, Australia,
Slide 18: Rising EBITDA in a relatively Low CAPEX cycle
Rising EBITDA in a relatively Low CAPEX cycle ICTSI data (in million) CAPEX EBITDA CAPEX/EBITDA CAPACITY (TEUs) Axis Title 1,250 151% 160% 20.505 21.055 21,055 127% 19.275 1,000 17.925 CAPEX and EBITDA 120% 88% 14.855 750 81% 13.780 12.700 (in US$) 11.970 75% 68% 10.920 80% 500 50% 8.770 63% 46% 35%
Slide 19: Conclusion and Outlook
Conclusion and Outlook ▪ Strong Volume, Revenue, EBITDA and Net income performance to date ▪ Selective and disciplined capex programme aimed at creating further value ▪ Robust FCF providing more room to improve shareholder return and implement the Company’s deleveraging program ▪ Closely monitor geo
Slide 20: Our Responsibilities
Our Responsibilities Vaccination Program Relief Efforts The ICTSI Foundation has led the private sector in its negotiations with the Philippine The ICTSI Foundation has completed the successful rollout of relief assistance for over government and American drug manufacturer Moderna for the largest co
Slide 21: Questions and Answers
03 Questions and Answers
Slide 22: Appendix
04 Appendix
Slide 23: 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 24: ESG initiatives
ESG initiatives Environment Governance Economy ▪ Sustainable River Rehabilitation. Our social responsibility arm ICTSI Foundation ▪ ESG Sub-Committee. As we progressively refine our Environmental, Social, signed a partnership agreement with Finnish NGO RiverRecycle to pioneer a financially • New acq
Slide 25: ESG initiatives
ESG initiatives Employees Customers Society ▪ Vaccination program. Throughout this pandemic, our collective ▪ Seamless solutions for greater connectivity. Inter-terminal cargo • Forerunner of Vaccine Procurement. The ICTSI Foundation has led response to the crisis has always focused on protecting th
Slide 26: Recent Events
Recent Events 2022 Mar ICTSI declared total dividends of Php6.00 per common share (Php5.56 regular dividend and Php0.44 special dividend) payable on March 28, 2022 Dec ICTSI extended Madagascar concession by 15 years to 2040 ICTSI concluded the Tender Offer relating to Senior Guaranteed Perpetual Se
Slide 27: 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 28: Financing Charges & Other Expenses
Financing Charges & Other Expenses 2020 2021 % Change (In US$’ 000) Decreased mainly due to lower impairment charges on non-financial assets and non- recurring charges associated with the prepayment of loan facilities at VICT totaling US$16.74 million in 2021 compared to the impairment charges on co
Slide 29: 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 30: Thank you!
International Container Terminal Services, Inc. wom J thank you!
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