YMTC — Investor Presentation 2023

Jun 7, 2023

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Yang Ming Marine Transport Corp.
2023 Investor Conference
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2023.06.07

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Legal Disclaimer
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• ⚫ The information contained in this presentation, including all forward-looking information, is subject to change without notice, whether as a result of new information, further events or otherwise, and Yang Ming Marine Corp. (the “Company”) undertakes no obligation to publicly update or revise the information contained in this presentation.

• ⚫ The financial, business, and Q&A statements of the company made by this presentation may differ from actual future results.

⚫ Investor should not regard the above forward-looking information as legally binding but as information subject to change. No guarantees regarding the completeness, accuracy, and of information contained are made or reliability explicitly implicitly. They are not intended to represent complete statement of the company, industry or future development.

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Outline
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1、Container Shipping Overview

2、Business Information

3、Financial Results

4、Operational Future Prospects

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Container Shipping
Overview
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Economic Outlook
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IMF expects global growth of 2.8% this year, slightly cut of 0.1 percentage point than the fund’s estimates published in January.

World Economic Outlook Projections % 2022 2023(F) 2024(F)

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8.0
6.8
7.0
6.3
5.9
6.0
5.5
5.2
5.0 4.5 4.6 4.5
4.0
3.4 3.5
2.8 3.0 3.0 2.9
3.0
2.1
2.0 1.6 1.4 1.3 1.5
1.1 0.8 1.1 1.0 0.9
1.0
0.0
World US Euro Area ASEAN5 China Japan India Brazil
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Source: IMF, World Economic Outlook , Apr 2023.

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Supply and Demand
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Drewry, Alphaliner and Clarksons research forecast supply will exceed demand from 2023 to 2024.

	2022	2023(F)	2024(F)
Supply Demand	4.2%	4.7% (3.5%)	6.3%
	0.5%	1.0% (1.2%)	3.1%
Supply Demand	4.1%	8.3% (8.2%)	8.9%
	0.1%	1.4% (1.4%)	2.2%
Supply Demand	4.0%	6.9% (6.7%)	5.8%
	-5.1%	-2.1%(-2.2%)	3.3%

資料來源: Alphaliner Monthly Monitor, Apr. 2023 ; Clarksons Container Intelligence 2Q 2023. Drewry Container Forecaster New Monthly Supplement, Apr 2023;

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Singapore market price
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• The US and Europe banking crisis, the downward demands in Europe and US markets, worries about China's economic outlook after lifting epidemic control and Fed tightened monetary policy. Recently above factors may curb oil demand and put pressure on oil prices.

• The Ukrainian-Russian war, geopolitics and the resulting sanctions, and the OPEC+ unpredictable production cuts agreement may be maintained until the end of 2023. US would also start repurchasing oil for the Strategic Petroleum Reserve (SPR). All of above would be expected to continue affecting the market and push oil prices higher.

• • To reduce greenhouse gas emissions, the IMO meeting (MEPC 80), which is expected to be held in July 2023, will continue monitoring the updates and impact of carbon emission reduction policies and the development of new energy sources on the fuel market.

0 200 400 600 800 1000	Singapore Fuel Price Forecast (Source：S&P Global Platts ) May/ 01
	2023-Jan 2023-Feb 2023-Mar 2023-Apr 2023-May 2023-Jun 2023-Jul 2023-Aug 2023-Sep 2023-Oct 2023-Nov 2023-Dec 2024-Jan 2024-Feb 2024-Mar 2024-Apr 2024-May 2024-Jun 2024-Jul 2024-Aug 2024-Sep 2024-Oct 2024-Nov 2024-Dec LSMGO (S<0.1%) VLSFO (S<0.5%) HSFO(S<3.5%)

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★AWE、PSW 、PNW

★Intra-East Asia

★Middle East, Red sea, South America, Australia, South Asia

★NCP、MED、TA、IEU

Data interval:202301~202303

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-
Lifting Volume Analysis
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Lifting Volume in Year 202301~03 decreased by 5% YOY
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FY2023Q1： 1.04 million TEU

FY2022Q1： 1.09 million TEU

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Capacity Ranking
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As of May 2023, Yang Ming's fleet capacity is ranked 9[th] in the world.

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Source: Alphaliner, May 2023

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relatively balanced on trade capacity
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◼ Three Major Alliances account for 84% of market share, very identical to Q1-2023. ◼ 2M+ZIM and OA remain Top 2 in terms of global capacity portion, at 36% and 30% respectively. THEA followed by 18%.

◼ As for East-West Market share (weekly capacity), THE alliance increased market share to 28% in Eur-N.AM while slightly decreased in FE-Europe and FE-N.AM, accounts for 26% in total E-W trade.

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Global Capacity Share
by Alliance
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Source: Alphaliner, Monthly May 2023

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E-W Trade Weekly Capacity Share
by Alliance
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Source: Alphaliner, MarketSharesEW, 2023/05/16

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Financial Results

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Logistics 3.35%

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Bulk 2.92%

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Container Shipping Wharf 93.56% 0.17%

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Consolidated Income Statement
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Unit：NT$ Million Items FY2023Q1 Operating Revenue 36,953 Gross Profit 3,417 Operating 1,470 Income(Loss) Net Income(Loss) 3,462 Profit(Loss),attribute to 3,401 owners of the parent EPS 0.97

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Income(Loss) Margin
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Data interval:2021Q1~2023Q1

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Fuel price and Average FRT
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Unit： Unit：
USD/TON USD/TEU
850 3,500
818
811
3,129
800 3,034
749 770 3,000 2,854 2,927 2,875
750
2,607
698
693 691
700 2,500
664
652 652
2,129
650
624
602 2,000
600
1,591
550 1,500
1,312
1,088
500 1,024
908
1,000
450
400 500
Fuel Price(TON) AVG FRT(TEU)
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The latest closing date was Mar 28,2023

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Operational Future Prospects

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East-West

Network

• Invest in greener and more energy-efficient ships to replace existing vessels and enhance cost advantage.

• Extend Far East-Europe trade coverage by adding Tianjin-Xingang and Wilhelmshaven.

• Improve on-time performance by rationalizing U.S. East coast port calls.

• Take decarbonization and environmental friendliness into account for service design and operation to strengthen environmental sustainability.

Other East-West Network (Non-Alliance)

• Optimize product design and port rotation of Non-Alliance East-West services to reassure product stability.

• Commitment to operate Intra North Europe-Mediterranean regional trade to ensure short-sea service quality and coverage.

• Take decarbonization and environmental friendliness into account for service design and operation to strengthen environmental sustainability.

North-South Network

• Continue to operate and offer delicate and exquisite services connecting South America, Indian subcontinent, and Australia trades.

• Pursue more cooperation with carriers to broaden service coverage scope.

• Take decarbonization and environmental friendliness into account for service design and operation to strengthen environmental sustainability.

Intra-Asia Network

• Develop regional business through slot exchange to increase the service coverage.

• Adjust service swiftly and flexibly according to business performance and market changes.

• Take decarbonization and environmental friendliness into account for service design and operation to strengthen environmental sustainability.

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• Up to June 2023, there are 94 vessels in Yang Ming’s fleet, and total capacity is around 715,000 TEUs

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• 19 Fleets are scheduled to conduct maintenance in Y2023 for ship-energy saving.

• • 12 fleets are planned to install scrubber in Y2023 for bunker cost saving.

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Future Prospects
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2023H2:

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The recovery of global economy and demand is still dragging by uncertainty caused by war in Ukraine, hiking inflation and interest rate. In addition, the continuous deployment of new building vessels is widening the gap between supply and demand. The container shipping industry will continue to face lots of uncertainties and challenges for the second half of this year.

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Q&A
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