Upload
others
View
5
Download
1
Embed Size (px)
Citation preview
Unique asset for investment
Index
1. Introduction (3-11)
2. Competitive position and strategy
(12-30)
3. Recent developments and financial
results (31-39)
Presenters
3
Marko RaidCFO/Member of the Management Board
Marju ZirelHead of Investor Relations
Resilient infrastructure business model
DIVERSIFICATION PROFITABILITY CASH FLOW GENERATION
2018 Cash Conversion(2)2018 Revenue 2018 Adjusted EBITDA Margin
38%
32%
23%
7%
Passenger H Cargo H Ferry Other
€131m
46%58%
11%
57%49%
82%63%
81%
Airports Ports Ferry Airports Ports Ferry
STRONG DIVIDEND PROFILE
€31m 2009-2019 average annual dividend(3)
✓ €30m 2019-20 minimum annual dividend(5)
70% Minimum payout policy(4) from 2021
✓ ✓
Peers Average(1) Peers Average(1)
Source: Company. Factset.
Note: (1) Data sourced from company reports. Airports peers: Aena, AdP, Fraport, Flughafen Wien, Flughafen Zurich. Ports peers: GPH, NCSP, HHLA, Luka Kooper, Global Ports. Ferry peers: Tallink, Viking Line. (2) Calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA. (3) 2009-2019, Excludes 2018 paid dividend of €105m. (4) The
dividend policy excludes any one-off effects and is subject to market conditions, growth and development plans and the need to maintain a reasonable level of liquidity.
€35m Actual dividend paid in 2019
✓
4
Where we operate
ESTONIA
• Part of EU, eurozone, OECD and NATO
• Currency EUR
• Next door to Russia, Scandinavia, Baltics
• Stable credit rating outlook A1 (Moody’s) and AA- (S&P)
• Consistently lowest government debt level in EU
5
A Well Balanced Business ProfileBusiness segments
Passenger Harbours Cargo Harbours
FerryOther
• 10-year agreement for icebreaking with the Estonian Maritime Administration until Q2 2022 covering northern Estonian ports in winter
• Short term contracts for various maritime support operations from May to Nov
• Waste management through a 51% stake in Green Marine joint venture
Icebreaking (MPSV Botnica)
Waste Management
Shipping
• Ferry service between Estonian mainland and two of the largest islands
• Services provided on 2 routes with 5 ferries
• Additional trips on summer peak time
• 10-year service agreement with the Estonian Road Administration until Q3 2026
Provision of infrastructure for vessels and cargo operators
Liquid bulk, Ro-Ro, dry bulk, containers, general cargo, industrial parks
Muuga Harbour
• Main cargo harbour in Estonia
Paldiski South Harbour
• Estonian export-import, cars, outsized goods
Provision of infrastructure for vessels and servicing of passengers and vehicles
Old City Harbour (main)
• Lines serviced include: Tallinn – Helsinki, Tallinn – Stockholm, Tallinn – St. Petersburg
• Serving PAX vessels’ Ro-Ro cargo
• Cruise vessels
Saaremaa Harbour
• Cruise and dry bulk
6
Where we operateFROM HARBOURSTO VESSEL OPERATIONS Muuga Harbour
Old City Harbour
PaldiskiSouth Harbour
SaaremaaHarbour
Tallinn
Old City Marina
Ferry transfer to islands
Ice-breakerBotnica
Revenue Structure & Main Customers
Clients
Republic of Estonia
Ferry
38% 32%
23%7%
Revenue 2018
Republic of Estonia
Other
Botnica
Terminal operators Shipping lines
Cargo harbours
(2)
44%32%
18%6%
Adj. EBITDA 2018
Regular lines Cruise
Passenger harbours
8
Revenue modelPassenger harbours
55%
34%
3%3%4%
Rental Income• Fixed lease income from operators using PoT’s land premises
(commercial operators e.g. shops, restaurants)
Cargo Charges• Pre-agreed tariffs for ro-ro cargo carried on ROPAX vessels
Passenger Fees• Passenger fees per passenger based on public price list• Line and Cruise passenger fees are based on similar model, but
have different tariffs
Vessel Charges
• Tonnage charges based on gross tonnage separately for each call of the vessel based on public price list
• Waste fee based on vessel gross tonnage for each vessel call, in case of passenger ships for one call per day
• Mooring charge based on the gross tonnage of the vessel
Adjusted EBITDA
Revenue
2018 Contribution
CruiseKey Customers
Regular Lines
Cruise
38%
44%
9
Revenue modelCargo harbours
50%
14%
22%
12%
3% Sales of Electricity• Calculated based on the readings of customers electricity meters
Rental Income• Fixed lease income from operators using PoT’s land and facilities
Cargo Charges• Pre-agreed tariff based charges (volume x tariff = charge)• Cargo charges agreed separately from operator to operator• Contractual penalties if terminal operators fail to handle pre-
agreed minimum amounts of cargo
Vessel Charges
• Tonnage charges based on vessel gross tonnage
• Waste fee
• Mooring
Adjusted EBITDA
Revenue
2018 Contribution
32%
32%
CruiseKey Customers
Terminal Operators
Shipping Lines
10
Revenue modelFerry business
~ 50%
~ 30%
~ 20%
Voyage Fee• Coverage of flexible cost,
EUR/voyage• Indexed to fuel price (90%)
and CPI (10%)
Variable Fee• Coverage of fixed ope-
rating cost, EUR/year basis• Indexed to CPI (65%) and
the Estonian wage inflationindex (35%)
Fixed Fee• Coverage on capital and
interest cost, EUR/yearbasis
Adjusted EBITDA
Revenue
2018 Contribution
CruiseCustomer
23%
18%
State of Estonia
~ 60%
~ 40% Ticket Sales
Subsidy• Delta between
contract income and ticket sales
Means of Payments
ContractIncome
Contract Collection
11
Competitive position and strategy
4th biggest passenger port in Northen Europe
St. PetersburgSweden
Stockholm
Russia
Estonia
Tallinn
Finland
Helsinki
• 2h voyages to Helsinki 10-15x per day
• Mini-cruises to Stockholm
• Mini-cruises to St. Petersburg
• New Muuga-Vuosaari line 2019
• Ca 640 cruise ship calls
NorwayOslo
Belarus
Latvia
Lithuania
UK
Sweden
Finland
France
Estonia
Top 5 PAX Ports in Northern Europe in 2018 (millions)
9,1
10,6
11,8
12,1
12,1Helsinki
Stockholm
Dover
Calais
0,7
1
9
0
1
2
3
4
5
6
7
8
9
10
11
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Mill
ion
s
Tallinn-Helsinki
Tallinn-Stockholm
Tallinn-St. Petersburg
Cruise (trad.)
Other
10.6m
PAX: consecutive growth for 11 years
Natural monopoly
✓Blue chip customers
✓Resilient PAX flow
✓Cruise growth
✓
13
Cargo -change of business model
• Revenue resisting despite of downturn in volumes
• Less addicted to Russian transit
o 2007 – political conflict between Estonia and Russia
o 2012 – Ust-Luga port starts operations
o 2014 – sanctions for Russia, ship-terminal-ship model
Cargo volume and revenue
0
10
20
30
40
50
60
0
5
10
15
20
25
30
35
40
45
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Rev
enu
em
EU
R
volu
me
mln
to
ns
Liquid bulk Dry bulk General cargo Containers Ro-ro Cargo H revenue [R]
14
Restart in cargo
• A shift from East-West to North-South direction
• New operators and business models
• Cooperation with Helsinki and other ports
• EU TEN-T network connection
• China Belt and Road connection
• Digitalisation
Rail Baltica 2026 http://www.railbaltica.org/
15
MUUGA HARBOURNew projects, cargo operators and owners
Transiidikeskus → HHLA TK
(containers)
PK Terminal (dry bulk, break bulk)
Stivis→ Baltic Maritime
Logistics Group(dry bulk, break bulk)
Rail Baltica freight terminal,
in progress
MPG AgroProduction(oil seed complex),
in progress Bulk&Tank (dry bulk,
break bulk), in progress
Oiltanking→Olerex
(liquid bulk)
Vopak E.O.S.→Liwathon E.O.S.
(liquid bulk)
16
Ferry business
• Subsidiary TS Laevad
• Operating 5 vessels on 2 routes
• Agreement with the state until 2026
• Additional trips on summer peak-time
Saaremaa
Hiiumaa
Heltermaa
Rohuküla
KuivastuVirtsu
Estonia
Mainland
0,4
2,22,3
1,9
0,2
1,01,0
0,8
2,0 2,1
0,8 0,9
0
0,5
1
1,5
2
2,5
Growing service volumes (mln)
veichles (other)
PAX (other)
veichles (TS)
PAX (TS)
2,1
0,9
17
MPSV Botnica
• Subsidiary TS Shipping
• Agreement with the state for icebreaking in winter until 2022
• Summer charters (May-Nov):
o 2018-2022: Baffinland Iron Mines. Ice management and escort service for iron ore shipments from Baffin island.
o 2014: Karmorneftegaz(Rosneft+Exxon Mobile). Support of drilling campaign in the Kara Sea.
o 2013: NDE Offshore, Siemens. Air diving works in the North Sea renewables sector.
18
Maritime and logistics sector
VISION MEGATRENDS
Largervessels
Cost efficiency
Environmental requirements
Digitalisation and automation
Unmanned vessels
Client experience
Green port
Digital data exchange
Fully automated terminals and multimodality
19
Green port
• 93% of ship generated waste reused in the circular economy
• Waste water reception via pipeline from PAX ships
• On-shore Power Supply
• Auto-mooring system
• E-Nose system in Muuga
• LNG bunkering for ROPAX ships
• Silver quality label in CSR
• ISO 14001, EBRD standards20
Growth opportunities -
Passengers
• Line traffic development –Muuga-Vuosaari line
• Services for Asian clients
• Passenger terminals renovation
• Continuous growth in cruise -cruise terminal construction
• Service speed and quality - Smart Port and traffic management systems, auto-mooring
21
Growth opportunities -
Cargo
• Trade increase Scandinavia-Mediterranean (incl. Rail Baltica)
• Belt and Road (e-trade, distribution center)
• LNG and container goods market growth
• Increased cooperation and further digitalization of the logistics chain
• Available existing capacity for growth
22
Growth opportunities -
Shipping
Ferry service:
• 3rd ferry on Saaremaa line
• Efficiency of operations
• New routes
Icebreaking/offshore:
• MPSV Botnica summer charter(increasing demand)
23
Growth opportunities -
Real estate
Old City Harbour development plan Masterplan 2030+
• MOU with Tallinn City, detail plans in process
• Total build-up area of 460,000 gross m2
above ground (including 160,000m2 extension possibility by land reclamation)
Development of the industrial parks in Muuga (76ha) and Paldiski (34ha) and providing additional value
Prime Real Estate in the City Centre
Plot 2
Plot 1
Plot 3
Plot 5
Commercial use Commercial and Residential use
Old Town
Old City Harbour
Total land area of 16.2 ha
24
25
Old City Harbour „Masterplan 2030+“
Future vision by Zaha Hadid Architects
IPO 2018 success story12 500 shareholders
• First large scale IPO in the Baltics in 18 years
• Professional international team
• IPO volume €147m
• Oversubscribed more than 3X
• IPO 2018 won several regional awards as the IPO of the year
26
Trading of the shareListed on Nasdaq Baltic Main list
• In TOP3 most traded shares in the Baltics
• Stable shareholder structure
• Market capitalisation EUR 518 mln
• Free float 33%, i.e. 86.7 million shares
• Analyst coverage: Citi, ERSTE, Carnegie, SEB, Swedbank, LHV
• Analysts’ target price range EUR 2.2-2.4
800
850
900
950
1000
1,90
2,00
2,10
2,20
Share price (EUR)
TSM1T (L) OMXBBGI (R)
Estonian State
67% (67%)EBRD
4% (4%)
INT funds
11% (14%)
EST retail10% (7%)
EST PF&IF6% (6%)
BALTIC funds (LV, LT)
2% (2%)
*as at 30.09.2019 compared to 12.06.2018 in brackets27
Experienced Management and a Supportive Governance Framework
Management Board
To function as the maritime vehicle and the driver of strategic initiatives in the Estonian logistics sector
Strategic
FinancialTo operate efficiently and profitably in order to support stable and growing dividends
Transparency To set the standard for best-practice business culture
Main objectives of the state as majority shareholder:
Valdo Kalm CEO
Joined: 2016
Previously CEO of Eesti Telekom
Marko Raid CFO
Joined: 1997
Various managerial positions within PoT
Margus Vihman CCO
Joined: 2016
Several executive positions at various organisations
Aare TarkChairman of the Board
Üllar Jaaksoo Member of the Board
Ahti Kuningas Member of the Board
Urmas Kaarlep Member of the Board
Raigo Uukkivi Member of the Board
Maarika LiivamägiMember of the Board
Supervisory Board / Board of Directors4/6 independent members
Supervisory Board selected through a comprehensive and transparent selection process (Nomination Committee proposal) to ensure independent majority
✓INDEPENDENT INDEPENDENT
INDEPENDENT MINISTRY OF FINANCE
MINISTRY OF ECONOMIC AFFAIRS AND COMMUNICATION
INDEPENDENT
Good corporate governance. Silver label in CSR.✓
Excellent HSSE track record. ISO 9001 and 14001 compliance since 2003.✓
28
Substantial Cash Flow Generation
Strong Margins……with Major Investments
Completed in Recent Years…
Adjusted EBITDA(1) & Margin
Expected average annual capex 20-25 mEUR
Capex
€63 m €66 m €67 m
2015 2016 2017 2018
67% 64%55% 57%
€65m
€43m€36m
2015 2016 2017 2018
Ferries Other investments
€14m
Moderate EBITDA growth driven by shipping✓
Margin evolution driven by changing business mix✓
4 newbuild ferries, 1 used✓
Passenger terminal D✓
Upgrade of passenger quays✓
Old City Harbour traffic solution✓
Source: Company.
Note: (1) 2016 financial information has been restated to reflect the impact of new International Financial Reporting Standards applicable to the Company from FY 2017 onwards.
€74m
29
Dividend stockEquity story
• Expectations of the State as the majority shareholder for continuous stable dividends
DIVIDEND POLICY
• Min EUR 30M annually in 2019 and 2020
• starting 2021 at least 70% of net profit
• Dividend paid in 2019 EUR 35,242M(EUR 0,134 per share)
Income tax 20% or 14% ,gross-up, based on dividends
3135
48
105
35
0
20
40
60
80
100
120
2015 2016 2017 2018 2019
Dividends paid (mEUR)
30
Recent developments & financial results
• Vopak E.O.S. acquired by Liwathon
• PAX vessels maintenance in Q1 decline in PAX, vessel calls and revenues
• Additional ferry trips on Saaremaa line in summer
• MPSV Botnica charter for summer in Baffin island
• Dividend payment on 04.06.2019 (EUR 0.134 per share)
• New RO-PAX ship on Muuga-Vuosaari line by Eckerö and start of PAX service by Eckerö and Tallink
• New dry bulk and general cargo terminal in Muuga Harbour by PK Terminal
Latest highlightsIn 2019
32
Volumes
Cargo Volumeby cargo type
Number of Passengersby routes
7,4 8,8
5,15,3
4,13,9
1,91,90,60,6
0,0
5,0
10,0
15,0
20,0
25,0
2017 2018
Mill
ion
ton
s
FY 2017-2018
General cargo
Containers
Dry bulk
Ro-Ro
Liquid bulk
19,2+7,4%
20,6
4,3 4,0
2,7 2,7
1,8 2,0
1,0 0,90,3 0,4
0,0
2,0
4,0
6,0
8,0
10,0
12,0
2018 6M 2019 6M
Mill
ion
ton
s
6M 2018-2019 10,1-0,8%
10,0
8798 8797
1013 100983 85566 638100 90
0
2000
4000
6000
8000
10000
12000
2017 2018
Th
ou
san
d P
AX
FY 2017-2018
Other
Cruise
(traditional)Tallinn-
St.PetersburgTallinn-
StockholmTallinn-Helsinki
+0,6%10 560 10 619
4026 3968
491 41631 28244 24134 43
0
1000
2000
3000
4000
5000
6000
6M 2018 6M 2019T
ho
usa
nd
PA
X
6M 2018-2019 -2,7%4827 4697
33
Volumes 9M
Cargo Volumeby cargo type
Number of Passengersby routes
6,95,2
4,0
4,0
2,8
3,2
1,41,4
0,50,5
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
16,0
18,0
2018 9M 2019 9M
Mill
ion
ton
s
Liquid bulk Ro-Ro Dry bulk Containers General cargo
15.6-8.3%
14.3
6756 6747
793 71527 7863 59
624 64143 57
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2018 9M 2019 9M
Th
ou
san
d P
AX
Tallinn-Helsinki Tallinn-Stockholm Muuga-Vuosaari
Tallinn-St.Petersburg Cruise (traditional) Other
-0.1%8305 8297
34
Results of the Group
In thousands 2017 2018 +/- 6M 2018 6M 2019 +/-
Revenue 121 295 130 635 7.7% 62 166 61 350 -1.3%
Adjusted EBITDA 66 521 74 380 11.8% 35 695 35 706 0.0%
Adjusted EBITDA margin 54.8% 56.9% 2.1 57.4% 58.2% 0.8
Operating profit 40 317 52 075 29.2% 24 950 24 731 -0.9%
Income tax -11 955 -26 199 119.1% -26 250 -5 764 -78.0%
Profit/loss for the period 26 425 24 423 -7.6% -2 256 18 199 906.7%
Investments 35 847 14 251 -60.2% 5 190 11 070 113.3%
35
Cash Flow and Financial Position
In thousands 2018 6M 2019
Cash from operating activities 57 113 31 484
Cash used in investing activities -12 325 -10 159
Free cash flow (FCF) 44 788 21 325
Cash from/used in financing activities -9 179 -39 250
NET CASH FLOW 35 609 -17 925
NET DEBT (at the end of the period) 171 049 185 591
Cash Flow statement
43 25
8
12
573 572
214 210
42 48
368 351
0
100
200
300
400
500
600
700
31.12.18 31.12.18 30.06.19 30.06.19
Financial position
Cash Other current assetesNon-current assets DebtOther liabilities Equity
36
Revenue generation by segments
49,9 49,9
22,333,3 32,4
14,9
39,8 41,7
19,9
23,3 24,1
11,9
27,130,1
14,8
8,4 13
6,7
4,68,9
4,31,5
4,8
2,2
0
20
40
60
80
100
120
140
2017 2018 2019 - 6m 2017 2018 2019 - 6m
mEU
R
Other
Ferry
Cargo harbours
Passenger harbours
Revenue EBITDA
37
Results of the Group
Unit 2018 2017 %
Revenue EUR ‘000 130 635 121 295 7.7%
Operating profit EUR ‘000 52 075 40 317 29.2%
Adjusted EBITDA EUR ‘000 74 380 66 521 11.8%
Depreciation, amortisation and impairment
EUR ‘000 -22 345 -26 430 -15.5%
Income tax EUR ‘000 -26 199 -11 955 119.1%
Profit for the period EUR ‘000 24 423 26 425 -7.6%
Investments EUR ‘000 14 251 35 847 -60.2%
Number of employees (average)
496 508 -2.4%
Cargo volume t ‘000 20 608 19 182 7.4%
Number of passengers t ‘000 10 619 10 560 0.6%
Number of vessel calls 7 652 7 716 -0.8%
Unit 2018 2017 %
Total assets at period -end EUR ‘000 623 639 597 137 4.4%
Net debt at period -end EUR ‘000 171 049 228 646 -25.2%
Equity at period-end EUR ‘000 367 674 325 792 12.9%
Number of shares at period -end ‘000 263 000 185 203 42.0%
Operating profit/revenue 39.9% 33.2%
Adjusted EBITDA/revenue 56.9% 54.8% 2.1
Profit for the period/revenue 18.7% 21.8%
EPS: Profit for the period/weighted average number of shares
EUR 0.11 0.14 -25.1%
Equity/number of shares EUR 1.40 1.76 -20.5%
Profit for the period/total assets 3.9% 4.4%
Profit for the period/equity 6.6% 8.1%
Share price at period -end 2.04
P/E: Share price/earnings per share 19.1
38
AS Tallinna Sadam - Port services for passengers and cargo
OÜ TS Laevad100%
Ferry service to Saaremaa and Hiiumaa
OÜ TS Shipping 100%
Icebreaker Botnica charter
AS Green Marine51%
Waste management
Group companies
39
www.ts.ee•
investor.ts.ee•
portoftallinn
Thank You!