Costamare Inc. · NYSE:CMRE
Costamare — Investor Presentation (October 2019)
21 slides from Costamare's investor presentation, October 2019
Slide 1: Company Presentation October 2019
Company Presentation October 2019
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 Snapshot
COMPANY SNAPSHOT 3
Slide 4: Costamare Snapshot
Costamare Snapshot ▪ One of the largest independent owners of containerships / Fleet of 75 vessels (incl. 5 newbuilds). ▪ 45 years of experience in shipping and a dedicated containership owner since 1992. ▪ 2018 total acquisitions and newbuild orders of ca. 900m. ▪ Strong track record of uninterrupt
Slide 5: The Containership Industry
THE CONTAINERSHIP INDUSTRY 5
Slide 6: Container Trade & Average Vessel Size Deployment
Container Trade & Average Vessel Size Deployment Container Trade has grown every year apart from 2009 ▪ Global seaborne container trade growth has averaged 5% since 2005. ▪ USA and Europe are the biggest destinations of Fronthaul Container Trade, followed by Middle East, Latin America & Africa. ▪ Th
Slide 7: Chartered Tonnage is Integrated in Liners' Business Models
Chartered Tonnage is Integrated in Liners’ Business Models ▪ Liners charter-in more than half of the existing fleet and 41% of the containership orderbook. ▪ Liners may rely more on chartered vessels in the future as they shift their focus to: ➢ Upgraded Logistics Services ➢ Asset light business mod
Slide 8: Limited Competition Among Containership Owners
Limited Competition Among Containership Owners ▪ Top 15 owners account for: ➢ 65% of the total vessels ordered by containership owners ➢ 45% of the chartered fleet in the water ▪ Consolidation among containership owners is expected to continue in the future driven by: ➢ Financially distressed operat
Slide 9: Containership Supply / Demand Dynamics
Containership Supply / Demand Dynamics Supply / Demand are expected to balance out in 2020… …with a shrinking orderbook… 8.0% 25.0% 500,000 Trade Growth / Fleet Deployment Growth 7.0% Orderbook (%of Existing Fleet) 20.0% 6.0% 400,000 5.0% TEUs 15.0% 300,000 4.0% 200,000 10.0% 3.0% 100,000 2.0% 5.0%
Slide 10: Two-Tier Charter Market for most part of 2019
Two-Tier Charter Market for most part of 2019 Large size vessels (>6,500 TEUs) have outperformed smaller ones in 2019 Feeder Containership 1,700 TEU 6-12 Month TC rate Narrow Beam Containership 3,500 TEU 6-12 Month TC Rate Narrow Beam Containership 4,400 TEU 6-12 Month TC Rate Intermediate Container
Slide 11: Trade Tariffs a Threat to Container Trade But…
Trade Tariffs a Threat to Container Trade But… ▪ Asian countries (ex. China) demonstrate a potential to replace Chinese exports to North America. 11 Source: Clarksons Research Services – September 2019
Slide 12: IMO 2020 Sulphur Cap 'Wildcards' – Retrofitting
IMO 2020 Sulphur Cap ‘Wildcards’ – Retrofitting Sulphur cap regulations could drive fundamental upside from vessels time out of service for retrofit 12 Source: Clarksons Research Services – September 2019
Slide 13: IMO 2020 Sulphur Cap 'Wildcards' – Slow Steaming
IMO 2020 Sulphur Cap ‘Wildcards’ – Slow Steaming Sulphur cap could drive fundamental upside from reductions in speed to mitigate increased fuel costs 13 Source: Clarksons Research Services – September 2019
Slide 14: Costamare
COSTAMARE 14
Slide 15: Track Record
Track Record ▪ Profitability ➢ Consistently profitable since Company’s inception and as a public company from 2010. ➢ Average Return on Equity(1) (“ROE”) of 10.3% over the past 5 financial years (2014 – 2018). ▪ Risk Management ➢ Prioritize long term time charters (when available) for better earning
Slide 16: Fleet Overview
Fleet Overview ▪ Diversified fleet. ▪ Positioned to service all routes (major and minor). ▪ Investment focus on larger vessel (>6,500 TEUs) in the past 15 years. ▪ Expertise in the efficient operation of older vessels (average scrapping age of 27 years for the 23 vessels scrapped since our IPO. Size
Slide 17: Profitable Performance Throughout the Business Cycle
Profitable Performance Throughout the Business Cycle Average Return on Equity(1) (“ROE”) of 10.3% over the past 5 financial years (2014 - 2018) $m Index Value 600 120 500 100 400 80 300 60 200 40 100 20 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H 2019 Adjusted (2) (annualized) Reve
Slide 18: Appendix
APPENDIX 18
Slide 19: Costamare Corporate History
Costamare Corporate History After 20 years of sailing Costamare disposes November 2010, the The Company The Company The Company successfully experience on merchant of remaining bulk Company successfully successfully completes successfully completes a completes three new ships, Capt. Vasileios carrie
Slide 20: Reconciliation of Net Income to Adj. Net Income
Reconciliation of Net Income to Adj. Net Income Net Income to Adj. Net Income Available to Common Stockholders and Adj. EPS Reconciliation Three-month period ended Note: Adjusted Net Income available to common stockholders and Adjusted Earnings per Share represent Net Income after earnings allocated
Slide 21: Containerships are the Engine of International Trade
Containerships are the Engine of International Trade Shippers Product Shipped Liner Operators Vessel operators Containership Owners Source cargo Load and discharge Require movement of containers materials and finished goods Revenues: $ per box (TEU) through supply chains Own and operate vesse