Compania Sud Americana de Vapores S.A. · BCS:VAPORES
Compania Sud Americana de Vapores — Q1 2022 Earnings Presentation
32 slides from Compania Sud Americana de Vapores's earnings presentation, May 2022
Slide 1: Compañía Sud Americana de Vapores May 2022
COMPAÑÍA SUD AMERICANA DE VAPORES MAY 2022
Slide 2: Opening Remarks
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS OPENING REMARKS Hapag-Lloyd, CSAV’s main investment CSAV ▪ In 1Q22, strong demand continued. Therefore, revenues increased • Solid 1Q22 – US$1.401mn in profits driven by the strongly due to higher freight rates (+84%yoy)
Slide 3: Demand Evolution Amid Covid
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS DEMAND EVOLUTION AMID COVID VOLATILE DEMAND GROWTH DURING THE COVID PANDEMIC Global Demand Growth (%YoY) Covid started/Lockdowns in China Suez Canal Port of Yiantian, 25,0 High congestion in Asian Ports Blockage China ope
Slide 4: Supply Chain Disruptions
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS SUPPLY CHAIN DISRUPTIONS COUNTERMEASURES TO ALLEVIATE THE BOTTLENECKS Network Optimization and moving capacity to high- demand trades. Bypassing congested ports and re-routing of cargo to alternative gate-ways. Port Conge
Slide 5: Freight Rates Up as a Consequence of Congestion Problems
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY FREIGHT RATES UP AS A CONSEQUENCE OF THE CONGESTION PROBLEMS Freight Rates Evolution (US$/TEU) SCFI Shangai-Europe Shanghai-S America Shanghai-WC America Shanghai-EC America 12.000 Spot rate softened as a result
Slide 6: Higher Transport Expenses
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY HIGHER TRANSPORT EXPENSES Charter Rate Index and Freight Rate Index evolution Alphaliner Charter Rate Index CCFI (Monthly average) SCFI (Monthly average) SCFI / CCFI (Monthly average) Alphaliner Charter Rate Inde
Slide 7: Supply Evolution Throughout the Years
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY SUPPLY EVOLUTION THROUGHOUT THE YEARS Healthier Orderbook to Fleet (%), though orderbook picked up pace again in Q1 + Overall Healthy Orderbook + Demand and Supply will become more balanced in the coming years, h
Slide 8: Inventory Stock Levels
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS INDUSTRY INVENTORY STOCK LEVELS EU Inventory Variation QoQ (mn euros) 70.000 60.000 50.000 EU – normal inventory levels & 40.000 30.000 US Inventory / Sales Ratio is 20.000 still at a low point and a high 10.000 demand fo
Slide 9: HLAG's Results: Extraordinary Results 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 1Q21 EBIT vs 1Q22 EBIT Freight Rate 3.1x EBIT 1Q /Other Vessel & Handling & EBIT 1Q 2021 Volume Revenues Bunker Voyage Ha
Slide 10: Solid Result in 1Q22: EBITDA Almost Tripled
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG’S RESULTS SOLID RESULT IN 1Q22 : EBITDA ALMOST TRIPLED Capacity Financial Results 1Q22 1Q21 ∆% Transported volume 248 (TTEU) 2,987 2,975 0% Total Average freight rate vessels 2,774 1,509 84% (USD/TEU) Revenue (USD mn
Slide 11: HLAG's Operational Results: Balanced Mix
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG’S OPERATIONAL RESULTS BALANCED MIX Transport Volume per Trade 1Q21/1Q22 (TEUm) Freight Rate per Trade 1Q21/1Q22 (US$/TEU) 0.4% 83.9% 100,0% 2,974 MMTEU 2,988 1,509 US$/TEU 2,774 90,0% 17,4% -5% 16,4% 1,308 +87% 2,439
Slide 12: HLAG's Commercial Strategy: Quality Freight Product
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG’S COMMERCIAL STRATEGY QUALITY FREIGHT PRODUCT Since 2021 HLAG offer their customers multi-year contracts at fixed rates to secure allocation and improve efficiency QFP (QUALITY FREIGHT PRODUCT) QFP AMBITION FOR 2022
Slide 13: HLAG's Dividend Proposal
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG’S DIVIDEND PROPOSAL 2021 DIVIDEND IS 10x 2020 DIVIDEND Based on the strong result in 2021, HLAG proposed to the AGM a dividend distribution of EUR 35 per share EPS [EUR/share] DPS [EUR/share] Dividend ratio based on
Slide 14: Updated Outlook for the Full Year 2022
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS HLAG UPDATED UTLOOK FOR THE FULL YEAR 2022 Guidance Updated Guidance 2021 FY 2022 – Mar 22 (*) FY 2022 – May 22 (*) Transport volume 11,872 TTEU Increasing slightly On previous year’s level Avg. freight rate 2,003 USD/TEU
Slide 15: CSAV's Results: 1Q22 vs 1Q21
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CSAV’s RESULTS 1Q22 vs 1Q21 Net Income 1Q22 vs 1Q21 Financial result & 1Q20 Share of HLAG's Exchange rate 1Q21 Net Income Result SG&A diff. Deferred taxes Disc. Oper. Net Income 2.000,0 1.500,0 1.401,3 968,2 ( 0,5 ) (1,8)
Slide 16: CSAV's Results: Balance Sheet 1Q22 vs 4Q21
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CSAV’s RESULTS BALANCE SHEET 1Q22 vs 4Q21 Main reasons in MMUS$ As of March 31, As of December 31, + HLAG Stake (w/PPA) : +1,402.3 mn ASSETS Change 2021 2021 + Other Reserves: +19.1mn MM US$ MM US$ % MM US$ Current assets
Slide 17: CSAV's Results: Cash Flow 1Q22 vs 1Q21
ANNEXES CSAV’s RESULTS CASH FLOW 1Q22 vs 1Q21 Main reasons in MMUS$ As of March 31, 2022: Statements of Cash Flow Change + G&A & HR expenses: -3.8mn 2022 2021 2021: Cash and cash equivalents at the beginning of the period 23,7 81,7 (58,0) + G&A & HR expenses: -2.6mn + Leases: +0.1mn Cash flows from
Slide 18: CSAV's Results: Share Price Evolution
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CSAV’s RESULTS SHARE PRICE EVOLUTION CSAV’s Share Price 2017-2022 (CLP) 8,0 7,0 Vapores IPSA 6,0 2020 12% -11% 2021 152% 3% 5,0 YTD 48% 19% 4,0 3,0 2,0 1,0 - 18
Slide 19: CSAV's Results: Net Debt, Leverage and Covenants
OPENING REMARKS | INDUSTRY | HLAG’S RESULTS | CSAV’S RESULTS | CLOSING REMARKS CSAV’s RESULTS 1Q22 vs 4Q21 Net Debt (MMUS$) Leverage 600 582 Covenant < 1.3 18 0,27 0,23 Financial Debt Cash and Cash Net Debt Equivalent 1Q22 4Q21 Total Assets (MMUS$) Free Asset Ratio (%) 7.452 6.025 12 10 Covenant > 1
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: CSAV Purpose: ESG Strategy
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 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 and results Hapag-Lloyd, CSAV’s main investment + Extraordinary results are expected for the year 2022 + The current market situation
Slide 23: Annexes
ANNEXES
Slide 24: CSAV's Results: 1Q22 vs 1Q21
ANNEXES CSAV’s RESULTS 1Q22 vs 1Q21 Figures in USD million Result 1Q22 1Q21 Y-o-Y Equity-accounted investees 1,402.3 434.0 968.2 SG&A and Other Op. Income (3.7) (3.3) (0.5) Operational Result (with equity-accounted investees) 1,398.5 430.8 967.8 Financial result & ex. rate diff. (4.7) (2.9) (1.8) Ta
Slide 25: HLAG Updated Its 2023 Strategy Launched in 2018
ANNEXES HLAG UPDATED ITS 2023 STRATEGY LAUNCHED IN 2018 SUSTAINABILITY AT THE CORE OF THE BUSINESS BE PROFITABLE GLOBAL PLAYER #1 FOR QUALITY SUSTAINABILITY We reached our financial and We are a global player, but high We made good progress to We have met our profitability targets earlier than indus
Slide 26: Be Profitable: Profitability Throughout the Economic Cycle
ANNEXES BE PROFITABLE PROFITABILITY TROUGHOUT THE ECONOMIC CYCLE Long – Term Financial targets and target achievement Source: HLAG 2021 CMD Presentation & 1Q22 Investor Report Target Actual ROIC > WACC 88.6% ROIC>7.0% WACC ≤ 3x Net Leverage/EBITDA Net Cash ~ USD 1.1 bn USD 13.6 bn > 45% 66% ≥ 30 % o
Slide 27: HLAG Strategy: Remain a Global Player
ANNEXES HLAG STRATEGY: REMAIN A GLOBAL PLAYER GLOBAL MARKET SHARE (EX-INTRA ASIA) OF 10% 1. 10% Mkt Share excluding the Intra Asia trade 2. Expand in attractive growth markets (e.g. Africa & India) Market Share (%) 9,4% 10,0% 2021 2023 Target 3. Invest in the expansion of special cargo and in the re
Slide 28: HLAG Strategy: Become Number One for Quality
ANNEXES HLAG STRATEGY: BECOME NUMBER ONE FOR QUALITY 4 MAIN OBJECTIVES IN PROCESS 1. 10 Quality Pledges have been formulated and gradually published Timely and Volume Efficent Correct Bill Agreements Cargo Claims Always Of Lading Honored Handling Accessible Accurate Loaded Schedule Fast Case Fast Bo
Slide 29: HLAG Sustainability
ANNEXES HLAG SUSTAINABILITY SETTING THE SUSTAINABLE COURSE OVER 3 PILLARS Source: HLAG 2021 CMD Presentation 29
Slide 30: Wrapping Up: HLAG Strategy & Targets
ANNEXES WRAPPING UP: HLAG STRATEGY & TARGETS FINANCIAL AND NON-FINANCIAL TARGETS Profibality Net Leverage Liquidity Net Promoter Score Schedule Reliability CO₂ reduction ROIC > WACC ≤Net3.0x ~USD 1.1bn Liquidity reserve Best in class Top 3rd -30% Throughout the cycle Debt/EBITDA Earn the cost of cap
Slide 31: HLAG Pillars to Achieve the Strategic Targets
ANNEXES HLAG 3 PILLARS TO ACHIEVE THE STRATEGIC TARGETS HLAG has refined its priorities for the coming 2 years along 3 pillars 1 2 3 SIMPLIFY STRENGTHEN INVEST Simplify customer Double-down on our Invest in people, segmentation & experience ambition to become sustainable assets and long- and reduce
Slide 32: Compañía Sud Americana de Vapores
COMPAÑÍA SUD AMERICANA DE VAPORES
Compañía Sud Americana de Vapores — Q1 2022 Earnings Presentation on 6ix