Dvmp · RUS:FESH
Dvmp — FESCO Transportation Group — FY2013 Earnings Presentation
27 slides from Dvmp's earnings presentation, Mar 31, 2014
Slide 1: FESCO Transportation Group operational and financial results for FY2013
FESCO Transportation Group operational and financial results for FY2013 Investor conference call – March 31, 2014
Slide 2: Today's Presenters
Today’s Presenters Ruslan Alikhanov Elena Shmatova President and Chief Financial Officer Chief Executive Officer 2
Slide 3: Table of Contents
Table of Contents 1. Key Highlights 2. Divisional Performance Overview A. Port Division B. Rail Division C. Liner and Logistics Division D. Shipping Division 3. Financial Overview 3
Slide 4: 1. Key Highlights
1. Key Highlights FESECP Transportation Group
Slide 5: Executive Summary
Executive Summary Solid progress towards its strategic objectives, strong volume growth in its strategic markets: • Container handling volumes at VMTP increased in 4Q2013 by 9% YoY to 127 thousand TEU, driven by 13% increase in import. On annual basis container handling at Port increased by 5% YoY t
Slide 6: Group Performance
Group Performance Comments Container Transportation Volumes, ‘000 TEU • Strong container transportation and container handling growth across +4.5% Group's divisions and service lines. Group's container business continue to 2012 2013 456 477 demonstrate expansion with intermodal transportation volume
Slide 7: Historical EBITDA Evolution
Historical EBITDA Evolution (77,5) +3,7 +3,2 (0,1) (7,6) +14,4 +1,1 247 186 EBITDA 2012 PD RD LLD MD CD FESCO-Bunker Usady EBITDA 2013 7
Slide 8: Divisional Performance
Divisional Performance Comments Revenue Development by Division 2011-2013 • This slide outlines revenue and EBITDA development 672 for the historical period 2011-2013 623 567 • Growth of Port Division revenue in 2011-2013 . In 2013, Port EBITDA excluding one-off expenses amounted to $94m 347 308 251
Slide 9: A. Port Division
A. Port Division FESECP Transportation Group
Slide 10: Russian Port Market Update
Russian Port Market Update Comments Container Throughput in Russian Ports, 2013 Total Containers ‘000 TEU Import Containers ‘000 TEU Overall Market 5.0% 5,350 2,254 4.3% 2,352 5,097 • Total throughput of Russian ports increased by 3.9% in 2013, with 8.8% 752 10.9% 378 691 341 Far East ports showing
Slide 11: Port Division: Key Operational and Financial Metrics
Port Division: Key Operational and Financial Metrics Port Division (VMTP+VCT), • In 2013, VMTP container handling increased by 5% YoY to 477 thousand ($m) 2012 2013 Dynamics TEU with import up 10% YoY to 204 thousand TEU. Total Container Volumes (TEU) 456 146 476 758 4.5% • Vehicle volumes were up b
Slide 12: Port division: 2012-2013 quarterly performance
Port division: 2012-2013 quarterly performance 2012-2013 revenue by quarter • Container handling volumes at Port Division demonstrated continuous growth on annual basis with seasonality trends of 2Q and 3Q being high Revenue of VMTP (not consolidated in 1Q2012) and 1Q and 4Q being low within each ye
Slide 13: B. Rail Division
B. Rail Division FESECP Transportation Group
Slide 14: Russian Rail Market Update
Russian Rail Market Update Freight Transportation Freight Transportation Comments Volume (m tons) Turnover (bn tons-km) 115 195 • Challenging Rail Market Environment: In 2013, freight volumes 190 demonstrated 2.8% yoy decline mainly driven by low industrial 110 185 production in Russia and weak dema
Slide 15: Rail Division: Key Operational and Financial Metrics
Rail Division: Key Operational and Financial Metrics Comments ($m) 2012 2013 Dynamics • In 2013, FESCO Rail Division outperformed the market due to high demand Container Transportation (TEU)¹ 264 725 285 932 8.0% for block train services. Rail container transportation volumes were up by Rail Cargo L
Slide 16: Rail division: 2012-2013 quarterly performance
Rail division: 2012-2013 quarterly performance 2012-2013 revenue by quarter • Container transportation volumes continued to grow on annual basis demonstrating some seasonality trends with 3Q and 4Q high and 1Q and 96 2Q low within a given year 90 83 78 75 • Container transportation volumes grew in 4
Slide 17: C. Liner and Logistics Division
C. Liner and Logistics Division
Slide 18: 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 $6 820 $7 000 $6 305 $6 000 $5 050 $5 205 $5 140 $5 000 $4 000 $3 000 $3 765 $2 000 $1 000 $0 Deep Sea Service (Shanghai – St. Petersburg – Moscow) FESCO Service (Shang
Slide 19: Liner and Logistics Division: Key Operational and Financial Metrics
Liner and Logistics Division: Key Operational and Financial Metrics Comments ($m) 2012 2013 Dynamics • In 2013, intermodal freight transportation volumes increased by 17% to Intermodal Volumes (TEU) 208 294 243 564 16.9% 244 thousand TEU driven by high demand for FESCO services Export-Import Volumes
Slide 20: Liner and Logistics Division: 2012-2013 quarterly performance
Liner and Logistics Division: 2012-2013 quarterly performance 2012-2013 revenue by quarter • Intermodal container transportation volumes continued to grow on annual basis demonstrating some seasonality trends within a given year 169 170 169 169 176 with 1Q usually being low and 2Q and 3Q being high
Slide 21: D. Shipping Division
D. Shipping Division FESECP Transportation Group
Slide 22: Shipping Division: Key Operational and Financial Metrics
Shipping Division: Key Operational and Financial Metrics Comments ($m) 2012 2013 Dynamics No. of Vessels (EoP) 30 28 (6.7)% • Fleet decreased by 2 vessels and 7% in DWT terms as part of the Fleet Deadweight, '000 tons fleet optimization program (EoP) 324 305 (5.9)% • 2 fuel-inefficient vessels scrap
Slide 23: 3. 2013 Financial Overview
3. 2013 Financial Overview FESECP Transportation Group
Slide 24: Capital Investments
Capital Investments Comments ($m) 2012 2013 Shipping Division 16,6 10,7 • Significantly reduced capital expenditures in order to focus on cash from operations serving the debt. Low CAPEX level intact through Acquisition of fleet - 9,3 2013 Expenditure on vessels under construction 8,7 - • Port Divis
Slide 25: Leverage Overview
Leverage Overview Comments Net Debt¹ / LTM Adjusted EBITDA² • $875m of the acquisition financing and part of pre-existing loans 4,7 refinanced by issuing Senior Secured Notes due 2018 and 2020 3,5 • RUB 5bn bond due 2016 issues to refinance the remaining OpCo facility 2,2 and pre-existing loans • Im
Slide 26: Debt Structure
Debt Structure Debt structure Debt breakdown by currency 3% 7% 21% 14% 0% 79% 77% USD EUR RUR Senior Secured Notes due 2018 and 2020 Rouble bonds due 2016 Finance lease Bilateral Loan Facilities As of 31-December 2013, total debt(1) amounted to $1,118m Source: Company info Note (1): Excluding non-re
Slide 27: Free Cash Flow
Free Cash Flow Key Cash Flow Indicators ($m) 2011 2012 2013 Operating cashflow 161 183 134 CAPEX -129 -66 -48 Free cash flow before acquisitions 32 117 86 Interests 43 52 79 Pro-forma debt 697 1 179 1 118 Cash 232 232 191 Pro-forma net debt 466 947 927 Adjusted EBITDA 210 279 197 Net Debt / LTM adju
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