Company Presentation. January 2018

Transcription

1 Company Presentation January 2018

2 Disclaimer THIS PRESENTATION (THE PRESENTATION ) HAS BEEN PREPARED BY MPC CONTAINER SHIPS AS (THE COMPANY ) FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES DESCRIBED HEREIN. TO THE BEST KNOWLEDGE OF THE COMPANY, ITS OFFICERS AND DIRECTORS, THE INFORMATION CONTAINED IN THIS PRESENTATION IS IN ALL MATERIAL RESPECT IN ACCORDANCE WITH THE FACTS AS OF THE DATE HEREOF AND CONTAINS NO MATERIAL OMISSIONS LIKELY TO AFFECT ITS IMPORTANCE. PLEASE NOTE THAT NO REPRESENTATION OR WARRANTY (EXPRESS OR IMPLIED) IS MADE AS TO, AND NO RELIANCE SHOULD BE PLACED ON, ANY FORWARD-LOOKING STATEMENTS, INCLUDING PROJECTIONS, ESTIMATES, TARGETS AND OPINIONS, CONTAINED HEREIN. TO THE EXTENT PERMITTED BY LAW, THE COMPANY, ITS PARENT OR SUBSIDIARY UNDERTAKINGS AND ANY SUCH PERSON S OFFICERS, DIRECTORS, OR EMPLOYEES DISCLAIM ALL LIABILITY WHATSOEVER ARISING DIRECTLY OR INDIRECTLY FROM THE USE OF THIS PRESENTATION. THIS PRESENTATION CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS RELATING TO THE BUSINESS, FINANCIAL PERFORMANCE AND RESULTS OF THE COMPANY AND/OR THE INDUSTRY IN WHICH IT OPERATES. FORWARD-LOOKING STATEMENTS CONCERN FUTURE CIRCUMSTANCES, NOT HISTORICAL FACTS, AND ARE SOMETIMES IDENTIFIED BY THE WORDS BELIEVES, EXPECTS, PREDICTS, INTENDS, PROJECTS, PLANS, ESTIMATES, AIMS, FORESEES, ANTICIPATES, TARGETS, AND SIMILAR EXPRESSIONS. THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESENTATION (INCLUDING ASSUMPTIONS, OPINIONS AND VIEWS OF THE COMPANY OR OPINIONS CITED FROM THIRD PARTY SOURCES) ARE SUBJECT TO RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL EVENTS TO DIFFER MATERIALLY FROM ANY ANTICIPATED DEVELOPMENT. NONE OF THE COMPANY, ANY OF ITS PARENT OR SUBSIDIARY UNDERTAKINGS OR ANY SUCH PERSON S OFFICERS, DIRECTORS, OR EMPLOYEES PROVIDES ANY ASSURANCE THAT THE ASSUMPTIONS UNDERLYING SUCH FORWARD-LOOKING STATEMENTS ARE FREE FROM ERRORS, NOR DOES ANY OF THEM ACCEPT ANY RESPONSIBILITY FOR THE FUTURE ACCURACY OF THE OPINIONS EXPRESSED IN THIS PRESENTATION OR THE ACTUAL OCCURRENCE OF THE FORECASTED DEVELOPMENTS DESCRIBED HEREIN. THE PRESENTATION CONTAINS INFORMATION OBTAINED FROM THIRD PARTIES. SUCH INFORMATION HAS BEEN ACCURATELY REPRODUCED AND, AS FAR AS THE COMPANY IS AWARE AND ABLE TO ASCERTAIN FROM THE INFORMATION PUBLISHED BY THAT THIRD PARTY, NO FACTS HAVE BEEN OMITTED THAT WOULD RENDER THE REPRODUCED INFORMATION TO BE INACCURATE OR MISLEADING IN ANY MATERIAL RESPECT. AN INVESTMENT IN THE COMPANY INVOLVES RISK. SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE PREDICTED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION, INCLUDING, BUT NOT LIMITED TO, RISKS OR UNCERTAINTIES ASSOCIATED WITH THE COMPANY S BUSINESS, DEVELOPMENT, GROWTH MANAGEMENT, FINANCING, MARKET ACCEPTANCE AND RELATIONS WITH CUSTOMERS AND, MORE GENERALLY, ECONOMIC AND BUSINESS CONDITIONS, CHANGES IN DOMESTIC AND FOREIGN LAWS AND REGULATIONS, TAXES, CHANGES IN COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN CURRENCY EXCHANGE AND INTEREST RATES AND OTHER FACTORS. SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALISE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, THE ACTUAL RESULTS OF THE COMPANY MAY VARY MATERIALLY FROM THOSE FORECASTED IN THIS PRESENTATION. BY ATTENDING OR RECEIVING THIS PRESENTATION RECIPIENTS ACKNOWLEDGE THAT THEY WILL BE SOLELY RESPONSIBLE FOR THEIR OWN ASSESSMENT OF THE COMPANY AND THAT THEY WILL CONDUCT THEIR OWN ANALYSIS AND BE SOLELY RESPONSIBLE FOR FORMING THEIR OWN VIEW OF THE POTENTIAL FUTURE PERFORMANCE OF THE COMPANY AND ITS BUSINESS. THE DISTRIBUTION OF THIS PRESENTATION MAY, IN CERTAIN JURISDICTIONS, BE RESTRICTED BY LAW. PERSONS IN POSSESSION OF THIS PRESENTATION ARE REQUIRED TO INFORM THEMSELVES ABOUT AND TO OBSERVE ANY SUCH RESTRICTIONS. NO ACTION HAS BEEN TAKEN OR WILL BE TAKEN IN ANY JURISDICTION BY THE COMPANY THAT WOULD PERMIT THE POSSESSION OR DISTRIBUTION OF ANY DOCUMENTS OR ANY AMENDMENT OR SUPPLEMENT THERETO (INCLUDING BUT NOT LIMITED TO THIS PRESENTATION) IN ANY COUNTRY OR JURISDICTION WHERE SPECIFIC ACTION FOR THAT PURPOSE IS REQUIRED. IN RELATION TO THE UNITED STATES AND U.S. PERSONS, THIS PRESENTATION IS STRICTLY CONFIDENTIAL AND MAY ONLY BE DISTRIBUTED TO QUALIFIED INSTITUTIONAL BUYERS, AS DEFINED IN RULE 144A UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE US SECURITIES ACT ), OR QIBS. THE RECIPIENT OF THIS PRESENTATION IS PROHIBITED FROM COPYING, REPRODUCING OR REDISTRIBUTING THE PRESENTATION. THE SHARES OF THE COMPANY HAVE NOT AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OR ANY STATE SECURITIES LAW AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES UNLESS AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT IS AVAILABLE. ACCORDINGLY, ANY OFFER OR SALE OF SHARES IN THE COMPANY WILL ONLY BE MADE (I) TO PERSONS LOCATED IN THE UNITED STATES, ITS TERRITORIES OR POSSESSIONS THAT ARE QIBS IN TRANSACTIONS MEETING THE REQUIREMENTS OF RULE 144A UNDER THE U.S. SECURITIES ACT AND (II) OUTSIDE THE UNITED STATES IN OFFSHORE TRANSACTIONS IN ACCORDANCE WITH REGULATIONS S OF THE U.S. SECURITIES ACT. NEITHER THE U.S. SECURITIES AND EXCHANGE COMMISSION, NOR ANY OTHER U.S. AUTHORITY, HAS APPROVED THIS PRESENTATION. THIS PRESENTATION IS BEING COMMUNICATED IN THE UNITED KINGDOM TO PERSONS WHO HAVE PROFESSIONAL EXPERIENCE, KNOWLEDGE AND EXPERTISE IN MATTERS RELATING TO INVESTMENTS AND WHO ARE "INVESTMENT PROFESSIONALS" FOR THE PURPOSES OF ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 AND ONLY IN CIRCUMSTANCES WHERE, IN ACCORDANCE WITH SECTION 86(1) OF THE FINANCIAL AND SERVICES MARKETS ACT 2000 ("FSMA"), THE REQUIREMENT TO PROVIDE AN APPROVED PROSPECTUS IN ACCORDANCE WITH THE REQUIREMENT UNDER SECTION 85 FSMA DOES NOT APPLY. THE CONTENTS OF THIS PRESENTATION SHALL NOT BE CONSTRUED AS LEGAL, BUSINESS, OR TAX ADVICE. RECIPIENTS MUST CONDUCT THEIR OWN INDEPENDENT ANALYSIS AND APPRAISAL OF THE COMPANY AND THE SHARES AND OF THE DATA CONTAINED OR REFERRED TO HEREIN AND IN OTHER DISCLOSED INFORMATION, AND RISKS RELATED TO AN INVESTMENT, AND THEY MUST RELY SOLELY ON THEIR OWN JUDGEMENT AND THAT OF THEIR QUALIFIED ADVISORS IN EVALUATING THE COMPANY AND THE COMPANY'S BUSINESS STRATEGY. THIS PRESENTATION REFLECTS THE CONDITIONS AND VIEWS AS OF THE DATE SET OUT ON THE FRONT PAGE OF THE PRESENTATION. THE INFORMATION CONTAINED HEREIN IS SUBJECT TO CHANGE, COMPLETION, OR AMENDMENT WITHOUT NOTICE. IN FURNISHING THIS PRESENTATION, THE COMPANY UNDERTAKE NO OBLIGATION TO PROVIDE THE RECIPIENTS WITH ACCESS TO ANY ADDITIONAL INFORMATION. THIS PRESENTATION SHALL BE GOVERNED BY NORWEGIAN LAW. ANY DISPUTE ARISING IN RESPECT OF THIS PRESENTATION IS SUBJECT TO THE EXCLUSIVE JURISDICTION OF THE NORWEGIAN COURTS WITH THE OSLO CITY COURT AS LEGAL VENUE. 2

3 COMPANY OVERVIEW FLEET UPDATE MARKET OPPORTUNITY APPENDIX

4 INTRODUCTION CO-FOUNDER AND SPONSOR OF MPC CONTAINER SHIPS AS THE SPONSOR THE COMPANY Real Estate Shipping Infrastructure 100% owned 80% owned 50% owned 34 feeder containerships 2 feeder containerships 5 feeder containerships Fully regulated Asset & Investment Manager Ship owning company with an existing fleet of 41 vessels MPC CAPITAL VALUE ADD MPC CONTAINER SHIPS SHAREHOLDER STRUCTURE 1 Active in real estate, shipping and infrastructure EUR 5bn in AuM (>350 assets total, 160 shipping assets) Extensive experience in the shipping industry and ship finance Strong market position in the container feeder sector 60% 15% 24% MPC Group Shareholders holding >5% Freefloat In-house technical and commercial ship management outfits (~100 shipping professionals) MPC Capital AG initiated MPC Container Ships in April 2017 Strong equity commitment: MPC Group invested USD 50m in MPC Container Ships AS (15% shareholding) 4 1 As of January 2018, to the best knowledge of the Company

5 MPC CONTAINER SHIPS ESTABLISHED IN APRIL 2017 CAPITAL MARKET TIMELINE STRATEGY UPDATE April 2017 MPC Container Ships AS founded with an initial private placement (USD 100m) Focused strategy Acquiring feeder containerships between 1,000-3,000 TEU at distressed levels Market fundamentals offer attractive value proposition May 2017 Listing on the Merkur Market, Oslo June 2017 Equity private placement (USD 75m) Attractive fleet acquired 41 feeder containerships acquired at attractive terms (~40-50% discount to newbuilding parity) Total investment volume of USD ~350m Positive operating cash flow Sept Senior secured bond placement (USD 100m) Moderate leverage Well capitalized with USD 450m capital raised 1 Conservative leverage profile No legacy issues Nov 2017 Equity private placement (USD 175m) January 2018 Full listing at Oslo Stock Exchange Competitive operations Highly competitive G&A and low cash break-even No hidden fees Aligned interests between the Sponsor and shareholders Developing the company with efficient deployment of funds and healthy capital structure 5

6 CAPITAL MARKET PROFILE SHARE PRICE AND VALUATION ANALYST COVERAGE % share performance since inception 1 Fearnley DNB Consensus Target price (NOK) Recommendation Buy Buy Buy Last update 30 Nov Jan TRADING INFORMATION 46.0 Ticker MPCC-ME Segment Merkur Market, Oslo ISIN Trading currency NO NOK 40.0 Shares outstanding 65,253,000 Market cap. 08 January 2018 USD 403m Share price in NOK Market cap in USDm Average trading volume (30-day) 16,000 shares Significant share price performance and ~25% upside based on analyst consensus 6 Note: Trading information based on data provided by Oslo Stock Exchange 1 Inception in April 2017 at share price of 43 NOK

7 MANAGEMENT RESOURCES WITH EXTENSIVE EXPERIENCE IN CONTAINER SHIPPING HIGHLY EXPERIENCED BOARD OF DIRECTORS CORPORATE STRUCTURE Dr. Axel Schroeder Ulf Holländer Chairman Managing director of MPC Holding Founder of MPC Capital AG and CEO between 1999 and 2015 CEO of MPC Capital AG Previously at Hamburg Süd and CFO of MPC Capital AG from 2000 to 2015 Resources for corporate management Commercial management MPC Container Ships AS Third-party managers Technical ship management Dr. Ottmar Gast Chairman of the Executive Board of Hamburg Süd Previously at Mahle GmbH, member of Executive Board at Deutscher Paketdienst GmbH Vessel SPVs Vessel SPVs Vessel SPVs Robert Knapp Principal of Ironsides Partners and director of various investment companies Previously at Millennium Partners OPERATIONAL MANAGEMENT EXPERIENCE Darren Maupin Director of Pilgrim Global ICAV, executive director of Anglo International Shipping and non-executive director in various industries Previously at Fidelity MANAGEMENT Constantin Baack CEO CFO of MPC Capital AG Previously at Hamburg Süd, Ernst & Young and various positions at MPC Capital AG since joining in 2008 >10 managerial professionals with extensive shipping industry experience at direct disposal of MPC Container Ships AS 7

8 COMPANY OVERVIEW FLEET UPDATE MARKET OPPORTUNITY APPENDIX

9 USD 350 MILLION INVESTED IN 41 FEEDER CONTAINER VESSELS AT HISTORICALLY DEPRESSED ASSET VALUES CURRENT FLEET OF 41 VESSELS 1 FLEET COMPOSITION BY TEU CLUSTER in USD m Discount to new building parity % Upside to historical average +74% vessels gls 1000 grd 1300 gls 1300 grd 1700 grd 2200 grd 2500 grd gls 2800 grd COMMENTS 41 vessel acquired with a total purchase price of USD ~346m Average age of 11.1 years 30 New building parity Fleet acquisition price yr average (10 yrs old) Chartering position 9 vessels with significant charter coverage until mid 2019 on average 7 vessels operated in a charter income pool Total estimated secured revenue of USD ~96m Scrap value Charter value vessels acquired, 30 vessels taken over 2 Adjusted for ownership stake and excluding working capital and dry dock reserves of USD 35m

10 CHARTERING EXPOSURE BY CHARTERER AND TRADE FIXED REVENUE PER CHARTER 1 CHARTER COVERAGE 73% USD 96m 5% 5% 5% 4% 8% Maersk Line High Reefer Pool CMA CGM Heung-A Seaboard Other 91% 19% 82% 22% 72% 19% 65% 15% 55% GEOGRAPHICAL EXPOSURE (NUMBER OF VESSELS) 43% 37% 33% vessels 17 Intra-Asia Caribbean Europe / Carib Med / West Africa Intra-Lat.Am. Mediterranean Middle East North Am. / Oceania Asia / Africa 17% 17% 17% 17% Next 3 Months Next 6 Months Next 9 Months Next 12 Months 10 Max. period Min. period Pool Vessels generating positive cash flow Vessel charters timed for potential future rate expansion 10 1 Based on minimum charter period, pool accounted for 3 months average pool rate, not adjusted for ownership stake

11 LEAN OPERATIONAL SET-UP WITH HIGHLY COMPETITIVE G&A AND CASH BREAK-EVEN HISTORICAL TC RATES VS ESTIMATED CASH BREAK-EVEN INDICATIVE CASH VARIOUS TC RATES USD/day 45,000 40,000 35,000 Illustrative TC rate 2,750 TEU vessel Estimated cash break-even rates (USD per day/vessel) Pro-forma 1 OPEX 5,170 G&A Shipman 380 Est. CBE 3 5,725 Debt service Est. levered CBE 6,355 (USD per day/vessel) Proforma 1 20 year average NB parity Net TC Rate 9,000 11,800 12,300 Est. cash break-even 3 6,355 6,355 6,355 Est. cash flow 2,645 5,445 5,945 (USD per annum) 30,000 Est. fleet EBITDA 47m 88m 96m 25,000 Est. fleet cash flow 37m 79m 86m 20,000 MANAGEMENT AGREEMENTS 15,000 Corporate management 10,000 Corporate management of USD 30K p.a. per vessel Commercial management 5,000 Cash Break Even 1.25% on fixtures (TC earnings) and, if applicable, 0.25% for pool management 0 Technical management USD K p.a. per vessel Company CBE w/debt 6-12m TC rate 2,750 TEU Avg last 20 years Newbulding parity rate No hidden fees and all contracts at arm s length Attractive cash break even of USD ~6,355 per day including debt service 11 Sources: Fearnley, Clarksons SIN, Company 1 Acquired fleet of 41 vessels, adjusted for ownership stake; 2 G&A based on USD 30k per vessel p.a. in corp. management plus est. group overhead expenses; 3 Excluding est. dry dock provisions of USD per day; 4 Interest and amortization based on existing debt facilities

12 COMPANY OVERVIEW FLEET UPDATE MARKET OPPORTUNITY APPENDIX

13 e 2018e 2019e 2020e 2021e e 2018e 2019e 2020e 2021e SUPPLY AND DEMAND BALANCE IMPROVING IN THE WHOLE CONTAINER SHIPPING MARKET DEMAND: TRADE DEVELOPMENT ORDERBOOK AT HISTORIC LOW mteu Intra-Regional North-South Non-Mainlane Mainlane mteu Orderbook Total Orderbook-to-Fleet Ratio (RH) % /10 01/11 01/12 01/13 01/14 01/15 01/16 01/17 01/18 SUPPLY: FLEET DEVELOPMENT FREIGHT RATES STABILIZING IN mteu 12+ k TEU k TEU k TEU k TEU k TEU k TEU k TEU 1,600 1,400 1,200 1, SCFI Index /10 01/11 01/12 01/13 01/14 01/15 01/16 01/17 01/18 13 Sources: Clarksons SIN, MSI

14 EVEN MORE FAVORABLE SUPPLY/DEMAND DYNAMICS FOR THE FEEDER SEGMENT LIMITED ORDERING OF FEEDER TONNAGE AGEING FEEDER CONTAINER FLEET Order book to fleet ratio (per teu cluster) 86.6% 14% 20% 4% 11% 20% 4% 1% 3% 15% 23% 48% 7% 2% Vessels 1-3k TEU > 15 years: 35% 0.6% % 1,000-2, % 3,000-7, % 8,000-11, % 12,000-14,999 15,000+ Avg. 13,7% 18% 25% 16% 7% 26% 25% 31% 38% 14% 12% ,000 3,000-2,999-7,999 31% 43% 8,000-11,999 52% 12,000-14,999 91% 15,000+ Avg. other segments: 25% Age INTRA-REGIONAL CONTAINER TRADES WITH STRONGEST PROJECTED GROWTH Trade deployment of feeder tonnage (1-3k TEU) 20% 6% 7% Intra-regional North-South Over two-thirds of feeder tonnage deployed in intra-regional trades Intra-regional trades have high entry barriers for larger tonnage due to port restrictions, frequency requirements, inflexibility and commercial constraints 67% Non-Mainlane EW Mainlane Charter market recovery to be expected in segments best protected by cascading, e.g. regional feeder trades 14 Sources: Alphaliner, Clarksons SIN, MSI

15 SIGNIFICANT UPSIDE POTENTIAL TO HISTORICAL ASSET VALUES HIGH UPSIDE POTENTIAL IN ASSET VALUES HIGH DISCOUNT TO NEWBUILDING PARITY USDm Current vs: Upside USD m 30 Current NB price 2,600 / 2,900 TEU Avg last 20 years 102% Avg last 15 years 108% Avg last 10 years 65% NB parity 82% % 45 % Y old 54% 10Y old 15Y old Scrap value HIGH SCRAP VALUE COVERAGE LIMITS DOWNSIDE / 2900 teu 10yr Avg last 10 years Avg last 15 years Avg last 20 years Newbuilding parity USD m Scrap in % of 10y 2600 / 2900 teu 10 yr % 70% 60% 50% 40% 30% 20% 10% 0% High discount to newbuilding parity discouraging newbuilding ordering 15 Sources: Fearnley, Clarksons SIN

16 Unlevered cash-on-cash yield % SIGNIFICANT UPSIDE POTENTIAL IN EARNINGS RATES NOT SUFFICIENT TO JUSTIFY NEWBUILDING CASH-ON-CASH YIELD POTENTIAL (2,750 TEU, 10Y OLD) USD/day 45,000 Current vs: Upside Avg last 20 years 71% 35% 32% 33% 40,000 Avg last 15 years 68% Avg last 10 years 9% 30% 29% 35,000 NB parity rate 58% 30,000 25% 25,000 20% 20,000 15,000 15% 13% 10,000 10% 10% 5,000 5% TEU 6-12 m TC Avg last 10 years Avg last 15 years Avg last 20 years Newbulding parity rate 0% Current Avg last 10 years Avg last 15 years Avg last 20 years Newbuilding parity rate Solid yield also at today s distressed levels 16 Sources: Fearnley, Clarksons SIN

17 COMPANY OVERVIEW FLEET UPDATE MARKET OPPORTUNITY APPENDIX

18 KEY MARKET CONSIDERATIONS - CONTAINER SHIPPING Container liners operate regularly scheduled services to transport container boxes of different kinds (TEU, FEU, reefer, etc.) between a series of ports Liners on average own 45% of their operating fleet and charter-in 55% on short to long-term time charter from tonnage providers (in general charter periods increase with vessel size) Freight rates refer to the transport cost of container boxes for cargo shippers and charter rates to the cost per day for liners to charter-in vessels Through chartering-in tonnage, liners are outsourcing capital requirements and are more flexible to adjust their networks according to changes in demand CONTAINER SHIPPING IN BRIEF Cascading effect Feeder Panamax Neo-panamax Ultra large container Segments (TEU) ,000-2,999 3,000-5,099 5,100-13,299 13,300+ No. of vessels 980 1, , TEU capacity 645,797 3,393,790 3,778,872 9,840,332 3,277,406 Trade deployment Transshipment and intra-regional, e.g. Intra-FE, Intra-Europe Intermediate trades, e.g. Africa, ME/ISC related Long-haul, e.g. east-west, north-south trades Long-haul, mainly Asia - Europe Top 10 global liners APM-Maersk (+Hamburg Süd 1 ), MSC, CMA CGM, COSCO (+OOCL 1 ), Hapag-Lloyd (+UASC), Evergreen, Yang Ming, NYK + MOL + K Line 1 18 Sources: Company, Alphaliner 1 Planned merger

19 MAJORITY OF FEEDER FLEET DEPLOYED ON INTRA-REGIONAL TRADES CONTAINER INDUSTRY TRENDS FEEDER DEPLOYMENT TRENDS Vessel sizes have significantly increased both on long-haul and intermediate trade routes in recent years The deployment of larger vessels on long-haul trade routes is supporting the development of hub-and-spoke systems and therefore enhancing demand for feeder vessels Intra-regional trade growth has outperformed the overall container industry historically and is projected to continue doing so Global fuel Sulphur limits will enter into force in The target vessels are expected to operate on distillates and new compliant fuels, not requiring significant additional investments Cascading between 2011 and 2016 has resulted in the share of feeder tonnage (1,000-3,000 TEU) deployed on intra-regional trades increasing from less than half (end-2011) to over two-thirds (2016) The feeder fleet currently deployed on non-intra-regional trades is well protected from cascading as it allows niche liner companies to maintain their presence on longer-haul trades, often serving secondary or tertiary ports with size restrictions Intra-regional trades have high entry barriers for larger tonnage due to port restrictions, frequency requirements, inflexibility and commercial constraints TRADE COMPOSITION OF 1,000-3,000 TEU VESSELS % 8% 7% 6% 2,800,000 TEU 45% 20% 3,000,000 TEU 40% 67% Intra-regional North-South Non-Mainlane EW Mainlane Limited cascading risks into intra-regional trades 19 Sources: MSI

20 HIGHLY EXPERIENCED MARITIME SERVICE PROVIDERS HIGHLIGHTS MPC CAPITAL Currently 159 maritime assets worth EUR 1.8bn under management Structuring of vessel investments with transaction volume >USD 8bn since 1994 Management team with extensive experience in the international shipping industry and ship finance Covering the entire value chain of shipping investments with >100 shipping experts Service providers owned 100% by MPC Capital AG ASSETS UNDER MANAGEMENT 22 2 SHIPPING UNITS OF MPC CAPITAL CORPORATE / ASSET MANAGEMENT Asset management of more than 150 maritime assets, including container vessels, bulk carriers and tankers Unique asset sourcing capabilities and experience in maritime transactions Dedicated team of investment professionals Transparent reporting standards COMMERCIAL MANAGEMENT ~100 container vessels between 700 and 5,500 TEU under management Excellent relationships with global liners as well as local feeder operators Market leader in feeder segments such as 1,300 TEU geared high reefer and 2,800 TEU 11 Container Bulker vessels Tanker 110 Reefer Other TECHNICAL MANAGEMENT ~50 container vessels between 1,000 and 5,500 TEU under management 14 bulk carriers under management Ship management experience since 1950 Highly competitive OPEX and dry dock management Fully integrated set of asset and investment management services along the maritime value chain 20 Note: Data as of 30 June 2017

21 FLEET LIST CURRENT FLEET OF 41 VESSELS No. Vessel Name TEU Cluster Built Price Stake 1 AS LAETITIA 1000 grd 2007 $4.8m 100% 2 AS LAGUNA 1000 grd 2008 $4.8m 100% 3 ANNIKA 1000 gls 2008 $8.0m 100% 4 ANTIGONI 1000 gls 2008 $8.0m 100% 5 AS FIONA 1300 gls 2003 $5.1m 100% 6 AS FRIDA 1300 gls 2003 $6.2m 100% 7 AS FATIMA 1300 gls 2008 $8.0m 100% 8 AS FLORETTA 1300 grd 2007 $7.4m 100% 9 AS FAUSTINA 1300 grd 2007 $7.4m 100% 10 AS FABRIZIA 1300 grd 2008 $7.7m 100% 11 AS FIORELLA 1300 grd 2007 $8.6m 100% 12 AS FORTUNA 1300 grd 2009 $7.5m 100% 13 AS FILIPPA 1300 grd 2008 $6.2m 100% 14 MAERSK WOLGAST 1700 grd 2010 $15.5m 100% 15 OCEAN ARROW 1700 grd 2007 $9.5m 100% 16 MCC DHAKA 1700 grd 2007 $9.5m 100% 17 MAERSK WESTPORT 1700 grd 2009 $13.5m 100% 18 MAERSK WARSAW 1700 grd 2009 $12.8m 100% 19 MAERSK WINNIPEG 1700 grd 2010 $15.0m 100% 20 MAERSK WOLFSBURG 1700 grd 2010 $15.3m 100% 21 MAERSK WEYMOUTH 1700 grd 2009 $13.9m 100% 22 MAERSK WIESBADEN 1700 grd 2010 $13.5m 100% 23 AS ANGELINA 2200 grd 2007 $5.4m 100% 24 AS PETULIA 2500 grd 2008 $9.3m 100% 25 AS PAULINA 2500 grd 2004 $9.5m 100% 26 AS PETRONIA 2500 grd 2004 $8.7m 100% 27 AS PALINA 2500 grd 2004 $8.0m 80% 28 AS PETRA 2500 grd 2004 $8.0m 80% 29 VILANO 2800 grd 2006 $10.6m 100% 30 CAP PASADO 2800 grd 2006 $10.6m 100% 31 CAP BLANCHE 2800 grd 2006 $10.6m 100% 32 AS CONSTANTINA 2800 gls 2005 $7.9m 100% 33 AS CLARA 2800 gls 2006 $8.8m 100% 34 AS COLUMBIA 2800 gls 2006 $8.9m 100% 35 AS CLARITA 2800 gls 2006 $8.9m 100% 36 Ocean Blue 2800 gls 2008 $11.5m 100% 37 AS CARINTHIA 2800 gls 2003 $5.1m 50% 38 CARDONIA 2800 gls 2003 $5.4m 50% 39 CARPATHIA 2800 gls 2003 $6.4m 50% 40 CORDELIA 2800 gls 2003 $6.1m 50% 41 CIMBRIA 2800 gls 2002 $5.7m 50% 21

22 FINANCIALS PROFIT AND LOSS BALANCE SHEET Q3/2017 YTD Charter revenues 8.2 Commissions -0.3 Vessel voyage expenditures -1.3 Vessel operation expenditures -5.1 Ship management fees -0.4 Gross profit 1.1 Assets Q Q Equity & Liabilities Q Q Vessels Equity Financial Assets Current Assets Long-term Liabilities Current Liabilities Total Total Administrative expenses -0.9 Depreciation and impairment -1.3 Other expenses -0.1 Other income 0.4 Operating result (EBIT) -0.7 Finance income 0.7 Finance costs -0.2 Profit/Loss before tax (EBT) -0.3 Income tax expenses -0.1 Profit/Loss for the period

23 Contact MPC Container Ships AS Managing Director Constantin Baack