International Container Terminal Services, Inc. · PSE:ICT
International Container Terminal Services — FY2022 Earnings Presentation
28 slides from International Container Terminal Services's earnings presentation, Mar 6, 2023
Slide 1: FY 2022 Investors' Briefing
FY 2022 Investors’ Briefing March 6, 2023
Slide 2: FY2022 Year in Review
FY2022 Year in Review ➢ Acquired Marubeni Corporation’s 20% share in BIPI; now a wholly ➢ Redeemed the remaining US$216M owned entity of the US$400M 5.875% FFL Perpetual Capital Securities ➢ Signed a new 30-year lease using internal generated funds for BCT (Poland) 2022 March May July Sept Dec 2023
Slide 3: FY2022 - Financial Highlights
FY2022 - Financial Highlights Consolidated Results (with MNHPI) Volume Yield Revenues EBITDA Net Income(1) EBITDA D. EPS(2) +20% +44% Margin FY 2022 +24% +9% +9% 63% +58% ADJUSTED Organic Results (ex-MNHPI) Volume Yield Revenues EBITDA Net Income (1) EBITDA (2) D. EPS +18% +44% Margin FY 2022 +22% +
Slide 4: Quarterly Results
Quarterly Results Business fundamentals remain constructive despite near term cyclical issues (In US$ m) Volume (in TEU ‘000) Consolidated Consolidated Vol (ex MNH) (excl. MNHPI) 3,360 Gross Revenues Operating Expenses EBITDA 3,104 603 577 2,897 2,920 528 535 2,807 2,833 500 2,767 2,752 2,986 2,990
Slide 5: Increasing Free Cash Flow
Increasing Free Cash Flow (In US$ million) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1,500 ICTSI declared total dividends of 1,300 Php10.00 per common share 1,100 payable on March 28, 2023 885 900 782 Free Cash Flow 700 605 516 500 430 298 300 96 109 100 75 18 29 12 -100
Slide 6: Agenda
Agenda 01 Recent Financial Performance 02 Liquidity and Capital Resources 03 ESG Achievements 04 Questions and Answers 05 Appendix
Slide 7: Recent Financial Performance
01 Recent Financial Performance
Slide 8: Consolidated P&L Highlights
Consolidated P&L Highlights (In US$ 000, except Volume and EPS) 2021 2022 % Change Volume (in TEU) 11,163,473 12,216,190 +9% Gross Revenues from Port Operations 1,865,021 2,242,992 +20% Cash Operating Expenses 523,325 612,115 +17% EBITDA 1,139,057 1,409,273 +24% EBIT 892,063 1,142,555 +28% Financing
Slide 9: Recurring Net Income
Recurring Net Income (In US$ 000) 2021 2022 % Change Net Income Attributable to Equity Holders 428,569 618,465 +44% Non Recurring items: Add: Charges associated with the prepayment of loan facilities at VICT, net of tax 7,559 - Add: Impairment of other non-financial assets 6,701 16,013 Recurring Net
Slide 10: Volume and Revenue
Volume and Revenue Volume Gross Revenues (in ‘000 TEUs) (in US$ millions) 10,193 11,163 12,216 1,505 1,865 2,243 +9% +20% +10% 2,657 468 +24% (21%) (22%) 2,658 (24%) -0.01% +10% 2,400 +11% 426 (24%) (23%) 3,429 +18% (28%) 760 362 (34%) 3,377 +2% (24%) 3,092 +9% (30%) 603 +26% (30%) (32%) +34% 449 (3
Slide 11: Yield / TEU Analysis
Yield / TEU Analysis % 2021 2022 change Volume 11,163 12,216 +9% (TEUs ‘000) Revenues 1,838,645 2,193,155 +19% (US$ ‘000) Revenue / TEU *Excluding MNHPI, 165 180* +9% (US$) US$184 up 12% Favorable container mix, tariff adjustments at +20 certain terminals, higher storage and ancillary revenues and c
Slide 12: Yield / Ton Analysis
Yield / Ton Analysis % 2021 2022 change Volume (Tons ‘000) 4,246 8,201 +93% Revenues (US$ ‘000) 26,376 49,836 +89% Revenue / Ton (US$) 6.21 6.08 -2% Contribution of new non-containerized terminal +0.07 MHCPSI and EJMT -0.13 -0.20 FX due to unfavorable translation impact of PHP Note: Pertains to non-
Slide 13: Cash Operating Expenses
Cash Operating Expenses (ORGANIC) 2021 2022 % change % change Volume (in TEUs) 11,163,473 12,216,190 +9% +5% Cash Operating Expenses (in US$ ‘000) 523,325 612,115 +17% +12% Cash Opex per TEU (in US$) 46.9 50.1 +7% +6% 13
Slide 14: Capital Expenditures
Capital Expenditures (In US$ million) 2022 Budget 2022 Actual 2023 Budget $42m $42m $52m 13% 11% 13% $82m US$330m 21% US$386m US$400m $262 68% $288m $348m 87% 87% 2022A CAPEX mainly for: 2023B CAPEX mainly for: EXPANSIONARY: VICT, MICT, CMSA, ICTSNL, MICTSL, IDRC EXPANSIONARY: VICT, MICT, CMSA, ICTS
Slide 15: Liquidity and Capital Resources
02 Liquidity and Capital Resources
Slide 16: Balance Sheet Summary
Balance Sheet Summary Financial Ratios (In US$ million) Dec 31, 2021 Dec 31, 2022 Dec 31, 2021 Dec 31, 2022 Intangibles and Property and Gearing: Debt/SHE 1.42 1.43 Equipment 3,588 4,063 Current Ratio: Rights-of-use assets 664 724 Current Assets/Current Liabilities 1.81 1.00 Cash and Cash Equivalent
Slide 17: Principal Redemption Profile
Principal Redemption Profile As of December 31, 2021 (In US$ million) 298 394 Perp NC26 (3) 400 400 216 290 300 Perp NC22 (2) 255 Perp NC24 (1) 148 76 21 23 17 11 17 18 20 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Relationship Banks Bonds Perpetual Securities Pro-forma January 16, 2023
Slide 18: Financing Charges & Other Expenses
Financing Charges & Other Expenses 2021 2022 % Change (In US$’ 000) Financing Charges & Other Expenses 170,543 198,042 +16% ▪ Interest Expense on Loans/Bonds 110,658 118,509 +7% ▪ Capitalized Borrowing Cost (574) (305) +47% ▪ Amortization of Debt Issue Cost 8,400 8,267 -2% ▪ Other Expenses 52,059 71
Slide 19: Total Interest-bearing Debt and Perpetual Capital Securities
Total Interest-bearing Debt and Perpetual Capital Securities (In US$’ 000) 2021 2022 Difference % Change Loans/Bonds Interest Expense on Loans/Bonds 110,084 118,204 8,120 +7% Average Outstanding Loans/Bonds 1,876,721 2,370,633 493,912 +26% Perpetual Securities Cumulative Distribution on Perpetual Ca
Slide 20: 2022 Cash Flow Waterfall
2022 Cash Flow Waterfall (In US$ million) 20
Slide 21: ESG Achievements
03 ESG Achievements
Slide 22: ESG Achievements
ESG Achievements More than 665,000 doses of Moderna, including second booster and pediatric doses, CMSA certifies as Mexico’s first carbon- have been administered to residents of National neutral port. Contecon Manzanillo has Capital Region and nearby provinces through the received the Carbon Neutra
Slide 23: Q&A
04 Q&A
Slide 24: Conclusion and Outlook
Conclusion and Outlook • Business fundamentals remain strong • Sharp focus on yield improvement and cost management to deliver superior stakeholder returns and enhanced value • With our diversified portfolio and strong financial position, the company is well positioned to withstand headwinds and cap
Slide 25: Appendix
05S Appendix
Slide 26: Yield per TEU and EBITDA Margin Evolution
Yield per TEU and EBITDA Margin Evolution Yield per TEU Evolution* In US$ 200 0.91 2.72 - 5.21 16.41 180 160 181.11 182.03 179.53 179.53 140 164.70 164.70 120 Yield/TEU Organic New Terminals MNHPI Forex Yield/TEU Dec 2021 Dec 2022 Note: *Excluding predominantly non-containerized terminals (MHCPSI, K
Slide 27: Proactive FX Risk Management
Proactive FX Risk Management Revenue Currency by Subsidiary Cash Expense Currency by Subsidiary ICTSI’s revenue and cash USD EUR Local Currency Subsidiaries Local Currency EUR USD Revenues from Port Operations expenses are favourably (2022 Revenue Breakdown by Currency) 42% 58% PHP MICT 94% PHP 6% m
Slide 28: Thank you!
International x, Container Terminal iis Services, Inc. — = ae
International Container Terminal Services — FY2022 Earnings Presentation on 6ix