Trico Marine Services — Proxy Contest (June 2009)
14 slides from Trico Marine Services's proxy contest presentation, Jun 10, 2009
Slide 1: 2009 Annual Meeting of Stockholders
2009 Annual Meeting of Stockholders June 10, 2009
Slide 2: Forward Looking Statements and Third Party Information Sources
Forward Looking Statements and Third Party Information Sources This presentation contains certain statements that maybe be deemed to be "forward-looking statements" within the meaning of the Securities Act of 1933 and the Exchange Act of 1934. All statements, other than statements of historical fact
Slide 3: Subsea Acquisitions of DeepOcean and CTC Marine Provide Solid Growth Opportunities
Subsea Acquisitions of DeepOcean and CTC Marine Provide Solid Growth Opportunities Increased Trico's exposure to the growing subsea business, reduced its exposure to the declining OSV business at the right time and landed significant subsea operating experience Trico is now 2/3rds technology based a
Slide 4: Subsea Activity Is Expected To Continue To Grow At Double Digit Rates
Subsea Activity Is Expected To Continue To Grow At Double Digit Rates Installed Base - 2003A Through 2013E 2003A - 2013E CAGR = 14% 2008A - 2013E CAGR = 13% The installed base is expected to double by the end of 2013 as it doubled between 2003 and 2008 - driving stable opex spending Source: Quest Of
Slide 5: Dramatic Growth In Subsea Capex Spending
Dramatic Growth In Subsea Capex Spending Global Subsea Tree Orders - 2003A Through 2013E Annual subsea tree orders are projected to accelerate over the next five years, increasing customer capex spending Source: Quest Offshore Resources, Inc.
Slide 6: Global Supply Vessel Count Is Growing While Demand Is Declining
Conversely, Global Supply Vessel Count Is Growing While Demand Is Declining Global rig count (active) to decrease 10% from 2008 to 2010 Meanwhile, supply vessel count to increase 15% from 2008 to 2010 Excess supply cannot be absorbed by other "demand drivers" Source: Jefferies Research. Creates Huge
Slide 7: Resulting in a Supply/Demand Imbalance Expected To Last Several Years
Resulting in a Supply/Demand Imbalance Expected To Last Several Years Pricing/utilization continues to deteriorate - especially for the oldest supply vessels On a positive note, subsea services and FPSO units are driving some additional demand for supply vessels...just not nearly enough In 2009, the
Slide 8: Trico Has the Highest Percentage of International Business of All Publicly-Traded US Companies
Trico Has the Highest Percentage of International Business of All Publicly-Traded US Companies Trico has integrated the resources of its three divisions to successfully bid for projects on a joint basis throughout the world Petrobel BOETC
Slide 9: Successful Integration of DeepOcean and CTC Marine Has Moderated North Sea Seasonality
This integration has resulted in significant geographic diversification for DeepOcean and CTC Marine China's impact is the least understood element in the offshore industry Successful Integration of DeepOcean and CTC Marine Has Moderated North Sea Seasonality North Sea 36% Americas 8% SE Asia 9% Oth
Slide 10: Investors ascribe higher multiples to specialized, diversified international service companies
Investors ascribe higher multiples to companies providing specialized services and diversified international end-market exposure These businesses have outperformed U.S.-centric and commodity-service businesses significantly over the past three and a half years EV/2008A EBITDA Price Performance 1/1/0
Slide 11: Subsea Technology, Differentiation and Fewer Competitors Create Higher P/E and P/CF Multiples
Source: Factset Research Systems and company filings. Based on IBES consensus estimates. US OSV peers include Gulfmark, Hornbeck, Seacor and Tidewater. European OSV peers include Bourbon, Deep Sea Supply, DOF, Eidesvik Offshore, Farstad, Havila Shipping, Siem Offshore and Solstad. Subsea peers inclu
Slide 12: Subsea Service Companies Tend To Use Less Capital, Have Higher Returns Than OSV Companies
Subsea Service Companies Tend To Use Less Capital, Have Higher Returns Than OSV Companies Source: Factset Research Systems and company filings. (1) Note: Trico has a significant amount of investments (e.g., Active Subsea) carried on the balance sheet in advance of future growth and EBITDA generation
Slide 13: Reducing Debt Is Primary Objective Into 2011
Reducing Debt Is Primary Objective Into 2011 Principle amount of convertible debt reduced by $100m through completion of exchange and voluntary conversions A total of $25m in cash paid resulting in net debt reduction of $75m 4.1m shares issued - equivalent to issuing stock at $18.30 per share to pay
Slide 14: In Conclusion, Going Forward, Subsea Activity Will Grow While OSV Fundamentals Falter
Source: Jefferies Research and Quest Offshore Resources, Inc. Note: Annual well completions or subsea trees (capex) and the installed tree base will drive future opex spending and demand for subsea services. In Conclusion, Going Forward, Subsea Activity Will Grow While OSV Fundamentals Falter Subsea