Rickmers Maritime Q4 2012 results presentation

Financial Results Presentation

Fourth Quarter and Full Year 2012

26 February 2013

Highlights

Financial Performance

Business Review

Outlook

| 4Q2012 & FY2012 Results Presentation

Financial Highlights From 1 January to 31 December 2012

Key highlights:

• Steady operating cash flow for the year at US$109.2 million

• High fleet utilisation at 99.8% in 4Q2012 and 98.9% in FY2012

• As the Trust continued deleveraging its business, gearing levels improved from 63% at the end of last

year to 59%.

• Distribution of 0.60 US cents per unit in 4Q2012, payable on 28 March 2013

Highlights


Business Review

Outlook


Income Statement

4Q2012 4Q2011 %∆ FY2012 FY2011 %∆

Charter revenue 36,283 37,794 (4) 144,294 149,466 (3)

Other income 1,621 1,607 1 6,807 6,406 6

Other (losses)/gains - net 6 51 (88) (62) 73 NM

Total income 37,910 39,452 (4) 151,039 155,945 (3)

Add/(less):

Depreciation (9,414) (9,563) (2) (37,661) (37,868) (1)

(Provision for)/write-back of vessel impairment (4,521) 0 NM (4,521) 2,850 NM

Impairment of goodwill (2,070) 0 NM (2,070) (4,097) (49)

Amortisation of favourable charter contracts (128) (127) 1 (512) (511) 0

Vessel operating expenses (8,791) (8,438) 4 (35,412) (33,048) 7

Trustee-Manager fee (772) (768) 1 (3,070) (3,035) 1

Other trust expenses (151) (120) 26 (619) (655) (5)

Finance expenses (9,822) (9,105) 8 (39,555) (39,251) 1

2,241 11,331 (80) 27,619 40,330 (32)

Income tax expense 0 (1) NM 4 (4) NM

2,241 11,330 (80) 27,623 40,326 (32)

Net Profit Margin 6% 30% 19% 27%

* NM: Not Meaningful

Profit before income tax

In US$'000

Net profit after tax


Balance Sheet Highlights

Note:

1) Based on total issued units of 423,675,000

In US$'000 As at 31 Dec 2012 As at 31 Dec 2011 %∆

Assets

Cash and cash equivalents 57,168 55,321 3

Net book value of vessels 997,178 1,035,763 (4)

Other current and non-current assets 45,651 49,071 (7)

Total assets 1,099,997 1,140,155 (4)

Liabilities

Secured bank loans 568,402 620,133 (8)

Derivative financial instruments 34,896 55,157 (37)

Convertible loan 49,595 49,198 1

Other current and non-current liabilities 23,752 28,137 (16)

Total liabilities 676,645 752,625 (10)

Total unitholders' funds 423,352 387,530 9

Net Asset Value (NAV)/Unit (US$) 1 1.00 0.91 10


Statement of Cash Flows

In US$'000 4Q2012 4Q2011 FY2012 FY2011

Cash flow from:

Operating activities 30,132 26,576 109,249 110,288

Investing activities (845) (258) (3,417) (1,561)

Financing activities (26,503) (26,241) (103,110) (101,594)

Net change in cash & cash equivalents 2,784 77 2,722 7,133

Cash & cash equivalents at beginning of period 53,491 53,462 53,536 46,423

Effects of exchange rate changes on cash and cash equivalents 1 (3) 18 (20)

Cash & cash equivalents at end of period/year 56,276 53,536 56,276 53,536

Restricted cash 892 1,785 892 1,785

Total Cash 57,168 55,321 57,168 55,321


Cash Flow Available for Distribution

In US$'000 FY2008 FY2009 FY2010 FY2011 FY2012 4Q2012 4Q2011

Profit/(Loss) after tax 34,437 40,741 (28,553) 40,326 27,623 2,241 11,330

Add/(less):

Non-cash adjustments and others 22,280 36,379 78,566 30,544 38,058 14,692 6,730

Interest expense - net 19,900 34,267 42,169 42,636 40,525 9,839 10,598

EBITDA 76,617 111,387 92,182 113,506 106,206 26,772 28,658

Non-recurring expenses 762 441 21,765 0 0 0 0

Adjusted EBITDA 77,379 111,828 113,947 113,506 106,206 26,772 28,658

Add/(less):

Movement in working capital 23 738 2,384 (2,500) 2,873 3,014 (1,968)

Dry-dock reserve (1,656) (2,205) (2,033) (3,755) (3,058) 140 (899)

Cash flow available for distribution before payment to

debt capital providers75,746 110,361 114,298 107,251 106,021 29,926 25,791

Payment to debt capital providers (23,774) (43,050) (164,368) (92,268) (93,785) (23,961) (23,699)

Repayment of bank loans 0 (9,804) (104,999) (49,037) (52,003) (13,721) (13,193)

Interest paid - bank loans, int. rate swaps and conv. loan (19,536) (33,246) (41,691) (42,338) (40,889) (10,240) (10,506)

Loan restructuring fees 0 0 (2,678) (893) (893) 0 0

Debt arrangement fees (4,238) 0 0 0 0 0 0

Cash compensation fee 0 0 (15,000) 0 0 0 0

Cash flow available for distribution to unitholders 51,972 67,311 (50,070) 14,983 12,236 5,965 2,092

Amount to be distributed to unitholders 37,665 16,566 9,787 10,168 10,168 2,542 2,542

Distribution was partly funded from cash retained in prior periods

^ ^


Cash flow available for distribution before

payment to debt capital providers (US$'000)75,746 110,361 114,298 107,251 106,021

Distribution declared (US$'000) 37,665 16,566 9,787 10,168 10,168

DPU (US cents) 8.89 3.91 2.31 2.40 2.40

Weighted average number of units ('000) 417,262 423,675 423,675 423,675 423,675

0

30,000

60,000

90,000

120,000

2008 2009 2010 2011 2012

US$'000

Distributions

Cash flow available for distribution before payment to debt capital providers (US$'000)

Distribution declared (US$'000)

• As part of the Trust’s financial restructuring, DPU is capped at 0.60 US cents per quarter during the waiver period of the value-to-loan (VTL) covenants

Distribution to Unitholders

50% 15% 9% 9% 10%


Loan Facility Security

IPO Facility 1.75% 2017 307.9 307.6 110% Secured against the initial 10 vessels in the

IPO Fleet.

VTL covenant for the IPO Facility is 125% if

more than half of the vessels secured against

the IPO Facility have charters of less than one

year.

VTL covenant for the IPO Facility is 133% as

long as Top Up Facility is outstanding.

Top Up Facility 1.75% 2015 54.8 54.8 133%

First Facility 1.75% 2019 174.6 173.6 110% Secured against the five Mitsui vessels.

Second Facility 1.75% 2021 32.6 32.4 110% Secured against the vessel Hanjin Newport.

TOTAL 569.9 568.4

Before the deduction of unamortised debt transaction costs of US$1.5 million

Margin above US$

3-month LIBOR

VTL Requirement

in Loan Facility

Face Value

US$' million

Year of

Maturity

Carrying Amount US$'million

^

Outstanding Bank Loans As at 31 December 2012

• The Group had obtained a waiver of the value-to-loan covenants for all loan facilities for a three-year period, expiring on 14 May 2013. If the value-to-loan ratios are not met then, the Group may be required to furnish additional security, prepay part of the loans, or negotiate a further waiver to avoid a technical breach. We are currently exploring various options to address the expiry of the waiver.


Bank Loans Repayment Schedule

• Total bank debt repaid in 2012: US$52.0 million

• Total bank debt remaining: US$569.9 million (at 31 December 2012)

Repayment (in US$ million)FY

2012

1Q

2013

2Q-4Q

2013

FY

2014

FY

2015 - 2021

Scheduled repayments 43.2 15.4 52.7 71.1 426.4

Excess cash repayments 8.8 4.3Depends on Excess Cash

Generated

Total 52.0 19.7 52.7 71.1 426.4

Excludes repayment of Convertible Loan

EstimatedActual

US$569.9 million


Gearing

67%66%60%

>>> Interest Coverage for 2012 at 2.7x

63%

Note: Gearing ratio = (external bank loans + convertible loan) / (total unitholders’ funds + external bank loans + convertible loan)

59%

Highlights


Business Review

Outlook


* Excluding positioning and scheduled dry-docking

+ 29.4 days of Kaethe C. Rickmers’ pending delivery to MSC and 37.6 days of unscheduled off-hire for unforeseen repairs

Business Review Fleet Utilisation

4Q2012 4Q2011 FY2012 FY2011

Number of Vessels 16 16 16 16

Vessel Ownership Days 1,472 1,472 5,856 5,840

Off-Hire Days* 3.5 3.5 67.0 5.6

Fleet Utilisation 99.8% 99.8% 98.9% 99.9%

+


2012 – US$144.29 million 2011 – US$149.47 million

• Charter revenue remained stable on the back of long-term charters with reputable counterparties

• Revenue decline mainly due to lower contribution from Kaethe C. Rickmers

Hanjin 6%

CMA CGM 37%

CSAV 5%

MOL 33%

Italia Marittima

19%

Diversified Portfolio of Charterers

Italia Marittima

20%

CMA CGM 38%

CSAV 1%

Hanjin 6%

MOL 34%

MSC 1%


Source: Clarkson Research Services

Container Time Charter Market

Rickmers Maritime’s Average Daily Charter Rate: US$25,300

US$26,813 (4,400 TEU

10-year average)


At 31 December 2012:

Average age of vessels: 5.3 years

Average remaining charter period: 3.2 years

Remaining committed revenue: US$476.7 million

Staggered Remaining Charter Periods

Name TEU Charterparty Net Daily Charter Hire

2013 2014 2015 2016 2017 2018 2019

Kaethe C. Rickmers 5,060 MSC US$7,600 (till March 2013) / US$5,700 thereafter

Ital Fastosa 3,450 Italia Marittima US$25,870

Ital Festosa 3,450 Italia Marittima US$25,870

ANL Warringa 4,250 CMA CGM US$25,000

ANL Windarra 4,250 CMA CGM US$25,000

Ital Fiducia 3,450 Italia Marittima US$25,870

CMA CGM Azure 4,250 CMA CGM US$25,000

ANL Warrain 4,250 CMA CGM US$25,000

CMA CGM Jade 4,250 CMA CGM US$27,000

CMA CGM Onyx 4,250 CMA CGM US$27,000

Hanjin Newport 4,250 Hanjin US$25,950 US$27,950

MOL Dominance 4,250 MOL US$26,850

MOL Dedication 4,250 MOL US$26,850

MOL Delight 4,250 MOL US$26,850

MOL Destiny 4,250 MOL US$26,850

MOL Devotion 4,250 MOL US$26,850

Firm Time Charter Period Expiration Period Optional T/C Period

Highlights


Business Review

Outlook


• Dry-docking of merchant vessels is a regulatory requirement and is carried out in 5 year intervals in order to allow maintenance of the vessels’ underwater areas

• By end of 2014, all of Rickmers Maritime’s vessels would have undergone their first scheduled dry-docking

• After completing their first dry-docking, all of the 16 vessels are participating in an extended dry-dock trial program in which the next scheduled dry-docking for vessel maintenance is extended from 5 years to 7.5 years

Outlook Future Scheduled Dry-dockings

2013 2014

No. of vessels scheduled for dry-docking 4 2

Scheduled off-hire days 48 24


* Clarkson Research Services, January 2013

• A significant amount of new ships will be delivered during the next twelve months and despite a

projected increase in scrapping of existing ships and some further delay in delivery of

newbuildings, demand is unlikely to absorb the prevailing over-supply within this year.

• As a result, no material increase in time charter rates and vessel values is expected in the short

term.

• For 2013, containership capacity growth is forecasted at 6.6%* while projected trade growth to

reach 6.1%*.

• Trade growth is subject to risks from global economic developments, with downside risks being

high oil prices and continued uncertainty in the global economy.

• Our fleet of modern container vessels, except for one vessel, Kaethe C. Rickmers, is fully employed

until early 2014. Kaethe C. Rickmers is fixed to MSC until September 2013.

• Barring any unforeseen circumstances, we believe these existing long-term leases will continue to

generate ongoing cash flow for the Trust.

Outlook


This presentation should be read in conjunction with Rickmers Maritime’s Financial Statements for the financialyear ended 31 December 2012, released via the SGXNET.

This presentation may contain forward-looking statements that involve risks and uncertainties. Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factorsthat may cause our actual results, performance or achievements, or industry results, to be materially differentfrom any future results, performance or achievements expressed or implied by such forward-looking statementsand financial information. Such forward-looking statements and financial information are based on numerousassumptions regarding our present and future business strategies and the environment in which we will operatein the future. As these statements and financial information reflect our current views concerning future events,these statements and financial information necessarily involve risks, uncertainties and assumptions. Actualfuture performance could differ materially from these forward-looking statements and financial information. Youare cautioned not to place undue reliance on these forward looking statements, which are based on the Trustee-Manager’s current view of future events.

Disclaimer

THANK YOU

For more information, please visit

www.rickmers-maritime.com

Note: The picture of MV ANL Warrain on the cover and on this page was taken by Angela Wylie / Fairfax Syndication

Rickmers Maritime Q4 2012 results presentation

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