SNC — Investor Presentation 2021

Jun 17, 2021

新 興 航 Sincere Navigation Corporation Company Presentation 運 18[th] June 2021 新興航運股份有限公司 Sincere Navigation Corporation

Company Overview

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Key Facts

Sincere Navigation (”Sincere”), established in 1968, owns and operates 15 dry bulk and tanker vessels, with an average age of 11 years and almost 3mn dwt.

Key Highlights:

• Anchored by multiple generations of shipping expertise and family heritage, Sincere traces its lineage back to Charles Eddie Hsu and the first “Chou Shan” vessel, launched in 1922.

• Actively engaged with the community and industry associations, the latest generation is represented by Jack Hsu, also has served as the Chairman of the Hong Kong Shipowners Association.

• With Operations in Taipei, Hong Kong, Europe, and Vancouver, Sincere owns and operates a fleet of vessels with a strong focus on asset management and operational excellence.

• Balanced supply / demand dynamics for its core fleet of Capesize dry bulk vessels and incremental recovery of VLCC rates, is driving a recovery in profitability, supported by its moderate leverage and opportunities for asset acquisitions.

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Fleet Profile
Handymax, 1 VLCC, 3
VLCC
VLOC, 1 VLOC
Kamsarmax, 2
Capesize
Kamsarmax
Handymax
Capesize , 8
Total Fleet Tonnage & Mix
Tanker Dry Bulk
30% 70%
894,438mt ,1,869,950mt
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Company 2021 Overview 新興航運股份有限公司 Sincere Navigation Corporation

Sincere Navigation Fleet Summary

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Tankers
Stable
Diligence
Improving
VLCC
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• Placed in anT kers nI ternational Poo , o acl t hieve long-term commercial management stability.

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Dry Bulk
Capesize
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• Carries major commodities, like iron ore, coal.

• Flexible operations between spot and mid and long-term period markets.

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Total Fleet Tonnage & Mix Dry bulk Fleet Mix (by tonnage)
Handymax
Tanker VLOC (1)
Deadweight 30% 12% (1)
5% Handymax (1)
Tonnage
894,438mt Dry Bulk Kamsarmax(2)
70%
Capesize (8)
1,869,950mt Capesize Kamsarma VLOC (1)
x (2)
(8)
8%
75%
新興航運股份有限公司 Sincere Navigation Corporation
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Sincere Navigation Fleet (by # of vessels)

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[CATEGORY
VLOC
NAME]
6%
Total Fleet: 15 [PERCENTAGE
VLOC
]
 VLCC (Tanker): 3
Handymax Capesize
 VLOC : 1 12%
Kamsarmax
 Capesize: 8 Capesize
53% Handymax
 Kamsarmax: 2
Kamsarmax VLCC
 Handymax: 1 12% (Tanker)
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1968 Principles
 Established Sincere  Credibility, Decisiveness,
Navigation in Taiwan, a Diligence, Discretion, and
Services
leading dry bulk owner- Improvements.
operator.  Crude Oil  Taking advantage of
 Transportation
With more than 50 years of opportunities, while
management expertise, managing the volatility of
 Dry bulk
transporting goods for the business cycle.
Transportation
various industries such as
 Holding on to a spirit of
mining, steel, power and
 Ship Owner / stable and conservative
paper companies.
Operator
growth, developing a
sustainable marine
transportation business.
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1987
1968 Acquired Karson Navigation
and Tai Hsing Navigation, and 2001 2021
Sincere Navigation 2004
reorganized with “Sincere
was established Established wholly A fleet of 15 ships
with one handysize Navigation Corporation” as owned subsidiary Established Haihu Maritime with about 3 million
ship the surviving company Heywood Limited Service (Shanghai) Co., Ltd. deadweight ton
2006
1980 1989
Awarded by Forbes
Reformed the Listed in Taiwan
Magazine as one of
company into stock exchange
the “Best Under a
one of the and established
Billion” companies
largest privately wholly owned
in the Asia region.
ownedCapesize subsidiary Norley
fleets Corporation Inc.
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Industry Outlook 新興航運股份有限公司 Sincere Navigation Corporation

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2021 Tanker Market Positive / Negative Drivers

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Positive Drivers Negative Factors

• Covid-19 vaccine successfully developed to reduce the pandemic globally and inspire the airline and traveling economic prosperous.

• Expected slowdown in deliveries, to improve supply/demand balance .

• Covid-19 pandemic influence

• OPEC+ reduce down the production in order to escalate bunker price

• Sulphur 0 emission in 20259

• Battery/Hybrid car reduce the petroleum requirement.

• VLCC completed the Scrubber installment and enter the tanker market.

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VLCC Market Dynamics

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Crude Demand Growth Curve

Tank Spot Earnings

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Source: Clarkson SIN, 6 January, 2020

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VLCC Spot Earnings

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VLCC New Building

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2021 Dry Bulk Market Positive / Negative Drivers

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Positive Drivers

Negative Factors

• Covid-19 vaccine successfully developed to reduce the pandemic globally and inspire the economic prosperous.

• USA President Joe Biden’s infrastructure of 1.7 trillion.

• Vessel proceeding by economic speed and/or super slow steam to prolong the steaming day and save bunker cost.

• 2020 Sulphur Cap may accelerate scrapping.

• Stronger ton-mile demand forecasted in 2021 supported by improving US-China volumes in grains.

• Covid-19 pandemic influence.

• The politic war between China and Australia (China prohibit to import of coal, barley, wine, lobster from Australia.

• Sulphur 0 emission in 2050.

• Fleet growth continues to outpace ”headline” demand growth due to “new” VLOC segments.

• Environmental factors (shift to gas & renewables, air pollution control) driving EU and South Korea to decrease steam coal imports.

• Capesize vessel completed the scrubber installment and re-enter the market.

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Bulk Dry Market Freight Index trends and Spot Earning

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Baltic Dry Index Trends Bulkmarket Spot Earnings

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Capesize Spot Rates Earning

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Panamax Spot Earnings & Trip Charter Rates

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Source: Clarkson SIW, 3 January, 2020

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Supramax Trip Charter Rates

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Ca esize New Buildin 100 000 dwt or above p g ( , )

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Panamax Vessel New Buidling ( 65,000-99,999 dwt )

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Ultramax New Buildin 40 000-64 999 dwt g ( , , )

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Handysize New Building (10,000-39,999 dwt)

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New Building Price

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Strategic
2021
Outlook
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Organizational structure focused on owner-operator management of assets and people

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 Strong management team
with low turnover,
substantial experience, DirectorsBoard of
prudent management and
care of assets/business, Audit
Supervisor
an d s t r c i t a dh erence o t Committee
safety & regulations
President
 Adding new talent with
awareness of global Operations Technical Finance Administration Crew Safety
standards & best Department Department Department Department Department Management
practices, and innovative
ideas and diverse areas of
expertise.
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Evolution of a shipping asset

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Vessel Delivery
Exit Delivered and enters operations Shipyard
Vessel sales are a core Strong Newbuilding
component of value relationships, enables
creation. Timing of asset high quality vessels.
sales for maximum returns.
Capture the essence of
what this product
achieves.
Dry Docking
Identify
Effective dry docking
Vessel type
management and a strong
and segment for
focus on asset Chartering
newbuilding
management Strong relationships with
first class charterers enables a mix of
period and spot charters.
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Business model focused on prudent asset management and cash flow generation

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 Average fleet age for SNC fleet is currently at 11 years, in-line with the 11 years of the total bulk fleet average.

 Prudent, risk management approach to asset replacement is key.

 7 out of the 15 vessels we own do not have any outstanding loan balances, enabling fire power for future asset acquisitions.

 N ew sec t ors con ti nue d t o e b evaluated for future investments.

 Continued commitment to a stable dividend policy and returns to our shareholders.

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Sincere Navigation Fleet

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SHIP SUMMER DWT
VESSEL 船名 TYPE DELIVERY FLAG
BUILDER MT
ELBHOFF (海福輪) SWS VLCC 01/2017 Hong Kong 300,837
KONDOR (高登輪) SWS VLCC 01/2012 Hong Kong 296,714
MAXIM (美生輪) SWS VLCC 06/2011 Hong Kong 296,887
TIEN SHAN (天山輪) BEIHAI VLOC 03/2018 Hong Kong 250,327
BAO SHAN (寶山輪) CSBC Capesize Bulker 09/2006 Panamanian 175,009
CHIN SHAN (青山輪) CSBC Capesize Bulker 11/2004 Panamanian 175,569
CHOU SHAN (舟山輪) CSBC Capesize Bulker 07/2005 Panamanian 175,569
HENG SHAN (衡山輪) SWS Capesize Bulker 01/2007 Panamanian 174,145
HUANG SHAN (黃山輪) CSBC Capesize Bulker 08/2003 Panamanian 175,980
MINERAL OAK (明和輪) SWS Capesize Bulker 03/2010 Hong Kong 177,921
TAI SHAN (泰山輪) SWS Capesize Bulker 08/2011 Hong Kong 176,469
YUE SHAN (玉山輪) SWS Capesize Bulker 09/2009 Hong Kong 177,798
OCEANA (合盛輪) SWS Kamsarmax 09/2014 Hong Kong 81,594
PALONA (寶隆輪) SWS Kamsarmax 11/2014 Hong Kong 81,676
MADONNA III (麥唐娜) CHENGXI Double Hull Handymax Bulker 09/2007 Taiwanese 53,390
Fleet Total: 15 Vessels Fleet Average Age: 11 Years 2,769,885
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2605.TW 新興航運 Sincere Navigation Corporation Investor Relation Contact Spokesperson: Mr. Jack Lee Yih-Ren sncbiz@snc.com.tw +886-2-2703-7055

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新興航運股份有限公司 Sincere Navigation Corporation
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