Goldman Sachs 4th Annual Global Shipping Conference. November 13, 2007

Transcription

1 Goldman Sachs 4th Annual Global Shipping Conference November 13, 2007

2 Notice on Forward Looking Statements This presentation contains certain statements that may be deemed to be forward-looking statements within the meaning of the Securities Exchange Act of All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including, without limitation, the outlook for fleet utilization and shipping rates, general industry conditions including bidding activity, future operating results of the Company s vessels, capital expenditures, asset sales, expansion and growth opportunities, bank borrowings, financing activities and other such matters, are forward-looking statements. Although the Company believes that its expectations stated in this presentation are based on reasonable assumptions, actual results may differ from those projected in the forward-looking statements. For a more detailed discussion of risk factors, please refer to the Company s Annual Report filed on Form 20-F with the SEC on March 15, EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes, if any, plus the restricted-stock portion of deferred stock-based compensation, which is a non-cash item. EBITDA is included because it is used by certain investors to measure a company s financial performance. EBITDA is a non-gaap financial measure and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity. EBITDA is presented to provide additional information with respect to the Company s ability to satisfy its obligations including debt service, capital expenditures, working capital requirements and determination of dividends. While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation. 1

3 Who Are We? Asset growing vehicle Since Aug 2005 IPO, strong contracted growth, increased: Fleet 23 to 63 containerships Assets $1.5 billion to ~$5.3 billion Annualized revenues $119 million to over $640 million Annualized EBITDA $85 million to over $500 million ~6% yield Dividend growing vehicle Synthetic MLP structure to grow distributable cash flow and dividends to shareholders on a long-term, stable and sustainable basis Globalization infrastructure play Container shipping is part of the globalization infrastructure for trade in/out of China Active asset manager Technical expertise award winning vessel designs and low cost operations to be the leading vessel outsourcing provider of choice Financial engineering achieve the lowest cost of capital in industry 2

4 Virtuous Circle in Asset Growth Total Return to Shareholders = Dividends + Share Appreciation 1. Asset Growth 2. Accretive Stable Cash Flows Re-invest Capex Reserve 5. Equity Issuances At Accretive Price Per Share 3. Dividend Increase For Shareholders 4. Higher Share Price For Shareholders 3

5 Recent Success October 29 September 10 August 14 August 9 6% Dividend increase proposed for 4Q07 3Q results announced - Revenue up 80%, normalized EBITDA up 20% (vs. 2006) Increase in quarterly dividend to $0.475 proposed for 4Q07 Accretive growth Eight newbuild TEU vessels Assets $1.5 billion or 37% growth Contracted Revenue $1.9 billion or 38% growth Annualized Revenues $163 million or 33% growth Annualized EBITDA $136 million or 37% growth Completed $149 million follow-on equity offering Offering priced at $33.05 per share or 57% higher than IPO price ($21) Closed $920 million debt facility Diversified lender base and opened new debt sources from Chinese banks Pricing at 50bps over LIBOR August 9, 2007 $920m Senior Secured Reducing Revolving Credit Facility 2 x 2500 K-Line 4 x 4250 CSAV 8 x 8500 COSCON August 14, 2007 $149m Follow-On Equity Offering 4.5m Common Shares Priced $33.05 Per Share Sept 10, 2007 Coscon 8 x TEU Newbuilds worth $1.5b Oct 29, % Dividend Increase Proposed for 4Q07 4

6 Link In Globalization Infrastructure China / Asia From Manufacturing Countries Infrastructure Link USA To Consumer Countries 5

7 Our Vision Become the leading containership asset manager Build a substantial base of assets to drive enhanced value through a portfolio of over 100 vessels worth $7 to $10 billion by 2010 Continue to grow distributable cash flows with the goal to reward our shareholders through increased dividends 6

8 Our Strategies 1. Expand our fleet Selectively pursue long-term, fixed-rate time charters for both newbuilds/secondhands Accretive acquisitions only 2. Apply portfolio approach active asset management company Charterers Ship sizes/mix Charter lengths and expiries Banks and financing products 3. Fix or control costs to achieve cash flow stability Fixed interest costs Fix operating costs 4. Maintain an optimal capital structure Assure low capital costs and maximum liquidity to fund growth 5. Provide superior vessel operations 6. Build a world-class team 7

9 Recharter Renewal Management Our average charter fixture is 8 years on existing vessels and 11 years on newbuildings Vessel Charter Maturities to Firm Option Recharter Life CSCL Hamburg CSCL Chiwan CSCL Ningbo CSCL Dalian CSCL Felixstowe CSAV 4250#1 CSAV 4250#2 CSAV 4250#3 Maersk Merritt - MSC Sweden Maersk Moncton CSAV 4250#4 Maersk Marystown Maersk Matane CSCL Vancouver CSCL Sydney CSCL New York CSCL Melbourne CSCL Brisbane New Delhi Express Dubai Express Jakarta Express Saigon Express Lahore Express Rio Grande Express Santos Express CSCL Zeebrugge COSCON Fuzhou Rio de Janeiro Express Manila Express COSCON Yingkou CSCL Long Beach CSCL Oceania CSCL Africa K-Line 2500#1 CSCL 2500#1 K-Line 2500#2 CSCL 2500#2 CSCL 2500#3 CSCL 2500#4 CSCL 2500#5 CSCL 2500#6 CSCL 2500#7 MOL 5100#1 MOL 5100#2 CSCL 2500#8 MOL 5100#3 MOL 5100#4 COSCO 13100#1 COSCO 13100#2 COSCO 13100#3 COSCO 13100#4 COSCO 13100#5 COSCO 13100#6 COSCO 13100#7 COSCO 13100#8 COSCON 8500#1 COSCON 8500#2 COSCON 8500#3 COSCON 8500#4 COSCON 8500#5 COSCON 8500#6 COSCON 8500#7 COSCON 8500#8 8

10 EBITDA Growth EBITDA is expected to grow to over $500 million in 2012 $600 Expected EBITDA ($ in Millions) $500 $400 $300 $200 Dividend increase of 5% paid 1Q07 Dividend increase of 6% to be paid 1Q08 61% CAGR $100 $ IPO Fleet-CSCL IPO Fleet-HL COSCON 2x3500 CSCL 8x2500 Maersk 4x4800 MOL 4x5100 K-Line 2x2500 CSAV 4x4250 COSCON 8x8500 COSCON 8x Based on contracted vessel delivery dates.

11 Investment Highlights 1. Modern fleet of 63 containerships with current operating fleet age averaging 4.5 years 2. Management has significant industry experience 3. Optimal capital structure to fund accretive vessel acquisitions 4. Market capitalization of ~$1.8 billion and asset value of ~$5.3 billion 5. Top notch customers represent 7 of top 16 liner companies 6. Proven growth strategy with 40 vessel acquisitions since IPO 7. Stable cash flows generated from long-term fixed rate time charters 8. Container shipping demand growth has averaged 10% per year over the last 20 years 9. Independent board members and incentive share structure for management 10. No entity level taxes, attractive dividend yield with possible tax advantages 10

12 11 Thank you for your time