International Container Terminal Services, Inc. · PSE:ICT
International Container Terminal Services — Q3 2021 Earnings Presentation
30 slides from International Container Terminal Services's earnings presentation, Nov 4, 2021
Slide 1: 3Q 2021 Investors' Briefing
3Q 2021 Investors’ Briefing November 4, 2021
Slide 2: Highlights – 3Q2021 & 9M2021
Highlights – 3Q2021 & 9M2021 Financial and Operational Performance Net Income Volume Revenues EBITDA attributable to Equity 3Q2021 +7% +27% EBITDA margin +31% holders 62% +73% Net Income attributable to Volume Revenues EBITDA Equity holders 9M2021 +11% +24% EBITDA Margin +29% +73% 61% ▪ Continued mo
Slide 3: Quarterly Highlights
Quarterly Highlights Reaping the benefits of cost optimization measures Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 (In US$ million except Volume, Yield to TEU & EBITDA margin) Volume (in TEU ‘000) 2,326 2,389 2,438 2,584 2,
Slide 4: Agenda
Agenda 01 Recent Financial Performance 02 Liquidity and Capital Resources 03 ESG 04 Questions and Answers 05 Appendix
Slide 5: Recent Financial Performance
01 Recent Financial Performance
Slide 6: Volume
Volume Nine Months Third Quarter (in TEUs) (in TEUs) 7,590,090 7,426,307 8,266,621 2,548,175 2,626,542 2,807,098 +3% +7% -2% +11% 686,494 (24%) 590,586 (23%) +1% 596,059 (23%) +15% 1,985,755 (24%) 1,758,453 (23%) 1,750,548 (24%) +13% -0.4% 754,611 (29%) 835,440 (30%) 739,423 (29%) +2% +11% 2,523,375
Slide 7: Revenues
Revenues Nine Months Third Quarter (in US$ ‘000) (in US$ ‘000) 1,107,339 1,103,570 1,365,014 355,555 379,309 482,391 +7% +27% +24 109,810 (23%) -0.3% +19% 313,554 (23%) 92,018 (24%) 90,803 (26%) +18% 153,493 (32%) -2% +18% +48% 271,608 (25%) 266,122 (24%) 103,932 (27%) 98,142 (28%) +6% 439,597 (32%)
Slide 8: Consolidated P&L Highlights
Consolidated P&L Highlights 3Q 2020 3Q 2021 % Change (In US$ 000, 9M 2020 9M 2021 % Change except Volume and EPS) 2,626,542 2,807,098 +7% Volume (in TEU) 7,426,306 8,266,621 +11% 379,309 482,391 +27% Gross Revenues from 1,103,570 1,365,014 +24% Port Operations Cash Operating 108,797 135,064 +24% 331
Slide 9: Yield / TEU Analysis
Yield / TEU Analysis 3Q 3Q % 9M 9M % 2020 2021 change 2020 2021 change 2,627 2,807 +7% Volume 7,426 8,267 +11% (TEUs ‘000) 378,330 472,153 +25% Revenues 1,098,848 1,347,831 +23% (US$ ‘000) 144 168 +17% Revenue / TEU 148 163 +10% (US$) FX due to favorable translation impact of AUD, FX due to favorabl
Slide 10: Yield / Ton Analysis
Yield / Ton Analysis 3Q 3Q % 9M 9M % 2020 2021 change 2020 2021 change 164 1,671 +919% Volume 920 2,817 +206% (Tons ‘000) 979 10,238 +946% Revenues 4,722 17,183 +264% (US$ ‘000) 5.97 6.13 +3% Revenue / Ton 5.13 6.10 +19% (US$) -0.19 FX due to unfavorable translation impact of PHP +0.11 FX due to fav
Slide 11: Proactive FX Risk Management
Proactive FX Risk Management ICTSI’s revenue and cash expenses are favourably matched, which provides a natural currency hedge that mitigates against volatility attributable to FX movements Revenue Currency by Subsidiary Cash Expense Currency by Subsidiary Revenues from Port Operations Subsidiaries
Slide 12: Yield / TEU and EBITDA Margin Evolution
Yield / TEU and EBITDA Margin Evolution Yield / TEU Evolution* 170 0.97 2.55 150 12.53 163.04 130 146.99 110 Yield/TEU Organic New Terminals Forex Yield/TEU Dec 2020 Sept 2021 *Note: Excluding predominantly non-containerized terminals (MHCPSI, KMT, BIPI and HIPS) EBITDA Margin Evolution 61% -0.05% 0
Slide 13: Liquidity and Capital Resources
02 Liquidity and Capital Resources
Slide 14: Balance Sheet Summary
Balance Sheet Summary Financial Ratios (In US$ million) Dec 31, 2020 Sept 30, 2021 Dec 31, 2020 Sept 30, 2021 Intangibles and Property and Gearing: Debt/SHE 0.95 1.09 Equipment 3,457 3,570 Current Ratio: Rights-of-use assets 612 629 Current Assets/Current Liabilities 1.98 1.56 Cash and Cash Equivale
Slide 15: Principal Redemption Profile
Principal Redemption Profile As of September 30, 2021 (US$ millions) Perp NC26 (3) Perp NC22 (2) 298 394 Perp NC24 (1) 400 375 400 400 288 230 94 10 29 22 6 6 4 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Relationship Banks Bonds Perp Notes: (1) Callable in 2024 with rate reset and 250–bp step
Slide 16: Capital Expenditures
Capital Expenditures (In US$ million) 2020B 2020A 2021B $7m $54m 3% $35m $57m 20% 18% 23% $24m US$270m 12% US$199m US$250m $139m $210m 70% 77% $193m 77% ORIGINAL 2020B CAPEX mainly for: 2021 CAPEX mainly for: EXPANSIONARY: Manila, Mexico, Ecuador & DR Congo EXPANSIONARY: Manila, Congo & Australia NE
Slide 17: Environmental, Social and Governance (ESG)
03 Environmental, Social and Governance (ESG)
Slide 18: ESG Initiatives
ESG Initiatives Environment Employees ESG Customers Governance Economy Society Icons designed by Freepik; Eucalyp 18
Slide 19: ESG initiatives
ESG initiatives Environment Governance Economy ▪ Sustainable River Rehabilitation. Our social responsibility arm ICTSI Foundation recently ▪ ESG Sub-Committee. As we progressively refine our Environmental, ▪ ICTSI Pakistan 10M TEU milestone. Pakistan International Container signed a partnership agre
Slide 20: ESG initiatives
ESG initiatives Employees Customers Society ▪ Vaccination program. Throughout this pandemic, our collective ▪ Enabling smarter ports. To drive efficiency and optimization in our cargo • Forerunner of Vaccine Procurement. The ICTSI Foundation has led the response to the crisis has always focused on p
Slide 21: Conclusion and Outlook
Conclusion and Outlook ▪ Strong Volume, Revenue, EBITDA and Net income performance to date ▪ Positive outlook underpinned by resilient business and actions taken to mitigate effects of pandemic ▪ Continued focus on economic backdrop, inflation and costs ▪ Self-funded disciplined capex programme expe
Slide 22: Questions and Answers
04 Questions and Answers
Slide 23: Appendix
05 Appendix
Slide 24: Recent Events
Recent Events Oct ICTSI concluded the acquisition of an additional 15.88% stake in Pakistan International Container Terminal Limited (PICT) ICTSI Board elected Chief Justice DIOSDADO M. PERALTA (ret.) as its third Independent Director Aug ICTSI declared total dividends of Php2.63 per common share (P
Slide 25: ICTSI Sustainability Reports
ICTSI Sustainability Reports OUR SUSTAINABILITY REPORTING JOURNEY Edition Covered 2017 2018 2019 2020 Published 2018 2019 2020 2021 • Selected metrics: Group-wide Coverage: • Selected metrics: Group-wide • Selected metrics: Group-wide • Selected metrics: Group-wide • For performance in Environment,
Slide 26: Rising EBITDA in a relatively Low CAPEX cycle
Rising EBITDA in a relatively Low CAPEX cycle ICTSI data (in million) CAPEX EBITDA CAPEX/EBITDA CAPACITY (TEUs) Axis Title 1,000 151% 160% 20.505 21.055 127% 19.275 17.925 750 120% CAPEX and EBITDA 14.855 88% 81% 12.700 13.780 (in US$) 11.970 75% 500 68% 10.920 80% 8.770 63% 50% 46% 7.070 7.070 35%
Slide 27: Increasing FCF
Increasing FCF ICTSI data (in US$ million) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 700 605 516 500 430 298 Free Cash Flow 300 96 109 100 75 18 29 12 -100 -180 -195 -300 Capital Expenditures slide 27
Slide 28: 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 29: Financing Charges & Other Expenses
Financing Charges & Other Expenses 9M 2020 9M 2021 % Change (In US$’ 000) Increased primarily due to higher interest on loans as a result of the issuance of 10yr Financing Charges & Other Expenses 105,470 105,533 +0.1% US$400M senior notes in June 2020 tapered by lower COVID 19 related expenses ▪ In
Slide 30: Thank you!
International Container Terminal Services, Inc. wom ) Thank you!
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