PSE Circular for Brokers No. 2900-99

November 15, 1999 PSE CIRCULAR FOR BROKERS NO. 2900-99 PRESS RELEASE 12 November 1999 ICTSI 3Q income up 68% International Container Terminal Services, Inc. (ICTSI) consolidated net income increased 68 per cent for the third quarter of the year, from PhP93 million in 1998 to PhP155 million this year. cdll The sharp rise in net income is attributed to a much-improved performance of the Manila International Container Terminal (MICT) as well as most of the subsidiaries of ICTSI International Holdings Corp. (IIHC), which owns ICTSI's interests in the company's overseas operations. For the nine-month period, ICTSI's consolidated net income increased by 46 per cent, from PhP279 million in 1998 to PhP406 million in 1999. ICTSI's consolidated gross revenues for the third quarter rose 20 per cent, from PhP1.7 billion in 1998 to PhP2 billion in 1999. Strong growth in revenues is on account of improved revenues from the MICT as a result of increasing throughput handled at the terminal as well as continued revenue growth from IIHC. LexLib For the period in review, MICT revenues rose by 30 per cent, from PhP697 million in 1998 to PhP906 million in 1999. On the other hand, IIHC's consolidated revenues grew by nine per cent, from PhP1 billion to PhP1.1 billion. The increase in IIHC revenues is largely attributable to revenues contributed by Internacional de Contenedores Asociados de Veracruz, S. A. de C. V. (ICAVE) in Mexico, which grew by 18 per cent, and from Ensenada International Terminal, S. A. de C. V. (EIT) in Mexico. For the nine-month period, ICTSI's consolidated gross revenues grew 21 per cent, from PhP4.5 billion in 1998 to PhP5.5 billion in 1999. MICT revenues increased by 26 per cent, from PhP1.9 billion to PhP2.5 billion. IIHC's revenues grew 16 per cent, from PhP2.6 billion to PhP3 billion. LibLex ICTSI's consolidated volume for the third quarter grew by 20 per cent, from 373,392 TEUs in 1998 to 449,633 TEUs in 1999. Container traffic at the MICT increased by 20 per cent, from 190,806 TEUs to 228,963 TEUs. Volume from IIHC subsidiaries increased by 21 per cent, from 182,586 TEUs to 220,670 TEUs. ICAVE handled 106,819 TEUs, up 24 per cent from 86,038 TEUs. International Port Services Co. Ltd. (IPS) in Saudi Arabia handled 106,229 TEUs, an increase of 10 per cent from 96,548 TEUs. EIT, which began operation in April this year, handled 7,622 TEUs. ICTSI's consolidated volume for the nine-month period rose by 17 per cent, from 1,077,872 TEUs in 1998 to 1,256,174 TEUs in 1999. Volume handled at the MICT grew by 16 per cent, from 544,927 TEUs to 634,770 TEUs. IIHC's consolidated volume rose by 17 per cent, from 532,945 TEUs to 621,404 TEUs. ICAVE handled 299,535 TEUs, up 20 per cent from 249,515 TEUs. IPS handled 307,520 TEUs, an increase of nine per cent from 283,410 TEUs. EIT handled 14,360 TEUs. For the third quarter of the year, ICTSI consolidated administrative and operating expenses increased by a modest 10 per cent, from PhP815 million in 1998 to PhP896 million in 1999. MICT expenses increased by a mere two per cent, from PhP365 million to PhP374 million. During the first nine months, ICTSI consolidated expenses grew by 12 per cent, from PhP2.2 billion in 1998 to PhP2.4 billion in 1999. For the third quarter of the year, equity in net earnings from Buenos Aires Container Terminal Services, S. A. (BACTSSA) in Argentina and Karachi International Container Terminal Ltd. (KICT) in Pakistan declined from net earnings of PhP79 million in 1998 to a net loss of PhP28 million in 1999. The decline is caused mainly by start-up losses of KICT of about PhP41 million. BACTSSA's contribution declined to PhP27 million from PhP79 million primarily because of the economic slowdown which has been plaguing Argentina since last year. BACTSSA handled 69,000 TEUs while KICT handled 39,556 TEUs. LexLib For the first nine months of the year, equity in net earnings from these two companies declined from net earnings of PhP122 million in 1998 to a net loss of PhP13.3 million in 1999. In the same period, BACTSSA handled 193,574 TEUs, and KICT handled 104,502 TEUs. xxx xxx xxx