CMA CGM: a global leader in container shipping

MUSTAFA KESKİN2010421040

CMA CGM

• Founded in Marseille in 1978 by Jacques Saadé . • CMA CGM S.A. is a limited liability company.• CMA CGM is the third-largest container shipping

company worldwide and number 1 in France. • The company has a young and diversified fleet.

FINANCIAL CONDITIONS

COLLATERAL ANALYSIS

Since 2012 the CMA CGM Group, as a result of its strategy to constantly pursue innovation and excellence, has taken delivery of three of the largest container ships in the world in terms of capacity: the CMA CGM Marco Polo, the CMA CGM Alexander Von Humboldt and the CMA CGM Jules Verne, which sails under the French flag.

CMA CGM JULES VERNE : Innovation & Technology for the Environment

CONDITIONS ANALYSIS• Volatility in freight rates is driven by a full-focused drive

towards enhanced competitiveness by lowering unit costs through economies of scale. This is inducing carriers to deploy increasingly large vessels throughout their networks to optimise services.

• In 2013, as a result of the sluggish demand of the world’s major economies and continuous increase in the overall shipping capacity within the industry which had led to a notable mismatch between supply and demand, freight rates of main trade lanes showed no substantial recovery and continued to fluctuate at low level.

CONDITIONS ANALYSIS• The two significant spot freight rate hikes on the

Shanghai to Europe trade lane during the second half of 2013 proved the point that balancing deployed tonnage to demand can bring sustainable earnings around – at least for a short while.

COVENANTS • Maximum gearing ratio (Adjusted net debt /

Adjusted equity); • Loan-to-value ratio (financing / market value of

related asset); • Minimum cash balance; • Maximum long-term chartering commitments; • Maximum capital expenditures.

FINANCIAL STATEMENT

CEO’s STATEMENTRodolphe Saadé, CMA CGM Group Executive Officer, said:

“In 2013, in a difficult market, we successfully reduced our costs while increasing our volumes carried much faster than the market, enabling us to report one of the industry’s best financial performances. In this way, year after year, we arereinforcing our position as the world’s third largest container shipping company. With these solid fundamentals and the pioneering spirit that has always been our strength, we are committed in 2014 to maintaining our profitability and driving faster growth.”

• CMA CGM has strengthened its financial statement despite the difficult market conditions.

• The company has achieved maintaining profitability and driving faster growth.

• Operating expenses and the other costs reduced against previous year.

• Moody’s ( rating agency) upgraded CMA CGM to B2 for Moody’s and to B (positive outlook) for S&P.

• CMA CGM was once again recognized as a container shipping partner of choice with more than 20 distinctions awarded in 2013.

• Despite the drop in the freight rates, company's revenue remains stable.

• There is a sharp drop in current liabilities so it provides the company lower debt and strengthened cash position.

• We can see a sharp rise in net profit that is 22,8%. • Despite the drop in freight rates and economic crisis

(financial and political such as oil prices), CMA CGM maintain its strength financial statement by leasing working with Global Ship Lease Company.

• Thereby the company reduced the costs and take advantage in cash position against its competitors.

THANKS FOR ATTENTION