Euroseas Ltd. · NASDAQ:ESEA
Euroseas — 4th Annual Invest In International Shipping Conference 2010
23 slides from Euroseas's conference presentation, Mar 25, 2010
Slide 1: 4th Annual Invest In International Shipping Conference
Capital p Link 4rth Annual Invest In International Shipping Conference New York City, NY M h 25 March 25, 2010
Slide 2: Forward-Looking Statements
Forward-Looking g Statements Statements in this presentation may be "forward-looking statements" within the meaning of federal securities laws. The matters discussed herein that are forward forward-looking looking statements are based on current management expectations that involve risks and uncerta
Slide 3: Introduction & Milestones
Introduction & Milestones » Euroseas is a provider of worldwide dry cargo transportation services and owner of ships • Drybulk carriers – transporting iron ore, coal and grains and minor bulks • Container and multipurpose ships – transporting dry and refrigerated cargoes » Corporate Profile • Formed
Slide 4: Current Fleet
Current Fleet Size Year Acquisition Name Type DWT TEU Built Year Acq'd 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 Intermediate 34,677 2,556 2001 2
Slide 5: 2009: An Opportunity to Renew
2009: An Opportunity pp y to Renew Took advantage g of dropp in pprices to renew fleet at pprices of about 35-40% of the levels prevailing in the summer of 2008 » Bought: • Monica P - blt ’98 bulker for $18m (Feb-’09) • Eleni P – blt ’97 bulker for $18.5m (Mar-’09) • Pantelis - - blt ’00 bulker for
Slide 6: Euroseas Acquisitions 2005-2009
Euroseas Acquisitions q 2005-2009 70 Ioanna P 60 Dry Bulk (Panamax) Containership (1700 teu) 50 million $, 15-yr old vessels 40 Gregos g 30 Aristides NP Maersk Noumea Artemis Tiger Bridge Clan Gladiator 20 Xingang Manolis PDespina/Jonathan Pantelis Tasman Eleni P Trader Monica P 10 0 02.01 03.01 04.
Slide 7: Vessels Employment Chart – Bulkers
Vessels Employment p y Chart – Bulkers 100% in 2010 / 40 % in 2011 IRINI Spot pool / 100% FFA-$10,950 $17,500 MONICA P Spot Pool / 100% FFA-$10,970 ELENI P. $15,350 100% FFA-$11,935 PANTELIS 25200/22500 $17,500 ARISTIDES N.P. $12,350 $18,900 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Ph
Slide 8: Vessels Employment Chart – Containerships
Vessels Employment p y Chart – Containerships p Coverage 45% in 2010 / 17% in 2011 Container Ship Vessels DESPINA P laid-up Multi-purpose Vessel JONATHAN P laid-up KUO HSIUNG $3,850 , $3,850 , $5,300 , NINOS $3,900 MANOLIS P $3,850 $4,000 Contex less 10% CAPTAIN COSTAS $4,000 $4,250 $4,250 TIGER BRI
Slide 9: Fleet Management & Operational Performance
Fleet Management g & Operational p Performance » Management is performed by Eurobulk Ltd., an affiliate Daily costs per vessel (1) • Top management – 100+ years of industry 10,000 shipping experience 8,000 • 4th ge generation e at o oof Pittas’ ttas family a y managing a ag g secondhand dry-cargo sh
Slide 10: Rapid Debt Repayment
Rapid Debt Repayment Debt Repayment Schedule – As of 3/1/2010 Cash Flow Breakeven $30 » Cash Flow Breakeven rough estimate $25 for next 12 months: $/day $20 OPEX(1) $ 5,500 million $15 3.7 G&A $ 650 25.6 2.4 8.0 Interest $ 500 $10 13.8 1.0 2.2 9.6 Drydock $ 850 11.6 $5 8.4 7.1 7.0 4.8 Loan Rpmt(2) $
Slide 11: Investment Opportunities In 2010
Investment Opportunities pp In 2010 1 Year TC Rates 1-Year 10 yr old Price Historical Range 10-yr 90,000 90 80,000 Panamax 72-75,000 dwt 80 M ax, 19 9 9 - 2 0 0 9 Containership 1700 teu A ver ag g e,, 19 9 9 - 2 0 0 9 70 000 70,000 70 M in, 19 9 9 - 2 0 0 9 60,000 60 C ur rent , M ar - 2 0 10 50,000
Slide 12: Funding Company Growth
Funding g Company p y Growth » Formed, Euromar LLC, a Joint Venture with Eton Park and Rhône Capital, two private investment firms • Will pursue investment opportunities in shipping • Commitments of up to $75m each for a total of up to $175m committed including $25m from Euroseas » Key Advantages •
Slide 13: Market Overview
Market Overview
Slide 14: Dry Bulk & Containerized Trade Growth, 1987-2009
Dryy Bulk & Containerized Trade Growth,, 1987-2009 14% 12% 10% Container Average 1990-2009: 8.8% p.a. 8% 6% 4% Dry Bulk Average 1990-2009: 3.2% p.a. 2% 0% (E) (F) -2% -4% Dry Bulk C t i Container -6% -8% -10% 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 Source: Clarksons Page 14
Slide 15: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a.) 2006 2007 2008 2009 2010F 2011-13F USA 33 3.3 25 2.5 1 1 -2.5 1.1 2 5 (-2.7) ( 2 7) 2 7(1 5) 3.4 2.7(1.5) 3 4 (1.8) (1 8) Eurozone 3.0 2.7 0.8 -3.9 (-4.2) 1.0 (0.3) 1.7 (1.8) Japan 2.8 1.9 -0.7 -5.3 (-5,4.) 1.7 (1.7) 2.7 (1.2) China 10.5 11.2 9.0
Slide 16: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk y Age g Profile & Orderbook Deliveryy Schedule Dry Bulk Age Profile Dry Bulk Orderbook (1) m dwt m dwt 30.6% 140 27 4% 27.4% 150.0 130 For delivery in 2010 140.0 (vessels): 130.0 120 120.0 110 Cape 321 110.0 59.5 100 Panamax 269 15.2% 63.00 100.0 90 H’max H max 380 90.0 17.3% 16.8% 80 Handie
Slide 17: Containership Age Profile & Orderbook Delivery Schedule
Containership p Age g Profile & Orderbook Deliveryy Schedule Containership Age Profile(1) Container Orderbook (1) m TEU 6.8 m TEU 17.0% 2.0 6.4 48 % 6.0 16.0% 5.6 10.3% 5.2 1.6 4.8 3.01 13 .8% 1.4 44 4.4 0 79 0.79 4.0 1.2 5.6% 3.6 22.6% 0.6 3.2 2.8 0.8 0.54 1.43 4.5% 2.4 1.70 1.39 15.6% 0.44 2.0 0.4
Slide 18: Indicative Supply/Demand Balance Scenario
Indicative Supply/Demand pp y Balance Scenario Dry Bulk Container Orderbook - 61 61.1% 1% (Mar-10) (Mar 10) Orderbook - 31 31.1% 1% (Mar-10) (Mar 10) 2009 2010 2011 2012 2009 2010 2011 2012 (1) Trade Demand Growth -2.7% 6.0% 5.5% 5.5% -9.8% 7.5% 9.0% 9.0% Effect of congestion, piracy, productivity 7
Slide 19: Euroseas Market Position
Euroseas Market Position We have what it takes … » Strong Balance with low leverage & funds available for investment » Joint Venture that gives us access to an additional equity of up to $150m » One of the lowest cost operating structures » Team and experience … to take advantage g of the opportunit
Slide 20: Euroseas Contacts
Euroseas Contacts Euroseas Ltd. Aethrion Center 2, Messogiou & Evropis Street 151 25 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. 2692 Far
Slide 21: Appendix: Selected Financial Information – 2007, 2008 & 2009
Appendix: Selected Financial Information – 2007, 2008 & 2009 Page 21
Slide 22: Financial Highlights: 4th Quarter and Full Year 2008 and 2009
Financial Highlights: g g 4th Quarter of and Full Year 2008 and 2009 Fourth Quarter Full Year as as ((in million USD except p pper adjusted(4) change adjusted(4) change share amounts) 2008 2009 % (3) 2008 2009 % (3) Net Revenues $23.6 $16.5 -30.2% $126.3 $63.8 -49.5% Net Income ($22.2) ($16.3) $21.5
Slide 23: Fleet Data for 4th Quarter and Full Year 2008 and 2009
Fleet Data for 4th Quarter of and Full Year 2008 and 2009 Fleet Statistics Fourth Quarter Full Year 2008 2009 2008 2009 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 16.00 16.68 15.61 16.30 Utilization Rate (%) Overall(1 ) 96.0% 93.8% 98.0% 94.8% Commercial(1 ) 97.3% 94.7% 99.1%
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