Financial Results Presentation
Fourth Quarter and Full Year 2012
26 February 2013
Highlights
Financial Performance
Business Review
Outlook
Page 2 | 4Q2012 & FY2012 Results Presentation
Financial Highlights From 1 January to 31 December 2012
Key highlights:
• Steady operating cash flow for the year at US$109.2 million
• High fleet utilisation at 99.8% in 4Q2012 and 98.9% in FY2012
• As the Trust continued deleveraging its business, gearing levels improved from 63% at the end of last
year to 59%.
• Distribution of 0.60 US cents per unit in 4Q2012, payable on 28 March 2013
Highlights
Financial Performance
Business Review
Outlook
Page 4 | 4Q2012 & FY2012 Results Presentation
Income Statement
4Q2012 4Q2011 %∆ FY2012 FY2011 %∆
Charter revenue 36,283 37,794 (4) 144,294 149,466 (3)
Other income 1,621 1,607 1 6,807 6,406 6
Other (losses)/gains - net 6 51 (88) (62) 73 NM
Total income 37,910 39,452 (4) 151,039 155,945 (3)
Add/(less):
Depreciation (9,414) (9,563) (2) (37,661) (37,868) (1)
(Provision for)/write-back of vessel impairment (4,521) 0 NM (4,521) 2,850 NM
Impairment of goodwill (2,070) 0 NM (2,070) (4,097) (49)
Amortisation of favourable charter contracts (128) (127) 1 (512) (511) 0
Vessel operating expenses (8,791) (8,438) 4 (35,412) (33,048) 7
Trustee-Manager fee (772) (768) 1 (3,070) (3,035) 1
Other trust expenses (151) (120) 26 (619) (655) (5)
Finance expenses (9,822) (9,105) 8 (39,555) (39,251) 1
2,241 11,331 (80) 27,619 40,330 (32)
Income tax expense 0 (1) NM 4 (4) NM
2,241 11,330 (80) 27,623 40,326 (32)
Net Profit Margin 6% 30% 19% 27%
* NM: Not Meaningful
Profit before income tax
In US$'000
Net profit after tax
Page 5 | 4Q2012 & FY2012 Results Presentation
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
Page 6 | 4Q2012 & FY2012 Results Presentation
Statement of Cash Flows
In US$'000 4Q2012 4Q2011 FY2012 FY2011
Cash flow from:
Operating activities 30,132 26,576 109,249 110,288
Investing activities (845) (258) (3,417) (1,561)
Financing activities (26,503) (26,241) (103,110) (101,594)
Net change in cash & cash equivalents 2,784 77 2,722 7,133
Cash & cash equivalents at beginning of period 53,491 53,462 53,536 46,423
Effects of exchange rate changes on cash and cash equivalents 1 (3) 18 (20)
Cash & cash equivalents at end of period/year 56,276 53,536 56,276 53,536
Restricted cash 892 1,785 892 1,785
Total Cash 57,168 55,321 57,168 55,321
Page 7 | 4Q2012 & FY2012 Results Presentation
Cash Flow Available for Distribution
In US$'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
^ ^
Page 8 | 4Q2012 & FY2012 Results Presentation
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%
Page 9 | 4Q2012 & FY2012 Results Presentation
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.
Page 10 | 4Q2012 & FY2012 Results Presentation
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
Page 11 | 4Q2012 & FY2012 Results Presentation
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
Financial Performance
Business Review
Outlook
Page 13 | 4Q2012 & FY2012 Results Presentation
* 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%
+
Page 14 | 4Q2012 & FY2012 Results Presentation
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%
Page 15 | 4Q2012 & FY2012 Results Presentation
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)
Page 16 | 4Q2012 & FY2012 Results Presentation
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
Financial Performance
Business Review
Outlook
Page 18 | 4Q2012 & FY2012 Results Presentation
• 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
Page 19 | 4Q2012 & FY2012 Results Presentation
* 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
Page 20 | 4Q2012 & FY2012 Results Presentation
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
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Note: The picture of MV ANL Warrain on the cover and on this page was taken by Angela Wylie / Fairfax Syndication