Taylor Maritime Limited · LSE:TMI
Taylor Maritime — Taylor Maritime Investments — Q3 2022 Earnings Presentation
21 slides from Taylor Maritime's earnings presentation, Jan 27, 2023
Slide 1: Q3 FY22 Trading Update
Q3 FY22 Trading Update 27 January 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: Third Quarter Review – Highlights
Strictly Private & Confidential Third Quarter Review – Highlights Balanced chartering strategy resulted in outperformance in Q3 and continued cash yield >20% Operating Performance Financial Stability and Sustainability Scale and Growth • Unaudited NAV per share decreased from $1.70 to • Interim divi
Slide 4: Third Quarter Review – Charter Market
Strictly Private & Confidential Third Quarter Review – Charter Market TMI earnings outperform for the second quarter in a row despite recent softening of rates Handysize Market Spot Rates LTM vs TMI TCE Hanydsize & Supramax Seasonality 35,000 Q3 FY22 62% coverage of remaining fleet days 30,000 for c
Slide 5: Third Quarter Review – Portfolio Deployment
Strictly Private & Confidential Third Quarter Review – Portfolio Deployment Yields remain strong at c.22%* gross with a net TC rate of c.$15,800 per day Average annualized unlevered gross cash yield Average Charter Cover Avg yield: c.22%* Avg duration: 6 months Average net TC rate: $16,834 9% 26% 22
Slide 6: Grindrod – Investment Update
Strictly Private & Confidential Grindrod – Investment Update Securing an 83.23% controlling stake in Grindrod is a good strategic outcome in creating a significant owner of geared dry-bulk ships • Price paid for Grindrod is below unaudited NAV at end of last quarter • TMI gained $352m NAV (83%) vs a
Slide 7: Potential Annual Cashflow Generation for Debt Repayment
Strictly Private & Confidential Potential Annual Cashflow Generation for Debt Repayment We are committed to reducing debt to c.25% in the coming two quarters through vessel sales and operating cashflow Potential Annual Free Cashflow Generation Combined TMI & Grindrod Fleet (post TMI dividend) *TCE r
Slide 8: Outlook – Demand Fundamentals
Strictly Private & Confidential Outlook – Demand Fundamentals Positive growth forecasts across our core cargoes despite macroeconomic headwinds Commentary Grain and minor bulk trade development (billion tonne miles) ◼ Demand shaped by global population growth: Fertilizer, food and building 16,000 Bi
Slide 9: Outlook – Supply Fundamentals
Strictly Private & Confidential Outlook – Supply Fundamentals Near historically low orderbook and positive outlook to end of 2024 and possibly beyond Handysize supply development (dwt m) Handysize 32k dwt 10-year-old Secondhand Prices & Orderbook 120 Orderbook as % of fleet (dwt) 45 8.0 8.8% 40 7.2%
Slide 10: 2023 Outlook – Dry Bulk Market Catalysts
Strictly Private & Confidential 2023 Outlook – Dry Bulk Market Catalysts China reopening, altered trade patterns and energy scarcity provide the key catalysts in 2023 China Reopening Grain Trade Patterns Energy Scarcity SHORT TERM Next 2 Quarters • China accounts for 40% of volumes and 50% of • Well
Slide 11: 2023 Outlook – Fleet-wide impact of environmental regulations
Strictly Private & Confidential 2023 Outlook – Fleet-wide impact of environmental regulations New International Maritime Organisation emissions targets from January 2023 Dry-bulk fleet age profile Average Dry Bulk Speed c.16% are over 20 years and 35% c.9% are over 25 years i.e., 2.0% 12.50 >25 Year
Slide 12: Strategic Priorities
Strictly Private & Confidential Strategic Priorities ◼ Capitalizing on the Grindrod transaction to enhance operating leverage and capture synergies and other economies of scale ◼ De-levering to ensure a strong balance sheet consistent with TMI’s long term commitment to prudent capital structure ◼ Ma
Slide 13: Summary – investment attractions
Strictly Private & Confidential Summary – investment attractions Highly cash generative, attractive asset portfolio internally managed by an experienced team, with a favourable market outlook 1 Significant owner in niche geared dry bulk market 2 High quality diversified portfolio comprising 57 vesse
Slide 14: Questions
Strictly Private & Confidential Questions Strictly Private and Confidential
Slide 15: Appendix
Strictly Private & Confidential Appendix
Slide 16: Taylor Maritime Investments Overview
Strictly Private & Confidential Taylor Maritime Investments Overview LON:TMI Structure Internally managed, Guernsey investment company London Stock Exchange listed / Premium segment USD denominated; USD and GBP share quotes Fundraisings / M&A / IPO $160m offering (May 2021) Market Cap Foll
Slide 17: Operating Market - Global Shipping
Strictly Private & Confidential Operating Market - Global Shipping ◼ Accounts for 90% of global goods transport ◼ The lowest carbon intensity and cost-effective mode of transporting bulk goods given commodity volumes and distances to be covered; proactive stance from sector participants for decarbon
Slide 18: Operating Market - The Geared Shipping Sector
Strictly Private & Confidential Operating Market - The Geared Shipping Sector The workhorses of the shipping sector, geared vessels are differentiated by their versatility, flexibility and port accessibility Dry Bulk Ship Type Principal Cargoes Trade Routes Financial implications More Minor Bulks Ve
Slide 19: ESG - Committed to Initiatives to Integrate ESG Principles
Strictly Private & Confidential ESG - Committed to Initiatives to Integrate ESG Principles TMI is committed to achieving a long-term target of net zero emissions by 2050 and to cross-industry efforts to achieve that target; signatory to the Getting to Zero Coalition’s ‘Call to Action for Shipping De
Slide 20: TMI ESG priorities and recent initiatives
Strictly Private & Confidential TMI ESG priorities and recent initiatives TMI is committed to achieving a long-term target of net zero emissions by 2050 TMI ESG PRIORITIES Responsible Climate change and Community and Onshore and at Compliance and Strong Corporate Investment Environmental Employee Se
Slide 21: Diversified shipping routes and versatile port accessibility
Strictly Private & Confidential Diversified shipping routes and versatile port accessibility TMI vessels called a total of 337 different ports in 2022 2%2% 4% 9% 6% 27% Asia Food & Agricultural 11% South America Products 10% Europe Construction Materials Share of Total 43% Regional share North Ameri
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