Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Capital Link Webinar January 2023
22 slides from Euroseas's conference presentation, January 2023
Slide 1: Euroseas Ltd. Company Presentation
Euroseas Ltd. Company Presentation [NASDAQ: ESEA] Capital Link Webinar January 2023 1
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
Introduction 3
Slide 4: Euroseas - Introduction
Euroseas - Introduction ➢ Euroseas is a provider of worldwide ocean-going transportation services through the ownership and operation of container vessels ▪ Established in 2005 by the Pittas family which has owned/operated vessels since 1870; currently, the 4th generation at the helm of the Company
Slide 5: Container Sector Overview: Supply/Demand Fundamentals
Container Sector Overview: Supply/Demand Fundamentals 5
Slide 6: Current Point in the Market
Current Point in the Market 6 – 12m TC rate ($/day) 10 year old Second Hand Prices ($m) TC rates continued to soften in 2022Q4 and are getting close historical average levels Secondhand prices have dropped to the lowest levels since May-21 120,000 100.00 90.00 100,000 80.00 70.00 80,000 60.00 $/ day
Slide 7: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Containerized Trade Growth Vs World GDP Growth Real GDP (% p.a. - IMF) 2015 2016 2017 2018 2019 2020 2021 2022e 2023e 2024e World 3.4 3.2 3.7 3.6 2.9 -3.3 6.0 3.2 2.7 N/A (IMF: as of Oct-22) Containerized Trade (% p.a.) 2015 2016 2017 2018 2019 2020 2021 2022 2023e
Slide 8: Age Profile and Orderbook, Total Fleet
Age Profile and Orderbook, Total Fleet Age Profile Containership Orderbook 20% 26% 26% 18% 10% 3.5 7.0 For delivery in 23/24/25+ (as of Jan-23) 9.9% 3.0 8000+: 100 / 121 / 110 6.0 1.5 9.7% 2.80 3-7,999: 81 / 121 / 41 2.5 100-2,999: 207/ 119 / 12 2.50 5.0 6.4% 3.2 0.1 1.9 1.99 4.0 2.0 1.3 mTEU mTEU 3
Slide 9: 1,000-3,000 teu Fleet Age Profile & Orderbook Delivery Schedule
1,000-3,000 teu Fleet Age Profile & Orderbook Delivery Schedule Containership Age Profile Container Orderbook 20% 10% 20% 25% 25% 0.45 ~9.40% 25% of the 1-3,000 teu fleet is over aged 0.40 0.380 0.35 1.3 0.30 1.1 0.25 ~4.70% mTEU 0.9 0.4 0.208 0.6 ~3.0% ~4.9% 0.20 ~4.4% 0.3 0.7 0.5 ~1.2% mTEU 0.15 0
Slide 10: 3,000-5,999 teu Fleet Age Profile & Orderbook
3,000-5,999 teu Fleet Age Profile & Orderbook Age Profile 2.9% 12.4% 35.8% 31.6% 17.4% 1.8 1.6 0.17 1.4 0.24 0.37 1.2 0.02 1.0 mTEU 0.8 1.11 0.89 0.36 0.6 Rena P & Synergy vessels 0.14 Emmanuel P 0.04 0.4 0.36 0.27 0.2 0.01 0.23 0.20 0.16 0.13 0.06 0.0 0.04 0-4 5-9 10-14 15-19 20+ 3-3,999 Narrow Bea
Slide 11: Transportation System Inefficiencies
Transportation System Inefficiencies Port Congestion Indices 38.0 36.0 % fleet capacity at port, 7dma 34.0 32.0 30.0 28.0 26.0 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q3-2016 Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-20
Slide 12: Outlook Summary
Outlook Summary ➢ Political and economic insecurity affected container shipping with freight rates dropping dramatically in November and December 2022 with TC rates returning towards more “normal” levels from the exceptional highs seen in 2021-2022H1. • The container freight index continued to weake
Slide 13: Euroseas Operations, Chartering & Strategy
Euroseas Operations, Chartering & Strategy 13
Slide 14: Current Fleet Profile
Current Fleet Profile Current fleet is comprised of 17 vessels with an average age of 17.5(1) years and a carrying capacity of 53.3k TEU 10x Feeder 8x Intermediate Avg. Age: 20.2 years(1) Avg. Age: 15.7years(1) Carrying Capacity: 21.4k TEU Carrying Capacity: 31.9k TEU Size Year Name Type DWT TEU Bui
Slide 15: Vessels Under Construction
Vessels Under Construction Nine vessels with capacity of 22,200 teu to be delivered during 2023 & 2024 6x Feeders 3x Feeders Carrying Capacity: 2,800 teu each Carrying Capacity: 1,800 teu each Size To be Name Type DWT TEU Delivered Vessels under construction Gregos (H4201) Feeder 37,237 2,800 Q1 202
Slide 16: Vessel Employment - Significant Visibility Beyond 2023
Vessel Employment - Significant Visibility Beyond 2023 Solid chartering strategy securing significant cash flow generation beyond 2023 2023 2024 2025 Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec IND
Slide 17: Financial Highlights
Financial Highlights Nine-month 2022 Highlights and a glimpse of 2023 First nine-months of 2022 were quite profitable ➢ Total net revenues of $139.8 million. ➢ Net income attributable to common shareholders of $85.9 million or $11.91 and $11.86 earnings per share basic and diluted, respectively incl
Slide 18: Projected Cash Flow Break Even
Projected Cash Flow Break Even Cash Flow Break Even Estimate for the Next 12 months ($/day) 4,170 13,991 1,559 9,821 636 642 7,627 6,985 OPEX G&A Expenses Operating CBE Drydocking expenses Interest expense Operating and Loan Repayments Total Financing CBE 18
Slide 19: Key Balance Sheet Highlight
Key Balance Sheet Highlight Current outstanding debt as of Dec 31, 2022 compared to the fleet valuation Loan to Value of the existing fleet (1): 47% 33% 83% $371.70 $341.70 $331.2 $50.67 $108.0 $228.6 Current Debt Outstanding (1) $130.5 Debt Vessels Value Charter Free Vessels Value Charter Adjusted
Slide 20: Why Euroseas: Organic Growth & Shareholder Value
Why Euroseas: Organic Growth & Shareholder Value ➢ We have insulated ourselves to a great degree from the current market by having secured long-term charters for the majority of our current fleet ▪ Each of the next two years should be comparably profitable to 2022. ▪ Conservatively financed provides
Slide 21: Thank you!
Thank you! 21
Slide 22: Euroseas Contacts
Euroseas Contacts Euroseas Ltd. c/o Eurobulk Ltd 4, Messogiou & Evropis Street 151 24 Maroussi, Greece www.euroseas.gr euroseas@euroseas.gr Tel. +30-211-1804005 Fax.+30-211-1804097 Dr. Tasos Aslidis or, Nicolas Bornozis / Markella Kara Chief Financial Officer Investor Relations Euroseas Ltd. Capital