International Container Terminal Services, Inc. · PSE:ICT
International Container Terminal Services — FY2019 Earnings Presentation
27 slides from International Container Terminal Services's earnings presentation, Mar 5, 2020
Slide 1: Investors' Briefing FY 2019
FY 2019 Investors’ Briefing March 5, 2020
Slide 2: Highlights
Highlights Strong Financial and Operational Performance Net income Recurring Net income attributable to attributable to Volume Revenues EBITDA equity holders equity holders +5% +7% +10% -52% +23% EBITDA Margin 56% ▪ Positive FY volume and revenue growth despite global headwinds ▪ Higher EBITDA Margi
Slide 3: Agenda
Agenda 01 Recent Financial Performance 02 Liquidity and Capital Resources 03 Other Matters 04 Questions and Answers 05 Appendix
Slide 4: Recent Financial Performance
01 Recent Financial Performance
Slide 5: Volume and Revenue
Volume and Revenue Volume Revenue (in TEU) (in US$ ‘000) 9,153,458 9,736,621 10,178,018 1,244,438 1,385,785 1,481,412 6% 5% 11% 7% +3% +9% 5,403,839 (53%) 748,585 (51%) 5,237,452 (54%) +17% 694,300 (50%) +8% 4,815,905 (53%) 591,246 (48%) +1% +4% 422,754 (28%) 2,979,852 (29%) 407,071 (29%) 2,935,281
Slide 6: Consolidated P&L Highlights
Consolidated P&L Highlights (In US$ 000, except Volume and EPS) 2018* 2019 % Change Volume up 5% mainly due continuing ramp-up at new terminals in PNG and contribution of new terminal in Rio, Brazil; Volume (in TEU) 9,736,622 10,178,018 +5% improvement in trade activities at SBITC, IDRC and ICTSI Ir
Slide 7: Financing Charges & Other Expenses
Financing Charges & Other Expenses 2018* 2019 % Change (In US$’ 000) Higher due to interest expense, lower capitalized borrowing cost, acceleration of debt Financing Charges & Other Expenses 128,582 283,991 +121% issue cost associated with the partial prepayment of Euro-denominated term loan and the
Slide 8: Recurring Net Income
Recurring Net Income (In US$ 000) 2018* 2019 % Change Net Income Attributable to Equity Holders 207,477 100,367 -52% Non-recurring item: ▪ Add: Impairment charge on the concession rights assets of TECPLATA - 156,000 ▪ Less: MTM Gain on derivative of CMSA (2,752) – ▪ Add: Impairment charge on goodwil
Slide 9: 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 US$ Revenues from Port Operations (2019 Rev
Slide 10: FX Movement
FX Movement FX Movement since January 2015 and bottom line effect on ICTSI’s margins 80 100 120 140 160 Currency PHP BRL PKR RMB MXN EUR AUD January-December Ave 2018 52.68 3.66 121.78 6.62 19.23 1.18 0.75 180 Ave 2019 51.79 3.95 150.36 6.91 19.25 1.12 0.70 Growth 1.7% -7.9% -23.5% -4.35 -0.1% -5.2%
Slide 11: Yield/TEU and EBITDA Margin
Yield/TEU and EBITDA Margin Yield/TEU Evolution 150 0.83 1.42 3.82 140 142.33 145.55 130 120 Yield/TEU Dec 2018 Organic New Terminals Forex Yield/TEU Dec 2019 EBITDA Margin Evolution 57% 56% 0.59% 55% 0.37% 0.57% 56.04% 54% 54.51% 53% EBITDA Margin % Dec 2018 Organic New Terminals Forex EBITDA Margi
Slide 12: Yield/TEU Comparison
Yield/TEU Comparison 2018* 2019 % Change Volume (TEU ‘000) 9,737 10,178 +5% Revenues (US$ millions) 1,386 1,481 +7% Yield/TEU (US$) 142 146 +2% EBITDA (US$ millions) 755 830 +10% EBITA Margin 55% 56% *December 31, 2018 as Restated FX: Negative impact of EUR, BRL, AUD, -1 PGK, tapered by positive imp
Slide 13: Liquidity and Capital Resources
02 Liquidity and Capital Resources
Slide 14: Balance Sheet Summary
Balance Sheet Summary (In US$ millions) Dec 31, 2018* Dec 31, 2019 Financial Ratios Intangible and Property and Equipment 3,333 3,590 Dec 31, 2018* Dec 31, 2019 Gearing: Debt/SHE 0.67 1.02 Lease Assets 591 576 Current Ratio: Current Assets/Current Cash and Cash Equivalents 447 235 1.51 0.72 Liabilit
Slide 15: Principal Redemption Profile
Principal Redemption Profile As of Dec 31, 2019 (US$ millions) 600 Millions 400 Perp NC22 (3) Perp NC21 (1) Perp NC24 (2) 200 EUR38M Term Loan 0 2020 2021 2022 2023 2024 2025 2026 2027 LT / Bonds Perp Debt Breakdown(4) Others Euro 2% Floating 3% 10% AUD Subsidiary 14% 18% Rate Currency Subsidiary US
Slide 16: Capital Expenditures
Capital Expenditures (In US$ millions) 2019B 2019A 2020B $45m $1m 12% $25m 1% $7m 10% $54m 3% 20% US$380m US$241 US$270m $335m $210m 88% $215m 77% 89% 2019 CAPEX mainly for: 2020B CAPEX mainly for: EXPANSIONARY: Manila, Honduras, Mexico & Iraq EXPANSIONARY: Manila, Mexico & DR Congo NEW: Rio Greenfi
Slide 17: Other Matters
03 Other Matters
Slide 18: ICTSI Sustainability Reports
ICTSI Sustainability Reports
Slide 19: Recent Events
Recent Events 2020 Feb South Pacific International Terminal Limited (“SPICTL”) entered into agreements with the local communities - Ahi and Labu, to each acquire a 15% stake of SPICTL ICTSI received from the Sudanese Government a second partial repayment of the Upfront Fee in the amount of AED110,19
Slide 20: Questions and Answers
04 Questions and Answers
Slide 21: Appendix
05S Appendix
Slide 22: Entities with PFRS 16 Impact
Entities with PFRS 16 Impact Lease Term End of Lease Term (in years) Victoria International Container Terminal Ltd. (VICT) 26 2040 Australia Contecon Mazanillo S.A. (CMSA) 34 2044 Mexico Tecon Suape S.A. (TSSA) 30 2031 Brazil Baltic Container Terminal (BCT) 20 2023 Poland Mindanao International Cont
Slide 23: Impact of PFRS 16 on 2018 P&L
Impact of PFRS 16 on 2018 P&L (In US$ 000) Dec 31, 2018 EBITDA – Pre PFRS 16 ▪ Port Authorities’ Share in Gross Revenues 24,952 642,221 ▪ Equipment and Facilities – related expenses 88,233 Fixed and Guaranteed Port Fees 113,185 EBITDA – Post PFRS 16 755,406 Net Income – Pre PFRS 16 ▪ Fixed and Guara
Slide 24: Lease Expense
Impact of PFRS 16 90 80 A Lease expense under old standard 70 Lease Expense 60 B 50 40 30 C Depreciation of lease assets 20 10 Interest accretion on lease liabilities 0 Category 1 Category 2 Category 3 Lease Term A = Lease expense under old standard B + C = Lease expense under new standard (PFRS16)
Slide 25: Impact of PFRS 16 on 2018 Balance Sheet
Impact of PFRS 16 on 2018 Balance Sheet Dec 31, 2018 PFRS 16 Dec 31, 2018 (In US$ millions) (Audited) adjustments (Restated) Intangible and Property and Equipment 3,344 – 3,344 Lease Assets – +523 523 Cash and Cash Equivalents 447 – 447 Other Current and Non-current Assets 912 +90 1,002 Total Assets
Slide 26: Impact of PFRS 16 on 2018 Cash Flows
Impact of PFRS 16 on 2018 Cash Flows Dec 31, 2018 PFRS 16 Dec 31, 2018 (In US$ ‘000) (Audited) adjustments (Restated) Net Cash Flows from Operating Activities 642,404 53,383 695,787 Net Cash Flows from Investing Activities (327,900) – (327,900) Net Cash Flows from Financing Activities (132,554) (53,
Slide 27: Thank you!
International Container Terminal Services, Inc. wom J thank you!
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