Eurodry Ltd. · NASDAQ:EDRY
Eurodry — Investor Presentation (December 2018)
27 slides from Eurodry's investor presentation, December 2018
Slide 1: EuroDry Ltd. December 2018
EuroDry Ltd. December 2018
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: A Strategic Evolution
A Strategic Evolution BULKERS (EURODRY LTD) CONTAINERSHIPS A traditional Greek shipping company (EUROSEAS LTD) NEW EQUITY / that has adapted its strategy to the FLEET RENEWAL changing times and opportunities… 2018: Separation of fleets PRIVATE 2014 EQUITY PUBLIC 2010 MARKETS CONTAINER- 2005-2007 SHI
Slide 4: Drybulk & Containership Fleet Separation
Drybulk & Containership Fleet Separation EuroDry Ltd. (“EuroDry”, NASDAQ: EDRY) was spun-off from Euroseas Ltd. (“Euroseas”) on May 30, 2018 as a pure drybulk carrier owner to provide worldwide ocean-going transportation services for … … transporting major bulks (iron ore, coal and grains) and m
Slide 5: Reasons For The Spin-Off
5 Reasons For The Spin-Off Maximize shareholder value Euroseas’ stock before the spin-off was trading around 40% of its NAV, while most public peers - which are all “pure-play” companies - traded close to their NAV Euroseas’ mixed fleet strategy was, likely, the main reason for the trading dis
Slide 6: The Spin-off Created Shareholder Value
The Spin-off Created Shareholder Value » Combined price after spin-off averaged $3.32/share compared to $2.24/share prior to the spin-off, a 48% gain Euroseas & EuroDry Share Price development $4.0 $3.5 EDRY, adjusted for share count $3.0 ESEA after spin-off ESEA prior spinoff $2.5 $2.0 $1.5 $1.0 $0
Slide 7: EuroDry – Drybulk Fleet & NAV Calculator
EuroDry – Drybulk Fleet & NAV Calculator Notes: BULKERS Proforma Proforma adjustments Year As of during 2018Q4: Size 1) Acquisition of M/V Name Type DWT Built 9/30/2018 (million USD) Starlight for $10.2m Ekaterini Kamsarmax 82,000 2018 Value of Vessels (1) 114.8 2) Refinancing of loan facilities of
Slide 8: Pillar of Success: Fleet Management & Operational Performance
Pillar of Success: Fleet Management & Operational Performance Focus on cost control & quality operations Daily costs per vessel(1) 10,000 Combined Euroseas’ & EuroDry’s fleet 9,000 utilization exceeded 99.4% over last 5 years 8,000 7,000 Outstanding safety and environmental record 6,000 $ / day
Slide 9: Sulfur Emissions Regulations (IMO 2020)
Sulfur Emissions Regulations (IMO 2020) IMO regulation requires by 2020 the use of fuels with a maximum sulfur content of 0.5% vs present limit of 3.5% to minimize effects of acid rain on human health and the environment (forests, rivers, lakes etc). Compliance can be achieved either by using co
Slide 10: Further Considerations For Scrubber Installation
Further Considerations For Scrubber Installation In addition to the cost differential of compliant and high sulfur fuels, the following factors – among others- might also influence the decision to invest in scrubbers: Availability of the two types of fuels at different ports With the big majorit
Slide 11: Our Own Scrubber Strategy
Our Own Scrubber Strategy We are planning to rely on compliant fuel to satisfying the sulfur emissions requirement … …based on a number of reasons: We believe that since 95% of owners will rely on compliant fuels sulfur compliant fuel will soon become available at competitive prices compared to
Slide 12: Other Regulations: Ballast Water Treatment (BWT)
Other Regulations: Ballast Water Treatment (BWT) Ballast Water Treatment Ballast water would require treatment before disposal back to the sea to prevent transfer of organisms from different areas All vessels need to have BWT by their first drydocking after 1/1/2016 in order to be able to trad
Slide 13: EuroDry Ltd. – Drybulk Market Review
EuroDry Ltd. – Drybulk Market Review
Slide 14: Orderbook-to-fleet
Fleet Growth & Orderbook-to-Fleet Ratio, Drybulk Fleet Orderbook as Percentage of Total Fleet Near Lowest Level of the Last 20+ Years 100% 18% 90% 16% Orderbook-to-Fleet ratio 80% 14% Fleet Growth (y-o-y) 70% 12% Orderbook-to-fleet 60% 10% Fleet Growth 50% 8% 40% 6% 30% 4% 20% 2% 10% 0% 0% -2% Jan-1
Slide 15: Drybulk Age Profile & Orderbook Delivery Schedule
Drybulk Age Profile & Orderbook Delivery Schedule Dry Bulk Age Profile Dry Bulk Orderbook 7% of the fleet is over For delivery in 18/19/20+ 20 yrs old m dwt 400 as of Oct-18): 380 44% Cape 19/74/100 360 Panamax 25/114/94 340 320 H/S/Umax 35/85/79 300 14.2% 11.1% Handies 30/65/30 280 29% 158.4 260 24
Slide 16: Drybulk Trade Trends
Drybulk Trade Trends m. tons Iron Ore m. tons Coal 1,600 1,400 1,400 1,200 1,200 1,000 1,000 800 DRYBULK TRADE Growth p.a. (%) 800 600 (tons, m) 2010-2018 2015-2018 600 400 400 Iron Ore 5.1% 2.7% 200 200 Coal 3.7% 3.0% - - Grain 5.4% 4.2% Minor Bulk 3.0% 2.2% TOTAL (tons) 3.9% 2.7% m. tons Grain m.
Slide 17: Drybulk 1-Yr Charter Rates, 2009-2018
Drybulk 1-Yr Charter Rates, 2009-2018 Drybulk Markets Have Recovered From All Time Historical Lows 35,000 30,000 Panamax Supramax 25,000 20,000 $ / day 15,000 10,000 5,000 0 09.01 10.01 11.01 12.01 13.01 14.01 15.01 16.01 17.01 18.01 Source: Clarksons Note: Since April-1 the tess-58 Supra rates have
Slide 18: Drybulk Markets Fluctuated Widely Over Last Two Decades
Drybulk Markets Fluctuated Widely Over Last Two Decades Panamax 1-Year Time Charter Rate Panamax 10-Year Historical Price Range $/day $m 90,000 90 80,000 Avg Panamax Rate 80 Avg Panamax Price (excl. 2 highest and 2 (excl. 2 highest and 70,000 70 lowest years) 2 lowest years) 60,000 60 50,000 50 40,0
Slide 19: Outlook Summary – Bulkers
Outlook Summary – Bulkers Limited Fleet Growth – one of the lowest orderbook levels in 20 years Possibility of supply squeeze due to regulations Recent demand trends will result in a further improving market China remains a key economy to watch due to its contribution to drybulk trade growth
Slide 20: EuroDry – Market Strategy & Position
EuroDry – Market Strategy & Position
Slide 21: Employment Chart – EuroDry Fleet-updated
Employment Chart – EuroDry Fleet-updated Coverage: 45% in 2019 basis min durations and including Index Charters 2018 2019 Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PANTELIS $9,650 $9,400 $9,800 $11,500 $11,00$9,050 TASOS
Slide 22: Total Operating And G&A Costs – 2018 H1
Total Operating And G&A Costs – 2018 H1 EuroDry and Peers Total Expenses Comparison 8,000 G&A & Mgt Fee 7,000 Running Exp 6,000 USD per Vessel/Day 5,000 4,000 3,000 2,000 1,000 0 EGLE DSX EDRY GNK SBLK SB Vessels= 47.3 49.7 5.3 59.7 72.4 38.9 Company Note: Market peers include: DSX, EGLE, GNK, SB, S
Slide 23: EuroDry Debt Profile, Pre- and Post-Refinancings
EuroDry Debt Profile, Pre- and Post-Refinancings $25 Debt Repayment Profile Cash Flow Breakeven Budget estimate for next 12 months (post-refinancing & vessel acquisition): $20 $18.6m $/vessel/day $18.6m OPEX $ 5,100 $15 G&A $ 900 million Drydock $ 750 $7.6m $6.6m Interest $ 1,500 $10 $4.3m $8.8m $1.
Slide 24: EuroDry EBITDA Calculator
EuroDry EBITDA Calculator Management believes EuroDry is positioned to take advantage of any market recovery About 35% of the remaining available days in 2019 and 5% in 2020 are contracted with fixed charter rates leaving significant capacity (days) available to benefit from a market upturn… EBI
Slide 25: EuroDry - Valuation Comparables
EuroDry - Valuation Comparables P / NAV EV/2019E EBITDA 1.5x 10.0x 9.2x 8.8x 9.0x 8.0x 7.0x 6.2x 1.0x 0.9x 0.8x 6.0x 5.3x 5.1x 0.7x 4.6x 0.7x 0.7x 5.0x 0.5x 4.0x 3.2x 0.5x 0.5x 3.0x 10,6 2.0x 1.0x 0.0x 0.0x EDRY DSX SB GNK SBLK SALT GOGL EDRY DSX SB GNK SBLK SALT GOGL Sources: Comparables - Morgan S
Slide 26: Why EuroDry?
Why EuroDry? • The drybulk sector is at an attractive point in the cycle for growth • Focused on the most rewarding size segments, Ultramax to Kamsarmax, maintaining cargo diversification and benefit from economies of scale in lot size • Conservative leverage of 50-55% • Sponsor with significant sta
Slide 27: EuroDry Contacts
EuroDry Contacts EuroDry Ltd. c/o Eurobulk Ltd 4, Messogiou & Evropis Street 151 24 Maroussi, Greece www.eurodry.gr info@eurodry.gr Tel. +30-211-1804005 Fax.+30-211-1804097 or, Tasos Aslidis Nicolas Bornozis Chief Financial Officer Investor Relations EuroDry Ltd. Capital Link, Inc. 11 Canterbury Lan