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CMA CGM reports strong financial Q3 performance 19 November 2021

Strong improvement in logistics driven by the transformation of CEVA Logistics

The Board of Directors of the CMA CGM Group has reviewed the financial statements for the third quarter of 2021.  The Company delivered very good financial results, enabling it to continue its development and accelerate transformation.

In an unprecedented context of strong tensions in global supply chains, the priority remains to support customers with a complete range of solutions addressing their increased needs for shipping and logistics.

In response to strong pressure on supply chains and to support the growth of the transport market in the coming years, the Group has continued with its investments to strengthen its shipping, port and air freight logistics network. These investments will allow CMA CGM to provide comprehensive solutions and improve the quality of service in order to optimise its strategic development for the years to come while also pursuing its actions to promote the energy transition. With this ambitious investment programme, the Group aims to build supply chains to serve the global economy.

During Q3, the Group's consolidated revenue reached US$15.3 billion, representing an 89.4% increase compared with Q3, 2020. This performance was mainly driven by the Group's shipping activities. EBITDA came in at US$7.1 billion, representing an EBITDA margin of 46.4% (a 25.4 point increase compared with Q3, 2020). Net income, Group share was US$5.6 billion.

The Group continued to strengthen its financial structure. Net debt stood at US$11.9 billion on 30 September 2021, down US$4.9 billion from 31 December 2020. Just after the close of the quarter, on 15 October 2021, the Group redeemed its bond maturing in 2025 for an amount of €750.0 million.

During Q3 2021, the Group transported 5.5 million TEUs. This represented a 2.5% decrease compared with Q3, 2020 when global trade rebounded markedly following the end of Covid-related lockdowns in Western countries. Growth in volumes is currently constrained by congestions affecting port terminals and inland infrastructures, leading to longer transit times for vessels. The Group's shipping revenue reached US$12.5 billion, representing a 101.0% increase compared with the same period in 2020. EBITDA for shipping was US$6.8 billion. The EBITDA margin reached 54.4%, a 30-point increase compared with Q3, 2020, driven by average revenue per TEU of US$2,293 and despite higher operating expenses (notably bunkers, vessel chartering costs, port handling).

Logistics revenue reached US$2.9 billion, representing a 55.0% increase compared Q3, 2020. This performance was driven by freight management services, and in particular the Ocean segment in what was a favourable market backdrop, as well as, to a lesser extent, the continued turnaround in contract logistics activities which had been negatively impacted by lockdown measures relating to the Covid-19 pandemic in 2020. EBITDA was up 63.0% at US$274.0 million.

Looking ahead, the pressure on effective shipping capacity for consumer goods observed since the summer of 2020 is expected to persist until at least the first half of 2022. The Group will continue to invest in strengthening and upgrading its shipping and logistics network while bolstering its financial structure. The current context is thus likely to enable the Group to achieve an even stronger financial performance during the fourth quarter.