Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Capital Link 6th Annual Invest in International Shipping Forum (March 2012)
28 slides from Euroseas's conference presentation, Mar 19, 2012
Slide 1: Presentation to Capital Link 6th Annual Invest in International Shipping Forum
Presentation to Capital Link 6th Annual Invest in International Shipping Forum March 19, 2012
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation may be "forward-looking statements" within the meaning of federal securities laws. The matters discussed herein that are forward-looking statements are based on current management expectations that involve risks and uncertainties that may re
Slide 3: Introduction & Milestones
Introduction & Milestones » Euroseas is a provider of worldwide dry cargo transportation services and owner of ships • Container and multipurpose ships – transporting dry and refrigerated cargoes • Drybulk carriers – transporting iron ore, coal and grains and minor bulks » Corporate Profile • Formed
Slide 4: Euroseas Strategic Evolution
Euroseas Strategic Evolution A traditional Greek shipping PRIVATE company that has adapted its EQUITY strategy to the changing times and opportunities… PUBLIC 2010-12 MARKETS 2005-2007 CONTAINER -SHIPS 2000’s … building on its time-tested strengths: love for operating ships, cost control, and, BULKE
Slide 5: Euromar LLC Joint Venture
Euromar LLC Joint Venture » Euromar, a joint venture of Euroseas with Eton Park and Rhône Capital, was formed in March 2010 with a total capital commitment of $175m • Done to provide access to capital to take advantage of opportunities in the containership sector without dilution to Euroseas shareho
Slide 6: Current Fleet (not including Euromar vessels)
Current Fleet (not including Euromar vessels) Size Year Acquisition Name Type DWT TEU Built Year Pantelis Panamax 74,020 - 2000 2009 Eleni P Panamax 72,119 - 1997 2009 Irini Panamax 69,734 - 1988 2002 Aristides NP Panamax 69,268 - 1993 2006 Monica P Handymax 46,667 - 1998 2009 Maersk Noumea Intermed
Slide 7: Euromar Fleet
Euromar Fleet Name Type DWT TEU Built CMA-CGM TELOPEA Intermediate 37,180 2,785 2007 EM ASTORIA Intermediate 35,600 2,778 2004 MAERSK NAIROBI Intermediate 34,654 2,556 2001 EM CHIOS Intermediate 32,350 2,506 2000 EM ATHENS Intermediate 32,350 2,506 2000 EM ANDROS Intermediate 33,216 2,450 2003 EM IT
Slide 8: Current Euroseas & Euromar Fleet Acquisition Times
Current Euroseas & Euromar Fleet Acquisition Times 70 60 Dry Bulk (Panamax) Containership (1700 teu) 50 million $, 15-yr old vessels 40 30 Aristides NP Maersk Noumea Tiger Bridge 20 Clan Gladiator Xingang Despina P Pantelis Tasman Manolis P Eleni P Irini Trader Monica P 10 Ninos Aggeliki P 9 EUROMAR
Slide 9: Market Overview
Market Overview
Slide 10: Panamax & 1700 teu Containership 1-yr TC Rates
$ / day 19 93 - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 0 19 01 94 - 19 01 95 - Source: Clarksons 19 01 96 - 19 01 97 - 19 01 98 - 19 01 99 - 20 01 00 - 20 01 01 - Panamax 75,000 dwt 20 01 Containership 1700 teu 02 - 20 01 03 - 20 01 04 - 20 01 05 - 20 01 06 - Panamax & 1700 t
Slide 11: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a. - IMF) 2009 2010 2011 2012F 2013F 2014-16F USA -2.6 (-1.6) 2.8 (2.7) 1.8 (3.0) 1.8 (1.8) 2.2 2.7 Eurozone -4.1 (-2.0) 1.8 (1.0) 1.6 (1.5) -0.5 (1.1) 0.8 1.8 Japan -6.3 (-2.6) 4.3 (1.7) -0.9 (1.7) 1.7 (2.3) 1.6 1.4 China 9.2 (6.7) 10.3 (10.0) 9.2 (1
Slide 12: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook (1) m dwt 43.8% More than 10% of fleet For delivery in 12/13+m dw t m dw t 200 Is over 25 yrs old (as of Jan-12): 160 160 (scrapping is at record Cape 265/130 180 levels) 22.7% 140 25.2% Panamax 463/244 140 160
Slide 13: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile(1) Container Orderbook (1) m TEU 7,2 m teu m teu 6,8 42.8 % 2.2 2.2 6,4 2.0 2.0 6,0 5,6 1.8 10.0% 1.8 11.7% 5,2 2,59 1.6 1.6 4,8 9.4% 4,4 27.3% 1.4 9.0% 1.4 4,0 5.6% 8.4% 1,00 1.2 1.2 3,6 3,2 1,16 1.0 0.84 1.0 1.49 2,8
Slide 14: Seaborne Trade Shifts To Pacific Basin & Emerging Countries
Seaborne Trade Shifts To Pacific Basin & Emerging Countries Major Bulk Imports 2011 Containerized Trade 2011 (tons) In parentheses: (teu-miles) Other Region’s / Route’s Transpacific share in 2001 Intra-Reg / (18%) (19%) Other (12%) 16% 13% 14% China Europe (8%) (26%) 35% 14% FE-Europe North-South (2
Slide 15: Dry Bulk Summary – Market appears to be near all time lows
Dry Bulk Summary – Market appears to be near all time lows… » Significant deliveries are expected to put pressure on the market for 2012 and likely 2013 • Delivery net delays and cancellations were 40% for 2009, 37% for 2010, 29% for 2011: we expect them to be around 30-35% for 2012 » Scrapping coul
Slide 16: Containership Summary – Supply/demand balance is very fragile
Containership Summary – Supply/demand balance is very fragile » Economic uncertainty has affected containerized trade quite broadly as consumers in Europe and North America have remained timid in their spending • Europe and N. America account for about 30% of containerized trade (teu) but almost 50%
Slide 17: Chartering, Operations & Investment Strategy
Chartering, Operations & Investment Strategy
Slide 18: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers Coverage: 100% in 2012 / 46% in 2013 ARISTIDES NP $ 14,950 $10,300 ELENI P $ 16,500 IRINI $14,000 MONICA P $12,375 PANTELIS $17,50 $11,200+50/50 profit share One year Opt. @ 14,200 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14
Slide 19: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage (1/11/12): Abt 48% in 2012 / Abt 10% in 2013 Container Ship Vessels CAPTAIN COSTAS Multi-purpose Vessel Extensions @ charterer’s option MANOLIS P $10, $7,000 NINOS $11,200 KUO HSIUNG $11,200 AGGELIKI P $12,500 $6,500 plus 6 m onths option @ MARINOS
Slide 20: Fleet Management & Operational Performance
Fleet Management & Operational Performance Daily costs per vessel (1) 10.000 » Operational fleet utilization rate in excess of 98.5% over last 5 years 8.000 • Outstanding safety and environmental record $ / day 6.000 • For 2011, operational fleet utilization 99.7% and commercial 96.8% 4.000 • For 20
Slide 21: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Schedule – As of 12/31/2011 Cash Flow Breakeven $30 » Cash Flow Breakeven - rough $25 estimate for next 12 months: $20 $/day million $15 3.7 9.9 OPEX $ 5,700 25.6 2.4 1.0 2.2 9.6 G&A $ 600 $10 Interest $ 650 7.3 13.8 11.6 12.5 11.2 11.0 6.4 Drydock $ 250 $5 6.7
Slide 22: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 10-Year Secondhand Prices 10-yr old Price Historical Range 90 90 80 80 Max, 2001-2011 Panamax 75,000 70 dwt 70 Average, 2001-2011 60 Min, 2001-2011 60 million $ 50 50 million $ 40 40 30 30 20 20 ? 10 10 ? 0 0 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008-
Slide 23: Strategy & Growth
Strategy & Growth » Euroseas strategy of investing in both containerships and bulkers worked well over the last five years: • Avoided investing in bulkers in 2007 and 2008 and maintained a revenue base well into 2009 due to our containership charters while investing in bulkers at the bottom of the m
Slide 24: Euroseas Market Position
Euroseas Market Position We have what it takes … » Strong balance with low leverage & funds available for investment » Secured revenue-base for 2012 from having chartered dry bulk fleet » One of the lowest cost operating structures » Team and experience … to take advantage of the opportunities ahead
Slide 25: Euroseas Contacts
Euroseas Contacts Euroseas Ltd. 4, Messogiou & Evropis Street 151 24 Maroussi, Greece www.euroseas.gr euroseas@euroseas.gr Tel. +30-211-1804005 Fax.+30-211-1804097 or, Tasos Aslidis Nicolas Bornozis Chief Financial Officer Investor Relations Euroseas Ltd. Capital Link, Inc. 11 Canterbury Lane 230 Pa
Slide 26: Appendix: Selected Financial Information
Appendix: Selected Financial Information 2011 Q4 & M12 Vs. 2010 Q4 & M12 Results Page 26
Slide 27: Financial Highlights: 4th Quarter and Full Year of 2010 and 2011
Financial Highlights: 4th Quarter and Full Year of 2010 and 2011 Fourth Quarter Full Year (in million USD except per share change change amounts) 2010 2011 % (4) 2010 2011 % (4) Net Revenues $12.8 $15.3 20.0% $52.5 $61.4 17.0% Net Income ($0.9) $1.1 ($6.6) $1.1 (Gain) / loss on derivatives & unreali
Slide 28: Fleet Data for 4th Quarter and Full Year of 2010 and 2011
Fleet Data for 4th Quarter and Full Year of 2010 and 2011 Fleet Statistics Fourth Quarter Full Year 2010 2011 2010 2011 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 16.00 16.00 15.53 16.00 Utilization Rate (%) Overall( 1 ) 98.7% 90.1% 99.2% 96.4% Commercial( 1 ) 99.7% 90.5% 99.9
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