Sincere Navigation Corporation · TWSE:2605
Sincere Navigation — SinoPac Securities Investor Conference 2019
35 slides from Sincere Navigation's conference presentation, July 2019
Slide 1: Sincere Navigation Corporation Company Presentation July 2019
新 興 航 Sincere Navigation Corporation 運 July 2019 Company Presentation 新興航運股份有限公司 Sincere Navigation Corporation
Slide 2: Company Overview
Company Overview Key Facts Fleet Profile Sincere Navigation (”Sincere”), established in 1968, owns and operates Handymax, 2 VLCC, 3 17 dry bulk and tanker vessels, with an average age of 9.6 years and VLCC almost 3mn dwt. VLOC, 1 VLOC Kamsarmax, 2 Capesize Key Highlights: Kamsarmax Anchored by mul
Slide 3: Company Update
Company Update Selected Fleet Deployment 1-Yr VLCC TC Rates: US$34,000 / day Industry Supply/demand remains balanced for dry bulk, and 1-Yr T/C 1-Yr Capesize Average TC Rates: US$21,375 / day improvements in Capesize &VLCC spot rates balanced against Conditions continued uncertainty of the US-Ch
Slide 4: Company Overview
Company Overview 新興航運股份有限公司 Sincere Navigation Corporation
Slide 5: Sincere Navigation Fleet Summary
Sincere Navigation Fleet Summary Tankers Dry Bulk Stable Diligence Improving VLCC – Elbhoff Capesize – Mineral Oak • Placed in Tankers International Pool, achieving • Carries major commodities, like iron ore, coal. long-term commercial management stability. • Flexible operations between spot and per
Slide 6: Sincere Navigation Fleet (by # of vessels)
Sincere Navigation Fleet (by # of vessels) [CATEGORY VLOC NAME] 6% Total Fleet: 17 [PERCENTAGE VLOC ] VLCC (Tanker): 3 Handymax Capesize 12% VLOC: 1 Kamsarmax Capesize: 9 Capesize 53% Handymax Kamsarmax: 2 Kamsarmax VLCC Handymax: 2 12% (Tanker) 新興航運股份有限公司 Sincere Navigation Corporation 6
Slide 7: Principles and Services
1968 Principles Established Sincere Credibility, Decisiveness, Navigation in Taiwan, a Diligence, Discretion, and leading dry bulk owner- Services Improvements. operator. Crude Oil Taking advantage of With more than 50 years of Transportation opportunities, while management expertise, mana
Slide 8: Sincere Navigation was established with one handysize
1987 1968 Acquired Karson Navigation and Tai Hsing Navigation, and 2001 2004 2018 Sincere Navigation reorganized with “Sincere was established Established wholly A fleet of 17 ships Navigation Corporation” as Established Haihu Maritime with about 3 million with one handysize owned subsidiary the sur
Slide 9: Cumulative Growth of Current Fleet (dwt)
Cumulative Growth of Current Fleet (dwt) Total tonnage under management: 2,995,692 dwt Tien Shan Total Fleet: 17 Elbhoff Palona Kondor VLCC: 3 Tai Shan Oceana Maxim VLOC: 1 Mineral Oak Yue Shan Georgiana Capesize: 9 Heng Shan Madonna III Bao Shan Kamsarmax: 2 Chou Shan Chin Shan Huang Shan
Slide 10: Industry Outlook
Industry Outlook 新興航運股份有限公司 Sincere Navigation Corporation
Slide 11: 2019 Dry Bulk Market Positive / Negative Drivers
2019 Dry Bulk Market Positive / Negative Drivers Positive Drivers Negative Factors Brazil Government authorized VALE to restart US Protectionist Policies slows global GDP iron ore exports. growth. 2019 decrease in ton-miles supply, due to Lower interest rate trend worldwide installation of s
Slide 12: Crude and Bunker Prices
Crude and Bunker Prices Benchmark Crude Prices Spot Bunker Prices Market Outlook Index Performance Source: Alphabulk, Week 29, 2019 新興航運股份有限公司 Sincere Navigation Corporation 12
Slide 13: Current limits and 2020 Global Sulfur Cap
Current limits and 2020 Global Sulfur Cap Source: DNV GL Scrubber Refit Presentation, Oct 10, 2018 新興航運股份有限公司 Sincere Navigation Corporation 13
Slide 14: What is a Scrubber?
What is a Scrubber? Source: DNV GL Scrubber Refit Presentation, Oct 10, 2018 新興航運股份有限公司 Sincere Navigation Corporation 14
Slide 15: Business Case for Scrubber
Business Case for Scrubber Accumulated 5 year cost (20MW installed power / 6% discount rate) Scenario based on a ship with 20MW installed power, assumption: - HFO price: 450USD/ton - Compliant fuel: 652 USD/ton Resulting payback time is 1,3 years for open loop and 1,7 for hybrid Fuel price spr
Slide 16: Dry Bulk Average Spot Rates – By Vessel Types
Dry Bulk Average Spot Rates – By Vessel Types Market Outlook Index Performance Source: Clarkson SIW 新興航運股份有限公司 Sincere Navigation Corporation 16
Slide 17: Capesize Spot Earnings
Capesize Spot Earnings Market Outlook Spot Earnings Source: Clarkson SIW 新興航運股份有限公司 Sincere Navigation Corporation 17
Slide 18: Capesize Spot Earnings – 15th Jul 2019
Capesize Spot Earnings – 15th Jul 2019 Market Outlook Spot Earnings Source: Baltic Exchange 新興航運股份有限公司 Sincere Navigation Corporation 18
Slide 19: Panamax Average Earnings
Panamax Average Earnings Market Outlook Spot Earnings Source: Clarkson SIW 新興航運股份有限公司 Sincere Navigation Corporation 19
Slide 20: Panamax Spot Earnings – 15th Jul 2019
Panamax Spot Earnings – 15th Jul 2019 Market Outlook Spot Earnings Source: Baltic Exchange 新興航運股份有限公司 Sincere Navigation Corporation 20
Slide 21: Tanker Spot Earnings
Tanker Spot Earnings Market Outlook Tanker Spot Earnings Source: Clarkson SIW 新興航運股份有限公司 Sincere Navigation Corporation 21
Slide 22: VLCC Spot Earnings
VLCC Spot Earnings Market Outlook Tanker Earnings Source: Clarkson SIW 新興航運股份有限公司 Sincere Navigation Corporation 22
Slide 23: Spot Earning Outlook
Spot Earning Outlook Crude Tanker Spot Earnings Bulk Carrier Spot Earnings Market Outlook Index Performance Source: Clarkson SIW, 12 July, 2019 新興航運股份有限公司 Sincere Navigation Corporation 23
Slide 24: Spot Earning Outlook
Spot Earning Outlook Market Outlook Spot Earnings Source: Clarkson SIW, 12 July, 2019 新興航運股份有限公司 Sincere Navigation Corporation 24
Slide 25: Secondhand Vessel Price Trends
Secondhand Vessel Price Trends Market Outlook Secondhand Vessel Prices Source: Clarkson SIW, 12 July, 2019 新興航運股份有限公司 Sincere Navigation Corporation 25
Slide 26: Asset values have remained flat, supporting corporate value
Asset values have remained flat, supporting corporate value Market Outlook Secondhand Vessel Prices Source: Clarkson SIW, 12 July, 2019 新興航運股份有限公司 Sincere Navigation Corporation 26
Slide 27: China Ore and Steel
China Ore and Steel Market Outlook Index Performance Source: Alphabulk, Week 29, 2019 新興航運股份有限公司 Sincere Navigation Corporation 27
Slide 28: Strategic Outlook
Strategic Outlook 新興航運股份有限公司 Sincere Navigation Corporation
Slide 29: Market Summary
Market Summary Market Capitalization Stock Performance (as of July 17, 2019) 30,000 26,112 28 25,000 20,000 18,330 26 15,000 8,837 7,427 10,000 6,171 5,000 24 1,150 0 Sincere U-Ming Taiwan Wisdom Franbo CMT 22 Navigation Marine Navigation Lines Lines Liquidity 20 Volume Price 18 17 30 20000 16000 20
Slide 30: Dividend Policy
Dividend Policy Price & Dividend Yield Dividend History Table 30 NT$ Price & Dividend Yield % 6 25 5 20 4 Dividend Yield Price 15 3 10 2 Close 5 Dividend_Yield% 1 0 0 新興航運股份有限公司 Sincere Navigation Corporation 30
Slide 31: Organizational structure focused on owner-operator management of assets and people
Organizational structure focused on owner-operator management of assets and people Strong management team with low turnover, Board of substantial experience, Directors prudent management and care of assets/business, Supervisor Audit Committee and strict adherence to safety & regulations President
Slide 32: Evolution of a shipping asset
Evolution of a shipping asset Vessel Delivery Delivered and enters operations Exit Shipyard Vessel sales are a core Strong Newbuilding component of value relationships, enables creation. Timing of asset high quality vessels. sales for maximum returns. Capture the essence of what this product achieve
Slide 33: Business model focused on prudent asset replacement and cash flow generation
Business model focused on prudent asset replacement and cash flow generation Average fleet age for SNC Capesize Prudent, risk management fleet is currently at 9.8 years, approach to asset replacement is higher than the 8 years of the key. world fleet average. New sectors continued to be 6 ou
Slide 34: Sincere Navigation Fleet
Sincere Navigation Fleet SHIP SUMMER DWT VESSEL 船名 TYPE DELIVERY FLAG BUILDER MT ELBHOFF (海福輪) SWS VLCC 01/2017 Hong Kong 300,837 KONDOR (高登輪) SWS VLCC 01/2012 Hong Kong 296,714 MAXIM (美生輪) SWS VLCC 06/2011 Hong Kong 296,887 TIEN SHAN (天山輪) BEIHAI VLOC 03/2018 Hong Kong 250,327 BAO SHAN (寶山輪) CSBC C
Slide 35: 2605.TW Q&A
2605.TW 新興航運 Q&A Sincere Navigation Corporation Investor Relation Contact Spokesperson: Mr. Jack Lee Yih-Ren sncbiz@snc.com.tw +886-2-2703-7055 新興航運股份有限公司 Sincere Navigation Corporation
Sincere Navigation — SinoPac Securities Investor Conference 2019 on 6ix