Heidmar Maritime Holdings Corp. · NASDAQ:HMR
Heidmar Maritime — Heidmar — SPAC Merger (March 2023)
39 slides from Heidmar Maritime's SPAC merger presentation, March 2023
Slide 1: Investor Presentation
INVESTOR PRESENTATION March 2023 / Confidential
Slide 2: Disclaimer
Disclaimer About this Presentation This confidential presentation (this “Presentation”) is for informational purposes only to assist interested parties in making their own evaluation with respect to an investment in connection with a possible transaction (the “Business Combination”) involving Heidma
Slide 3: Disclaimer (Cont'd)
Disclaimer (Cont’d) Use of Projections This Presentation contains financial forecasts for the Company with respect to certain financial results for the Company’s fiscal year 2023. The Company’s independent auditors have not audited, studied, reviewed, compiled or performed any procedures with respec
Slide 4: Table of Contents
Table of Contents Transaction Summary 5 Heidmar Business Overview and Growth Potential 8 Financial Summary 24 Valuation Overview 27 Appendix 34 4
Slide 5: Transaction Summary
ee 2 \ a mx 5 Pee as eae —a aa ze ge i == = — TRANSACTION SUMMARY HEIDMAR
Slide 6: Transaction overview: Today's Presenters
Transaction overview Today’s Presenters Dan Ciporin Pankaj Khanna Chairman & CEO Chief Executive Officer ◼ Over 30 years of experience as an executive, investor ◼ More than 3 decades of experience in maritime and board member of public and private companies transportation, asset owning, and service
Slide 7: Transaction overview (cont'd)
Transaction overview (cont’d) Transaction Summary Transaction Valuation ◼ Home Plate Acquisition Corp. (“HPLT”) intends to merge with Heidmar Inc. at an initial Valuation Summary ($mm unless otherwise stated) purchase price of $160.0mm in shares of HPLT Stock Price at Issue ($) $10.00 ◼ Heidmar Pro
Slide 8: Heidmar Business Overview and Growth Potential
HEIDMAR BUSINESS OVERVIEW AND GROWTH POTENTIAL
Slide 9: Heidmar today
Heidmar today A first-class commercial management and pool management business servicing the crude and product tanker market Rapid growth 30+ Years of Experience in Vessel Pooling ◼ Significant growth since 2020 when current management took over, with revenues increasing from ~$5 million in 2021A(1)
Slide 10: Next Phase of Heidmar
Next Phase of Heidmar A full-service vessel manager providing commercial, technical, and sale & purchase services across multiple vessel classes “One-stop” solution for tankers & dry bulk ◼ Single platform aggregator of maritime services for tanker and dry bulk industry 82 2023E(1) Vessels Under Man
Slide 11: Asset-Light Business Model
Business overview Asset-Light Business Model Expansion to Commercial Manager Charterer Providing Other Services Pool Commercial Time Charter Technical Shipbroking Management Management Trading Management One-to-Many One-to-One Commercial/Pool One-to-One Bi-Lateral Service Service Service Management
Slide 12: Heidmar's pool management business
Heidmar’s pool management business Heidmar currently manages 39 vessels(1)(2) spread across 5 pools Co-operative economic partnerships among vessel owners supports revenue optimization, strong cargo ⚫ Established in 2022 ⚫ Established in 2007 ⚫ Established in 2021 base and counterparty ⚫ VLCC vessel
Slide 13: Heidmar's commercial management business
Heidmar’s commercial management business 21 vessels(1)(2) under Heidmar’s commercial management offering Service Offering First-class commercial management services to owners in a non-pool capacity Vessels Under Vessel Size DWT Range Vessel Owners Management(1)(2) Provides chartering, operations, bu
Slide 14: Heidmar's time charter trading business
Heidmar’s time charter trading business Heidmar Time Charter Strategy Overview Illustrative Case ⚫ Heidmar’s prominent position in the commercial market also ⚫ Heidmar to charter in the open market a vessel from a shipowner on a 1- allows it to identify favorable conditions or inefficiencies in year
Slide 15: Proprietary, industry leading commercial management system
Proprietary, industry leading commercial management system eFleetWatch provides real-time information to Heidmar’s stakeholders Large amounts of Cradle to grave type Provides CO2 by The first market- One platform for all data stored from prior system, partners have voyage leg, allows for facing digi
Slide 16: Heidmar engages with industry leading counterparties
Heidmar engages with industry leading counterparties High quality customers and counterparties … High Quality Blue Chip Vessel Owner Cargo Owner Customers Counterparties … with reliable supplier relationships Key Suppliers Source: Company Materials. 16
Slide 17: Significant growth potential across all business segments
Significant growth potential across all business segments Highly scalable platform with significant runway for growth to become a distinguished full-service platform Expanding Service Offering Pool Expansion into Adjacent ◼ Utilize existing global Sectors platform and brand recognition to expand acr
Slide 18: Large growth opportunity in tanker market despite recent growth
Large growth opportunity in tanker market despite recent growth VLCC Suezmax The largest tankers on the water, primarily trade in long-haul trade routes Primarily crude oil on long to medium haul routes Average capacity ~2 million barrels Average capacity of ~1 million barrels (1) (1) Total Target T
Slide 19: Dry bulk fleet development presents an opportunity for expansion
Dry bulk fleet development presents an opportunity for expansion Near-term plans to expand pool and commercial management offering to dry bulk vessels Dry Bulk Fleet (# of Vessels) Dry bulk vessels primarily transport 14,000 13,164 grain, coal, iron ore, sugar and other 12,000 dry goods 10,000 7,696
Slide 20: Expanding service offering into technical management & brokerage
Expanding service offering into technical management & brokerage Synergistic Service Expansion – Creating a True One-Stop Shop for Shipowners Current Capabilities Managing the voyage High Quality Blue Chip Vessel Sale Vessel Owner Charterers & Purchase Customers Managing the vessel Expansion into Te
Slide 21: Poised to capitalize on favorable tanker market dynamics
Poised to capitalize on favorable tanker market dynamics Key Market Dynamics Historically low tanker vessel orderbook ◼ Current orderbook-to-fleet ratio of ~4-5% is the lowest in the last 20 years Favorable tanker supply / Multi-year high newbuild prices to keep newbuild ordering muted demand fundam
Slide 22: Crude & refined products shipping market dynamics
Crude & refined products shipping market dynamics Strong demand & ton-mile recovery... ... Amplified by geopolitics and refinery dislocation Increased ton-miles from displacement of Russian Increased ton-miles from refinery 12.0% crude impacting global trade routes dislocation (2020-2026 mbpd) bpd 9
Slide 23: Crude & refined products shipping market dynamics (cont'd)
Crude & refined products shipping market dynamics (cont’d) Historically low orderbook to fleet ratio… … While the global fleet continues to age 25% # of 733 1,068 1,284 1,420 768 Crude Tanker Orderbook vessels Product Tanker Orderbook Over 2,100 vessels becoming 20% scrapping candidates in the next
Slide 24: Financial Summary
FINANCIAL SUMMARY
Slide 25: Financial summary
Financial summary ($ millions) 2021A(1) 2022A(1) 2023E(2) Revenue Time charter / voyage revenue $- $9.4 $19.9 Pool management services 4.8 14.5 28.1 S&P brokerage - 0.2 1.5 Technical management services - - 3.6 Total Revenue $4.8 $24.1 $53.1 Expenses Charter-in costs - (5.4) (8.5) Technical manageme
Slide 26: Strong recent growth
Strong recent growth Vessels Under Management Development(1) # of vessels 37% YoY Growth 82 100% YoY Growth 17 60 20 21 30 39 45 30 2021 2022 2023E (2) Tanker Pool VUM Tanker Commercial Management VUM Dry Bulk Commercial Management VUM Revenue and Net Income $ millions 120% Revenue YoY $53 Growth 84
Slide 27: Valuation Overview
VALUATION OVERVIEW
Slide 28: Selected operational benchmarking
Selected operational benchmarking Ship Brokers Marine Services Asset-Light Logistics Mean (1)(2) 120.3% Revenue Growth ’22 – ’23E 2.7% 2.2% (16.2%) (9.4%) 66.8% 55.7% EBITDA Margin (3) ’22 / ’23E 5.3x 4.9x 18.7% 18.3% Higher Higher 14.0% 13.8% than than 10.2% 12.5% 11.9% 9.4% Peer Peer Mean Mean 202
Slide 29: Selected valuation benchmarking
Selected valuation benchmarking Ship Brokers Marine Services Asset-Light Logistics Mean (1)(2) 15.3x 12.6x 10.6x Price / 2023E 8.8x Earnings 29.9% 5.1x Discount to Peer Mean 9.1x 8.4x 8.2x 7.2x Enterprise Value / 2023E EBITDA 4.8x 11.8% Discount to Peer Mean ✓ Asset-light business ✓ Similar sector f
Slide 30: Next Phase of Heidmar
Next Phase of Heidmar A full-service vessel manager providing commercial, technical, and sale & purchase services across multiple vessel classes “One-stop” solution for tankers & dry bulk Multiple touch-points across the vessel lifecycle Key role in environmental compliance and decarbonization Stron
Slide 31: Risk factors
Risk factors In this section, “Heidmar,” the “Company” and “we,” “us” and “our” refer to Heidmar Inc., “Home Plate” or “SPAC” refers to Home Plate Acquisition Corporation, “Business Combination” refers to a potential transaction involving the combination of Heidmar and Home Plate, and “Holdings” ref
Slide 32: Risk factors (cont'd)
Risk factors (cont’d) ◼ Increasing scrutiny and changing expectations from investors, lenders and other market participants with respect to our Environmental, Social and Governance (“ESG”) policies may impose additional costs on us or expose us to additional risks. ◼ Climate change and greenhouse ga
Slide 33: Risk factors (cont'd)
Risk factors (cont’d) ◼ Home Plate’s ability to successfully effect the Business Combination and Heidmar’s ability to successfully operate the business thereafter will be largely dependent upon the efforts of certain key personnel of Heidmar. The loss of such key personnel could negatively impact th
Slide 34: Appendix
APPENDIX
Slide 35: EBITDA reconciliation
EBITDA reconciliation ($ millions) 2021A(1) 2022A(1) 2023E(2) EBITDA reconciliation: Net income $1.1 $16.1 $29.6 Interest(3) - 0.4 1.0 Depreciation(3) 0.5 3.3 8.9 EBITDA $1.6 $19.8 $39.5 Adjusted EBITDA reconciliation: Interest(3) $- ($0.4) ($1.0) Depreciation(3) (0.5) (3.3) (8.9) Impairment loss 0.
Slide 36: Heidmar team
Heidmar team Highly-Experienced Executive Team Heidmar’s Global Presence Pankaj Khanna Niki Fotiou Athens Chief Executive Chief Financial Officer IT, Accounting & Officer 28 Finance, Operations, Employees Legal, Tanker Chartering Justin Sims-Sterling Andreas Konialidis Head of BD Atlantic Head of Ch
Slide 37: Heidmar's core market: crude oil and refined products shipping
Heidmar’s core market: crude oil and refined products shipping Crude Oil Shipping Refined Products Shipping ▪ Crude oil tankers transport unrefined petroleum from terminals ▪ Product tankers transport refined petroleum products, such as near locations of extraction to refineries gasoline, jet fuel,
Slide 38: Pools mitigate commercial risk and lower costs for shipowners
Pools mitigate commercial risk and lower costs for shipowners Shipowners Shipowners Pooling in Shipping Without Pool With Pool ⚫ A pool is an association of vessels of Vessel-by-Vessel Scaled Benefits similar class that are owned by multiple parties but commercially ~ managed by a third-party operat
Slide 39: Historical tanker market dynamics
Historical tanker market dynamics Demand / Supply Balance(1) Day Rate ($/day) Oil Product Market Fleet over-supply and weaker oil Strong market backdrop COVID-19 Impact $ / day demand led to weak day rates hg underpinned by limited-to- no fleet growth 15.0% $37,708 $40,000 Inventory restocking & low