Qube Holdings Ltd. · ASX:QUB
Qube — Investor Presentation (April 2020)
38 slides from Qube's investor presentation, Apr 30, 2020
Slide 1: Investor Presentation: Entitlement Offer
Not for release to US wire services or distribution in the United States QUBE HOLDINGS LIMITED Investor Presentation: Entitlement Offer 30 April 2020
Slide 2: Disclaimer – Important Notice
DISCLAIMER – IMPORTANT NOTICE This investor presentation (Presentation) has been prepared by Qube Holdings Limited (ACN 149 723 053) (Qube) and is dated 30 April 2020. This Presentation has been prepared in relation to a proposed capital raising comprising a fully underwritten pro rata accelerated n
Slide 3: Disclaimer – Important Notice
DISCLAIMER – IMPORTANT NOTICE Not financial product advice This Presentation does not constitute investment or financial product advice (nor tax, accounting or legal advice) nor any recommendation to acquire New Shares. Each recipient of the Presentation should make its own enquiries and investigati
Slide 4: Disclaimer – Important Notice
DISCLAIMER – IMPORTANT NOTICE Effect of rounding Several figures, amounts, percentages, estimates and calculations of value in this Presentation are subject to the effect of rounding. Forward-looking statements and forecasts This Presentation contains certain “forward-looking statements” that are ba
Slide 5: Disclaimer – Important Notice
DISCLAIMER – IMPORTANT NOTICE Disclaimer Neither UBS AG, Australia Branch nor Merrill Lynch Equities (Australia) Limited (the Underwriters), nor any of their or Qube’s respective advisers nor any of their respective affiliates, related bodies corporate, directors, officers, partners, employees or ag
Slide 6: Table of Contents
TABLE OF CONTENTS 1 Executive summary 2 Continued investment in diversification and growth 3 Ongoing progress at Moorebank 4 COVID-19 and trading update 5 Funding and liquidity 6 Qube Pro Forma Balance Sheet – 31 Dec 2019 7 Key details of the Entitlement Offer and Entitlement Offer timetable Appendi
Slide 7: Executive Summary
1 EXECUTIVE SUMMARY Announcement of Entitlement Offer 1 • 1 for 6.35 fully underwritten accelerated non-renounceable pro rata Entitlement Offer to raise approximately $500 million • Provides additional balance sheet flexibility to continue to pursue growth opportunities, with over $1,150 million(1)
Slide 8: Continued Investment in Diversification and Growth
2 CONTINUED INVESTMENT IN DIVERSIFICATION AND GROWTH Strong track record of delivering growth in its core businesses and through acquisitions Overview Recent contract wins requiring growth capex • Contract with BlueScope Steel to provide interstate steel train services and • Qube continues to win ne
Slide 9: Ongoing Progress at Moorebank
3 ONGOING PROGRESS AT MOOREBANK Continued momentum in leasing and development. Significant upcoming tenancy milestones, with property partnering / monetisation initiative also progressing • Train services commenced at IMEX terminal • Commencement of tenant operations including Target distribution ce
Slide 10: Ongoing Progress at Moorebank
3 ONGOING PROGRESS AT MOOREBANK Continued development and leasing momentum. Significant upcoming tenancy milestones, with property partnering / monetisation initiative also progressing Moorebank Today 10
Slide 11: COVID-19 and Trading Update
4 COVID-19 AND TRADING UPDATE Near term impacts associated with COVID-19 being experienced in several of Qube's markets, however diversified business model remains resilient and investment in long term strategic growth priorities remains unchanged • Bulk activities: continue to experience normal vol
Slide 12: Funding and Liquidity
5 FUNDING AND LIQUIDITY The Offer will provide additional balance sheet flexibility to continue to pursue growth opportunities Sources of funds $m Entitlement offer impact on funding Pro rata non-renounceable Entitlement Offer 500.0 • Liquidity (cash and undrawn facilities) of ~$470 million as at 31
Slide 13: Funding and Liquidity
5 FUNDING AND LIQUIDITY Liquidity of over $1,150 million with no near term maturities(1) Debt facilities maturity profile as at 31 December 2019 Credit metrics 1500 As at Pro forma Credit metrics (2) (2) 31 Dec 19 for Offer 150 1000 305 Net debt $1,574m $1,084m 500 835 Net senior debt $1,269m $779m
Slide 14: Qube Pro Forma Balance Sheet – 31 Dec 19
6 QUBE PRO FORMA BALANCE SHEET – 31 DEC 19 $m 31-Dec-191 Offer2 Pro-forma ASSETS Current assets: Cash and cash equivalents 114.5 114.5 Trade and other receivables 393.2 393.2 Other current assets 72.1 72.1 Total current assets 579.8 579.8 Loans and receivables 300.2 300.2 Investment in equity accoun
Slide 15: Key Details of the Entitlement Offer
7 KEY DETAILS OF THE ENTITLEMENT OFFER Entitlement • 1 for 6.35 accelerated pro rata non-renounceable Entitlement Offer to raise approximately $500 million Offer – approximately 256 million new fully paid ordinary shares (“New Shares”) (equivalent to 15.7% of current issued capital) – fully underwri
Slide 16: Entitlement Offer Timetable
7 ENTITLEMENT OFFER TIMETABLE Timetable is indicative only and dates and times are subject to change without notice Event Date Trading halt Monday 27 April 2020 Announcement of details of the Entitlement Offer Thursday, 30 April 2020 Institutional Entitlement Offer bookbuild Thursday, 30 April 2020
Slide 17: Appendix A: Key Risks
APPENDIX A: KEY RISKS 17
Slide 18: Key Risks
A KEY RISKS You should be aware that there are risks involved with participating in the Entitlement Offer and/or holding Qube shares. The risks set out in this section are not listed in order of importance and do not constitute an exhaustive list of all risks involved with an investment in Qube. Oth
Slide 19: Key Risks: Impact of COVID-19
A KEY RISKS QUBE RISKS Impact of the COVID-19 pandemic Qube’s business activities are typically correlated to the level of domestic economic activity and GDP growth (for its import related logistics services), and global economic growth and particularly China (for its export related logistics servic
Slide 20: Key Risks: Economic Conditions
A KEY RISKS QUBE RISKS Economic conditions The operating and financial performance of Qube’s businesses are influenced by a variety of general economic and business conditions including contraction of the global economy, commodity prices, interest rates and exchange rates and government fiscal, mone
Slide 21: Key Risks: Pre-COVID Events
A KEY RISKS QUBE RISKS Impact of events prior to the COVID-19 pandemic, including bushfires and adverse weather Qube’s business activities are typically correlated to the level of domestic economic activity and GDP growth (for its import related logistics services), and global economic growth, parti
Slide 22: Key Risks: Early Stage Projects
A KEY RISKS QUBE RISKS Early stage projects A key part of Qube's growth strategy involves identifying and pursuing growth opportunities within its existing business. This includes the development of projects within Qube's Infrastructure & Property division, including Moorebank. These early stage pro
Slide 23: Key Risks: Infrastructure Levies and Patrick
A KEY RISKS QUBE RISKS Infrastructure levies and impact of business and economic conditions on the growth in container volumes at Patrick Patrick charges infrastructure levies (now commonly referred to as 'landside charges') on certain users within its terminals. The Victorian Government recently co
Slide 24: Key Risks: Operational Risk
A KEY RISKS QUBE RISKS Operational risk Qube is subject to operational risks resulting from inadequate or failed internal processes, systems, policies or policies, in addition to potential hazards normally encountered with logistics and transportation enterprises, including but not limited to incide
Slide 25: Key Risks: Litigation and Counterparty
A KEY RISKS QUBE RISKS Litigation and disputes Qube may become involved in litigation, arbitration, expert determination, class actions and or other claims and disputes, which could adversely affect financial performance and reputation. Any litigation, arbitration, expert determination, class action
Slide 26: Key Risks: Taxation and Safety
A KEY RISKS QUBE RISKS Taxation The risk that changes in tax law (including goods and services taxes and stamp duties), or changes in the way tax laws are interpreted in the various jurisdictions in which Qube operates, may impact the tax liabilities of Qube. In addition, the ability of Qube to obta
Slide 27: Key Risks: Trading Price of Shares
A KEY RISKS QUBE RISKS Trading price of Qube shares and general risks associated with investments in equity capital There are risks associated with any share market investment. It is important to recognise that share prices and dividends might fall or rise. Factors affecting the operating and financ
Slide 28: Offer Risks
A KEY RISKS OFFER RISKS Underwriting risk The Entitlement Offer is subject to a range of conditions and termination events set out in the underwriting agreement entered into by Qube and the Underwriters on 30 April 2020 (Underwriting Agreement). If certain conditions are not satisfied or certain eve
Slide 29: Offer Risks
A KEY RISKS OFFER RISKS Underwriting risk (continued) • Qube ceases to be admitted to the official list of the ASX or Qube shares are suspended from trading on (other than with the written consent of the Underwriters), or cease to be quoted on, ASX (excluding a trading halt contemplated by the Under
Slide 30: Offer Risks
A KEY RISKS OFFER RISKS Underwriting risk (continued) • Qube fails to perform or observe any of its obligations under the Underwriting Agreement, an obligation of Qube becomes incapable of being performed or observed or unlikely to be performed or observed by the required time, or a representation o
Slide 31: Offer Risks
A KEY RISKS OFFER RISKS Risk of dilution You should also note that if you do not take up all of your entitlement under the Entitlement Offer, then your percentage security holding in Qube will be diluted by not participating to the full extent in the Entitlement Offer. Investors may also have their
Slide 32: Appendix B: International Selling Restrictions
APPENDIX B: INTERNATIONAL SELLING RESTRICTIONS 32
Slide 33: International Selling Restrictions
B INTERNATIONAL SELLING RESTRICTIONS This document does not constitute an offer of New Shares of Qube in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold in the Entitlement Offer, in any c
Slide 34: International Selling Restrictions
B INTERNATIONAL SELLING RESTRICTIONS Statutory rights of action for damages and rescission Securities legislation in certain of the Provinces may provide purchasers with, in addition to any other rights they may have at law, rights of rescission or to damages, or both, when an offering memorandum th
Slide 35: International Selling Restrictions
B INTERNATIONAL SELLING RESTRICTIONS European Union This document has not been, and will not be, registered with or approved by any securities regulator in the European Union. Accordingly, this document may not be made available, nor may the New Shares be offered for sale, in the European Union exce
Slide 36: International Selling Restrictions
B INTERNATIONAL SELLING RESTRICTIONS New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (the FMC Act). The New Shares are not being offered to the public within New Zealand other than to exist
Slide 37: International Selling Restrictions
B INTERNATIONAL SELLING RESTRICTIONS Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document or materials i
Slide 38: International Selling Restrictions
B INTERNATIONAL SELLING RESTRICTIONS United Arab Emirates This document does not constitute a public offer of securities in the United Arab Emirates and the New Shares may not be offered or sold, directly or indirectly, to the public in the UAE. Neither this document nor the New Shares have been app