Compania Sud Americana De Vapores S.a. · BCS:VAPORES
Compania Sud Americana De Vapores — Non-Deal Roadshow (July 2020)
26 slides from Compania Sud Americana De Vapores's roadshow presentation, Jul 24, 2020
Slide 1: Non-Deal Roadshow Presentation
Non-Deal Roadshow Presentation July 2020
Slide 2: 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 2
Slide 3: 1. Introduction to CSAV
EIICSAV 1. Introduction to CSAV a —
Slide 4: 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 5: CSAV At-a-Glance
CSAV At-a-Glance CSAV Overview USD 2.5 bn USD 152 mn USD 2.8 bn Investment in HLAG USD 571 mn Bonds 2020 Q1 Assets USD 0.3 bn 2020 Q1 Liabilities USD 398 mn Tax Assets Other Loans Joint controllership 30% Chilean-based company that participates in the over Hapag-Lloyd is Stake container shipping hel
Slide 6: 2. Key Investment Highlights
2. Key Investment Highlights
Slide 7: 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 7
Slide 8: 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 8
Slide 9: 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 10: 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 0.8
Slide 11: 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 26% 41% 22% Market Share 1 Per Trade Atlantic 36% 13% 45% Far East 24% 36% 40% Total Vessels 605 1,183 1,224 Aggregate Container Capacity 4.
Slide 12: 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 (0%) (5%) (4%) (5%) (5%) (10%) (11%) (14%) (13%) (16%) (17%) (21%) 01/Jan/2020 01/Feb/2020 01/Mar/2020 01/Apr/2020 01/May/2020 01/Jun/2020 Recent Increase in Idle Fleet L
Slide 13: 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 Av. 2010 1,123 USD / TEU 800 Av. 2012 893 Av. 2014 Av. 2020 Av. 2013 YTD (6M) 600 812 Av. 2011 778 Av. 2017 807 Av. 2018 Av. 2019 657 706 686 400
Slide 14: 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 14
Slide 15: Hapag-Lloyd At-a-Glance
Hapag-Lloyd At-a-Glance Hapag-Lloyd Overview Operational Overview Financial Results 248 USD 14.2 bn Vessels Q1 2020 Revenue 2019 ~EUR 500 mn 5th EBIT 1H 2020 1.7 mn TEU Vessel Capacity USD 2.2 bn (+29% over H1 2019) Q1 2020 EBITDA 2019 5th largest container 2.6 mn TEU ~ EUR 1.15 bn shipping company
Slide 16: Consolidated & Balanced Global Presence
Consolidated & Balanced Global Presence World Coverage Through 121 Service Points(1) Largest Member of THE Alliance o THE Alliance is a leading alliance in Asia IRT fleet size and fleet age Europe – N. America (incl. Far East – (incl. IRT N. Europe) ME / Indian Ocean; Asia / Oceania – 21 services Fa
Slide 17: Relevant Ownership of One of the Largest & Newest Fleets
Relevant Ownership of One of the Largest & Newest 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 (%) & Large
Slide 18: Highest Industry Profitability Due to Synergy-Capture & Efficiencies
Highest Industry Profitability Due to Synergy-Capture & Efficiencies Top Profitability within its Peers Throughout 2019 Outstanding Operational Management Over Time EBIT ¹ (USD mn) EBIT / TEU (USD / TEU) Hapag-Lloyd 75 72.6 55.0 47.5 44.1 18.4 874 Maersk 65 (23.0) 466 524 407 140 CMA CGM 50 EBIT / T
Slide 19: 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 20: 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 20
Slide 21: 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 HLAG 2014 201
Slide 22: Achieved Through Rational & Profitable Investments
… Achieved Through Rational & Profitable Investments … Current Book Value of Investments in HLAG (USD mn) 43.6 EUR Book Value Per Share 31.0 EUR 3,000 47.6 USD 33.8 USD 2,500 727 2,000 1,500 2,508 1,000 1,781 500 0 Book Value Purchase Price Book Value of Investment of Investment Allocation Adjustmen
Slide 23: Trading at a High Holding Discount Over HLAG
… But Trading at a High Holding Discount Over HLAG CSAV’s Share Performance has not mirrored that of Hapag-Lloyd’s during 2020 CSAV – HLAG’s Share Price (Base 100) and Holding Discount (%) January 4th, 2016 July 15th, 2020 HLAG: USD 21.18 / share HLAG: USD 58.9 / share CSAV: USD 0.02 / share CSAV: U
Slide 24: 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 no see need to further stake acquisitions in
Slide 25: 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 26: 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
Compañía Sud Americana de Vapores S.A. (CSAV) — Non-Deal Roadshow (July 2020) on 6ix