Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Roth Capital Investor Conference 2006
27 slides from Euroseas's conference presentation, Feb 24, 2006
Slide 1: Presentation at Roth Capital Investor Conference
Presentation At Roth Capital Investor Conference Dana Point, CA February 22, 2006
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 result
Slide 3: Agenda
Agenda Company introduction & history Industry background Business strategy Financial results and dividend history Overview & Summary
Slide 4: Euroseas Ltd. - Company Introduction
Euroseas Ltd. - Company Introduction Involved in ocean-going transportation - we transport Bulk raw materials like iron ore, coal, grain & other bulks, and, Containerized trade (container boxes) Owner of 8 vessels, 5 dry bulkers and 3 containerships Backed by the Pittas family with maritime history
Slide 5: Euroseas Ltd. - Recent Events
Euroseas Ltd. - Recent Events Completed a private placement in Aug. 2005 raising $21 million Signed agreement to merge with Cove Apparel Inc. (CVAP.BB) Registered for resale shares sold in the private placement and shares of Cove principals; F-1 and F-4 registration statements were declared effectiv
Slide 6: Euroseas Fleet of Vessels
Euroseas Fleet of Vessels M/V JOHN P. 26,354 DWT BLT 1981 Handysize Bulker M/V PANTELIS P. 26,354 DWT BLT 1981 Handysize Bulker M/V ARIEL 33.712 DWT BLT 1977 Handysize Bulker M/V NIKOLAOS P. 34.750 DWT BLT 1984 Handysize Bulker M/V Y. M.QINGDAO I 18.253 DWT BLT '90 Handy Containership M/V KUO HSIUNG
Slide 7: Agenda
Agenda Company introduction & history Industry background Business strategy Financial results and dividend history Overview & Summary
Slide 8: Shipping Industry Background
Shipping Industry Background Two thirds of international trade is moved by sea; seaborne trade (by volume) is comprised of: Dry Bulk - 38% Liquid Bulk - 40% Containers - 14% General Cargo - 8% From 1999 to 2005 global seaborne dry-bulk trade increased by 5.1% p.a., while China's main bulk imports gr
Slide 9: Dry Bulk & Container Trade Growth
Dry Bulk & Container Trade Growth 5.1% p.a. 10.4% p.a. Dry Bulk Trade Containerized Trade Source: Company compiled data based on industry publications; figures for 2005 are estimates
Slide 10: China Is The Driving Force
China Is The Driving Force 27% p.a. Selected Bulk Imports - China Container Exports - China 27% p.a. In 2005, China contributed about 62% of dry bulk trade growth and 57% of the containerized trade growth Source: Company compiled data based on industry publications; figures for 2005 are estimates 0
Slide 11: Fleet Development
Fleet Development Lately, it takes about 3 years to deliver a vessel => orderbook will be delivered over the next 3-3.5 years We operate in segments (handysize, 1000-2000 teu) were less fleet growth is expected Dry Bulk Fleet Profile (% of fleet), end '05 Containership Fleet Profile (% of fleet), en
Slide 12: Market Rate Developments
Market Rate Developments Baltic Dry Index 2000-TEU C'ship, gearless, 1-yr TC Rate Source: Company compiled data based on industry / broker reports and Company data
Slide 13: Agenda
Agenda Company introduction & history Industry background Business strategy Financial results and dividend history Overview & Summary
Slide 14: Our Business Strategy
Our Business Strategy Plan to expand fleet at the right time Shipping is a cyclical industry: invest at the low market points / secure long term employment at high points The right time to invest could be very soon, as we believe that the market will present opportunities in 2006 Focus on age and si
Slide 15: Management Team
Management Team Aristides J. Pittas, Chairman & CEO 4th generation of maritime family, 20 years experience - 10 years running Eurobulk; naval architect & management studies in Newcastle (UK) & MIT Tasos Aslidis, PhD, CFO 17 yrs in shipping, formerly with shipping financial consultant, Marsoft Inc.;
Slide 16: Euroseas Fleet Employment
Euroseas Fleet Employment Our containerships are employed under Time Charters with remaining terms from 1.2 to almost 3 years YM Qingdao - 'til Mar-2007 for $11,900/day Kuo Hsiung - 'til Nov-2006 for $16,000/day then 'til Nov-07 for $12,000/day Artemis - 'til Dec-2008 for $19,000/day Our larger bulk
Slide 17: Vessels Employment Chart
Vessels Employment Chart 50% of our ship capacity days in 2006 and 35-40% in 2007 are under TC contracts, or, protected from market fluctuation Our contract coverage gives us a solid revenue base for 2006: Gross contracted TCE daily revenue of about $65,000 Feb-06 Aug-06 Feb-07 Aug-07 Feb-08 Aug-08
Slide 18: Own Earnings Vs. Market Rates
Our actual average rates for our 4 Handysize vessels compared against the 1- yr TC rate for a 5-year old handysize vessel Own Earnings Vs. Market Rates Source: Company compiled data based on industry / broker reports and Company data
Slide 19: Agenda
Agenda Company introduction & history Industry background Business strategy Financial results and dividend history Overview & Summary
Slide 20: Selected Financials, Income Statement
Selected Financials, Income Statement INCOME STATEMENT in thousand USD 2002 2003 2004 2004 2005 (audited) (audited) (audited) (unaudited ) (unaudited ) Net TC Equivalent revenue 14,339 24,608 43,132 31,085 32,107 Operating expenses Vessel operating expenses 7,164 8,776 8,906 6,782 6,323 Management f
Slide 21: Selected Financials, Per Vessel Per Day
Selected Financials, Per Vessel Per Day Per Vessel Statistics in USD / day / vessel 2002 2003 2004 2004 2005 (audited) (audited) (audited) (unaudited ) (unaudited ) Number of vessels 8.00 8.00 7.29 7.38 7.00 Calendar Days Available 2,920 2,920 2,667 2,023 1,911 TCE Average, Net Net (1) 4,911 8,427 1
Slide 22: Select Financials, Balance Sheet
Select Financials, Balance Sheet 2005 Q4 events: Purchased m/v Artemis (2,098 teu) for about $21 million in November 2005 Additional debt to finance purchase of m/v Artemis of $15.5 million Total Debt on December 31, 2005: $48.6 million Paid dividend of $2.65 million BALANCE SHEET September 30, in t
Slide 23: Dividend Policy & History
Dividend Policy & History "Euroseas plans to distribute, on a quarterly basis, substantially all available cash flow generated by operations less expenses, debt service, reserves for drydocking expenses, special surveys, and after establishing necessary working capital reserves. Necessary working ca
Slide 24: Agenda
Agenda Company introduction & history Industry background Business strategy Financial results and dividend history Overview & Summary
Slide 25: Overview - Shipping
Overview - Shipping Directly linked to world trade If you believe world trade growth will continue, .. .. .. .. shipping is the industry to invest No substitute to ocean transportation! Shipping is a worldwide industry - not tied up to a particular region Invest in China's growth potential without h
Slide 26: Overview - Euroseas
Overview - Euroseas Well positioned to take advantage of the market developments in 2006 $15-18 million available cash for investments Long & profitable track record of principals Pittas family has been in shipping for 4 generations Experience in managing vessels of any age Euroseas pursues investme
Slide 27: Euroseas Contacts
Euroseas Contacts Euroseas Ltd. Aethrion Center 40, Ag. Konstantinou Street 151 24 Maroussi, Greece www.euroseas.gr euroseas@euroseas.gr Tel. +30-210-6105110 Fax.+30-210-610511 or, Tasos Aslidis Chief Financial Officer Euroseas Ltd. 2692 Far View Drive Mountainside, NJ 07092 aha@euroseas.gr Tel: 908