Seanergy Maritime Holdings Corp. · NASDAQ:SHIP
Seanergy Maritime — Proxy Contest (October 2024)
33 slides from Seanergy Maritime's proxy contest presentation, Oct 15, 2024
Slide 1: Investor Presentation October 2024
Investor Presentation October 2024 Seanergy Maritime Holdings Corp.
Slide 2: Forward-looking statements
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 statements of historical
Slide 3: Seanergy Is Delivering Value for ALL Shareholders
2 Source: Company filings and presentations Note: Total shareholder returns defined as the compound total return, with dividends reinvested on the ex-date Calculated as of 10/7/24 Seanergy peers defined as Diana Shipping, Genco, Golden Ocean, Safe Bulkers and Star Bulk Seanergy Is Delivering Value f
Slide 4: Seanergy Is Delivering Value for ALL Shareholders (Cont'd)
3 Source: Company filings and presentations Seanergy Is Delivering Value for ALL Shareholders (Cont’d) Optimizing Our Cost of Capital to Drive Growth Providing Shareholders with Increasing Capital Returns Independent, Experienced Board Overseeing Value Creation We have deployed our strong cash gener
Slide 5: Economou's Self-Serving Campaign Threatens Shareholder Value
4 Over the period from DryShips’ IPO on 1/23/05 to completion of its take private on 10/11/19 Over the period from DryShips’ acquisition of Ocean Rig UDW on 9/19/11 to Ocean Rig UDW filing for Chapter 15 bankruptcy on 3/28/17 Economou’s Self-Serving Campaign Threatens Shareholder Value Since investi
Slide 6: Executing Our Strategy For Substantial Value Creation
5 Executing Our Strategy For Substantial Value Creation
Slide 7: Strategy Delivering Strong Shareholder Returns and Momentum
6 Strategy Delivering Strong Shareholder Returns and Momentum Total shareholder returns have outperformed dry bulk peers over the last year Source: FactSet (10/7/24), Company filings and presentations Note: Total shareholder returns defined as the compound total return, with dividends reinvested on
Slide 8: Performance Is the Result of Our Purposeful Transformation
7 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 Source: Company filings and presentations 1. Seanergy peers defined as Diana Shipping, Genco,
Slide 9: Fleet Overview and Fleet Growth
8 Fleet Overview Fleet Growth Well-positioned Through Pure-play Capesize Strategy Seanergy has nearly doubled its total fleet capacity since 2020 Source: Company filings and presentations 1. Period time-charter contracts (“T/C”) are based on the T/C average of the 5 main routes of the Baltic Capesiz
Slide 10: Strong Relationships with World Leading Charterers
9 Source: Company filings and presentations Strong Relationships with World Leading Charterers 9 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 p
Slide 11: Disciplined and Efficient Fleet Acquisition and Operational Strategy
10 Source: Company filings and presentations 1. Calculated as most recently disclosed vessel net book value / DWT of fleet; industry average defined using Seanergy peers (Diana Shipping, Genco, Golden Ocean, Safe Bulkers and Star Bulk) Disciplined and Efficient Fleet Acquisition and Operational Stra
Slide 12: Benefitting from A Strong Capesize Outlook
11 Benefitting from A Strong Capesize Outlook Source: Clarksons (10/7/24); Company filings and presentations 1. Represents 2024E supply and demand growth 1.8% 4.4% Supply Growth +2.6% Demand Growth 1 The Capesize supply outlook is highly constrained The orderbook for the Capesize fleet remains at hi
Slide 13: Strong Fundamentals and Hedging To Secure Attractive Rates
12 Strong Fundamentals and Hedging To Secure Attractive Rates Seanergy Continues to Record Impressive Commercial Results Enhancing Revenue Visibility Source: Company filings and presentations Forward options have enabled Seanergy to increase revenue visibility and de-risk the business by locking in
Slide 14: Strong Profit Margins and High Cash Flow Visibility
13 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 Source: FactSet (10/7/24), Company filings and presentations 1
Slide 15: Positioned to Deliver Robust Free Cash Flow Generation
14 $21 $28 $39 $48 $58 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 fro
Slide 16: Deploying Strong Cash Flows to Reduce Leverage
15 Deploying Strong Cash Flows to Reduce Leverage 3.4x 2.5x YE 2022 Q2 '24 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% 41% YE 2022 Q2 '24 Net Debt / LTM Adjusted EBITDA 41% Q2 24 YE 2
Slide 17: Delivering Increasing Capital Returns to Shareholders
16 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 Source: Company filings Note: Per share dividend amounts includ
Slide 18: Analysts Recognize Seanergy's Performance and Substantial Upside
17 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 Source: Wall Street Research Note: Permission to use quotes neither sought nor obtained 1. Based on Seanergy’s 10/7/24 share price
Slide 19: Differentiated Capesize Strategy Overseen by Directors with Relevant Experience
18 Source: Company filings and presentations Differentiated Capesize Strategy is Overseen by Directors with Relevant Experience and Expertise = Up for election at 2024 AGM 4 / 5 Independent Directors 100% Fully-independent Board committees Ioannis Kartsonas Independent Director 20+ years of experien
Slide 20: Committed to Strong Governance Aligned with Strategy
19 Committed to Strong Governance Aligned with Strategy Source: Company filings and presentations The first and only Greek shipping company to secure EU funding and partnerships under SAFeCRAFT for maritime propulsion innovation and utilization of alternative fuels Pioneered alternative fuel studies
Slide 21: Economou's Self-serving Campaign Puts Shareholder Value At Risk
20 Economou’s Self-serving Campaign Puts Shareholder Value At Risk
Slide 22: Economou Is Pursuing Aggressive and Coercive Tactics
21 Source: Company filings and presentations 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 Without prior notice, initiated litigation over 2021 preferred
Slide 23: Economou's Actions Consistent With Other Self-Serving Campaigns
22 Source: Other public company filings and presentations Calculated based on Ocean Pal’s market capitalization as of 5/17/24 Genco Shipping & Trading Issues Statement Regarding George Economou’s Withdrawal of his Nominee dated 5/16/24 Schedule 14D-9-A filed by Performance Shipping (11/6/23) Economo
Slide 24: Economou: A Track Record of Value Destruction and Self-Dealing
23 Source: Other public company filings and presentations. Note: Total shareholder returns defined as the compound total return, with dividends reinvested on the ex-date Based on the proceeds from common stock issuances disclosed by DryShips, Inc. in their 20-F filings for the years ended 12/31/05;
Slide 25: Economou's Shareholder Destruction at DryShips
24 Source: FactSet, Other public company filings and presentations Note: Total shareholder returns defined as the compound total return, with dividends reinvested on the ex-date Based on the proceeds from common stock issuances disclosed by DryShips, Inc. in their 20-F filings for the years ended 12
Slide 26: Ocean Rig: A Cautionary Tale
25 Source: FactSet, Other public company filings and presentations Note: Total shareholder returns defined as the compound total return, with dividends reinvested on the ex-date 1. Over the period from DryShips’ acquisition of Ocean Rig UDW on 9/19/11 to Ocean Rig UDW filing for Chapter 15 bankruptc
Slide 27: Economou's Nominees Are Underqualified
26 Source: Other public company filings and presentations Form EX-99.1 filed by DryShips Inc. (7/8/19) Form F-1/A filed by Ocean Rig UDW (10/10/17) Economou’s Nominees Are Underqualified and Have a Long-History of Facilitating Economou’s Value Destruction and Self-dealing Economou’s nominees’ main q
Slide 28: The Choice Is Clear: Support Seanergy's Board Today
27 Source: Company filings and presentations The Choice Is Clear: Support Seanergy’s Board Today Reject Economou’s Campaign for Effective Control Over Seanergy Economou has a long and well-documented track record of value destruction and self-dealing Economou oversaw substantial value destruction at
Slide 29: Vote the WHITE Proxy Card FOR Seanergy's Two Nominees
28 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 Ioannis Kartsonas as Class C Directors Vote “AGAINST” Proposal 3, Proposal 4A
Slide 30: Definitions & Reconciliations
29 Definitions & Reconciliations
Slide 31: Definitions
30 Source: Company filings and presentations 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. EBIT
Slide 32: Reconciliations: EBITDA
31 Source: Company filings and presentations 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 cos
Slide 33: Reconciliations (Cont'd): Daily TCE and Net Debt
32 Source: Company filings and presentations Reconciliations (Cont’d) Daily TCE Reconciliation Amounts in $ thousands, except for TCE and operating days Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Net revenues from vessels 29,666 32,847 32,963 27,153 17,384 27,646
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