Investor Presentation • Apr 21, 2023
Investor Presentation
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Gram Car Carriers ASA
21 April 2023
THIS PRESENTATION IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, ITS TERRITORIES OR POSSESSIONS, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR TO ANY RESIDENT THEREOF, OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. THIS PRESENTATION IS NOT AN OFFER OR AN INVITATION TO BUY OR SELL SECURITIES.
This presentation (the "Company Presentation") has been prepared by Gram Car Carriers ASA (the "Company", and together with its consolidated subsidiaries, the "Group").
This Company Presentation has been prepared for information purposes only, and does not constitute or form part of, and should not be construed as, any offer, invitation or recommendation to purchase, sell or subscribe for any securities in any jurisdiction, and neither the issue of the information nor anything contained herein shall form the basis of or be relied upon in connection with, or act as an inducement to enter into, any investment activity. This Company Presentation does not purport to contain all of the information that may be required to evaluate any investment in the Company or any of its securities and should not be relied upon to form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This presentation is intended to present background information on the Company, its business and the industry in which it operates and is not intended to provide complete disclosure upon which an investment decision could be made.
This Company Presentation is furnished by the Company, and it is expressly noted that no representation or warranty, express or implied, as to the accuracy or completeness of any information included herein is given by the Company. The contents of this Company Presentation are not to be construed as financial, legal, business, investment, tax or other professional advice. Each recipient should consult with its own professional advisors for any such matter and advice. Generally, any investment in the Company should be considered as a high-risk investment.
This Company Presentation is current as of 21 April 2023. Neither the delivery of this Company Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. This Company Presentation may contain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. Any forward-looking statements contained in this Company Presentation, including assumptions, opinions and views of the Company or cited from third party sources, are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. The Company provides no assurance that the assumptions underlying such forward-looking statements are free from errors and does not accept any responsibility for the future accuracy of the opinions expressed in this Company Presentation or the actual occurrence of the forecasted developments.
The distribution of this Company Presentation by the Company in certain jurisdictions is restricted by law. Accordingly, this Company Presentation may not be distributed or published in any jurisdiction except under circumstances that will result in compliance with any applicable laws and regulations. This Company Presentation does not constitute an offer of, or an invitation to purchase, any securities.
IN RELATION TO THE UNITED STATES AND U.S. PERSONS, THIS PRESENTATION IS BEING FURNISHED ONLY TO INVESTORS THAT ARE "QIBs", AS DEFINED IN RULE 144A UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"). THE SHARES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER U.S. SECURITIES ACT OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR OTHER JURISDICTION IN THE UNITED STATES, AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES, OR TO OR FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON, EXCEPT PURSUANT TO AN APPLICABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS.
This Company Presentation is subject to Norwegian law, and any dispute arising in respect of this Company Presentation is subject to the exclusive jurisdiction of Norwegian courts with Oslo District Court as first venue.
USD 41.1 million (USD 38.3 million)
USD 27.7 million (USD 23.0 million)
USD 13.1 million
(USD 9.9 million)
USD 6.56 million (USD 4.96 million)
USD 25,620 (USD 22,720)
95% (97%)
Net profit Planned/unplanned off-hire Open revenue days 20233 39/46 days (21/32 days)
Dividend proposed Average cash break-even2 Average renewal duration4
USD 16,920 (USD 17,270)
Revenue Average TC rate1 Revenue backlog added USD 61 million (USD 326 million)
EBITDA Utilisation Revenue backlog end of quarter3 USD 874 million (USD 856 million)
192/3% (970/10%)
4.5 years
1) On cash flow basis, revenue as per income statement are on straight-line basis in accordance with IFRS
2) Current break-even comprise of budgeted vessel running expenses, insurance, overheads and debt servicing based on prevailing 3m SOFR implied forward rates and next 12 months' debt amortisation schedule. Capex not included
3) As per end of reporting date, assuming mid-point charter party redelivery date
4) Average duration of all new charters concluded after listing in January 2022.
Fleet age of approx. 11 years vs. world fleet average of approx. 15 years
10
Mid-size
• Viking Odessa • Hoegh Caribia • City of Oslo • Viking Constanza • Viking Princess 1 (2,000 CEU)
• Viking Amber • Viking Coral • Viking Diamond • Viking Emerald • Viking Ocean • Viking Sea • Viking Drive 2 • Viking Paglia 3 • Viking Passero 3 • Viking Passama 3 (4,200 CEU)
1 NRP • Mediterranean Sea (5,000 CEU)
• Viking Adventure • Viking Bravery • Viking Destiny • Viking Queen 4 (6,700 CEU)
2) Current break-even comprise of budgeted vessel running expenses, insurance, overheads and debt servicing based on prevailing 3m SOFR implied forward rates and next 12 months' debt amortisation schedule. Capex not included
3) As per end of reporting period, assuming mid-point charter party redelivery date
Open revenue days3 2023 192/3% (670/10%) Open revenue days3 2024 1,391/20% (2,123/31%) Open revenue days3 2025 1,656/24% (2,386/34%) Revenue backlog3 USD 874m (856m) Average cash break-even2 USD 16,920 (17,270)
| Q1'23 | Q2'23 | Q3'23 | Q4'23 | Q1'24 | Q2'24 | Q3'24 | Q4'24 | 2025 | 2026 | 2027 | 2028 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Viking Constanza | 2,000 | USD 17,000 | TIME CHARTER | ||||||||||
| Viking Queen | 7,000 | USD 16,300 | LATEST FIXTURES | ||||||||||
| Viking Princess | 1,000 | USD 10,450 | OPTION | ||||||||||
| Viking Amber | 4,200 | USD 23,000 | |||||||||||
| Viking Passero | 5,000 | USD 27,700 | |||||||||||
| Hoegh Caribia | 2,000 | USD 22,000 | |||||||||||
| Viking Drive | 3,500 | USD 26,550 | |||||||||||
| City of Oslo | 2,000 | USD 14,430 | USD 27,750 | ||||||||||
| Viking Coral | 4,200 | USD 30,527 | |||||||||||
| Viking Odessa | 2,000 | USD 14,500 | USD 27,750 | ||||||||||
| Viking Emerald | 4,200 | USD 28,000 | |||||||||||
| Viking Sea | 4,200 | USD 30,612 | |||||||||||
| Viking Ocean | 4,200 | USD 35,000 | |||||||||||
| Viking Diamond | 4,200 | USD 35,000 | |||||||||||
| Viking Destiny | 6,700 | USD 65,000 | |||||||||||
| Viking Adventure | 6,700 | USD 56,074 | |||||||||||
| Viking Paglia | 5,000 | USD 33,300 | |||||||||||
| Viking Bravery | 6,700 | USD 18,000 | USD 64,900 | USD 48,000 | |||||||||
| Viking Passama | 5,000 | USD 33,300 |
Enhanced earnings visibility with operators entering longer contracts
3%/20%/24% open revenue day for 2023/24/25
USD 874 million Backlog 31 March 20231
Revenue backlog1 Revenue backlog by year of expected recognition1 USD million USD million
| In USD thousands1 | Q1 2023 | Q4 2022 | 2022 |
|---|---|---|---|
| Operating revenue | 41,146 | 38,250 | 120,976 |
| EBITDA | 27,702 | 22,953 | 70,596 |
| EBIT | 20,060 | 16,039 | 43,126 |
| Profit for the period | 13,121 | 9,928 | 23,877 |
| Cash flow from operating activities | 25,378 | 35,577 | 79,617 |
| Cash and cash equivalents | 23,701 | 30,287 | 30,287 |
| Interest-bearing debt | 319,213 | 339,470 | 339,470 |
| Equity ratio | 42% | 40% | 40% |
Current market TC rates per day1 (one year)
T1) TC development for Mid-size and Panamax from Clarksons. TC rate Distribution vessels and no. of vessels open (tonnage providers global fleet) based on Company's own estimates
Jun 2022 Apr 2023
• Robust backlog due to availability challenges keep demand at historically elevated levels
• Investment cycle started by the Covid-19 commodity boom has generated significant backlog that is decreasing slowly due to shortage of equipment and lack of transport capacity
Car carrier fleet growing, but still below average replacement need considering negative backlog
Upcoming deliveries will not make up total replacement need
Note: Replacement need estimated basis 750 vessels with an average economic lifetime of 28 years
Market capable of absorbing orderbook
Previously CFO in Hafnia Tankers Aps in Copenhagen following 18 years with Nordea Bank as SVP and Head of Europe, Asia & Middle East of Nordea Bank's Shipping, Offshore and Oil Service. CEO of Gram Car Carriers from 2018.
Previously at Hoegh Autoliners from 1996 where he held various positions, including two periods in Japan in charge of Commercial Operations in East Asia. Joined Gram Car Carriers in 2013.
Previously CFO and MD at Dolphin Drilling (Singapore). GM of Gram Car Carriers (Singapore) 2009-11 and served as a Director of the Company from 2012 to 2020. Started his professional career with KPMG and qualified as a State Authorised Public Accountant from Norway
Previously at Pareto Securities (Corporate Finance) in Singapore and Tufton Oceanic (Asset Backed Investments) in London. Joined Gram Car Carriers in 2011.
Previously served as CEO and CFO of Höegh Autoliners, and CFO of D/S Norden. He has previously held board positions as chairperson of Havyard Ship Technology; board member of the Norwegian Shipowner's Mutual War Risk Insurance Association (DNK), and director of Euro Marine Logistics NV.
Mr. Schües is the principal and CEO of F. Laeisz GmbH. He has long experience as Designated President of BIMCO, Vice Chairman of UK P&I Club and Member of the Presidential Committee of German Shipowners Association.
Christine Rødsæther has since 2002 worked as a lawyer and partner of the law firm Simonsen Vogt Wiig AS. Furthermore, she is a board member in Odfjell SE and Tufton Oceanic Assets Limited, and Mrs. Rødsæther has previously acted as board member in Norwegian Guarantee Institute for Export (GIEK), Grieg Shipping, Songa Bulk ASA and Bank Norwegian ASA. She has extensive experience in international shipping and offshore transactions, banking and finance and general contract law. Mrs. Rødsæther has previous experience as lawyer from Wikborg, Rein & Co. including the London office and Andersen Legal ANS. She holds a Master of Law from the University of the Pacific, Sacramento, California and Cand. Jur. from the University of Bergen
Mr. Gram is currently Partner and Investment Director in Vanir Green Industries, an energy transition focused investment company. He is a board member of several private companies related to energy transition and circular economy, and has previously acted as board member of Element ASA. Mr. Gram has over 20 years' experience from consulting, investment banking and investments, having been CEO of ProCorp AS, MD of Gram Shipping AS, a Partner in Pareto Securities AS, and consultant in Capgemini Consulting.
Mr. Locke is the Chair of Motor Fuel Group and Non-Executive Chair of Well-Safe Solutions Ltd. He is the former Executive Chair of Abbot Group plc, an oil services company which he founded in 1992. Mr. Locke holds an M.A (Hons) in History and Economics from Wadham College Oxford
Dr. Bornheim is Managing Director of Peter Döhle Schiffahrts KG. In the past she was inhouse counsel for Deutsche Shell AG and MobilOil AG. Gaby is President of the German Shipowners Association. She studied economics and law at Westfälische Wilhelms-Universität Münster, Germany and passed her second state exam before the Higher Regional Court of Hamburg, Germany.
Clivia Breuel (née Bunnemann) is a partner of AL Capital Holding GmbH & Co. KG, a diversified and family owned shipowning group and parent company of AL Maritime Holding. She is Chair of the Board of the PBS Foundation. She has long experience in both shipping and banking and holds a master's degree in Business Studies from the EBS Business School Oestrich-Winkel Alternatively: Master's in Business Studies
Mr. Nicolaus Bunnemann is the Managing Partner of AL Capital Holding GmbH & Co. KG; a diversified family owned shipowning group. He is the Founder and Managing Director of Atlantic Lloyd GmbH & Co. KG, the Group's operating arm in Hamburg, Germany. Mr Bunnemann is a member of the board of the German Shipowners' Defence Association as well as board member of a number of maritime investment companies and holds a Masters Degree in Shipping, Trade and Finance.
| Name | No. of shares | % of total | % of top 20 | Country |
|---|---|---|---|---|
| 1 F. LAEISZ GMBH | 8,199,807 | 28.00% | 34.62% | DEU |
| 2 AL MARITIME HOLDING PTE LTD | 3,598,438 | 12.29% | 15.19% | SGP |
| 3 GLENRINNES FARMS LIMITED | 1,938,782 | 6.62% | 8.19% | GBR |
| 4 HM GRAM INVESTMENTS III/ HM GRAM ENTERPRISES LTD/HMG AS | 1,792,496 | 6.12% | 7.57% | CYP |
| 5 AS STRAEN | 817,688 | 2.79% | 3.45% | NOR |
| 6 BNP PARIBAS | 782,040 | 2.67% | 3.30% | JEY |
| 7 BNP PARIBAS | 710,122 | 2.42% | 3.00% | FRA |
| 8 BNP PARIBAS | 701,800 | 2.40% | 2.96% | ITA |
| 9 LARSSON SHIPPING AB | 629,008 | 2.15% | 2.66% | SWE |
| 10 CAR CARRIER PARTNERS L.P. | 600,176 | 2.05% | 2.53% | CYM |
| 11 NORDEA BANK ABP | 581,030 | 1.98% | 2.45% | SWE |
| 12 VERDIPAPIRFONDET DNB SMB | 570,100 | 1.95% | 2.41% | NOR |
| 13 HAMILTON CARRIERS LTD | 499,638 | 1.71% | 2.11% | USA |
| 14 HESNES INVEST AS | 414,136 | 1.41% | 1.75% | NOR |
| 15 UBS SWITZERLAND AG | 364,091 | 1.24% | 1.54% | CHE |
| 16 SURFSIDE HOLDING AS | 327,233 | 1.12% | 1.38% | NOR |
| 17 CLEARSTREAM BANKING S.A. | 326,061 | 1.11% | 1.38% | LUX |
| 18 SONGA CAPITAL AS | 296,681 | 1.01% | 1.25% | NOR |
| 19 VERDIPAPIRFONDET STOREBRAND NORGE | 295,453 | 1.01% | 1.25% | NOR |
| 20 CURRUS NAVI AS | 238,009 | 0.81% | 1.00% | NOR |
| Total Shares outstanding | 29,285,022 | 23,682,789 |
Compliant with the SASB marine transportation standard (2018) and the Norwegian ship owners' association ESG reporting guidelines
GCC will reduce total GHG emissions by at least 50% by 2050 1
Gram Car Carriers ASA
E-mail: [email protected]
gramcar.com
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