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Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-281
Global Ports Investments PLC
2016 Interim ResultsPresentation
9 September 2016
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-282
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 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 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 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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-283
Unless stated otherwise all financial information in this presentation is extracted from the Interim condensed consolidated financial information
(unaudited) for the six month period ended 30 June 2016 which is prepared in accordance with International Financial Reporting Standards adopted
by the European Union (“IFRS”) applicable to interim financial reporting (International Accounting Standard 34 “Interim Financial Reporting”).
The Global Ports Group’s Interim condensed consolidated financial information (unaudited) for the six month period ended 30 June 2016 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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-284
CONTENTS
4
PAGE
I. Global Ports at a glance 5
II. 1H 2016: Focus on cash flow and deleveraging 6
III. Container market: sluggish 1H 2016 volumes 7
IV. Container export growth is a sustained trend 8
V. Signs of improving consumer sentiment 9
VI. 1H 2016 Operating highlights 10
VII. 1H 2016 Financial highlights 11
VIII. Successful execution of financing strategy 12
IX. Focus on deleveraging 13
X. Commitment to core strategy 14
Appendix #1: Global Ports Group 15
Appendix #2: Selected operational and financial information 21
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-285
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 1H 2016 overall container throughput in the Russian Federation ports
(2) Of total share capital.
BALTIC BASIN
BLACK SEABASIN
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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-286
1H 2016: FOCUS ON CASH FLOW AND DELEVERAGING
Strong cash flow
generation
Russian container market declined 2% year on year
Recent macro data indicates improving consumer sentiment
Global Ports’ market share was broadly stable during 1H 2016(1) following significant volume
leakage in 2H 2015 as the Group pursued disciplined commercial strategy
Sluggish market, recent
signs of macro
improvement
(1) Global Ports’ share in total marine container throughput in Russia was 34% in December 2015, 35% in 1Q16 and 34% in 2Q16
(2) Including derivative financial instruments
Key priorities
unchanged
Deleveraging
continued, debt
portfolio further
diversified
Net Debt(2) reduced by c. USD 40 million* in 1H16
Successful diversification of debt portfolio:
● Share of fixed rate borrowings increased to 71%
● Share of public debt increased to 51%
Core strategy of leveraging core assets, focus on efficiency and cash flow maintained
CAPEX to be maintained at the low level of USD 25-30 million* per annum over the next few
years
Continue to use strong free cash flow to deleverage
Global Ports’ container throughput declined 22% year on year resulting in lower revenue
Adjusted EBITDA of USD 111.5 million* (down 27%) with high conversion into Free Cash Flow
of USD 91.1 million*
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-287
3%1%
-2%-6%
-23%
-29%-27%
-24%
-5%
1%
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
CONTAINER MARKET: SLUGGISH 1H 2016 VOLUMES
2% decline of the Russian container market in the first
half driven by 3% decrease in laden imports
2Q 16 saw first container market y-o-y increase (+1%)
after 7 consecutive quarters of decline
Competition remains strong in an environment of low
capacity utilization
● Average capacity utilization was below 50% in 1H16
Source: ASOP
0,5 0,7
0,9 1,1
1,5
2,0
2,4
3,0
3,7
2,4
3,5
4,5 4,9
5,2 5,1
3,8
1,91 1,88
00
'01
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
'12
'13
'14
'15
1H
15
1H
16
Laden import
Russian container market
mln TEU
2014 2015 1H15 1H16
-31%
-3%
2.28
1.57
0.78 0.76
mln TEU
Russian container market quarterly dynamics
% YoY
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-288
2012 2013 2014 2015 1H16
CONTAINER EXPORT GROWTH IS A SUSTAINED TREND
2012 2013 2014 2015 1H15 1H16
Laden exports up 22% since 2012; +12% in 1H 2016
supported by ongoing containerisation and weak RUB
● Containerisation 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 balances Russian container flow
● Need to import empty containers is increasing the overall
market: import of empty containers was virtually non-
existent before rising to c. 9% of total import in 1H 2016
● Export is potentially more stable compared to volatile
imports
0.5x
- Laden export/total export ratio in Saint-Petersburg area(1)
Laden export of Russia, mln TEU per annum
0.4x0.4x
0.77 0.76
0.92
0.47
22%
Source: ASOP
(1) Saint-Petersburg and Ust-Luga
Growth in laden export is balancing Russian container market Laden export growth drives empty containers’ import
Export growth is a sustained trend
0.94
0.53
12%
0.7x0.8x
XX
15.6%
XX - Share of laden export in total market (%)
14.8% 18.0% 24.8% 28.4%
- Imports of empty containers dynamics, kTEUXX
XX - Share of empty container import in total import (%)
2012 2013 2014 2015 1H16
173233
71 72
1.5% 1.3% 0.8% 4.3% 8.7%
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-289
23,4%
20,8%
19,7%
Jan
-15
Fe
b-1
5
Ma
r-15
Ap
r-15
Ma
y-1
5
Jun
-15
Jul-1
5
Au
g-1
5
Se
p-1
5
Oct-
15
Nov-1
5
Dec-1
5
Jan
-16
Fe
b-1
6
Ma
r-16
Ap
r-16
Ma
y-1
6
Jun
-16
SIGNS OF IMPROVING CONSUMER SENTIMENT
Growth in real wages and number of mortgages for the first
time in last 18 months while household debt/income ratio
remains very low at less than 20%
Recent stabilization in macro environment may be catalyst
for further growth in the container market
● Container import is driven by consumption patterns
Containerisation levels in Russia are still very low vs.
international benchmarks
Russia Brazil World Turkey Europe USA
145
TEUs per 1000 capita
+454%
Growth potential to developed markets
+303%
Growth potential to European
developing markets
Low level of containerisation vs international benchmarks
4526
95106 111
Source: Drewry; some 2015 numbers are estimated
Real wages are already growing (% y-o-y)
Source: State Statistics Service
-8,4% -7,4%-3,6%
1,5%
-1,1%
1,1%
Jan
-15
Fe
b-1
5
Ma
r-15
Ap
r-15
May-1
5
Jun
-15
Jul-1
5
Au
g-1
5
Se
p-1
5
Oct-
15
Nov-1
5
Dec-1
5
Jan
-16
Fe
b-1
6
Ma
r-16
Ap
r-16
May-1
6
Jun
-16
Population can afford additional leverage
Source: CBR, State Statistics Service
Household debt/income (%)
Mortgages started to pick up
Source: CBR
-33% -43% -31% -26%
37% 37%
-36% -45% -34% -29%
47% 40%
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
Number of mortgages, % y-o-y
Value of mortgages in RUB, % y-o-y
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-2810
1H 2016 OPERATING HIGHLIGHTS
Review of costs
Potential for
further
operational
efficiency
improvement at
terminals
Focus on administrative costs:
● Centralisation of functions
● Optimisation of office lease and other admin costs
Selling of underutilized equipment
Implementing best practices (pinning stations, vehicle pooling,
dual cycling, etc.)
Training for and enacting multi-tasking of roles
(1) Pro forma
CAPEX revision
CAPEX scaled down without compromising reliability
and safety
Relocation of assets within the Group (e.g. STS relocation from
PLP to VSC)
Focus on
additional
revenue streams
Bulk cargo throughput grew 79% driven by coal at VSC,
scrap metal and other bulk cargoes at PLP
Container throughput at inland terminals grew 58%
2013 2014 2015 1H15 1H16
Cash CAPEX, mln USD
4.723.6
-83%
70.0*(1)
11.7 4.6
-3%
1H 15 1H 161H 15 1H 16
525
939
Bulk cargo,
ths tonnes
58%
90
142
Inland container
throughput, ths TEU
79%
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-2811
AdjustedEBITDA
Incometax
CAPEX Dividendsfrom JVs
Other FCF
3
1H 2016 FINANCIAL HIGHLIGHTS
Decline in volumes impacted revenues
Margin remained strong
High cash conversion
Revenue
Adjusted EBITDA and Adjusted EBITDA margin
Cash Conversion in 1H 2016
Revenue declined 24%* mainly driven by
decline in volumes and moderate decrease in
revenue per TEU
Volume decrease, focus on efficiency and
positive FX impact produced a 14%* reduction in
the Group’s Total Operating Cash Costs
Adjusted EBITDA margin remained at a high
level of 68%*
Adjusted EBITDA of USD 111.5 million*
Strong Free Cash Flow generation due to:
● Strong profitability
● Low CAPEX requirements
● Reliable customer base ensuring timely
collection of receivables
● Dividend flow from joint ventures
1H 15 1H 16
USD mln
214
164
-24%
1H 15 1H 16
153* 112*
-27%
72%* 68%*
USD mln
USD mln
112*
(22) (5)
3 91*
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-2812
SUCCESSFUL EXECUTION OF FINANCING STRATEGY
Debt structure as of 30 June 2015 Debt structure as of 30 June 2016
71%
29%
Fixed Floating
100%
Public Banks
Strategy of diversification of financing sources and fixing of interest rates through entry to public debt markets
Three main transactions completed over last 12 months to refinance existing debt
● RUB 15 billion (c. USD 209 mln) of local bonds issued (swapped to USD)
● USD 215 million facility refinanced
● USD 350 million Eurobond issued
As a result, as of 30.06.2016 Global Ports had:
● Diversified financing sources with 51%* now from public debt markets
● Increased share of fixed rate borrowings to 71%*
● Reduced share of secured debt
51%
49%
Public Banks
5%
95%
Fixed Floating
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-2813
30.06.2016 2H16 2017 2018 2019 2020
2013 2014 2015 1H16
FOCUS ON DELEVERAGING
Source: Company data
(1) Including derivative financial instruments
Net Debt(1) reduced by c. USD 40 million* in 1H16,
Since NCC acquisition at the end of 2013
● Total Debt(1) reduced by c. USD 336 million*
● Net Debt(1) reduced by c. USD 342 million*
As of 30.06.2016:
● Total Debt(1) amounted to USD 1,126.9 million*
● Net debt(1) amounted to USD 1,007.7 million*
Net Debt / LTM EBITDA at level of 4.0x* as of 30.06.2016
Consistent Net Debt(1) reduction
Debt maturity profile as of 30 June 2016
USD mln
USD mln
1208*
1008*
1350*
1048*
Cash &
Equivalents
LTM Net cash from
operating activity
329*
210
119
44*64*
157* 154*177*
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-2814
COMMITMENT TO CORE STRATEGY
Efficiency and
cost control
Continuing to adjust to the macroeconomic environment: tight cost controls while maintaining
flexibility and ability to respond to market changes
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 per annum in the
mid term
Use strong Free Cash Flow for deleveraging
15
APPENDIX #1
Global Ports Group
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-2816
STRONG POSITIONS IN KEY BASINS
RUSSIAFINLAND
ESTONIA
BALTIC SEAGULF OF FINLAND
Ust-Luga
Container
Terminal
First Container
Terminal
PetrolesportMoby Dik
RUSSIA
CHINA
SEA OF
JAPAN
Vostochnaya
Stevedoring Company
MoscowSt. Petersburg
Nakhodka
Black Sea Basin
18% of Russia’s
container traffic
Shanghai
Baltic Basin
Key entry gateway to Russia
Excellent maritime access to key
consumption areas St. Petersburg
and Moscow
The cheapest route to deliver cargo
from China to European part of
Russia(1)
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 (1)
Baltic Basin
54% of Russia’s container
traffic
Far East Basin
24% of Russia’s
container traffic
VEOS
MLT Helsinki
MLT Kotka
Source: Based on 1H 2016 market data by ASOP
(1) Company estimate based on public sources
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-2817
WELL INVESTED CONTAINER TERMINALS IN KEY GATEWAYS
Black Sea Basin19% of Russian market 1H16 throughput
Russia
• Capacity: 440 ths. TEU
NCSP
Novorossiysk
Black
Sea
Turkey
• Capacity: 350 ths. TEU
NUTEP
Baltic Sea Basin 54% of Russian market 1H16 throughput
Far East Basin24% of Russian market 1H16 throughput
• Capacity: 650 ths. TEU
VSC
• Capacity: 650 ths. TEU
VMTP
Vladivostok
Okhotsk
Sea
Russia
ChinaRussia
Finnish transit
Baltic countries’ transit
• Capacity: 400 ths. TEU
Moby Dik
• Capacity: 1,000 ths. TEU
PLP
St. Petersburg
Region
Estonia
Latvia
Kaliningrad
Region
Baltic Sea
Lithuania
• Capacity: 440 ths. TEU
Ust-Luga
• Capacity: 540 ths. TEU
BSC and Kaliningrad SCP
• Capacity: 1,250 ths. TEU
FCT
• Capacity: 750 ths. TEU
CT St-Petersburg
Moscow
Finland
Other terminals
• Capacity: 300 ths. TEU
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 30 June 2016
(1) Source: Vedomosti as at 19.06.2015
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-2818
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
● 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
Chief Commercial
Officer
Doug Smith
Chief Operating Officer
Terminals Management
Corporate governance highlights
(1) Global Ports Management LLC, Russia
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-2819
112*
91 *
EBITDA Free Cash Flow
4.0x*
- Net Debt / LTM EBITDA
PRINCIPLES OF IFRS CONSOLIDATION
Fully consolidated 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, 1H16 X.Xx
23*
8*
13*
EBITDA Free Cash Flow
GPI's share in Free Cash Flow0.5x*
mln USD, 1H16
20*
100% 80%100%100% 100% 75% 75% 75% 50%
VEOSMulti-Link
TerminalsYaninoFCT PLP ULCT Moby DikLTVSC
- Net Debt / LTM EBITDAX.Xx
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-2820
OTHER SEGMENTS
Vopak E.O.S. Finnish Ports segment
Throughput, mln tons
3.3*
1.6*
-51%*
51
38
-25%*
20*
13*
-37%*
1H15
1H16
128*
1.8*
9.7
123*
8.6
1.5*
-4%*
-12%*
-16%*
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
Market environment remains challenging
Due to mandatory adoption of IFRS 11 from January 1st 2014, Vopak E.O.S., Finnish Ports segment (as well as Moby Dik and Yanino
included in the Russian Ports segment) are consolidated using the equity method of accounting and their proportional share of net
profit is reported below EBITDA
38.9%* 32.8%*
Finnish Ports segment throughput decreased by 4%*
Revenues decreased by 12%, Adjusted EBITDA by 16%*
18.1%* 17.2%*
1H15
1H16
Throughput, thousand TEU Revenue, USDm Adjusted EBITDA
(USDm) and Adjusted
EBITDA margin (%)
21
APPENDIX #2
Selected operational and financial information
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-2822
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 1H15 and 1H16 was 53 thousand TEUs and 57 thousand TEUs respectively and the throughput of LT which in 1H15 and 1H16 was 37 thousand TEUs and 85
thousand TEUs respectively
1H 2015 1H 2016 1H 2015 1H 2016
Gross throughput Gross throughput
Russian Ports segment Finnish Ports segment
Containerised cargo
(thousand TEUs)
PLP 218 145Containerised cargo (thousand
TEUs)128 123
VSC 193 142
Moby Dik 81 73
FCT 304 251 Oil Products Terminal segment
ULCT 39 37
Total Russian Ports segment(2) 834 647Oil products Gross Throughput
(million tonnes)3.3 1.6
Non-containerised cargo
Ro-ro (thousand units) 6 7
Cars (thousand units) 56 46
Bulk cargo (thousand tonnes) 525 939
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-2823
SELECTED OPERATIONAL INFORMATION (CONTINUED)
Source: Management Accounts
1H 2016 1H 2016
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
Annual container handling capacity
(Thousand TEUs)200
Annual general cargo capacity (Thousand tonnes) 400 Oil Products Terminal Segment
LT, inland container terminal Storage Capacity (in thousand cbm) 1,052
Annual container handling capacity
(Thousand TEUs)200
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-2824
GLOBAL PORTS CONSOLIDATED INCOME STATEMENT
Source: Global Ports consolidated financial statements
Summary Income Statement
USD million 1H 2015 1H 2016
Revenue 214.3 163.7
Cost of sales (116.3) (55.1)
Gross profit 98.1 108.6
Administrative, selling and marketing expenses (21.4) (19.4)
Share of profit/(loss) of joint ventures 4.5 2.2
Other (losses)/gains – net (7.0) (31.3)
Operating profit 74.2 60.2
Finance income/(costs) – net (29.0) 92.6
Profit before income tax 45.2 152.9
Income tax expense (19.8) (39.4)
Profit for the period 25.4 113.4
Profit attributable to:
Owners of the Company 37.7 113.3
Adjusted EBITDA* 153.4 111.5
Adjusted EBITDA Margin* 71.6% 68.1%
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-2825
GLOBAL PORTS CONSOLIDATED BALANCE SHEET
Source: Global Ports consolidated financial statements
Summary Balance Sheet
USD million 31-Dec-15 30-June-16
PP&E (incl. prepayments) 502.5 557.2
Intangible assets 622.7 699.5
Derivative financial instruments - 11.3
Other non-current assets 235.1 233.3
Cash and equivalents 123.1 119.2
Other current assets 36.3 63.9
Total assets 1,519.8 1,684.4
Equity attributable to the owners of the Company 158.7 315.9
Minority interest 13.2 15.1
LT borrowings 1,062.4 1,058.7
Derivative financial instruments 5.4 2.5
Other non-current liabilities 149.9 169.0
ST borrowings 103.0 93.0
Other current liabilities 27.2 30.3
Total equity and liabilities 1,519.8 1,684.4
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-2826
GLOBAL PORTS CONSOLIDATED CASH FLOW STATEMENT
Source: Global Ports consolidated financial statements
Summary Cash Flow Statement
USD million 1H 2015 1H 2016
Cash generated from operations 153.4 114.3
Dividends received from joint ventures 7.5 3.2
Tax paid (27.0) (21.9)
Net cash from operating activities 134.0 95.7
Cash flow from investing activities
Purchases of intangible assets (0.1) (0.1)
Purchases of property, plant and equipment (4.7) (4.6)
Proceeds from sale of property, plant and equipment 3.4 0.3
Loans granted to related parties (3.5) (7.0)
Loans repayments received 0.3 0.4
Other 1.0 0.4
Net cash used in investing activities (3.6) (10.5)
Cash flow from financing activities
Net cash outflows from borrowings and financial leases (55.3) (50.7)
Interest paid (35.9) (33.5)
Net cash from/(used) in financing activities (91.3) (84.2)
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-2827
DEFINITIONSAdjusted EBITDA (a non-IFRS financial measure) for Global Ports Group is defined as profit for the period before income tax expense, finance costs—net, depreciation of property, plant and
equipment, amortisation of intangible assets, share of (loss)/profit of joint ventures accounted for using the equity method, other gains/(losses)—net and impairment of goodwill and property, plant and
equipment;
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;
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);
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;
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-2828
DEFINITIONSOil 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%) and some other entities. 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
2929
INVESTORRELATIONS
Mikhail GrigorievPhone: +7 495 989 4769 (ext. 1310)
Mob: +7 916 991 7396
Yana GabdrakhmanovaPhone: +7 495 989 4769 (ext. 4197)
Mob: +7 910 462 5538
E-mail: ir@globalports.com
Web: www.globalports.com
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