Maritime Resources Asset Management
Our Name - Our Inspiration Car a vel [ ] noun a small, highly-manoeuvrable Spanish or Portuguese sailing ship of the 15th-17th centuries, that is synonymous with Renaissance-era explorers, pioneering new trade routes and early globalization.
Pioneering new markets The development around the year 1450 of the caravel a new trading vessel that could sail into the wind launched a wave of exploration, which we know today as the Age of Discovery. This revolutionary ship was used by pioneering explorers such as Christopher Columbus, Vasco da Gama and Ferdinand Magellan on their voyages, discovering new lands and establishing sea routes to reach them. The caravel played an important role in the development of global sea trade, bringing different civilizations closer and ushering in a new era of economic activity, prosperity and development around the world. Today, as global trade patterns are again being transformed by the shift of economic power towards Asia, the Caravel Group seeks to navigate the tides of change with the speed, nimbleness and flexibility of its namesake focusing on the world s high-growth markets with the same adventurous spirit of discovery that drove the early explorers. 01
Mission and Vision 02
Our mission To build a profitable and sustainable business that brings long-term value to all our stakeholders, both external and internal. Providing high quality, reliable and cost-effective value-added services to clients in our three chosen fields making us their partner of choice. We operate as a socially and environmentally responsible organization, and strive to manage our businesses with these values in mind. Our vision To be a company that best understands and provides solutions to the needs of the maritime, metallurgical and energy industries within the businesses and geographies in which we operate. 03
Structured for Success Through our three primary operating units, we provide value-added solutions in distinct but complementary areas, while focusing on identifying and capitalizing on selected opportunities within each. 04
Structured for success The Caravel Group Limited, headquartered in Hong Kong, is a diversified global conglomerate focused on the trading and logistics of dry bulk raw materials, investment management, and strategic asset ownership. Through our three primary operating units, we provide value-added solutions in distinct but complementary areas, while focusing on identifying and capitalizing on selected opportunities within each. Caravel Maritime Fleet Management Limited third-party ship management Caravel Shipping in-house and third-party dry bulk commercial and chartering services Maritime asset ownership Caravel Resources Trading of industrial dry bulk commodities Focus on raw materials for steel making and power generation Main products traded are iron ore, carbons and minor bulks, such as nickel, chrome and manganese ores Caravel Asset Management Direct investments in global liquid asset classes Alternative investments such as private equity and hedge funds Focus on risk management to sustain returns through market volatility 05
What Makes Us Different? What makes us different? The Caravel Group has a range of distinctive qualities that set us apart from and ahead of others in the same market space. Our start-up energy combined with a wealth of experience The Caravel Group is a new, dynamic, energetic company yet one with a wealth of combined knowledge and experience and underpinned by a strong balance sheet. Our integrity and transparency Caravel s dedication to giving our clients world-class service is expressed in everything we do. We stand apart through our ability to build and maintain enduring partnerships with clients placing our long-term relationships with them ahead of short-term advantage. We aim to give every counterparty assured performance in terms of reliability, trust, efficiency and quality without compromising on our business ethics. Simply put, we pride ourselves on our business practices. 06
Our integrated solutions across three business units Our business strategy is centred on working with our clients as strategic partners globally to create and execute mutually beneficial solutions. Our experience and resources across our primary business areas of maritime, resources and asset management give us the ability to offer one-stop end-to-end solutions within the niche categories on which we focus and in which we excel. Our clients benefit from the synergy between our various operations along the supply chain origination, handling the logistics and where appropriate, offering tools to manage the financial needs and risks of these transactions, enabling us to offer complete and costeffective solutions. Our experience and resources across our primary business areas of maritime, resources and asset management give us the ability to offer one-stop end-to-end solutions within the niche categories on which we focus and in which we excel. 07
What Makes Us Different? 08
Our agility, pioneering spirit and response time Like our namesake vessel, we have the flexibility to adapt and respond quickly to dynamic market changes. For the Caravel Group, agility is a key principle underlying every activity. Our lean entrepreneurial team minimizes complexity, and we seek innovative ways to deliver streamlined services with speed and efficiency challenging the accepted wisdom and constantly pushing the boundaries of what is possible. Our employees our driving force Caravel s workforce is an integrated team of professionals united by a shared commitment to the Group s values of integrity, excellence and client focus. Together, they pursue Caravel s vision of creating sustainable value for both shareholders and employees through a firm dedication to serving the needs of counterparties effectively. We believe that our people are our biggest asset and therefore we implement best practices in recruitment, training and development and employee retention. Our global scale with an Asian focus With a global presence and a strong balance sheet, the Caravel Group is ready to serve clients on any scale, wherever they are located. Our Hong Kong base and our presence in strategic locations give us a focus and insight into the world s fastest-growing economies. 09
Our Team A young company with abundant industry and regional experience The Caravel Group has recruited a talented management team with an exceptional combined track record coupled with a can do attitude. They bring with them a wide-ranging network of industry relationships and the trust they have earned over the years from numerous business partnerships. We leverage the collective experience, relationships and knowledge of our teams into a seamless and collaborative organization with the ability to manage our risks efficiently. 10
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Spanning Spanning thethe World World The TheCaravel CaravelGroup Groupisisheadquartered headquarteredinin Hong HongKong, Kong,atatthe theheart heartofofperhaps perhapsthe the most most economically economically dynamic dynamic region region onon Earth. Earth. 12 12
Spanning Spanning thethe world world The Caravel The Caravel Group Group is headquartered is headquartered in Hong in Hong Kong,Kong, at theat the heartheart of perhaps of perhaps the most the most economically economically dynamic dynamic region region on Earth. on Earth. This This supports supports our business our business focusfocus on expansion on expansion withinwithin the world s the world s fastest-growing fastest-growing markets. markets. In addition In addition to Hong to Hong Kong,Kong, the Group the Group and its andsubsidiaries its subsidiaries operate operate out ofout offices of offices in China, in China, Cyprus, Cyprus, India,India, Indonesia, Indonesia, the Philippines, the Philippines, Singapore, Singapore, Switzerland, Switzerland, the United the United Kingdom Kingdom and the andunited the United States, States, enabling enabling us tousprovide to provide clients clients anywhere anywhere in theinworld the world with with real-time real-time coverage coverage in all in key all key markets markets at allat times. all times. 13 13
Caravel Maritime 14
Our goal is to be the go-to company of choice for the dry bulk logistics solutions for our partners. Caravel Maritime incorporates all of the Group s shipping activities, namely ship management through Fleet Management Limited and commercial and chartering operations under the banner of Caravel Shipping, as well as vessel ownership through our wholly-owned subsidiaries. Optimizing vessel asset value and fleet efficiency Fleet Management Limited, one of the world s largest independent third-party ship management firms with a 20-year history, over 10,000 qualified seafarers and close to 350 vessels under management, is a significant part of our maritime business. Headquartered in Hong Kong and supported by offices globally, Fleet Management is dedicated to maintaining the asset value of our clients vessels as economically as possible. We ensure the vessels under our management are kept in optimal condition in terms of mechanics, technology and crew management and in a state of operational readiness and compliance. Fleet Management manages a range of vessels including bulk carriers, general cargo carriers, oil tankers, gas carriers, and chemical tankers, ranging from 20,000 to 300,000 DWT with many being young and energyefficient with an age profile below the industry average. For the last 20 years, Fleet Management has pioneered many of the crewing, safety, and technical standards that have become benchmarks in the industry. We understand that to be one of the world s best fleet management companies, we need to be continually innovating to stay ahead of the curve. That is why we continue to invest in technology and today, through our proprietary PARIS software, we are able to provide ship owners with an online real-time dashboard showing every facet of the vessel s profitability an accomplishment we believe no other fleet manager has achieved thus far. Fleet Management offers a comprehensive range of ship management services that we tailor to each vessel owner s needs. These include technical and engineering services, crew training and management, new building supervision, insurance, independent surveys, superintendence, audits and commercial management. With a strong compliance team internationally, we observe the industry s highest standards for classification, flag state, and local environmental regulation. Standards and norms include ISO 9001, ISO 14001, OHSAS 18001 and ISM code compliance certificates from DNV. As a result of this, we have one of the best safety records in the industry and we lead the field in maritime pollution protection technology. This award-winning organization is complemented and supported by Caravel Shipping, which provides in-house and third-party dry bulk commercial and chartering services to vessel owners and cargo sources globally. 15
Caravel Maritime Industry-leading dry bulk logistics solutions Caravel Shipping specializes in providing in-house and third-party commercial and chartering services for the transport of dry bulk cargo. Our scale, experience and expertise place us among the world s leading dry bulk operators. Our business is focused on all major segments of the dry bulk sector where we believe there exist clear and tangible interrelationships, whereby through agility and pre-emptive timing we are able to offer our clients enhanced flexibility and greater value added. We have the expertise to manage all kinds of dry bulk cargoes at competitive rates. Cargoes, whether in-house or from third parties, are matched and carried on vessels that we operate through our diversified network across the globe. This system enhances our flexibility, enabling us to reschedule and align with shipment periods around the world. We are, therefore, able to provide more competitive freight rates for our clients, while maintaining our high level of performance and reliability. Furthermore, Caravel Shipping seamlessly manages all pre and post-fixture operations, affording clients the latitude to focus on their core areas with the knowledge that their logistics requirements are being handled professionally. Our team includes an experienced network of Port Captains and agents who are available to provide workable economic solutions to support the needs of our clients at every port, not only while our vessels are in port, but even well after they have sailed. Our one-stop solution across commercial dry bulk freight requirements is truly an industry-leader. Our goal is to be the go-to company of choice for dry bulk logistics solutions for our partners. Today, as in the day of Christopher Columbus, we live in a world where the only constant is change. The global economic landscape impacted by geo-political events affects trade and the shipping industry. As governments and business leaders seek to reduce costs and balance the books, only the most efficient organizations will be able to maintain the highest standards and flourish. Our experience, agility, and understanding of the fundamentals behind the industry enable us to weather and navigate any situation efficiently and this is why a growing number of companies are choosing Caravel as their partner. 16
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Caravel Resources We truly believe that each one of us needs to be aware of and play a part in looking after the environment. Sourcing and delivering excellence in iron ore, carbons and minor bulks Caravel Resources is a leading provider of solutions across the industrial dry bulk value chain. Our focus is on the trading of industrial dry bulk raw materials, principally those used in the steel and energy industries iron ore, carbons and minor bulks. Caravel Resources provides a seamless supply chain utilizing the synergies that our three business divisions inevitably provide. This offers all counterparties efficient and cost-effective solutions for their needs, which can be further tailored to the individual requirements of producers or consumers. Caravel Resources has three wholly owned subsidiaries: Caravel Metallurgical, which handles iron ore Caravel Ores & Alloys, which is engaged in the trade of minor bulks, specifically nickel, chrome and manganese ores We source from origins that offer geographical as well as cost benefits for the consumers that we serve. Our origination expertise allows us to source a diverse range of products for each area of our business from mines around the globe. Whilst our clients are primarily in the broader steel industry and power generation sectors, we also serve numerous other industries with requirements for energy generation, including cement plants, chemical plants, sugar and textile mills. Caravel Carbons, which deals in coal (both thermal and metallurgical), metallurgical coke and anthracite 18
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Caravel Resources 20
Efficiency and precision throughout the supply chain Each transaction and trade we undertake and manage is complex, requiring precision alignment throughout the supply chain and dedicated personal service. We add value drawing from coordinated support across the Group, which allows us to offer our counterparties exceptional efficiency, logistical expertise and strong risk management. This gives our counterparties the freedom to focus on their core businesses and optimize their available resources. Although Caravel Resources is a new business entity, it is built upon a strong, established network of trade partnerships spanning many decades. With our pioneering spirit and agility, we are continually forging new relationships, and opening up new trading partnerships. Where required we offer our services for price risk management as well as structured finance for the long-term benefit of all parties in the supply chain. At Caravel Resources we are passionate about and deeply committed to environmental sustainability. We truly believe that each one of us needs to be aware of and play a part in looking after the environment from which we personally, and as a business, draw sustenance. Our goal is to serve as a role model within our sphere of influence, balancing our profitability and ambitions as a company whilst pursuing an aggressively dynamic environmental policy. We support numerous environmental initiatives and are investing resources in carbon offsetting and creating sustainable resources. 21
Caravel Asset Management 22
Our long-term outlook and conservative risk management model is at the core of our investment strategy. A conservative investment strategy that underpins the strength of the group Caravel Asset Management is an institutional investment manager, with a primary focus on direct investments in global liquid markets including public equity and credit, across all industries. Caravel Asset Management also invests directly into alternative investments mainly private equity and hedge funds to diversify risks and sustain long-term returns for the Group. The investment holdings of Caravel Asset Management are held with affiliates of the Caravel Group, giving strength to our balance sheet and underpinning the stability of the entire Group. Due to the tri-fold multi-disciplinary nature of the Group as a whole, Caravel Asset Management has unique intelligence and insight which allows it to identify and execute transformative transaction opportunities. These support the Group particularly in terms of managing financial risks and achieving synergy across the business as a whole. Caravel Asset Management comprises an experienced and international team focused on three key areas asset allocation, risk management and deal-focused investment analysis who work closely together to deliver sustainable returns for the Group. Caravel Asset Management utilizes an open architecture platform which allows us to partner and work closely with external institutions to ensure that we are able to access investment opportunities globally and benefit from specialist insights and analysis. We focus on the use of cutting-edge technology, especially in our risk monitoring and analysis process, to ensure that our current and future portfolio risk is actively managed and hedged, which is a crucial objective for our entire investment team. Our long-term outlook and conservative risk management model is at the core of our investment strategy as we continue to pioneer new markets and trade routes, we will continue to invest in building these for the future. 23
The Caravel Group Limited 21st Floor, Central Plaza, 18 Harbour Road, Wanchai, Hong Kong T +852 2100 2000 F +852 2100 2100 www.caravel-group.com