Slide 1: Three & Nine Months Ended September 30, 2010 Earnings Presentation
Three & Nine Months Ended September 30, 2010 Earnings Presentation November 16, 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 Third Quarter & First Nine Months Overview
2010 Third Quarter & First Nine Months Overview • Financial Highlights - 2010: Third Quarter First Nine Months Net Revenues $12.2 m $39.7 m Net Loss ($3.2) m ($0.10) / ($5.7) m ($0.18) / share(2) share(2) Adj. Net Loss(1) ($1.4) m ($0.04) / ($0.5) m ($0.02) / share(2) share(2) Adj. EBITDA(1) $3.5 m
Slide 4: Recent Developments
Recent Developments » Reactivated and chartered containership m/v Jonathan P 1990-built gearless 1932 teu • Vessel was laid up since March 2009 • The Company has no laid-up vessels remaining • All vessels are now chartered into 2011 except Despina P which is to undergo scheduled drydock and will bec
Slide 5: 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 6: Euromar Fleet
Euromar Fleet Size Year Name Type DWT TEU Built CMA-CGM TELOPEA Intermediate 37,180 2,785 2007 EM ATHENS Intermediate 32,350 2,506 2000 EM CHIOS Intermediate 32,350 2,506 2000 MAERSK NAIROBI Intermediate 33,771 2,556 2001 EM HYDRA Handy 23,570 1,740 2005 EM SPETSES Handy 23,570 1,740 2007 Total 6 ve
Slide 7: Dividend Declaration
Dividend Declaration $0.5 25% • Declared the 21th consecutive $0.4 20% dividend of $0.06 per share for the quarterly dividend annualized yield third quarter of 2010 $0.3 15% • Annualized yield of about 6% (1) $0.2 10% • Intention to maintain policy of providing healthy dividends $0.1 5% throughout m
Slide 8: Investment Opportunities
Investment Opportunities 1-Year TC Rates 10-yr old Price Historical Range 90,000 90 80,000 Panamax 72-75,000 dwt 80 M ax, 19 9 9 - 2 0 0 9 Containership 1700 teu A ver ag e, 19 9 9 - 2 0 0 9 70,000 70 M in, 19 9 9 - 2 0 0 9 60,000 60 C ur r ent , N o v- 2 0 10 50,000 50 million USD $ / day 40,000 40
Slide 9: Fleet Management & Operational Performance
Fleet Management & Operational Performance Daily costs per vessel (1) » Operational fleet utilization rate in excess of 98.5% 10,000 over last 5 years 8,000 • Outstanding safety and environmental record $ / day 6,000 • For 2010Q3, operational fleet utilization 99.0% 4,000 and commercial 100% 2,000 »
Slide 10: Vessels Employment Chart – Bulkers
Vessels Employment Chart – Bulkers 80% in 2010 / 60 % in 2011 / 10% in 2012 IRINI Spot Pool / 100% FFA-10,950 Spot Pool / 100% FFA-$16,500-$23,500 $17,500 MONICA P Spot Pool / 100% FFA-10,970 ELENI P. $15,350 PANTELIS $25k $17,500 ARISTIDES N.P. $12.3k $18,900 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '
Slide 11: Vessels Employment Chart – Containerships
Vessels Employment Chart – Containerships Coverage abt 90% in 2010 / abt 60% in 2011 Container Ship Vessels JONATHAN P D/D $7.5k $9,000 Multi-purpose Vessel DESPINA P $7,500/ DD KUO HSIUNG $3,850 $5,300 CAPTAIN COSTAS $4,250 TIGER BRIDGE $4,000 7,500 til March '12 NINOS $6,800 MANOLIS P $4,000 $7,69
Slide 12: Market Overview
Market Overview
Slide 13: World GDP & Shipping Demand Growth
World GDP & Shipping Demand Growth Real GDP (% p,a,) 2007 2008 2009 2010f 2011f 2012-15f USA 2.5 1.1 -2.4 2.6(3.3) 2.3 (2.9) 2.8 Eurozone 2.7 0.8 -4.1 1.7 (1.0) 1.5 (1.3) 1.8 Japan 1.9 -0.7 -5.2 2.8 (2.4) 1.5 (1.8) 1.8 China 11.2 9.0 8.7 10.5(10.5) 9.6(9.6) 9.5 India 9.0 7.3 5.7 9.7(9.4) 8.4 (8.4) 8
Slide 14: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook (1) m dwt m dwt 140 210.0 38.6% 130 For delivery in 2010/11 27.3% 200.0 120 (vessels-as of October 20.9% 190.0 180.0 110 2010): 170.0 160.0 87.3 100 Cape 93/299 150.0 90 62.80 140.0 Panamax 108/349 56.90 12.5%
Slide 15: Containership Age Profile & Orderbook Delivery Schedule
Containership Age Profile & Orderbook Delivery Schedule Containership Age Profile(1) Container Orderbook (1) 49 % m TEU 14.3% 7.2 m TEU 16.0% 6.8 2.0 11.6% 6.4 6.0 5.6 1.6 13 .8% 5.2 7.9% 4.8 3.40 23.2% 5.6% 0.79 4.4 4.0 1.2 1.26 3.6 15.1% 0.6 3.2 1.4 2.8 0.8 0.54 2.4 1.90 1.52 7.1% 0.44 1 2.0 0.54
Slide 16: Market Trends & Opportunities – Bulkers
Market Trends & Opportunities – Bulkers » Drybulk trade growth is expected to be strong for 2010 and remain healthy (6%+) in 2011 and 2012 • Trade growth has been running around 8% p.a. in 2010 and is expected such in the rest of the year • China’s imports and global economic recovery have set the t
Slide 17: Market Trends & Opportunities - Containerships
Market Trends & Opportunities - Containerships » Charter rates and vessel prices significantly recovered in 2010H1 but recovery stalled during Q3. » Containerized trade growth is forecast above 11% for 2010 and above 10% for 2011 » Charter rates for feeder and up to Panamax size vessels continue to
Slide 18: Financial Overview
Financial Overview
Slide 19: Financial Highlights: 3rd Quarter and First Nine Months of 2009 and 2010
Financial Highlights: 3rd Quarter and First Nine Months of 2009 and 2010 Third Quarter First Nine Months (in million USD except per change change share amounts) 2009 2010 % (4) 2009 2010 % (4) Net Revenues $17.2 $12.2 -28.8% $47.3 $39.7 -16.1% Net Income $2.2 ($3.2) $0.7 ($5.7) (Gain) / loss on deri
Slide 20: Fleet Data for 3rd Quarter and First Nine Months of 2009 and 2010
Fleet Data for 3rd Quarter and First Nine Months of 2009 and 2010 Fleet Statistics Third Quarter First Nine Months 2009 2010 2009 2010 (unaudited) (unaudited) (unaudited) (unaudited) Number of vessels 16.79 16.00 16.17 15.37 Utilization Rate (%) Overall(1 ) 96.2% 99.0% 95.2% 99.4% Commercial(1 ) 96.
Slide 21: Rapid Debt Repayment
Rapid Debt Repayment Debt Repayment Schedule – As of 11/15/2010 Cash Flow Breakeven $30 » Cash Flow Breakeven rough estimate $25 for next 12 months: $/day $20 OPEX(1) $ 5,600 million $15 3.7 9.9 G&A $ 700 25.6 1.0 2.2 9.6 Interest $ 450 $10 0.0 13.8 Drydock $ 800 7.3 $5 9.9 11.4 10.1 9.9 Loan Rpmt(2
Slide 22: Balance Sheet & Other Data
Balance Sheet & Other Data » Cash @ September 30, 2010: about $ 25.8m • $17.3 m unrestricted – abt $8.5m working capital and restricted » Debt: $62.5 m as of September 30, 2010 • Debt to Capitalization ratio about 22% • In Q4 2010, drawn loan of $8.5m against recently acquired vessel, M/V Aggeliki P
Slide 23: Euroseas Contacts
Euroseas Contacts Euroseas Ltd. Aethrion Center 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 Canter
Slide 24: Appendix
Appendix Please refer to the Company’s press release of November 15, 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 24