Euroseas Ltd. · NASDAQ:ESEA
Euroseas — Euro Pacific Global Investment Conference 2012
28 slides from Euroseas's conference presentation, May 31, 2012
Slide 1: Presentation to Euro Pacific Global Investment Conference
Presentation to Euro Pacific Global Investment Conference New York, NY May 31, 2012
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 & Milestones
Introduction & Milestones » Euroseas is a provider of worldwide dry cargo transportation services and owner of ships • Container and multipurpose ships – transporting dry and refrigerated cargoes • Drybulk carriers – transporting iron ore, coal and grains and minor bulks » Corporate Profile • Formed
Slide 4: Euroseas Strategic Evolution
Euroseas Strategic Evolution A traditional Greek shipping PRIVATE company that has adapted its EQUITY strategy to the changing times and opportunities… PUBLIC 2010-12 MARKETS 2005-2007 CONTAINER -SHIPS 2000’s … building on its time-tested strengths: love for operating ships, cost control, and, BULKE
Slide 5: Euromar LLC Joint Venture
Euromar LLC Joint Venture » Euromar, a joint venture of Euroseas with Eton Park and Rhône Capital, was formed in March 2010 with a total capital commitment of $175m • Done to provide access to capital to take advantage of opportunities in the containership sector without dilution to Euroseas shareho
Slide 6: Current Fleet (not including Euromar vessels)
Current Fleet (not including Euromar vessels) Size Year Acquisition Name Type DWT TEU Built Year 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 Intermed
Slide 7: Euromar Fleet
Euromar Fleet Name Type DWT TEU Built CAP NORTE (1) Intermediate 41,850 3,091 2007 CMA-CGM TELOPEA Intermediate 37,180 2,785 2007 EM ASTORIA Intermediate 35,600 2,778 2004 MAERSK NAIROBI Intermediate 34,654 2,556 2001 EM CHIOS Intermediate 32,350 2,506 2000 EM ATHENS Intermediate 32,350 2,506 2000 E
Slide 8: Rights Offering In Progress
Rights Offering In Progress Raise up to $15 million by offering approximately 13.85 million shares at $1.10 /share All shareholders of record as of May 14, 2012 are eligible to participate Rights Offering ends at 5:00 p.m., Eastern Daylight Time, on June 15, 2012, unless we extend the expirati
Slide 9: Current Euroseas & Euromar Fleet Acquisition Times
Current Euroseas & Euromar Fleet Acquisition Times 70 60 Dry Bulk (Panamax) Containership (1700 teu) 50 million $, 15-yr old vessels 40 30 Aristides NP Maersk Noumea Tiger Bridge 20 Clan Gladiator Xingang Despina P Pantelis Tasman Manolis P Eleni P Irini Trader Monica P 10 Ninos Aggeliki P 10 EUROMA
Slide 10: Market Overview
Market Overview
Slide 11: Panamax & 1700 teu Containership 1-yr TC Rates
$ / day 19 93 - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 0 19 01 94 - 19 01 95 - Source: Clarksons 19 01 96 - 19 01 97 - 19 01 98 - 19 01 99 - 20 01 00 - 20 01 01 - Panamax 75,000 dwt 20 01 Containership 1700 teu 02 - 20 01 03 - 20 01 04 - 20 01 05 - 20 01 06 Panamax & 1700 teu
Slide 12: World Economic Growth
World Economic Growth Significant downside risks and political & economic uncertainties remain Some positives: US economy grew 3% in 2011Q4 and 2.2% in 2012Q1; US unemployment dropped to 8.1% in April ’12; Europe has built up some defense mechanisms (EFSF) against country member default
Slide 13: Seaborne Trade Shifts To Pacific Basin & Emerging Countries
Seaborne Trade Shifts To Pacific Basin & Emerging Countries Major Bulk Imports 2011 Containerized Trade 2011 (tons) In parentheses: (teu-miles) Other Region’s / Route’s Transpacific share in 2001 Intra-Reg / (18%) (19%) Other (12%) 16% 13% 14% China Europe (8%) (26%) 35% 14% FE-Europe North-South (2
Slide 14: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p.a. - IMF) 2009 2010 2011 2012F (*) 2013F (*) 2014-16F (*) USA -2.6 (-1.6) 2.8 (2.7) 1.8 (3.0) 2.1 (1.8) 2.4(2.2) 2.7 Eurozone -4.1 (-2.0) 1.8 (1.0) 1.6 (1.5) -0.3 (-0.5) 0.9(0.8) 1.8 Japan -6.3 (-2.6) 4.3 (1.7) -0.9 (1.7) 2.0(1.7) 1.7(1.6) 1.4 China 9
Slide 15: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook (1) m dwt 47.7% 8.5% of the fleet m 200 Is over 25 yrs old 160 For delivery in 12/13+ (scrapping is at 22.7% (as of Apr-12): 180 record levels) 140 Cape 257/159 160 Panamax 470/343 120 140 H’max 387/241 60.3 68
Slide 16: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile(1) m teu Container Orderbook (1) m TEU 2.2 7.2 42.6 % 6.8 2.0 6.4 6.0 1.8 10.0% 5.6 1.6 5.2 2.74 9.4% 9.0% 4.8 1.4 4.4 27.3% 8.4% 1.2 5.6% 4.0 3.6 1.06 Abt 1.0 0.84 3.2 1.13 1.49 2.8 15.8% 0.8 0.54 1.7 4.2% 1.04 0.94 1
Slide 17: A Challenging Market Environment All-Around!
A Challenging Market Environment All-Around! Drybulk Market Significant deliveries are expected in 2012, and, likely, in 2013 too, despite high expected scrapping there is simply too much tonnage to be delivered! Drybulk trade growth expectations having been negatively affected by slower world
Slide 18: Chartering, Operations & Investment Strategy
Chartering, Operations & Investment Strategy
Slide 19: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers Coverage: 100% in 2012 / 43% in 2013 ELENI P $16,500 ARISTIDES NP $10,300 IRINI $14,000 MONICA P $12,375 PANTELIS $17,500 $11,200+50/50 profit share One year Opt. @ 14,200 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Optional Physica
Slide 20: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage (as of May ‘12): Abt 59% in 2012 / Abt 11% in 2013 (based on min durations) (abt 78% in 2012 based on expected duration) MANOLIS P $10,500 $7,000 AGGELIKI P $12,500 $6,500 MARINOS $ 6,750 $6,100 $6,000 $8,250 Optional Periods NINOS $11,200 $7,375 Op
Slide 21: Fleet Management & Operational Performance
Fleet Management & Operational Performance Daily costs per vessel (1) 10,000 Operational fleet utilization rate in excess of 98.5% 9,000 over last 5 years 8,000 Outstanding safety and environmental record 7,000 6,000 For 2012Q1, operational fleet utilization 99.4% $ / day 5,000 and commercial
Slide 22: Market Snapshot – Investment Opportunities
Market Snapshot – Investment Opportunities 10-Year Secondhand Prices 90 80 Panamax 75,000 dwt 70 Containership 1700 teu 60 million $ 50 40 30 20 ? ? 10 0 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011- 2012- 01 01 01 01 01 01 01 01 01 01 01 01 Page 22
Slide 23: Strategy & Growth
Strategy & Growth » Euroseas strategy of investing in both containerships and bulkers worked well over the last five years: • Avoided investing in bulkers in 2007 and 2008 and maintained a revenue base well into 2009 due to our containership charters while investing in bulkers at the bottom of the m
Slide 24: Euroseas Market Position
Euroseas Market Position We have what it takes … » Strong balance with low leverage & funds available for investment » Secured revenue-base for 2012 from having chartered dry bulk fleet » One of the lowest cost operating structures » Team and experience … to take advantage of the opportunities ahead
Slide 25: 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 or, Tasos Aslidis Nicolas Bornozis Chief Financial Officer Investor Relations Euroseas Ltd. Capital Link, Inc. 11 Cant
Slide 26: Appendix: Selected Financial Information 2012 Q1 Vs. 2011 Q1
Appendix: Selected Financial Information 2012 Q1 Vs. 2011 Q1 Page 26
Slide 27: Financial Highlights: 1st Quarter 2011 and 2012
Financial Highlights: 1st Quarter 2011 and 2012 First Quarter (in million USD except per share change (4) amounts) 2011 2012 % Net Revenues $14.2 $13.9 -2.1% Net Income / Loss -$0.6 -$9.0 Loss on Sale of Vessel $0.0 $8.6 Unrealized & Realized (gain) / loss, -$0.2 $0.2 derevatives & investments Amort
Slide 28: Fleet Data for 1st Quarter of 2011 and 2012
Fleet Data for 1st Quarter of 2011 and 2012 Fleet Statistics First Quarter 2011 2012 (unaudited) (unaudited) Number of vessels 16.00 15.92 Utilization Rate (%) Overall 97.5% 87.1% Commercial 98.0% 87.6% Operational 99.5% 99.4% Averages in $/day/vessel Time Charter Equivalent (TCE) $ 11,088 $ 11,258
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