Roadshow Presentation Preemptive Rights Offering
October 2017 Disclaimer
The information hereby contained is a brief description of the characteristics of the issuance and of Compañía Sud Americana de Valores S.A. (“CSAV”), not comprising all necessary information to make an investment decision. More information is available at CSAV headquarters, Credicorp Capital S.A. Corredores de Bolsa offices, Banchile Corredores de Bolsa S.A. offices and BTG Pactual Chile S.A. Corredores de Bolsa offices (the “Placement Agents”) and at Superintendencia de Valores y Seguros, as well as in our website www.csav.com.
Dear investor:
Before making an investment, you should be fully informed about the financial condition of CSAV and evaluate the convenience of acquiring these securities. The Placement Agents shall provide the investors with the information contained in the Prospecto filed in the Registro de Valores of the Superintendencia de Valores y Seguros, before you make your investment.
This offer is only registered in Chile under the laws and regulations of Chile and it shall not be deemed made in any other jurisdiction than Chile.
2 The offer: summary of offering terms
Issuer . Compañía Sud Americana de Vapores S.A. (“CSAV”)
Symbol / listing . Vapores / Santiago Stock Exchange
Offering type . 100% preemptive rights offering of common shares
Base offering type . Rights offering of 6,100,000,000 shares (approx. USD 294 million(1))
. Subscription price of CLP 30.55 per share . Two subscription periods: Subscription rights . period 30-day preemptive rights period . Subject to the board’s decision, potential 6-day second subscription period and potential subsequent 6-day subscription periods and/or private placement of shares on the Santiago Stock Exchange(2)
. Subscription of HLAG’s EUR 352 million(3) (USD 414 million(4)) primary follow-on offering and eventual acquisition of Use of proceeds HLAG shares to reach at least a 25% stake in HLAG
Roadshow . Local roadshow
Global syndicate
______(1) Considers CLP/USD 633.32 as of October 10th, 2017 (2) If any, before or after the 6-day second subscription period (3) Subscription price of EUR 30 per share (4) Considers EURUSD 1.1786 as of September 28th, 2017
3 Timetable
October M T W T F 2 3 4 5 6 9 10 11 12 13 October 10th: beginning of CSAV’s preemptive rights period 16 17 18 19 20 (30 days) 23 24 25 26 27 October 16th: end of HLAG’s preemptive rights period 30 31
November M T W T F 1 2 3 6 7 8 9 10 November 8th: end of CSAV´s preemptive rights period 13 14 15 16 17 After rights expiration date, subject to CSAV’s board decision(1): 20 21 22 23 24 • Potential 6-day second subscription period and potential 27 28 29 30 subsequent 6-day subscription periods and/or private placement of shares on the Santiago Stock Exchange December M T W T F 1 4 5 6 7 8 11 12 13 14 15 18 19 20 21 22 25 26 27 28 29 ______(1) In a sequence to be defined by CSAV’s board as indicated in the communication to shareholders on September 29th, 2017 4 Presenters
Óscar Hasbún Martínez Tomás Tafra Rioja CEO CFO CSAV since 2011 CSAV since 2010 Member of the Supervisory Board of Hapag-Lloyd Chairman of SM SAAM S.A
______Source: CSAV
5 1 Introduction to CSAV CSAV at a glance
Financial Total assets Total liabilities Total equity figures(1) USD 1,968 m USD 157 m USD 1,811 m
Business lines
Container shipping Hapag-Lloyd + UASC figures
. CSAV’s main business line through its 22.6% share in HLAG. CSAV is the largest 2016 June 2017 shareholder in HLAG and co-controller via a 10-year shareholders’ agreement Vessel Transported volume(2) capacity(1) 10.7 TEU m . Fifth largest carrier globally, operating a fleet of 219 vessels with a capacity of 1.6 m TEU 1.6 TEU m
. Diversified and balanced network across all the main trade routes and one of the most Revenues(2) Operating vessels(1) modern, young and efficient fleets in the industry USD 10,985 m 219
. Largest member of THE Alliance, one of the three global alliances that concentrate over EBITDA(2) Employees(1) ~93% of the east-west trades’ capacity USD 769 m 12,585
Other business lines: car carrier & freight forwarder 2016 CSAV retained business
Capacity Operating vessels . Car carrier: maritime vehicle transportation using specialized vessels from Asia, Europe, 37,800 RT(3) 6 USA and South America’s east coast to South America’s west coast Revenues EBITDA . Air, sea, and land freight services and value-added solutions provided by Norgistics USD 127 m USD 7.4 m
______Source: CSAV public offering prospectus, HLAG public offering prospectus, HLAG investor presentation. (1) Consistent with HLAG investor report as of June 2017. (2) Proforma figures as of December 2016, considering full year effect of merger with UASC. (3) RT: measure unit used for car-carriers, equivalent to the size of a 1966 Toyota Corolla. 7 Shipping industry overview
New alliances
THE Alliance Ocean Alliance 2M(1)
Members
Capacity(2) 3.6 TEU m 5.7 TEU m 7.3 TEU m
Average vessel size(2) 6,417 TEU 5,401 TEU 5,642 TEU
Transpacific 27% 39% 22%
Market share(2) Atlantic 33% 15% 43% (capacity)
Far East 25% 35% 29%
Chartered-in(2) (%) 51.6% 59.3% 56.6%
Port coverage(3) 78 95 76
Services(3) 32 40 25 ______Source: HLAG public offering prospectus, IMF, HIS Global Insight, Alphaliner. (1) Number of vessels, capacity, market share and % chartered-in consider the services included in the slot purchase agreements with HMM and Hamburg Süd. (2) As of July 2017. (3) As of April 2017. 8 CSAV’s history: key milestones
Quiñenco entered the Quiñenco increased its HLAG’s IPO in Frankfurt New capital increase shipping industry by stake in CSAV to 46.0% Stock Exchange and . CSAV’s follow-on to reach acquiring a 20.6% stake in Hamburg Stock Exchange at least 25% of HLAG Follow-on to continue CSAV . CSAV reduces its stake in expanding CSAV’s own fleet HLAG to 31.4% CSAV’s restructuring plan and prepay liabilities Focus on Latin America Simplification of organizational structure 2017 Worldwide operational alliances 2015 Investments in own fleet 2014 2013 2012 2011 1872
SAAM spin-off as a CSAV-HLAG merger consequence of CSAV’s HLAG-UASC merger . CSAV became the largest restructuring plan shareholder of HLAG with a . HLAG acquired 100% of . CSAV remained in the 34% stake(1) United Arab Shipping shipping business while Company (UASC) shares in . Follow-on to complete CSAV’s Foundation SAAM continued to operate exchange for a 28.0% stake CSAV-HLAG merger in HLAG . Merger of Compañía the port and tug boat businesses Chilena de Vapores with Shareholders’ agreement . HLAG became the fifth Compañía Nacional de . Follow-on to execute the between CSAV, Kühne and largest shipping company in Vapores restructuring plan the City of Hamburg the world ______Source: CSAV annual report and CSAV public offering prospectus. (1) As a result of the merger, CSAV becomes a shareholder of HLAG with 30% stake, which increased to 34% after subscribing 70% of HLAG’s follow-on.
9 2 Key investment highlights Key investment highlights
Industry with attractive growth prospects in the Leading company in the industry midst of a solid recovery and strong consolidation
Container transport volume is expected to grow Fifth largest carrier globally with a balanced at a 5.2% CAGR for the period ’16-’18E, while presence in global routes, diversified customer ship scrapping has remained at high levels and base, and solid presence in niche businesses vessel construction rate at its lowest levels 1 2 Proven track record consolidating the industry, New alliances and recent M&A activity have achieving positive operating income and been reshaping the competitive landscape of the becoming one of the most profitable operators in industry. the 2015 – 2016 period Significant shift in the composition of the world fleet ownership
3
Positioned to capture growth opportunities while increasing profitability and cash flow
USD 435 million per annum in cost synergies from the merger with UASC coupled with an improved fleet ownership structure shall boost profitability going forward Young and efficient fleet aimed to maximize free cash flow generation and rapid deleverage
______Source: HLAG Listing prospectus (July, 2017), IMF April 2017, CSAV.
11 Industry with attractive growth prospects in the 1 midst of a solid recovery and a strong consolidation 1 2 3 Attractive growth prospects with strong fundamentals
Shipping industry key growth drivers Low vessel construction rate (as of Oct-17)
Fleet Orderbook Orderbook to Fleet Ratio Global economic growth World trading volume Container transport volume TEU th Orderbook / (1) (1) (1) Fleet 7.0% CAGR ’16-’18E: 3.5% CAGR ’16-’18E: 3.8% CAGR ’16-’18E: 5.2% 25 6.0% 80% 20 5.0% 60% 15 4.0% Orderbook to fleet ratio 40% 3.0% 10 of 13.8% as of Oct-17 2.0% 5 20% 1.0% 0.0% 0 0% 2013 2014 2015 2016 2017E 2018E 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
High ship scrapping levels Ex-bunker rates recovery since 2016
(2) (3) Worldwide ship scrapping (primary axis) Average ship age (secondary axis) SCFI -RTM Margin Rotterdam Platts SCFI Years TEU th Average 724 713 Margin 599 456 630 Q1 Q2 2015 H1 H2 700 30 USD 2016 2016 2017 2017 600 1,200 27 500 1,000 400 24 800 300 21 200 18 600 100 0 15 400
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 200
0 ______Jul 17 YTD Source: HLAG annual report, IMF July 2017, Clarkson Research, Shanghai Shipping Exchange and Platts. Jul-17 Jul-16 (1) Compound annual growth rate. Jul-15 Oct-16 Apr-17 Oct-15 Apr-16 Apr-15 Jun-17 Jun-16 Jan-17 Jun-15 Jan-16 Jan-15 Mar-17 Mar-16 Feb-17 Mar-15 Feb-16 Feb-15 Nov-16 Dec-16 Nov-15 Dec-15 Aug-16 Sep-16 Aug-15 Sep-15 Aug-17 May-17 May-16 (2) Average price of half a ton of IFO 380 bunker in Rotterdam. May-15 (3) Shanghai Containerized Freight Index. 13 1 2 3 Industry consolidation has been reshaping the competitive landscape
Consolidation wave Alliances concentrate over ~93% of the capacity on east-west trades 2013 THE Alliance 2M Carrier capacity (TEU m) Global capacity share (%) Ocean Alliance Others 44% market share 17% market share
14% 13% 8% 4% 4% 4% 4% 3% 3% 3% 3% 3% 2% 2% 2% 2% 2% 2% 2% 1% Transpacific Others THE Alliance 61% market share 12% 27% 2.5 2.3 1.5 2M 2nd 0.8 0.8 0.7 0.7 0.6 0.6 0.5 0.5 0.5 0.5 0.4 0.4 0.3 0.3 0.3 0.3 0.3 22% Ocean Maersk MSC CMA Ever COSCOHapag Hanjin APL CSCL MOL NYK Ham OOCL Yang PIL K-Line ZIM Hyundai UASC CSAV 39% CGM green Lloyd burg Sud Ming Atlantic June 2017 Others THE Alliance 9% 33% Carrier capacity (TEU m) Global capacity share (%) 65% market share 19% market share 2nd 2M 19% 15% 12% 12% 8% 7% 5% 2% 2% 2% 43% Ocean 3.8 84% market share 15% 3.0 Far East 2.3 2.3 Others THE Alliance 1.6 1.4 1.1 1% 25% 0.6 0.4 0.3 0.3
2M rd (1) (1) (1) (1) 3 Maersk MSC CMA CGM COSCO HLAG MOL(1) Evergreen Yang Ming PIL Hyundai ZIM 39% Hamburg APL CSCL OOCL CSAV NYK Sud UASC K-Line Ocean 35% ______Source: HLAG investor presentations and company reports. (1) Companies with mergers implemented or announced since 2013. 14 2 Leading company in the industry 1 2 3 Among largest global carriers with balanced presence in global routes
5th largest players in terms of capacity(1) (TEU m) More efficient routes than industry average in 2016(2)
World’s transported volume imbalance Used capacity in non dominant leg over used capacity in 3.8 dominant leg(3) 3.0 2,400 6,400 2.3 2.3 Transpacific 62% 42% 1.6 13,700 4,000 14,200 Transatlantic 62% Atlantic 65% Far East Europe- 76% 7,100 Far East Transpacific 46% HLAG Industry
Balanced presence in global routes
HLAG UASC(4) Combined entity(4)
19% 20% 11% 12% 3% 32% 18% 15% 18%
6% 32% 14%
29% 8% 3% 16% 21% 10% 6% 2% 5%
______Source: HLAG investor presentations, HLAG annual report, Drewry. (1) Transport capacity by carrier as of June 2017. (2) Number of full containers on the non-dominant leg per ten full containers on the dominant leg (the higher the rate, the lower the imbalance in the respective trade). (3) HLAG standalone, prior to merger with UASC. (4) Transport volume by trade. Allocation of UASC volume according to Hapag-Lloyd trade definition, not necessarily final.
16 1 2 3 Strong track record generating synergies, enhancing its competitive position
Strong track record successfully capitalizing synergies (USD m) Positive carrier EBIT margin compared with the industry(1)
6% (Avg. 2015 & 2016)
21% 218 180 4%
2005 Initial estimate Final realization 2%
400 0% 300 33% 2014 -2% Initial estimate Final realization Mg (%) - Significant savings in ex-bunker transport expenses (USD/TEU)(2) -4% EBIT
-6% (pro forma) (3) - 21% 1,044 -8% 928 825
-10%
-12% 0 5,000 10,000 15,000 20,000 25,000 2014 2015 2016 Revenue (USD m) ______Source: HLAG investor presentations, HLAG public offering prospectus (2015, 2017), Clarksons. (1) EBIT margin considers a 24-month period between January 2015 and December 2016. Revenue axis shows the average revenue between years 2015 and 2016 (2) Transport expenses excluding fuel related expenses (excl. expenses for raw materials and supplies). (3) 2014 figures are pro forma HLAG + CSAV (CCS). 2015 to 2016 correspond to the actual HLAG (combined) consolidated figures. 17 Positioned to capture growth opportunities while 3 increasing profitability and cash flow 1 2 3 Young and efficient fleet with no further investment needed
Average fleet age(1) (years) Fleet ownership(1) (%)
Current owned fleet Current chartered fleet
st 7.1 1 68% 32% 1st
7.5 61% 39%
7.6 52% 48%
(2) TOP 15(2) 8 TOP 15 49% 51%
8.4 44% 56%
35% 65% 8.5
Average vessel size(1)(TEU) Vessel fleet as of June 2017
Vessels Owned Chartered Current Fleet 7,110 1st > 14,000 TEU TEU 254,157 - 254,157 Vessels 15 - 15 6,168 10,000-14,000 TEU TEU 305,876 61,087 366,963 Vessels 24 6 30 8,000-10,000 TEU TEU 243,613 142,175 385,789 6,055 Vessels 28 16 44 6,000-8,000 TEU TEU 108,327 71,779 180,106 5,371 Vessels 15 11 26 4,000-6,000 TEU TEU 109,164 118,318 227,482 (2) Vessels 25 23 48 TOP 15 5,271 2,300-4,000 TEU TEU 33,800 82,930 116,730 Vessels 11 28 39 5,160 < 2,300 TEU TEU 3,918 21,868 25,786 Vessels 2 15 17 TEU 1,058,855 498,157 1,557,013 Capacity ______Vessels 120 99 219 Source: HLAG investor presentations and company report (1) Assumes that all announced mergers (NYK & MOL & K-Line; Maersk & Hamburg Süd; COSCO & OOCL) will receive regulatory approvals and are executed as announced. Simple sum of stand-alone operating capacity. (2) Weighted by carrier capacity
19 1 2 3 Cost synergies focused on generating sustainable profits
Expected synergies of USD 435 million per annum from 2019 onwards
. Optimized new vessel deployment & network Figures in USD m (From HLAG’s 118 services & UASC’s 45 services, to 129 combined services) 85 Network 435 . Efficient use of new fleet 100 . Slot cost advantages 250 . Consolidation of headquarters and country organizations Overhead . Other overhead reductions (e.g. marketing, consultancy)
. Lower container handling rates per vendor/location Other . Imbalance reduction & optimization of inland haulage Network Overhead Other Expected synergies
H1 2017 results include one-off costs estimated at USD 130 m due to consolidation and integration of UASC
Transaction & integration related one-off costs H1 2017 (USD m) Total transaction & integration related one-off costs (USD m)
73 -52 ~ 130 73 ~ 20 17 ~USD 40 m(1) Transaction & Badwill Total one-off 2016 H1 2017 H2 2017 2018 Total integration related effect H1 2017 one-off costs
. In H1 2017 first time consolidation with UASC generated a one-off . Estimated total transaction and integration related one-off costs: profit of USD 52.3 m (badwill) and restructuring costs of USD 73 m ~USD 130 m(2) . Net one-off effect on H1 2017 EBIT of ~USD 20 m
______Source: HLAG investor presentations and annual report (1) Estimated by HLAG, on top of the already accrued costs as of 30 June 2017 (2) Excluding the one-off costs UASC registered in its accounts, before closing date 20 3 Financial overview Hapag-Lloyd’s balance sheet highlights
USD m Dec-2016 Jun-2017 Assets . Total PP&E of USD 10,857 m, of which: Goodwill 1,755 1,755 . Vessels: USD 8,579 m Other intangible assets 1,416 2,195 Property plant and equipment 6,669 10,857 120 own vessels (avg. 8,824 TEU) Investments in equity-accounted investees 344 364 1,059 Th. TEU own capacity Other non current assets 84 274 Non-current assets 10,267 15,443 Book value of 8,101 USD/TEU Inventories 132 219 . Containers: USD 1,894 m Trade accounts receivable 716 1,075 Other current assets 249 427 1,532 Th. TEU own capacity Cash and cash equivalents 602 860 Book value of 1,236 USD/TEU Current assets 1,698 2,580 Total assets 11,965 18,024 . Others: USD 384 m
USD m Dec-2016 Jun-2017 Equity and liabilities Capital and reserves 1,758 3,197 . Equity ratio: 37.5% Retained earnings 3,912 3,861 Cumulative other equity -332 -305 Equity attributable to shareholders of Hapag-Lloyd AG 5,338 6,752 Non-controlling interests 4 11 Equity 5,342 6,763 Provisions for pensions and similar obligations 251 289 Other provisions 120 115 . Total financial debt of USD 8,339 m, of Financial debt 3,448 7,274 which: Other non-current liabilities 17 34 . Secured debt: USD 6,178 m Non-current liabilities 3,837 7,712 Provisions for pensions and similar obligations 7 69 Vessels: USD 4,435 m Other provisions 223 339 Container: USD 1,382 m Financial debt 967 1,065 Trade accounts payable 1,353 1,830 Others: USD 362 m Other current liabilities 237 245 . Unsecured debt: USD 2,161 m Current liabilities 2,787 3,548 Total equity and liabilities 11,965 18,024 ______Source: HLAG investor reports, HLAG investor presentations and HLAG public offering prospectus (2017).
22 Hapag-Lloyd’s P&L highlights
Operating result and net income above previous year’s level
Q1 2017 Q2 2017 H1 2017 H1 2016 YoY
TransportTransport volumevolume [TTEU][TTEU] 1,934 2,287 4,221 3,703 14%
Freight rate [USD/TEU] 1,047 1,064 1,056 1,042 1%
Bunker price [USD/t](1) 313 311 312 198 58%
Exchange rate [USD/EUR] 1.07 1.08 1.08 1.11 -3%
Revenue [USD m] 2,271 2,629 4,900 4,212 16%
EBITDA [USD m] 140 253 393 219 80%
EBITDA margin 6.2% 9.6% 8.0% 5.2% 2.8ppt
EBIT [USD m] 4 93 97 -44 n.m.
EBIT margin 0.2% 3.5% 1.9% -1.0% 3.0ppt
Group profit / loss [USD m] -66 18 -49 -158 n.m.
USD +84 m Improving USD +109 m results
______Source: HLAG investor report and HLAG investor presentation (1) Mixed bunker price (MFO / MDO)
23 CSAV’s balance sheet and income statement
USD m 2013 2014 2015 2016 Jun-17 LTM
Balance sheet Cash and cash equivalents 202 46 52 55 51 Other current assets 396 48 28 30 29 Investment in HLAG 13 1,765 1,793 1,772 1,603 Other non current assets 1,767 352 353 312 285 Total assets 2,377 2,211 2,226 2,168 1,968 Financial debt 692 176 51 94 96 Current non financial liabilities 651 133 58 55 51 Non current non financial liabilities 7 1 66 13 10 Total liabilities 1,350 311 175 162 157 Equity 1,027 1,900 2,051 2,006 1,811
Income statement Revenues 401 235 167 127 128 YoY% growth -41.3% -29.0% -23.9% EBITDA -174 757 -8 7 4 EBITDA margin -43.5% 321.7% -5.0% 5.8% 3.4% Earnings before taxes 3 748 -20(2) -4 -146(1) Net profit -168 389 -15(2) -22 -165(1) Net profit excluding dilution loss -168 389 69 -22 2 Net margin (ex. dilution loss) -41.8% 165.4% 41.3% -17.5% 1.6%
______Source: SVS, CSAV financial statements. (1) Includes USD 167 million dilution loss related to the merger between HLAG & UASC, explained in note 40 of the company’s financial statements as of 30 June 30 2017. (2) Includes USD 84 million dilution loss related to HLAG’s IPO, explained in note 15 of the company’s financial statements as of 31 December 2015. 24 4 Appendix Hapag-Lloyd’s balance sheet and income statement
USD m 2013 2014 2015 2016 Jun-17 LTM
Balance sheet Cash and cash equivalents 640 869 625 606 860 Other current assets 1,095 1,311 1,080 1,077 1,721 Non current assets 7,833 10,091 10,364 10,178 15,443 Total assets 9,568 12,271 12,068 11,861 18,024 Financial debt 4,041 4,518 4,256 4,376 8,339 Current non financial liabilities 1,243 2,169 1,949 1,805 2,483 Non current non financial liabilities 271 515 367 385 438 Total liabilities 5,555 7,203 6,572 6,566 11,261 Equity 4,013 5,068 5,497 5,295 6,763
Income statement Revenues 8,717 9,041 9,809 8,557 9,234 YoY% growth 3.7% 8.5% -12.8% EBITDA 389 131 922 646 845 EBITDA margin 5.9% 1.5% 9.4% 7.5% 9.2% Net profit -98 -803 124 -107 6 Net margin -1.5% -8.9% 1.3% -1.2% 0,1%
______Source: HLAG investor reports, HLAG financial reports.
26 Commercial strategy: customer satisfaction and exposure to niche businesses
High-quality service provider among container shipping companies Consistent diversity of goods shipped
2016 2015 Top clients attended by the Global Account Management team and visited by key account managers Food Chemical Plastic Paper and wood Mechanical engineering Raw materials Textiles Automotive parts Electronic Furniture Others
6% 6% 5% 4% Long-standing contractual arrangements with direct customers 17% 18% 5% 5% 6% 6%
7% 14% 7% 14% Well balanced customer base and diversity of goods shipped that 8% minimize effects of economic cycles 8% 11% 12% 10% 10% 11% 10%
Balanced customer portfolio Strong presence in attractive niche businesses
. As for the three months ended March 31, 2017, no customer had a Reefer . Temperature-sensitive and high value reefer cargo share of more than 4% of total revenue 65% services . Largest and state-of-the-art container fleet
. One-stop-shop service (all services the costumer needs Special in “one stop”) cargo . Fleet of special containers
9% Dangerous 26% . Specialized software and other risk mitigation measures cargo
. Certified to carry U.S. governmental cargo (5 vessels New market allowed to sail under U.S. flag) Top 25 customers Top 26-50 customers Other 14,650 customers niches . Strong position in flag-protected cabotage services(1)
______Source: HLAG investor presentations and HLAG public offering prospectus (2017) (1) Includes trade routes Chile-Brazil, intra-Chile and intra-Peru
27