Heidmar Maritime Holdings Corp. · NASDAQ:HMR
Heidmar Maritime — Heidmar — SPAC Merger (July 2023)
43 slides from Heidmar Maritime's SPAC merger presentation, July 2023
Slide 1: Investor Presentation
INVESTOR PRESENTATION July 2023 / Confidential
Slide 2: Disclaimer
Disclaimer About this Presentation This confidential presentation (this “Presentation”) is for informational purposes only to assist interested parties in making their own evaluation with respect to an investment in connection with a possible transaction (the “Business Combination”) involving Heidma
Slide 3: Disclaimer (Cont'd)
Disclaimer (Cont’d) Use of Projections This Presentation contains financial forecasts for the Company with respect to certain financial results for the Company’s fiscal year 2023. The Company’s independent auditors have not audited, studied, reviewed, compiled or performed any procedures with respec
Slide 4: Table of Contents
Table of Contents Transaction Summary 5 Heidmar Business Overview and Growth Potential 8 Market Update 22 Financial Summary 26 Valuation Overview 29 Appendix 38 4
Slide 5: Transaction Summary
ee 2 \ a mx 5 Pee as eae —a aa ze ge i == = — TRANSACTION SUMMARY HEIDMAR
Slide 6: Transaction overview: Today's Presenters
Transaction overview Today’s Presenters Dan Ciporin Pankaj Khanna Chairman & CEO Chief Executive Officer ◼ Over 30 years of experience as an executive, investor ◼ More than 3 decades of experience in maritime and board member of public and private companies transportation, asset owning, and service
Slide 7: Transaction overview (cont'd)
Transaction overview (cont’d) Transaction Summary Transaction Valuation ◼ Home Plate Acquisition Corp. (“HPLT”) intends to merge with Heidmar Inc. at an initial Valuation Summary ($mm unless otherwise stated) purchase price of $160.0mm in shares of HPLT Stock Price at Issue ($) $10.00 ◼ Heidmar Pro
Slide 8: Heidmar Business Overview and Growth Potential
HEIDMAR BUSINESS OVERVIEW AND GROWTH POTENTIAL
Slide 9: Heidmar today
Heidmar today A first-class commercial management and pool management business servicing the crude and product tanker market Rapid growth ~40 Years of Experience in Vessel Pooling ◼ Significant growth since 2020 when current management took over, with revenues increasing from ~$5 million in 2021A to
Slide 10: Next phase of Heidmar
Next phase of Heidmar A full-service vessel manager providing commercial, technical, and sale & purchase services across multiple vessel classes “One-stop” solution for tankers & dry bulk ◼ Single platform aggregator of maritime services for tanker and dry bulk industry 82 2023E(1) Vessels Under Man
Slide 11: Asset-Light Business Model
Business overview Asset-Light Business Model Expansion to Commercial Manager Charterer Providing Other Services Pool Commercial Time Charter Technical Shipbroking Management Management Trading Management One-to-Many One-to-One Commercial/Pool One-to-One Bi-Lateral Service Service Service Management
Slide 12: Heidmar's pool management business
Heidmar’s pool management business Heidmar currently manages 37 vessels(1)(2) spread across 5 pools Co-operative economic partnerships among vessel owners supports revenue optimization, strong cargo ⚫ Established in 2022 ⚫ Established in 2007 ⚫ Established in 2021 base and counterparty ⚫ VLCC vessel
Slide 13: Heidmar's commercial management business
Heidmar’s commercial management business 22 vessels(1)(2) under Heidmar’s commercial management offering Service Offering First-class commercial management services to owners in a Vessels Under non-pool capacity Vessel Size DWT Range Vessel Owners Management(1)(2) Provides chartering, operations, bu
Slide 14: Heidmar's time charter trading business
Heidmar’s time charter trading business Heidmar Time Charter Strategy Overview Illustrative Case ⚫ Heidmar’s prominent position in the commercial market also ⚫ Heidmar to charter in the open market a vessel from a shipowner on a 1- allows it to identify favorable conditions or inefficiencies in year
Slide 15: Proprietary, industry leading commercial management system
Proprietary, industry leading commercial management system eFleetWatch provides real-time information to Heidmar’s stakeholders One of the first Large amounts of Cradle to grave type Provides CO2 by One platform for all market-facing digital data stored from prior system, partners have voyage leg, a
Slide 16: Heidmar engages with industry leading counterparties
Heidmar engages with industry leading counterparties High quality customers and counterparties … High Quality Blue Chip Vessel Owner Cargo Owner Customers Counterparties … with reliable supplier relationships Key Suppliers Source: Company Materials. 16
Slide 17: Significant growth potential across all business segments
Significant growth potential across all business segments Highly scalable platform with significant runway for growth to become a distinguished full-service platform Expanding Service Offering Pool Expansion into Adjacent ◼ Utilize existing global Sectors platform and brand recognition to expand acr
Slide 18: Large growth opportunity in tanker market despite recent growth
Large growth opportunity in tanker market despite recent growth VLCC Suezmax The largest tankers on the water, primarily trade in long-haul trade routes Primarily crude oil on long to medium haul routes Average capacity ~2 million barrels Average capacity of ~1 million barrels (1) (1) Total Target T
Slide 19: Dry bulk fleet development presents an opportunity for expansion
Dry bulk fleet development presents an opportunity for expansion Near-term plans to expand pool and commercial management offering to dry bulk vessels Dry Bulk Fleet (# of Vessels) Dry bulk vessels primarily transport 14,000 13,324 grain, coal, iron ore, sugar and other 12,000 dry goods 10,000 7,698
Slide 20: Expanding service offering into technical management & brokerage
Expanding service offering into technical management & brokerage Synergistic Service Expansion – Creating a True One-Stop Shop for Shipowners Current Capabilities Managing the voyage High Quality Blue Chip Vessel Sale Vessel Owner Charterers & Purchase Customers Managing the vessel Expansion into Te
Slide 21: Why Heidmar?
Why Heidmar? Heidmar’s revitalized business, strong performance and experienced management team has built significant momentum for organic expansion… Trust ~40 Years of Experience Full Service in Vessel Pooling Building on Heidmar’s strong Heidmar maximizes customer value reputation in tanker poolin
Slide 22: Market Update
MARKET UPDATE
Slide 23: Poised to capitalize on favorable tanker market dynamics
Poised to capitalize on favorable tanker market dynamics Key Market Dynamics Historically low tanker vessel orderbook ◼ Current orderbook-to-fleet ratio of ~5% is near the lowest in the last 20 years Favorable tanker supply / Multi-year high newbuild prices to keep newbuild ordering muted demand fun
Slide 24: Crude & refined products shipping market dynamics
Crude & refined products shipping market dynamics Strong demand & ton-mile recovery... ... Amplified by geopolitics and refinery dislocation Increased ton-miles from displacement of Russian Increased ton-miles from refinery 12.0% crude impacting global trade routes dislocation (2020-2026 mbpd) bpd 9
Slide 25: Crude & refined products shipping market dynamics (cont'd)
Crude & refined products shipping market dynamics (cont’d) Historically low orderbook to fleet ratio… … While the global fleet continues to age 25% # of 696 1,101 1,179 1,483 852 Crude Tanker Orderbook vessels Product Tanker Orderbook Over 2,300 vessels becoming 20% scrapping candidates in the next
Slide 26: Financial Summary
FINANCIAL SUMMARY
Slide 27: Financial summary
Financial summary ($ millions) 2021A 2022A 2023E(1) Revenue Time charter / voyage revenue $- $9.5 $19.9 Pool management services 4.8 14.2 28.1 Syndication income, net - 6.2 6.6 S&P brokerage - 0.2 1.5 Technical management services(2) - - 3.6 Total Revenue $4.8 $30.1 $59.7 Expenses Charter-in costs -
Slide 28: Strong recent growth
Strong recent growth Vessels Under Management Development(1) # of vessels 37% YoY Growth 82 100% YoY Growth 17 60 20 21 30 9 45 39 21 2021 2022 2023E (2) Tanker Pool VUM Tanker Commercial Management VUM Dry Bulk Commercial Management VUM Revenue and Net Income $ millions 100% Revenue YoY $60 Growth
Slide 29: Valuation Overview
VALUATION OVERVIEW
Slide 30: Selected operational benchmarking
Selected operational benchmarking Ship Brokers Marine Services Asset-Light Logistics Mean (2) (1) 98.3% Revenue Growth ’22 – ’23E 4.2% 5.5% (7.1%) (13.9%) 53.8% 50.1% EBITDA Margin (3) ’22 / ’23E 4.6x 4.3x Higher Higher 16.3% 16.9% 11.3% 13.8% 11.7% 11.6% than than 10.5% 9.5% Peer Peer Mean Mean Sou
Slide 31: Selected valuation benchmarking
Selected valuation benchmarking Ship Brokers Marine Services Asset-Light Logistics Mean (1)(2) 18.9x 15.7x 10.9x Price / 2023E 8.8x 9.1x Earnings 43.6% Discount to Peer Mean 10.6x 8.9x 8.2x 7.2x Enterprise Value / 2023E EBITDA 20.0% 4.0x Discount to Peer Mean ✓ Asset-light business ✓ Similar sector
Slide 32: Next phase of Heidmar
Next phase of Heidmar A full-service vessel manager providing commercial, technical, and sale & purchase services across multiple vessel classes “One-stop” solution for tankers & dry bulk Multiple touch-points across the vessel lifecycle Key role in environmental compliance and decarbonization Stron
Slide 33: Risk factors
Risk factors In this section, “Heidmar,” the “Company” and “we,” “us” and “our” refer to Heidmar Inc., “Home Plate” or “SPAC” refers to Home Plate Acquisition Corporation, “Business Combination” refers to a potential transaction involving the combination of Heidmar and Home Plate, and “Holdings” ref
Slide 34: Risk factors (cont'd)
Risk factors (cont’d) ◼ Any decrease in shipments of crude oil may adversely affect our financial performance. ◼ A shift in consumer demand from oil towards other energy sources or changes to trade patterns for crude oil or refined oil products may have a material adverse effect on our business. ◼ T
Slide 35: Risk factors (cont'd)
Risk factors (cont’d) Risks Related to the Holdings Common Shares ◼ Upon completion of the Business Combination, Home Plate stockholders will become Holdings shareholders, holders of Home Plate Warrants will become holders of Holdings Warrants and the market price for the Holdings Common Shares may
Slide 36: Risk factors (cont'd)
Risk factors (cont’d) ◼ Because of Home Plate’s limited resources and the significant competition for business combination opportunities, if the Business Combination is not completed, it may be more difficult for Home Plate to complete its initial business combination. If Home Plate has not consumma
Slide 37: Risk factors (cont'd)
Risk factors (cont’d) ◼ Home Plate may waive one or more of the conditions to the Business Combination without resoliciting stockholder approval for the Business Combination. The exercise of Home Plate’s directors’ and executive officers’ discretion in agreeing to changes or waivers in the terms of
Slide 38: Appendix
APPENDIX
Slide 39: EBITDA reconciliation
EBITDA reconciliation ($ millions) 2021A 2022A 2023E(1) EBITDA reconciliation: Net income $1.1 $16.2 $29.9 Depreciation(2) 0.2 - - EBITDA $1.3 $16.2 $29.9 Adjusted EBITDA reconciliation: Depreciation(2) $0.2 $- $- Impairment loss 0.7 - - Gain on lease termination (0.3) - - Adjusted EBITDA $1.5 $16.2
Slide 40: Significant momentum & strong vessel pipeline
Significant momentum & strong vessel pipeline … whose actionable pipeline of vessel acquisitions provide visibility into meaningful near-term revenue uplift Heidmar is currently in discussions with 20+ shipowners to potentially contribute up to 63 vessels into its pools VLCC Suezmax Commissions (1.2
Slide 41: Heidmar team
Heidmar team Highly-Experienced Executive Team Heidmar’s Global Presence Pankaj Khanna Niki Fotiou Athens Chief Executive Chief Financial Officer IT, Accounting & Officer 28 Finance, Operations, Employees Legal, Tanker Chartering Justin Sims-Sterling Andreas Konialidis Head of BD Atlantic Head of Ch
Slide 42: Heidmar's core market: crude oil and refined products shipping
Heidmar’s core market: crude oil and refined products shipping Crude Oil Shipping Refined Products Shipping ▪ Crude oil tankers transport unrefined petroleum from terminals ▪ Product tankers transport refined petroleum products, such as near locations of extraction to refineries gasoline, jet fuel,
Slide 43: Pools mitigate commercial risk and lower costs for shipowners
Pools mitigate commercial risk and lower costs for shipowners Shipowners Shipowners Pooling in Shipping Without Pool With Pool ⚫ A pool is an association of vessels of Vessel-by-Vessel Scaled Benefits similar class that are owned by multiple parties but commercially ~ managed by a third-party operat