Mpc Container Ships Asa · OSL:MPCC

Mpc Container Ships Asa — Pareto Securities' Nordic Corporate Bond Conference 2021

33 slides from Mpc Container Ships Asa's conference presentation, Mar 18, 2021

  1. Slide 1: Company Update | Pareto Securities' Nordic Corporate Bond Conference

    Company Update | Pareto Securities' Nordic Corporate Bond Conference 18 March 2021

  2. Slide 2: Disclaimer

    DISCLAIMER THIS PRESENTATION (THE “PRESENTATION”) HAS BEEN PREPARED BY MPC CONTAINER SHIPS ASA (THE “COMPANY”, TOGETHER WITH ITS SUBSIDIARIES THE “GROUP”) AND SUBSIDIARY/BOND ISSUER MPC CONTAINER SHIPS INVEST B.V. (THE “BOND ISSUER”) FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO

  3. Slide 3: Content

    Company Update | Pareto Securities' Nordic Corporate Bond Conference CONTENT 1. Company Introduction and Highlights 2. Market Update 3. Company Outlook 4. Appendix 3

  4. Slide 4: MPC Container Ships at a Glance

    Company Introduction and Highlights MPC CONTAINER SHIPS AT A GLANCE Leading intra-regional container tonnage provider offering flexible fleet, DEDICATED TONNAGE PROVIDER reliable, safe and efficient vessel operations and strong industry network #1 65 tonnage provider for vessels intra-regional trade

  5. Slide 5: Fleet Geared Towards Attractive Intra-Regional Trades

    Company Introduction and Highlights FLEET GEARED TOWARDS ATTRACTIVE INTRA-REGIONAL TRADES FLEET SUMMARY DISTRIBUTION BY SIZE CLUSTER 2 1,000 TEU 1 14 18 1,300 TEU 65 133,629 TEU ~2,000 TEU 14 years 1,500 TEU vessels total carrying average average age 65 1,700 TEU capacity carrying 6 2,200/2,500 TEU

  6. Slide 6: Highlights YTD 2021

    Company Introduction and Highlights HIGHLIGHTS YTD 2021 Further improved sustainability reporting in accordance with SASB, GRI and NSA requirements  Second annual ESG Report due ultimo March 2021 Collectively tackling crew change crisis arising from COVID-19 Corporate &  Signed Global Maritime For

  7. Slide 7: Current Financing Structure

    Company Introduction and Highlights CURRENT FINANCING STRUCTURE CAPITALIZATION (1) DEBT STRUCTURE MATURITY PROFILE (USDm) (2) Group (stock ticker “MPCC”) 31.12.2020 Bond Beal Bank term loan Maturity: Q1 ‘23 Maturity: Q2 ‘23 Cash balance USD 39.3m No. of vessels: 36 No. of vessels: 11 Parent guarante

  8. Slide 8: Favorable Development in Fleet Values Improves Credit Metrics

    Company Introduction and Highlights FAVORABLE DEVELOPMENT IN FLEET VALUES IMPROVES CREDIT METRICS GROUP AS PER 31 DECEMBER 2020 (1) COMMENT In USDm  Leverage: 41% (5)  Equity ratio: 57% Indicative fleet value (2) 553 VesselsValue March 2021  Gross Loan-to-Value (“LTV”): 51% (6) NIBD (3) 243  Net

  9. Slide 9: Content

    Company Update | Pareto Securities' Nordic Corporate Bond Conference CONTENT 1. Company Introduction and Highlights 2. Market Update 3. Company Outlook 4. Appendix 9

  10. Slide 10: Strongest Market Momentum and Fundamentals in a Decade

    Market Update: Overview STRONGEST MARKET MOMENTUM AND FUNDAMENTALS IN A DECADE Jan. 2017 Jan. 2018 Jan. 2019 Jan. 2020 Feb. 2021 Comment Freight rates (SCFI) 968 817 941 1,023 2,876 10-year high Charter rates (Clarksons TC Rate Index) 38 54 50 61 108 10-year high Idle vessels (#) 351 99 195 253 80 5

  11. Slide 11: Strong Market Developments and Liner Profitability

    Market Update: Short-Term Dynamics (Time-Charter Rates and Idle Statistics) STRONG MARKET DEVELOPMENTS AND LINER PROFITABILITY FREIGHT RATES DEVELOPMENT LINER PROFITABILITY 2020 VS. 2019 (EBITDA) Freight Rate Index Maersk +44% 3,000 SCFI Comprehensive 2,876 2,500 CMA CGM +41% 2,000 1,500 Hapag-Lloyd

  12. Slide 12: High Charter Rates and Low Idle Number

    Market Update: Short-Term Dynamics (Time-Charter Rates and Idle Statistics) HIGH CHARTER RATES AND LOW IDLE NUMBER TIME-CHARTER RATE INDEX TIME-CHARTER RATES DEVELOPMENT Index USDk / day 1k TEU grd 1.7k TEU grd 2.8k TEU 3.5k TEU 108 110 30 5 Mar. (yoy%) 100 25 25.0 (170%) 90 22.3 (134%) 20 80 70 15

  13. Slide 13: Longer Periods and Smaller Redelivery Window Decreased Risk Exposure

    Market Update: Mid-Term Momentum LONGER PERIODS AND SMALLER REDELIVERY WINDOW DECREASED RISK EXPOSURE TIME-CHARTER RATE MOMENTUM (1-5.1k TEU) AVG. PERIOD AND REDELIVERY SPREAD (1-5.1k TEU) TC Rate Index Months Period Redelivery spread 300 12 11.9 10 250 8 200 6 3.9 150 4 3.6 2 100 1.5 0 0 Jan- Jan-

  14. Slide 14: Small Order Book, Improved Secondhand Market

    Market Update: Long-Term Fundamentals SMALL ORDER BOOK (MAINLY LARGE VESSELS), IMPROVED SECONDHAND MARKET ORDER BOOK DEVELOPMENT TEU ON ORDER PER SEGMENT (DEC. 2020) TEUm % TEUk Total fleet Orderbook-to-Fleet Ratio (rhs) 1,463 23.710 25 Orderbook 40 1,600 (42%) 35 1,400 20 30 1,200 15 25 1,000 20 80

  15. Slide 15: Content

    Company Update | Pareto Securities' Nordic Corporate Bond Conference CONTENT 1. Company Introduction and Highlights 2. Market Update 3. Company Outlook 4. Appendix 15

  16. Slide 16: Recent MPCC Performance vs. Market

    Company Outlook RECENT MPCC PERFORMANCE VS. MARKET COMM. IDLE TIMES: MPCC OUTPERFORMS MARKET (1) RATES: MPCC RATES VS. LAST DONE (3) Better Same Worse Clarksons TC Rate Index Idle days market (2) Idle days MPCC No. of fixtures Index 14% 13% 30 110 11% 11% 12% 11% 20 100 10% 10% 20 29 10% 10 13 16 90

  17. Slide 17: Operating Days & Fixed Revenue

    Company Outlook OPERATING DAYS & FIXED REVENUE (1) FIXED OPERATING DAYS (CONSOLIDATED VESSELS) COMMENTS Operating days (open) Operating days (fixed) Consolidated vessels ~1%  Assumed available days of 20,621 (2021) (2) and 20,440 (2022) ~13% ~26%  Fixed charter revenues USD ~166m (2021) and USD ~5

  18. Slide 18: Benefitting from Favourable Fundamentals

    Company Outlook BENEFITTING FROM FAVOURABLE FUNDAMENTALS  Largest container tonnage provider for intra-regional trades globally with strong industry network and flexible fleet to benefit from shifting trading pattern (e.g. regionalization, nearshoring)  Strong operational track record and governan

  19. Slide 19: Content

    Company Update | Pareto Securities' Nordic Corporate Bond Conference CONTENT 1. Company Introduction and Highlights 2. Market Update 3. Company Outlook 4. Appendix 19

  20. Slide 20: Container Shipping Dynamics

    Appendix CONTAINER SHIPPING DYNAMICS MPC CONTAINER SHIPS IS A TONNAGE PROVIDER… …CHARTERING OUT VESSELS TO LINER OPERATORS  Charters out owned vessels to global liner companies / regional carriers  Operate regularly scheduled services to transport container boxes  Makes available vessel and crew,

  21. Slide 21: Group Q4 2020 Financials (Unaudited)

    Appendix GROUP Q4 2020 FINANCIALS (UNAUDITED) BALANCE SHEET AS PER 31 DEC. 2020 PROFIT & LOSS Q4 2020 USDm 31.12.2020 30.09.2020 USDm Q4 2020 Q3 2020 Assets 678.1 702.1 Operating revenues 45.6 41.2 Non-current assets 621.0 628.7 Gross profit 7.9 5.0 Current assets 57.1 73.3 EBITDA 4.5 2.7 thereof ca

  22. Slide 22: Bond Issuer Q4 2020 Financials (Unaudited)

    Appendix BOND ISSUER Q4 2020 FINANCIALS (UNAUDITED) BALANCE SHEET AS PER 31 DEC. 2020 PROFIT & LOSS Q4 2020 USDm 31.12.2020 30.09.2020 USDm Q4 2020 Q3 2020 Assets 390.6 413.9 Operating revenues 29.4 26.1 Non-current assets 367.5 375.9 Gross profit 4.3 2.5 Current assets 23.0 38.0 Operating result (E

  23. Slide 23: Current Financing Structure

    Appendix CURRENT FINANCING STRUCTURE DEBT FACILITIES STRUCTURED IN FOUR SEPARATE AND RING-FENCED SILOS (1) MPC Container Ships ASA (“Parent”) OVB loan USD 6m Asset value USD 11m, LTV ~ 54.5% 100% 100% 100% 50% 1 2 3 4 Bluewater Holding MPC Container Ships MPCC Second Financing MPCC First Financing S

  24. Slide 24: Proven Access to Capital

    Appendix PROVEN ACCESS TO CAPITAL USDm Listing FY 2017 FY 2018 FY 2019 FY 2020 venue 800 32 14 750 29 50 700 50 650 600 75 550 100 500 450 400 175 350 300 250 100 200 150 75 100 100 50 0 Equity Equity Sr. secured Equity Sr. secured Equity Sr. secured Equity RCF Equity Equity raise #1 raise #2 bond i

  25. Slide 25: Independent Board with Significant Equity Interest

    Appendix INDEPENDENT BOARD WITH SIGNIFICANT EQUITY INTEREST BOARD OF DIRECTORS MANAGEMENT  Executive board member of MPC Capital AG  Managing director of MPC Holding  Previously at Hamburg Süd, Ernst & Young Constantin Baack Dr. Axel Schroeder  Founder of MPC Capital AG and CEO and various posit

  26. Slide 26: ESG at MPC Container Ships

    Company Introduction and Highlights ESG AT MPC CONTAINER SHIPS ENVIRONMENTAL COMMITMENT • Significant investments in exhaust gas cleaning and ballast water management systems • Continuously optimise vessel operations and minimise environmental impact of our business by exploring viable options for e

  27. Slide 27: Bond & Share Trading Activity

    Appendix BOND & SHARE TRADING ACTIVITY BONDS: LATEST PUBLISHED TRADES Ticker MPCBV01 Date Volume (USD) Pricing Segment Oslo Stock Exchange 09.02.2021 10.41m 100.125 ISIN NO0010805872 04.02.2021 4.25m 100.125 Trading currency USD 04.02.2021 6.25m 100.000 Bonds outstanding USD 204.1m 02.02.2021 5.00m

  28. Slide 28: Fleet Employment by Financing Silo (1/4)

    Appendix FLEET EMPLOYMENT BY FINANCING SILO (1/4) MPC CONTAINER SHIPS INVEST B.V. (BOND ISSUER) (1/2) Period Period Clarksons Rate Charter Rate Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Post Mar-22 No. Vessel Cluster Trade Charterer Min. Max. (USD/day) (1) (USD/day) 2021 2021 2

  29. Slide 29: Fleet Employment by Financing Silo (2/4)

    Appendix FLEET EMPLOYMENT BY FINANCING SILO (2/4) MPC CONTAINER SHIPS INVEST B.V. (BOND ISSUER) (2/2) Period Period Clarksons Rate Charter Rate Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Post Mar-22 No. Vessel Cluster Trade Charterer Min. Max. (USD/day) (1) (USD/day) 2021 2021 2

  30. Slide 30: Fleet Employment by Financing Silo (3/4)

    Appendix FLEET EMPLOYMENT BY FINANCING SILO (3/4) MPCC FIRST FINANCING GmbH & Co. KG (BEAL BANK) Period Period Clarksons Rate Charter Rate Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Post Mar-22 No. Vessel Cluster Trade Charterer Min. Max. (USD/day) (1) (USD/day) 2021 2021 2021 2

  31. Slide 31: Fleet Employment by Financing Silo (4/4)

    Appendix FLEET EMPLOYMENT BY FINANCING SILO (4/4) BLUEWATER HOLDING SCHIFFFAHRTSGESELLSCHAFT GmbH & Co. KG (JV) Period Period Clarksons Rate Charter Rate Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Post Mar-22 No. Vessel Cluster Trade Charterer Min. Max. (USD/day) (1) (USD/day) 2

  32. Slide 32: Significantly Improved Trade Volumes, Freight Rates and Charter Rates

    Appendix SIGNIFICANTLY IMPROVED TRADE VOLUMES, FREIGHT RATES AND CHARTER RATES GLOBAL TEU VOLUMES TRADED KEY BOX SHIPPING RATE INDICES TEUm Freight Rate Index Time-Charter Rate Index 15.5 15.3 3,000 108 110 15.2 Freight Rate Index (SCFI Comprehensive) 15.1 105 15.0 14.8 14.9 Time-Charter Rate Index

  33. Slide 33: Intra-Regional Trades an Integral Part of Seaborne Trading

    Appendix INTRA-REGIONAL TRADES AN INTEGRAL PART OF SEABORNE TRADING TOP 10 FEEDER + INTERMEDIARY OWNERS (< 5,999 TEU) (1) INTRA-REGIONAL TRADES Rank Managing owner On-the-water vessels Total fleet size (TEUk) 1 Maersk 161 585 52% 2 MSC 130 409 3 COSCO 129 573 of the total no. of container vessels 4

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