U-MING — Investor Presentation 2021

Sep 16, 2021

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裕民航運股份有限公司 U-Ming Marine Transport Corporation T W S E S t o c k c o d e : 2 6 0 6 T T

凱基證券

2021年第三季線上投資論壇

U-MING Presentation

Disclaimer

This presentation contains forward-looking statements. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. Actual results may differ materially from those expressed or implied by these forward-looking statements. Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this presentation might not occur in the way we expect, or at all. You should not place undue reliance on any forwardlooking information.

In preparing the information herein, U-MING have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to U-MING or which was otherwise reviewed by U-MING. Neither U-MING nor its advisors have made any representation or warranty as to the accuracy or completeness of such information and nor do they assume any undertaking to supplement such information as further information becomes available or in light of changing circumstances. None of U-MING, nor any of their respective affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. Neither this presentation nor any of its contents may be reproduced to a third party without the prior written consent of U-MING.

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U-MING Presentation

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U-MING Presentation

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船隊統計

Fleet

船舶類型Type	營運管理船舶(艘/ 載重噸) Vessels under operation (no. / dwt)	營運管理船舶(艘/ 載重噸) Vessels under operation (no. / dwt)	營運管理船舶(艘/ 載重噸) Vessels under operation (no. / dwt)	營運管理船舶(艘/ 載重噸) Vessels under operation (no. / dwt)	新訂在建船舶(艘/ 載重噸) Newbuilding under construction (no. / dwt)	新訂在建船舶(艘/ 載重噸) Newbuilding under construction (no. / dwt)	新訂在建船舶(艘/ 載重噸) Newbuilding under construction (no. / dwt)
超大型礦砂船VLOC	2 /	650,000			0 /	0
海岬型Capesize	15 /	2,856,785			8 /	1,600,000
巴拿馬極限型Panamax	13 /	1,098,330			4 /	400,000
輕便型Supramax/ Ultramax	6 /	361,097			0 /	0
水泥船Cement Carrier	4 /	43,124			0 /	0
油輪Oil Tanker	4 /	986,000			0 /	0
風電船Offshore Wind Vessel	2 /	78			2 /	100
小計Sum	46 /	5,995,414			14 /	2,000,100
總計Total				60 / 7,995,514
ING Presentation

U-MING Presentation

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2021 H1 EPS表現創下2011年以來新高

Our Best Half-Year Result in 11 Years

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2020 H1
Year 2021 H1
comparison
Revenue (NT$M) 5,834 + 66%
Net Profit (NT$M) 1,375 + 484%
EPS (NT$) $1.63 + 484%
EBITDA % 46% + 51%
Average BDI 2,257 + 229%
Cash on hand (NT$M) 12,699 -17%
ROE % 12.0% + 489%
ROA % 4.6% + 484%
Liability % 62% + 2%
Operating Cash Flow 1,653 + 16%
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U-MING Presentation

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BDI指數創下11年來新高

U-Ming’s Monthly Revenue vs. BDI trend from 2019 till Aug 2021

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BDI
NT$m Operating Revenue BDI
1,600 4,000
2019Q2 2020Q2 2021Q2
1,400 3,500
1,200 3,000
1,000 2,500
800 2,000
600 1,500
400 1,000
200 500
0 0
YYMM 1901 1904 1907 1910 2001 2004 2007 2010 2101 2104 2107
6
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U-MING Presentation

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U-MING Presentation

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基礎建設是推升BDI重要關鍵

Infrastructure demand

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全球基礎建設投資(兆美元)
4.5
Road Energy Rail Telecommunication Water Airport Ports
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2007 2010 2013 2016 2019 2022 2025 2028 2031 2034 2037 2040
We are here
8
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U-MING Presentation Source: Global Infrastructure Outlook

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BDI指數續揚航運市場迎來旺季

BDI hit 4,235 in Aug, venturing into this territory for the first time since June 2010.

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BDI
4,500
2020
4,000
3,720
2021
3,500
3,000
2,500
2011-2020 max
2,000
1,500
1,000
500
2011-2020 min
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
9
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U-MING Presentation Source: Baltic Exchange

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低基期影響中國經濟大幅成長整體處於恢復進程 China rebounds with an economic growth target above 6%

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GDP 房地產開發累計增長(%) 工業增加值累計增長(%)
80% 40%
1992年以來最高紀錄 18.30%
20%
60%
30%
40%
15%
20%
20%
10%
0% 10%
7.90% -20%
5% 0%
-40%
0% -10%
2018Q1 2018Q4 2019Q3 2020Q2 2021Q1 -60%
-20%
-5%
房地產投資 房地產新開工施工面積
1992年以來首次負成長 (6.80%)
-10%
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U-MING Presentation Source: 中國國家統計局

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2021 PMI 持續擴張製造業復甦帶動次要乾散貨海運需求 Loading demand of minor bulks on the back of expanding PMI in 2021

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Manufacturing PMI Panamax Timecharter Avg (rhs)
US$
Supramax Timecharter Avg (rhs) Handysize Timecharter Avg (rhs)
60 $40,000
Expansion in each of the past 14 months $35,000
50
$30,000
40
$25,000
30 $20,000
$15,000
20
$10,000
10
$5,000
0 $0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
2020 2021
11
Source: J.P.Morgan Global Manufacturing PMI; Baltic Exchange
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U-MING Presentation Source: J.P.Morgan Global Manufacturing PMI; Baltic Exchange

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日租金收益成長

Spot market TCE

BCI 5TC

BPI 5TC

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2019 2020 2021 2019 2020 2021
42,433
32,546
Jan Apr Jul Oct Jan Apr Jul Oct
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8 months average: $24,911 YOY: 184%

8 months average: $27,258 YOY: 153%

BSI 10TC

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2019 2020 2021
34,876
Jan Apr Jul Oct
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8 months average: $23,974 YOY: 353%

U-MING Presentation Source: Baltic Exchange

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中國粗鋼生產以高爐製程為主原料長期以含鐵量高的進口鐵礦石為主 Demand for seaborne iron ore remains strongly China-centered

中國2020粗鋼產量 (依製程)

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Oxygen-blown
Converter,
90.8%
Electric
Furnace,
9.2%
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中國 2020 鐵礦石需求 (依來源)

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Imports,
80.7%
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依 90.8% 粗鋼由高爐生產、每噸消耗 1.5 噸鐵礦石估算

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U-MING Presentation Source: worldsteel; 中国海关总署

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鋼廠增效減排推升高品位鐵礦石需求

China's commitments to cut overall pollution are improving iron ore grades to raise steelmaking efficiency

Iron ore price spread between high and low grades at record levels

2000 spread (rhs) (RMB/Ton) Australian fines (56.5% Fe) price Brazil fines (65% Fe) price 900

1800 800 1600 700 1400 600 1200 500 1000 400 800 300 600 200 400 200 100 0 -

U-MING Presentation Source: 西本新干线

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預期未來澳洲及巴西仍是主要鐵礦砂出口國巴西復產成長較快 Global seaborne iron ore trade remains dominated by Australia and Brazil 2020-2026 CAGR: World: 2.9%, Australia: 4.1%, Brazil: 4.9%

Outlook for global iron ore exports (million tons)

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2,000 Australia Brazil ROW f forecast. z projection.
1,800
286
256
1,600 329 316
337
393
1,400 343
459 455
461
1,200 428 446
396
341
1,000
800
600
1,084 1,103
950 963 987
400 868 897
200
0
2020 2021 f 2022 f 2023 f 2024 z 2025 z 2026 z
15
Source: Bloomberg (2021); World Steel Association (2021); Department of Industry, Science, Energy and Resources (2021)
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U-MING Presentation Source: Bloomberg (2021); World Steel Association (2021); Department of Industry, Science, Energy and Resources (2021)

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主要礦商供貨穩定增長

Major miners expect a stable growth of iron ore production

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2021H1 & 2021F Iron ore shipment (Mt)
2021Q1 2021Q2 2021H2
325
318
254
182
154
144
131
76.3 91
76.0
65.2
67
46.4
32
77.8
68.0 66.0
44.3 15.7
16.2
Rio Tinto Vale BHP FMG Anglo
American
21H2 vs. 21H1 +11% +21% -7% +1% +8%
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U-MING Presentation Source: 2021 2nd quarter reports of Company

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VALE 預計2022 加速鐵礦石復產全年產能預計將增加8%

VALE foresees a 27mt increase in production in 2022

VALE iron ore production capacity (million tons)

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400 400~450
370
343
335
Today End of 2021 End of 2022f Medium Term Long Term
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U-MING Presentation Source: Vale Investor Tour 9[th] Sep, 2021

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中國鋼鐵需求佔全球一半以上逐步進入永續成長的高原期 China is accounting for 55% of global steel demand and reaching its sustainable growth

	Milloin tons	Milloin tons	YOY growth rate	YOY growth rate
	2021 (f)	2022 (f)	2021 (f)	2022 (f)
World	1,874.0	1,924.6	5.8%	2.7%
World excl. China	849.1	889.5	9.3%	4.7%
Developed economies	371.0	386.4	8.2%	4.2%
China	1,024.9	1,035.1	3.0%	1.0%
Developing economies excl. China	478.2	503.0	10.2%	5.2%
ASEAN (5)	73.0	77.7	6.2%	6.5%
MENA	66.0	68.7	6.1%	4.1%

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U-MING Presentation Source: worldsteel Short Range Outlook April 2021

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預估乾散貨貿易穩定成長

Bulker market could see positive impetus in 2021 and into 2022

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YOY change in tonnes of dry bulk trades
2020 2021 (f) 2022 (f)
11.1%
4.8% 4.7%
4.1%
3.3%
2.6%
1.7% 1.4% 1.8%
0.5%
Iron ore Coal Grain Minor Bulks
(0.9%)
(9.4%)
19
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U-MING Presentation Source: Clarksons SIN

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船隊訂單維持歷史低檔

Bulkcarrier orderbook falls to an all-time low less than 7%

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Capesize Panamax Handymax
120
100
80
60
40
20
0
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U-MING Presentation Source: Clarksons SIN

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預期環保因素將加速淘汰老舊船型

More environmentally unfriendly vessels to be phased out

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Age profile (no.) RightShip GHG Emission Rating profile
16+ years old bulkers (No.)
Capesize Panamax Handymax Cape Panamax Supramax
3,500 300
3,000 250
2,500
200
2,000
150
1,500 19% of fleet C+P+H
100
1,000
50
500
- 0
0 - 4 5 - 9 10 - 14 15 - 19 20+ B C D E F G
U-MING Presentation 21
Source: Clarksons SIN; RightShip
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U-MING Presentation Source: Clarksons SIN; RightShip

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尚有7成現有船未達環保節能定義預期船東將改裝或減速以符合IMO新規定 69% of the fleet are still 'non-eco' and of lower potential for speed reductions to meet EEXI* requirements coming into force in 2023

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DWT % of Eco and Non-eco dry bulks
'eco' * 'non-eco'
100%
90%
80%
70%
71% 69%
76%
60% 80%
50%
40%
30%
20%
29% 31%
24%
10% 20%
0%
Jan-2019 Jan-2020 Jan-2021 Sep-2021
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• EEXI: Energy Efficiency Existing Ship Index

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22
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U-MING Presentation Source: Clarksons WFR

**Eco – Electronic Engine Modern” – a vessel with an electronic injection main engine contracted after 1st January 2012.

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船噸供給不足推升航運市場漲勢

Lower growth of tonnage as a result of fewer deliveries and an impetus for recoveries

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Bulkcarrier supply-demand trend
6%
Dry bulk
tonne mile
5% growth
4.3%
4%
3% 3.4%
Bulkcarrier 2.2%
Fleet Growth
2%
1.4%
1%
0%
2017 2018 2019 2020 2021 (f) 2022 (f)
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U-MING Presentation Source: Clarksons SIN；BIMCO

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「四C」將主導2021下半年之散裝航運市場

The Four C's will dominate the second half of 2021 shipping markets

• To facilitate steel output cuts in China, taxes could be imposed to minimize export volumes in 2021 2H.

• China's domestic steel demand has been undermined by the country's deleveraging campaign, targeting property and infrastructure sectors.

• Fleet inefficiencies in the form of port congestion, quarantining and changes to voyage lengths.

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China Covid-19
The
4C’s
Congestion Carbon
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• The acceleration of Covid-19 variants in Asia.

• India reports sharp surge in new Covid-19 cases due to spike in Kerala.

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 Decarbonisation will present “the
greatest challenge to shipping
over the next years.”
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U-MING Presentation

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塞港情況嚴重逼近10年前紀錄

Port congestion chaos underpins bulk carrier rates, now at their highest in 11 years

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16
Total Bulkcarrier Port Congestion as % of Bulkcarrier Fleet
13.9
14
Capesize Port Congestion as % of Capesize Fleet
11.5
12
10
8
6.60
5.5
6
4.62
4
2
2.32
0
2010 11 12 13 14 15 16 17 18 19 20 2021
25
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U-MING Presentation Source: Clarksons SIN

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預計2023年生效之船舶效能指數(EEXI)和營運碳強度指標(CII)將減少船噸供給 New IMO Carbon Intensity Regulations will come into force in 2023, decreasing ships′ supply

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Jan
2030
Jun Sep Dec 2023
-2050
2021 2022 2022
MEPC vote on completion of development of EEXI and CII reducing the
EEXI and CII EEXI carbon intensity come into force GHG emissions
assessment and profile and from international
adoption enhanced shipping by at
SEEMP least 50% by
2050
Following adoption of EEXI and CII regulations, ship owners will have just over a year and a half
to prepare their vessels to comply with the relevant requirements.
EEXI： Energy Efficiency Existing Ship Index
CII ： Carbon Intensity Index 26
； Clarksons
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U-MING Presentation

Source: marine-offshore.bureauveritas ； Clarksons

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拜登政府一兆美元之基礎建設法案將推升散裝產業後續利多 U.S. Senate Passes $1 Trillion Infrastructure Bill on a wide variety of public investments, ranging from roads and bridges to education and health care.

Biden's US$1 Trillion Infrastructure Plan

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US$Billion Internet, 65,
Resilience, 47, 12%
9%
Remediation,
Ports, 17,
21, 4% 3%
Ports & Transportation
Water, 63, 11%
US$268Bn , 49%
Transportation, 251,
Electric, 80, 15% 46%
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U-MING Presentation Source: CNBC

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艾達颶風重創美國墨西灣沿岸減少穀物出口量短期影響中小型船隻運價 Hurricane Ida Threatens U.S. Grain Exports

-22%

Grains inspected and/or weighed for export reported in week ending Sep 02,2021 compared to previous year

WHEAT INSPECTED AND/OR WEIGHED FOR EXPORT BY US REGION

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million
metric
tons
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metric U.S. Export Volume for Soybeans, Corn, and Wheat
2021 2020 tons
20 export volume 2020 H1 avg. 2020 H2 avg. 2021 H1 avg.
90%
18
16
14
63% 167%
12
10
-83% 33% 8
6
4
10%
2
-
US GULF US PACIFIC
U-MING Presentation 28
Source: USDA
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全球最大鋁土礦出口國幾內亞政變促鋁價飆十年新高出口港現已恢復正常 Bauxite exports continue despite Guinea coup causing bauxite prices rise

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its mines had not been affected by the turmoil.”

Guinea coup

by a Compagnie des Bauxites de Guinée (CBG) spokesperson

U-MING Presentation Source: Reuters；The London Metal Exchange

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U-MING Presentation

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自有船隊持續汰舊換新轉型優化

Driving a fleet of eco-efficiency for a sustainable tomorrow

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Cape Panamax Handymax
100%
10.00 8.9 1.0 12.00 10.6 1 12.00 10.5 1
9.00 0.9 0.9 0.9
8.00 0.8 10.00 0.8 10.00 69% 0.8
7.00 6.1 0.7 8.00 0.7 8.00 0.7
6.00 0.6 6.5 50% 0.6 6.0 0.6
5.00 0.5 6.00 0.5 6.00 0.5
4.00 35% 0.4 0.4 32% 0.4
4.00
3.00 0.3 4.00 27% 0.3
0.3
2.00 0.2 0.2
0.2 2.00
2.00
1.00 0.1 0.1
0.1
- 0.0 - 0
- 0
U-Ming Dry bulk U-Ming Dry bulk U-Ming Dry bulk U-Ming Dry bulk
U-Ming Dry bulk U-Ming Dry bulk
Age Eco' vessels, % dwt Age Eco' vessels, % dwt
Age Eco' vessels, % dwt
(rhs) (rhs)
(rhs)
U-MING Presentation 31
Source: Clarksons WFR
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履行承諾善盡船東責任船隊達標溫室氣體排放標準

Upgraded vessels sitting within "greener" GHG Rating bands

U-MING Presentation Source: RightShip

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Size Score & (+)
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+ upgraded with energy saving equipment to operate more efficiently than designed.

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策略聯盟共享合資夥伴優勢拓展業務規模 Joint ventures expansion to leverage partners' advantages

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U-MING Presentation

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多元經營分散市場風險 Diversity of fleet to diminish market risk

• 百分比依艘數計算，含Orderbook

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U-Ming’s Fleet Profile
海岬型 Capesize, 45%
超大型礦砂船 VLOC,
3%
巴拿馬極限型
風電船 Offshore Wind
Panamax, 23%
Vessel, 6%
油輪 Oil Tanker, 6%
輕便型 Supramax /
水泥船 Cement Carrier, 6%
Ultramax, 12%
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U-MING Presentation

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簽訂長期合約建立穩定獲利

Long-term contract portfolio to secure stable profit

U-MING Presentation

01

02

03

04

VALE 25-year COA 2 x 325,000-dwt VLOC started in 2020Q3

Anglo American 10-year Time Charter 4 x 190,000-dwt dual-fuel Tier III Capesize to be started in 2022Q4

1-4 year Time/Voyage Charter with major iron ore miners, grain traders, steel companies, power companies

7-year Bareboat Charter 2 x ROC-flag WS25 CTV started in 2021Q1

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THANK YOU

U-MING Presentation