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Presentation Regarding:

Breaking the Cycle: What the Shipping Industry Can


Learn From Container Leasing
June 20, 2013
Learn From Container Leasing
26
th
Annual Marine Money Week
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BofAML Has Substantial Experience in Container Leasing
Common Stock Block Trade
$42.90 per share
March 2013
$173 MM
Common Stock Add-On
September 2012
$272 MM
$31.50 per share
Equity
Common Stock Add-On
March 2011
$218 MM
$36.00 per share
Common Stock Block Trade
$36.42 per share
February 2012
$109 MM
1
Structuring Lead Manager
Initial Principal Balance
Class A: 2.85% Notes (2.83% Yield)
Class B: 4.00% Notes (3.96% Yield)
TAL Advantage V LLC
Series 2013-1
Container Lease
March 2013
$272 MM
Has Been Sold to
Financial advisor to SeaCube
April 2013
$1.7 BN
Structuring Lead Manager
CAI Funding II Limited
3.47% $171MM Inaugural
20121 ABS Yield of 3.50%
October 2012
$171 MM
Joint Lead Manager
4.21% $400MM ABS Offering
Fixed Yield of 4.25%
Textainer Marine Containers
Limited
Series 2012-1
April 2012
$400 MM
Sole Manager
Common Stock Block Trade
4,036,796 Shares
Lead Left Bookrunner
Common Stock Add-On
Offering
8,634,921 Shares
Sole Financial Advisor to Triton
May 2011
Undisclosed
Has Been Sold to
And
Advisory ABS
Lead Left Bookrunner
Common Stock Add-On
Offering
6,055,000 Shares
Sole Manager
Common Stock Block Trade
3,000,000 Shares
Container Boxes Vs. Other Leased Asset Classes
Railcar Aircraft Containerships Container Boxes
Average Cost of Assets ~$90,000
Wide Body: $200mm
(1)
Narrow Body: $80mm
(2)
3,500 TEU: ~$50mm
10,000 TEU: ~$100mm
20 Dry Van: ~$2,500
Asset Purchase Lead Time 1 2 Years ~ 3 Years 2 - 3 Years ~ 3 Months
Residual Value
~45 year useful life with
pegged residual value
($8,000 - $10,000)
~25 year useful life with
15% residual value
Low residual b/c of
pressurized environment
~25 year useful life
12 15 years with 40%
residual value
Rail, Leasing, Shipping
2
____________________
Source: Company filings, Clarksons, Oliver Wyman research, AVITAS and Wall Street Research.
(1) Represents list price of a new A330. (2) Represents average list price of a new A319 and A320.
Customer Base
Rail, Leasing, Shipping
Companies
Global Airlines Global Container Liners Global Container Liners
Competition
A few large players with
many smaller players
Market saturated: dozens
of competing lessors
driving down rates
Numerous lessors
KGs out of market
Limited number of
competing lessors
OEM
Limited number of
producers
Potential overproduction
at present
Numerous shipyards in
China, Korea, and Asia
Only two major
producers (Singamas,
CIMC)
Method of Debt Financing
HG Bonds
Asset Based Financing
(Influenced by company
size and credit quality)
Asset Based Financing
(Securitization / Term
Loans)
Public Bonds
Primarily Bank Debt
Asset Based Financing
Private Placement Bonds
Bank Debt
15%
3%
3%
13%
Competitive Landscape
Other
DFIC
Gold
Public Container Leasing Companies Top 10 Lessors 2012 Market Share
(1)
Fleet Size
('000s TEU)
(Owned / Managed) 73% / 27% 99% / 1% 72% / 28%
2,809 2,000 1,091
15%
12%
10%
9%
8%
6%
6%
3
____________________
(1) Source: Harrison Consulting. Represents market share of total fleet by cost equivalent unit (CEU) as of June 30, 2012.
(2) Company filings and Factset as of June 19, 2013.
Average Utilization 95.4% 97.7% 92.2%
Current Market
Capitalization
(2)
$2,165 $1,435 $599
Valuation
('13E / '14E P / E)
(2)
9.9x / 8.9x 9.1x / 8.7x 7.5x / 6.4x
8%
9%
43%
Top 5 Lessors: Market Share (As Measured By TEUs)
Niche Industry with Structural Barriers to Entry
Other
34%
1998
Today
(1)
15%
39%
Other
42%
17%
7%
17%
43%
4
Top 5 lessors have remained the same for over a decade
____________________
Source: Container International. Harrison Consulting.
(1) Represents market share of total fleet by cost equivalent unit (CEU) as of June 30, 2012.
15%
12%
10%
9%
Attractive & Stable Return on Equity
Returns and Earnings Have Been Relatively Strong and
Stable Through the Cycle
23%
20.0%
30.0%
40.0%
____________________
Source: Company filings and Factset as of June 19, 2013.
Note: ROE is calculated as net income divided by the average shareholders equity.
(1) Container Lesssors include TAL International, Textainer Group Holdings, and CAI International.
(2) Containership Lessors includes Seaspan and Costamare.
(3) Aircraft Lessors includes AerCap Holdings and Aircastle and AirLease.
(4) Equipment Leasing includes Ryder, GATX Corp, Trinity, Mobile Mini and Greenbrier Companies Inc.
5
Equipment Leasing
(4)
Aircraft Lessors
(3)
Container Lessors
(1)
Containership Lessors
(2)
18%
5%
12%
2006 2007 2008 2009 2010 2011 2012
(10.0%)
0.0%
10.0%
20.0%
250%
300%
350%
400%
Box Lessors Were the First to Recover Out of the Downturn
on the Back of Improving Fundamentals
380%
284%
Box Lessors Led the Recovery Beginning in Late 2009
0%
50%
100%
150%
200%
Jan-09 Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Nov-10 Mar-11
Box Leasing Aircraft Leasing Equipment Leasing Containership Leasing S&P 500
6
141%
198%
121%
____________________
Source: Wall Street research and Clarksons website.
(1) Container Leasing includes CAI International, TAL International, Textainer Group Holdings and SeaCube.
(2) Aircraft Lessors includes FLY Leasing, Aircastle, AirLease and AerCap.
(3) Equipment Leasing includes Ryder, Greenbrier, Mobile Mini, Trinity and GATX Corp.
(4) Containership leasing includes Costamare, Diana Containerships, Danaos, Box Ships, and Seaspan.
(2) (3)
(4)
(1)
15%
20%
25%
Return On Equity Price / Book
Container Lessors Are Undervalued
Price / Book
2013E P/E
Container Lessors
(1)
15.9x
15.1x
12.0x
16.0x
20.0x
3.0x
4.0x
0%
5%
10%
15%
5.0x 10.0x 15.0x 20.0x
7
____________________
Source: Company filings and Factset as of June 19, 2013.
(1) Container Lesssors include TAL International, Textainer Group Holdings, and CAI International.
(2) Containership Lessors includes Seaspan and Danaos.
(3) Aircraft Lessors includes AerCap Holdings, Aircastle and AirLease.
(4) Equipment Leasing includes Ryder, GATX Corp, Trinity, Mobile Mini and Greenbrier Companies Inc.
Equipment Leasing
(4)
Aircraft Lessors
(3)
Container Lessors
(1)
Containership Lessors
(2)
Containership Lessors
(2)
Aircraft Lessors
(3)
Equipment Leasing
(4)
2013E P/E
5
-
Y
e
a
r

A
v
g
.

R
O
E
2.0x
1.1x
1.0x
1.9x
8.8x
11.0x
0.0x
4.0x
8.0x
12.0x
0.0x
1.0x
2.0x
Container Containership Aircraf t Equipment
Significant M&A Activity
There Has Been Significant Recent M&A Activity
Asset Buyer Date

Ontario Teachers Pension Plan January 2013

HNA / Bravia Capital August 2011

Vestar Capital / Warburg Pincus February 2011

Kelso July 2010
8
While Traditional KG Owners Have Essentially Reduced their Activities
____________________
Source: Konig & Cie; Marine Money, September 2012.
2,454
3,261
3,534
3,995
6,113
6,265
7,073
5,871
7,391
5,743
1,576
1,694
986
0
2000
4000
6000
8000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Equity Debt
($ in Millions)
Kelso July 2010

Strong Appetite for Alternative ABS
Container ABS New Issues Post Crisis
Most of the major container lessors utilize the term ABS markets as a primary funding source for cap ex with over ~$2.5BN of container
term ABS issued in 2012
TAL IV 2010-1 Jun-10 $197MM 5.50% TAL
TAL IV 2010-1 Oct-10 $203MM 4.30% TAL
TAL IV 2011-1 Jan-11 $174MM 4.60% TAL
CLIF 2011-1 Mar-11 $230MM 4.50% Seacube
TAL IV 2011-2 May-11 $235MM 4.31% TAL
TMCL 2011-1 Jun-11 $400MM 4.70% Textainer
CLIF 2011-2 Oct-11 $250MM 5.00% Seacube
9
CLIF 2011-2 Oct-11 $250MM 5.00% Seacube
CRNN 2011-1 Nov-11 $200MM 5.00% Cronos
TMCL 2012-1 Apr-12 $400MM 4.25% Textainer
TAL 2012-1 May-12 $250MM 3.90% TAL
TCF 2012-1 May-12 $500MM 4.25% Triton
CRNN 2012-1 May-12 $250MM 4.25% Cronos
CLIF 2012-1 Jun-12 $225MM 4.25% Seacube
SEACO 2012-1 Jul-12 $250MM 4.15% Seaco
CRNN 2012-2 Sep-12 $300MM 3.85% Cronos
BCF 2012-1 Sep-12 $250MM 3.75% Beacon
CAI 2012-1 Oct-12 $171MM 3.50% CAI
TAL 2013-1 Feb-13 $272MM 2.85% Sr. & 4.00% Jr. TAL
CLIF 2013-1 Mar-13 $250MM 2.85% SeaCube
CAI 2013-1 Mar-13 $229MM 3.38% CAI
CRNN 2013-1 Apr-13 $300MM 3.10% Cronos
SEACO 2012-1 Apr-13 $400MM 3.00% Seaco
CLIF 2013-2 Jun-13 $300MM 3.25% SeaCube