Investor Presentation • Feb 9, 2023
Investor Presentation
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Gram Car Carriers ASA
9 February 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 9 February 2022. 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 38.3 million (Q3'22: USD 31.5 million)
USD 23.0 million (Q3'22: USD 18.8 million)
USD 9.9 million (Q3'22: USD 6.5 million)
USD 4.96 million (Q3'22: USD 3.26 million)
USD 22,720 (Q3'22: USD 19,960)
97% (Q3'22: 97%)
Net profit Q4'22 Planned/unplanned off-hire Q4'22 Open revenue days 20233 21/32 days (Q4'22: 21/29 days)
USD 17,270 (Q3'22: USD 15,840)
Revenue Q4'22 Average TC rate Q4'221 Revenue backlog added in Q4'22 USD 326 million (Q3'22: USD 294 million)
EBITDA Q4'22 Utilisation Q4'22 Revenue backlog end Q4'223 USD 856 million (Q3'22: USD 563 million)
670/10% (Q3'22: 940/14%)
Dividend proposed Q4'22 Average cashbreak-even2 Open revenue days 20243 2,123/31% (Q3'22: 2,488/38%)
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
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 Emerald • Viking Ocean
• Viking Sea
• Viking Adventure • Viking Bravery • Viking Destiny • Viking Queen 4 (6,700 CEU)
1) 1,000 CEU 2) 3,500 CEU 3) 5,000 CEU 4) 7,000 CEU 5) One vessel and four Newbuilding's under commercially management on behalf of third-party clients
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 period, assuming mid-point charter party redelivery date
expected well ahead of expiry of existing contracts
with operators entering longer contracts
open revenue day for 2023/24/25
Backlog 31 December 20221
1 Gross TC revenue before commissions and off-hire provisions on IFRS basis
Gross TC revenue before commissions and off-hire provisions on IFRS basis
| In USD thousands1 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | 2022 |
|---|---|---|---|---|---|
| Operating revenue | 38,250 | 31,451 | 27,740 | 23,534 | 120,976 |
| EBITDA | 22,953 | 18,788 | 16,165 | 12,691 | 70,596 |
| EBIT | 16,039 | 11,887 | 9,294 | 5,906 | 43,126 |
| Profit for the period | 9,928 | 6,521 | 5,348 | 2,081 | 23,877 |
| Cash flow from operating activities |
35,577 | 15,923 | 19,162 | 8,955 | 79,617 |
| Cash and cash equivalents | 30,287 | 33,126 | 26,496 | 22,948 | 30,287 |
| Interest-bearing debt | 339,470 | 325,686 | 325,988 | 333,005 | 339,470 |
| Equity ratio | 40% | 40% | 40% | 39% | 40% |
Recent market fixtures reflect strong demand and limited supply
TC rate Distribution vessels and no. of vessels open (tonnage providers global fleet) based on Company's own estimates
recover towards pre-covid levels
Jun 30, 2022 Dec 31, 2022
Inventory levels in Europe are recovering slightly but are still substantially lower than the 4.5 million cars prior to the coronavirus pandemic.
H&H export markets remained strong in Q4, with full year volumes at historically high levels
Car carrier fleet growing, but still below average replacement need considering negative backlog
Upcoming deliveries will not make up total replacement need Ageing fleet implies potential for increased scrapping # of vessels
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022
Source: Fearnresearch, SIN Clarksons, Company Information 22
Note: Replacement need estimated basis 750 vessels with an average economic lifetime of 28 years
Number of vessels coming open for re-chartering is getting smaller as operators fix longer to cover contracts. Total around 28 vessels coming open in 2023.
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.
Mrs. Rødsæther has since 2002 been a partner in the law firm Simonsen Vogt Wiig AS and has extensive experience in banking and finance, contract law as well as shipping and offshore. She has previous experience from Wikborg, Rein & Co. and Andersen Legal ANS.
Mr Gram is currently Partner and Investment Director in Vanir Green Industries, an energy transition focused investment company. Between 2020 and 2022 he was CEO of ProCorp AS, a boutique SME focused investment bank. Mr Gram has a long and varied experience from capital markets and investments. Previously he worked as MD of Gram Shipping AS, and he was Partner - Corporate Finance at Pareto Securities.
Former executive Chairman of Abbot Group Plc, an oil services company which he founded in 1992. Currently Chairman of Motor Fuel Group, Well-Safe Solutions Ltd. and First Property Group Plc.
Dr. Bornheim is Managing Director of Peter Döhle Schiffahrts KG. In the past she was inhouse councel for Deutsche Shell AG and MobilOil AG. Gaby is President of the German Shipowners Association.
Mrs. Clivia Breuel (née Bunnemann) is a Partner of AL Capital Holding GmbH & Co. KG, a diversified shipowning group and parent company of AL Maritime Holding. She has long experience in both shipping and banking and holds a Master degree in Business Studies from the EBS Business School Oestrich-Winkel. She is Chairwoman of the Board of the PBS Foundation and member of the board of trustee of another foundation.
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 | % | Country | |
|---|---|---|---|---|
| 1 | F. LAEISZ GMBH | 7,945,229 | 27.13% | DEU |
| 2 | AL MARITIME HOLDING PTE LTD | 2,686,706 | 9.17% | SGP |
| 3 | GLENRINNES FARMS LIMITED | 1,938,782 | 6.62% | GBR |
| 4 | HM GRAM INVESTMENTS III LIMITED/HM GRAM ENTERPRISES LIMITED/HMG AS |
1,792,496 | 6.12% | CYP |
| 5 | CAR CARRIER PARTNERS L.P. | 1,220,901 | 4.17% | CYM |
| 6 | AS STRAEN | 817,688 | 2.79% | NOR |
| 7 | BNP PARIBAS | 782,040 | 2.67% | JEY |
| 8 | BNP PARIBAS | 710,122 | 2.42% | FRA |
| 9 | LARSSON SHIPPING AB | 613,351 | 2.09% | SWE |
| 10 | VERDIPAPIRFONDET DNB SMB | 587,248 | 2.01% | NOR |
| 11 | BNP PARIBAS | 569,304 | 1.94% | ITA |
| 12 | HAMILTON CARRIERS LTD | 499,638 | 1.71% | USA |
| 13 | HESNES INVEST AS | 414,136 | 1.41% | NOR |
| 14 | SVENSKA HANDELSBANKEN AB | 389,290 | 1.33% | SWE |
| 15 | UBS SWITZERLAND AG | 359,736 | 1.23% | CHE |
| 16 | SURFSIDE HOLDING AS | 300,000 | 1.02% | NOR |
| 17 | SONGA CAPITAL AS | 296,681 | 1.01% | NOR |
| 18 | VERDIPAPIRFONDET STOREBRAND NORGE | 296,306 | 1.01% | NOR |
| 19 | THE BANK OF NEW YORK MELLON | 239,111 | 0.82% | USA |
| 20 | CURRUS NAVI AS | 238,009 | 0.81% | NOR |
| Top 20 Shareholders Total shares outstanding |
22,696,774 29,285,022 |
77.50% 100% |
Compliant with the SASB marine transportation standard (2018) and the Norwegian ship owners' association ESG reporting guidelines
1) Compared to 2008 Environment • Adhere to the Poseidon Principles - a global framework for responsible ship finance • Biofuel trial on PCTC vessels City of Oslo and Viking Constanza – to reduce carbon emission of up to 90% • Adhere to IMO's Sulphur fuel content requirement, lowering upper limit from 3.5 to 0.5% • Adhere to EU ship recycling regulation and the Hong Kong convention for the safe and environmentally sound recycling of ships Social • Zero harm by maintaining a safe environment and protecting people's health • Investing in training and development, from onboarding to formal on-the-job training • Suppliers must adhere to labor conditions set by Gram's Human Rights Policy • Adhere to the Neptune Declaration - protecting workers' rights and establishes best-practices for crew changes through the global COVID-19 pandemic Governance • Adhere to Corporate Governance guidelines from the Norwegian Corporate Governance Board (NUES) • Adhere to Marine Anti-Corruption Network (MACN) – the leading anti-corruption initiative in the Maritime Industry • Adhere to EU's General Data Protection Regulation (GDPR) and the IMO Resolution on Maritime Cyber Risk Management
Gram Car Carriers ASA
E-mail: [email protected]
gramcar.com
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