Taylor Maritime Limited · LSE:TMI
Taylor Maritime — Q3 FY23 Earnings Presentation
13 slides from Taylor Maritime's earnings presentation, Jan 26, 2024
Slide 1: Q3 FY23 Trading Update
Q3 FY23 Trading Update 26 January 2024 Strictly Private and Confidential
Slide 2: Disclaimer
Strictly Private & Confidential Disclaimer Important disclosures - NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES (SAVE AS PROVIDED HEREIN), AUSTRALIA, SOUTH AFRICA, CANADA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLA
Slide 3: Third Quarter Review – Highlights
Strictly Private & Confidential Third Quarter Review – Highlights Benchmark indices reach 13-month highs in December while fund Debt-to-Gross Assets now below 25% with improvement in FMVs and further debt reduction Operating Performance Capital Allocation Portfolio • Unaudited NAV per share increase
Slide 4: Third Quarter Review – Charter Market
Strictly Private & Confidential Third Quarter Review – Charter Market Rates improved with China re-stocking, alongside positive grain exports from South America and trade disruption from the drought-affected Panama Canal & escalation of tensions in the Red Sea increasing tonne-mile demand Handysize
Slide 5: Third Quarter Review – Portfolio Deployment for the Combined Fleet
Strictly Private & Confidential Third Quarter Review – Portfolio Deployment for the Combined Fleet Combined Fleet Time Charter Equivalent (“TCE”) for the quarter was $11,977 per day Net time charter rates per day ($) Forward Coverage – CY2024 TCE Earnings: $12,387 per day 7% 14% 12% 42% 19% 58% 38%
Slide 6: TMI Debt Reduction Progress and Target
Strictly Private & Confidential TMI Debt Reduction Progress and Target TMI has repaid c.$102m of debt at the Company level since the Grindrod acquisition with debt to gross assets now below the 25% target. Further de-gearing remains a priority TMI Deleveraging Progress Since Grindrod Transaction Gri
Slide 7: Cash Generation
Strictly Private & Confidential Cash Generation TCE almost at breakeven including finance costs and dividend … further market improvement would see $19m increase in cashflow for each $1k increment in TCE ◼ There is significant operating leverage in the fleet¹; each $1,000 increase in TCE generates a
Slide 8: Synergies & Integration – TMI & GRIN
Strictly Private & Confidential Synergies & Integration – TMI & GRIN Progress to realizing the full value of the Grindrod acquisition has been significant with work underway to deliver further benefits in 2024 Enhanced Commercial Footprint Improved Fleet Carbon Intensity ◼ Larger commercial footprin
Slide 9: Outlook – Demand Fundamentals
Strictly Private & Confidential Outlook – Demand Fundamentals Positive demand growth expected in 2024 for key TMI and GRIN cargoes Commentary Grain and minor bulk trade development (billion tonne miles) ◼ Demand shaped by global population growth: Fertilizer, food and building 18,000 Average annual
Slide 10: Outlook – Supply Fundamentals
Strictly Private & Confidential Outlook – Supply Fundamentals Scheduled deliveries of new vessels to slow in coming years while new ordering remains constrained Geared dry bulk supply development (dwt m) Handysize and Supra/Ultramax Newbuild, Resale and Secondhand Prices 30 HS Del. Forecast 30.0% 45
Slide 11: 2024 Outlook – Dry Bulk Market Catalysts
Strictly Private & Confidential 2024 Outlook – Dry Bulk Market Catalysts Key 2024 catalysts: Recovering Chinese demand, geared bulker fundamentals and trade disruption Chinese Demand Geared Bulker Trade Canal Disruptions Chinese Seaborne Dry Bulk Imports (mt) Grain/Minor Bulk Trade (mt) 30 Per Day D
Slide 12: Strategic Priorities
Strictly Private & Confidential Strategic Priorities TMI maintains strong conviction in the medium-term investment opportunity set SHORT-TERM FOCUS: ◼ Further deleverage through select asset disposals to shore up balance sheet and reduce breakevens ◼ Continue to streamline TMI and Grindrod operation
Slide 13: Questions
Strictly Private & Confidential Questions Strictly Private and Confidential