Summa Group 2015

Summa Group News

All the latest news from the Summa Group
March 2015 Part 3

FESCO - NCSP- STROYNOVATSIYA INTEX YATEC UNITED GRAIN COMPANY

Summa Group 2015 March PT3

FESCO POSTIVE HIGHLIGHTS FOR 2014:

The Summa Groups Far East Shipping Company (FESCO) has announced its results for the first
quarter of 2015, from January to March. Highlights include:

Container port transitions increased by 7.7% YOY to 513 000 TEU.

Export-import sea container trade increased by 16.6% YOY to 428 000 TEU.
FESCO remains the number 1 shipping company in the Russian Far East region with a market
share of 32%.
FESCO remains the leader by volume on export-import sea container services lines with a market
share of 43%.
Export-Import container transportation between Russia and Asian countries increased by 16.6%.
Vladivostock port increased by 7.7% YOY to 513 481 TEU, outperforming the Far East container
market (2.3% YOY).
Rail Division increased by 13.8% YOY to 325.4 000 TEU in
2014.
The groups revenue increased by 17.8% YOY while the
EBITDA increased by 10.6% YOY.

FESCO NCSP - STROYNOVATSIYA INTEX YATEC UNITED GRAIN COMPANY

Summa Group 2015 March PT3

FESCO POSTIVE HIGHLIGHTS FOR 2014:

Port, Bunkering, Liner, Logistics and Shipping Divisions revenue increased.

The group had a strong performance in 4Q 2014 with Port, LLD and Shipping divisional EBITDA
growth.
CAPEX spending increased due to expansion CAPEX component, which includes acquisition
of two new fuel efficient vessels, acquisition of a dry container terminal in Novosibirsk,
investments the Port Division and in Usady project as well as acquisition of trucks and
investment in the corporate IT system.
Port container throughput increased by 7.7% YOY to 513 281 TEU due to the international trade
between Russia and Asia. The 4Q 2014 export throughput was up by 3.8%.
The increase of export volumes due to the decrease in the RUD value lead to an increase of
general cargo to 16.7% YOY to 2 297 000 tons.
Due to an increased demand for FESCO block train services, the rail container transportation by
Transgarant and Russkaya Troyka increased by 13.8% to 325 4000 TEU.
Export-import sea container transportation increased to
16.6% while intermodal rates increased by 6.2% to 258
621 TEU.
The Shipping Division EBITDA turned a loss in 2013 to
profit of $12.9million in 2014.
FESCO NCSP - STROYNOVATSIYA INTEX YATEC UNITED GRAIN COMPANY

Summa Group 2015 March PT3

FESCO POSTIVE HIGHLIGHTS FOR 2014:

$ million

3Q 2014

4Q 2014

4Q 2013

YoY
Dynamics

2014

2013

YoY
Dynamics

Revenue

331.0

274.2

290.1

-5.5%

1 118.3

1 139.7

-1.9%

EBITDA*

59.1

45.5

35.0

+30.0%

177.0

193.5

-8.5%

EBITDA
margin

17.9%

16.6%

12.1%

+4.5 pp

15.8%

17.0%

-1.2 pp

CAPEX

23.6

12.8

7.4

72.6

47.5

3Q 2014

4Q 2014

4Q 2013

+73.0%
YoY
Dynamics

2014

2013

+52.8%
YoY
Dynamics

Revenue

11 961

12 879

9 460

+36.1%

42 787

36 321

+17.8%

EBITDA*

2 139

2 147

1 155

+85.9%

6 166

+10.6%

EBITDA
margin

17.9%

16.6%

12.1%

+4.5 pp

17.0%

-1.2 pp

RUB million

15.8%

*) EBITDA is calculated as profit from operating activity adding

back depreciation and amortization, impairment on tangible fixed
assets and one-off expenses.

FESCO NCSP - STROYNOVATSIYA INTEX YATEC UNITED GRAIN COMPANY

Summa Group 2015 March PT3

FESCO NEGATIVE CHANGES FOR 2014:

The negative reports include:

Trail market and RUB devaluation lead to a 8.5% YOY decrease to $177 million.
EBITDA margin decreased by 1.2pp to 15.8%
Market headwinds have been tackled by a new cost optimization programme which has already
delivered the first results for 4Q2014.
The groups consolidated revenue decreased by 1.9% YOY.
EBITDA decreased by 8.5% YOY reaching $177million.
The Rail Division sees a decrease of revenue in EBITDA in RUB which was smaller than USD.
The revenue deceased by 7.4% to $185 million in 2014 due to RUB devaluation.
EBITDA decreased by 1.3% YOY but increased by 35.5% in the first quarter of 4Q 2014, resulting
in an overall increase of 17.7pp YOY to 57.3% in 4Q 2014.

FESCO NCSP - STROYNOVATSIYA INTEX YATEC UNITED GRAIN COMPANY

Summa Group 2015 March PT3

FESCO NEGATIVE CHANGES FOR 2014:

Intermodal rates took a dip due to competition on the routes as well as the devaluation of the
RUB. As a result the LLD revenue decreased by 7.1% YOY on $623million.

The group has developed a cost optimisation program during 2014 which will continue to be used
in 2015 in order to focus on maximisation of cash flow via reducing CAPEX, reduction of
administration expenses, optimisation of fleet usage in rail and shipping, labour productivity growth
and decreasing operational costs at port.

FESCO NCSP - STROYNOVATSIYA INTEX YATEC UNITED GRAIN COMPANY

Summa Group 2015 March PT3

ABOUT THE SUMMA GROUP

Summa Group specialises and invests in port logistics,
engineering, construction, oil and gas sectors as well as
telecommunications. Summa Group is a diversified
private holding that comprises of more then 10 000
people in 40 regions of Russia and abroad.

Mr Ziyavudin Magomedov is the founder and

shareholder of the Summa Group, which celebrated its
10 year anniversary in 2014.

FESCO - NCSP- STROYNOVATSIYA INTEX YATEC UNITED GRAIN COMPANY