Compania Sud Americana De Vapores S.a. · BCS:VAPORES
Compania Sud Americana De Vapores — CSAV — Q2 2024 Earnings Presentation
25 slides from Compania Sud Americana De Vapores's earnings presentation, August 2024
Slide 1: CSAV 2Q24 Results
EICSAV CSAV 2Q24 Results Aug 2024
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 + Strong first half of 2024 with an upturn in demand. • 2Q24 – US$28.8 mn profit driven by good result of HLAG -The security situation in the Red Sea continues (US$
Slide 3: Red Sea security issues continue to cause disruptions, vessel and box shortages
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS RED SEA SECURITY ISSUES CONTINUE TO CAUSE DISRUPTIONS, RESULTING IN VESSELS & BOXES SHORTAGES 3
Slide 4: Demand & idle fleet evolution 2020-2024
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS DEMAND & IDLE FLEET EVOLUTION 2020-2024 MARKET ENVIRONMENT BETTER THAN EXPECTED WITH HIGHER VOLUMES Global Demand Growth (%YoY) Suez Canal 25,0 2023 demand was 0.4% up vs 2022 Blockage 20,0 1H24/1H23 + 7,3% 15,0 Covid sta
Slide 5: Freight rates up since December 2023 due to Red Sea situation & high demand
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY FREIGHT RATES UP SINCE DECEMBER 2023 DUE TO THE RED SEA SITUATION & HIGH DEMAND Freight Rate Evolution (US$/TEU) SCFI Shanghai-Europe Shanghai-S America Shanghai-WC America Shanghai-EC America 12.000 Average SCFI
Slide 6: Bunker costs at same level as 2023, but emission charges and rerouting increasing
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY BUNKER COSTS AT SAME LEVEL AS IN 2023, BUT EMISSION CHARGES AND REROUTING ARE INCREASING OVERALL FUEL COSTS Bunker Price Development (US$/Ton) 1200,0 HSFO VLSFO VLSFO Average 2020: US$ 328 1000,0 2021: US$ 506 1H
Slide 7: 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 (%) + YTD 5,9% of deliveries 32 70% Nov7 61,3% + YTD 0.2% Scrapping 28 24 60% + YTD 1,8% Inactive Fleet 50% + Decreasing Orderbook to Fleet Orderbook to Gl
Slide 8: 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 Considerations Fleet Average Age in 2010 10.0 years Fleet Average Age today: 14.2 years Scrapping 2019-today 2.0% Average Speed (knots) 14,60 -2,9% 2021 v
Slide 9: HLAG's Results: 1Q24 vs 2Q24 / 1H23 vs 1H24
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG’S RESULTS 1Q24 vs 2Q24 / 1H23 vs 1H24 Note: Hapag-Lloyd Investor Report 1H24 9
Slide 10: Freight rates account for most of the decline, partly offset by more volume
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG’S RESULTS FREIGHT RATES ACCOUNT FOR MOST OF THE DECLINE, PARTLY OFFSET BY MORE VOLUME Liner Shipping: 1H23 EBIT vs 1H24 EBIT MMUS$ -69% 465 +290 TTEU +5% (1,982) Liner Shipping: Op. Costs per TEU yoy: 0,3% -US$4/TEU
Slide 11: Unit cost affected by the Red Sea rerouting
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG’S RESULTS UNIT COST AFFECTED BY THE RED SEA REROUTING (+BUNKER +CHARTER +TRANSHIPMENTS) -15% Note: Hapag-Lloyd Investor Report 2Q24 11
Slide 12: Results by segment: profits by segment
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS RESULTS BY SEGMENT PROFITS BY SEGMENT MMUS$ Note: Hapag-Lloyd Investor Presentation 2Q24 12
Slide 13: Strategic milestones
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS STRATEGIC MILESTONES STRENGTHEN THE TERMINAL BUSINESS, UPGRADE THE FLEET & IMPROVE CLIENT OFFERINGS MMUS$ Note: Hapag-Lloyd Investor Presentation 2Q24 13
Slide 14: Gemini Cooperation
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS GEMINI COOPERATION PREPARATIONS ARE IN FULL SWING – NETWORK INFORMATION WILL BE DETAILED IN SEPTEMBER MMUS$ Note: Hapag-Lloyd Investor Presentation 2Q24 14
Slide 15: HLAG raises the outlook for full year 2024
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG RISE THE OUTLOOK FOR THE FULL YEAR 2024 DUE TO STRONG DEMAND AND INCREASED SHORT TERM RATE MMUS$ Note: Hapag-Lloyd Investor Presentation 2Q24 15
Slide 16: CSAV's Results 1H23 vs 1H24
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CSAV’s RESULTS 1H23 vs 1H24 Net Income 1H23 vs 1H24 400 1H24 tax expense US$ 337 mn 1H23 tax profit US$ 560 mn During the semester EUR 1,180mn were received in 300 347 (705) Chile from Germany (retention & HLAG dividend).
Slide 17: Retentions balance 2Q24
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CSAV’s RESULTS RETENTIONS BALANCE 2Q24 Current Tax Assets MMUS$ as of June 30th, 2024 as of Dec 31st, 2023 Remaining VAT tax credit 1.8 1.7 Income tax to recover 521.9 1,207.0 Credits for taxes paid abroad 222.0 317,8 Tot
Slide 18: Balance sheet 2Q24 vs 4Q23
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CSAV’s RESULTS BALANCE SHEET 2Q24 vs 4Q23 Assets main Assets changes main 4Q23 vs 2Q24 Changes 7.005 +Dividend received from CSAV Germany Income Tax to recover: HLAG Result: +US$230mn US$-685mn -dividend paid US$ -525mn +
Slide 19: Cash flow 1H24
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CSAV’s RESULTS CASH FLOW 1H24 CashflowAssets main inflows/outflows main Changes in 1H24 Retention received: -1,338 -1,154 US$ 813 mn Dividends Received from HLAG: US$ 525mn -372 2.2 97 a m e a vi es t e in iv ai Cas en t
Slide 20: 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 21: ESG - recent events
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CSAV ESG – RECENT EVENTS We inaugurated a sports facility in a public school in San Antonio 21
Slide 22: 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 • Results mostly explained by HLAG’s results & tax expenses • US$ 0.7 bn in current tax assets as of June 2024 Hapag-Lloyd, CSAV’s ma
Slide 23: Annexes
ANNEXES
Slide 24: HLAG's Results: 1H24 challenging market environment
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS ANNEXES HLAG’S RESULTS 1H24 CHALLENGING MARKET ENVIRONMENT Capacity Financial Results 1H24 1H23 ∆% Transported volume 287 (TTEU) 6,097 5,807 5% Total Average freight rate vessels 1,391 1,761 -21% (USD/TEU) Revenue (USD mn
Slide 25: CSAV's Results 1Q24 vs 2Q24
ANNEXES CSAV’s RESULTS 1Q24 vs 2Q24 Figures in USD million Result 1Q24 2Q24 Q-o-Q Equity-accounted investees 93.8 136.4 42.6 SG&A and Other Op. Income (3.0) (4.1) (1.1) Operational Result (with equity-accounted investees) 90.8 132.4 41.6 Financial result 4.7 7.6 2.9 Exchange rate difference (24.1) (