EMC — Investor Presentation 2018

Apr 27, 2018

TSE: 2603

==> picture [207 x 303] intentionally omitted <==

==> picture [94 x 94] intentionally omitted <==

Evergreen Marine Corp. 2018 Investor Conference

==> picture [533 x 166] intentionally omitted <==

==> picture [540 x 38] intentionally omitted <==

==> picture [337 x 166] intentionally omitted <==

․ ․ Challenge Innovation Teamwork

Legal Disclaimer

==> picture [94 x 92] intentionally omitted <==

• The information contained in this presentation, including all forward-looking information, is subject to change without notice, whether as a result of new information, further events or otherwise, and Evergreen Marine Corp. (the “Company”) undertakes no obligation to publicly update or revise the information contained in this presentation.

• Investor should not regard the above forward-looking information as legally binding but as information subject to change. No guarantees regarding the completeness, accuracy, and reliability of information contained are made explicitly or implicitly. They are not intended to represent complete statement of the company, industry or future development..

• of this document not be or for

• Any part may reproduced directly indirectly any purpose and distributed or transmitted to any other person (whether within or outside the company or company).

2

Outline

==> picture [94 x 92] intentionally omitted <==

1. Company Overview

2. Financial Results 3. Container Shipping Outlook 4. Business Strategy

3

1. Company Overview

==> picture [94 x 94] intentionally omitted <==

==> picture [201 x 58] intentionally omitted <==

----- Start of picture text -----

Evergreen Line Ranked 7 [th]
in Capacity
----- End of picture text -----

==> picture [636 x 58] intentionally omitted <==

----- Start of picture text -----

Continuous Fleet Strengthened by Ocean
Intensive Service Network
Renovation Alliance
----- End of picture text -----

Evergreen Line currently ranked 7th in Capacity The only Taiwanese shipping line listed in million TEU club. Growing steadily to outperform its size.

==> picture [94 x 92] intentionally omitted <==

==> picture [936 x 387] intentionally omitted <==

Source ： Alphaliner Monthly Monitor Report April 2018

5

Continuous Fleet Renovation

Strategically designed vessel sizes, flexibly adjusted carrying capacity to meet the market demand

==> picture [94 x 92] intentionally omitted <==

Chartered in vessels 87 units / 525,740TEU

Evergreen Group Capacity 195 vessels/ 1,086,335TEU (Up to 20180401)

==> picture [83 x 156] intentionally omitted <==

， 。 EVERGREN LINE fleet: Owned 108 and chartered 87 vessels owned capacity (TEU) at about 51.60%

。 15 owned vessels at 2,800TEU each and 10 x20,000 ULCV chartered units to be delivered before end 2019

。 20 X 11,000 chartered units to be delivered in 2020-2021 making group capacity close to 1.55 million TEU

6

Intensive Service Network

More than 150 routes covering over 250 ports in 319 offices worldwide

==> picture [94 x 92] intentionally omitted <==

==> picture [947 x 415] intentionally omitted <==

----- Start of picture text -----

loops
3 loops Trans- Atlantic
70+ loops
loops
Intra-Asia, Persian
loops Gulf
2 loops
1 loop 4 loops
Asia - Australia
North America -South America 4 loops Asia- South America
Asia- Africa
----- End of picture text -----

7

Strengthened by Ocean Alliance

More joint capacity/number of routes providing customers with more comprehensive and diverse services.

==> picture [94 x 92] intentionally omitted <==

==> picture [861 x 402] intentionally omitted <==

----- Start of picture text -----

聯盟 2M OCEAN ALLIANCE THE ALLIANCE
CMA CGM
Maersk COSCO Hapag-Lloyd
Member MSC Evergreen Line ONE
HMM OOCL Yang Ming
Total
7.73M 6.24M 3.76M
Capacity(TEU)
Joint
2.8M 3.7M 2.3M
Ca acit TEU
p y( )
Joint Service
28 42 33
Routes
Joint Vessels 256 350 257
----- End of picture text -----

Source ： Alphaliner website as of April 10th, 2018

8

2.Finacial Results

==> picture [94 x 94] intentionally omitted <==

==> picture [94 x 94] intentionally omitted <==

Consolidated O eratin Revenue Anal sis (YE 2017 VS. YE 2016) p g y

Volume : 25.13% 30% YE 2016 4.8755 million TEU YE 2017 5.6708 million TEU 25% +16.31% +13.58% 20% 15% 10% 5% 0% Volume O.F/ TEU Marine Freight Income

 The Volume increased by 16.31%YOY.

• Average O/F Rate (USD/ TEU) increased by 13.58% YOY .

• Marine Freight Income increased by 25.13% YOY.

10

The Proportion of Consolidated Operating Income

==> picture [94 x 92] intentionally omitted <==

*** FE-Africa, FE-South America, etc.**

• FE-Europe, FE-Mediterranean, Intra-Europe Feeder Service, etc.

* FE-North America

• Intra-Far East Gulf, Red sea, etc.

 The Proportion of Europe and America services are nearly 70%.

Data interval* ： YE 2017**

11

==> picture [94 x 92] intentionally omitted <==

Consolidated Main Operating Costs Analysis

==> picture [732 x 434] intentionally omitted <==

----- Start of picture text -----

NT $ 100 Million
700 608
568
600
500
400
210 215
157
300 144
195
145
200
100
0
YE 2016 YE 2017
Port Charge Connecting Expense Slottage Expense Fuel Cost
----- End of picture text -----

 YE 2016 V.S. YE 2017

‾ The Volume increased by

16.31% YOY.

‾ Port Charge increased by

7.06% YOY.

‾ Connecting Expense (transshipment/ logistic) increased by 2.37% YOY.

‾ Slottage Expense increased by 9.37% YOY.

‾ Fuel Cost increased by

34.33% YOY.

12

Consolidated Income Statement

==> picture [94 x 92] intentionally omitted <==

Unit: NT$ Millions

Item	YE 2016	YE 2017	Growth %
Operating revenue	124,467.61	150,582.69	21%
Gross Profit (Loss)	(3,494.11)	10,874.29	411%
Operating Income (Loss)	(7,848.26)	4,817.47	161%
Net Income (Loss)	(8,565.31)	6,661.62	178%
Profit(Loss), attribute to owners of the parent	(6,607.99)	7,005.17	206%
EBITDA	295.85	16,121.39	5349%
EPS	(1.88)	1.97

Unit: NT$ 100 Millions

EMC’s Operating Revenue

		1,506
		+ 21%
2000	1,245
1500
1000
500
0
	YE 2016	YE 2017

13

Consolidated operating income, gross profit margin and net income margin

==> picture [94 x 92] intentionally omitted <==

NT $ 100 Millions

==> picture [863 x 385] intentionally omitted <==

----- Start of picture text -----

450 15%
415
10.88%
8.56%
400 377 375
338 6.18% 9.69% 10%
342
350 319 2.14%
297 7.69% 5%
286
300 -1.31% 2.77%
0%
250
-3.84%
0.50% -1.14%
200
-5%
-3.24%
-5.00%
150
-4.28%
-9.31%
-10%
100
-15%
50 -16.04%
0 -20%
2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4
Operating Income Gross Profit Margin (%) Net Income Margin (%)
----- End of picture text -----

14

Consolidated Cash flow Analysis

==> picture [94 x 92] intentionally omitted <==

NT$100 Millions

==> picture [775 x 336] intentionally omitted <==

----- Start of picture text -----

382.68 381.08
370.30
329.85
390
330
52.85
60
37.47
32.28
40
22.53
14.94 19.63
20
0
-4.70
-8.80
-20 2017Q1 2017Q2 2017Q3 2017Q4
-8.39 -15.95
-40 -20.24
-60
-69.66
-80
----- End of picture text -----

==> picture [11 x 11] intentionally omitted <==

==> picture [11 x 10] intentionally omitted <==

營業活動之淨現金流入 Cash Flows From Operating Activities( 流出 ) 投資活動之淨現金流入 Cash Flows From Investing Activities( 流出 ) 籌資活動之淨現金流入 Cash Flows From Financing Activities( 流出 ) 現金及約當現金 Cash and Cash Equivalents

15

2018 Q1 Consolidated Operating Revenue

==> picture [94 x 92] intentionally omitted <==

NT$100 Millions

==> picture [730 x 394] intentionally omitted <==

 2018 Q1 Consolidated Operating Revenue is 36.769 Billion, increased by 6.47% YOY.

16

3. Container Shipping Outlook

==> picture [201 x 58] intentionally omitted <==

----- Start of picture text -----

Growing World Economy
----- End of picture text -----

==> picture [202 x 58] intentionally omitted <==

----- Start of picture text -----

Supply and Demand Gap
Narrowing
----- End of picture text -----

Alliance Trend Benefits

Competition

==> picture [94 x 94] intentionally omitted <==

==> picture [201 x 58] intentionally omitted <==

----- Start of picture text -----

Regulations &
Technologies Trigger
Transformation
----- End of picture text -----

17

Growing Global Economy Trade protectionism might bring uncertainties in the short term, but the momentum for mid-long term is still abundant.

==> picture [94 x 92] intentionally omitted <==

Global EconomyAdvancedNewly developed and
developing markets

Source：2018.01IMF  World Economic Outlook

==> picture [300 x 110] intentionally omitted <==

----- Start of picture text -----

IMF latest World Economy
Outlook Survey at January
2018
----- End of picture text -----

• The global economy will continue to grow in 2018 and 2019, with GDP growth expected to reach 3.9% per cent, up from 3.7% in 。

==> picture [295 x 109] intentionally omitted <==

----- Start of picture text -----

Forecast of economic
growth rate of the world's
leading economies:
----- End of picture text -----

、 • U.S.A.: 2017 2.3% 2018 2.7% 、 Europe: 2017 2.4% 2018 2.2% 、 China: 2017 6.8% 2018 6.6%

18

Supply and Demand Gap Narrowing Ship enlargements and port berth restrictions limit the excessive expansion of service routes.

==> picture [94 x 92] intentionally omitted <==

==> picture [593 x 380] intentionally omitted <==

==> picture [291 x 84] intentionally omitted <==

----- Start of picture text -----

Alphaliner forecasts 2018 market
total capacity growth slightly higher
than market volume growth rate
----- End of picture text -----

Capacity 6.0% vs Cargo 5.1%

==> picture [291 x 84] intentionally omitted <==

----- Start of picture text -----

2019 Market volume growth rate is
forecasted to be higher than total
market capacity growth
----- End of picture text -----

Cargo 4.6% vs Capacity 3.4%

Source ： Alphaliner Monthly Monitor Report April 2018

19

Alliance Trend Benefits Competition

Fewer and bigger surviving carriers after Hanjin Bankruptcy lead to more rational operating environment.

==> picture [94 x 92] intentionally omitted <==

==> picture [292 x 274] intentionally omitted <==

==> picture [289 x 274] intentionally omitted <==

==> picture [143 x 74] intentionally omitted <==

The market share Higher Market of three major Concentration alliances in the Global top 10 key east-west carriers’ market market up-lifted capacity share at • Alphaliner: 80.7% (vs 2016 Far East – North at 67.5%) ﹒ Only America 91% ； 7 carriers with Far East-Europe capacity over 99% 5%.

==> picture [144 x 75] intentionally omitted <==

Source ： Alphaliner Monthly Monitor Report April 2018

20

Regulations & Technologies Trigger Transformation To meet challenges from new regulations, big data and cyber security, threshold to operate is lifted higher.

==> picture [94 x 92] intentionally omitted <==

==> picture [877 x 175] intentionally omitted <==

==> picture [202 x 222] intentionally omitted <==

----- Start of picture text -----

International Maritime
Organization
(imo/international Maritime
Organization) resolution
after January 1, 2020, the
maximum sulphur content
of marine fuel in the global
sea area shall not exceed
0.5% m/m. (The emission
control zone uses 0.1% m/m
sulfur content.)
----- End of picture text -----

==> picture [201 x 222] intentionally omitted <==

----- Start of picture text -----

The International Ballast
Water Management
Convention came into effect
in September 2017 and
ships need to be replaced
with clean ballast water in
the deep water zone before
entering the port.
----- End of picture text -----

==> picture [202 x 222] intentionally omitted <==

----- Start of picture text -----

In response to global
warming, the active use of
onshore electricity to reduce
carbon emissions to reduce
environmental pollution is a
trend.
----- End of picture text -----

==> picture [201 x 222] intentionally omitted <==

----- Start of picture text -----

The trend of shipping
digitalization: The rise of e-
commerce platform, the
combination of high order
data analysis and IoT, the
development of ship
intelligence, the application
of block chain concept and
information security.
----- End of picture text -----

21

4. Business Strategy

Timely Shipbuilding & Green Upgrades

Strict Control of CostEffectiveness

Product & Service

Enhancement

==> picture [94 x 94] intentionally omitted <==

==> picture [201 x 58] intentionally omitted <==

----- Start of picture text -----

Diligent Cultivation of
Marine Talents
----- End of picture text -----

22

==> picture [94 x 92] intentionally omitted <==

Timely Shipbuilding & Green Upgrades

by ordering 20x2800TEU ships as main short haul loader when price was low.

==> picture [236 x 234] intentionally omitted <==

==> picture [417 x 163] intentionally omitted <==

Evergreen B Type Vessel Profile

• Length Overall (LOA): 211 meters

• Breadth: 32.8 meters

• Design Draft: 10 meters

• Container Intake: 2,800 Twenty-Foot Equivalent Units (TEU)

• Vessel Feature: wide-beam hull designed for shallower ports in the

• intra-Asia trade and better cargo carrying capability; max ship speed up to 21.8 knots to enhance on-time performance and competitiveness.

• Green Design: equipped with electronic-controlled fuel injection

• engine to reduce emissions by around 20%, which meets IMO standards for emission and energy efficiency.

• Delivery Year: 2017-2019

Data Source: Harper Peterson & Howe Robinson

23

Timely Shipbuilding & Green Upgrades

by ordering 20x11000TEU ships as main long haul loader when price was low.

==> picture [94 x 92] intentionally omitted <==

==> picture [467 x 328] intentionally omitted <==

Data Source ： ABS World Shipping & Shipbuilding Outlook – Issue: 2018 Spring

==> picture [404 x 150] intentionally omitted <==

----- Start of picture text -----

Sample CGI Source: SHI
----- End of picture text -----

Evergreen 11K Vessel Profile

• Length Overall (LOA): 333.9 meters

• Breadth: 48.4 meters

• Design Draft: 13 meters

• Container Intake: 11,000 Twenty-Foot Equivalent Units (TEU)

• Vessel Feature: Ship hull design adopts a twin-island concept,

• separating wheelhouse and accommodation block which increases navigation visibility as well as the cargo loading capacity; max ship speed up to 23 knots to enhance on-time performance and competitiveness. This model is shorter than ULCS on Asia– Europe trade, for easy access and maneuver in and out of ports among most loops, and can pass through the Panama Canal.

• Delivery Year: 2020-2021

24

Timely Shipbuilding & Green Upgrades

by pro actively upgrading green ship features to fulfill policy and efficiency.

==> picture [94 x 92] intentionally omitted <==

More fuel savings to newly built ships!

==> picture [626 x 254] intentionally omitted <==

More green upgrades to come on new ships!

25

Strict Control of Cost Effectiveness

by optimizing cost control, ship deployment, and operation efficiency.

==> picture [100 x 144] intentionally omitted <==

==> picture [100 x 144] intentionally omitted <==

Strict control of 4 main costs: stevedore/intermodal/transshipment/ bunker

==> picture [100 x 144] intentionally omitted <==

==> picture [100 x 144] intentionally omitted <==

Using AI platform to monitor ship schedule and fuel consumption; shortening port stay by efficient terminal operation.

==> picture [94 x 92] intentionally omitted <==

Lowering Box-to-Slot Ratio by more match-load, less empty reposition, fast turnaround, and optimized empty equipment allocation.

Deploy most adaptive vessel type in Ocean Alliance loops and make use of direct calling benefits in reducing transshipment cost.

26

Product & Service Enhancement by enriching both loop coverage and customer service interface.

==> picture [94 x 92] intentionally omitted <==

Partners with renowned e-commerce portal, Bolero International, in providing “i-B/L” & “i-Dispatch” solutions to help simplify customers’ supply-chain linkage.

==> picture [65 x 65] intentionally omitted <==

==> picture [144 x 145] intentionally omitted <==

Besides OA product, Intra-Asia and emerging market loops will be further expanded.

==> picture [215 x 215] intentionally omitted <==

With local service from global control, smooth coordination of cargo, equipment, and service quality, the Multiple-Trade Account(MTA) business expects fruitful growth in recent years.

==> picture [136 x 138] intentionally omitted <==

==> picture [74 x 69] intentionally omitted <==

27

Product & Service Enhancement

by integrated business/customer service teamwork with recognitions.

==> picture [94 x 92] intentionally omitted <==

==> picture [785 x 413] intentionally omitted <==

----- Start of picture text -----

Awarded “2017
Awarded “Carrier
Ocean Carrier of
of the Year 2016”
the Year” by
Awarded “2016 by Dollarama
Dollar Tree
Gold Award for
Awarded “Sea-
outstanding
Carrier
Ocean Carrier
Benchmark
Service and
Supplier of 2017”
Customer
by Huawei Tech.
Commitment” by
Co.
Awarded “Best Dick’s Sporting
Shipping Line – Goods
Asia-Africa of
2017” by Asia
Cargo News
Received “E- Awarded
Commerce “Supplier
Excellence Excellence
Award” from Award 2017” by
LOG-NET during Eastman
2014-2017 Chemical
Awarded “Data
Awarded “Global
Quality &
Carrier Scorecard
Performance
Award 2016” by
Award 2016” by
Kohl’s
Kohl’s
----- End of picture text -----

28

Diligent Cultivation of Marine Talents by academic cooperation plus regular recruits to develop marine talents.

==> picture [94 x 92] intentionally omitted <==

==> picture [287 x 231] intentionally omitted <==

----- Start of picture text -----

Encouraging students to study marine
----- End of picture text -----

==> picture [592 x 287] intentionally omitted <==

----- Start of picture text -----

Assigning senior captains and chief Regular recruiting in Taiwan’s three
engineers to teach in industry- Marine Technology Universities every
university cooperation classes. year.
----- End of picture text -----

29

==> picture [560 x 435] intentionally omitted <==

==> picture [94 x 92] intentionally omitted <==

Thank You!

http://www.evergreen-marine.com

30