D'amico International Shipping S.a. · MIL:DIS
D'amico International Shipping — Q1 2021 Earnings Presentation
53 slides from D'amico International Shipping's earnings presentation, May 3, 2021
Slide 1: Q1 2021 Presentation
Q1 2021 Presentation d’Amico International Shipping May 6th, 2021
Slide 2: Disclaimer
DISCLAIMER. There shall be no offering or sale of any securities of d’Amico International Shipping S.A. in the United States of America, Switzerland, Canada, Australia, Japan, the United Kingdom or any jurisdiction in which such offer, solicitation or sale would be unlawful prior to its registration
Slide 3: Agenda
AGENDA. ▪ Executive summary ▪ DIS’ overview and key financials ▪ Market overview ▪ Why invest in DIS ▪ DIS’ ESG ▪ Appendix
Slide 4: Executive summary
Executive summary. • Net result – Due to the challenging market experienced in Q1’21, DIS recorded a Net loss of US$ (9.8)m vs. US$ 1.5m in the same quarter of last year. • TCE – DIS’ daily spot rate was US$ 9,923 in Q1’21 vs. US$ 17,354 achieved in the same quarter of last year. Such negative varia
Slide 5: DIS' overview and key financials
DIS’ overview and key financials
Slide 6: A modern, high-quality and versatile fleet
A modern, high-quality and versatile fleet. March 31st, 2021 DIS Fleet1 LR1 MR Handy Total % Owned 5.0 9.0 6.0 20.0 52.6% Bareboat chartered 1.0 7.0 0.0 8.0 21.1% Time chartered-in long-term 0.0 9.0 0.0 9.0 23.7% Time chartered-in short-term 0.0 1.0 0.0 1.0 2.6% TOTAL 6.0 26.0 6.0 38.0 100.0% • DIS
Slide 7: Rapidly declining CAPEX commitments
Rapidly declining CAPEX1 commitments. Investment plan US$/mm 250.0 194.6 200.0 3.9 DIS has no remaining newbuilding 164.4 151.1 CAPEX, having fully completed its long- 12.8 150.0 0.7 101.2 term investment plan in FY’19 85.3 83.7 79.0 1.0 100.0 190.7 8.1 2.5 1.4 65.2 151.6 150.3 5.2 50.0 100.2 77.1 8
Slide 8: Lighter bank debt repayments and low refinancing risk
Lighter bank debt repayments and low refinancing risk. Forecasted bank debt financing cash-flow Daily bank loan repayment on owned vessels (Excluding overdraft facilities)1,2,3 (Excluding overdraft facilities)1,2,3 US$/mm US$/mm US$/mm US$/day 150 80 60 6,600 6,147 - 60 6,200 100 50 40 5,800 - 50 10
Slide 9: DIS' purchase options on leased vessels
DIS’ purchase options on leased vessels. Purch. Purch. First Ex. Option Vessel Name Build Date Option First Obligation 1 (In/Out of the money) Ex. Date Date High Priority 2 Mar-05 Oct-19 Oct-22 Exercised in Q1'21 High Freedom Jan-14 Feb-20 Feb-28 In the money High Fidelity Aug-14 May-20 May-27 In th
Slide 10: Contracts and fleet mix to drive future results
Contracts and fleet mix to drive future results. Increasing average TC rates1 • After peaking in 2020, current contracts rates decline % of ‘employment days’ US$/day 17,866 throughout 2021; the proportion of the fleet covered also falls gradually throughout the year. 70% 18,000 17,500 60% 17,000 • T
Slide 11: Large potential upside to earnings
Large potential upside to earnings. Estimated Fleet Evolution (Avg. N. of Vessels)1,2 Estimated Spot Exposure (Avg. N of Vessels)3 N. of ships (based on ‘available days’) N. of ships (based on ‘employment days’) 40 38.0 37.2 36.9 60 35 8.0 8.0 8.0 50 30 40 25 10.0 9.2 8.9 20 30 15 20 35.8 10 20.0 20
Slide 12: DIS focused also on cost savings
DIS focused also on cost savings. Daily Operating Costs – Owned and General & Administrative Costs – Total Fleet bareboat vessels1 US$/day US$/m 7,600 4.5 7,400 4.0 7,200 3.5 3.0 7,000 2.5 6,800 7,465 2.0 4.0 6,600 7,172 7,224 3.4 3.3 3.3 1.5 6,949 6,400 1.0 6,200 0.5 6,000 0.0 Q1'18 Q1'19 Q1'20 Q1'
Slide 13: Financial results. Net financial position
Financial results. Net financial position (US$ million) Dec. 31st, 2020 Mar. 31st, 2021 Gross debt (532.0) (523.8) IFRS 16 – additional liabilities (96.4) (98.5) Cash and cash equivalents 62.1 56.1 Other current financial assets1 4.7 4.2 Net financial position (NFP) (561.5) (562.0) Net financial pos
Slide 14: Financial results. Q1'21 Results
Financial results. Q1’21 Results Non-recurring items: (US$ million) Q1’20 Q1’21 (US$ million) Q1’20 Q1’21 TCE Earnings 71.4 42.8 Result on disposal of vessels (0.6) (0.5) Result on disposal of vessels (0.6) (0.5) Non-recurring financial items (2.3) 0.4 EBITDA 33.0 14.2 IFRS 16 (0.4) (0.3) Asset impa
Slide 15: Financial results. Key operating measures
Financial results. Key operating measures Key Operating Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Measures Avg. n. of vessels 46.0 44.4 41.9 40.4 43.2 38.8 Fleet contact 64.6% 62.6% 63.0% 56.6% 61.9% 49.5% coverage Daily TCE Spot 17,354 25,118 12,866 11,699 16,771 9,923 (US$/d) Daily TCE Cover
Slide 16: Market overview – market fundamentals
Market overview – market fundamentals
Slide 17: TC rates and asset values seem to have bottomed
TC rates and asset seem to have bottomed. 1 Year TC MR (Eco) rate1 5 & 10 year-old MR values1 US$/day US$/m 19,000 18,550 17,875 35 18,000 31.0 28.0 17,000 30 27.5 15,906 26.5 26.8 27.0 26.0 16,000 15,500 16,575 16,625 25.0 25.0 29.0 15,250 14,850 14,875 25 27.5 14,625 22.0 26.0 15,000 25.0 13,969 2
Slide 18: Oil demand and refining throughputs recovering
Oil demand and refining throughputs recovering. Global oil demand1 Global refinery throughputs1 Million barrels per day Million barrels per day 105.0 90.0 100.6 100.6 84.1 98.8 99.0 85.0 82.9 82.9 83.1 100.0 82.1 81.2 81.8 82.1 81.8 80.6 80.1 80.2 99.5 80.0 98.3 82.4 78.2 95.0 95.1 94.7 75.0 72.5 93
Slide 19: Large but temporary build-up in floating storage
Large but temporary build-up in floating storage. Crude oil price (Brent, US$ bbl), forward curve1 CPP vs DPP and Crude Oil Floating Storage2 67.0 66.4 Million barrels 66.0 350 66.0 325 66.3 65.2 300 64.8 275 65.0 64.4 64.0 250 63.7 225 64.0 63.4 200 63.1 62.9 175 62.7 150 63.0 125 62.0 100 75 50 61
Slide 20: Near-term demand green shoots: vehicles are rolling
Near-term demand green shoots: vehicles are rolling. Percentage change in US interstate vehicle miles traveled (VMT) relative to the same week of 20191 % change vs. same week in 2019 20 10 0 -10 -20 -30 -40 -50 All Vehicles Passenger Vehicles Trucks -60 -70 Week Ending Date • Vehicle miles driven in
Slide 21: Longer-term: healthy and resilient demand growth
Longer-term: healthy and resilient demand growth. World seaborne refined products trade1 Billion Tonne-miles 3,500 • Seaborne oil product trade 3,000 demand has contracted in 2019 and fell sharply in 2020 before an 2,500 expected sharp rebound in 2021 2,000 and 2022; it grew at a CAGR of 3.6% betwee
Slide 22: Longer-term: large potential upside to asset values
Longer-term: large potential upside to asset values. Historical MR TC and spot rates1 Historical MR asset values1 US$/day US$/m 45,000 60 40,000 1 YR TC and Spot rates are 55 35,000 respectively ~57% and ~88% NB, 5yr old and 10yr old vessels are 50 30,000 below the last cycle peak 45 respectively ~3
Slide 23: Longer-term: dramatic changes in the refinery landscape
Longer-term: dramatic changes in the refinery landscape. Portion of net refinery capacity additions ‘21-’26 40% • Global refinery crude distillation capacity should rise by 4.8m b/d 30% in the ‘21-26 period. Most of the expansion in the ‘21-26 period is expected in China (+1.4m b/d) and in the Middl
Slide 24: Longer-term: all Oceania's refineries at risk of closure
Longer-term: all Oceania’s refineries at risk of closure. Company Refinery Location Capacity (kbpd) Notes Refining NZ New Zealand 45 To operate at reduced capacity in 2021 BP Kwinana (Australia) 146 Converting to import terminal Exxon Mobil Altona (Australia) 90 Converting import terminal Refining N
Slide 25: Slowing fleet growth
Slowing fleet growth. MR & LR1 deliveries and scrapping (m dwt) (lhs), and net Current MR & LR1 fleet age fleet growth (%)1 (rhs) profile1 26% of current fleet Million Dwt 12 11.6%11.9% 12% Million Dwt 11.3% 10 9.7% 10% 35 32.0 9.5% 6% of current fleet 5% of current fleet 8.7% 8 8% 30 6 6% 25 4.6% 4
Slide 26: Rapidly ageing product tanker fleet
Rapidly ageing product tanker fleet. Historical and forecasted fleet composition by age (MRs and LR1s) (dwt, as at period end)1 60% 53.9% 50% 44.6% 40% 35.7% 30% 29.0% 25.0% 25.6% 20% 15.9% 20.8% 12.5% 13.7% 12.8% 16.0% 8.9% 8.2% 9.1% 10% 11.1% 8.0% 5.7% 6.4% 6.5% 6.3% 6.8% 5.6% 5.4% 4.9% 6.3% 4.9%
Slide 27: Confluence of forces constraining fleet supply
Confluence of forces constraining fleet supply. Scrap Steel Price1 Iron Ore Price2 US$/ldt US$/Ton 600 16-Apr-2010, 10-Oct-2014, 200 186 480 515 510 23-Apr-2021, 180 475 151 500 160 145 133 140 117 400 19-Aug-2011, 120 445 92 300 100 80 66 17-Jul-2020, 90 200 04-Mar-2016, 60 80 270 240 58 65 40 100
Slide 28: A pick-up in demolitions expected in 2021
A pick-up in demolitions expected in 2021. MR & LR1 deliveries, 20211 30 25 N. Of vessels 20 15 27 27 23 10 19 20 5 0 Q1'21 Q2'21 Q3'21 Q4'21 Estimated deliveries Actual deliveries MR & LR1 demolitions, 2018-20201 N. Of vessels Demolitions, which were minimal in FY’20 since demolition yards were clo
Slide 29: Limited newbuild orders and yard production capacity
Limited newbuild orders and yard production capacity. MR Newbuilding parity curve vs MR & LR1 orders second-hand values1 US$ Million N. Of vessels 40.00 36.50 250 35.00 30.14 30.00 27.50 200 23.78 25.00 20.00 18.50 17.43 150 15.00 225 12.00 100 189 10.00 143 135 76 5.00 50 100 97 50 66 68 73 76 0.00
Slide 30: Strong long-term fundamentals
Strong long-term fundamentals. Seaborne volume and MR/LR1 fleet growth (lhs)%1 vs 1year MR and LR1 TC rate (rhs) YoY% US$/day 20.00 35,000 31,090 29,185 15.00 30,000 27,006 10.00 23,446 23,597 25,000 22,819 18,866 5.00 16,492 17,754 18,127 20,000 16,625 16,629 16,838 13,553 - 12,970 14,389 15,000 15
Slide 31: Why invest in DIS
Why invest in DIS
Slide 32: Historical NAV evolution
Historical NAV evolution. DIS’ Historical NAV evolution1 US$/m US$/share 1000 0.94 1.00 0.89 0.90 900 0.90 800 0.76 0.80 0.72 700 0.65 0.70 600 0.56 0.60 0.53 500 0.42 0.50 0.40 400 0.35 0.34 0.36 0.40 0.31 296 314 374 285 300 230 0.25 240 0.30 334 218 0.23 0.24 213 302 0.20 200 255 0.17 0.20 230 22
Slide 33: Why invest in DIS today
Why invest in DIS today. • Young-fleet, most of which acquired at historically attractive prices and at top-tier yards. Furthermore, vessels are mostly eco-design (75% of owned and bareboat ships) and IMO classed (75% of owned and bareboat ships). • First-class in-house technical management provides
Slide 34: DIS' ESG
BA INTERNATIONAL SHI Vy “3
Slide 35: DIS' core values
DIS’ CORE VALUES. Long term vision Guided by the values of family tradition, we build our success on long term planning and turning our promises into actions. Focus onthe environment and safety We do not compromise when it comes to environmental concerns. Care and attention, prudence and respect for
Slide 36: DIS' ESG at a glance
DIS’ ESG at a glance. DIS’ Key facts and DIS Industry DIS’ Key facts and DIS figures: Figures Average figures: Figures ✓ IMO Classed Fleet (%) 1 77.5% 39% ✓ Lost Time Injury Frequency (LTIF YTD) 2,7 0 ✓ Owned and bareboat fleet Age (Years) 1,3 6.9 11.8 Percentage of female ✓ colleagues onshore 2 43.
Slide 37: DIS' ESG – Corporate Governance
DIS’ ESG – Corporate Governance. DIS is listed on the most demanding segment of the Milan stock exchange (the Star), and has therefore adopted a first-class corporate governance framework: • Listed on the Star segment of the Milan Stock Exchange since 2007; • High standards of corporate governance:
Slide 38: DIS' ESG – Social responsibility
DIS’ ESG – Social responsibility. DIS seeks a diverse and inclusive work environment, where team work is highly valued. The high levels of employee satisfaction result in high retention rates. • 24 onshore personnel as at 31 December 2020; • 600 seagoing personnel as at 31 December 2020; • 74% reten
Slide 39: DIS' ESG – Environment and Safety
DIS’ ESG – Environment and Safety. DIS seeks to be an industry leader on environmental and safety issues: • Among the first fleets worldwide compliant with Monitoring Reporting and Verification criteria for CO2 emissions. • Since 2011 DIS has a fleet performance monitoring department to optimize ves
Slide 40: UN's Sustainable Development Goals
UN’s SUSTAINABLE DEVELOPMENT GOALS. DIS’ Sustainable DIS’ Sustainable DIS’ Sustainable Sustainability Development Sustainability Development Sustainability Development Topics Goals Topics Goals Topics Goals Vessel energy Integrated Ship recycling efficiency management system for ongoing improvement
Slide 41: UN's Sustainable Development Goals
UN’s SUSTAINABLE DEVELOPMENT GOALS. DIS’ Sustainable Activity performed by DIS Sustainability Topics Development Goals Vessel energy efficiency • Renewal of the fleet with “Eco” vessels, in line with IMO directives, thanks to the implementation of innovative technologies. Innovation: • Projects aime
Slide 42: UN's Sustainable Development Goals
UN’s SUSTAINABLE DEVELOPMENT GOALS. DIS’ Sustainable Activity performed by DIS Sustainability Topics Development Goals Integrated management • Transparent statement of policies governing operations on board managed ships - in system for ongoing order to ensure safety and efficiency - and of the meth
Slide 43: UN's Sustainable Development Goals
UN’s SUSTAINABLE DEVELOPMENT GOALS. DIS’ Sustainable Activity performed by DIS Sustainability Topics Development Goals Ship recycling • Preparation of hazardous material inventories on all new buildings and on the existing fleet. Stakeholder engagement • Stakeholder mapping and detection of needs an
Slide 44: Appendix
INTERNATIONAL SHIPPING SA
Slide 45: DIS' Shareholdings Structure
DIS’ Shareholdings Structure. Key Information on DIS’ shares 3 d'Amico International SA 65.65% Others 32.87% d'Amico International Shipping SA 1.48% 100.00% 2 1 Listing market Borsa Italiana, STAR No. of shares 1,241,053,006 Market capitalisation1 €124.7 million Shares repurchased / % of share capit
Slide 46: d'Amico Group Structure
d’Amico Group Structure. 100% d’Amico Società di Navigazione Spa d’Amico International S.A. 100% 100% d’Amico Shipping Ishima Pte Ltd Italia SpA 51% 85% Mida Maritime Rudder S.A.M. Company d.a.c 76.9% 100% Sirius Ship d’Amico Dry d.a.c. Management S.r.l. 65.66% d’Amico International Shipping S.A. 33
Slide 47: Financial results. Consolidated Income Statement
Financial results. Consolidated Income Statement 1. Basic earnings/ loss per share (e.p.s.), have been calculated on an average number of shares outstanding equal to 1,223,144,312 in the first quarter of 2021 and 1,230,890,447 in the first quarter of 47 2020. In Q1 2021 and in Q1 2020 diluted e.p.s.
Slide 48: Financial results. Consolidated Balance Sheet
Financial results. Consolidated Balance Sheet 48
Slide 49: Financial results. Consolidated Cash Flow Statement
Financial results. Consolidated Cash Flow Statement 49
Slide 50: DIS' current fleet overview. LR1 & MR Fleet
DIS’CURRENT FLEET OVERVIEW. LR1 & MR Fleet Owned - LR1 Tonnage (dwt) Year Built Builder, Country Interest1 IMO Classified Cielo di Londra 75,000 2019 Hyundai MIPO, South Korea (Vinashin) 100% - Cielo di Cagliari 75,000 2018 Hyundai MIPO, South Korea (Vinashin) 100% - Cielo Rosso 75,000 2018 Hyundai
Slide 51: DIS' current fleet overview. MR Fleet
DIS’CURRENT FLEET OVERVIEW. MR Fleet TC - IN Long Term with purchase option Tonnage (dwt) Year Built Builder, Country Interest1 IMO Classified High Leader 50,000 2018 Japan Marine United Co., Japan 100% IMO II/IMO III High Navigator 50,000 2018 Japan Marine United Co., Japan 100% IMO II/IMO III High
Slide 52: DIS' current fleet overview. Handy Fleet
DIS’CURRENT FLEET OVERVIEW. Handy Fleet Owned Tonnage (dwt) Year Built Builder, Country Interest1 IMO Classified Cielo di Salerno 39,043 2016 Hyundai MIPO, South Korea (Vinashin) 100% IMO II/IMO III Cielo di Hanoi 39,043 2016 Hyundai MIPO, South Korea (Vinashin) 100% IMO II/IMO III Cielo di Capri 39
Slide 53: Thank you!
Thank you!
d'Amico International Shipping — Q1 2021 Earnings Presentation on 6ix