Presentation of the results of the OT Logistics Capital Group corresponding to the III quarter of November 2017

Transcription

1 Presentation of the results of the OT Logistics Capital Group corresponding to the III quarter of November 217

2 AGENDA KEY EVENTS FINANCIAL AND OPERATIONAL RESULTS PLANS FOR THE FUTURE SUMMARY

3 The most important information following the III quarter of 217 Financial results Luka Rijeka d.d. - Gaining control over the company - Increase in revenue by 22% y/y following 3 quarters - the effect of consolidation of new companies - Profitability of gross sales 1.2% following the III quarter of 217 Market - Consolidation of the results of the port with the results of the OT Logistics Capital Group since the end of September Increase of transshipments in the Croatian port following 9M by 27% y/y, with a significant increase in bulk transshipments Net profit for this period reached PLN 12.8 million - Revival in the transshipments of iron ore and coal - Delays in the harvest season affect the market of agro transshipments 3

4 Consolidation of results of new companies from the Capital Group Since the end of the III quarter the results of the Croatian port Luka Rijeka are being consolidated Since the first quarter of 217 results of newly acquired or established companies have been consolidated, companies which did not form part of the Group in that same period in 216 In the forwarding sector consolidation of the results of Sealand Logistics and C. Hartwig Adria has been started, and in the transport sector, that of the railway companies STK (along with its subsidiaries) and Kolej Bałtycka The consolidation and final settlement of the acquired assets had an impact on the increase of consolidated revenues and the results of the OT Logistics Capital Group The consolidation of new companies changed the structure of revenue in the sectors of operation of OTL 4

5 Main companies of the OT Logistics Capital Group by sectors PORTS TRANSPORT FORWARDING OT Port Gdynia Sp. z o.o. Deutsche Binnenreederei A.G. Retrans International Spedition Sp. z o.o. OT Port Świnoujście S.A. Żegluga Bydgoska Sp. z o.o. C. Hartwig Adria d.o.o. OT Port Wrocław Sp. z o.o. OT Rail Sp. z o.o. C. Hartwig Gdynia S.A.* Luka Rijeka d.d.* Kolej Bałtycka S.A. Sealand Logistics Sp. z o.o. STK S.A.* Rentrans Cargo Sp. z o.o.* OT Logistics S.A. * including subsidiaries and affiliated companies 5

6 AGENDA KEY EVENTS FINANCIAL AND OPERATIONAL RESULTS PLANS FOR THE FUTURE SUMMARY 6

7 Revenues in Q3 of 217 by sectors of operation Transport 36% of revenue Stable results of shipping companies Expected start of tenders for the high-margin hydro-engineering works GK Different OTL: Revenue margin structure structure [%] of railway companies changes profitability rates of the sector Forwarding 55% of revenue Growth despite prolonged maintenance shutdowns affecting customers Reduced influence of economic growth based on consumption Harbours 8% of revenue Higher volume of transshipments of ore and steel Coal market with slight increase following III quarter Delays in harvest, shifted season of trade of cereal and feedstuff 9% 1% Transport 8% 1% 33% Spedycja 36% Usługi Portowe 57% Pozostałe 55% Change in the structure of revenue in Q3 and increase of the share of the transport sector caused i.e. by the consolidation of new railway companies presented in the transport sector since Q

8 Financial results Q3 217 GK OTL: Revenue [PLNm] GK OTL: The result of EBITDA [PLNm] GK OTL: Net result [PLNm] 3 +18% % ,9 26,4 1 12,9 29, ,4 17,1 Growth of EBITDA by PLN million in Q3 through the consolidation of new companies and Luka Rijeka: Increase of revenue in Q3 due to the consolidation of revenue of STK, Kolej Bałtycka and Sealand Logistics Positive impact on EBITDA PLN +6.7 million Consolidation of Luka Rijeka increased EBITDA through recognition of gains from occasional acquisition (PLN +9.8 million due to provisional settlement as of the date of acquisition) Increase of net profit at consolidated level by PLN 18.5 million 8

9 Financial results 9 M 217 GK OTL: Revenue [PLNm] GK OTL: The result of EBITDA [PLNm] GK OTL: Net result [PLNm] 7 +22% 7 +45% % , 639, ,5 63, , 12,8 9M 216 9M 217 9M 216 9M 217 9M 216 9M 217 Increase of revenue following the 9M by PLN million as a result of consolidation of new companies Significant growth of EBITDA following 9M due to incorporating the results of new companies (PLN million) and consolidation of Luka Rijeka (PLN +9.8 million - gains from occasional acquisition) The result of consolidation visible in the increase of the net profit (PLN +9.8 million) 9

10 The result of the transport sector in Q3 217 Transport sector: Revenues (external entities) [PLNm] Transport sector: The result of EBITDA [PLNm] Transport sector: Margins [%] 1 +27% 2 +48% 2% Brutto EBITDA Netto ,5 74, ,6 12,7 15% 1% 5% 11,8% 1,4% 5,4% 13,4% 12,4% 1,8% % Transport sector: Net result [PLNm] Growing result of EBITDA in the transport sector due to consolidation of the companies STK and Kolej Bałtycka % 3,9 1,7 Allocating railway companies to the transport sector changes the structure of costs and margins (higher labour costs related to the employment of train operators, the costs of fuel and maintenance) The results were charged with general administration costs incurred during adaptation to the operation of the Capital Group Net result is affected by financial costs of leasing PLN 5.8 million (lease of rolling stock) and the reserve created following the accident in Smętowo 1

11 The result of the forwarding sector in Q3 217 Forwarding sector: Revenues (external entities) [PLNm] Forwarding sector: The result of EBITDA [PLNm] Forwarding sector: Margins [%] % 15 % 15% Brutto EBITDA Netto % ,1 112, ,2 5,2 9% 6% 3% 7,4% 4,9% 4,6% 4,2% 2,5% 1,3% % Forwarding sector: Net result [PLNm] 15 Increase of sales and margin, especially in air forwarding and container general cargo, continuing low freight rates in import from the Far East % 1,4 3,1 Stable results at EBITDA level despite charging Sealand with the costs of depreciation of the trademark as a result of the settlement of acquisition (ca. PLN 3.5 million in the period of 9M) Increase of the net profit (PLN 1.7 million) despite the negative impact of negative currency rates differences (in total PLN -1.4 million for 9M) 11

12 The result of the port sector in Q3 217 Port sector: Revenues (external entities) [PLNm] Port sector: The result of EBITDA [PLNm] Port sector: Margins [%] 2 +6% 15-65% 25% Brutto EBITDA Netto ,7 16, % 5% -5% 16,1% 9,% -1,6% 5,7% 3,2% 5 3 3,1 1,1-15% -25% -9,4% 5, 3, Port sector: Net result [PLNm] Greater transshipments of iron ore. Worse situation on the agro and cereal market in Europe, worse atmospheric conditions translate into worse and later harvest. Last year is the basis for comparison (particularly good situation in the agro market in 216). 1, -1, -3, -,5-3,2 The result burdened with the costs of investment in new warehouses, stacking yards and equipment (lease) with a simultaneous reduction of costs of external labour -5, Modernisation of the agro terminal in Świnoujście is underway, planned finalisation Q

13 The result of the port sector in Q3 217 Transshipments OT Port Gdynia [thousands tonnes] Transshipments OT Port Świnoujście [thousands tonnes] Transshipments Luka Rijeka [thousands tonnes] 1-31% 1 +15% 1 +2% , 562, ,1 82, , 513,5 9M 216 9M 217 Shifts in the harvest season affect the trade of cereals in the region Revival in the transshipments of iron ore by 17% in 3Q in Świnoujście Coal market under pressure, small export of coke from Poland Increase of Luka Rijeka transshipment volume following 9M 217 by 27% y/y to 1.9 million tonnes, mainly due to transshipments of coal and ore. 13

14 Acquisition of Luka Rijeka OT Logistics Group consolidates the results of Luka Rijeka from 3 September 217 EBITDA Luka Rijeka following 3Q 217 reached HRK 8.2 million (ca. PLN 4.6 million) with revenues amounting to HRK million HRK (ca. PLN 71 million), increase in HRK by 11% y/y. Shares of OT Logistics in the share capital of Luka Rijeka at 32.56% An agreement of shareholders results in the control over the port (56.61%) The results of acquisition of Luka Rijeka Announcement of the tender offer for 43.39% shares in Luka Rijeka P&L BALANCE PLN 9.8 million PLN 11.6 million PLN million gains from occasional acquisition gains from the revaluation of shares put option item operating revenue item financial revenue other liabilities/ other reserve capitals 2

15 AGENDA KEY EVENTS FINANCIAL AND OPERATIONAL RESULTS PLANS FOR THE FUTURE SUMMARY

16 What can shape the results of the Group in subsequent quarters? External factors Investments in infrastructure in Poland - the programme of construction of roads and highways Economic situation in the coal, steel and cereals market Seasonal variations in energy fuels supply Government investments in the revitalisation of waterways in Poland Increasing labour costs and the cost of fuel Modernisation of railway roads causing difficulties in transport Internal factors The influence of optimisation Taking advantage of synergies resulting from acquisitions; integrating railway companies Strengthening the competencies of the Commercial Department Construction of the agro terminal in Świnoujście, construction of the terminal in the Port in Gdańsk Taking over operational control over the port Luka Rijeka 16

17 Baltic-Adriatic Corridor and the Oder Waterway The plans of OT Logistics related to the development of the Baltic-Adriatic transport corridor in line with the EU guidelines regarding the development of European transport networks Ports and transport hubs of the OT Logistics Capital Group correspond to the plans of the Union of developing a Baltic-Adriatic transport network European guidelines provide for the integration of various types of transport: road, railway, inland waterway transport In September partners signed the Oder Declaration for the development of transport along the Oder river, among them Polish local government authorities, representatives of business and economic institutions Since July 217 barges belonging to OT Logistics Capital Group have carried coal to Wrocław from the port in Gliwice. A test cruise with fertilizers has been carried out from Kędzierzyn-Koźle to Szczecin. 17

18 Government plans - a support for the sector in which we operate Expected benefits from the planned and executed investments with the use of public funds supported with the funds from the European Union Poland acceding the AGN Convention in European Agreement on Main Inland Waterways of International Importance will enable it to obtain additional funds for modernisation of waterways PLN 17 billion - announced government investments in the programme of development of highways and expressways in Poland by 223 Ca. PLN 27 billion by 223 for the maintenance and renovation of railway in order to increase speed PLN 31.5 billion - the cost of investment in modernisation of the middle and lower section of the Vistula from Warsaw to Gdańsk PLN billion - the value of the investment in activating the Oder Waterway PLN 3 billion - Joint Polish and German project of dredging the Oder River and the associated hydro technical structures PLN 8 million - The investment involving a canal across the Vistula Spit PLN 61 million - planned investment of the Gdynia Sea Harbour in the reconstruction and development of port infrastructure between 215 and 217 PLN 4 billion - the programme of improvement of railway access to the Baltic Sea PLN 6 billion - Investments within the government development plan for inland waterways over the next 15 years Source: KPRM, MR, MGMiŻŚ, MIiB 18

19 An increase of demand of transport in Poland - Long-term forecasts Demand of rail transport [billion tkm] Demand of road transport [billion tkm] CAGR 1.8% CAGR 2.4% Demand of inland water transport [billion tkm] Demand of sea transport [billion tkm] 1,4 1,7 CAGR 6.1% 2, 3, CAGR 2.2% Source: MIR Strategy of development of transportation until 22, including a 23 perspective 19

20 AGENDA KEY EVENTS FINANCIAL AND OPERATIONAL RESULTS PLANS FOR THE FUTURE SUMMARY

21 Summary Due to the consolidation of new companies, for the first time the assets of OT Logistics Capital Group exceeded PLN 1 B. Taking over control over the port Luka Rijeka positively affected the results of the Capital Group. Transshipments in the Croatian port increased following 9M 217. Increase of share of the transport sector (consolidation of railway companies) Structure of margins in railway transport different than in the case of inland waterway transport Margins in the port sector under the pressure of the agro market situation Establishing in Poland the first in years regular river transport - the transport of coal Continuation of operation as part of the Group strategy (works on agro terminals in the ports of the Group, extending competencies and the scope of services for the transport of cereals) 21

22 Q&A Contact OT Logistics Monika Sadowska NBS Communications Maciej Szczepaniak

23 THANK YOU FOR YOUR ATTENTION