Dvmp · RUS:FESH
Dvmp — FESCO Transportation Group — H1 2014 Earnings Presentation
16 slides from Dvmp's earnings presentation, Sep 2, 2014
Slide 1: FESCO Transportation Group Operational and Financial Results for 2Q / 1H 2014
FESCO Transportation Group Operational and Financial Results for 2Q / 1H 2014 Investor conference call – September 02, 2014
Slide 2: Executive Summary
Executive Summary Strong volume growth in FESCO strategic markets: • In 1H2014 FESCO continued to increase its container transportation and handling volumes securing its leading position in the Russian Far East. FESCO remained the leader by volumes on all container sea service lines where the Group
Slide 3: Group Performance
Group Performance • The slowdown of the economy growth, overall volatile macroeconomic environment and unfavorable FX dynamics caused Quarterly Revenue and EBITDA Development (USDm) weakness in the sectors where the Group operates • On a QoQ basis, the Group’s consolidated revenue increased in 350 5
Slide 4: Quarterly Divisional Performance
Quarterly Divisional Performance EBITDA per division in USD EBITDA per division ($m) 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 Port Division 17.9 26.1 29.6 15.8 19.3 19.3 Rail Division 28.4 24.6 20.4 16.9 13.3 11.2 Liner and Logistics Division 8.8 8.7 8.8 9.5 0.0 9.4 Shipping Division 0.2 (4.1) (1.5
Slide 5: Russian Port Market Update
Russian Port Market Update Comments Container Throughput in Russian Ports, 1H 2014 Total Containers ‘000 TEU Import Containers ‘000 TEU Overall Market 0.2% 2,629 1.6% 2,671 1,171 1,174 • The total throughput of the Russian ports increased by 6.5% 249,0 6.5% 265,2 YoY in 1H2014 718,8 7.7% 774,6 0.3%
Slide 6: Port and Bunkering Divisions: Key Operational and Financial Metrics
Port and Bunkering Divisions: Key Operational and Financial Metrics • The container throughput in 1H2014 was up by 8.4% YoY with import container throughput growth of 11.2% YoY (significantly Port Division 1H 2013 1H 2014 Dynamics above the market) Total Container Volumes ('000 TEU) 223,802 242,612
Slide 7: Russian Rail Market Update
Russian Rail Market Update Freight Transportation Freight Transportation Comments Volume (m tons) Turnover (bn tons-km) 115 • Challenging Rail Market Environment: In 1H2014, the 195 freight volumes were flat YoY 110 185 • Continued Growth in Container Rail Volumes: In 105 175 1H2014, the containeriz
Slide 8: Marginal Market Profitability of Railcars
Marginal Market Profitability of Railcars Gondola Railcars in Russia, RUB/day excluding VAT Gondola Railcars in Ukraine, USD/day excluding VAT 800 30 600 20 400 June 2014 444 June 2014 15 10 200 Vs. May 2014 (4.9)% Vs. May 2014 15.3 % Vs. June 2013 (30.5)% Vs. June 2013 (26.6)% - 0 jan feb mar apr m
Slide 9: Rail Division: Key Operational and Financial Metrics
Rail Division: Key Operational and Financial Metrics • Rail container transportation volumes were up by 8.1% 1H 2013 1H 2014 Dynamics YoY to 147,338 TEU. The growth was driven by the Container Transportation (TEU)¹ 136,353 147,338 8.1% extension of Transgarant fitting platforms fleet by 562 Rail Car
Slide 10: Freight Rates Dynamics (USD per TEU)
Freight Rates Dynamics (USD per TEU) Shanghai Containerized Freight Index Deep Sea Rates vs. Intermodal Transportation Rates $8 000 $7 000 $6 995 $5 795 $6 000 $5 000 $5 080 $4 610 $4 000 $3 000 $2 000 $1 000 $0 may.13 may.14 nov.13 mar.13 jun.13 dec.13 mar.14 jun.14 jan.13 feb.13 apr.13 jul.13 aug.
Slide 11: Liner and Logistics Division: Key Operational and Financial Metrics
Liner and Logistics Division: Key Operational and Financial Metrics 1H 2013 1H 2014 Dynamics • Strong growth of export-import sea lines container Intermodal Volumes (TEU) 117,187 117,474 0.2% transportation (up 11.8% YoY) Export-Import Volumes (TEU) 181,203 202,542 11.8% • Intermodal transportation
Slide 12: Shipping Division: Key Operational and Financial Metrics
Shipping Division: Key Operational and Financial Metrics 1H 2013 1H 2014 Dynamics • 1H2014 revenue grew by 16.0% YoY in USD (up by 31.3% YoY in RUB) and EBITDA grew from ($3.9)m No. of Vessels (EoP) 28 28 0% negative to $2.9m positive driven by a combination of Revenue (in RUB million) 886.4 1,164 3
Slide 13: Capital Investments
Capital Investments ($m) 1H2013 1H2014 • Despite the market volatility the Group continued to make selective capital investments, in the Port Shipping Division (9,8) (10,3) Division and in dry terminals, in line with its long Acquisition of fleet (9,2) (7,1) term strategy 0,0 0,0 Expenditure on vess
Slide 14: Leverage Overview
Leverage Overview Comments Debt Structure • As of June 30, 2014, the total debt1 amounted to $1,155m 7% Senior Secured • $875m of the acquisition financing and part of the pre-existing 5% Notes due 2018 and loans refinanced by issuing the Senior Secured Notes due 2018 2020 and 2020 13% Rouble bonds
Slide 15: Debt Service Ratios
Debt Service Ratios Key Cash Flow Indicators ($m) 2011 2012 2013 H1 2014 LTM Adjusted EBITDA 210 279 197 165 Proceeds of disposal 9 58 22 21 CAPEX (138) (66) (48) (59) Debt service liquidity 81 271 171 127 Interests 43 52 79 99 Pro-forma debt 697 1 179 1 118 1 155 Cash 232 232 191 139 Pro-forma net
Slide 16: IR Team Contacts
IR TEAM CONTACTS: Galina Shilina IR Director GShilina@fesco.com Ekaterina Semenova IR Manager ESemenova@fesco.com 16 16
FESCO Transportation Group — H1 2014 Earnings Presentation on 6ix