Sociedad Matriz Saam S.A. · BCS:SMSAAM
Sociedad Matriz Saam — FY2019 Earnings Presentation
25 slides from Sociedad Matriz Saam's earnings presentation, March 2020
Slide 1: 2019 Results
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Slide 2: Disclaimer
This presentation provides general information about Sociedad Matriz SAAM S.A. (“SMS AAM”) 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 warranties, express
Slide 3: SAAM at a Glance
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Slide 4: SAAM at a Glance (1)
SAAM AT BUS INE S S DIVIS IONS A GLANCE (1) • SAAM provides harbour and offshore towage, port terminal and logistics services for the foreign trade industry • Operations at 79 ports in 12 countries in the Americas Largest towage Port operations in 6 Warehousing, • Listed on Santiago Exchange operato
Slide 5: Historical Growth
EBITDA (MUS$) EBITDA margin (%) 200.0 36.0 % 180.0 HISTORICAL 177.0 33.4% 34.0 % +93% GROWTH (1) 32.0 % 160.0 145.9 30.0 % 140.0 28.3% 28.0 % 116.7 120.0 26.0 % 100.0 91.8 91.4 24.9% 24.0 % 23.2% 80.0 22.0 % 21.5% 60.0 20.0 % 2015 2016 2017 2018 2019 • Concession extensions (FIT, • Tug´s fleet´s upg
Slide 6: 2019 Highlights
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Slide 7: Diversification and Growth in a Challenging Context
DIVERSIFICATION AND GROWTH IN A CHALLE NGING CONTE XT • Acquisition of interest from Boskalis (exJV) for MUS$194 • Successful implementation of new operating model • Listed on DJSI Chile for 4th year and DJSI MILA for 2nd year • Effects of domestic social crisis Net income for 2019 • Capex US$82 mil
Slide 8: Successful Implementation of New Operating Model
SUCCESSFUL IMPLEMENTATION OF NE W OPE RATING MODE L • Implementation of culture of • Cost cutting • Recovery of growth capacity • Organizational redesign operational excellence MAIN STEPS TAKEN CORPORATE BUSINESS DIVISIONS • Simplify corporate governance model • Cost optimization • Centralize suppor
Slide 9: 2019 Results
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Slide 10: Growth in a Challenging Context
GROWTH IN A CHALLE NGING CONTE XT REVENUE 2019 (3) Consolidated Data ThUS $ 4Q2019 4Q2018 Δ% Δ 2019 2018 Δ% Δ 10% Revenue 143,992 132,783 8% 11,209 529,793 515,987 3% 13,806 Cost of sales -99,206 -92,399 7% -6,807 -365,506 -366,442 0% 936 51% 39% Administrative expenses -18,682 -19,720 -5% 1,038 -68
Slide 11: Broad Geographic Diversification
BROAD GEOGRAPHIC DIVERSIFICATION • Operations in 12 countries in the Americas CANADA • +77% consolidated EB ITDA from outside Chile (67% at equity-method value (2)) PORT TERMINALS TOWAGE USA CONSOLIDATED EBITDA 2019 (1) EQUITY-METHOD EBITDA 2019 (2) LOGISTICS MEXICO GUATEMALA PANAMA CENTRAL AMERICA
Slide 12: Results for the Year: Net Income 2019 / 2018
RE S ULTS FOR THE YE AR NE T INCOME THUS $ 2019 / 2018 Variation in Net Income SM SAAM 2019 vs 2018 3,965 1,550 4,460 57,998 218 57,780 5,164 51,779 2,172 49,607 Actual 2018 Non-recurring Actual 2018 Port Terminals Towage Logistics Other non- Actual 2019 Non-recurring Actual 2019 costs and excl oper
Slide 13: Leverage
LEVERAGE Financial debt maturity profile(1) (Dec 2019, MUS$) Net financial debt (2) (Dec 2019, MUS$) Consolidated PV Associates PV 592 105 354 112 111 237 83 94 87 57 487 49 18 220 267 1 year 1 - 2 years 2 - 3 years 3 - 4 years 4 - 5 years > 5 years F INANCIAL CAS H NFD DE B T Net financial debt(1)
Slide 14: Growing Returns in a Challenging Context
GROWING RETURNS IN A CHALLENGING CONTEXT SALES (MUS$) Towage P ort Terminals Logistics EBITDA, EBITDA MARGIN (MUS$) 529 515 177.0 468 58 51 +93% 35.0 % 426 170.0 33.4% 394 69 145.9 112 150.0 94 274 271 130.0 116.7 218 28.3% 125 115 110.0 91.8 91.4 90.0 24.9% 189 185 182 187 207 70.0 23.2% 50.0 21.5%
Slide 15: Towage Division
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Slide 16: Towage: Growth and Consolidation
TOWAGE: GROWTH AND REVENUE 2019 (3) CONSOLIDATION CENTRAL CHILE AMERICA 13% 13% • Consolidating 100% of Brazil, Canada, Mexico and Panama starting November 2019 NORTH • Rise in special services and salvage AMERICA 29% SOUTH • Social crisis in Chile AMERICA EXCL CHILE • Cost efficiencies (fuel and ma
Slide 17: SAAM Towage: Consolidation in the Americas
SAAM TOWAGE; CONSOLIDATION IN THE AME RICAS ACQUISITION OF BOSKALIS’S STAKE FOR MUS$194 • Acquisition of 49% of Canada, Mexico and Panama and 50% of Brazil to attain 100% • Enterprise value as of close (@100%) MUS$528 • Purchase price MUS$194 • Financing: approx 50% cash – 50% debt NEW MARKETS AND C
Slide 18: Port Terminals Division
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Slide 19: Port Terminals: Increase in Margins and Results Despite Adverse Local Context
PORT TERMINALS: INCREASE IN MARGINS AND REVENUE 2019 (2) RESULTS DESPITE ADVERSE LOCAL CONTEXT CENTRAL AMERICA 10% NORTH AMERICA CHILE 16% 44% • Chilean terminals affected by social crisis • Growth at foreign terminals SOUTH AMERICA • Cost efficiencies from new operating model EXCL CHILE 30% CONSOLI
Slide 20: Logistics Division
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Slide 21: Logistics: Optimization of Cost and Expense Structure
LOGIS TICS : OPTIMIZATION OF COS T AND E XP E NS E S TRUCTURE RE S ULTS IN IMPROVE D MARGINS DE S P ITE LOWE R VOLUME S • Logística Chile: • Aerosan: Reduced costs and administrative expenses Larger export volumes Lower volumes at bonded warehouses • Reloncaví: Lower woodchip volumes CONSOLI
Slide 22: Outlook: Diversification, Our Major Strength
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Slide 23: Coronavirus
CORONAVIRUS • All of foreign trade has been impacted by the effects of the coronavirus • At first, the problems centered around trade with Asia, but right now shipments have become more complex and some have been delayed. • In any case, it is still too soon to make projections since it is still uncl
Slide 24: Diversification and Ongoing Optimization
DIVE RS IF ICATION AND ONGOING OPTIMIZATION • Effects of coronavirus • Proposed dividend of US$34 million (58% of net income for 2019) • E stimated 2020 Capex MUS$88 (1) (consolidated MUS$73) • E xpansion of new operating model • Signed agreement to acquire 70% of Intertug • Integration and synergie
Slide 25: Questions
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