Mpc Container Ships Asa · OSL:MPCC
Mpc Container Ships Asa — Capital Link Corporate Presentation Series (January 2023)
23 slides from Mpc Container Ships Asa's conference presentation, Jan 31, 2023
Slide 1: Capital Link Corporate Presentation Series
January 31, 2023 CAPITAL LINK CORPORATE PRESENTATION SERIES
Slide 2: Disclaimer
DISCLAIMER This presentation (the “Presentation”) has been prepared by MPC Container ships ASA (the “Company”) for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein. Please note that no representation or war
Slide 3: Agenda
AGENDA 1. About MPC Container Ships 2. Market Update 3. Outlook MPC Container Ships | Capital Link - Corporate Presentation Series Agenda | 3
Slide 4: Market-leading container ship company with strong financials and emphasis on shareholder returns
MARKET-LEADING CONTAINER SHIP COMPANY WITH STRONG FINANCIALS AND EMPHASIS ON SHAREHOLDER RETURNS LEADING INTRA-REGIONAL STRONG BALANCE SHEET AND CLEAR CAPITAL ALLOCATION POLICY ESTABLISHED CORPORATE SET-UP TONNAGE PROVIDER SIGNIFICANT EARNINGS BACKLOG AND INVESTMENT PRINCIPLES WITH STRONG GOVERNANCE
Slide 5: Distinct focus on intra-regional trade
DISTINCT FOCUS ON INTRA-REGIONAL TRADE FLEET EMPLOYMENT BY REGION TOP TONNAGE PROVIDER < 6K TEU 1 MANAGING OWNER TOTAL FLEET SIZE (TEUK) 1 # OF VESSELS Europe 8 Med & 65 150 Latin North Intra-Asia Africa 16 Peter Doehle 164 53 America & Caribs 4 ME & Contships 50 46 17 West SEA Africa 13 Kotoko Kaiu
Slide 6: Capital market and corporate profile
CAPITAL MARKET AND CORPORATE PROFILE Listing venue Euronext Oslo Børs/Oslo Stock Exchange SHAREHOLDER STRUCTURE 3 Ticker MPCC IPO April 2017 17.1% MPC Group & Affiliates Shares Outstanding 443,700,279 Songa Capital AS 34.1% 4.5% 1, 2 3.4% Market Cap USD ~690m (NOK ~6.8bn) Folketrygdfondet Net Debt a
Slide 7: Delivering on our distribution strategy while maintaining low leverage
DELIVERING ON OUR DISTRIBUTION STRATEGY WHILE MAINTAINING LOW LE VERAGE DIVIDEND DISTRIBUTIONS SELECTED KPIS 98% 97% 0.45 Event-driven dividend (USD/share) Recurring dividend (USD/share) 70% 74% Change compared to previous quarter 22% 18% 0.34 Utilization Equity Ratio Leverage Ratio 0.19 0.19 0.16 +
Slide 8: Track record for successful sale and purchase execution
TRACK RECORD FOR SUCCESSFUL SALE AND PURCHASE EXECUTION #3 #2 Vessels Vessels Newbuilds # of vessels 130 106m bought sold in ordered in 78m # 2 in USD m USD m USD m 144m 120 50m COMMENTS #2 110 174m I. Investments: 100 » USD ~867m for 81 vessels bought at an #7 28m # 2 average price per vessel of US
Slide 9: Agenda
AGENDA 1. About MPC Container Ships 2. Market Update 3. Outlook MPC Container Ships | Capital Link - Corporate Presentation Series | 9
Slide 10: Global economic environment affecting freight market
GLOBAL ECONOMIC ENVIRONMENT AFFECTING FREIGHT MARKET CARGO VOLUMES AND FREIGHT RATES GLOBAL ECONOMY Freight Rate Index Freight Rate Index (CCFI Comp.) TEUm Annual World Seaborne Container Trade (RHS) 4,000 300 » Russia / Ukraine war: Scarcity of energy, inflation, increasing interest rates, 3,511 de
Slide 11: Charter market & 2nd hand values down but availability of tonnage remains scarce
CHARTER MARKET & 2ND HAND VALUES DOWN BUT AVAILABILITY OF TONNAG E REMAINS SCARCE CHARTER RATES AND SECOND HAND PRICES START OF THE YEAR VESSEL AVAILABILITY HARPEX 2nd Hand Price Index million TEU 5,000 140 5.0 2nd Hand Price Index 4.37 -67% 4,500 4.5 HARPEX 120 4.02 4,000 4.0 3,500 100 3.5 3,000 -7
Slide 12: Robust mid-term outlook for regional trades
ROBUST MID-TERM OUTLOOK FOR REGIONAL TRADES 1 ORDERBOOK TO FLEET RATIO AND VESSEL AGE ACROSS SIZE SEGMENTS BENEFITS OF INTRA-REGIONAL TRADES % (OB / Fleet) 100 High OB / Fleet, » 49% of all container vessels sail on intra-regional trades Relatively Young Fleet 80 » 99% of vessels smaller 5.2k TEU 12
Slide 13: Agenda
AGENDA 1. About MPC Container Ships 2. Market Update 3. Outlook MPC Container Ships | Capital Link - Corporate Presentation Series | 13
Slide 14: Charter backlog and forward visibility as of Q3 2022
CHARTER BACKLOG AND FORWARD VISIBILITY AS OF Q3 2022 Fixed operating days and Revenue / EBITDA (consolidated vessels) 1, 2, 3 Revenue / EBITDA backlog (USD m) 7, 4 USD 1.7bn / 1.3bn Contracted forward Revenues 159 6 560 433 198 319 (USD m) 5, 7 Contracted forward TCE 31,666 6 32,152 35,276 38,871 (U
Slide 15: Strong value proposition: low risk & significant potential
STRONG VALUE PROPOSITION: LOW RISK & SIGNIFICANT POTENTIAL USD million CURRENT ENTERPRISE VALUE FULLY COVERED COMMENTS » Current Enterprise Value fully covered by contracts, EBITDA, EBITDA backlog which alone creates an excess value of USD ~532m compared to the EV » Significant Upside Potential from
Slide 16: High backlog visibility with strong counterparties as of Q3 2022
HIGH BACKLOG VISIBILITY WITH STRONG COUNTERPARTIES AS OF Q3 2022 1 TOP 40 OTHER 5% 8% 74% of revenue backlog CARGO-BACKED TOP 10 with top 20 liners2 13% 2.4 years average USD 1.7BN contract duration3 TOP 20 CONTRACTED REVENUE 8% 66% 1 Please refer to the appendix for further details MPC Container Sh
Slide 17: Closing remarks
CLOSING REMARKS SUMMARY » Leading container tonnage provider focused on intra-regional trade routes » Track record of strong operational and financial performance » Low leverage with more than 50% of fleet unencumbered » Well-positioned to capture attractive market opportunities » Robust revenue bac
Slide 18: Questions & Answers
QUESTIONS & ANSWERS non MPC Mi CONTAINER SHIPS
Slide 19: Appendix
APPENDIX MPC Container Ships | Capital Link - Corporate Presentation Series | 19
Slide 20: Q3 2022 Financials
Q3 2022 FINANCIALS BALANCE SHEET AS AT SEPTEMBER 30, 2022 PROFIT OR LOSS Q3 2022 September 30, September USDm June 30, 2022 USDm June 30, 2022 2022 30, 2022 Assets 950.9 904.0 Operating revenues 160.1 151.7 Non-current assets 784.0 781.6 Gross profit 118.7 114.8 Current assets 166.9 122.3 EBITDA 145
Slide 21: Cash flow bridge Q3 2022
CASH FLOW BRIDGE Q3 2022 CASH DEVELOPMENT Q3 2022 COMMENTS USD million +38 1) Operating cash flow including received dividend from Bluewater JV with USD +4m and proceeds from vessel sales with USD 50m -84 2) Distribution to shareholders based on recurring distribution of USD 67m and event-driven wit
Slide 22: Significant debt reduction during the next years
SIGNIFICANT DEBT REDUCTION DURING THE NEXT YEARS DEBT MATURITY 1 COMMENTS USD million MPCC Group Unencumbered vessels » Debt end of Q3 2022 at USD 175m » Good visibility on future cash flows due to high charter backlog No of vessels (cons.) 2 58 33 Book value Sep 2022 790m 326m » Significant de-leve
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