International Container Terminal Services, Inc. · PSE:ICT
International Container Terminal Services — Q1 2023 Earnings Presentation
25 slides from International Container Terminal Services's earnings presentation, May 8, 2023
Slide 1: 1Q 2023 Investors' Briefing
1Q 2023 Investors’ Briefing May 8, 2023
Slide 2: Recent Financial & Operational Highlights
Recent Financial & Operational Highlights 1Q2023 Consolidated Results (with MNHPI) Volume Yield(1) EBITDA EBITDA Net Income(2) Revenues EBITDA +9% -2% +8% Margin 62% +5% D. EPS (3) +12% +9% ▪ MNHPI consolidation drove volume and revenue growth; impacted yield ▪ Tariff adjustments boosted revenues; h
Slide 3: Quarterly Results
Quarterly Results Business fundamentals remain constructive despite near term cyclical weakness and high inflationary environment Gross Revenues Operating Expenses EBITDA 3,360 3,104 3,102 192 2,920 Yield per TEU* (in US$) 189 2,897 2,833 2,767 2,752 2,807 2,708 183 2,627 603 2,509 577 572 2,291 528
Slide 4: Governance and Sustainability
Governance and Sustainability “ Environment We continue to carefully identify, assess and “ Social We remain committed in nurturing the “ Governance In accordance with our Global Principles on manage our climate-related risks, with the ambition communities where we serve through Human Capital, our D
Slide 5: Agenda
Agenda 01 Recent Financial Performance 02 Liquidity and Capital Resources 03 Questions and Answers 04 Appendix
Slide 6: Recent Financial Performance
01 Recent Financial Performance
Slide 7: Consolidated P&L Highlights
Consolidated P&L Highlights 1Q 2022 1Q 2023 % Change (In US$ ‘000, except Volume and EPS) Volume (in TEU) 2,833,001 3,102,105 +9% Gross Revenues from Port Operations 528,267 572,246 +8% Cash Operating Expenses 137,105 163,135 +19% EBITDA 337,852 354,199 +5% EBIT 274,649 281,190 +2% Financing Charges
Slide 8: Volume and Revenue
Volume and Revenue Volume Gross Revenues (in ‘000 TEUs) (in US$ millions) 2,708 2,833 3,102 436 528 572 +9% +8% +5% 647 +21% 21% 671 -3% +7% 123 650 +3% 24% 21% 24% 115 22% +14% 835 27% 101 831 +1% 23% 175 873 -5% -4% 31% 29% 183 32% +24% 35% 148 34% +22% +19% +12% 1,620 +23% 1,332 52% 274 1,185 47%
Slide 9: Yield / TEU Analysis
Yield / TEU Analysis % 1Q 2022 1Q 2023 Difference change Volume 2,833 3,102 269 +9% (TEUs ‘000) Revenues 518,680 555,871 37,191 +7% (US$ ‘000) Revenue / TEU 183 179 -4 -2% (US$) 183 +11 -12 -3 179 Yield/TEU, Organic & MNHPI Forex Yield/TEU, Mar 2022 Discontinued Mar 2023 terminals Note: Excluding pr
Slide 10: Yield / Ton Analysis
Yield / Ton Analysis % 1Q 2022 1Q 2023 Difference change Volume (Tons ‘000) 1,563 2,195 632 +40% Revenues (US$ ‘000) 9,587 16,375 6,788 +71% Revenue / Ton (US$) 6.13 7.46 1.33 +22% 6.13 +1.82 -0.49 7.46 - Yield/Ton Organic Forex Yield/Ton Mar 2022 Mar 2023 Note: Pertains to non-containerized termina
Slide 11: Cash Operating Expenses
Cash Operating Expenses (ORGANIC) 1Q 2022 1Q 2023 % change % change Volume (in TEUs) 2,833,001 3,102,105 +9% -1% Cash Operating Expenses (in US$ ‘000) 137,105 163,135 +19% +14% Cash Opex per TEU (in US$) 48.4 52.6 +9% +14% 11
Slide 12: EBITDA and EBITDA Margin
EBITDA and EBITDA Margin EBITDA (In US$ million) EBITDA Margin 338 354 63. 95% -2.22 +0.29 -0.13 61.90% 5% 63.95% 61.90% EBITDA Organic & MNHPI Forex EBITDA Margin %, Discontinued Margin %, Mar 2022 terminals Mar 2023 1Q 2022 1Q 2023 12
Slide 13: Liquidity and Capital Resources
02 Liquidity and Capital Resources
Slide 14: Capital Expenditure
Capital Expenditure 2022 Actual 2023 Budget 1Q2023 Capex at $88M or 22% of Budget $42M $52M 11% 13% $82M 21% US$386M US$400M $262M 68% $348M 87% 2022A CAPEX mainly for: 2023B CAPEX mainly for: EXPANSIONARY: VICT, MICT, CMSA, ICTSNL, MICTSL, IDRC EXPANSIONARY: VICT, MICT, CMSA, ICTSNL, MICTSL, IDRC,
Slide 15: Balance Sheet Summary
Balance Sheet Summary Strong balance sheet with functional and reporting currency in USD Balance Sheet Highlights Debt Ratios (In US$ million) Dec 31, 2022 Mar 31, 2023 Dec 31, 2022 Mar 31, 2023 Total Assets 7,054 6,886 Gearing: Debt/SHE 1.43 1.54 Current Ratio: Total Liabilities 5,327 5,326 1.00 0.
Slide 16: Financing Charges & Other Expenses
Financing Charges & Other Expenses 1Q 2022 1Q 2023 % Change (In US$’ 000) Financing Charges & Other Expenses 43,497 40,780 -6% ▪ Interest Expense on Loans/Bonds 28,252 35,126 +24% ▪ Capitalized Borrowing Cost (100) (501) -401% ▪ Amortization of Debt Issue Cost 2,015 2,055 +2% ▪ Other Expenses 13,330
Slide 17: Principal Redemption Profile
Principal Redemption Profile As of March 31, 2023 (In US$ million) Relationship Banks Bonds Perpetual Securities 461 Perp NC26 (3) 65 298 396 Perp NC24 (1) Apr 25, 2023 290 400 400 300 272 140 36 34 34 33 19 19 20 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Notes: (1) Callable in 2024 with rat
Slide 18: Summary
Summary ▪ Volume, revenue, and EBITDA all increased for Q1 2023 compared to Q1 2022 due to the consolidation of Manila North Harbor as well as management focus on yield improvement and margins ▪ Net Income increased 9% and Diluted EPS increased 12% reflecting improved profitability throughout the in
Slide 19: Q&A
03 Q&A
Slide 20: Conclusion and Outlook
Conclusion and Outlook ▪ Well-positioned in a weak macroeconomic environment: focused O&D strategy and diversified portfolio ▪ Proactive cost management to offset inflationary pressure remains a key priority ▪ Robust balance sheet and cash generation to withstand headwinds and deliver sustainable gr
Slide 21: Appendix
04 Appendix
Slide 22: EESG: 1Q2023 Highlights
EESG: 1Q2023 Highlights Environment Economy Society Governance • Contecon Manzanillo is the first • ICTSI added another berth at the MICT. • South Pacific International Container • ICTSI has joined the UN Global Compact organization across the Mexican port The expansion will increase MICT’s Terminal
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 (1Q 2023 Revenue Breakdown by Currency) 42% 58% PHP MICT 91% PHP 1
Slide 24: Building a Value Accretive Capital Structure
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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