Ultrapetrol (bahamas) Limited · OTC:ULTRF
Ultrapetrol (bahamas) — Investor Presentation (May 2008)
37 slides from Ultrapetrol (bahamas)'s investor presentation, May 14, 2008
Slide 1: Investor and Analyst Meeting
11New York Lunch1 New York - May 14, 210108 ULTRAPETROL (BAHAMAS) LIMITED INVESTOR AND ANALYST MEETING WEDNESDAY, MAY 14,
Slide 2: Forward-looking statements & EBITDA
* Forward - - looking statements & EBITDA Our disclosure and analysis in this presentation concerning our operations, cash flows and financial position, including, in particular, the likelihood of our success in developing and expanding our business, include forward-looking statements. Statements th
Slide 3: Business overview: River, Offshore Supply, Ocean, Passenger
> Biggest player in the Hidrovia Region with 591 barges and 28 pushboats -> over 40% of market share > Significant volume growth -> need for additional capacity: § Barge enlargement program -> expansion of existing capacity § Barge building yard -> construction of new capacity § Re-engining project
Slide 4: River Business
RIVER BUSINESS
Slide 5: Hidrovia System
Mississippi Region Hidrovia Region Number of Barges: ~26,500 Number of Barges: ~1,400 Corumba UABL Brazil Buenos Aires UABL Argentina Tres Fronteras Wanda Dos Fronteras San Gotardo Asunción UABL Paraguay Hub Km 1,200 Hub Hub Hub Through a system of hubs we can operate more efficiently than the small
Slide 6: Hidrovia Region's share of world soy production increasing
(1) Source: FAS - USDA; (2) Hidrovia Region includes Argentina, Bolivia, Brazil, Paraguay and Uruguay. Source: FAS - USDA. Hidrovia Region’s share of world’s soy production has been progressively increasing…
Slide 7: Corumbá iron ore production expected to grow
UABL signed a long term contract to carry between 2009 and 2014 between 1.3 MM and 2.0 MM tons of iron ore per year 2.5 8.7 1Q 08 vs. 1Q 07 Corumbá Mines Iron Ore Exports (3) (1) Sources: Rio Tinto PLC (RTZ), Vale (CVRD) and Mineração e Metálicos S.A. (MMX) public filings, presentations and web page
Slide 8: Three growth programs in the River Business
806,900 1,331,900 - - 2010 = 65.1% expected increase Source: Company estimates River Business potential incremental dwt capacity if all programs are executed at maximum 1) Barge enlargement - USD 36.0 million CAPEX through 2010 - 67% increase per barge enlarged 130,000 additional dwt capacity - Bo
Slide 9: Capacity increases and improved fuel efficiencies
Estimated Pro Forma EBITDA & EBITDA margin at different levels of fuel substitution (1) BunkerWorld - - 2007 monthly average price gap between Diesel and IFO180 at Rotterdam port (2) BunkerWorld - - 2008 YTD monthly average price gap between Diesel and IFO180 at Rotterdam port Estimated differential
Slide 10: River Business Developments 1Q 2008 & Year to Date
> 14% increase in volumes loaded as compared to 1Q 2007 > Thirty barges and one pushboat purchased in the US already arrived in the Hidrovia, and are fully operational as from 2Q 2008 > Further load-out of 27 barges and two pushboats currently taking place > Received first six heavy fuel engines out
Slide 11: Offshore Supply Business
OFFSHORE SUPPLY BUSINESS
Slide 12: Well established in the two most attractive PSV markets
Brazil North Sea Deeper water wells in Brazil and harsh conditions in the North Sea require larger, more advanced PSVs > Harsh operating conditions demand high quality vessels > Very active spot market, with robust pricing We are well established in the two most attractive PSV markets… > Market movi
Slide 13: Modern and homogeneous fleet
Fleet in Operation Fleet under Construction …with one of the most modern and homogeneous fleets in the world…
Slide 14: Gross profit expected to grow with fleet size
Annualized number of PSVs in operation at same average gross profit contribution per vessel obtained by existing fleet in 2007 / 4.63 PSVs (1) Pro Forma Gross Profit Contribution = Revenues minus Voyage Expenses minus Running Costs Indian PSVs Chinese PSVs …gross profit from our Offshore Supply Busi
Slide 15: Offshore Supply Market Overview
Committed North Sea Spot North Sea UP North Sea Fleet Daily Average Time Charter (2) - - To date North Sea Spot Rates (1) Committed Brazil 1Q 08 Fleet Employment Distribution (2) UP Brazil Fleet Daily Average Time Charter (2) Current Spot Rate (1) (1) Source: Seabrokers; Current Spot Rate: company e
Slide 16: PSV shortfall aligned with market fundamentals
Source: Company estimates based on industry sources Assumption: 1.7 PSVs required per ordered rig Source: Stewarts Offshore / ODS - - Petrodata PSV shortfall over next 4 years = 156 Aligned with Offshore Supply market fundamentals…
Slide 17: Ocean Business
OCEAN BUSINESS
Slide 18: Ocean Business: two different fleets
Handysize / Product Tankers Fleet OBO / Capesize Fleet > Three OBO vessels chartered tied to the 4TC Capesize Routes Index and covered through FFAs > Stable and attractive rates secured through FFAs for 2008 and 2009 > Capesize vessel Princess Marisol employed on a strong spot market Ocean Business:
Slide 19: Ocean Business: two different fleets (cont'd)
Ocean Business: two different fleets (cont’d)
Slide 20: OBO Fleet time charter rates and gross profit contribution
Avg. ‘07 TC (2) Avg. 1Q 08 TC (3) Avg. FY ‘08 TC (4) OBO Fleet Average Daily Time Charter Rates (1) OBO Fleet Gross Profit Contribution (1), (3), (5), (6), (7) (1) The values in these graphs are based on estimates and assumptions and consequently may change (2) Excludes Non Cash Losses on FFAs (3) E
Slide 21: Princess Marisol TC and Gross Profit Contribution
Avg. 1Q 08 TC Avg. FY ‘08 TC (2), (3) 1Q FY 08 (3), (5), (6) Princess Marisol Average Time Charter Rates (1) Princess Marisol Gross Profit Contribution (1), (4) (1) The values in these graphs are based on estimates and assumptions and consequently may change (2) Uses known COAs and charters until Ap
Slide 22: FFA coverage for 2009
> We sold 547.5 days of the 4TC Capesize Routes Index at USD 91,833 per day. > When added to the 180 days previously sold at USD 51,000, we have covered a total of 727.5 days in 2009 at an average of USD 81,730 of the index vessel. > Assuming a 25% discount, the FFAs sold for 2009 provide cover for
Slide 23: Drybulk Industry Overview
* Capesize Orderbook - Dec 2007 Baltic Forward Assessment - May 8, 2008 Period Route Average May/June 165,000 3Q 144,813 4Q 141,500 1Q 122,000 2Q 113,313 Cal 101,922 Cal 69,375 Source: Baltic Exchange 4TC Capesize Routes Source: Baltic Exchange Source: Howe Robinson dry cargo market annual review 20
Slide 24: Passenger Business Highlights
> One vessel, Blue Monarch , in operation > Remained in lay up during 1Q 2008; dry docked and repaired for European season > Started cruising on 7-day and 14-day cruises in the Aegean Sea on April 23, > Second quarter seasonally slower in the Aegean; expected to improve in peak months of European su
Slide 25: Expected Expansion CAPEX Program
This table is provided as a general guide of expected Capital Expenditure under the assumption that certain long term strategies are implemented and all assets / ships can be purchased / built at desired prices and delivered within expected timeframes. This program may change in the future according
Slide 26: Business Outlook
> Offshore Supply § We expect Offshore Supply Business revenues to grow substantially as from 2009 consistent with scheduled deliveries of new PSVs § Current market rate scenario strong with one vessel on the spot market and other becoming available for re-chartering in 3Q 08 > Ocean § Vessels fixed
Slide 27: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 28: Year-on-Year Income Statement
(1) A reconciliation of EBITDA and Adjusted EBITDA to US GAAP measures is available on the Appendix in this presentation Year-on-Year Income Statement
Slide 29: Year-on-Year Income Statement (per segment)
Year-on-Year Income Statement (on a per segment basis)
Slide 30: Year-on-Year Income Statement (per segment, cont'd)
(1) A reconciliation of EBITDA and Adjusted EBITDA to US GAAP measures is available on the Appendix in this presentation Year-on-Year Income Statement (on a per segment basis) (cont’d)
Slide 31: Balance sheet at March 31 vs December 31
‘At March 31, | At December31, | Change ASSETS Cash & Cash Equivalents $41,957 $64,262 35% ‘Accounts Receivables 17,983 15,680 5% Other Current Assets 25,996 25,299 3% Vessels and Equipment, Net 497,320 462,292 6% Noncurrent Other Receivables 10,981 10,073 9% Noncurrent Restricted Cash 19,986 20,168
Slide 32: Investment Highlights
High Growth Markets Rapid Earnings Growth Experienced Management Financial Flexibility Unique Business Model INVESTMENT HIGHLIGHTS > Growing River business with #1 market position > Rapidly expanding Offshore Supply business > Established Ocean business; additional product carriers > Coastal Tankers
Slide 33: Thank You, Q & A
Thank You Q & A
Slide 34: EBITDA definition
(1) EBITDA consists of net income (loss) prior to deductions for interest expense and other financial gains and losses, income taxes, depreciation and amortization of dry dock expense and financial gain (loss) on extinguishment of debt. We believe that EBITDA is intended to exclude all items that af
Slide 35: EBITDA reconciliation, three months ended March 31, 2008
(000) Three Months Ended March 31, 2008 River Offshore Supply! Ocean _| Passenger) TOTAL ‘Segment operating profit $772 $3,950 $15,429 ($4,902) $18,249 Depreciation and amortiza 3,055, 1,166 4,854 769 9,844 Investment in affifiates/ (124) (240) 60) 0 (14) Other, net (180) = 5 zi (175) Net income on
Slide 36: EBITDA reconciliation, three months ended March 31, 2007
(6000) Three Months Ended March 31, 2007 River | Offshore Supply Ocean Passenger) TOTAL ‘Segment operating profit $3,480 $3,609 $3,258 ($4,979) $8,368 2,285, 904 3,738 1,127 8,054 165 : 2 jegment x R A . ems not included in segment EBITDA Financialincome 190 ‘Tonsondated FENDA Tost
Slide 37: Segment EBITDA reconciliation
2008 2007 ‘Segment operating profit $772 $3,480 investment in affiliates /Minority interest (12a) 4 Other, net (180) (51) SegmemEBNOA SST Ocean Business SegmentEBITDA Reconciliation (in $000) ‘Three Months Ended March 2008 2007 ‘Segment operating profit $15,429 $3,258 Investment in affiliates/ Minor
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