International Container Terminal Services, Inc. · PSE:ICT
International Container Terminal Services — Q1 2022 Earnings Presentation
28 slides from International Container Terminal Services's earnings presentation, May 5, 2022
Slide 1: 1Q 2022 Investors' Briefing
1Q 2022 Investors’ Briefing May 5, 2022
Slide 2: 1Q2022 Highlights
1Q2022 Highlights Financial and Operational Performance Net income attributable to Volume Gross Revenues EBITDA equity holders +5% +21% +28% EBITDA +58% Margin 64% ▪ Continued momentum and strong performance from joint ventures and new terminals enhanced financial and operational performance in 1Q20
Slide 3: Quarterly Results
Quarterly Results Reaping the benefits of cost optimization measures (In US$ million except Volume, Yield to TEU & EBITDA margin) FY2018 FY2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Volume (in TEU ‘000) 9,737 10,178 2,509 2,291 2,627 2,767 2,708 2,752 2,807 2,897 2,
Slide 4: Agenda
Agenda 01 Recent Financial Performance 02 Liquidity and Capital Resources 03 Questions and Answers 04 Appendix
Slide 5: Recent Financial Performance
01 Recent Financial Performance
Slide 6: Volume and Gross Revenues
Volume and Gross Revenues Volume Gross Revenues (in TEUs) (in US$ ‘000) 2,508,986 2,707,791 2,833,001 375,776 435,586 528,267 +5% +21% +8% 114,951 (22%) +16% 670,502 (24%) 650,012 (24%) +3% +14% 613,936 (24%) +6% 100,954 (23%) +13% 89,186 (24%) 183,368 (35%) 830,596 (29%) 872,762 (32%) -5% 787,947 (
Slide 7: Consolidated P&L Highlights
Consolidated P&L Highlights (In US$ ‘000, except Volume and EPS) 1Q 2021 1Q 2022 % Change Volume higher by 5% primarily due to improvement in trade activities as economies recover from the impact of the COVID-19 pandemic and lockdown restrictions; and new contracts with shipping lines and services a
Slide 8: Yield / TEU Analysis
Yield / TEU Analysis % 1Q 2021 1Q 2022 change Volume 2,708 2,833 +5% (TEUs ‘000) Gross Revenues 433,290 518,680 +20% (US$ ‘000) Gross Revenues / TEU 160.02 183.09 +14% (US$) FX due to unfavorable translation impact of AUD, -3.76 PHP and EUR partially tapered by favorable translation impact of BRL +2
Slide 9: Yield / Ton Analysis
Yield / Ton Analysis % 1Q 2021 1Q 2022 change Volume (Tons ‘000) 412 1,563 +280% Gross Revenues (US$ ‘000) 2,296 9,587 +318% Gross Revenues / Ton (US$) 5.58 6.13 +10% -0.12 FX due to unfavorable translation impact of PHP +0.55 Contribution of new non-containerized terminal, +0.67 MHCPSI Note: Includ
Slide 10: Yield per TEU and EBITDA Margin Evolution
Yield per TEU and EBITDA Margin Evolution Yield per TEU Evolution* In US$ 200 - 2.63 0.45 180 20.56 160 185.26 183.09 183.09 140 164.70 164.70 120 Yield/TEU Organic New Terminals Forex Yield/TEU Dec 2021 Mar 2022 Note: *Excluding predominantly non-containerized terminals (MHCPSI, KMT, BIPI and HIPS)
Slide 11: Cash Operating Expenses
Cash Operating Expenses (ORGANIC) 1Q 2021 1Q 2022 % change % change (In US$’ 000) Cash Operating Expenses 122,443 137,105 +12% +9% • Manpower costs 63,244 70,127 +11% +7% • Equipment and facilities-related expenses 29,144 35,128 +21% +18% • Administrative and other operating expenses 30,055 31,850 +
Slide 12: Financing Charges & Other Expenses
Financing Charges & Other Expenses 1Q 2021 1Q 2022 % Change (In US$’ 000) Financing Charges & Other Expenses 34,025 43,497 + 28% ▪ Interest Expense on Loans/Bonds 26,602 28,252 +6% ▪ Capitalized Borrowing Cost (167) (100) +40% ▪ Amortization of Debt Issue Cost 2,069 2,015 -3% ▪ Other Expense 5,521 1
Slide 13: Liquidity and Capital Resources
02 Liquidity and Capital Resources
Slide 14: Balance Sheet Summary
Balance Sheet Summary Financial Ratios (In US$ million) Dec 31, 2021 Mar 31, 2022 Dec 31, 2021 Mar 31, 2022 Intangibles and Property and Gearing: Debt*/SHE 1.42 1.98 Equipment 3,588 3,650 Current Ratio: Rights-of-use assets 664 731 Current Assets/Current Liabilities 1.81 0.74 Cash and Cash Equivalen
Slide 15: Principal Redemption Profile
Principal Redemption Profile As of March 31, 2022 (In US$ million) Perp NC26 (3) 782 298 394 Perp NC24 (1) Perp NC22 (2) 400 400 216 290 300 252 141 66 17 14 - 14 - 17 18 18 11 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 FCF Relationship Banks Bonds Perp Notes: (1) Callable in 2024 with r
Slide 16: Capital Expenditures
Capital Expenditures (In US$ million) 2021B 2021A 2022B $42m $57m 13% $37m $28m 23% 19% 15% US$250m US$165m US$330m $193m 77% $128m $288m 66% 87% 2021A CAPEX mainly for: 2022B CAPEX mainly for: EXPANSIONARY: Manila, DR Congo, Australia, Mexico & Ecuador EXPANSIONARY: Madagascar, DR Congo, Australia,
Slide 17: ESG initiatives
ESG initiatives Environment Governance Economy ▪ New hybrid RTGs for MICT, MCT. In the Philippines, MICT and MCT recently took ▪ New Global Policies. ICTSI has announced three new global policies for its • MICT Berth 8. ICTSI continues to expand the capacity of its flagship delivery of new Mitsui hy
Slide 18: ESG initiatives
ESG initiatives Employees Customers Society • Learning and development. As part of preparations for the ▪ PICT handles first ro-ro vessel. PICT achieved a new operational • ICTSI Foundation assist MICT host community. The Foundation deployment of the first ever quay cranes at Papua New Guinea by 3Q
Slide 19: Conclusion and Outlook
Conclusion and Outlook ▪ Strong Volume, Revenue, EBITDA and Net Income performance to date ▪ Joint Ventures and New Terminals enhanced overall performance ▪ Business fundamentals remains constructive ▪ Continue to monitor geopolitical developments and its potential impact on our business 19
Slide 20: Questions and Answers
03 Questions and Answers
Slide 21: Appendix
04 Appendix
Slide 22: Recent Events
Recent Events 2022 Mar ICTSI declared total dividends of Php6.00 per common share (Php5.56 regular dividend and Php0.44 special dividend) payable on March 28, 2022 Dec ICTSI extended Madagascar concession by 15 years to 2040 ICTSI concluded the Tender Offer relating to Senior Guaranteed Perpetual Se
Slide 23: CAPEX and EBITDA
Rising EBITDA in a relatively Low CAPEX cycle ICTSI data (in million) CAPEX EBITDA CAPEX/EBITDA CAPACITY (TEUs) Axis Title 1,250 151% 160% 21.055 21,185 20.505 127% 19.275 17.925 1,000 CAPEX and EBITDA 120% 88% 14.855 750 81% 12.700 13.780 11.970 (in US$) 75% 68% 10.920 80% 500 50% 8.770 63% 46% 7.0
Slide 24: Increasing FCF
Increasing FCF ICTSI data (In US$ million) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1,000 782 800 605 600 516 Free Cash Flow 430 400 298 200 96 109 75 18 29 12 0 -200 -180 -195 -400 24
Slide 25: 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 Subsidiaries
Slide 26: ICTSI Sustainability Reports
ICTSI Sustainability Reports OUR SUSTAINABILITY REPORTING JOURNEY Edition Covered 2017 2018 2019 2020 2021 Published 2018 2019 2020 2021 2022 Coverage: • Selected metrics: Group-wide • Selected metrics: Group-wide • Selected metrics: Group-wide • Selected metrics: Group-wide • Selected metrics: Grou
Slide 27: COVID Strategic Response: 4Cs
COVID 19 Strategic Response: 4Cs Ensuring strength and resiliency: our response to COVID-19 Initiatives Areas of Focus Benefits • Improved collection processes • Focus on cash collection • Managed DSO and DPO more efficiently Cash Preservation • Accelerate and maximize upstream • Accelerated and max
Slide 28: Thank you!
International Container Terminal Services, Inc. wom | ~~ gs : é | < : . ) Thank you!
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