Eurodry Ltd. · NASDAQ:EDRY
Eurodry — IPO Roadshow (May 2018)
25 slides from Eurodry's IPO roadshow presentation, May 9, 2018
Slide 1: EuroDry Ltd. Company Presentation May 2018
EuroDry Ltd.Company PresentationMay 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation may be "forward-looking statements" within the meaning of federal securities laws. The matters discussed herein that are forward-looking statements are based on current management expectations that involve risks and uncertainties that may re
Slide 3: Euroseas - Introduction & Milestones
Euroseas - Introduction & Milestones Euroseas Ltd. (“Euroseas”), the parent company of EuroDry Ltd. (“EuroDry”) until effectiveness of the spin off of EuroDry, has been a provider of worldwide ocean-going transportation services:Drybulk carriers – transport major bulks (iron ore, coal and grains) an
Slide 4: Panamax 1-yr TC Rates
4 Panamax 1-yr TC Rates Source: Clarksons Markets fluctuated widely over the past 2 decades
Slide 5: Pillar of Success: Euroseas Fleet Management & Operational Performance
Pillar of Success: Euroseas Fleet Management & Operational Performance Fleet utilization rate of Euroseas in excess of 99.4% over last 5 yearsOutstanding safety and environmental recordFor 2018Q1, operational fleet utilization 99.7% and commercial 98.4%Overall costs achieved are amongst the lowest o
Slide 6: A Strategic Evolution
A Strategic Evolution A traditional Greek shipping company that has adapted its strategy to the changing times and opportunities… BULKERS CONTAINER-SHIPS PUBLIC MARKETS PRIVATE EQUITY 1990’s 2000’s 2005-2007 2010 … building on its time-tested strengths: love for operating ships, cost control and low
Slide 7: Decided to spin-off of Euroseas' drybulk fleet into EuroDry
Decided to spin-off of Euroseas’ drybulk fleet in a separate company, EuroDry Drybulk vessels (except Monica P which has been sold and will delivered in June 2018) will be contributed to EuroDry along with their respective loans and other assets and liabilitiesEuroDry’s fleet will consist of: 3 newb
Slide 8: Spin-Off Mechanics
Spin-Off Mechanics 8 EuroDry shares distributionRecord Date is expected to be May 23, 2018 (“Record Date”)Euroseas shareholders of record as of Record Date will receive 1 EuroDry share for every 5 Euroseas shareThere are 11,274,126 shares of Euroseas outstanding as of May 9th, thus, there will be ap
Slide 9: Reasons for the Spin-Off
Reasons for the Spin-Off 9 The objective of Euroseas is to maximize shareholder valueCurrently, Euroseas stock trades around 40% of NAV while most public peers - which are all “pure-play” companies - trade close to their NAVEuroseas mixed fleet strategy is likely the main reason for the trading disc
Slide 10: Fleets After Spin-Off
Fleets After Spin-Off Note: Fleets do not include Monica P, a 46,667dwt bulker, that entered in an agreement to be sold (to be delivered to the buyers by June 30, 2018)
Slide 11: EuroDry Ltd. – A Drybulk Platform for Growth
EuroDry Ltd. – A Drybulk Platform for Growth
Slide 12: Point in Market Cycle – Drybulk Panamax 1-Year Time Charter Rate
Point in Market Cycle – Drybulk Panamax 1-Year Time Charter Rate $m $/day Source: Clarksons Panamax 10-Year Historical Price Range ?
Slide 13: Drybulk 1-Yr Charter Rates, 2010-2018
Drybulk 1-Yr Charter Rates, 2010-2018 Source: Clarksons Note: Since April-1 the tess-58 Supra rates have replaced tess-52 in the Supramax index Drybulk Markets Have Recovered From All Time Historical Lows
Slide 14: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Sources: GDP - International Monetary Fund: 2012-2017, 2018/19 /20 IMF Forecasts (Apr-18). Trade – Drybulk: 2012-2017: Clarksons 2018– Clarksons (Mar-18), 2019 /20- Company Estimates. Synchronized World Economic Recovery for the First Time Since 2010
Slide 15: Orderbook-to-Fleet Ratio, Drybulk Fleet
15 Orderbook-to-Fleet Ratio, Drybulk Fleet Source: Clarksons Orderbook as Percentage of Total Fleet Near Lowest Level of the Last 20+ Years
Slide 16: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Large Vessels Dominate Orderbook Large bulkers are still young Dry Bulk Orderbook Dry Bulk Age Profile 7% of the fleet is over 20 yrs old 9.2% 16.0% 14.2% 11.1% 6.0% 4.9% 2.4% 2.2% 3% 4.1% For delivery in 18/19/20+ as of Mar-18):Cape 47/63/70Panamax
Slide 17: Outlook Summary – Bulkers
Outlook Summary – Bulkers Market in 2017 was characterized by robust demand and a depleting orderbook1-Yr TC Earnings averaged 70% higher than 2016 still well below historical average levels For 2018 and 2019, we expect further improvements in the demand/supply balance Barring any significant slow-d
Slide 18: EuroDry Fleet and Net Asset Value
Name T Ekaterini Kamsarmax 82,000 2018 Xenia Kamsarmax 82,000 2016 ‘Alexandros P_—_Ultramax 63,500 2017 Eirini P Panamax 76,000 2004 Pantelis Panamax 74,020 2000 Tasos Panamax 75,100 2000 Drybulk 6 vessels 452,620 89 (1) Based on valuations by Howe Robinson as of March 31, 2018 As of (million USD 3/
Slide 19: Employment Chart – Bulkers
Employment Chart – Bulkers As of May, 2018 : 57% in 2018 & 33% in 2019 basis min durations Coverage:
Slide 20: Drybulk Vessel Debt Repayment Profile & Cash Flow Breakeven
Drybulk Vessel Debt Repayment Profile & Cash Flow Breakeven Drybulk Fleet Debt Repayment Schedule Cash Flow Breakeven (*) Excludes total balloons of $10.8m due in 2018 and 2019 $2.8m $8.8m $8.0m $18.6m Cash Flow Breakeven - budget estimate for next 12 months: $/vessel/dayOPEX $ 5,000G&A $ 1,000Inter
Slide 21: Cash Flow & NAV Sensitivity to Market Changes
Cash Flow & NAV Sensitivity to Market Changes Management believes EuroDry is positioned to take advantage of a potential market recoveryAbout 43% of the remaining available days in 2018 are contracted with fixed charter rates leaving significant capacity (days) available to benefit from a market upt
Slide 22: Dividend Policy Consideration
Dividend Policy Consideration 22 Euroseas paid a quarterly dividend to its common stock for thirty-two consecutive quarters from its inception until November 2013 when its Board of Directors decided to suspend its quarterly dividend in order to focus every resource available in exploiting investment
Slide 23: EuroDry Management & Board of Directors
EuroDry Management & Board of Directors 23 Corporate structure and governance similar to Euroseas Also, same management team and Board of DirectorsManagement teamAristides J. Pittas, Chief Executive Officer & PresidentTasos Aslidis, Chief Financial Officer & TreasurerSimos Pariaros, Chief Administra
Slide 24: Looking Ahead: Opportunities & Challenges
Looking Ahead: Opportunities & Challenges Start of a new phase for Euroseas & EuroDryFocused platforms with access to the capital marketsBoth shipping sectors at an attractive point in the cycle for expansionOrderbook to one of the lowest levels of the last 15 years minimal supply side pressuresWo
Slide 25: Euroseas Contacts
Euroseas Contacts EuroDry Ltd.c/o Eurobulk Ltd4, Messogiou & Evropis Street151 24 Maroussi, Greecewww.eurodry.grinfo@eurodry.grTel. +30-211-1804005 Fax.+30-211-1804097or, Tasos AslidisChief Financial Officer EuroDry Ltd.11 Canterbury LaneWatchung, NJ 07069aha@eurodry.gr Tel: 908-3019091 Fax: 908-301