Costamare Inc. · NYSE:CMRE
Costamare — Investor Presentation (February 2019)
21 slides from Costamare's investor presentation, February 2019
Slide 1: Company Presentation
Company Presentation February 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 and History
COMPANY SNAPSHOT AND HISTORY 3
Slide 4: Costamare Snapshot
Costamare Snapshot ▪ One of the largest independent owners of containerships / Fleet of 78 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 uninterrup
Slide 5: Costamare Corporate History
Costamare Corporate History After 20 years of sailing Costamare disposes November 2010, the The Company The Company The Company experience on merchant of remaining bulk Company successfully successfully successfully successfully ships, Capt. Vasileios carriers and completes initial completes complet
Slide 6: Containership Industry
Costamare Inc. CONTAINERSHIP INDUSTRY
Slide 7: Containerships are the Engine of International Trade
Containerships are the Engine of International Trade Shippers Product Shipped Liner Operators Vessel operator Require movement of Containership Owners materials and finished goods through supply Source cargo chain Load and discharge containers Revenues: $ per box (TEU) basis Own and operat
Slide 8: Container Trade & Average Vessel Size Deployed
Container Trade & Average Vessel Size Deployed Container Trade has grown every year apart from 2009 ➢ Global seaborne container trade growth has averaged 6.6% since 1998, with the only year posting a negative figure being 2009. ➢ USA and Europe are the biggest destinations of Fronthaul Container Tra
Slide 9: Chartered Tonnage is an Integral Part of Liners' Business Model
Chartered Tonnage is an Integral Part of Liners’ Business Model ➢ Liners charter in just over half of their vessels both existing and on order. ➢ Liners’ latest focus on logistics and more asset light business models will require greater reliance on chartered tonnage. ➢ Long term charters are awarde
Slide 10: Limited Competition
Limited Competition ▪ Top 15 owners account for: ➢ 60% of the chartered orderbook and ➢ 46% of the in the water chartered fleet. ▪ Consolidation / cooperation amongst containership owners is expected to continue in the future driven by: ➢ Financially distressed operators ➢ Lenders with seized vessel
Slide 11: Supply / Demand Projection
Supply / Demand Projection Container Trade is Growing Across all Regions ➢ Demand is expected to exceed supply both in 2019 and 2020. ➢ Demand Growth is strong across the world. Projected Container Trade Demand exceeds Supply Projected Broad Based Growth Across Regions 8% 25% 8% 7% 7% 6.4% 6.5% 20%
Slide 12: Orderbook
Orderbook ➢ Current orderbook stands at 13% of the existing fleet ➢ The orderbook is split between the larger > 10,000 TEU and the smaller < 3,000 TEU vessels Orderbook Orderbook Distribution (in vessels) Orderbook 2019 Orderbook 2020 Orderbook 2021 TEU Units TEU Units TEU Units TEU 40 18,000‐20,000
Slide 13: Timecharter Rates and Vessel Prices Continue to Be at Low Levels
Timecharter Rates and Vessel Prices Continue to Be at Low Levels Containership Timecharter Index 200 180 160 140 120 100 80 60 40 20 0 Vessel Prices Indices 180 160 140 120 100 80 60 40 20 0 Newbuilding Prices Index Secondhand Price Index Source: Clarksons Research Services, January 2019 13 13
Slide 14: 2020 Global Sulphur Cap – Wildcards
2020 Global Sulphur Cap – Wildcards From 1st of January 2020, vessels will have to burn High Sulphur Fuel Oil (only if scrubbers are Low Sulphur Fuel Oil installed on board the vessels) (more expensive than High Sulphur Fuel Oil) • 10% of the current containership fleet is expected to have scrubbers
Slide 15: Costamare Specific
Costamare Inc. COSTAMARE SPECIFIC
Slide 16: Track Record
Track Record ▪ Profitability ➢ Consistently profitable without interruption since Company’s inception and as a public company since 2010. ➢ Average Return on Equity(1) (“ROE”) of 10.3% over the last 5 full financial years (2014 - 2018). ▪ Risk Management ➢ Focus on stable cashflows derived from cont
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 last 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 Note Adjusted Revenue Containership Ti
Slide 18: 2018 Transactions Focused on Recurring Cash Flows
2018 Transactions Focused on Recurring Cash Flows ▪ Total newbuilding orders and second hand acquisitions in 2018 worth approximately $900m. ▪ Incremental contracted revenues of approximately $1.1Bn. ▪ TEU-weighted average charter period of 8 years. # Vessel TEUs Year Built Charter Period (in years)
Slide 19: Appendix – I
Appendix – I Net Income to Adj. Net Income Available to Common Stockholders and Adj. EPS Reconciliation Three-month period ended December 31, (Expressed in thousands of U.S. dollars, 2017 2018 except share and per share data) Net Income $ 2,670 $ 19,732 Note: Adjusted Net Income available to common
Slide 20: Appendix – II
Appendix – II FLEET IN THE WATER NEWBUILDINGS # Vessel Name CMRE % Year Built Container Capacity (TEUs) # HULL NR CMRE % Year Built Container Capacity (TEUs) 1 TRITON 100% 2016 14,424 1 YZJ2015-2060 100% 2021 12,690 2 TITAN 100% 2016 14,424 2 YZJ2015-2061 100% 2021 12,690 3 TALOS 100% 2016 14,424 3
Slide 21: Appendix – III
Appendix – III Scenario: Containership Supply Sensitivity to Speed Example scenarios basis slower speeds by vessels on mainlane trades, start 2019 TRADE LANE Speed / Service Total Nominal Est. Additional % of Global Service Change Scenario Capacity, 000 TEU Capacity Required, Total Capacity Speed* 0