Costamare Inc. · NYSE:CMRE
Costamare — Investor Presentation (February 2020)
20 slides from Costamare's investor presentation, February 2020
Slide 1: Company Presentation February 2020
Company Presentation February 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain “forward-looking statements” (as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended). All statements, other than statements of historical facts, that address activities, events or developments that the
Slide 3: Company Information
COMPANY INFORMATION 3
Slide 4: Costamare Snapshot
Costamare Snapshot ▪ One of the largest independent owners of containerships / Fleet of 76 vessels (incl. 5 newbuilds). ▪ 46 years of experience in shipping and a dedicated containership owner since 1992. ▪ Strong track record of uninterrupted profitability. ▪ Contracted cash flows of $2.2Bn(1) from
Slide 5: Strategy
Strategy ▪ Focus on contracted cash flows of over $2Bn from strong counterparties in order to meet: ➢ Operational expenses ➢ Debt service requirements ➢ Dividend payments ➢ Excess liquidity requirements for re-investments ▪ Staggered charter maturities to capture market upside potential. ▪ Prudent d
Slide 6: Profitable Performance Throughout the Business Cycle
Profitable Performance Throughout the Business Cycle $m Index Value 600 120 500 100 400 80 300 60 200 40 100 20 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1 Adjusted 2 Revenue Containership Time Charter Rate Index Net Income Source: Clarksons Research Services, Company filings N
Slide 7: Q4 2019 Income Statement Snapshot
Q4 2019 Income Statement Snapshot Q4 2019 RESULTS Q4 2018 Q4 2019 % Change Ownership Days 5,505 5,447 (1.1%) Average Number of Vessels 59.8 59.2 (1.0%) Voyage Revenues 106,153 124,468 17.3% Net Interest and Finance Costs (*) 18,924 18,828 (0.5%) Adjusted Net Income Available to Common Stockholders(*
Slide 8: Fleet Overview
Fleet Overview ▪ Diversified fleet. ▪ Positioned to service all routes, interregional and intraregional. ▪ Investment focus on larger vessels over the past 15 years. ▪ Expertise in the efficient operation of older vessels (average age of 27 years for the 27 vessels sold since our IPO). Size TEUs Ran
Slide 9: Prudent Capital Structure
Prudent Capital Structure LEVERAGE RATIO(1) NET DEBT / ADJUSTED EBITDA(2)(3) 60% (' 000 US$) 2019 NET INCOME 98,999 55% 54% Net Interest and Finance Costs 85,658 51% Depreciation and Amortization 122,410 50% 45% 46% EBITDA 307,067 43% 45% ADJUSTED EBITDA(2) 344,419 41% 40% Total Debt and Finance Lea
Slide 10: The Containership Industry
THE CONTAINERSHIP INDUSTRY 10
Slide 11: Container Trade & Average Vessel Size Deployment
Container Trade & Average Vessel Size Deployment Container Trade has grown every year apart from 2009 ▪ Global seaborne container trade growth has averaged 5% since 2010. ▪ USA and Europe are the biggest destinations of Fronthaul Container Trade, followed by Middle East, Latin America & Africa. ▪ Th
Slide 12: Chartered Tonnage Integrated in Liners' Business Models
Chartered Tonnage Integrated in Liners’ Business Models ▪ Liners charter-in more than half of the existing fleet and 39% of the containership orderbook. ▪ Liners may rely more on chartered vessels in the future as they shift their focus to: ➢ Upgraded Logistics Services ➢ Asset light business models
Slide 13: Limited Competition Among Containership Owners
Limited Competition Among Containership Owners ▪ Top 15 owners account for: ➢ 69% of the total vessels ordered by containership owners ➢ 45% of the chartered fleet in the water ▪ Consolidation among containership owners is expected to continue in the future driven by: ➢ Financially distressed operat
Slide 14: Containership Supply / Demand Dynamics
Containership Supply / Demand Dynamics Narrowing Supply / Demand Gap in 2020… …with a Shrinking Orderbook… 8.0% 25.0% 500,000 450,000 Trade Growth / Fleet Deployment Growth 7.0% Orderbook (%of Existing Fleet) 400,000 20.0% 6.0% 350,000 300,000 5.0% TEUs 15.0% 250,000 4.0% 200,000 150,000 10.0% 3.0%
Slide 15: Two-Tier Charter Market for most part of 2019
Two-Tier Charter Market for most part of 2019 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 8,500 5,600 4,000 2,500 1,700 Source: Alphaliner– December 2019 15
Slide 16: IMO 2020 – LNG Fuel and Scrubber Watch
IMO 2020 – LNG Fuel and Scrubber Watch Ships TEU Capacity LNG Fuel Scrubber Fitted Fitted at delivery (newbuildings) 68 559,939 TEU size range Ships TEU Ships TEU Retrofit completed <2000 5 6,540 54 72,911 222 1,915,610 Retrofit in progress 2,000-5,100 4 11,000 82 281,633 86 762,994 5,100-10,000 0 0
Slide 17: IMO 2020 – Slow Steaming
IMO 2020 – Slow Steaming Sulphur cap could drive fundamental upside from reductions in speed to mitigate increased fuel costs 17 Source: Clarksons Research Services – January 2020
Slide 18: Thank You Q&A
THANK YOU Q&A 18
Slide 19: Appendix – I
Appendix – I Net Income to Adj. Net Income Available to Common Stockholders and Adj. EPS Reconciliations– EBITDA and Adjusted EBITDA Definitions Three-month period ended December 31, Note: Adjusted Net Income available to common stockholders and Adjusted Earnings per Share represent Net Income after
Slide 20: Appendix – II
Appendix – II EBITDA to Adjusted EBITDA Reconciliation for 2019 (' 000 US$) 2019 NET INCOME 98,999 Interest and Finance Costs 89,007 Interest Income (3,349) Depreciation 113,462 Amortization 8,948 EBITDA 307,067 (Gain) Loss on sale of vessels / Assets held for sale 22,122 Impairment Loss 3,042 G&A n