NCSP Group Financial Results For The Six Months

Transcription

1 NCSP Group Financial Results For The Six Months

2 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 way be construed as guarantees of future performance. Factors that could cause developments to differ materially from those expressed include overall market conditions. The company is subject to specific risks inherent in the stevedoring business and general economic and business conditions. Any statement or number in this presentation may be changed, depending on market conditions and other relevant developments. 2

3 NCSP Group Market Position Europe s Largest Ports, mln tones Russia s Largest Ports, mln tones Algeciras NCSP Group Hamburg Ust-Luga NCSP Group Vostochniy Saint Petersburg Rotterdam CPC NCSP Group ranks 1 in the Russian port sector and 3 among European ports by volume, holding strategic market share in transshipment of all key export commodities at Russian seaports NCSP Group Market Share as Part of Total Volumes of the Russian Seaports in % 42% 40% 30% 23% 21% 12% Total Russian Seaports Ferrous metals Iron ore Crude oil Grain NCSP Group Oil products Other ports Containers 3

4 NCSP Group Clients NCSP Group clients are major commodity producers, exporters, and traders from Russia and the neighboring countries 4

5 NCSP Group Geographic Positioning Unique positioning of NCSP Group terminals on the Baltic and the Back Sea allows it to benefit from growing demand for transshipment of all types of cargo in the European and Asian markets. Baltic Sea Basin Azov-Black Sea Basin 24% NCSP Group market share in ,5% NCSP Group market share in mln t 58.6 mln t Antwerp Hamburg Rotterdam Marseille Constanta S. Petersburg/ Primorsk Port Kaliningrad/ Baltyisk Port Novorossiysk 269,5 mln t 84.9 mln t Valencia Pusan At the crossroads of many European transport routes Developed infrastructure Direct access central Russia Dakar Alger Douala Mombasa Lobito Haifa Port Said Dubai Mumbai Colombo Kolkata Shanghai Hong- Kong Singapore Jakarta Tokyo Major hub for intercontinental trade All-year navigation Core grain exporting region Second largest port for crude oil and oil products Cape Town Perth Brisbane Adelaide Access to markets North-West Europe North America Sydney Access to markets Mediterranean India South-East Asia Middle East Africa Central and South America 5

6 1 Half 2018 FINANCIAL AND OPERATING PERFORMANCE * Management accounts 6

7 Highlights of the 1H 2018 Volumes 70,5 mln tons Revenue $ 480,5 mln EBITDA $ 342,7 mln EBITDA Margin 71,3 % Debt $ mln Net debt $ 879,8 mln Cash $ 227 mln * Management accounts 7

8 $ mln Revenue Factor Analysis 1H 2018 / 1H 2017, $ mln 520,0 510,0 33,0-30,3 500,0 490,0 480,0 470,0 20,8 2,4-1,6 2,8 4,5 480,5 460,0 450,0 448,9 440,0 430,0 420,0 6М 2017 Volume* Tariff Conversion to $ Bunkering Port services Fleet services Other 6М

9 Revenue Factor Analysis by Cargo 1H 2018 / 1H 2017, $ mln $ mln 520,0 33,0-30,3 500,0-0,7 480,0 13,8-0,8 2,8 2,0 480,5 0,7 0,8 460,0 11,2 448,9-3,6 2,7 440,0 420,0 400,0 9

10 EBITDA Factor Analysis 1H 2018 / 1H 2017, $ mln $ mln 370,0 33,2-27,4 360,0 350,0 340,0 2,4 1,5 2,5 342,7 330,0 330,5 320,0 310,0 6М 2017 Revenue* Costs SG&A Conversion to $ Other 6М

11 Volumes Breakdown by Cargo 1H 2018 / 1H ,5% 3,5% Crude oil 4,2% 3,0% 1,1% 1,8% 8,6% 9,5% 6M ,5 mln tn 45,9% Oil products Grain Iron ore Coal Ferrous metals 1,4% 8,4% 1,8% 5,9% 6M ,1 mln tn 53,2% Containers 25,1% Other 22,1% 11

12 Revenue Breakdown by Cargo 1H 2018 / 1H ,1% 1,4% 0,9% Crude oil 8,2% 18,7% 20,8% Oil products Grain 12,7% 23,0% 5,7% 2,6% 7,0% 6M 2018 $ 480 mln 14,9% Iron ore Coal Ferrous metals Containers Bunkering Other cargo 5,6% 2,2% 7,7% 6M 2017 $ 449 mln 15,3% 14,7% 9,8% Port services Fleet services Other 12,6% 8,1% 1,8% 1,7% 1,8% 1,7% 12

13 Costs Breakdown 1H 2018 / 1H ,1% 19,0% Depreciation 20,6% 20,3% 4,5% 12,9% Costs 6M 2018 COS $154,8 mln SG&A $29,7 mln 10,4% Fuel Payroll& tax Repairs Subcontractors Rent 5,5% Costs 6M 2017 COS $127,5 mln SG&A $33,1 mln 7,2% Other 11,8% 3,9% 21,5% SG&A 15,3% 3,8% 4,2% 23,2% 13

14 NCSP Group Key Financial Metrics 1H 2018 (in thousand US dollars) 6М М 2017 Change Change % Revenue ,0% Stevedoring services ,4% Additional port services ,9% Fleet services ,8% Other ,8% COS ,5% SG&A ,2% EBITDA* ,7% EBITDA margin (%)* 71,3% 73,6% Profit for the period ,0% Change Change % Debt (including financial lease obligations) ,5% Cash and cash equivalents ,9% Net debt* ,2% Net debt / LTM EBITDA* 1,32 1,64 * Management accounts 14

15 NCSP Group Operating Performance* (thousands tons) 6М М 2017 Change Change % Cargo turnover, total , , ,4-4,8% Liquid cargo, total , , ,4-10,1% Crude oil , , ,0-18,0% Oil products , , ,8 8,3% UAN 403,6 355,7 47,9 13,5% Seed oils 221,5 255,6-34,1-13,3% Bulk cargo, total 8 531, , ,3 16,8% Grain 6 080, , ,7 38,3% Mineral fertilizers 230,9 439,2-208,3-47,4% Sugar 122,2 151,4-29,2-19,3% Iron ore and ore concentrate 1 289, ,9-12,7-1,0% Coal 809, ,4-209,2-20,5% General cargo, total 7 567, ,6 491,5 6,9% Ferrous metals 6 713, ,0 522,7 8,4% Timber 151,8 168,9-17,1-10,1% Non-ferrous metals 538,4 566,4-28,0-4,9% Perishable cargo 163,2 149,3 13,9 9,3% Containers 3 191, ,6 67,9 2,2% Containers (thousand TEU) 324,0 310,5 13,5 4,3% Other 551,7 190,4 361,3 189,8% * Management accounts 15

16 Significant events after the reporting date PJSC NCSP received a decision of the tax authority on the results of consideration of the materials of the tax audit of PJSC NCSP activities during The amount of additional charges, including fines and penalties, according to the decision amounted to thousands USD, where thousands USD were added taxes, 76.5 thousands USD - penalties and 65.3 thousands USD - fines. The receivables generated as a result of additional charges were repaid by sending an application to the tax authority on 6 August 2018 for the offset of the amount of the tax to be reimbursed for the payment of additional amounts. The tax authority adopted the decision on the offset of this amount on the 10 August The results of the audit are reflected in the interim condensed consolidated financial statements for the six months ended 30 June On 21 March 2018 FAS initiated a case against PJSC NCSP on the grounds of violation of the Federal Law 135 FZ On Protection of Competition, upon the fact of imposing the tariffs for transshipment of goods for in USD. The commission meeting of FAS that was scheduled for 28 August 2018 did not take place due to lack of quorum, the new meeting will be held on 21 September PJSC NCSP will appeal against the Arbitration Court s of Krasnodar region decision (case A /2018) and prescription for recognition in the actions of the company of the violation of p.9 p.1 en. 10 FZ On protection of Competition expressed in the adoption (approval) of the Guidelines for the processing of ships in the terminals of PJSC NCSP and the establishment in it of conditions aimed at preventing, limiting and eliminating competition. The prescription is suspended until the court decision on this dispute comes into force. The risk of occurrence of obligations for the Group in this case is remote. On 29 August 2018, the Chairman of the Board of Directors of PJSC NCSP decided to hold the Board of Directors of PJSC NCSP on 03 September

17 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 way be construed as guarantees of future performance. Factors that could cause developments to differ materially from those expressed include overall market conditions. The company is subject to specific risks inherent in the stevedoring business and general economic and business conditions. Any statement or number in this presentation may be changed, depending on market conditions and other relevant developments. NCSP Group is the largest port operator in Russia and the third largest in Europe, in terms of cargo turnover in NCSP shares are traded on Russia's Moscow Exchange (ticker: NMTP) and on the London Stock Exchange in the form of GDRs (ticker: NCSP). NCSP Group consolidates the following companies: PJSC Novorossiysk Commercial Sea Port, LLC Primorsk Trade Port, LLC Novorossiysk Grain Terminal, JSC Novorossiysk Shiprepair yard, JSC FNCSP, JSC NLE, LLC IPP, LLC Baltic Stevedore Company, and JSC SFP. * Management accounts Contacts Public Relations: Investor Relations: PR@ncsp.com ABurykin@ncsp.com 17