Nmtp · RUS:NMTP
Nmtp — Novorossiysk Commercial Sea Port (NCSP) — Investor Presentation (January 2008)
31 slides from Nmtp's investor presentation, January 2008
Slide 1: Investor Presentation
www.nmtp.info INVESTOR PRESENTATION NOVOROSSIYSK COMMERCIAL SEA PORT NCSP January 2008 1
Slide 2: Disclaimer
www.nmtp.info DISCLAIMER By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicit
Slide 3: Overview of NCSP
www.nmtp.info Overview of NCSP Investment Highlights Strategy Financial Review NOVOROSSIYSK COMMERCIAL SEA PORT NCSP 3
Slide 4: The Southern Gates of Russia
www.nmtp.info THE SOUTHERN GATES OF RUSSIA Cargo Turnover of Ports in the Black and Azov Sea Basin, 2006 (MM Tonnes) Novorossiysk (RUS) 81 3 Moldova Constanza Ukraine Taganrog Rostov-on-Don Constanza (RUM) 57 Uzhnyi Nikolaev Azov 31 Yeisk CPC (RUS) Odessa (UKR) 28 Ilyichevsk Odessa Tuapse (RUS) 21 A
Slide 5: Novorossiysk Commercial Sea Port: Key Highlights
www.nmtp.info NOVOROSSIYSK COMMERCIAL SEA PORT Key highlights Financial and operational statements • The largest port complex in Russia 9 months • “Natural monopoly” status 2005 2006 2007 2007 • 5th largest port in Europe Cargo Turnover, MM Tones 74.4 80.9 58.7 79.4 Revenue, US$ MM 189 277 332 505 •
Slide 6: Industry Consolidator
www.nmtp.info INDUSTRY CONSOLIDATOR NCSP (Novorossiysk Commercial Sea Port) Oil, oil products, containers, grain 85.68% 91.38% 65.18% (1) 99.99% (2) 72.65% 100.00% Fleet of NCSP (Fleet) NovorosLesExport Novorossiysk Ship Novorossiysk Grain IPP Baltic Stevedoring (NLE) Repair Yard (NSRZ) Terminal (NZ
Slide 7: Investment Highlights
www.nmtp.info Overview of NCSP Investment Highlights Strategy Financial Review NOVOROSSIYSK COMMERCIAL SEA PORT NCSP 7
Slide 8: Company Highlights
www.nmtp.info COMPANY HIGHLIGHTS 1 Russia's Largest Multi-Cargo Port 2 Geographically Advantageous Location - the Southern Gates of Russia 3 Well-developed Infrastructure 4 Rapidly Developing Port Business 5 Effective Management NOVOROSSIYSK COMMERCIAL SEA PORT NCSP 8
Slide 9: Russia's Largest Multi-Cargo Port
www.nmtp.info RUSSIA’S LARGEST MULTI-CARGO PORT Major Russian Seaports by Cargo Turnover, 2006 Largest Russian Port MM Tonnes The largest port operator in Russia by cargo turnover and Novoros s iys k 81 NSCP Other 5th largest in Europe Prim ors k 66 St Pe te rs burg “Natural monopoly” 54 M urm a
Slide 10: Geographically Advantageous Location
www.nmtp.info GEOGRAPHICALY ADVANTEGIOUS LOCATION Note: Map is not to scale and highly indicative Proximity to major producers in the Russian Federation Sea route from South-East Asia to Central Russia through Novorossiysk is approximately 8 days shorter than the sea route through Rotterdam and
Slide 11: Well-Developed Infrastructure
www.nmtp.info WELL-DEVELOPED INFRASTRUCTURE Rail Road Pipeline Ukraine Kazakhstan Kazakhstan Kazakhstan Ukraine Ukraine Rostov-on-Don Azov Sea Azov Azov Tengiz Sea Sea Tikhoretsk Caspian Caspian Caspian Sea Novorossiysk Sea Novorossiysk Sea Novorossiysk Black Sea Black Sea Black Sea Georgia Georgia
Slide 12: Rapidly Developing Port Business
www.nmtp.info RAPIDLY DEVELOPING PORT BUSINESS Growing Volume of Russia’s Foreign Trade Comments US$ Bn 900 : 16,3 % • NCSP aims on developing capacity to keep 20 11 E 750 20 00- 600 CAGR pace with the demand of Russia’s foreign trade 450 300 150 0 2000 2001 2002 2003 2004 2005 2006 2007E 2008E 2009
Slide 13: NCSP: Effective Management & Achievements in 2007
www.nmtp.info NCSP: Effective Management & Achievements in 2007 Full-segment consolidation of sea- port business in One Company 1. Optimization of cargo turnover 2. Improvement of internal logistics 3. Improvement stevedores specialization by IPO 4. 5. cargo type Optimization in human resources At
Slide 14: Regulation and Governance
www.nmtp.info REGULATION AND GOVERNANCE NCSP BoD Includes Several Regulation & The State Governmental Representatives Alexander Ponomarenko Federal Agency for Marine and River Transport: Chairman of the BoD • Ministry of Transportation subsidiary • Regulates the management of State property Regulate
Slide 15: Strategy
www.nmtp.info Overview of NCSP Investment Highlights Strategy Financial Review NOVOROSSIYSK COMMERCIAL SEA PORT NCSP 15
Slide 16: Strategy
www.nmtp.info STRATEGY Reap further benefits from 2006 Growth through restructuring further consolidation of port business Increase of capacity through modernisation and an expansion of capacity by expanding existing facilities Focus on high- and building new margin cargo facilities Participation in
Slide 17: Increase of Capacity through Modernization and Expansion
www.nmtp.info Increase of capacity through modernization and an expansion of capacity by expanding existing facilities and building new Expected increase annual cargo capacity to up to 112 MM Tonnes by 2011 while increasing revenue and profitability –Increase in profitability through more efficient
Slide 18: Reap Further Benefits from 2006 Consolidation
www.nmtp.info Reap Further Benefits from 2006 Consolidation Benefits from Consolidation Optimisation of Pricing Specialisation of Cost Optimisation Acquisitive Expansion Policies Stevedoring Companies Elimination of Internal Competition as a result of Specialisation Synergies • Price enhancement – T
Slide 19: Growth through Further Consolidation of Port Business
www.nmtp.info GROWTH THROUGHT FURTHER CONSOLIDATION OF PORT BUSINESS Consolidation Opportunities in North Western Consolidation, June 2006 & Southern Basins Stakes controlled before 16.37% 91.38% Stakes controlled after North-West Basin consolidation consolidation Murmansk 34.13% 85.68% (1) Arkhange
Slide 20: Focus on High-Margin Cargo
www.nmtp.info FOCUS ON HIGH-MARGIN CARGO Evolution of Cargo Mix 2004 2007 2011 Timber Other Timber Other Other Sugar 2% Sugar 2%1% 12% Grain 1% 11% 7% 43% Oil 2% Grain 7% Containers 15% Ferrous metals 11% Ferrous metals 10% Containers 1% 5% Grain 6% 4% Containers 67% 12% 56% Fertilizers 3% Oil produ
Slide 21: Participation in Development of Novorossiysk Transport Hub
www.nmtp.info Participation in Program of Complex Development of Novorossiysk Transport Hub Parties Involved in the Development of Program of Complex Development of Novorossiysk Transport Hub Novorossiysk Transport Hub NCSP State Russian Government is implementing a State programme of “Modernizati
Slide 22: Financial Review
www.nmtp.info Overview of NCSP Investment Highlights Strategy Financial Review NOVOROSSIYSK COMMERCIAL SEA PORT NCSP 22
Slide 23: Main Financial Statements, 9 Months 2007
www.nmtp.info •INCOME STATEMENTS (9 MONTHS AND Q3 OF 2007) Main financial statements (according to the consolidated unaudited financial results for the first nine months of 2007, in accordance with International Financial Reporting Standards) 9 months 9 months $ US млн. Q3 06 Q3 07 06 07 Cargo Turno
Slide 24: Preliminary Financial Statements 2007
www.nmtp.info PRELIMINARY FINANCIAL STATMENTS 2007 US$ млн. 2006 2007 Change 81 79 (2) Cargo Turnover, MM Tones 277 505 81% Revenue, US$ MM EBITDA , US$ MM 119 240 100% EBITDA Margin, % 43% 48% 5% Net Debt 506 471 (35) •Revenues up 81% to US$ 505 millions • 100% Growth of EBITDA up to US$240 NOTE: M
Slide 25: Changes in Debt Structure
www.nmtp.info CHANGES IN DEBT Change in Debt STRUCTURE Credit Ratings: S&P: BB+ - corp., ВВ+ - bonds Debt dynamics and interest rates Moody’s: Ba1 – corp., Ва2 - bonds $ 506 mln. $ 483 mln. $ 470 mln. 8.52% 7.80% 7.18% Eurobonds 87% $300 000 000 Unsecuritisation of debt 5 years 56.4% 7% 4.3% Syndica
Slide 26: Cost Structure
www.nmtp.info COST STRUCTURE Cost of Services SG&A 9 months 2007 9 months 2007 Total US$178 MM Total US$46 MM Other Raw Materials 10% Other Rent 5% Fuel for R&M 29% 25% 28% Payroll 2%2% resale Unified Social Tax 5% 5% 5% Insurance Unified Social Tax 2% Advertising 4% 14% 17% Taxes other than 25% Ren
Slide 27: Company Highlights
www.nmtp.info COMPANY HIGHLIGHTS 1 Russia's Largest Multi-Cargo Port 2 Geographically Advantageous Location - the Southern Gates of Russia 3 Well-developed Infrastructure 4 Rapidly Developing Port Business 5 Effective Management NOVOROSSIYSK COMMERCIAL SEA PORT NCSP 27
Slide 28: Questions?
www.nmtp.info QUESTIONS? Alexander Rybin Vice-president, Corporate Finance and Investor Relations +7 (495) 783-5444 ext. 2414 Rybin@nmtp.info Anton Frolov Head of Investor Relations Department +7 (495) 783-5444 ext. 2419 Frolov@nmtp.info NOVOROSSIYSK COMMERCIAL SEA PORT NCSP 28
Slide 29: Cash Flow Statement
www.nmtp.info CASH FLOW STATEMENT US$ (000s) 2005 2006 3Q2007 Cash Flows from Operating Activities Cash Generated from Operations 102,670 122,942 133,010 Income Tax Paid (24,272) (18,770) (22,797) Interest Paid - (21,316) (22,923) Net cash Generated by Operating Activities 78,398 82,856 86,290 Cash
Slide 30: Income Statements
www.nmtp.info INCOME STATEMENTS US$ (000s) 2005 2006 3Q2007 Revenue 189,246 277,277 331,990 Cost of Sales (101,997) (172,897) (178,041) Gross Profit 87,249 104,380 151,949 Gross Profit Margin, % 46% 38% 47% Selling, General and Administrative Expenses (20,540) (33,979) (46,059) EBITDA 105,357 119,07
Slide 31: Balance Sheet
www.nmtp.info BALANCE SHEET US$ (000s) 2005 2006 3Q2007 Assets Non-Current Assets Property, Plant and Equipment 334,343 664,166 730,178 Other 107,299 500,469 531,512 Current Assets Cash and Cash Equivalents 43,915 37,037 66,578 Other 103,938 95,206 74,784 Total Assets 589,495 1,296,878 1,403,052 Sha
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