Taylor Maritime Limited · LSE:TMI
Taylor Maritime — Q2 FY23 Earnings Presentation
13 slides from Taylor Maritime's earnings presentation, Oct 25, 2023
Slide 1: Q2 FY23 Trading Update
Q2 FY23 Trading Update 25 October 2023 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: Second Quarter Review – Highlights
Strictly Private & Confidential Second Quarter Review – Highlights Seven vessel sales, stronger balance sheet and improved fleet profile Operating Performance Financial Stability Scale and Growth • Audited NAV per share decreased from $1.56 to $1.31; • Interim dividend declared for period to 30 Sept
Slide 4: Second Quarter Review – Charter Market
Strictly Private & Confidential Second Quarter Review – Charter Market Rates have improved with China re-stocking, alongside positive grain exports from South America and trade disruption from the drought affected Panama Canal increasing tonne-mile demand Handysize & Supra/Ultramax Spot Rates LTM Ge
Slide 5: Second Quarter Review – Portfolio Deployment for the TMI Fleet
Strictly Private & Confidential Second Quarter Review – Portfolio Deployment for the TMI Fleet Unlevered yield 7.8% gross with a net TC rate of $10,299 per day Average annualized unlevered gross cash yield Average Charter Cover Avg yield: c.7.8% Avg duration: 3 months Average net TC rate: c.$14,400
Slide 6: TMI Debt Reduction Progress and Target
Strictly Private & Confidential TMI Debt Reduction Progress and Target Over the last 3 quarters, TMI has repaid c.$90m of debt at the Company level, with a ‘look through’ reduction in debt (including lease liabilities) of c.$147m. Further de-gearing remains a priority TMI Deleveraging Progress Since
Slide 7: Cashflow
Strictly Private & Confidential Cashflow Vessel sales remain central to deleveraging, with excess cash at Grindrod to be received at TMI via the upcoming Capital Reduction during the next quarter ◼ Ship sales and refinancing of TMI’s debt into a new, lower margin, RCF facility have resulted in furth
Slide 8: Group Fleet Development
Strictly Private & Confidential Group Fleet Development Deleveraging through vessel sales has also been strategic, with a focus on divesting some older, less efficient tonnage allowing us to optimise our fleet in the face of tightening environmental regulations – largely modern, geared bulk carriers
Slide 9: Integration – GRIN Acquisition of Taylor Commercial and Technical Managers
Strictly Private & Confidential Integration – GRIN Acquisition of Taylor Commercial and Technical Managers Formal integration of fleet management under Grindrod to deliver scale synergies ▪ Access to GRIN cargo for coverage of TMI ship days ▪ Facing the market “as one” under the well-established IVS
Slide 10: Outlook – Demand Fundamentals
Strictly Private & Confidential Outlook – Demand Fundamentals Positive demand growth expected in 2024 for key TMI and GRIN cargoes Commentary Grain and minor bulk trade development (billion tonne miles) ◼ Demand shaped by global population growth: Fertilizer, food and building 18,000 Average annual
Slide 11: 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% 45 Forecast 6
Slide 12: Strategic Priorities
Strictly Private & Confidential Strategic Priorities Grindrod, mix of short, medium, long-term charters, deleveraging ◼ Short-term: Achieving deleveraging target of below 25% debt to gross assets and Capitalizing on the Grindrod transaction to enhance operating leverage and capture synergies and oth
Slide 13: Questions
Strictly Private & Confidential Questions Strictly Private and Confidential