Capital Product Partners L P : First Quarter 2020 Financial Results Conference Call

First Quarter 2020

Earnings Presentation

May 6, 2020

Capital Product

Partners L.P.

www.capitalpplp.com

IMPORTANT NOTICE

The statements in this presentation that are not historical facts, including, among other things, the expected financial performance of CPLP's business, CPLP's ability to pursue growth opportunities, CPLP's expectations or objectives regarding future distributions, and market and charter rate expectations and, in particular, the effects of COVID-19 on the financial condition and operations of CPLP and the container industry in general are forward- looking statements (as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended). These forward-looking statements involve risks and uncertainties that could cause the stated or forecasted results to be materially different from those anticipated. For a discussion of factors that could materially affect the outcome of forward-looking statements and other risks and uncertainties, see "Risk Factors" in CPLP's annual report filed with the SEC on Form 20-F. Unless required by law, CPLP expressly disclaims any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in its views or expectations, to conform them to actual results or otherwise. CPLP does not assume any responsibility for the accuracy and completeness of the forward-looking statements. You are cautioned not to place undue reliance on forward-looking statements.

Non-GAAP Measures

This presentation contains non-GAAP measures. Operating Surplus is a quantitative measure used in the publicly traded partnership investment community to assist in evaluating a partnership's financial performance and ability to make quarterly cash distributions. Operating Surplus is not required by accounting principles generally accepted in the United States and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity.

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First Quarter 2020 Highlights & Update

• Net income for 1Q2020: $6.7 million.
• Cash distribution of $0.35 per common unit.
• Completed the acquisition of 3 x 10,000 TEU containers with long term charters to Hapag-Lloyd.
• Successfully installed scrubbers on remaining two container

vessels, completing scrubber installation program for the Partnership.

• Average remaining charter duration 4.4 years with 90% charter coverage for 2020 and 73% for 2021.

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Statements Of Comprehensive Income

			($ In Thousands)
		For the Three-Month		For the Three-Month
		Period Ended		Period Ended
		March 31, 2020		March 31, 2019
	Revenues	33,687		26,817
	Total Revenues	33,687		26,817
	Expenses:
	Voyage expenses	1,202		534
	Vessel operating expenses	8,729		5,658
	Vessel operating expenses - related party	1,188		957
	General and administrative expenses	1,789		1,007
	Vessel depreciation and amortization	9,631		7,236
	Operating income	11,148		11,425
	Other income / (expense), net:
	Interest expense and finance cost	(4,672)		(4,614)
	Interest and other income	198		419
	Total other expense, net	(4,474)		(4,195)
	Net income from continuing operations	6,674		7,230
	Net loss from Discontinued operations	-		(146,535)
	Net income / (loss)	6,674		(139,305)

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Operating Surplus For Calculation Of Unit Distribution1

($ In Thousands)

Net income from continuing operations

Adjustments to net income from continuing operations

Depreciation and amortization

Amortization of above market acquired charters and straight line revenue adjustments

OPERATING SURPLUS FROM CONTINUING OPERATIONS

OPERATING SURPLUS FROM DISCONTINUED OPERATIONS

TOTAL OPERATING SURPLUS PRIOR TO CAPITAL RESERVE

Capital reserve

OPERATING SURPLUS AFTER CAPITAL RESERVE

For the Three-Month	For the Three-Month
Period Ended	Period Ended
March 31, 2020	December 31, 2019
6,674	5,796
10,671	8,174
3,732	1,047
21,077	15,017
-	172
$21,077	$15,189
(10,163)	(7,703)
10,914	7,486

Increase in recommended reserves	(4,274)	(846)
AVAILABLE CASH	$6,640	$6,640

Common Unit Coverage: 1.6x

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1 Operating Surplus is a non-GAAP measure. See Important Notice at the front of this presentation.

Strong Balance Sheet

($ In Thousands)

	As Of	As Of
	March 31, 2020	December 31, 2019
Assets
Current Assets	$24,235	$65,946
Fixed Assets	740,091	576,891
Other Non-Current Assets	59,044	60,625
Total Assets	$823,370	$703,462
Liabilities and Partners' Capital
Current Liabilities	$87,065	$64,736
Long-Term Liabilities	329,024	231,989
Partners' Capital	407,281	406,737
Total Liabilities and Partners' Capital	$823,370	$703,462

Net Debt(1)/Capitalization: 44.6%

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1 Gross of deferred loan issuance costs

Covid-19 Impact

• Significant delays and increased costs associated with the two vessels that had scrubbers retrofitted during the COVID-19 outbreak in China.
• • • Delays on average of additional ~ 35 days.
    • CPLP's scrubber retrofit program completed.
  • Expected material reduction in market charter rates in the short to medium term due to weaker demand:
  • • CPLP has four vessels coming off charter in next 12 months. Next charter renewal in 2024.
  • ICBC $155.4 million refinancing delayed due the Covid-19 outbreak in China. Expected to be completed in May 2020.
  • • Expected to generate up to $38.8 million of additional liquidity.
    • Reduce pro rata annual debt amortization for the three vessels by $3.4 million and decrease interest margin.
  • Potential adverse impact on asset values, if we see a prolonged weakness in charter market.
  • • Partnership's net charter free LTV* as of 31/3/2020 at 46.8%
  • Increased operating costs and potential for operational disruptions for our vessels due to travel restrictions and quarantine rules:
  • • Managers implementing comprehensive COVID-19 policies to protect health of onshore and offshore employees and minimize operational disruptions.

• HIGH DEGREE OF UNCERTAINTY ASSOCIATED WITH EXTENT OF COVID-19 ADVERSE IMPACT.

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* As defined in our existing loan/lease agreements.

Strong Charter Coverage

• Strong charter coverage on CPLP assets.
   13 containerships and 1 drybulk vessel with 4.4 years remaining on charter on average.
• 90% and 73% charter coverage for 2020 and 2021, respectively.

Charter Profile

Expiry of Current Charters

Rates

Vessel Type

May-20

May-21

May-22

May-23

May-24

May-25

Gross Rate Per Day

Containership

CMA CGM Amazon

$39,250

Dry Bulk

$42,200

Cape Agamemnon

Containership

$39,250

CMA CGM Uruguay

Containership

$39,250

CMA CGM Magdalena

Containership

-1

Agamemnon

Containership

-1

Archimidis

Containership

$28,0002

Aristomenis

Containership

$28,0003

Athos

Containership

$28,0003

Athenian

Containership

$34,250

Hyundai Prestige

Containership

$34,250

Hyundai Premium

Containership

$34,250

Hyundai Paramount

Containership

$34,250

Hyundai Privilege

Containership

$34,250

Hyundai Platinum

High Quality Customer Base

1 Expected to generate collectively an EBITDA of approximately $44.5 million. 2

$27,000pd until Oct/2020. 3

$27,000pd until Jul/2021

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Container Charter Market Review

• Covid-19pandemic has led to disruption in consumer activity, supply chains and global economic growth.
• Widespread blanked sailings and service suspension in all trade lanes.
• Base-casescenario for container trade for 2020 has been revised down to - 10.7%.
• Expected strong rebound by 9.3% in 2021, assuming unhindered return of economic activity.
• By late April the SCFI Comprehensive Index was down by 20% since start 2020.
• Neo-panamaxmarket better insulated from Covid-19 impact due to limited number of available ships.
• Operators taking a 'wait and see' stance until the full impact of Covid-19 is understood. Focus on own tonnage and long term charter in tonnage.
• Difficult to call period market for 9,000TEU ships, but expect substantially
  reduced numbers compared to beginning of the year.

$000/day			Containership Charter Rates
60
				2750 teu grd 1-Yr TC		4400 teu gls 1 Yr TC
50				6800 teu gls 3-Yr TC		9000 teu gls 3-Yr TC

40

30

20

10

0

Mar-10

Mar-11

Mar-12

Mar-13

Mar-14

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

Mar-20

Containership Supply & Demand Growth Trends 1997-2020

% growth

20%
15%															Supply				Demand
10%
5%
0%
-5%
-10%
-15%			2000		2002									2011
1997	1998	1999	2001	2003	2004	2005	2006	2007	2008	2009	2010	2012	2013	2014	2015	2016	2017	2018	2019	2020

Source: Clarksons

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Container Charter Market Review

• Supply also impacted by Covid-19.
• Shipyard deliveries affected by travel disruption and equipment shortages.
• Slippage and potentially cancellations are expected to increase materially for this year.
• Minimal contracting with just 13 containers ordered YTD.
• Container orderbook at 10.2% of the total fleet.
• Idle fleet presently stands at 11% of total fleet. This includes vessels in dock for scrubber installation (2.9%).
• Reduction of HSFO/VLSFO spread might lead to scrubber installation cancellations.
• Demolition: FY2019 stood at 182,600 TEU. Scrapping YTD at ca. 35,000 TEU. Scrapyards presently affected by lockdowns.
• Supply growth forecast full year 2020: 2.7%.
• Provisional supply forecasts for FY2021 at 3.0%.

Containership Orderbook

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Containership Contracting

Source: Clarksons

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Capital Product Partners L.P.

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