Compania Sud Americana De Vapores S.a. · BCS:VAPORES
Compania Sud Americana De Vapores — Q1 2020 Earnings Presentation
17 slides from Compania Sud Americana De Vapores's earnings presentation, Jun 3, 2020
Slide 1: Investor Presentation Q1 2020 Results
Investor Presentation Q1 2020 Results June 3, 2020
Slide 2: Highlights
Highlights CSAV – Net income of US$ 4.7 million for first quarter 2020 Mainly from its stake in the container shipping business through Hapag-Lloyd. – Stake in Hapag-Lloyd increases to 30% in January 2020 After acquiring 2.21% with a total investment of US$ 450 million between 2019 and 2020 – Appr
Slide 3: Industry
Industry Orderbook-to-fleet Newly placed orders [TEU m, %] [TEU m] Orderbook 61% Vessels > 13,999 TEU 2.2 2.0 50% Share of world fleet 1.8 6.5 1.1 1.2 6.0 0.8 0.8 38% 0.4 0.2 0.2 5.0 27% 28% 2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD 21% 21% 4.3 18% 19% 16% 3.9 13% 3.8 12% 11% 11% 3.6 3.4 Shar
Slide 4: Industry: Net capacity growth in 2020e
Industry Net capacity growth in 2020e 5.0% -1.5% -1.5% 1.9% Gross capacity Scrapping Slippage Net capacity Estimated Potential growth growth Fleet ’out of additional service’ for capacity scrubber measures retrofits Source: Drewry Forecaster (Forecaster 1Q20), eeSea (May 2020) Extracted from HLAG’s
Slide 5: Industry: Supply / Demand Balance
Industry Supply / Demand Balance 9.6% 8.0% 6.3% 4.8% 5.6% 3.9% 3.7% 1.4% 3.8% 4.5% 1.2% 0.8% -0.4% -10.6% 2014 2015 2016 2017 2018 2019e 2020e 2021e Demand Supply Source: Drewry (Forecaster 1Q20), Seabury (December 2019), Clarksons (various issues), HLAG. Extracted from HLAG’s Investor Presentation
Slide 6: Industry: SCFI vs Bunker Consumption
Industry SCFI vs Bunker Consumption (May 2020) SCFI - Bunker Consumption Margin (3) SCFI (1) IFO 380 (3,5%) (2) VLSFO (0,5%) (2) 1.200 1.000 800 600 Avg. Avg. Margin Avg. Margin Avg. Margin Margin Avg. Margin 706 674 671 769 400 Avg. Margin 625 564 200 0 Mar-15 May-15 Sep-15 Nov-15 Mar-16 May-16 Sep
Slide 7: Q1 2020 Results: CSAV Net Income
Q1 2020 Results: CSAV CSAV Net Income 1T 2019 vs 1T 2020 Figures in USD million Equity-accounted investees (HLAG) CSAV Net Share of Effect of Badwill Deferred Discontinued CSAV Net Income HLAG's PPA on Financial result Taxes operations Income Q1 2020 Result Results & GAE Q1 2020 32.5 (19.9) (0.6) 2.
Slide 8: Q1 2020 Results: CSAV
Q1 2020 Results: CSAV Figures in USD million Q1 20120 Q1 2019 Var. SG&A (1.4) (2.0) 0.6 Others incomes 0.2 0.3 (0.1) Operating income (loss) (1.2) (1.7) 0.5 EBITDA (w/o equity-accounted investees) (1.2) (1.7) 0.5 Equity-accounted investees 7.4 32.3 (24.9) Financial result & ex. rate diff. (6.9) (1.4
Slide 9: Financial Position: CSAV
Financial Position: CSAV (Figures in USD million) Net Debt (Mar 2020) Leverage 538.9 Covenant: <1.3 549.8 10.6 0.26 0.13 Financial debt Cash & cash Net debt Mar 2020 Dec 2019 equivalent Total Assets Free Asset Ratio 2.804 2.517 10.1 Covenant: >1,615 4.5 Covenant: >1.3 Mar 2020 Dec 2019 Mar 2020 Dec
Slide 10: Capital reduction at CSAV: US$ 1,230 million
Capital reduction at CSAV: US$ 1,230 million • CSAV is blocked from distributing earnings due to the important accumulated losses of US$1,228.9 million, which it will recover in the long term with earnings generated by Hapag-Lloyd. • Absorbing this loss will allow CSAV to once again distribute divid
Slide 11: Capital increase 2020 in CSAV: US$ 350 million
Capital increase 2020 in CSAV: US$ 350 million Use of Proceeds Loan payments, which will allow it to reduce financial liabilities from US$545 million to US$195 million. Acquisition of stake in Hapag-Lloyd • Between March 2019 and January 2020, CSAV acquired 4.14% of Hapag-Lloyd to reach 30%, with a
Slide 12: Historical accounting of investment in HLAG
Historical accounting of investment in HLAG Book Value Book Value w/o Ownership Accumulated Year Event Movement 03.31.2020 Accounting Effect Interest (%) No. of Shares MUS$ MUS$ Asset contribution 681.3 681.3 2014 CSAV-HLAG merger 34.00% 35,665,752 Capital contribution 243.0 243.0 Accounting effects
Slide 13: Q1 2020 Result: Hapag-Lloyd
Q1 2020 Result: Hapag-Lloyd Evolution of Revenue, Transport Expenses and Group Net Income ∆ +5,9% ∆ +5.0% ∆ USD -82 m Revenue Transport expenses Group net income USD 3,684 m 1,066 USD/TEU USD 27.3 m +1.4% +6.2% USD -39 m Freight rate Bunker price EBITDA 1,094 USD/TEU 523 USD/mt USD 517 m -1.2% USD -
Slide 14: Hapag-Lloyd: Performance Safeguarding Program (PSP)
Hapag-Lloyd: Performance Safeguarding Program (PSP) To protect against downside risk of COVID-19 and to safeguard earnings and liquidity Cost savings Investment Financial Government prioritization contingency support Substantial capacity No commitments for vessel Draw-down of USD 400 m Evalu
Slide 15: Hapag-Lloyd: PSP Financial Contingency Plan
Hapag-Lloyd: Performance Safeguarding Program (PSP) Financial Contingency Plan Available liquidity in May [USD m] ~1,900 ~275 ~495 ~220 1,215 185 ~190 185 ~1,220 1,030 Reported Drawdown of Additional available Additional Total available Liquidity existing ABS funding credit Liquidity credit commitme
Slide 16: Outlook: HLAG's 2020 Guidance
Outlook HLAG´s 2020 Guidance Updated Outlook FY 2019 for 2020 Transport volume 12,037 TTEU Average bunker price 416 USD/mt EBITDA EUR 1,986 m EUR 1.7 – 2.2 bn EBIT EUR 811 m EUR 0.5 – 1.0 bn Extracted from HLAG’s Investor Report FY 2019, available at https://www.hapag-lloyd.com/en/ir.html 16
Slide 17: Outlook
Outlook CSAV has focused exclusively on the container shipping business since early 2020, after close its vehicle transport business. Following shareholder approval, CSAV expects to complete a capital increase of US$350 million during 2020 and obtain its final debt structure. This structure, com
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