Dvmp · RUS:FESH
Dvmp — FESCO Transportation Group — 9M 2013 Earnings Presentation
28 slides from Dvmp's earnings presentation, Nov 28, 2013
Slide 1: FESCO Transportation Group operational and financial results for 3Q and 9M2013
FESCO Transportation Group operational and financial results for 3Q and 9M2013 Investor conference call – November 28, 2013
Slide 2: Today's Presenters
Today’s Presenters Ruslan Alikhanov Elena Shmatova President and Chief Financial Officer Chief Executive Officer 2
Slide 3: Table of Contents
Table of Contents 1. Key Highlights 2. Divisional Performance Overview A. Port Division B. Rail Division C. Liner and Logistics Division D. Shipping Division 3. 9m 2013 Financial Overview 3
Slide 4: 1. Key Highlights
1. Key Highlights FESECP Transportation Group
Slide 5: Executive Summary
Executive Summary • Significant improvement in company performance in 3Q2013 compared to 2Q and 1Q of 2013. 3Q2013 Group EBITDA grew 3.3% vs. 2Q2013 to $53m, mostly driven by Port segment development • Group EBITDA margin increased to 18.2% in 3Q2013 from 17.5% in 1Q of 2013 with Port performance as
Slide 6: Group Performance
Group Performance Comments Quarterly Revenue and EBITDA Development • Sustainable Group performance recovery in 3Q2013 after negative trend beginning 3Q2012 and decrease of top line Group performance in 300 53 55 1Q2013. 290 51 48 50 • Group EBITDA margin increased to 18.2% in 3Q2013 from 17.5% in 1
Slide 7: Divisional Performance (1)
Divisional Performance (1) Comments Quarterly Revenue Development • Revenue growth in 3Q2013 compared to 2Q2013 driven by Port 35 31 12 35 and Bunkering, LLD and Shipping divisions was partially offset by 18 11 15 revenue decrease in Rail division - • Port revenue remained flat in 3Q2013 vs. 2Q2013
Slide 8: Divisional Performance (2)
Divisional Performance (2) Q1-Q3 2013 Performance EBITDA per division ($m) Q1 2013 Q2 2013 Q3 2013 9m 2013 Port Division 18 26 30 74 Rail Division 28 25 20 73 Line and Logistics Division 9 9 9 26 Shipping Division 0 (4) (1) (5) Bunkering - 1 1 2 Corporate (7) (5) (6) (18) EBITDA 48 51 53 152 Source:
Slide 9: A. Port Division
A. Port Division FESECP Transportation Group
Slide 10: Russian Port Market Update
Russian Port Market Update Comments Container Transportation in Russian Ports, 9M 2013 Total Containers ‘000 TEU Import Containers ‘000 TEU Overall Market 3 976 4.9% 1,756 3 756 5.9% 1,674 • Total throughput of Russian ports increased by 3.8% in 9m 515 10.2% 568 283 (14)% 254 11.5% (16)% 2013, with
Slide 11: Port Division: Key Operational and Financial Metrics
Port Division: Key Operational and Financial Metrics Port Division (VMTP+VCT), Dynamics • In 3Q2013 FESCO container volumes grew by 5.6% YoY to 125,507 ($m) 9m 2012 9M 2013 (%) TEUs and in 9m2013 FESCO container volumes grew by 3% YoY Total Container Volumes ('000 TEU) 338,768 349,309 3% • Cabotage
Slide 12: B. Rail Division
B. Rail Division FESECP Transportation Group
Slide 13: Russian Rail Market Update
Russian Rail Market Update Freight Transportation Freight Transportation Comments Volume (m tons) Turnover (bn tons-km) 115 195 • Challenging Rail Market Environment: In 9M 2013, freight volumes demonstrated 3.0% yoy decline mainly driven by low industrial 190 110 production in Russia and weak deman
Slide 14: Rail Division: Key Operational and Financial Metrics
Rail Division: Key Operational and Financial Metrics 9M 2013 vs. Comments ($m) 9M 2012 9M 2013 9M2012 (%) • In 9m2013 Rail container transportation volume outperformed the Container Transportation (TEU)¹ 198,542 209,789 6% market and were up 6% driven by – increasing demand for containerised cargo a
Slide 15: C. Liner and Logistics Division
C. Liner and Logistics Division
Slide 16: Freight Rates Dynamics (USD per TEU)
Freight Rates Dynamics (USD per TEU) Source: Shanghai Shipping Exchange 16
Slide 17: Liner and Logistics Division: Key Operational and Financial Metrics
Liner and Logistics Division: Key Operational and Financial Metrics Comments 9M 2013 vs. ($m) 9M 2012 9M 2013 9M 2012 (%) • Intermodal freight transportation volumes increased by 19% yoy to Intermodal Volumes (TEU) 151,362 179,592 19% 179,592 TEUs in 9m 2013 driven by high demand for integrated logi
Slide 18: D. Shipping Division
D. Shipping Division FESECP Transportation Group
Slide 19: Shipping Division: Key Operational and Financial Metrics
Shipping Division: Key Operational and Financial Metrics Comments 9M 2013 vs. ($m) 9M 2012 9M 2013 9M 2012 (%) • FESCO fleet decreased by 15 vessels and 64% in DWT terms as part No. of Vessels (EoP) 45 30 (33%) of the fleet optimization program. 2 fuel-inefficient vessels scrapped and replaced with
Slide 20: 3. 9M 2013 Financial Overview
3. 9M 2013 Financial Overview
Slide 21: Capital Investments
Capital Investments Comments ($m) 9m 2012 9m 2013 Shipping Division (5.7) 0.3 • Significantly reduced capital expenditures in order to focus on cash from operations serving the debt. Low CAPEX level intact through Acquisition of fleet - 9.3 2013 Expenditure on vessels under construction 8.7 - • Port
Slide 22: Leverage Overview
Leverage Overview Comments Net Debt¹ / LTM Adjusted EBITDA² • $875m of the acquisition financing and part of pre-existing loans 3,5 4,4 refinanced by issuing Senior Secured Notes due 2018 and 2020 2,2 • RUB 5bn bond due 2016 issues to refinance the remaining OpCo facility and pre-existing loans • Im
Slide 23: Debt Structure
Debt Structure Debt structure Debt breakdown by currency 1% 7% 20% 14% 0% 80% 78% Senior Secured Notes due 2018 and 2020 RUR EUR USD Rouble bonds due 2016 Finance leases Bilateral Loan Facilities As of 30-September 2013, total debt(1) amounted to $1,103m Source: Company info Note (1): Excluding non-
Slide 24: Free Cash Flow
Free Cash Flow Key Cash Flow Indicators ($m) 2011 2012 9m 2013 LTM Operating cashflow 161 183 134 CAPEX (129) (9) (24) Free cash flow before acquisitions 32 174 110 Interests 43 52 79 Pro-forma debt 697 1 192 1 103 Cash 232 215 156 Pro-forma net debt 466 976 947 Adjusted EBITDA 210 279 213 Net Debt
Slide 25: Appendix
Appendix FESECP Transportation Group
Slide 26: Divisional Performance on Adjusted Basis
Divisional Performance on Adjusted Basis 9m 2013 Performance Division ($m) Port Rail LLD Shipping Corporate Group Adjusted Revenue 197 198 496 43 (85) 850 YoY Change (%) 25% (26)% 9% (38)% (3)% Adjusted EBITDA 76 73 27 (5) (12) 159 YoY Change (%) (4)% (45)% (19)% 144% (29)% Adjusted EBITDA Margin (%
Slide 27: Revenue and EBITDA Evolution
Revenue and EBITDA Evolution Revenue 9m 2013 vs. 9m 2012 20 43 47 (70) (67) (15) 892 850 9M 2012 Port Rail LLD Shipping FB Other 9M 2013 EBITDA 9m 2013 vs. 9m 2012 8 33 (60) 2 176 (7) (1) 152 9M 2012 Port Rail LLD Shipping FB Corporate 9M 2013 Source: Company info 27
Slide 28: IR Team Contacts
IR TEAM CONTACTS: Galina Shilina Director, Corporate Communications GShilina@fesco.com Ekaterina Semenova IR Manager ESemenova@fesco.com 28 28
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