Compania Sud Americana De Vapores S.a. · BCS:VAPORES
Compania Sud Americana De Vapores — Investor Presentation (September 2021)
24 slides from Compania Sud Americana De Vapores's investor presentation, September 2021
Slide 1: Corporate Presentation September 2021
Compañía Sud Americana de Vapores Corporate Presentation September 2021
Slide 2: CSAV at a glance
CSAV at a glance Who are we? Chilean-based company that participates in the container shipping business, through its stake Well-known Luksic Group, controlled by the in Hapag-Lloyd after their merger in 2014 local Luksic family, is CSAV’s main shareholder (66.5%) 2Q21 LTM Financial Position CSAV 66.
Slide 3: CSAV: consolidation & success story
CSAV: consolidation & success story CSAV’s SAAM spin-off CSAV-HLAG Merger HLAG-UASC Merger Successful Capital Increase Foundation Port and tug- CSAV becomes the HLAG acquires 100% Funds of USD 350 mn to paydown Merger of boat business is largest shareholder of of United Arab short-term debt issued t
Slide 4: Competitive landscape reshaped by industry consolidation
Industry 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
Slide 5: Global shipping alliances
Industry GLOBAL SHIPPING ALLIANCES Global Shipping Alliances (86.3%) THE Alliance Ocean Alliance 2M Members Global Market Share(1) ~ 83.1% Transpacific 26% 40% 25% Market Share(1) Per Trade Atlantic 31% 12% 49% Far East 25% 34% 36% Total Vessels 644 1,241 1,327 Aggregate Container Capacity 4.8 milli
Slide 6: Global shipping alliances: average vessel size and HLAG fleet
Industry GLOBAL SHIPPING ALLIANCES HLAG’s current fleet TEU Ships HLAG 6,843 >18,000 TEU 124,062 6 Average Vessel Size (TEU) MSC 6,669 15,200 ~ 18,000 TEU 0 0 10,000 ~ 15,200 TEU 638,032 34 COSCO 6,032 5,100 ~ 10,000 TEU 584,863 74 Maersk 5,801 <5,100 TEU 425,355 129 CMA CGM 5,556 Total Owned and Ch
Slide 7: Volatile demand during the Covid pandemic
Industry VOLATILE DEMAND DURING THE COVID PANDEMIC Global Demand Growth (%YoY) 25.0 Suez Canal Blockage Port of Yiantian, 20.0 Global Demand Plunged China operating Despite mobility restrictions, logistic at low capacity 15.0 chain problems started easing 10.0 Covid started/Lockdowns in China High c
Slide 8: Supply evolution during the pandemic
Industry SUPPLY EVOLUTION DURING THE PANDEMIC Fleet deployment has adapted quickly to demand evolution. Idle Fleet in the last's quarters at minimum levels Idle Fleet evolution¹ 12% 2.8 2009 May 2020 11.9% 11.6% 10% 2.4 Idle-to-world fleet (%) TEU (mn) 2.0 8% 1.6 6% 1.2 Jun 2021 4% 0.8 0.8% 0.4 2% -
Slide 9: Congestion worldwide
Industry CONGESTION WORLDWIDE Average Days of Delays per Year HLAG average container usage days +16% 1H20 1H21 9 Source: HLAG Investor Presentation August 2021– Sea- Intelligence – eeSea (11th of August)
Slide 10: Freight rates, a consequence of logistical problems
Industry FREIGHT RATES, A CONSEQUENCE OF LOGISTICAL PROBLEMS Freight Rates Evolution (US$/TEU) SCFI Shangai-Europe Shanghai-S America Shanghai-WC America Shanghai-EC America 10,000 9,000 All trades are impacted with rising tariffs 8,000 SCFI Index YTD: 60% 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0
Slide 11: Healthy inventory stock levels are yet to be restored
Industry “HEALTHY” INVENTORY STOCK LEVELS ARE YET TO BE RESTORED EU Inventory Variation QoQ (mn euros) 40,000. 30,000. The EU is recovering inventories, while 20,000. the US has a very low inventory level 10,000. and a high demand for goods 0. continues. 1999-Q1 2017-Q1 1995-Q1 1996-Q1 1997-Q1 1998-
Slide 12: Current challenges driven by several factors
Industry CURRENT CHALLENGES DRIVEN BY SEVERAL FACTORS Charter Rate Index and Freight Rate Index evolution Alphaliner Charter Rate Index CCFI (Monthly average) SCFI (Monthly average) 300 SCFI / CCFI (Monthly average) Alphaliner Charter Rate Index 3,000 200 2,000 100 1,000 0 0 2012 2014 2016 2018 2020
Slide 13: Supply evolution throughout the years
Industry SUPPLY EVOLUTION THROUGHOUT THE YEARS Healthier Orderbook to Fleet (%), though increasing during 2021 to better supply customers Increased Orderbook/Fleet, though is stagnating in the last's months. Higher scrapping and dry docking are expected when the situation stabilizes Demand will slig
Slide 14: HLAG's Results: solid first half of the year
HLAG’s Results SOLID FIRST HALF OF THE YEAR 1H2021 Capacity Financial result 1H 2021 1H21 1H20 ∆% Transported volume 250 (TTEU) 6,004 5,755 4% Total Average freight rate vessels 1,612 1,104 46% (USD/TEU) Revenue (USD mm) 10,551 7,005 51% Transport expenses + D,A 1,761 TTEU (1,081) (1,031) 5% & I (US
Slide 15: HLAG's Results: extraordinary results mainly due to freight rates
HLAG’s Results EXTRAORDINARY RESULTS MAINLY DUE TO FREIGHT RATES, COST PRESSURE IS ARISING Freight Rate EBIT H1 /Other Vessel & Handling & EBIT H1 2020 Volume Revenues Bunker Voyage Haulage Eq. & Repos. Personnel Dep./Others 2021 4,500 76 - 77 4,000 1H21 US$/Ton 421 Rising - 438 vs container - 62 -
Slide 16: HLAG's operational results
HLAG’s operational results STABLE VOLUMES, FREIGHT RATES INCREASING UNEVENLY Transport Volume per Trade 1H21vs1H20 (TEUm) Freight Rate per Trade 1H21vs1H20 (US$/TEU) 4.3% 46.0% 5,755 MMTEU 6,004 1,104 US$/TEU 1,612 100.0% 6.0% +2% 5.9% 1,358 +31%1 1,038 90.0% 16.0% +0% 15.3% 1,523 +8% 1,405 80.0% 70
Slide 17: Industry's results
Industry’s Results STRONG RESULTS CONSIDERING GEOGRAPHICAL MIX & SPOT EXPOSURE Transport Volume 1H20 vs 1H21 (TEUm) Freight Rate 1H20s 1H21 (US$/TEU) 16,000 2500 +120% +10% +17% 1H20 1H21 1H20 1H21 +99% 14,000 2000 +94% 12,000 +5% +49% +46% +74% 10,000 1500 +40% +80% 8,000 +4% 6,000 1000 +19% 4,000
Slide 18: HLAG full year 2021 outlook updated
HLAG FULL YEAR 2021 The outlook for the FY 2021 has been updated Guidance 2020 FY 2021 (*) Transport volume 11,838 TTEU Increasing slightly Strong global demand for container transports Avg. freight rate 1,115 USD/TEU Increasing clearly and continued supply-chain Avg. bunker Increasing clearly disru
Slide 19: CSAV's results 1H21 vs 1H20
CSAV’s results 1H21 vs 1H20 Figures in USD million Result 1H21 1H20 Y-o-Y Equity-accounted investees 982.8 89.6 893.2 SG&A and Other Op. Income -9.0 -2.8 -6.2 EBITDA (with equity-accounted 973.8 86.8 887.0 investees) Financial result & ex. rate diff. -14.0 -14.8 0.8 Taxes 14.3 -5.4 19.7 Discontinued
Slide 20: CSAV's results 1H21 vs 1H20
CSAV’s results 1H21 vs 1H20 Directors' Lower Debt Level Appreciation compensation and financial exp. of the dollar provision compensated by to euro exchange rate exchange rate hedges effect to and its effect cover exposure in in the the dividend intercompany payment loan in euros The improved perfor
Slide 21: CSAV's results: cash flow 1H21 vs 1H20
CSAV’s results CASH FLOW 1H21 vs 1H20 Main reasons in MMUS$ 2021: • Board Compensation: -3.7mn Statements of Cash Flow As of June 30, • G&A expenses: -3.8mn Change 2021 2020 2020: Cash and cash eq. at the beginning of the period 81.7 53.6 28.0 • Car Carrier: +1.2mn Cash flows from operating activiti
Slide 22: CSAV's results: balance sheet 2Q21 vs 4Q20
CSAV’s results BALANCE SHEET 2Q21 vs 4Q20 Main reasons in MMUS$ • HLAG Stake (w/PPA) : +982.8mn • Other Reserves: +8.8mn ASSETS 2Q21 4Q20 Change • HLAG Div. -225.7mn MM US$ MM US$ MM US$ Current assets 45.0 82.2 (37.2) • Effect due to interests received from Cash and cash equivalents 44.2 81.7 (37.4
Slide 23: CSAV's results 2Q21 vs 4Q20
CSAV’s results 2Q21 vs 4Q20 Net Debt (MMUS$) Leverage Covenant < 1.3 155.0 110.8 44.2 0.12 0.10 Financial debt Cash & cash Net debt equivalent 2Q21 4Q20 Total Assets (MMUS$) Free Asset Ratio (%) 3,774 3,036 24.3 Covenant < 1.615 13.2 Covenant: > 1.3 2Q21 4Q20 2Q21 4Q20 23
Slide 24: Closing remarks
CLOSING REMARKS CSAV ▪ Net income of US$ 974.2 million for the 1H21 (US$ 66.9 million in 1H20) ▪ This strong performance is a result of a plan that has being deployed since 2011, involving several capital increases, a complete restructuring and two mergers (HLAG-CSAV & HLAG-UASC) Hapag-Lloyd, CSAV’s
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