Dvmp · RUS:FESH

Dvmp — FESCO Transportation Group — Q1 2013 Earnings Presentation

14 slides from Dvmp's earnings presentation, Jun 3, 2013

  1. Slide 1: FESCO Transportation Group preliminary non-audited financial results for 1Q2013

    FESCO Transportation Group preliminary non-audited financial results for 1Q2013 Investor conference call – June 3, 2013

  2. Slide 2: Disclaimer

    Disclaimer These materials have been prepared by OJSC Far-Eastern Shipping Company (the “Company”, and together with its consolidated subsidiaries, the “Group”). The following applies to these materials and any oral presentation or question and answer session concerning these materials (collectively

  3. Slide 3: Key 1Q2013 Highlights

    Key 1Q2013 Highlights Development of container operations and decrease in non-container business  Robust growth of intermodal and bilateral sea container transportation  Port efficiency improvements: reduction of cargo storage time, downsizing of general cargo in cargo mix in benefit of container

  4. Slide 4: National Champion in Integrated Logistics

    National Champion in Integrated Logistics Port and Terminals Rail Liner & Logistics  Commercial Port of Vladivostok and  One of top 10 Russian private railcar  Integrated solutions for containers Vladivostok Container Terminal with 3.85 million tons in general cargo and oil operators as of 31-Dec

  5. Slide 5: Strategy Update

    Strategy Update  Most promising segment of the Grow Container Russian transportation market Business  Well-positioned to benefit from secular market growth  Differentiated customer proposition Strengthen Niche  Focus on niche markets with strong Positioning Outside competitive positioning Contai

  6. Slide 6: Operational Performance: Port Division

    Operational Performance: Port Division Y-o-Y 1Q2013 1Q2012 Change  Growth of import container cargo handling Vladivostok port container cargo by 24.2% and export container cargo throughput, ‘000 TEU(1) handling by 10.7% was partially offset by • Import 45,987 37,022 +24.2% 17.9% decrease in cabotag

  7. Slide 7: Operational Performance: Rail Division

    Operational Performance: Rail Division Y-o-Y  The increase in container cargo 1Q2013 1Q2012 Change transportation by 5.3% was driven by an Rail container transportation, ‘000 TEU(1) 64,130 60,895 +5.3% increasing number of fitting platforms operated by the Group. But it was partially Rail cargo tra

  8. Slide 8: Operational Performance: Liner and Logistics Division

    Operational Performance: Liner and Logistics Division Y-o-Y  Growth of intermodal transportation by 34.6% 1Q2013 1Q2012 Change and bilateral sea container transportation by Intermodal freight transportation, ‘000 60,187 44,711 +34.6% 24.8% was driven by increasing demand for TEU the integrated logi

  9. Slide 9: Consolidated Financial Performance

    Consolidated Financial Performance 1Q2013 1Q2012 Y-o-Y Change Revenue 275.0 262.7 +4.7%(1) EBITDA 48.4 50.3 -3.8%(1) EBITDA margin 17.6% 19.1% -1.5% CapEx 10 34.3 -70.8%  Key revenue growth drivers :  VMTP consolidation in 2Q2012  Outperformance of LLD, the major contributor to Group’s revenue 

  10. Slide 10: 1Q2013 vs 1Q2012 Financial Performance

    1Q2013 vs 1Q2012 Financial Performance Revenue 1Q2013 vs. 1Q2012 30 (25) 27 (18) (2) 275 263 1Q2012 Port Rail LLD Shipping Other 1Q2013 EBITDA 1Q2013 vs. 1Q2012 8 (16) 50 48 9 (5) 2 1Q2012 Port Rail LLD Shipping Other 1Q2013 10

  11. Slide 11: Segmental Performance

    Segmental Performance Segmental Segmental EBITDA YoY Revenue YoY change EBITDA YoY change Margin change, Division (US$m) (US$m) % points Port 46.8 +132.8%(1) 17.8 +83.5%(1) 38.0% -10.3% Rail 74.6 -19.7% 28.4 -35.6% 38.1% -9.4% Liner & Logistics 158.3 +23.4% 8.8 From negative 5.5% +5.5% Shipping 17.7

  12. Slide 12: Capex

    Capex Capex by Category¹ Expansion CAPEX includes the ($m) 1Q2013 1Q2012 following investments: Maintenance 3 2  Acquisition of one vessel (FESCO as % of sales 1% 1% Pevek) in 1Q2013 for USD 5 mln Expansion 7 32  Development of inland terminals as % of sales 3% 12% (Khabarovsk and Usady) – USD 1 T

  13. Slide 13: Net Debt

    Net Debt $m 31-Mar-2013 Pro-forma Total Debt(1) 1,184 Cash 224 Pro-forma Net Debt 960 Pro-Forma Net Debt / LTM Adj. EBITDA 3.5x (1)Pro-forma total borrowings include the placement USD 550m 8.00% Senior Secured Notes due 2018 and USD 325m 8.75% Senior Secured Notes due 2020 in May 2013; exclude the $

  14. Slide 14: IR Team Contacts

    IR TEAM CONTACTS: Galina Shilina Director, Corporate Communications [email protected] Ekaterina Semenova IR Manager [email protected] 14

FESCO Transportation Group — Q1 2013 Earnings Presentation on 6ix