Sociedad Matriz Saam S.A. · BCS:SMSAAM
Sociedad Matriz Saam — Q3 2014 Earnings Presentation
36 slides from Sociedad Matriz Saam's earnings presentation, Nov 24, 2014
Slide 1: Presentation of Results for 3Q 2014
Presentation of Results for 3Q 2014 November 24, 2014 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 3Q 2014 Growth Plan 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 182+11 (1) +300 ha. Tugboat
Slide 5: Recent Events
Recent Events Corporate: • Changes in top management teams aimed at structural strengthening • Banco Penta coverage, BUY potential upside of 10% Tugboats: • SAAM and SMIT commenced joint tugboat service operation in four American countries. o Under the new name of SAAM SMIT Towage, the new company o
Slide 6: Recent Events
Recent Events Port Terminals : • Replacement of General Managers at ITI, STI and TMAZ • Re-structuring of the Business Segment, creation of the areas of Projects and Operational Efficiency. • Approval of 10-year extension of ATI concession. • Request for extension of FIT concession was submitted to
Slide 7: SM SAAM Shareholders as of September 30, 2014
SM SAAM Shareholders as of September 30, 2014 Total: 3,484 Shareholders Quiñenco Other Retail Luksic Group 15.7% Market Cap (1) MUS$794 42.4% Foreign 9.4% Total Shares (2) 9,736,791,983 Free Float 45.1% Other- Dividend yield 2013 2.8% Institutional 11.0% Dividend yield 2014 4.4% AFPs 11 Directors 9.
Slide 8: Agenda
Agenda Executive Summary Industry Overview Results 3Q 2014 Growth Plan 8
Slide 9: External factors
External factors • Cargo movement in Latin American and Caribbean ports increased 1.7% in 2013, thus confirming a downturn in the region’s external trade. • In 2010 and 2011, annual growth reached 14 % whereas in 2012 it was only 5.9 % • It is estimated that at the closing of 2014 in Latin America a
Slide 10: External factors
External factors • Port workers’ strike in January of 2014, demanding payment for half hour lunch break, lasting for 22 days. This had an effect on all of SAAM’s Chilean port terminals, causing two main impacts: ‐ A drop in the level of activity in Chile during January, affecting results for the thr
Slide 11: External factors
External factors • ‘Preliminary Draft Bill’ (“Ley Corta”) for Ports ‐ Introduces a half-hour lunch break, therefore reducing actual working hours from 7.5 hrs to 7 hrs per shift ‐ Prior agreement with the unions, the break may be granted simultaneously or alternately to all workers, beginning in the
Slide 12: External Factors
External Factors • Consolidations/Alliances of Shipping Companies ‐ 2M Alliance (Maersk and MSC) ‐ Ocean 3 Alliance (CMA-CGM, China Shipping Container Lines and United Arab Shipping Co) ‐ CSAV/Hapag Lloyd Merger ‐ Purchase of CCNI by Hamburg Sud • “Multirut” Law enacted on July 4, 2014 ‐ Greater uni
Slide 13: Agenda
Agenda Executive Summary Industry Overview Results 3Q 2014 Growth Plan 13
Slide 14: SMSAAM Results 3Q 2014
SMSAAM Results 3Q 2014 REVENUES US$ Millions Consolidated Affiliates 250 250 193 200 200 183 182 185 200 176 4% -1% 65 14% 78 150 62 59 64 59 150 100 100 121 122 121 127 117 122 50 50 0 0 1Q2013 1Q2014 2Q2013 2Q2014 3Q2013 3Q2014 Note: values for affiliates are proportional (weighted by ownership).
Slide 15: SMSAAM Results 3Q 2014
SMSAAM Results 3Q 2014 EARNINGS US$ Millions 30 25 25 20 20 15 15 25 -40% -10% 10 10 -34% 17 16 15 15 11 5 5 0 0 1Q2013 1Q2014 2Q2013 2Q2014 3Q2013 3Q2014 GEOGRAPHIC DIVERSIFICATION of EBITDA Year to date September 2014 Central America Chile 4% South America 34% 36% North America 26% Note: based on
Slide 16: SMSAAM Results 3Q 2014 Explanation
SMSAAM Results 3Q 2014 Explanation Operating Results (US$17.2 million; +40%QoQ) • Improved performance of Tugboats Mexico. • Entry to Panama and Canada markets with Tugboats, through Joint Venture with Boskalis. • Improved performance of Port Terminals in Guayaquil (Ecuador) and Iquique (Chile) Non-
Slide 17: Business Diversification
Business Diversification DISTRIBUTION OF SALES 3Q 2014 EBITDA DISTRIBUTION 3Q 2014 Logistics Logistics 14% RAM RAM 30% 40% 50% Port Port Terminals Terminals 36% 30% DISTRIBUTION OF SALES YEAR TO DATE Sept. 2014 EBITDA DISTRIBUTION YEAR TO DATE Sept 2014 Logistics RAM Logistics RAM 20% 36% 34% 46% Po
Slide 18: Leverage Capacity
Leverage Capacity NET FINANCIAL DEBT (MUS$ September 2014) Consolidated Values Sep-14 2013 Net Debt / EBITDA (*) 1.34 1.51 359 Net Debt / Equity 0.17 0.21 168 258 123 Consolidated Values Sep-14 2013 101 191 45 135 Indebtedness 0.47 0.54 55 Financial Debt Cash Net Debt Financial Indebtedness 0.23 0.2
Slide 19: Port Terminals
Port Terminals FOREIGN FIT TMAZ Florida International Terminal Marítimo Puerto Buenavista Terminal Portuario Terminal, USA Mazatlán, México S.A. Colombia of Guayaquil, PBV Ecuador CHILE TPG TPA ITI Terminal Puerto Iquique Antofagasta ATI Arica S.A. International International STI Terminal S.A. Termi
Slide 20: Port Terminals - Leading Operator in South America
Port Terminals - Leading Operator in South America Total TEUs Transferred Ranking %SMSAAM 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, C
Slide 21: Port Terminals - Recovery in Results after Port Strike
Port Terminals - Recovery in Results after Port Strike REVENUES US$ Millions Consolidated Affiliates 75 75 65 59 60 60 65 54 53 54 55 -2% 2% 55 13% 26 45 30 29 45 29 25 27 35 35 25 25 15 29 31 34 15 25 28 27 5 5 -5 1Q2013 1Q2014 2Q2013 2Q2014 3Q2013 3Q2014 -5 Note: Affiliate values are proportional
Slide 22: Port Terminals - Recovery of Results after Port Strike
Port Terminals - Recovery of Results after Port Strike TONS (Thousands) Consolidated Affiliates 6000,0 6000,0 5000,0 4,535 4,472 4,406 5000,0 4,071 4,275 3,817 4000,0 -1% 3% 4000,0 -6% 3000,0 2,910 2,848 2,811 2,656 3000,0 2,777 2,418 2000,0 2000,0 1000,0 1,625 1,750 1000,0 1,294 1,399 1,624 1,464 ,
Slide 23: Port Terminals Results for Third Quarter
Port Terminals Results for Third Quarter Revenues (US$60.4 million; +13%QoQ) EBITDA (US$177 million; +28%QoQ) Port Terminals – Consolidated Companies Revenues (US$34 million; +28% QoQ) EBITDA (US$9.1 million; +71%QoQ) • New service in Guayaquil (TPG) and increased activity in terminal services. • In
Slide 24: Tugboats
Tugboats Highlights • Fourth Operator at World Level • Leaders in Latin America Canada • Operations in 11 Countries • 182 Tugboats Mexico Guatemala Honduras • 66% are Azimuth tugboats Costa Rica Panama Ecuador • Present in over 70 Ports Brazil Peru Chile Uruguay 24
Slide 25: SAAM SMIT TOWAGE synergies estimated at US$10 million per year
SAAM SMIT TOWAGE synergies estimated at US$ 10 million per year Executive Summary SMIT – Canada (N°1 West Coast) Total Tugboats 22 SAAM SMIT TOTAL Revenues 2013 130.8 121.6 252.4 (US$M) Tugboats (at 54 56 110 Nov.2014) SAAM – Mexico (N°1) Under 0 3 3 Tugboats 27 Construction SAAM – Brazil Tugboats 2
Slide 26: Tugboats - Results
Tugboats - Results REVENUES US$ Millions Consolidated Affiliates 90 79 90 80 80 70 61 64 70 57 59 59 25 60 8% 7 35% 60 8% 8 8 8 50 8 50 40 40 30 56 30 49 54 50 51 54 20 20 10 10 0 0 1Q2013 1Q2014 2Q2013 2Q2014 3Q2013 3Q2014 Note: Affiliates values are proportional (weighted by ownership). EBITDA US$
Slide 27: Tugboats - Results
Tugboats - Results OPERATIONS 26000,0 24,218 26000,0 21000,0 17,594 17,437 17,546 17,893 17,226 5,569 21000,0 16000,0 1,026 922,870 878,080 908,950 919,240 41% 16000,0 -1% 2% 11000,0 11000,0 16,568 16,514 16,668 16,984 18,649 16,307 6000,0 6000,0 1000,0 1000,0 -4000,0 1Q2013 1Q2014 2Q2013 2Q2014 3Q2
Slide 28: Tugboats - Results
Tugboats - Results Revenues (US$78.9 million; +35%QoQ) EBITDA (US$25.3 million; +59%QoQ) Tugboats - Consolidated Companies Revenues (US$53.8 million; +6%QoQ) EBITDA (US$17.9 million; +32%QoQ) • Increased sales in Chile, Ecuador, Mexico, Panama and Canada. The two latter constitute new markets for SA
Slide 29: Logistics
Logistics Services to Shipping and Airline Companies Contract Logistics Special Services 29
Slide 30: Logistics
Logistics Services to Shipping and Airline Companies Maritime Agency Services Services to Passengers and Airplanes Port Operations(1) Container Depots and Workshops Contract Logistics Warehousing, Storage and Refrigeration Containers’ Consolidation and Deconsolidation Bulk and Break Bulk Cargo Trans
Slide 31: Logistics Results
Logistics Results REVENUES US$ Millions Consolidated Affiliates 90 90 80 72 80 67 68 69 70 64 70 -6% 2% 61 60 25 -5% 60 26 26 29 24 50 26 50 40 40 30 30 20 46 41 41 20 40 40 34 10 10 0 0 1Q2013 1Q2014 2Q2013 2Q2014 3Q2013 3Q2014 EBITDA US$ Millions SALES DISTRIBUTION 3Q2014 25 20 18 Special 20 17% S
Slide 32: Logistics Results - Third Quarter
Logistics Results - Third Quarter Revenues (US$60.5 million; -5%QoQ) EBITDA (US$7 million; -34%QoQ) Logistics - Consolidated Companies Revenues (US$34.3 million; -13%QoQ) EBITDA (US$1.7 million; -65%QoQ) • Logistics-Chile recorded diminished activity in container depot and workshop services, and ter
Slide 33: Agenda
Agenda Executive Summary Industry Overview Results 3Q 2014 Growth Plan 33
Slide 34: Growth Plan
Growth Plan Corporate : • Improvement of efficiency levels throughout the company with the creation of shared administrative and operative services Port Terminals : • Materialize port market opportunities in Brazil • Participate in tender processes and/or privatization of port terminals in Latin Ame
Slide 35: Contact
Contact Paula Raventós Head of Investor Relations Sociedad Matriz SAAM S.A. Hendaya 60, piso 8, Santiago, Chile (56-2) 2731-8240 praventos@saamsa.com www.smsaam.com 35
Slide 36: Presentation of Results for 3Q 2014
Presentation of Results for 3Q 2014 November 24, 2014 36 36