Atlas Corp. 2022 Investor Day March 30, 2022
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Atlas Corp. 2022 Investor Day • March 30, 2022 1 30/03/2022
Introduction
▪ Appointed CFO of Atlas and Seaspan in January 2021
▪ 30 years of international executive finance experience including
global energy businesses
▪ Previously CFO of Abu Dhabi Power Corporation, Maersk
Energy, Maersk Oil, and Shell Group
Graham Talbot
Chief Financial Officer,
Atlas & Seaspan
Atlas Corp. 2
30/03/2022
Legal Disclaimer This presentation contains forward-looking statements (as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act) concerning Atlas’ operations, cash flows, and financial position, including, without limitation, anticipated vessel sales and newbuild vessel deliveries, Atlas’ financial guidance, including 2022 to 2024 outlook, and its ability to continue to grow its business and create increased shareholder value. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “continue,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “projects,” “forecasts,” “will,” “may,” “potential,” “should” and similar expressions are forward-looking statements. These forward-looking statements represent Atlas’ estimates and assumptions only as of the date of this presentation and are not intended to give any assurance as to future results. As a result, you are cautioned not to rely on any forward-looking statements. Forward-looking statements appear in a number of places in this presentation. Although these statements are based upon assumptions Atlas believes to be reasonable based upon available information, they are subject to risks and uncertainties. These risks and uncertainties include, but are not limited to: Atlas’ future operating and financial results; Atlas’ future growth prospects; Atlas’ business strategy and capital allocation plans, and other plans and objectives for future operations; Atlas’ primary sources of funds for short, medium and long-term liquidity needs; potential acquisitions, financing arrangements and other investments, and the expected benefits from such transactions; Atlas’ financial condition and liquidity, including its ability to borrow and repay funds under its credit facilities, its ability to obtain waivers or secure acceptable replacement charters under the credit facilities, its ability to refinance existing facilities and notes, and to obtain additional financing in the future to fund capital expenditures, acquisitions and other general corporate activities; conditions in the public equity market and the price of Atlas’ shares; changes in governmental rules and regulations or actions taken by regulatory authorities, and the effect of governmental regulations on Atlas’ business; the financial condition of Seaspan’s and APR’s customers, lenders and other counterparties and their ability to perform their obligations under their agreements with Seaspan and APR, respectively; the continued ability to meet specified restrictive covenants in Atlas’ and its subsidiaries’ financing and lease arrangements, notes and preferred shares; any economic downturn in the global financial markets and potential negative effects of any recurrence of such disruptions on the demand for the services of Seaspan’s containerships or APR’s mobile power solutions or on our customers’ ability to charter our vessels, lease our power generation assets and pay for our services; the length and severity of the COVID-19 pandemic, including as a result of new variants of the virus, and its impact on Atlas’ business; a major customer experiencing financial distress, due to the COVID-19 pandemic, bankruptcy or otherwise; global economic and market conditions and shipping industry trends, including charter rates and other factors affecting supply and demand for our containerships and power generation solutions; disruptions in global credit and financial markets as the result of the COVID-19 pandemic, the Russia-Ukraine conflict or otherwise; Atlas’ expectations as to impairments of its vessels and power generation assets, including the timing and amount of potential impairments; the future valuation of Atlas’ vessels, power generation assets and goodwill; future time charters and vessel deliveries, including future long-term charters for certain existing vessels; estimated future capital expenditures needed to preserve the operating capacity of Seaspan’s containership fleet and comply with regulatory standards, as well as Atlas’ expectations regarding future dry-docking and operating expenses, including ship operating expense and expenses related to performance under our contracts for the supply of power generation capacity, and general and administrative expenses; availability of crew, number of off-hire days and dry-docking requirements; Seaspan’s continued ability to maintain, enter into or renew primarily long-term, fixed-rate time charters for its vessels and leases of our power generation assets; the potential for early termination of long-term time charters and Seaspan’s potential inability to enter into, renew or replace long-term time charters; Seaspan’s ability to leverage to its advantage its relationships and reputation in the containership industry; changes in technology, prices, industry standards, environmental regulation and other factors which could affect Atlas’ competitive position, revenues and asset values; disruptions and security threats to our technology systems; taxation of Atlas and of distributions to its shareholders; Atlas’ exemption from tax on U.S. source international transportation income; the continued availability of services, equipment and software from subcontractors or third-party suppliers required to provide APR’s power generation solutions; APR’s ability to protect its intellectual property and defend against possible third-party infringement claims relating to its power generation solutions; our ability to achieve or realize expected benefits of ESG initiatives; potential liability from future litigation; and other factors detailed from time to time in Atlas’ periodic reports. Forward-looking statements in this release are estimates and assumptions reflecting the judgment of senior management and involve known and unknown risks and uncertainties. These forward-looking statements are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Atlas’ control. Actual results may differ materially from those expressed or implied by such forward-looking statements Accordingly, these forward-looking statements should be considered in light of various important factors listed above and including, but not limited to, those set forth in “Item 3. Key Information—D. Risk Factors” in Atlas’ Annual Report for the year ended December 31, 2021, on Form 20-F filed on March 24, 2022, with the United States Securities and Exchange Commission (“SEC”). Atlas does not intend to revise any forward-looking statements in order to reflect any change in its expectations or events or circumstances that may subsequently arise. Atlas expressly disclaims any obligation to update or revise any of these forward- looking statements, whether because of future events, new information, a change in Atlas’ views or expectations, or otherwise. You should carefully review and consider the various disclosures included in Atlas’ Annual Report and in Atlas’ other filings made with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect Atlas’ businesses, prospects and results of operations. This presentation includes various financial measures that are non-GAAP financial measures as defined under the rules of the SEC. These non-GAAP financial measures, which include FFO, FFO Per Share, Diluted (“FFO Per Share”), Adjusted Earnings, Adjusted Earnings Per Share, Diluted (“Adjusted EPS”), Adjusted EBITDA, Net Debt and Total Borrowings, are intended to provide additional information and are not prepared in accordance with, and should not be considered substitutes for financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Investors are cautioned that there are material limitations associated with the use of the non-GAAP financial measures as an analytical tool. FFO and FFO Per Share represent net earnings adjusted for depreciation and amortization, gains/losses on sale, unrealized change in fair value of derivative instruments, loss on foreign currency repatriation, change in contingent consideration asset, preferred share dividends accumulated, impairment, loss on debt extinguishment and certain other items that management believes are not representative of its operating performance. FFO and FFO Per Share are useful performance measures because they exclude those items that management believes are not representative of its performance. FFO and FFO Per Share are not defined by GAAP and should not be considered as an alternative to net earnings, earnings per share or any other indicator of the Company’s performance required to be reported by GAAP. In addition, this measure may not be comparable to similar measures presented by other companies. Adjusted Earnings and Adjusted EPS represent net earnings adjusted for preferred share dividends accumulated, impairment, loss on debt extinguishment, and certain other items that management believes are not representative of its ongoing performance. Although gain/losses on sale was an adjustment to Adjusted Net Earnings and Adjusted EPS in 2021, it will no longer be an adjustment for 2022 and onward. Unrealized changes in fair value on derivative instruments will be an adjustment for 2022 and onward. Accordingly, 2022 and onward reflects this presentation and 2021 has been recasted for this presentation. Adjusted Earnings and Adjusted EPS are not defined by GAAP and should not be considered as an alternative to net earnings, net earnings per share or any other indicator of the Company’s performance required to be reported by GAAP. In addition, these measures may not be comparable to similar measures presented by other companies and the closest measure is net earnings. Management believes that these metrics are helpful in providing investors with information to assess the ongoing operations of the business. Adjusted EBITDA represents net earnings before interest expense and income, tax expense, depreciation and amortization, impairments, write-down and gains/losses on sale, gains/losses on derivative instruments, loss on foreign currency repatriation, change in contingent consideration asset, loss on debt extinguishment, other expenses and certain other items that management believes are not representative of its operating performance. Adjusted EBITDA provides useful information to investors in assessing the Company’s results from operations. Management believes that this measure is useful in assessing performance and highlighting trends on an overall basis. Management also believes that this performance measure can be useful in comparing its results with those of other companies, even though other companies may not calculate this measure in the same way. The GAAP measure most directly comparable to Adjusted EBITDA is net earnings. Adjusted EBITDA is not defined by GAAP and should not be considered as an alternative to net earnings, or any other indicator of the Company’s performance required to be reported by GAAP. The Company is unable to provide reconciliations of forward- looking Adjusted EBITDA and its components to their most directly comparable GAAP financial measures on a forward-looking basis because the necessary components that impact those GAAP financial measures cannot be reliably predicted. These components include, but are not limited to, income tax expense, gains/losses on sale, loss on derivative instruments, impairment, change in contingent consideration asset and loss on foreign currency repatriation. Such components may have a significant, and potentially unpredictable, impact on our future financial results. Total Borrowings represents long-term debt and other financing arrangements, excluding deferred financing fees. Operating borrowings represents Total Borrowings less amounts related to vessels under construction. Net Debt represents Total Borrowings before debt discount and fair value adjustments, net of cash and cash equivalents and restricted cash. Operating Net Debt represents Net Debt less amounts related to vessels under construction. Net Debt and Total Borrowings provide useful information to investors in assessing the Company’s leverage. Management believes this measure is useful in assessing the Company’s ability to settle contracted debt payments. Management also believes that this leverage measurement can be useful in comparing its position with those of other companies, even though other companies may not calculate this measure in the same way. The GAAP measure most directly comparable to Net Debt and Total Borrowings is the total of long-term debt and other financing arrangements. Net Debt and Total Borrowings are not defined by GAAP and should not be considered as an alternative to long-term debt and other financing arrangements, or any other indicator of the Company’s financial position required to be reported by GAAP. Atlas Corp. 3 30/03/2022
2022 Investor Day Agenda – ATCO:NYSE
Presentation Highlights Page #
Opening Remarks Graham Talbot, Chief Financial Officer, Atlas & Seaspan 2
Chairman’s Address David Sokol, Chairman of the Board, Atlas 6
2021 Overview and Future Priorities 14
Bing Chen, President & Chief Executive Officer, Atlas & Seaspan
ZE Atlas Joint Venture 20
Commercial & Operations Review Torsten Pedersen, Chief Operating Officer, Seaspan 25
Carbon Reduction Program Peter Jackson, Senior Vice President Projects & Technology, Seaspan 32
APR Energy 38
Graham Talbot, Chief Financial Officer, Atlas & Seaspan
Financial Review & Long-Term Guidance 45
Closing Remarks Bing Chen, President & Chief Executive Officer, Atlas & Seaspan 53
Question & Answers Session
Atlas Corp. 4
30/03/2022
Today’s Presenters & Q&A Participants
▪ Appointed to Seaspan’s Board in May 2017, appointed Chairman of Seaspan August 2017 and
David Sokol Atlas in February 2020
Chairman of the Board, Atlas ▪ Over 40-year business career, founded three companies, took three companies public and sold
80% of MidAmerican Energy Holdings Co. to Berkshire Hathaway in 2000
▪ Appointed President & CEO of Seaspan in January 2018 and Atlas in February 2020
Bing Chen
▪ Over 25 years of executive roles in banking, leasing, commodities, and transportation across Asia,
President & Chief Executive Europe, and North America
Officer, Atlas & Seaspan
▪ Previously CEO of BNP Paribas (China) Ltd.
▪ Appointed COO of Seaspan in June 2020
Torsten Pedersen
▪ Previously served as EVP (November 2018)
Chief Operating Officer,
Seaspan ▪ Over 20 years of experience in shipping, logistics and infrastructure, during which he held senior
leadership roles and board positions
Peter Jackson ▪ Appointed SVP, Projects & Technology of Seaspan in January 2022, originally joined in July 2001
Senior Vice President, Projects ▪ Over 30 years of experience in shipping, including President of a technology company
& Technology, Seaspan specializing in cloud-based solutions for the maritime industry
Graham Talbot ▪ Appointed CFO of Atlas and Seaspan in January 2021
Chief Financial Officer, Atlas ▪ 30 years of international executive finance experience including global energy businesses
& Seaspan ▪ Previously CFO of Abu Dhabi Power Corporation, Maersk Energy, Maersk Oil, and Shell Group
Atlas Corp. 5
30/03/2022
Chairman’s Address Atlas Corp. 6 30/03/2022
David Sokol: Chairman of the Board, Atlas
▪ Appointed to Seaspan’s Board in May 2017, appointed
Chairman of Seaspan August 2017 and Atlas in February 2020
▪ Over 40-year business career, founded three companies, took
three companies public and sold 80% of MidAmerican Energy
Holdings Co. to Berkshire Hathaway in 2000
David Sokol
Chairman of the Board,
Atlas
Atlas Corp. 7
30/03/2022
What is Atlas? Built to Last!
▪ $17.9 billion of long-term gross contracted cash flows1
Resilient and ▪ Scalable platforms, fully integrated, delivering customer-centric
Differentiated Global solutions
Business Model
▪ Long-term supportive and strategic shareholders Fairfax and
Washington Group
▪ Consistent Operational Excellence
▪ Creative Customer Partnerships
Five Key
▪ Solid Financial Strength
Competencies
▪ Quality Growth
▪ Disciplined Capital Allocation
▪ Value investing
▪ Optimizing asset composition
Quality Growth
▪ Increasing customer diversification
▪ Greater visibility and increasing quality of cash flows
Long-term capital allocator focused on delivering consistent value
Atlas Corp. 8
30/03/2022
Multi-Platform Owner-Operator
A Focused Diversified Infrastructure Company
Operating Globally
NYSE: ATCO
Market cap of $3.8bn1
Seaspan APR
Containership Leasing Platform Mobile Power Generation Platform
~88% of Adjusted EBITDA2 ~12% of Adjusted EBITDA2
▪ World’s largest containership lessor ▪ Mobile power solutions lessor
▪ Fleet of 191 vessels3 (~13% market share)4 ▪ ~850MW of mobile gas turbines6
▪ ~$17.6 billion gross contracted cash flow3,5 ▪ ~480MW of gas & diesel gensets6
▪ ~$0.2 billion gross contracted cash flow7
Diversified Infrastructure company with two best-in-class platforms within maritime & energy solutions
Atlas Corp. * See Appendix for reconciliations to the most directly comparable GAAP measure 9
30/03/2022
Transforming Fleet Composition
December 31, 2017 December 31, 20211
2,500 TEU Fleet >10,000 TEU 2,500 TEU
increasing to 76%1 12 Vessels 3,500–4,250 TEU
10 Vessels
24,000 TEU 16 Vessels
4% 2 Vessels 3% 2% 3%
2% 4,500–5,100 TEU
9 Vessels
13,000–14,000 TEU 3,500–4,250 TEU
17 Vessels 15,000–16,500 TEU 5,200–7,700 TEU
25 Vessels
16% 34 Vessels 25 Vessels
9%
35% 27% 8,500–9,600 TEU
89 4,500–5,100 TEU
8% 18 Vessels
7% 191
Vessels 10 Vessels
Vessels
16%
18% 28%
23% 8,500–9,600 TEU
13,000–14,000 TEU
12 Vessels
25 Vessels 10,000–12,000 TEU
10,000–12,000 TEU 50 Vessels
15 Vessels
Modern, efficient, and scalable fleet
Atlas Corp. 10
30/03/2022Enhanced Customer Diversification & Quality
December 31, 2017 December 31, 20211
Reduced top 3 customer
concentration by 17%1
4%
6%
6% 6%
6% 25%
8%
9% 40%
9%
16%
17%
13%
19%
16%
Greatly diversified and balanced customer base with substantially enhanced credit profile
Atlas Corp. 11
30/03/2022Through-Cycle Performance & Quality Growth
Cash Flow from Operations Gross Contracted Cash Flow1 Operating Net Debt2/Adj. EBITDA* Debt Tenor
CAGR = 24.7% CAGR = 39.7% Delta = -1.6x Delta = +2.6yrs
$944mn $17.9bn 6.8Yrs
5.4x
3.8x
4.2Yrs
$391mn
$4.7bn
2017 2021 2017 2021 2017 2021 2017 2021
Illustrative Return on ATCO Stock3 Total Shareholder Returns4
CAGR = 30.8% 300%
ATCO S&P 500 284%
Total Shareholder Returns
$17.75 250%
Accumulated $2.25 200%
Dividend
150%
100% 109%
$15.50 50%
$5.19
0%
Stock
Price -50%
May 31, 2017 March 29, 2022
Atlas Corp. * See Appendix for reconciliations to the most directly comparable GAAP measure 12
30/03/2022Long-Term Proven Track Record
▪Vessel Utilization
96% 98% 99% 98% 99%
▪ High quality board of directors and
management team
2017 2018 2019 2020 2021
▪Lost Time Injury Frequency (TTM)
1.58
▪ Operational excellence demonstrated 1.32
through safety and utilization 0.69
0.47 0.40
2017 2018 2019 2020 2021
▪ Delivering quality growth alongside ▪Corporate Rating1
BB+
improvements in credit profile, bolstered by BB
strong shareholder base B+ B+ B+
2017 2018 2019 2020 2021
Consistent performance over 20+ years demonstrates the strength of our business model
Atlas Corp. 13
30/03/20222021 Overview and Future Priorities Atlas Corp. 14 30/03/2022
Bing Chen: President & Chief Executive Officer, Atlas & Seaspan
▪ Appointed President & CEO of Seaspan in January 2018 and
Atlas in February 2020
▪ Over 25 years of executive roles in banking, leasing,
commodities, and transportation across Asia, Europe, and
North America
▪ Previously CEO of BNP Paribas (China) Ltd.
Bing Chen
President & Chief Executive Officer,
Atlas & Seaspan
Atlas Corp. 15
30/03/20222021 Achievements
▪ Exceeded upgraded 2021 guidance with record annual results
▪ Integrated APR under the Atlas umbrella
Atlas Corp.
▪ JV established with Zhejiang Energy Group to develop global maritime and
power opportunities
▪ Executed $7.6bn newbuild program; charters with leading global liners
contributing $11.4bn of gross contracted cash flows1, $6.9bn of financings
▪ Achieved utilization of 99%, forward fixed 86 charters in 2021 and YTD 2022,
completed 8,200 crew changes despite pandemic
Seaspan ▪ Issued $1.25bn of unsecured notes, $500mn private placement, upgraded to
BB+ corporate rating, BBB secured rating
▪ Advanced carbon reduction strategy with 25 dual-fuel LNG vessels
▪ Opportunistically recycling capital through the sale of 10 non-core vessels:
2 completed, 8 expected in 1H 2022
▪ Successfully deployed two additional projects totalling 400MW
APR Energy ▪ Achieved 74% utilization
▪ Continued improvement of business development team
▪ Successfully transitioned into longer-term contracts
Consistent track record of performance delivery and value creation
Atlas Corp. 16
30/03/2022Sustainable Market Leader
TEU (000s)1,2
Primarily a financial lessor
3 (i.e. limited/no vessel management services)
1,926
Lessors with operating capabilities
950
671 669 628
481 440 437
336 335 320 251 244 234 231 226 210 207 202 182
Peter Claus Offen
Doun Kisen
Costamare
Minsheng Financial
Navios Group
Eastern Pacific
V. Ships
China Merchants
Dohle Group
Management
Global Ship Lease
Nissen Kaiun
Danaos
Schulte Group
Shoei Kisen
Zodiac Maritime
SFL Corporation
BoCom Leasing
China IMC (CIMC)
Capital Ship
Shipping
Leasing
Bank
Largest Containership Lessor Fully-Integrated Operating Platform
Seaspan’s
Competitive Young & Environmentally Advanced Fleet Solid Financial Strength
Moat
Entrenched Partnerships with Global Liners
Strength and scale of operating platform creates our sustainable competitive advantage
Atlas Corp. 17
30/03/2022Highly Differentiated Business Model
▪ 1
Costamare1 Danaos1
Market Capitalization3 $3,838mn $2,128mn $2,173mn
2021 Revenue4 $1,647mn $794mn $690mn
Gross Contracted Cash
$17.9bn5 $3.4bn6 $2.8bn6
Flow / Backlog2
TEU2 1.92mn 0.67mn 0.44mn
Charter Duration2,7 7.7 Years 4.2 Years 4.0 Years
Fleet Age2,7 4.6 Years 8.7 Years 13.3 Years
Our business model yields competitive results
Atlas Corp. 18
30/03/2022Priority Focus on Value Creation
▪ Successfully execute remaining 67 vessel newbuilds
▪ Further development of ZE JV opportunities
▪ Opportunistic capital recycling
▪ Continued implementation of carbon reduction strategy
▪ Quality growth through disciplined capital allocation
Delivering sustainable value to shareholders is the core focus of Atlas
Atlas Corp. 19
30/03/2022ZE Atlas Joint Venture Atlas Corp. 20 30/03/2022
ZE Group Overview: Partner with Scale & Quality
Dominant Energy Clean Energy Leading Marine
Player Focus Business
~38 GW $1.7bn 51%
of total installed power invested in 2020 on ownership interest in
capacity renewable projects1 Ningbo Marine2
~80% 700 1.5mn Tonnes
ownership of provincial LNG fueling stations by the
shipping capacity
natural gas supply end of 2022
A strong JV partner with a leading energy, maritime, and environmental position
Atlas Corp. 21
30/03/2022Compelling Vision & Strategy
Background and Timeline
March 2021 July 2021 September 2021
November 2020
Shareholder Agreements and Regulatory Approvals First Shareholder and Board
Nonbinding MOU Executed
Articles Executed Received Meetings Held
Vision
▪ Best-in-class integrated provider of maritime, energy, and environmental technologies
▪ Diversified shipping segments including containership and bulk vessels
▪ Niche player in clean energy solutions
Strategy
ZE Atlas JV Leverage shareholder capabilities to jointly develop shipping, energy, and environmental opportunities
▪ Explore clean energy opportunities internationally
▪ Fleet optimization / recycling capital for quality growth
▪ Explore clean energy market outside China
▪ Develop partnerships on green maritime products and services
Strategic partnership leveraging two premier energy and maritime focused platforms
Atlas Corp. 22
30/03/2022Complementary Business Models
Alternative Marine
Power ZE Atlas JV Shipping Assets
Exhaust Gas Maritime Assets
Cleaning Systems
Ship Management
Fuel Gas Supply Environmental Technology
Systems
Clean Energy Clean Energy Projects International
Solutions Power Solutions
Focused on infrastructure and technology opportunities
Atlas Corp. 23
30/03/2022Near-Term Focus
▪ Vessel ownership, operational services, and clean energy projects
▪ R&D into green fuels and related technology
▪ Exhaust gas cleaning system and alternative maritime power
Developing opportunities to maximize value for all stakeholders
Atlas Corp. 24
30/03/2022Commercial & Operations Review Atlas Corp. 25 30/03/2022
Torsten Pedersen: Chief Operating Officer, Seaspan
▪ Appointed COO of Seaspan in June 2020
▪ Previously served as EVP (November 2018)
▪ Over 20 years of experience in shipping, logistics and
infrastructure, during which he held senior leadership roles and
board positions
Torsten Pedersen
Chief Operating Officer,
Seaspan
Atlas Corp. 26
30/03/2022Industry Status & Future Trends
Container Trade Demand Volumes1 Container Ship Supply2
250 15.0%
200 10.0%
YOY Growth %
Global Newbuilding Demolition
mn TEU
150 5.0% Container fleet Orders Activity
100 0.0%
50 -5.0% 25.4mn 6.1mn 12k TEU
0 -10.0% TEU TEU (16 ships)
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021E
2022F
2023F
4.9% increase YoY 25% of current scrapped in 2021
Mainlane Non-Mainlane East-West fleet
North-South Intra-Regional
Global Trade Growth (RHS)
Freight Rates (SCFI Comprehensive Index)3 Charter Rates3
3,500 TEU 4,400 TEU 6,800 TEU 9,000 TEU
6,000
$180,000
5,000 $150,000
4,000 $120,000
Index
3,000 $90,000
2,000 $60,000
1,000 $30,000
0 $0
Mar-10 Mar-12 Mar-14 Mar-16 Mar-18 Mar-20 Mar-22 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Overall market conditions show positive outlook through 2022 with focus on greener future fuels
Atlas Corp. 27
30/03/2022Consistent Operational Excellence
~$500 COVID-Related
and One-Time Costs
Lost Time Injury Frequency Fleet Utilization Vessel Daily OpEx
1.58 96% 98% 99% 98% 99% $6,766
1.32 $5,746 $5,884 $5,892 $6,010
0.69
0.47 0.40
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
Integral part of the global logistics chain - now and in the future
Atlas Corp. 28
30/03/2022Creative Customer Partnerships & Quality Growth
Charter Roll-Off1 Customer Concentration1,2
47
14%
16%
24%
6%
9%
6%
6%
25%
21 20 8%
14 13 14 13 13
8 7 9%
5 3 3 4 4
– – – – – 2
17%
13%
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
16%
Fleet Age-Size Development1 Age: NB 0-10 11-20 21-25
Divestment Newbuild Classes
50 Focus
Fleet Modernization in line with ESG and Carbon
40
Reduction Strategy
Vessels
30
20
▪ Divestment of older smaller tonnage
10
0 ▪ Newbuilding program of tonnage > 10K TEU
▪ Post-Panamax series to optimize market coverage
TEU Class
Strong partnerships with largest global liners
Atlas Corp. 29
30/03/2022Newbuild Program
Global Containership Deliveries (TEU)1
3,000 12,000
Delivered On Order Scrapped SSW On Order Average TEU
2,500
10,000
2,000
8,000
mn TEU Total
Average TEU
1,500
1,000 6,000
500
4,000
–
2,000
(500)
(1,000) –
2007 2009 2011 2013 2015 2017 2019 2021 2023 2025
Newbuild Delivery Portfolio Seaspan’s Newbuild Delivery Schedule
13 13
Size (TEU) # of Vessels
7,000 25
7
~12,000 11 6 6 6
5
~15,000 32 3 3 3
2
24,000 2
Total 70 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24
110+ newbuild track record – newbuild program de-risked by experienced team and quality shipyards
Atlas Corp. 30
30/03/2022Seaspan Value Proposition
Solidify Position
Asset Life-
Integrated
Cycle
Platform
Management
Expanding Existing Model
Customer
Partnerships Re-Invent Industry Roles
Consistent Operational Creative Customer Solid Financial Quality Growth Disciplined Capital
Excellence Partnerships Strength Execution Allocation
Industry-leading innovation driving largest-ever newbuilding program
Atlas Corp. 31
30/03/2022Carbon Reduction Program Atlas Corp. 32 30/03/2022
Peter Jackson: Senior Vice President, Projects & Technology, Seaspan
▪ Appointed SVP, Projects & Technology of Seaspan in January
2022, originally joined in July 2001
▪ Over 30 years of experience in shipping, including President
of a technology company specializing in cloud-based
solutions for the maritime industry
Peter Jackson
Senior Vice President, Projects & Technology,
Seaspan
Atlas Corp. 33
30/03/2022Industry & Regulatory Landscape Eager to Reduce Emissions
Regulatory Customer
Industry Societal
Growing momentum and sense of urgency to reduce carbon emissions
Atlas Corp. 34
30/03/2022Four Pillars of Seaspan’s Carbon Reduction Strategy
Continuous Efficiency Transition Pathways Market Based
Improvement (SAVER)
Fleet Insights
(CleanBlue) Initiatives
Upgrades Fuel Transition Performance Monitoring Customer Advisory
Fuel Efficiency Ship Conversion Actionable Insights Energy Supply
Cargo Loadability Energy Converters ESG Program Carbon Credits and Taxes
Communication
Green Financing
Crew Training
Transition through customer engagement and partnerships
Atlas Corp. 35
30/03/2022Seaspan’s View on Low & Zero Carbon Fuels
Gas Fuel Pathway
Bio-/Electro-
LNG
Drop-in Liquid Fuel Pathway
Bio-/Electro-
Methanol
We see two viable transition pathways in the short and medium term
Atlas Corp. 36
30/03/2022Three Pillars of APR Energy’s Carbon Reduction Strategy
Fuel Transition Certification
Cleaner Burning Fuels Strengthening ESG Policies and Processes
Asset Transition
Phasing Out Diesel-powered Modules
Oil Spill Prevention
Deliver power using clean fuel technology and gas turbines
Atlas Corp. 37
30/03/2022APR Energy Atlas Corp. 38 30/03/2022
Graham Talbot: Chief Financial Officer, Atlas & Seaspan
▪ Appointed CFO of Atlas and Seaspan in January 2021
▪ 30 years of international executive finance experience including
global energy businesses
▪ Previously CFO of Abu Dhabi Power Corporation, Maersk
Energy, Maersk Oil, and Shell Group
Graham Talbot
Chief Financial Officer,
Atlas & Seaspan
Atlas Corp. 39
30/03/2022Illustrative Power Contract Life Cycle
1 - 3 months 4 months - 3+ years 1 - 4 months
Contract Procurement
Mobilization Operation Demobilization Redeployment
Close & Logistics
Atlas Corp. 40
30/03/2022Fleet Deployment Schedule
Turbine Fleet 2021 2022
J F M A M J J A S O N D J F M A M J J A S O N D
1
2
▪ Argentina – demobilization of 14 turbines planned 3
4
5
for 1H 2022 6
7
8
9
10
11
▪ IID assets remained on site after completion of 2021 12
13
contract following contract renegotiation 14
15
16
17
18
19
20
▪ Higher-than-usual mobilization / demobilization 21
22
costs for 2022 driven by scale of Argentina 23
24
25
demobilization and subsequent redeployment 26
27
28
29
30
Contracted In Transit Idle
Ongoing fleet optimization as legacy contracts conclude
Atlas Corp. 41
30/03/2022Stabilizing Financial Performance
Adjusted EBITDA Margin1 2020 Financial Guidance vs. 2020 Actual Results2
(US$ millions) Guidance
Operating Metrics Low High Actual
Revenue 195 215 198 =
58.1% 58.9%
Operating Expenses 40 41 31 ▼
G&A Expense 37 38 37 =
46.2% Operating Lease Expense 3 4 3 =
Adjusted EBITDA 115 132 127 =
2021 Financial Guidance vs. 2021 Actual Results3
(US$ millions)
Operating Metrics Guidance Actual Beat
Revenue 195 229 ▲ 17.4%
Operating Expenses 52 62 ▲
G&A Expense 36 26 ▼
Operating Lease Expense 4 3 ▼
2019 2020 2021 Adjusted EBITDA 103 136 ▲ 32.0%
Atlas Corp. 42
30/03/2022Wide Range of Turbine Applications
Grid Applications Commercial Applications
Reserve Peaking Mining Refineries
Power Power
Ancillary Grid Manufacturing
Oil & Gas
Services Stabilization Facilities
Broad portfolio of commercial and industrial opportunities to deploy assets
Atlas Corp. 43
30/03/20222022 Outlook
Continue transition to long-term contracts
Develop carbon reduction solutions
Pictured: Evolution Power Partners Deployment
Redeployment of Argentinian assets
Optimize fleet utilization
Pictured: Matheu Deployment in Argentina
Atlas Corp. 44
30/03/2022Financial Review &
Long-Term Guidance
Atlas Corp. 45
30/03/2022Robust Financial Strength
▪Revenue ▪Adjusted EBITDA* ▪December 31, 2021
CAGR = 18.7% CAGR = 22.3%
$1.65bn
$1.12bn $17.9
$0.83bn Gross Contracted Cash Flow1,
$0.50bn
billions
2017 2021 2017 2021
▪Adjusted Earnings* ▪Adjusted EPS*
$889
Liquidity2,
CAGR = 46.1% CAGR = 19.3% millions
$446mn $1.68
$98mn
$0.83
$10.6
Total Assets,
billions
2017 2021 2017 2021
Resilient business model well positioned for growth opportunities
Atlas Corp. * See Appendix for reconciliations to the most directly comparable GAAP measure. The non-GAAP measures presented herein are based on the Adjusted Net Earnings and
Adjusted EPS, as reported
46
30/03/2022Optimizing Capital Structure for Investment Grade
($ millions)
Common Equity1, $3,838 Credit Facilities, $2,842 Ongoing Benefits and Focus
▪ Broadened our access to global capital markets
27%
37%
▪ Increased our financing flexibility
▪ Established our standings with ratings agencies
13% ▪ Executed sustainability-linked financings
8% ▪ Improved our cost of capital
13% Capital Leases2, $1,363
Preferred Equity, $803 2%
▪ Proactively hedged to manage exposures
Unsecured Notes, $1,302 Exchangeable Notes, $201
BB+ BBB
Corporate Rating Senior Secured Rating
Continuously improving Atlas’ balance sheet and market access, targeting 50-60% gearing
Atlas Corp. 47
30/03/2022Active Balance Sheet Transformation
31-Dec-17 31-Dec-21 ∆
Total Assets $5,878mn $10,570mn + $4,692mn
Scale LTM Adjusted EBITDA*,1 $496mn $1,116mn + $620mn
LTM Cash Flow Operations*,1 $391mn $944mn + $553mn
23 vessels / 36 vessels / + 13 vessels /
Unencumbered Assets
$828mn2 $1,369mn2 $541mn
Credit
Unsecured Debt / Total Borrowings3 16.9% 26.4% + 9.5%
Quality
Operating Net Debt3,4/ Adj. EBITDA1,* 5.4x 3.8x - 1.6x
Growth Capex1,5 $339mn $1,709mn + $1,371mn
Capital
Allocation
Debt and Preferred Repayments1,6 $488mn $2,105mn + $1,617mn
Quality growth alongside material improvement in core balance sheet metrics
Atlas Corp. * See Appendix for reconciliations to the most directly comparable GAAP measure 48
30/03/2022Proactive Capital Recycling
Seaspan’s Fully-Delivered Fleet2 42,500 TEU1
25,000 10x 4,250 TEU Vessels
Fully Delivered Fleet
Vessels Sold / Expected To Be Sold
20,000
~3.3 Years1,3
Average Remaining
TEU
15,000 Charter Term
10,000
~16.2 Years1,3
Average Age
5,000
~$315 Million1
0 Estimated Proceeds
- 5 10 15 20 25
from Vessel Sales
Age (Years)
Strategically de-risking fleet portfolio with divestment of non-core, older vessels
Atlas Corp. 49
30/03/2022Disciplined Capital Allocation1
Newbuild Gross Contracted Cash Flows
($ billions)
Existing Gross Contracted Cash Flows ~$10.2
Newbuild Capital Expenditures
$8.4
$2.7 $2.2 $2.5
$0.1 $1.7 $0.4 $1.9 $1.8
$1.1 $1.0 $1.0 $0.0 $1.8 $0.0
$1.6 $1.5 $1.3 $0.9
2022 2022 1 20232023 2 20242024 3 20252025 4 Thereafter5
Thereafter
▪ Repaying debt to optimize capital structure
Quality Growth Through
▪ Organic growth in maritime or energy
Disciplined Capital Allocation
▪ Inorganic growth in existing or new verticals
Transformative growth through prudent capital allocation
Atlas Corp. 50
30/03/2022CFO 2022 Priorities
▪ Continuous optimization of capital structure
▪ Maximize shareholder value through disciplined capital allocation
▪ Drive expansion and evolution of APR business model
▪ Proactive risk management
Delivering consistent stakeholder value across all aspects of Atlas
Atlas Corp. 51
30/03/2022Atlas Long-Term Guidance
(US$ millions except shares in thousands and per share amounts)
Guidance Metrics1 2021 Actual 2022 Guidance 2023 Guidance 2024 Guidance 2025 Guidance
2
Revenue 1,647 1,690 1,891 2,241 2,411
Operating Expense 340 359 407 492 537
General and Administrative Expense 91 95 101 104 108
Operating Lease Expense 146 124 116 58 16
Adjusted EBITDA*,3 1,116 1,112 1,267 1,587 1,750
Adjusted Net Earnings Attributable to
422 450 440 540 595
Common Shareholders*,3,4,5
Adjusted Diluted EPS* 1.59 1.56 1.49 1.82 2.00
Interest Expense 6 224 242 288 421 450
Diluted Shares Outstanding 266 289 295 296 297
Adjusted EBITDA*,3
CAGR = 17.0%
CAGR = 22.3% CAGR = 16.4%
$1.75bn
$1.12bn $1.11bn
$0.50bn
2017 2021 2022 2025
Predictable, long-term double-digit Adjusted EBITDA growth underpinned by high quality cash flows
Atlas Corp. * See Appendix for reconciliations to the most directly comparable GAAP measure 52
30/03/2022Closing Remarks Atlas Corp. 53 30/03/2022
Bing Chen: President & Chief Executive Officer, Atlas & Seaspan
▪ Appointed President & CEO of Seaspan in January 2018 and
Atlas in February 2020
▪ Over 25 years of executive roles in banking, leasing,
commodities, and transportation across Asia, Europe, and
North America
▪ Previously CEO of BNP Paribas (China) Ltd.
Bing Chen
President & Chief Executive Officer,
Atlas & Seaspan
Atlas Corp. 54
30/03/2022Closing Remarks
▪ Resilient and differentiated business model proven through-cycle
▪ Consistent operational excellence across all aspects of Atlas
▪ Robust financial performance and disciplined capital allocation
▪ Quality growth delivering sustainable shareholder value
Built to Last!
Atlas Corp. 55
30/03/2022Q&A Session Atlas Corp. 56 30/03/2022
Appendix Atlas Corp. 57 30/03/2022
Adjusted EBITDA Reconciliation ($ millions) 2017 2018 2019 2020 Q4 • 2020 Q1 • 2021 Q2 • 2021 Q3 • 2021 Q4 • 2021 2021 Net earnings (loss) 175.2 278.9 439.1 192.6 (26.1) 97.6 66.0 94.6 142.3 400.5 Interest expense 116.4 212.1 218.9 191.6 45.9 46.8 54.6 50.0 45.7 197.1 Interest income (4.6) (4.2) (9.3) (5.0) (1.6) (0.5) (1.7) (0.6) (0.3) (3.1) Income tax expense - 0.7 1.2 16.6 4.1 6.7 1.6 0.1 24.6 33.0 Depreciation and amortization 199.9 245.8 254.3 353.9 89.3 87.3 90.8 106.6 82.0 366.7 Loss (gain) on sale (13.6) - - 0.2 0.7 (0.5) (0.4) (0.1) (15.4) (16.4) Loss (gain) on derivative instruments 12.6 (15.5) 35.1 35.5 1.5 (8.7) 1.7 0.2 (7.3) (14.0) Change in contingent consideration asset - - - (6.8) (4.0) 1.1 0.6 (3.9) 7.3 5.1 Losses on foreign currency repatriation - - - 18.7 7.2 6.0 3.2 1.4 3.3 13.8 Goodwill impairment - - - 117.9 117.9 - - - - - Other expenses 10.4 1.7 2.0 8.6 3.8 2.1 - 3.0 1.3 6.5 Income related to modification of time charters - - (227.0) - - - - - - - Loss on debt extinguishment - - - - - - 56.1 70.9 - 127.0 Adjusted EBITDA 496.3 719.3 714.3 923.8 238.7 237.9 272.5 322.2 283.5 1,116.2 Atlas Corp. 58 30/03/2022
Adjusted EBITDA Reconciliation (Segmented) ($ millions) Q4 • 2020 Q1 • 2021 Q2 • 2021 Q3 • 2021 Q4 • 2021 Containership Leasing Net earnings 89.2 106.6 41.6 60.1 178.7 Interest expense 41.5 42.7 50.3 45.0 40.8 Interest income (0.2) (0.1) (0.1) (0.1) - Income tax expense - 0.1 0.3 0.3 0.1 Depreciation and amortization 75.2 75.2 75.9 77.5 79.3 Loss (gain) on derivative instruments 1.5 (8.7) 1.7 0.2 (7.3) Other expenses (income) (0.5) 0.5 0.9 1.9 3.8 Loss on debt extinguishment - - 56.1 70.9 - Loss (gain) on sale - - - - (15.9) Adjusted EBITDA 206.7 216.3 226.7 255.8 279.5 Mobile Power Generation Net earnings (loss) (125.6) (8.9) 24.2 30.4 (29.1) Interest expense 5.4 5.1 5.0 5.1 5.0 Interest income (1.4) (0.4) (1.6) (0.5) (0.3) Income tax expense 4.1 6.6 1.3 (0.2) 24.5 Depreciation and amortization 14.1 12.1 14.9 29.1 2.7 Loss (gain) on sale 0.7 (0.5) (0.4) (0.1) 0.5 Losses on foreign currency repatriation 7.2 6.0 3.2 1.4 3.3 Goodwill impairment 117.9 - - - - Other expenses 3.1 1.3 (1.3) 0.8 (2.9) Adjusted EBITDA 25.5 21.3 45.3 66.0 3.7 Elimination and Other Net earnings (loss) 10.3 (0.1) 0.2 4.1 (7.3) Interest expense (1.0) (1.0) (0.7) (0.1) (0.1) Change in contingent consideration asset (4.0) 1.1 0.6 (3.9) 7.3 Other expenses 1.2 0.3 0.4 0.3 0.4 Adjusted EBITDA 6.5 0.3 0.5 0.4 0.3 Atlas Corp. 59 30/03/2022
Operating Net Debt to Adjusted EBITDA Reconciliation ($ millions except multiples) 2017 2021 Long-term debt 2,450.7 4,282.8 Other financing arrangements 638.9 1,339.8 Deferred financing fee 27.3 80.9 Total Borrowings 3,116.9 5,703.5 Debt discount and fair value adjustment – 5.1 Debt 3,116.9 5,708.6 Cash and cash equivalents (253.2) (288.6) Restricted cash (14.0) (38.2) Net Debt 2,849.7 5,381.8 Vessels under construction (146.4) (1,095.6) Operating Net Debt 2,703.3 4,286.2 Adjusted EBITDA (LTM)1 496.3 1,116.2 Operating Net Debt to LTM Adjusted EBITDA 5.4x 3.8x Atlas Corp. 60 30/03/2022
Adjusted Earnings Per Share Reconciliation
As Reported Recast
($ millions, except shares in thousands and per share amounts) 2017 2018 2019 2020 2021 2021
Net earnings (loss) 175.2 278.8 439.1 192.6 400.5 400.5
Preferred share dividends (64.5) (71.2) (71.1) (67.1) (65.1) (65.1)
Goodwill impairment - - - 117.9 - -
Loss on debt extinguishment - - - - 127.0 127.0
Loss (gain) on sale (13.6) - - - (16.4) -
Expenses related to customer bankruptcy 1.0 - - - - -
Gain on settlement of contract - (2.4) - - - -
Income related to modification of time charters - - (227.0) - - -
Unrealized change in fair value on derivative instruments - - - - - (40.6)
Adjusted Earnings 98.2 205.1 141.0 243.4 446.0 421.8
Weighted average number of shares, basic 117,524 154,848 214,499 241,502 246,300 246,300
Effect of dilutive securities:
Share-based compensation 81 91 471 541 2,433 2,433
Warrants - 3,129 - - - -
Fairfax warrants - - 4,902 3,096 10,647 10,647
Holdback shares - - - 5,375 5,572 5,572
Exchangeable note - - - - 902 902
1
Weighted average shares outstanding, diluted 117,605 158,068 219,872 250,514 265,854 265,854
Adjusted EPS, diluted 0.83 1.30 0.64 0.97 1.68 1.59
Atlas Corp. 61
30/03/2022End Notes [1/4]
Slide Footnote
1) Includes $5.9 billion of lease payments receivable from operating leases, $1.3 billion of gross minimum lease receivable from finance leases, as well as $10.8 billion
lease payments to be received from 67 undelivered vessels as of December 31, 2021, pro-forma 1 completed and 8 expected vessel sales and 18 vessels forward fixed in
8 Feb-22. Includes cash flows expected from signed lease agreements on undelivered vessels as of December 31, 2021, excludes purchase options, extension options,
higher lease rate options and profit-sharing components
1) Based on market closing price of $15.50 as of March 29, 2022, with 247.6 million shares outstanding as of February 1, 2022
2) Based on segmented contribution to Adjusted EBITDA for the twelve months trailing December 31, 2021
3) As of December 31, 2021, and pro‐forma for 67 undelivered newbuilds announced between Dec-20 to Sept-21 and 1 completed and 8 expected vessel sales
4) Alphaliner Monthly Monitor February 2022 – on a TEU basis, based on fully-delivered Seaspan fleet and fully-delivered leased cellular fleet
5) Includes $5.9 billion of lease payments receivable from operating leases, $1.3 billion of gross minimum lease receivable from finance leases, as well as $10.8 billion
9 lease payments to be received from 67 undelivered vessels as of December 31, 2021, pro-forma 1 completed and 8 expected vessel sales and 18 vessels forward fixed in
Feb-22. Includes cash flows expected from signed lease agreements on undelivered vessels as of December 31, 2021, excludes purchase options, extension options,
higher lease rate options and profit-sharing components
6) As of December 31, 2021
7) APR gross contracted cash flow includes $0.2 billion of lease payments receivable from operating leases
1) On a TEU-weighted basis, as of December 31, 2021, and pro‐forma for 67 undelivered newbuilds announced between Dec-20 to Sept-21 and 1 completed and 8
10 expected vessel sales
1) On a TEU-weighted basis, as of December 31, 2021, and pro‐forma for 67 undelivered newbuilds announced between Dec-20 to Sept-21 and 1 completed and 8
11 expected vessel sales
1) Includes $5.9 billion of lease payments receivable from operating leases, $1.3 billion of gross minimum lease receivable from finance leases, as well as $10.8 billion
lease payments to be received from 67 undelivered vessels as of December 31, 2021, pro-forma 1 completed and 8 expected vessel sales and 18 vessels forward fixed in
Feb-22. Includes cash flows expected from signed lease agreements on undelivered vessels as of December 31, 2021, excludes purchase options, extension options,
higher lease rate options and profit-sharing components
2) Total Borrowings represents long-term debt and other financing arrangements, excluding deferred financing fees. Operating borrowings represents Total Borrowings
12 less amounts related to vessels under construction. Net Debt represents Total Borrowings before debt discount and fair value adjustments, net of cash and cash
equivalents and restricted cash. Operating Net Debt represents Net Debt less amounts related to vessels under construction
3) Closing stock price on each respective date
4) Total shareholder return from May 31, 2017, to March 29, 2022, including dividends received and reinvested into each security at market price at time of distribution
(Source: Bloomberg)
13 1) Reflects highest Seaspan corporate rating during each respective year
Atlas Corp. 62
30/03/2022End Notes [2/4]
Slide Footnote
1) Includes $11.4 billion of aggregate lease payments from 70 vessel newbuilds announced between Dec-20 to Sept-21; includes cash flows expected from signed lease
16 agreements on undelivered vessels, excludes purchase options, extension options, higher lease rate options and profit-sharing components
1) Alphaliner Monthly Monitor – February 2022
17 2) Chart of top 20 containership lessors includes current vessels and vessels on order
3) As of December 31, 2021, and pro‐forma for 67 undelivered newbuilds announced between Dec-20 to Sept-21 and 1 completed and 8 expected vessel sales
1) Based on data provided in each company’s Q4 2021 earnings release. Gross contracted cash flow/backlog, TEU, charter duration, and fleet age is on a fully-delivered
fleet basis
2) As of December 31, 2021, and pro‐forma for 67 undelivered newbuilds announced between Dec-20 to Sept-21 and 1 completed and 8 expected vessel sales
3) Based on market closing prices as of March 29, 2022; ATCO $15.50 with 247.6 million shares outstanding, CMRE $17.28 with 123.1 million shares outstanding, DAC
$104.97 with 20.7 million shares outstanding
4) Consolidated revenue of each company
18 5) Includes $5.9 billion of lease payments receivable from operating leases, $1.3 billion of gross minimum lease receivable from finance leases, as well as $10.8 billion
lease payments to be received from 67 undelivered vessels as of December 31, 2021, pro-forma 1 completed and 8 expected vessel sales and 18 vessels forward fixed in
Feb-22. Includes cash flows expected from signed lease agreements on undelivered vessels as of December 31, 2021, excludes purchase options, extension options,
higher lease rate options and profit-sharing components
6) Costamare contracted revenue as of March 9, 2022, Danaos contracted revenue as of December 31, 2021
7) On a TEU-weighted basis
1) Source: ZE 2021 annual report
21 2) Bloomberg - March 2022
1) Clarksons Research – Q1 2022 report
27 2) Alphaliner Monthly Monitor – February 2022
3) Clarksons Research – February 2022
1) As of December 31, 2021, pro‐forma for 67 undelivered newbuilds announced between Dec-20 to Sept-21 and 1 completed and 8 expected vessel sales and 18 vessels
29 forward fixed in Feb-22
2) On a TEU-weighted basis
30 1) Alphaliner Monthly Monitor – February 2022
1) Reflects financial results from January 1, 2020, to December 31, 2020
2) Reflects financial results from February 29, 2020, to December 31, 2020
42 3) Revenue includes impact from indemnification claim under acquisition agreement of approximately $42 million. 2021 figures reflect an $11.4 million allocation of
plant related costs moved from G&A Expense to Operating Expenses; the same method of allocation is expected to be used in 2022 and onwards and the change in the
method does not result in any change to Adjusted EBITDA
Atlas Corp. 63
30/03/2022End Notes [3/4]
Slide Footnote
1) Includes $5.9 billion of lease payments receivable from operating leases, $1.3 billion of gross minimum lease receivable from finance leases, as well as $10.8 billion
lease payments to be received from 67 undelivered vessels as of December 31, 2021, pro-forma 1 completed and 8 expected vessel sales and 18 vessels forward fixed in
Feb-22. Includes cash flows expected from signed lease agreements on undelivered vessels as of December 31, 2021, excludes purchase options, extension options,
46 higher lease rate options and profit-sharing components
2) Liquidity includes cash and cash equivalents and undrawn committed revolving credit facilities, excludes restricted cash and committed amounts related to newbuild
vessel financings
1) Based on market closing price of $15.50 as of March 29, 2022, with 247.6 million shares outstanding as of February 1, 2022
47 2) Capital leases are disclosed as “Other Financing Arrangements” within Atlas’ consolidated financials
1) Last twelve months as of the respective dates
2) Net book value as of the respective dates
3) Total Borrowings represents long-term debt and other financing arrangements, excluding deferred financing fees
4) Operating borrowings represents Total Borrowings less amounts related to vessels under construction. Net Debt represents Total Borrowings before debt discount and
48 fair value adjustments, net of cash and cash equivalents and restricted cash. Operating Net Debt represents Net Debt less amounts related to vessels under
construction
5) Includes capitalized property, plant, and equipment on existing fleet
6) Represents combination of ‘Repayments of long-term debt and other financing arrangements’, ‘Repayment of Fairfax Notes’, and ‘Redemption of preferred shares’
located within cash flow from financing within Atlas’ 2021 20-F report filed on March 24, 2022
1) Includes 1 completed vessel sale in 2021, and 1 completed and 8 expected vessel sales in 2022
49 2) As of December 31, 2021, and pro‐forma for 67 undelivered newbuilds announced between Dec-20 to Sept-21 and inclusion of 1 completed vessel sale in 2021
3) On a TEU-weighted basis
1) Includes $5.9 billion of lease payments receivable from operating leases, $1.3 billion of gross minimum lease receivable from finance leases, as well as $10.8 billion
lease payments to be received from 67 undelivered vessels as of December 31, 2021, pro-forma 1 completed and 8 expected vessel sales and 18 vessels forward fixed in
50 Feb-22. Includes cash flows expected from signed lease agreements on undelivered vessels as of December 31, 2021, excludes purchase options, extension options,
higher lease rate options and profit-sharing components. Does not include 2021 gross contracted cash flow of 3 newbuilds delivered in Q3 and Q4 of 2021
Atlas Corp. 64
30/03/2022End Notes [4/4]
Slide Footnote
1) Guidance includes impact from 1 completed and 8 expected vessel sales in 2022
2) The classification of a lease will be determined at the commencement date of the lease. Sales type lease was assumed for the bareboat charters arranged for the
newbuilds
3) For guidance, APR’s Adjusted EBITDA and Adjusted Net Earnings Attributable to Common Shareholders contributions to Atlas are forecasted to be $99 million and
$10 million, respectively (consistent with 2022 revised guidance)
4) Adjusted Net Earnings Attributable to Common Shareholders also includes gains on sale of $16.4 million primarily relating to 1 completed vessel sale in 2021 actual,
and $60 million relating to 1 completed and 8 expected vessel sales in 2022 guidance. Reported Adjusted Earnings for 2021 excludes gains on sale. Please refer to the
52 2021 recast reconciliation in the appendix of Adjusted Net Earnings and Adjusted EPS measures shown here
5) Preferred share dividends are deducted to arrive at Adjusted Net Earnings Attributable to Common Shareholders along with other adjustments for diluted earnings
per share calculation purposes. Interest Expense is included, and impact from the unrealized change in fair value of derivative instruments is excluded from the
guidance and actuals for this comparison. Reported Adjusted Net Earnings for 2021 includes an unrealized change in fair value gain on derivative instruments of $40.6
million, explaining why $422 million is lower than what Atlas reported in its Q4 2021 earnings release. Please refer to the 2021 recast reconciliation in the appendix of
Adjusted Net Earnings and Adjusted EPS measures shown here
6) Reflects the interest expenses and realized change in fair value of derivative instruments; Average LIBOR assumed for 2022, 2023, 2024 and 2025 is 1.37%, 1.91%,
1.82%, and 1.74% respectively
60 1) Last twelve months as of each respective date
61 1) Exchangeable notes are excluded in the computation of diluted EPS for Q4 2020 as their effects are anti-Dilutive
Atlas Corp. 65
30/03/2022You can also read
