Global Ports Investments PLC 2016 Interim Results …Definitions for terms marked in this...

Definitions for terms marked in this presentation with capital letters are provided in the Appendices at pages 27-281

Global Ports Investments PLC

2016 Interim ResultsPresentation

9 September 2016


Information contained in this presentation concerning Global Ports Investments PLC, a company organised and existing under the laws of Cyprus

(the “Company”, and together with its subsidiaries and joint ventures, “Global Ports” or the “Group”), is for general information purposes only. The

opinions presented herein are based on general information gathered at the time of writing and are subject to change without notice. The Company

relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness.

These materials may contain forward-looking statements regarding future events or the future financial performance of the Group. You can identify

forward looking statements by terms such as “expect”, “believe”, “estimate”, “anticipate”, “intend”, “will”, “could”, “may”, or “might”, the negative of

such terms or other similar expressions. These forward-looking statements include matters that are not historical facts and statements regarding the

Company’s and its shareholders’ intentions, beliefs or current expectations concerning, among other things, the Group’s results of operations,

financial condition, liquidity, prospects, growth, strategies, and the industry in which the Company operates. By their nature, forward-looking

statements involve risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the future.

The Company cautions you that forward-looking statements are not guarantees of future performance and that the Group’s actual results of

operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which the Company operates may differ

materially from those described in or suggested by the forward-looking statements contained in these materials. In addition, even if the Company’s

results of operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which the Company operates

are consistent with the forward-looking statements contained in these materials, those results or developments may not be indicative of results or

developments in future periods.

The Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the

occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in forward-looking

statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in

Russia, market change in the Russian transportation industry or particularly in the ports operation segment, as well as many other risks specifically

related to the Company and its operations.

These materials do not constitute an offer or an advertisement of any securities in any jurisdiction.

DISCLAIMER


Unless stated otherwise all financial information in this presentation is extracted from the Interim condensed consolidated financial information

(unaudited) for the six month period ended 30 June 2016 which is prepared in accordance with International Financial Reporting Standards adopted

by the European Union (“IFRS”) applicable to interim financial reporting (International Accounting Standard 34 “Interim Financial Reporting”).

The Global Ports Group’s Interim condensed consolidated financial information (unaudited) for the six month period ended 30 June 2016 is available

at the Global Ports Group’s corporate website (www.globalports.com).

The financial information is presented in US dollars, which is also the functional currency of the Company and certain other entities in the Group.

The functional currency of the Group’s operating companies for the periods under review was (a) for the Russian Ports segment, the Russian

rouble, (b) for the Oil Products Terminal segment and for the Finnish Ports segment, the Euro.

In this presentation the Group has used certain non-IFRS financial information as supplemental measures of the Group’s operating performance.

Such information is marked in this presentation with an asterisk {*}.

Information (including non-IFRS financial measures) requiring additional explanation or defining is marked with initial capital letters and the

explanations or definitions are provided at the end of this presentation.

Rounding adjustments have been made in calculating some of the financial and operational information included in this presentation. As a result,

numerical figures shown as totals in some tables may not be exact arithmetic aggregations of the figures that precede them.

Market share data has been calculated using the information published by the Association of Sea Commercial Ports (“ASOP”), www.morport.com,

Seabury Group LLC (“Seabury”) and Drewry Financial Research Services Ltd (“Drewry”).

REFERENCE TO ACCOUNTS AND OPERATIONAL INFORMATION

3


CONTENTS

4

PAGE

I. Global Ports at a glance 5

II. 1H 2016: Focus on cash flow and deleveraging 6

III. Container market: sluggish 1H 2016 volumes 7

IV. Container export growth is a sustained trend 8

V. Signs of improving consumer sentiment 9

VI. 1H 2016 Operating highlights 10

VII. 1H 2016 Financial highlights 11

VIII. Successful execution of financing strategy 12

IX. Focus on deleveraging 13

X. Commitment to core strategy 14

Appendix #1: Global Ports Group 15

Appendix #2: Selected operational and financial information 21


The #1 container terminal operator in Russia(1)

Strong presence in both key container gateways to Russia: Baltic and the Far Eastern basins

● 6 marine container terminals in the Baltic basin and 1 in Far East basin

Efficient, well invested terminals provide for low CAPEX requirements and high cash flow generation

Listed on the main market of the London Stock Exchange, free float of 20.5%(2)

● APM Terminals and N-Trans (each with 30.75% of total share capital) are the core strategic shareholders

● Adherence to best-in-class corporate governance

● Board of Directors with strong track record and deep understanding of the industry

GLOBAL PORTS AT A GLANCE

(1) Source: ASOP, based on 1H 2016 overall container throughput in the Russian Federation ports

(2) Of total share capital.

BALTIC BASIN

BLACK SEABASIN

FAR EASTERN BASIN

Vostochnaya

Stevedoring Company

MLT-Helsinki

MLT-Kotka

Vopak E.O.S. Ust-Luga

Container

Terminal

Moby Dik

First Container Terminal

Petrolesport

Logistika-Terminal

Yanino


1H 2016: FOCUS ON CASH FLOW AND DELEVERAGING

Strong cash flow

generation

Russian container market declined 2% year on year

Recent macro data indicates improving consumer sentiment

Global Ports’ market share was broadly stable during 1H 2016(1) following significant volume

leakage in 2H 2015 as the Group pursued disciplined commercial strategy

Sluggish market, recent

signs of macro

improvement

(1) Global Ports’ share in total marine container throughput in Russia was 34% in December 2015, 35% in 1Q16 and 34% in 2Q16

(2) Including derivative financial instruments

Key priorities

unchanged

Deleveraging

continued, debt

portfolio further

diversified

Net Debt(2) reduced by c. USD 40 million* in 1H16

Successful diversification of debt portfolio:

● Share of fixed rate borrowings increased to 71%

● Share of public debt increased to 51%

Core strategy of leveraging core assets, focus on efficiency and cash flow maintained

CAPEX to be maintained at the low level of USD 25-30 million* per annum over the next few

years

Continue to use strong free cash flow to deleverage

Global Ports’ container throughput declined 22% year on year resulting in lower revenue

Adjusted EBITDA of USD 111.5 million* (down 27%) with high conversion into Free Cash Flow

of USD 91.1 million*


3%1%

-2%-6%

-23%

-29%-27%

-24%

-5%

1%

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

CONTAINER MARKET: SLUGGISH 1H 2016 VOLUMES

2% decline of the Russian container market in the first

half driven by 3% decrease in laden imports

2Q 16 saw first container market y-o-y increase (+1%)

after 7 consecutive quarters of decline

Competition remains strong in an environment of low

capacity utilization

● Average capacity utilization was below 50% in 1H16

Source: ASOP

0,5 0,7

0,9 1,1

1,5

2,0

2,4

3,0

3,7

2,4

3,5

4,5 4,9

5,2 5,1

3,8

1,91 1,88

00

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

'13

'14

'15

1H

15

1H

16

Laden import

Russian container market

mln TEU

2014 2015 1H15 1H16

-31%

-3%

2.28

1.57

0.78 0.76

mln TEU

Russian container market quarterly dynamics

% YoY


2012 2013 2014 2015 1H16

CONTAINER EXPORT GROWTH IS A SUSTAINED TREND

2012 2013 2014 2015 1H15 1H16

Laden exports up 22% since 2012; +12% in 1H 2016

supported by ongoing containerisation and weak RUB

● Containerisation of export supply chains allows for

reduction of cargo losses; more flexibility and ability to

market small quantities (as little as one container) globally

Growth in exports balances Russian container flow

● Need to import empty containers is increasing the overall

market: import of empty containers was virtually non-

existent before rising to c. 9% of total import in 1H 2016

● Export is potentially more stable compared to volatile

imports

0.5x

- Laden export/total export ratio in Saint-Petersburg area(1)

Laden export of Russia, mln TEU per annum

0.4x0.4x

0.77 0.76

0.92

0.47

22%

Source: ASOP

(1) Saint-Petersburg and Ust-Luga

Growth in laden export is balancing Russian container market Laden export growth drives empty containers’ import

Export growth is a sustained trend

0.94

0.53

12%

0.7x0.8x

XX

15.6%

XX - Share of laden export in total market (%)

14.8% 18.0% 24.8% 28.4%

- Imports of empty containers dynamics, kTEUXX

XX - Share of empty container import in total import (%)

2012 2013 2014 2015 1H16

173233

71 72

1.5% 1.3% 0.8% 4.3% 8.7%


23,4%

20,8%

19,7%

Jan

-15

Fe

b-1

5

Ma

r-15

Ap

r-15

Ma

y-1

5

Jun

-15

Jul-1

5

Au

g-1

5

Se

p-1

5

Oct-

15

Nov-1

5

Dec-1

5

Jan

-16

Fe

b-1

6

Ma

r-16

Ap

r-16

Ma

y-1

6

Jun

-16

SIGNS OF IMPROVING CONSUMER SENTIMENT

Growth in real wages and number of mortgages for the first

time in last 18 months while household debt/income ratio

remains very low at less than 20%

Recent stabilization in macro environment may be catalyst

for further growth in the container market

● Container import is driven by consumption patterns

Containerisation levels in Russia are still very low vs.

international benchmarks

Russia Brazil World Turkey Europe USA

145

TEUs per 1000 capita

+454%

Growth potential to developed markets

+303%

Growth potential to European

developing markets

Low level of containerisation vs international benchmarks

4526

95106 111

Source: Drewry; some 2015 numbers are estimated

Real wages are already growing (% y-o-y)

Source: State Statistics Service

-8,4% -7,4%-3,6%

1,5%

-1,1%

1,1%

Jan

-15

Fe

b-1

5

Ma

r-15

Ap

r-15

May-1

5

Jun

-15

Jul-1

5

Au

g-1

5

Se

p-1

5

Oct-

15

Nov-1

5

Dec-1

5

Jan

-16

Fe

b-1

6

Ma

r-16

Ap

r-16

May-1

6

Jun

-16

Population can afford additional leverage

Source: CBR, State Statistics Service

Household debt/income (%)

Mortgages started to pick up

Source: CBR

-33% -43% -31% -26%

37% 37%

-36% -45% -34% -29%

47% 40%

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

Number of mortgages, % y-o-y

Value of mortgages in RUB, % y-o-y


1H 2016 OPERATING HIGHLIGHTS

Review of costs

Potential for

further

operational

efficiency

improvement at

terminals

Focus on administrative costs:

● Centralisation of functions

● Optimisation of office lease and other admin costs

Selling of underutilized equipment

Implementing best practices (pinning stations, vehicle pooling,

dual cycling, etc.)

Training for and enacting multi-tasking of roles

(1) Pro forma

CAPEX revision

CAPEX scaled down without compromising reliability

and safety

Relocation of assets within the Group (e.g. STS relocation from

PLP to VSC)

Focus on

additional

revenue streams

Bulk cargo throughput grew 79% driven by coal at VSC,

scrap metal and other bulk cargoes at PLP

Container throughput at inland terminals grew 58%

2013 2014 2015 1H15 1H16

Cash CAPEX, mln USD

4.723.6

-83%

70.0*(1)

11.7 4.6

-3%

1H 15 1H 161H 15 1H 16

525

939

Bulk cargo,

ths tonnes

58%

90

142

Inland container

throughput, ths TEU

79%


AdjustedEBITDA

Incometax

CAPEX Dividendsfrom JVs

Other FCF

3

1H 2016 FINANCIAL HIGHLIGHTS

Decline in volumes impacted revenues

Margin remained strong

High cash conversion

Revenue

Adjusted EBITDA and Adjusted EBITDA margin

Cash Conversion in 1H 2016

Revenue declined 24%* mainly driven by

decline in volumes and moderate decrease in

revenue per TEU

Volume decrease, focus on efficiency and

positive FX impact produced a 14%* reduction in

the Group’s Total Operating Cash Costs

Adjusted EBITDA margin remained at a high

level of 68%*

Adjusted EBITDA of USD 111.5 million*

Strong Free Cash Flow generation due to:

● Strong profitability

● Low CAPEX requirements

● Reliable customer base ensuring timely

collection of receivables

● Dividend flow from joint ventures

1H 15 1H 16

USD mln

214

164

-24%

1H 15 1H 16

153* 112*

-27%

72%* 68%*

USD mln

USD mln

112*

(22) (5)

3 91*


SUCCESSFUL EXECUTION OF FINANCING STRATEGY

Debt structure as of 30 June 2015 Debt structure as of 30 June 2016

71%

29%

Fixed Floating

100%

Public Banks

Strategy of diversification of financing sources and fixing of interest rates through entry to public debt markets

Three main transactions completed over last 12 months to refinance existing debt

● RUB 15 billion (c. USD 209 mln) of local bonds issued (swapped to USD)

● USD 215 million facility refinanced

● USD 350 million Eurobond issued

As a result, as of 30.06.2016 Global Ports had:

● Diversified financing sources with 51%* now from public debt markets

● Increased share of fixed rate borrowings to 71%*

● Reduced share of secured debt

51%

49%

Public Banks

5%

95%

Fixed Floating


30.06.2016 2H16 2017 2018 2019 2020

2013 2014 2015 1H16

FOCUS ON DELEVERAGING

Source: Company data

(1) Including derivative financial instruments

Net Debt(1) reduced by c. USD 40 million* in 1H16,

Since NCC acquisition at the end of 2013

● Total Debt(1) reduced by c. USD 336 million*

● Net Debt(1) reduced by c. USD 342 million*

As of 30.06.2016:

● Total Debt(1) amounted to USD 1,126.9 million*

● Net debt(1) amounted to USD 1,007.7 million*

Net Debt / LTM EBITDA at level of 4.0x* as of 30.06.2016

Consistent Net Debt(1) reduction

Debt maturity profile as of 30 June 2016

USD mln

USD mln

1208*

1008*

1350*

1048*

Cash &

Equivalents

LTM Net cash from

operating activity

329*

210

119

44*64*

157* 154*177*


COMMITMENT TO CORE STRATEGY

Efficiency and

cost control

Continuing to adjust to the macroeconomic environment: tight cost controls while maintaining

flexibility and ability to respond to market changes

Focus further on productivity improvement

Leverage core

assets and

existing

infrastructure

Focus on core (maritime) activity

Maximize value extraction from core assets

Maintain disciplined commercial strategy

Generate new revenue streams

Focus on cash

flow and

deleveraging

Preserve cash given capacity available across the portfolio

Well invested terminals enable scale down of CAPEX to USD 25-30 million per annum in the

mid term

Use strong Free Cash Flow for deleveraging

15

APPENDIX #1

Global Ports Group


STRONG POSITIONS IN KEY BASINS

RUSSIAFINLAND

ESTONIA

BALTIC SEAGULF OF FINLAND

Ust-Luga

Container

Terminal

First Container

Terminal

PetrolesportMoby Dik

RUSSIA

CHINA

SEA OF

JAPAN

Vostochnaya

Stevedoring Company

MoscowSt. Petersburg

Nakhodka

Black Sea Basin

18% of Russia’s

container traffic

Shanghai

Baltic Basin

Key entry gateway to Russia

Excellent maritime access to key

consumption areas St. Petersburg

and Moscow

The cheapest route to deliver cargo

from China to European part of

Russia(1)

Far East Basin

Supplying Russian Far East, CIS

countries (Kazakhstan, Tajikistan,

Uzbekistan) as well as central

Russia (including Moscow)

The fastest route to ship cargoes

from China to Moscow: up to 15-

20 days faster than via the Baltic

Basin (1)

Baltic Basin

54% of Russia’s container

traffic

Far East Basin

24% of Russia’s

container traffic

VEOS

MLT Helsinki

MLT Kotka

Source: Based on 1H 2016 market data by ASOP

(1) Company estimate based on public sources


WELL INVESTED CONTAINER TERMINALS IN KEY GATEWAYS

Black Sea Basin19% of Russian market 1H16 throughput

Russia

• Capacity: 440 ths. TEU

NCSP

Novorossiysk

Black

Sea

Turkey


NUTEP

Baltic Sea Basin 54% of Russian market 1H16 throughput

Far East Basin24% of Russian market 1H16 throughput


VSC


VMTP

Vladivostok

Okhotsk

Sea

Russia

ChinaRussia

Finnish transit

Baltic countries’ transit


Moby Dik

• Capacity: 1,000 ths. TEU

PLP

St. Petersburg

Region

Estonia

Latvia

Kaliningrad

Region

Baltic Sea

Lithuania


Ust-Luga


BSC and Kaliningrad SCP

• Capacity: 1,250 ths. TEU

FCT


CT St-Petersburg

Moscow

Finland

Other terminals


Bronka

• Capacity(1): 500 ths. TEU

Source: Drewry, open sources, Company analysis

Note: Gross container handling capacity with respect to container terminals of the Group as at 30 June 2016

(1) Source: Vedomosti as at 19.06.2015


BEST-IN-CLASS CORPORATE GOVERNANCE ON A PAR WITH THE HIGHEST INTERNATIONAL STANDARDS

Public company listed at main board of LSE: best practice

corporate governance standards established since inception in

2008 (further revision in 2012 and 2015)

● Quick and un-bureaucratic decision making processes

● Proper split of responsibilities between head office and

terminal management

Strong Board of Directors:

● People with diverse backgrounds and with vast industry

expertise

● Experienced and reputable INEDs chairing Nominations,

Remuneration and Audit and Risk committees

Capt. Bryan Smith

Senior INED

Chairman of

Nominations and

Remuneration

committees

Siobhan Walker

INED

Chairman of Audit and

Risk committee

Corporate governance structure

Board of

Directors

General Meeting of Shareholders

Nomination

Committee

Remuneration

Committee

Vladislav Baumgertner

Chief Executive Officer

Audit and Risk

Committee

Internal

Auditor

Key Executive Management(1)

Mikhail Loganov

Chief Financial Officer

Evgeny Zaltsman

Head of Business

Development

Vasily Shultsev

Chief Commercial

Officer

Doug Smith

Chief Operating Officer

Terminals Management

Corporate governance highlights

(1) Global Ports Management LLC, Russia


112*

91 *

EBITDA Free Cash Flow

4.0x*

- Net Debt / LTM EBITDA

PRINCIPLES OF IFRS CONSOLIDATION

Fully consolidated Accounted using equity method

Vopak EOS is a JV with Royal Vopak (Netherlands),

other JVs are with Container Finance (Finland)

Key contributors are large terminals FCT, PLP and VSC

20% of ULCT owned by Eurogate GmbH, shown as non-

controlling interest in GPI’s financial statements

mln USD, 1H16 X.Xx

23*

8*

13*

EBITDA Free Cash Flow

GPI's share in Free Cash Flow0.5x*

mln USD, 1H16

20*

100% 80%100%100% 100% 75% 75% 75% 50%

VEOSMulti-Link

TerminalsYaninoFCT PLP ULCT Moby DikLTVSC

- Net Debt / LTM EBITDAX.Xx


OTHER SEGMENTS

Vopak E.O.S. Finnish Ports segment

Throughput, mln tons

3.3*

1.6*

-51%*

51

38

-25%*

20*

13*

-37%*

1H15

1H16

128*

1.8*

9.7

123*

8.6

1.5*

-4%*

-12%*

-16%*

Revenue, USDm Adjusted EBITDA

(USDm) and Adjusted

EBITDA margin (%)

Focus on storage and accumulation of large shipments,

utilising the unique features of the tank farm consisting of

78 tanks of different sizes

Market environment remains challenging

Due to mandatory adoption of IFRS 11 from January 1st 2014, Vopak E.O.S., Finnish Ports segment (as well as Moby Dik and Yanino

included in the Russian Ports segment) are consolidated using the equity method of accounting and their proportional share of net

profit is reported below EBITDA

38.9%* 32.8%*

Finnish Ports segment throughput decreased by 4%*

Revenues decreased by 12%, Adjusted EBITDA by 16%*

18.1%* 17.2%*

1H15

1H16

Throughput, thousand TEU Revenue, USDm Adjusted EBITDA

(USDm) and Adjusted

EBITDA margin (%)

21

APPENDIX #2

Selected operational and financial information


SELECTED OPERATIONAL INFORMATION(1)

(1) Data is on a 100% basis. Source: Management accounts

(2) Total throughput of Russian Ports excludes the throughput of Yanino which in 1H15 and 1H16 was 53 thousand TEUs and 57 thousand TEUs respectively and the throughput of LT which in 1H15 and 1H16 was 37 thousand TEUs and 85

thousand TEUs respectively

1H 2015 1H 2016 1H 2015 1H 2016

Gross throughput Gross throughput

Russian Ports segment Finnish Ports segment

Containerised cargo

(thousand TEUs)

PLP 218 145Containerised cargo (thousand

TEUs)128 123

VSC 193 142

Moby Dik 81 73

FCT 304 251 Oil Products Terminal segment

ULCT 39 37

Total Russian Ports segment(2) 834 647Oil products Gross Throughput

(million tonnes)3.3 1.6

Non-containerised cargo

Ro-ro (thousand units) 6 7

Cars (thousand units) 56 46

Bulk cargo (thousand tonnes) 525 939


SELECTED OPERATIONAL INFORMATION (CONTINUED)

Source: Management Accounts

1H 2016 1H 2016

Capacity (end of the period)

Russian Ports segment Finnish Ports segment

Russian Marine Container Terminal Capacity

Annual container handling capacity

(Thousand TEUs)

PLP 1,000 MLT Kotka 270

VSC 650 MLT Helsinki 150

Moby Dik 400 Total 420

FCT 1,250

ULCT 440

Total Global Ports 3,740

Yanino, inland container terminal


(Thousand TEUs)200

Annual general cargo capacity (Thousand tonnes) 400 Oil Products Terminal Segment

LT, inland container terminal Storage Capacity (in thousand cbm) 1,052


(Thousand TEUs)200


GLOBAL PORTS CONSOLIDATED INCOME STATEMENT

Source: Global Ports consolidated financial statements

Summary Income Statement

USD million 1H 2015 1H 2016

Revenue 214.3 163.7

Cost of sales (116.3) (55.1)

Gross profit 98.1 108.6

Administrative, selling and marketing expenses (21.4) (19.4)

Share of profit/(loss) of joint ventures 4.5 2.2

Other (losses)/gains – net (7.0) (31.3)

Operating profit 74.2 60.2

Finance income/(costs) – net (29.0) 92.6

Profit before income tax 45.2 152.9

Income tax expense (19.8) (39.4)

Profit for the period 25.4 113.4

Profit attributable to:

Owners of the Company 37.7 113.3

Adjusted EBITDA* 153.4 111.5

Adjusted EBITDA Margin* 71.6% 68.1%


GLOBAL PORTS CONSOLIDATED BALANCE SHEET


Summary Balance Sheet

USD million 31-Dec-15 30-June-16

PP&E (incl. prepayments) 502.5 557.2

Intangible assets 622.7 699.5

Derivative financial instruments - 11.3

Other non-current assets 235.1 233.3

Cash and equivalents 123.1 119.2

Other current assets 36.3 63.9

Total assets 1,519.8 1,684.4

Equity attributable to the owners of the Company 158.7 315.9

Minority interest 13.2 15.1

LT borrowings 1,062.4 1,058.7

Derivative financial instruments 5.4 2.5

Other non-current liabilities 149.9 169.0

ST borrowings 103.0 93.0

Other current liabilities 27.2 30.3

Total equity and liabilities 1,519.8 1,684.4


GLOBAL PORTS CONSOLIDATED CASH FLOW STATEMENT


Summary Cash Flow Statement

USD million 1H 2015 1H 2016

Cash generated from operations 153.4 114.3

Dividends received from joint ventures 7.5 3.2

Tax paid (27.0) (21.9)

Net cash from operating activities 134.0 95.7

Cash flow from investing activities

Purchases of intangible assets (0.1) (0.1)

Purchases of property, plant and equipment (4.7) (4.6)

Proceeds from sale of property, plant and equipment 3.4 0.3

Loans granted to related parties (3.5) (7.0)

Loans repayments received 0.3 0.4

Other 1.0 0.4

Net cash used in investing activities (3.6) (10.5)

Cash flow from financing activities

Net cash outflows from borrowings and financial leases (55.3) (50.7)

Interest paid (35.9) (33.5)

Net cash from/(used) in financing activities (91.3) (84.2)


DEFINITIONSAdjusted EBITDA (a non-IFRS financial measure) for Global Ports Group is defined as profit for the period before income tax expense, finance costs—net, depreciation of property, plant and

equipment, amortisation of intangible assets, share of (loss)/profit of joint ventures accounted for using the equity method, other gains/(losses)—net and impairment of goodwill and property, plant and

equipment;

Adjusted EBITDA Margin (a non-IFRS financial measure) is calculated as Adjusted EBITDA divided by revenue, expressed as a percentage;

Baltic Sea Basin is the geographic region of northwest Russia, Estonia and Finland surrounding the Gulf of Finland on the eastern Baltic Sea, including St. Petersburg, Tallinn, Helsinki and Kotka;

Container Throughput in the Russian Federation Ports is defined as total container throughput of the ports located in the Russian Federation, excluding half of cabotage cargo volumes. Respective

information is sourced from ASOP (“Association of Sea Commercial Ports”, www.morport.com);

Cash Costs of Sales (a non-IFRS financial measure) is defined as cost of sales, adjusted for depreciation and impairment of property, plant and equipment, amortisation of intangible assets;

Cash Administrative, Selling and Marketing expenses (a non-IFRS financial measure) is defined as administrative, selling and marketing expenses, adjusted for depreciation and impairment of

property, plant and equipment, amortisation of intangible assets;

CD Holding group consists of Yanino Logistics Park (an inland terminal in the vicinity of St-Petersburg), CD Holding and some other entities. The results of CD Holding group are accounted in the

Global Ports’ financial information using the equity method of accounting;

First Container Terminal (FCT) is located in the St. Petersburg harbour, Russia’s primary gateway for container cargo. The Global Ports Group owns a 100% effective ownership interest in FCT. The

results of FCT are fully consolidated;

Finnish Ports segment consists of two terminals in Finland, MLT Kotka and MLT Helsinki (in port of Vuosaari), in each of which Container Finance currently has a 25% effective ownership interest. The

results of the Finnish Ports segment are accounted for in the Global Ports’ financial information using the equity method of accounting (proportionate share of net profit shown below EBITDA);

Free Cash Flow is calculated as Net cash from operating activities less Purchase of PPE;

Functional Currency is defined as the currency of the primary economic environment in which the entity operates. The functional currency of the Company and certain other entities in the Global Ports

Group is US dollars. The functional currency of the Global Ports Group’s operating companies for the years under review was (a) for the Russian Ports segment, the Russian Rouble and (b) for the Oil

Products Terminal segment, and for the Finnish Ports segment, the Euro;

Gross Container Throughput represents total container throughput of a Group’s terminal or a Group’s operating segment shown on a 100% basis. For the Russian Ports segment it excludes the

container throughput of the Group’s inland container terminals, Yanino and Logistika Terminal;

Gross Profit Margin (a non-IFRS financial measure) is calculated as Gross Profit divided by revenue, expressed as a percentage.

Logistika Terminal (LT) is an inland container terminal providing a comprehensive range of container freight station and dry port services at one location. The terminal is located to the side of the St.

Petersburg - Moscow road, approximately 17 kilometres from FCT and operates in the Shushary industrial cluster. The Global Ports Group owns a 100% effective ownership interest in LT. The results of

LT are fully consolidated;

MLT group consists of Moby Dik (a terminal in the vicinity of St-Petersburg) and Multi-Link Terminals Oy (terminal operator in Vuosaari (near Helsinki, Finland) and Kotka, Finland). The results of MLT

group are accounted for in the Global Ports’ financial information using the equity method of accounting (proportionate share of net profit shown below EBITDA);

Moby Dik (MD) is located in Kronshtadt on the St. Petersburg ring road, approximately 30 kilometers from St. Petersburg, at the entry point of the St. Petersburg channel. It is the only container terminal

in Kronstadt. The Global Ports Group owns a 75% effective ownership interest in MD, Container Finance LTD currently has a 25% effective ownership interest. The results of MD are accounted for in

the Global Ports’ financial information using the equity method of accounting (proportionate share of net profit shown below EBITDA);

Net Debt (a non-IFRS financial measure) is defined as the sum of current borrowings, non-current borrowings and derivative financial instruments less cash and cash equivalents and bank deposits with

maturity over 90 days;


DEFINITIONSOil Products Terminal segment consists of the Group’s 50% ownership interest in Vopak E.O.S. (in which Royal Vopak currently has a 50% effective ownership interest). The results of the Oil

Products Terminal segment are consolidated in the Global Ports’ financial information using the equity method of accounting (proportionate share of net profit shown below EBITDA);

Operating Cash Costs of Russian Ports is defined as the total of the Russian Ports segment’s cost of sales and administrative, selling and marketing expenses, less the segment’s depreciation and

impairment of property, plant and equipment, less amortisation of intangible assets, a non-IFRS measure;

Operating Profit Adjusted For Impairment (a non-IFRS financial measure) is calculated as Operating Profit plus impairment of property, plant and equipment.

Petrolesport (PLP) is located in the St. Petersburg harbour, Russia’s primary gateway for container cargo. The Group owns a 100% effective ownership interest in PLP. The results of PLP are fully

consolidated;

Profit For The Period Adjusted For Impairment (a non-IFRS financial measure) is calculated as Profit For The Period plus impairment of property, plant and equipment.

Ro-Ro, roll on-roll off is cargo that can be driven into the belly of a ship rather than lifted aboard. Includes cars, buses, trucks and other vehicles;

Russian Baltic Basin is the geographic region of northwest Russia surrounding the Gulf of Finland on the eastern Baltic Sea, including St. Petersburg and Ust-Luga.

Russian Far Eastern Basin is the geographic region of southeast Russia, surrounding the Peter the Great Gulf, including Vladivostok and the Nakhodka Gulf, including Nakhodka on the Sea of Japan.

Russian Ports segment consists of the Global Ports Group’s interests in PLP (100%), VSC (100%), FCT (100%), ULCT (80%) (in which Eurogate currently has a 20% effective ownership interest),

Moby Dik (75%), Yanino (75%) (in each of Moby Dik and Yanino Container Finance currently has a 25% effective ownership interest), and Logistika Terminal (100%) and some other entities. The results

of Moby Dik and Yanino are accounted for in the Global Ports’ condensed consolidated financial information using the equity method of accounting (proportionate share of net profit shown below

EBITDA);

TEU is defined as twenty-foot equivalent unit, which is the standard container used worldwide as the uniform measure of container capacity; a TEU is 20 feet (6.06 metres) long and eight feet (2.44

metres) wide and tall;

Total Operating Cash Costs (a non-IFRS financial measure) is defined as Global Ports Group’s cost of sales, administrative, selling and marketing expenses, less depreciation and impairment of

property, plant and equipment, less amortisation of intangible assets, a non-IFRS measure;

Ust Luga Container Terminal (ULCT) is located in the large multi-purpose Ust-Luga port cluster on the Baltic Sea, approximately 100 kilometres westwards from St. Petersburg city ring road. ULCT

began operations in December 2011. The Global Ports Group owns a 80% effective ownership interest in ULCT, Eurogate, the international container terminal operator, currently has a 20% effective

ownership interest. The results of ULCT are fully consolidated;

Vopak E.O.S. includes AS V.E.O.S. and various other entities (including an intermediate holding) that own and manage an oil products terminal in Muuga port near Tallinn, Estonia. The Group owns a

50% effective ownership interest in Vopak E.O.S.. The remaining 50% ownership interest is held by Royal Vopak. The results of Vopak E.O.S. are consolidated in the Global Ports’ financial information

using the equity method of accounting (proportionate share of net profit shown below EBITDA);

Vostochnaya Stevedoring Company (VSC) is located in the deep-water port of Vostochny near Nakhodka on the Russian Pacific coast, approximately eight kilometers from the Nakhodka-

Vostochnaya railway station, which is connected to the Trans-Siberian Railway. The Group owns a 100% effective ownership interest in VSC. The results of VSC are fully consolidated;

Weighted average effective interest rate is the average of interest rates weighted by the share of each loan in the total debt portfolio.

Yanino Logistics Park (YLP) is the first terminal in the Group’s inland terminal business and is one of only a few multi-purpose container logistics complexes in Russia providing a comprehensive range

of container and logistics services at one location. It is located approximately 70 kilometres from the Moby Dik terminal in Kronstadt and approximately 50 kilometres from PLP. The Global Ports Group

owns a 75% effective ownership interest in YLP, Container Finance LTD currently has a 25% effective ownership interest. The results of YLP are accounted for in the Global Ports’ financial information

using the equity method of accounting.


2929

INVESTORRELATIONS

Mikhail GrigorievPhone: +7 495 989 4769 (ext. 1310)

Mob: +7 916 991 7396

Yana GabdrakhmanovaPhone: +7 495 989 4769 (ext. 4197)

Mob: +7 910 462 5538

E-mail: [email protected]

Web: www.globalports.com

Global Ports Investments PLC 2016 Interim Results …Definitions for terms marked in this...

Documents

Transcript of Global Ports Investments PLC 2016 Interim Results …Definitions for terms marked in this...