Pangaea Logistics Solutions Ltd. · NASDAQ:PANL
Pangaea Logistics Solutions — Investor Presentation (July 2015)
16 slides from Pangaea Logistics Solutions's investor presentation, Jul 6, 2015
Slide 1: Introductory Presentation June 2015
Introductory Presentation June 2015
Slide 2: Safe Harbor
Safe Harbor This presentation includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth and future acquisitions. These statements are based on Pangaea’s and manage
Slide 3: Investment Highlights: Pangaea Logistics Solutions Ltd.
• Value-added backhaul specialization • Dominance of ice-class 1A dry bulk segment • Embedded, loyal customer base • “Asset-right” strategy • Continued demand-driven expansion: 8% CAGR for ship days (‘11-’14) • Carriage of over 20.8m DWT of cargo to more than 200 ports (2014) • Management owns ~50%
Slide 4: A Global Leader in Maritime Logistics
A Global Leader in Maritime Logistics • A preferred partner: - Selected by customers to transport mission-critical cargos - Favored counterparty for banks & stressed owners - Adviser to the European Commission on Arctic maritime issues • An innovator: - Designer of value-creating solutions in ports
Slide 5: Diversified, Blue-Chip Client Base
Diversified, Blue-Chip Client Base • Our clients are world-class, diversified, & loyal - Repeat clients (≥3 years in the past 4) are 54% of our shipping days - Our top 10 clients represent 41% of our revenue during 2014 - No cargo accounts for more than 16% of our traffic for 2014
Slide 6: Defensible Pillars of Profitability
Defensible Pillars of Profitability • Execution specialization: - Material cost savings & enhanced profit through granular operating knowledge - Secured & defended by 250+ years of expertise & embedded relationships • Backhaul specialization: - Generating profit from a cost center - Secured & defend
Slide 7: Backhaul Specialization: A Source of Profitability & Stability
Backhaul Specialization: A Source of Profitability & Stability • Deep client relationships & proven reputation drive our backhaul practice: - Majority of backhaul days for repeat, longstanding customers - Majority of backhaul days derived from Contracts of Affreightment (“CoA”s) - ~30% of backhaul d
Slide 8: Backhaul Specialization: Generating Profit from a Cost Center
Backhaul Specialization: Generating Profit from a Cost Center Europe Brazil Canada Fronthaul Trip Revenue ($17/t) Positioning Revenue 870,000 430,000 Bunkers & Port Costs Vessel Hire (35 days) (340,000) (350,000) Voyage Result 610,000 Typical Operator: Ballast Revenue 0 Bunkers Vessel Hire (13 days)
Slide 9: Backhaul Specialization: Generating Profit from a Cost Center
Backhaul Specialization: Generating Profit from a Cost Center China Brazil Fronthaul Trip Revenue ($28/t) Positioning Revenue 2,000,000 500,000 Bunkers & Port Costs Vessel Hire (55 days) (900,000) (550,000) Voyage Result 1,100,000 Typical Operator: Ballast Revenue 0 Bunkers Vessel Hire (30 days) (80
Slide 10: Defensible Pillars of Profitability
Defensible Pillars of Profitability • World-class execution: - Material cost savings & enhanced profit through granular operating knowledge - Secured & defended by 250+ years of expertise & embedded relationships • Backhaul specialization: - Generating profit from a cost center - Secured & defended
Slide 11: Ice-Class Specialization: Premium Rates Generate Superior Profits
Ice-Class Specialization: Premium Rates Generate Superior Profits
Slide 12: Ice-Class Specialization: Premium Rates Generate Superior Profits
Ice-Class Specialization: Premium Rates Generate Superior Profits • A very attractive, low-competition, premium-rate trade - Northern routes in winter: minimal choices for service at ice-bound ports - Polar routes in summer: far more efficient routes improve profits significantly • Dramatically redu
Slide 13: Ice-Class Specialization: Premium Rates Generate Superior Profits
2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 Baltic Panamax Index BPI Average Pangaea Ice-Class Average Ice-Class Specialization: Premium Rates Generate Superior Profits Year-Round Demand Advantages plus Limited Supply Our ice-class fleet generated 57% higher revenues than conventional
Slide 14: Ice-Class Specialization: The View from the Bridge
Ice-Class Specialization: The View from the Bridge NSR to FE Via Suez to FE MurmanskKirkenes
Slide 15: Selected Consolidated Financial Data
Selected Consolidated Financial Data (U.S dollars in thousands) 2015 2014 2014 2013 2012 Income Statement Data: Total revenue 95,116$ 114,213$ 398,276$ 392,471$ 387,058$ Direct operating expenses 77,769 99,025 368,712 349,873 349,206 Gross profit / Net TCE result 17,347 15,188 29,564 42,598 37,852 S
Slide 16: Conclusion: Long-term Competitive Advantages
Conclusion: Long-term Competitive Advantages • Enhanced utilization & profitability through strategic backhaul & triangulation • Expertise in niche markets & less commoditized routes (particularly ice routes) • Continued demand-driven expansion: 8% CAGR for ship days (‘11-’14) • Strong relationships
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