Dvmp · RUS:FESH
Dvmp — FESCO Transportation Group — Q1 2015 Earnings Presentation
24 slides from Dvmp's earnings presentation, May 29, 2015
Slide 1: FESCO Transportation Group 1Q2015 Operational and Financial Results
FESCO Transportation Group 1Q2015 Operational and Financial Results Investor conference call – May 29, 2015
Slide 2: Today's Speakers
Today’s Speakers Konstantin Sokolov Victor Belyakov Alexander Isurin President and CEO Vice President and CFO Vice President, Sales and Commerce 2
Slide 3: Key 1Q2015 highlights
Key 1Q2015 highlights Market Positions In 1Q2015, FESCO was #1 in the Russian Far East Region by import container handling at sea port terminals with remain the market share of 38% and the leader by volume on export-import sea container service lines where the strong Group operates with the market s
Slide 4: Addressing Market Headwinds
Addressing Market Headwinds In 1Q2015 FESCO began the implementation of initiatives aimed to improve the efficiency and cost optimization Focus on to address the market headwinds efficiency improvement • Change in management team and in organizational structure aimed to strengthen the commercial and
Slide 5: 1Q2015 Market overview
1Q2015 Market overview
Slide 6: Russian Port Market Update for 1Q2015
Russian Port Market Update for 1Q2015 Comments Container Throughput in Russian Ports, 1Q 2015 • Total container throughput at Russian ports 1 296 (23)% demonstrated a decline of 23% YoY in 1Q2015 on the 194 (12)% 1 000 back of macroeconomic volatility, RUB devaluation and 359 171 following decrease
Slide 7: Russian Rail Market Update for 1Q2015
Russian Rail Market Update for 1Q2015 Freight Transportation Freight Transportation Comments Volume (m tons) Turnover (bn tons-km) Rail cargo load 110,00 205,00 108,00 200,00 • Rail cargo load on the Russian Railways network 106,00 195,00 decreased by 0.4% YoY in 1Q2015 on the back of 104,00 190,00
Slide 8: Global container freight market update for 1Q2015
Global container freight market update for 1Q2015 Comments Deep Sea Rates vs. Intermodal Transportation Rates ($ / 40’ TEU) $8 000 • Shift of the Russian trade focus towards Asian countries should $7 000 support the freight forwarding business in the region $6 000 • Global freight rates stay at hist
Slide 9: Divisional Overview
Divisional Overview
Slide 10: Port and Bunkering Divisions: Key Operational and Financial Metrics
Port and Bunkering Divisions: Key Operational and Financial Metrics Comments Operating and Financial Performance of Port Division Port Division Y-o-Y 1Q2014 1Q2015 change • Container throughput in 1Q2015 decreased in line with negative market trends Total Container Volumes (TEU) 109,808 90,117 (17.9
Slide 11: Rail Division: Key Operational and Financial Metrics
Rail Division: Key Operational and Financial Metrics Comments Operating and Financial Performance • Rail container transportation by Transgarant and Russkaya Y-o-Y Troyka significantly outperformed the rail container market 1Q2014 1Q2015 change which decreased by 7.7% in 1Q2015. Rail container trans
Slide 12: Liner and Logistics Division: Key Operational and Financial Metrics
Liner and Logistics Division: Key Operational and Financial Metrics Comments Operating and Financial Performance • Intermodal freight transportation was up by 2.7% YoY to 57.5 Y-o-Y thousand TEU 1Q2014 1Q2015 change • Drop of import to Russia resulted in 10.2% YoY decrease of Intermodal transportati
Slide 13: Shipping Division: Key Operational and Financial Metrics
Shipping Division: Key Operational and Financial Metrics Comments Operating and Financial Performance • Positive result from icebreaking fleet Y-o-Y 1Q2014 1Q2015 change • The new revenue stream from tanker operations for bunkering business No. of Vessels (EoP) 27 26 (3.7)% • Shipping Division’s rev
Slide 14: 1Q2015 Financial Results
1Q2015 Financial Results
Slide 15: Consolidated Quarterly Financial Results for the Group
Consolidated Quarterly Financial Results for the Group • Group’s financial results were affected by declining volumes and Quarterly Revenue and EBITDA Development ($m) RUB depreciation, but cost-control measures and conversion of export-import tariffs in port from RUB to USD boosted the 350 331 70 p
Slide 16: Divisional Quarterly Results
Divisional Quarterly Results Revenue per Division in $m ($m) 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 Port Division 44.4 45.5 50.6 44.6 31.9 Rail Division 44.6 40.4 40.7 39.2 26.7 Liner and Logistics Division 137.3 167.5 172.2 146.0 97.3 Shipping Division 19.8 13.5 24.6 23.5 28.1 Bunkering 29.4 41.5 84.1
Slide 17: Managing FX Risk
Managing FX Risk Revenue, 1Q 2015 Operating Costs, 1Q2015 Port 19% 81% Port 100% Bunkering 16% 84% Bunkering 16% 84% Rail 98% 2% Rail 88% 12% LLD 41% 59% LLD 39% 61% Shipping 100% Shipping 31% 69% Group 34% 66% Group 41% 59% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% RUB USD • Share of USD-nomi
Slide 18: Cost Optimization Program
Cost Optimization Program Port Division Liner and Logistics Rail Division Shipping Division Corporate Division • Focus on operational • Optimization of fleet • Operational • Further cost benefits • Optimization of efficiency usage and reduction efficiency from FX and newer expenses for improvement w
Slide 19: CAPEX
CAPEX Comments Capital Expenditures About five times decrease in CAPEX spending in 1Q2015 due to ($m) 1Q2014 1Q2015 cutback of the expansion CAPEX: Shipping Division (4.6) (0.4) Key CAPEX components in 1Q2015: • Repairs and modernisation in Shipping, Rail and Port Liner & Logistic Division (0.0) (0.
Slide 20: Leverage Overview
Leverage Overview Summary Overview Consolidated Group Financial Position • $875m of the acquisition financing and part of pre-existing ($m) 31-Mar-2015 loans refinanced by Senior Secured Notes due 2018 and 2020 Senior Secured Notes 843.6 • RUB 5bn bond due 2016 issued to refinance the remaining Rubl
Slide 21: Buyback Transaction Overview
Buyback Transaction Overview
Slide 22: Summary Overview of Buyback
Summary Overview of Buyback • On March 31, 2015 FESCO in order to optimize its liabilities profile commenced a cash tender offer targeting its $550m 2018 Notes and $325m 2020 Notes • Upon on completion of the tender offer on 11 May 2015 the aggregate principal amount of the 2018 Notes and 2020 Notes
Slide 23: Sources & Uses / Pro Forma Capital Structure
Sources & Uses / Pro Forma Capital Structure $m 31-March-15 x EBITDA Pro Forma x EBITDA (Cash) (225) (1.3)x (216) (1.2)x 2018 Notes 544 415 2020 Notes 310 219 RUB bonds БО-02¹ 86 34.3 Bonds transaction expenses (11) (9) RUB bonds БО-01 - 85.5 Finance lease obligations 33.7 33.7 Working capital and t
Slide 24: IR Team Contacts
IR TEAM CONTACTS: Galina Shilina IR Director [email protected] Ekaterina Semenova IR Manager [email protected]
FESCO Transportation Group — Q1 2015 Earnings Presentation on 6ix