Compania Sud Americana De Vapores S.a. · BCS:VAPORES
Compania Sud Americana De Vapores — Investor Presentation (October 2021)
24 slides from Compania Sud Americana De Vapores's investor presentation, October 2021
Slide 1: Compañía Sud Americana de Vapores Corporate Presentation
Compañía Sud Americana de Vapores Corporate Presentation October 2021
Slide 2: CSAV at a glance
CSAV at a glance Who are we? Chilean-based company that participates in the container shipping business, through its stake Well-known Quiñenco Group, controlled by the in Hapag-Lloyd after their merger in 2014 local Luksic family, is CSAV’s main shareholder (66.5%) 2Q21 LTM Financial Position CSAV 6
Slide 3: CSAV: consolidation & success story
CSAV: consolidation & success story CSAV’s SAAM spin-off CSAV-HLAG Merger HLAG-UASC Merger Successful Capital Increase Foundation Port and tug- CSAV becomes the HLAG acquires 100% Funds of USD 350 mn to paydown Merger of boat business is largest shareholder of of United Arab short-term debt issued t
Slide 4: An industry that has evolved favorably during the last decade
Industry AN INDUSTRY THAT HAS EVOLVED FAVORABLY DURING THE LAST DECADE AND SO HAS CSAV A more mature industry Non-Speculative Players 15% Average 8,1% 10% ▪ Higher barriers to entry and non-speculative growth by Average 4,0% carriers and alliances 5% ▪ Restrictions on vessel financing and cost of ca
Slide 5: A more conservative approach on investments
Industry AN INDUSTRY THAT HAS EVOLVED FAVORABLY DURING THE LAST DECADE AND SO HAS CSAV A more Conservative approach on Investments 28 90% Orderbook-to-fleet (%) 24 Average 2005-2008: 55% 80% Oct-2021 70% 20 23.02% 60% TEU mn 16 50% 12 40% oct-2020 30% 8 8.4% 20% 4 10% 0 0% 2005 2006 2007 2008 2009 2
Slide 6: Sustainability at the core of the business
Industry AN INDUSTRY THAT HAS EVOLVED FAVORABLY DURING THE LAST DECADE AND SO HAS CSAV Sustainability at the core of the Business Decarbonization: LNG & Scrubbers Emission Targets Global Fleet 2010 100% ▪ IMO Target: -40% in carbon intensity by 2030 compared to 2008 Global Fleet 2021 70% 29% 1% ▪ HL
Slide 7: HLAG has a solid commercial strategy
HLAG AND WITH THESE CHANGES WE HAVE ADAPTED HLAG has a Solid Commercial Strategy High % of Own Fleet Geographically Diversified EMA - Others Atlantic ▪ 60% of own fleet 6% 15% ▪ 2nd in the Industry Transpacific Latin America 15% 26% Intra-Asia 5% Own Fleet Leasings Middle East Far East 13% 20% Well
Slide 8: Volatile demand during the Covid pandemic
Industry recent events VOLATILE DEMAND DURING THE COVID PANDEMIC Global Demand Growth (%YoY) 25 Port of Yiantian, Suez Canal China operating 20 Blockage at low capacity 15 Global Demand Plunged 10 Covid started/Lockdowns in China High congestion in Asian Ports 5 0 -5 Demand growth stabilizes compare
Slide 9: Supply evolution during the pandemic
Industry SUPPLY EVOLUTION DURING THE PANDEMIC Fleet deployment has adapted quickly to demand evolution. Idle Fleet in the last's quarters at minimum levels Idle Fleet evolution¹ 12% 2.8 2009 May 2020 11.9% 11.6% 10% 2.4 Idle-to-world fleet (%) TEU (mn) 2.0 8% 1.6 6% 1.2 Agu-2021 4% 0.8 0.7% 0.4 2% -
Slide 10: Congestion worldwide
Industry CONGESTION WORLDWIDE Average Days of Delays per Year HLAG average container usage days +16% 1H20 1H21 10 Source: HLAG Investor Presentation August 2021– Sea- Intelligence – eeSea (11th of August)
Slide 11: Freight rates, a consequence of logistical problems
Industry FREIGHT RATES, A CONSEQUENCE OF LOGISTICAL PROBLEMS Freight Rates Evolution (US$/TEU) SCFI Shangai-Europe Shanghai-S America Shanghai-WC America Shanghai-EC America 10,000 Most trades are impacted with rising tariffs 8,000 SCFI Index YTD: 74% 6,000 4,000 2,000 0 ago-19 ago-20 ago-21 feb-19
Slide 12: Healthy inventory stock levels are yet to be restored
Industry “HEALTHY” INVENTORY STOCK LEVELS ARE YET TO BE RESTORED EU Inventory Variation QoQ (mn euros) 40,000. 30,000. The EU is recovering inventories, while 20,000. the US has a very low inventory level 10,000. and a high demand for goods 0. continues. 1999-Q1 2017-Q1 1995-Q1 1996-Q1 1997-Q1 1998-
Slide 13: Current challenges driven by several factors
Industry CURRENT CHALLENGES DRIVEN BY SEVERAL FACTORS 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 2,000 100 1,000 0 0 2012 2014 2016
Slide 14: HLAG's Results: solid first half of the year
HLAG’s Results SOLID FIRST HALF OF THE YEAR 1H2021 Capacity Financial result 1H 2021 1H21 1H20 ∆% Transported volume 250 (TTEU) 6,004 5,755 4% Total Average freight rate vessels 1,612 1,104 46% (USD/TEU) Revenue (USD mm) 10,551 7,005 51% Transport expenses + D,A 1,761 TTEU (1,081) (1,031) 5% & I (US
Slide 15: CSAV's results 1H21 vs 1H20
CSAV’s results 1H21 vs 1H20 Figures in USD million Result 1H21 1H20 Y-o-Y Equity-accounted investees 982.8 89.6 893.2 SG&A and Other Op. Income -9.0 -2.8 -6.2 Financial result & ex. rate diff. -14.0 -14.8 0.8 Taxes 14.3 -5.4 19.7 Discontinued operations 0.004 0.2 -0.2 Net income 974.2 66.9 907.3 The
Slide 16: HLAG outlook for FY 2021 has been updated
HLAG FULL YEAR 2021 The outlook for the FY 2021 has been updated Guidance 2020 FY 2021 (*) Transport volume 11,838 TTEU Increasing slightly Strong global demand for container transports Avg. freight rate 1,115 USD/TEU Increasing clearly and continued supply-chain Avg. bunker Increasing clearly disru
Slide 17: Closing remarks
CLOSING REMARKS CSAV ▪ Is a clean pass-through vehicle to obtain exposure to Hapag-Lloyd (30%) ▪ Has an exclusively focus on the world trade ▪ Simple & efficient structure enabling dividend payments ▪ Liquid pass-through vehicle, with higher free float than HLAG Hapag-Lloyd, CSAV’s main investment ▪
Slide 18: Annexes
Annexes we — can ‘oil stnituny me A
Slide 19: We are an actor in the development of a sustainable global trade
CSAV WE ARE AN ACTOR IN THE DEVELOPMENT OF A SUSTAINABLE GLOBAL TRADE Solid Corporate Governance and pushing for further initiatives In continuous process to evaluate and create sustainable value Risk Management CPM certified by: audited by: 19
Slide 20: CSAV's results 1H21 vs 1H20
CSAV’s results 1H21 vs 1H20 Directors' Lower Debt Level Appreciation compensation and financial exp. of the dollar provision compensated by to euro exchange rate exchange rate hedges effect to and its effect cover exposure in in the the dividend intercompany payment loan in euros The improved perfor
Slide 21: CSAV's results 2Q21 vs 4Q20
CSAV’s results 2Q21 vs 4Q20 Net Debt (MMUS$) Leverage Covenant < 1.3 155.0 110.8 44.2 0.12 0.10 Financial debt Cash & cash Net debt equivalent 2Q21 4Q20 Total Assets (MMUS$) Free Asset Ratio (%) 3,774 3,036 24.3 Covenant > 1.615 13.2 Covenant: > 1.3 2Q21 4Q20 2Q21 4Q20 21
Slide 22: HLAG's results: extraordinary results mainly due to freight rates
HLAG’s Results EXTRAORDINARY RESULTS MAINLY DUE TO FREIGHT RATES, COST PRESSURE IS ARISING Freight Rate EBIT H1 /Other Vessel & Handling & EBIT H1 2020 Volume Revenues Bunker Voyage Haulage Eq. & Repos. Personnel Dep./Others 2021 4,500 76 - 77 4,000 1H21 US$/Ton 421 Rising - 438 vs container - 62 -
Slide 23: HLAG's operational results
HLAG’s operational results STABLE VOLUMES, FREIGHT RATES INCREASING UNEVENLY Transport Volume per Trade 1H21vs1H20 (TEUm) Freight Rate per Trade 1H21vs1H20 (US$/TEU) 4.3% 46.0% 5,755 MMTEU 6,004 1,104 US$/TEU 1,612 100.0% 6.0% +2% 5.9% 1,358 +31%1 1,038 90.0% 16.0% +0% 15.3% 1,523 +8% 1,405 80.0% 70
Slide 24: Industry's results: strong results considering geographical mix
Industry’s Results STRONG RESULTS CONSIDERING GEOGRAPHICAL MIX & SPOT EXPOSURE Transport Volume 1H20 vs 1H21 (TEUm) Freight Rate 1H20s 1H21 (US$/TEU) 16,000 2500 +120% +10% +17% 1H20 1H21 1H20 1H21 +99% 14,000 2000 +94% 12,000 +5% +49% +46% +74% 10,000 1500 +40% +80% 8,000 +4% 6,000 1000 +19% 4,000
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