2015 - ultrabulk.com Ultrabulk...sonal contact. We encourage ... We are passionate about work well...

2014: A positive result in a depressed market ................3Business built on partnerships ........................................4An operator with an industrial focus................................6Tonnage Procurement: ....................................................8Thinking globally, acting locally .....................................10

Our vision for future development of our team and company:

“We strive to be your preferred partner in global dry bulk shipping”

Our future mission is to be always considered as:

“A partner you can trust”

Integrity We act with high ethical standards that ensure sustain-ability and safeguard our reputation. People are at the center of everything that we do; we encourage a balance between work and personal life. Our company has a “face” with a name; we are com-mitted to safety, to environmental protection and to the development of the communities in which we operate.

Excellence We seek to contribute to the growth and competitive-ness of our customers, by anticipating their needs. Our doors are always open and we take time for per-sonal contact. We encourage creativity and innovation in an environ-ment of diversity to find solutions that are beyond the ordinary.

Passion We are passionate about our work and our company. We make a special effort, to get to know and under-stand our customers, and we constantly challenge our-selves to create value and exceed their expectations. We are passionate about work well done, with details that make a difference. Sense of humour and joy are an integral part of our work. We strive to build a company that encourages personal and professional development and team spirit.

The fundamental key values driving our business and our organization are:

The Executive Management Team ................................12An empowered and qualified team ...............................13A strong financial platform ............................................14Part of a large and diversified logistics group ...............16Contact information .......................................................18

Contents

2014:

A positive result in a depressed market

A strategically important 12 year contract of affreightment (COA) was added to the portfolio in 2014 and the Ultrab-ulk Steel Service which was established in 2013 gained momentum and presence via the fixing of its first medium term COA for the lifting of steel pipes ex-north continent for use building four undersea pipelines which will cross the Black Sea.

The company’s core long term fleet was increased by four units in the course of the year bringing the total to 26 units ranging from 30.000 to 80.000 dwt vessels as at end 2014. A further 21 units will be delivered by the end of 2018 and includes Handysize, Supramax, Panamax and Kamsarmax units. This planned fleet growth is a physical hedge against Ultrabulk’s considerable long term cargo portfolio.

The depressed market conditions encountered in 2014 are expected to continue in the short term, creating a chal-lenging environment. Ultrabulk have a balanced book for 2015, a strong business platform, proven business model and not least a dedicated team. The company is therefore firmly placed to address the challenges and eventual op-portunities that arise in 2015.

Ultrabulk is an operator dedicated to the pursuit of long term partnerships and sustainable growth.

2014 started with an expectation of a slightly firmer dry bulk market, as cargo growth was expected to exceed fleet growth by 2%. But reality proved to be very different, with market growth falling short of expectations by some 80 mil-lion dwt. This shortfall coupled with other factors, such as counterpart defaults and the free fall in oil prices in the sec-ond half of the year, made for a volatile trading environment.

These depressed and volatile market conditions provided the Ultrabulk business platform with an unprecedented challenge. But the challenges was reasonable met, and the platform thereby proving its worth.

The business model and strict exposure control, partially neutralizing the potential detrimental effect such a de-pressed market could have had on the result for the year. Positive arbitrage achievements for the year partly off-set the shortfall encountered due lack of demand, limited counter party defaults and other challenging factors. The overall result for 2014 was short of budget, but still positive and in view of the prevailing market conditions, is consid-ered to be an acceptable achievement. The Ultrabulk con-trolled fleet remained stable during 2014 with an average of 123 vessels. The total number of physical ship days for the year reached 42.013, slightly up from the 40.603 the year before. Cargo lifted was also stable at 40.1 million tons in 2014, compared to 40.05 million tons the previous year.

A partner you can trust | Annual Magazine 2015 | 3

Ultrabulk runs a business platform based on customer needs. Close customers are considered as partners and considerable effort is put into visualizing customer needs. Long term perspectives drive investments, aimed at build-ing personal relations as well as allocating resources to analyse how the operation can be improved to become more cost efficient. Investment in port equipment and facilities to improve operations is an integrated part of the business platform. Customers are served from eight offices around the world placed in Chile, Brazil, USA, Germany, Denmark, China, Hong Kong and Singapore. The geographical spread of offices enables us to serve our partners in their own time zone both in relation to chartering and operation. Each office is empowered with sufficient authority to make the right business decisions in a quick and efficient manner. Partnerships with customers are the core of our business. They are supplemented with joint ventures which have been established for the ownership of vessel, as well as cargo handling projects, on the basis of a close coopera-tion with key customers around the globe. Each joint op-eration will continue to play an important role in our long term business strategy. Ultrabulk is primarily an operator but strongly supported by a growing ship owning side. Customers are served via a large modern fleet of around 100 – 150 vessels in Handysize, Handymax, Supramax, Panamax and Kamsar-max segments. The company is an operator with industrial focus and decades of experience handling traditional dry cargoes such as coal, metals, concentrates, fertilizer and bio fuels. In addition, specialized steel and parcelling ser-vices are offered via the Ultrabulk Steel Service division. A new MPP Service was created in March 2015 and will provide a service between Europe and Africa and back.

Business built on partnerships

A matrix organised team and a best in class trade man-agement system enables each team member to propose to customers the right shipping solution irrespective of shipment size. A tailor made risk management system has been established to support the commercial decision making process and assure a stable platform even during volatile market conditions. The partnership philosophy is based on long term relation-ships, combining cargo contracts and tonnage procure-ment into the vital core of the Ultrabulk business model. These long term partnerships are the basis for a stable platform and sustainable future growth.

We build long term partnerships based on integrity, excellence and passion.

Business model

Stat

e of

art in

formation & business support systems

Controlled Exposure

Short and long

term vessel

charters

Owned

tonnage

Cargo

co

ntra

cts

Spot and arbitrage

activities

Effective market entry & exit p

olic

y

4 | Annual Magazine 2015 | A partner you can trust


Up to 35 vessels

Panamax 65,000-85,000 dwt

Up to 55 vessels

Handysize 25,000-45,000 dwt

Up to 60 vessels

Supramax 45,000-65,000 dwt

Total fleet: 100 to 150 vessels

18%

39%

7%

17,550

1,257

Supramax8,189

Panamax2,929

FFAs

33%15,017

Handysize

3%Steel Service

2014 Trading days ( 44,942 ) by segment & area

14%Mineral/Ores

23%Coal

Salt

12%Steel

3%

2% Cement

2%Other 2%

Forestry Prod2% Others

7%Iron ore

12%Fertilizer

5%Petcoke

16%Grains

& Sugar

2014 Lifting’s 40.66 M/tons

Our partnership philosophy is based on long term relationships, combining cargo contracts and tonnage procurement into the vital core of the Ultrabulk business model. These long term partnerships are the basis for a stable platform and sustainable future growth.

An operator with an industrial focus

A key factor to assuring customer satisfaction rests with our experienced and professional team of operators. Stra-tegically located in offices around the world and supported by a state of the art back office system. They work closely together and with partners, taking pro-active steps night and day, in order to take advantage of opportunities and equalling avoid problems escalating. Our system positively supporting these efforts to provide the service level our

partners need, by assuring focus is maintained on critical factors at all times. It also facilitates strict risk manage-ment and is a fully integrated part of the communication system. A designated operator is allocated to each partner in order to ensure a smooth dialogue and create a con-structive environment, where we understand our partners’ requirements and priorities at all times.


Understanding our partners’ business is essential to us, as we strive to deliver the best possible transportation solution each and every time.Hans-Christian Olesen, Executive Vice President, Head of Panamax and Supramax

Program size:

26 vessels delivered and in service

21 units to be delivered by 2018

Diversified mix including:

· Chartered tonnage· Owned tonnage· Joint venture/co-owned

vessels· Handysize, Supramax,

Panamax and Kamsarmax vessels

Ultrabulk Newbuilding program main facts

Tonnage Procurement:Ultrabulk operates a quality fleet which ensures reliability for stable, safe and cost efficient transportation. The core fleet is a cornerstone in the company’s business platform, facilitating the efficient servicing of key cargo interests’ whilst meeting their long term transportation needs and expectations.

Prior to placing an order with a shipyard for a new vessel, Ultrabulk executes a thorough and stringent due diligence process. Thereby ensuring that not only the builder is able to deliver on the contract, but also design, build and deliver vessels of the highest quality. Equally important, builders used have a proven and recognised reputation for quality and having an innovative focus on the safety of the

crew, vessel and cargo. Shipyards used are known for be-ing front runners in the development and implementation of the latest environmental friendly features.

Ultrabulk are committed to the reduction of sulphur emis-sions, as member of the Trident Alliance.

Ultrabulk maintain focus on the on-going development of the core fleet, in order to provide long term sustainable transportation solutions to industrial clients. The company has a well-positioned new building program that has com-mitted vessel deliveries well into 2018, predominantly as a hedge against our long term book.

The Ultrabulk focus on quality shipbuilders secures long term operational reliability to our cargo customers.


Longstanding and sound support by our close partners and associates has enabled us to establish a diversified long term core fleet. We believe in our partnerships and are confident they will contribute to the further sustainable development of the Ultrabulk fleet, our partners continued growth and to the mutual benefit of all our industrial partners.

Henrik Sleimann Petersen, Executive Vice President, Head of Ship Holding



32 employeesCopenhagen (HQ)

4 employeesRio de Janeiro

26 employeesSantiago

7 employeesNew York

9 employeesSingapore

3 employeesHong Kong

3 employeesBeijing

9 employeesHamburg

... thinking globally, acting locally


The Executive Management Team

Klaus Munk Andersen

Executive Vice President, Head of Handysize

Hans-Christian Olesen

Executive VicePresident, Head of Panamax and Supramax

Per Lange

CEO

Henrik Sleimann Petersen

Executive Vice President, Head of Ship Holding

Søren M. Christoffersen

Executive Vice President, CFO

An empowered and qualified team

74/26%

8

37 YEARS

7YEARS

93 18Men / WomenAverage Age Average Service

Staff NationalitiesOffices

Staff facts and figures

Our professional staff is located strategically in 8 offices, focused on servicing customers and providing them with high quality transport solutions.

Back office functions have been centralized under the Ultranav umbrella thereby providing services such as fi-nance, accounting, HR and commercial support functions across the group companies.

We believe that having a multinational, cross cultural and mixed gender team, stimulates and contributes to an in-

spirationally working environment that is a strong founda-tion for long term relationships with our partners.

The staff is a major asset and a critical success factor. We invest in its development in the best interests of the company, partners and staff alike.


Despite a very difficult year in the dry bulk market, reach-ing an all-time low as a consequence of the adverse de-velopment in world economy, commodity prices, bunker prices, and trading patterns, Ultrabulk achieved a positive financial result in 2014.

The 2014 result is not as expected entering the year. How-ever a positive result under the prevailing market condi-tions - one which was doable due to Ultrabulk’s business model, applying a controlled exposure with a strong risk management focus - is considered acceptable.

To secure an optimal balance sheet, hereunder ensur-ing an appropriate level of liquidity at all times, Ultrabulk actively manages especially the working capital, but also cash, debt and other commitments. All exposures are monitored and managed in line with conservative compa-ny policies, and the credit risk is mitigated best possible.

Ultrabulk maintains a strong equity base higher than 50% providing the freedom to execute on strategies also dur-

ing challenging times. The strategic focus on partner-ships includes a limited growth in long term fleet including owned vessels, and consequently Ultrabulk is success-fully building long term partnerships with banks and other financiers as well. As a result hereof Ultrabulk signed two credit agreements with the Japan Bank for International Cooperation (JBIC) in 2014, cementing Ultrabulk’s solid financial platform and good standing in the Japanese mar-ket. Ultrabulk will, however, maintain a conservative and sustainable balance of borrowings and equity as a help to maintaining stability in view of the volatile shipping market.

The challenging dry bulk market is expected to continue in 2015, however with the applied business model and measures already taken, a small positive result for 2015 is expected.

“In challenging times it becomes even more important to focus on your risk management. This we do in many ways - from the ‘controlled exposure’ business model to streamlining and improving processes and controls. If nothing else, 2014 confirms that our business model and internal measures taken work”Søren M. Christoffersen, Executive Vice President & CFO


A strong financial platformalso following a very challenging market in 2014 …

6 mill.

31 mill.

51%

136 mill.EBITDA (USD) Equity ratio

Equity (USD)Gross Profit (USD)

Consolidated (2014)


UltratankUltrabulk

Ultragas Transmares

NavitransoAntares Naviers S.A.

The Ultramar Group, of which Ultranav is the ship owning/operating company, was founded by Albert von Appen in 1952 and has since then developed into a considerable and very diversified shipping group. From the head office in Santiago, Chile and from the network of offices around the world the Group is actively serving customers in: • Agency• Port operation• Tug boats• Gas Carriers (LPG)• Crude oil Tankers• CPP Tankers• Chemical Tankers• Container and Break Bulk carries• Bulk carriers• Special shipping related projects

Part of a large and diversified logistics group

The group has a global fleet of about 240 units and of which about 60 are fully owned and fly the Ultranav flag. Throughout the world the Group aspire to build and oper-ate the best platform of shipping services for the develop-ment and success of its clients, employees and commu-nities. Employees in all division will always strive to fulfil Group core values: • Integrity• Excellence• Passion

We remain …A partner you can trust …


www.ultranav.cl Ultranav owns around 60 vessels & operates about 240. They

are employed in the transportation of crude oil, refined products, chemicals, liquid

gases, dry bulk cargoes & containers.

www.ultratug.com Ultratug operates more than 90 offshore vessels, harbour &

LNG terminal tugs & pilot boats, servicing the majority of ports along the Chilean,

Peruvian & Ecuadorian coasts in the Pacific, as well as along the Argentine,

Uruguay and Brazilian coast in the Atlantic.

www.ultramar.cl Ultramar is one of the principle suppliers of integrated

port services & cargo logistic solutions in the South and North American mar-

ket. Ultramar’s principle activities include agency services, container deposits,

stevedoring & port operations.

Ultrabulk Shipping A/SSmakkedalen 6

2820 Gentofte

Denmark

Phone +45 3997 0400

Ultrabulk Beijing Representative OfficeChina Resources Building, Suite 2508

8 Jianguomenbei Avenue

Beijing 100005

Republic of China

Phone +86 10 8519 228

Ultrabulk (Germany) GmbH.Grosse Elbstrasse 145 E

Im Elbkaihaus

Hamburg 22767

Germany

Phone +49 40 3802390

Ultrabulk (Singapore) Pte Ltd.1 Harbourfront Avenue

#15-08 Keppel Bay Tower

Singapore 098632

Phone +65 6325 5777

Ultrabulk SAc/o Naviera Ultranav Limitada

Avda. El Bosque Norte 500 - 20th Floor

Las Condes - Santiago 7550092

Chile

Phone +562 630 1180

Ultrabulk back office services are

provided by;

Ultranav Business Support ApSSmakkedalen 6

2820 Gentofte, Denmark

Phone +45 3997 0400

Ultrabulk (Hong Kong) Limited1701 OfficePlus@Wan Chai,303 Hennessy Road, Wanchai,Hong KongPhone +852 2877 7878

Ultrabulk (USA) Inc.1055 Washington Boulevard

Suite 420

Stamford Connecticut 06901

U.S.A

Phone +1 203 964 2121

Ultrabulk do Brasil Ltda.Atlantica Business Center

Av. Atlantica 1130, 12 floor

Rio de Janeiro 22021-000

Brazil

Phone +55 21 3873 8681

RAL 501180366 MX

RAL 501080468 PE


an Ultranav Company

www.ultrabulk.com

2015 - ultrabulk.com Ultrabulk...sonal contact. We encourage ... We are passionate about work well...

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