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Investor Presentation
3Q 2009 Results
November 2009
AGENDA
Company and Industry Overview
Recent Financial Performance
Liquidity and Capital Resources
Outlook
Questions & Answers
Appendices
Company and Industry Overview
Company Overview
Founded in 1987 to acquire the Manila International Container Terminal
(MICT) from the Philippine government in a competitive privatization
tender
Unique strategy focused on acquiring underperforming small and mid-
sized terminals, mostly in government privatizations
Highly successful international expansion and acquisition strategy
ICTSI now manages / operates 18 terminals in 13 countries
Majority of earnings from outside the Philippines
Founder (Enrique K. Razon, Jr.) retains 51% stake and actively manages
the company
4
Ownership Structure
ICTSI Warehousing,
Other directors and
Inc., 1.74%
officers, 1.22%
Public (net),
46.30%
Enrique Razon Jr.,
50.74%
Number of Outstanding S hares = 1,923,935,360
Number of Listed S hares = 1,992,066,860
Number of Foreign-Owned S hares = 713,705,561
Foreign Ownership Lev el (%) = 35.83%
Foreign Ownership Limit (%) = 40.00%
Note: Estimates as of Sept. 30, 2009. Based on total outstanding shares
5
ICTSI Milestones
Secondary Offering
Syria Subic-NCT Misamis Oriental
50
Davao China Argentina
Sale of IIHC
PSE Listing
ICTSI share price (PhP)
43 Indonesia Ecuador
Subic-NSD Brazil Japan Colombia
36
South Cotabato Madagascar Georgia
29
Manila Batangas Poland Brunei
22
Mexico Saudi Arabia Tanzania
15
Argentina Pakistan Mexico Thailand
8
0
'88 '89 90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09
Asian EDSA II Global
Financial Financial
Tech bubble
Crisis burst Crisis
Source: Bloomberg (ICTSI Stock Price)
6
Diversified Global Operations
SPIA
Buenaventura, Colombia
TECPLATA
La Plata, Argentina
7
Terminal Details
Major terminals
MICT
MICT TSSA
TSSA BCT
BCT MICTSL
MICTSL YRDICT
YRDICT CGSA
CGSA
Manila, Philippines
Manila, Philippines Suape, Brazil
Suape, Brazil Gdynia, Poland
Gdynia, Poland Toamasina, Madagascar
Toamasina, Madagascar Yantai, China
Yantai, China Guayaquil, Ecuador
Guayaquil, Ecuador
100% owned
100% owned 100% owned
100% owned 100% owned
100% owned 100% owned
100% owned 60% owned
60% owned 100% owned
100% owned
Other terminals New terminals
Other Philippine operations: MTS
MTS TICT
TICT BICT
BICT NMCTS
NMCTS
Other Philippine operations:
Makassar, Indonesia
Makassar, Indonesia Tartous, Syria Batumi, Georgia
Batumi, Georgia Muara, Brunei
Tartous, Syria Muara, Brunei
DIPSSCOR -- Davao (97% owned)
DIPSSCOR Davao (97% owned) 95% owned
95% owned 100% owned
100% owned 100% owned
100% owned 100% owned
100% owned
SBITC -- Subic Bay (71% owned)
SBITC Subic Bay (71% owned)
BIPI -- Batangas (60% owned)
BIPI Batangas (60% owned)
NICTI
NICTI
SCIPSI -- General Santos (50% owned)
SCIPSI General Santos (50% owned) Under Development
Okinawa, Japan
Okinawa, Japan
MICTSI -- Misamis Oriental (100% owned)
MICTSI Misamis Oriental (100% owned) 60% owned
60% owned
SPIA
SPIA TECPLATA
TECPLATA
Buenaventura, Colombia
Buenaventura, Colombia La Plata, Argentina
La Plata, Argentina
8
Evolution of Capacity
Handling Capacity (in TEUs)
2004 2005 2006 2007 2008 2009E 2010E
MICT (Philippines) 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 1,900,000 2,400,000
TSSA (Brazil) 200,000 200,000 400,000 400,000 400,000 400,000 600,000
BCT (Poland) 400,000 400,000 700,000 700,000 700,000 700,000 700,000
MICTSL (Madagascar) - 120,000 120,000 180,000 220,000 220,000 220,000
PTMTS (Indonesia) - - 200,000 200,000 200,000 250,000 250,000
YRDICTL (China) - - - 1,000,000 1,000,000 1,000,000 1,000,000
CGSA (Ecuador) - - - 600,000 600,000 900,000 900,000
TICT (Syria) - - - 150,000 200,000 250,000 250,000
BICT (Georgia) - - - - 150,000 150,000 150,000
NMCTS (Brunei) - - - - - 250,000 250,000
SPIA (Colombia)* - - - - - - -
TECPLATA (Argentina)* - - - - - - -
2,200,000 2,320,000 3,020,000 4,830,000 5,070,000 6,020,000 6,720,000
Note: * SPIA and TECPLATA are under development.
9
Global Customer Base
ICTSI’s International Carrier Customers
MICT TSSA BCT MICTSL CGSA
Shipping Lines (Manila) (Brazil) (Poland) (Madagascar) (Ecuador)
10
Business Strategy
To develop, acquire, own and operate common user container terminals
in the 50,000 – 1,500,000 TEU range in markets with superior growth and
profit potential.
1 Maintain leadership position in existing markets
Maintain leadership position in existing markets
2 Pursue new opportunities for expansion
Pursue new opportunities for expansion
3 Diversify geographically
Diversify geographically
11
Numerous Potential Targets
Large number of international and government-operated ports available in ICTSI’s
acquisition space, including 185 state-run ports
No. of ports where % of total
Port size Total no. of container handling is no. of
(TEU throughput) ports % exclusively state run* ports
< 100K TEU 312 48.3% 117 37.5%
100K < 250K TEU 123 19.0% 43 35.0%
250K < 500K TEU 74 11.5% 25 33.8%
500K < 1 million TEU 55 8.5% 17 30.9%
> 1 million TEU 82 12.7% 14 17.1%
Total 646 100.0% 216
* Excluding state-owned global operators, but including ports where the state has majority control and/or ownership of terminals
Source: Drewry Publications (2005)
12
Recent Industry Consolidation
Industry Transactions
Buyer Target Year Geography
Dubai Ports CSX 2004 Global
Dubai Ports P&O 2006 Global
PSA Hutchison Ports (20%) 2006 Global
Financial Investor Transactions
Buyer Target Year Geography
Babcock & Brown PD Ports 2006 UK
Goldman Sachs ABP 2006 UK
Deutsche Bank 49% of Peel Port Holdings 2006 UK
Macquarie Halterm 2006 Canada
AIG US Ports of Dubai 2006 USA
Ontario Teachers OOCL Terminals 2006 USA/Canada
Macquarie Fraser Surrey Docks 2007 Canada
Morgan Stanley Montreal Gateway 2007 Canada
Deutsche Bank Maher Terminals 2007 USA/Canada
13
Strategy Drives Yields
Consolidated yield / TEU (in US$) Comparison with PSA (in US$)
120 120
114 114
108 103 108
103
88 91 91
57
49 44 45 45
2003 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008
ICTSI ICTSI PSA
Source: Company information Source: PSA audited financials, UBS Research
14
Key Volume Drivers
Consumer Goods, Electronics (raw materials), Electronic components, Commodities, Fur
MICT (Philippines) Construction Material niture, Housing Fixtures, Paper
Paper, Agriculture (wheat flour, rice, meat), Aluminum, Steel, Cement, Consumer Goods,
TSSA (Brazil) Refractory Material, Heavy Equipment, Tereflatic Acid Poly- ethylene, Textiles, Ceramic, Granite, Fruits, Sugar
Electronics, Textiles, Paper, Steel, Consumers Goods,
BCT (Poland) Consumer Goods Electronics
Construction Materials (cement), Chemicals, Cars Agriculture (vanilla, lychee, coffee, wood),
MICTSL (Madagascar) & Equipment, Oil, Sugar, Rice, Consumer Goods Textiles/Garments, Commodities (chromite)
Construction Material, Consumer Goods, Agriculture (cacao)
PTMTS (Indonesia) Processed Foods, Appliances, Housing Fixtures
Machinery, Textiles, Agriculture, Electronics, Textiles, Processed Foods,
YRDICTL (China) IT Hardware Construction Materials (tiles, stones)
Consumer Goods, Paper, Cars, Home Appliances, Bananas, Wood, Broccoli, Shrimp,
CGSA (Ecuador) Chemicals, Machinery Metal Scrap, Cans, Home Appliances
Construction Material, Commodities
TICT (Syria) (sunflower oil - mostly for Turkey and Iraq), Vehicles
Commodities (sulfur), Vehicles
Construction Materials (tiles), Agriculture (coffee, sugar),
BICT (Georgia) Vehicles (second-hand cars), Liquor
15
50%
Import Export
Impressive Financial Performance
Revenues (in US$’000) EBITDA & EBITDA Margin Net income (in US$’000)
2% 4% %
=4 =4 = 28
R R R
C AG C AG 44.5% C AG
44.6%
42.4%
40.9%
463,118 39.9% 71,258
64,282
194,347
324,933
129,675 39,031
-
230,861 352,253 94,402
299,254 52,391
154,926 129,058 37,174
2006 2007 2008 2009 2006 2007 2008 2009 2006 2007 2008 2009
Full Year data Nine Months data
16
Recent Financial Performance
Accounting Changes
Shift from PhP to US$ functional and reporting currency beginning
January 1, 2009 in accordance with PAS 21 – “The Effects of Change
in Foreign Exchange Rates”
Regrouping of geographic segments from Domestic and Foreign to
Asia, EMEA, and Americas in line with PFRS 8 – “Operating Segments”
Asia EMEA Americas
All Philippine ports Poland (BCT) Brazil (TSSA)
China (YRDICTL) Madagascar (MICTSL) Ecuador (CGSA)
Indonesia (PTMTS) Syria (TICT) Colombia (SPIA) - under development
Japan (NICTI) Georgia (BICTL) Argentina (TECPLATA) - under development
Brunei (NMCTS)
18
Revenue Profile By Currency
Revenue Currency by Subsidiary Revenue Breakdown by Currency
Subsidiaries USD/EUR Local Currency RMB Others (PLN,
1% JPY,IDR)
MICT 47% USD 53% PHP EUR 3%
7%
BCT 92% USD 8% PLN BRL USD
12% 50%
TSSA 100% BRL
MICTSL 100% EUR
PTMTS 100% IDR
YRDICTL 100% RMB
CGSA 100% USD PHP
BICTL 100% USD 27%
TICT 100% USD
SPIA*** 100% USD
NICTI 100% JPY
19
3Q09 Volume down 8% YoY
Volume by port (in TEU) Volume by segment
20%
59% 3Q 2007
21%
811,049 1,021,499 943,805
18%
3Q 2008
59% 23%
- 8%
189,436
12%
202,482 25% 3Q 2009
63%
98,939 148,213
98,962 32,746 161,665
34,486
27,626
28,482 89,675 46,747
67,814 37,820 A s ia A m e ric a s EM EA
126,156 70,934
135,106
59,869
ASIA terminals generated 63% of total volume in 3Q2009
354,120 400,787 364,288 vs 59% in 3Q2008; ASIA volume flattish
3Q2009 TEU volume from “BIG 5” ports - Manila, Brazil,
Poland, Madagascar, and Ecuador - down 13%; Accounted
3Q 2007 3Q 2008 3Q 2009
for 74% of consolidated volume
MICT (Manila) BCT (Poland) TSSA (Brazil)
MICTSL (Madagascar) YRDICT (China) CGSA (Ecuador) China volume up 43%; Syria volume up 46%
Others
20
9M09 Volume down 9% YoY
Volume by port (in TEU) Volume by segment
21%
65% 13% 9M 2007
2,095,798 2,776,973 2,533,951
-9%
445,187 18%
59% 23% 9M 2008
543,012
435,668
275,170
91563 12%
98,962 102,423 452,679 25%
99,366 63% 9M 2009
75,588 211,721
111863
182,978
92,622
344,749
173,731
366,857
163,056
A s ia A m e ric a s EM EA
ASIA terminals generated 63% of total volume in 9M2009 compared
1,145,662 to 59% in 9M2008; ASIA volume slightly down 1% YTD
996,877 996,988
9M2009 TEU volume from “BIG 5” ports - Manila, Brazil, Poland,
Madagascar, and Ecuador - down 16%; Accounted for 74% of
consolidated volume
9M 2007 9M 2008 9M 2009
MICT (Manila) BCT (Poland) TSSA (Brazil) China volume up 22% YTD; Syria volume up 45% YTD
MICTSL (Madagascar) YRDICT (China) CGSA (Ecuador)
21
Others
3Q09 Revenues 12% lower YoY
Revenues by port (in US$ ’000)
Average revenue yield/TEU
120 123
114 117
103 108 115
91,020 125,080 110,469 91
- 12%
8,822
2004 2005 2006 2007 2008 1Q 2Q 3Q
19,447 10,576 2009 2009 2009
1,373
3,812 8,812 23,265
10,953
18,986 1,624 Consolidated 3Q2009 average revenue yield per
6,356 8,569
TEU higher at US$117 vs US$115 in 2Q2009
15,146 16,827 14,876
AMERICAS terminals generated 35% of revenues in
5,638
14,467
3Q2009 vs 31% in 3Q2008; AMERICAS revenues
slightly down 0.8%
50,814
45,921
39,368 “BIG 5” ports - Manila, Brazil, Poland, Madagascar,
and Ecuador - revenues down 14%; Accounted for
89% of revenues in 3Q2009
3Q 2007 3Q 2008 3Q 2009
Ecuador terminal ranked second in revenue
MICT (Manila) BCT (Poland) TSSA (Brazil) contribution at 21% in 3Q2009
MICTSL (Madagascar) YRDICT (China) CGSA (Ecuador)
Others 22
9M09 Revenues 15% lower YoY
Revenues by port (in US$ ’000) Average revenue yield/TEU
120
118
114
225,160 352,253 299,254 103 108
91
20,462 -15%
58,194
25,471 2004 2005 2006 2007 2008 9M
3,610
2009
27,236
68,138
10,461
10,953 49,199
1,847 4,166 Consolidated 9M2009 average revenue yield per
16,601 21,262
45,078
TEU slightly lower at US$118 vs US$120 in YE2008
35,892 36,253
AMERICAS terminals generated 35% of gross
17,193
39,077 revenue in 9M2009 vs 30% in 9M2008; AMERICAS
revenues down 2.8% YTD
148,475
126,770 BIG 5” ports - Manila, Brazil, Poland, Madagascar,
110,329
and Ecuador - revenues down 18%; Accounted for
90% of revenues in 9M2009
9M 2007 9M 2008 9M 2009 Ecuador terminal ranked second in revenue
MICT (Manila) BCT (Poland) TSSA (Brazil) contribution at 23% in 9M2009
MICTSL (Madagascar) YRDICT (China) CGSA (Ecuador)
Others 23
Organic Volume from Port Operations
2,776,973 2,533,951
-13%
110,805
1,021,499 943,805 2,240,223
-16%
1,879,076
-8%
-
799,317
-13% 694,576
3Q 2008 3Q 2009 9M 2008 9M 2009
Existing New Terminals Big 5
Volume from existing terminals down 8% in 3Q2009; 13% lower in 9M2009
“BIG 5” ports - Manila, Brazil, Poland, Madagascar and Ecuador - volume down 13% in 3Q2009
and 16% in 9M2009
24
Organic Revenue from Port Operations
352,253 299,254
-17%
6,112
125,080 110,469 328,182
-18%
269,617
-13%
1,726
114,885
-15% 98,269
3Q 2008 3Q 2009 9M 2008 9M 2009
Existing New Terminals Big 5
Revenues from existing terminals down by 13% in 3Q2009; 17% lower in 9M2009
“BIG 5” ports - Manila, Brazil, Poland, Madagascar and Ecuador - revenues down 15% in 3Q2009
and 18% in 9M2009
25
3Q09 Consolidated P&L Highlights (in US$’000, except EPS)
3Q 2008 3Q 2009 % change
Revenues down 12% due to lower
Gross Revenues from
125,080
125,080 110,469
110,469 - 12% volume and US$ appreciation against
Port Operations emerging market currencies
Cash opex down 13% due mainly to lower
Cash Operating Expenses 52,607
52,607 45,612
45,612 - 13% levels of variable expenses associated with
contraction in volume and the Group’s cost
containment measures across its terminals
EBITDA 55,838
55,838 49,185
49,185 - 12% EBITDA down 12% due mainly to volume
contraction and US$ appreciation against
emerging market currencies
43,548 34,106 - 22%
EBIT 43,548 34,106
Financing charges and other expenses
Financing charges and 30,261 15,107 -50% down 50% mainly due to lower forex-related
30,261 15,107
other expenses charges
Net Income 13,637 13,507 - 1%
13,637 13,507
Net income down 5% due to the reduction in
Net Income Attributable to
14,700
14,700 14,012 - 5% provision for income tax and effective
Equity Holders 14,012 management of forex-related exposure.
Fully Diluted EPS 0.0074 0.0072 -4%
0.0074 0.0072
26
9M09 Consolidated P&L Highlights (in US$’000, except EPS)
9M 2008 9M 2009 % change
Revenues down 15% due to lower
Gross Revenues from
352,253
352,253 299,254
299,254 - 15% volume and US$ appreciation against
Port Operations emerging market currencies
Cash opex down 15% due mainly to lower levels
Cash Operating Expenses 150,482
150,482 128,409
128,409 - 15% of variable expenses associated with contraction
in volume and the Group’s cost containment
measures across its terminals
EBITDA 154,926
154,926 129,058
129,058 - 17% EBITDA down 17% due mainly to volume
contraction and US$ appreciation against
emerging market currencies
115,112 86,748 - 25%
EBIT 115,112 86,748
Financing charges and other expenses
Financing charges and 76,305 52,374 -31% down 31% mainly due to lower forex-related
76,305 52,374
other expenses charges
Net Income 49,246 35,264 - 28%
49,246 35,264
Net income down 29% due mainly to volume
Net Income Attributable to contraction, higher interest expense due to
52,391
52,391 37,174 - 29%
Equity Holders 37,174 higher debt level and US$ appreciation
against emerging market currencies.
Fully Diluted EPS 0.0265 0.0190 - 28%
0.0265 0.0190
27
Improving Q-o-Q Performance
In US$’000 except Volume, Yield/TEU, and EBITDA Margin
1Q 2009 2Q 2009 3Q 2009
755,958 10% 834,188 12%
Volume 755,958 834,188 943,805
943,805
Consolidated 123 6% 115 2%
123 115 117
117
Yield/TEU
Revenues 92,797
92,797 3% 95,988
95,988 15% 110,469
110,469
Cash Opex 41,918 2% 40,878 12% 45,612
41,918 40,878 45,612
EBITDA 38,381
38,381 8% 41,493
41,493 19% 49,185
49,185
EBITDA Margin 41.4%
41.4% 0.4% 43.2%
43.2% 3% 44.5%
44.5%
Net Income attributable 11,005
11,005 10% 12,157 15% 14,012
12,157 14,012
to Equity Holders
28
Liquidity and Capital Resources
Consolidated Balance Sheets
International Container Terminal Services, Inc. and Subsidiaries
September 30, 2009
September 30, 2009 December 2008
In USD '000 In USD '000 In Php '000
ASSETS
Noncurrent Assets
Property and equipment - net 305,555 274,146 13,027,414
Intangibles - net 601,833 562,547 26,732,230
Other noncurrent assets 116,360 115,039 5,466,672
Total noncurrent assets 1,023,748 951,732 45,226,316
Current Assets
Cash and cash equivalents 131,702 222,825 10,588,660
Other Current assets 79,507 67,620 3,213,260
Total Current assets 211,209 290,445 13,801,920
Total Assets 1,234,957 1,242,177 59,028,236
STOCKHOLDERS' EQUITY AND LIABILITIES
Stockholders' equity
Equity Attributable to Equity Holders of the Parent 432,426 398,694 18,930,666
Equity Attributable to Minority Interests 47,434 49,430 2,364,166
Total stockholders' equity 479,860 448,124 21,294,832
Noncurrent Liabilities
Long-term debt - net of current portion 391,128 421,100 20,010,668
Concession rights payable - net of current portion 189,298 204,667 9,725,778
Other noncurrent liabilities 37,766 34,130 1,621,822
Total noncurrent liabilities 618,192 659,897 31,358,268
Current Liabilities
Loans payable and current portion of long-term debt 38,854 36,944 1,755,566
Current portion of concession rights payable 17,414 19,585 930,662
Other current liabilities 80,637 77,627 3,688,908
Total current liabilities 136,905 134,156 6,375,136
30
Total Stockholders' equity and liabilities 1,234,957 1,242,177 59,028,236
Debt Maturity Profile
as of Dec 31, 2008 as of Sept 30, 2009
(in US$ million) (in US$ million)
300 300
250 250
200 200
150 150
100 100
50 50
0 0
CASH
2009 2010 2011 2012 2013 2014 2015 2016 CASH 2009 2010 2011 2012 2013 2014 2015 2016
LT Loans ST Loans Cash level LT Loans ST Loans Cash level
US$250M December 2010 Refinancing Risk eliminated
US$150M loan facility drawn June 2009 to complete refinancing requirement
Paid down US$174M outstanding from US$150M loan refinancing and cash holdings
No substantial debt repayment due until 2011
Principal payment profile can be covered by projected operating cash flow
31
Group Debt Profile (as of September 30, 2009)
Breakdown by Tenor Breakdown by Currency
11%
100% 8%
92.6%
80%
60%
40% 81%
20% US$ PhP RMB
7.4%
0%
Short Term Long Term
Breakdown by Entity
Long term debt comprises 92.6% of total debt; average life of 4.10 years 11%
3%
US$ debt comprises 81% of consolidated debt 2%
PhP debt comprises 8% of consolidated debt
RMB debt comprises 11% of consolidated debt
Parent level debt currently comprises 84% of total liabilities
84%
Parent TSSA BCT YRDICTL
32
Financial Highlights - Key Ratios
9M2009 YE2008
Yield per TEU (US$) 118 120
Profitability Ratios
Reported EBITDA Margin 43% 42%
Net Profit Margin 12% 14%
Leverage Ratios
Debt/Equity 0.90 1.02
Debt Cover Ratio: Debt*/EBITDA 2.69 2.66
Liquidity Ratios
Current Ratio: Current Asset/Current Liability 1.54 2.16
DSCR: EBITDA/(Interest + Finance Charges + Scheduled Principal Payments) 1.80 1.81
*Debt as defined in existing loan agreements.
33
2009 Capital Expenditure Plans
FY 2009 Capex estimated at PhP7.2B (US$147M)
only US$77M (52%) disbursed as of end-September 2009
MICT Berth 6 estimated at PhP2.5B (US$51M)
only US$17M (33%) disbursed as of end-September 2009
CGSA rehabilitation & new equipment estimated at PhP2.7B (US$55M)
on-track at US$45M (82%) disbursed as of end-September 2009
100% of Capex fully funded through existing cash and internally
generated funds
Cash balance 3Q2009 of US$132M – same as 2Q2009
Total loans of US$430M
Fully compliant with all loan covenants
Build-outs in Colombia and Argentina delayed
34
Outlook
Outlook
Notable improvement in 3Q2009 performance relative to
1Q2009 and 2Q2009
Yield per TEU slightly decreased to US$118 in 9M2009 from
average of US$120 in 2008
EBITDA Margins stable due to cost cutting
3Q2009 EBITDA Margin = 44.5% vs 44.6% in 3Q2008
9M2009 EBITDA Margin = 43.1% vs 44.0% in 9M2008
October 2009 performance continues to improve
36
Questions & Answers
Appendices
Terminal Summaries
MICT - Manila, Philippines
Manila International Container Terminal
Annual capacity of 1.9 million TEUs. Berth 6
expansion will increase annual capacity to 2.4 million
TEUs
MICT has a 65% market share for international
containers in the Port of Manila
Exclusively handles "end destination" cargo
Concession period until May 2038 (renewed in 2007
for another 25 years)
Fixed fee of US$313,756,000 payable over 100
quarterly installments (escalating schedule) and
variable fee of 12% of gross revenues from 1988 to
1990, 15% from 1991 to 1993, 17.5% from 1994 to
1996, and 20% from 1997 until the end of the Container throughput
concession. (TEUs)
1,513,543
Tariff regulated 1,372,251
1,213,109 1,198,875
9M 2009 YoY Update
-
Volume down 13% YoY from 1,145,662 TEUs to
996,988 TEUs. Accounted for 39% of Total Volume
1,145,662
in 9M2009. 996,988
Revenues decreased 15% from US$148.5M to
US$126.8M. Accounted for 42% of Total Revenue in
9M2009. 2005 2006 2007 2008 2009
39
TSSA - Suape, Brazil
Tecon Suape S.A.
Annual capacity of 400,000 TEUs
3-phase development plan
Take over Recife volumes
Become “relay hub” for Northeast Brazil
International trans-shipment
Concession period until April 2031
Fixed fee of BRL 8.2M adjusted yearly based on
IGPM (General Index of Market Prices) published
by Fundacao Getulio Vargas
Variable fee schedule per container type (in BRL)
Year Full Empty Transhipment
1-10 50 15 30 Container throughput
10-20 100 30 60 (TEUs)
21-30 200 60 120
294,383
Tariff not regulated
241,757
9M 2009 YoY Update 179,473
197,296
Volume down 18% YoY from 211,721 TEUs to -
173,731 TEUs. Accounted for 7% of Total Volume 211,721
173,731
in 9M2009.
Revenues decreased 26% from US$49.2M to
US$36.3M. Accounted for 12% of Total Revenue in 2005 2006 2007 2008 2009
9M2009. 40
BCT - Gdynia, Poland
Baltic Container Terminal Ltd.
Annual capacity of 700,000 TEUs
Largest container terminal in Poland
Exclusive focus on "end destination" cargo
Containerization rate in Poland well below
European average
Concession period until May 2023
EUR20M investment commitment over the first 8
years (already fulfilled)
Monthly lease rental of US$624,941; not subject
to inflation escalation, with no variable fees
Tariff not regulated Container throughput
(TEUs)
9M 2009 YoY Update
493,860
440,591
Volume down 53% YoY from 344,749 TEUs to 395,757
401,466
163,056 TEUs. Accounted for 6% of Total Volume
in 9M2009.
Revenues decreased 62% from US$45.1M to 344,749 -
US$17.2M. Accounted for 6% of Total Revenue in 163,056
9M2009.
2005 2006 2007 2008 2009
41
MICTSL - Toamasina, Madagascar
Madagascar International Container
Terminal Services Ltd.
Annual capacity of 220,000 TEUs
Commenced operations in October 2005
90% market share in Madagascar container market
Concession period until June 2025
Fixed fee schedule:
2005-2007 1.0M Euros
2008-2010 1.5M Euros
2011-2015 2.0M Euros
2016-2024 2.5M Euros
Variable fee of EUR 36.8 per TEU paid monthly.
Discount of 20% if 200K TEU is reached for the Container throughput
month (TEUs)
Tariff regulated; adjusted annually based on Euro 143,371
and Madagascar transport inflation escalators 112,427
92,496
9M 2009 YoY Update -
Volume down 10% YoY from 102,423 TEUs to
102,423 92,622
92,622. Accounted for 4% of Total Volume in 18,874
9M2009.
Revenues decreased 22% from US$27.2M to 2005 2006 2007 2008 2009
US$21.2M. Accounted for 7% of Total Revenue in
9M2009. Note: MICTSL started operations in October 2005
42
YRDICT - Yantai, China
Yantai Rising Dragon International
Container Terminals Ltd.
Annual capacity of 1,000,000 TEUs.
Acquired in March 2007 a 60% stake for PhP2,439
million (US$50.5 million); 40% partners are SDIC
Communications Co. and Yantai Port Group Co. Ltd.
Commenced operations in April 2007
Yantai port is one of the major coastal ports and ranks
13th in terms of port traffic and 11th in terms of container
traffic in China.
2 berths of total 730m length, depth of 14m, 6 Post-
Panamax quay cranes and 12 RTGs
Concession period until 2037 Container throughput
No port fees (TEUs)
Tariff regulated by Ministry of Transport 133,139
130,193
9M 2009 YoY Update
Volume up 22% YoY from 91,563 TEUs to 111,863
TEUs. Accounted for 4% of Total Volume in 9M2009. 111,863
91,563
Revenues increased 15% from US$3.6M to US$4.1M.
Accounted for 1% of Total Revenue in 9M2009.
2007 2008 2009
Note: YRDICT started operations in April 2007
43
CGSA - Guayaquil, Ecuador
Contecon Guayaquil S.A.
Annual capacity of 900,000 TEUs.
Commenced operations on August 1, 2007
20-year concession of the Container and Multipurpose
Terminal at the Port of Guayaquil
Concession period until 2027, renewable for another
20 years
Fixed fee of US$2.1M quarterly
Variable fee of US$10.4 per TEU and US$0.50 per ton
paid monthly
Tariff regulated Container throughput
(TEUs)
9M 2009 YoY Update
590,213
Volume up 4% YoY from 435,668 TEUs to 452,679
TEUs. Accounted for 18% of Total Volume in 9M2009. 262,155
Revenues increased 17% from US$58.2M to 435,668 452,679
US$68.1M. Accounted for 23% of Total Revenue in
9M2009.
2007 2008 2009
Note: CGSA started operations in August 1, 2007
44
TICT - Tartous, Syria
Tartous International Container Terminal , JSC
Annual capacity of 250,000 TEUs.
Commenced commercial operations on October 28,
2007
One of two international ports in Syria
First port in Syria to introduce foreign expertise
ICTSI plans to invest US$39 million on the
development of the container terminal over its lifetime
Concession period until November 2016, extendable
to 2021
Fixed fee of US$3.008M annually
Container throughput
Variable fee of US$11.48 per full TEU and US$5.74 (TEUs)
per empty TEU
Tariff regulated 40,607
9M 2009 YoY Update
40,550
Volume up 45% YoY from 28,002 TEUs to 40,550 5,525
28,002
TEUs. Accounted for 2% of Total Volume in 9M2009.
Revenues increased 53% from US$2.1M to US$3.1M.
2007 2008 2009
Accounted for 1% of Total Revenue in 9M2009.
Note: TICT started operations in October 2007
45
BICTL - Batumi, Georgia
Batumi International Container Terminal LLC .
Annual capacity of 150,000 TEUs
48-year lease agreement to develop and operate two
container berths and one ferry terminal
Commenced commercial operations on Nov 2, 2007
The Port of Batumi is considered one of the main
transportation trade points in the Black Sea basin.
Batumi is Georgia’s main port city.
Infrastructure includes a container terminal, rail ferry
terminal and a 181-meter general cargo berth
Fixed rental fee schedule: Container throughput
2007-2008 US$106,000 (TEUs)
2008-2009 US$205,000
2009-2010 US$494,000
44,197
2011-til expiry US$779,000
No variable fees
Tariff not regulated
29,732
9M 2009 YoY Update
6,526
Volume down 78% from 29,732 TEUs to 6,526 TEUs.
Accounted for 0.3% of Total Volume in 9M2009. 2008 2009
Note: BICTL started operations in November 2007
Revenue decreased 57% from US$3.8M to US$1.7M.
Accounted for 1% of Total Revenue in 9M2009. 46
SPIA - Buenaventura, Colombia
Sociedad Puerto Industrial Aguadulce , S.A.
Concluded agreements to commence development of a
new container terminal at the Port of Buenaventura,
Colombia in July 2007
Port of Buenaventura is located on the Pacific coast of
Colombia
Estimated annual capacity is 700,000 TEUs; Phase 1
capacity estimated at 500,000 TEUs
Concession period until 2037, renewable for another 30
years
Private terminal with no concession fees but with a $1.0M
per annum license fee
Tariff regulated
47
TECPLATA – La Plata, Argentina
TECPLATA S.A.
Geographical advantage – TECPLATA will be located at
the head waters of the River Santiago Este in the Port of
La Plata, which serves the Buenos Aires market
Strategic partner – have joined Loginter S.A. (Ricardo
Roman), who have valuable experience regarding the
port industry
Planned initial annual capacity of 400,000 TEUs
Capitalizes on expiration of existing concession in Puerto
Nuevo area
48
Appendices
IFRICs 4 & 12 Summaries
What are IFRIC 12 and IFRIC 4?
IFRIC 12 - Accounting for Service Concession Agreements
Do assets revert to port authority at end of concession?
Is the price of the services subject to regulation?
If “yes” to both, then IFRIC 12 applies
Otherwise, IFRIC 4 - Determining whether an Arrangement Contains a
Lease
Requires levelization of fixed concession fees for Income Statement purpose
Reclassification of fixed concession fees on Income Statement
50
IFRIC 4 vs IFRIC 12 at ICTSI’s Major Terminals
IFRIC 4 IFRIC 12
No FX Exposure Others
BCT (Poland) CGSA (Ecuador) MICT (Manila)
TSSA (Brazil) SBITC (Subic) MICTSL (Madagascar)
BICTL (Georgia) TICT (Syria)
SPIA (Colombia)
MICTSI (Misamis)
DIPSSCOR (Davao)
SCIPSI (Gen. Santos)
Note : YRDICT – out of scope of IFRIC 4 & 12
51
Summary Impact of IFRIC 12
Balance Sheet:
PPE reclassified to Intangible Assets
Present Value of future fixed concession fees capitalized as Intangible Assets
Present Value of future fixed concession fees also capitalized as a liability –
“Concession Rights Payable”
Income Statement:
Fixed concession fees reclassified from “Port Authorities share in Gross
Revenues” to:
• Amortization
• Accretion of Fixed Fees
Depreciation of PPE reclassified to Amortization expense
“EBITDA” increases due to reclassification of fixed concession fees from a
cash operating expense to Amortization and Accretion
Unrealized FX gains/losses can arise due to differences between local
reporting currency and currency of fixed fee payment
52
Appendices
Others
Revenues & Net Income by Segment (3Q)
Revenues (in US$‘000) Net income (in US$’000)
91,020 125,080 110,469 15,618 14,700 14,013
10%
17%
29% 31% 35%
30%
53%
37%
23% 22% 15%
60%
48% 47% 51% 46% 55%
-8%
3Q 2007 3Q 2008 3Q 2009 3Q 2007 3Q 2008 3Q 2009
ASIA EMEA AMERICAS 54
Revenues & Net Income by Segment (9M)
Revenues (in US$‘000) Net income (in US$’000)
225,160 352,253 299,254 43,000 52,391 37,174
15%
21% 25%
30%
35%
51%
25% 38%
22% 14% 32%
54% 51%
47% 46% 62%
43%
-13%
9M 2007 9M 2008 9M 2009 9M 2007 9M 2008 9M 2009
ASIA EMEA AMERICAS 55
1Q Traditionally the Weakest
VOLUME
40%
26% 26%
35%
30%
23% 25%
25%
20%
15%
10% 21% 24% 24% 23% 24% 25% 26% 24% 24% 25% 27% 25% 25% 26% 26% 26% 25% 27% 27% 25%
5%
0%
Q1 Q2 Q3 Q4
2004
REVENUE
40%
35%
25% 26% 26% 2005
30% 23%
25%
20%
15%
2006
10% 21% 23% 23% 23% 22% 24% 26% 24% 24% 25% 26% 26% 25% 27% 27% 27% 26% 28% 26% 26%
5%
0% 2007
Q1 Q2 Q3 Q4
2008
Quarter Average
EBITDA 26%
40% 28%
35%
25%
30% 21%
25%
20%
15%
10% 21% 21% 19% 23% 22% 27% 27% 21% 24% 25% 30% 27% 24% 29% 29% 22% 25% 37% 25% 23%
5%
0%
Q1 Q2 Q3 Q4
56
Container Volumes Reflect GDP Growth Trends
16%
14%
Avg. Container
12&
Growth = 9.1%
10%
8%
Avg. World GDP
6%
Growth = 2.8%
4%
2%
0%
2001
2003
2002
1993
1994
1992
2000
1981
1983
1984
1985
1986
1987
1988
1989
1990
1982
1999
1997
1991
1998
1995
1996
Container growth (%) World GDP growth (%)
Source: CSFB, Drewry Shipping Consultants
57
New Opportunities
1 Buenaventura, Colombia (SPIA) – Under Development
Buenaventura, Colombia (SPIA) – Under Development
2 La Plata, Argentina (TECPLATA) - Under Development
La Plata, Argentina (TECPLATA) - Under Development
3 Sydney, Australia - Bid Submitted
Sydney, Australia - Bid Submitted
4 Manzanillo, Mexico - Bid in Process
Manzanillo, Mexico - Bid in Process
5 African Opportunities
African Opportunities
Mombasa, Kenya
Mombasa, Kenya
Monrovia, Liberia
Monrovia, Liberia
Lagos/Tincan, Nigeria
Lagos/Tincan, Nigeria
Freetown, Sierra Leone
Freetown, Sierra Leone
58
