Compania Sud Americana De Vapores S.a. · BCS:VAPORES
Compania Sud Americana De Vapores — IPO Roadshow (September 2020)
34 slides from Compania Sud Americana De Vapores's IPO roadshow presentation, Sep 3, 2020
Slide 1: CSAV Roadshow Presentation
CSAV Roadshow Presentation September 2020
Slide 2: Disclaimer
Disclaimer The information hereby contained is a brief description of the characteristics of the issuance of Compañía Sud Americana de Vapores S.A. (“CSAV”), not comprising all necessary information to make an investment decision. More information is available at CSAV's headquarters, BTG Pactual Chi
Slide 3: Indicative offering term sheet
Indicative offering term sheet Issuer Compañía Sud Americana de Vapores S.A. Type of Follow On (100% primary offering) Offering Deal Size US$ 350 mn (Offering of 14,523,000,000 new shares, at a subscription price of USD 0.0241 per share) Use of Pre-pay bridge loan obtained to increase stake in Hapag
Slide 4: Timetable
Timetable August Key Events L M W J V 3 4 5 6 7 10 11 12 13 14 17 18 19 20 21 ▪ August 21st: Ending of shareholder registration 24 25 26 27 28 31 ▪ August 27th: Beginning of CSAV’s September preemptive rights period (30 days) L M W J V 1 2 3 4 ▪ September 25th: Ending of CSAV’s 7 8 9 10 11 preemptiv
Slide 5: Presenters
Presenters Óscar Hasbún Roberto Larraín CEO CFO CSAV since 2011 CSAV since 2018 Member of the Supervisory Board Prev. CFO of SAAM S.A. since 1997 of Hapag-Lloyd Chairman of SM SAAM S.A 5
Slide 6: 1. Introduction to CSAV
EIICSAV 1. Introduction to CSAV a —
Slide 7: CSAV at-a-glance
CSAV at-a-glance CSAV Overview USD 2.51 bn USD 150 mn USD 2.90 bn Investment in HLAG USD 619 mn Bonds 2020 Q2 Assets USD 0.25 bn 2020 Q1 Liabilities USD 456 mn Tax Assets Other Loans Luksic Group(1) Chilean-based company 61.45% Well-known Luksic Group, that participates in the container shipping con
Slide 8: Luksic Group at-a-glance
Luksic Group at-a-glance 2019 Quiñenco Key Figures(1) 65% Luksic 83% Group Presence Revenues 128 ~69,000 ~30 Employees Countries USD bn Chile’s largest business consortium with increasing worldwide presence, holding a total wealth that surpasses USD 15 bn, property of the Luksic family AUM Risk rati
Slide 9: CSAV's consolidation & success story
CSAV’s consolidation & success story CSAV’s Foundation SAAM spin-off CSAV-HLAG Merger HLAG-UASC Merger Coming Capital Increase Merger of Compañía Port and tug-boat CSAV becomes the largest HLAG acquires 100% of Funds of USD 350 mn to paydown Chilena de Vapores business is shareholder of HLAG with a
Slide 10: 2. Key investment highlights
2. Key investment highlights
Slide 11: Overview of key investment highlights
Overview of key investment highlights Industry with solid fundamentals, well positioned to overcome the coronavirus crisis HLAG is a leading global shipping player recognized for its profitability and service-quality CSAV is a clean pass-through vehicle to obtain exposure to Hapag-Lloyd 11
Slide 12: Overview of key investment highlights
Overview of key investment highlights Industry with solid fundamentals, well positioned to overcome the coronavirus crisis HLAG is a leading global shipping player recognized for its profitability and service-quality CSAV is a clean pass-through vehicle to obtain exposure to Hapag-Lloyd 12
Slide 13: Supply growth is healthier than Pre-Subprime Crisis
Supply growth is healthier than Pre-Subprime Crisis Record Low Orderbook Supply Changes World fleet (TEU mn) Orderbook (TEU mn) Orderbook-to-fleet (%) 28 70% Speculative orders have almost disappeared ▪ Higher barriers to entry and non-speculative 24 60% growth by carriers and alliances 20 50% ▪ Res
Slide 14: Competitive landscape reshaped by industry consolidation…
Competitive landscape reshaped by industry consolidation… HLAG's Position: 5th largest player in terms of capacity Carrier capacity (TTEU) Global capacity share(1) (%) 2013 43% market share 17% market share 14% 13% 8% 4% 4% 4% 4% 3% 3% 3% 3% 3% 2% 2% 2% 2% 2% 2% 2% 1% 60% market share 2.5 2.3 1.5 0.
Slide 15: … and the emergence of worldwide shipping alliances
… and the emergence of worldwide shipping alliances Global Shipping Alliances THE Alliance Ocean Alliance 2M Members Global Market Share(1) ~ 80.0% Transpacific 29% 44% 21% Market Share(1) Per Trade Atlantic 35% 14% 46% Far East 23% 37% 39% Total Vessels 605 1,183 1,224 Aggregate Container Capacity
Slide 16: Industry's capacity to immediately adapt to the current context
Industry’s capacity to immediately adapt to the current context Adjustment Capacity in Major Trades (YoY %) Far-East Transpacific 7% (0%) (0%) (5%) (4%) (5%) (5%) (8%) (10%) (11%) (14%) (13%) (15%) (16%) (17%) (21%) Jan/01/2020 Feb/01/2020 Mar/01/2020 Apr/01/2020 May/01/2020 Jun/01/2020 Jul/01/2020
Slide 17: Evolution of ex-bunker freight rate
Evolution of ex-bunker freight rate Ex-Bunker Freight Rate SCFI⁽¹⁾ SCFI - Bunker Consumption Margin IFO 380⁽²⁾ (3.5%) VLSFO⁽²⁾ (0.5%) 1,600 1,400 1,200 1,000 Avg. 2010 1,123 USD / TEU 800 Avg. 2012 893 Avg. 2020 Avg. 2014 (6M) 787 600 812 Avg. 2017 YTD 846 Avg. 2013 Avg. 2018 Avg. 2019 Avg. 2011 706
Slide 18: Overview of key investment highlights
Overview of key investment highlights Industry with solid fundamentals, well positioned to overcome the coronavirus crisis HLAG is a leading global shipping player recognized for its profitability and service-quality CSAV is a clean pass-through vehicle to obtain exposure to Hapag-Lloyd 18
Slide 19: HLAG: operational and financial figures H1 2020 (1/2)
HLAG: operational and financial figures H1 2020 (1/2) Hapag-Lloyd’s Latest Results Capacity H1 2020 Financial results H1 2020 2020 H1 2019 H1 ∆% 2019 FY Transported 5,755 5,966 (3.5%) 12,037 volume (TTEU) 1,736 TTEU Vessels’ aggregate Average freight rate 1,104 1,071 3.1% 1,072 capacity (USD/TEU) Re
Slide 20: HLAG: operational and financial figures H1 2020 (2/2)
HLAG: operational and financial figures H1 2020 (2/2) Financial position(1) H1 2020 Capital structure Assets Liabilities USD 19,152 mn USD 11,652 mn Strengthened liquidity Healthy debt position USD 1,691 mn ∆ 194.6% USD 6,367 mn ∆ 12.2% Cash & Eq. Last 6 Months Net Debt Last 6 Months (Inc. Lease Lia
Slide 21: Consolidated & balanced global presence
Consolidated & balanced global presence World Coverage Through 121 Service Points(1) Largest Member of THE Alliance Asia IRT Europe – N. America (incl. Far East – o THE Alliance is a leading alliance in (incl. IRT N. Europe) ME / Indian Ocean; Asia / Oceania – 21 services Far East – Oceania) fleet s
Slide 22: Relevant ownership of one of the most efficient & modern fleets in the industry
Relevant ownership of one of the most efficient & modern fleets in the industry Hapag-Lloyd’s Largest & Youngest Vessels are Mostly Owned Vessel Capacity (TEU) Owned Vessels (% capacity) Avg. Vessel Age (years) 13,400 - 20,000 100% 5.6 6,500 – 13,400 60% 8.4 0 – 6,500 26% 14.5 Highest Ownership (%)
Slide 23: Highest industry profitability due to synergy-capture & efficiencies (1/2)
Highest industry profitability due to synergy-capture & efficiencies (1/2) Top Profitability within its Peers Throughout 2019 Outstanding Operational Management Over Time EBIT⁽¹⁾ (USD mn) EBIT / TEU (USD / TEU) Hapag-Lloyd 75 97.9 68.8 73.7 77.2 18.8 563 Maersk 65 469 414 440 CMA CGM 50 110 EBIT / T
Slide 24: Strategy 2023: keystones for value creation
Strategy 2023: keystones for value creation Continuously earn & Mid and long-term differentiating strategy keep the “right to play” 1st No. 1 Environmental Superior Land-side Quality Carrier Responsibility Capabilities Continuous Cost & Revenue Management Best-in-class Focus on Selected Opportunisti
Slide 25: Overview of key investment highlights
Overview of key investment highlights Industry with solid fundamentals, well positioned to overcome the coronavirus crisis HLAG is a leading global shipping player recognized for its profitability and service-quality CSAV is a clean pass-through vehicle to obtain exposure to Hapag-Lloyd 25
Slide 26: CSAV's long-term vision: significant influence over Hapag-Lloyd
CSAV’s long-term vision: significant influence over Hapag-Lloyd … ➢ CSAV has completed its acquisition process to achieve a 30% stake in Hapag-Lloyd ➢ With this stake, CSAV obtained “Grandfather Rights”, increasing its already significant influence over HLAG Evolution of stake owned in Hapag-Lloyd 2
Slide 27: … achieved through rational & profitable investments …
… achieved through rational & profitable investments … Current book value of investments in Hapag-Lloyd (USD mn) 47.7 USD Book value per share 33.9 USD 3,000 40.4 EUR 28.7 EUR 2,500 727 2,000 1,500 2,515 1,000 1,788 500 0 Book Value Purchase Price Book Value of Investment of Investment Allocation Ad
Slide 28: … but trading at a high holding discount over Hapag-Lloyd
… but trading at a high holding discount over Hapag-Lloyd CSAV’s share performance has not mirrored that of Hapag-Lloyd during 2020 CSAV – HLAG’s share price (Base 100) and holding discount (%) January 4th, 2016 August 26th, 2020 HLAG: USD 21.18 / share HLAG: USD 59.92 / share CSAV: USD 0.0189 / sha
Slide 29: CSAV: An attractive pass-through investment vehicle
CSAV: An attractive pass-through investment vehicle CSAV’s main guidelines to be an attractive pass-through investment vehicle Dividend payments 1 ✓ Recently approved Capital Reduction to absorb equity Acct. Losses and enable future Dividend Payments ✓ We see no need for further share acquisitions i
Slide 30: Key takeaways
Key takeaways Industry with solid fundamentals, well positioned to overcome the corona virus crisis • Supply is healthier than pre-subprime crisis • Consolidation and alliances reshaped the competitive landscape • Capability to immediately adapt to different environments • Higher profitability due t
Slide 31: 3. Appendices
3. Appendices
Slide 32: CSAV: new financial structure for dividend distribution
CSAV: new financial structure for dividend distribution USD mn Dec-16 Dec-17 Dec-18 Dec-19 Jun-20 Assets: equity investment in HLAG 30.0% 86.6% Cash & Eq. 55 42 24 54 127 Stake in HLAG of CSAV’s achieved total assets Equity Investments 1,772 1,932 1,939 2,168 2,515 Tax Assets 295 247 255 255 249 Oth
Slide 33: CSAV: simple & efficient investment vehicle
CSAV: simple & efficient investment vehicle P&L Key Takeaways USD mn 2019 H1 ’19 H1 ’20 Revenue Operating 93.0 46.1 0 1. No operating records as of 2020 Businesses Closed COGS (93.9) (45.4) 0 Gross profit (0.9) 0.8 0 2. Reduced SG&A expenses SG&A and others (9.7) (3,.2) (2.8) Reduced leverage & fina
Slide 34: Hapag-Lloyd: financial overview
Hapag-Lloyd: financial overview Balance Sheet Income Statement Million USD Dec-2019 Jun-2020 2019 2019 H1 2020 H1 Assets Cash & Equivalents 574 1,691 Revenue [USD mn] 14,150 7,047 7,005 Trade Receivables 1,391 1,298 Property, Plant & Equipment 11,296 11,411 Goodwill 1,796 1,796 EBITDA [USD mn] 2,229
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