brunswick brunswick rail founding shareholders source: company information source: company ifrs...

Download Brunswick Brunswick Rail founding shareholders Source: Company information Source: Company IFRS financial

Post on 18-Mar-2020

0 views

Category:

Documents

0 download

Embed Size (px)

TRANSCRIPT

  • Brunswick Rail Bringing Railcar Operating Leasing to Russia March 2014 Moscow

  • We are the #1 operating leasing company in Russia

    #1 freight railcar operating lessor in Russia(1) with 24,229 railcars(2) and USD 1.2 bln asset value(3)

    (1) Based on INFOLine data for Dec’2012 (by number of railcars) (2) As of 30 September 2013 (3) As of 30 September 2013 NAV based on asset Fair Market Value

    2

    One of the best performing companies in the industry with strong financial and operational track record, high profitability and cash flow generation

    Track record of consistent growth and profitability

    Recognised international leasing business model successfully imported into Russia

    Martin Andersson

    15,8%

    Gerard De Geer

    8,6%

    MRIF 15,1%

    IFC 13,2%Sumitomo 9,1%

    VTB Capital

    7,0%

    UGF 5,6%

    Andre

    Hoffmann 5,2%

    Other Investors

    (30) 20,4%

    Brunswick Rail founding

    shareholders

    Source: Company information

    Source: Company IFRS financial statements

    Shareholder structure as of 30 September 2013

    Diversified and high-quality international shareholder base and high corporate governance standards

    16 27 42

    81 85 92

    184

    306

    197

    8 16 27

    61 67 71

    140

    241

    150

    49.9%

    59.7% 63.3%

    75.5% 79.0% 77.3% 75.9% 78.7% 75.9%

    0%

    30%

    60%

    90%

    0

    50

    100

    150

    200

    250

    300

    350

    2005 2006 2007 2008 2009 2010 2011 2012 9m 2013

    Gross revenue (USD mln) Adjusted EBITDA (USD mln) Adjusted EBITDA margin, %

    Bringing Railcar Operating Leasing to Russia

  • 2004 2005 2006 2007 2008 2009 2010 2011 2012

    3.1 3.7 7.4

    10.4 10.7 12.6

    21.8 24.2

    2005 2006 2007 2008 2009 2010 2011 2012

    Leveraging first mover advantage: from pioneer to market leader

    3

    Source: Company IFRS financial statements (1) End of period data (2) Repaid in full

    Implant the concept Build scale Demonstrate resilience Deliver sustainable growth

    New Shareholder

    New Shareholder

    $200m Syndicated Loan(2)

    $385m Syndicated Loan(2)

    $50m Rights Issue

    MRIF

    $172.5m Private Placement

    $300m A/B Loan(2) (upsized to $420m in 2011)

    $250m IFC A/B Loan(2)

    $600m inaugural Eurobond, rated BB- by S&P and Ba3 by

    Moody’s

    $156m Acquisition Facility(2)

    4 M&A Deals Completed Founded

    Equity Financing Debt Financing M&A

    Fleet size (ths railcars)(1)

    Adjusted EBITDA

    $8m $16m $27m $61m $67m $71m $140m $241m

    Bringing Railcar Operating Leasing to Russia

  • 1 283

    1 209

    664

    229

    184

    73

    USA

    Russia

    China

    India

    Ukraine

    Canada

    1 775

    1 364

    914

    735

    646

    521

    Russia

    USA

    Canada

    China

    India

    Ukraine

    (3)

    2 900

    2 525

    2 196

    626

    254

    244

    China

    USA

    Russia

    India

    Canada

    Ukraine Moscow

    Yekaterinburg

    Omsk Novosibirsk Krasnoyarsk Omsk Novosibirsk

    Moscow

    Krasnoyarsk

    Murmansk

    Kaliningrad St. Petersburg

    Vorkuta

    Khabarovsk

    Vladivostok

    Volgograd

    Yekaterinburg

    Rail industry is the backbone of the growing Russian economy

    • Nature of freight

    • Geography

    • Climate

    The Russian economy is heavily dependent on rail transportation

    (1) Management estimates based on current railcar prices (2) Excluding pipeline transportation (3) 2013 data (4) Management estimates based on 11 months 2013 actuals (5) 2012 data

    4

    Source: Rosstat, U.S. Department of Transportation, National Bureau of Statistics of China, Eurostat

    Source: INFOLine, Rosstat, U.S. Department of Transportation, National Bureau of Statistics of China, Indian Railways, Statistics Canada, State statistic service of Ukraine

    One of the largest railcar markets worldwide

    Freight turnover (bln t*km, 2011)

    Freight rolling stock (ths railcars, 2011)

    Average transportation distance (km, 2011)

    Share of rail in total freight turnover(2)

    (3)

    (3)

    The main drivers of demand for new railcars

    • Over the next 10 years ca. 350 ths new railcars will be required with up to USD 25 bln estimated investment(1)

    (3)

    Bringing Railcar Operating Leasing to Russia

    85%

    16% 49%

    21%

    15%

    84% 51%

    79%

    Russia (2013) China (2013) USA (2011) Germany (2011)

    (3)

    (4)

    (5)

  • Railcar market overview

    5

    Rail transportation volumes have started to recover in the end of 2013

    • In Dec’13 rail transportation volumes are above 2012 levels for the first time in this year: +1.8% vs Dec’12

    • According to RZD, this positive trend will continue in Jan’14: transportation volumes are estimated to be +1.0% vs Jan’13

    Source: Industrial Cargoes

    Rail transportation volume in Russia, m tons

    Source: Rosstat, RZD

    90

    95

    100

    105

    110

    115

    J F M A M J J A S O N D

    2011 2012 2013

    -6.3%

    Railcar production is still above sustainable level of demand

    • Average monthly railcar production in CIS in Q4’13 is stable at 7.1 ths railcars, which results in annual production of ca. 85 ths railcars

    • According to our estimates, sustainable level of demand is ca. 50-60 ths new railcars per year

    • Excessive production is absorbed by decreased efficiency of the system and increased competition (in particular from leasing companies affiliated with railcar producers - UVZ-Logistics and Rail1520)

    • The final decision on limitation of railcar lifetime extension is postponed to 2014

    2, 5 3, 0 3, 3

    3, 2

    2, 9

    2, 8

    3, 0

    3, 0

    2, 9 3, 2 3, 7 4

    ,6

    4, 0 4,

    6

    4, 3

    4, 2

    3, 4

    4 ,3

    4, 6

    5, 9

    6, 0

    6, 7

    7, 4

    6, 3

    6, 7

    7, 7

    7, 1

    4, 6

    3, 1

    2, 9

    3, 1

    2, 8

    5, 9

    7, 3

    7, 9

    9, 1

    9, 0

    9, 5

    1 0,

    4

    9, 3

    9, 6

    1 0,

    9

    10 ,8

    9, 2

    7, 1

    7, 4

    7, 4

    7, 1

    0

    2

    4

    6

    8

    10

    12

    I- 10

    II- 1

    0

    III -1

    0

    IV -1

    0

    I- 11

    II- 1

    1

    III -1

    1

    IV -1

    1

    I- 12

    II- 1

    2

    III -1

    2

    IV -1

    2

    I- 13

    II- 1

    3

    III -1

    3

    IV -1

    3

    Specialized railcars Gondola

    Average monthly railcar production in CIS, ths units

    Bringing Railcar Operating Leasing to Russia

    +1.8%

    Forecast for 2014: stabilization of the transportation volumes

    • In 2013 transportation volumes have reached 1 237 mln tons (-2.8% vs FY’12), cargo turnover is 2 196 bln t*km (-1.2% vs FY’12)

    • RZD forecast for FY’14 is +1,1% vs FY’13:

    — Main growth drivers are oil (+3.1%) and grain (+16.3%)

    — Gondola cargos are expected to decrease in 2014 by 0.5-1.0%

    1 242 1 272 1 237 1 250

    3,0% 2,4%

    -2,8%

    1,1%

    -4%

    -3%

    -2%

    -1%

    0%

    1%

    2%

    3%

    4%

    1 210

    1 220

    1 230

    1 240

    1 250

    1 260

    1 270

    1 280

    2011 2012 2013 2014

    Transportation volume YoY, %

    Source: Rosstat, RZD

    Annual railcar production in CIS, ths units

    115 122 85 50

    26%

    6,1%

    -30% -41%

    -50%

    -40%

    -30%

    -20%

    -10%

    0%

    10%

    20%

    30%

    0

    20

    40

    60

    80

    100

    120

    140

    2011 2012 2013 2014

    Railcar production YoY, %

    Source: Industrial Cargoes

  • 45 53 58 64

    72 80 79 74 73 72 67 59 55 52 50 51 50 50

    29 31 34

    43 44 48

    52 50 50 43

    36

    27 18 21 20 20 18 17

    0

    25

    50

    75

    0

    25

    50

    75

    100

    125

    150

    I- 1

    0

    II- 1

    0

    III -1

    0

    IV -1

    0

    I- 1

    1

    II- 1

    1

    III -1

    1

    IV -1

    1

    I- 1

    2

    II- 1

    2

    III -1

    2

    IV -1

    2

    I- 1

    3

    II- 1

    3

    III -1

    3

    O ct

    '1 3

    N o

    v' 1

    3

    D ec

    '1 3

    Gondola price, ths USD Gondola spot rental rate, USD / day

    Leasing