Genco Shipping & Trading Limited · NYSE:GNK

Genco Shipping & Trading — Investor Day (December 2007)

31 slides from Genco Shipping & Trading's investor day presentation, Dec 11, 2007

  1. Slide 1: Genco Shipping & Trading Limited Investor Day

    Genco Shipping & Trading Limited Investor Day December 11, 2007

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements ar

  3. Slide 3: Agenda

    Agenda „ Company Overview „ Financial Overview „ Growth Strategy „ Conclusions 12/11/07 3

  4. Slide 4: Company Overview

    Company Overview

  5. Slide 5: Genco Overview

    Genco Overview „ Founded in December 2004, completed IPO in July 2005 „ High quality, modern fleet of 22 vessels ― Expected delivery of 11 vessels through the third quarter of 2009 „ Ideally positioned to take advantage of a strong market to renew time charters ― Consistent 75% coverage time charter

  6. Slide 6: Management

    Management Peter Georgiopoulos Gerry Buchanan John C. Wobensmith Chairman President Chief Financial Officer „ Over 20 years of „ Over 40 years of „ 14 years of experience in experience in the shipping experience in the shipping the shipping industry industry industry „ Formerly Senior Vice „ Chairma

  7. Slide 7: Total Number of Vessels: Execution of Growth Strategy

    Execution of Growth Strategy „ Genco Muse acquisition in „ Metrostar 9 vessel acquisition in August 2005 July 2007 „ Franco 3 vessel acquisition in „ Evalend 6 vessel acquisition in July 2006 August 2007 35 32 31 28 28 29 30 Total Number of Vessels 25 20 19 20 16 17 17 15 10 5 0 1H 2005 2H 2005 1H 2

  8. Slide 8: High Quality Operations

    High Quality Operations „ Extensive relationships with Selected Customer Relationships established drybulk charterers „ These relationships help us to: ― Stabilize revenue through favorable contract terms ― Minimize counterparty risk ― Maximize fleet utilization „ We utilize three leading technical

  9. Slide 9: Current Fleet Employment

    Current Fleet Employment Vessel Year Revenue Rate Vessel Name Charterer Cash Rate (1) (2) Charter Expiration (3) Type Built Genco Augustus 2007 Cargill International S.A. 45,263 62,750 December, 2009 Capesize Genco Tiberius 2007 Cargill International S.A. 45,263 62,750 January, 2010 Genco London 200

  10. Slide 10: Acquisition Vessels to be Delivered

    Acquisition Vessels to be Delivered Vessel Year Duration/ Cash Revenue Vessel Name DWT Yard Delivery(1) Charterer Type Built(1) Expiration Rate (2) Rate (3) Genco Constantine 180,000 Imabari Q2 2008 2008 Cargill 54 to 62 Mos 52,750(4) 52,750 Capesize Genco Hadrian 170,500 Sungdong Q4 2008 2008 Genco

  11. Slide 11: Financial Overview

    Financial Overview

  12. Slide 12: 3rd Quarter Highlights

    3rd Quarter Highlights Three Months Ended Nine Months Ended September 30, 2007 September 30, 2006 September 30, 2007 September 30, 2006 (Dollars in thousands) (Dollars in thousands) EBITDA Reconciliation: (unaudited) (unaudited) Net Income $ 16,320 $ 12,904 $ 49,878 $ 47,004 + Net interest expense 9

  13. Slide 13: Balance Sheet

    Balance Sheet Selected Financial Information Updated Pro Forma 9/30/07 (Dollars in thousands) Balance Sheet Liquidity Position Cash(1) $32,182 Revolving Credit Facility $1,377,000 Debt(2) $977,850 Drawn Portion(2) (977,850) Shareholders’ Equity(3) 657,005 Undrawn Portion $399,150 Capitalization $1,6

  14. Slide 14: Q4 2007 Estimated Break-Even Levels

    Q4 2007 Estimated Break-Even Levels(1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) $ 4,200 $ 4,200 General & Administrative(4) 1,328 1,538 Management Fees(5) 240 240 Dry Docking (6) 403 - Interest Expense (7) 4,188 4,263 Depreciation(8) - 5,503 Daily Break-Even

  15. Slide 15: Q4 2007 & 2008 Estimated Drydocking Schedule

    Q4 2007 & 2008 Estimated Drydocking Schedule Vessel Name Next DD Month Proposed Offhire(1) Budget(1) Genco Surprise November 2007 $865,000 19.2 Genco Challenger March 2008 $450,000 20 Genco Charger June 2008 $20,000 5 Genco Beauty July 2008 $700,000 20 Genco Sugar July 2008 $650,000 20 Genco Progres

  16. Slide 16: Capital Structure Developments

    Capital Structure Developments Credit Facility Up to $1.377 billion „ Have entered into eight Term 10 Years forward interest rate swaps Non-Amortization ― Total amount swapped 5 Years for 2008 of $631.2 mm Period ― Average swapped rate Interest Rate LIBOR + 0.85%(1) of approximately 4.9% for 2008 Dn

  17. Slide 17: Dividend Declaration & Policy

    Dividend Declaration & Policy Period Declared Dividend „ Paid a Q3 2007 dividend of $0.66 per share on November 30th, Q3 2005 $0.60 2007 to all shareholders of record Q4 2005 $0.60 as of November 16th, 2007 Q1 2006 $0.60 „ Cash reserves are determined by our Board of Directors Q2 2006 $0.60 ― Fleet

  18. Slide 18: Industry Overview

    Industry Overview

  19. Slide 19: Global Seaborne Trade – 2007F

    Global Seaborne Trade – 2007F Total Seaborne Trade Dry Seaborne Trade General Other Steam Coal Drybulk Minor Bulk 10% 20% Container 16% Coking 36% 37% 7% Coal 38% 8% 28% Liquid Iron Ore (Oil / Gases / Grain Chemical) Total = 7.65 billion tons Total = 2.8 billion tons Source: Clarkson’s Research Serv

  20. Slide 20: Major Drybulk Trade Routes

    Major Drybulk Trade Routes Iron Ore Coal Source: Drewry Grains 12/11/07 20

  21. Slide 21: Strong Drybulk Vessel Demand Fundamentals

    Strong Drybulk Vessel Demand Fundamentals „ Strong global economic growth driven by China, India and the U.S. Major Drybulk Importers „ Increased industrial activity (million tons per year) in China 600 ― Expanded iron ore imports due to increased steel production 500 ― Increased coal demand 400 „ I

  22. Slide 22: Chinese Steel Production Continues to Drive the Market

    Chinese Steel Production Continues to Drive the Market „ Continued demand resulted in YOY growth for Chinese steel production and iron ore imports at 17% through October 2007 „ Lower Australian port congestion offset by increased ton-mile growth as coal shipments to Asia are now originating from Sou

  23. Slide 23: Growth Strategy

    Growth Strategy

  24. Slide 24: Significant Opportunities in Fragmented Industry

    Significant Opportunities in Fragmented Industry „ No single owner owns more than 7% of the vessels within each class „ Market capitalization for all U.S.-listed pure drybulk owners is over $13 billion (1) „ Drybulk industry has similarities to the tanker industry in 1999 Ownership 100.0% 80.0% % of

  25. Slide 25: Growth Strategy: Timing Is Everything

    Growth Strategy: Timing Is Everything „ Opportunistic and prudent acquisition strategy ― Accretive earnings and cash flows while maintaining a disciplined approach to return on capital Pursue Accretive „ Revolver is primary driver of growth strategy Acquisitions ― Accretive to shareholders and reduc

  26. Slide 26: Do Freight Rates & Values Justify Further Investment?

    Do Freight Rates & Values Justify Further Investment? Drybulk Rates vs. Values 180,000 160 160,000 1 Yr. Time Charter Rate 140 5 Year Old Second Hand Price 140,000 120 Prices in $USD Million 1Yr. Rates $USD 120,000 100 100,000 Cash on Cash* 80 80,000 ≈28% 60 60,000 40 40,000 20,000 20 0 0 3 7 1 3 7

  27. Slide 27: Conclusions

    Conclusions

  28. Slide 28: Key Investment Highlights

    Key Investment Highlights Modern high-quality fleet U.S. based management team with strong track record Dividend policy supported by time charters Strong growth with dividends to Cost efficient operations shareholders Attractive revolving credit facility Favorable industry fundamentals 12/11/07 28

  29. Slide 29: Appendix

    Appendix

  30. Slide 30: Pro Forma Reconciliation 9/30/07

    Pro Forma Reconciliation 9/30/07 (Dollars in thousands) 9/30/07 Actual Adjustment(1) 9/30/07 Pro Forma Cash(1) $51,238 ($19,056) $32,182 Debt(2) $826,200 151,650 $977,850 Shareholders’ Equity(3) 438,661 218,344 657,005 Capitalization $1,264,861 - $1,634,855 (1) September 30, 2007 pro forma cash take

  31. Slide 31: Year to Date Earnings

    Year to Date Earnings Three Months Ended Nine Months Ended September 30, 2007 September 30, 2006 September 30, 2007 September 30, 2006 (Dollars in thousands, except share and per share (Dollars in thousands, except share and per share data) data) (unaudited) (unaudited) INCOME STATEMENT DATA: Revenu

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