Company Presentation December 2018
Forward-Looking Statements This presentation contains certain “forward - looking statements” (as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended). All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including, without limitation, future operating or financial results and future revenues and expenses, future, pending or recent acquisitions, general market conditions and shipping industry trends, the financial condition and liquidity of the Company, cash available for dividend payments, future capital expenditures and dry-docking costs and newbuild vessels and expected delivery dates, are forward-looking statements. Although the Company believes that its expectations stated in this presentation are based on reasonable assumptions, actual results may differ from those projected in the forward-looking statements. Important factors that, in our view, could cause actual results to differ materially from the future results discussed in the forward-looking statements include, without limitation, global supply and demand for containerships, the financial stability of the Company’s counterparties and charterers, global economic weakness, disruptions in the world financial markets, the loss of one or more customers, a decrease in the level of Chinese exports, the availability of debt financing, our ability to expand through newbuildings and secondhand acquisitions, risks associated with the operation of the Framework Agreement with our joint venture partner, delay in the delivery of newbuildings, rising crew and fuel costs, increases in capital expenditure requirements or operating costs, a decrease in containership values, increased competition in the industry, re-chartering risk, fluctuations in interest rates, actions taken by governmental and regulatory authorities, potential liability for future litigation and environmental liabilities, the availability of adequate insurance coverage, potential disruption of shipping routes due to accidents or political conditions and the other factors discussed in the Company’s Annual Report on Form 20 -F (File No. 001-34934) under the caption “Risk Factors”. All forward - looking statements reflect management’s current views with respect to certain future events, and the Company expressly disclaims any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in the Company’s views or expectations, or otherwise. 2
Costamare Snapshot One of the largest independent owners of containerships / Fleet of 79 vessels (incl. 5 newbuilds). 44 years of experience in shipping and a dedicated containership owner since 1992. YTD total acquisitions and newbuild orders of ca. $900m. Strong track record of uninterrupted profitability. Contracted cash flows of $2.4Bn coming from first class charterers (1) . Prudent balance sheet management adapting to the cyclicality of the shipping sector. Dividend Yield of 7.5% (2) . Strong sponsor support (ca. 55% ownership) Participation in the Dividend Reinvestment Plan (“DRIP”) since its inception (July 2016), with $64m reinvested in Costamare to date. Note 1. As of November 30, 2018. 2. As of November 30, 2018 based on a share price of $5.30 and quarterly dividend of $0.10 per common share. 3
Track Record (1/2) Profitability Consistently profitable without interruption since Company’s inception and as a public company since 2010. Average Return on Equity (1) (“ROE”) of 12.8% over the last 5 full financial years (2013 - 2017). Risk Management Top quality / creditworthy charterers. Never restructured debt obligations or sought debt-related payment deferrals. Never had to incur excessive dilution or change of control; founders own ca. 55% of the Company and have never sold a single share. Operational Expertise Top notch operational / technical expertise based on over 40 years of shipping experience. Competitive levels of vessel operating expenses and high utilization rates. Note 1. Annual Net Income / Average Total Stockholders Equity (Beginning of Year / End of Year) 4
Track Record (2/2) $m Index Value 600 120 500 100 400 80 300 60 200 40 100 20 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 LTM Q3.2018 Adjusted Note Revenue Containership Time Charter Rate Index (2) 1. Source: Clarkson, Company filings Net Income Average Return on Equity (1) (“ROE”) of 12.8% over the last 5 full financial years (2013 - 2017) Note 1. Annual Net Income / Average Total Stockholders Equity (Beginning of Year/ End of Year) 2. Non-GAAP Item, see Appendix I for a definition and reconciliation to the nearest GAAP measure for Q3 2018. 5
Value Creation 2018 (1/2) Total acquisitions in 2018 worth ca. $900m. Acquisition of 16 vessels with an average age (1) of 4 years. Incremental contracted revenues from the 2018 deals worth ca. $1.1Bn. Estimated Earnings per Share (“EPS”) (2) accretion of $0.27 for 14 of the 16 vessels which are employed under medium to long term charters. Note 1. TEU weighted 2. Based on: a. Total number of common shares 112,314,630 Estimations exclude c/v Michigan and c/v Trader which are employed in the spot / short – term market. b. The assumption of no exercise of the option to issue new common shares for the partial payment of the acquisition of the 60% equity interest of York Capital in five 2016 – c. built 14.000 TEU containerships (Press Release November 19,2018) d. No issuance of common shares due to participation in DRIP or for compensation to Costamare Shipping Company / Costamare Shipping Services. e. For the 9 delivered vessels, EPS accretion is estimated for 2019. The total EPS accretion for these 9 vessels amounts to $0.16. f. For the 5 newbuild vessels, EPS is based on estimates for the full calendar year after their respective deliveries in 2020 - 2021. The total estimated EPS accretion for the 5 newbuild vessels and 7 of the 9 delivered vessels (the number remaining at that time employed under their existing timecharters) amounts to $0.22. 6
Value Creation 2018 (2/2) # Vessel TEUs Year Built Charter Period (in years) (1) 1 4,957 2013 7 Megalopolis 2 4,957 2013 7 Marathopolis 3 8,044 1996 2.5 Maersk Kleven 4 Maersk Kotka 8,044 1996 2.5 5 Newbuild 1 12,690 2020 10 6 Newbuild 2 12,690 2020 10 7 Newbuild 3 12,690 2020 10 8 Newbuild 4 12,690 2021 10 9 12,690 2021 10 Newbuild 5 10 14,424 2016 7.3 Triton 11 14,424 2016 7.4 Titan 12 14,424 2016 7.7 Talos 13 Taurus 14,424 2016 7.7 14 Theseus 14,424 2016 7.8 15 Michigan 1,300 2008 0.8 16 Trader 1,300 2008 Spot Estimated annual EPS accretion of $0.27 (2) for 14 of the 16 vessels which are employed under medium to long term charters . Average charter period of 8 yrs (3) . Note 1. As per the date of closing of each transaction 2. Based on: a. Total number of common shares 112,314,630 Estimations exclude c/v Michigan and c/v Trader which are employed in the spot / short – term market. b. The assumption of no exercise of the option to issue new common shares for the partial payment of the acquisition of the 60% equity interest of York Capital in five 2016 – c. built 14.000 TEU containerships (Press Release November 19,2018) d. No issuance of common shares due to participation in DRIP or for compensation to Costamare Shipping Company / Costamare Shipping Services. e. For the 9 delivered vessels, EPS accretion is estimated for 2019. The total EPS accretion for these 9 vessels amounts to $0.16. f. For the 5 newbuild vessels, EPS is based on estimates for the full calendar year after their respective deliveries in 2020 - 2021. The total estimated EPS accretion for the 5 newbuild vessels and 7 of the 9 delivered vessels (the number remaining at that time employed under their existing timecharters) amounts to $0.22. 7 3. TEU weighted
Leverage Considerations Net Debt to Total Assets Ratio (1) of 0.38x (as of September 30, 2018). Disciplined management of our Balance Sheet, with $0.9Bn of Net Debt as of September 30, 2018. Prudent debt amortization. Over the last 12 months (ending Q3 2018) debt amortization stands at 2.2x vessels’ depreciation/amortization. No Off-Balance Sheet financing. 60% 2,100 55.9% 55% 1,868 53.8% 53.8% 1,900 52.6% 1,767 50% 1,700 1,715 1,557 45.3% 45% 1,500 1,422 1,590 $ml 39.6% 40% 1,394 1,300 1,230 1,130 35% 1,212 1,100 1,011 30% 900 975 700 25% 2013 2014 2015 2016 2017 9m 2018 2 3 Total Debt (Bank Debt & Finance Leases) Net Debt Leverage Notes 1. (Total Bank Debt plus Finance Leases minus Cash and Cash Equivalents) / Total Assets. 2. Total Bank Debt plus Finance Leases minus Cash and Cash Equivalents 3. (Total Liabilities minus Cash and Cash Equivalents) / (Total Market Value Adjusted Assets minus Cash and Cash Equivalents). Calculated in accordance with relevant provisions of bank financing agreements. 8 8
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