GLPR.L Regulatory News (GLPR)

For immediate release 03 March 2022

Global Ports Investments PLC

2021 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 publishes its consolidated financial statements for the year ended 31 December 2021.

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 2021 Full-Year Results announcement please click here. http://www.rns-pdf.londonstockexchange.com/rns/4599D_1-2022-3-2.pdf

For the 2021 Full-Year Results presentation please click here. http://www.rns-pdf.londonstockexchange.com/rns/4599D_2-2022-3-2.pdf

For the Management report and consolidated financial statements for the year ended 31 December 2021 please click here. http://www.rns-pdf.londonstockexchange.com/rns/4599D_3-2022-3-2.pdf

For the Management report and parent company financial statements for the year ended 31 December 2021 please click here. http://www.rns-pdf.londonstockexchange.com/rns/4599D_4-2022-3-2.pdf

For the Management report and Global Ports (Finance) PLC financial statements for the year ended 31 December 2021 please click here  http://www.rns-pdf.londonstockexchange.com/rns/4599D_5-2022-3-2.pdf

2021 RESULTS: Continued strong growth, deleveraging targets achieved

● Revenue increased by 30.8% to USD 502.8 million (+17.1% like-for-like)[1]

● Adjusted EBITDA grew by 17.4% to USD 246.2 million, delivering like-for-like Adjusted EBITDA Margin increase of 15 basis points to 65.4%

● Operating profit growth of 25.2% to USD 197.1 million

● Profit for the period increased by 2.9x to USD 143.9 million

● Free Cash Flow generation growth of 46.9% to USD 129.1[2] million

● Deleveraging target successfully achieved with Net Debt down USD 120.7 million and Net Debt to Adjusted EBITDA reduced to 2.0x (-0.9x compared to 31 December 2020)

● Consolidated Marine Container Throughput up 2.8% y-o-y to 1,576 thousand TEUs with strong market position successfully protected in all key basins of presence

● Growth continued for the first two months of 2022 with a Consolidated Marine Container Throughput increase of 20% y-o-y, with VSC posting 53% growth in this period

● Consolidated Marine Bulk Throughput of 4.3 million tonnes (-14.6% y-o-y) on the back of the strategic decision to cease coal handling at VSC to drive more profitable container volume growth

● Improved credit profile confirmed by rating agencies: Moody's upgraded rating of the Company and Group's financial instruments by 1 notch to Ba1, RA Expert by 2 notches to ruAA, Fitch Ratings affirmed at BB+.

Albert Likholet, CEO of Global Ports, commented:

"The last two years have seen an extremely volatile operational environment and disruption across global supply chains and it has been vital for our customers to manage trade unbalances. As a result, we have learned the criticality of offering the right infrastructure capacity combined with a high standard of service, ensuring a clear focus on our client's needs at the right time and in the right location. This approach generated a very favourable reception across our client base. Building on this strong foundation, we not only successfully enhanced our leading market positions in both basins of presence but also delivered solid growth in Adjusted EBITDA and Free Cash Flow.

Due to this strong performance, 2021 marks a significant milestone in the Group's history, as we have succeeded in achieving our long-term deleveraging targets. This achievement opens up potential opportunities for revising our capital allocation approach in the future should we see more predictable environment with greater visibility."

Group financial and operational highlights for 2021

Unless otherwise stated, all comparisons below are for 2021 in comparison to 2020.

Financial Highlights

● Consolidated revenue increased by 30.8% to USD 502.8 million; excluding the impact of VSC transportation services, like-for-like revenue increased by 17.1% as 25.0% increase in Consolidated Container Revenue offset 5.2% decrease in Consolidated Non-container Revenue on the back of ceased coal handling at VSC.

● Like-for-like Revenue per TEU increased by 21.6% to USD 188.7 as a result of positive cargo, customer and basin mix changes, as well as customers' appreciation of our quality services in high demand environment in the Far Eastern basin.

● Operating profit increased by 25.2% to USD 197.1 million.

● Like-for-like Total Operating Cash Costs increased by 16.4% to USD 131.8 million due to inflationary pressure, volumes growth and also the fact that operating in a high demand environment and capacity utilisation rate at VSC required controlled cost increases to drive Adjusted EBITDA growth.

● Adjusted EBITDA increased by 17.4% to USD 246.2 million as a result of volume growth and Revenue per TEU increase. Profitability improved with like-for-like Adjusted EBITDA Margin to 65.4% posting an increase of 15 basis points.

● The Group achieved significant Free Cash Flow growth of 46.9% generating USD 129.1 million over the year.

● The Group reduced Net Debt by USD 120.7 million in 2021 allowing Net Debt to Adjusted EBITDA to decrease from 2.9x as of 31 December 2020 to 2.0x as at the end of the reporting period, achieving the Group's long-term deleveraging target.

Business performance

● Strong market growth in 2021 saw the Russian marine container market achieving all-time-high volumes in 2021 of 5.4 million TEUs (+7.1% y-o-y), driving growth in both containerised import of 11.1% and containerised export of 4.2%.

● As a result of the sharp rise in freight rates in most of the main global container shipping trades, very tight network capacity in the Asia-Europe trade and a deficit of empty containers globally, market players increasingly preferred faster container import and export supply chains via the shortest sea leg. As a result, market growth was concentrated in the Far Eastern basin (+14.0% y-o-y) and the Southern basin (+6.4% y-o-y) while the combined throughput of terminals located in Saint Petersburg and the surrounding area declined by 3.7% y-o-y in FY 2021.

● The Group successfully improved its market share position in both its basins of presence in 2021, with VSC throughput improving 14.8% y-o-y and throughput of its terminals in the Baltic Basin declining by 2.3% y-o-y (being less than market decline). In total, Consolidated Marine Container Throughput increased by 2.8% y-o-y in 2021 to 1,576 thousand TEUs.

● As previously announced, VSC ceased coal handling activities in September 2021, enabling the terminal to concentrate on the Group's core strategic operations of driving container volumes. As a result, the Group's Consolidated Marine Bulk Throughput decreased in 2021 by 14.6% y-o-y to 4.3 million tonnes.

● High and Heavy Ro-Ro handling increased by 24.4% to 25.2 thousand units, while car handling increased by 27.8% to 104.9 thousand units.

Outlook

● The company's outlook for 2022 is impacted by increased volatility and heightened global and regional geopolitical tensions, which has immediately lowered visibility on what to expect in 2022.

Further information is available in the following Appendices:

● Appendix 1: Results of operations for Global Ports for the twelve-month period ended 31 December 2021

● Appendix 2: Reconciliation of Additional data (non-IFRS) to the condensed consolidated financial information

● Appendix 3: Definitions and Presentation of Information

● Appendix 4: Investor Presentation. http://www.rns-pdf.londonstockexchange.com/rns/4599D_2-2022-3-2.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.

Downloads

The consolidated financial statements for the twelve-month period ended 31 December 2021 for Global Ports are available for viewing and downloading at https://www.globalports.com/en/investors/reports-and-results/.

Analyst and Investor enquiries

For all institutional investor and analyst enquiries or if you would like to be added to the investor relations distribution list, please contact our Investor Relations team whose contact details are given below.

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 2021 was USD 502.8 million and Adjusted EBITDA was USD 246.2 million. Consolidated Marine Container Throughput was 1,576 thousand TEUs in 2021.

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.