Taylor Maritime Limited · LSE:TMI
Taylor Maritime — Taylor Maritime Investments — Q2 FY22 Earnings Presentation
23 slides from Taylor Maritime's earnings presentation, Oct 27, 2022
Slide 1: Q2 FY22 Trading Update
Q2 FY22 Trading Update 27th October 2022 Strictly Private and Confidential
Slide 2: Disclaimer
Strictly Private & Confidential Disclaimer Important disclosures - NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES (SAVE AS PROVIDED HEREIN), AUSTRALIA, SOUTH AFRICA, CANADA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLA
Slide 3: Q2 2022 Financial Year – Highlights
Strictly Private & Confidential Q2 2022 Financial Year – Highlights Solid performance in Q2 despite seasonal weakness combining with a poor grain season and port decongestion releasing previously constrained supply Strong Performance and track record Financial stability and sustainability Scale and
Slide 4: Second Quarter Market Review – Charter Market
Strictly Private & Confidential Second Quarter Market Review – Charter Market Vessel earnings have remained above historic averages despite recent softening of rates Handysize & Supramax Market Spot Rates LTM Baltic Handysize Index (BHSI) 40,000 2,500 Q2 FY22 2019 2020 Q2 FY22 35,000 2021 2022 12M A
Slide 5: Second Quarter Market Review – Vessel Valuations/S&P
Strictly Private & Confidential Second Quarter Market Review – Vessel Valuations/S&P Secondhand prices impacted by softer charter rate environment and typical seasonal weakness but still above long-term average • The Clarksons benchmark for a ten-year-old 32k dwt built Handysize had fallen from USD
Slide 6: Second Quarter Market Review – Outlook / Supply
Strictly Private & Confidential Second Quarter Market Review – Outlook / Supply Scrapping – minimal in 2022, but expected to increase in 2023 • Scrapping set to remain muted for the rest of 2022 with relatively high freight rates countering rising scrapping prices. However, with an ageing global Han
Slide 7: Second Quarter Market Review – Outlook / Demand
Strictly Private & Confidential Second Quarter Market Review – Outlook / Demand Overall Dry Bulk – A steady year despite economic headwinds ▪ Global GDP growth, as forecast by the IMF, has been revised down since the previous update from 3.6% to 3.2% in 2022, and from 3.6% to 2.7% in 2023. Global re
Slide 8: Financial Characteristics - Portfolio Deployment
Strictly Private & Confidential Financial Characteristics - Portfolio Deployment Yields remain strong at c.24% gross with a net TC rate of c.$17,670 per day Average annualized unlevered gross cash yield Average Charter Cover Avg yield: c.24% Avg duration: 6 months 12% 18% 34% 31% 23% 60% 23% Less th
Slide 9: Outlook – Market Outlook
Strictly Private & Confidential Outlook – Market Outlook Market rates have begun to stabilize near-term despite macro concerns, underpinned by supply side fundamentals Market Outlook Chartering Strategy • We expect the market to remain steady for the remainder of calendar year • Potential uplift in
Slide 10: First Biofuel Trial & Release of First Standalone ESG Report
Strictly Private & Confidential First Biofuel Trial & Release of First Standalone ESG Report Q2 Biofuel Trial Publication of First Standalone ESG Report • Use of biofuel onboard is one of the interim steps identified by TMI • TMI has released its first standalone ESG report outlining Group ESG in ac
Slide 11: Grindrod Shipping Acquisition
Strictly Private & Confidential Grindrod Shipping Acquisition TMI announced a firm offer to acquire up to 100% of Grindrod Shipping ◼ This is the logical next step in our plan to take control of Grindrod Shipping, affording TMI significant benefits Strategic ◼ The Enlarged Group will have increased
Slide 12: Grindrod Shipping Acquisition – Sources of Funding
Strictly Private & Confidential Grindrod Shipping Acquisition – Sources of Funding TMI will fund the transaction from a combination of cash on the balance sheet and an Acquisition Facility. At the minimum threshold for the transaction to succeed, TMI does not need to draw additional financing. At 10
Slide 13: Strategic Priorities
Strictly Private & Confidential Strategic Priorities ◼ Continue to focus on high quality primarily second-hand, predominantly Japanese vessels acquired at discount to long-term average prices and depreciated replacement cost ◼ Maintain strategic balance of short, medium and long-term charters that i
Slide 14: Summary
Strictly Private & Confidential Summary Highly cash generative, attractive asset portfolio internally managed by an experienced team, with a favourable market outlook 1 Leading position in niche Handysize market 2 High quality asset portfolio of 27 vessels, Japanese built (including committed vessel
Slide 15: Appendix
Strictly Private & Confidential Appendix
Slide 16: Taylor Maritime Investments Overview
Strictly Private & Confidential Taylor Maritime Investments Overview LON:TMI Structure Internally managed, Guernsey investment company London Stock Exchange listed / Premium segment USD denominated; USD and GBP share quotes Fundraisings / M&A / IPO $160m offering (May 2021) Market Cap Foll
Slide 17: Operating Market - Global Shipping
Strictly Private & Confidential Operating Market - Global Shipping ◼ Accounts for 90% of global goods transport ◼ The lowest carbon intensity and cost-effective mode of transporting bulk goods given commodity volumes and distances to be covered; proactive stance from sector participants for decarbon
Slide 18: Market Dynamics – Supply: Growth Curbed, Ageing Fleet and Regulatory Pressure
Strictly Private & Confidential Market Dynamics – Supply: Growth Curbed, Ageing Fleet and Regulatory Pressure Historically low order book and rare level of extended visibility of the orderbook to 2024 due to yards being full Order book as multiple of scrap pool (vessels >20 years old) Order book (as
Slide 19: Operating Market - The Geared Shipping Sector
Strictly Private & Confidential Operating Market - The Geared Shipping Sector The workhorses of the shipping sector, geared vessels are differentiated by their versatility, flexibility and port accessibility Dry Bulk Ship Type Principal Cargoes Trade Routes Financial implications More Minor Bulks Ve
Slide 20: ESG - Committed to Initiatives to Integrate ESG Principles
Strictly Private & Confidential ESG - Committed to Initiatives to Integrate ESG Principles TMI is committed to achieving a long-term target of net zero emissions by 2050 and to cross-industry efforts to achieve that target; signatory to the Getting to Zero Coalition’s ‘Call to Action for Shipping De
Slide 21: TMI ESG priorities and recent initiatives
Strictly Private & Confidential TMI ESG priorities and recent initiatives TMI is committed to achieving a long-term target of net zero emissions by 2050 TMI ESG PRIORITIES Responsible Climate change and Community and Onshore and at Compliance and Strong Corporate Investment Environmental Employee Se
Slide 22: Diversified shipping routes and versatile port accessibility
Strictly Private & Confidential Diversified shipping routes and versatile port accessibility TMI vessels called a total of 337 different ports in the 2021 Financial Year 2%2% 4% 9% 6% 27% Asia Food & Agricultural 11% South America Products 10% Europe Construction Materials Share of Total 43% Regiona
Slide 23: Our Current Fleet
Strictly Private & Confidential Our Current Fleet Country Country No. Type DWT Year Built Age No. Type DWT Year Built Age of build of build 1 Supramax* 58,700 2012 10 Japan 19 Handysize 32,200 2008 14 Japan 2 Handysize 38,500 2011 11 Japan 20 Handysize 32,100 2012 10 Japan 3 Handysize 38,200 2012 10
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