Nmtp · RUS:NMTP
Nmtp — NCSP Group — Investor Presentation (March 2012)
44 slides from Nmtp's investor presentation, March 2012
Slide 1: Master Plan Presentation: NCSP Group Development Strategy until 2020
Master Plan Presentation NCSP Group Development Strategy until 2020 March 2012 Moscow 2012
Slide 2: Disclaimer
Disclaimer All statements in this presentation, other than historical facts, that address company’s business are forward looking statements. Although, NCSP believes that expectations expressed in such forward looking statements are based on reasonable assumptions, such statements should not in any w
Slide 3: Contents
Contents 1. Introduction 2. Strategy Highlights 3. Investment Projects 3
Slide 4: NCSP Group Today
NCSP Group Today Key Highlights Largest port operator in Russia and third largest in Europe in terms of cargo turnover o 29.75% of total cargo turnover through Russian sea ports in 2011 Primorsk Unique geographic location – all west- and south- bound routes of Russian foreign trade Baltysk Com
Slide 5: History of NCSP Group
History of NCSP Group 2006 – 2007 2007 – 2010 2011 - Credit ratings, Eurobonds, IPO - First wave of consolidation - Acquisition of PTP - Completion of NGT - Abolition of internal - New team - new strategy competition in the port - Completion of first stage of BSC development - Implementation of Mast
Slide 6: Shareholder Structure of NCSP Group and the Golden Share
Shareholder Structure of NCSP Group and the Golden Share Shareholder structure “Golden Share” – is a paragraph in the Charter that enables: 5.3% 20.0% o Russian Government represented by Federal State Property Management Agency to nominate one candidate to the Board of Directors with a veto right 50
Slide 7: New Management Team
New Management Team Marat M. Shaydayev Rado Antolovic First Deputy CEO Deputy CEO for marketing and sales • Appointed in February 2011 • Appointed in March 2011 • 2004 - 2006 – General director of “SUMMA” Ltd. • Has been working in various ports since 1976, in such companies as MOL, • 2005 - 2009 –
Slide 8: New Management Team
New Management Team Alexey A. Medvedev Mikhail V. Sidorov IT Director Deputy CEO for Public Relations • Graduated with honors from Izhevsk State Technical University with a degree in • 2006-2009 - different positions in “IMA Group”. More than 15 years of engineering professional experience. Has succ
Slide 9: Contents
Contents 1. Introduction 2. Strategy Highlights 3. Investment Projects 9
Slide 10: Objectives, Tasks and Elements of NCSP Group Strategy
Objectives, Tasks and Elements of NCSP Group Strategy Objectives Tasks To become the most effective port operator in To ensure equal access to the Port infrastructure Russia for all freight forwarders To strengthen the Group’s position as the largest To achieve maximum efficiency of current
Slide 11: Current Areas of Efficiency Improvement of NCSP Group
Current Areas of Efficiency Improvement of NCSP Group STRATEGY Master Plan developed for the period of 2012-2020 providing clear roadmap for long term sustainable business growth. Senior executives replaced with highly professional and experienced management team; Moscow Representative Office
Slide 12: Current Areas of Efficiency Improvement of NCSP Group
Current Areas of Efficiency Improvement of NCSP Group Creation of unified motivation system for the Group of companies on the basis of KPIs and their relation to strategic development directions ; Setting up KPI system for top managers based on their goals achievement and considering the Shareho
Slide 13: NCSP Group Strategy for 2011-2020
NCSP Group Strategy for 2011-2020 Short-term strategy Medium-term strategy Long-term strategy (2011-2012) (2012-2015) (2015-2020) Organization New organizational structure Pilot projects for consolidation Capitalizing on pilot projects’ approval of certain functions experience to consolidate G
Slide 14: Containers Market Model
Containers Market Model Mln TEU per year In 2011 NCSP Group Container turnover increased by 27% (in TEU) including 44% growth in Novorossiysk versus average Russian market growth rate of 20% Key regions of container transshipment growth Transit through ports Percent 100% = 9 mln TEU of Finland North
Slide 15: Grain Market Model
Grain Market Model Mln tons per year In 2011, the Group achieved growth in grain handling (+0,3%), despite the fact that the export ban in 2011 lasted for six months versus 4.5 months in 2010, demonstrating record monthly average grain handling volumes Transshipment, fact Rail and other Transshipmen
Slide 16: Iron Ore & Ore Concentrate Market Model
Iron Ore & Ore Concentrate Market Model Mln tons per year Transshipment, fact Transshipment, forecast In 2011, the Group achieved growth in Iron Ore & Ore Concentrate handling of 25% Iron ore production and export balance in Russia 29 Capacity widening projects 24 22 107 112 ▪ Kimkanskoe The Far 85
Slide 17: Oil Market Model
Oil Market Model Mln tons per year Oil exports and main pipelines capacity, 2020 mln tons Capacity reserve In 2011 NCSP Group was 450-5051 Transshipment, fact able to maintain stable 420 volumes of crude oil 220-240 Transshipment, forecast 250-290 transshipment (-0,9%) despite decrease of exports fr
Slide 18: Oil Products Market Model
Oil Products Market Model Mln tons per year Exports and domestic oil processing, 2020 In 2011 NCSP Group Transshipment, fact increased oil products 400-500 Transshipment, forecast transshipment by 30% following the rent of two Russian Baltic ports 220-240 160-280 berths in Primorsk. Further growth p
Slide 19: Coal Market Model
Coal Market Model Mln tons per year Transshipment, fact Transshipment forecast, Rail and other types negative scenario Transshipment of transport Transshipment Transshipment forecast, through Baltic 17-17 positive scenario through Russian 12 States ports 3 Baltic ports 14 8-11 26-39 8 2010 2020 8 3
Slide 20: NCSP Group Objectives
NCSP Group Objectives Containers Oil To ensure appropriate growth of transshipment To monitor oil production outlook, including East capacities Siberian oil fields To create a schedule of capacity growth, starting from To ensure NCSP competitive advantage in Russian oil the least costly proj
Slide 21: Railway infrastructure development in the direction of Primorsk
The problem of development of railway infrastructure in the direction of Primorsk port is being resolved in cooperation with Roszheldor and RZD • Modernization of • Construction of a new railway line Ruchyi – Losevo Railway Kamennogorsk – Losevo connection under • Construction and • The project is i
Slide 22: Construction of Yard B at Novorossiysk station
Construction of the Yard B at Novorossiysk station will solve the problem of capacity shortage in the direction of the port Tikhoretsk Southern region Timashevsk Temryuk 2Н Kavkaz 4Н Yurovsky 3Н 9th km Krasnodar Krymskaya Anapa Novorossiysk Grushevaya It is not the main raiway line and railway acc
Slide 23: Contents
Contents 1. Introduction 2. Strategy Highlights 3. Investment Projects 23
Slide 24: NCSP Group Investment Projects – Summary
NCSP Group Investment Projects – Summary NCSP Group continues to implement its investment program, which was approved by the previous team. The main emphasis of the program was made on new terminals construction (Sheskharis, NMT, BSC). Out of $538 mln1, $416 mln had been invested as of the end of 20
Slide 25: Current Projects in Accordance with Existing Investment Program
Current Projects in Accordance with Existing Investment Program IPP - Implementation Seskharis - Implementation Replacing old tanks, Completion of the the oil terminal’s construction of new tanks for oil reconstruction is planned for 2013. The products and liquid fertilizers terminal’s throughput ca
Slide 26: Existing Investment Projects
Existing Investment Projects Bunkerage complex PTP BSC Construction of bunkerage complex with the capacily of 410 Completion of construction of the first phase of container thousand tons per annum has been completed (potential to terminal with capacity of 200 thousand TEU for Kaliningrad handle fuel
Slide 27: Existing Investment Projects
Existing Investment Projects Construction period Investments Invested to date Additional Project Start End ($ mln) ($ mln) Capacity 1. Approved and existing projects Novorossiysk 1▪ Reconstruction of 2006 2013 145.7 113.8 + 0-15 mln tons Sheskharis Oil Terminal 2 ▪ Construction of Fuel Oil April 201
Slide 28: Sheskharis Oil Terminal reconstruction
Overview of Key investment Projects Sheskharis Oil Terminal reconstruction Objective ▪ Construction of the terminal А with capacity of 50 mln tons to ensure capital repairs at the terminal B ▪ Possibility to admit vessels with 150 thousand tons DWT, Old Berth (B) which are currently served at the be
Slide 29: Construction of Fuel Oil Terminal, Pier 4 reconstruction
Overview of Key Investment Projects Construction of Fuel Oil Terminal, Pier 4 reconstruction Objective ▪ Construction of a modern fuel oil terminal with capacity of 4 mln tons per annum through a 50–50 joint venture with a major international oil trader ▪ Dredging up to 13.5 m and reconstruction of
Slide 30: Bunkering terminal expansion and reconstruction at IPP
Overview of Key Investment Projects Bunkering terminal expansion and reconstruction at IPP Expansion of bunkerage complex IPP Reconstruction of IPP Objective Objective Expansion of an existing storage park via construction of a Increase of existing capacities of IPP by replacing old tanks new ta
Slide 31: Construction of bunkerage complex at Primorsk
Overview of Key Investment Projects Construction of bunkerage complex at Primorsk Objective Bunkerage complex ▪ Construction of bunkerage complex with the capacily of 410 thousand tons per annum has been completed ▪ Before the launch of the complex, bunkering services were offered by other operators
Slide 32: Container terminal construction at Baltiysk
Overview of Key Investment Projects Container terminal construction at Baltiysk Objective Construction of modern container terminal with capacity of 400 thousand TEU for Kaliningrad region needs Key changes ▪ Container throughput increase is possible due to existing clients’ volumes growth, as wel
Slide 33: The New Development Concept - Specialization of NCSP's Production Areas
The New Development Concept - Specialization of NCSP’s Production Areas Profitability analysis of storage space at NLE and NCSP in 2010 Outbuildings EBITDA per m2 of storage space1. Share in aggregated EBITDA of Thousand RUB per annum # NLE + three NCSP Areas Thousand RUR per m2 p/a NLE NCSP <2 2-3
Slide 34: The New Development Concept - Specialization of NCSP's Production Areas
The New Development Concept - Specialization of NCSP’s Production Areas Projected specialization of production areas by 2020 Grain Containers ICD/Land acquisition NLE NGT – Under consideration Sugar/Perishable Iron ore/fertilizers Establishing ICD in Construction of specialized Construction of addit
Slide 35: The New Development Concept - Containers
The New Development Concept - Containers Development options There were three options considered to increase container cargo flow in Novorossiysk. Management opted for the least expensive and least risky option to achieve the result Option I – DECLINED Option II – DECLINED Option III ▪ Construction
Slide 36: Construction of dedicated container terminal at NLE
The New Development Concept - Containers Construction of dedicated container terminal at NLE with up to 500 thousand TEU capacity NLE Capacity Objective Thousand TEU 2011 2012 2013 2014 2015 2016 2017 New Project 0 0 0 86 300 400 450 ▪ Construction of a dedicated container terminal on the base of Ex
Slide 37: Construction of Inland Container Depo (ICD)
The New Development Concept - Containers Construction of Inland Container Depo (ICD) A distinctive feature of ICD is its functional dependence on the sea port operations, which determines scope of services at the inland terminal Major factors, affecting ICDs operations Major ICD advantages for sea p
Slide 38: Logistics container delivery chain from door to door
The New Development Concept - Containers Logistics container delivery chain “from door to door” ▪ Port services c.u./TEU 0.075 Exists Long-term scheme, requires development ▪ Terminal c.u./TEU 1.0 Exists End customer/ laden Road ▪ Freight forwarding and ICD c.u./TEU 0.75 Partially transpotation cont
Slide 39: NGT expansion
Overview of Investment Projects NGT expansion Objective ▪ NGT capacity expansion through ▪ New grain silos which will increase storage capacity from 120 to 188 thousand tons ▪ Instalation of a third ship loader ▪ Construction of a fourth line for unloading grain trucks ▪ Berths repair Planned result
Slide 40: New Development Strategy – Iron Ore and Ore Concentrate Terminal
New Development Strategy – Iron Ore and Ore Concentrate Terminal Marketing study of the project Financial results and investments ▪ Metalloinvest production of iron ore in 2011 was 40.1, 22.0 mln tons of ▪ 2011 results pellets, 5.2 mln tons of HBI/DRI – Throughput: 2.9 mln tons per annum ▪ There was
Slide 41: Hydrotechnical infrastructure of iron ore and ore concentrate terminal
New Development Strategy – Iron Ore and Ore Concentrate Terminal Hydrotecnical infrastructure of iron ore and ore concentrate terminal Railway Covered storage for mineral fertilizers Ship-loaders Covered storage for iron ore 41
Slide 42: Potential Projects
Potential Projects Long-term projects of construction of terminals in Primorsk for handling Containers, Ferrous Metals, Iron Ore and Ore Concentrate, Mineral Fertilizers and Oil Products Project description ▪ Objective: construction of multi-purpose deep-water port in the Russia’s North-West; creati
Slide 43: Projects of The New Development Concept
Projects of The New Development Concept Construction Period Investments Additional Project Start End ($ mln) Capacity 8 ▪ Construction of specialized container terminal 2012 2014 207.1 + 500 thousand TEU on the basis of NLE facilities (including modernization of current NLE and Port infrastructure)
Slide 44: Your Contacts at NCSP
Your Contacts at NCSP: Your Contacts at NCSP: Mikhail Grigoriev Head of Investor Relations Tel: +7 (495) 771-6060 ext. 238 e-mail: MGrigoriev@nmtp.info Kristina Senko Press-centre Tel: + 7 (8617) 60-43-93, Fax: + 7 (8617) 61-21-40 e-mail: senko@ncsp-net.com 44