Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Wells Fargo Industrials Conference 2010
22 slides from Euroseas's conference presentation, June 2010
Slide 1: Company Presentation, Wells Fargo Industrials Conference
Company Presentation Wells Fargo Industrials Conference June 2010
Slide 2: Forward-Looking Statements
Forward-Looking g Statements Statements in this presentation may be "forward-looking statements" within the meaning of federal securities laws. The matters discussed herein that are forward forward-looking looking statements are based on current management expectations that involve risks and uncerta
Slide 3: Introduction & Milestones
Introduction & Milestones » Euroseas is a provider of worldwide dry cargo transportation services and owner of ships • Drybulk carriers – transporting iron ore, coal and grains and minor bulks • Container and multipurpose ships – transporting dry and refrigerated cargoes » Corporate Profile • Formed
Slide 4: Current Fleet (including recent acquisition)
Current Fleet ((includingg recent acquisition) q ) Size Year Acquisition Name Type DWT TEU Built Year Acq'd Pantelis Panamax 74,020 - 2000 2009 Eleni P Panamax 72,119 - 1997 2009 Irini Panamax 69,734 - 1988 2002 Aristides NP Panamax 69,268 , - 1993 2006 Monica P Handymax 46,667 - 1998 2009 Maersk No
Slide 5: 2009: An Opportunity to Renew
2009: An Opportunity pp y to Renew Took advantage g of dropp in pprices to renew fleet at pprices of about 35-40% of the levels prevailing in the summer of 2008 » Bought: • Monica P - blt ’98 bulker for $18m (Feb-’09) • Eleni P – blt ’97 bulker for $18.5m (Mar-’09) • Pantelis - - blt ’00 bulker for
Slide 6: Euroseas Acquisitions 2005-2010
Euroseas Acquisitions q 2005-2010 70 Ioanna P 60 Dry Bulk (Panamax) Containership (1700 teu) 50 million $, 15-yr old vesselss 40 Gregos 30 Aristides NP Maersk Noumea Artemis Tiger Bridge Clan Gladiator 20 Xingang Despina/Jonathan Pantelis Tasman Manolis P Eleni P Trader M i P Monica Angeliki P 10 0
Slide 7: Investment Opportunities in 2010
Investment Opportunities pp In 2010 1 Year TC Rates 1-Year 10 yr old Price Historical Range 10-yr 90,000 90 80,000 Panamax 72-75,000 dwt 80 M ax, 19 9 9 - 2 0 0 9 Containership p 1700 teu A ver ag g e,, 19 9 9 - 2 0 0 9 70,000 70 M in, 19 9 9 - 2 0 0 9 60,000 60 C ur rent , M ay- 2 0 10 50,000 50 $
Slide 8: Pursuing Investment Opportunities & Funding Growth
Pursuing g Investment Opportunities pp & Funding g Growth » Formed Euromar LLC to take advantage of • A Joint Venture of Euroseas with Eton Park and Rhône Capital, two private investment firms • Will pursue investment opportunities in shipping • Total commitments of up to $175m: $25m from Euroseas a
Slide 9: Vessels Employment Chart – Bulkers
Vessels Employment p y Chart – Bulkers 100+% in 2010 / 60 % in 2011 / 23% in 2012 IRINI Spot Pool / 100% FFA-10,950 $17,500 $17,500 MONICA P Spot Pool / 100% FFA-10,970 ELENI P. $15,350 $23,500 PANTELIS $25k $17,500 ARISTIDES N.P. $12.3k $18,900 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '1
Slide 10: Vessels Employment Chart – Containerships
Vessels Employment p y Chart – Containerships p ((excludingg new acquisition) q ) Coverage abt 50% in 2010 / abt 20% in 2011 Container Ship p Vessels DESPINA P Laid-up Being re-activated Multi-purpose Vessel p JONATHAN P Laid-up KUO HSIUNG $3 850 $3,850 $3 850 $3,850 $5 300 $5,300 CAPTAIN COSTAS $40
Slide 11: Fleet Management & Operational Performance
Fleet Management g & Operational p Performance » Management is performed by Eurobulk Ltd., an affiliate • Top management – 100+ years of industry Daily costs per vessel (1) shipping experience 10,000 • 4th generation of Pittas’ family managing 8,000 secondhand seco d a d ddry-cargo y ca go sships ps
Slide 12: Rapid Debt Repayment
Rapid Debt Repayment Debt Repayment Schedule – As of 6/1/2010 Cash Flow Breakeven $30 » Cash Flow Breakeven rough estimate $25 for next 12 months: $/day $20 OPEX(1) $ 5,500 million $15 3.7 G&A $ 650 25.6 2.4 8.0 Interest $ 500 $10 13.8 1.0 2.2 9.6 Drydock $ 850 11.6 $5 8.4 7.1 7.0 4.8 Loan Rpmt(2) $
Slide 13: Market Overview
Market Overview
Slide 14: Dry Bulk & Containerized Trade Growth, 1987-2009 and 2010
Dryy Bulk & Containerized Trade Growth,, 1987-2009 and 2010 14% 12% 10% Container Average 1990-2009: 8.8% p.a. 8% 6% 4% Dry Bulk Average 1990-2009: 3.2% p.a. 2% 0% (E) (F) -2% -4% Dry Bulk Container -6% -8% -10% 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 Source: Clarksons Page
Slide 15: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p,a,) 2007 2008 2009 2010f 2011f 2012-14f USA 2.5 1.1 -2.4 3.1(2.7) 2.6 (2.4) 2.4 Eurozone 2.7 0.8 -4.1 1.0 (1.0) 1.5 (1.6) 1.8 Japan 1.9 -0.7 -5.2 1.9 (1.7) 2.0 (2.2) 1.9 China 11.2 9.0 8.7 10.0 (10.0) 9.9(9.7) 9.7 India 90 9.0 73 7.3 57 5.7 8 8(7 7) 8
Slide 16: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk y Age g Profile & Orderbook Deliveryy Schedule Dry Bulk Age Profile Dry Bulk Orderbook (1) m dwt m dwt 140 170.00 170 33 2% 33.2% For delivery in 2010/11 160.0 130 27.3% (vessels): 150.0 120 140.0 110 Cape 305/269 18.3% 130.0 68.6 100 Panamax 279/314 120.0 62.80 110 0 110.0 90 H’max 377/296
Slide 17: Containership Age Profile & Orderbook Delivery Schedule
Containership p Age g Profile & Orderbook Deliveryy Schedule Containership Age Profile(1) Container Orderbook (1) m TEU 6.8 48 % m TEU 14 3% 14.3% 6.4 2.0 6.0 16.0% 5.6 11.05% 5.2 1.6 4.8 3.10 13 .8% 44 4.4 0 79 0.79 4.0 22.8% 1.2 5.6% 1.26 3.6 3.2 0.6 2.8 15.6% 1.43 4.8% 0.8 0.54 2.4 1.80 1.46 0.44
Slide 18: Containership Laid-up Fleet: Keeps Shrinking
Containership p Laid-up p Fleet: Keeps p Shrinking… g As of end-May 2010 the th laid- l id up fleet declined to below 5% o fthe existingg fleet Source: Alphaliner Page 18
Slide 19: Contex Indices
Contex Indices 30,000 1100 teu - geared 25,000 1700 teu - geared 2500 teu - geared 3500 teu - gearless 20,000 4250 teu - gearless $/day 15,000 10,000 5,000 0 07 8 8 8 8 9 9 9 9 0 10 0 0 0 00 0 0 0 00 1 20 0 20 20 20 20 20 20 20 /2 /2 /2 / / / / / / / 4/ 0 /1 /4 /7 10 /1 /4 /7 10 /1 8/ /1 17 15 15 15
Slide 20: Market Trends - 2010
Market Trends - 2010 » Drybulk – a volatile market environment expected • Drybulk y trade ggrowth is expected p to be ppositive for 2010 – Year-to-date strength based on recovering global economy, Chinese imports and congestion – Global economic recovery to set the trend • Record scheduled deliverie
Slide 21: Euroseas Market Position
Euroseas Market Position We have what it takes … » Strong Balance with low leverage & funds available for investment » Joint Venture that gives us access to an additional equity of up to $150m » One of the lowest cost operating structures » Team and experience … to take advantage g of the opportunit
Slide 22: Euroseas Contacts
Euroseas Contacts Euroseas Ltd. Aethrion Center 4, Messogiou & Evropis Street 151 25 Maroussi, Greece www.euroseas.gr euroseas@euroseas.gr Tel. +30-211-1804005 Fax.+30-211-1804097 or, Tasos Aslidis Nicolas Bornozis Chief Financial Officer Investor Relations Euroseas Ltd. Capital Link, Inc. 11 Canter