Sincere Navigation Corporation · TWSE:2605
Sincere Navigation — Hua Nan Securities Investor Conference (January 2020)
31 slides from Sincere Navigation's conference presentation, January 2020
Slide 1: Company Presentation
新 興 航 Sincere Navigation Corporation 運 January 2020 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 10.2 years and VLCC almost 3mn dwt. VLOC, 1 VLOC Kamsarmax, 2 Capesize Key Highlights: Kamsarmax Anchored by mu
Slide 3: Company Update: Selected Fleet Deployment
Company Update Selected Fleet Deployment (As of 5/Jan/2020) VLCC TC Rates: US$35,016 / day Industry Continued strength in VLCCs balanced against a near-term 2019 Capesize Average TCE Rates: US$15,193 / day weakness in dry bulk. Uncertainty in compliant fuel costs Conditions driving irrational re
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 Capesize • Placed in Tankers International Pool, to achieve • Carries major commodities, like iron ore, coal. long-term commercial management stability. • Flexible operations between spot and mid and long-term period m
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 ship
1987 1968 Acquired Karson Navigation and Tai Hsing Navigation, and 2001 2004 2019 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: 2020 Tanker Market Positive / Negative Drivers
2020 Tanker Market Positive / Negative Drivers Positive Drivers Negative Factors Positive fundamentals for the Crude Tanker Market, VLCC demand to exceed 5.2% y/y in Dec 6th decision by OPEC to cut 0.5m bpd in 2020, versus supply growth of 3.9%. Q1 2020 production, limiting mid-east Expected s
Slide 12: VLCC Market Dynamics
VLCC Market Dynamics Crude Tanker Supply & Demand Growth VLCC Spot Earnings 8.0 Tanker Supply / Demand Growth 6.5 6.7 (y/y %) 6.0 4.3 5.34.85.2 4.9 4.4 4.0 4.0 4.1 3.3 3.2 3.0 1.8 2.0 0.2 1.3 0.6 0.6 0.0 -0.1 0.1 -2.0 -0.9 -4.0 -3.3 Crude Tanker DWT Demand Growth Trading Crude Tanker Fleet Growth So
Slide 13: VLCC Spot Earnings
VLCC Spot Earnings Source: Clarkson SIN, 6 January, 2020 新興航運股份有限公司 Sincere Navigation Corporation 13
Slide 14: 2020 Dry Bulk Market Positive / Negative Drivers
2020 Dry Bulk Market Positive / Negative Drivers Positive Drivers Negative Factors Order book as % of Fleet back to historically Fleet growth continues to outpace ”headline” low levels. demand growth due to “new” VLOC Decrease in vessel ton-mile availability, due to segments. installation of s
Slide 15: Dry Bulk Market Dynamics
Dry Bulk Market Dynamics Order book as % of Fleet 1-yr T/C Capesize Bulker Rates Bulkcarrier Orderbook % Fleet Past 10-Year Historical Series – US$/Day 90.00 (Monthly Data) 40,000 40,000 80.00 Bulkcarrier 35,000 70.00 Orderbook % 30,000 60.00 Fleet 25,000 24,456 50.00 40.00 20,000 17,286 30.00 15,00
Slide 16: Dry Bulk Supply / Demand Growth Still Unbalanced
Dry Bulk Supply / Demand Growth Still Unbalanced 20.0 World Dry Bulk Trade Tonne-Miles % Yr/Yr Bulkcarrier Fleet Growth % Yr/Yr 17.0 15.0 14.8 12.7 10.0 10.6 10.6 8.7 7.9 6.8 5.9 6.8 7.2 7.1 6.2 5.8 5.8 5.5 5.26.7 6.7 5.7 5.0 4.0 4.1 4.4 4.3 2.6 4.0 3.8 2.1 2.6 1.9 2.9 2.9 2.7 2.6 2.3 1.42.2 1.1 0.2
Slide 17: Regional Bunker Fuel Prices
Regional Bunker Fuel Prices Source: Clarkson SIN, 6 January, 2020 新興航運股份有限公司 Sincere Navigation Corporation 17
Slide 18: Capesize Spot Earnings
Capesize Spot Earnings Source: Clarkson SIW, 3 January, 2020 新興航運股份有限公司 Sincere Navigation Corporation 18
Slide 19: Panamax Spot Earnings & Trip Charter Rates
Panamax Spot Earnings & Trip Charter Rates Source: Clarkson SIW, 3 January, 2020 新興航運股份有限公司 Sincere Navigation Corporation 19
Slide 20: Supramax Trip Charter Rates
Supramax Trip Charter Rates Source: Clarkson SIW, 3 January, 2020 新興航運股份有限公司 Sincere Navigation Corporation 20
Slide 21: Secondhand Vessel Price Trends
Secondhand Vessel Price Trends Source: Clarkson SIW, 3 January, 2020 新興航運股份有限公司 Sincere Navigation Corporation 21
Slide 22: Market Outlook: Newbuilding Vessel Prices
Asset values have remained flat, supporting corporate value Market Outlook Newbuilding Vessel Prices Source: Clarkson SIW, 3 January, 2020 新興航運股份有限公司 Sincere Navigation Corporation 22
Slide 23: Market Outlook: China Ore and Steel
China Ore and Steel Market Outlook Industry Data 新興航運股份有限公司 Sincere Navigation Corporation Source: Alphabulk, Week 49, 2019 23
Slide 24: Strategic Outlook
Strategic Outlook 新興航運股份有限公司 Sincere Navigation Corporation
Slide 25: Market Summary
Market Summary Market Capitalization Stock Performance (as of Jan 3, 2020) 30,000 28,013 NT$mn 19 25,000 NT$ 2605.TW Sincere Navigation 20,190 20,000 15,000 18 9,863 10,000 7,427 5,885 5,000 17 16.85 0 Sincere U-Ming Taiwan Wisdom CMT Navigation Marine Navigation Lines 16 Liquidity 15 50,000 Volume/
Slide 26: Dividend Policy
Dividend Policy Dividend Announcement Dividend History Table Cash 1. Announcement Date:108/09/04 Ex Dividend Dividend Previous % 2. Event: Dividend Date (Per Share) Day Close Yield EPS Payout 3. Dividend Type & Amount: Stock Dividend 0.3/share 9/28/2019 0.2 17.20 1.16% 0.11 182% and Cash Dividend 0.
Slide 27: Organizational structure focused on owner-operator management
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 28: 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 29: Business model focused on prudent asset management and cash flow generation
Business model focused on prudent asset management and cash flow generation Average fleet age for SNC fleet is Prudent, risk management currently at 10.2 years, in-line with approach to asset replacement is the 10.2 years of the total bulk key. fleet average. New sectors continued to be 7 ou
Slide 30: 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 31: 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 — Hua Nan Securities Investor Conference (January 2020) on 6ix