Compania Sud Americana De Vapores S.a. · BCS:VAPORES
Compania Sud Americana De Vapores — Q1 2023 Earnings Presentation
25 slides from Compania Sud Americana De Vapores's earnings presentation, May 2023
Slide 1: May 2023
MAY 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 + Good start of 2023, considering a market normalization process. Revenues decreased (-33%yoy) due to lower freight rates (-28%yoy) • 1Q23 – US$598 mn in profits dr
Slide 3: Demand Evolution 2020-2023
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS DEMAND EVOLUTION 2020-2023 VOLATILE DEMAND GROWTH DURING THE COVID PANDEMIC Global Demand Growth (%YoY) Covid started/Lockdowns in China Suez Canal Port of Yiantian, 25,0 High congestion in Asian Ports Blockage China oper
Slide 4: Congestion Has Dissipated
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY CONGESTION HAS DISSIPATED Port Congestion Index (fleet outside ports) 39 37 35 33 31 29 27 25 abr-16 abr-17 oct-17 abr-18 abr-19 abr-20 abr-21 abr-22 abr-23 jul-17 jul-16 oct-16 jul-18 oct-18 jul-19 oct-19 jul-20
Slide 5: Inventory Stock Levels
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY INVENTORY STOCK LEVELS EU Inventory Variation QoQ (mn euros) 100.000 80.000 60.000 Demand for container transport 40.000 remained on a low level in Q1 2023 as 20.000 a result of inventory de-stocking - 1995-Q1 19
Slide 6: Freight Rates Stable, Yet Below the Long-Term Equilibrium
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY FREIGHT RATES STABLE, YET BELOW THE LONG-TERM EQUILIBRIUM Freight Rates Evolution (US$/TEU) 12.000 SCFI Shanghai-Europe Shanghai-S America Shanghai-WC America Shanghai-EC America Average SCFI Index 2021: 3.773 Av
Slide 7: Higher Bunker Costs Compared to 1Q22
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY HIGHER BUNKER COSTS COMPARED TO 1Q22 (lower than 4Q22) Bunker price development (US$/Ton) 1.200 HSFO VLSFO 1.000 980 1Q23 HLAG 83% Consumption* 800 VLSFO Average 2022 US$729 600 531 VLSFO Average 2021 US$506 400
Slide 8: Supply Evolution Throughout the Years
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY SUPPLY EVOLUTION THROUGHOUT THE YEARS Orderbook to Fleet (%) + Demand will likely remain subdue until destocking cycle is completed + New capacity will likely exceed demand in the next quarters + Scrapping, slipp
Slide 9: Zoom to the Supply/Demand Balance
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY ZOOM TO THE SUPPLY/DEMAND BALANCE Supply & Demand Balance Effective Capacity Growth Capacity growth 2023 Schedule deliveries 10% Less slippage to following years -2% to -4% Less scrapping -1% to -3% Nominal fleet
Slide 10: HLAG's Results Declining After the Covid Period
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG’S RESULTS RESULTS ARE DECLINING AFTER THE COVID PERIOD 1Q22 EBIT vs 1Q23 EBIT MMUS$ -61% Freight Rate EBIT /Other Vessel & Handling & EBIT 1Q22 Volume Revenues Bunker Voyage Haulage Eq. & Repos. Personnel Dep./Others
Slide 11: HLAG Outlook for Full Year 2023 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: HLAG Recent Acquisition: JM Baxi 40% Stake
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG – RECENT ACQUISITION JM BAXI 40% STAKE – OPERATION APPROVED JM Baxi: • Operates 5 container terminals + 2 new won concessions • 1.4 MTEU container throughput p.a. • Hinterland logistics • India: fast growing economy
Slide 13: HLAG Upgrading Fleet, Digitising Business, Improving Product Offers
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG CONTINUES UPGRADING ITS FLEET, DIGITISING ITS BUSINESS AND IMPROVING ITS PRODUCT OFFERS SHIP GREEN Emissions Avoidance • With "Ship Green", customers can opt for up to 100% emission-free sea transport of their cargo
Slide 14: CSAV's Results 1Q22 vs 1Q23
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CSAV’s RESULTS 1Q22 vs 1Q23 Net Income 1Q22 vs 1Q23 Financial result 1Q22 Share of HLAG's & Exchange rate 1Q23 Net Income Result SG&A diff. Tax Expense Disc. Oper. Net Income 1.400 1,401 (795) 1.200 1.000 800 600 598 (1)
Slide 15: Balance Sheet 1Q23 vs 4Q22
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS Main reasons in MMUS$ CSAV’s RESULTS BALANCE SHEET 1Q23 vs 4Q22 + Higher cash needs – explanation on next slide As of March 31, As of December 31, ASSETS Change 2023 2022 + EUR/US$ effect over tax credits to be recovered
Slide 16: Cash Flow 1Q23 vs 1Q22
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 March 31, 1Q23: Statements of Cash Flow Change + G&A & HR expenses: -6.9mn 2023 2022 Cash and cash equivalents at the beginning of the period 97,2 2
Slide 17: KPIs 1Q23 vs 4Q22
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CSAV’s RESULTS KPI’s 1Q23 vs 4Q22 Net Debt (MMUS$) Leverage 655 571 Covenant < 1.3 84 0.30 0.31 Financial Debt Cash and Cash Net Debt Equivalent 1Q23 4Q22 Total Assets (MMUS$) Free Asset Ratio (%) 10.899 16 16 10.297 Cove
Slide 18: 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 19: ESG – Recent Events
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CSAV ESG – RECENT EVENTS 19
Slide 20: 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 a market normalizing Hapag-Lloyd, CSAV’s main investment + Demand for container transport remained on a l
Slide 21: Annexes
ANNEXES
Slide 22: 1Q23 Market Normalization: EBITDA 55% Down
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG’S RESULTS 1Q23 MARKET NORMALIZATION: EBITDA 55% DOWN Capacity Financial Results 1Q23 1Q22 ∆% Transported volume 250 (TTEU) 2,842 2,987 -5% Total Average freight rate vessels 1,999 2,774 -28% (USD/TEU) Revenue (USD mn
Slide 23: CSAV's Results 1Q23 vs 1Q22
ANNEXES CSAV’s RESULTS 1Q23 vs 1Q22 Figures in USD million Result 1Q23 1Q22 Y-o-Y Equity-accounted investees 607.1 1.402,3 (795.2) SG&A and Other Op. Income (4.8) (3.7) (1.1) Operational Result (with equity-accounted investees) 602.3 1,398.5 (796.3) Financial result & ex. rate diff. (5.6) (4.7) (0.9
Slide 24: Dividend Flow from HLAG to CSAV
ANNEX DIVIDEND FLOW FROM HLAG TO CSAV + HLAG – 100% Dividend + 26.375% Retention (1.6% Tax – 24.775% to be refunded) + CSAV Germany – 73.625% Dividend + 26.375% Retention (15.8% WHTax – 10.575% to be refunded) + CSAV 54.21% Dividend 24
Slide 25: ESG Strategy: CSAV Purpose
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
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