Teekay Corporation Ltd. · NYSE:TK
Teekay — Merger or Acquisition (March 2004)
19 slides from Teekay's merger presentation, March 2004
Slide 1: The Acquisition of Naviera F. Tapias S.A.
The Acquisition of Naviera F. Tapias S.A. Investor Presentation March 2004 NYSE: TK www.teekay.com
Slide 2: Forward Looking Statements
Forward Looking Statements This document contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management’s current views with respect to certain future events and performance, including statements regarding: the impact of th
Slide 3: Transaction Summary
Transaction Summary § Teekay will acquire Naviera F. Tapias S.A., Spain’s largest provider of marine energy transportation § Total enterprise value of approximately $810 million (cash and assumption of existing debt), and $540 million in newbuilding commitments § Large modern fleet of LNG carriers a
Slide 4: Overview of Naviera F. Tapias S.A.
Overview of Naviera F. Tapias S.A. § Privately held shipping group formed in 1991 § Fully integrated shipping company § Specializing in long-term contracts with key Spanish customers § Two major business streams: § LNG shipping • Four LNG carriers • All on long-term charters to major energy companie
Slide 5: Investment Rationale
Investment Rationale § Provides attractive entry for Teekay into high growth LNG shipping sector § Further extends Teekay’s position as the world’s leading shipper of seaborne oil § Positions Teekay for further growth in Spain through joint venture with existing Tapias shareholders § Significantly i
Slide 6: Immediate Entry into LNG Shipping in Profitable Low Risk Manner
Immediate Entry into LNG Shipping in Profitable Low Risk Manner § All four LNG carriers on solid long-term charter contracts with average length of over 20 years § Modern fleet with average age of less than one year § Customers consist of leading, investment grade Spanish energy companies Vessel Nam
Slide 7: Strategic Platform for Future LNG Growth
Strategic Platform for Future LNG Growth § LNG is the highest growth segment in energy shipping • 13% growth in LNG trade in 2003, and trade expected to double by 2010 èCAGR of over 10% • Global LNG production capacity expected to grow five fold by 2030 è will require 550 - 600 LNG carriers vs. 160
Slide 8: Leveraging Core Competencies to Meet Customers' Needs
Leveraging Core Competencies to Meet Customers’ Needs § Teekay’s attributes meet all of the key success factors for LNG shipping • Reputation for quality and safety • Trusted partner to the world’s leading energy companies • Strong balance sheet and access to capital markets § We are following our c
Slide 9: Extends Position as World's Leading Oil Shipper
Extends Position as World’s Leading Oil Shipper § Teekay already ships more than 10% of the world’s seaborne oil § Teekay has now acquired the leading crude oil transportation provider in Spain § Adds 9 Suezmax tankers with an average age of less than 6 years § Positions Teekay as the second-largest
Slide 10: Attractive Portfolio of Tankers and Charter Contracts
Attractive Portfolio of Tankers and Charter Contracts Further extends long-term fixed-rate segment Vessel Name DWT Year built Charterer Remaining Contract Term Tapias N/B 159,500 Sept. 2005 * CEPSA 20 years Tapias N/B 159,500 Oct. 2004 * CEPSA 20 years Iria Tapias 159,500 2001 CEPSA 17 years Nuria T
Slide 11: Spain Offers Future Growth Potential
Spain Offers Future Growth Potential § Teekay has become the #1 energy transporter to Spain § Tapias & Teekay Shipping S.L. • Newly-formed joint venture positioned for future growth in Spain • Spain is one of the world’s largest and fastest growing energy consumers • World’s third largest importer o
Slide 12: Bond-like Cash Flow Profile
Bond-like Cash Flow Profile Tapias’ cash flow stream resembles investment profile of a bond 140.0 120.0 100.0 Millions USD 80.0 60.0 40.0 20.0 0.0 2004** 2005 2006 2007 2008 2009 2010 2011 2012 2013 Suezmax Spot and short-term fixed-rate contracts Suezmax long-term fixed-rate contracts ** Annualized
Slide 13: High Quality Cash Flow – The Transformation Continues
High Quality Cash Flow – The Transformation Continues Teekay's Cash Flow from Vessel Operations in Fixed-Rate Segment 440 400 360 320 CAGR = 45% ($) millions 280 240 200 160 120 80 40 0 * 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Shuttle Tankers Conventional Tankers Offshore Tapias * Annuali
Slide 14: Tapias Acquisition Self-Financed by Long-Term Contracts
Tapias Acquisition Self -Financed by Long-Term Contracts 140 120 100 Millions (USD) 80 60 40 20 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total interest due Total principal due CFVO from long-term fixed- rate contracts Total CFVO CFVO = cash flow from vessel operations Teekay Shipping Corp
Slide 15: Total Fixed Charges Covered by Fixed Rate Cash Flow Alone
Total Fixed Charges Covered by Fixed Rate Cash Flow Alone Fixed Charges Coverage from Fixed Rate Segment in 2005 in $ millions Projected 2005 Cash Flow From Vessel Operations - Fixed-rate Segment Only $ 390.0 * (A) Projected Fixed Charges Net Interest Payments $ 130.0 * Principal Payments $ 210.0 *
Slide 16: Pro Forma Capital Structure
Pro Forma Capital Structure Teekay as at December 31, 2003 adjusted for the acquisition of Tapias (in thousands of U.S. dollars) Acquisition Pro Forma Teekay of Tapias Consolidated Cash and cash equivalents 292,000 - 292,000 Total Debt 1,637,000 810,000 ** 2,447,000 Net Debt 1,345,000 810,000 2,155,
Slide 17: Transaction Highlights
Transaction Highlights § Teekay has acquired a unique and valuable asset § Provides growth platform into LNG, the most dynamic area in shipping, with very low risk § Further builds Teekay’s crude transportation franchise § Enables Teekay to follow its customers into new areas § Establishes Teekay as
Slide 18: Appendix – Cash Flow from Vessel Operations Reconciliation
Appendix – Cash Flow from Vessel Operations Reconciliation § Cash flow from vessel operations represents income from vessel operations before depreciation and amortization expense. Cash flow from vessel operations is included because such data is used by certain investors to measure a company’s fina
Slide 19: Appendix – Cash Flow from Vessel Operations Reconciliation Continued
Appendix – Cash Flow from Vessel Operations Reconciliation Continued § The following table reconciles the Company's income from vessel operations with cash flow from vessel operations for the periods presented on slide 13 and 15: Year Ended Year Ended Year Ended Year Ended December 31, 2004 December