Compania Sud Americana De Vapores S.a. · BCS:VAPORES
Compania Sud Americana De Vapores — H1 2023 Earnings Presentation
25 slides from Compania Sud Americana De Vapores's earnings presentation, August 2023
Slide 1: Investor Meeting 1H 2023 Results
Investor Meeting 1H 2023 Results August 2023
Slide 2: Opening Remarks: Hapag-Lloyd, CSAV's main investment
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS OPENING REMARKS Hapag-Lloyd, CSAV’s main investment CSAV + Weaker results after an extraordinary 2022, continuing a market normalization process. Revenues decreased (-42%yoy) due to lower • 1H23 – US$347 mn in net income
Slide 3: Demand Evolution 2020-2023
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS DEMAND EVOLUTION 2020-2023 WEAK GLOBAL DEMAND AFTER COVID PANDEMIC LEADING TO CHALLENGING MARKET ENVIRONMENT Global Demand Growth (%YoY) Suez Canal Port of Yiantian, 25,0 Blockage China operating at Covid started/Lockdown
Slide 4: Congestion Has Dissipated
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY CONGESTION HAS DISSIPATED Port Congestion Fleet Capacity at Port or Anchorage Average Port Waiting Time (+8,000 TEU vessel) 38 20,0 18.1 37 18,0 36 16,0 % fleet capacity 35 14,0 34.5 Hours 34 12,0 33 10,0 32 31.6
Slide 5: Inventory Stock Levels
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY INVENTORY STOCK LEVELS EU Inventory Variation QoQ (mn euros) 100.000 80.000 60.000 Demand for container transport 40.000 remained low in 2Q 2023 as a 20.000 result of inventory destocking - 2004-Q1 1995-Q1 1996-Q
Slide 6: Freight Rates Stable After Bottoming Out at End of 1Q 2023
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY FREIGHT RATES STABLE, AFTER BOTTOMING OUT AT THE END OF 1Q 2023 Freight Rate Evolution (US$/TEU) SCFI Shanghai-Europe Shanghai-WC America Shanghai-EC America Shanghai-S America 12.000 Average SCFI Index 1H2021: 3
Slide 7: Lower Bunker Costs in 1H23 Compared to 1H22
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY LOWER BUNKER COSTS IN 1H23 COMPARED TO 1H22 Bunker Price Development (US$/Ton) 1.200 HSFO (3.5% Sulphur) VLSFO (0.5% Sulphur) 20% 980 1.000 1H23 HLAG Consumption 80% 800 VLSFO Average 2022 US$729 530 600 VLSFO Av
Slide 8: Supply Evolution Throughout the Years
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY SUPPLY EVOLUTION THROUGHOUT THE YEARS Orderbook to Fleet (%) + Demand will likely remain low 28 70% until destocking cycle is Nov 2007 completed 61.3% 24 60% + New capacity will likely exceed demand in the next q
Slide 9: Zoom to the Supply/Demand Balance
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY ZOOM TO THE SUPPLY/DEMAND BALANCE Supply & Demand Balance Net Capacity Growth Capacity growth 2023 Scheduled deliveries +10% Less slippage to following years - 2 to -4% Less scrapping - 0 to -1% Nominal fleet gro
Slide 10: HLAG's Results: Results Are Declining After the Covid Period
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG’S RESULTS RESULTS ARE DECLINING AFTER THE COVID PERIOD 1H22 EBIT vs 1H23 EBIT MMUS$ -72% (633) (7.082) -205 TTEU -3.4% 1H22 US$/TEU 2,855 -38% 1H23 US$/TEU 1,761 Op. Costs per TEU yoy: -5% -US$66/TEU 9.919 389 (25) (
Slide 11: Outlook for Full Year 2023 Was Confirmed
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG OUTLOOK FOR THE FULL YEAR 2023 WAS CONFIRMED AND CONSIDERS A GRADUAL NORMALIZATION OF EARNINGS FY 2022 Guidance FY 2023 (*) Transport volume 11,843 TTEU Increasing slightly Avg. freight rate 2,863 USD/TEU Decreasing
Slide 12: SAAM Ports & Logistics Acquisition – Operation Completed
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG – RECENT ACQUISITION SAAM PORTS & LOGISTICS ACQUISITION – OPERATION COMPLETED Terminal activities to become Hapag-Lloyd’s second business pillar SAAM Ports (August 1, 2023) • 10 Terminals in the Americas • >3 TEU m c
Slide 13: Newbuild LNG-Powered Vessels Will Contribute to HLAG's CO2 Reduction Targets
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS NEWBUILD LNG-POWERED VESSELS WILL SUBSTANTIALLY CONTRIBUTE TO HLAG’S CO2 REDUCTION TARGETS HLAG’S CO2 REDUCTION MEASURES • Deployment of highly efficient 13k TEU and 24k TEU newbuild vessels • Use of LNG to instantly redu
Slide 14: CSAV's Results 1H22 vs 1H23
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CSAV’s RESULTS 1H22 vs 1H23 Net Income 1H22 vs 1H23 (1,899) 1H22 vs 1H23 1H22 HLAG Net Income: 9,466 Deferred Tax Assets: -496.9 -67% 1H23 HLAG Net Income: 3,133 German Tax Expenses: -43.1 Chilean Tax Expenses: -13.7 2,78
Slide 15: CSAV's Results: Retentions Balance 2Q23
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CSAV’s RESULTS RETENTIONS BALANCE 2Q23 Retentions Balance as of June 30, 2023 Dividend Payment Dividend Retention Rate Retention Refund Entity Date [EUR mn] [%] [EUR mn] Entity Hapag-Lloyd May 31, 2022 1,845 26.375% 487*
Slide 16: Balance Sheet 2Q23 vs 4Q22
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CSAV’s RESULTS Main reasons in MMUS$ BALANCE SHEET 2Q23 vs 4Q22 + 26,375% Retention Paid (EUR +876 mn): +929 mn ASSETS June 30, 2023 December 31, 2022 Change + 10,550% Retention Paid (EUR +183mn): +199 mn + 15,825% WHT Pa
Slide 17: Cash Flow 1H23 vs 1H22
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSINGANNEXES REMARKS CSAV’s RESULTS CASH FLOW 1Q23 vs 1Q22 Main reasons in MMUS$ As of June 30, Statements of Cash Flow Change + 15,825% WHT paid (Tax Credit): -302 mn 2023 2022 + 10,550% Retention paid: -201 mn Cash and cash equivalen
Slide 18: KPIs 2Q23 vs 4Q22
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CSAV’s RESULTS KPI’s 2Q23 vs 4Q22 Net Debt (MMUS$) Leverage 201 Covenant < 1.3 122 79 0.30 0.05 Financial Debt Cash and Cash Net Debt 2Q2023 4Q2022 Equivalent Total Assets (MMUS$) Free Asset Ratio (%) 10,297 42.5 8,523 15
Slide 19: CSAV ESG Strategy
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CSAV ESG STRATEGY Responsible and Maintain an open transparent channel with investments Investors Open Dialogue Promote global trade E S WE ARE AN ACTOR IN THE SUSTAINABLE DEVELOPMENT Promote Strengthen the OF GLOBAL TRAD
Slide 20: ESG – Recent Events
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CSAV ESG – RECENT EVENTS 20
Slide 21: Closing Remarks
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CLOSING REMARKS CSAV • Efficient vehicle to invest in Hapag-Lloyd • Solid balance sheet • Decreasing results due to market normalizing Hapag-Lloyd, CSAV’s main investment + Demand for container transport remained low in H
Slide 22: Annexes
ANNEXES
Slide 23: HLAG's Results: 1H23 Market Normalization
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG’S RESULTS 1H23 MARKET NORMALIZATION: EBITDA 65% DOWN Capacity Financial Results 1H23 1H22 ∆% Transported volume 258 (TTEU) 5,807 6,012 -3% Total Average freight rate vessels 1,761 2,855 -38% (USD/TEU) Revenue (USD mn
Slide 24: CSAV's Results 1H23 vs 1H22
ANNEXES CSAV’s RESULTS 1H23 vs 1H22 Figures in USD million Result 1H23 1H22 Y-o-Y Equity-accounted investees 935.5 2,834.3 (1,898.8) SG&A and Other Op. Income (6.8) (19.5) (12.7) Operational Result (with equity-accounted investees) 928.7 2,814.7 (1,886.1) Financial result & ex. rate diff. (20.5) (19
Slide 25: ESG Strategy
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS 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
Compañía Sud Americana de Vapores S.A. (CSAV) — H1 2023 Earnings Presentation on 6ix