Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Investor Presentation (September 2008)
24 slides from Euroseas's investor presentation, September 2008
Slide 1: Company Presentation September 2008
Company Presentation September 2008
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: Introduction & Milestones
Introduction & Milestones » Euroseas is a provider of worldwide dry cargo transportation services. We own: • Drybulk carriers – transporting iron ore, coal and grains and minor bulks • Container and multipurpose ships – transporting dry and refrigerated cargoes » Formed by industry veterans in June
Slide 4: Current Fleet – 16 Vessels
Current Fleet – 16 Vessels Size Year Name Type DWT TEU Built P Irini Panamax 69,734 - 1988 Aristides N.P. Panamax 69,268 - 1993 Ioanna P. Panamax 64,873 - 1984 Gregos Handysize 38,691 - 1984 Nikolaos P. Handysize 34,750 - 1984 Despina P. Handysize 33,667 1,932 1990 Jonathan P. Handysize 33,667 1,932
Slide 5: Management Team & Board
Management Team & Board » Aristides J. Pittas – Chairman, Chief Executive Officer & President • 23 years shipping experience / 4th generation of Pittas family • In charge of Pittas’ family shipping interests since 1994 » Anastasios (Tasos) Aslidis – Chief Financial Officer & Treasurer • 20 yyears sh
Slide 6: Business Strategy – Generate Consistent Shareholder Returns
Business Strategy – Generate Consistent Shareholder Returns » Focus on timely and selective acquisitions of quality secondhand vessels • Drybulk carriers & Container ships • Segments with lower supply growth & multiple trading routes and cargoes » Balanced employment between period and spot charters
Slide 7: Market Overview
Market Overview
Slide 8: Drybulk Rates & Orderbook Delivery Schedule
Drybulk Rates & Orderbook Delivery Schedule Panamax Dry Bulker(1) Dry Bulk Orderbook (1) m USD $/day m dwt 70 90,000 110 20.8% 80,000 100 60 90 70,000 50 80 60,000 70 59.09 14.7% 10.1% 40 50,000 60 30 40,000 50 28.87 31.36 40 7.2% 30,000 6.7% 19.34 20 30 11.18 20,000 8.67 13.60 20 10.30 10 7.70 14.9
Slide 9: Containership Rates & Orderbook Delivery Schedule
Containership Rates& Orderbook Delivery Schedule Handysize Containership(1) Container Orderbook (1) 14.4% m USD $/day m TEU 12.3% 10.7% 30 35,000 1.8 15.7% 30,000 25 1.4 13.8% 25,000 20 1.20 20,000 1.0 1.52 1 57 1.57 15 1.64 0.97 15,000 10 0.6 10,000 0.20 0.12 0.10 0.04 5 5,000 0.2 0.21 0.29 0.09 0.
Slide 10: World GDP Growth & Trade
World GDP Growth & Trade 2006 2007 2008/2009 USA (2) 3.3% 2.5% 1.4% / 1.3% Eurozone(2) 3.0% 2.7% 1.7% / 1.3% Japan (2) 2.8% 1.9% 1.4% / 1.3% China (2) 10.5% 11.2% 9.8% / 9% Other Asia (1) 6.4% 6.5% 6.2% / 6% TOTAL WORLD 5.4% 4.9% 3.8% / 3.7% (3) Source: (1) Marsoft Inc. (2) Economist (3) IMF Page 10
Slide 11: Investment & Employment Strategy, Operating Performance
Investment & Employment Strategy Operating Performance
Slide 12: Example of Drybulk Investment: m/v Gregos
Example of Drybulk Investment m/v Gregos 30 » Purchased m/v Gregos in Feb-2007, a 38,434 dwt 1984 built drybulk vessel for $13.15 million 25 » Average daily TCE earnings to-date: 20 Next 12 approximately $35,000/day; months, C Current t daily d il earnings: i abt bt >$65,000 >$6 million ($)) avg. TC
Slide 13: Vessels Employment Chart
Vessels Employment Chart 94% coverage in 2008 / 34% coverage in 2009 GREGOS Spot IRINI Spot / party fixed Dry Bulk Carriers IOANNA P. $35,500 Spot NIKOLAOS P. Spot $36,000 Container Ship Vessels ARISTIDES N.P. dd $52,000 ARTEMIS $19,000 Multi-purpose Vessel KUO HSIUNG $15,800 DESPINA P S t Spot $15
Slide 14: Charter Coverage for 2008
Charter Coverage for 2008 100% 100% 94% ~$16,300/day 90% 81% ~$22,500/day 80% 70% ~$40,000/day 60% 50% 40% 30% 20% 10% 0% Dry Bulk Container Total » Secure base revenue 2008 for the existing fleet while maintaining exposure to the drybulk market Page 14
Slide 15: Fleet Management & Operational Performance
Fleet Management & Operational Performance » Management is performed by Eurobulk Ltd., Daily costs per vessel an affiliate 8,000 • Top management – 100+ years of 7,000 industry shipping experience 6,000 • 4th generation of Pittas’ family 5,000 $ / day managing secondhand dry-cargo ships 4,000 , » Fl
Slide 16: Financial Overview
Financial Overview
Slide 17: Fleet Data for 2nd Quarter and 1st Half of 2007 and 2008
Fleet Data for 2nd Quarter and 1st Half of 2007 and 2008 Fleet Statistics Second Quarter First Half 2007 2008 2007 2008 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 10.08 15.44 9.55 15.22 Utilization Rate % 99.8% 98.8% 99.8% 99.1% Averages e ages in usd/day/vessel usd/day/ esse
Slide 18: Financial Highlights for 2nd Quarter and 1st Half of '07 and '08
Financial Highlights for 2nd Quarter and 1st Half of ‘07 and ‘08 (in million USD except per Second Quarter First Half (4) share amounts) 2007 2008 % 2007 2008 % (4) Net Revenues $15.6 $34.5 121.5% $29.1 $67.3 131.2% Capital Gains - - - $3.4 - - Net Income $6.4 $15.7 145.3% $15.9 $30.9 94.5% Net Inco
Slide 19: Balance Sheet & Other Data
Balance Sheet & Other Data » Cash @ June 30, 2008: $ 68.7m • Also restricted cash of $7.1m » Debt: $67.1 m as of June 30, 2008 • Loan to value ratio less than 15% • Debt to Capitalization p ratio about 19% 9 » About $200 m equity to fund growth • $60-65 m cash, plus • About $135-150 m in debt raisin
Slide 20: Dividend History & Policy
Dividend History & Policy Dividend History Dividend Policy 0.35 » Objective to provide stable or increasing dividends 0.30 0.25 » Dividend for ‘08 Q2: $0.32/share » Currentt di C dividend id d equates t to t about b t $ / share e 0.20 0.15 10.9% annualized yield (1) 0.10 » Comfortable coverage of pr
Slide 21: Valuation Comparisons
Valuation Comparisons
Slide 22: ESEA Stock Ratios Vs. Selected Peers
ESEA Stock Ratios Vs. Selected Peers EV/2009E EBITDA Price/2009E EPS 25.0x 25.0x 20.0x 20.0x 18.2x 16.1x 14.8x 15.0x 15.0x 12.4x 9.6x 10.0x 8.8x 10.0x 8.0x 7.4x 6.8x 6.3x 5.9x 6.3x 5.0x 4.0x 4.0x 5.0x 5.0x 2.5x 0.0x 0.0x ESEA SSW DAC DSX EGLE GNK DRYS EXM ESEA SSW DAC DSX EGLE GNK DRYS EXM Valuation
Slide 23: ESEA Stock Ratios Vs. Selected Peers: P/NAV and Dividend Yield
ESEA Stock Ratios Vs. Selected Peers P / NAV Dividend Yield 2.0x 14% 12.5% 1.8x 12% 10.9% 1.5x 10% 9.3% 8.9% 1.3x 8.0% 7.8% 8% 1.0x 0.9x 0.9x 0.9x 0.8x 0.8x 5.9% 0.7x 6% 0.8x 0.7x 0.7x 0.5x 4% 0.3x 2% 1.3% 0.0x 0% ESEA SSW DAC DSX EGLE GNK DRYS EXM ESEA SSW DAC DSX EGLE GNK DRYS EXM Euroseas offers
Slide 24: Euroseas Contacts
Euroseas Contacts Euroseas Ltd. Aethrion Center 40, Ag. Konstantinou Street 151 24 Maroussi, Greece www.euroseas.gr euroseas@euroseas.gr Tel. +30-211-1804005 Fax.+30-211-1804097 or or, Tasos Aslidis Nicolas Bornozis Chief Financial Officer Investor Relations Euroseas Ltd. Capital Link, Inc. 11 Cante