Mpc Container Ships Asa · OSL:MPCC
Mpc Container Ships Asa — Debt Investor Presentation (March 2025)
51 slides from Mpc Container Ships Asa's debt investor presentation, Mar 14, 2025
Slide 1: Up to USD 75M Tap Issue – Credit Investor Presentation
March 14, 2025 UP TO USD 75M TAP ISSUE Credit Investor Presentation
Slide 2: Disclaimer and Important Information
DISCLAIMER AND IMPORTANT INFORMATION THIS DOCUMENT IS NOT FOR R ELEASE, PUBL ICATION OR DISTR IBUTION, IN WHOLE OR IN PAR T, DIR ECTL Y OR INDIR ECTLY, IN OR INTO OR FR OM THE UNITED STA TES OF AMER ICA, ITS TERR ITOR IES OR POSSESSIONS, JA PA N, A USTRAL IA , CA NA DA , OR TO A NY R ESIDENT THEREOF
Slide 3: Summary of Risk Factors
SUMMARY OF RISK FACTORS The risk factors below are a summary of the risk factors included in this presentation and no investor should make any investment decision without having reviewed and understood the risk factors included in the presentation. - The G roup fa ce s significa nt risks from gl oba
Slide 4: Issuer Characteristics and Confirmatory Work Undertaken
ISSUER CHARACTERISTICS AND CONFIRMATORY WORK UNDERTAKEN ISSUER CHARACTERISTICS CONFIRMATORY WORK UNDERTAKEN Business overview » The Issuer will sign a “Declaration of Completeness” and has concluded a “Bring down due diligence call”, among others confirming to the Managers that the marketing materia
Slide 5: Agenda
01 TRANSACTION OVERVIEW 02 KEY CREDIT HIGHLIGHTS 03 MARKET OVERVIEW 04 RISK FACTORS 05 APPENDIX MPC Container Ships | Credit Investor Presentation | 5
Slide 6: Transaction Summary
TRANSACTION OVERVIEW TRANSACTION SUMMARY TRANSACTION OVERVIEW PRO-FORMA CAPITALIZATION » MPCC is a leading global container shipping company that owns and operates a fleet of 58x feeder container ships. 3 smaller non-core vessels have been sold as part of its fleet optimization efforts USDm Q4 2024
Slide 7: Summary of Terms and Conditions
TRANSACTION OVERVIEW SUMMARY OF TERMS AND CONDITIONS Issuer: MPC Container Ships ASA Status: Senior unsecured sustainability-linked Outstanding Bonds: USD 125 million (prior to the contemplated tap issue) Tap Issue Amount: Up to USD 75 million Maximum Issue Amount: USD 200 million Purpose of the Tap
Slide 8: Committed to Making the MPCC Fleet More Environmentally Friendly
TRANSACTION OVERVIEW COMMITTED TO MAKING THE MPCC FLEET MORE ENVIRONMENTALLY FRIENDLY SUSTAINABILITY-LINKED FINANCING FRAMEWORK SECOND PARTY OPINION FROM AMERICAN BUREAU OF SHIPPING (“ABS”) The Sustainability-Linked Financing Framework is aligned with Second Party Opinion¹: ICMA’s Sustainability-Lin
Slide 9: Key Credit Highlights
TRANSACTION OVERVIEW KEY CREDIT HIGHLIGHTS Leading position in the » A key partner for the leading liners, as the #1 tonnage provider in the <5.5k TEU (twenty-foot equivalent unit) segment with a global footprint. intra-regional » Attractive fleet of increasingly modern tonnage, having invested subs
Slide 10: Presenting Team
TRANSACTION OVERVIEW PRESENTING TEAM Constantin Baack, CEO Served as CEO since foundation of the company in April 2017. Mr. Baack has 20 years of operational, management and investment experience in shipping, corporate strategy, capital markets, finance and alternative assets. Moritz Fuhrmann, Co-CE
Slide 11: Agenda
01 TRANSACTION OVERVIEW 02 KEY CREDIT HIGHLIGHTS 03 MARKET OVERVIEW 04 RISK FACTORS 05 APPENDIX MPC Container Ships | Credit Investor Presentation | 11
Slide 12: Market-Leading Container Ship Tonnage Provider with Strong Charter Backlog
KEY CREDIT HIGHLIGHTS MARKET-LEADING CONTAINER SHIP TONNAGE PROVIDER WITH STRONG CHART ER BACKLOG AND EARNINGS VISIBILITY Developments since Sep.24 59 vessels #1 position USD ~800m With total capacity of ~141k Largest tonnage provider Asset coverage from 37 TEU and USD ~1.5bn market in intra-regiona
Slide 13: The Feeder Market Is Firming Up
KEY CREDIT HIGHLIGHTS THE FEEDER MARKET IS FIRMING UP CHARTER PERIODS AND REDELIVERY SPREADS THE FEEDER MARKET IS FIRMING UP HARPEX 2nd Hand Price Index Months 2nd Hand Price Index Avg. Period (1-5.1k TEU) 5,000 140 HARPEX 30 Redelivery spread (1-5.1k TEU) 4,500 HARPEX Avg. 2016-2019 120 4,000 3,500
Slide 14: Strong Charter Backlog Secured in Top Liner Counterparts
KEY CREDIT HIGHLIGHTS MPCC HAS A STRONG CHARTER BACKLOG SECURED IN TOP LINER COUNTERPA RTS ROBUST BACKLOG PROVIDES EARNINGS VISIBILITY1,2,3 CHARTER BACKLOG DEVELOPMENT AND COUNTERPARTIES Forward charter backlog2,3/ Proj. USD 1.1bn / 0.7bn EBITDA2,3,4 Contracted forward TCE (USD per day)1,3,5,6 23,41
Slide 15: Prudent and Selective Approach to Fleet Renewals
KEY CREDIT HIGHLIGHTS A PRUDENT AND SELECTIVE APPROACH TO FLEET RENEWALS HELPS MAINTAI N A COMPETITIVE POSITION FOR THE FUTURE S&P ACTIVITY 2024 STRATEGIC APPROACH TO FLEET RENEWAL AND OPTIMIZATION Sales Acquisitions » Continued use of the S&P and charter market to optimize fleet towards younger and
Slide 16: Values on the Rise, but Charter Market Helps De-Risk Investments
KEY CREDIT HIGHLIGHTS VALUES ON THE RISE, BUT THE CHARTER MARKET HELPS DE -RISK INVESTMENTS …BUT FIRMING CHARTER MARKET POINTS TO …SIGNIFICANTLY DE-RISKING ASSET VALUES ARE ON THE RISE… STRONG, FIXED EBITDA CONTRIBUTION… INVESTMENTS INTO MODERN TONNAGE 60 2.5k TEU grd - 5yr (USDm) 2.5k TEU grd - 3yr
Slide 17: Continued Strong Financial Metrics
KEY CREDIT HIGHLIGHTS CONTINUED STRONG FINANCIAL METRICS REVENUE AND EBITDA (USDm) EQUITY RATIO Revenues Book Equity / Total Assets 711 75% 79% EBITDA 617 70% 66% 522 518 541 56% 61% 385 349 290 172 16 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 PF 2024² CASH AND CASH EQUIVALENTS1 (USDm) NET L
Slide 18: Financial Strategy Ensures Low Financial Risk
KEY CREDIT HIGHLIGHTS MPCC’S FINANCIAL STRATEGY ENSURES LOW FINANCIAL RISK BY MATCHING LONGTERM EARNINGS VISIBILITY WITH LIMITED LEVERAGE UNSECURED SUSTAINABILITY-LINKED BOND USDm 200 Up to USD 75m tap issue September 2024 bond issue Debt Outstanding4 ENCUMBERED VESSELS1 DEBT-FREE ENCUMBERED VESSELS
Slide 19: Cementing the Position as the Leading Modern Tonnage Provider
KEY CREDIT HIGHLIGHTS CEMENTING THE POSITION AS THE LEADING MODERN TONNAGE PROVIDER ACTIVELY USING THE S&P MARKET TO OPTIMIZE FLEET COMPOSITION SEASONED ISSUER SECURING ATTRACTIVE FINANCING TERMS Toolbox consisting of RCF and Nordic High Yield bonds » MPCC continuously evaluates possible accretive S
Slide 20: Track Record of Executing Selective Fleet Renewals
KEY CREDIT HIGHLIGHTS STRONG TRACK RECORD OF EXECUTING ON SELECTIVE FLEET RENEWALS TO OPTIMIZE FLEET PORTFOLIO AND IMPROVE BALANCE SHEET FLEXIBILITY… GROWTH PHASE: FLEET BUILD-UP STRATEGIC EXECUTION PHASE: FLEET OPTIMIZATION Q4 2024 Q3 2021 End of growth phase 140 120 100 80 REVENUE BACKLOG 60 1.1 1
Slide 21: Continuing to Deliver on the Proven Credit Friendly Strategy
KEY CREDIT HIGHLIGHTS …AND CONTINUING TO DELIVER ON THE PROVEN CREDIT FRIENDLY STRATEG Y CAPITAL ALLOCATION Strong commitment to all stakeholders ✓ USD 726m market cap with strong trading liquidity and several large institutional shareholders1 Selective, accretive acquisitions and retrofits ✓ US
Slide 22: Agenda
01 TRANSACTION OVERVIEW 02 KEY CREDIT HIGHLIGHTS 03 MARKET OVERVIEW 04 RISK FACTORS 05 APPENDIX MPC Container Ships | Credit Investor Presentation | 22
Slide 23: MPCC Specializes in the Intra-Regional Feeder Segment
MARKET OVERVIEW MPCC SPECIALIZES IN THE INTRA-REGIONAL FEEDER SEGMENT OVERVIEW OF THE GLOBAL CONTAINER FLEET DIFFERENT SIZES OPERATE DIFFERENT TRADE ROUTES 0 500 1,000 1,500 2,000 2,500 # vessels MPCC & feeder segment serves intra-regional <1k TEU 1,383 Operates in similar trades as MPCC, although m
Slide 24: Container Shipping Trends Influenced by Global Trade
MARKET OVERVIEW CONTAINER SHIPPING TRENDS ARE DIRECTLY INFLUENCED BY GLOBAL TRAD E GDP GROWTH & GLOBAL CONTAINER SEABORNE TRADE Percent GDP Growth 14 2000-19 Avg. GDP Growth World Seaborne Container Trade (TEU) 12 10 8 6 4 Ø 3.7 2 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 20
Slide 25: Global and Intra-Regional Supply/Demand Development
MARKET OVERVIEW GLOBAL AND INTRA-REGIONAL SUPPLY/DEMAND DEVELOPMENT TOTAL MARKET INTRA-REGIONAL MARKETS % % 12 10 Supply growth (Net fleet growth) 10.5 Supply growth (Net fleet growth) Demand growth (Container trade growth) 8 Demand growth (Container trade growth) 10 8.3 4.2 5.6 8 6 6.2 1.7 5.8 3.7
Slide 26: Ageing Fleet and Low Orderbook in MPCC Segment
MARKET OVERVIEW AGEING FLEET AND LOW ORDERBOOK IN MPCC SEGMENT AGE STRUCTURE OF FLEET AND ORDERBOOK BY NUMBER OF VESSELS OB as % % of fleet Fleet Orderbook of fleet >20 years >25y 21-25y 729 >12k TEU 379 55% 0% 16-20y 11-15y 675 8-12k TEU 180 27% 6% <10y MPCC FOCUS 1,545 64 282 3-8k TEU 92 6% 22% 2,
Slide 27: Charter Markets Hold Steady Amid Growing Uncertainties
MARKET OVERVIEW CHARTER MARKETS HOLD STEADY AMID GROWING UNCERTAINTIES FORWARD AVAILABILITY DROPPED SIGNIFICANTLY DURING 2024 CHARTER PERIODS STILL INCREASE No. of Vessels Months 1,400 5-6 months 30 Avg. Period (1-5.1k TEU) 3-4 months Redelivery spread (1-5.1k TEU) 1,200 1-2 months 1,000 20 17.2 800
Slide 28: Strong Secondhand Demand and Even Stronger Charter Rates
MARKET OVERVIEW STRONG SECONDHAND DEMAND AND EVEN STRONGER CHARTER RATES SECONDHAND PRICES AND TIME-CHARTER RATES HARPEX 2nd Hand Price Index 5,000 140 2nd Hand Price Index HARPEX HARPEX Avg. 2016-2019 120 4,000 +154% 100 3,000 +42% 80 60 2,000 40 1,000 20 810 Ø 500 0 0 Jan.-16 Jan.-17 Jan.-18 Jan.-
Slide 29: 2025 Market Outlook
MARKET OVERVIEW 2025 MARKET OUTLOOK KEY TOPIC DESCRIPTION » A potential return to the Red Sea could reduce average transport distances by ~12%, triggering reduced weekly cargo demand while networks are re- Red Sea arranged. » Continuously bypassing the Red Sea maintains the 12% TEU-mile boost » Gene
Slide 30: Agenda
01 TRANSACTION OVERVIEW 02 KEY CREDIT HIGHLIGHTS 03 MARKET OVERVIEW 04 RISK FACTORS 05 APPENDIX MPC Container Ships | Credit Investor Presentation | 30
Slide 31: Risk Factors (1/7)
RISK FACTORS RISK FACTORS (1/7) 1 RISK FACTORS An inve stme nt in the bonds (the "Bonds") invol ves inhe re nt risks. The se risks incl ude , but a re not l imite d to, risks attributa bl e to MP C Conta ine r Ship s ASA (the "Issuer" or the "Comp a ny"), its subsidia ries (together with the Issue r
Slide 32: Risk Factors (2/7)
RISK FACTORS RISK FACTORS (2/7) 1.2 Risks related to the business of the Group 1.2.1 Th e G r oup is de p endent on r e venue ge n erated f r om con tain er tr an sp ortation All the Group's revenues for the q uarter which ended 31 December 2024 a re generated from providing tonna ge capa city on ti
Slide 33: Risk Factors (3/7)
RISK FACTORS RISK FACTORS (3/7) 1.2.7 Th e G r oup is de p endent up on its sour ce d cor p or ate m an agement se r vices The Group source s ma nage me nt se rvice s from MP C Münchme yer P e te rse n Cap ital AG ("MP C"). The se rvice s rel ate to a dministra tive a nd corp ora te service s within
Slide 34: Risk Factors (4/7)
RISK FACTORS RISK FACTORS (4/7) 1.3.5 The vessels of the Group may be suspected of being involved in smuggling operations The Group transports containers inter al ia between countries in Africa a nd Central /South America a ssociated with increa sed cross-border controls due to a higher frequency of
Slide 35: Risk Factors (5/7)
RISK FACTORS RISK FACTORS (5/7) 1.5 Risk related to laws and regulation 1.5.1 C om pliance with a wide var ie ty of com p lex laws an d r e gulations in cluding e n vir onmental laws an d r e gulations m ay be e xp ensive an d n on -com pliance m ay h ave an adve r se e ffe ct on th e Gr oup 's r e
Slide 36: Risk Factors (6/7)
RISK FACTORS RISK FACTORS (6/7) 1.5.5 Op e r ations in p olitically un stable r e gions an d le gal syste m s all ove r th e wor ld m ay cause busin ess in te r r uptions, r e p utational dam age an d com p liance r isks The G roup tra nsports products a cross a wide va rie ty of national jurisdicti
Slide 37: Risk Factors (7/7)
RISK FACTORS RISK FACTORS (7/7) 1.6.6 I n dividual Bon dh older s do n ot h ave th e r igh t of action again st th e I ssue r In a ccorda nce with the Bond Terms, the bond trustee will represe nt all Bondhol de rs in all matte rs rel ating to the Bonds and the Bondhol ders a re p re ve nted from ta
Slide 38: Agenda
01 TRANSACTION OVERVIEW 02 KEY CREDIT HIGHLIGHTS 03 MARKET OVERVIEW 04 RISK FACTORS 05 APPENDIX MPC Container Ships | Credit Investor Presentation | 38
Slide 39: KPI Development and Progress of Sustainability Linked Target
APPENDIX KPI DEVELOPMENT AND PROGRESS OF SUSTAINABILITY LINKED TARGET (SL T) -45.00% 24.28 » KPI on reduction of the fleet average carbon intensity Fleet average Annual Efficiency Ratio (AER) on a Well-to- Wake basis (according to GLEC Framework Version 3.0) » Sustainability Performance Target (SLT)
Slide 40: MPC Capital - Leading Investment Manager and Operator
APPENDIX MPC CAPITAL - LEADING INVESTMENT MANAGER AND OPERATOR OF MARITIME A ND ENERGY INFRASTRUCTURE Established in 1994, MPC Capital is a leading investment and asset manager, powering profitable growth in maritime and energy infrastructure with a proven track record 280 EMPLOYEES EUR 5.1 BILLION
Slide 41: MPCC Charters Out Its Vessels to Liner Companies on Time Charters
APPENDIX MPCC CHARTERS OUT ITS VESSELS TO LINER COMPANIES ON TIME CHARTER S, ENSURING EARNINGS VISIBILITY AND DEBT SERVICING CAPACITY TONNAGE PROVIDERS – KEY CHARACTERISTICS LINER COMPANIES – KEY CHARACTERISTICS » Vessels are operated on regularly scheduled service » Vessels are chartered out to lin
Slide 42: Strong Growth to Become a Leading, Well-Capitalized Tonnage Provider
APPENDIX THE COMPANY HAS UNDERGONE STRONG GROWTH TO BECOME A LEADING, WEL L- CAPITALIZED TONNAGE PROVIDER 2017 2018 2019 2020 2021 2022 2023 2024 CORPORATE » Founded with strong » Listed on the Oslo » Fleet renewal » Recapitalization » Sharp upturn in » Continued portfolio » Increasing contract » In
Slide 43: Overview of Current Key Terms on Existing Debt Portfolio
APPENDIX OVERVIEW OF CURRENT KEY TERMS ON EXISTING DEBT PORTFOLIO Outstanding Facility Type Total capacity Interest rate # Contractual repayment profile Maturity amount DB - Greenbox Term Loan (pre-del. finance) USD 35.0m USD ~54.5m 230bps + SOFR 2 23 x semi-annual installments of 3.33% + 23.34% bal
Slide 44: Corporate Structure
APPENDIX CORPORATE STRUCTURE MPC Container Ships ASA (as per March 05, 2025) 50%(6) 100%(1) 100% 100% 100% 100% 100% 90% 90.1%(2) 50%(7) 100% Palmaille 75 2. Bluewater Holding 5% 5% 12 vessels Einundachtzigste MPCC Second Financing MPCC Fourth Financing MPCC FIRST ECOFLEET AS Shipping MPCC MPCC NCL
Slide 45: Condensed Consolidated Statement of Profit or Loss
APPENDIX CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS In USD thousands Q4 2024 Q4 2023 FY 2024 FY 2023 (unaudited) (unaudited) (unaudited) (audited) Operating revenues 129,951 152,830 540,860 711,282 Commissions (3,202) (4,364) (14,433) (20,000) Vessel voyage expenditures (5,726) (1,303) (19,1
Slide 46: Consolidated Statement of Financial Position
APPENDIX CONSOLIDATED STATEMENT OF FINANCIAL POSITION Dec 31, 2024 Dec 31, 2023 Dec 31, 2024 Dec 31, 2023 in USD thousands in USD thousands (unaudited) (audited) (unaudited) (audited) ASSETS EQUITY AND LIABILITIES Non-current Assets Equity Share capital 48,589 48,589 Vessels 1,003,460 691,291 Share
Slide 47: Condensed Consolidated Statement of Cash Flow
APPENDIX CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW FY 2024 FY 2023 FY 2024 FY 2023 in USD thousands in USD thousands (unaudited) (audited) (unaudited) (audited) Profit (loss) before income tax 266,371 325,754 Dividends paid (204,359) (293,134) Income tax expenses paid - (783) Additions from non-
Slide 48: Fleet Employment Overview
APPENDIX FLEET EMPLOYMENT OVERVIEW MPCC Current No Vessel Cluster Charterer Remark Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Min / Max Fixture (USD/day) 1 AS SVENJA 1,700 grd CMA CGM Retrofit 21,000 DD1 Feb-25 / Feb-25 2 AS NORA 3,500 grd CMA C
Slide 49: Fleet Employment Overview
APPENDIX FLEET EMPLOYMENT OVERVIEW MPCC Current No Vessel Cluster Charterer Remark Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Min / Max Fixture (USD/day) 26 STADT DRESDEN 2,800 gls Hapag-Lloyd 19,500 Jun-26 / Sep-26 27 AS CHRISTIANA 2,800 grd Se
Slide 50: Fleet Employment Overview
APPENDIX FLEET EMPLOYMENT OVERVIEW MPCC Current No Vessel Cluster Charterer Remark Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Min / Max Fixture (USD/day) 51 AS NARA 3,500 gls Maersk 25,150 Jul-27 / Sep-27 52 AS NINA 3,500 gls Maersk Retrofit 18,
Slide 51: MPC Container Ships
MPC __ CONTAINER SHIPS '
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