6 April 2017 2017 First Quarter Trading Update As at 31 March 2017 - - PowerPoint PPT Presentation

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6 April 2017 2017 First Quarter Trading Update As at 31 March 2017 - - PowerPoint PPT Presentation

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6 April 2017 2017 First Quarter Trading Update As at 31 March 2017 US$/day Handysize Supramax PB TCE per day 1 $7,460 $8,030 1Q Market Index Rate $6,300 $7,760 PB Outperformance YTD 18% 3.5% 2Q - 4Q PB Cover Rate $8,520 $10,090 %

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SLIDE 1

6 April 2017

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SLIDE 2

1Q17 Trading Update

2

2017 First Quarter Trading Update

US$/day Handysize Supramax PB TCE per day 1 $7,460 $8,030 Market Index Rate $6,300 $7,760 PB Outperformance YTD 18% 3.5% PB Cover Rate $8,520 $10,090 % Cover for Remaining Contracted Days 37% of 29,520 days 65% of 11,210 days

2Q - 4Q 1Q

1 Excluding short-term days: Handysize daily TCE US$7,570; Supramax daily TCE US$8,950,

representing 20% and 15% outperformance of BHSI and BSI

As at 31 March 2017

  • Owned Fleet will increase to 100 ships
  • Took delivery of 6 newbuildings, 1 remaining newbuilding will join in 2Q
  • Took delivery of 1 secondhand Supramax and sold 1 older, smaller Supramax
  • Purchased a 7-year old Handysize vessel
  • Continue to look for opportunities to purchase quality vessels and access attractive fleet

renewal opportunities

  • Established new commercial office in Rio to grow our cargo volumes in east coast South America
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1Q17 Trading Update

3

Earnings Cover in 2017

Currency in US$, data as at 31 Mar 2017 *2016 data as announced at April 2016 2Q-4Q Uncovered 2Q-4Q Covered 1Q Completed Supramax Handysize Contracted Revenue Days 1Q 11,950 days 38,220 Days 41,900 Days 2016* 2017 100% $5,900 100% $7,460 37% $8,520 34% $8,600 1Q 12,380 days 2Q-4Q 29,520 days FY17 55% $7,950 15,530 Days 19,500 Days 2016* 2017 100% $5,800 65% $10,090 100% $8,030 1Q 6,740 days 1Q 8,290 days 2Q-4Q 11,210 days FY17 80% $8,990 48% $8,200

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SLIDE 4

1Q17 Trading Update $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2017 2016 2015

US$/day net* 2016 $8,080 2015 $3,760 31 Mar 2017: $7,510

4

Market Freight Rates Development

Typical seasonal decline in early 2017 but rates bottomed out well above historic low levels of one year ago and recovered following CNY

Significant difference in development since Sep 2016 Baltic Handysize Index (BHSI)

* excluded 5% commission Source: Baltic Exchange, data as at 31 March 2017

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1Q17 Trading Update

2,000 4,000 6,000 8,000 10,000 12,000 14,000 Jan

  • 16

Apr

  • 16

Jul

  • 16

Oct

  • 16

Jan

  • 17

US$/day net* Pacific $8,270 Atlantic $8,270

5

Freight Market Improves From Very Low Base

* excluded 5% commission Source: Baltic Exchange, data as at 31 Mar 2017 Atlantic Pacific

Atlantic vs Pacific Spot Rates

  • Market conditions improved after seasonal dip around CNY
  • Pacific rates reached their highest in over two years by end 1Q:
  • Driven by increased Chinese economic and industrial activity
  • Minor bulk imports increased around 24% YOY in Jan-Feb17
  • US agricultural bulk exports grew 21%YOY in Jan-Feb17

Baltic Handysize Index (BHSI) and Baltic Supramax Index (BSI)

Handysize Supramax

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 US$/day net* BSI: $8,750 BHSI: $7,510

2,000 4,000 6,000 8,000 10,000 12,000 14,000 Jan

  • 16

Apr

  • 16

Jul

  • 16

Oct

  • 16

Jan

  • 17

Atlantic $7,850 US$/day net* Pacific $7,180

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1Q17 Trading Update

6

Global Dry Bulk Demand

Source: Clarksons Platou, as at 20 Feb 2017 * Minor bulk trade: 1,851mil tonnes

Iron Ore Coal Sub major bulk total Copper Concentrates Sugar Cement Soybean Wheat / Grains Forest Products Others Agribulks Steel Products Scrap Steel Fertiliser Manganese Ore Nickel Ore Bauxite / Alumina PB focus cargoes total* 2016 Total Dry Bulk 1,412 1,135 2,547 29 62 109 134 342 347 311 161 400 99 151 25 41 116 2,327 4,873 (Volume) Million Tonnes YOY Change

PB Focus

Global Dry Bulk Seaborne Trade Growth in FY 2016

2016:

  • Dry bulk volume growth: 1.2%
  • Dry bulk effective demand: 2.0%
  • Soybean and wheat/grain trade

volumes both grew 4%

  • Chinese iron ore & coal imports

increased

  • Minor bulk is not minor –

minor bulks & grain comprises 48% of total dry bulk demand

4% 0% 2.0% 12% 11% 6% 4% 4% 2% 0%

  • 1%
  • 1%
  • 2%
  • 3%
  • 4%
  • 7%
  • 8%

0.5% 1.2%

  • 10%
  • 5%

0% 5% 10%

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SLIDE 7

1Q17 Trading Update 5 10 15 20 25 30 35 40 45 50 55 04 05 06 07 08 09 10 11 12 13 14 15 16 17 US$ Million 5 years old 32,000 dwt: US$14m Newbuilding 35,000 dwt: US$20m

7

Secondhand Vessel Values Recovering

Source: Clarksons Platou, as at 31 Mar 2017

  • Improved freight market conditions supported increased vessel values
  • Sale and purchase activity has increased
  • Gap between newbuilding and secondhand prices discouraged new ship ordering

Handysize Vessel Values

31 Mar 2017:

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1Q17 Trading Update

8

Dry Bulk Supply & Demand

Source: Clarksons Platou, Pacific Basin

Supply:

  • 1Q17 net fleet growth: 1.5%
  • Positive factors:
  • Fewer ships delivering in 2017-18
  • Higher oil prices reduces sensitivity of ship operating

speeds to increasing freight rates

  • Ballast water management convention will encourage

scrapping older ships & poor performers Demand:

  • FY2016 overall effective demand grew about 2.0% after

contraction in 2015

  • Jan-Feb17 YOY:
  • Chinese minor bulk imports increased around 24%
  • US agricultural bulk exports grew 21%

Effective Demand Growth (%) Net Fleet Growth (%) 2.0% 2.3%

  • 2

2 4 6 8 10 2013 2014 2015 2016 YOY (%)

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1Q17 Trading Update

9

Self Correcting Supply Factors

Source: Clarksons Platou

New Vessel Ordering is Down Fleet Growth Remains Moderate

Total ordering vs existing fleet Total Dry Bulk Year-on-Year Net Fleet Growth

New Deliveries Partly Offset by Scrapping

  • Negligible new ship ordering
  • In 1Q17:
  • Continued orderbook delivery shortfall:
  • 61% Handysize; 46% overall dry bulk
  • 2.1% new deliveries slightly offset by 0.6%

scrapping (1.5% net fleet growth)

47

  • 29
  • 40
  • 20

20 40 60 80 2013 2014 2015 2016 1Q17E Mil Dwt Scrapping New deliveries

43% 2% 0% 10% 20% 30% 40% 50% 06 07 08 09 10 11 12 13 14 15 16 1Q17 (Annualised)

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 1 April 2017: 3.3%

16.7

  • 4.4

0.4%

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1Q17 Trading Update

5 10 15 20 25 30 35 40 Scheduled

  • rderbook

Actual delivery 2017 Remaining 2018 2019+ Mil Dwt 1Q17 46% Shortfall 3.8% 2.1% 31m 17m 4.5% 2.7% 1.0%

Handysize

(25,000-39,999 dwt)

Handymax (incl. Supramax)

(40,000-64,999 dwt)

Panamax

(65,000-119,999 dwt)

Capesize

(120,000+ dwt)

Dry Bulk Supply

Source: Clarksons Platou, as at 1 April 2017

Total Dry Bulk >10,000 dwt

10% 9 10% 0.5% 8% 8 8% 0.9% 6% 8 6% 0.3% 11% 8 7% 0.6% 8% 9 8% 0.6%

Orderbook as % of Existing Fleet Average Age Over 20 Years 1Q17 Scrapping as % of Existing Fleet as at 1 April 2017 (annualised)

10 Total Dry Bulk Orderbook

745 vessels (66.9 million dwt)

Handysize Orderbook

217 vessels (8.0 million dwt)

Total Dry Bulk >15 years

15%

Handysize >15 years

17%

Mil Dwt 1Q17 7.0% 2.3% 1.0% 1 2 3 4 5 6 Scheduled

  • rderbook

Actual delivery 2017 Remaining 2018 2019+ 3.3m 1.3m 61% Shortfall 4.2% 1.6% %

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1Q17 Trading Update

As at 31 December 2016

2016 Daily Vessel Costs – Handysize

Finance cost Depreciation Charter-hire : Short-term (ST) / Long-term (LT)

11

  • Daily cash cost before overhead: US$6,090 (2015: US$6,570)
  • Charter-hire costs significantly reduced
  • Overheads reduced to US$660/day (2015: US$710/day) - includes all direct & indirect costs
  • Reduction of vessel operating expenses (Opex)

Charter-hire : Index-linked

Vessel Days

Days & rates 2016-2017

Opex

53% 47% 47% 53% 24,800 22,530 27,480 25,650 Blended US$7,320 (2015: US$7,930)

Owned Chartered Inward Charter Commitments

6,220 22,530 * Chartered rates are shown net of provision

8,790 LT days $8,090 4,490 LT days $8,210 10,690 ST days $6,050 900 ST days $7,140 3,050 days $5,150 830 days Market Rate 4,410 LT days $8,300

4,960

550 days Market Rate

4,210 3,970 3,000 2,870 1,250 1,000 8,460 7,840 7,450 6,730

  • 2,000

4,000 6,000 8,000 10,000 2015 2016 2015 2016 US$/day

  • 3,000

6,000 9,000 12,000 15,000 18,000 21,000 24,000 2H17 1H17 2016 Vessel Days

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1Q17 Trading Update

As at 31 December 2016

2016 Daily Vessel Costs – Supramax

12

Finance cost Depreciation Opex Charter-hire : Short-term (ST) / Long-term (LT) Charter-hire : Index-linked

Vessel Days 20% 24% 80% 76% 5,660 23,640 17,670 6,060

Days & Rates 2016-2017

Inward Charter Commitments

4,670 23,640 1,540 * Chartered rates are shown net of provision

  • Daily cash cost before overhead: US$6,390 (2015: US$7,720)
  • Charter-hire costs significantly reduced
  • Overheads reduced to US$660/day (2015: US$710/day) - includes all direct & indirect costs

2015 2016 2015 2016

Blended US$6,830 (2015: US$8,190)

Owned Chartered

US$/Day 4,060 4,080 3,450 3,390 980 1,120 8,090 6,380

  • 2,000

4,000 6,000 8,000 10,000 8,490 8,590

3,130 LT days $10,350 2,110 LT Days $9,870 20,180 ST days $5,780 2,560 ST days $7,130 330 days $5,090 1,540 LT Days $11,530

Vessel Days

  • 3,000

6,000 9,000 12,000 15,000 18,000 21,000 24,000 27,000 2H17 1H17 2016

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1Q17 Trading Update

13

Our Ability to Outperform

Our business model has been refined over many years. We are able to generate a TCE earnings premium over market rates because of our high laden percentage (minimum ballast legs), which is made possible by a combination of:

  • Our fleet scale
  • High-quality substitutable ships
  • Experienced staff
  • Global office network
  • Our cargo contracts, relationships & direct interaction with

end users

  • Our fleet is high proportion of owned vessels facilitating

greater control and minimising trading constraints

  • Handysize segment’s versatile ships and diverse trades

Average premium last 5 years:

  • Handysize TCE: US$2,010/day
  • Supramax TCE: US$1,340/day

Our TCE Outperformance Compared to Market

Baltic Handysize Index - net rate PB Handysize Performance 2,000 4,000 6,000 8,000 10,000 12,000 2013 2014 2015 2016 1Q17 US$/day $6,300 $7,460

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1Q17 Trading Update

Cash Flow in 2016

14 As at 31 December 2016

Operating cash flow US$49.5m EBITDA US$22.8m Borrowings decreased by US$94m due to:

  • 2016CB repayment of US$106m
  • 2018CB repayment of US$124m
  • Net repayment of US$70m of secured

borrowings

  • Drew down US$205m of new secured

borrowings

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1Q17 Trading Update

Borrowings and Capex

15

Secured borrowings (US$723.8million) Convertible bonds (face value US$125million, book value US$115.4million, maturity July 2021) Vessel capital commitments (US$119.1million)

As at 31 December 2016

  • US$158m of undrawn committed borrowing including:
  • US$140m of Japanese export credit facilities
  • US$18m of other secured borrowings
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1Q17 Trading Update

2016 Balance Sheet

16

Vessels & other fixed assets Total assets Total liabilities Net assets Net borrowings to net book value of property, plant and equipment Total borrowings US$m

31 Dec 16

1,653 2,107 1,066 34% 839

31 Dec 15

1,611 2,146 1,175 971 35% 926 Net borrowings (total cash US$269m) 570 568 1,041

  • Vessel average net book value: Handysize $15.8m (9.0 years); Supramax $22.0m (6.6 years)
  • KPI: maintain net gearing below 50%
  • Group in compliance with all loan covenants
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1Q17 Trading Update

Our Outlook and Strategy

Dry Bulk Outlook

  • Demand is growing for agricultural products & construction material, our two

largest cargo groups

  • Infrastructure investment spending from China and US bodes well for dry bulk

shipping

  • Increasing fuel prices are positive for freight market, discouraging shipowners

from increasing vessel speeds when freight rates increase

  • Past the worst, but more patience, scrapping & lack of ordering is required
  • We expect continued uncertain markets in 2017
  • Orderbook is shrinking but oversupply lingers and the fleet is still growing
  • Risk of new ordering, potential for increased ship operating speeds…

Strategy

  • Make the most of our robust business model, experienced staff, quality fleet &

strong balance sheet – enhanced by positive actions taken to stay strong, lean and competitive

  • Continue to conduct our business efficiently and safely while combining ships

and cargoes to maximise our margins

  • Well positioned for continued challenging market conditions and recovery

17

Business Model  Premium High-quality predominantly Japanese-built fleet Experienced staff, globally Strong counterparty Pacific Basin Benefits: Fully Handy focused

Well positioned

www.pacificbasin.com More on financial details: 2016 Annual Report

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1Q17 Trading Update

Effective from 4 May 2017, our headquarters will be at the following new address: 31/F One Island South, 2 Heung Yip Road, Wong Chuk Hang Hong Kong All other contact details will remain unchanged

We’re Moving!

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1Q17 Trading Update

Disclaimer

This presentation contains certain forward looking statements with respect to the financial condition, results of operations and business of Pacific Basin and certain plans and objectives of the management of Pacific Basin. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of Pacific Basin to be materially different from any future results or performance expressed or implied by such forward looking statements. Such forward looking statements are based on numerous assumptions regarding Pacific Basin's present and future business strategies and the political and economic environment in which Pacific Basin will operate in the future.

Our Communication Channels:

  • Financial Reporting
  • Annual (PDF & Online) & Interim Reports
  • Voluntary quarterly trading updates
  • Press releases on business activities
  • Shareholder Meetings and Hotlines
  • Analysts Day & IR Perception Study
  • Sell-side conferences
  • Investor/analyst calls and enquiries

Contact IR – Emily Lau E-mail: elau@pacificbasin.com ir@pacificbasin.com Tel : +852 2233 7000

  • Company Website - www.pacificbasin.com
  • Corporate Information
  • CG, Risk Management and CSR
  • Fleet Profile and Download
  • Investor Relations:
  • financial reports, news & announcements, excel

download, awards, media interviews, stock quotes, dividend history, corporate calendar and glossary

  • Social Media Communications
  • Follow us on Facebook, Twitter, Linkedin,

YouTube and WeChat!

19

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1Q17 Trading Update

www.pacificbasin.com Pacific Basin business principles and our Corporate Video

Appendix: Pacific Basin Overview

* As at Jan 2017

  • A leading dry bulk owner/operator of Handysize & Supramax dry bulk ships
  • Cargo system business model – outperforming market rates
  • About 200 dry bulk ships on the water serving major industrial customers around the world
  • Hong Kong headquarters, 12 offices worldwide, 330 shore-based staff, 3,000 seafarers*
  • Our vision: To be a shipping industry leader and the partner of choice for customers, staff,

shareholders and other stakeholders

20

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1Q17 Trading Update

  • Record low dry bulk market conditions significantly undermined our results in 2016
  • Net loss of US$87m
  • Our Handysize daily TCE earnings outperformed market index by 34%
  • Our G&A and Handysize operating costs further reduced to US$52.9m and <US$4,000/day respectively
  • Positive US$50m operating cash flow and US$23m EBITDA
  • Rights Issue of new shares raised US$143m net & repaid US$230m Convertible Bonds
  • US$158m of undrawn committed loan facilities at year end exceeding US$119m of dry bulk capex
  • Sale of towage and other non-core assets generated US$22m cash and our exit from towage is

substantially complete

  • Well positioned for recovery in dry bulk market

Appendix: 2016 Annual Results – Highlights

2016 2015 Operating Cash Flow US$50m US$99m EBITDA US$23m US$93m Cash Position US$269m US$358m Net Gearing 34% 35%

21

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1Q17 Trading Update

Appendix: Strategic Model

LARGE FLEET & MODERN VERSATILE SHIPS

Fleet scale and interchangeable high-quality ships facilitate service flexibility for customers,

  • ptimised scheduling and maximised vessel and

fleet utilisation In-house technical operations facilitate enhanced health & safety, quality and cost control, and enhanced service reliability and seamless integrated service and support for customers

STRONG CORPORATE & FINANCIAL PROFILE

Striving for best-in-class internal and external reporting, transparency and corporate stewardship Strong cash position and track record set us apart as a preferred counterparty Hong Kong listing, scale and balance sheet facilitate good access to capital Responsible observance of stakeholder interests and our commitment to good corporate governance and CSR

22

MARKET-LEADING CUSTOMER FOCUS & SERVICE

Priority to build and sustain long-term customer relationships Solution-driven approach ensures accessibility, responsiveness and flexibility towards customers Close partnership with customers generates enhanced access to spot cargoes and long- term cargo contract opportunities of mutual benefit

COMPREHENSIVE GLOBAL OFFICE NETWORK

Integrated international service enhanced by experienced commercial and technical staff around the world Being local facilitates clear understanding of and response to customers’ needs and first- rate personalised service Being global facilitates comprehensive market intelligence and cargo opportunities, and

  • ptimal trading and positioning of our fleet
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1Q17 Trading Update

23

Appendix: Understanding Our Core Market

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1Q17 Trading Update

24

Appendix: Why Handysize? Why Minor Bulk?

Source: Clarksons,, 1 Jan 2017

Pacific Basin focuses on these growing markets

Full Year 2016 Global Dry Bulk Trade

4.9 billion tonnes (+1.2% YOY)

Minor Bulks & Grain is 48% of total Dry Bulk demand

38%

Minor Bulk

29%

Iron Ore

23%

Coal

10%

Grain & Soybean

  • More diverse customer, cargo and

geographical exposure enables high utilisation

  • A segment where scale and operational

expertise make a difference

  • Better daily TCE earnings driven by a

high laden-to-ballast ratio

  • Sound long-term demand expectations

and modest historical Handysize fleet growth

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1Q17 Trading Update

Appendix: Pacific Basin Dry Bulk – Diversified Cargo

  • Diverse range of commodities reduces product risk
  • China and North America were our largest market
  • 60% of business in Pacific and 40% in Atlantic

25

Our Dry Bulk Cargo Volumes (1Jan17 - 28Mar2017)

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1Q17 Trading Update

Appendix: 2016 Financial Highlights

(34.7) 6.9 2016 2015 (18.5) Dry Bulk Towage & Others Underlying loss

  • Unrealised derivative income
  • Sale of properties
  • Vessel impairments
  • Sale of towage assets
  • Towage exchange charge
  • Other impairments

Loss attributable to shareholders (27.8) 8.8

  • 2.8

(1.5) (0.8)

US$m

26

  • US$23.6m unrealised derivative accounting gain mainly from completed prior year

bunker swap contracts

  • US$15.2 impairment charge related to:
  • US$8m remaining towage vessels
  • One Supramax vessel sold after the year end

(87.6) (0.1) (86.5) (87.7) 23.6 1.7 (15.2) (4.9) (2.8) (1.2)

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1Q17 Trading Update

  • Weak market condition impacted both our Handysize and Supramax TCE
  • Supramax generated a smaller loss, benefitting from the larger proportion of short-term

inward chartered ships in the weak market

  • Excluding short-term days:
  • Handysize daily TCE US$6,720 on 41,220 days
  • Supramax daily TCE US$7,940 on 14,230 days

Appendix: 2016 Pacific Basin Dry Bulk

27

Change

  • 16%

TCE earnings (US$/day) +8% Owned + chartered costs (US$/day)

  • 8%

Revenue days (days) 2015 6,630 7,320 2016 7,870 7,930 51,600 >-100% Handysize contribution (US$m) (37.1) (8.4) Handysize 47,590

  • 26%

TCE earnings (US$/day) +17% Owned + chartered costs (US$/day) +27% Revenue days (days) 6,740 6,830 9,170 8,190 23,300 >-100% Supramax contribution (US$m) (3.3) 22.6 Supramax 29,590

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1Q17 Trading Update

Appendix: China Major and Minor Bulk Trade

28

China Iron Ore Sourcing for Steel Production

Import Domestic Total requirement for steel production

Source: Bloomberg, Clarksons Platou

Export Import Net Import

China Coal Trade 2017 Chinese Minor Bulk Imports

Chinese imports of 8 minor bulks including Logs, Soyabean, Cereals, Fertiliser, Bauxite, Nickel Ore, Copper Concentrates & Manganese Ore Mil Tonnes 17E Annualised (Feb 2017)

China Steel Export

17E Annualised (Feb 2017) 1,025 1,053 266 183 1,291 1,236 200 400 600 800 1,000 1,200 1,400 06 07 08 09 10 11 12 13 14 15 16 17E Annualised (Feb 2017) 5 10 15 20 25 30 35 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2016 2017 Increased 24% YOY Mil Tonnes 14 21 43 63 59 25 43 49 56 62 94 112 109 79 20 40 60 80 100 120 04 05 06 07 08 09 10 11 12 13 14 15 16 Mil Tonnes

  • 6
  • 9
  • 6

256 256 247 249

  • 50

50 100 150 200 250 300 350 06 07 08 09 10 11 12 13 14 15 16 Mil Tonnes

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1Q17 Trading Update

29

Appendix: Fleet List – 31 Mar 2017*

Owned Chartered Total Delivered Newbuilding Delivered* Newbuilding Handysize

78

  • 72

3 153

Supramax

20 1 77

  • 98

Post-Panamax

1

  • 1
  • 2

Total

99 1 150 3 253 Pacific Basin Dry Bulk Fleet: 253 Average age of core fleet: 7.3 years old

www.pacificbasin.com Customers > Our Fleet

* Average number of vessels operated in March 2017

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1Q17 Trading Update

Corporate Social Responsibility (CSR)

  • Guided by strategic objectives on (i) workplace practices (primarily safety), (ii) the environment, and

(iii) our communities (where our ships trade and our people live and work)

  • Active approach to CSR, with KPIs to measure effectiveness
  • Reporting follows SEHK’s ESG Reporting Guide
  • Disclosure also through CDP, HKQAA, CFR for HK-listed companies

30

  • Applying sustainable thinking in our decisions and

the way we run our business

  • Creating long-term value through good corporate

governance and CSR

Corporate Governance & Risk Management

  • Adopted recommended best practices under SEHK’s CG Code (with quarterly trading update)
  • Closely integrated Group strategy and risk management
  • Transparency priority
  • Stakeholder engagement includes in-depth customer and investor surveys
  • Risk management committee interaction with management and business units
  • Integrated Reporting following International <IR> Framework of IIRC

Appendix: Sustainability

2016 CSR Report www.pacificbasin.com/ar2016

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1Q17 Trading Update

31

Appendix: Convertible Bonds Due 2021

PB’s call option to redeem all bonds

  • Trading price for 30 consecutive days > 130% conversion price in effect

Conversion/redemption Timeline Issue size Maturity Date Investor Put Date and Price Coupon Redemption Price Initial Conversion Price Intended Use of Proceeds To maintain the Group’s balance sheet strength and liquidity and to continue to proactively manage its upcoming liabilities, including its Existing Convertible Bonds, as well as for general working capital purposes 100% HK$4.08 (current conversion price: HK$3.07 with effect from 30 May 2016) US$125 million 3 July 2021 (approx. 6 years) 3 July 2019 (approx. 4 years) at par 3.25% p.a. payable semi-annually in arrears on 3 January and 3 July 8 Jun 2015 3 Jul 2019 Bondholders’ put option to redeem bonds Maturity 3 Jul 2021 23 Jun 2021 Closing Date 19 Jul 2015 Bondholders can convert all or some of their CB into shares