Investor relations

Peel Ports Group Limited – Financial Highlights

Peel Ports Group is the second largest port group in the UK, handling 70 million tonnes of cargo per year and has 13% of the UK’s total port traffic moving through its waters.

In December 2012 the Group established its investment grade secured corporate debt programme, which was structured to enable access on a pari passu basis to bank debt, public bonds and private placement notes. The facilities were provided by an international banking syndicate and institutional investors in the US PP market.  Since December 2012, the Group has refinanced bank debt totaling £958m. In addition the Group has raised additional debt totaling £205m.

The Group’s operations comprises ports serving a broad spread of customers and handles a range of cargoes from a number of key locations. The quality of its operating locations and in particular their proximity to major conurbations (including Liverpool, Manchester, London, Glasgow and Dublin) continue to support the Group’s EBITDA performance.

Financial Performance

In FY2015, Peel Ports reported revenues of £616m (2014: £624m) and EBITDA of £195m (2014: £178m). The Group has grown its EBITDA annually since 2008, including during the recent economic downturn, demonstrating its defensive characteristics. This growth is underpinned by strong customer ties, diversity of cargo types and management’s response to the economic downturn in cutting costs and improving business processes. Peel Ports’ operations and divisions comprise of:

The current shareholders of Peel Ports are Peel Group (50.1%) and RREEF Infrastructure (“RREEF”) (49.9%). The stable cash flows generated by Peel Ports have driven organic growth in EBITDA leading to a natural de-leveraging of the business.

Peel Ports’ business model can be considered a “value added model” where it acts as both a landlord and an operator. Revenues are underpinned by Peel Ports’ key role as the SHA (‘Statutory Harbour Authority’) and CHA (‘Competent Harbour Authority’) for their harbours, with the right to levy pilotage and ships’ dues (including conservancy) on all vessels entering the relevant harbour and goods’ dues on all goods imported and exported over Peel Ports’ facilities.

Core revenues are driven primarily by statutory dues and port operations relating to berthing and cargo fees. Peel Ports has no reliance on any one revenue stream, cargo type or customer.

Peel Ports will lease port estate, acting as landlord where such an arrangement ties users sufficiently into ancillary port services. Importantly, it will also proactively look to offer additional elements of the value chain where it can either capture incremental revenues or such additional activity. This assists in developing or maintaining profitable long term customer relationships.

Shareholding

Peel Group

Peel Group is a privately owned conglomerate business with a wide range of interests from property to wind farms and hotels. Peel Ports benefits from the shareholders’ significant experience in investing and managing other key UK real estate and infrastructure assets such as the Trafford Centre and Liverpool Airport. Peel Group has had long-standing interests in the ports industry initially via its subsidiary The Manchester Ship Canal (interest acquired in 1987), expanding via the acquisition of Clydeport in 2003 and Mersey Docks and Harbour Company in 2005.

Peel Group is a privately owned conglomerate business with a wide range of interests from property to wind farms and hotels. Peel Ports benefits from the shareholders’ significant experience in investing and managing other key UK real estate and infrastructure assets such as the Trafford Centre and Liverpool Airport. Peel Group has had long-standing interests in the ports industry initially via its subsidiary The Manchester Ship Canal (interest acquired in 1987), expanding via the acquisition of Clydeport in 2003 and Mersey Docks and Harbour Company in 2005.

RREEF

RREEF, investing through its Pan-European Infrastructure Fund, is part of the asset and wealth management division of Deutsche Bank AG (‘Deutsche AWM’), with more than €2 billion of assets under management.  RREEF is an experienced investor owning significant interests in other core infrastructure assets in the energy, utility and transport sectors across Europe.  Deutsche AWM Infrastructure is one of the largest asset managers in the world with more than 20 years of continuous portfolio management expertise.