Transcript 2010 Q4 - NewsWeb

Private & confidential
GTB Invest ASA
Creating a ship financing company on the OSE
Presentation of Q4 2010 Results – 17 February 2011
Private & confidential
DISCLAIMER
This Presentation has been produced by GTB Invest ASA (the “Company” or “GTB”) solely for use in connection with the Q4 2010 figures and may not be reproduced or redistributed, in whole or in
part, to any other person. This presentation is strictly confidential and may not be reproduced or redistributed, in whole or in part, to any other person. To the best of the knowledge of the
Company and its board of directors, the information contained in this Presentation is in all material respect in accordance with the facts as of the date hereof, and contains no material omissions
likely to affect its import. This Presentation contains information obtained from third parties. Such information has been accurately reproduced and, as far as the Company is aware and able to
ascertain from the information published by that third party, no facts have been omitted that would render the reproduced information to be inaccurate or misleading.
This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking
statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes”, expects”, “predicts”, “intends”, “projects”,
“plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”, and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views
of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from
any anticipated development. None of the Company or any of their parent or subsidiary undertakings or any such person’s officers or employees provides any assurance that the assumptions
underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual
occurrence of the forecasted developments. The Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking
statements to our actual results.
AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY
DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION, INCLUDING,
AMONG OTHERS, RISKS OR UNCERTAINTIES ASSOCIATED WITH THE COMPANY’S BUSINESS, SEGMENTS, DEVELOPMENT, GROWTH MANAGEMENT, FINANCING, MARKET ACCEPTANCE AND
RELATIONS WITH CUSTOMERS, AND, MORE GENERALLY, GENERAL ECONOMIC AND BUSINESS CONDITIONS, CHANGES IN DOMESTIC AND FOREIGN LAWS AND REGULATIONS, TAXES, CHANGES IN
COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN CURRENCY EXCHANGE RATES AND INTEREST RATES AND OTHER FACTORS.
SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALISE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE
DESCRIBED IN THIS PRESENTATION. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT THE INFORMATION INCLUDED IN THIS PRESENTATION.
No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein,
and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the Company or any of their parent or subsidiary undertakings or
any such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.
By attending or receiving this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will
conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company’s business.
This Presentation speaks as of 17 February 2010. Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances,
create any implication that there has been no change in the affairs of the Company since such date.
17 February 2011
2
Private & confidential
CONTENTS
1. HIGHLIGHTS
2. Q4 FIGURES
3. TRANSACTIONS
4. COMPANY OVERVIEW
5. MARKET UPDATE
6. Q&A
17 February 2011
3
Private & confidential
HIGHLIGHTS
 On 17 November 2010 GTB took delivery of YM Portland, a 4,414 TEU container
vessel built in 2003
 In February 2011 GTB entered into MOAs to purchase two 13,100 TEU container
vessels from E.R. Schiffahrt in Hamburg for a total purchase price of USD 310 mill
 GTB has sold all the shares in in its wholly owned subsidiary Global Geo Services AS,
which holds the PC 2000 library
 GTB has terminated a secondary guarantee of approximately USD 7 million entered
into in connection with seismic transaction in 2008
 The Board has resolved to call for an extraordinary general meeting to approve
change of name to SinOceanic Shipping ASA and business objective
 The container market has improved, while the tanker and dry bulk markets have
weakened
 Q4 2010 EBITDA for consolidated continued operation in GTB was USD 0.27 million
(USD -6.0 million same period last year)
 Cash position per 31 December 2010 of USD 12.6 million and interest bearing debt
of USD 30.2 million
Change of direction and positioning for growth and expansion in new business areas
17 February 2011
4
Private & confidential
CONTENTS
1. HIGHLIGHTS
2. Q4 FIGURES
3. TRANSACTIONS
4. COMPANY OVERVIEW
5. MARKET UPDATE
6. Q&A
17 February 2011
5
Private & confidential
PROFIT & LOSS STATEMENT
(USD 000)
TC Revenue
Other revenue
Q4 10
Unaudited
1,177
(13)
Q4 09
Unaudited
279
2010
Unaudited
1,177
79
2009
Unaudited
(17,574)
(13,616)
(1,020)
(14,636)
(15,584)
(30,220)
(145)
(30,365)
18,677
(11,688)
Vessel related opex
Other operating expenses
EBITDA
D&A
EBIT
Net financial items
Profit/ (loss) before tax
Tax expense
Net profit/ (loss)
(320)
(566)
278
(268)
10
(894)
(885)
(278)
(1,163)
(6,321)
(6,042)
(6,042)
(1,214)
(7,256)
616
(6,640)
(320)
(4,484)
(3,548)
(268)
(3,816)
(628)
(4,444)
(278)
(4,722)
Net profit/ (loss) from discontinued operations
Net profit/ (loss)
(1,163)
17,934
11,294
(4,722)
17 February 2011
3,958
6
Private & confidential
BALANCE SHEET
(USD 000)
Total non-current assets
Other current assets
Cash and cash equivalents
TOTAL ASSETS
Total equity
Current interest bearing debt
Other current liabilities
TOTAL EQUITY AND LIABILITIES
17 February 2011
2010
Unaudited
50,979
398
12,355
63,732
2009
Unaudited
545
2,242
121,886
124,673
32,632
30,169
930
63,732
119,334
5,339
124,673
7
Private & confidential
CONTENTS
1. HIGHLIGHTS
2. Q4 FIGURES
3. TRANSACTIONS
4. COMPANY OVERVIEW
5. MARKET UPDATE
6. Q&A
17 February 2011
8
Private & confidential
ACQUISTION OF YM PORTLAND (former MS Amaranta)
Key specifications
 Built: 2003
 Shipyard: Stocznia Gdynia, Poland
 Delivery: 17 November 2010
 Length: 286m
 Beam: 32m
 TEU: 4,414
 Purchase price: USD 50.5 million
 Employment: Time charter until 2019
 TC party: Yang Ming Lines
 Net TC rate: USD 25,740 per day
 Technical management: Peter Doehle Shiffart
Vessel acquired at favorable terms yielding solid returns
17 February 2011
9
Private & confidential
ACQUISITION OF TWO 13,100 TEU CONTAINER VESSELS
Key specifications
 Built: Under construction
 Shipyard: Hyundai Heavy Industries, Korea
 Delivery: January and February 2012
 Length: 366m
 Beam: 48m
 TEU: 13,100
 Combined purchase price: USD 310 million
 Employment: 15 year time charter
 TC party: One of the top five container lines in the world
 Net TC rate: USD 59,672 per day
 Technical management: E.R. Schiffahrt GmbH & Cie. KG
Acquired vessels fit well into GTB’s business model and
illustrates GTB’s ability to access high profile transactions
17 February 2011
10
Private & confidential
VESSELS SECURED ON LONG TERM CHARTER PARTIES
Secured freight income
 Acquired assets have secured long term employment
 GTB with secured freight income of USD 745 million*
USDm
800
700
 YM Portland on a time charter until 2019 at USD 25,740
per day (net)
 Annual freight income of ~USD 9.5 million
600
330
500
400
745
300
 The Hyundai vessels are secured on 15 year TC contract
at USD 59,672 per day (net)
 Annual freight income of ~USD 21.5 million per vessel
330
200
100
0
85
YM Portland Hyundai Hull Hyundai Hull
2156*
2157*
Secured
freight
income
(*) Assuming that the purchase options for the Hyundai
vessels are not exercised after 12 years
17 February 2011
11
Private & confidential
PAYMENT & FINANCING
 The two 13,100 TEU container vessels shall be paid in 4 tranches





10% shall be paid within 10 working days after closing
2.5% shall be paid within 31 March 2011
2.5% shall be paid within 30 October 2011.
The remaining 85% of the purchase price is payable upon delivery of the vessels in January and February 2012
The pre-delivery payments are secured by bank guarantees
 Pre-delivery payments to be financed from GTB’s largest shareholder
 The loans are unsecured, without recourse to GTB
 Interest rate at LIBOR + 3 % p.a., will be aggregated up until maturity of the loans
 GTB needs to raise new debt and equity to finance the post-delivery portion of the purchase price for the vessels and to
refinance the shareholder loans
 Timing of capital raising will depend on the prevailing market conditions, but is contemplated to take place before the delivery of the vessels
 HNA has issued a letter of undertaking pursuant to which HNA has committed to assist GTB in financing the post-delivery
portion of the purchase price for the vessels
17 February 2011
12
Private & confidential
DIVESTMENT OF DATA LIBRARY
 GTB divested its data library covering a part of the Iranian
continental shelf (the PC 2000 library)
 Trade or commercial relationship with Iran or assets/services relating
to Iran is under international boycott, and is forecasted to remain so
in the foreseeable future
 International investors skeptical to Iranian assets
 Seismic no longer core strategy of GTB
 The sale price is insignificant reflecting the fact that the PC
2000 library has been recorded at no value in the consolidated
balance sheet of GTB, and that the library in effect had no
value
17 February 2011
13
Private & confidential
CONTENTS
1. HIGHLIGHTS
2. Q4 FIGURES
3. TRANSACTIONS
4. COMPANY OVERVIEW
5. MARKET UPDATE
6. Q&A
17 February 2011
14
Private & confidential
GTB INVEST IN BRIEF
 GTB is a Norwegian Public Limited Liability Company incorporated
under the laws of Norway
Organization structure:
 GTB Invest is listed on Oslo Stock Exchange with “GTB” as ticker
 The BoD of GTB has resolved to call for an extraordinary shareholders meeting to
approve change of company name to SinOceanic Shipping ASA
GTB Invest ASA
 GTB aims to create the only ship financing company on the OSE
 The Company shall invest in existing tonnage and resale of new building
contracts with existing cash flow
 Creating above average returns through a combination of attractive deals and
leverage
 Exploiting opportunities within a variety of segments
 Main shareholder with substantial resources and long term strategy to build a
sizeable shipping company within the Norwegian maritime cluster
Oceanus
Shipping AS
SinOceanic I
AS
SinOceanic II
AS
 Management with significant experience within the shipping industry
and capital markets
 “Lean and mean” organization primarily consisting of transaction and commercial
expertise and some high level support staff, while cost driving operations will be
outsourced
 Objective to engage in cost efficient ownership, chartering and managing of
vessels in the GTB fleet
 Technical management is proposed outsourced to highly regarded and well
reputable management companies
17 February 2011
15
Private & confidential
COMPANY STRATEGY
 Investment Strategy
 Acquire modern and standard vessels with appreciation potential and
charters attached
 Flexible investment approach towards segments, however initial focus on
container segment as it is still considered the most attractive in terms of
asset prices
 Identify the segments which at any given time provide the best risk reward
ratio and watch out for and to exploit turning points in all markets
 Dividend policy
 Full dividend payout model within the limits of the Norwegian Public
Limited Companies Act
 Seek accretive deals at rates that provide a target minimum dividend yield
 Future need for funding through issuance of new shares
 Financial Strategy
 Financial leverage from Chinese and Western banks
 Publicly traded stock ensures liquidity and flexibility for investors – more
than 3,400 shareholders
17 February 2011
16
Private & confidential
CORPORATE STRUCTURE AND GOVERNANCE
 GTB can establish a tax exempt structure by entering the
Norwegian Tonnage Tax regime
 At present GTB is an ordinary taxed company, but is anticipated
to be the holding company for a number of ship owning
companies registered inside the tonnage tax regime
Corporate Structure:
General Shareholder Meeting
 Alternative tonnage tax regimes will be evaluated either in
combination with the Norwegian regime or as separate
alternative structures
 GTB has approx. NOK 965 million in tax losses carried forward
which has limited value for the tax free shipping business, but
may be used in the ordinary tax regime, provided such
investments results in superior returns.
Board of Directors
GTB Invest ASA
Vessel SPV
Vessel SPV
Vessel SPV
 GTB will be managed and operated in accordance with
Norwegian corporations law and best practice corporate
governance
17 February 2011
17
Private & confidential
EXPERIENCED TEAM
 Management
 Jan Håkon Pettersen – CEO
 Garup C. Meidell – Deputy CEO
 Morten Steen Martinsen – Technical Director
 Board of Directors







Stewart Smith – Chairman
Svein Eggen
Anne Øian
Mari Thjømøe
Rebekka Glasser Herlofsen
Wen Jiang
Liu Liang
17 February 2011
18
Private & confidential
CONTENTS
1. HIGHLIGHTS
2. Q4 FIGURES
3. TRANSACTIONS
4. COMPANY OVERVIEW
5. MARKET UPDATE
6. Q&A
17 February 2011
19
Private & confidential
THE CONTAINER MARKET
Chinese export trends
Asia & Europe intra-regional demand
Chinese Exports to Europe and North America
Intra-Asia Demand
40%
30%
China/North America EB
China/Europe WB
2010q3 Base
2010q3 Base
FORECAST
Q4 Intra Europe
6 000
5 500
-18,5 %
-14,5 %
-8,8 %
-10%
-20%
TEU 1000s
TEU 1000s
15,0 %
17,0 %
16,5 %
19,0 %
18,0 %
21,0 %
18,0 %
23,0 %
4,0 %
2,9 %
23,0 %
14,5 %
25,0 %
14,0 %
24,0 %
23,0 %
24,5 %
18,0 %
17,0 %
28,7 %
17,0 %
6,9 %
5,8 %
21,3 %
18,7 %
1000 TEUs
0%
9 000
8 000
7 000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
5 000
4 500
4 000
6 000
3 500
5 000
3 000
4 000
2 500
3 000
2000
2013
Q3 Intra Europe
6 500
Q4 Intra Asia
10 000
20%
FORECAST
7 000
Q3 Intra Asia
12 000
11 000
10%
Intra-Europe Demand
FORECAST
13 000
2 000
02Q1
Recent fleet developments
04Q1
06Q1
08Q1
10Q1
12Q1
02Q1
04Q1
06Q1
08Q1
10Q1
Market balance (Q4 2010)
Net Fleet Growth
Supply vs. Demand
Total Productivity Adjusted Container Carrying Fleet vs. Container Trade
FORECAST
600
105%
20 000
FORECAST
18 000
500
TEU 1000s
1000 TEU
90%
14 000
400
300
200
100
100%
95%
16 000
85%
12 000
10 000
80%
8 000
75%
6 000
70%
4 000
65%
2 000
60%
-
55%
2004Q1 2005Q1 2006Q1 2007Q1 2008Q1 2009Q1 2010Q1 2011Q1 2012Q1 2013Q1
2005Q1 2006Q1 2007Q1 2008Q1 2009Q1 2010Q1 2011Q1 2012Q1 2013Q1
10Q3 Base Case
17 February 2011
10Q4 Base Case
UTILISATION
SUPPLY
DEMAND
2010q3 Base
Actual
Source: Viamar
20
Private & confidential
THE CONTAINER MARKET
Timecharter forecasts
Timecharter forecasts
Timecharter Equivalent Charter Market Earnings
Timecharter Equivalent Charter Market Earnigns
Post-Panamax 4400 TEU gearless
3rd Quarter 2010 Base Case
60 000
FORECAST
FORECAST
50 000
50 000
40 000
USD/DAY
USD/DAY
40 000
30 000
30 000
20 000
20 000
10 000
10 000
-
2001q1
2003q1
2005q1
2010q3 Base Case
17 February 2011
2007q1
2009q1
2010q4 Base Case
2011q1
2013q1
1998q1
2000q1
2002q1
4400 g'less
Actual
Source: Viamar
2004q1
2006q1
3500 g'less
2008q1
1700 grd
2010q1
2012q1
725 grd
21
Private & confidential
THE TANKER MARKET
Opec oil production
Large tanker market balance
ViaMar Large Tanker Market Balance
OPEC Oil Production
FORECAST
36
350
FORECAST
100%
34
325
95%
300
90%
275
85%
250
80%
225
75%
30
Dwt
Mill Bpd
32
28
26
24
22
200
98q1 99q1 00q1 01q1 02q1 03q1 04q1 05q1 06q1 07q1 08q1 09q1 10q1 11q1 12q1 13q1
3.qtr. Base Case
Utilization
Net fleet growth (Q4 2010)
Supply
Demand (dwt)
Average earnings modern
VLCC Ras Tanura - Chiba
Average Earnings Modern
Net Fleet Growth - 4. Qtr. Base Case
200 000
20,0
180 000
FORECAST
15,0
160 000
140 000
10,0
USD/day
million dwt
70%
00Q1 01Q1 02Q1 03Q1 04Q1 05Q1 06Q1 07Q1 08Q1 09Q1 10Q1 11Q1 12Q1 13Q1
4.qtr. Base Case
5,0
120 000
100 000
80 000
60 000
-
40 000
20 000
-5,0
2005Q1
2006Q1
2007Q1
2008Q1
2009Q1
2010Q1
2011Q1
2012Q1
-
2013Q1
00Q1 01Q1 02Q1 03Q1 04Q1 05Q1 06Q1 07Q1 08Q1 09Q1 10Q1 11Q1 12Q1 13Q1
Net Additions
17 February 2011
Scrapping
Deliveries
2010Q3 Base Case
Source: Viamar
2010Q4 Base Case
22
Private & confidential
THE BULK MARKET
World steel production
Iron ore imports China
Iron Ore Imports - China
1000
900
800
mt annual rate
700
600
500
400
300
200
100
0
2002,1
2003,1
2004,1
2005,1
2006,1
2007,1
3.qtr.Base
2008,1
2009,1
2010,1
2011,1
2012,1
2013,1
4.qtr.Base
Total seaborne trade – met coal
Met Coal, Total Seaborne Trade
300,0
FORECAST
275,0
Mill. tons, annual rate
250,0
225,0
200,0
175,0
150,0
125,0
100,0
04,1
05,1
06,1
07,1
08,1
3.qtr. Base
17 February 2011
09,1
10,1
11,1
12,1
13,1
4.qtr. Base
Source: Viamar
23
Private & confidential
THE BULK MARKET CONT.
Net fleet growth
Dry bulk new orders
Dry Bulk New Orders
Net Fleet Growth - 4. qtr. Base Case
30,0
60,0
FORECAST
FORECAST
50,0
million dwt
million dwt
25,0
20,0
15,0
10,0
40,0
30,0
20,0
10,0
5,0
-
2006Q1
2007Q1
2008Q1
2009Q1
Net Additions
2010Q1
2011Q1
Scrapping
2012Q1
2006Q1 2007Q1 2008Q1 2009Q1 2010Q1 2011Q1 2012Q1 2013Q1
2013Q1
Deliveries
Former
Dry bulk market balance
History
Capesize dayrate forecasts
Capesize - CS4TC - 4. qtr. Base
ViaMar Dry Bulk Market Balance - Supply vs Demand
4.qtr. Base Case
100 000
650
110 %
90 000
FORECAST
600
Current
100 %
70 000
usd/day
550
90 %
500
450
80 %
400
FORECAST
80 000
60 000
50 000
40 000
30 000
70 %
20 000
350
10 000
60 %
300
-
250
2005Q1 2006Q1 2007Q1 2008Q1 2009Q1 2010Q1 2011Q1 2012Q1 2013Q1
2004Q1 2005Q1 2006Q1 2007Q1 2008Q1 2009Q1 2010Q1 2011Q1 2012Q1 2013Q1
50 %
2010q3 Base Case
Utilization
17 February 2011
Supply
2010q4 Base Case
IMAREX
CS4TC
Demand
Source: Viamar
24
Private & confidential
CONTENTS
1. HIGHLIGHTS
2. Q4 FIGURES
3. TRANSACTIONS
4. COMPANY OVERVIEW
5. MARKET UPDATE
6. Q&A
17 February 2011
25
Private & confidential
Q&A
17 February 2011
26
Private & confidential
SHAREHOLDERS PER 14.02.2011
Shareholders
17 February 2011
Shares
%
Country
1
OCEANUS INTERNATIONAL INVESTMENT
44 736 000
33.33
NOR
2
GOLDMAN SACHS INT. – EQUITY
15 951 342
11.89
GBR
3
INAK 2 AS
6 550 000
4.88
NOR
4
SVELA EIENDOM AS
3 551 459
2.65
NOR
5
SKAGEN VEKST
1 790 820
1.33
NOR
6
VPF NORDEA SMB
1 511 167
1.13
NOR
7
HAUGNÆSS THOR KRISTIAN
1 200 000
0.89
NOR
8
TFR INVEST AS
1 135 000
0.85
NOR
9
MATSPECIALEN AS
1 100 000
0.82
NOR
10
JOHANSEN STIG JARLE
1 035 000
0.77
NOR
11
HAVTRÅL AS
1 000 000
0.75
NOR
12
PETTERSEN JAN HÅKON
1 000 000
0.75
NOR
13
RYKKEN ARNE
805 000
0.60
NOR
14
ANDERSEN LARS OLAV
800 000
0.60
NOR
15
MEIDELL CHRISTIAN GARUP
800 000
0.60
NOR
16
MIDDELBOE AS
796 919
0.59
NOR
17
PETTERSEN KÅRE
775 000
0.58
NOR
18
KROSBY ANETTE
750 000
0.56
NOR
19
SIX SIS AG
717 496
0.53
CHE
20
MP PENSJON PK
641 075
0.48
NOR
27