International Container Terminal Services, Inc. · PSE:ICT
International Container Terminal Services — Q2 2019 Earnings Presentation
28 slides from International Container Terminal Services's earnings presentation, Aug 13, 2019
Slide 1: 2Q 2019 Investors' Briefing Presentation
2Q 2019 Investors’ Briefing Presentation August 13, 2019
Slide 2: Highlights
Highlights Strong Financial and Operational Performance Volume Revenues EBITDA Net income* +7% +14% +19% +42% ▪ Exceptional volume and revenue growth despite global headwinds ▪ Benign Cash Opex increase drove higher EBITDA margins and superb EBITDA growth ▪ Lower financing cost and better performanc
Slide 3: Agenda
AGENDA Recent Financial Performance 2 Liquidity Resources and Capital 3 Other Matters 4 Questions and Answers 5 Appendix
Slide 4: Volume
Volume First Half Second Quarter (in TEU) (in TEU) 4,545,404 4,714,255 5,041,916 2,272,758 2,388,715 2,563,244 7% 5% 456,377 7% 384,809 18% 357,643 16% 4% 16% 752,389 750,122 890,664 718,502 29% 31% 18% 32% 772,190 694,925 16% 15% 1,253,784 1,354,478 1,498,004 1,196,613 53% 53% 1,446,972 30% 53% 1,4
Slide 5: Revenues
Revenues First Half Second Quarter (in US$’000) (in US$’000) 603,716 661,764 751,785 306,511 336,384 368,001 10% 9% 78,753 71,461 21% 58,318 21% 19% 106,537 103,226 29% 102,947 0.3% 31% 14% 34% 10% 154,274 161,697 182,711 145,246 50% 21% 48% 47% 140,439 109,886 21% 2Q 2017 2Q 2018 2Q 2019 18% Asia A
Slide 6: Consolidated P&L Highlights
Consolidated P&L Highlights (In US$ 000, except Volume & EPS) 1H 2018* 1H 2019 % Change • Volume up 7% mainly due to continuing ramp-up at VICT and CMSA; Volume (In TEU) 4,714,255 5,041,916 7% improvement in trade activities at SBITC, IDRC and AGCT; new shipping lines and services at BCT; and the ne
Slide 7: Consolidated P&L Highlights
Consolidated P&L Highlights (In US$ 000, except Volume & EPS) 2Q 2018* 2Q 2019 % Change • Volume up 7% mainly due to continuing ramp-up at VICT and CMSA; Volume (In TEU) 2,388,715 2,563,244 7% improvement in trade activities at SBITC, IDRC and AGCT; new shipping lines and services at BCT; and the ne
Slide 8: Financing Charges & Other Expenses
Financing Charges & Other Expenses (In US$ ‘000) 1H 2018 1H 2019 % Change Financing Charges & Other Expenses 60,008 59,623 -1% • Interest Expense on Loans/Bonds 51,787 51,090 -1% • Lower due to prepayment of the CMSA project finance loan in May 2018 and lower borrowing • Capitalized Borrowing Cost (
Slide 9: Recurring Net Income
Recurring Net Income 1H 2018 1H 2019 % Change 2Q 2018 2Q 2019 % Change Net Income Attributable 90,242 128,470 42% 14% 49,358 56,067 to Equity Holders Non-recurring item: MTM gain on derivative of CMSA (2,752) - (2,752) - Recurring Net Income Attributable 87,490 128,470 47% 46,606 56,067 20% to Equit
Slide 10: Proactive FX Risk Management
Proactive FX Risk Management ICTSI’s revenue and cash expenses are favorably 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 Subsidiar
Slide 11: FX Movement
160 150 140 130 110 100 120 90 Jan-15 Feb-15 BRL PKR PHP EUR Mar-15 CNY AUD MXN Apr-15 Currency May-15 Jun-15 Jul-15 Aug-15 Sep-15 19.07 51.95 6.37 1.30 3.43 0.83 114.33 Oct-15 Nov-15 Dec-15 Jan-16 January-June Feb-16 FX Movement 19.15 52.22 143.43 6.79 1.42 3.84 0.89 Mar-16 Apr-16 PHP May-16 Jun-16
Slide 12: Yield/TEU and EBITDA Margin
Yield/TEU and EBITDA Margin Yield/TEU Evolution 160 0.63 -1.08 150 7.23 140 149.11 130 142.33 120 Yield/TEU Organic New Terminals Forex Yield/TEU Dec 2018 June 2019 EBITDA Margin Evolution 57% 0.45% 56% 0.36% 55% 1.18% 56.45% 54% 54.46% 53% EBITDA Margin % Organic New Terminals Forex EBITDA Margin %
Slide 13: Yield/TEU Comparison
Yield/TEU Comparison 1H 1H 2018 2019 % change Volume (TEU ‘000) 4,714 5,042 7% Revenues (US$ millions) 662 752 14% Yield/TEU (US$) 140 149 6% EBITDA (US$ millions) 356 424 19% EBITDA Margin 54% 56% FX : Negative impact of EUR, BRL and AUD -3 Increase revenues from storage and ancillary services; tar
Slide 14: Agenda
AGENDA 1 Recent Financial Performance Liquidity and Capital Resources 3 Other Matters 4 Questions and Answers 5 Appendix
Slide 15: Balance Sheet Summary
Balance Sheet Summary (In US$ millions) Dec 31, 2018(1) June 30, 2019 Intangible and Property and Equipment 3,344 3,387 Lease Assets 523 509 Cash and Cash Equivalents 447 296 Other Current and Non-current Assets 1,002 1,524 Total Assets 5,316 5,715 Total Short–term and Long–term Debt 1,307 1,868 Con
Slide 16: Principal Redemption Profile
Principal Redemption Profile As of June 30, 2019 (US$ millions) 800 Millions Perp NC22 (3) 600 400 Perp NC24 (2) Perp NC21 (1) €260M 200 Term Loan 0 2019 2020 2021 2022 2023 2024 2025 2026 ST LT / Bonds Perp Debt Breakdown by Rate Debt Breakdown by Currency Debt Breakdown in Parent & Subsidiary Othe
Slide 17: Capital Expenditures
Capital Expenditures (In US$ millions) 2018B 2018A 2019B $40 $8 $45 11% 2% 12% $4 $45 $40 1% 12% 15% US$380 $36 US$380 14% US$261 $182 $287 70% $335 75% 88% US$3M US$5M Greenfield Expansionary Maintenance New Projects Investment (SPIA) 2018 CAPEX mainly for: 2019 CAPEX mainly for: GREENFIELD: Austra
Slide 18: Agenda
AGENDA 1 Recent Financial Performance 2 Liquidity Resources and Capital Other Matters 4 Questions and Answers 5 Appendix
Slide 19: Our Role in Society
Our Role in Society International leading developer, manager, and operator international LIVELIHOOD & FINANCIAL container patsin SRR yg, LITERACY er the Americas, Europe, the a Cee Diddle East, and africa, ITS! ae 0p Serenata ‘supportsthe eforsofsocetes, «JJ Smimrsemesoucn cece Skills Trainin The 5
Slide 20: Recent Events
Recent Events ICTSI received a letter from the Sudanese Ministry of Finance & Economic Planning confirming the remittance of EUR195.2 million as partial repayment of the EUR410 million upfront fee in accordance with a refund bond, and that the balance will be repaid as soon as possible. ICTSI contin
Slide 21: Agenda
AGENDA 1 Recent Financial Performance 2 Liquidity Resources and Capital 3 Other Matters Questions and Answers 5 Appendix
Slide 22: Agenda
AGENDA 1 Recent Financial Performance 2 Liquidity Resources and Capital 3 Other Matters 4 Questions and Answers Appendix
Slide 23: Entities with PFRS 16 Impact
Entities with PFRS 16 Impact End of Lease Term Lease (in years) Term Victoria International Container Terminal Ltd. (VICT) - 26 2040 Australia Contecon Mazanillo S.A. (CMSA) - Mexico 34 2044 Tecon Suape S.A. (TSSA) - Brazil 30 2031 Baltic Container Terminal (BCT) - Poland 20 2023 Mindanao Internatio
Slide 24: Impact of PFRS 16 on 1H 2018 P&L
Impact of PFRS 16 on 1H 2018 P&L (In US$ 000) June 30, 2018 EBITDA – Pre PFRS 16 299,529 Port Authorities’ Share in Gross Revenues 11,754 Equipment and Facilities – related expenses 44,779 Fixed and Guaranteed Port Fees 56,533 EBITDA – Post PFRS 16 356,062 NET INCOME – Pre PFRS 16 111,328 Fixed and
Slide 25: Impact of PFRS 16 (1H 2018 P&L)
Impact of PFRS 16 (1H 2018 P&L) L Lease expense under e A old standard a s e B E x p Depreciation of lease e C assets n s Interest accretion on e lease liabilities Lease Term A = Lease expense under old standard B + C = Lease expense under new standard (PFRS16)
Slide 26: 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 27: Impact of PFRS 16 on 1H 2018 Cash Flows
Impact of PFRS 16 on 1H 2018 Cash Flows June 30, 2018 PFRS 16 June 30, 2018 (In US$ ‘000) (Audited) adjustments (Restated) Net cash flows from operating activities 298,946 25,559 324,505 Net cash flows from investing activities (168,461) - (168,461) Net cash flows from financing activities 1,575 (25
Slide 28: Thank you
International Soniine feria Thank you
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