Compañía Sud Americana de Vapores S.A. June, 2010

Transcription

1 Compañía Sud Americana de Vapores S.A. June, 2010

2 Agenda CSAV Group Containerized Cargo Transportation Industry CSAV Figures Successfully Weathering The Storm. Positive Trends. Warnings and Risks Pág. 2

3 CSAV Group Pág. 3

4 Since 1872 Founded in Chile in 1872, Compañía Sud Americana de Vapores is the largest shipping company in America and one of the oldest ones in the world. Traded in the Santiago Stock Exchange since its origins in Pág. 4

5 CSAV is the largest Shipping Company in America Ranking Operator Country Capacity (Teus) 8 CSAV Group Chile 477, CCNI Chile 42, Maruba + CLAN Argentina 39, Horizon Lines USA 34, Seaboard Marine USA 33, Matson USA 29, Crowley Liner Services USA 19, Westwood USA 15, Dole Ocean Liner USA 15, Log-In Logistica Brasil 12, Great White Fleet USA 9, Tropical Shg USA 7, Melfi C.L. Cuba 7, SeaFreight Cayman 7, King Ocean USA 6, Independent Container Line USA 5,910 Source: Alphaliner, May-10 Pág. 5

6 Business Units Shipping Business Transportation of: Containerized Cargo Vehicles Reefer Cargo Solid and Liquid Bulks SAAM Terminal Operations Tugboats Others: Container deposit, loading and unloading services, port, agency, logistics, airport and aquaculture. Pág. 6

7 Container Transportation Services: a Global Company EUROANDES ECS ANDEX FEEDER ADRIATIC ABS SGLX JCS JCS ANDEX 1 & 2 AMERICAS GULF BRIDGE MED MEX CUBA MEDITERRANEAN MAYA TANGO 1 & 2 BSL INTRA GULF IMEX INDUS AMEX ANDEX 1 & 2 AMEX ORINOCO US GULF SIRIUS EUROATLAN 1 & 2 MARCO POLO MNS & FEM ASAX ANDINO CONOSUR PATAGONIA 34 transport services in containers, operated by 127 containerships. North South Services (South America to/from North America, Europe and Asia), directly operated by CSAV and its subsidiaries Libra Brazil and Libra Uruguay. East West Services operated by Norasia Container Lines Ltd. subsidiary. Slide Pág. 7 7

8 Container Transportation Services West Coast South America East Coast South America SERVICE ROUTE SERVICE ROUTE Americas USEC - WCSA Asax ECSA - S. Africa - Asia Andex Sling 1 Asia - Mex - WCSA Euroatlan Sling 1 N Eur - ECSA Andex Sling 2 Asia - Mex - Central America - WCSA Euroatlan Sling 2 N Eur - ECSA Andex Feeder WCNA - Mex - Caribbean US Gulf US Gulf - ECSA AMEX Asia - Caribbean - USEC Sirius Medit - ECSA JCS Asia - Mex - Caribbean Marco Polo ECSA - S. Africa - M. East - India Euroandes Neur - Caribbean - WCSA Tango Sling 1 USEC - ECSA ECS Neur - Caribbean Tango Sling 2 USEC - ECSA Mediterranean Medit - WCSA Conosur ECSA - WCSA Med-Mex Medit - Mex - US Gulf Patagonia ECSA Gulf Bridge US Gulf - Caribbean Conosur ECSA - WCSA East - West Andino Chile SERVICE ROUTE Maya Caribbean ABS Black Sea - Asia Orinoco Caribbean Super Galex Persian Gulf - Asia Cuba Caribbean INDUS India - Asia IMEX Mare Nostrum FEM Black Sea Link Intragulf Adriatic N. Eur - Persian Gulf-India Medit-Asia Medit-Asia Black Sea Persian Gulf Adriatic Sea Pág. 8

9 Vehicle Transportation Services GRAN MEDITERRANEAN GRAN AMERICA EUMEXSA GRAN MIDDLE EAST SHIN NANSEIKAI SHIN NANSEIKAI CARPAC NASA EAST COAST LOOP A EAST COAST LOOP B ASAF AUSTRAL 10 specialized services in vehicle transportation, operated by 10 Car Carrier ships. CSAV, in consortium with other leading shipping companies, operates a specialized fleet in vehicle transportation (Car Carriers), linking South America with Asia, Europe, USA and Mexico; both South American coasts; USA with the Mediterranean east coast; and Asia with the Persian Gulf and South Africa. Pág. 9

10 Reefer Cargo Transportation Services Philadelphia USEC West Coast South America East Coast North America Los Angeles USWC West Coast South America West Coast North America NB SB Round Voyage 28 Frequency Season Weekly Nov / May RUSSIA West Coast South America Russia Caldera Coquimbo Valparaíso St Petersburg NB SB Coquimbo Valparaíso Round Voyage 28 Frequency Season EUROPE West Coast South America North Europe Bristol Weekly Dec / Apr Sheerness Rotterdam Flushing CSAV operates specialized services in reefer cargo transportation, serving the fruit export market, mainly from the West Coast of South America to USA, North Europe and Russia. Round Voyage 42 NB SB Round Voyage 50 Frequency 10 days Season Jan / May NB SB Frequency Season Weekly Jan / May Coquimbo Valparaíso Coquimbo Valparaíso Pág. 10

11 Liquid and Solid Bulk Transportation Services Dry Bulk Dry Bulk DBCN Bulk** Liquid Bulk 2 specialized services in the bulk cargo transportation services, operated by 4 bulk carriers and one chemical carrier. **DBCN on spot basis CSAV by means of its solid and liquid bulk transportation services carries: Copper and Zinc concentrates, Iron Ore, Metallurgical and Thermal Coal, Fertilizers and Grains. Liquid Bulk includes Sulphuric Acid, Caustic Soda, Methanol as well as Vegetable and Fish oil. Pág. 11

12 SAAM in America 62 Ports in 11 Countries Florida Altamira Tampico Tuxpan Veracruz Ciudad del Carmen Dos Bocas Lázaro Cárdenas Terminal operations, tugboats, container deposits, load/unload services, port, agency, logistics, airport and aquaculture. Puerto Quetzal San José Punta Morales Puerto Caldera Puntarenas Buenaventura Esmeralda Manta Guayaquil Puerto Bolívar Paita Chicama Chimbote Salaverry Supe Callao Pisco Matarani Ilo Huarmey Arica Iquique Patillos Patache Antofagasta Chañaral Coquimbo Quintero Valparaíso Santiago San Antonio Talcahuano San Vicente Puerto Corral Puerto Montt Puerto Chacabuco Mejillones Punta Arenas U.S.A. Mexico Guatemala Costa Rica Itaqui Colombia Maceio Salvador Vitória Rio de Janeiro Santos Sao Sebastao Paranagua Itajaí Rio Grande Montevideo Nueva Palmira Fray Bentos M Bopiquá Puerto Madryn Ushuaia Ecuador Peru Chile Argentina Uruguay Brazil Pág. 12

13 SAAM: Concessions in Chilean Ports Port Operations in 6 Chilean ports Arica Iquique Antofagasta Terminal Puerto Arica S.A. Iquique Terminal Internacional S.A. Antofagasta Terminal Internacional S.A. San Antonio San Vicente San Antonio Terminal Internacional S.A. San Antonio San Vicente Terminal Internacional S.A. Corral Portuaria Corral S.A. Pág. 13

14 SAAM: Port Concessions in America Florida International Terminal Port Everglades, USA Guayaquil Terminal Portuario Guayaquil Pág. 14

15 SAAM Tugboat Fleet Mexico: 24 Guatemala: 1 Costa Rica: 3 Colombia: 1 Ecuador: 8 Peru: 19 Chile: Uruguay: 24 8 Brazil: 21 Total: 109 Tugboats Pág. 15

16 CSAV Group Property Structure The largest shareholder is the Claro Group, which holds 38,02% of the company s property. The Claro Group is an important Chilean industrial conglomerate involved in the industrial, shipping, port, wine and communication industries. Pension Funds 10.57% Mutual and Investment Funds 3.15% CSAV's Property Structure (May 5, 2010) Stockbrokers 13.30% Banks by Account of Third Parties 2.22% Others 13.90% Stock Exchanges 1.31% Ship Owners 17.53% Claro Group 38.02% Pág. 16

17 The Containerized Cargo Transportation Industry Pág. 17

18 The Largest 30 Container Shipping Companies Ranking according to Capacity (Teus) APM-Maersk 1 Mediterranean Shg Co 2 CMA CGM Group 3 APL 4 Evergreen Line 5 Hapag-Lloyd 6 COSCO Container L. 7 CSAV Group 8 Hanjin Shipping 9 CSCL 10 NYK 11 MOL 12 OOCL 13 Hamburg Süd Group 14 Zim 15 K Line 16 Yang Ming Marine Hyundai M.M. 18 PIL (Pacific Int. Line) 19 UASC 20 Wan Hai Lines 21 HDS Lines 22 MISC Berhad 23 TS Lines 24 Sea Consortium 25 RCL (Regional Container Grimaldi (Napoli) 27 CCNI 28 KMTC 29 STX-Pan Ocean ,650 (4.2%) 557,456 (4.0%) 543,743 (3.9%) 496,156 (3.5%) 477,519 (3.4%) 448,051 (3.2%) 440,236 (3.1%) 364,941 (2.6%) 364,484 (2.6%) 351,726 (2.5%) 337,748 (2.4%) 324,582 (2.3%) 321,017 (2.3%) 317,197(2.2%) 271,604 (1.9%) 230,071 (1.6%) 199,082 (1.4%) 159,963 (1.1%) 104,519 (0.7%) 91,903 (0.7%) 61,965 (0.4%) 56,178 (0.4%) 53,691 (0.4%) 51,246 (0.4%) 42,192 (0.3%) 40,215 (0.3%) 39,525 (0.3%) 1,101,793 (7.8%) 2,059,135 (14.6%) 1,646,213 (11.7%) Nº 8 Source: Alphaliner May 2010 Slide Pág

19 Demand for Containerized Cargo Transportation vs. GDP Between 1981 and 2009, the demand for containerized cargo transport grew on average more than 3.3 fold compared to the world s GDP, while CSAV grew 10.9 fold in the same period. 80% % CSAV Growth vs Shipping Industry vs World's GDP 70% 60% 50% Growth % 40% 30% 20% 10% 0% -10% -20% %CSAV % Shipping Industry % World's GDP Sources: Clarkson Research Services, International Monetary Fund and CSAV Annual Reports. Pág. 19

20 Containerized Cargo Transportation Supply Since 1996, the available nominal world capacity for transport in Container Vessels has grown at an average rate of 11,4%. 18% Container Capacity (% of Growth) 16% 14% 12% 10% 8% 6% 4% 2% 13.2% % 11.7% 5.1% 9.6% 12.3% 11.1% 8.9% 9.8% 13.2% % % 12.7% 6.2% Average Growth per Year: 11,4% 7.2% 0% e Source: Clarkson Research Services, April 2010 For the next three years, a smaller growth in supply than the initially estimated increase is expected, due to the postponement and cancellation of existing shipbuilding orders, the absence of new orders, and an increase in scrappage. Pág. 20

21 CSAV Figures Pág. 21

22 Results: (Million of US$) Var. '09 - '08 US$ MM % Operating Revenues 2,136 2,686 3,902 3,859 4,151 4,887 3,028 (1,859) -38.0% Operating Expenses (1,863) (2,290) (3,425) (3,795) (3,786) (4,689) (3,358) 1, % Operating Margin (330) (528) - S&A Expenses (206) (255) (318) (297) (310) (332) (270) % Operating Income (232) 54 (134) (600) (466) - % of Op.Margin 3.1% 5.2% 4.1% -6.0% 1.3% -2.7% -19.8% -17.1% - Non Operating Income (107) (229) - Income Before Tax (77) 154 (12) (707) (695) - Net Income (58) 117 (39) (669) (630) - EBITDA (633) (688) - EBITDA Margin 7.4% 11.7% 6.0% 0.1% 5.2% 1.1% -20.9% -22.0% - EBITDA calculated as Net Income plus depreciation, amortization, income tax and net financial expenses. Pág. 22

23 Results: Q Q (Million of US$) Q1-2009* Q1-2010* Var. Q1 '10 / Q1 '09 US$ MM % Operating Revenues 827 1, % Operating Expenses (1,023) (1,097) (74) 7.2% Operating Margin (196) S&A Expenses (68) (50) % Operating Income (264) (35) % of Op.Margin -31.9% -3.2% 28.7% - Non Operating Income (7) (0) 6 - Income Before Tax (270) (35) Net Income (263) (38) EBITDA (239) (16) EBITDA Margin -28.9% -1.5% 27.4% - EBITDA calculated as Net Income plus depreciation, amortization, income tax and net financial expenses. *Under IFRS Accounting Standard Pág. 23

24 Operating Results per Business: Q Q Shipping Business Q1-2009* Q1-2010* Var. Q1 '10 / Q1 '09 (Million US$) US$ MM % Operating Revenues 754 1, % Operating Expenses (973) (1,042) (69) 7.1% Operating Margin (219) (5) 213 S&A Expenses (60) (42) % Operating Income (278) (47) 232 Net Inc Inv. Rel. Comp. 3 3 (0) -5.8% Operating Income + Net Inc. Inv. Rel. Comp. (275) (44) 231 SAAM Q1-2009* Q1-2010* (Million US$) US$ MM % Operating Revenues % Operating Expenses (61) (64) (3) 5.7% Operating Margin (2) S&A Expenses (8) (9) (1) 10.1% Operating Income (3) Net Inc Inv. Rel. Comp. 5 3 (2) -32.9% Operating Income + Net Inc. Inv. Rel. Comp. *Under IFRS Accounting Standard (5) Var. Q1 '10 / Q1 '09 Pág. 24

25 Operated Fleet by CSAV (up to May, 2010) Container Vessels 127 Bulk Carriers 5 (8 owned, 1 by joint venture) (1 owned) 5 10 Reefer Car Chemical Carriers Carriers Carriers 1 (1 by joint venture) Owned 11 Ships (9 owned 100%, 2 by JV) Chartered 137 Total 148 Ships Ships On board TEUS (capacity) 477,519 Container Vessels under construction 5x 8,000 Teu (Q Q1 2012) 2x 6,600 Teu (Q Q2 2011) Container fleet Dry (Teus) 539,672 Reefer 34,305 Tug Boats 109 (80 owned 29 by JV) Pág. 25

26 Successfully Weathering the Storm. Positive Trends. Pág. 26

27 2009: The Worst Crisis in History. Successfully Weathering the Storm Industry volumes decreased 9% in 2009, in an industry that has a historical average growth of 8,5% and never had a negative growth. Container Shipping Lines recorded operating losses of US$15 Bn. Even though CSAV reduced expenses in US$ MM (Op. Ex S&A 62 / 27.7%), this was not enough to compensate the record decrease in operating revenues of US$ MM (38%), which affected the entire industry. In order to overcome the crisis, where CSAV lost US$ 669 MM, a Financial Strengthening Plan was designed to raise US$ 710 MM through capital increases. This plan was concluded successfully, reaching US$ 773 MM, exceeding the original goal and building a solid financial base to face the future. Pág. 27

28 2009: The Worst Crisis in History. Successfully Weathering the Storm (cont.) CSAV took advantage of opportunities and grew during the crisis, building the foundations for development in the long term. On Board Capacity: Jun -10 / Jan-09: +65.5% During the second quarter of 2010 we expect a positive net income, returning to profitability. Pág. 28

29 An Appealing Industry in the Long Term 90% of world s trade is conducted through maritime routes. (Source: International Maritime Organization, February 2009) Globalization: an irreversible process which has not finished yet. Large growth ratios: during the last 29 years the containerized cargo has grown at a yearly rate of 8,5%. (Source: Clarkson Research Services) Increasing consolidation: 20 years ago the Top 20 companies had a market share of 73%. Nowadays this figure has risen to 81%. (Source: Alphaliner) Pág. 29

30 Idle Capacity Evolution Idle Capacity 12% 1,800 Over Tota al Fleet (%) 10% 8% 6% 4% 2% 1,500 1, Teus (Th housand) 0% 0 Teus Over Total Fleet Source: Alphaliner Pág. 30

31 Orderbook Evolution Orderbook / World Capacity 65% 60% 55% 50% 45% 40% 35% 30% Source: Clarkson Pág. 31 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10

32 Company in a Privileged Position Market leader in Latin America Leadership in emerging economies Critical mass / efficient minimal scale We have conquered the distribution channel An investment platform Ship-Owning Business: a world to be explored SAAM: a great company with an enormous potential Pág. 32

33 Leadership in Latin America and Emerging Economies In the container transportation market in Latin America, CSAV holds a share between 14% and 16%, positioning itself among the three leading operators. CSAV has a strong presence in emerging economies such as Brazil, China, India, Middle East and Turkey. In the Asia-Black Sea, India-North Europe, Asia-Middle East and Asia- India routes, CSAV is among the five leading operators. Critical mass / efficient minimal scale Pág. 33

34 A New Business Model: We have conquered the Distribution Channel Currently we control directly more than 80% of our sales. Northern Europe North America Mediterranean Asia South American West Coast South American East Coast & Africa Operations in 205 cities through 105 Agencies Regional offices in 7 key cities: Valparaíso New Jersey Hamburg Barcelona Sao Paulo Hong Kong Shanghai Pág. 34

35 An Investment Platform Geographical diversity Business diversity and Investment projects: logistics ships ports containers, etc. Pág. 35

36 Ship-owning Business: A World to be Explored Owned vs Operated Capacity (in Teus) CSAV 9.0% Industry (excluding CSAV) Top % Top % Top % Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Chartered Fleet [Teus] 91,118 98, , , , , , , , , , ,774 Owned Fleet [Teus] 0 1,620 1,620 5,929 12,736 36,402 36,402 36,402 36,402 51,125 89,714 97,714 Total Fleet [Teus] 91, , , , , , , , , , , ,488 Chartered Ships [N ] Owned Ships [N ] Total Ships [N ] Owned Fleet (Teus) [%] 0% 2% 1% 3% 5% 14% 14% 13% 11% 10% 16% 17% Source: Alphaliner, May 2010 Pág. 36

37 SAAM: a Great Company with an Enormous Potential SAAM has an enormous potential to develop investment opportunities and complementary businesses to CSAV. SAAM Net Income: (US$ million) Q Pág. 37

38 Historical Liftings , , , , , , ,000 2,500 3,000 ousand) CSAV Group Historical Liftings Pág , , ,3 1, ,000 1, e Teus (Tho

39 Recent Record Liftings CSAV Group Container Liftings Evolution Teus (T Thousand) Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Pág. 39

40 Positive Rate Trend (subject to uncertainties) CSAV Group Container Business Rate Index per Teu Evolution 2,200 2,000 1,800 Freight (US$) 1,600 1,400 1,200 1,000 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ,982 2,011 2,044 1,978 1,911 1,946 1,987 1,975 2,070 2,103 2,050 1, ,696 1,630 1,626 1,637 1,520 1,375 1,314 1,247 1,302 1,469 1,526 1, ,551 1,610 1,742 1,662 1,817 Index calculated using the average income per Teu of container business in 2008 set to value of 2,000 points. Pág. 40

41 Significant Share s Liquidity On average, every month around 34 million CSAV shares are traded, which represents 3.8% of the total shares of the company. Monthly Traded Volume of CSAV Shares % 9% % of Total Shares 8% 7% 6% Pág. 41 (millions) % 4% 3% 2% 1% 0% Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Monthly Traded Volume Monthly Traded Volume % of the Traded Total Source: Bloomberg

42 Warnings and Risks The warnings and risks publicly disclosed in shareholders meetings and previous financial statements are reiterated. Pág. 42

43 Important The content of this presentation has been extracted from local and external sources, which even though are acknowledge as trustworthy and are identified along the presentation, they have not been independently verified by CSAV, whom therefore does not take the responsibility for it. This presentation contains estimates and forecasts which, for their nature and context, involve risks and uncertainties, because are based in supposed events, scenarios and financial and economical circumstances which may occur or not in the future. In this way, the current financial situation of CSAV, its operational results, cash flows and the industry and market development in which CSAV operates, may differ in the future in a way more less substantial from the estimates suggested in this presentation. Whom who receives this presentation acknowledge and accept that CSAV does not acquire any commitment related to the accuracy, integrity and permanence of the contents of this presentation and does not assume any obligation to update or correct the information contained in it. The purpose of this presentation is to deliver general nature precedents so that every investor, in an independent and individual way, assess the convenience of investing in CSAV shares. Therefore each investor, individually and with the consultancy of trusted professionals must independently adopt the decision to invest or not in CSAV shares, without considering this presentation. Considering the previous statement, CSAV will not be held liable for losses or damages derived from the use of information offered in this presentation, or the decisions based on that information. Pág. 43

44 Many Thanks Pág. 44