Precious Shipping Public Co., Ltd. · SET:PSL

Precious Shipping Public — Investor Presentation (August 2021)

44 slides from Precious Shipping Public's investor presentation, August 2021

  1. Slide 1: Precious Shipping Public Company Limited – Investor Presentation August 2021

    Precious Shipping Public Company Limited PSL Investor Presentation August 2021

  2. Slide 2: Evolution Of The Baltic Dry Index Since 2016

    Evolution Of The Baltic Dry Index Since 2016 4,500 11 Year high 4,201– 24 Aug 2021 4,000 4,195– 26 Aug 3,500 2021 3,000 5 Year high 2,500 2,518 – 4 Sep 2019 2,000 1,500 1,000 500 0 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Source: Clarksons, 26 August 2021 P

  3. Slide 3: Y-O-Y Analysis Of The Baltic Dry Index

    Y-O-Y Analysis Of The Baltic Dry Index 4500 5,000 11 year High 4,201– 24 Aug 2021 4000 4,195 – 26 Aug 2021 4,000 3500 3000 3,000 2500 2000 2,000 1500 1000 1,000 500 00 01-Jan 4-Jan 30-Jan 28-Feb 3-Feb 28-Mar 4-Mar 26-Apr 3-Apr 25-May3-May 23-Jun 22-Jul 2-Jun 20-Aug 18-Sep 1-Aug 2-Jul 17-Oct 15-Nov 3

  4. Slide 4: Is China's Import Growth Sustainable?

    Is China’s Import Growth Sustainable? Latest available Data points on China FH 2021 Vs FH 2020.  China’s Iron Ore imports for FH 2021 was 561.39 MMT Vs 547.1 MMT for FH 2020 up by 2.61%.  China’s Coal imports in FH 2021 was 139.6 MMT Vs 174.2 MMT for FH 2020 down by 19.9%.  China’s Steel producti

  5. Slide 5: PSL Cargo Exposure: 2016 – 2020

    PSL Cargo Exposure: 2016 – 2020 Bulk cargo in the aggregate amount of 12.3 MMT, 11.7 MMT, 12.7 MMT, 13.72 MMT, 12.4MMT was carried on PSL ships in 2016, 2017, 2018, 2019 and 2020 respectively. 3.5 3.0 2.5 MMT 2.0 1.5 1.0 0.5 0.0 Ore / Conc. Salt Scrap Steel Other cargoes Agri Prods Logs Limestone Pe

  6. Slide 6: Historical Growth In Seaborne Drybulk Trade – Billion Tonne-Miles

    Historical Growth In Seaborne Drybulk Trade – Billion Tonne-Miles Seaborne Drybulk Trade All Units In Billion Tonne-Miles 2016 2017 2018 2019 2020 2021F 2022F Iron Ore 7,936 8,190 8,195 8,029 8,414 8,716 8,837 Coal (includes Lignite) 4,982 5,252 5,566 5,505 4,997 5,263 5,351 Grains (includes Soybean

  7. Slide 7: Historical Growth In Seaborne Minor Bulk Trade – Billion Tonne-Miles

    Historical Growth In Seaborne Minor Bulk Trade – Billion Tonne-Miles Seaborne Minor Bulk Trade All Units In Billion Tonne-Miles 2016 2017 2018 2019 2020 2021F 2022F Steel Products 1,812 1,761 1,821 1,683 1,542 1,643 1,685 Forest Products 2,439 2,492 2,592 2,675 2,681 2,864 2,975 Other Minor Bulk 6,8

  8. Slide 8: Dry bulk Supply Side Changes

    Dry bulk Supply Side Changes  Most of the recycling in 2020 and 2021 has occurred in the Cape size sector.  In response to decreased scrapping in FH 2021, scrap prices have begun to trend upward.  Recycling activities in the subcontinent face three issues - start of Ramadan from 14th April; onset

  9. Slide 9: Confirmed Orders As Of 30 June 2021 (M DWT) – 31 Dec 2023

    Confirmed Orders As Of 30 June 2021 (M DWT) – 31 Dec 2023 15 Total Confirmed Orders Until 2023 Year M DWT % of Fleet 2021 17.67 1.91% 12 2022 24.64 2.67% 2023 7.65 0.83% Total Orderbook 49.96 5.41% 10.02 Geared 15.56 4.78% 9 8.18 Gearless 34.40 5.75% 7.14 6.22 6 4.3 3.7 3.06 3.22 3 1.49 1.27 1.11 0.

  10. Slide 10: Dry bulk Fleet As Of 30 June 2021

    Dry bulk Fleet As Of 30 June 2021 Fleet Overview Ship Type DWT Range (MT) Ships Av Age (yrs) Total DWT (m MT) Av DWT (MT) % of DWT Handysize 10,000 – 39,999 4,087 12.54 110.89 27,133 12% Supra/Ultramax 40,000 – 69,999 3,820 10.57 214.9 56,256 23.25% Panamax 70,000 – 89,999 2,507 10.43 199.18 79,451

  11. Slide 11: Putting Orderbook Figures In Context – The Overall Dry bulk Fleet

    Putting Orderbook Figures In Context – The Overall Dry bulk Fleet 1000 100% Drybulk Fleet 934 907 900 All Figures In M DWT Unless 873 90% Otherwise Indicated (30 June 2021) 841 814 Total Fleet 924.24 772 790 800 754 80% Total Orderbook 49.96 719 700 Orderbook % Fleet 5.41% 677 70% % Fleet Over 20yrs

  12. Slide 12: Putting Orderbook Figures In Context – Geared Vessels Only

    Putting Orderbook Figures In Context – Geared Vessels Only 80% 80% 60% 60% 40% 17.81% 40% 14.26% 20% 20% 0% 0% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Orderbook % of Fleet (Handy) Orderbook % of Fleet (Supras/Ultras) % of Fleet Over 20y (Supras/Ultras) % of Fleet Over 20y (Handy) % 20

  13. Slide 13: PSL's Strategy

    PSL’s Strategy Precious Shipping PCL 13

  14. Slide 14: Current and Rolling 4 Year Forward Book (30 June 2021)

    Current and Rolling 4 Year Forward Book (30 June 2021) Contract USD 31.3 m USD 29.48 m USD 27.95 m USD 28.03 m USD 27.95 m value 17,500 100% 15,316 15,316 15,316 14,802 14,219 14,000 80% 13,140 13,140 13,140 13,176 13,140 10,500 60% 7,000 40% 17% 15% 3,500 14% 14% 14% 20% 2,190 1,992 1,825 1,830 1,8

  15. Slide 15: Signs Of A Recovery – This time it is different!

    Signs Of A Recovery – This time it is different! Daily average Time % Change 2009 2016 2020 Q1, 2021 Q2, 2021 Charter rate (Q2 Over Q1 ’21) Capes 42,656* 7,388** 13,073** 17,126** 31,120** 82% Panamax 19,303* 5,562* 9,923** 18,493** 26,052** 41% Supras 17,338* 6,164** 8,189** 16,633** 25,538** 54% H

  16. Slide 16: Average Benchmark Time Charter YOY Change

    Average Benchmark Time Charter YOY Change (Q1 ’21 , Q2 ’ 21 & July ’ 21) Q1’21 YOY Q2 ’21 YOY July’21 YOY Category In USD Change In USD Change In USD Change Cape size TC Avg Daily (180K) 17,126 275 % 31,120 213% 30,395 24% Panamax TC Avg Daily (82K) 18,493 161 % 26,052 253% 34,133 175% Supramax TC A

  17. Slide 17: Average Q1 & Q2 2021 Benchmark Time Charter Rates versus Ten-Year Average

    Average Q1 & Q2 2021 Benchmark Time Charter Rates versus Ten-Year Average Avg 10 Yr Q1 Q1’21 Avg 10 Yr Q2 Q2 ‘21 Vessel type Change in % Change in % In USD In USD In USD In USD Cape size (180K) 8,428 17,126 103% 9,474 31,120 228% Panamax (82K) 8,477 18,493 118% 8,679 26,052 200% Supramax (58K) 8,626

  18. Slide 18: Average Q1-Q4 Benchmark Time Charter Rates versus Ten-Year Averages

    Average Q1- Q4 Benchmark Time Charter Rates versus Ten-Year Averages Average of Average of Average of Average of Period %Change %Change %Change %Change Cape BPI BSI BHSI Qtr1 8,428 - 8,477 - 8,626 - 7,436 - Qtr2 9,474 12% 8,679 2% 9,079 5% 7,684 3% Qtr3 16,219 71% 10,230 18% 10,247 13% 8,160 6% Qtr4

  19. Slide 19: DWT of Dry Bulk ships ordered in FH'21 versus FH'19 and FH'20

    DWT of Dry Bulk ships ordered in FH’21 versus FH’19 and FH’20 Change Change Change Change Change Change Gearles Change Change Avg. Geared Year 2021 vs. 2021 vs. MDWT 2021 vs. 2021 vs. 2021 vs. 2021 vs. s 2021 vs. 2021 vs. BDI MDWT 2020 2019 2020 2019 2020 2019 MDWT 2020 2019 2019 895 - - 15 - - 4.05

  20. Slide 20: Market Segmentation Q2 2021

    Market Segmentation Q2 2021 Index PSL Avg Q2 2021 Market PSL Performance Index PSL Avg PSL Ship Index Speed/Con Speed/Con Average Av. TC Av. TC vs Ship DWT Ship DWT Number (1) (1) Index Rate (2) Rate Benchmark Laden: Laden: 15 Handysize 12K/18T 12K/20T BHSI & USD USD 38,000 30,496* 1250 -30% (Handys

  21. Slide 21: 3 Main Reasons for our Q2 underperformance

    3 Main Reasons for our Q2 underperformance 1. Our ships are ‘different’ from the index ships. On an apples-to-apples comparison, our Handy ships are ranked 25% below and the Supras are 10% below the index ship TC rates. 2. If we see the way the market has gone up, virtually in a straight line during

  22. Slide 22: Reasons for Q2 Underperformance

    Reasons for Q2 Underperformance 1. PSL ship at discount compared to Index ship 2. If Vessels are fixed on 1st day of the quarter. Performance Q2 Avg. Index PSL Ship at Index rate Index TC rate Q2 Avg Index Vessel Vessel VS rate Discount after discount 01.04.21 TC Benchmark BHSI 22,507 -25%* 16,880 B

  23. Slide 23: PSL True Performance versus Benchmark

    PSL True Performance versus Benchmark PSL long Q2 average PSL average PSL ship Difference if term time PSL true PSL true Index time time charter difference vessel fixed charter time Type of {A*(C+D+E)} performance charter rate in Rate in Q2 from Index on 1st day ships charter rate vessel = (F) in $

  24. Slide 24: Key Takeaways

    Key Takeaways  The Covid-19 outbreak has had a major impact on global economic activity in 2020.  Chinese state governments issued CNY 1.22 trillion of Special Bonds in Jan-Apr 2020, up 51% year-on-year.  China has an USD 667b steel intensive fiscal stimulus plan announced on 22 May 2020. In resp

  25. Slide 25: COVID-19's Impact

    COVID-19’s Impact Precious Shipping PCL 25

  26. Slide 26: Impact On Shipping – Container Line

    Impact On Shipping – Container Line  Sea-Intelligence predicted a $23bn loss for container shipping in April 2020. In November 2020 it forecast a $15bn profit, marking the greatest turnaround in fortune in the 64-year history of containerization.  Global container trade was down 1.85% in 2020 comp

  27. Slide 27: Impact On Shipping – Dry bulk

    Impact On Shipping – Dry bulk  Drybulk was adversely affected in FH 2020 due to Covid-19.  As China stabilized from Covid-19 in May, the freight market improved from SH 2020.  Freight rates moved upwards as the ROW opened from the end of May 2020.  FH 2021 is the highest FH in the last decade in

  28. Slide 28: Dry Bulk Supply Side Forecast Changes

    Dry Bulk Supply Side Forecast Changes Based on 2021 data (annualized), PSL projects net fleet growth for 2021 at 2.96%. FH 2021 Net Fleet Growth = 17.25 MDWT, +1.9% FY 2021 Net Fleet Growth = 26.82 MDWT, +2.96% 924.24 933.8 26.72 17.67 projected 924.24 projected 906.99 deliveries deliveries Slippage

  29. Slide 29: The Recovery – Amazing Policy Response By Governments

    The Recovery – Amazing Policy Response By Governments  Countries across the globe have engaged in a Global Stimulus combination of monetary and fiscal stimulus. All Figures In USD bn Countries Stimulus Amount  Policies are aimed at protecting household US 8,584 consumption and ensuring businesses

  30. Slide 30: Investor Relations Activities – FH of 2021

    Investor Relations Activities – FH of 2021 The Company has joined many events for press/analyst briefings, which are attended personally by the Managing Director, the Executive Directors and/or IR team. Some of the major events in which the Company participated in the first half of 2021 are enumerat

  31. Slide 31: Financials

    Financials Precious Shipping PCL 31

  32. Slide 32: Highlights for Q2'2021

    Highlights for Q2’2021  PSL206A was fully repaid on 23rd April 2021.  CA-CIB Loan amounting to USD 38.35 million was signed on 21st June 2021. The proceeds were used to redeem THB 1,163.16 million of PSL211A’s outstanding on 22nd July 2021.  IFC, EXIM and TTB Loan amounting to USD 85.00 million w

  33. Slide 33: Financial Profile

    Financial Profile H1-2021 2020 2019 2018 2017 2016 Cash & Cash Equivalents $39.6m $36.6m $39.2m $56.8m $56.7m $74.7m Total Assets $680.8m $712.3m $831.1m $857.9m $882.3m $901.9m Gross Debt $268.9m $318.3m $391.7m $432.8m $469.4m $482.1m Net Debt $229.3m $281.7m $352.5m $376.0m $412.6m $407.4m Equity

  34. Slide 34: Operating Expenses

    Operating Expenses  These are the fixed costs required to run a ship and are evenly spread over 365 days.  Our operating costs per ship per day for 2020 and H1’2021 were USD 4,705 and 4,988 respectively. Breakdown of costs: 2020 H1’2021 Particulars USD % USD % Crew costs 2,302 48.93% 2,346 47.03%

  35. Slide 35: Operating Expenses Comparison

    Operating Expenses Comparison  OPEX Comparison with Industry compiled by BDO LLP  OPEX excluding dry dock and special survey cost  Industry OPEX for 2020 will be published in October 2021 For Years 2015 2016 2017 2018 2019 2020 Particulars Industry PSL Industry PSL Industry PSL Industry PSL Indus

  36. Slide 36: New Regulations – EEXI and CII

    New Regulations – EEXI and CII Precious Shipping PCL 36

  37. Slide 37: Energy Efficiency Existing Ship Index or EEXI

    Energy Efficiency Existing Ship Index or EEXI 1. What is EEXI? It is a technical or design efficiency index which requires a series of one-time technical adjustments for non-compliant existing vessels. It describes the CO2 emissions per cargo ton-mile, by determining the standardized CO2 emissions r

  38. Slide 38: Carbon Intensity Indicator or CII

    Carbon Intensity Indicator or CII 1. What is CII? It is an in-service or operational efficiency index, which aims to ensure continuous improvement in a vessel's emissions. The CII framework regulates the operational carbon intensity of a vessel (i.e., the carbon emissions per unit of ‘transport work

  39. Slide 39: PSL and ESG

    PSL and ESG Precious Shipping PCL 39

  40. Slide 40: PSL's ESG Footprint

    PSL’s ESG Footprint Environment:  PSL is always reducing its environmental impact via new technologies and innovations. We replaced older and less fuel-efficient vessels between 2013 and 2017 with “eco-vessels” resulting in reduction of CO2 emissions. The PSL fleet's average gm CO2/ton*nm has reduc

  41. Slide 41: Shareholder's returns

    Shareholder’s returns Precious Shipping PCL 41

  42. Slide 42: Total Return to Shareholders: 1993 to August 2021

    Total Return to Shareholders: 1993 to 26 August 2021 600 75 496 512 520 458 480 450 423.2 60 440 440 440 440440 440 440 351.2 300 45 Baht 239.2 150 149.2 30 72 4 6 9 6 25 6 67 82.2 90 112 35 22 16 16 8 0 0 0 0 0 0 0 51 61 15 -85 -10 -45 -70 -85 -81 -75 -85 -76 -80 -150 0 Inflow/Outflow Net Cash Posi

  43. Slide 43: Final Food For Thought

    Final Food For Thought  As described in the Industry section – Demand is growing faster than Supply growth, and this should be good for the next couple of years. Minor bulks, cargoes that PSL carries, are growing faster than other cargoes and certainly faster than supply growth in the geared sector

  44. Slide 44: Thank You !

    Thank You ! Precious Shipping Public Company Limited Website: www.preciousshipping.com | E-mail: psl@preciousshipping.com, ir@preciousshipping.com

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