CMA CGM Group - Despite deteriorated context, Q1 results are extremely solid : Chairman & CEO

• Further normalizaon of the transport market.

• Revenue and net income down in line with Q4 2022.

• Strong balance sheet allowing to sustain market tensions with confidence.

MARSEILLE: The Board of Directors of the CMA CGM Group, a Global player in sea, land, air and logistics solutions, met under the chairmanship of Rodolphe Saadé, Chairman and Chief Executive Officer, to review the financial statements for the first quarterof2023.

Commenting on the results for the period, Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, said: "After two exceptional years, our industry has entered a phase of normalization due to the slowdown in global growth, inflation and a destocking phenomenon that is continuinginmanypartsoftheworld.

Despite this deteriorated context, our first-quarter results are extremely solid. They are the fruit of our investments-morethanUSD30billioncommittedover the past two years - which enable us to constantly broaden and strengthen our range of transport and logisticssolutionsforourcustomers.”

• inventory adjustments in these regions continued, weighingonimports,especiallyfromAsia,particularly intheretailandlifestylesectors.

• the relatively brisk activity in regions such as Latin America and Africa, together with eased congestion, were insufficient to offset the decline on themainEast-Westroutes.

Logistics

Thefourth-quarterof2022’strendsremainedinplay in the first-quarter of 2023, with challenging market conditions in the transport and logistics industry. Freight demand continued to slow, spurring a rapid normalizationofspotfreightrates.

RevenuestoodatUSD12.7billioninthefirstquarter of2023,drivenmostlybytheGroup’smaritimeshipping business. EBITDA came to USD 3.4 billion, representinga61.3%decreaseandanEBITDAmargin of27%,down21.7points.

Net income, Group share amounted to USD2.0billion.Financialresourcesnetofdebttotalled USD 6.2 billion on March 31, 2023, up USD 1.5 billion fromDecember31,2022.

Shipping

Consolidated revenue from maritime shipping operations amounted to USD 8.9 billion, down 40.3% from first-quarter 2022. EBITDA totalled USD 3,0 billion, 64.3% lower than in first-quarter 2022. EBITDA margin came in at 34.4%, down 23.1 points. Average revenue per TEU amounted to USD 1,766, down37%fromfirst-quarter2022.

In all, 5.0 million TEUs were carried in the first quarter of 2023, down 5.3% from the prior-year period. Thisdeclineinthefirstquarterof2023isattributableto severalfactors:

• household consumption of goods in Europe and North America has fallen sharply amid i) price inflation and ii) a rebound in consumer spending on services,especiallytourism,leisure,etc.

Revenue from logistics operations totalled USD3.9billioninthefirst-quarteroftheyear.

EBITDA stood at USD 343 million, a 36.9% increase on first-quarter2022.

This growth in activity reflects the inclusion of the acquisitions of Ingram CLS, Gefco and Colis Privé in the scope of consolidation as from the second-quarter of 2022, while the sea and air freight activities were simultaneously returning to normal in line with market dynamics. The various acquisitions have strengthened CMA CGM's offering of end-to-end supply chain services foritscustomers.

In the first-quarter of 2023, the CMA CGM Group also signed an agreement with La Poste group to establish a closerbusinessrelationshipcapitalizingontheirrespective expertiseinparceldelivery,transportationandstorage.

Otheractivities

Revenue from other activities (port terminals, CMA CGM Air Cargo, media etc.) increased by 5.3% to USD 405 million. EBITDA came in at USD45 million, down 47%, in particular reflecting the easing of port congestion.

Outlook

Macroeconomic and geopolitical uncertainty, tensions inthesupply–demandbalanceasnewcapacityarriveson themarket

Second-half 2022 trends continued to prevail in 2023, with deteriorated conditions in the transport and logistics industry.

Macroeconomic forecasts for 2023 anticipate moderate global GDP growth over the year, in light of inflationary pressure which is dragging down consumer spending in OECD countries. However, this may stabilize later in the year. Nevertheless, new capacity delivered overthecomingquartersisexpectedtocontinueweighing onfreightratesincontainershipping.

In this environment, the first quarter is expected to be thebestquarteroftheyearastheGroup'sfinancialresults continuetoreturntonormal.TheGroupisconfidentinits ability to weather the cycle thanks to its combined transportandlogisticsstrategyanditsfinancialstrength.

The Group will also continue to integrate its recent acquisitionswhilekeepingoperatingcostsundercontrol.