R232 R140 G39 G196 B62 B236 R84 B83 2015 Full-Year Results ... · 3/11/2016 · 2015 Full-Year...

Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 1

Global Ports Investments PLC

2015 Full-Year Results Presentation

11 March 2016

R140

G196

B236

R232

G39

B62

R84

G80

B83

R0

G86

B145

R151

G177

B165

R76

G158

B208

R70

G90

B80

R157

G207

B232


Information contained in this presentation concerning Global Ports Investments PLC, a company organised and existing under the laws of Cyprus

(the “Company”, and together with its subsidiaries and joint ventures, “Global Ports” or the “Group”), is for general information purposes only. The

opinions presented herein are based on general information gathered at the time of writing and are subject to change without notice. The Company

relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness.

These materials may contain forward-looking statements regarding future events or the future financial performance of the Enlarged Group. You can

identify forward looking statements by terms such as “expect”, “believe”, “estimate”, “anticipate”, “intend”, “will”, “could”, “may”, or “might”, the

negative of such terms or other similar expressions. These forward-looking statements include matters that are not historical facts and statements

regarding the Company’s and its shareholders’ intentions, beliefs or current expectations concerning, among other things, the Enlarged Group’s

results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Company operates. By their nature,

forward-looking statements involve risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur

in the future.

The Company cautions you that forward-looking statements are not guarantees of future performance and that the Enlarged Group’s actual results

of operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which the Company operates may

differ materially from those described in or suggested by the forward-looking statements contained in these materials. In addition, even if the

Company’s results of operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which the

Company operates are consistent with the forward-looking statements contained in these materials, those results or developments may not be

indicative of results or developments in future periods.

The Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the

occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in forward-looking

statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in

Russia, market change in the Russian transportation industry or particularly in the ports operation segment, as well as many other risks specifically

related to the Company and its operations.

These materials do not constitute an offer or an advertisement of any securities in any jurisdiction.

DISCLAIMER


Unless stated otherwise all financial information in this presentation is extracted from the Consolidated Financial Statements of the Company for the

twelve months period ended 31 December 2015 which are prepared in accordance with International Financial Reporting Standards adopted by the

European Union (“IFRS”) and the requirements of the Cyprus Companies Law, Cap.113.

The Global Ports Group’s Consolidated Financial Statements of the Company for the twelve months period ended 31 December 2015 is available at

the Global Ports Group’s corporate website (www.globalports.com).

The financial information is presented in US dollars, which is also the functional currency of the Company and certain other entities in the Group.

The functional currency of the Group’s operating companies for the periods under review was (a) for the Russian Ports segment, the Russian

rouble, (b) for the Oil Products Terminal segment and for the Finnish Ports segment, the Euro.

In this presentation the Group has used certain non-IFRS financial information as supplemental measures of the Group’s operating performance.

Such information is marked in this presentation with an asterisk {*}.

Information (including non-IFRS financial measures) requiring additional explanation or defining is marked with initial capital letters and the

explanations or definitions are provided at the end of this presentation.

Rounding adjustments have been made in calculating some of the financial and operational information included in this presentation. As a result,

numerical figures shown as totals in some tables may not be exact arithmetic aggregations of the figures that precede them.

Market share data has been calculated using the information published by the Association of Sea Commercial Ports (“ASOP”), www.morport.com,

Seabury Group LLC (“Seabury”) and Drewry Financial Research Services Ltd (“Drewry”).

REFERENCE TO ACCOUNTS AND OPERATIONAL INFORMATION

3


CONTENTS

4

PAGE

I. Global Ports at a glance 5

II. 2015: Focus on cash flow in a difficult market 6

• Sharp decline of the Russian container market

• Container export growth is a sustained trend

III. Containerization of Russian market remains low 9

IV. 2015 Operating highlights: efficiency and cost control 10

V. 2015 Financial highlights 11

• High cash conversion

• Focus on deleverage

VI. Commitment to core strategy 14

Appendix #1: Global Ports

15

Appendix #2: Selected operational and financial information 23


The #1 container terminal operator in Russia(1)

Strong presence in both key container gateways to Russia: Baltic and the Far Eastern basins

● 6 marine container terminals in the Baltic basin and 1 in Far East basin

Efficient, well invested terminals provide for low CAPEX requirements and high cash flow generation

Listed on the main market of the London Stock Exchange, free float of 20.5%(2)

● APM Terminals and N-Trans (each with 30.75% of total share capital) are the core strategic shareholders

● Adherence to best-in-class corporate governance

● Board of Directors with strong track record and deep understanding of the industry

GLOBAL PORTS AT A GLANCE

(1) Source: ASOP, based on 2015 overall container throughput in the Russian Federation ports

(2) Of total share capital.

BALTIC BASIN

BLACK SEA BASIN

FAR EASTERN BASIN

Vostochnaya

Stevedoring Company

MLT-Helsinki

MLT-Kotka

Vopak E.O.S. Ust-Luga

Container

Terminal

Moby Dik

First Container Terminal

Petrolesport

Logistika-Terminal

Yanino


2015: FOCUS ON CASH FLOW IN A DIFFICULT MARKET

Strong Free Cash Flow

generation

Adjusted EBITDA margin increased to a record level of 71.7%* due to strict cost control,

pricing power and positive FX impact(1)

Margin expansion mitigated the effect of a 27.9% revenue decline on Adjusted EBITDA

which was down 22.6%* to USD 291.0 million*

Margin expanded to

record level

(1) In 2015 the rouble devalued by 59% to 61.32 RUB/USD from 38.60 RUB/USD in 2014 (average exchange rates according to the Central Bank of Russia)

(2) Including derivative financial instruments

(3) Two tranches RUB 5 billion each were issued in December 2015 and February 2016

Key priorities

unchanged

Deleveraging

continued,

diversification of debt

portfolio

Net Debt(2) reduced by USD 160 million* during 2015

Net Debt(2) / LTM Adjusted EBITDA at comfortable ratio of 3.6x*

Diversification of debt portfolio: 5-y local bonds(3) swapped to USD issued with the total amount of

approx. USD 134 million to refinance existing debt

Delivering progress against key priorities in challenging market; core strategy maintained

CAPEX to be maintained at the low level of USD 25-30 million* during the next few years

Use strong free cash flow to deleverage

USD 236.3 million* of Free Cash Flow generated (down 24.2%* y-o-y)

● Strong pricing

● Reduction of Operational Cash Costs

● Reduction in CAPEX


2014 2015 2014 2015

empty laden

SHARP DECLINE OF THE RUSSIAN CONTAINER MARKET

Rouble depreciation and overall deterioration of the

Russian macroeconomic environment led to a 26%

decline in the container market in 2015

● Monthly volumes were broadly flat in

May-December 2015

● Export containerization drove 3x increase in empty

imports (from a low base)

Visibility in 2016 remains low:

● In January 2016 the market declined 10% y-o-y

and 14% compared to December 2015

● Competition is increasing

Russian container market 2000–2015 volumes, mln TEU

Russian container market 2014-2015 monthly dynamics, kTEU

Source: ASOP

(1) Excluding cabotage and transit

Russian container export/import dynamics, mln TEU(1)

2.3*

1.6*

0.92* 0.94*

1.4*

0.7*

Import Export

average in May-Dec’15

00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

0.5 0.7

1.5 1.1

0.9

2.0

2.4

3.0

3.7

2.4

3.5

4.5 4.9

5.2 5.1

3.8

200

250

300

350

400

450

500

Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Dec-15


2014 20152012 2013 2014 2015

2012 2013 2014 2015

CONTAINER EXPORT GROWTH IS A SUSTAINED TREND

Laden exports up 22% since 2012; +1.8% in 2015 on the

back of a declining market as weak RUB supports export

● Containerization of export supply chains allows for

reduction of cargo losses; more flexibility and ability to

market small quantities (as little as one container) globally

Growth in exports is balancing the laden import and export

container flows in Russia

● Drives the need to import empty containers thus

increasing the overall market

● Exports are may potentially more stable

compared to volatile imports

Source: ASOP

0.7x*

0.5x*

Laden export/import ratio in Saint –Petersburg area(1)

Growth in laden export is balancing Russian container market

Export growth is a sustained trend

Laden export of Russia, mln TEUs per annum

0.4x* 0.4x*

17*

71*

Imports of empty containers dynamics, kTEU

0.77* 0.76*

0.92* 0.94*

22%*

(1) Saint-Petersburg and Ust-Luga

Source: ASOP

Source: ASOP


Russia Brasil World Turkey Europe USA

Global trade Russian export2012 2013 2014 2015

TEUs per 1000 capita, 2015

Containerisation remains low(1)

CONTAINERIZATION OF RUSSIAN MARKET REMAINS LOW

(1) Source: Drewry; some 2015 numbers are estimated

(2) Containerisation calculated as total containerised ocean import in tonnes (Source: ASOP) divided by total import in tonnes (Source: Federal Customs Service), excluding oil and oil products

(3) Source: for Global trade - Seabury (2013), for Russia - company estimates based on Federal Customs data. Excluding non- containeraisable cargo: oil, oil products, coal and others

Containerization levels in Russia are still very

low vs. international benchmarks

Despite sharp decline in overall imports,

containerization level of imports remained stable

in 2015

Russia’s export containerization is almost 3x

below global average

Containerization of import(2)

26*

45*

95* 106*

111*

145*

35%* 37%* 39%* 39%*

Containerization of exports is very low in global comparison(3)

Share of containerized trade, 2015

7.3%*

20.8%*


2013 2014 2015

2013 2014 2015

2015 OPERATING HIGHLIGHTS: EFFICIENCY AND COST CONTROL

Staff

optimization

Review of costs

Other operating

efficiency

initiatives

Reduction of 9%*(1) of total headcount during the last 12 months

Optimization of outsourced personnel

Reduced working week introduced in key terminals

Cost reduction for the majority of outsourced services

Every significant cost item tracked

Operational peaks reduced to optimize container handling flows

(allowing for lower headcount and equipment requirements)

Optimization of repair and maintenance: utilization based

maintenance scheduled for each piece of equipment; 15% of total

equipment ‘parked’

Centralization of procurement creating further synergies in the

portfolio

Reduction in outsourcing of transportation services

(1) FCT, PLP, VSC

(2) Pro forma

CAPEX revision CAPEX scaled down without compromising reliability and safety

Focus on relocation of equipment within the portfolio

Disposal of land

and equipment

Sale of unutilized land plots and idle equipment

Proceeds from sale of property, plant and equipment amounted

to USD 8.7 mln in 2015

Number of employees in three key terminals(1)

in 2013-2015, ths employees

2.31* 2.53*

2.80*

Cash CAPEX in 2013-2015, mln USD

11.7 23.6

70.0*

-18%

-83% (2)


2014 2015

2014 2015

2014 2015

2015 FINANCIAL HIGHLIGHTS

Strong pricing mitigated

volume impact on revenues

Margin expansion

driven by cost control and positive FX

impact

Reduced CAPEX

562

mln

US

D

Revenue

-28%

mln

US

D

Adjusted EBITDA and Adjusted EBITDA margin

Cash CAPEX

mln

US

D

71.7%* 66.8%*

Revenue declined 28%

Increase in revenue per TEU partially offset impact

of container volume decline on revenues

Focus on efficiency, cost control and positive FX

impact produced a 38%* reduction in Group’s

Total Operating Cash Costs

Adjusted EBITDA margin up 488 bps* to record

71.7%*

Margin expansion held Adjusted EBITDA

decrease to 23%* (to USD 291 million)*

Cash CAPEX in 2015 reduced by 50% to USD

11.7 million - well invested terminals enable

reduction in CAPEX without compromising

quality of service, safety or reliability

406

376*

-23%

291*

23.6

-50%

11.7


291.0*

(59.7) (11.7)

10.4 6.3

AdjustedEBITDA

Incometax

CAPEX Dividendsfrom JVs

Other FCF

HIGH CASH CONVERSION

Strong Free Cash Flow generation due to:

● Strong profitability

● Low CAPEX requirements

● Reliable customer base ensures timely

collection of receivables

● Strong dividend flow from JV-s

Non-consolidated entities generate strong Cash Flow

JV 2015 Performance EBITDA 2015,

mln USD

Net Debt as of

31.12.15, mln USD

FCF 2015,

mln USD

GPI’s share in FCF

2015, mln USD

Throughput of 4.9* mln tons (-28%* y-o-y)

Adjusted EBITDA margin broadly stable at 38% y-o-y

Low leverage (Net Debt/Adjusted LTM EBITDA of 0.25)

32* 8* 25* 12*

Lean and efficient operation: EBITDA margin increase

in 2015 despite revenue drop 4* 3* 3(1)* 2*

Moby Dik is a niche container terminal able to provide

tailored, value added solutions for key clients

Growing containerization of exports supports increased

demand for inland services (2015 container throughput

up 23%* YoY)

21* 25* 16* 12*

Global Ports’ share 35* 26*

236.3*

(1) Excluding one-off intra group transfer of equipment

High cash conversion (2015), mln USD


as of 31.12.13 as of 31.12.14 as of 31.12.15

31.12.2015 2016 2017 2018

FOCUS ON DELEVERAGE

Source: Company data

(1) Including derivatives financial instruments

(2) Taking into account currency and interest rate swap

(3) Two tranches RUB 5 billion each were issued in December 2015 and February 2016 and swapped to USD with the total amount of approx. USD 134 million*

(4) In December 2015

(5) As at 29 February 2016

(6) Refinanced following the 5y-year local bonds issue in February 2016

Net Debt(1) reduced by USD 160 million* in 2015,

Total Debt(1) reduced by USD 293 million* since

NCC acquisition in the end of 2013

Leverage remained at moderate level of 3.6x* as of

31.12.2015

Almost 100% of debt portfolio effectively

denominated in US dollars(2) as of 31.12.15

matching revenue

Existing debt partially refinanced via 5-year local

bonds(3) and one credit line(4):

● Diversification of debt portfolio

(12%*(5) of public debt)

● Increased share of fixed rate borrowings to

34%*(5)

● Reduced share of secured debt

Average interest rate of the debt portfolio is around

6.1%*(5)

Net debt(1), mln USD

Cash &

Equivalents

Net cash

from

operating

activity

in 2015

99* 129*

249*

371*

248*

123*

1,350*

1,208*

1,048*

-302m*

Debt maturity profile, mln USD

26*(6)


COMMITMENT TO CORE STRATEGY

Efficiency and

cost control

Adjust to the new macroeconomic environment: analyse all expenses and processes

with yet another level of scrutiny

Focus further on productivity improvement

Leverage core

assets and

existing

infrastructure

Focus on core (maritime) activity

Maximize value extraction from core assets

Maintain disciplined commercial strategy

Generate new revenue streams

Focus on cash

flow and

deleveraging

Preserve cash given capacity available across the portfolio

Well invested terminals enable scale down of CAPEX to USD 25-30 million in the mid term

Use strong FCF (USD 236 million in 2015) for deleveraging

15

APPENDIX #1

Global Ports


STRONG POSITIONS IN KEY BASINS

RUSSIA FINLAND

ESTONIA

BALTIC SEA GULF OF FINLAND

Ust-Luga

Container

Terminal

First Container

Terminal

Petrolesport Moby Dik

RUSSIA

CHINA

SEA OF

JAPAN

Vostochnaya

Stevedoring Company

Moscow St. Petersburg

Nakhodka

Black Sea Basin

16% of Russia’s

container traffic

Shanghai

Baltic Basin

Key entry gateway to Russia

Best maritime access to key

consumption areas St. Petersburg

and Moscow

The cheapest route to deliver cargo

from China to European part of

Russia

Far East Basin

Supplying Russian Far East, CIS

countries (Kazakhstan, Tajikistan,

Uzbekistan) as well as central

Russia (including Moscow)

The fastest route to ship cargoes

from China to Moscow: up to 15-

20 days faster than via the Baltic

Basin

Baltic Basin

52% of Russia’s container

traffic

Far East Basin

28% of Russia’s

container traffic

VEOS

MLT Helsinki

MLT Kotka

Source: Based on 2015 market data by ASOP


WELL INVESTED CONTAINER TERMINALS IN KEY GATEWAYS

Black Sea Basin 16% of Russian market 2015 throughput

Russia

• Capacity: 440 ths. TEU

NCSP

Novorossiysk

Black

Sea

Turkey


NUTEP

Baltic Sea Basin 52% of Russian market 2015 throughput

Far East Basin 28% of Russian market 2015 throughput


VSC


VMTP

Vladivostok

Okhotsk

Sea


VSFP

Russia

China Russia

Finnish transit

Baltic countries’ transit


Moby Dik

• Capacity: 1,000 ths. TEU

PLP

St. Petersburg

Region

Estonia

Latvia

Kaliningrad

Region

Baltic Sea

Lithuania


Ust-Luga


BSC and Kaliningrad SCP

• Capacity: 1,250 ths. TEU

FCT


CT St-Petersburg

Moscow

Finland

Other terminals


Bronka

• Capacity(1): 500 ths. TEU

Source: Drewry, open sources, Company analysis

Note: Gross container handling capacity with respect to container terminals of the Group as at 31 December 2015

(1) Source: Vedomosti as at 19.06.2015


GLOBAL PORTS HAS AN UNMATCHED VALUE PROPOSITION

Global Ports has a unique value proposition for container

handling in Russia

● Size, capacity, location, infrastructure, experienced

personnel and flexibility as well as in-house IT solutions

● Current infrastructure and high productivity can

accommodate highest service level requirements

Global Ports is very well positioned for laden export/import

flow handling as it requires more advanced infrastructure,

such as:

● Significant rail capacity

● Large, modern customs inspection zones

● Specialized yards including reefer

Network

• Six maritime container terminals in the Baltic basin

• One large maritime terminal in the Russian Far East

Capacity

• More than 4 million TEUs of capacity across the portfolio

• Significant available capacity in all marine terminals in Russia

Location

• Very good and complementary terminal locations (St.Petersburg, Ust-Luga and Nakhodka)

• Established port cluster of brokers, freight forwarders, trucking and other communities

Infrastructure

• Excellent road and railway access

• Key on-site infrastructure including warehousing, dedicated customs zones, etc.

• Full-service range crucial for high-priced laden import and export

Flexibility

• Operational flexibility at berths, yards and gates

• Ability to handle unscheduled container traffic, and provide faster turnaround

IT solutions

• Strong in-house IT competence

• Tailor made web solutions for customers creating strong integration in the port community

Baltic Basin is the key for Russian laden export

Russian laden export breakdown by basin, 2015

Source: ASOP

66,3%0,3%

15,6%

17,8% Baltic Basin

Northern Basin

South Basin

Far East Basin


BEST-IN-CLASS CORPORATE GOVERNANCE ON A PAR WITH THE HIGHEST INTERNATIONAL STANDARDS

Public company listed at main board of LSE: best practice

corporate governance standards established since inception in

2008 (further revision in 2012 and 2015)

● Quick and un-bureaucratic decision making processes

● Proper split of responsibilities between head office and

terminal management

Strong Board of Directors:

● People with diverse backgrounds and with vast industry

expertise

● Reasonable degree of centralization of legal and

commercial functions

● Experienced and reputable INEDs chairing Nominations,

Remuneration and Audit and Risk committees

Capt. Bryan Smith

Senior INED

Chairman of

Nominations and

Remuneration

committees

Siobhan Walker

INED

Chairman of Audit and

Risk committee

Corporate governance structure

Board of

Directors

General Meeting of Shareholders

Nomination

Committee

Remuneration

Committee

Vladislav Baumgertner

Chief Executive Officer

Audit and Risk

Committee

Internal

Auditor

Key Executive Management(1)

Mikhail Loganov

Chief Financial Officer

Evgeny Zaltsman

Head of Business

Development

Vasily Shultsev

Acting Chief

Commercial Officer

Anders Kjeldsen

Chief Operating Officer

Terminals Management

Corporate governance highlights

(1) Global Ports Management LLC, Russia


FUNDAMENTALLY HIGH PROFITABLITY AND STRONG CASH FLOW

EBITDA margin(1)

High barriers to entry: high capital and regulatory requirements, limited land availability with only three main gateways with

a small number of developed ports

Almost 100% of throughput is O&D traffic (leading to higher tariffs supporting higher margins)

Favorable port regulation and legislation in Russia: no concession model, long-term lease and ownership of terminal land and

quays, no tariff regulation

Focus on efficiency, productivity and cost control

68.9%

51.0%

59.9%

62.6% 64.1%

65.1%

70.1%

76.9%

2008 2009 2010 2011 2012 2013 2014 2015

(1) Russian Ports segment, the results of NCC Group are not included in 2008-2013 (data derived from management accounts, Non-IFRS measure)

(2) Based on consolidated Cost of sales, Administrative, Selling and marketing expenses excluding Depreciation and Amortisation and Impairment

(3) Global Ports cash flow from operating activities less CAPEX as per audited financial statements. The results of NCC Group are not included in 2008-2013

Operating cash costs of Global Ports(2), 2015

55%

5%

6%

6%

5%

5%

18%

Staff costs

Transportationservices

Fuel, electricityand gas

Repair andmaintenance

Taxes other thanincome

Operating leasecosts

Other expenses

Key drivers of Global Ports profitability

Free Cash Flow(3)

90* 82*

122*

98*

172* 189*

312*

236*

2008 2009 2010 2011 2012 2013 2014 2015

mln USD


PRINCIPLES OF IFRS CONSOLIDATION

291*

236 *

EBITDA Free Cash Flow

3.6x

Fully consolidated

100% 80% 100% 100% 100% 75% 75% 75% 50%

Accounted using equity method

Vopak EOS is a JV with Royal Vopak (Netherlands),

other JVs are with Container Finance (Finland)

Key contributors are large terminals FCT, PLP and VSC

20% of ULCT owned by Eurogate GmbH, shown as non-

controlling interest in GPI’s financial statements

mln USD, 2015 X.Xx - Net Debt / EBITDA

57*

18*

26*

EBITDA Free Cash Flow

GPI's share in Free Cash Flow0.6x*

mln USD, 2015 X.Xx - Net Debt / EBITDA

44*


OTHER SEGMENTS

Vopak E.O.S. Finnish Ports segment

Throughput, mln tons

6.9*

4.9*

-28%*

117

86

-25%*

47*

32*

-30%*

2014

2015

251*

3.9*

24.1

272* 19.6

4.0*

9%*

-19%*

2%*

Revenue, USDm Adjusted EBITDA

(USDm) and Adjusted

EBITDA margin (%)

Focus on storage and accumulation of large shipments,

utilising the unique features of the tank farm consisting of

78 tanks of different sizes

Depreciation of EUR against USD affected VEOS’s

revenues and Adjusted EBITDA: Adjusted EBITDA

declined 17%* in EUR

Market environment remains challenging

Due to mandatory adoption of IFRS 11 from January 1st 2014, Vopak E.O.S. and Finnish Ports segment are consolidated

using the equity method of accounting and their proportional share of net profit is reported below EBITDA

39.9%* 37.6%*

Finnish Ports segment throughput increased by 9%*

Revenues decreased by 19%, Adjusted EBITDA increased

by 2%*

Depreciation of EUR against USD affected Finnish ports'

revenues and Adjusted EBITDA: Adjusted EBITDA

increased by 22% in EUR

15.8%* 20.2%*

2014

2015

Throughput, thousand TEU Revenue, USDm Adjusted EBITDA

(USDm) and Adjusted

EBITDA margin (%)

Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 26-27

23 23

APPENDIX #2 Selected operational and financial information


SELECTED OPERATIONAL INFORMATION(1)

(1) Data is on a 100% basis. Source: Management accounts

(2) Total throughput of Russian Ports excludes the throughput of Yanino which in 2014 and 2015 was 89 thousand TEUs and 107 thousand TEUs respectively and the throughput of LT which in 2014 and 2015 was 89 thousand TEUs and 110

thousand TEUs respectively

2015 2014

2015 2014

Gross throughput Gross throughput

Russian Ports segment Finnish Ports segment

Containerised cargo

(thousand TEUs)

PLP 376 658

Containerised cargo (thousand

TEUs) 272 251

VSC 353 475

Moby Dik 169 228

FCT 578 941 Oil Products Terminal segment

ULCT 86 104

Total Russian Ports segment(2) 1,562 2,404

Oil products Gross Throughput

(million tonnes) 4.9 6.9

Non-containerised cargo

Ro-ro (thousand units) 13 23

Cars (thousand units) 101 114

Bulk cargo (thousand tonnes) 1,364 751


SELECTED OPERATIONAL INFORMATION (CONTINUED)

Source: Management Accounts

2015 2015

Capacity (end of the period)

Russian Ports segment Finnish Ports segment

Russian Marine Container Terminal Capacity

Annual container handling capacity

(Thousand TEUs)

PLP 1,000 MLT Kotka 270

VSC 650 MLT Helsinki 150

Moby Dik 400 Total 420

FCT 1,250

ULCT 440

Total Global Ports 3,740

Yanino, inland container terminal


(Thousand TEUs) 200

Annual general cargo capacity (Thousand tonnes) 400 Oil Products Terminal Segment

LT, inland container terminal Storage Capacity (in thousand cbm) 1,026


(Thousand TEUs) 200


GLOBAL PORTS CONSOLIDATED INCOME STATEMENT

Source: Global Ports consolidated financial statements

Summary Income Statement

USD million 2015 2014

Revenue 405.7 562.4

Cost of sales (176.4) (231.5)

Gross profit 229.3 330.9

Administrative, selling and marketing expenses (42.3) (55.2)

Share of profit/(loss) of joint ventures 3.8 (7.7)

Other (losses)/gains – net (6.0) 10.5

Operating profit 184.8 278.6

Finance costs – net (215.1) (507.7)

Loss before income tax (30.3) (229.1)

Income tax expense (3.4) 31.8

Loss for the period (33.7) (197.3)

Loss attributable to:

Owners of the Company (25.1) (193.1)

Adjusted EBITDA* 291.0 375.9

Adjusted EBITDA Margin* 71.7% 66.8%


GLOBAL PORTS CONSOLIDATED BALANCE SHEET


Summary Balance Sheet

USD million 31-Dec-15 30-June-15

PP&E (incl. prepayments) 502.5 679.2

Intangible assets 622.7 825.3

Other non-current assets 235.1 210.2

Cash and equivalents 123.1 117.4

Other current assets 36.3 49.5

Total assets 1,519.8 1,881.6

Equity attributable to the owners of the Company 158.7 406.0

Minority interest 13.2 16.5

LT borrowings 1,062.4 1,014.8

Derivative financial instruments 5.4 103.5

Other non-current liabilities 149.9 199.4

ST borrowings 103.0 114.7

Other current liabilities 27.2 26.7

Total equity and liabilities 1,519.8 1,881.6


GLOBAL PORTS CONSOLIDATED CASH FLOW STATEMENT


Summary Cash Flow Statement

USD million 2015 2014

Cash generated from operations 297.3 388.4

Dividends received from joint ventures 10.4 9.5

Tax paid (59.7) (62.7)

Net cash from operating activities 248.0 335.2

Cash flow from investing activities

Purchases of intangible assets (0.1) (0.2)

Purchases of property, plant and equipment (11.7) (23.6)

Proceeds from sale of property, plant and equipment 8.7 1.7

Contingent consideration paid - (61.6)

Loans granted to related parties (8.7) (12.5)

Loans repayments received 0.5 0.5

Other 1.5 2.3

Net cash used in investing activities (9.8) (93.3)

Cash flow from financing activities

Proceeds from the issue of shares by a subsidiary to non-controlling interest - 12.8

Net cash outflows from borrowings and financial leases (118.0) (105.8)

Interest paid (74.4) (92.2)

Dividends paid to the owners of the Company - (48.5)

Net cash from/(used) in financing activities (192.4) (233.6)


DEFINITIONS

Adjusted EBITDA (a non-IFRS financial measure) for Global Ports Group is defined as profit for the period before income tax expense, finance income/(costs)-net, share of profit/losses of JVs

accounted for using the equity method, depreciation of property, plant and equipment, amortisation of intangible assets, other gains/(losses)-net, impairment charge of property, plant and equipment, and

impairment charge of goodwill;

Adjusted EBITDA Margin (a non-IFRS financial measure) is calculated as Adjusted EBITDA divided by revenue, expressed as a percentage;

Baltic Sea Basin is the geographic region of northwest Russia, Estonia and Finland surrounding the Gulf of Finland on the eastern Baltic Sea, including St. Petersburg, Tallinn, Helsinki and Kotka;

Container Throughput in the Russian Federation Ports is defined as total container throughput of the ports located in the Russian Federation, excluding half of cabotage cargo volumes. Respective

information is sourced from ASOP (“Association of Sea Commercial Ports”, www.morport.com);

Cash Costs of Sales (a non-IFRS financial measure) is defined as cost of sales, adjusted for depreciation and impairment of property, plant and equipment, amortisation of intangible assets;

Cash Administrative, Selling and Marketing expenses (a non-IFRS financial measure) is defined as administrative, selling and marketing expenses, adjusted for depreciation and impairment of

property, plant and equipment, amortisation of intangible assets;

CD Holding group consists of Yanino Logistics Park (an inland terminal in the vicinity of St-Petersburg), CD Holding and some other entities. The results of CD Holding group are accounted in the

Global Ports’ financial information using the equity method of accounting;

First Container Terminal (FCT) is located in the St. Petersburg harbour, Russia’s primary gateway for container cargo. The Global Ports Group owns a 100% effective ownership interest in FCT. The

results of FCT are fully consolidated;

Finnish Ports segment consists of two terminals in Finland, MLT Kotka and MLT Helsinki (in port of Vuosaari), in each of which Container Finance currently has a 25% effective ownership interest. The

results of the Finnish Ports segment are accounted for in the Global Ports’ financial information using the equity method of accounting (proportionate share of net profit shown below EBITDA);

Free Cash Flow is calculated as Net cash from operating activities less Purchase of PPE;

Fuel Oil Export Market is defined as the export of fuel oil from ports located in the Former Soviet Union countries;

Functional Currency is defined as the currency of the primary economic environment in which the entity operates. The functional currency of the Company and certain other entities in the Global Ports

Group is US dollars. The functional currency of the Global Ports Group’s operating companies for the years under review was (a) for the Russian Ports segment, the Russian Rouble and (b) for the Oil

Products Terminal segment, and for the Finnish Ports segment, the Euro;

Gross Container Throughput represents total container throughput of a Group’s terminal or a Group’s operating segment shown on a 100% basis. For the Russian Ports segment it excludes the

container throughput of the Group’s inland container terminals, Yanino and Logistika Terminal;

Gross Profit Margin (a non-IFRS financial measure) is calculated as Gross Profit divided by revenue, expressed as a percentage.

Logistika Terminal (LT) is an inland container terminal providing a comprehensive range of container freight station and dry port services at one location. The terminal is located to the side of the St.

Petersburg - Moscow road, approximately 17 kilometres from FCT and operates in the Shushary industrial cluster. The Global Ports Group owns a 100% effective ownership interest in LT. The results of

LT are fully consolidated;

MLT group consists of Moby Dik (a terminal in the vicinity of St-Petersburg) and Multi-Link Terminals Oy (terminal operator in Vuosaari (near Helsinki, Finland) and Kotka, Finland). The results of MLT

group are accounted for in the Global Ports’ financial information using the equity method of accounting (proportionate share of net profit shown below EBITDA);

Moby Dik (MD) is located in Kronshtadt on the St. Petersburg ring road, approximately 30 kilometers from St. Petersburg, at the entry point of the St. Petersburg channel. It is the only container terminal

in Kronstadt. The Global Ports Group owns a 75% effective ownership interest in MD, Container Finance LTD currently has a 25% effective ownership interest. The results of MD are accounted for in

the Global Ports’ financial information using the equity method of accounting (proportionate share of net profit shown below EBITDA);


DEFINITIONS

Net Debt (a non-IFRS financial measure) is defined as the sum of current borrowings, non-current borrowings and derivative financial instruments less cash and cash equivalents and bank deposits with

maturity over 90 days;

Oil Products Terminal segment consists of the Group’s 50% ownership interest in Vopak E.O.S. (in which Royal Vopak currently has a 50% effective ownership interest). The results of the Oil

Products Terminal segment are consolidated in the Global Ports’ financial information using the equity method of accounting (proportionate share of net profit shown below EBITDA);

Operating Cash Costs of Russian Ports is defined as the total of the Russian Ports segment’s cost of sales and administrative, selling and marketing expenses, less the segment’s depreciation and

impairment of property, plant and equipment, less amortisation of intangible assets, a non-IFRS measure;

Operating Profit Adjusted For Impairment (a non-IFRS financial measure) is calculated as Operating Profit plus impairment of property, plant and equipment.

Petrolesport (PLP) is located in the St. Petersburg harbour, Russia’s primary gateway for container cargo. The Group owns a 100% effective ownership interest in PLP. The results of PLP are fully

consolidated;

Profit For The Period Adjusted For Impairment (a non-IFRS financial measure) is calculated as Profit For The Period plus impairment of property, plant and equipment.

Ro-Ro, roll on-roll off is cargo that can be driven into the belly of a ship rather than lifted aboard. Includes cars, buses, trucks and other vehicles;

Russian Baltic Basin is the geographic region of northwest Russia surrounding the Gulf of Finland on the eastern Baltic Sea, including St. Petersburg and Ust-Luga.

Russian Far Eastern Basin is the geographic region of southeast Russia, surrounding the Peter the Great Gulf, including Vladivostok and the Nakhodka Gulf, including Nakhodka on the Sea of Japan.

Russian Ports segment consists of the Global Ports Group’s interests in PLP (100%), VSC (100%), FCT (100%), ULCT (80%) (in which Eurogate currently has a 20% effective ownership interest),

Moby Dik (75%), Yanino (75%) (in each of Moby Dik and Yanino Container Finance currently has a 25% effective ownership interest), and Logistika Terminal (100%). The results of Moby Dik and Yanino

are accounted for in the Global Ports’ condensed consolidated financial information using the equity method of accounting (proportionate share of net profit shown below EBITDA);

TEU is defined as twenty-foot equivalent unit, which is the standard container used worldwide as the uniform measure of container capacity; a TEU is 20 feet (6.06 metres) long and eight feet (2.44

metres) wide and tall;

Total Operating Cash Costs (a non-IFRS financial measure) is defined as Global Ports Group’s cost of sales, administrative, selling and marketing expenses, less depreciation and impairment of

property, plant and equipment, less amortisation of intangible assets, a non-IFRS measure;

Ust Luga Container Terminal (ULCT) is located in the large multi-purpose Ust-Luga port cluster on the Baltic Sea, approximately 100 kilometres westwards from St. Petersburg city ring road. ULCT

began operations in December 2011. The Global Ports Group owns a 80% effective ownership interest in ULCT, Eurogate, the international container terminal operator, currently has a 20% effective

ownership interest. The results of ULCT are fully consolidated;

Vopak E.O.S. includes AS V.E.O.S. and various other entities (including an intermediate holding) that own and manage an oil products terminal in Muuga port near Tallinn, Estonia. The Group owns a

50% effective ownership interest in Vopak E.O.S.. The remaining 50% ownership interest is held by Royal Vopak. The results of Vopak E.O.S. are consolidated in the Global Ports’ financial information

using the equity method of accounting (proportionate share of net profit shown below EBITDA);

Vostochnaya Stevedoring Company (VSC) is located in the deep-water port of Vostochny near Nakhodka on the Russian Pacific coast, approximately eight kilometers from the Nakhodka-

Vostochnaya railway station, which is connected to the Trans-Siberian Railway. The Group owns a 100% effective ownership interest in VSC. The results of VSC are fully consolidated;

Weighted average effective interest rate is the average of interest rates weighted by the share of each loan in the total debt portfolio.

Yanino Logistics Park (YLP) is the first terminal in the Group’s inland terminal business and is one of only a few multi-purpose container logistics complexes in Russia providing a comprehensive range

of container and logistics services at one location. It is located approximately 70 kilometres from the Moby Dik terminal in Kronstadt and approximately 50 kilometres from PLP. The Global Ports Group

owns a 75% effective ownership interest in YLP, Container Finance LTD currently has a 25% effective ownership interest. The results of YLP are accounted for in the Global Ports’ financial information

using the equity method of accounting.

Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 26-27

31 31

INVESTOR RELATIONS Mikhail Grigoriev Phone: +7 495 989 4769 (ext. 1310)

Mob: +7 916 991 7396

Yana Gabdrakhmanova Phone: +7 495 989 4769 (ext. 4197)

Mob: +7 910 462 5538

E-mail: [email protected]

Web: www.globalports.com

R232 R140 G39 G196 B62 B236 R84 B83 2015 Full-Year Results ... · 3/11/2016 · 2015 Full-Year...

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