CMT — Investor Presentation 2020

Apr 17, 2020

Stock Code：2612 TT

Investor Presentation

by： James Tarng , Vice President

17[th] April 2020

Summar of Presentation y

 Outlook and Strategies

 World Economic and Shipping Market Trends

• The Company Overview

• Appendices

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1

2019 Investor Presentation

Outlook and Strategies

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Outlook and Strate ies g

Impact of Coronavirus Crisis

• The Covid-19 epidemic has devastated the entire world causing meltdown of shipping, financial, and oil markets so far in 2020; if the pandemic could be somehow contained from 3Q/2020, we can still reasonably expect a recovery in freight rates

PRC Demand for Raw Materials

• PRC’s announcement of infrastructure investment shall increase its demand for iron ore and coal- indirectly supporting the cape market

2020 Sulphur Cap

• Crashing of crude oil price results in bunker prices plunging- IFO and LSFO price spread has been below US$100/ton

Tonnage Supply Tightens (for now)

• Installation of scrubbers and accelerated scrapping is temporarily limiting fleet growth

• Flexible Chartering Strategies

We continue to forge strong relationships with major miners and operators to have a mixture of long and short period charters in order to prevail in a cyclical market

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2019 Investor Presentation 3

Shi in Market Outlook pp g

Demand Supply Market Mechanism

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-
Iron Ore Brazilian exports gradually
return to normal but recently have
been disrupted by heavy rain; PRC
demand remains stable with +2% y-o-y
increase
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Newbuildings - newbuilding
deliveries remain high with 28 ships
joining fleet in 1Q/2020; fleet to grow
by 4.3% this year
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delivered
+1.3% Y-o-Y
in 2020
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-
Coal PRC domestic production shall
increase this year which may reduce
imports from Australia and Indonesia
this year
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Tonnage Supply- vintage VLOC
scrapping is likely to accelerate this
year and NB delivery schedule is
possibly delayed
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Source: Clarksons Platou

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2019 Investor Presentation 4

World Economy and Shipping Market Trends

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World Econom Decelerates y

• IMF projected global GDP in 2020 to grow by 3.4% it recently revised the figure drastically to -3%

• Uncertainties: Covid-19 pandemic, economic meltdown worldwide, and volatility of oil prices

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EU
-7.1%
Japan
USA -5.2%
-5.9% China
India 1.2%
1.9%
Africa
-1.7%
Brazil
-5.3% Australia
-6.7%
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Source: IMF
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6

2019 Investor Presentation

Dry Bulk Seaborne Trade Expects to Grow by 0.5% in 2020

 Dry bulk seaborne trade declined last year due to Vale dam incident and trade is expected to improve this year unless Covid-19 pandemic cannot be contained in 2H/2020

• Major Driving Force：PRC’s demand for iron ore and coal together

• with demand for minor bulk from other emerging markets

% of Dry Bulk Cargoes

YOY Growth

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28%
39%
Iron Ore
Coal
Grain
Minor Bulk
24%
9%
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6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2014 2015 2016 2017 2018 2019 2020(f)
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Source: Clarksons Platou

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2019 Investor Presentation 7

Global Iron Ore/Coal Ex orts p

• Brazilian export volume is projected to improve by 28 million tons or 8.3% Y-o-Y

• Clarksons Platou forecasts global iron ore export to increase by 1.0% while coal exports to decrease by 1.4% in 2020

Iron Ore

Million Tons

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1600
1473 1477 1455 1474
1400
1200
1000
828 835 836 850
800
600
380 387 366
400 338
200
0
2017 2018 2019 2020(f)
Brazil Australia Total
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Coal

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1400
1263 1291 1273
1205
1200
1000
800
600
457 459
386 422
365 380 386 388
400
200
83 100 80 68
0
2017 2018 2019 2020(f)
Australia Indonesia USA Total
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Source: Clarksons Platou

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2019 Investor Presentation 8

Iron Ore/Coal Prices

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140  July 2019
Iron ore CFR prices hover
US$126.35/MT
120 between US$80-100/ton; highest
level of US$126/ton in July 2019
100
80
60
40
20
62% FE, US$/MT
0
Jan-17 May-17 Sep-17 Jan-18 May-18 Sep-18 Jan-19 May-19 Sep-19 Jan-20
140
120
100
80
60 
Australian coal prices has been
40 weak since 1Q/2019 and
averaged US$68/ton in 2H/2019 August 2019
20 US$65.55/MT
Australian Steam Coal, US$/MT
0
Jan-17 May-17 Sep-17 Jan-18 May-18 Sep-18 Jan-19 May-19 Sep-19 Jan-20
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Source: GFI Iron Ore & Steel

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2019 Investor Presentation 9

Chinese Crude Steel Production and Electricit Consum tion y p

Jan-Feb 2020 accumulated growth rate in production: 3.1% Jan-Feb 2020 accumulated growth rate in consumption: -7.8%

China Crude Steel Production

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Million Tons Growth %
1200 16%
14%
1000
12%
10%
800
8%
600 6%
4%
400
2%
0%
200
-2%
0 -4%
2013 2014 2015 2016 2017 2018 2019
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China Electricity Consumption

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TWH Growth %
8000 9%
7000 8%
7%
6000
6%
5000
5%
4000
4%
3000
3%
2000
2%
1000 1%
0 0%
2013 2014 2015 2016 2017 2018 2019
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Source: World Steel Association & 中國國家能源局

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2019 Investor Presentation 10

orts Chinese Iron Ore/Coal Im p

• PRC’s demand for iron ore is estimated to increase by 2% in 2020 to 1.065 billion tons

• PRC’s demand of coal imports is projected to decrease by 3% to 247 million tons

• PRC ‘s demand of bauxite imports will grow by 13% to 119 million tons in 2020

Million Tons

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1200 73%
72%
1000
71%
800 70%
69%
600
68%
400 67%
66%
200
65%
0 64%
2013 2014 2015 2016 2017 2018 2019 2020(f)
%
Chinese Iron Ore % of global imports
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Million Tons
300 25%
250
20%
200%
15%
150
10%
100
5%
50
0 0%
2013 2014 2015 2016 2017 2018 2019 2020(f)
%
Chinese Coal % of global imports
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Source: Clarksons Platou

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2019 Investor Presentation 11

Bulker Newbuildin Orders g

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Dry Bulk New Ship Ordering
Capesize Orderbook for Delivery
% of Fleet (Dwt)
No. 100% 91%
140 87%
90% 81%
120 80%
100 70% 62%
60%
80
50%
37%
60 40%
40 30% [24%]
20% 17% [21%] 18% 13% [15%] [16%] 13% 12%
20
10%
0 0%
Delivered Remaining 2020 2021 2022 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Q1/2020 2020 Feb
Capesize Ordering (100,000 + dwt) Total Bulk Fleet Ordering
Jan/Feb 2020
ORDERBOOK AS %
AVERAGE AGE OVER 20 YEARS OLD SCRAPPING AS %
OF EXISTING FLEET
OF EXISTING FLEET
Handysize
4% 11.6 13% 0.19%
(10,000 - 40,000 dwt)
Handymax (incl. Supramax & Ultramax)
6% 9.8 7% 0.14%
(40,000 - 65,000 dwt)
Panamax (incl, Kamsarmax)
9% 10.0 8% 0.09%
(65,000 - 100,000 dwt)
Capesize
12% 8.7 4% 0.69%
(100,000 + dwt)
Total Dry Bulk > 10,000 dwt
9% 10.2 9% 0.35%
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Source: Clarksons Platou

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2019 Investor Presentation 12

Ca esize Fleet Su l p pp y

Million DWT

Capesize Supply Development

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25.0 6.00%
19.00
20.0
3.91% 4.00%
15.0
10.0
6.81
2.00%
5.0
0.63%
0.0 0.00%
-5.0
4.62
5.90 -2.00%
-10.0
-15.0
-4.00%
-20.0
-25.0 -6.00%
2015 2016 2017 2018 2019 2020 Mar
Scrapping New Deliveries Net Fleet Growth
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Source: Clarksons Platou

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2019 Investor Presentation 13

Newbuildin /2[nd] Hand Sale Prices g

Prices	Prices	At End of Year	At End of Year	At End of Year
(US$ Million)		2018	2019	March 2020
180,000 dwt	NB	50.0	49.5	49.5
180,000 dwt	Resale	52.0	52.0	50.0
180,000 dwt (eco)	5 – yr	41.3	37.5	36.0
180,000 dwt (non-eco)	5 – yr	33.5	28.0	27.0
180,000 dwt	10 – yr	24.0	22.0	21.0
176,000 dwt	15 - yr	15.0	13.5	13.0

Source: Clarksons Platou

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2019 Investor Presentation 14

BDI 2018-1Q/2020

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2600 3/Sep/2019
BDI: 2,501
2400
2200 24/Jul/2018
BDI: 1,774
2000
1800
1600
6/Apr/2018
1/Jan/2020 BDI: 948
1400
BDI: 974
1200
1000 11/Feb/2019
BDI: 595
800
600
400 10/Feb/2020
BDI: 411
200
0
2018 2019 2020 Mar
 BDI averaged 592 points in 1Q/2020, versus 798 points in 1Q/2019
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Source: Clarksons Platou

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2019 Investor Presentation 15

BCI 2018-1Q/2020

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5500 4/Sep/2019
BCI: 5,403
6/Aug/2018
BCI: 3,654
4500
3500
2/Jan/2020
BCI: 1,646
2500
5/Apr/2018
BCI: 809
1500
2/Apr/2019
500
BCI: 92
-500
9/Mar/2020
BCI: -372
-1500
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Source: Clarksons Platou

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2018 2019 2020 Mar
 BCI averaged 93 points in 1Q/2020, versus 964 points in 1Q/2019
 5TC averaged $4,558 in 1Q/2020, versus $8,739 in 1Q/2019
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2019 Investor Presentation 16

Dr Bulk Main Tradin Routes y g

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Source: Clarksons Platou & Fearnleys

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17

2019 Investor Presentation

BCI Plummeted to Ne ative Territor g y

Route	Description	Route value
C2 Tubarao to Rotterdam $3.84
C3 Tubarao to Qingdao $11.41
C4 Richards Bay to Rotterdam $4.00
C5 West Australia to Qingdao $4.28
C7 Bolivar to Rotterdam $6.17
C17 Saldanha Bay to Qingdao $8.88
C8_14 Gibraltar/Hamburg Trans Atlantic Round Voyage $3,000.00
C9_14 Continent/Mediterranean trip China-Japan $14,845.00
C10_14 China-Japan Trans Pacific Round Voyage $3,108.00
C14 China-Brazil Round Voyage $2,305.00
C16 Revised Backhaul -$12,590.00
Baltic Exchange Capesize Index (BCI)-372
		~~Data:09th March 202~~

Source: Baltic Exchan ~~ge~~

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~~Data: 09[th] March, 2020~~

2019 Investor Presentation 18

Maritime Re ulation U dates g p

 IMO: Low Sulphur Fuel Oil Requirement

• Sulphur content has been capped at

• 0.5% m/m from 1[st] January 2020

• CMT Fleet completed tank cleaning before end of 2019 and now all burning low Sulphur fuels

 IMO: Ballast Water Management Convention

• Entered into force on 8[th] September 2019

• CMT Fleet’s retrofitting program will be completed before end of 2022

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19

2019 Investor Presentation

The Company Overview

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“Small Yet Refined" Operating Philosophy

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Diversification Discipline
Core Values
Diligence
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2019 Investor Presentation 21

Ma or O eratin Entities j p g

% of Total Revenue in FY 2019

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Bulk 50%
Shipping
Inland Trucking,
Terminal and
49%
Logistics
Agency and
1%
Travel
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22

2019 Investor Presentation

CMT Ca esize Fleet p

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China Peace China Progress China Pride China Triumph China Prosperity
中華和平輪 中華富進輪 中華榮耀輪 中華光輝輪 中華鴻運輪
174,413 DWT 174,322 DWT 177,856 DWT 203,028 DWT 203,028 DWT
2005 2006 2009 2010 2011
2017 2017 2016 2013 2012
China Honour China Enterprise China Harmony China Fortune China Pioneer
中華名望輪 中華偉業輪 中華和諧輪 中華偉運輪 中華先鋒輪
179,562 DWT 207,984 DWT 179,505 DWT 206,061 DWT 206,079 DWT
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2019 Investor Presentation 23

Inland Truckin g

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 CMT stresses safe, punctual, efficient service and is fully responsive to customers’ requirement of transporting empty/laden containers to designated depots and locations

  Associated Transport Inc., is one of Taiwan’s largest intermodal container trucking operators, providing inland container drayage and related services

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24

2019 Investor Presentation

Terminal and Lo istics g

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• CMT Logictics Co., Ltd. is located in Yangmei, Taoyuan County in northern Taiwan

• Inland container terminal with area coverage of 33,429.19 square meters, providing services of consolidation, repairs, warehousing, logistics, and distribution centers for major shipping lines

• Except for obtaining ISO9002QA certification and Taiwan Customs Bureau’s authorization to operate independently

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25

2019 Investor Presentation

CMT Air Car o De artment g p

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 CMT Air Cargo Department is the General Sales Agent (GSA) of Saudi Arabian Airlines (Saudia). Saudia is the flag carrier of the Kingdom of Saudi Arabia and a member of the SkyTeam Alliance

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• Saudia has a complete modern fleet a total of 151 aircrafts, including Boeing-777, 787, 747F, 777F; Airbus-A330, A320, A321. It reaches 95 destinations in worldwide

Image Source: https://www.arabianbusiness.com/transport/398084-saudia-offers-free-whatsapp-data-package-on-domestic-international-flights https://www.flickr.com/photos/canvaswings/15739042055

26

2019 Investor Presentation

Major Investment and Joint Venture

Name of Company	Holding Since	Effective Ownership Interest as of 31st December 2019	Main Operating Activities
Taiwan Navigation, Co., Ltd.	2006	10.41%	50,000-80,000 DWT Bulk Carriers
Global Energy Maritime Co., Ltd.	2011	12.00%	Crude and Product Tankers including VLCCs

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2019 Investor Presentation 27

2015-2019 Financial Hi hli hts g g

Expressed in thousands of New Taiwan Dollars

Year	2015	2016	2017	2018	2019
Revenue	3,361,457	3,294,834	3,218,366	3,820,224	3,762,725
Net Profit/(Loss)	332,787	47,941	98,052	513,711	323,842
EPS	1.30	0.21	0.50	2.60	1.64
Cash on hand	4,506,458	3,685,514	2,939,548	3,345,205	3,288,046
ROE %	3.04%	0.45%	0.99%	5.24%	3.22%
ROA %	2.08%	0.89%	1.30%	3.48%	2.54%
Liability %	48%	52%	53%	50%	50%

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2019 Investor Presentation 28

Dividends Distribution

Year	2010	2011	2012	2013	2014	2015	~~~~ 2016*	2017	2018	2019
Cash dividends/ Capital Reduction(NT$)	3.20	2.00	1.00	1.50	1.30	2.50	0.50	0.50	1.60	0.80
EPS (NT$)	7.53	3.92	2.23	1.55	1.30	1.30	0.21	0.50	2.60	1.64

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250% 238%

193%
200%
150%
100%
97% [100%]
100%
62%
49%
42% 51% 45%
50%
0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
股息支付率
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*Cash dividend NT$ 0.20 plus capital reduction NT$2.30 = NT$2.50

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2019 Investor Presentation 29

Appendix 1：Condensed Balance Sheet

	Millions of New Taiwan Dollars Dec 31,2018 Dec 31,2019 4,107.046 3,959.012 14,439.746 13,549.411 12.655 11.659 1,863.870 2,436.537 20,423.317 19,956.619 2,338.599 3,109.700 7,897.903 6,912.556 10,236.502 10,022.256 1,974.846 1,974.846 53.411 53.411 8,437.441 8,441.796 (278.883) (535.690) 0 0 10,186.815 9,934.363 20,423.317 19,956.619
Assets
Current assets
Property, plant and equipment
Intangible assets
Other non current assets
Total assets
Liabilities and Equity
Current liabilities
Non Current liabilities
Total liabilities
Equity attributable to owners of parent
Common stock
Capital surplus
Retained earnings
Other equity interest
Non-controlling interests
Total equity
Total liabilities and equity

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2019 Investor Presentation 30

Appendix 2：Condensed Statement of Comprehensive Income

	Thousands of New Taiwan Dollars 2018 2019 3,820,224 3,762,725 2,850,536 2,933,577 969,688 829,148 362,829 369,497 606,859 459,651 (47,626) (81,393) 559,233 378,258 45,522 54,416 513,711 323,842 337,780 (260,319) 851,491 63,523 2.60 1.64
Operating Revenues
Operating costs
Gross profit
Operating expenses
Net operating income
Non operating income and expenses
Profit before tax
Less: tax expense
Profit (attributable to owners of parent)
Other comprehensive income, net
Comprehensive income (attributable to owners of parent)
Earnings per share

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2019 Investor Presentation 31

： Appendix3 Corporate Bonds Issuance

Tranche	2016-1	2016-2	2017
Tenor	5 Years	5 Years	5 Years
Due Date	16-Mar-2021	16-Mar-2021	10-Apr-2020(400 million) 10-Apr-2022(400 million)
Interest Rate	0.88%	1.00%	1.13%
Amount (NT$ 100M)	9	14	8
Interest Payment	Annually	Annually	Annually
Guarantee Bank	Bank of Taiwan	Mega Bank	Shanghai Commercial Bank

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2019 Investor Presentation 32

Disclaimer

The information and opinions in this report were prepared by CMT. Though the information herein is believed to be reliable and has been obtained from market sources believed to be reliable, CMT makes no representation as to its accuracy or completeness.

The material and the information contained herein are provided for general information purposes, and may not be reproduced without the written permission of CMT. CMT shall not be liable to the recipient or any third party for any loss, liability or damage, cost or expense including without limitation, direct, indirect, consequential loss or damage, any loss of profit, loss of use, loss of or interruption in business, loss of goodwill, loss of data arising out of, or in connection with, the use of and the reliance on the information whether in contract, tort, negligence, bailment, breach of statutory duty or otherwise, even if foreseeable. This disclaimer shall be governed by and construed in accordance with Laws of Taiwan, R.O.C.

We undertake no obligation to publicly update or revise any forward looking statement contained in this presentation, whether as a result of new information, future events or otherwise, except as required by law. In light of the risks, uncertainties and assumptions, the forward looking events discussed in this presentation might not occur, and our actual results could differ materially from those anticipated in these forward-looking statements.

Contact Information

Web Site: www.cmt.tw

Head Office:

15 Jinan Road Sect 1 Taipei Taiwan R.O.C. Tel:+886(0)2 2396 3282 Fax:+886(0)2 2391 6165

Investor Relations:

Spokesperson: Man-Hung Yeh, VP Tel: +886(0)2 2357 5898 Fax: +886(0)2 2351 3082 Email: inv.rel@agcmt.com.tw

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2019 Investor Presentation 33

Thank You ！

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