Star Bulk Carriers Corp. · NASDAQ:SBLK
Star Bulk Carriers — SPAC Merger (March 2007)
33 slides from Star Bulk Carriers's SPAC merger presentation, Mar 15, 2007
Slide 1: Proposed Transaction for Shareholder Approval
Proposed Transaction for Shareholder Approval March 2007 (AMEX:SEA)
Slide 2: Safe Harbor Statement
Safe Harbor Statement Except for the historical information contained herein, this presentation contains among other things, certain forward- looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such statements may inclu
Slide 3: Safe Harbor Statement
Safe Harbor Statement The Company undertakes no obligation to publicly update or revise any forward-looking statements or other information or data contained in this presentation, whether to reflect any change in our expectations with respect to such statement or any change ‘in events, conditions or
Slide 4: Definitions and footnotes
+ +t tb OF * P/Net Asset Value Peer Group Redemption = Enterprise Value (Market Capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents Earnings Before Interest and Taxes Earnings Before Interest, Taxes, Depreciation and Amortization 1 half of a fiscal
Slide 5: Transaction Overview
CA ane Overview %* Business Combination Company™ (“BCC™”) trading on AMEX %* $10.00 Unit structure — 1 common stock (SEA) and 1 warrant (SEA-WS) % Raised $188.7M of net proceeds via Initial Public Offering in December 2005 %* =$192.9M held in escrow or $10.21 per share for IPO shareholders as of Dec
Slide 6: Vessel Valuation: Expected Private-to-Public Arbitrage
Vessel Valuation: Expected Private-to-Public Arbitrage E: a SLAF vase acousmon cone Current fleet Arbitrage at Acq! ion valuation * Acquisition Price (Locked in Value) $345.20 Be — $360.25 Estimated 2007E EBITDA” $71.60 Acquisition Price/2007E EBITDA 2) 4.82x Drybulk High Dividend Yield Sector EV/20
Slide 7: Star Bulk Highlights
Star Bulk Highlights %* Strong expected financial performance %& ~80% EBITDA margins - Peer group average ~71%") * Significant growth potential - initial low leverage balance sheet (approx. 11%()) * Ability to pay significant dividends %* Sustainable cash flows - ~75% charter cover under existing ch
Slide 8: Redomiciliation Merger
Redomiciliation Merger * Rationale: Enjoy similar tax environment as peer group E: a SEA naemme acauismon corp, Delaware, U.S. Outstanding Shares 18,867,500 65.0% Public 10,159,424 _35.0% Officers & Directors 29,026,924 100.0% * Star Maritime securities (both shares and warrants) convert into “right
Slide 9: Significant Discount to Public Comparables
A BstarBuk Significant Discount to Public Comparables Share Price Example L $10.21 Existing Shares Outstanding 29,026,924 New Shares Issued to TMT 12,537,645 Total Shares Outstanding (Post Merger) 41,504,569 Market Capit: n $424,374,249 Net Debt (No redemption) $37,400,000 EV $461,774,249 mplied Tra
Slide 10: Expected High Q1 Dividend Yield
Expected High Q1 Dividend Yield %* Star Bulk expects to pay estimated first quarterly dividend of $0.325 16%: 3 © 12%: S 2 5 8% 2 2 O 4% 0% Share$ $10.21 $11.00 $11.50 $12.00 $12.50 $13.00 $13.50 $14.00 lm Star Dividend Yield Peer Group Dividend Yield (1) Star Bulk estimates as of March 12, 2007
Slide 11: Attractive Valuation Compared to Peer Group
Attractive Valuation Compared to Peer Group * Based on a Share Price of $10.21 2007E Dividend Yield” EV/2007E EBITDA” 1204 10.6x 16 9.6x inne are 95, ASS wx] 9.7% 10.1% ome . 65x Hm Comps — Average I Comps— Average H2'07 - H1 ‘08 Fixed Charters ? 89% P/Net Asset Value?) wo % 150% 80% ~ 15% ve esa (a
Slide 12: Company Overview
Company- Overview \_| Bar Bulk CARRIERS CORP.
Slide 13: Mission Statement
sion Statement Our aim is to be a leading global drybulk shipping company. We shall seek to enhance shareholder value by: Delivering outstanding services to our customers Operating quality vessels Employing transparent, cost-efficient ship management practices Maintaining the most stringent safety s
Slide 14: European and Asian Shipping Leaders Align
European and Asian Shipping Leaders Align Star Bulk’s Future Co-Chairmen - Petros Pappas (Oceanbulk) and Nobu Su (TMT) successful business strategies and cultures harmonize Petros Pappas Nobu Su % Founded in 1989 Pawan % Established in 1958 ed % Over 35 drycargo ships owned % In excess of 50 vessels
Slide 15: Experienced Management and Board to Govern Star Bulk
Experienced Management and Board to Govern Star Bulk %* Strong Leadership with Outstanding Track Record AKIS TSIRIGAKIS CEO, President & Director GEORGE SYLLANTAVOS. CFO, Director Over 28 years of experience in all aspects of commercial and technical ship management Founder & MD, Combine Marine Inc.
Slide 16: Corporate Structure
Corporate Structure Merge Into PSkatumnecsnracon ——> FSGrBitkmeocee her Bul wecen se 100% Ownership Capesize Panamax Supramax
Slide 17: Fleet Profile
Fleet Profile Charter Actual Th ne Name(t) Type Dwr Charter Type__Term®) __ Charter Rates) Star Alpha Capesize 175,075 1992 $47,000 Time Charter Star Gamma__ Supramax 53,098 2002 $28,500 Time Charter ayn $28,500 Star Epsilon Supramax 52,402 2001, $24,500 Time Charter 2 yrs $25,550 Star Theta Suprama
Slide 18: Advantages & Growth
Advantages & Growth \_| Bar Bulk CARRIERS CORP.
Slide 19: Competitive Advantages
Competitive Advantages * Strong strategic guidance at Board level %* Recognized market outlook strategists %* Unique perspective on Asian shipping markets %* Long-term relationships with customers and commodity end-users %* Focus on larger vessels — Capesize, Panamax, Supramax %* Capture demand grow
Slide 20: Initial Low Leverage: Dry Powder for Acquisitions
Initial Low Leverage: Dry Powder for Acquisitions * Star Bulk leveraged at approx. 11% “!) - Peer group average approx. 40% %* Growth without the need for additional equity * Example (2) %* If Star were to increase it’s debt level to 40% (equivalent to peers), should allow $180 - $200M of additional
Slide 21: Ship Management Structure
ent Ship Management Structure %* Leverage our CEO’s extensive third-party ship management experience * Distinctive ship management composition *& Selected vessels managed in-house %& Remaining fleet managed by third-party ship managers * Maintain key expertise in-house * Ability to effectively overs
Slide 22: Forecasted Financials
Star Bulk Forecasted-Financials \_| Bar Bulk CARRIERS CORP.
Slide 23: Expected Operating Margins for First Full Fiscal Year
Expected Operating Margins for First Full Fiscal Year %* Estimated Daily Breakeven Analysis %* Fleet-wide average net TCE rate of $31,140 * Low cash outflow - approx. 26% of net revenue $35,000 $31,140 $31,140 Free Net $30,000 Cash Flow Income $25,000 (000s) (000s) Operating Expenses S2a.o09, 17,808
Slide 24: Quarterly Forecasted Dividend
Quarterly Forecasted Dividend Forecasted First Full Operating Quarter “) ($ in 000s) Gross Charter Revenue $23,192 Charter Commissions (946) Net Charter Revenue $22,246 Vessel Mgmt. Fees & OpEx 3,541 G8A Expenses 875 Interest Expense 650 Maintenance CapEx 500 Total Cash Expenses $5,566 Available Cas
Slide 25: Estimated Annual Performance
Estimated Annual Performance Annual Fleet Aggregate Figures (millions) __ Margins Purchase Price $345.24 ‘TCE Revenue (Net of Commission, ~358 voyage days, $249,118 per day) Interest Expense Cashflow Dividend Payout 54.03 (1). This table shoutd be read in conjunction with the respects for important
Slide 26: Industry Highlights
Industry-Highlights \_| Bar Bulk CARRIERS CORP.
Slide 27: China: Sustainable Growth Pattern
China: Sustainable Growth Pattern * Japan and Korea are a clear roadmap to China’s potential dustrial Production sapan — Korea china 1200 1000 Index, Base Year = 100 200 02 4 6 & 10 12 14 16 18 20 22 24 26 28 30 Years from Base Japan Base Year = 1959 Korea Base Year = 1980 China Base Year = 1995 Der
Slide 28: Continued Dry Bulk Commodity Demand
Continued Dry Bulk Commodity Demand %* 2000 - 2006, ton-mile demand in the dry bulk sector increased by 39%, equivalent to an average annual increase of 5.68% Ton Mile Demand (Billion ton-miles) MINOR BULKs MAJOR BULKs * Alumina * Iron Ore * Bauxite * Coal * Fertilizers * Grain * Steel Products
Slide 29: Limited Drybulk Vessel Supply
Limited Drybulk Vessel Supply * Shipyards at full capacity through 2009 — priorities are LNG, Tankers, Containerships % Orderbook has declining delivery schedule - fleet >25 years increases * Port congestion augments supply constraints * 60% of berths cannot handle Capesize or Panamax vessels in Chi
Slide 30: Demand Driver: Increased Ton-Miles
Demand Driver: Increased Ton-Miles %* Cargoes sourced further away = increased ton-miles Percent of Chinese Iron Ore Imports by Country of Origin 50.0% 46.8% 45.0% 41.2% ree 40.0% 38.4%, 39.3% 37.7% 37.6% seta 35.0% 30.0% | brat a 25.0% 20.0% 15.0% 10.0% + 2000 2001 2002 2003 2004 2005 May-06
Slide 31: Global Trading Routes
Global Trading Routes * Long voyages result in higher ton miles From Americas Australia —— __iIrenore —_ coal — Grain son = ————— = See SS
Slide 32: Star Bulk Highlights
Star Bulk Highlights %* Strong expected financial performance %& ~80% EBITDA margins - Peer group average ~71%") * Significant growth potential - initial low leverage balance sheet (approx. 11%()) * Ability to pay significant dividends %* Sustainable cash flows - ~75% charter cover under existing ch
Slide 33: Press Release Exhibit 99.2
Exhibit 99.2 PRESS RELEASE Star Maritime Acquisition Corp. Foulk Road Wilmington, Delaware 19803 www.starmaritimecorp.com FOR IMMEDIATE RELEASE March 15, 2007 Investor Relations / Financial Media : Nicolas Bornozis President Capital Link, Inc. Park Avenue, Suite 1536 New York, NY 10169 Tel. (212) 66