Great Eastern Shipping Co. Ltd. · NSE:GESHIP

Great Eastern Shipping — The Great Eastern Shipping — Q1 FY2025 Earnings Presentation

43 slides from Great Eastern Shipping's earnings presentation, Aug 1, 2024

1. Slide 1: Q1 FY25 Earnings Presentation

   Q1 FY25 Earnings Presentation 01 AUG 2024

2. Slide 2: Disclaimer

   DISCLAIMER Except for historical information, the statements made in this presentation constitute forward looking statements. These include statements regarding the intent, belief or current expectations of GE Shipping and its management regarding the Company’s operations, strategic directions, pros

3. Slide 3: Q1FY25 Highlights

   Q1FY25 HIGHLIGHTS • Net profits of INR 812 Cr on a consolidated basis • Our consolidated NAV has moved to INR 1,464/share as on 30 th June 2024 • Declared 1st Interim dividend (10th consecutive quarterly) of INR 9.00/Share for Q1FY2025. GE Shipping – Q1FY25 Results 3

4. Slide 4: Reported Highlights

   REPORTED HIGHLIGHTS St a n d a l on e C on s l i d a t e d Q1 Q1 Q1 Q1 Fig in INR Crores FY25 FY24 FY24 FY25 FY24 FY24 • GE Shipping Q1FY25 consolidated Net I n come St a t e me n t Revenue* 1,310 1,109 4,724 1,703 1,335 5,919 Profit at INR 812 Cr EBITDA* 862 746 3,049 1,106 843 3,672 • Declared 1st

5. Slide 5: Normalised Financials

   NORMALISED FINANCIALS o The impact of the exchange rate on foreign currency loans and current assets and liabilities, including cash and bank balances, has been removed o NCD & Currency Swap: o Funds raised through NCDs have been swapped into USD using INR-FCY swaps, thus creating synthetic fixed ra

6. Slide 6: Normalised Financial Highlights

   NORMALISED FINANCIAL HIGHLIGHTS Standalone Conslidated • GE Shipping Q1FY25 Q1 Q1 Q1 Q1 consolidated Net Profit Fig in INR Crores FY25 FY24 FY24 FY25 FY24 FY24 at INR 817 Cr In come St at e me n t • Declared 1st Interim Revenue* 1,310 1,109 4,724 1,703 1,335 5,919 EBITDA* 851 675 2,932 1,092 776 3,5

7. Slide 7: Normalised Financial Highlights

   NORMALISED FINANCIAL HIGHLIGHTS Standalone Conslidated Q1 Q1 Q1 Q1 FY25 FY24 FY24 FY25 FY24 FY24 Ke y Financial Figure Return on Equity (ROE%)** 26% 24% 24% 26% 20% 22% Return on Capital Employed (ROCE%)** 21% 19% 20% 21% 16% 18% Gross Debt/Equity (x) 0.25 0.33 0.26 0.26 0.38 0.28 Net Debt/Equity (x

8. Slide 8: Normalised Financials – Key Ratios

   NORMALISED FINANCIALS – KEY RATIOS Earnings per Share (INR/Share) Cash Profit per Share (INR/Share) Standalone Consolidated Standalone Consolidated 70.26 71.06 60 59.57 48.98 57.26 51.21 45.03 63.89 50 60.71 57.95 54.73 56.30 46.34 41.65 49.13 55.65 52.26 40 35.65 37.06 53.61 38.67 49.13 50.61 56.01

9. Slide 9: Consistent Dividend Payouts

   CONSISTENT DIVIDEND PAYOUTS 40 36.3 35 30 28.8 25 20 15 11.5 13.5 15.0 11.0 10.0 10.1 9.9 9.0 8.0 9.0 9.0 9.0 10 8.0 7.5 8.1 6.5 6.5 7.2 3.1 5.4 4.0 8.0 3.3 4.0 4.0 5 2.4 2.3 3.0 2.8 2.3 2.0 0 2.0 1.5 Dividend Per Share (INR/Share) GE Shipping – Q1FY25 Results 9

10. Slide 10: Profit & Loss Statement – Industry Format

    PROFIT & LOSS STATEMENT – INDUSTRY FORMAT Standalone Conslidated Q1 Q1 Q1 Q1 Figures in INR Crores FY25 FY24 FY24 FY25 FY24 FY24 Operating Revenue 1,145 1,035 4,102 1,497 1,277 5,176 Less: Direct Operating Expenses/Voyage Expenses 142 155 626 162 157 680 Time C har ter Equiv alent ( A) 1,003 880 3,4

11. Slide 11: Shareholding Pattern

    SHAREHOLDING PATTERN FII/FPI 25% Promoters 30% Govt./FI/Corp 20% Public 25% 30-Jun-2024 GE Shipping – Q3 & 9MFY23 Results GE Shipping – Q1FY25 Results 11

12. Slide 12: Performance Review

    PERFORMANCE REVIEW Breakup of Revenue Days (Shipping) Q1 Q1 Revenue Days FY25 FY24 Owned Tonnage 3,782 3,659 Inchartered Tonnage 0 91 Total Revenue Days 3,782 3,750 Total Owned Tonnage (mn.dwt) 3.41 3.44 Breakup of Revenue Days (Offshore) Q1 Q1 Revenue Days FY25 FY24 Offshore Logistics 1,594 1,520 D

13. Slide 13: Performance Review

    PERFORMANCE REVIEW Avg TCYs in Various Categories Q1 Q4 QoQ Q1 YoY Avg (TCYs USD/Day) FY25 FY24 % FY24 % Crude Carriers 46,352 53,182 -13% 53,344 -13% Product Carriers 37,153 37,637 -1% 33,142 12% LPG Carriers 36,742 35,506 3% 28,860 27% Dry Bulk 17,976 14,921 20% 13,608 32% GE Shipping – Q1FY25 Res

14. Slide 14: Changes in Standalone NAV (YTD)

    CHANGES IN STANDALONE NAV (YTD) INR/SHARE GE Shipping – Q1FY25 Results 14

15. Slide 15: Years Movement in Standalone NAV

    5 YEARS MOVEMENT IN STANDALONE NAV Standalone NAV – Continues to touch new highs 1400 1181 1200 CAGR: 24% INR/SHARE 1000 800 600 374 400 200 0 FY19 FY20 FY21 FY22 FY23 FY24 Q1FY25 GE Shipping – Q1FY25 Results 15

16. Slide 16: Changes in Consolidated NAV (YTD)

    CHANGES IN CONSOLIDATED NAV (YTD) INR/SHARE GE Shipping – Q1FY25 Results 16

17. Slide 17: Revenue Coverage

    REVENUE COVERAGE Coverage of Operating Days (Shipping) Category Q2FY25 Crude Carriers 47% Product Carriers 53% LPG Carriers 100% Dry Bulk 51% Revenue Days Q2FY25 Jack Up Rigs 100% AHTSV 90% MPSVV 4% PSV/ROVSV 75% GE Shipping – Q1FY25 Results 17

18. Slide 18: Standalone Debt Repayment Schedule

    STANDALONE DEBT REPAYMENT SCHEDULE GESCO Standalone (USD mn) 80 74 74 350 71 70 66 300 321 60 250 50 200 40 36 150 30 100 20 10 50 0 0 Jun-24 Mar-25 Mar-26 Mar-27 Mar-28 Mar-29 Loan Repayments Loan O/S (RHS) 1) Effective all-in USD cost of debt of about 4.00% basis Jun-24 2) 95% of debt portfolio is

19. Slide 19: Fleet Profile

    FLEET PROFILE Fleet Profile - Shipping DWT Fleet (01 Aug'24) Fleet Q4FY24 No Avg Age Crude Carriers 842,958 6 15.69 *Committed to sell one 2004 Product Carriers* 1,145,829 19 15.77 built MR “Jag Pranam” and one Gas Carriers 185,363 4 18.71 2005 built MR “Jag Pranav” Dry Bulk Carriers 1,239,274 14 10

20. Slide 20: Shipping Market

    QL Tie Great Fasten Shipping Co. Ltd. SHIPPING MARKET

21. Slide 21: Crude and Product Tankers

    CRUDE AND PRODUCT TANKERS Avg. Suezmax Earnings (USD/day) Avg. MR Earnings (USD/day) 100,000 60,000 90,000 50,000 80,000 70,000 40,000 60,000 50,000 30,000 40,000 20,000 30,000 20,000 10,000 10,000 0 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY

22. Slide 22: Crude and Product Tankers

    CRUDE AND PRODUCT TANKERS • Crude tanker earnings were softer y/y in 1QFY25 led by weaker crude oil trade but continue to be firm under historic context. Chinese crude imports have been surprisingly soft, declining by 9% y/y in 1QFY25 amidst weak refinery margins. • Product tanker earnings were high

23. Slide 23: Dry Bulk

    DRY BULK DB Freight picked up in Q1FY25 Y-O-Y, including sub-capes which averaged higher Y-O-Y Avg. Baltic Capesize 5T/C Earnings (USD/day) Avg. Baltic Supra BSI-58 10T/C Earnings 70,000 (USD/day) 40000 60,000 35000 50,000 30000 40,000 25000 20000 30,000 15000 20,000 10000 10,000 5000 0 0 Apr May Ju

24. Slide 24: Dry Bulk

    DRY BULK • During 1QFY25, spot earnings witnessed growth across segments with Capesize earnings up 45% y/y, while Kamsarmax and Supramax earnings grew by 32% and 37% y/y, respectively. Strong freight rates during the quarter kept asset prices firm. • Earnings were supported by continuing iron ore im

25. Slide 25: LPG Gas

    LPG GAS Avg. VLGC Earnings (USD/day) 170,000 VLGC Spot earnings corrected to levels closer to Q1 FY-23 150,000 during Q1 FY-25 and averaged lower YoY in comparison to 130,000 Q1 FY-24. 110,000 90,000 USD/day FY25 FY24 % change 70,000 3M 52,406 75,981 -31% 50,000 30,000 10,000 April May June July Aug

26. Slide 26: Fleet Supply

    The Great Fastern Shipping Co. Ltd FLEET SUPPLY

27. Slide 27: Low Order Book to Fleet Ratio

    LOW ORDER BOOK TO FLEET RATIO Historic Order Book as a % of fleet (Calendar Year) 90% 80% 70% 60% Current Orderbook 50% 40% 30% 24.7% 20% 8.3% 17.4% 10% 9.6% 0% Bulkers Product tankers Crude tankers LPG Carriers (65K+ CBM) Sources: Industry Reports GE Shipping – Q1FY25 Results 27

28. Slide 28: Orderbook – Yearwise Breakup

    ORDERBOOK – YEARWISE BREAKUP Orderbook - Most of the orders are tail ended 25% Total: 24.72% 19.87% 20% 15% Total: 17.35% 10.23% Total: 12.16% 10% Total: 8.32% 7.41% Total: 9.64% 6.49% 4.82% 5% 0% Crude Product Product Ex LR2 Dry Bulk LPG Cal 2024 Cal 2025 Cal 2026 and Beyond Sources: Industry Repor

29. Slide 29: Scrapping

    SCRAPPING Scrapping continues to be very low, and the pool of old ships continues to grow Fleet (Mn Dwt) Vessel Category Jul'24 Crude 463 Product 186 Dry Bulk 1,020 Scrapping (% Beginning world fleet) CYTD CY CY CY CY CY CY CY CY Vessel Category 2024 2023 2022 2021 2020 2019 2018 2017 2016 Crude 0.1

30. Slide 30: Orderbook and Scrapping Potential

    ORDERBOOK AND SCRAPPING POTENTIAL Orderbook Vs Scrapping Potential 30% Aeging FLeet as a % of Total Fleet 25% 20% Crude Tankers 15% Product Tankers 10% Dry Bulk Carriers LPG Carriers 5% 0% 0% 5% 10% 15% 20% 25% 30% Orderbook as % of Total Fleet Scrapping Potential: For LPG carriers 25+ age is consid

31. Slide 31: Asset Price Movement

    ©? pe ret Fs ak OS ASSET PRICE MOVEMENT THE GREAT EASTERN SHIPPING CO. LTD.

32. Slide 32: Asset Price Movement (Indexed Over Last 5 Yrs)

    85 105 125 145 165 185 205 225 95 105 115 125 135 145 165 175 85 155 Jul-19 Jul-19 Oct-19 Oct-19 Jan-20 Jan-20 5 YRS) Apr-20 Apr-20 Jul-20 Jul-20 Sources: Industry Reports Oct-20 Oct-20 Jan-21 Jan-21 Apr-21 Apr-21 Jul-21 Jul-21 Oct-21 Oct-21 Jan-22 Jan-22 Capesize Suezmax Apr-22 Apr-22 Jul-22 Jul-22

33. Slide 33: Greatship (India) Limited 100% Subsidiary

    GREATSHIP (INDIA) LIMITED 100% SUBSIDIARY

34. Slide 34: Market Trends: Utilisation

    200 300 350 400 450 250 Jul 2010 Jan 2011 Jul 2011 Sources: Industry Reports Jan 2012 Jul 2012 Jan 2013 Jul 2013 Jan 2014 Jul 2014 Jan 2015 Jul 2015 Jan 2016 Jul 2016 Jan 2017 MARKET TRENDS: UTILISATION Under Contract Jul 2017 Jan 2018 Jul 2018 GE Shipping – Q1FY25 Results Jan 2019 Total Util % Jul

35. Slide 35: Fleet Supply

    FLEET SUPPLY Number Jack-up Rigs PSV+AHTSV Current Fleet 500 3,351 Under Contract Fleet 371 2,328 Order Book 15 46 O/B to Current Fleet 3.0% 1.4% Total Scrapping since Jan 2016 (Nos) 145 713 No of Vessels/Rigs more than 20/30 years old (% Fleet) 32% 21% Cold stacked more than 3 years 57 434 Source:

36. Slide 36: Repricing

    REPRICING Vessels Rigs 6 5 3 2 2 1 1 1 1 0 0 0 0 0 H1 FY25 H2 FY25 H2FY26 H1FY27 H2FY27 H1FY28 H2FY28 • 6 vessels coming off in FY25 have already been repriced • Remaining 1 vessel will come up for repricing in H1FY29 GE Shipping – Q1FY25 Results 36

37. Slide 37: Debt Repayment Schedule

    DEBT REPAYMENT SCHEDULE GIL (USD Mn) 30 100 26 26 26 90 25 92 80 70 20 60 15 15 50 40 10 30 20 5 10 0 0 Jun-24 Mar-25 Mar-26 Mar-27 Mar-28 Repayments Loan O/S (RHS) GE Shipping – Q1FY25 Results 37

38. Slide 38: Financials

    ‘The Great Eastern Shipping Co. Ltd. FINANCIALS

39. Slide 39: Strong Cashflows Led Net Debt to Net Cash of USD 350 Mn

    STRONG CASHFLOWS LED NET DEBT USD 360 MN TO NET CASH OF USD 350 MN USD Mn Net Debt Expansion Phase Net Debt Reduction Phase 400 0.60 300 0.50 0.40 200 0.30 100 0.20 - 0.10 -100 - -0.10 -200 -0.20 -300 -0.30 -400 -0.40 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Q1FY2025 Net Debt N

40. Slide 40: Share Price to Consolidated NAV

    SHARE PRICE TO CONSOLIDATED NAV INR/Share 1600 1.2 1400 1 1200 0.8 1000 800 0.6 600 0.4 400 0.2 200 0 0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Q1FY25 Consolidated NAV Standalone NAV Share Price/Consol. NAV (RHS) * For Q1FY25 we have taken share price as on 01st Aug 2024 GE Shipping – Q1FY25 Re

41. Slide 41: Great Eastern CSR Foundation

    GREAT EASTERN CSR FOUNDATION Since 2015, GECSRF has partnered with 53 NGOs under the three key CSR focus areas. • Education: More than 1.50 Lakh students reached out through primary and secondary education. • Health: More than 78,000 women and 40,300 children provided with health services – includin

42. Slide 42: Great Eastern CSR Foundation

    GREAT EASTERN CSR FOUNDATION FY 2024-25: GECSRF currently supporting 27 NGOs working under education, health and livelihoods across 17 states in India EDUCATION HEALTH LIVELIHOODS 1. Adhyayan Quality Education 1. Anushkaa Foundation for 1. Ayang Trust Foundation (AQEF) Eliminating Clubfoot (AFEC) 2.

43. Slide 43: Thank You

    THANK YOU Visit us at www.greatship.com From a modest beginning… ...to most admired globally 1948 2024 Read the Story of GE Shipping – Coffee Table Book GE Shipping – Q1FY25 Results 43

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