Gtm · RUS:GTRK

Gtm — Globaltruck Management — FY2018 Earnings Presentation

24 slides from Gtm's earnings presentation, Apr 26, 2019

  1. Slide 1: FY 2018 Financial Results

    FY 2018 Financial Results Strictly confidential Conference Call Presentation / 26 April 2019

  2. Slide 2: Disclaimer

    Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE STRICTLY CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA AND JAPAN OR ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION WO

  3. Slide 3: Table of Contents

    Table of Contents 1 Key Developments 6 2 Operational Developments 13 3 Financial Results 16 4 Key Takeaways 23 3

  4. Slide 4: Presenting Team

    Presenting Team Alexander Eliseev Denis Lesnykh CEO and Controlling Shareholder Member of the Board of Directors, CFO 4

  5. Slide 5: Globaltruck at a Glance

    at Glance Leading Russian Full Truck Load (“FTL”) trucking Group[1] Top player in a Blue-Chip customer segment (Contribution to Revenue 2018) 2 Other 9% 5% 3% 2% In Urals, Siberia and #2 in Russia[2] 2% Far East[2] Other E-Commerce Other Retail & Parcel 14% 8% 9% 20% 2% 2% 2% 34% 2% 2% 18% Modern fl

  6. Slide 6: I. Key Developments

    Il. Key Developments

  7. Slide 7: 2018 Performance Highlights

    2018 Performance Highlights FY 2017 FY 2018 avg. age 3.4 2.6 (trucks) 1,363  During the year we have acquired 501 new trucks to replace aging models and Size of the expand the fleet size 1,140 fleet at year  In 2019 we plan to acquire additional 100-150 new trucks to continue with the end replacem

  8. Slide 8: Stabilizing Market Environment with Positive Outlook for 2019

    Stabilizing Market Environment with Positive Outlook for 2019 Dynamics of diesel retail price[1] and diesel export net-back (RUB/litre) 50 45 40 35 30 25 20 15 Jul 16 Oct 16 Jan 17 Apr 17 Jul 17 Oct 17 Jan 18 Apr 18 Jul 18 Oct 18 Jan 19 Apr 19 Average diesel retail price in Russia Diesel export net-

  9. Slide 9: Strategic Initiatives

    Strategic Initiatives  Government has implemented a range of measures to freeze diesel prices and to stabilize the market Tariff increases  We believe GT shall be well positioned to revisit tariff rates with the clients and fully transfer the fuel price increase in the mid term  As the result we

  10. Slide 10: Strategic Initiatives: Expansion in E-Commerce and Parcel Segment

    Strategic Initiatives Expansion in E-Commerce and Parcel Segment Revenue from E-Commerce & Parcel segment almost doubled in 2018 FY2017 Revenue[1] FY2018 Revenue[1] 6,607 8,172 RUB mn 22% 34% RUB mn  Over the past year we have experienced further significant expansion in E-Commerce segment revenue

  11. Slide 11: Strategic Initiatives: Cargo Pipeline

    Strategic Initiatives Cargo Pipeline Growing Cargo Pipeline roundtrip network Ishim Naberezhnye Chelny Oktyabrskiy Cargo Pipeline superior performance Attractive growth and expansion prospects Distance per truck Loaded run ratio  Launched in October 2017 and is actively developing (tkm/month)  Net

  12. Slide 12: Strategic Initiatives: Expansion into China

    Strategic Initiatives Expansion into China Overview Novosibirsk – Dalian first route  8 June 2018 during President Putin official visit Any Russian city in the west Krasnoyarsk Russia and China signed a transnational agreement Novosibirsk RUSSIA Barnaul on road transportation Chita Ulan-Ude Tashant

  13. Slide 13: II. Operational Developments

    II. Operational Developments

  14. Slide 14: Truck Fleet Dynamics

    Truck Fleet Dynamics Truck fleet in operation Fleet expansion in 2018 (trucks)  The Company operates a homogenous fleet of 1,363 trucks, of which 2,000 1,245 Volvo accounts for a predominant majority 1,800 1,097 1,085  During 2018 GT put 501 new Volvo trucks into operation and as the 1,600 951 res

  15. Slide 15: Operational Highlights

    Operational Highlights  Over the reported period of Covered distance per truck/month[1] Loaded run ratio FY 2018 the national freight rate increased by 5.2%[1] vs (ths km) (%) 5.6% increase in the total 92.3% 92.0% freight rate 91.7% 15.9  The gains in freight rates 15.0 15.5 were made possible as

  16. Slide 16: III. Financial Results

    III. Financial Results

  17. Slide 17: Financial Highlights

    Financial Highlights Revenue TBU diversification Strong revenue growth… …Stable high operating margin… (RUB mn) (RUB per loaded km) 2017 2018 33.8 31.0 32.0 2.1 8,196 2.0 1.7 1.9 9% 802 2.2 6,637 2.4 9.6 6,205 10.2 10% 668 10.4 581 8.0 Transportation 7.2 revenue[1] by 7,394 6.6 5,624 5,970 geograph

  18. Slide 18: Revenue Bridge 2017 vs 2018

    Revenue Bridge 2017 vs 2018 Revenue from transportation[1] (RUB mn) 356 7,394 153 (19) 935 5,970 Revenue 2017 Truck fleet Distance per truck Loaded run ratio Freight rate Revenue 2018 Period RUB mn # of trucks ths km % RUB/km RUB mn 2017 5,970 1,085 186 92.3% 32.0 change +160 / +14.7% +5 / +2.4% -0.

  19. Slide 19: COGS Drivers

    COGS Drivers  Upon driver salary Inflation vs GT driver costs per km growth Key cost items indexation in February 2018 no further indexation (base year 2015 = 100%) (RUB mn) has taken place 130% Fuel  In 2019 we do not 121% 1,051 anticipate drivers salary 120% Drivers growth above inflation 113% 9

  20. Slide 20: EBITDA 2017 vs 2018

    EBITDA 2017 vs 2018 Per truck adj. EBITDA, 2017 vs 2018 Comments (RUB ths)  In 2018 adjusted EBITDA per truck increased by 1.0% y-o-y +1.0%  The Company had realized higher gains from truck sales, and reduced [1] [2] 1,177 428 (438) 1,189 expenditure on repair and maintenance 103 13 (94)  Revenue

  21. Slide 21: Net Income

    Net Income Net income bridge, 2017 vs 2018 (RUB mn) +54.2% 22 0 431 5 (27) 152 280 Net Income 2017 Change in operating profit Net finance expense FX effect Income tax Net Income 2018 Adjusted EBITDA – net income bridge, 2018 (RUB mn) [1] 1,481 (489) (315) (34) (100) 431 (112) Adjusted EBITDA D&A Net

  22. Slide 22: Debt & Capex

    Debt & Capex Debt structure as of 31 December 2018 Investment in Fleet Expansion (RUB mn) RUB 282 1,056 3,172 24% Total Debt RUB 41% 4,022 RUB 4,469 mn 4,469 mn 1,548 59% 835 76% (553) (492) (850) ST debt 2016 2017 2018 Term loans Finance leasing 100% Net truck fleet LT debt Truck fleet additions Pr

  23. Slide 23: IV. Key Takeaways

    IV. Key Takeaways

  24. Slide 24: Key Takeaways

    Key Takeaways Robust financial performance and strong full-year results in a challenging macro environment • Expansion of truck fleet by 19.6% while maintaining superior operational performance • Revenue up 23.5% on the back of higher freight rates and truck fleet expansion • Total adjusted EBITDA u

Globaltruck Management — FY2018 Earnings Presentation on 6ix