Compania Sud Americana De Vapores S.a. · BCS:VAPORES
Compania Sud Americana De Vapores — FY2021 Earnings Presentation
32 slides from Compania Sud Americana De Vapores's earnings presentation, March 2022
Slide 1: FY 2021 Financial Results
Compañía Sud Americana de Vapores FY 2021 Financial Results March 2022
Slide 2: Opening Remarks
OPENING REMARKS CSAV Solid 2021 – US$3.210mn in Profits driven by the positive performance of Hapag-Lloyd Share Price Evolution Dec20 - Dec21 Hapag-Lloyd, CSAV’s main investment In 2021, strong demand continued. Therefore, revenues increased strongly due to higher freight rates (+81%yoy) and t
Slide 3: Demand Evolution Amid Covid
DEMAND EVOLUTION AMID COVID VOLATILE DEMAND GROWTH DURING THE COVID PANDEMIC Global Demand Growth (%YoY) Suez Canal 25,0 Blockage Port of Yiantian, Covid started/Lockdowns in China China operating at 20,0 High congestion in Asian Ports low capacity 15,0 10,0 Global Demand Plunged 5,0 0,0 01-20 02-20
Slide 4: Supply Chain Disruptions
SUPPLY CHAIN DISRUPTIONS COUNTERMEASURES TO ALLEVIATE THE BOTTLENECKS Port Congestion Index × Covid has negatively impacted inland productivity 37 36 × Lack of personnel along the supply chain (ports, truckers, 35 warehouses, etc.) 34 Post-covid 34,6% 33 × Third shift – 24/7 limitations 32 × Higher
Slide 5: Freight Rates, a Consequence of the Congestion Problems
INDUSTRY FREIGHT RATES, A CONSEQUENCE OF THE CONGESTION PROBLEMS Freight Rates Evolution (US$/TEU) SCFI Shangai-Europe Shanghai-S America Shanghai-WC America Shanghai-EC America 12.000 10.000 All trades are impacted with rising tariffs SCFI Index YTD 2021: +91% 8.000 SCFI Index YTD 2022: -8,4% Jan 7
Slide 6: Higher Transport Expenses +17% YoY
INDUSTRY HIGHER TRANSPORT EXPENSES +17% YoY – GROWING STEADILY IN THE COURSE OF 2021 Charter Rate Index and Freight Rate Index evolution Alphaliner Charter Rate Index CCFI (Monthly average) SCFI (Monthly average) SCFI / CCFI (Monthly average) Alphaliner Charter Rate Index 400 4,000 300 3,000 200 2,0
Slide 7: Supply Evolution Throughout the Years
INDUSTRY SUPPLY EVOLUTION THROUGHOUT THE YEARS Healthier Orderbook to Fleet (%), though increasing during 2021 to better supply customers • Overall Healthy Orderbook • Demand and Supply will become more balanced in the coming years, helping to ease the current situation • Sustainable regulations may
Slide 8: Inventory Stock Levels Are Yet to Be Restored in the US
Industry INVENTORY STOCK LEVELS ARE YET TO BE RESTORED IN THE US EU Inventory Variation QoQ (mn euros) 70.000 60.000 50.000 EU – normal inventory levels & US Inventory / Sales 40.000 Ratio is still at a very low point and a high demand for 30.000 goods continues. 20.000 10.000 - 1995-Q1 1996-Q1 1997
Slide 9: HLAG's Results: EBIT 2020 vs 2021
HLAG’S RESULTS EXTRAORDINARY RESULTS MAINLY DUE TO FREIGHT RATES, PARTIALLY OFFSET BY COST PRESSURE EBIT 2020 vs EBIT 2021 7.4x +24% 2021 US$/Ton 475 vs 2020 US$/TEU 379 4.2mmton (+2%) +10% +19% +11% +23% Total: +17% - US$ 2,167 mn +US$160/TEU 2021 US$/TEU 2,003 vs 2020 US$/TEU 1,115 +80% +34 TTEU +
Slide 10: Solid Result in 2021: EBITDA Quadrupled
HLAG’S RESULTS SOLID RESULT IN 2021 : EBITDA QUADRUPLED Capacity 2021 Financial Results 2021 2020 ∆% Transported volume 253 (TTEU) 11,872 11,838 0.3% Total Average freight rate vessels 2,003 1,115 80% (USD/TEU) Revenue (USD mm) 26,356 14,577 81% Transport expenses + D,A 1,769 TTEU (1,175) (1,015) 16
Slide 11: HLAG's Operational Results
HLAG’S OPERATIONAL RESULTS ROUTE OPTIMIZATION TO OVERCOME CONGESTION PROBLEMS Transport Volume per Trade 2020/2021 (TEUm) Freight Rate per Trade 2020/2021 (US$/TEU) 0.3% 79.7% 11,872 MMTEU 11,838 1,115 US$/TEU 2,003 100,0% 90,0% 17,7% +2% 17,4% 1,808 +38% 1,312 80,0% 70,0% 25,6% 24,4% +5% 1,745 +54%
Slide 12: HLAG's Commercial Strategy
HLAG’S COMMERCIAL STRATEGY QUALITY FREIGHT PRODUCT Source: Hapag-Lloyd Investor Report 2021 12
Slide 13: HLAG's Dividend Proposal
HLAG’S DIVIDEND PROPOSAL 2021 DIVIDEND IS 10x 2020 DIVIDEND Source: Hapag-Lloyd Investor Report 2021 13
Slide 14: Strong Results Considering Geographical Mix & Spot Exposure
Industry’s Results +6% STRONG RESULTS CONSIDERING GEOGRAPHICAL MIX & SPOT EXPOSURE Transported Volume 2020 vs 2021 (TEUm) Freight Rate 2020 vs 2021 (US$/TEU) 30.000 3.000 +127% +4% 25.000 2.500 +5% +78% +80% 20.000 2.000 +66% 15.000 1.500 +0% 10.000 1.000 5.000 +23% 500 0 0 EBIT Mg 2020 vs 2021 (%)
Slide 15: Outlook for the Full Year 2022
HLAG OUTLOOK FOR THE FULL YEAR 2022 Guidance 2021 FY 2022 (*) Earnings momentum Transport volume 11,872 TTEU Increasing slightly expected to remain on a high level in the 1H22, Avg. freight rate 2,003 USD/TEU Increasing moderately followed by a beginning normalization of earnings in the Avg. bunker
Slide 16: CSAV's Results 2021 vs 2020
CSAV’s results 2021 vs 2020 Net Income 2020 vs 2021 Lower average Appreciation Debt Level and of the dollar financial exp. to euro compensated by exchange rate exchange rate and its effect hedges effect to in the cover exposure in intercompany the dividend loan in euros payment These extraordinary r
Slide 17: CSAV's Results: Balance Sheet 2021 vs 2020
CSAV’s results BALANCE SHEET 2021 vs 2020 Main reasons in MMUS$ • HLAG Stake (w/PPA) : +3,220.4 mn As of December 31, As of December 31, ASSETS Change • Other Reserves: +16.0mn 2021 2020 • HLAG Div. -225.7mn MM US$ MM US$ % MM US$ Current assets 25.4 82.2 (69.1%) (56.8) • Effect due to interests rec
Slide 18: Share Price Evolution
- 1,00 2,00 3,00 4,00 5,00 6,00 01-02-2017 1/20/2017 02-09-2017 03-01-2017 3/21/2017 04-10-2017 4/28/2017 CSAV’s results 5/18/2017 06-07-2017 6/27/2017 7/17/2017 08-04-2017 SHARE PRICE EVOLUTION 8/24/2017 9/13/2017 10-03-2017 YTD 2021 2020 10/23/2017 11-10-2017 11/30/2017 12/20/2017 01-09-2018 1/29/
Slide 19: CSAV's Success Story & Consolidation
CSAV’s SUCCESS STORY & CONSOLIDATION AFTER RISING US$ 3.3BN IN CAPITAL IN THE LASTS 10 YEARS, RESULTS ARE COMING IN CSAV’s Capital Increases 2011-2020 2011 2012 2013 2014 2015 2017 2020 Total 4.000 Restructuring: -Reorientation of the commercial strategy 3.500 -Reduce mkt volatility -Increase effici
Slide 20: CSAV's Results 2021 vs 2020: Net Debt and Leverage
CSAV’s results 2021 vs 2020 Net Debt (MMUS$) Leverage 600 577 Covenant < 1.3 24 0,23 0,12 Financial Debt Cash and Cash Net Debt Equivalent 2021 2020 Total Assets (MMUS$) Free Asset Ratio (%) 6.025 13 10 3.036 Covenant > 1,615 Covenant > 1.3 2021 2020 2021 2020 Notes Leverage: Liabilities/Equity Free
Slide 21: ESG Strategy
CSAV ESG STRATEGY Responsible and Maintain an open transparent channel with investments Investors We are an actor in the Open Dialogue Promote global trade sustainable development E S of global Promote mitigating Strengthen trade environmental the industry’s measures Human G Capital Transparent Publ
Slide 22: We Are an Actor in the Sustainable Development of Global Trade
CSAV PURPOSE: WE ARE AN ACTOR IN THE SUSTAINABLE DEVELOPMENT OF GLOBAL TRADE ESG STRATEGY Integrity Passion Excellence Adaptation STAKEHOLDERS Other Industry Human Capital Players Development Enviromental Social Governance CSociety Workers Investor Relations Environmental Policy Supplier Policy Inve
Slide 23: Annexes
Annexes
Slide 24: CSAV's Results 2021 vs 2020
CSAV’s results 2021 vs 2020 Figures in USD million Result 2021 2020 Y-o-Y Equity-accounted investees 3,220.4 312.3 2,908.1 SG&A and Other Op. Income (23.1) (9.6) (13.4) Operational Result (with equity-accounted investees) 3,197.3 302.7 2,894.6 Financial result & ex. rate diff. (20.2) (24.4) 4.2 Taxe
Slide 25: CSAV's Results: Cash Flow 2021 vs 2020
CSAV’s results CASH FLOW 2021 vs 2020 Main reasons in MMUS$ 2021: Statements of Cash Flow As of December 31, • Board Compensation: -9.1mn Change 2021 2020 • G&A expenses: -10.3mn • Lease & asset sale & taxes: 0.4mn Cash and cash equivalents at the beginning of the period 81.7 53.6 52.3% 28.0 2020: C
Slide 26: HLAG Updated Its 2023 Strategy Launched in 2018
HLAG UPDATED ITS 2023 STRATEGY LAUNCHED IN 2018 SUSTAINABILITY AT THE CORE OF THE BUSINESS Source: HLAG 2021 CMD Presentation 26
Slide 27: Be Profitable
BE PROFITABLE PROFITABILITY TROUGHOUT THE ECONOMIC CYCLE Source: HLAG 2021 CMD Presentation 27
Slide 28: Remain a Global Player
REMAIN A GLOBAL PLAYER GLOBAL MARKET SHARE (EX-INTRA ASIA) OF 10% 1. 10% Mkt Share excluding the Intra Asia trade 2. Expand in attractive growth markets (e.g. Africa & India) Market Share (%) 9,4% 10,0% 2021 2023 Target 3. Invest in the expansion of special cargo and in the reefer segment JadeWeserP
Slide 29: Become Number One for Quality
BECOME NUMBER ONE FOR QUALITY 4 MAIN OBJECTIVES IN PROCESS 1. 10 Quality Pledges have been formulated and gradually published 2. Expanding Land-side Capabilities 3. Best in-class web channel 4. Top 3rd Schedule Reliability “Door-to-door” (%) Online Bookings (%) Industry Reliability 23% ~75% 40% 31%
Slide 30: Sustainability
SUSTAINABILITY SETTING THE SUSTAINABLE COURSE OVER 3 PILLARS Source: HLAG 2021 CMD Presentation 30
Slide 31: Wrapping Up: Strategy & Targets
WRAPPING UP: STRATEGY & TARGETS FINANCIAL AND NON-FINANCIAL TARGETS FINANCIAL TARGETS NON-FINANCIAL TARGETS Source: HLAG 2021 CMD Presentation 31 31
Slide 32: HLAG Pillars to Achieve the Strategic Targets
HLAG 3 PILLARS TO ACHIEVE THE STRATEGIC TARGETS Source: HLAG 2021 Investor Presentation 32
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