Disclosures for Confirmation With Legal Department

7/23/2019 Disclosures for Confirmation With Legal Department

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1.1 Port Operations

ICTSI and subsidiaries (collectively referred to as the Group entered into various concessionsof port operations !hich include develop"ent# "ana$e"ent# and operation of container ter"inals

and related facilities around the !orld. %s at &ove"ber '# )1*# the Group is involved in ')ter"inal concessions and port develop"ent pro+ects in ) countries !orld!ide. These are *operatin$ ter"inals in ei$ht ,ey ports and an inland container ter"inal in the Philippines# t!o inIndonesia and one each in -runei# China# the nited States of %"erica (.S.%.# /cuador# -ra0il#Poland# Geor$ia# ada$ascar# Croatia# Pa,istan# e2ico# 3onduras# Ira4 and %r$entina5 threeon$oin$ port develop"ent pro+ects in Colo"bia# Con$o and %ustralia5 a sub6concessiona$ree"ent to develop# "ana$e and operate a port in &i$eria5 and a recent ac4uisition of ane2istin$ concession to construct and operate a port in Tu2pan# e2ico. The e2pected start ofco""ercial operations of the on$oin$ pro+ects are 7uly )18 for Colo"bia# second half of )18for Con$o# and end of )18 for %ustralia. The construction of the ter"inal in &i$eria is e2pectedto start in )18 and is scheduled to co""ence initial operations in "iddle of )19.

Concessions for port operations and port develop"ent pro+ects entered into# rene!ed# ac4uiredand ter"inated by ICTSI and subsidiaries for the last t!o years are su""ari0ed belo!:

Puerto Corts in Honduras. On ;ebruary 1# )1'# ICTSI !on and !as a!arded the Contract forthe epublic of 3onduras actin$ throu$h the Co""ission for the Public6Private %lliance Pro"otion (CO%?I%&A%# a decentrali0ed le$al entity of the Presidency of the>epublic. The said %$ree"ent !as si$ned on arch 1# )1' and shall be valid until %u$ust ')#)B. OPC shall operate the Container and General Car$o Ter"inal of Puerto Cortes

(Ter"inal and it shall carry out the desi$n# financin$# construction# preservation# anddevelop"ent of the Ter"inal and the provision of its services accordin$ to certain service and

productivity levels.

In accordance !ith the %$ree"ent# OPC paid an upfront fee of S*.) "illion (D).) percentupon the e2ecution of the %$ree"ent and the re"ainin$ ').) percent in Septe"ber )1'. OPC isalso liable for "onthly pay"ents e4uivalent to B.) percent of its $ross inco"e to the unicipalityof Puerto Cort=s and ).'D percent of its annual $ross inco"e to the Trustee -an, in accordance!ith the provisions set forth in the ?e$al /2ecutive Order &u"ber )E6)1. ;urther"ore# OPCshall pay the &ational Port Co"pany the follo!in$: S1))#))) annually for each hectareoccupied of the e2istin$ surfaces5 SD*#))) annually for each hectare occupied of the ne!ly

built surfaces5 and certain variable fees based on container "oved# load# andFor passen$er that

uses the port. Such a"ounts shall be updated annually based on the for"ula a$reed by the partiesto the %$ree"ent. pon e2ecution of the %$ree"ent# OPC paid .) percent of the total of the>eferral Invest"ent to CO%?I%&A% in accordance !ith ?e$al /2ecutive Order &u"ber 1B'6)1) and a sin$le pay"ent to the Trustee -an,. OPC for"ally too, over the Ter"inal in

&ove"ber )1' and started co""ercial operations in


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Philippine Ports %uthority (PP% a fi2ed fee of S8)).) "illion payable in 1)) advanced4uarterly install"ents5 (ii pay annual fi2ed fee on stora$e and berthside operations ofP**.E "illion (appro2i"ately S1.' "illion5 (iii pay variable fee of ) percent of the $rossrevenue earned at ICT5 (iv up$rade# e2pand and develop the ICT# particularly theconstruction and develop"ent of -erth D5 (v continuously ali$n its ana$e"ent Infor"ationSyste" (IS !ith the IS of the PP% !ith the ob+ective to!ards paperless transaction andreportin$ syste"5 and (vi pay certain other fees based on the attain"ent of a$reed volu"e levels.

River Port, Matadi, Democratic Republic of Congo. On 7anuary '# )1B# ICTSI# throu$h itssubsidiary# ICTSI Cooperatief .%. (ICTSI Cooperatief# for$ed a business partnership !ith ?aSociete de Gestion I""obiliere ?en$o (SIO-I?/ for the establish"ent and for"ation of a

+oint venture co"pany# ICTSI Con$o S.%. (IC. IC# !hich is initially 8) percent6o!ned by ICTSI Cooperatief# !ill build a ne! ter"inal alon$ the river ban, of the Con$o >iverin atadi and "ana$e# develop and operate the sa"e as a container ter"inal# as !ell as providee2clusive container handlin$ services and $eneral car$o services therein.

The facility to be constructed in Phase 1 !ill consist of t!o berths that !illbe able to handle 1)#))) T/s and '*)#))) "etric tons. The capacity andberth len$th can# sub+ect to de"and# be doubled in Phase . Phase 1 ise2pected to be co"pleted !ithin 1E to B "onths fro" the start ofconstruction. The construction of the ter"inal co""enced in 7anuary )1*and is e2pected to start its initial operations in second half of )18.

mm !asr, Ira". ICTSI# throu$h its !holly o!ned subsidiary# ICTSI (./.


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Port of Melbourne, #ustralia. On ay # )1B# ICTSI# throu$h itssubsidiary in %ustralia# @ictoria International Container Ter"inal ?td.(@ICT# si$ned a contract in elbourne !ith Port of elbourne Corporation(POC for the desi$n# construction# co""issionin$# operation#

"aintainin$ and financin$ of the Kebb


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%antai, China. On 7uly 1# )1B# ICTSI# throu$h its subsidiary# ICTSI(3on$,on$ ?i"ited (I3N?# ac4uired *1 percent of the total e4uity interestof antai International Container Ter"inals# ?i"ited (ICT. On the sa"edate# ICTSI sold its 8) percent o!nership interest in antai >isin$


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+runei, Darussalam. On ay 1# ))9# ICTSI# throu$h &e! uara Container Ter"inal ServicesSdn -hd (&CTS# entered into an %$ree"ent !ith the Govern"ent for the operation and"aintenance of the uara Container Ter"inal in -runei ecruit"entPhilippine Peso

1)).)) Q 100.00 ICTSI Cooperatief The &etherlands 3oldin$ Co"pany S e$ional

3ead4uartersPhilippine Peso

Q 1)).)) 100.00ICTSI ?td. >e$ional Operatin$

3ead4uartersPhilippines >e$ional Operatin$

3ead4uartersS


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Percenta$e of O!nership

Place of &ature of ;unctional upee

Q 8B.*' 64.53-auan International Ports# Inc. (-IPI Philippines Port ana$e"ent Philippine Peso Q 8).)) 60.00

?GICT(b Philippines Port ana$e"ent Philippine Peso Q Q 60.00&aha International Container Ter"inal# Inc.

(&ICTI(,7apan Port ana$e"ent 7apanese en

8).)) Q ICT(e China Port ana$e"ent >en"inbi Q *1.)) 51.00South Cotabato Inte$rated Port Services#

Inc. (SCIPSIPhilippines Port ana$e"ent Philippine Peso

'*.D) 1B.'E 35.70 14.38%sia Pacific Port 3oldin$s Private ?td.

(%PP3(dSin$apore 3oldin$ Co"pany S


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On &ove"ber E# )1'# ICTSI and the other shareholders of Cebu International ContainerTer"inal# Inc. (CICTI (the Sellers entered into a conditional Share Purchase %$ree"ent (SP%!ith Cebu %sian >i" Property and


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i"pact on the Groups unaudited interi" condensed consolidated financial position and results ofoperations.

TICTOn


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ICTSI Ore$on

elations -oard (&?>- has sou$ht and obtained t!o federal court in+unctionsa$ainst the I?K prohibitin$ ille$al !or, stoppa$es as !ell as a findin$ of conte"pt of courta$ainst the union.

ICTSI Ore$ons federal court da"a$e clai" for unla!ful secondary activity a$ainst the I?K hasbeen stayed pendin$ co"pletion of ad"inistrative proceedin$s before the &?>-. ICTSI Ore$onsda"a$e clai" a$ainst the I?K is a substantial clai"# see,in$ a "ulti6"illion dollar +ud$"ent.This clai" is unli,ely to be tried in court for at least a couple of years.

ICTSI Ore$ons antitrust clai" a$ainst the I?K and P% !as dis"issed by the federal court.The +ud$e $ranted ICTSI Ore$on per"ission to appeal the dis"issal to the &inth Circuit Court of%ppeals. The appeal is pendin$ and !e are li,ely to obtain a decision in )18. If ICTSI Ore$on

prevails# its antitrust clai" !ill proceed before the trial court. nder federal la!# successfulantitrust plaintiffs "ay recover treble da"a$es.

%s !ith its clai" a$ainst the I?K for da"a$es caused by ille$al secondary activity# ICTSIOre$ons breach of fiduciary clai" a$ainst P% has been stayed by the federal court.

Documents

Disclosures for Confirmation With Legal Department