MPC Container Ships ASA · OSL:MPCC
MPC Container Ships ASA — Pareto Energy Conference 2023
26 slides from MPC Container Ships ASA's conference presentation, Sep 21, 2023
Slide 1: Pareto Energy Conference
September 21, 2023 PARETO ENERGY CONFERENCE Moritz Fuhrmann, CFO
Slide 2: Introduction, Market Update, Outlook
01 INTRODUCTION 02 MARKET UPDATE 03 OUTLOOK MPC Container Ships | Pareto Energy Conference | 2
Slide 3: Market-leading container ship company with strong financials and rational capital allocation
MARKET-LEADING CONTAINER SHIP COMPANY WITH STRONG FINANCIALS AND RATIONAL CAPITAL ALLOCATION Leading container Strong balance sheet and Clear strategy & Established corporate set- tonnage provider significant earnings backlog investment principles up with strong governance #1 INTRA-REGIONAL TONNAGE
Slide 4: Distinct focus on intra regional trade
DISTINCT FOCUS ON INTRA REGIONAL TRADE CHARACTERISTICS OF INTRA-REGIONAL TRADES TOP TONNAGE PROVIDERS < 5.5K TEU 1 » 41% of all container vessels sail on intra-regional trades with 99% smaller than 5.2k TEU MANAGING OWNER TOTAL FLEET SIZE (TEUk) # OF VESSELS » Advantageous supply dynamics » Orderboo
Slide 5: Market Update
01 INTRODUCTION 02 MARKET UPDATE 03 OUTLOOK MPC Container Ships | Pareto Energy Conference | 5
Slide 6: Time-charter rates decreasing while vessel availability remains tight
TIME-CHARTER RATES DECREASING WHILE VESSEL AVAILABILITY REMAINS TIGHT CHARTER RATES AND SECONDHAND PRICES START OF THE YEAR VESSEL AVAILABILITY HARPEX 2nd Hand Price Index No. of Vessels 5,000 2nd Hand Price Index 140 1,500 -50% HARPEX 4,580 1,410 1,392 1,400 4,500 HARPEX-Average 2016-2020 120 1,300
Slide 7: Oversupply expected for total market while intra-regional dynamics appear more favorable
OVERSUPPLY EXPECTED FOR TOTAL MARKET WHILE INTRA-REGIONAL DYNAMICS APPEAR MORE FAVORABLE TOTAL MARKET INTRA-REGIONAL TRADES % % 12 12 Supply growth (TEU capacity) Supply growth (TEU capacity <5.2k TEU) Demand growth (TEU throughput) Demand growth (intra-regional TEU throughput) 10 10 8 8 6.7 5.9 5.9
Slide 8: Favorable orderbook-ratios & scrapping potentials in smaller sizes
FAVORABLE ORDERBOOK-RATIOS & SCRAPPING POTENTIALS IN SMALLER SIZES TEU FLEET (BY AGE) TEU ORDERBOOK GLOBAL SHIPYARD CAPACITY REMAINS MAXED OUT IN THE SHORT TERM 25+ 15-19 2023 2025 M CGT 20-24 0-14 2024 Est. Potential Orderbook Delivered 45 >17k TEU 32% 40 35 4 12-17k TEU 64% 30 21 18 8-12k TEU 8% 2
Slide 9: Outlook
01 INTRODUCTION 02 MARKET UPDATE 03 OUTLOOK MPC Container Ships | Pareto Energy Conference | 9
Slide 10: A sustainable container fleet and company
A SUSTAINABLE CONTAINER FLEET AND COMPANY FLEET SIZE 66 9 60 69 » Ongoing portfolio optimization towards younger and more fuel-efficient vessels DISTRIBUTIONS (USDM) 0 670 » Distributed USD >670m to investors through dividends » Significantly reduced debt outstanding to DEBT OUTSTANDING (USDM) 350 2
Slide 11: Providing significant shareholder returns
PROVIDING SIGNIFICANT SHAREHOLDER RETURNS RECURRING EVENT-DRIVEN PERIOD TOTAL DPS (NOK) DPS (NOK) DIVIDEND DISTRIBUTIONS USD million 66.6 670.6 Q4 2021 0.95 0.95 Event-driven 97.6 66.6 Recurring 31.1 Q1 2022 1.30 3.30 4.60 66.6 66.6 84.3 66.6 Q2 2022 1.57 0.42 1.98 13.3 84.3 71.0 Q3 2022 1.58 0.30 1
Slide 12: Robust backlog and counterparties provides forward visibility
ROBUST BACKLOG AND COUNTERPARTIES PROVIDES FORWARD VISIBILITY FIXED OPERATING DAYS AND REVENUE / EBITDA 1, 2 COUNTERPARTIES 8 Revenue backlog 3 / Proj. EBITDA 4 USD 1.2bn / 0.9bn Contracted forward 317 404 178 77 250 OTHER TOP 10 revenues (USD m) 3, 5 Contracted forward TCE (USD per day) 3, 6 29,691
Slide 13: Strong value proposition: low risk & significant distribution potential
STRONG VALUE PROPOSITION: LOW RISK & SIGNIFICANT DISTRIBUTION PO TENTIAL CURRENT ENTERPRISE VALUE FULLY COVERED OPEN RATE SENSITIVITY USD million USD million Further Upside Potential 687 686 421 406 ~1,000 568 552 532 498 260 244 Recycling Value 4 219 186 253 38 62 771 809 871 2023 2024 2025 2023 20
Slide 14: Well-positioned for continued value creation
WELL-POSITIONED FOR CONTINUED VALUE CREATION SUMMARY » Strong financial and operational performance » Continuation of low-leverage strategy while executing on fleet optimization » Favorable dynamics for intra-regional tonnage (supply and demand) OUTLOOK » Robust revenue backlog of USD 1.2bn provides
Slide 15: Appendix
APPENDIX MPC Container Ships | Pareto Energy Conference | 15
Slide 16: Robust mid-term outlook for intra-regional trades
ROBUST MID-TERM OUTLOOK FOR INTRA-REGIONAL TRADES ORDERBOOK TO FLEET RATIO AND VESSEL AGE ACROSS SIZE SEGMENTS WILDCARD FACTORS INFLUENCING THE OUTLOOK High OB/fleet, Relatively young fleet » Environmental regulations: The decarbonization framework will become % (OB/fleet) 90 stricter, tightening su
Slide 17: Creating shareholder value across cycles
CREATING SHAREHOLDER VALUE ACROSS CYCLES GROWTH PHASE: FLEET BUILD-UP STRATEGIC EXECUTION 106 Investments in USDm Newbuildings in USDm Divestments in USDm SECOND-HAND INVESTMENTS Clarksons 2nd NB Price Index 50 Hand Price Index » 88 vessels acquired for USD ~1bn (avg. USD ~12m per vessel) 174 77 » 2
Slide 18: Overview of debt financings
OVERVIEW OF DEBT FINANCINGS MPC Container Ships ASA 100% 100% 100% 100% 100% 100% 100% 90.1% 1 2 3 4 5 6 7 8 MPCC MPCC Third MPCC Unencum- AS Claudia Second Financing Eco-fleet Ecoboxes Greenboxes Invest B.V. bered Financing AS # of vessels 1 12 8 21 16 5 2 2 Financing OVB BOCOMM CIT Bank - HCOB Eur
Slide 19: Overview of financing facilities
OVERVIEW OF FINANCING FACILITIES Facility Type Outstanding 30/06/23 Total capacity Interest rate # Repayment profile Maturity 325bps + 1M SOFR Commitment will be reduced in semi-annually steps from Jan CIT RCF USD 55m USD 70m 8 Jul. 2024 2022 to Jul 2024 2 installments with USD 22.5m 1 installment w
Slide 20: Q2 2023 key financials
Q2 2023 KEY FINANCIALS BALANCE SHEET AS OF JUNE 30, 2023 PROFIT OR LOSS USD m June 30, 2023 December 31, 2022 USD m Q2 2023 Q2 2022 Assets 984.3 956.3 Operating revenues 194.4 151.7 Gross profit 146.4 114.8 Non-current assets 835.5 799.8 EBITDA 142.7 111.8 Current assets 148.8 156.5 Profit for the p
Slide 21: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW MPCC Current No Vessel Cluster Charterer Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Min / Max Fixture (USD/day) 1 AS ROBERTA 1400 gls BTL 10,500 Oct-23 / Oct-23 2 AS CARLOTTA 2800 grd ONE 15,850 Sep-23 / Nov-23 3 AS FLO
Slide 22: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW MPCC Current No Vessel Cluster Charterer Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Min / Max Fixture (USD/day) 26 AS RAGNA 1500 gls ZISS 30,000 DD(1) Jun-24 / Aug-24 27 AS SICILIA 1700 grd Unifeeder 30,000 Jul-24 / Sep
Slide 23: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW MPCC Current No Vessel Cluster Charterer Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Min / Max Fixture (USD/day) 51 AS FREYA 1300 grd Maersk Line 28,000 DD(2) Feb-25 / Apr-25 52 AS SUSANNA 1700 grd ONE 39,990 Mar-25 / Ma
Slide 24: References
REFERENCES SLIDE 12 1. Underlying min/max periods for contracted charter based on management assessment. Contracted Revenue and EBITDA not including IFRS adjustments 2. Revenues / Periods / TCE’s / costs in good faith, but indicative only and subject to changes. Fixed revenue and days as of August 1
Slide 25: Disclaimer
DISCLAIMER This presentation (the “Presentation”) has been prepared by MPC Container ships ASA (the “Company”) for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein. Please note that no representation or war
Slide 26: MPC
MPC —_ CONTAINER SHIPS