Costamare Inc. · NYSE:CMRE
Costamare — Investor Presentation (June 2019)
22 slides from Costamare's investor presentation, June 2019
Slide 1: Company Presentation June 2019
Company Presentation June 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 76 vessels (incl. 5 newbuilds). § 45 years of experience in shipping and a dedicated containership owner since 1992. § Strong track record of profitability. § 2018 total acquisitions and newbuild orders of ca. $9
Slide 5: Costamare Corporate History
Costamare Corporate History Costamare disposes The Company remaining bulk carriers successfully completes The Company and becomes a dedicated follow-on common equity offerings raising successfully containership owner / completes three After 20 years of sailing operator. USD203.8m new preferred exper
Slide 6: Containership Industry
Costamare Inc. CONTAINERSHIP INDUSTRY
Slide 7: Containerships are the Engine of International Trade
Containerships are the Engine of International Trade Product Shipped Shippers Liner Operators Vessel operators Containership Owners } Source cargo } Require movement of } Load and discharge containers materials and finished goods through supply } Revenues: $ per box (TEU) basis chains } Vessel emplo
Slide 8: 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 § The
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 half of their vessels, both existing and on order. § Liners may rely more on chartered vessels as they shift their focus to § Logistics § Asset light business models. § Long-term charters are awarded to financially s
Slide 10: Limited Competition
Limited Competition § Top 15 owners account for: § 63% of the chartered orderbook and § 45% of the chartered fleet in the water. § Consolidation / cooperation amongst containership owners is expected to continue in the future driven by: § Financially distressed operators § Lenders rationalizing loan
Slide 11: Supply/Demand Projection: Container Trade is Growing Across All Regions
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 Container Trade Demand Exceeds Supply Broad-Based Growth Across Regions 8% 8% 25% 7% 5.6% 20% 6% 6% 4.2% 5% 4.5% 4.6%4.5% 3.6
Slide 12: Orderbook
Orderbook § Current orderbook stands at 13% of the existing fleet § Deliveries are evenly split over the next 3 years Orderbook Orderbook Distribution Orderbook 2019 Orderbook 2020 Orderbook 2021 O/B 2019 O/B 2020 O/B 2021 - 60 TEU Units TEU Units TEU Units TEU - 18,000 23,000 21 450,390 22 506,700
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 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 0-0 1-0 2-0 4-0 5-0 6-0 8-0 9-0 0-0 2-0 3-0 4-0 6-0 7-0 8-0 200 200 200 200 200 200 200 200 201 201 201 201 201 201 201 Source: Clarkso
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 vessels are expected to have scrub
Slide 15: Costamare
Costamare Inc. COSTAMARE
Slide 16: 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 last 5 full financial years (2014 - 2018). § Risk Management § Focus on stable cashflows derived from contracted revenue of appr
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 secondhand 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 March 31, (Expressed in thousands of U.S. dollars, except Note: Adjusted Net Income available to common stockholders and Adjusted Earnings per Share share and per share am
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 on the basis of slower speeds by vessels on mainlane trades, starting in 2019 TRADE LANE Speed / Service Total Nominal Est. Additional % of Global Service Change Scenario Capacity, 000 TEU Capacity Required, Total C
Slide 22: Costamare Snapshot
Costamare Snapshot § One of the largest independent owners of containerships / Fleet of 76 vessels (incl. 5 newbuilds). § 45 years of experience in shipping and a dedicated containership owner since 1992. § Strong track record of profitability. § 2018 total acquisitions and newbuild orders of ca. $9