Nov 7, 2018 · at most of the Company’s terminal locations and the contribution of new terminals...
21
Nov 7, 2018
Transcript of Nov 7, 2018 · at most of the Company’s terminal locations and the contribution of new terminals...
Nov 7, 2018
AGENDA
Liquidity and Capital
Resources
Other Matters
Questions and Answers
2
3
4
Recent Financial
Performance1
Liquidity and Capital
Resources
Other
Matters
Questions and
Answers
Recent Financial
Performance
Volume
(in TEU)
Nine months
9M 2018 vs 9M 2017 consolidated volume up 5%;
Organic volume grew 2%
Volume growth was due to improvement in trade activities
at most of the Company’s terminal locations and the
contribution of new terminals – VICT, SPICTL and MITL
6,836,611 7,152,3926,435,192
3
3,364,342 3,577,607 3,831,729
2,247,847 2,183,308
2,160,757
823,003 1,075,696
1,159,906
9M 2016 9M2017 9M2018
Asia Americas EMEA
5%
6%
13%
35%
52%
16%
32%
52%
16%
30%
54%
-1%
2,291,207 2,438,1362,170,559
(in TEU)
Third Quarter
1,129,277 1,218,390 1,336,636
750,687 692,046
713,784
290,595 380,771
387,716
3Q 2016 3Q 2017 3Q 2018
Asia Americas EMEA
13%
35%
52%
17%
30%
53%
16%
29%
55%
6%6%
Liquidity and Capital
Resources
Other
Matters
Questions and
Answers
Recent Financial
Performance
Revenues
Consolidated revenues 10% higher in 9M 2018 vs 9M 2017;
Organic revenue increased 5%
Consolidated 9M 2018 yield to TEU at US$141
Yield:TEU (in US$)
4
Nine months
918,269 1,005,723835,026
(in US$ ‘000)
435,111 435,072 491,222
287,957 304,350
299,754
111,957
178,848
214,748
9M 2016 9M2017 9M2018
Asia Americas EMEA
52% 47%49%
-0.01%
10%
10%
13%
34%
19%
33%
30%
144,955 147,444 174,486
96,476 98,148
95,164
42,780 68,961
74,309
3Q 2016 3Q 2017 3Q 2018
Asia Americas EMEA
22%
31%
47%
22%
28%
51%
2%
11% 9%
Third Quarter(in US$ ‘000)
314,553 343,959284,212
15%
34%
51%
21%
119 125 127
130 135
143
130 134
141 141
2009 2010 2011 2012 2013 2014 2015 2016 2017 9M
2018
Liquidity and Capital
Resources
Other
Matters
Questions and
Answers
Recent Financial
Performance
9M 2018
Gross Revenues from
Port Operations
Cash Operating Expenses
EBITDA
EBIT
Financing Charges and
Other Expenses
Net Income
Net Income Attributable to
Equity Holders
% Change9M 2017
Fully Diluted EPS
7,152,3926,836,611Volume (In TEU) 5%
1,005,723918,269
398,018343,431
462,081
318,074
89,166
174,243
153,287
434,857
305,584
149,316
86,913
168,135
0.0520.058
10%
16%
6%
4%
3%
4%
3%
-11%
Revenues increased 10% mainly due to volume growth; new contracts with
shipping lines and services; and contribution of the new terminals in PNG
and Australia; Organic revenue growth at 5%
Cash Opex 16% higher due to cost contribution of the new terminals, higher
volume, and higher fuel price and higher repair and maintenance at certain
terminals
EBITDA increased 6% mainly due to strong revenues and positive
contribution of SPICTL and MITL, tapered by higher fixed port lease expense
at VICT
Volume up 5% due to improving global trade particularly in the emerging
markets; continuing volume growth at most terminals and the continuing
ramp-up at the new terminals in Lae and Motukea in PNG and Melbourne,
Australia; Organic volume growth at 2%.
Net income attributable to equity holders up 3% due to strong 3Q2018
operating performance
(In US$ ‘000, except Volume & EPS)
EBITDA margin decreased from 47% to 46% mainly due to the additional
operating expenses from the new terminals
Consolidated P&L Highlights
5
Financing charges and other expenses up 3% primarily due to lower
capitalized borrowing cost on qualifying assets
EPS down 11% mainly due to additional distributions to holders of senior
guaranteed perpetual capital securities issued in January 2018
Liquidity and Capital
Resources
Other
Matters
Questions and
Answers
Recent Financial
Performance
3Q 2018
Gross Revenues from
Port Operations
Cash Operating Expenses
EBITDA
EBIT
Financing Charges and
Other Expenses
Net Income
Net Income Attributable to
Equity Holders
% Change3Q 2017
Fully Diluted EPS
2,438,1362,291,207Volume (In TEU) 6%
343,959314,553
132,062121,716
162,552
113,778
29,158
62,915
55,621
145,145
99,157
45,680
27,867
53,018
0.0190.017
9%
9%
12%
15%
5%
19%
22%
11%
Revenues increased 9% mainly due to volume growth; new contracts with
shipping lines and services; and contribution of the new terminals in PNG
and Australia; Organic revenue growth at 5%
Cash Opex 9% higher due to cost contribution of the new terminals, higher
volume, higher fuel price and higher repairs and maintenance at certain
terminals; higher professional fees and information technology related
expenses
EBITDA increased 12% mainly due to strong revenues and positive
contribution of SPICTL and MITL, tapered by higher fixed port lease expense
at VICT
Volume up 6% due to improving global trade particularly in the emerging
markets; continuing volume growth at most terminals; and the continuing
ramp-up at the new terminals in Lae and Motukea in PNG and Melbourne,
Australia; Organic volume growth at 4%.
Net income attributable to equity holders up 22% due to strong operating
performance
Financing charges and other expenses up 5% primarily due to lower
capitalized borrowing cost on qualifying assets
(In US$ ‘000, except Volume & EPS)
EBITDA margin increased from 46% to 47% mainly due to the positive
contribution of new terminals in Lae and Motukea in PNG, partially tapered
by the higher fixed port lease expense at VICT
Consolidated P&L Highlights
6
EPS up 11% due to strong operational results despite the additional
distributions to holders of senior guaranteed perpetual capital securities
issued in January 2018
Liquidity and Capital
Resources
Other
Matters
Questions and
Answers
Recent Financial
Performance
7
Recurring Net Income
141,816
149,316
150,535
153,287 3%
6%
Non-recurring item: Gain on the termination of the LICTSLE
sub-concession agreement
Recurring Net Income Attributable
to Equity Holders
(7,500) -
Net Income Attributable
to Equity Holders
9M 2018 % Change9M 2017
- (2,752)MTM gain on derivative of CMSA
Liquidity and Capital
Resources
Other
Matters
Questions and
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Recent Financial
Performance
8
Financing Charges & Other Expenses
(In US$ ‘000)
Average Outstanding Debt Balance 1,497,725
86,912
1,424,022
89,166
-5%
Financing Charges & Other Expenses
Average loan balance 5% lower due to the pre-
payment of CMSA’s project finance facility
Lower capitalized borrowing cost on
qualifying assets
3%
9M 2018 % Change9M 2017
Interest Expense on Loans/Bonds
Capitalized Borrowing Cost
Amortization of Debt Issue Cost
Other Expenses
77,971
(8,604)
5,574
11,971
77,015
(1,934)
4,827
9,258
-1%
-78%
-13%
-23%
Average Remaining Tenor 6.8 yrs 5.4 yrs
Average Cost of Debt (post CIT) 4.9% p.a. 5.1% p.a.
Lower interest expense due to lower loan balance
Liquidity and Capital
Resources
Other
Matters
Questions and
Answers
Recent Financial
Performance
Historical Volume, Revenue & EBITDA
9
249 261
269
282 296
256
240
259 266
284 284 293 297
307 315
326 325 336
344
104 109 114 117
128
110 102
111 122
136 133 135 147 143 145 143 148 152
163
0
500
1,000
1,500
2,000
2,500
0
100
200
300
400
1Q
2014
2Q 3Q 4Q 1Q
2015
2Q 3Q 4Q 1Q
2016
2Q 3Q 4Q 1Q
2017
2Q 3Q 4Q 1Q
2018
2Q 3Q
Vo
lum
e (
in T
EU
th
ou
sa
nd
s)
(in
US
D m
illio
ns)
Revenue EBITDA Volume
Liquidity and Capital
Resources
Other
Matters
Questions and
Answers
Recent Financial
Performance
ICTSI’s revenue and cash expenses are favorably matched, which provides a natural currency hedge that mitigates against
volatility attributable to FX movements.
US$ Revenues from Port Operations(9M 2018 Revenue Breakdown by Currency)
Expenses favorably Matching Revenues(9M 2018 Expenses Breakdown by Currency)
Gross Revenues
US$ 1.0B
Revenue Currency by Subsidiary
Subsidiaries USD EUR Local Currency
Asia
MICT 44% 56% PHP
PTMTS 100% IDR
YICT 100% RMB
OJA 69% 31% IDR
PICT 76% 24% PKR
SBITC/ISI 55% 45% PHP
SCIPSI 100% PHP
DIPSSCOR 100% PHP
HIPS 100% PHP
MICTSI 100% PHP
BIPI 100% PHP
LGICT 30% 70% PHP
VICT 100% AUD
SPICTL/MITL 100% PGK
EM
EA
BCT 68% 3% 29% PLN
MICTSL 100%
BICT 100%
AGCT 80% 20% HRK
BGT 84% 16% IQD
IDRC 100%
Am
eri
ca
s
TSSA 100% BRL
CGSA 100%
OPC 100%
CMSA 50% 50% MXN
Cash Expense Currency by Subsidiary
Subsidiaries USD EUR Local Currency
Asia
MICT 33% 67% PHP
PTMTS 100% IDR
YICT 100% RMB
OJA 9% 91% IDR
PICT 18% 82% PKR
SBITC/ISI 40% 60% PHP
SCIPSI 100% PHP
DIPSSCOR 100% PHP
HIPS 100% PHP
MICTSI 100% PHP
BIPI 1% 99% PHP
LGICT 100% PHP
VICT 16% 84% AUD
SPICTL 100% PGK
EM
EA
BCT 31% 1% 68% PLN
MICTSL 2% 43% 55% MGA
BICT 100% GEL
AGCT 9% 91% HRK
BGT 18% 82% IQD
IDRC 96% 4% CDF
Am
eri
ca
s
TSSA 100% BRL
CGSA 100%
OPC 52% 48% HNL
CMSA 7% 93% MXN
TECPLATA 5% 95% ARS
Cash Expenses
US$ 742M
Note: Total Cash Expense includes Cash Opex, Port Fees,
Realized FX losses, Interest Cost, Perp Distribution,
IFRIC Interest, Other “cash” expenses and Income tax paid
10
Proactive FX Risk Management
USD
52%
PHP
21%
EUR
6%
BRL
5%
MXN
5%
RMB
3%
Others
8%
USD
41%
PHP
18%
AUD
9%
MXN
6%
BRL
5%
PKR
4%
IQD
3%
Others
14%
Liquidity and Capital
Resources
Other
Matters
Questions and
Answers
Recent Financial
Performance
90
100
110
120
130
140
150
160
Jan
-15
Fe
b-1
5
Ma
r-1
5
Ap
r-1
5
Ma
y-1
5
Jun
-15
Jul-1
5
Au
g-1
5
Se
p-1
5
Oct-
15
No
v-1
5
De
c-1
5
Jan
-16
Fe
b-1
6
Ma
r-1
6
Ap
r-1
6
Ma
y-1
6
Jun
-16
Jul-1
6
Au
g-1
6
Se
p-1
6
Oct-
16
No
v-1
6
De
c-1
6
Jan
-17
Fe
b-1
7
Ma
r-1
7
Ap
r-1
7
Ma
y-1
7
Jun
-17
Jul-1
7
Au
g-1
7
Se
p-1
7
Oct-
17
No
v-1
7
De
c-1
7
Jan
-18
Fe
b-1
8
Ma
r-1
8
Ap
r-1
8
Ma
y-1
8
Jun
-18
Jul-1
8
Au
g-1
8
Se
p-1
8
PHP PKR RMB EUR BRL MXN
FX Movement
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FX Movement since January 2015 and bottom line effect on ICTSI’s margins.
January-September
Currency Ave 2017 Ave 2018 Growth (%)
EUR 0.90 0.84 6.76
RMB 6.80 6.52 4.12
MXN 18.90 19.03 -0.68
PHP 50.24 52.50 -4.50
PKR 104.99 117.42 -11.84
BRL 3.17 3.61 -13.56
Liquidity and Capital
Resources
Other
Matters
Questions and
Answers
Recent Financial
Performance
Yield/TEU Comparison
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Volume (TEU ‘000) 6,837 7,152 5%
Revenues (US$ million) 918 1,006 10%
Yield/TEU (US$) 134 141 5%
EBITDA (US$ millions) 435 462 6%
EBITDA Margin 47% 46%
%
change
Higher revenues from storage and ancillary services at
certain terminals, increase in non-containerized revenues
and contribution of new terminals, SPICTL, MITL & VICT +8
FX : Negative impact of PHP and BRL tapered
by positive impact of EUR and RMB -1
+7
9M
2017
9M
2018
Liquidity and Capital
Resources
Other
Matters
Questions and
Answers
Recent Financial
Performance
Yield/TEU and EBITDA Evolution
135.95
140.61
4.601.88 1.94
120
125
130
135
140
145
Yield/TEU
Dec 2017
Organic Forex New Terminals Yield/TEU
Sept 2018
Yield/TEU Evolution
46.45%
45.95%
0.61%
0.69%
1.80%
45%
46%
47%
48%
EBITDA Margin %
Dec 2017
Organic Forex New Terminals EBITDA Margin %
Sept 2018
Evolution of EBITDA Margin
AGENDA
Liquidity and Capital
Resources
Other Matters
Questions and Answers
2
3
4
Recent Financial
Performance1
Liquidity and
Capital Resources
Other
Matters
Questions and
Answers
Recent Financial
Performance
2016 2017 9M 2018
Intangible and Property and Equipment 3,102 3,203 3,307
Cash and Cash Equivalents 325 279 412
Other Current and Non-current Assets 756 888 925
Total Assets
Total Short–term and Long–term Debt 1,381 1,494 1,302
Concession Rights Payable 491 480 546
Other Current and Non-current Liabilities 545 524 555
Total Liabilities
Total Equity
4,183 4,6434,371
2,417 2,4032,498
1,766 2,2401,873
(In US$ Million)
Note: (1) Current Ratio is calculated as Current Assets/ Current Liabilities (2) DSCR is calculated as EBITDA/ (Interest + Scheduled Principal Payments)
Financial RatiosGearing: Debt/SHE 0.78 0.80 0.58
Debt Cover Ratio: Debt/EBITDA (per covenant) 2.31 2.21 2.19
Current Ratio: Current Assets/Current Liabilities 1.18 1.25 1.67
DSCR: EBITDA/(Interest + Scheduled Principal Payments) 1.83 3.11 3.28
Balance Sheet Summary
15
Liquidity and
Capital Resources
Other
Matters
Questions and
Answers
Recent Financial
Performance
Perp NC21 (2)
Perp NC19 (1)
Perp NC24 (3)Perp NC22 (4)
Debt Breakdown in Parent & Subsidiary(As of Sept 30, 2018)
Note: (1) Callable in 2019 with rate reset in 2019 and 250–bp step–up in 2024; (2) Callable in 2021 with rate reset and 250–bp step–up in 2021; (3) Callable in 2024 with rate reset and 250–bp step–up in 2024;
(4) Callable in 2022; (5) Perpetual Securities are not included in the Debt breakdown.
Principal Redemption Profile as of September 30, 2018(US$m)
Debt Breakdown by Currency(As of Sept 30, 2018)
Debt Breakdown by Rate(As of Sept 30, 2018)
Principal Redemption Profile
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Fixed
96%
Floating
4%
USD
79%
AUD
20%
Others
1%
Parent
72%
Subsidiary
28%
0
200
400
600
2018 2019 2020 2021 2022 2023 2024 2025 2026
ST LT / Bonds Perp
Liquidity and
Capital Resources
Other
Matters
Questions and
Answers
Recent Financial
Performance
2017 CAPEX mainly for:
GREENFIELD: Australia, Iraq, DR Congo, Honduras & Cavite
EXPANSIONARY: Manila, Ecuador, China & Mexico
2018 CAPEX mainly for:
GREENFIELD: Australia
EXPANSIONARY: Manila, Honduras, Mexico & Iraq
NEW: Papua New Guinea & Cavite
2018B2017A
US$175M
Investment (SPIA)
US$380MUS$127M
72%
US$36M21%
US$12M7%
Greenfield Expansionary Maintenance New Projects
US$287M 76%
US$45M 12%
US$8M
2% US$40M10%
US$25M
2017B
US$240M US$135M 56%
US$75M 31%
US$30M 13%
US$25M
US$3M
Capital Expenditures
17
AGENDA
Liquidity and Capital
Resources
Other Matters
Questions and Answers
2
3
4
Recent Financial
Performance1
Liquidity and Capital
Resources
Other
MattersQuestions and
Answers
Recent Financial
Performance
Recent Events
2018
Sept
ICTSI acquired additional 15.17% of Manila North Harbour Port, Inc (“MNHPI”) from Harbour Centre Port
Terminal, Inc., subject to certain conditions precedent; Upon completion of this transaction, ICTSI shareholdings
in MNHPI will increase from 34.83% to 50%
JulyICTSI declared Preferred Bidder to operate, manage and develop the South Port Container Terminal (“SPCT”)
at the port of Port Sudan, Republic of the Sudan
JuneSouth Pacific International Container Terminal Limited (“SPICTL”) and Motukea International Terminal Limited
(“MITL”) commenced full commercial operations
May ICTSI launched maiden Sustainability Report
Feb South Pacific International Container Terminal Limited (“SPICTL”) commenced partial commercial operations
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.
OctICTSI 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”) and South Pacific International Container Terminal
Limited (“SPICTL”) signed 25-year Terminal Operating Agreements with PNG Ports Corporation Limited
(“PNGPCL”) for the Operation, Management and Development of the international ports in Motukea and
Lae, in Papua New Guinea
ICTSI acquired 34.83% of Manila North Harbour Port, Inc (“MNHPI”) from Petron Corporation
19
AGENDA
Liquidity and Capital
Resources
Other Matters
Questions and Answers
2
3
4
Recent Financial
Performance1
