2020 Bulkers Ltd. · OSL:2020
2020 Bulkers — Non-Deal Roadshow (November 2023)
11 slides from 2020 Bulkers's roadshow presentation, Nov 30, 2023
Slide 1: 2020 Bulkers Ltd. Company Presentation – Non-Deal Roadshow
2020 Bulkers Ltd. Company Presentation – Non-Deal Roadshow November 30, 2023 |
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by 2020 Bulkers Ltd. (the "Company") and is made November 30, 2023 solely for information purposes. The Presentation does not constitute any recommendation to buy, sell or otherwise transact with any securities issued by the Company
Slide 3: Drybulk values and rates have significant upside to historical levels
Drybulk values and rates have significant upside to historical levels 5 yr old vessel value upside to historical peak 1 year TC rates upside to historical peak 250% 60% 1000% 957% 60% 54% 900% 53.60% 207% 50% 50% 200% 800% 700% 40% 39%40% 147% 150% 600% 32% 30% 500% 30% 30% 429% 100% 24% 400% 20% 20
Slide 4: 2020 Bulkers Investment Case
2020 Bulkers Investment Case Fleet of 8 Scrubber-fitted Newcastlemax average age ~4 years Capesize ton-mile growth of 4.2% YTD 2023 Market cap ~$250 mln Low orderbook of 5.1% with limited Net debt $185 mln yard capacity before 2H 2027 40 consecutive monthly distributions Net profit positive every qu
Slide 5: Premium assets with strong commercial performance
Premium assets with strong commercial performance Peer group Net TCE Capesize / Newcastlemax 30 000 25 000 20 000 15 000 10 000 5 000 - Q4 22 Q1 23 Q2 23 Q3 23 2020 Bulkers Peer 1 Peer 2 Peer 3 Source: Company reports 5|
Slide 6: Market review
Market review 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 J F M A M J J A S O N D 2015-22 max-min range 2023 2015-22 average • Capesize ton-miles growing 4.2% YTD • Demand growth in Q3 was offset by unwinding of congestion to historically low levels Source: Shipping Intelligence
Slide 7: Our dividend potential is significant
Our dividend potential is significant Illustrative annualized FCF per share – all vessels trading spot 80 72 70 60 54 50 NOK per share 40 36 30 20 18 10 0 - 10,000 20,000 30,000 40,000 50,000 Capesize rate (Baltic 5TC) 50% of December 2023 covered at US$21,890, gross + scrubber benefit 55% of Q1 202
Slide 8: Capesize trade growth and fleet productivity
Capesize trade growth and fleet productivity Capesize ton-miles grew 4.2 % year to date Fleet congestion down to historically low levels Bauxite 36.00 Iron ore Grains 34.00 Pet coke 32.00 Cement/Clinker % of Capesize fleet in port, 7dma Agribulks 30.00 Manganese ore Aggregates 28.00 Copper ore Steel
Slide 9: Iron Ore
Iron Ore China Iron Ore Imports up 6% YTD Iron Ore inventories at seasonal lows 40% 160 150 30% 140 20% 130 Million Tonnes YOY Change 120 10% 110 100 0% 90 -10% 80 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 Week -20% jan. 17 jan. 18 jan. 19 jan. 20 jan. 21 jan. 22 jan.
Slide 10: Steel market
Steel market World ex-China monthly steel output - YoY China monthly steel output – YoY 50% 25% 40% 20% 15% 30% 10% 20% 5% 10% 0% 0% -5% -10% -10% -20% -15% -30% -20% -40% -25% Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 jan. 17 jan. 18 jan. 19 jan. 20 jan. 21 jan. 22 jan. 23 Source: Shipping I
Slide 11: Favorable supply side dynamics
Favorable supply side dynamics % of Capesize fleet on order Nominal orderbook vs existing fleet Limited yard capacity 140 400 ▪ Limited yard capacity before 2027 for 350 capesize / newcastlemax 120 300 ▪ Pricing ~$70 mill for a newcastlemax 100 with scrubber 250 ▪ Tightening payment terms 80 200 150