Investor Presentation • Apr 12, 2021
Investor Presentation
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12 April 2021
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.
TO THE BEST KNOWLEDGE OF THE COMPANY, ITS OFFICERS AND DIRECTORS, THE INFORMATION CONTAINED IN THIS PRESENTATION IS IN ALL MATERIAL RESPECT IN ACCORDANCE WITH THE FACTS AS OF THE DATE HEREOF AND CONTAINS NO MATERIAL OMISSIONS LIKELY TO AFFECT ITS IMPORTANCE. PLEASE NOTE THAT NO REPRESENTATION OR WARRANTY (EXPRESS OR IMPLIED) IS MADE AS TO, AND NO RELIANCE SHOULD BE PLACED ON, ANY FORWARD-LOOKING STATEMENTS, INCLUDING PROJECTIONS, ESTIMATES, TARGETS AND OPINIONS, CONTAINED HEREIN. TO THE EXTENT PERMITTED BY LAW, THE COMPANY, ITS PARENT OR SUBSIDIARY UNDERTAKINGS AND ANY SUCH PERSON'S OFFICERS, DIRECTORS, OR EMPLOYEES DISCLAIM ALL LIABILITY WHATSOEVER ARISING DIRECTLY OR INDIRECTLY FROM THE USE OF THIS PRESENTATION.
THIS PRESENTATION CONTAINS CERTAIN 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, NOT HISTORICAL FACTS AND ARE SOMETIMES IDENTIFIED BY THE WORDS "BELIEVES", EXPECTS", "PREDICTS", "INTENDS", "PROJECTS", "PLANS", "ESTIMATES", "AIMS", "FORESEES", "ANTICIPATES", "TARGETS", AND SIMILAR EXPRESSIONS. THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESENTATION (INCLUDING ASSUMPTIONS, OPINIONS AND VIEWS OF THE COMPANY OR OPINIONS CITED FROM THIRD PARTY SOURCES) ARE SUBJECT TO RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL EVENTS TO DIFFER MATERIALLY FROM ANY ANTICIPATED DEVELOPMENT. NONE OF THE COMPANY, ANY OF ITS PARENT OR SUBSIDIARY UNDERTAKINGS OR ANY SUCH PERSON'S OFFICERS, DIRECTORS, OR EMPLOYEES PROVIDES ANY ASSURANCE THAT THE ASSUMPTIONS UNDERLYING SUCH FORWARD-LOOKING STATEMENTS ARE FREE FROM ERRORS, NOR DOES ANY OF THEM ACCEPT ANY RESPONSIBILITY FOR THE FUTURE ACCURACY OF THE OPINIONS EXPRESSED IN THIS PRESENTATION OR THE ACTUAL OCCURRENCE OF THE FORECASTED DEVELOPMENTS DESCRIBED HEREIN.
THE PRESENTATION CONTAINS INFORMATION OBTAINED FROM THIRD PARTIES. SUCH INFORMATION HAS BEEN ACCURATELY REPRODUCED AND, AS FAR AS THE COMPANY IS AWARE AND ABLE TO ASCERTAIN FROM THE INFORMATION PUBLISHED BY THAT THIRD PARTY, NO FACTS HAVE BEEN OMITTED THAT WOULD RENDER THE REPRODUCED INFORMATION TO BE INACCURATE OR MISLEADING IN ANY MATERIAL RESPECT.
AN INVESTMENT IN THE COMPANY INVOLVES RISK. SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE PREDICTED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION, INCLUDING, BUT NOT LIMITED TO, RISKS OR UNCERTAINTIES ASSOCIATED WITH THE COMPANY'S BUSINESS, DEVELOPMENT, GROWTH MANAGEMENT, FINANCING, MARKET ACCEPTANCE AND RELATIONS WITH CUSTOMERS AND, MORE GENERALLY, ECONOMIC AND BUSINESS CONDITIONS, CHANGES IN DOMESTIC AND FOREIGN LAWS AND REGULATIONS, TAXES, CHANGES IN COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN CURRENCY EXCHANGE AND INTEREST RATES AND OTHER FACTORS. SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALISE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, THE ACTUAL RESULTS OF THE COMPANY MAY VARY MATERIALLY FROM THOSE FORECASTED IN THIS PRESENTATION.
BY ATTENDING OR RECEIVING THIS PRESENTATION RECIPIENTS ACKNOWLEDGE THAT THEY WILL BE SOLELY RESPONSIBLE FOR THEIR OWN ASSESSMENT OF THE COMPANY AND THAT THEY WILL CONDUCT THEIR OWN ANALYSIS AND BE SOLELY RESPONSIBLE FOR FORMING THEIR OWN VIEW OF THE POTENTIAL FUTURE PERFORMANCE OF THE COMPANY AND ITS BUSINESS.
THE DISTRIBUTION OF THIS PRESENTATION MAY, IN CERTAIN JURISDICTIONS, BE RESTRICTED BY LAW. PERSONS IN POSSESSION OF THIS PRESENTATION ARE REQUIRED TO INFORM THEMSELVES ABOUT AND TO OBSERVE ANY SUCH RESTRICTIONS. NO ACTION HAS BEEN TAKEN OR WILL BE TAKEN IN ANY JURISDICTION BY THE COMPANY THAT WOULD PERMIT THE POSSESSION OR DISTRIBUTION OF ANY DOCUMENTS OR ANY AMENDMENT OR SUPPLEMENT THERETO (INCLUDING BUT NOT LIMITED TO THIS PRESENTATION) IN ANY COUNTRY OR JURISDICTION WHERE SPECIFIC ACTION FOR THAT PURPOSE IS REQUIRED.
IN RELATION TO THE UNITED STATES AND U.S. PERSONS, THIS PRESENTATION IS STRICTLY CONFIDENTIAL AND MAY ONLY BE DISTRIBUTED TO "QUALIFIED INSTITUTIONAL BUYERS", AS DEFINED IN RULE 144A UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "US SECURITIES ACT"), OR "QIBS". THE RECIPIENT OF THIS PRESENTATION IS PROHIBITED FROM COPYING, REPRODUCING OR REDISTRIBUTING THE PRESENTATION. THE SHARES OF THE COMPANY HAVE NOT AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OR ANY STATE SECURITIES LAW AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES UNLESS AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT IS AVAILABLE. ACCORDINGLY, ANY OFFER OR SALE OF SHARES IN THE COMPANY WILL ONLY BE MADE (I) TO PERSONS LOCATED IN THE UNITED STATES, ITS TERRITORIES OR POSSESSIONS THAT ARE QIBS IN TRANSACTIONS MEETING THE REQUIREMENTS OF RULE 144A UNDER THE U.S. SECURITIES ACT AND (II) OUTSIDE THE UNITED STATES IN "OFFSHORE TRANSACTIONS" IN ACCORDANCE WITH REGULATIONS S OF THE U.S. SECURITIES ACT. NEITHER THE U.S. SECURITIES AND EXCHANGE COMMISSION, NOR ANY OTHER U.S. AUTHORITY, HAS APPROVED THIS PRESENTATION.
THIS PRESENTATION IS BEING COMMUNICATED IN THE UNITED KINGDOM TO PERSONS WHO HAVE PROFESSIONAL EXPERIENCE, KNOWLEDGE AND EXPERTISE IN MATTERS RELATING TO INVESTMENTS AND WHO ARE "INVESTMENT PROFESSIONALS" FOR THE PURPOSES OF ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 AND ONLY IN CIRCUMSTANCES WHERE, IN ACCORDANCE WITH SECTION 86(1) OF THE FINANCIAL AND SERVICES MARKETS ACT 2000 ("FSMA"), THE REQUIREMENT TO PROVIDE AN APPROVED PROSPECTUS IN ACCORDANCE WITH THE REQUIREMENT UNDER SECTION 85 FSMA DOES NOT APPLY.
THE CONTENTS OF THIS PRESENTATION SHALL NOT BE CONSTRUED AS LEGAL, BUSINESS, OR TAX ADVICE. RECIPIENTS MUST CONDUCT THEIR OWN INDEPENDENT ANALYSIS AND APPRAISAL OF THE COMPANY AND THE SHARES OF THE COMPANY, AND OF THE DATA CONTAINED OR REFERRED TO HEREIN AND IN OTHER DISCLOSED INFORMATION, AND RISKS RELATED TO AN INVESTMENT, AND THEY MUST RELY SOLELY ON THEIR OWN JUDGEMENT AND THAT OF THEIR QUALIFIED ADVISORS IN EVALUATING THE COMPANY AND THE COMPANY'S BUSINESS STRATEGY.
THIS PRESENTATION REFLECTS THE CONDITIONS AND VIEWS AS OF THE DATE SET OUT ON THE FRONT PAGE OF THE PRESENTATION. THE INFORMATION CONTAINED HEREIN IS SUBJECT TO CHANGE, COMPLETION, OR AMENDMENT WITHOUT NOTICE. IN FURNISHING THIS PRESENTATION, THE COMPANY UNDERTAKE NO OBLIGATION TO PROVIDE THE RECIPIENTS WITH ACCESS TO ANY ADDITIONAL INFORMATION.
THIS PRESENTATION SHALL BE GOVERNED BY NORWEGIAN LAW. ANY DISPUTE ARISING IN RESPECT OF THIS PRESENTATION IS SUBJECT TO THE EXCLUSIVE JURISDICTION OF THE NORWEGIAN COURTS WITH THE OSLO CITY COURT AS LEGAL VENUE.
Container Market & Operational Update 04/2021 CONTENT
Operations
Historically strong operator profitability with liners continuously raising earnings expectations
Fleet utilization: 99.1% (Jan. 2021), 99.5% (Feb. 2021), 98.9% (Mar. 2021)(4)
(1) Rounded figures, normalized (excl. interim employment); please refer to the updated fleet employment overview in the appendix
(2) Based on management expectations, actual number of fixtures might deviate
(3) Consolidated fleet excl. expected revenue from scrubber-related profit shares of USD 8.5m / USD 7.0m for FY 2021 / FY 2022; charter period (min. / max.) based on management assessment
(4) Trading days incl. dry-dock days / ownership days
4
Container Market & Operational Update 04/2021 CONTENT
2. Container Market Update
| Jan. 2017 | Jan. 2018 | Jan. 2019 | Jan. 2020 | Jan. 2021 | Mar. 2021 | Comment | |
|---|---|---|---|---|---|---|---|
| Freight rates (SCFI) | 968.40 | 816.58 | 940.86 | 1,022.72 | 2,868.95 | 2,628.51 | Slightly decreasing at very high level |
| Charter rate Index (HARPEX) | 316 | 485 | 485 | 713 | 1,038 | 1,454 | All-time high |
| Idle vessels (% of total fleet) | 6.8 | 1.9 | 3.7 | 4.7 | 1.3 | 1.0 | 5-year low |
| Average charter period (months)(1) | 6.67 | 7.26 | 6.41 | 7.21 | 12.66 | 20.04 | 10-year high |
| Orderbook-to-Fleet ratio (%) | 16.2 | 13.7 | 12.5 | 10.6 | 10.6 | 12.2 | Historic low for smaller vessels (<5k TEU) |
| FY 2021 supply growth forecast (%) | 3.8 | 5.6 | 4.0 | 2.7 | 3.4 | 4.0 | Excess demand |
| FY 2021 demand growth forecast (%) | 5.6 | 4.3 | 1.8 | -1.9 | 5.0 | 5.7 | expected for 2021-22 |
No. of vessels
ORDER BOOK DEVELOPMENT
Container Market & Operational Update 04/2021 CONTENT
| No. Vessel |
Cluster | Charterer | MPCC Current Fixture (USD/day) |
Apr 21 |
May 21 |
Jun 21 |
Jul 21 |
Aug 21 |
Sep 21 |
Oct 21 |
Nov 21 |
Dec 21 |
Jan 22 |
Feb 22 |
Mar 22 |
Apr 22 |
Post Apr-22 (min. /max.) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 AS LAGUNA(1) |
1,000 grd | Seaboard | 6,500 | ||||||||||||||
| 2 AS PENELOPE |
2,500 gls | MSC | 8,250 | ||||||||||||||
| 3 AS PAULINE |
2,500 gls | Hapag-Lloyd | 25,000 | DD(2) | |||||||||||||
| 4 AS CARELIA |
2,800 gls | Hapag-Lloyd | 9,250 | DD(2) | |||||||||||||
| 5 AS PAULINA |
2,500 HR grd | MSC | 8,200 | ||||||||||||||
| 6 AS CLARITA |
2,800 gls | Evergreen | 30,000 | ||||||||||||||
| 7 AS SOPHIA |
1,700 grd | BTL | 13,000 | DD(2) | |||||||||||||
| 8 AS CLEOPATRA |
2,800 grd | MSC | 10,150(3) | DD(2) | |||||||||||||
| 9 AS CARLOTTA |
2,800 grd | GSL / ZISS | 14,750 | DD(2) | |||||||||||||
| 10 AS CHRISTIANA |
2,800 grd | CMA CGM | 10,000 | DD(2) | |||||||||||||
| 11 AS COLUMBIA |
2,800 gls | Sinokor | 9,750 | DD(2) | |||||||||||||
| 12 AS SICILIA |
1,700 grd | Global Feeder Services | 10,500 | ||||||||||||||
| 13 AS CONSTANTINA |
2,800 gls | Heung-A | 10,250 | ||||||||||||||
| 14 AS SERENA |
1,700 grd | Sealand Maersk Asia Pte. Ltd. | 11,500 | ||||||||||||||
| 15 AS PAOLA |
2,500 grd | CMA CGM | 10,350 | ||||||||||||||
| 16 AS ROBERTA |
1,400 gls | BTL | 11,300 | DD(2) | |||||||||||||
| 17 CORDELIA |
2,800 gls | Sinokor | 10,000(3) | ||||||||||||||
| 18 AS CLEMENTINA |
2,800 gls | Heung-A | 10,000 | DD(2) | |||||||||||||
| 19 AS SEVILLIA |
1,700 grd | CMA CGM | 12,000 | ||||||||||||||
| 20 AS SELINA |
1,700 grd | Hapag-Lloyd | 11,800 | ||||||||||||||
| 21 AS SVENJA |
1,700 grd | CMA CGM | 13,000 | ||||||||||||||
| 22 AS SARA |
1,700 grd | OOCL | 13,000 | ||||||||||||||
| Min. period | Max. period |
| No. Vessel |
Cluster | Charterer | MPCC Current Fixture (USD/day) |
Apr 21 |
May 21 |
Jun 21 |
Jul 21 |
Aug 21 |
Sep 21 |
Oct 21 |
Nov 21 |
Dec 21 |
Jan 22 |
Feb 22 |
Mar 22 |
Apr 22 |
Post Apr-22 (min. /max.) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 23 AS SUSANNA |
1,700 grd | COSCO | 14,000 | ||||||||||||||
| 24 AS FREYA |
1,300 grd | CMA CGM | 10,500 | ||||||||||||||
| 25 AS FENJA |
1,200 gls | New Golden Sea Shipping | 13,450 | ||||||||||||||
| 26 AS CARINTHIA |
2,800 gls | RCL | 24,750(4) | ||||||||||||||
| 27 AS PATRICIA |
2,500 grd | Maersk Line | 15,280(4) | DD(3) | Mar-22 / Jun-22 | ||||||||||||
| 28 CARPATHIA |
2,800 gls | Wan Hai Lines | 16,000(4) | Mar-22 / May-22 | |||||||||||||
| 29 AS PATRIA |
2,500 grd | not disclosed | 10,250 | 14,500 | Mar-22 / Jun-22 | ||||||||||||
| 30 AS CLARA |
2,800 gls | Diamond Line (COSCO) | 9,900 | 24,750 | DD(3) | Mar-22 / Jun-22 | |||||||||||
| 31 AS CAMELLIA |
2,800 gls | Maersk | 24,550 | Apr-23 / Aug-23 | |||||||||||||
| 32 AS NADIA |
3,500 gls | Hapag-Lloyd | 18,500 | May-22 / Jun-22 |
|||||||||||||
| 33 AS SERAFINA |
1,700 grd | ONE | 14,175 | May-22 / Jul-22 | |||||||||||||
| 34 CARDONIA |
2,800 gls | ZISS | 11,500(4) | Jan-22 / Jul-22 | |||||||||||||
| 35 AS PALINA |
2,500 HR grd | not disclosed | 11,000(1) | Aug-22 | |||||||||||||
| 36 AS PETRONIA |
2,500 HR grd | not disclosed | 11,000(1) | Aug-22 | |||||||||||||
| 37 AS ANGELINA |
2,200 grd | Maersk Line | 10,000 | 21,000 | Jun-22 / Aug-22 | ||||||||||||
| 38 AS RAFAELA |
1,400 gls | Sea Consortium |
16,000 | 18,500 | Jul-22 / Sep-22 | ||||||||||||
| 39 AS SAMANTA |
1,700 grd | not disclosed | 9,000/11,750(1) | Aug-22 / Oct-22 |
|||||||||||||
| 40 AS SAVANNA |
1,700 grd | not disclosed | 9,000/11,750(2) | Aug-22 / Oct-22 | |||||||||||||
| 41 CIMBRIA |
2,800 gls | GSL / ZISS | 17,750(4) | Aug-22 / Oct-22 | |||||||||||||
| 42 AS FLORA |
1,200 gls | China United Lines | 7,450 | 16,900 | Sep-22 / Nov-22 | ||||||||||||
| 43 AS SABRINA |
1,700 grd | not disclosed | 9,000/11,750(2) | Sep-22 / Nov-22 | |||||||||||||
| 44 AS PALATIA |
2,500 grd | not disclosed | /13,000(2) 10,000 |
Sep-22 / Nov-22 | |||||||||||||
| 45 AS PETRA |
2,500 HR grd | not disclosed | /13,000(2) 10,000 |
Sep-22 / Nov-22 | |||||||||||||
| 46 AS PETULIA |
2,500 grd | not disclosed | /13,000(2)(4) 10,000 |
Sep-22 / Nov-22 | |||||||||||||
| 47 AS CAROLINA |
2,800 gls | GSL / ZISS | 17,750 | Aug-22 / Nov-22 | |||||||||||||
| 48 AS CALIFORNIA |
2,800 gls | Sealand Maersk Asia Pte. Ltd. | 18,000 | Jul-22 / Nov-22 |
|||||||||||||
| 49 AS LAETITIA |
1,000 grd | King Ocean | 5,750 | 9,250 | Feb-23 / Apr-23 | ||||||||||||
| 50 AS CYPRIA |
2,800 gls | CMA CGM | 18,400 | DD(3) | Feb-23 / May-23 | ||||||||||||
| Min. period | Max. period |
(1) Contracted base rate; besides base rate the charter also includes a savings sharing mechanism in favour of MPCC
(2) Contracted base rate, index-linked (New ConTex) with a floor of USD 9,000 and a ceiling of USD 11,750 for 1,700 TEU vessels and a floor of USD 10,000 and a ceiling of
(4) Vessel of Bluewater joint venture
| No. Vessel |
Cluster | Charterer | MPCC Current Fixture (USD/day) |
Apr 21 |
May 21 |
Jun 21 |
Jul 21 |
Aug 21 |
Sep 21 |
Oct 21 |
Nov 21 |
Dec 21 |
Jan 22 |
Feb 22 |
Mar 22 |
Apr 22 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 51 AS FLORETTA |
1,300 grd | Pool | Pool rate | DD(2) | ||||||||||||
| 52 AS FRANZISKA |
1,300 grd | Pool | Pool rate | |||||||||||||
| 53 AS FATIMA |
1,300 gls | Pool | Pool rate | |||||||||||||
| 54 AS ROSALIA |
1,500 gls | Pool | Pool rate | |||||||||||||
| 55 AS ROMINA |
1,500 gls | Pool | Pool rate | |||||||||||||
| 56 AS FILIPPA |
1,300 grd | Pool | Pool rate | |||||||||||||
| 57 AS FELICIA |
1,300 grd | Pool | Pool rate | DD(2) | ||||||||||||
| 58 AS FEDERICA |
1,300 grd | Pool | Pool rate | |||||||||||||
| 59 AS FIORELLA |
1,300 grd | Pool | Pool rate | |||||||||||||
| 60 AS FAUSTINA |
1,300 grd | Pool | Pool rate | |||||||||||||
| 61 AS RICCARDA |
1,500 gls | Pool | Pool rate | DD(2) | ||||||||||||
| 62 AS RAGNA |
1,500 gls | Pool | Pool rate | |||||||||||||
| 63 AS FLORIANA |
1,300 gls | Pool | Pool rate | |||||||||||||
| 64 AS FABIANA |
1,300 grd | Pool | Pool rate | DD(2) | ||||||||||||
| 65 AS FABRIZIA |
1,300 grd | Pool | Pool rate |
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