Taylor Maritime Limited · LSE:TMI
Taylor Maritime — Taylor Maritime Investments — Q1 2022 Earnings Presentation
23 slides from Taylor Maritime's earnings presentation, Jul 28, 2022
Slide 1: Q1 FY22 Trading Update
Q1 FY22 Trading Update 28th July 2022 Strictly Private and Confidential 1
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: Key Investment Attractions
Strictly Private & Confidential Key Investment Attractions Highly cash generative, attractive asset portfolio internally managed by an experienced team, with a favourable market outlook ◼ Buoyant market dynamics with strength set to continue for 2-3 years ◼ Leading position in niche Handysize market
Slide 4: Q1 2022 Financial Year – Highlights
Strictly Private & Confidential Q1 2022 Financial Year – Highlights Robust Q1 fixing longer-term charters at attractive yields, then shorter charters in anticipation of stronger rates for remainder of year Strong Performance and track record Financial stability and sustainability Scale and Growth •
Slide 5: 2021 Financial Year Highlights
Strictly Private & Confidential 2021 Financial Year Highlights Excellent track record of compelling shareholder returns since IPO Full Year Performance and track record Optimal commercial strategy to deliver dividends Scale and Growth • Successful initial public offering on 27 May 2021, • 24% averag
Slide 6: First Quarter Market Review and Outlook / Demand
Strictly Private & Confidential First Quarter Market Review and Outlook / Demand Recent softening of rates expected to be short-term Handysize & Supramax Market Spot Rates LTM Baltic Handysize Index (BHSI) 40,000 25 2,500 2019 2020 2021 Q1 FY22 2022 12M Average 35,000 20 2,000 30,000 27,998 25,993 2
Slide 7: First Quarter Market Review and Outlook / Supply
Strictly Private & Confidential First Quarter Market Review and Outlook / Supply Scrapping – minimal in 2022, but expected to increase in 2023 Minor bulk demand (bn tonne miles) and handy fleet supply growth (dwt) • Scrapping is forecast to remain muted in calendar year Q3 and Demand supply spread 4
Slide 8: First Quarter Market Review and Outlook / Supply (continued)
Strictly Private & Confidential First Quarter Market Review and Outlook / Supply (continued) Secondhand prices strengthen and inflation hits newbuild prices • The Clarksons benchmark for a ten year old 32k dwt built Handysize has continued its rise from USD 18.5m at the start of the quarter to USD 1
Slide 9: Financial Characteristics - Portfolio Deployment
Strictly Private & Confidential Financial Characteristics - Portfolio Deployment Yields remain strong at >26% gross with a net TC rate of c.$20,650 per day Average annualized unlevered gross cash yield Average Charter Cover Avg yield: >26% Avg duration: 8 months 29% 35% 32% 57% 36% 11% 10% - 20% 20%
Slide 10: 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 11: Acquisition of stake in Grindrod Shipping – complementary investment
Strictly Private & Confidential Acquisition of stake in Grindrod Shipping – complementary investment ◼ The Company completed the acquisition of a stake in Grindrod Shipping at $18 per share in January bringing the Company’s ownership to 26.6% (including previously announced open market purchases and
Slide 12: Outlook – Market Outlook
Strictly Private & Confidential Outlook – Market Outlook Market rates expected to stabilize near-term and improve despite macro concerns, underpinned by supply side fundamentals Market Outlook Chartering Strategy • We expect strengthening into second half of calendar year • Seeing a strong upswing i
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 28 vessels, largely Japanese built (including committe
Slide 15: Appendix
Strictly Private & Confidential Appendix
Slide 16: Key Facts
Strictly Private & Confidential Key Facts Summary Structure Internally managed, Guernsey investment company London Stock Exchange listed / Premium segment USD denominated; USD and GBP share quotes Fundraisings / M&A / Market IPO $160m offering (May 2021) Cap Follow-on fundraise $75m (July
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 - Demand: Positive Outlook Driven by Minor Bulk Growth
Strictly Private & Confidential Market Dynamics - Demand: Positive Outlook Driven by Minor Bulk Growth Fundamentals remain strong with firm growth forecast for key cargoes Commentary Grain and minor bulk trade development (billion tonne miles) ◼ Demand shaped by global population growth: Fertilizer,
Slide 19: 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 20: 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 21: 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 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 from IPO to 31 March 2022 2%2% 4% 9% 6% 27% Asia Food & Agricultural 11% South America Products 10% Europe Construction Materials Share of Total 43% Regional
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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