Compania Sud Americana De Vapores S.a. · BCS:VAPORES
Compania Sud Americana De Vapores — H1 2018 Earnings Presentation
18 slides from Compania Sud Americana De Vapores's earnings presentation, Sep 4, 2018
Slide 1: Investor Presentation H1 2018 Results
Investor Presentation H1 2018 Results September 4th, 2018
Slide 2: Disclaimer
Disclaimer This presentation provides general information about Compañía Sud Americana de Vapores S.A. (“CSAV”). It consists of summary information and does not purport to be complete. It is not intended to be relied upon as advice to potential investors. No representations or warranties, express or
Slide 3: Agenda
Agenda 1. Highlights 2. Market Overview 3. H1 2018 Results 4. Outlook
Slide 4: Highlights
Highlights CSAV reported a loss of US$ 32.1 M in H1 2018, mainly explained by the result of Hapag‐Lloyd AG (“HLAG”), which was affected by negative conditions in the maritime industry, related to higher bunker prices, charter rates and pressure on other cost items, alongside a slower than expected
Slide 5: Market Overview
Market Overview Source: MDS Transmodal (July 2018), Drewry (2Q), Clarksons (August 2018), Drewry (Forecaster 2Q18), IHS (June 2018), Transmodal (July 2018). 1) Slippage to following year has been subtracted from scheduled deliveries Extracted from HLAG´s Investor Presentation H1 2018, available at h
Slide 6: Market Overview: SCFI vs Rotterdam Platts
Market Overview SCFI vs Rotterdam Platts (Aug 2018) (2) (1) SCFI ‐RTM Margin Rotterdam Platts SCFI 1.200 1.000 Avg. Margin 800 2014 = 536 600 Avg. Margin Avg. Margin Avg. Margin 2017 = 522 2018 = 404 2015 = 468 Avg. Margin 400 2016 = 436 200 0 Jan‐14 Jul‐14 Sep‐14 Nov‐14 Jan‐15 Jul‐15 Sep‐15 Nov‐15
Slide 7: H1 2018 Results: CSAV Net Income H1 2017 vs H1 2018
H1 2018 Results: CSAV CSAV Net Income H1 2017 vs H1 2018 Figures in USD million Container Transport Segment CSAV Net Income Other Transport Equity‐Accounted Dilution Loss Badwill Deferred Taxes GAE & Others CSAV Net Income H1 2017 Services Segment Investees (HLAG) H1 2018 29.3 (0.8) (32.1) (60,6) 16
Slide 8: H1 2018 Results: CSAV
H1 2018 Results: CSAV Figures in USD million H1 2018 Q2 2018 Q1 2018 YoY QoQ H1 2017 Q2 2017 Q1 2017 M US$ M US$ M US$ M US$ M US$ M US$ M US$ M US$ Operating revenue 44.6 24.6 20.0 (6.5) (3.9) 51.1 28.5 22.6 Operating cost (41.5) (23.6) (17.9) 6.9 4.0 (48.4) (27.6) (20.8) Gross margin 3.1 1.0 2.1 0
Slide 9: H1 2018 Results: CSAV Segments Results
H1 2018 Results: CSAV Segments Results Figures in USD million Other transport services H1 2018 Q2 2018 Q1 2018 YoY QoQ H1 2017 Q2 2017 Q1 2017 Operating revenue 44.6 24.6 20.0 (6.5) (3.9) 51.1 28.5 22.6 Operating cost (41.5) (23.6) (17.9) 6.9 4.0 (48.4) (27.6) (20.8) Gross margin 3.1 1.0 2.1 0.4 0.1
Slide 10: H1 2018 Results: Hapag-Lloyd EBITDA Margin, EBIT Margin, Transport Volume and Net income trends
H1 2018 Results: Hapag‐Lloyd EBITDA Margin, EBIT Margin, Transport Volume and Net income trends 8.1% 7.8% 2.0% 1.6% H1 2017 H1 2018 H1 2017 H1 2018 EBITDA Margin EBIT Margin Transport Volume Group profit / loss H1 2017 H1 2018 H1 2017 H1 2018 Pro‐forma +3.8% 5,848 5,631 (45) (122) Figures in TEU tho
Slide 11: HLAG H1 2018: Positive EBITDA of US$ 515 M and Positive EBIT of US$ 107 M
HLAG H1 2018: Positive EBITDA of US$ 515 M and Positive EBIT of US$ 107 M Operational KPIs Q2 2018 Q2 2017 YoY H1 2018 H1 2017 YoY Transport volume [TTEU] 2,987 2,287 +31% 5,848 4,221 +39% Freight rate1) [USD/TEU] 1,010 1,072 -6% 1,020 1,065 -4% Bunker [USD/mt] 399 312 +28% 385 312 +23% Exchange rat
Slide 12: Balance Sheet Position
Balance Sheet Position (Figures in USD million) Assets June 2018 December 2017 Var Cash & cash equivalents 26.7 42.4 (15.7) Accounts receivables 15.5 20.0 (4.5) Inventories 4.5 3.2 1.3 Other current assets 2.0 3.2 (1.2) Total current assets 48.7 68.8 (20.1) Equity accounted investees 1,934.7 1,932.3
Slide 13: Cash Position
Cash Position (Figures in USD million) Cash flow H1 2018 Initial cash position 42.4 Operating cash flow (16.7) Investing cash flow (27.6) Equity‐accounted investees (28.4) Non‐controlling interests & subsidiaries 0.5 Interest & dividends received 0.3 Financing cash flow 29.1 Bridge loan received 31.
Slide 14: Outlook
Outlook Main focus of HLAG’s management to reach up to 90% of expected synergies (US$ 435 M p/a) at the end of 2018 and 100% from 2019 onwards, progressing in H1 2018 as planned. Clear target in HLAG to deleverage the company over time, considering highly positive EBITDA and no planned new major
Slide 15: Annexes
Annexes BIICSAV
Slide 16: Hapag-Lloyd and the Geopolitical Risk
Hapag‐Lloyd and the Geopolitical Risk Volume Development of Main Trade Lanes [mTEU in 2018e; in brackets: ø growth rate1) 2018e – 2023e] From EU to US From US to China 3.1 (3.8%) 3.2 (5.5%) From US to EU From China to US 1.9 (3.6%) 10.1 (5.0%) Atlantic Trade: Transpacific Trade: • US imposed tariffs
Slide 17: Hapag-Lloyd / UASC Merger: Synergies progressing in H1 2018 as planned
Hapag‐Lloyd / UASC Merger: Synergies progressing in H1 2018 as planned Synergy potential Full run rate [USD m] Synergy ramp up USD 435 m USD 435 m Synergies implemented for 2018 Network Overhead Other Total 2017 2018 Full run rate Up to 90% of full run rate expected to be realized in 2018 Visibi
Slide 18: Hapag-Lloyd and LSF 2020: Exploring and evaluating all possible options
Hapag‐Lloyd and LSF 2020: Exploring and evaluating all possible options New regulations as of 2020 Low sulphur regulation to be enforced worldwide beginning January 2020 IMO announced target to reduce CO2 emissions by 50% by 2050 3 options for the industry Hapag-Lloyd’s position 1 High upfront
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