Presentation of the results of the OT Logistics Capital Group following the I quarter of May 2016

Transcription

1 Presentation of the results of the OT Logistics Capital Group following the I quarter of May 216

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

3 The most important information following the I quarter of 216 Financial results Further optimisation activities In 1Q 216 revenues came to PLN 176 million, net profit achieved ca. PLN 3 million. Positive cash flow PLN +21 million Gross sales profitability in the I quarter of % vs. 14.4% previous year Market Smaller demand in the market of coal and steel has a negative influence on port activities Optimisation of management, positive effects expected in 4Q 216 3

4 AGENDA KEY EVENTS FINANCIAL AND OPERATIONAL RESULTS PLANS FOR THE FUTURE SUMMARY APPENDICES 4

5 Revenues in 1Q, broken down by sectors of operation Transport 28% of revenue OT Logistics S.A., Deutsche Binnenreederei, OT Rail Forwarding 57% of revenue C. Hartwig Gdynia, Rentrans International Spedition, Rentrans Cargo Ports 11% of revenue OT Port Gdynia, OT Port Świnoujście Termination of current hydroengineering contracts, further investments in the revitalisation of waterways are expected An increase of the share of forwarding in revenues although downward customers pressure is greater Decrease of revenues from port activities due to the situation in the market of coal and steel GK OTL: Revenue structure [%] 17% 2% 29% 3% 11% 28% Transport Forwarding Port services 52% 57% Other 1Q 215 1Q 216 5

6 1Q Financial results GK OTL: Revenue [PLNm] , 176,3 A decrease in revenues mainly due to the result of port activities, negatively affected by the bad situation in the market of coal and steel The EBITDA result at a similar level as previous year, EBITDA profitability in IQ 216 at 9.8% vs 9.5% previous year Standardised net profit, after the elimination of one-off events, reached PLN 3.2 million GK OTL: The result of EBITDA [PLNm] GK OTL: Net result [PLNm] ,6 17,3 1 * standardised net profit 6,1 3.7* 3, 3.2* 6

7 1Q the effect of one-off events on the EBITDA result [tpln] ,3%

8 1Q The result of the transport sector Transport sector: Revenues (external entities) [PLNm] Transport sector: Margins [%] % 2 Brutto EBITDA Netto ,7 49,7 1 14,5 13,1 12,5 11,5 6 4,2 Transport sector: The result of EBITDA [PLNm] Transport sector: Net result [PLNm] % % ,4 6,8 5 4, 2,5 8

9 1Q The result of the forwarding sector Forwarding sector: Revenues (external entities) [PLNm] Forwarding sector: Margins [%] % 96,7 1, ,9 Brutto EBITDA Netto 6,5 3,6 2,5 1,5 2,8 Forwarding sector: The result of EBITDA [PLNm] Forwarding sector: Net result [PLNm] % % 2 1 2,8 4, ,6 3,3 9

10 1Q The result of the port sector Port sector: Revenues (external entities) [PLNm] Port sector: Margins [%] Brutto EBITDA Netto % ,8 2,1 1 21,4 2,8 16,7 18,4 7 7,3 Port sector: The result of EBITDA [PLNm] Port sector: Net result [PLNm] % 1-2.2% 5 7,6 7,9 5 3,2 3,1 1

11 1Q 216 The volume of transshipments in the Group s harbours in Poland Transshipments OT Port Gdynia [thousands tonnes] 14, 12, 1, 8, 6, 4, 2,, +21.% 693,4 84, The volume of transshipments in the harbour OT Port Gdynia increased by +21% with respect to 1Q thousand tonnes more of agro commodities were transshipped in the harbour of Gdynia Transshipments OT Port Świnoujście [thousands tonnes] % 1 17, , Despite a slight drop in transshipments, OT Port Świnoujście obtained higher margins and a high global result of its activities thanks to an advantageous combination of commodities 11

12 Optimisation activities within the Group Overview of staff in subsidiaries Consolidation of intercompany operating activities an increase of effectiveness, synergies Joining offices cost reduction, synergies Overview of subcontracting agreements in railway companies Organisation of the sales structure creating group structure Increase of the authority of Key Account Management better contract management at Group level Better connection of the budget for 216 with an incentive system for sales representatives and the KAM Activities aimed at increasing brand recognition Searching new business opportunities 12

13 Safe level of debt OT Logistics is an active participant of the bond market, so far we have issued bonds of the value of ca. PLN 221 million, of which ca. PLN 65 million were redeemed We are able to finance growth both through bank financing and by issuing bonds It is expected that debt ratios will remain at safe levels (debt/ebitda not higher than 4.) Net Debt/EBITDA Debt ratio [%] ,71 1,25 2,7 3, , 63, Q 215 1Q OT Logistics bonds with maturity date obligacje w PLN obligacje w EUR EURm 3 1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 13

14 AGENDA KEY EVENTS FINANCIAL AND OPERATIONAL RESULTS PLANS FOR THE FUTURE SUMMARY APPENDICES 14

15 What can shape the results of the Group in subsequent quarters? External factors Internal factors Economic situation in the coal and steel market Government investments in the revitalisation of waterways in Poland Optimisation synergies Potential acquisitions and the execution of the strategy: April 216 creation of the company C. Hartwig Adria in Croatia May 216 conditional agreement concerning the take over of Sealand Logistics 15

16 New strategy of development - where are we heading Capital Group OT Logistics in 221 Leader of transportation and logistics services in Central and Eastern Europe with an annual revenue of EUR 1 billion. 16

17 Visible first effects of the new strategy, expansion in Poland and the countries of the North-South Corridor The group concluded in may of current year a contingent agreement concerning the takeover of Sealand Logistics for at least PLN 51 million Expected results: Development of expertise and greater scale of operation in the container shipping sector The group established in Croatia the company C. Hartwig Adria Expected results: Expansion in the market of logistics services in the countries of the North- South corridor 17

18 Where are we heading within the next 5 years 1 2 Becoming number 1 in the handling of agricultural products within the Baltic Sea basin (excluding Russia) and the Adriatic Sea basin Market share in the market of agro transshipments in Polish harbours at 5% Doubling transshipments in Rijeka harbour 3 Developing port terminals 4 Developing inland and railway transportation by changing the service profile 5 Forwarding - becoming one of Poland's top 1 forwarders 5% share in container maritime forwarding The presence on the TFL (transport, forwarding, logistics) market in the countries of the North-South corridor 6 Building the position of Central European railway-forwarding operator through an organic growth and creating strategic alliances 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 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 PLN 17 billion - announced government investments in the programme of development of highways and expressways in Poland by 223 PLN 67.5 billion - planned investments in the development of national infrastructure by 23 PLN 6 billion - Investments planned within the government development plan for inland waterways over the next 15 years PLN 31.5 billion - 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 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 2

21 AGENDA KEY EVENTS FINANCIAL AND OPERATIONAL RESULTS PLANS FOR THE FUTURE SUMMARY APPENDICES 21

22 Summary Positive cash flow from operations (+ PLN 21 million) confirms the right direction of development OT Port Gdynia registered 1/5 more transshipments than the previous year The results of the Group are affected by an unfavourable situation in the market of steel and coal Optimisation activities will support the results of the Group in subsequent quarters The Group may be one of the biggest beneficiaries of the programmes of inland water transport support in Poland The Group has adopted a new strategy of growth which is to strengthen its position in the TSL sector in Poland and Europe 22

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

24 AGENDA KEY EVENTS FINANCIAL AND OPERATIONAL RESULTS PLANS FOR THE FUTURE SUMMARY APPENDICES 24

25 OT LOGISTICS in short 25

26 Management Board of OT Logistics S.A. Zbigniew Nowik, PhD, President of the Management Board Between Chairman of the Supervisory Board of OT Logistics S.A. Experience in the area of finance and management gained in international corporations. Graduate of the Université Paris-Dauphine (PhD in economic sciences) Within OT Logistics, responsible for planning strategic development of the Capital Group Piotr Ambrozowicz, PhD, Vice-President of the Management Board Broad skills and expertise in the area of development and increasing the value of enterprises, restructuring, acquisition, financing companies and managing an international team, gained i.e. in companies listed on the stock exchange In OT Logistics since 215, responsible for finance activities and development Ryszard Warzocha, Vice-President of the Management Board Since June 214, a proxy of the Board for Operational Affairs, since November 214 President of the Management Board of C. Hartwig Gdynia S.A., since September 215 Member of the Management Board of OT Logistics In OT Logistics since 215, responsible for commercial and operational activities 26

27 New functional scheme Of the OT Logistics Capital Group PRESIDENT OF THE MANAGEMENT BOARD SUPERVISORY BOARD VICE-PRESIDENT OF THE MANAGEMENT BOARD VICE-PRESIDENT OF THE MANAGEMENT BOARD DIVISION OF DEVELOPMENT AND FINANCE CORPORATE DIVISION OPERATION DIVISION Departments of accounting, payments, controlling and Stock Exchangeinformation, purchasing, administration and strategy Departments of audit, legal, communication, HR policy, quality, health and safety, IT Port Division - main GK OTL companies Inland Waterway Transport Division - main GK OTL companies Railway Division - main GK OTL companies Forwarding Division - main GK OTL companies COMMERCIAL DIVISION Departments: sales and marketing 27

28 THANK YOU FOR YOUR ATTENTION