Compania Sud Americana De Vapores S.a. · BCS:VAPORES
Compania Sud Americana De Vapores — Q4 2022 Earnings Presentation
25 slides from Compania Sud Americana De Vapores's earnings presentation, March 2023
Slide 1: CSAV 150 años – March 2023
MARCH 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 + Exceptionally strong financial results in 2022. Revenues increased strongly due to higher freight rates (+43%yoy), while volume stayed stable (-0,2%yoy) • Solid 2
Slide 3: Demand Evolution Amid Covid
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS DEMAND EVOLUTION AMID COVID 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 ope
Slide 4: Congestion Is Easing
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY CONGESTION IS EASING Port Congestion Index (fleet outside ports) 39 37 35 33 31 29 27 25 abr-16 abr-17 abr-18 abr-19 abr-20 abr-21 abr-22 jul-20 jul-16 oct-16 jul-17 oct-17 jul-18 jul-19 ene-18 oct-18 oct-19 oct-
Slide 5: Weak Demand for Container Transportation on Asia Related Trades
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY WEAK DEMAND FOR CONTAINER TRANSPORTATION ON ASIA RELATED TRADES, THE ATLANTIC HAS BEEN MORE STABLE Global Transport Volume (TEU mn) Selected Trades (TEU mn) 181 174 Head-Haul H1 Back-Haul H1 23,0 0% 23,0 9,4 -11%
Slide 6: 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 EU & US – high inventory levels 60.000 4x the inventory of the end of 2019 40.000 US Retail Inventory / Sales Ratio 20.000 is still at a
Slide 7: Freight Rates Normalizing
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY FREIGHT RATES NORMALIZING Freight Rates Evolution (US$/TEU) 12.000 SCFI Shanghai-Europe Shanghai-S America Shanghai-WC America Shanghai-EC America SCFI Index 2021: +91% 10.000 SCFI Index 2022: -78% SCFI Index YTD
Slide 8: Higher Transport Expenses & Bunker Costs
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY HIGHER TRANSPORT EXPENSES & BUNKER COSTS Bunker price development (US$/Ton) 1.200 HSFO VLSFO 1.000 980 2022 HLAG 92% Consumption 800 VLSFO Average 2022 US$729 600 VLSFO Average 2021 US$506 535 400 VLSFO Average 2
Slide 9: Supply Evolution Throughout the Years
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY SUPPLY EVOLUTION THROUGHOUT THE YEARS Orderbook to Fleet (%) + Demand will likely remain subdue until destocking cycle is completed + New capacity will likely exceed demand in the next quarters + Scrapping, slipp
Slide 10: CII Carbon Intensity Indicator Came Into Force
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY CII (CARBON INTENSITY INDICATOR) CAME INTO FORCE AND HAVE IMPLICATIONS ON USAGE OF VESSELS, FLEET REQUIREMENTS AND STRATEGIES In Jun21 IMO adopted new CO2 regulations for existing ships 10
Slide 11: HLAG's Results: Extraordinary Results Mainly Due to Freight Rates
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG’S RESULTS EXTRAORDINARY RESULTS MAINLY DUE TO FREIGHT RATES, PARTIALLY OFFSET BY COST PRESSURE 2021 EBIT vs 2022 EBIT MMUS$ 1.6x Freight Rate EBIT /Other Vessel & Handling & EBIT 2021 Volume Revenues Bunker Voyage Ha
Slide 12: Solid Result in 2022: EBITDA 59% Up
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG’S RESULTS SOLID RESULT IN 2022: EBITDA 59% UP Capacity Financial Results 2022 2021 ∆% Transported volume 11,843 11,872 0% 251 (TTEU) Total Average freight rate vessels 2,863 2,003 43% (USD/TEU) Revenue (USD mn) 36,40
Slide 13: Outlook for Full Year 2023 Considers Gradual Normalization of Earnings
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG OUTLOOK FOR THE FULL YEAR 2023 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 clearly Avg. bunke
Slide 14: HLAG – Recent Acquisition: JM Baxi 35% Stake
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG – RECENT ACQUISITION JM BAXI 35% STAKE – Jan23 JM Baxi: • Operates 5 container terminals + 2 new won concessions • 1.4 MTEU container throughput p.a. • Hinterland logistics • India: fast growing economy Continue to b
Slide 15: CSAV's Results: Net Income 2021 vs 2022
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CSAV’s RESULTS 2021 vs 2022 Net Income 2021 vs 2022 Financial result 2021 Share of HLAG's & Exchange rate 2022 Net Income Result SG&A diff. Tax Expense Disc. Oper. Net Income 7.000 6.000 2,158 216 5,563 (15) (6) (0) 5.000
Slide 16: CSAV's Results: Balance Sheet 2022 vs 2021
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS Main reasons in MMUS$ CSAV’s RESULTS BALANCE SHEET 2022 vs 2021 + Higher cash needs As of December 31, As of December 31, + Tax credits to be recovered for withholding of 26.375% ASSETS Change of the dividend received fro
Slide 17: CSAV's Results: Cash Flow 2022 vs 2021
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSINGANNEXES REMARKS CSAV’s RESULTS CASH FLOW 2022 vs 2021 As of December 31, Main reasons in MMUS$ Statements of Cash Flow Change 2022 2021 Cash and cash equivalents at the beginning of the period 23,7 81,7 (71,0%) (58,0) 2022: + G&A
Slide 18: CSAV's Results: Net Debt, Leverage and Covenants
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CSAV’s RESULTS 2022 vs 2021 Net Debt (MMUS$) Leverage 660 600 563 Covenant < 1.3 400 200 97 0.30 0.23 0 Financial Debt Cash and Cash Net Debt Equivalent 4Q22 4Q21 Total Assets (MMUS$) Free Asset Ratio (%) 10.296 16 6.025
Slide 19: 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: CSAV Purpose: Actor in Sustainable Development of Global Trade
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
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 and results Hapag-Lloyd, CSAV’s main investment + Exceptional and extraordinary results in 2022. Results in 2023 will gradually norma
Slide 22: Annexes
ANNEXES
Slide 23: CSAV's Results 2022 vs 2021
ANNEXES CSAV’s RESULTS 2022 vs 2021 Figures in USD million Result 2022 2021 Y-o-Y Equity-accounted investees 5,378.3 3,220.4 2,157.9 SG&A and Other Op. Income (38.4) (23.1) (15.4) Operational Result (with equity-accounted investees) 5,339.9 3,197.3 2,142.5 Financial result & ex. rate diff. (25.7) (2
Slide 24: Be Profitable: Profitability Throughout the Economic Cycle
ANNEXES BE PROFITABLE PROFITABILITY TROUGHOUT THE ECONOMIC CYCLE Long – Term Financial targets and target achievement Source: HLAG 2022 Investor Presentation Target 2022 ROIC > WACC 111.6% ROIC>7.0% WACC ≤ 3x Net Leverage/EBITDA Net Cash ~ USD 1.1 bn USD 17.0 bn* > 45% 72% ≥ 30 % of EAT 65% 24
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