Mare Forum Shipfinance Managing Partner König & Cie. I am Not. October 30 th 2008

Transcription

1 Mare Forum Shipfinance 2008 Tobias König Managing Partner König & Cie. I am Not Afraid of the Future October 30 th

2 Agenda 1. Company Portrait König & Cie. 2. Market Environment 3. Status Quo Ship Financing 4. Outlook Solutions 6. König & Cie. Marine Finance LLP 2

3 Agenda 1. Company Portrait König & Cie. 2. Market Environment 3. Status Quo Ship Financing 4. Outlook Solutions 6. König & Cie. Marine Finance LLP 3

4 1. Company Portrait König & Cie. Company facts Asset Management (per 08/2008) Approx. 4 bn Euro total capital investment since 1999 incl. IPO Marenave Schiffahrts AG Based in Hamburg, Wien, Shanghai and Mumbai Closed end funds in the following sectors: Shipping, Private Equity, Secondary Market Life Insurance Policies, Real Estate, Renewable Energy, Infrastructure Annual certified performance record 136 employees (per 09/2008) 75 applied funds Working Capital of König & Cie. GmbH & Co. KG 36.2 M Euro Profit on ordinary activities 23.8 M Euro (per 12/2007) 4

5 1. Company Portrait König & Cie. Management Board Tobias König Company founder Managing partner Klaus Fickert Managing partner Marketing and Sales Jörn Meyer Managing partner Finance Jens Mahnke Johannes Bitter-Suermann Managing partner Alternative Investments Managing partner Shipping 5

6 1. Company Portrait König & Cie. Points of Entry Shipping Real Estate (Netherlands) Secondary Market British Life Insurance Policies Marenave Infrastructure Wind Parks Secondary Market Private Equity Real Estate Real Estate German Life Insurance Policies (USA) (Germany) 6

7 1. Company Portrait König & Cie. Sourcing of Expertise Shipping Know-how 44 ships built since 1999 Current fleet of 79 tankers, container ships and bulkers 13 ships sold since 1999 additional 16 new buildings contracted t More than 100 deals assessed yearly by our shipping team Ship management (Scorship Navigation) Best Connections Leading brokers worldwide Reputable yards in Germany, South Korea and China Member in highly renowned tanker pools Private Equity Knowledge PE investments Deal structuring Financial engineering Our USP Know-how in all segments of the shipping market PE funds manager IPO experience Asset play experience Marenave Schiffahrts AG Germany s first shipping IPO Shipping Opportunities 7

8 1. Company Portrait König & Cie. Business Areas Closed end funds Shipping Private Equity Real Estate Infrastructure Renewable Energy TEP Funds Associated Companies Scorship Navigation GmbH & Co. KG Marenave Schiffahrts AG König & Cie. Treuhand GmbH König & Cie. Asia Advisors Pvt. Ltd. König & Cie. Marine Finance LLP 8

9 Agenda 1. Company Portrait König & Cie. 2. Market Environment 3. Status Quo Ship Financing 4. Outlook Solutions 6. König & Cie. Marine Finance LLP 9

10 2. Market Environment Orderbook Development in dwt Increase from Q in %: Tanker Bulker Tanker Container t i vessels l 409% % % Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q3 10

11 2. Market Environment Charter Rate Development (1 year time charter rate; average daily USD earnings) Tanker Tanker 36,000 36,000 dwt dwt Bulker Container 45,000 vessels dwt 2750 TEU Container Container vessels vessels TEU TEU Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 11

12 2. Market Environment Orderbook Historically high order volume for all major vessel types No decrease in new building prices Charter rates Time charter rates for Bulkers deteriorating in all segments Tanker rates remain volatile, but on a healthy level Container TC Rates have been deteriorating in all segments Market environment Market players with increasing nervousness No orders for new buildings No activity in re-sale market No long-term fixtures More cancellations of orders due to lack of refundment guarantees, failed financings and disappearing charterers 12

13 2. Market Environment The Challenge High prices for Decreasing charter vessels rates High material costs (steel price, equipment, etc.) Increasing financial i costs and No forward fixing Less financing possibilities Increasing operational expenses Restrictive e covenants 13

14 Agenda 1. Company Portrait König & Cie. 2. Market Environment 3. Status Quo Ship Financing 4. Outlook Solutions 6. König & Cie. Marine Finance LLP 14

15 3. Status Quo Ship Financing Top Ten German Ship Financiers (in M EUR) Bank Credit volume 1 st half HSH Nordbank n/a KfW IPEX Dt. Schiffsbank Nord/LB DVB Bank Commerzbank HypoVereinsbank n/a Bremer LB Deutsche Shipping n/a Dresdner Bank Source: Hansa 08/

16 3. Status Quo Ship Financing Consolidated German Ship Financiers (in M EUR) Bank Credit volume 1 st half HSH Nordbank n/a Coba/Dresdner/DSB KfW IPEX Nord/LB DVB Bank HypoVereinsbank n/a Bremer LB Deutsche Shipping n/a Source: Hansa 08/

17 3. Status Quo Ship Financing Top Ten Worldwide Ship Financiers (in USD) Shipping Loan Portfolio 50 50, ,2 22,5 20,6 16,3 15,9 12,8 12, Source: Marine Money 17

18 3. Status Quo Ship Financing The Crunch and Beyond Where did the money go? Who do we still trust? If you have the same problems as we do, how can we possibly do business with you? Who is next? Oh God, my customer is threatening with business CRM take over control 18

19 3. Status Quo Ship Financing Most European banks have closed their books Debt more expensive as ever before Mortgages with shorter maturity: years instead of years Loan redemption extremely high in initial phase Banks are requesting more covenants and cash collaterals 19

20 3. Status Quo Ship Financing Banks show higher demands Longer charter periods required Charterers must show creditworthiness Standard & Poor s or Moody s Rating needed High interest in qualified shipyards 20

21 Agenda 1. Company Portrait König & Cie. 2. Market Environment 3. Status Quo Ship Financing 4. Outlook Solutions 6. König & Cie. Marine Finance LLP 21

22 4. Outlook will be much tougher than 2008 Credit Crisis will unfold to greater magnitude Banking system will be forced under new regulation More banks will disappear, as the new cost structure will generate huge, real losses Cost of capital will increase New sources of financing i are needed d The gap will get bigger and bigger 22

23 Agenda 1. Company Portrait König & Cie. 2. Market Environment 3. Status Quo Ship Financing 4. Outlook Solutions 6. König & Cie. Marine Finance LLP 23

24 5. Solutions Ai Asian banks need dto step up to solve the problems which the ship building industry in Asia will face in the years to come Flexible and innovative financing structures need to be created to fill the gap and compensate greatly higher financing costs New products / private equity 24

25 5. Solutions König & Cie. Schiffahrts Investment I Fund concept Opportunity Fund Blind pool investment Building up a diversified shipping portfolio Independent and equity based, flexible financing structure Investment volume EUR 150 m equity EUR 300 m debt 25

26 Agenda 1. Company Portrait König & Cie. 2. Market Environment 3. Status Quo Ship Financing 4. Outlook Solutions 6. König & Cie. Marine Finance LLP 26

27 6. König & Cie. Marine Finance LLP The Offer to Shipping Companies Attractive long-term bare-boat boat or time-charter financing having superior charter-rates Access to a new, diversified source of capital An ability to structure lease transactions designed to meet a shipping companies goals and objectives The ability to act as an equity participant in the ship- owning entity, while still maintaining off-balance sheet treatment 27

28 6. König & Cie. Marine Finance LLP Company Goal Become the world s leading provider of bare-boat and other structured lease financing solutions in the maritime industry Offer maritime companies financing solutions not typically available through other funding sources yp y g g Provide investors with superior returns 28

29 6. König & Cie. Marine Finance LLP Value Creation Exit Opportunities IPO Vessel Purchase Vessel Financing Long-term (8-20 years) vessel charters Focusing on creditworthy charter parties Diversification of vessel types Vessel Sale 29

30 6. König & Cie. Marine Finance LLP Business Model Use of the innovative U.K. tax lease structure Providing non-tax driven traditional lease financing Focusing on high h quality charter parties and newer or new built vessels from superior ship-yards Disciplined portfolio and risk management Access to the strong shipping expertise and contacts available through the close relationship with König & Cie. 30

31 Tbi Tobias Köi König König & Cie. Asia Advisors Pvt. Ltd. Mafatlal l House, HT H.T. Parekh khroad Backbay Reclamation Mumbai tkoenig@emissionshaus.com Geschäftsführer: Tobias König, Johannes Bitter-Suermann, Klaus Fickert, Jörn Meyer, Jens Mahnke Handelsregister AG Hamburg HRA 91127, phg: Verwaltung König & Cie. GmbH, AG Hamburg HRB