Slide 1: Three Months Ended March 31, 2010 Earnings Presentation
Confidential Three Months Ended March 31, 2010 Earnings Presentation May 14, 2010
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: 2010 First Quarter Overview
2010 First Quarter Overview • Financial Highlights First Quarter 2010: Net Revenues: $ 13.8 million Net loss: $ (3.0) million, or, ($0.10)/share, basic & diluted Adj. Net income(1): $ 0.4 million, or, $0.01/share, basic & diluted Adj. EBITDA(1): $ 5.0 million Dividend declared: $ 0.05 / share, the n
Slide 4: Funding Company Growth
Funding Company Growth » Formed Euromar LLC • 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 and $75m each of the two partners » Key Advantages • Acce
Slide 5: Current Fleet
Current Fleet 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 Noumea Intermediate 34,677 2,556 2001 200
Slide 6: Investment Opportunities In 2010
Investment Opportunities In 2010 1-Year TC Rates 90,000 80,000 Panamax 72-75,000 dwt Containership 1700 teu 70,000 60,000 50,000 $ / day 40,000 30,000 20,000 10,000 0 2000-01 2002-01 2004-01 2006-01 2008-01 2010-01 Page 6
Slide 7: Fleet Management & Operational Performance
Fleet Management & Operational 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 dry-cargo ships $ / day 6,000 » Operational
Slide 8: Vessels Employment Chart – Bulkers
Vessels Employment 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 '11 Q1
Slide 9: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage 43% in 2010 / 17% in 2011 Container Ship Vessels DESPINA P Laid-up p Multi-purpose Vessel JONATHAN P Laid-up KUO HSIUNG $3,850 $3,850 $5,300 CAPTAIN COSTAS $4000 $4,250 $4,250 TIGER BRIDGE $7,500 $4,000 $4000 7500 til March '12 NINOS $3,900 $4,200 M
Slide 10: Market Overview
Market Overview
Slide 11: 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 9.0 7.3 5.7 8.8(7.7) 8.4 (7.5)
Slide 12: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook (1) m dwt m dwt 140 170.0 33.2% For delivery in 2010/11 160.0 130 27.3% (vessels): 150.0 120 140.0 110 Cape 305/269 18.3% 130.0 100 Panamax 279/314 120.0 68.6 62.80 110.0 90 H’max 377/296 100.0 16.7% 16.2% 80 H
Slide 13: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile(1) Container Orderbook (1) m TEU 6.8 48 % m TEU 14.3% 6.4 2.0 6.0 16.0% 5.6 11.05% 5.2 1.6 4.8 3.10 13 .8% 4.4 0.79 4.0 22.8% 1.2 5.6% 1.26 3.6 3.2 0.6 15.6% 1.43 2.8 0.8 0.54 4.8% 2.4 1.80 1.46 0.44 2.0 0.50 1.6 7.2%
Slide 14: Containership Laid-up Fleet
Containership Laid-up Fleet Source: Alphaliner Page 14
Slide 15: 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 0 20 20 20 20 20 20 20 20 /2 /2 /2 / / / / / / / 4/ 0 /1 /4 /7 10 /1 /4 /7 10 /1 /1 8/ 17 15 15 15
Slide 16: Market Trends - 2010
Market Trends - 2010 » Drybulk– a volatile market environment expected • Drybulk trade growth is expected to be positive for 2010 – Year-to-date drybulk market strength based on recovering global economy and particularly on high Chinese ore imports and congestion – Set of global economic recovery to
Slide 17: Financial Overview
Financial Overview
Slide 18: Financial Highlights: 1st Quarter '09 and '10
Financial Highlights: 1st Quarter ‘09 and ‘10 First Quarter (in million USD except per change share amounts) 2009 2010 % (4) Net Revenues $15.3 $13.8 -9.9% Net Income $3.9 -$3.0 Unrealized & Realized (gain) / loss, derevatives & -$2.0 $3.9 investments Amort. FV of charters, net -$0.2 -$0.5 Adj. Net
Slide 19: Fleet Data for 1st Quarter of 2009 and 2010
Fleet Data for 1st Quarter of 2009 and 2010 Fleet Statistics First Quarter 2009 2010 (unaudited) (unaudited) Number of vessels 15.70 15.00 Utilization Rate (%) Overall 92.6% 99.9% Commercial 93.6% 100.0% Operational 98.9% 99.9% Averages in usd/day/vessel Time Charter Equivalent (TCE) $ 12,684 $ 12,4
Slide 20: Rapid Debt Repayment
Rapid Debt Repayment Debt Repayment Schedule – As of 5/1/2010 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 21: Balance Sheet & Other Data
Balance Sheet & Other Data » Cash @ March 31, 2010: $ 49m • $39 m unrestricted – abt $10m working capital and restricted » Debt: $68 m as of March 31, 2010 • Debt to Capitalization ratio about 23% • Covenants fully satisfied » About $35-40 m cash equity to fund further growth • $25m committed to be
Slide 22: Euroseas Contacts
Euroseas Contacts Euroseas Ltd. 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 Canterbury Lane 230 Pa
Slide 23: Appendix
Appendix Please refer to the Company’s press release of May 13, 2010 for financial statements and reconciliation of Adjusted EBITDA and “Operating” EPS to Net Income and Cash Flow from Operations, as well as Reconciliation of Net Income to Adjusted Net Income Page 23