FY 2017 INVESTOR BRIEFING PRESENTATION. March 7, 2018

Transcription

1 FY 2017 INVESTOR BRIEFING PRESENTATION March 7, 2018

2 AGENDA

3 Volume (in TEU) Full Year Fourth Quarter 7,775, ,334 12% 12% 8,689,363 9,153,458 5% 1,481,973 1,131,792 16% 13% 2,007, ,365 13% 657,351 33% 12% 2,254,171 2,316,848 3% 308, ,277 14% 18% 756, ,272 34% 29% 2,738,079 35% 3,004,690 35% -5% 2,855,580 31% 1,096,029 1,188,539 1,238,299 55% 53% 53% Asia Americas EMEA 4,094,580 53% 4,552,881 52% 4,815,905 53% Asia Americas EMEA 2017 vs 2016 consolidated volume up 5%; Organic volume growth at 4% Volume growth was due to improving global trade activities particularly in the emerging markets; continuing ramp-up at ICTSI Iraq; new services at CMSA; the contribution of new terminals, IDRC VICT. 3

4 Revenues (in US$ 000) Full Year Fourth Quarter 1,051,325 1,128,395 1,244, ,290 31,098 12% 13% 293, ,169 47,610 16% 11% 72,962 22% 109,109 10% 7% 159,567 14% 10% 251,810 20% 88,173 34% 99,466 97,033 7% 140, , ,175 54% 34% 50% 30% 48% 377,639 36% 387, ,382 34% 32% Asia Americas EMEA Yield:TEU (in US$) , , ,246 54% 52% 48% Asia Americas EMEA Consolidated revenues 10% higher in 2017 vs 2016; Organic revenue growth at 7% Consolidated 2017 yield to TEU at US$136 vs US$130 in

5 Consolidated P&L Highlights (in US$ 000, except Volume & EPS) Gross Revenues from Port Operations Cash Operating Expenses EBITDA % change Volume (in TEU) 8,689,363 9,153,458 5% 1,128, , ,078 1,244, , ,012 10% 13% 10% Volume up 5% due to improving global trade particularly in the emerging markets; continuing ramp-up at ICTSI Iraq; new services at Manzanillo, Mexico the new terminals in Matadi, DRC Melbourne, Australia; Organic volume growth at 4% Revenues increased 10% mainly due to volume growth; tariff rate adjustments at certain terminals; new contracts services with shipping lines; contribution of the new terminals IDRC VICT; Organic revenue growth at 7% Cash Opex 13% higher due to cost contribution of the new terminals; higher throughput, increase in fuel prices power rates at certain terminals; unfavorable translation impact of the BRL appreciation at Suape, Brazil EBITDA increased 10% mainly due to strong operating results at ICTSI Iraq, CMSA, OPC, MICTSL, YICT, BCT TSSA EBIT 377, ,547 7% EBITDA margin slightly decreased from 46.5% to 46.4% mainly due to the additional operating expenses from the new terminal, particularly the lease payment at Melbourne, Australia Financing charges other expenses 111, ,461 19% Financing charges other expenses up 19% mainly due to higher average loan balance, lower capitalized borrowing cost on qualifying assets Net Income Net Income Attributable to Equity Holders 193, , , ,141 7% 1% Net income attributable to equity holders up 7% due to strong operating results from the terminals in ICTSI Iraq, Mexico, Honduras, Madagascar, China, Pol Brazil; the gain related to the termination of the subconcession agreement in Nigeria tapered by higher interest & financing charges; higher depreciation & amortization expenses; start-up costs at the new terminal in Australia, increase in the share in the net loss of the new terminal in Colombia Fully Diluted EPS % 5

6 Financing Charges & Expenses (in US$ 000s) % change Financing charges & other expenses 111, ,461 19% Interest Expense on Loans/Bonds 92, ,496 11% Capitalized Borrowing Cost (24,257) (9,709) -60% Amortization of Debt Issue Cost 6,344 6,626 4% Expenses 36,351 32,048-12% Higher interest expense due to higher debt level Lower capitalized borrowing cost on qualifying assets Due to lower non-recurring charges. Average Outsting Debt Balance 1,286,409 1,505,796 17% Average Outsting Debt Balance higher mainly due to Parent level short-term loan drawdowns Project finance loans of CMSA VICT 6

7 Historical Volume, Revenue & EBITDA CURRENCY RISK ANALYSIS 400 2,500 Revenue EBITDA (in USD millions) ,000 1,500 1, Volume (in TEU thouss) Q Q 3Q 4Q 1Q Q 3Q 4Q 1Q Q 3Q 4Q 1Q Q 3Q 4Q 0 Revenue EBITDA Volume 7

8 Americas Americas EMEA EMEA Asia Asia Revenue Expense Profile by Currency Revenue Currency by Subsidiary Subsidiaries USD EUR Local Currency MICT 44% 56% PHP PTMTS 100% IDR YICT 100% RMB OJA 66% 34% IDR PICT 76% 24% PKR SBITC/ISI 52% 48% PHP SCIPSI DIPSSCOR HIPS MICTSI BIPI LGICT VICT 100% AUD BCT 74% 1% 25% PLN MICTSL 100% BICT 100% AGCT 79% 21% HRK BGT 89% 11% IQD IDRC 100% TSSA 100% BRL CGSA 100% OPC 100% CMSA 49% 51% MXN Cash Expense Currency by Subsidiary Subsidiaries USD EUR Local Currency MICT 34% 66% PHP PTMTS 100% IDR YICT 100% RMB OJA 12% 88% IDR PICT 17% 83% PKR SBITC/ISI 42% 58% PHP SCIPSI DIPSSCOR HIPS MICTSI BIPI LGICT VICT 6% 94% AUD BCT 35% 65% PLN MICTSL 2% 39% 59% MGA BICT 100% GEL AGCT 12% 88% HRK BGT 19% 81% IQD IDRC 96% 4% CDF TSSA 100% BRL CGSA 100% OPC 52% 48% HNL CMSA 8% 92% MXN TECPLATA 16% 84% ARS Revenues Breakdown by Currency 6% MXN 5% BRL 6% PHP 22% BRL 6% s RMB 3% 3% PKR EUR 2% s 12% IQD 3% PKR 4% AUD 6% MXN 6% Gross Revenues US$ 1,244M PHP 17% USD 54% Expense Breakdown by Currency Cash Expenses US$931M USD 44% Note: Total Cash Expense includes Cash Opex, Port Fees, Realized FX losses, Interest Cost, Perp Distribution, IFRIC Interest, cash expenses Income tax paid

9 FX Movement since January January-December Currency Ave 2016 Ave 2017 Growth (%) BRL EUR PKR (0.6) MXN (1.2) RMB (1.6) PHP (6.2) 9

10 2017 Yield/TEU Comparison % Change Volume (TEU 000) 8,689 9,153 5% Revenues (US$ million) 1,128 1,244 10% Yield/TEU (US$) % EBITDA (US$ million) % EBITDA Margin 46% 46% FX : Negative impact of the translation of PHP tapered by favorable variance of EUR BRL Increase in break bulk revenues tariff rates in CGSA, higher storage revenues in BGT & MICTSL, contribution of IDRC

11 Yield/TEU Evolution Evolution of Yield/TEU Yield/TEU Dec 2016 Organic New Forex Yield/TEU Dec

12 EBITDA Margin Evolution 49% Evolution of EBITDA Margin 0.04% 48% 2.1% 2.1% 47% 46% 46.5% 46.4% 45% EBITDA % Dec 2016 Organic Forex New Terminals EBITDA % Dec

13 AGENDA Capital

14 Balance Sheet Summary (in US$ millions) Intangible Property equipment 2,864 3,102 3,203 Cash cash equivalents current noncurrent assets Total Assets ,831 4,182 4,371 Total Short-term Long-term debt 1,083 1,381 1,494 Concession rights payable current noncurrent liabilities Total Liabilities Total Equity 2,005 2,416 2,498 1,826 1,873 1,766 Gearing: Debt/SHE Debt Cover Ratio: Debt/EBITDA (per covenant) Current Ratio: Current Assets/Current Liabilities DSCR: EBITDA/(Interest + Scheduled Principal Payments)

15 Principal Redemption Profile (in US$ million) Principal redemption is managed dynamically opportunistically to ensure our capital structure is well positioned to match the long-term nature of port concession contracts. LME3 in October 2016 as of December 31, 2017 Pro forma January 18, LME LT Loans/Bonds Perp ST Loans RCF LME ST LT / Bonds Perp with Rate reset ST LT / Bonds Perp with Rate reset Perp FFL Liability management exercise in October 2016 extended duration of US$345 million perpetual securities from to 2024, reduced coupon from 6.25% 5.5% to 4.875%. Issued US$400M Senior Fixed-for-Life Perpetual Securities in January 2018 No significant debt maturity until

16 Capital Expenditures 2017B 2017A 2018B US$30M 13% US$12M 7% US$8M US$40M US$45M 12% 2% 10% US$75M 31% US$240M US$135M 56% US$36M 21% US$175M US$127M 72% US$380M US$287M 76% US$25M US$25M US$3M Greenfield Expansionary Maintenance New Projects Investment (SPIA) 2017 CAPEX mainly for: GREENFIELD: Australia, Iraq, DR Congo, Honduras EXPANSIONARY: Manila & Mexico 2018 CAPEX mainly for: GREENFIELD: Australia EXPANSIONARY: Manila, Honduras, Mexico & Iraq NEW: Papua New Guinea & Cavite 16

17 AGENDA s

18 Events Company Overview Appendices Feb South Pacific International Container Terminal Limited ( SPICTL ) commenced commercial operations 2018 Jan Issued US$400M Senior Fixed-for-Life Perpetual Securities 2017 Nov PT ICTSI Jasa Prima Tbk (IJP) signed a conditional share purchase agreement with PT Samudera Terminal Indonesia (STI) for the purchase of IJP s interest in PT Perusahaan Bongkar Muat Olah Jasa Anda (OJA), subject to certain conditions. Oct ICTSI has signed expansion agreement for the second development phase of the Basra Gateway Terminal (BGT) in the North Port, Umm Qasr, Iraq Sep Motukea International Terminal Limited ( MITL ) South Pacific International Container Terminal Limited ( SPICTL ) signed 25-year Terminal Operating Agreements with PNG Ports Corporation Limited ( PNGPCL ) for the Operation, Management Development of the international ports in Motukea Lae, in Papua New Guinea ICTSI acquired 34.83% of Manila North Harbour Port, Inc ( MNHPI ) from Petron Corporation May Lekki International Container Terminal Services LFTZ Enterprise Lekki Port LFTZ Enterprise have mutually agreed to terminate their Sub-concession Agreement Apr Cavite Gateway Terminal, in partnership with the Philippine Department of Transportation, launched the country s first container roll-on roll-off barge terminal in Tanza, Cavite 18

19 AGENDA

20 FY 2017 INVESTOR BRIEFING PRESENTATION