Taylor Maritime Limited · LSE:TMI
Taylor Maritime — Q4 2023 Earnings Presentation
12 slides from Taylor Maritime's earnings presentation, Apr 26, 2024
Slide 1: Q4 FY23 Trading Update
Q4 FY23 Trading Update 26 April 2024 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: Fourth Quarter Review – Highlights
Strictly Private & Confidential Fourth Quarter Review – Highlights Improving freight rates and strengthening asset values drove NAV total return of 10.5% while seeing Debt-to-Gross Assets reduce to 23.5% Operating Performance Capital Allocation Portfolio • Unaudited NAV per share increased from $1.3
Slide 4: Fourth Quarter Review – Charter Market
Strictly Private & Confidential Fourth Quarter Review – Charter Market Trade disruption from the drought-affected Panama Canal & escalation of tensions in the Red Sea continue to positively impact tonne-mile demand Handysize & Supra/Ultramax Spot Rates LTM Geared Dry Bulk 1 year TC Rates vs Secondha
Slide 5: Fourth Quarter Review – Portfolio Deployment for the Combined Fleet
Strictly Private & Confidential Fourth Quarter Review – Portfolio Deployment for the Combined Fleet Combined Fleet Time Charter Equivalent (“TCE”) for the quarter averaged $12,430 per day Actual TCE per day at quarter end ($) Forward Coverage – CY2024 TCE Earnings: $13,484 per day 7% 9% 7% 34% 14% 3
Slide 6: TMI Debt Reduction Progress and Target
Strictly Private & Confidential TMI Debt Reduction Progress and Target TMI has repaid c.$108m of debt at the Company level since the Grindrod acquisition. Further de- gearing remains a priority with a vessel sale agreed post period and further select vessel sales planned TMI Deleveraging Progress Si
Slide 7: Cash Generation
Strictly Private & Confidential Cash Generation TCE almost at breakeven including finance costs and dividend … further market improvement would see $17m increase in cashflow for each $1k increment in TCE ◼ There is significant operating leverage in the fleet¹; each $1,000 increase in TCE generates a
Slide 8: Synergies & Integration – TMI & GRIN
Strictly Private & Confidential Synergies & Integration – TMI & GRIN Post period, Grindrod announced its proposal to implement a Selective Capital Reduction which, if successful, would result in TMI owning 100% of the shares in Grindrod The SCR would simplify our structure and pave the way for furth
Slide 9: Outlook – Demand Fundamentals
Strictly Private & Confidential Outlook – Demand Fundamentals Positive demand growth expected in 2024 for key TMI and GRIN cargoes with support from firm grain volumes and global macroeconomic improvements, although clear risks remain Commentary Grain and minor bulk trade development (billion tonne
Slide 10: Outlook – Supply Fundamentals
Strictly Private & Confidential Outlook – Supply Fundamentals Scheduled deliveries of new vessels to slow in coming years while new ordering remains constrained Geared dry bulk supply development (dwt m) Handysize and Supra/Ultramax Newbuild, Resale and Secondhand Prices 30 HS Del. 30.0% 45 61-64.5k
Slide 11: Strategic Priorities
Strictly Private & Confidential Strategic Priorities TMI maintains strong conviction in the medium-term investment opportunity set SHORT-TERM FOCUS: ◼ Further deleverage through select asset disposals to shore up balance sheet and reduce breakevens ◼ Continue to streamline TMI and Grindrod operation
Slide 12: Questions
Strictly Private & Confidential Questions Strictly Private and Confidential