cma cgm financial assessment

1. CMA CGM: a global leader in container shipping
MUSTAFA KESKİN
2010421040

2. 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.

4. FINANCIAL CONDITIONS

5. COLLATERALANALYSIS
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.

6. CMA CGM JULES VERNE : Innovation & Technology
for the Environment

7. 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.

8. 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.

11. 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.

12. FINANCIAL STATEMENT

13. CEO’s STATEMENT
Rodolphe 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.”

14. • 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.

15. • 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.

16. THANKS FOR
ATTENTION