International Container Terminal Services, Inc. · PSE:ICT
International Container Terminal Services — Q3 2020 Earnings Presentation
28 slides from International Container Terminal Services's earnings presentation, Nov 4, 2020
Slide 1: 3Q 2020 Investors' Briefing
3Q 2020 Investors’ Briefing November 4, 2020
Slide 2: Highlights (3Q)
Highlights (3Q) Financial and Operational Performance Net income attributable to Volume Revenues EBITDA equity holders +3% +7% +13% +23% EBITDA Margin 60% ▪ 3Q2020 Volume and Revenues higher due to the contribution of ICTSI Rio; higher revenues from ancillary services, tariff adjustments and new ser
Slide 3: Quarterly Highlights
Quarterly Highlights Reaping the benefits of cost optimization measures (In US$ million except Volume, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Yield per TEU & EBITDA margin) 2018 2018 2018 2018 2019* 2019* 2019* 2019* 2020 2020 2020 Volume (in TEU ‘000) 2,326 2,389 2,438 2,584 2,479 2,563 2,548 2,588 2,509
Slide 4: Highlights (YTD)
Highlights (YTD) Financial and Operational Performance Net income attributable to Volume Revenues EBITDA equity holders -2% -0.3% +3% -1% EBITDA Margin 58% ▪ 9M2020 Volume and revenues slightly lower due to the impact of COVID19 on global trade as strict lockdown and quarantine measures took effect
Slide 5: Agenda
Agenda 01 Recent Financial Performance 02 Liquidity and Capital Resources 03 Other Matters 04 Questions and Answers 05 Appendix
Slide 6: Recent Financial Performance
01 Recent Financial Performance
Slide 7: Volume
Volume Nine Months Third Quarter (in TEUs) (in TEUs) 7,152,392 7,590,090 7,426,307 2,438,136 2,548,175 2,626,542 5% 3% 458,275 (17%) 6% -2% 387,716 (16%) +17% 455,317 (18%) +1% 739,423 (29%) 754,611 (29%) 1,345,981 (18%) 1,341,828 (18%) 713,785 (29%) +4% +2% 1,159,906 (16%) +16% -0.3% +1% +4% 2,237,
Slide 8: Revenues
Revenues Nine Months Third Quarter (in US$ ‘000) (in US$ ‘000) 1,005,723 1,107,339 1,103,570 343,959 355,555 379,309 3% 7% 78,280 (21%) 10% -0.3% 74,309 (22%) 78,119 (22%) +5% +0.2% 232,393 (21%) 226,624 (21%) 103,932 (27%) 214,748 (21%) +8% -2% 95,164 (28%) 98,142 (28%) +3% +6% 316,694 (29%) +3% 32
Slide 9: Consolidated P&L Highlights (3Q)
Consolidated P&L Highlights (3Q) (In US$ 000, except Volume and EPS) 3Q 2019 3Q 2020 % Change Volume increased 3% mainly due to the contribution of ICTSI Rio, a new terminal in Rio de Janeiro in Brazil, and new Volume (in TEU) 2,548,175 2,626,542 +3% services at certain terminals; tapered by the dec
Slide 10: Consolidated P&L Highlights (9M)
Consolidated P&L Highlights (9M) (In US$ 000, except Volume and EPS) 9M 2019 9M 2020 % Change Volume slightly decreased 2% as trade activities declined as a result of the impact of COVID-19 pandemic on global Volume (in TEU) 7,590,090 7,426,307 -2% trade; partially tapered by the contribution of ICT
Slide 11: Financing Charges & Other Expenses
Financing Charges & Other Expenses 9M 2019 9M 2020 % Change (In US$’ 000) Increased primarily due to COVID19-related expenses and the absence of capitalized Financing Charges & Other Expenses 95,199 105,470 +11% borrowing cost related to the Phase 2 expansion project in Basra, Iraq in 2019 ▪ Interes
Slide 12: Proactive FX Risk Management
Proactive FX Risk Management ICTSI’s revenue and cash expenses are favourably matched, which provides a natural currency hedge that mitigates against volatility attributable to FX movements Revenue Currency by Subsidiary Cash Expense Currency by Subsidiary US$ Revenues from Port Operations (9M 2020
Slide 13: FX Movement
FX Movement May-18 May-19 May-20 Aug-19 Aug-18 Sep-18 Nov-18 Dec-18 Sep-19 Nov-19 Dec-19 Aug-20 Sep-20 Mar-19 Feb-18 Mar-18 Feb-19 Feb-20 Mar-20 Jan-18 Jun-18 Jan-19 Jun-19 Jan-20 Jun-20 Apr-18 Oct-18 Apr-19 Oct-19 Apr-20 Jul-18 Jul-19 Jul-20 90 110 130 150 170 Currency BRL COP MXN PKR AUD RMB EUR P
Slide 14: Yield/TEU Analysis
Yield/TEU Analysis (In US$ million) 3Q 3Q % 9M 9M % 2019 2020 change 2019 2020 change 2,548 2,627 +3% Volume (TEU ‘000) 7,590 7,426 -2% 356 379 +7% Revenues (US$ million) 1,107 1,104 -0.3% 139.5 144.4 +3% Yield/TEU (US$) 145.9 148.6 +2% 200 227 +13% EBITDA (US$ millions) 624 643 +3% 56% 60% EBITDA M
Slide 15: Yield/TEU and EBITDA Margin
Yield/TEU and EBITDA Margin Yield/TEU Evolution 160 - 2.21 150 1.51 3.76 140 148.60 145.55 130 Yield/TEU Organic New Terminal Forex Yield/TEU Dec 2019 Sept 2020 EBITDA Margin Evolution 60% -0.22% 0.19% 58% 2.27% 56% 54% 58.28% 56.04% 52% 50% EBITDA Margin % Organic New Terminal Forex EBITDA Margin %
Slide 16: Liquidity and Capital Resources
02 Liquidity and Capital Resources
Slide 17: Balance Sheet Summary
Balance Sheet Summary Financial Ratios (In US$ millions) Dec 31, 2019 Sept 30, 2020 Dec 31, 2019 Sept 30, 2020 Intangible and Property and Equipment 3,590 3,428 Gearing: Debt/SHE 1.02 0.98 Current Ratio: Lease Assets 576 565 Current Assets/Current Liabilities 0.72 1.80 Cash and Cash Equivalents 235
Slide 18: Principal Redemption Profile
Principal Redemption Profile As of March 31, 2020 (US$ millions) Perp NC21 (1) 265 Perp NC22 (3) Perp NC24 (2) 400 394 400 375 333 280 267 77 86 26 19 5 5 3 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 As of September 30, 2020 (US$ millions) Perp NC26 (4) Perp NC22 (3) 300 Perp NC24 (2) 40
Slide 19: Capital Expenditures
Capital Expenditures (In US$ millions) 2019A 2020B (ORIGINAL) 2020B (REVISED) $1m $25m 1% $7m 10% 3% $1m $54m $23m 1% 20% 14% US$241m US$270m US$160m $210m $136m $215m 77% 85% 89% 2019 CAPEX mainly for: 2020B CAPEX mainly for: EXPANSIONARY: Manila, Honduras, Mexico & Iraq EXPANSIONARY: Manila, Mexic
Slide 20: Other Matters
03 Other Matters
Slide 21: Recent Events
Recent Events October ICTSI started commercial operations at the Multi-Purpose Terminal of the Port of Kribi in Cameroon ICTSI concluded the Tender Offer relating to Senior Guaranteed Perpetual Securities of Royal Capital B.V. July ICTSI signed the concession contract to develop, operate and manage
Slide 22: ICTSI Sustainability Reports
ICTSI Sustainability Reports 22
Slide 23: 2019 Sustainability Report
2019 Sustainability Report 23
Slide 24: ESG Initiatives
ESG Initiatives ▪ Acquired eight additional new hybrid rubber-tired gantries (RTG) for MICT that are expected to reduce emissions by more than 50 percent, as part of ICTSI’s push for environmentally sustainable technology in its flagship operations in Manila, Philippines ▪ Retro-fitted the Rizal Mem
Slide 25: Concluding Remarks
Concluding Remarks ▪ Positive 3Q2020 results underpinned by prudent cash preservation measures, diversified portfolio of assets and recovery in global trade ▪ Pandemic has shown resilience of business model and proven strategy ▪ Proven business agility allowing the company to respond swiftly in a vo
Slide 26: Questions and Answers
04 Questions and Answers
Slide 27: Appendix
05 Appendix
Slide 28: Thank you!
International Container Terminal Services, Inc. wom ) thank you!
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