2020 Full-Year Results

For immediate release 05 March 2021

Global Ports Investments PLC

2020 Full-Year Results

Global Ports Investments PLC ("Global Ports" or the "Company", together with its subsidiaries and joint ventures, the "Group" or the "Global Ports Group"; LSE ticker: GLPR) today announces its operational results and publishes its consolidated financial statements for the year ended 31 December 2020.

Information (including non-IFRS financial measures) requiring additional explanation or terms which begin with capital letters and the explanations or definitions thereto are provided at the end of this announcement. 

Certain financial information is derived from the management accounts.

For the full version of the 2020 Full-Year Results announcement please click here:

http://www.rns-pdf.londonstockexchange.com/rns/2543R_1-2021-3-4.pdf

For the 2020 Full-Year Results presentation please click here:

http://www.rns-pdf.londonstockexchange.com/rns/2543R_2-2021-3-4.pdf

For the Management report and consolidated financial statements for the year ended 31 December 2020 please click here: http://www.rns-pdf.londonstockexchange.com/rns/2543R_3-2021-3-4.pdf

For the Management  report and parent company financial statements for the year ended 31 December 2020 please click here: http://www.rns-pdf.londonstockexchange.com/rns/2543R_4-2021-3-4.pdf

For the Management report and Global Ports (Finance) PLC financial statements for the year ended 31 December 2020 please click here: http://www.rns-pdf.londonstockexchange.com/rns/2543R_5-2021-3-4.pdf

2020 RESULTS SUMMARY

● Operational outperformance of the market continued with 2020 Consolidated Marine Container Throughput up 6.6% year-on-year to 1,533 thousand TEU against a 0.8% year-on-year decline in the Russian container market over the same period

● Consolidated Marine Bulk Throughput of 5.1 million tonnes (+38.7% y-o-y)

● Revenue increased by 6.2% to USD 384.4 million (-8.2% like-for-like)[1]

● Like-for-like Total Operating Cash Costs were successfully and safely reduced by 9.7% to USD 113.2 million; despite the healthy growth in both container and non-container throughput

● Adjusted EBITDA of USD 209.7 million (2019: USD 226.9 million), like-for-like Adjusted EBITDA Margin increased by 40 basic points to 65.2%

● Operating profit growth of 8.7% to USD 157.4 million

● Profit for the period of USD 50.0 million (2019: USD 67.7 million)

● Strong Free Cash Flow of USD 157.1 million

● Further deleverage success with Net Debt down USD 134.9 million and Net Debt to Adjusted EBITDA reduced to 2.9x (-0.4x compared to 31 December 2019)

● Credit ratings reaffirmed in 2020 by all rating agencies that rate the Group and its financial instruments with stable outlook: Fitch Ratings at BB+, Moody's at Ba2, RA Expert at RuA+

Albert Likholet, CEO of Global Ports, commented:

"I believe that both the Company and the Russian market have successfully met the challenges so far presented to all of us by the events of 2020. Despite supply chain disruptions, reshuffling of vessels calls, strong macro headwinds, and high FX volatility, the market finished the year broadly flat.

Global Ports' 2020 results, in turn, prove that we are on the right track with our strategy implementation. We outperformed the Russian container market for the third year in a row and achieved double digit growth in bulk cargo handling. We also ensured strong cost control, resulting in consistent Free Cash Flow generation and further strong deleverage. Net Debt was reduced by almost USD 135 million, while Net debt to Adjusted EBITDA declined to the lowest level in 8 years, proving the resilience of the business and supporting the path towards resumption of dividends once deleveraging targets achieved.

Although containerised export remains strong and we are seeing some encouraging signs of growth in containerised imports towards the end of 2020, the market continues to be highly competitive and the outlook is still far from certain. Thus, we remain fully mobilised, committed to our strategy of driving productivity and innovation across our operations and remaining relentlessly focused on our clients, maintaining their loyalty and trust by providing the highest service standards in the industry".

Group financial and operational highlights for the twelve months ended 31 December 2020

Unless otherwise stated, all comparisons below are for 2020 in comparison to 2019.

Operational Highlights

● The Russian container market demonstrated resilience in 2020 declining by only 0.8% y-o-y supported by continuing growth in containerised export (+5.2%), which was however not sufficient to offset the decline of containerised import by a moderate 1.8%, due to the global and local macroeconomic impact of COVID-19.

● Outperforming the market in both export and import, the Group's Consolidated Marine Container Throughput increased by 6.6% to 1,553 thousand TEU with growth of full export containers of 16.8% and full import containers of 3.6%. As a result, share of full export containers in the Groups' Consolidated Marine Container Throughput increased from 40% in 2019 to 44% in 2020.

● Consolidated Marine Bulk Throughput increased by 38.7% y-o-y, driven by strong growth in coal handling at VSC and ULCT as well as growth of fertilisers and steel handling at PLP.

Financial Highlights

● Consolidated revenue increased by 6.2% to USD 384.4 million; excluding the impact of VSC transportation services[2], like-for-like revenue declined by 8.2% driven by a decrease in both Consolidated Container and Non-Container Revenue.

● Like-for-like Revenue per TEU decreased by 13% to USD 155.1 as a result of depreciation of the Russian Rouble against US dollar, the growing share of full export containers in Group throughput, and additional free storage days and other incentives provided by the Group to its clients in order to support them on the back of the global and local macroeconomic turmoil following the COVID-19 outbreak. Like-for-like Revenue per TEU adjusted for FX decreased by 2.7%.

● Operating profit increased by 8.7% to USD 157.4 million.

● In response to COVID-19 conditions, cost control measures were implemented to manage and reduce the Group's cost base. Like-for-like Total Operating Cash Costs were successfully and safely reduced by 9.7% to USD 113.2 million despite the healthy growth in both container and non-container throughput.

● Adjusted EBITDA decreased by 7.6% to USD 209.7 million as cost control improvements and volume growth could not offset the decline in Revenue per TEU and US dollar equivalent of Russian Rouble nominated bulk handling tariffs due to the depreciation of the Russian Rouble as a result of COVID-19. Profitability was nonetheless maintained with like-for-like Adjusted EBITDA Margin of 65.2%.

● The Group's capital expenditure in 2020 was USD 33.9 million and focused on planned maintenance projects, scheduled upgrades of existing container handling equipment and customer service improvement initiatives.

● The Group generated a healthy USD 157.1 million of Free Cash Flow (-1.1% compared to 2019) demonstrating the resilience of the business model.

● The Group reduced Net Debt by USD 134.9 million over the year and continues to prioritise deleveraging over dividend distribution.

● In line with the Group's focus on deleveraging, Net Debt to Adjusted EBITDA decreased from 3.3x as of 31 December 2019 to 2.9x as at the end of the reporting period, achieving the lowest level since 2012.

Outlook

Despite the proven resilience of the Russian container market, and its continued journey towards full import-full export balance, as well as encouraging signs of containerised import moderate recovery in 4Q 2020, volatility remains high and visibility is low in terms of both market performance and pricing. Nonetheless, we are reassured by the prospects of better supply/demand balance and increased demand for quality of service, meaning that although we anticipate recovery in time, we see no substantial change in the short term.

As a result of the increase of global freight rates and the deficit of empty containers in Asia, we are seeing increased demand for container handling via the Russian Far Eastern basin, where the Group's VSC terminal is located. Exceptionally high growth figures, both in full export and import containers, coincided with the delayed delivery of RMG cranes due to COVID-19, and resulted in a temporary overutilization of VSC in December 2020 to February 2021. The Group is restoring the high level of service at VSC.

Further information is available in the following Appendices:

● Appendix 1: Results of operations for Global Ports for the year ended 31 December 2020;

● Appendix 2: Reconciliation of Additional data (non-IFRS) to the Consolidated Financial Statements;

● Appendix 3: Definitions and Presentation of Information; and

● Appendix 4: Investor Presentation.

http://www.rns-pdf.londonstockexchange.com/rns/2543R_1-2021-3-4.pdf

Market data

Market data used in this press-release, as well as certain statistics, including statistics in respect of market growth, volumes of third parties and market share, have been extracted from official and industry sources and other third-party sources, such as the Association of Sea Commercial Ports ("ASOP") the Central Bank of the Russian Federation and the Russian Federal State Statistics Service, among others.

Other

Pursuant to Article 2.1(i)(ii) of the Transparency Directive (2004/109/EC) and Rule 6.4.2 of the Disclosure Guidance and Transparency Rules of the UK Financial Conduct Authority, the Company confirms that it has chosen the United Kingdom as its Home State.

Downloads

The consolidated financial statements for the year ended 31 December 2020 for Global Ports are available for viewing and downloading at https://www.globalports.com/en/investors/reports-and-results/.

Analyst and Investor Conference call

The publication of these results will be accompanied by an analyst and investor conference call hosted by:

· Albert Likholet, Chief Executive Officer, Global Ports Management LLC;

· Alexander Roslavtsev, Chief Financial Officer, Global Ports Management LLC;

· Brian Bitsch, Chief Commercial Officer, Global Ports Management LLC;

· Alexander Iodchin, Head of Strategy and Business Development and General Manager of Global Ports Investments PLC.

Date: Friday, 5 March 2021

Time: 11.00 UK / 14.00 Moscow

To participate in the conference call, please dial one of the following numbers and ask to be put through to the "Global Ports" call:

Standard International Access: +44 (0) 33 0551 0200

UK Toll Free: 0808 109 0700

USA Toll Free: 1 866 966 5335

Russia: +7 (8) 495 249 9843

ENQUIRIES

NOTES TO EDITORS

Global Ports Investments PLC

Global Ports Investments PLC is the leading operator of container terminals in the Russian market by capacity and container throughput.[3]

Global Ports' terminals are located in the Baltic and Far East Basins, key regions for foreign Russian trade and transit cargo flows. Global Ports operates five container terminals in Russia (Petrolesport, First Container Terminal, Ust-Luga Container Terminal[4] and Moby Dik[5] in the Russian Baltics, and Vostochnaya Stevedoring Company in the Russian Far East) and two container terminals in Finland[6] (Multi-Link Terminals in Helsinki and Kotka). Global Ports also owns inland container terminal Yanino Logistics Park[7] located in the vicinity of St. Petersburg.

Global Ports' revenue for 2020 was USD 384.4 million and Adjusted EBITDA was USD 209.7 million. Consolidated Marine Container Throughput was 1,533 thousand TEU in 2020.

Global Ports' major shareholders are Delo Group, the largest intermodal container and port operator in Russia[8] (30.75%), and APM Terminals B.V. (30.75%), whose core expertise is the design, construction, management and operation of ports, terminals and inland services. APM Terminals operate a terminal network of 75 terminals globally. 20.5% of Global Ports shares are traded in the form of global depositary receipts listed on the Main Market of the London Stock Exchange (LSE ticker: GLPR).

For more information please see: www.globalports.com

LEGAL DISCLAIMER

Some of the information in these materials may contain projections or other forward-looking statements regarding future events or the future financial performance of Global Ports. You can identify forward-looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could," "may" or "might" or the negative of such terms or other similar expressions. Any forward-looking statement is based on information available to Global Ports as of the date of the statement and, other than in accordance with its legal or regulatory obligations, Global Ports does not intend or undertake to update or revise these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Forward-looking statements involve known and unknown risks and Global Ports wishes to caution you that these statements are only predictions and that actual events or results may differ materially from what is expressed or implied by these statements. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Global Ports, including, among others, general political and economic conditions, the competitive environment, risks associated with operating in Russia and market change in the industries Global Ports operates in, as well as many other risks related to Global Ports and its operations. All written or oral forward-looking statements attributable to Global Ports are qualified by this caution.