Seanergy Maritime Holdings Corp. · NASDAQ:SHIP
Seanergy Maritime — Proxy Contest (October 2024)
33 slides from Seanergy Maritime's proxy contest presentation, October 2024
Slide 1: Investor Presentation October 2024
Investor Presentation October 2024 Seanergy Maritime Holdings Corp.
Slide 2: Important Disclosures
Important Disclosures This document contains forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding the Company’s management’s expectations, hopes, beliefs, intentions or strategies regarding the future and other statements that are other than st
Slide 3: Seanergy Is Delivering Value for ALL Shareholders
Seanergy Is Delivering Value for ALL Shareholders Value-Enhancing Strategy Delivering Investing In Leading Pure-play Generating Robust Cash Flow With Results Capesize Fleet Attractive Rates and Efficient Operations >3x TSR outperformance vs. median peer ▪ Seanergy’s strong value creation is ▪ Seaner
Slide 4: Seanergy Is Delivering Value for ALL Shareholders (Cont'd)
Seanergy Is Delivering Value for ALL Shareholders (Cont’d) Optimizing Our Cost of Capital Providing Shareholders with Independent, Experienced Board to Drive Growth Increasing Capital Returns Overseeing Value Creation ▪ We have deployed our strong cash generation $34.7 million in cash dividends or ▪
Slide 5: Economou's Self-Serving Campaign Threatens Shareholder Value
Economou’s Self-Serving Campaign Threatens Shareholder Value • Since investing in Seanergy last year, Economou has not constructively engaged with the Company and has offered no ideas on how to enhance value for Seanergy shareholders • Instead, he has pursued coercive tactics, initiating litigation
Slide 6: Executing Our Strategy For Substantial Value Creation
Executing Our Strategy For Substantial Value Creation 5
Slide 7: Strategy Delivering Strong Shareholder Returns and Momentum
Strategy Delivering Strong Shareholder Returns and Momentum Total shareholder returns have outperformed dry bulk peers over the last year Seanergy Has Outperformed Peers Over the Last Year1, 2 Key Highlights Driving Outperformance • Generated record profitability in the first half of 2024 112% >3x •
Slide 8: Performance Is the Result of Our Purposeful Transformation
Performance Is the Result of Our Purposeful Transformation Seanergy has transformed its business, including its sector focus, investment strategy and governance to align with public shareholder interests Seanergy Pre-2021 Seanergy’s Transformation Since 2021 Seanergy Today ▪ Majority controlled by f
Slide 9: Well-positioned Through Pure-play Capesize Strategy
Well-positioned Through Pure-play Capesize Strategy Seanergy has nearly doubled its total fleet capacity since 2020 Fleet Overview 19 Capesize Dry Bulk Vessels (9 scrubber-fitted) A scaled pure-play growth-oriented Capesize company publicly listed in the U.S. All vessels in ~3.42 million DWT 13.4 pe
Slide 10: Strong Relationships with World Leading Charterers
Strong Relationships with World Leading Charterers Seanergy enjoys market recognition as a quality and reliable owner and operator • Our diverse customer base includes the world’s major miners, traders and operators • First-class fleet and fleet operations provide competitiveness and flexibility • 1
Slide 11: Disciplined and Efficient Fleet Acquisition and Operational Strategy
Disciplined and Efficient Fleet Acquisition and Operational Strategy Acquiring mid-aged Well-timed asset Efficient vessel operations Utilize forward options to Capesize vessels at acquisitions result in as Seanergy invests in opportunistically lock-in attractive points in the lowest fleet cost basis
Slide 12: Benefitting from A Strong Capesize Outlook
Benefitting from A Strong Capesize Outlook A constrained supply environment for Capesize vessels and improving demand growth from China’s recovery should provide strong tailwinds for Seanergy Capesize Orderbook: Near 15-Year Low Strong Baltic Capesize Index Performance 100.0% 100.0% 120.0% 120.0% 89
Slide 13: Strong Fundamentals and Hedging To Secure Attractive Rates
Strong Fundamentals and Hedging To Secure Attractive Rates Seanergy Continues to Record Impressive Commercial Results Enhancing Revenue Visibility Forward options have enabled 1H 2024 and Q2 2024 average TCE rate outperformed BCI by 8% and Seanergy to increase revenue 18%, respectively visibility an
Slide 14: Strong Profit Margins and High Cash Flow Visibility
Strong Profit Margins and High Cash Flow Visibility Seanergy’s return on equity and margins have flourished in a strong rate environment and Seanergy’s locked-in charter rates provide a high-degree of certainty in future profitability 19% 30% 1H 2024 ROE1 1H 2024 Net Income Margin 39% 57% of availab
Slide 15: Positioned to Deliver Robust Free Cash Flow Generation
Positioned to Deliver Robust Free Cash Flow Generation Seanergy is poised to benefit from high operating leverage and the forecasted increase in Capesize rates will translate into higher free cash flows with no increased cost burden Seanergy is expected to strongly benefit from any upward movement i
Slide 16: Deploying Strong Cash Flows to Reduce Leverage
Deploying Strong Cash Flows to Reduce Leverage Seanergy has directed available free cash flow to reducing leverage, which frees up future cash flow for capital returns and accretive investments Fleet LTV 54% 54% Strong free cash flow and improved industry and operating 41% 41% performance has allowe
Slide 17: Delivering Increasing Capital Returns to Shareholders
Delivering Increasing Capital Returns to Shareholders Seanergy has enhanced its dividend policy to target return of ~50% of operating cash flows less debt repayments and a discretionary quarterly reserve Quarterly Dividends Per Share Increased total cash dividends per share $0.25 $0.25 ~67% from Q1
Slide 18: Analysts Recognize Seanergy's Performance and Substantial Upside
Analysts Recognize Seanergy’s Performance and Substantial Upside All of the analysts have a Buy rating on Seanergy with price targets ~20%1 higher than current price Buy: Price Target = $15.00 Buy: Price Target = $14.00 Buy: Price Target = $13.00 Buy: Price Target = $15.00 “Cash flow is strong, and
Slide 19: Differentiated Capesize Strategy is Overseen by Directors with Relevant Experience
Differentiated Capesize Strategy is Overseen by Directors with Relevant Experience and Expertise • 20+ years of experience in shipping, finance, investments and commodities trading • Led Carlyle Commodity Management’s Shipping and Freight Investments as Senior Portfolio Manager, managing one of the
Slide 20: Committed to Strong Governance Aligned with Strategy
Committed to Strong Governance Aligned with Strategy Seanergy is committed to upholding strong ESG standards that align with our strategic goals and shareholder interests to create long-term shareholder value for ALL shareholders Environment Social Governance • The first and only Greek shipping comp
Slide 21: Economou's Self-serving Campaign Puts Shareholder Value At Risk
Economou’s Self-serving Campaign Puts Shareholder Value At Risk 20
Slide 22: Economou Is Pursuing Aggressive and Coercive Tactics
Economou Is Pursuing Aggressive and Coercive Tactics to Gain Effective Control Over Seanergy’s Board Rapidly accumulated a nearly 9% stake in 2023 to become Seanergy’s largest stockholder Refused constructive engagement and has offered no ideas to enhance value for Seanergy shareholders Withou
Slide 23: Economou's Actions Consistent With Other Recent Self-Serving Campaigns
Economou’s Actions Are Consistent With Other Recent Self-Serving Campaigns Against Public Targets Status: Greenmail Status: Withdrawn Status: Ongoing • Rapid accumulation of 14.1% position • Rapid accumulation of 5.4% position • Rapid accumulation of 9.5% position • Nominated Ioannis Liveris and Geo
Slide 24: Economou: A Track Record of Value Destruction and Self-Dealing
Economou: A Track Record of Value Destruction and Self-Dealing Track record of tremendous Long history of self-dealing Poor corporate stewardship value destruction • Economou ran DryShips and Ocean Rig like his own and governance • Economou has a track record of personal fiefdoms, extracting value t
Slide 25: Economou's Shareholder Destruction at DryShips
Economou’s Shareholder Destruction at VALUE DESTRUCTION VALUE EXTRACTION PUBLIC OFFERING (>$3 billion) $350 million (-90%) Lost In Shareholder Value1 In Management Fees Paid to Reduction in Share Price in Months Following Economou-controlled Affiliates2 2016 Dilutive Equity Offerings3 Public Shareho
Slide 26: Ocean Rig: A Cautionary Tale
: A Cautionary Tale VALUE DESTRUCTION VALUE EXTRACTION TERMINATION FEE Bankruptcy $83.5 million $130 million Following Years of Shareholder Value In Management Fees Paid to Termination Fee Paid to Economou-controlled Destruction1 Economou-controlled Affiliates2 Affiliates upon Post-Bankruptcy Sale3
Slide 27: Economou's Nominees Are Underqualified
Economou’s Nominees Are Underqualified and Have a Long-History of Facilitating Economou’s Value Destruction and Self-dealing Georgios Kokkodis Ioannis Liveris No executive experience or operational experience No executive experience and no shipping industry experience other than at Economou-cont
Slide 28: The Choice Is Clear: Support Seanergy's Board Today
The Choice Is Clear: Support Seanergy’s Board Today Reject Economou’s Campaign for Effective Control Support Seanergy’s Board Over Seanergy Prominent public pure-play growth-oriented Capesize company benefitting Economou has a long and well-documented track record of value from robust tailwinds in t
Slide 29: A Vote for the Company's Nominees is a Vote for ALL Shareholders' Interests
A Vote for the Company’s Nominees is a Vote for ALL Shareholders’ Interests Vote the WHITE Proxy Card “FOR” Seanergy’s Two Nominees and Proposal 2 Your vote is critical and we encourage you to support your Board and Seanergy’s ongoing value creation by voting “FOR” Dimitrios Anagnostopoulos and Ioan
Slide 30: Definitions & Reconciliations
Definitions & Reconciliations 29
Slide 31: Definitions
Definitions Adjusted EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) represents the sum of net income / (loss), net interest and finance costs, depreciation and amortization and, if any, income taxes during a period. EBITDA is not a recognized measurement under U.S.
Slide 32: Reconciliations
Reconciliations EBITDA Reconciliation Amounts in $ thousands Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Net (loss)/income 3,671 5,935 7,140 493 (4,185) 678 (5,040) 10,829 10,161 14,127 Add: Net interest and finance 2,850 3,168 3,949 4,896 5,265 4,937 4,983 4,965
Slide 33: Reconciliations (Cont'd)
Reconciliations (Cont’d) Net Debt Reconciliation Amounts in $ thousands 6/30/24 12/31/22 Debt, finance lease liability and other financial liabilities, net of deferred finance costs 247,625 255,699 Less: Cash and cash equivalents and restricted cash 38,224 32,477 Net Debt 209,401 22923s2,672223,222
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