International Container Terminal Services, Inc. · PSE:ICT
International Container Terminal Services — 2Q 2021 Earnings Presentation
29 slides from International Container Terminal Services's earnings presentation, Aug 5, 2021
Slide 1: 2Q 2021 Investors' Briefing
2Q 2021 Investors’ Briefing August 5, 2021
Slide 2: Highlights – 2Q2021 & 1H2021
Highlights – 2Q2021 & 1H2021 Financial and Operational Performance Net Income Volume Revenues EBITDA attributable to Equity 2Q2021 +20% +28% EBITDA margin +31% holders 60% +98% Net Income attributable Volume Revenues EBITDA to Equity holders 1H2021 +14% +22% EBITDA Margin +28% +73% 60% ▪ Continued m
Slide 3: Quarterly Highlights
Quarterly Highlights Reaping the benefits of cost optimization measures Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 (In US$ million except Volume, Yield to TEU & EBITDA margin) Volume (in TEU ‘000) 2,326 2,389 2,438 2,584 2,479 2,56
Slide 4: CAPEX and EBITDA
Rising EBITDA in a relatively Low CAPEX cycle ICTSI data (in million) CAPEX EBITDA CAPEX/EBITDA CAPACITY (TEUs) Axis Title 1,000 151% 160% 20.505 21.005 127% 19.275 17.925 750 120% CAPEX and EBITDA 14.855 88% 81% 12.700 13.780 (in US$) 11.970 75% 500 68% 10.920 80% 8.770 63% 50% 46% 7.070 7.070 35%
Slide 5: Increasing FCF
Increasing FCF ICTSI data (in US$ million) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 700 605 516 500 430 298 Free Cash Flow 300 96 109 100 75 18 29 12 -100 -180 -195 -300 5
Slide 6: Agenda
Agenda 01 Recent Financial Performance 02 Liquidity and Capital Resources 03 ESG 04 Questions and Answers 05 Appendix
Slide 7: Recent Financial Performance
01 Recent Financial Performance
Slide 8: Volume
Volume First Half Second Quarter (in TEUs) (in TEUs) 5,041,916 4,799,765 5,459,523 2,563,244 2,290,779 2,751,731 -11% +20% -5% +14% -9% +20% 649,249 (24%) 593,234 (23%) 540,554 (24%) 815,173 (30%) 752,389 (29%) -5% +15% -1% 1,299,261 (24%) 711,602 (31%) +13% 1,167,867 (23%) 1,154,489 (24%) -15% +24%
Slide 9: Revenues
Revenues First Half Second Quarter (in US$ ‘000) (in US$ ‘000) 368,000 348,485 447,037 751,785 724,261 882,624 -5% +28% +22 102,789 (23%) -4% +21% 91,783 (25%) -7% 84,918 (24%) 203,744 (23%) 137,998 (31%) -4% +17% +37% 106,537 (29%) -5% 101,090 (29%) 180,805 (24%) 174,104 (24%) +27% -4% 206,251 (46%
Slide 10: Consolidated P&L Highlights
Consolidated P&L Highlights 2Q 2020 2Q 2021 % Change (In US$ 000, 1H 2020 1H 2021 % Change except Volume and EPS) 2,290,779 2,751,731 +20% Volume (in TEU) 4,799,765 5,459,523 +14% 348,485 447,037 +28% Gross Revenues from 724,261 882,624 +22% Port Operations Cash Operating 103,793 125,730 +21% 222,83
Slide 11: Yield to TEU Analysis
Yield to TEU Analysis 2Q 2Q % 1H 1H % 2020 2021 change 2020 2021 change 2,291 2,752 +20% Volume 4,800 5,460 +14% (TEU ‘000) 348 447 +28% Revenues 724 883 +22% (US$ million) 152 162 +7% Yield/TEU 151 162 +7% (US$) 204 268 +31% EBITDA 416 532 +28% (US$ million) 59% 60% EBITDA Margin 57% 60% FX due to
Slide 12: 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 (1H 2021 Reve
Slide 13: Yield to TEU and EBITDA Margin
Yield to TEU and EBITDA Margin Yield to TEU Evolution 170 1.07 3.10 150 9.80 161.67 130 147.69 110 Yield to TEU Organic New Terminals Forex Yield to TEU Dec 2020 June 2021 EBITDA Margin Evolution 61% -0.12% 0.25% 59% 1.96% 60.33% 58.24% 57% EBITDA Margin % Organic New Terminals Forex EBITDA Margin %
Slide 14: Liquidity and Capital Resources
02 Liquidity and Capital Resources
Slide 15: Balance Sheet Summary
Balance Sheet Summary Financial Ratios (In US$ million) Dec 31, 2020 June 30, 2021 Dec 31, 2020 June 30, 2021 Intangible and Property and Equipment 3,457 3,639 Gearing: Debt/SHE 0.95 1.09 Current Ratio: Rights-of-use assets 612 588 Current Assets/Current Liabilities 1.98 1.52 Cash and Cash Equivalen
Slide 16: Principal Redemption Profile
Principal Redemption Profile As of June 30, 2021 (in US$ million) Perp NC26 (3) Perp NC22 (2) 298 394 Perp NC24 (1) 400 375 400 400 289 238 89 17 29 22 7 6 4 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Relationship Bonds Bonds Perp Notes: (1) Callable in 2024 with rate reset and 250–bp step–up
Slide 17: Capital Expenditures
Capital Expenditures (In US$ million) 2020B 2020A 2021B $7m $54m 3% $35m $57m 20% 18% 23% $24m US$270m 12% US$199m US$250m $139m $210m 70% 77% $193m 77% ORIGINAL 2020B CAPEX mainly for: 2021 CAPEX mainly for: EXPANSIONARY: Manila, Mexico, Ecuador & DR Congo EXPANSIONARY: Manila, Congo & Australia NE
Slide 18: Environmental, Social and Governance (ESG)
03 Environmental, Social and Governance (ESG)
Slide 19: ESG Initiatives
ESG Initiatives Environment Employees ESG Customers Governance Society Economy Icons designed by Freepik; Eucalyp 19
Slide 20: Conclusion and Outlook
Conclusion and Outlook ▪ Continued positive 2Q 2021 performance supported by 4C initiatives and favourable market conditions ▪ Strong recovery across our diversified geographic footprint with Volume, Revenues and EBITDA surpassing 2019 pre- pandemic performance ▪ Robust balance sheet and enhanced li
Slide 21: Questions and Answers
04 Questions and Answers
Slide 22: Appendix
05S Appendix
Slide 23: Benefits generated from 4Cs Initiatives
Benefits generated from 4Cs Initiatives Ensuring strength and resilience: our response to COVID-19 Areas of Focus (4Cs) ▪ Cash Preservation o improved collection processes o managed DSO and DPO more efficiently o accelerated and maximized Cash upstream to Parent ▪ Capital Expenditure Re-assessment o
Slide 24: Financing Charges & Other Expenses
Financing Charges & Other Expenses 1H 2020 1H 2021 % Change (In US$’ 000) Increased primarily due to the issuance of 10yr US$400M senior notes in June 2020 Financing Charges & Other Expenses 67,677 68,561 +1% tapered by lower COVID 19 related expenses ▪ Interest Expense on Loans/Bonds 48,151 53,196
Slide 25: Recent Events
Recent Events June ICTSI acquired 100% ownership of Manila Harbour Center Port Services, Inc. (MHCPSI) ICTSI concluded the acquisition of an additional 10% stake in ICTSI DR Congo (IDRC) May ICTSI started commercial operations of a multipurpose terminal in the Port of Onne in Rivers State, Nigeria 2
Slide 26: ESG initiatives
ESG initiatives Environment Governance Economy ▪ ICTSI remains committed to play an important role in helping the ▪ As we progressively refine our Environmental, Social, and Governance ▪ Continue to collaborate with our partners in key infrastructure maritime industry meet its CO2 reduction targets,
Slide 27: ESG initiatives
ESG initiatives Employees Customers Society ▪ In 2020, ICTSI has implemented standards, policies, and measures to ▪ To protect its employees, customers and port stakeholders against COVID- ▪ Mitigation of the pandemic’s impact remains at the core of ICTSI’s social prevent the further spread of the C
Slide 28: ICTSI Sustainability Reports
ICTSI Sustainability Reports OUR SUSTAINABILITY REPORTING JOURNEY Edition Covered 2017 2018 2019 2020 Published 2018 2019 2020 2021 • Selected metrics: Group-wide Coverage: • Selected metrics: Group-wide • Selected metrics: Group-wide • Selected metrics: Group-wide • For performance in Environment,
Slide 29: Thank you!
International Container Terminal Services, Inc. wom J thank you!
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