DORIAN LPG February 2018

Transcription

1 DORIAN LPG February 2018

2 Disclaimer Forward-Looking Statements This presentation contains certain forward-looking statements including analyses and other information based on forecasts of future results and estimates of amounts not yet determinable and statements relating to our future prospects, developments and business strategies. Forward-looking statements are identified by their use of terms and phrases such as anticipate, believe, could, estimate, expect, intend, may, plan, predict, project, will and similar terms and phrases, including references to assumptions. The forward-looking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. Actual results could differ materially from expectations expressed in the forward-looking statements if one or more of the underlying assumptions or expectations proves to be inaccurate or is not realized. Our actual future results may be materially different from and worse than what we expect. We qualify all of the forward-looking statements by these cautionary statements. We caution readers of this presentation not to place undue reliance on forward-looking statements. Any forward-looking statements contained herein are made only as of the date of this presentation, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. 2

3 Dorian LPG at a glance Company overview Global presence Dorian LPG is a liquefied petroleum gas shipping company and a leading owner and operator of modern very large gas carriers ( VLGCs ). The Company was established in 2013 in connection with placing a large order of newbuildings at Hyundai HI. Predecessors have invested in and managed LPG vessels since The fleet is comprised of 19 ECO-VLGCs and 3 modern VLGCs, with an average age of 4.1 years. 18 of the vessels are currently employed in the Helios LPG Pool, founded by the Company together with Phoenix Tankers in Apr The remaining vessels are on time charter contracts to major companies. The Company provides in-house commercial and technical management services for all of the vessels in the fleet, including vessels owned by Dorian LPG deployed in the Helios LPG Pool. Dorian LPG was listed on the NYSE in 2014 under the ticker LPG. The Company has a market cap of USD ~437m as of 7-February-2018 Average vessel age vs. global fleet DLPG Fleet 9.05 Global fleet (1) As of 8-Feb

4 History / background Number of vessels 1 Dorian LPG announced delivery of its last ECO-VLGC newbuilding, the Caravelle and sale of the Grendon, its last remaining 5,000 cbm pressurized gas carrier Predecessor entities entered the LPG market in 2002 by acquiring two pressurized vessels First VLGC, Captain Markos NL, was delivered Dorian LPG Ltd. established (2013) and the Company listed on NYSE (2014). Dorian LPG raised USD million in four rounds from Jul-13 to May Part of predecessor entities Dorian LPG (1) Total LPG vessels on the water; (2) Gross proceeds 4

5 Experienced management team John Hadjipateras Chairman & CEO (Dorian LPG Ltd) With Dorian LPG since inception in Involved with shipping management since Experience from Peninsular Maritime, Eagle Ocean, Greek Shipping Corp. Committee, SEACOR and more John Lycouris CEO (Dorian LPG USA) With the Company since Holds strong experience from Peninsular Maritime and Eagle Ocean. Responsibilities include oversight of the entire newbuilding program and teams in Greece, the UK and the US Theodore B. Young CFO (Dorian LPG Ltd) Joined Dorian LPG at inception in Previous experience include Head of Corporate Development at Eagle Ocean and the buyout firms Irving Place Capital and Harvest Partners Alex Hadjipateras EVP Bus. Devel. (Dorian LPG USA) Joined Dorian LPG in 2013 focusing on business development. Previously responsible for Aframax and VLGC newbuilding at Eagle Ocean, and business development at Avenue A / Razorfish Costas Markakis President & CEO (Dorian LPG Management) Shipping and legal background with more than 30 years experience in executive and top management positions in ship management companies (commercial and operational) 5

6 The Helios LPG Pool The Helios LPG Pool (the Pool ) was established in April 2015 as a partnership between Dorian LPG and Phoenix Tankers, a subsidiary of MOL of Japan The Pool is comprised of 18 Dorian LPG VLGCs and 4 Phoenix VLGCs, and uses these high-quality assets to offer a complete global LPG maritime solution offering spot freight, TCs, and COAs 1 Earnings are allocated to each vessel participating in the Pool based on Pool Points, which are awarded to each vessel on the basis of characteristics such as carrying capacity and speed/consumption (1) Pool vessel composition is accurate as of 2/8/

7 Premium fleet Fleet overview Type Name CBM Delivered Yard Flag ECO VLGC CARAVELLE 84, Hyundai HI Bahamas ECO VLGC CHALLENGER 84, Hyundai HI Bahamas ECO VLGC COPERNICUS 84, Daewoo SME Bahamas ECO VLGC CHAPARRAL 84, Hyundai HI Bahamas ECO VLGC COMMANDER 84, Hyundai HI Bahamas ECO VLGC CRATIS 84, Daewoo SME Bahamas ECO VLGC CHEYENNE 84, Hyundai HI Bahamas ECO VLGC CLERMONT 84, Hyundai HI Bahamas ECO VLGC CONSTELLATION 84, Hyundai HI Bahamas ECO VLGC CRESQUES 84, Daewoo SME Bahamas ECO VLGC COMMODORE 84, Hyundai HI Bahamas ECO VLGC CONSTITUTION 84, Hyundai HI Bahamas ECO VLGC CONTINENTAL 84, Hyundai HI Bahamas ECO VLGC COBRA 84, Hyundai HI Bahamas ECO VLGC CONCORDE 84, Hyundai HI Bahamas ECO VLGC COUGAR 84, Hyundai HI Bahamas ECO VLGC CORVETTE 84, Hyundai HI Bahamas * * ECO VLGC CORSAIR 84, Hyundai HI Bahamas ECO VLGC COMET 84, Hyundai HI Bahamas Modern VLGC CAPTAIN NICHOLAS ML 82, Hyundai HI Bahamas Modern VLGC CAPTAIN JOHN NP 82, Hyundai HI Bahamas Modern VLGC CAPTAIN MARKOS NL 82, Hyundai HI Bahamas Comments The Company owns and operates 19 ECO- VLGCs and 3 modern VLGCs Average fleet age of 4.1 years 16 of the 22 vessels already equipped with Ballast Water Treatment Systems 2 of the 22 vessels already equipped with scrubbers, and an additional 17 are scrubber ready Captain Markos NL and Captain John NP have recently completed 10 year special surveys In-house technical and commercial management of fleet 18 vessels operate under spot, COA or Time Charter contracts of less than 24 months in the Helios Pool. Remaining 4 vessels on Time Charter contracts All newbuilds delivered and no remaining newbuilding related capital expenditures *Operated pursuant to Bareboat Lease from Japanese Owners 7

8 Vessels built at premium Korean Shipyards Total VLGC newbuilding deliveries by shipyard Comments 14% The Korean yards Hyundai HI ( HHI ) and Daewoo SME ( DSME ) are two of the world's leading shipbuilders 14% Daewoo Hyundai Jiangnan Dorian LPG and it predecessors have built 24 vessels at HHI since 2004 and maintain a strong relationship with its shipyards 8% 6% 58% Kawasaki MHI Nagasaki LPG vessels are highly engineered, and exacting technical specifications determine commercial acceptance HHI and DSME also design and build some of the world s most complex offshore vessels and rigs HHI is the most active and experienced yard in the design and construction of gas carriers 8

9 LPG Fundamentals What is LPG? Liquefied petroleum gas ("LPG") is a fossil fuel made during natural gas processing and oil refining. LPG is a by product of both oil and natural gas production and more than two-thirds of the LPG people use is extracted directly from the earth. The rest of it is manufactured indirectly from crude oil refining. Why use LPG? LPG is cleaner than coal and oil and an alternative to gasoline. It generates less air pollution and produces fewer emissions of carbon dioxide. LPG is also highly portable, making it a convenient source of energy usable in remote places where ordinary gas supplies are unavailable or have been interrupted. AT HOME ON THE GO AT THE FARM AT WORK OTHER Hundreds of millions of people around the world use LPG at home for applications such as cooking and heating. LPG is the preferred alternative automotive transportation fuel and is increasingly being used as a marine fuel. Millions of businesses rely on LPG. It is the ideal fuel choice for businesses that are not connected to an existing electrical grid. Farmers across the world rely on LPG to meet the challenge of staying competitive in the modern agricultural environment Industries such as aerosol, refrigeration, and chemical feedstock all look to LPG to provide sustainable fuel alternatives 9

10 LPG in the petrochemical value chain The LPG value chain Source Processing industries Transport / usage User Natural gas well Gas plant Natural gas LNG liquefaction Pipeline Power generation LPG Petrochemical gases LNG ship Residential/ commercial Industrial Ammonia Auto Oil well Refinery Condensates (CPP) Clean products LPG Vessels Further refining Chemicals Dirty products Agricultural 10

11 LPG Supply and Export Dynamics

12 Metric Tons (Millions) Metric Tons (Millions) Metric Tons (Millions) Global Liftings showing steady growth Global liftings (MM Tons) Jan YTD 2018 Jan YTD Annual Volumes U.S. Waterborne Exports Middle East Waterborne Exports Jan YTD Jan YTD Jan YTD Jan YTD Source: IHS, EIA, FGE *Note: Bbls/day converted to MT/yr (bbls per day/11.6 * 365) 12

13 U.S. LPG has significantly increased its share of global supply A New Era of Supply Emergence of U.S. as largest exporting nation has forced price competition amongst all suppliers Middle East supply has surprised on the upside with more export growth than expected The Asian market has become increasing reliant on US LPG Seaborne LPG by Source 100% 80% 14% 12% 10% 8% 9% 8% 11% 10% 8% 8% 10% 10% 10% 12% 11% 60% 40% 51% 47% 45% 44% 40% 20% 0% 15% 19% 25% 29% 32% US ME N.Sea Med Other Source: EIA, Bloomberg, IHS, FGE 13

14 Evolving U.S. NGL / LPG Trade Flows U.S. Exports of NGLs (mb/d) 2016 vs % y-o-y /1/2016 4/1/2016 7/1/ /1/2016 1/1/2017 4/1/2017 7/1/ /1/2017 Butane (+15%) Propane (+15%) Ethane (+289%) Japan 13% Australia 1% Korea 14% South America 16% Asia - Other 4% Source: EvercoreISI Mexico 10% Europe 18% Caribbean 10% China 12% Africa 2% Other 0% U.S. LPG volumes to Asia increased 45% year-overyear (vs. 15% growth in overall U.S. LPG exports). Japan 23% Korea 13% Australia 1% Asia - Other 5% South America 13% Europe 11% Caribbean 9% Mexico 9% China 13% Africa 2% Other 1% 14

15 U.S. as Global NGL / LPG Price Setter We believe the U.S. will become the global LPG market price setter given increasing supply at both Mont Belvieu and the Northeast (Marcus Hook) coupled with a liquid trading market and active hedging opportunities along the forward curves. Argus CIF ARA Sonatrach CP OPIS Mont Belvieu Increasing price circularity as greater volumes of U.S. LPG clear in the international market. Saudi CP Argus FEI Source: EvercoreISI 15

16 LPG Expansion Capacity Base Case LPG Exports (mb/d) Export capacity tightens. New capacity needed. 1,800 1,600 1,400 1,200 1, LPG Exports to Clear Market Existing Capacity Mariner East 2 AltaGas Ridley Island Pembina Prince Rupert Source: EvercoreISI We estimate current LPG export capacity is running at ~91% utilization (LPG nameplate capacity est. at ~1,200 mb/d). Based on the Base Case model, increasing volumes of LPG (propane and butane) will need to be exported in order to clear the market. The total volume is expected to grow from ~1,000 mb/d in 2017 to ~1,300 mb/d in 2020 and ~1,500 mb/d in The need to clear via exports stems from the lack of incremental domestic demand in the face of increasing levels of production. The Mariner East II start-up (est. 2018) will provide an outlet for (initially) up to ~275 mb/d. We expect this will provide some near term relief to the Gulf Coast terminals, although we expect that Mariner East II will take some time to fill up. Mariner East II is expected to primarily export NGLs produced in the Appalachian region. 16

17 LPG Demand & Consumption

18 Millions Growing markets for LPG: CHINA Annual China LPG imports (Tons) 20M 18M will be used as primary fuel source 16M 15.9M 18.3M 14M 12M 11.9M 10M 8M 6.9M 6M 4M 4.2M 2M 0M Source: FGE 18

19 Chinese Consumers Continue to Drive LPG Demand China LPG demand outlook While the restart of coal-fired plants to ease winter power shortages has probably dented Chinese residential heating demand for LPG in the near term, demand from the petrochemical sector is set to rebound with new PDH and alkylation unit start-ups due in 2018 Residential LPG will still be required in more remote rural areas, where piped gas is unavailable or too costly to install, but overall, chemicals will account for a growing share of China s LPG demand, especially with a rapidly growing petrochemical base in China. While no new PDH plants started up in China last year, both the 0.66 Mtpy Fujian Meide plant and Zhejiang Satellite s 0.45 Mtpy expansion are expected to start up in H2 18 State-owned refiners are also starting up an estimated 3.7 Mtpy of alkylation units, which will reduce refinery supplies of butane currently sold to standalone deep-processing units, increasing the need for imported supplies. So, Chinese buyers will remain a key source of demand throughout 2018 Middle Eastern supply alone will not be able to meet demand China LPG imports by source 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 22.2% 24.3% 22.6% 33.3% 6.5% 10.3% 6.9% 11.3% 8.1% 14.5% 16.4% 10.1% 11.9% 42.8% 19.6% 18.4% 23.4% 17.0% 20.5% 10.4% 6.8% 8.4% 15.5% 18.8% Qatar United States Iran United Arab Emirates Saudi Arabia Others Source: FGE, Platts 19

20 The year of the LPG consumer : INDIA India LPG import forecast (Million MT) 14M 12M 10M 8MPower conversion 6M 6Mproject with Vitol 4MBy April, LPG will be 2Mused as primary fuel Msource 8.1M Indian LPG demand remained near record levels in December 2017, with consumption rising by 45 thousand b/d y/y in Q4 17. The Modi Government aggressively promoting LPG penetration in rural areas calling 2016 the year of the LPG Consumer The Indian government s subsidized LPG connection scheme has issued 30.3 million connections since its inception in March 2016 and the country now has at least 181 million subsidized connections Original target of new connections under latest scheme was increased from 50 million to 80 million by May 2019, suggesting there is plenty of upside for Indian LPG Non subsidized market growing due to lower international LPG prices Demand from autogas and the private sector are set to grow amidst favourable auto-fuel economics and a 13% decline in GST tax for private companies Paradip refinery startup marks last major domestic supply addition supporting further imports 8.9M 10.1M 11.9M Seaborne LPG imports into India were up 17.1% in 2017, from 10.1mm tons to 11.9mm tons Source: IOC, FGE, Energy Aspects 20

21 Global PDH & Petchems also fueling demand Illustrative increase from Korean PDH Plant Korean market is saturated but saw a major increase in demand in 2017 from a new PDH facility PDH importers require high purity propane, best sourced from the US or Middle East This year could be sustained by the ramp-up of SK Advanced s PDH plant, stronger heating demand due to frigid temperatures (one of the coldest Januarys on record for Korea) and a growing preference for LPG cracking among petrochemical plants Source: FGE Korean LPG Demand by Sector (mmtons) Petrochemical Feedstocks Road Others Residential Commercial and Public Services Japan Upgrades cracker capacity Japan s Idemitsu Kosan s JV with Mitsui Chemicals recently announced plans to expand the processing of propane at Idemitsu s naphtha cracker The upgrade will boost the Cracker s capacity to process propane as feedstock by three or four times. It will mainly rely on LPG imports for feedstock rather than a small quantity of LPG produced at the plant According to data from Japan LP Gas Association, LPG requirements were driven by residential heating demand for propane. The cold weather combined with petro-chem demand for Butane picking up on opportunistic switching due to high Naphtha prices demand growth could see further increase Europe European petchem giant INEOS announced this June plans to expand its petrochemical infrastructure in Northwest Europe, with large capacity increases in its Rafnes, Norway and Grangemouth, Scotland crackers, as well as a greenfield 750,000 tons/year PDH unit in an undisclosed location. 21

22 Strong Fundamentals for Continued LPG Adoption Key Factors Favoring LPG Adoption for Power Generation and Retail Consumption Economic Established production hubs Global supply base Maritime and land transport options Price competitive product Low cost last mile infrastructure Environmental Lower greenhouse gas emissions 20% less CO 2 than heating oil 50% less CO 2 than coal Safe fuel source Avoids harmful and dangerous waste LPG should be the fuel of choice for emerging economies Each year, around 3.5 million premature deaths can be attributed to household air pollution resulting from the traditional use of solid fuels, such as fuelwood and charcoal. Four out of five people in sub-saharan Africa rely on the traditional use of solid biomass, mainly fuelwood, for cooking. Nearly 3.1 billion people, or 43% of the global population, still rely on polluting fuels (i.e. biomass, coal, kerosene) and technologies for cooking - a major source of household air pollution. Source: World Health Organization Source: ExceptionalEnergy.com 22

23 VLGC Shipping Market Dynamics

24 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Continued High VLGC Utilization Baltic VLGC daily spot TCE rates (USD/d) Global VLGC fleet utilization Baltic TCE / Day Baltic TCE / Day (4 Week Trailing Avg.) 70,000 60, % 50,000 40,000 30,000 20,000 10, % Drivers underlying current rate environment Incremental VLGC fleet growth has been absorbed without severely impacting utilization thus far (i.e. demand for seaborne transport continues to grow in excess of fleet growth) The Panama Canal Authority increased rates for neo-panamax VLGCs by 29% in October of This equates to an increase of ~$2.2/t. Currently, we estimate that 28% of traffic through the expanded canal is VLGCs, second only to container ships at 54%. The increased fees, alongside increased competition from other sectors like LNG, could result in a reduction in VLGC transits which would increase ton mile demand as those ships would then likely transit around the Cape of Good Hope, adding an additional days transit time. Source: Clarksons Research, Baltic Exchange, Panama Canal Authority 24

25 VLGC Fleet & Orderbook Review VLGC orderbook (2013-Onwards) (# vessels) BWTS + IMO low sulphur regulations In Service 21 On Order BWTS Convention Approx VLGCs will be required to DD and subsequently install BWTS between 9/8/2017-1/1/ Low Sulphur regulations Suggest 25% increase in bunker cost Dorian LPG s VLGC Fleet is ready: Modern With Scrubber Scrubber Ready Fleet profile 1 (# vessels) Potential Scrapping Candidates <5 5 to to to to 25 > 25 Source: Clarksons Research, Dorian LPG analysis (1) As of March 25,

26 Financials

27 Recent Financing Developments: Continuing to Enhance Balance Sheet Flexibility On May 31, 2017, the Company announced an agreement with its lenders under its $758 million facility to relax certain covenants of the 2015 Debt Facility and have also agreed to release $26.8 million of restricted cash to be applied towards future debt repayments, interest and certain fees. On June 7, 2017, the Company announced that it repaid its RBS debt facility at 96% of the then outstanding principal amount with a new $97 million bridge loan facility from DNB. As part of the refinancing, $6 million of cash previously restricted was released and used as unrestricted cash. On August 25, 2017, the Company announced that it had filed to issue up to $40 million of equity pursuant to an at the market ( ATM ) offering. On November 7, 2017, the Company refinanced a 2014-built VLGC, the Corsair, pursuant to a memorandum of agreement and a bareboat charter agreement that valued the vessel at $65 million. We bareboat chartered the vessel back for a period of 12 years, with a mandatory buyout in 2029 and purchase options from the 2 nd anniversary of the transaction onwards. The underlying interest rate is 4.9% and the underlying amortization profile is 16 years. The cash refinancing proceeds of $52.0 million were used to repay $30.1 million of the 2017 Bridge Loan s then outstanding principal amount. On January 31, 2018, the Company refinanced a 2015-built VLGC, the Concorde, pursuant to a memorandum of agreement and a bareboat charter agreement that valued the vessel at $70 million. We bareboat chartered the vessel back for a period of 13 years, with a mandatory buyout in 2031 and purchase options from the end of the 3 rd anniversary of the transaction onwards. The underlying interest rate is 4.9% and the underlying amortization profile is 17.3 years. The cash refinancing proceeds of $56.0 million were used to repay $35.1 million of the 2015 Debt Facility s then outstanding principal amount. 27

28 Statement of Operations Data (USD) Statement of Operations Data Three Months Ended December 31, 2017 (Unaudited) Three Months Ended December 31, 2016 (Unaudited) Revenues $ 44,545,589 $ 35,734,988 Voyage expenses (386,637) (1,193,265) Vessel operating expenses (15,749,381) (17,114,358) General and administrative expenses (5,536,028) (5,166,239) Other income related parties 633, ,836 EBITDA 23,462,426 12,931,962 Depreciation and amortization (16,466,322) (16,385,921) Operating income/(loss) 6,996,104 (3,453,959) Other income/(expenses), net (5,325,689) 8,493,583 Net income $ 1,670,415 $ 5,039,624 Other Financial Data Time charter equivalent rate (1) $ 22,833 $ 17,796 Daily vessel operating expenses (2) $ 7,804 $ 8,456 Adjusted EBITDA (3) $ 24,696,206 $ 13,927,649 (1) Our method of calculating time charter equivalent rate is to divide revenue net of voyage expenses by operating days for the relevant time period. (2) Calculated by dividing vessel operating expenses by calendar days for the relevant time period. (3) Represents net income excluding the potentially disparate effects between periods of derivatives, interest and finance costs, stock-based compensation expense, impairment, and depreciation and amortization expense and is used as a supplemental financial measure by management to assess our financial and operating performance. 28

29 Statement of Operations Data (USD) Statement of Operations Data Nine Months Ended December 31, 2017 (Unaudited) Nine Months Ended December 31, 2016 (Unaudited) Revenues $ 120,300,082 $ 119,861,997 Voyage expenses (1,901,603) (2,415,287) Vessel operating expenses (48,420,108) (49,549,255) General and administrative expenses (19,492,082) (15,981,464) Other income related parties 1,905,836 1,776,659 EBITDA 52,392,125 53,692,650 Depreciation and amortization (49,224,187) (48,944,183) Operating income 3,167,938 4,748,467 Other income/(expenses), net (20,102,629) (8,145,552) Net loss $ (16,934,691) $ (3,397,085) Other Financial Data Time charter equivalent rate (1) $ 21,199 $ 21,131 Daily vessel operating expenses (2) $ 8,003 $ 8,190 Adjusted EBITDA (3) $ 56,278,367 $ 56,757,693 (1) Our method of calculating time charter equivalent rate is to divide revenue net of voyage expenses by operating days for the relevant time period. (2) Calculated by dividing vessel operating expenses by calendar days for the relevant time period. (3) Represents net income excluding the potentially disparate effects between periods of derivatives, interest and finance costs, stock-based compensation expense, impairment, and depreciation and amortization expense and is used as a supplemental financial measure by management to assess our financial and operating performance. 29

30 Statement of Operations Data (USD) Statement of Operations Data Year Ended Mar 31, 2017 (Audited) Year Ended Mar 31, 2016 (Audited) Revenues $ 167,447,171 $ 289,207,829 Voyage expenses (2,965,978) (12,064,682) Vessel operating expenses (66,108,062) (47,119,990) General and administrative expenses (21,732,864) (29,836,029) Loss on disposal of assets (1,125,395) Other income related parties 2,410,542 1,945,396 EBITDA 79,050, ,007,129 Depreciation and amortization (65,057,487) (42,591,942) Operating income 13,993, ,415,187 Other income/(expenses), net (15,435,137) (28,726,805) Net income/(loss) $ (1,441,815) $ 129,688,382 Other Financial Data Time charter equivalent rate (1) $ 22,037 $ 55,087 Daily vessel operating expenses (2) $ 8,233 $ 8,581 Adjusted EBITDA (3) $ 83,279,670 $ 204,865,215 (1) Our method of calculating time charter equivalent rate is to divide revenue net of voyage expenses by operating days for the relevant time period. (2) Calculated by dividing vessel operating expenses by calendar days for the relevant time period. (3) Represents net income excluding the potentially disparate effects between periods of derivatives, interest and finance costs, stock-based compensation expense, impairment, and depreciation and amortization expense and is used as a supplemental financial measure by management to assess our financial and operating performance. 30

31 Cash Flows Data (USD) Cash Flows Data Nine Months Ended December 31, 2017 (Unaudited) Six Months Ended December 31, 2016 (Unaudited) Net loss $ (16,934,691) $ (3,397,085) Adjustments 51,551,945 29,066,675 Changes in operating assets and liabilities 6,328,996 23,535,260 Net cash provided by operating activities 40,946,250 49,204,850 Net cash provided by/(used in) investing activities 21,488,349 (1,762,861) Net cash used in financing activities (23,901,827) (61,699,686) Effects of exchange rates on cash and cash equivalents 81,967 (314,626) Net increase/(decrease) in cash and cash equivalents $ 38,614,739 $ (14,572,323) Cash Flows Data Year Ended March 31, 2017 (Audited) Year Ended March 31, 2016 (Audited) Net income/(loss) $ (1,441,815) $ 129,688,382 Adjustments 46,189,541 59,421,412 Changes in operating assets and liabilities 7,356,042 (38,082,294) Net cash operating activities 52,103, ,027,500 Net cash used in investing activities (1,981,022) (910,414,841) Net cash (used in)/provided by financing activities (79,318,882) 601,090,409 Effects of exchange rates on cash and cash equivalents (197,274) (112,289) Net decrease in cash and cash equivalents $ (29,393,410) $ (158,409,221) 31

32 Balance Sheet Data (USD) Balance Sheet Data December 31, 2017 (Unaudited) December 31, 2016 (Unaudited) Cash and cash equivalents $ 55,633,291 $ 31,839,639 Restricted cash, non-current 29,082,958 50,812,789 Total assets 1,706,199,091 1,760,213,403 Current portion of long-term debt 126,557,191 65,978,786 Long-term debt net of current portion and deferred financing fees 600,905, ,715,644 Total liabilities 744,239, ,313,926 Total shareholders' equity $ 961,959,344 $ 972,899,477 Balance Sheet Data March 31, 2017 (Audited) March 31, 2016 (Audited) Cash and cash equivalents $ 17,018,552 $ 46,411,962 Restricted cash, non-current 50,874,146 50,812,789 Total assets 1,746,234,880 1,842,178,176 Current portion of long-term debt 65,978,785 66,265,643 Long-term debt net of current portion and deferred financing fees 683,985, ,354,613 Total liabilities 770,233, ,578,939 Total shareholders' equity $ 976,001,718 $ 985,599,237 32

33 Our Mission is to arrange safe, reliable and trouble free transportation