Costamare Inc. · NYSE:CMRE
Costamare — Investor Presentation (June 2020)
22 slides from Costamare's investor presentation, June 2020
Slide 1: Company Presentation June 2020
Company Presentation June 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain “forward-looking statements” (as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended). All statements, other than statements of historical facts, that address activities, events or developments that the
Slide 3: Company Information
COMPANY INFORMATION 3
Slide 4: Costamare Highlights
Costamare Highlights § One of the largest independent owners of containerships / Fleet of 75 vessels (incl. 5 newbuilds). § 46 years of experience in shipping and a dedicated containership owner since 1992. § Strong track record of uninterrupted profitability. § Contracted cash flows of $2.1Bn(1) fr
Slide 5: Profitable Performance Throughout the Business Cycle
Profitable Performance Throughout the Business Cycle $m Index Value 600 120 500 100 400 80 26% 300 60 200 40 100 % 20 124 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1 Adjusted 2 Revenue Containership Time Charter Rate Index Net Income Source: Clarksons Research Services, Company
Slide 6: Strategy
Strategy § Focus on contracted cash flows of over $2Bn from strong counterparties in order to meet: Ø Operational expenses Ø Debt service requirements Ø Dividend payments Ø Excess liquidity requirements for re-investments § Staggered charter maturities to mitigate concentration risk in a volatile ch
Slide 7: High Quality and Stable Cash Flows
High Quality and Stable Cash Flows Revenue Contribution (All Vessels)(1)(2) Other l As of April 29, 2020, contracted revenues of approximately 1% $2.1Bn(1)(2) 1% 10% l TEU-weighted average remaining time charter duration for the fleet is about 3.4 years(1)(2) 28% 11% 24% 25% Notes 1.Based on contrac
Slide 8: Prudent Capital Structure
Prudent Capital Structure LEVERAGE RATIO(1) NET DEBT / ADJUSTED EBITDA(2)(3) 60% (' 000 US$) Q1 2020 NET INCOME 32,776 55% 54% Net Interest and Finance Costs 17,820 51% 50% Depreciation and Amortization 30,343 46% EBITDA(3) 80,939 45% 45% 43% ADJUSTED EBITDA(2) (3) 87,875 40% 40% 39% 41% 12 month Tr
Slide 9: Fleet Overview
Fleet Overview § Diversified fleet. § Positioned to service all routes, interregional and intraregional. § Investment focus on larger vessels over the past 15 years. § Expertise in the efficient operation of older vessels (average age of 27 years for the 27 vessels sold since our IPO). Size TEUs Ran
Slide 10: Q1 2020 Income Statement Snapshot
Q1 2020 Income Statement Snapshot Q1 2020 RESULTS Q1 2019 Q1 2020 % Change Ownership Days 5,575 5,475 (1.8%) Average Number of Vessels 61.9 60.2 (2.7%) Voyage Revenues 112,974 121,404 7.5% Net Interest and Finance Costs (*) 22,098 17,820 (19.4%) Adjusted Net Income Available to Common Stockholders(*
Slide 11: The Containership Industry
THE CONTAINERSHIP INDUSTRY 11
Slide 12: Historical Perspective
Historical Perspective § World Seaborne Container Trade has been growing every year apart from the Global Financial Crisis of 2009. § Fleet Growth averaged 4.5% over the last 5 years compared to 13% in the 5 years preceding the Financial Crisis. World Seaborne Container Trade and Fleet Growth (%) 20
Slide 13: Recent Trends
Recent Trends § First signs of recovery in China (back to more than 85% of normal activity levels), following a 20% contraction in the first 2 months of 2020(1). § Container throughput in Chinese ports expected to improve. § Demand for containerized goods from US and Europe expected to decline in th
Slide 14: Containership Supply Dynamics
Containership Supply Dynamics Increasing Idle Fleet levels. …with a Shrinking Orderbook and Delivery Capacity 12% Forecast for 2020 being Downgraded by 10%… Idle Fleet (% of Existing Fleet) 11.6% 450,000 10% 400,000 Scrubbers 350,000 installation 8% effect and 300,000 other TEUs operational 250,000
Slide 15: Chartered Tonnage Integrated in Liners' Business Models
Chartered Tonnage Integrated in Liners’ Business Models § Liners charter-in more than half of the existing fleet and 35% of the containership orderbook. § Liners may rely more on chartered vessels in the future as they shift their focus to: Ø Upgraded Logistics Services Ø Asset light business models
Slide 16: Limited Competition Among Containership Owners
Limited Competition Among Containership Owners § Top 15 owners account for: Ø 71% of the total vessels ordered by containership owners Ø 45% of the chartered fleet in the water § Consolidation among containership owners is expected to continue in the future driven by: Ø Financially distressed operat
Slide 17: IMO 2020 – LNG Fuel and Scrubber Watch
IMO 2020 – LNG Fuel and Scrubber Watch Scrubber Fitted container ships Ships TEU Capacity LNG Fuel Scrubber Fitted Fitted at delivery (newbuildings) TEU size range Ships TEU Ships TEU 85 694,848 Retrofit completed <2000 5 6,540 83 116,995 387 3,387,447 2,000-5,100 4 11,000 124 434,641 Retrofit in pr
Slide 18: Thank You Q&A
THANK YOU Q&A 18
Slide 19: Appendix – I
Appendix – I Net Income to Adj. Net Income Available to Common Stockholders and Adj. EPS Reconciliations– EBITDA and Adjusted EBITDA Definitions Three-month period ended Note: Adjusted Net Income available to common stockholders and Adjusted Earnings per Share represent Net Income after earnings all
Slide 20: Appendix – II
Appendix – II EBITDA to Adjusted EBITDA Reconciliation for Q1 2020 and 12 Month Trailing EBITDA (Q2 2019 to Q1 2020) (' 000 US$) Q1 2020 12M Trailing EBITDA NET INCOME (' 000 US$) 32,776 (Q2 2019 - Q1 2020) Interest and Finance Costs 18,467 NET INCOME 133,429 Interest Income Interest and Finance Cos
Slide 21: Appendix III – ESG status at Costamare (1/2)
Appendix III – ESG status at Costamare (1/2) Internal governance Regulatory framework Activities IMO • SOLAS • Compliance with mandatory regulations & standards • MARPOL • Installation of Exhaust Gas Cleaning Systems (ECGS), fuel strategy including use of Low Sulphur SIP, shore power supply • IMO Ba
Slide 22: Appendix III – ESG status at Costamare (2/2)
Appendix III – ESG status at Costamare (2/2) Internal governance Regulatory framework Activities The ISM Code Compliance ILO Core Conventions Compliance Maritime Labor Convention Compliance Social Quality Safety Management System • Risk Management Compliance EU GDPR Awareness, monitoring, protection