Global Ship Lease Inc New · NYSE:GSL
Global Ship Lease Inc New — Global Ship Lease — Investor Presentation (March 2018)
31 slides from Global Ship Lease Inc New's investor presentation, March 2018
Slide 1: Investor Presentation March 2018
Investor Presentation March 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement This communication contains forward-looking statements. Forward-looking statements provide Global Ship Lease’s current expectations or forecasts of future events. Forward-looking statements include statements about Global Ship Lease’s expectations, beliefs, plans, objectives, i
Slide 3: Disclaimer
Disclaimer The financial information and data contained in this communication is unaudited and does not conform to the U.S. Securities and Exchange Commission Regulation S-X. Accordingly, such information and data may not be included in, may be adjusted in or may be presented differently in, Global
Slide 4: Company Overview
Company Overview oF GLOBAL SHIP LEASE
Slide 5: Company Overview
Company Overview NYSE-Listed Containership Lessor Ownership Structure • 18 containerships Directors and Fleet Focused on CMA CGM Public Holders Executive • 2,207 – 11,040 TEUs 44% 35% Officers Mid-Size & 21% • Eight geared¹ vessels Smaller Tonnage • Contracted to buy a 2,800 TEU vessel • 17 timechar
Slide 6: Our Business Model - Leasing v. Shipping
Our Business Model - Leasing v. Shipping Role of Containership Lessors Role of Liner Companies • Own and manage vessels which are leased to liner • Source and aggregate cargo from shippers companies under long-term and short-term charters • Load and discharge containers • Responsible for maintenance
Slide 7: Strong Relationship with CMA CGM, an Industry Leader & Consolidator
Strong Relationship with CMA CGM, an Industry Leader & Consolidator Top 20 Liners by Operated Capacity (TEU)¹ CMA CGM 5.0 Fleet (ships / TEU)1: 504 / 2.5 million Owned Chartered In Orderbook 4.5 4.0 Chartered (ships / TEU)1: 76% / 63% TEU millions 3.5 FY2017 Revenues2: $21.1 billion 3.0 FY2017 Core
Slide 8: Charter Portfolio: Significant Contracted Cash Flows
Charter Portfolio: Significant Contracted Cash Flows Existing fleet: fully contracted, with $487 mm1 contracted revenues. 3.2 years1 weighted average remaining contract coverage; No vessels exposed to seasonally weaker winter market; average TEU-weighted vessel age 13.0 years¹. New Vessel, once deli
Slide 9: Strong Results and Stability Throughout the Cycle
Strong Results and Stability Throughout the Cycle Market Timecharter Index 140 130 120 Market Cycle 110 100 90 80 70 Timecharter Rate Index Five Year Average 60 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ‘13 ’13 ‘13 ‘13 ‘14 ’14 ‘14 ‘14 ’15 ’15 ’15 ’15 ’16 ’16 ’16 ’16 ’17 ’17 ’17 ‘17
Slide 10: Stable Capital Structure with Clear Long-term Runway
Stable Capital Structure with Clear Long-term Runway On October 31, 2017, Global Ship Lease successfully concluded a comprehensive, $414.8 million re-financing that positions the Company for long-term stability and balance sheet strength Super Senior Secured Term Loan – $54.8 million – Three yea
Slide 11: Strategic Focus through the Cycle
Strategic Focus through the Cycle • Maintain quality fleet; strong emphasis on longer-term charters to established counterparties Charter Strategy • Primary focus on mid-size and smaller tonnage; acquisitions to be immediately cash generative and Operational • Limit risk and maximize stability and p
Slide 12: Industry Update
Industry Update oF GLOBAL SHIP LEASE
Slide 13: Overview: Improving Supply / Demand Balance
Overview: Improving Supply / Demand Balance Industry recovering from cyclical lows: demand growth now outpacing that of supply Orderbook right-sizing over time as industry adjusts to new growth paradigm and capital constraints Improving supply / demand balance supporting earnings in the charter mark
Slide 14: Fundamentals Improving; Non-Mainlane & Intra-Regional Trades are Key
Fundamentals Improving; Non-Mainlane & Intra-Regional Trades are Key Composition of Global Containerized Trade in 2017E¹ Overall Industry Demand Growth v. Supply Growth¹ Intra-Regional (excl. intra- 10.0% Demand Growth Cellular Capacity Growth Asia) 9.0% 7.7% Intra-Asia Year-on-Year Growth Non-mainl
Slide 15: Supply-Side Dynamics Continue to Improve for Mid-Size & Smaller Vessel Segments
Supply-Side Dynamics Continue to Improve for Mid-Size & Smaller Vessel Segments Idle Fleet Capacity 1 Historical Demolition Volumes1 Evolution of Idle Capacity¹ 12,000 + TEU 5,200 + TEU 7,600-11,999 TEU Idle capacity below 2.0%¹ 427 kk TEU scrapped in 2017; 1.8 700 5,200-7,599 TEU (peaked in 2009 at
Slide 16: Mid-Size & Smaller Ships (Sub-10,000 TEU) are Core to Most Tradelanes
Mid-Size & Smaller Ships (Sub-10,000 TEU) are Core to Most Tradelanes Containership Deployment by Trade1 Intra-Asia Deployment1 Average Ship Size Maximum Ship Size 1,400 1,295 25 1,200 1,000 # Ships Deployed 800 20 600 367 400 (TEU thousands) 200 9 15 - Sub-2,000 TEU 2,000-5,200 TEU 5,200+ TEU Ship
Slide 17: 10,000 TEU+ Containership Sailings: 30 Day Period During 4Q2017
10,000 TEU+ Containership Sailings: 30 Day Period During 4Q2017 Source: Clarksons (SeaNet) 16
Slide 18: Sub-10,000 TEU Containership Sailings: 30 Day Period During 4Q2017
Sub-10,000 TEU Containership Sailings: 30 Day Period During 4Q2017 Source: Clarksons (SeaNet) 17
Slide 19: Sector at Positive Inflection Point, Especially Mid-Size & Smaller Tonnage
Sector at Positive Inflection Point, Especially Mid-Size & Smaller Tonnage Improving container market dynamics with demand growth expected to continue to outpace supply growth into 2018 Mid-size & smaller vessels better positioned: tighter supply, flexible deployment, critical to most tradelanes Spo
Slide 20: Attractive Growth Opportunities in Increasingly Liquid Market
Attractive Growth Opportunities in Increasingly Liquid Market Containership Sale & Purchase Activity 1Q16 – 4Q17¹ Commentary¹ 90 Asset values are on an upward trajectory, but remain close 83 to cyclical lows 80 78 Significant increase in containership sale & purchase Number of Ships Sold on a Tr
Slide 21: Summary
Summary oF GLOBAL SHIP LEASE
Slide 22: GSL: Stable Platform, with Strong Upside Potential
GSL: Stable Platform, with Strong Upside Potential High-quality, diverse and versatile fleet of mid-size and smaller tonnage Charter portfolio generating strong and visible forward cash flows Stable new capital structure, with amortizing debt profile to manage risk Strong relationship with C
Slide 23: Appendix
Appendix oF GLOBAL SHIP LEASE
Slide 24: Appendix: Expert Board of Directors
Appendix: Expert Board of Directors Michael Gross • Chairman, CEO and President of Solar Capital and Solar Senior Capital • Chairman and CEO of Marathon Acquisition Corp., 2006-2008 Chairman • Senior Partner of Apollo Management LP, 1990-2006; President and CEO of Apollo Investment Corp, 2004-2006 H
Slide 25: Appendix: Experienced Management Team
Appendix: Experienced Management Team • Joined GSL in 2007 • CP Ships, 1996-2006: CFO and Director Ian J. Webber – Public company traded on NYSE and TSE Chief Executive Officer – Sold to Hapag-Lloyd in 2005 for $2.3 billion • PriceWaterhouse, 1979-1996: Partner, 1991-1996 • Joined GSL in 2007 Thomas
Slide 26: Appendix: Obsolescence Risk Mitigated for Mid-Size & Smaller Ships
Appendix: Obsolescence Risk Mitigated for Mid-Size & Smaller Ships Breakdown of Containership Size Segments by Vessel Age (Years)¹ Commentary 100% Fleet segments for mid-size and smaller ships tend to be composed of older 90% tonnage than those for larger vessels Stems from upsizing of global fl
Slide 27: Number of Ships Deployed by Tradelane
(2) (1) Number of Ships Ship Size (TEU) 2,000 4,000 6,000 8,000 10,000 12,000 16,000 18,000 20,000 0 14,000 0 200 400 600 800 1,000 1,200 1,400 1,600 Europe-Africa Europe-Africa Europe-Latam Europe-Latam MSI & Maersk Broker Europe-M.East/ISC Europe-M.East/ISC F.East-Africa F.East-Africa F.East-Europ
Slide 28: Appendix: Developments in the Liner Sector; Consolidation & Mega-Alliances
Appendix: Developments in the Liner Sector; Consolidation & Mega-Alliances Historical LinerConsolidation Recent Liner Consolidation Liner Alliance Members 2014: Hapag-Lloyd & CSAV Mega-Alliances provide for joint services under vessel sharing arrangements 2015: Hamburg Süd & CCNI 5.0 Fleet Order
Slide 29: Appendix: Consolidated Income Statement Q4 2017 and FY 2017
Appendix: Consolidated Income Statement Q4 2017 and FY 2017 (unaudited) $000’s Three months ended Year ended December 31, December 31, 2017 2016 2017 2016 Operating Revenues Time charter revenue $ 7,022 $ 9,444 $ 35,044 $ 37,567 Time charter revenue – related party 30,849 31,982 123,944 128,956 37,8
Slide 30: Appendix: Consolidated Balance Sheet at December 31, 2017 & 2016
Appendix: Consolidated Balance Sheet at December 31, 2017 & 2016 (unaudited) December 31, December 31, $000’s 2017 2016 Assets Cash and cash equivalents $ 73,266 $ 54,243 Accounts receivable 72 29 Due from related party 1,932 906 Prepaid expenses 918 1,146 Other receivables 458 52 Inventory 742 553
Slide 31: Appendix: Consolidated Cash Flow Statement Q4 2017 and FY 2017
Appendix: Consolidated Cash Flow Statement Q4 2017 and FY 2017 (unaudited) $000’s Three months ended Year ended December 31, December 31, 2017 2016 2017 2016 Cash Flows from Operating Activities Net loss $ (99,059) $ (54,307) $ (74,266) $ (65,095) Adjustments to Reconcile Net loss to Net Cash Provid
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