Company Presentation Presentation March 2011

Transcription

1 Company Presentation March 2011

2 Disclaimer Forward Looking Statement This presentation includes statements that are, or may be deemed to be, forward-looking statements as defined under U.S. federal securities laws. These forward-looking statements reflect the current views, forecasts, expectations, beliefs and projections of Globus Maritime Limited (the Company ) with respect to future events and financial performance and may include plans, objectives, intentions and other statements concerning, among other things, results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Company operates, all of which are not historical i facts. The forward-looking statements in this presentation are based on various assumptions, including without limitation, management s examination of historical operating trends, data from the Company s records and other data available from third parties. Because these assumptions are inherently subject to significant risks, uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company s control. Past performance, trends or activities of the Company or its shares cannot be relied on as a guide to future performance, trends or activities. The Company s actual results could differ materially from those anticipated in forward-looking statements for many reasons specifically as described in the Company s filings with the Securities and Exchange Commission. Accordingly, you should not unduly rely on these forward-looking statements, which speak only as of the date of this communication. The Company does not assume and expressly disclaims any obligationtoupdate these forward looking statements or to reflect the occurrence or non-occurrence of any events. You should, however, review the factors and risks the Company describes in the reports it will file from time to time with the Securities and Exchange Commission after the date of this communication. The financial information and data contained in this communication is unaudited and does not conform to the Securities and Exchange Commission Regulation S-X. Accordingly, such information and data may not be included in, may be adjusted in or may be presented differently in, the Company s filings with the Securities and Exchange Commission. This communication includes certain financial information that is not derived in accordance with generally accepted accounting principles ( GAAP ), and which may be deemed to be non-gaap financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company believes that the presentation of these non-gaap financial measures serves to enhance the understanding of the financial performance of the Company. However, these non- GAAP financial measures should be considered in addition to and not as substitutes for, or superior to, financial measures of financial performance prepared in accordance with GAAP. Please refer to the Company s filings with the Securities and Exchange Commission for a discussion of these non-gaap financial measures. 2

3 Market Update Report

4 Market Update Current themes Approx. 18mt of iron ore and coal were lost in January, majority being Cape cargoes. Source: Baltic Exchange Rates are expected to increase into Q2 as the various weather related disruption on the cargo side is likely to see a gradual return towards normal levels. High commodity prices may hold back demand for some time. S. American grain season supports ton mile growth in Q2. Some vessels returning to the market after having charters terminated by Korea Line. 4

5 Industry Overview 2011 trade volume expected to increase by 5% while tonnage supply by 14%. We believe Capesize sector to be most vulnerable, while the smallest ships are least vulnerable. Chinese GDP accelerated from 9.6% in Q to 9.8% in Q January recorded record iron ore imports of 69mt and record port inventories of 80.1mt. Demand for nickel, driven by China s stainless steel production continues to be strong. Chinese CPI rose by 4.9% in January against an annual government target of 4%, while non food prices rose 2.6% and food prices rose 10.3%. Chinese Central Bank trying to restrain money and credit growth, with 7 hikes in banks' reserve requirements (now at 20% for the large Chinese banks). This could ultimately have a negative effect on dry cargo demand Indian iron ore exports are -9% and further states t consider imposing i restrictions ti on iron ore exports adversely affecting the Indian freight market. 5

6 Industry Overview (continued) Disruptions to coal supply from Australia cause price increases that keep Chinese demand focused on cheaper domestic supplies. The unrest in many North African - Middle Eastern countries has affected and delayed some port operations but imports of wheat continue normally while the region has limited exports of fertilizers. Freight rates now constitute a smaller percentage of commodity prices. Inefficiencies in fleet utilization (caused by port congestion and increased ballasting) will influence freight volatility. Panamax fleet is getting more and more inefficient with limited back haul shipments which supports longer ton miles. Asset prices for modern tonnage currently at a disconnect with freight market. S&P market stagnates as sellers refuse to accept new price levels. 6

7 7 Dry Bulk Fleet Orderbook as per

8 Dry Bulk Fleet Age Profile, Scrapping & Orderbook Dry Bulk Orderbook (as % of existing fleet) (1/1/2011) Capes: 61.9% Panamax:56,1% Handymax:42% Handysize: 32.7% increase 75.9mDwt = +16.5% increase Scheduled :137.3mDwt Expect high slippage % Source: 8

9 Impact of Japan s earthquake Japan: 3 rd biggest global economy, well equipped and experienced in dealing with natural disasters. Main industrial and refining regions not seriously impacted. Logistical chains will be affected, yielding disruption and delays in production. Expected initial drop in shipping demand likely to be followed by strong recovery as industries restock and increase production during the rebuilding process. Disruptions should be dealt quickly because of just in time model of small stockpiles and efficient logistics chain. Japan has excess capacity as prior to the earthquake, steel production and refining utilization were running at levels well below maximum. Power supply situation should disrupt manufacturing and production output => impact export trade as production will focus on rebuilding process. Nuclear shutdowns will require alternative fuel supplies to plug the gap in power generation. Demand for Crude/Fuel oil, coal and LNG should increase. Within Q2 rebuilding will start which will require steel, timber, cement and other materials. Unknown what % of these materials will be provided locally or imported. Source: Galbraith s Market update 18/3/2011 9

10 Impact of Japan s earthquake (continued) Trade flows will be affected by reduced exports as domestic production channeled towards rebuilding efforts. Goods/products previously sourced from Japan may need to be covered by exports from other countries. Commodity demand likely to be firm in the future from Japan and/or other countries which may provide products to Japan or to countries which relied on Japanese goods. Global demand for commodities remains high and any volumes possibly not taken by Japan will find buyers elsewhere particularly if the current trend of falling prices continues. Further stimulus to coal and oil demand might be generated as other countries re-assess the current status and future of their own nuclear facilities. 6 refineries (1,4mb/day -31% of Japan s total capacity) have halted operations. Tokyo and all ports south of the capital are operating. 4 medium sized ports that handled mostly containers, grain, coal and other dry bulk cargoes are severely damaged and not expected to return to operation for many months. 5 coal powered power plants have been affected. Excess generating capacity from oil fired plants is now being used. Major commercial building shipyards have not been seriously affected. Grain imports are expected to increase while cement exports of 0,9mt/month will now most likely be used for domestic reconstruction forcing Far and South Eastern importers to import from other exporters. Source: Galbraith s Market update 18/3/

11 The Company

12 Company Highlights Formed in 2006 with $40m seed-equity from CEO and Non-Exec Chairman; Listed on AIM transferred to NASDAQ Raised $50m in IPO (AIM) in June 2007; At 2010 AGM shareholders approved redomiciliation to Marshall Islands & listing in the US; Began trading on NASDAQ on 29 Nov 2010; Active Fleet Development in tandem with market cycle Bought 5 mid 90 s Handymaxes in summer 2006 from 3 rd party; Bought 3 additional vessels (Panamax & Supramax) in 2007 from 3rd parties; Sold 6 (5 Handymaxes + 1 Panamax) of the 8 vessels between Sept 2008 and Feb 2010; Bought 2 new Supramaxes in May 2010 and 1 new Kamsarmax in June 2010; Signed MoA for a US$30,3m acquisition (Q3-11) of a 2007-built Supramax, with TC until Jan

13 Company Highlights Attractive dividend Paid $2.1m dividend to Founders in May 2007; Paid $19.2m in dividends in September 2007 Sept 2008 period; Paid $820K dividend in Sept 2010; Paid $1.16m 16 dividend id d in Dec 2010; Paid $1.16m dividend in Mar Strong banking relationships Revolving Credit Facility from Credit Suisse $120m in Nov 2007; Credit facility from Deutsche Schiffsbank $26.7m in May

14 Globus Strengths Good assets-fleet s weighed avg. age of 4.6 years (30/Sep/11) Moderately Leveraged Moderate debt (22/Mar/11): $96.65m to two very experienced shipping banks High liquidity (22/Mar/11): approx. $27.5m in cash In house management of vessels Low counterparty default risk Compliant with all bank covenants (31/Dec/10) Strong relationship with banks, auditors (Ernst & Young) and SOX advisors (Deloitte) Lowlands Patrache acquisition has not been included in debt and liquidity positions above. 14

15 Business Strategy Good Assets: Modern/Quality Fleet Acquire 2 nd hand ships to newbuilding resales Panamax/Supramax dry bulk (less volatile better fundamentals than Capes) Vessel Employment Balanced between spot / period employment Deploy on medium term TC with staggered renewals Maximizes fleet utilization / Provides earnings visibility / stability Better financing terms => increased RoE Customers Customer base of established charterers to reduce counterparty risk Vertically integrated Corporate Structure Corp. Governance In-house commercial and technical management in order to Avoid conflicts of interest Provide better service to charterers Provide transparency to investors Strong Non Executive Independent Directors In house commercial and technical management Business strategy specifically designed to attract public investors. 15

16 Current Fleet and Employment Profile (as of 22 March 2011) Vessel Name Type Year Built DWT Daily Charter Rate (1) Earliest Charter Expiration / remaining duration Charterer River Globe Supramax ,627 Spot Sky Globe Supramax ,785 Spot Star Globe Supramax ,785 $22,000 April 2011 Transgrain Tiara Globe Panamax ,928 $20,000 Jan 2012 Transgrain Jin Star Kamsarmax ,788 $14,250 (2) Jan 2015 EMIC F.E. Silo Lowlands Patrasche Supramax ,750 $16,000 Jan 2015 COSCO Qingdao At 30/9/2011 w. aver. age 4.6 years 378,703 (1) All rates are gross and include brokers commission.. (2) Jin Star rate is Bareboat (3) Lowlands Patrasche will be delivered to Globus in Q

17 Time charter cover Tiara Globe $20,000/day Spot River Globe Spot Star Globe Spot Sky Globe Jin Star Spot Bareboat rate $14,250/day Lowland Patrache $16,000/day, 31-Dec Dec-11 Charter Coverage 47% 35% 31-Dec-12 1) Based on the earliest charter expiration dates. 2) Sky Globe and River Globe are currently operating on the spot market 3) Assumes delivery of Lowland Patrache on 1 st September

18 Operating Highlights Globus Maritime Limited F Y 2010 Q4-10 F Y 2009 Q4-09 Ownership Days Available Days Operating Days 1, , , , , , , , , Average No of Vessels Fleet Utilization 98.8% 98.3% 98.6% 99.1% TCE (pv/pd) $18,996 $18,209 $21,550 $23,546 Average Opex 1 (pv/pd) $4,628 $4,791 $4,381 $4,465 (1) Excluding Bareboat days 18

19 Financial Summary

20 Income Statement Globus Maritime Limited (US$ 000 s) F Y 2010 Q4-10 FY 2009 Q4 09 Net revenue 26,708 7,963 49,070 10,172 Operating expenses -5,887-1,763-10,137-1,929 Admin expenses - 3,687-1,086-5,030-1,293 Other oper. Inc./exp Adjusted EBITDA 17,099 5,100 33,797 6,880 Profit (Loss) on Sale of Vessel Impairment Charge -28,429-6,104 Gain/Loss on SWAP Deprec & amortization - 7,777-2,306-12,716-1,836 Finance expenses -2, , Finance income , FX gains/loss NET INCOME/Loss 6,003 2,624-10, ,

21 Balance Sheet Globus Maritime Limited (US$ 000 s) 31 / 12 / / 06 / / 12 / / 12 / 08 Cash 24,618 22,745 59,157 65,342 Non-Current Assets 191, ,216 93, ,075 Total Assets 218, , , ,446 Total Bank Debt (LT+ST) 96, ,687 70, ,983 Deferred Revenue ,358 Other Liabilities 3,900 3,470 3,526 4,322 Retained Earnings 28,942 26,138 24,913 34,154 Capital 88,846 88,558 88,545 87,629 Total Liabilities & Equity 218, , , ,446 21

22 Strong Liquidity Moderate Leverage Globus Maritime Limited (US$ million) At December 31, 2010 At February 24, 2011 Cash $24.6 (1) $28.5 (1) Bank Debt $96.7 $96.7 Net Debt $72.0 $68.2 (1) Includes $1 of restricted cash 22

23 2010 Dividends Globus Maritime Limited Q1 & Q2-10 Q3-10 Q4-10 F Y 2010 EPS (in $) DPS (in $) Amount of Dividend (in $ million) Paid in Sept 2010 Dec 2010 Mar 2011 Ann. Div. Yield at $8.50/share 7.53% 23

24 Investment Highlights Globus Maritime is the right dry bulk company Experienced Management / Strong non execs Modern assets Strong shareholders Moderate leverage Corporate Governance standards Significant Growth Potential through the capital markets Low cost operator Strong banking relationships Transparent in house shipmanagement Pay dividend >50% of Net Income. 24

25 Appendix

26 Existing Corporate Structure (1) Incorporated in Marshall Islands Managed in Athens 100% Globus Maritime Ltd. Identifying / executing acquisition (Marshall Is.) and disposal opportunities Commercial management Globus Assistance with seeking and Shipmanagement Corp. negotiating employment of (Marshall Is.) vessels 100% Day-to-day management of relationship with charterers Technical management Crewing, drydocking, insurance, repairs Classification and regulatory compliance Determining appropriate fleet mix Responsible for approving employment of vessels Actively supervise activities of 100% Commercial and Technical management Maintain and develop relationships with blue-chip customer base Financing Kelty Marine Ltd. (Marshall Is.) Elysium Maritime Ltd. (Marshall Is.) Dulac Maritime S.A. (Marshall Is.) Domina Maritime Ltd (Marshall Is.) Devocean Maritime Ltd (Marshall Is.) M/V Jin Star (Panama) M/V Tiara Globe (Marshall Is.) M/V Star Globe (Marshall Is.) M/V Sky Globe (Marshall Is.) M/V River Globe (Marshall Is.) (1) As at 31 January

27 Executive Team George Karageorgiou, Chief Executive Officer Co-founder, Chief Executive Officer since September years shipping experience (5 years of which involved public company experience) Projects engineer for Kassos Maritime Enterprises from Director and Corporate Secretary for the NYSE listed Stelmar Shipping Limited from During his time at Stelmar Shipping Limited, Mr. Karageorgiou assisted with both vessel acquisitions, financings and strategy Previously a director of easygroup Ltd, easyjet Holdings Ltd, easyinternetcafe tc Ltd, easycruise Ltd and a number of other easygroup subsidiaries Mr. Karageorgiou holds a BE in Mechanical Engineering and an ME in Ocean Engineering from Stevens Institute of Technology and an MSc in Shipping Trade and Finance from CASS Business School Elias Deftereos, Chief Financial Officer Chief Financial Officer since April years shipping experience: Olympic Maritime (Onassis Group) in Monte Carlo, ABN AMRO Bank shipping finance in London, Konkar Shipping Agencies and Astron Maritime in Athens 10 years banking and capital markets experience: Lehman Brothers in London and Mytilineos Holdings in Athens Mr. Deftereos holds a BA in Economics from the State University of New York at Buffalo and an MBA in Finance from the University of Chicago 27

28 Corporate Governance Non Executive Directors Globus is committed to maintaining a high standard of corporate governance taking into account its size and nature of business Two well-respected industry figures appointed as independent non-executive directors together with co founder Audit, Remuneration and Nominations Committees established Board composition comprises of 2 executive Directors (CEO, CFO) + 3 Non Executive Directors Non-Executives George Feidakis 59 Mr. Feidakis, our co-founder, is a major shareholder and chairman of FG Europe, a Non executive Chairman company listed on the Athens Stock Exchange. FG Europe is active in four lines of business and distributes international brands in Greece, the Balkans, Turkey, and Italy. FG Europe is a market leader in the air-conditioning market in Greece and is active in electrical appliances, power generation from renewable sources of energy and mobile telephony. Mr. Feidakis is also active in real estate development. p Amir Eilon years investment banking experience. Mr. Eilon is currently a director of Eilon & Associates Ltd, which provides general corporate advice. Previous positions include Managing Director of Morgan Stanley, London ( ), Managing Director of BZW ( ) where he was head of global capital markets and Managing Director of Credit Suisse First Boston Private Equity ( ). Jeff Parry years shipping Mr. Parry is currently the president of Mystic Marine Advisors LLC, an advisory firm specializing in turnaround and emerging shipping companies. From 2008 to 2009, he was president and CEO of Aries Maritime Transport Ltd (now named NewLead Holdings Ltd.). He has also served as MD of A.G. Pappadakis & Co., an Athens-based shipowner (2007 to 2008), and MD of Poten Capital Services, a U.S. broker/dealer specializing in shipping (2002 to 2007). 28

29 Contacts Globus Maritime Limited George Karageorgiou Chief Executive Officer Tel: Elias Deftereos Chief Financial Officer Tel: Capital Link New York Nicolas Bornozis Matthew Abenante