Aegean Marine Petroleum Network Inc
Aegean Marine Petroleum Network — Investor Presentation (February 2012)
34 slides from Aegean Marine Petroleum Network's investor presentation, Feb 16, 2012
Slide 1: Aegean Marine Petroleum Network Inc.
Aegean Marine Petroleum Network Inc.
Slide 2: Safe Harbor Statement
Safe Harbor Statement Except for historical information contained herein, the statements in this presentation are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward- looking statements involve known and unknown risks and u
Slide 3: Powering the World…
Powering the World…
Slide 4: Investment Highlights
Investment Highlights Global network serving 19 markets and over 50 ports worldwide World-class integrated marine fuel logistics chain highlighted by: More than $7 billion in annual sales Over 26 thousand vessels supplied annually delivering approximately 11 million metric tons of marine fuel World’
Slide 5: Agenda
Agenda Company Industry Strategy Financial Overview
Slide 6: Company
Company
Slide 7: Chairman and management team
Peter C. Georgiopoulos Chairman of the Board Chairman of Aegean since IPO (December 2006). Founder and Chairman of General Maritime Founder and Chairman of Genco Shipping and Trading Founder and Chairman of Baltic Trading Ltd E. Nikolas Tavlarios President & Principal Executive Officer President of
Slide 8: Aegean operated five service centers at IPO
New York Jamaica Gibraltar Fujairah Singapore Pireaus Aegean operated five service centers at IPO… Company: Aegean, December 2006
Slide 9: Aegean has expanded its global network to 19 markets
Vancouver Mexico Jamaica Trinidad & Tobago Gibraltar Northern Europe Antwerp Tangiers Piraeus / Patras West Africa Fujairah Singapore Portland Las Palmas Cape Verde Tenerife Aegean has expanded its global network to 19 markets covering more than 50 ports… Company: Aegean Today
Slide 10: Business Overview: Global reach and integrated supply model
Global reach Modern double hull fleet Integrated service capability Effective credit controls Tank storage in strategic locations Strong customer relationships Independent supplier of marine lubricants Company: Business Overview Aegean’s integrated supply model includes: Q3 2011 Volume Sold
Slide 11: A Sample Transaction Cycle
Marketing, Sales and Procurement Physical Operations Working Capital Funding Receive client order Lock in sales price Lock-in purchase price Load bunkering tanker Physical delivery of fuel Pay supplier Receive payment DAY 1 1 to 3 4 5 25 35 A Sample Transaction Cycle… Conservative risk management ap
Slide 12: Aegean's Sales by Client Sector
Aegean’s Sales by Client Sector Approximate percentages. Strong relationships with international shipping companies, leading cruise lines and fuel traders Strong and diverse customer base combined with sophisticated credit management systems mitigate counterparty risk and provide top-line predictabi
Slide 13: Industry
Industry
Slide 14: Global GDP growth and seaborne trade
Global GDP growth of 3.3% and 3.9% respectively in 2012 and 2013 Continued expansion of world seaborne trade and world fleet driving demand for all grades of marine fuel Strong bunker sales volumes in major ports Singapore 5.6% increase over 2010 Rotterdam 2.6% increase over 2010 Fujairah expected 4
Slide 15: Industry: Dynamic Regulatory Landscape
Industry: Dynamic Regulatory Landscape MARPOL Annex I - Single-Hull Phase-Out Approximately 850 vessels or in excess of 40% of existing fleet to become obsolete by 2017 Small Tanker (sub-10,000dwt) orderbook of approximately 250 vessels Implied small double-hull tanker supply gap of over 600 vessels
Slide 16: Industry: Low-Sulfur Landscape
Industry: Low-Sulfur Landscape Emission Control Area Potential Future Emission Control Areas Modern fleet featuring segregated tanks allows for sale of multiple fuel grades in a single delivery Significant financial liquidity enables Company to capitalize on this attractive market opportunity as dem
Slide 17: Strategy
Strategy
Slide 18: Strategy
Strategy Geographic sales mix by entering new markets with attractive growth potential STRENGTHEN GENERATE Significant operating leverage over the long term as sales volumes increase via improved asset utilization CREATE Synergies through integration of services, including onshore storage and marine
Slide 19: Strategy: Expansion into Strategic Locations
Start-Up Acquisitions West Africa (Q1 2008) Patras (Q1 2009) Tanger-Med (Q1 2009) Trinidad and Tobago (Q2 2009) Cape Verde (Q1 2011) Panama (Q2 2011) Tenerife (Q2 2011) Northern Europe - Bunkers at Sea (Q4 2007) United Kingdom - Portland (Q4 2007) Vancouver, Montreal, Mexico - ICS (Q3 2008) Amsterda
Slide 20: Strategy: Modern Fleet
AEGEAN FLEET Current On Order Q1 2012 68 1 69 Average Age 12 years Number of Vessels on Charter 5 Modern fleet provides significant commercial advantage Financing for all new builds has been secured at favorable rates reduces overall cost structure and increases equity returns 44% fleet growth CAGR
Slide 21: Strategy: Poised for Growth - Storage Expansion
Land Based Storage Floating Storage Location Capacity Location Capacity Fujairah - Expected completion 1Q13 500,000 m 3 Ghana 70,000 dwt Jamaica - under development 80,000 m 3 Gibraltar 80,000 dwt Portland 40,000 m 3 Fujairah 70,000 dwt Tanger-Med - Expected commencement 1Q12 218,000 m 3 Mediterrane
Slide 22: Strategy: Marine Lubricants
Marine Lubricants Oils used by vessels to reduce friction in engines and machines. Size of Global Market 2mm metric tons Market Dynamics Dominated by the majors Aegean’s Entrance into Market 2007 (1) (1) Aegean estimates 128% CAGR Strategy: Marine Lubricants
Slide 23: Strategy: Global Brand Recognition
Strategy: Global Brand Recognition Stellar environmental record with no major environmental accidents Strong internal controls and intense focus on safety ensure compliance with international maritime laws Several important certifications from key international agencies ISO 9001 certified for Provis
Slide 24: Strategy: Strong Financial Foundation
(1) (1) (1) Strategy: Strong Financial Foundation Access to over $1 billion in available credit enables Company to continue to expand its global footprint and increase market share $940 million in working capital credit facilities Over $200 million in supplier credit Significant financial liquidity
Slide 25: Recent Results
Recent Results
Slide 26: Financial Overview: EBITDA
Financial Overview: EBITDA
Slide 27: Financial Overview: Sales Volumes (mt)
32.8% CAGR Financial Overview: Sales Volumes (mt)
Slide 28: Financial Overview: Gross Spread per MT
Financial Overview: Gross Spread per MT
Slide 29: Financial Overview: Fixed Cost per Metric Ton
Financial Overview: Fixed Cost per Metric Ton Q3 2011 Operating Income adjusted to exclude one-time loss on sale of vessel
Slide 30: Financial Overview: Utilization vs. Fleet Expansion
Financial Overview: Utilization vs. Fleet Expansion (1,2) (1,2) Utilization is measured as volume (in metric tons) delivered per vessel per day. Adjusted figure excludes non-operating (off-hire) days caused by both scheduled and unscheduled maintenance requirements and charter hire days
Slide 31: Financial Overview: Selected Financials
Year-on-Year Comparison 3q10 3q11 YoY % Sales Volumes (MT) 2,871,711 2,715,439 (5.4%) Net Revenue $60,454 $77,246 27.8% EBITDA $14,108 $22,374 58.6% Operating Income $9,795 $13,846 41.4% Net Income $4,609 $5,298 15.0% Quarter-on-Quarter Comparison 2q11 3q11 QoQ % Sales Volumes (MT) 2,635,881 2,715,4
Slide 32: Financial Overview: Balance Sheet as of September 30, 2011
Assets Liabilities Cash and cash equivalents $37,565 Trade payables $242,726 Trade receivables (net) 583,447 Short-term debt 337,006 Inventory 170,215 Current portion of long-term debt 21,510 Other current assets 60,134 Other current liabilities 38,507 Current Assets 851,361 Total Current Liabilitie
Slide 33: Investment Highlights
Investment Highlights Global network serving 19 markets and over 50 ports worldwide World-class integrated marine fuel logistics chain highlighted by: More than $7 billion in annual sales Over 26 thousand vessels supplied annually delivering approximately 11 million metric tons of marine fuel World’
Slide 34: Slide 34
Aegean Marine Petroleum Network — Investor Presentation (February 2012) on 6ix