Dvmp · RUS:FESH
Dvmp — FESCO Transportation Group — Q1 2014 Earnings Presentation
17 slides from Dvmp's earnings presentation, Jun 3, 2014
Slide 1: FESCO Transportation Group operational and financial results for 1Q2014
FESCO Transportation Group operational and financial results for 1Q2014 Investor conference call – June 03, 2014
Slide 2: Group Performance
Group Performance • In the short term, the slowdown of economy growth and overall Quarterly Revenue and EBITDA Development (USD mln) volatile macroeconomic environment caused weakness in the sectors where the Group operates 350 60 • The Group’s revenue declined by 11.9% YoY mostly due to 51 53 conti
Slide 3: Divisional Performance
Divisional Performance Q1 2013 – Q1 2014 Performance EBITDA per division ($m) Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Port Division 17.9 26.1 29.6 15.8 19.3 Rail Division 28.4 24.6 20.4 16.9 13.3 Line and Logistics Division 8.8 8.7 8.8 9.5 0.0 Shipping Division 0.2 (4.1) (1.5) (0.2) 4.4 Bunkering -
Slide 4: Russian Port Market Update
Russian Port Market Update Comments Container Throughput in Russian Ports, 1Q 2014 Total Containers ‘000 TEU Import Containers ‘000 TEU Overall Market 1,260 2.8% 1,296 574 (1.0)% 568 • Total throughput of Russian ports increased by 5.7% YoY in 207 (6.2)% 194 (7.4)% 105 97 1Q2014, with Far East ports
Slide 5: Port and Bunkering Divisions: Key Operational and Financial Metrics
Port and Bunkering Divisions: Key Operational and Financial Metrics • Container throughput up 2.9% YoY with import container Port Division, ($m) 1Q 2013 1Q 2014 Dynamics throughput growth of 7.8% (significantly above the Total Container Volumes ('000 TEU) 106.7 109.8 2.9% market) Import Container Vo
Slide 6: Russian Rail Market Update
Russian Rail Market Update Freight Transportation Freight Transportation Comments Volume (m tons) Turnover (bn tons-km) 115 • Challenging Rail Market Environment: In 1Q2014, 195 freight volumes were flat YoY 110 185 • Continued Growth in Container Rail Volumes: In 105 175 1Q2014, containerised cargo
Slide 7: Rail Division: Key Operational and Financial Metrics
Rail Division: Key Operational and Financial Metrics • Rail container transportation slightly outperformed the ($m) 1Q 2013 1Q 2014 Dynamics market with container volumes up by 9.5% YoY to Container Transportation (TEU)¹ 64,129 70,219 9.5% 70,219 TEU. The growth was driven by increase in Rail Cargo
Slide 8: Freight Rates Dynamics (USD per TEU)
Freight Rates Dynamics (USD per TEU) Shanghai Containerized Freight Index Deep Sea Rates vs. Intermodal Transportation Rates $8 000 $7 000 $6 995 $6 025 $6 000 $5 000 $5 080 $4 610 $4 000 $3 000 $2 000 $1 000 $0 FESCO Service (Shanghai - Vladivostok - Moscow) Deep See Services (Shanghai - St. Peters
Slide 9: Liner and Logistics Division: Key Operational and Financial Metrics
Liner and Logistics Division: Key Operational and Financial Metrics ($m) 1Q 2013 1Q 2014 Dynamics • Strong growth of export-import sea lines container Intermodal Volumes (TEU) 57,195 55,995 (2.1)% transportation (up 11% YoY) Export-Import Volumes (TEU) 85,318 94,475 10.7% • Zero EBITDA in 1Q2014 rel
Slide 10: Shipping Division: Key Operational and Financial Metrics
Shipping Division: Key Operational and Financial Metrics • 1Q2014 Revenue and EBITDA growth was driven by a ($m) 1Q 2013 1Q 2014 Dynamics combination of the following growth factors: No. of Vessels (EoP) 27 27 0% – acquisition of new fuel-efficient vessels earlier in Fleet Deadweight, '000 tons 308
Slide 11: Capital Investments
Capital Investments • Despite the market volatility the Group continued ($m) 1Q 2013 1Q 2014 to make selective capital investments, mostly in Shipping Division (5) (4) Ports Division, in line with its long term strategy (5) (4) Acquisition of fleet • In March 2014, FESCO acquired container vessel -
Slide 12: Leverage Overview
Leverage Overview Comments Net Debt¹ / LTM Adjusted EBITDA² • $875m of the acquisition financing and part of pre-existing loans 5,0 refinanced by issuing Senior Secured Notes due 2018 and 2020 4,7 3,5 • RUB 5bn bond due 2016 issues to refinance the remaining OpCo facility and pre-existing loans 2,2
Slide 13: Debt Structure
Debt Structure Debt structure Debt breakdown by currency 14% 18% 0% 5% 11% 69% 82% USD EUR RUR Senior Secured Notes due 2018 and 2020 Rouble bonds due 2016 Finance lease Bilateral loan facilities As of 31-March 2014, total debt(1) amounted to $1,236m Source: Company info Note (1): Excluding non-reco
Slide 14: Free Cash Flow
Free Cash Flow Key Cash Flow Indicators ($m) 2011 2012 2013 Q1 2014 LTM Operating cashflow 161 183 134 146 Proceeds of disposal 9 58 22 22 CAPEX (138) (66) (48) (55) Free cash flow before acquisitions 32 175 108 113 Interests 43 52 79 84 Pro-forma debt 697 1 179 1 118 1 236 Cash 232 232 191 348 Pro-
Slide 15: Appendix
Appendix FESECP Transportation Group
Slide 16: Revenue and EBITDA Evolution
Revenue and EBITDA Evolution Revenue 1Q 2013 vs. 1Q 2014 (2) (30) (11) (21) 2 29 275 242 1Q 2013 Port Rail LLD Shipping FB Other 1Q 2014 EBITDA 1Q 2013 vs. 1Q2014 1 (15) 4 0 (9) 4 48 33 1Q 2013 Port Rail LLD Shipping FB Corporate 1Q 2014 Source: Company info 16
Slide 17: IR Team Contacts
IR TEAM CONTACTS: Galina Shilina IR Director [email protected] Ekaterina Semenova IR Manager [email protected] 17 17
FESCO Transportation Group — Q1 2014 Earnings Presentation on 6ix