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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 2
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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 3
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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 4
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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 5
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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 6
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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 7
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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 8
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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 9
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%*
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 10
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)
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 11
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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 12
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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 13
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)
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 14
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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 16
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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 17
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
• Capacity: 350 ths. TEU
NUTEP
Baltic Sea Basin 52% of Russian market 2015 throughput
Far East Basin 28% of Russian market 2015 throughput
• Capacity: 650 ths. TEU
VSC
• Capacity: 650 ths. TEU
VMTP
Vladivostok
Okhotsk
Sea
• Capacity: 200 ths. TEU
VSFP
Russia
China Russia
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 31 December 2015
(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 29-30 18
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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 19
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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 20
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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 21
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*
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 22
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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 24
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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 25
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
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) 1,026
Annual container handling capacity
(Thousand TEUs) 200
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 26
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%
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 27
GLOBAL PORTS CONSOLIDATED BALANCE SHEET
Source: Global Ports consolidated financial statements
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
Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 28
GLOBAL PORTS CONSOLIDATED CASH FLOW STATEMENT
Source: Global Ports consolidated financial statements
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 for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 29
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 for terms marked in this presentation with capital letters are provided in the Appendices at pages 29-30 30
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