D'amico International Shipping S.a. · MIL:DIS
D'amico International Shipping — Q1 2009 Earnings Presentation
31 slides from D'amico International Shipping's earnings presentation, Apr 28, 2009
Slide 1: d'Amico International Shipping Q1 2009 Results
d‟AMICO INTERNATIONAL SHIPPING Q1 2009 RESULTS 28 April 2009
Slide 2: Disclaimer
This document does not constitute or form part of any offer to sell or issue, or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of d‟Amico International Shipping S.A. (or the “Company”), nor shall it or any part of it or the fac
Slide 3: Agenda
Agenda Highlights Marco Fiori Update on product tanker market Q1 2009 Results Fleet evolution & Capex commitments Strategy and Outlook 2
Slide 4: Q1 2009 Highlights
Q1 2009 Highlights • TCE Earnings US$ 54.2 million Financials • Net profit US$ 8.6 million (EPS US$ 0.06) • Net debt of US$ 136.5 million • Two new time chartered-in vessels in March Fleet (Fleet of 37.2) • Global down turn and present short term Market negative outlook affecting the freight rates,
Slide 5: Controlled Fleet Profile
Controlled Fleet Profile • Young Fleet with an average age of 4.3 years, DIS Fleet compared to a As at 31 March 2009 product tanker industry average MR Handy Total % of 10.3 years1 Owned 12.0 3.0 15.0 40% • 5.1 Purchase Bareboat Chartered - 1.0 1.0 3% Options, of which 2.3 by 2011 Time Chartered 13.
Slide 6: Agenda
Agenda Highlights Update on product tanker market Marco Fiori Q1 2009 Results Fleet evolution & Capex commitments Strategy and Outlook 5
Slide 7: Market Overview - Recent Years
Market Overview- Recent Years • Longer Time TC Rates for Medium Range1 Product Tankers (US$) Charter rates have retained relatively 35,000 stable levels throughout recent years 30,000 whereas have been under 25,000 pressure since the end of the 2008 20,000 • Owners have become 15,000 keener to secur
Slide 8: Market Overview - Q1 2009
Market Overview - Q1 2009 Rates for Medium Range1 Product Tankers (US$) 20,000 15,000 10,000 5,000 Spot 1 Year 3 Year 5 Year ...we are in a different situation today. The spot market came off drastically in the middle of March. Predominately due to a large build in stocks coupled with global decreas
Slide 9: Agenda
Agenda Highlights Update on product tanker market Q1 2009 Results Alberto Mussini Fleet Growth & Capex commitments Strategy and Outlook 8
Slide 10: Q1 2009 Financials
Q1 2009 Financials • Results • TCE Earnings of US$ 54.2 million in Q1‟09 • EBITDA of US$ 15.5 million in Q1‟09 • Net Profit of US$ 8.6 million in Q1‟09 • EPS of US$ 0.06 in Q1‟09 • Cash generation - Operating cash flow of US$ 21.5 million in Q1‟09 • Net Debt as at 31 March 2009 at the low level of U
Slide 11: Income Statement
Financial Results - Income Statement (US$ million) Q1 2009 Q1 2008 TCE Earnings 54.2 57.3 Time charter hire costs (23.3) (18.4) Other direct operating costs (11.3) (10.8) General and administrative costs (5.0) (5.6) Other operating Income 0.9 2.4 Result on disposal of vessels - 22.2 EBITDA 15.5 47.0
Slide 12: Key Operating Measures
Key Operating Measures Key Operating Measures Q1 2009 Q1 2008 Q4 2008 FY 2008 Number of vessel equivalents¹ 36.0 35.2 36.2 36.1 Fleet contract coverage² 56% 50.8% 55% 52% Daily TCE earnings³ (US$/day) 19,375 20,234 21,968 21,570 Owned vessels/total fleet (%) 41.7% 47.5% 42.7% 45.9% Off-hire days/ava
Slide 13: Statement of Financial Position
Statement of Financial Position (US$ million) As at As at 31 Mar 09 31 Mar 08 ASSETS Non current assets 535.5 531.3 Current assets 200.0 192.9 Total assets 735.5 724.2 SHAREHOLDERS EQUITY AND LIABILITIES Shareholders‟ equity 390.8 387.8 Non current liabilities 270.3 271.7 Current liabilities 74.4 64
Slide 14: Cash Flow
Cash Flow (US$ million) Q1 2009 Q1 2008 FY 2008 Operating Activities 21.0 15.8 102.7 Investing Activities (12.5) (102.3) (31.7) Financing Activities 1.1 88.6 (54.4) Change in Cash Balance 9.6 2.1 16.6 Robust operating cash flow in Q1 2009 also influenced by positive working capital trend No signific
Slide 15: Financial ratios
Financial ratios Gearing (%) 80.5% 75.0% Indebtedness / 65.7% Shareholders‟ equity 36.7% 34.9% Leverage Indebtedness / 2.58 2.58 2.29 EBITDA Adj. 1.46 (12 months) 1.38 13.20 Coverage EBITDA Adj (12 months) / 10.07 financial income- 8.92 charges 8.32 (12 months) 6.40 01 Jan „08 31 Mar „08 30 Jun „08
Slide 16: Fleet's Market Value
Fleet‟s Market Value Group‟s Fleet Market Value and Net Debt (US$ million)1 1000 962 917 915 900 800 700 642 711 705 610 600 663 500 501 400 474 300 251 252 212 200 137 140 100 0 Mar 2008 Jun 2008 30 Sep 2008 31 Dec 2008 Mar 2009 Fleet Market Value (FMV) Net Debt (ND) FMV-ND No relevant further mark
Slide 17: DIS' Valuation Scenario
DIS‟ Valuation Scenario DIS‟ Sum of the Parts Valuation relative to Group‟s Market Capitalisation (US$ million) 700 600 100 5 500 Potential Upside + 138% 400 Present Value of options first 300 exercisable 579 Discounted EBITDA before end of 474 of vessels currently 2011 200 time chartered-in during
Slide 18: Agenda
Agenda Highlights Update on product tanker market Q1 2009 Results Fleet evolution & Capex commitments Alberto Mussini Strategy and Outlook 17
Slide 19: Fleet Profile Evolution
Fleet Profile Evolution DIS‟ New-building Plan Year of Delivery DIS‟ Interest Total Vessels Newbuilding Order 2009 6.2 10 Book: • 8.2 owned1 2010 0.5 1 • 2 chartered-in, of 2011 3.5 7 which 1 with Total 10.2 18 purchase options DIS‟ Vessels Controlled by Year End Chartered through Pools Time Charter
Slide 20: Capex Plan
Capex Plan Capital Commitments Q2‟09 H2‟09 2010 2011 Total (DIS Interests) (US$ million) 10 GLENDA Hyundai-Mipo vessels 10 19 67 54 150 4 GLENDA SLS vessels 10 39 - - 49 2 DM Shipping Nakai vessels 4 28 - - 32 Total 24 86 67 54 231 • GLENDA (JV with Glencore) 6 Hyundai and 4 SLS vessels Commerzbank/
Slide 21: Agenda
Agenda Highlights Update on product tanker market Q1 2009 Results Fleet Growth & Capex commitments Strategy and Outlook Marco Fiori 20
Slide 22: Outlook: Supply
Outlook: Supply Medium Range1 Product Tanker Deliveries/Scrapping Phase out m.dwt •There are still a large Orderbook 12.0 number of ships to be Net Fleet Growth delivered in the next 9.8 10.0 9.6 couple of years As at March‟09 8.0 6.5 • The comparison, 6.0 however, shows that 5.1 the net growth is 4
Slide 23: Outlook: Demand
Outlook: Demand • Despite the Global Economic climate and a lower Oil Global Refinery Capacity Additions1 (millions of bpd) price there is still planned additional refinery capacity 4.0 • There have been 3.6 3.5 revisions on the 3.3 actual amount 2.9 coming on line. 3.0 2.8 There will be some 2.5 ti
Slide 24: DIS's cautious response
DIS‟s cautios response • In the face of recent negative views on worldwide economic growth, the product tanker market performed well in Q1 2009, with returns at good levels compared to historical earnings • The Outlook is significantly influenced by the current worldwide economic uncertainty. The gl
Slide 25: The DIS route
The DIS route • DIS strategy • Expansion through sustainable fleet growth • Selected Partnership as strategic point to increase controlled tonnage and flexibility • Enhance and develop business with Key clients • Confirming the leading- role in alternative commodities • External growth driven by mar
Slide 26: Appendix
Ras ne} < 7) ro rot <x
Slide 27: DIS' Shareholdings structure
DIS‟ Shareholdings structure Key Information on DIS‟ Shares d'Amico International Shipping SA 2,93% Market 28.14% Kairos Fund Limited d'Amico 2.40% International SA 64,30% Kairos Partners SGR SpA 2.23% Listing Market Borsa Italiana, STAR No. of shares 149,949,907 Market Cap1 € 183.689 million Shares
Slide 28: d'Amico's Group Structure
d‟Amico‟s Group Structure Holding company d‟Amico Shipping company Società di Navigazione S.p.A. Listed entity (Italy) Other companies 99.99% d‟Amico International S.A. (Luxembourg) 100% 64.3% 100% d‟Amico International d‟Amico Dry Limited Shipping S.A. Other companies (Ireland) (Luxembourg) DIS ben
Slide 29: DIS' Current Fleet Overview
DIS‟ Current Fleet Overview Name of vessel Tonnage (dwt) Year Built Builder, Country Flag Classification Society IMO Classified Owned High Venture 51,087 2006 STX, South Korea Liberia RINA and ABS IMO III High Progress 51,303 2005 STX, South Korea Liberia RINA and ABS IMO III High Performance 51,303
Slide 30: DIS' Current Fleet Overview (cont'd)
DIS‟ Current Fleet Overview (cont‟d) HANDYSIZE DIRECT Classification IMO Name of vessel Tonnage (dwt) Year built Builder, Country Flag Society Classified Owned Cielo di Salerno 36,032 2002 STX, South Korea Liberia RINA and ABS IMO III Cielo di Parigi 36,032 2001 STX, South Korea Liberia RINA and ABS
Slide 31: DIS' New Building Program
DIS‟ New Building Program Name of vessel / Estimated Estimated IMO Hull Number tonnage (dwt) MR/Handysize delivery date Builder, Country Flag2 Classification Society2 Interest1 Classified Owned S510 - GLENDA Mara 51,000 MR June 2009 SLS, South Korea Liberia Intention ABS 50% IMO III S511 - GLENDA Ma
d'Amico International Shipping — Q1 2009 Earnings Presentation on 6ix