Sociedad Matriz Saam S.A. · BCS:SMSAAM
Sociedad Matriz Saam — FY2014 Earnings Presentation
35 slides from Sociedad Matriz Saam's earnings presentation, Mar 11, 2015
Slide 1: Presentation of Results for 2014
Presentation of Results for 2014 March 11, 2015 1 1
Slide 2: Disclaimer
Disclaimer This presentation provides general information about Sociedad Matriz SAAM S.A. (“SMSAAM”) and related companies. It consists of summarized information and does not purport to be complete. It is not intended to be relied upon as advice to potential investors. No representation or warrantie
Slide 3: Agenda
Agenda Executive Summary Industry Overview Results for 2014 Capex 3
Slide 4: Leader in Latin America
Leader in Latin America The Company provides comprehensive cargo transfer services for clients in the export and import business, and to shipping and airline companies present in the most important Latin American markets Port Terminals Tugboats Logistics 10 Port Terminals 191 (1) +350 ha. Tugboats S
Slide 5: Milestones achieved in 2014
Milestones achieved in 2014 • Strengthening of our competitive positions in America : • Two new markets: Canada and Panama, where we are leaders • 2nd Tugboat operator in Brazil • Replacements in top management teams aimed at structural strengthening • Reversal of the effects caused by the port stri
Slide 6: Recent Events
Recent Events Tugboats : • Onset of SAAM & SMIT joint tugboat service operation in four American countries. ‐ Under the new name of SAAM SMIT Towage, the new company operates a fleet of 111 tugboats in over 30 terminals in Brazil, Panama, Mexico and Canada • In Mexico, progress was made in contract
Slide 7: SM SAAM Shareholders as of December 31, 2014
SM SAAM Shareholders as of December 31, 2014 Total: 3,517 shareholders Market Cap* MUS$760 Free Float 45.1% Other (retail) Total Shares (**) 9,736,791,983 19% Foreign uiñenco (Grupo Dividend yield 2013 2.8% 9% Luksic Group) 42% Dividend yield 2014 4.4% 11 Directors AFPs 9% Directors’ Committee Other
Slide 8: Agenda
Agenda Executive Summary Industry Overview Results for 2014 Capex 8
Slide 9: External Factors
External Factors • Year 2014 was one in which the majority of markets in which SAAM operates experienced a downturn in growth. GDP Growth at 2013 and projections 2014 and 2015 Source: IMF 9
Slide 10: External Factors
External Factors • Port workers’ strike in January of 2014, demanding payment for half hour lunch break, lasting for 22 days. This had an effect on all SAAM’s Chilean port terminals, causing two main impacts: ‐ A drop in the level of activity in Chile during January, affecting results for the three
Slide 11: External Factors
External Factors • Consolidations/Alliances with shipping companies: o 2M Alliance (Maersk & MSC) o Alliance Ocean 3 (CMA CGM, China Shipping Container Lines & United Arab Shipping Co) o Merger CSAV/Hapag Lloyd o Purchase Hamburg Sud from CCNI • Tax Reform generated effects in SAAM: o Change in tax
Slide 12: Agenda
Agenda Executive Summary Industry Overview Results for 2014 Capex 12
Slide 13: Results SMSAAM 2014
Results SMSAAM 2014 REVENUES US$ Millions 694 775 726 639 555 5% 7% 283 9% 246 247 15% 213 194 426 448 479 492 361 2010 2011 2012 2013 2014 Consolidated Affiliates Note: values for affiliates are proportional (weighted by ownership) EBITDA US$ Millions 250 26% 24% 24% 25% 22% 23% 200 185 20% 155 154
Slide 14: Results SMSAAM 2014
Results SMSAAM 2014 EARNINGS US$ Millions +23% -18% --% +20% 74 60 60 61 50 2010 2011 2012 2013 2014 Earnings, attributable to owners of Parent Company Note: Years 2010 & 2011 consider results of SAAM. Years 2012 and 2013 consider SMSAAM results. GEOGRAPHIC DIVERSIFICATION of EBITDA 2014 25% 39% Chi
Slide 15: Results SMSAAM 2014
Results SMSAAM 2014 Explanation Operating Result (US$58 million; +17%YoY) • Improved performance in Iquique and Guayaquil Port Terminals • Entry to Panama and Canada markets with Tugboats, through joint venture with Boskalis. Non-Operating Results (US$22 million; -44%YoY) • Non-recurring impacts gen
Slide 16: Business Diversification
Business Diversification DISTRIBUTION OF SALES 2014 EBIDTA DISTRIBUTION 2014 Logistics 16% Logistics RAM 30% 40% RAM Port 50% Terminals Port 34% Terminals 30% . 16 16
Slide 17: Leverage Capacity
Leverage Capacity NET FINANCIAL DEBT (MMUS$ December 2014) Consolidated Figures 2014 2013 353 Net Debt / EBITDA (*) 1,35 1.51 Net Debt / Equity 0.21 0.21 162,708 219 89 Consolidated Figures 2014 2013 134 Indebtedness 0.48x 0.54x 190 74,0 145 Financial indebtedness 0.23x 0.27x 45 Current liquidity 4.
Slide 18: Port Terminals
Port Terminals Foreign FIT TMAZ Florida International Terminal Marítimo Puerto Buenavista Terminal Portuario Terminal, USA Mazatlán, México S.A. Colombia de Guayaquil, PBV Ecuador Chile TPG TPA ITI Terminal Puerto Iquique Terminal Antofagasta ATI Arica S.A. Internacional S.A. Terminal STI Internacio
Slide 19: Port Terminals: Leading Operator in South America
Port Terminals: Leading Operator in South America Total TEUs Transferred Ranking Company Principal Port Terminals (thousands) 1 SAAM 2,491 San Antonio, San Vicente, Iquique, Antofagasta 2 DP World 2,155 Callao, Buenos Aires, Suriname, Santos 3 Grupo Ultramar 2,047 Valparaíso, Mejillones, Coronel, Co
Slide 20: Port Terminals
Port Terminals REVENUES US$ Millions 222 234 207 186 +5% 161 +7% 107 +11% 114 +16% 112 98 86 108 127 75 88 95 2010 2011 2012 2013 2014 Consolidated Affiliates Note: Affiliate values are proportional (weighted by ownership). EBITDA US$ Millions 100,0 35% 90,0 31% 28% 30% 80,0 27% 27% 27% 70,0 25% 60
Slide 21: Port Terminals
Port Terminals TONS TRANSFERRED (Thousands) CAGR 4.8% +7% 32,893 -5% 31,133 -2% 30,602 +9% +16% 30,752 28,091 24,151 2009 2010 2011 2012 2013 2014 TEUs TRANSFERRED (Thousands) CAGR 7.6% EBIDTA DISTRIBUTION 2014 4% +2% 2,684 -2% 2,625 7% +18% 2,634 +10% Chile +12% 2,238 20% 2,032 Ecuador 1,822 EEUU 6
Slide 22: Port Terminals Results for 2014
Port Terminals Results for 2014 Revenues (US$234 million; +5%YoY) EBITDA (US$62 million; +4%YoY) Port Terminals – Consolidated Companies Revenues (US$127 million; +18% YoY) EBITDA (US$31 million; +35%YoY) • New service in Guayaquil (TPG) and increased activity in terminal services. • In Iquique (ITI
Slide 23: Tugboats
Tugboats Highlights • Fourth Operator at World Level • Leaders in Latin America Canadá • Operations in 11 Countries México • 191 Tugboats (*) Guatemala Honduras Costa Rica • 66% are Azimuth tugboats Panamá Ecuador • Present in over 70 Ports Brasil Perú (*) 11 tugboats under construction, included tu
Slide 24: SAAM SMIT TOWAGE synergies estimated at US$10 million annually
SAAM SMIT TOWAGE synergies estimated at US$ 10 million annually Executive Summary SMIT – Canada (N°1 West Coast) Total Tugboats 22 SAAM SMIT TOTAL Revenues 2013 130.8 121.6 252.4 (US$M) Tugboats (at 54 57 111 Nov.2014) SAAM – Mexico (N°1) Under 0 3 3 Tugboats 27 Construction SAAM – Brazil Tugboats 2
Slide 25: Tugboats Results for 2014
Tugboats Results for 2014 Sales US$ Millions 284 236 66 210 +20% 32 180 30 +12% 155 13 +17% 12 +16% 204 218 167 180 143 2010 2011 2012 2013 2014 Consolidated Affiliates EBITDA US$ Millions 100,0 31% 30% 90,0 29% 27% 29% 28% 87 80,0 20 25% 70,0 66 60 +32% 60,0 10 20% 45 49 9 +10% 50,0 3 3 +22% 40,0 1
Slide 26: Tugboats Results for 2014
Tugboats Results for 2014 OPERATIONS CAGR 8.4% 95,258 -4% 73,706 +29% +10% +8% 72,871 +1% 76,254 70,324 63,767 2009 2010 2011 2012 2013 2014 TUGBOATS 191 126 132 115 121 125 112 128 102 102 53 59 65 70 75 38 40 50 64 62 62 62 62 60 56 57 63 2006 2007 2008 2009 2010 2011 2012 2013 2014 Conventional C
Slide 27: Tugboats Results for 2014
Tugboats Results for 2014 Revenues (US$284 million; +20%YoY) EBITDA (US$87 million; +32%YoY) Tugboats – Consolidated Companies Revenues (US$217 million; +7%YoY) EBITDA (US$67 million; +19%YoY) • Increase in sales in Chile, Mexico, Panama, and Canada. The two latter are new markets for SAAM, incorpor
Slide 28: Logistics
Logistics Services to Shipping and Airline Companies Contract Logistics Special Services 28
Slide 29: Logistics
Logistics Services to Shipping Companies and Airlines Agency Services Services to Passangers and Aircrafts Port Operations (1) Container Depots and Workshops Contract Logistics Warehousing, Storage and Refrigeration Containers’ Consolidation and Deconsolidation Bulk and Break Bulk Cargo Transportati
Slide 30: Logistics Results for 2014
Logistics Results for 2014 REVENUES US$ Millions 272 277 268 257 240 +2% -3% +4% 102 104 -4% 100 96 109 170 173 167 148 144 2010 2011 2012 2013 2014 Consolidated Affiliates EBITDA US$ Millions SALES DISTRIBUTION 2014 100,0 25% 90,0 21% 20% 80,0 20% 70,0 9% Services to 60,0 55 14% 14% 15% Shipping Co
Slide 31: Logistics Results for 2014
Logistics Results for 2014 Revenues (US$257 million; -4%YoY) EBITDA (US$34 million; -9%YoY) Logistics – Consolidated Companies Revenues (US$148 million; -11%YoY) EBITDA (US$9 million; -36%QoQ) • “Logística Chile” reduced operations in depots and workshops for containers, and ended the document agenc
Slide 32: Agenda
Agenda Executive Summary Industry Overview Results for 2014 Capex 32
Slide 33: Capex 2015
Capex 2015 Business Segment Planned Major Investments Investments for 2015 (consolidated + VP) Port ThUS 44,419 • Equipment renovation in Iquique Terminals • Dock extension and purchase of equipment in Guayaquil Port Terminal • Extension and reconstruction of San Vicente International Terminal (27F)
Slide 34: Contact
Contact Paula Raventós Head of Investor Relations Sociedad Matriz SAAM S.A. Hendaya 60, floor 8, Santiago, Chile (56-2) 2731-8240 praventos@saamsa.com www.smsaam.com 34
Slide 35: Presentation of Results for 2014
Presentation of Results for 2014 March 11, 2015 35 35