Investor Briefing
FY 2013 Results
March 7, 2014
AGENDA
1
Recent Financial Performance
2
Liquidity and Capital Resources
3
Other Matters
4
Questions and Answers
5
Appendices
1 Recent Financial Performance
2013 Volume Up 12%
Volume by segment
5,233,795
Volume by segment
(in TEU)
5,628,021
6,309,840
(in %)
13%
27%
60%
2013
57%
2012
56%
2011
+12%
15%
+8%
794,182
28%
823,471
706,357
1,725,324
13%
1,576,118
30%
1,571,005
ASIA
AMERICAS
EMEA
3,790,334
3,228,432
2,956,433
2011
2012
ASIA
AMERICAS
2013
2013 vs 2012 consolidated volume up 12%;
Organic volume up 2%
Asia terminals generated 60% of total volume in 2013;
Asia remains the largest volume contributor amongst the regions
2013 volume from major terminals accounted for 78%
of consolidated volume
EMEA
4
2013 Revenues 17% Higher
Revenue by segment
664,836
Yield : TEU
(in US$ ‘000 )
729,308
(in US$)
135
852,394
130
125
124
127
119
+17%
90,260
+10%
108
86,272
2007
78,080
2008
2009
2010
2011
2012
2013
304,279
281,027
284,139
457,856
362,009
302,617
2011
2012
ASIA
AMERICAS
Consolidated revenues 17% higher in 2013 vs 2012;
Organic revenue 7% higher
Consolidated 2013 yield toTEU up at US$135 vs US$130
in 2012
Major terminals accounted for 84% of consolidated revenues
2013
EMEA
5
Consolidated P&L Highlights
2012
Volume (in TEUs)
(in US$’000, except Volume & EPS)
2013
% change
5,628,021
6,309,840
12%
Gross Revenues from
Port Operations
729,308
852,394
17%
Cash Operating Expenses
318,853
359,536
13%
EBITDA
307,563
377,323
23%
EBIT
226,818
277,839
22%
Financing charges and
other expenses
35,012
48,175
38%
Net Income
143,750
180,672
26%
Net Income Attributable to
Equity Holders
143,158
172,380
20%
0.058
0.071
22%
Fully Diluted EPS
Volume up 12% mainly due to the continuous volume growth in
most of the Company’s terminals, full year contribution of PT OJA
and PICT, and the start of commercial operations in CMSA
and OPC; Organic volume up 2%
Revenues increased 17% mainly due to volume growth, higher
storage revenues & ancillary services, tariff rate increases in
certain key terminals, full year contribution of PICT & PT OJA
and the new terminals, CMSA & OPC. Organic revenue grew 7%
Cash opex13% higher due to growth in volume-related expenses,
higher labor & utilities expenses, increased business development
activities, full-year impact of PICT & PT OJA, and the inclusion of
new terminals, CMSA and OPC; Organic cash opex up 3%
EBITDA surged 23% mainly due to the volume growth, favorable
volume mix, storage & ancillary services, tariff increases in
certain key terminals, and the full year contribution of PICT;
Organic EBITDA grew 12%.
EBITDA margin increased to 44% from 42%
Financing charges and other expenses increased 38% mainly
due to higher outstanding interest-bearing debt
Net Income Attributable to Equity Holders of the parent up 20%
due to the strong revenue growth, margin improvement and the
full year contribution of PICT
6
Financing Charges & Other Expenses
2012
2013
35,012
48,175
Interest Expense on Loans/Bonds
59,538
76,033
28%
Increase primarily due to higher average
outstanding debt balance
Capitalized borrowing cost
(30,303)
(35,610)
18%
Increase due to container terminal construction in
Argentina and Mexico
Amortization of Debt Issue Cost
1,165
2,231
91%
Increase due to additional loans
Other Expenses1
4,612
5,521
20%
Financing charges & other expenses
Average Outstanding Debt Balance
Average Remaining Tenor
Average Cost of Debt (post CIT)
1 Bank
(in US$’000)
% change
38%
50%
Higher due to the issuance of US$400M 10Y bonds,
Liability Mgmt. Exercise, and the consolidation of the
loans of PICT, CGSA, BCT and AGCT
666,833
1,001,067
5.0 yrs
8.3 yrs
Average remaining tenor increased to 8.3 years due
to the US$ bond issuance, Liability Mgmt. Exercise
and maturity of PhP term loans in 2013
5.3% p.a.
Average cost of debt post corporate income tax,
decreased to 5.3% due to the bond issuance in
Jan 2013 and Liability Mgmt. Exercise in Sept 2013
6.3% p.a.
charges and other expenses
7
2 Liquidity and Capital Resources
Balance Sheet Summary (in US$ millions)
Intangible and Property and equipment - net
Cash and cash equivalents
Other current and noncurrent assets
Total Assets
Total Short-term and long-term debt
Concession rights payable
Other current and noncurrent liabilities
Total Liabilities
Total Equity
EBITDA Margin
Net Profit Margin
Return on Equity
Gearing : Debt/SHE
Debt Cover Ratio : Debt/EBITDA
Current Ratio : Current Asset/Current Liability
DSCR: EBITDA/(Interest + Scheduled Principal Payments)
2010
2011
2012
2013
1,021.2
345.4
232.3
1,598.8
1,232.5
457.6
254.7
1,944.7
1,815.4
186.8
330.8
2,333.0
2,410.3
242.2
435.2
3,087.6
637.7
181
149.8
968.6
630.2
651.2
163.1
188.9
1,003.2
941.6
781.3
166.6
274.9
1,222.8
1,110.2
951.8
538.8
243.8
1,734.4
1,353.2
47%
19%
18%
1.01
2.57
2.48
5.66
42%
20%
16%
0.69
2.31
2.61
3.39
42%
20%
14%
0.70
2.54
0.77
3.59
44%
20%
14%
0.70
2.52
1.84
2.18
9
Principal Redemption Profile
as of June 30, 2013
as of December 31, 2013
550
550
500
500
450
450
400
400
350
350
300
300
250
250
200
200
150
150
100
100
50
50
0
0
Cash level
ST Loans
LT Loans
LME
Cash level
ST Loans
LT Loans
Underwent a Liability Management Exercise (LME) in September 2013
Exchanged US$178.9M of existing 10Y Notes due 2020 for new US$207.5M 12Y Notes due 2025
o
Lengthened duration of outstanding debt
o
Lowered funding cost; Locked-in low coupon
Secured consent to align the covenants of the remaining 2020 Notes to that of the MTN Program
Issued US$400M 10-year Senior Unsecured Notes due 2023 in January 2013;
Refinanced US$140M short- to medium- term loans
Cash level at US$242M to fund capital expenditures and investments
No substantial principal repayment until 2020
10
3
Other Matters
Recent Developments
Formally inaugurated Contecon Manzanillo S.A. (“CMSA”) in January 2014
Sold 25% stake in Lekki International Container Terminal Services LFTZ Enterprise (“LICTSLE”)
to CMA Terminals in January 2014
Formed a joint venture company with La Societe De Gestion Immobiliere Lengo ("SIMOBILE") to
develop a river port in Matadi, Democratic Republic of Congo in January 2014
Divested non-core asset Cebu International Container Terminal, Inc. (“CICTI”) in January 2014
Took-over the Specialized Container and General Cargo Terminal of Puerto Cortes, Honduras in
December 2013
Finalized agreement with PSA International PTE Limited (“PSA”) to jointly develop SPIA in
Buenaventura, Colombia in October 2013
Underwent a Liability Management Exercise (“LME”) in September 2013
Started renewal of Manila International Container Terminal’s (“MICT”) 25-year concession
on May 19, 2013
12
4
Questions and Answers
5
Appendices
ICTSI DR CONGO, S.A. – Matadi, Congo
ICTSI DR Congo, S.A.
ICTSI through its subsidiary ICTSI Coöperatief U.A. forged a
business partnership with La Societe De Gestion Immobiliere Lengo
("SIMOBILE") for the establishment and formation of a joint venture
company, International Container Terminal Services Inc. - DR Congo
(ICTSI DR Congo) in January 2014, for the purpose of constructing,
investing in and operating a river port, including a container terminal,
in Mbengu, Matadi, Democratic Republic of Congo (DRC)
ICTSI Congo DR is a joint venture company that is 60% owned by
ICTSI and 40% owned by La Societe De Gestion Immobiliere Lengo
("SIMOBILE")
ICTSI Congo DR will be located on the riverbank of the Congo River
in Matadi, which is already today the main entry point for containers
into DRC serving the greater region and the Kinshasa market
Initial phase of the facility to be constructed will consist of two berths
with a total length of 350 meters, which will be servicing shipping
lines, importers and exporters with its modern infrastructure, stateof-the-art equipment and highly skilled staff, matching international
standards; The facility will, in Phase 1, be able to handle 120,000
TEUs and 350,000 metric tons. The capacity and berth length can,
subject to demand, be doubled in Phase 2.
It is estimated that the total capital expenditure of the project for
Phase 1 will be approximately US$100 million.
The facility is expected to commence operation in 2015.
15
OPCSA - Puerto Cortes, Honduras
Operadora Portuaria Centroamericana, SA de CV
ICTSI’s subsidiary, Operadora Portuaria Centroamericana, S.A. de C.V.
(“OPCSA”) signed Concession Contract for the Design, Financing,
Construction, Maintenance, Operation and Exploitation of the Specialized
Container and General Cargo Terminal of Puerto Cortes, Honduras in
March 2013; Officially took-over the facility in December 2013
Puerto Cortes is the main seaport in the Republic of Honduras; Throughput
at the port in 2012 was at 575,000 TEUs
The Concession is for a period of the 29 years and involves rehabilitation
and expansion of existing facilities.; Concession period until 2042
Current annual capacity is estimated at 600,000 TEUs.
Honduran government will execute and finance the construction of a new
550 meters of berth, dredging, reclamation and consolidation of the new
area; Funding is expected to be sourced from the Inter-American
Development Bank (“IDB”).
Phases 1 & 2 are estimated to cost a total of US$326.5M, spread over the
first six years from take-over (2013-2018); US$105M will be for the account
of the Honduran gov’t and the US$221.5M balance for the account of ICTSI.
Phase 1 is scheduled to be completed in 2015 with an estimated annual
capacity of 680,000 TEUs; Involves the use of the current infrastructure and
development of the new container terminal’s yard, acquisition of 4 MHCs
and 4 RTGs in 2014, and 3 RTGs in 2015
Phase 2 is scheduled to be completed in 2018 with an estimated annual
capacity of 900,000 TEUs; Involves the construction of a new 550 meter
berth and acquisition of 4 QCs and 5 RTGS in 2016
Phase 3 development will be volume-triggered with an estimated annual
capacity of 1.8 million TEUs when completed; Estimated cost for Phase 3 is
US$ 228M. Upon completion of the three development phases, the terminal
will have a total berth length of 1,100 meters for container cargo and 400
meters for general cargo, 14 meters of draft that can reach 15 meters, 62.2
hectares of total surface area, and 12 quay cranes
2013 volume of 37,467 TEUs; revenues of US$2.0m
16
Impact of MICT Concession Renewal (in US$ million)
Effect on Balance Sheet
Intangible Assets (PV of fixed Port Fees)
Concession Rights Payables
348.5
348.5
Changes in Cash flows
Net Change in Port Fees1
2013
2014
2015
2016
13.1
(10.4)
0
0
2013
2014
2015
2016
18.0
8.4
(0.39)
(0.41)
Income Statement Impact
Net Amortization of Intangibles2
& Interest on Concession Rights
Net Income impact substantially mitigated by (a) higher volume throughput
and (b) tax holiday associated with Berth 6
1 Port
fees includes a one-time upfront fee and changes in fixed fees (excludes variable fees)
includes upfront port fees, present value of the fixed fees and port infrastructure
2 Intangibles
17
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