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					Eitzen Maritime Services ASA




       Company presentation
          EGM October 29th 2012
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This Presentation has been produced by Eitzen Maritime Services ASA (the “Company”) with the assistance of Pareto Securities AS (the “Manager") solely for the use as a company presentation at an extraordinary general
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This Presentation is dated 29 October2012. Neither the delivery of this Presentation nor any further discussions of the Company or the Manager with any of the recipients shall, under any circumstances, create any
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involving these securities.
This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts.                                                                 2
Content
 About Eitzen Maritime Services ASA (EMS)
 The EMS Repositioning
 Funding situation




                                             3
EMS at a glance
 Stock listed on Oslo Stock Exchange (ticker code EMS)
 Total operating revenue MUSD 520 in 2011 and MUSD 212 in 1H12
 A large range of products
  – Marine Supply delivering all types of products
       • 50 % Food products (frozen fish and meat, fresh fruit and vegetables, dry goods, dairy, etc)
       • 10 % Bonded stores (tobacco, alcoholic beverages, etc)
       • 40 % Technical stores (cabin, deck, engine stores, fishing nets, etc)
  – Military supply: Seven Seas Group holds prime vendor contracts with US armed forces and NATO countries
    delivering impeccable service and products of high quality (mainly food)

 Branches & locations:
  –   34 branch offices in 14 countries throughout 4 continents
  –   20 franchises
  –   ~1,100 employees
  –   ~150,000 deliveries per year


                                                                                                        Seven Seas premises in Dubai



                                                                                                                                       4
Company, customers and market segments
                  Key market segments                                     Large presence, diversified customer base

    Merchant fleet                                                      Among the world’s largest Ship Supply
     – Supplier to all kinds of vessels globally                         companies with worldwide presence
                                                           ~40-50%1)
     – Food & consumables represent ~70-80% of the
       volume, equipment the remaining
                                                                        Main customers are high quality ship
                                                                         owners, ship management companies,
    Military
                                                                         military and offshore operators
                                                                            – Military segment is based on a few “cost-
     – Mainly supply of provisions and bonded stores to
       military forces (vessels & bases)                  ~25-35%1)           plus” contracts
     – Large storage capabilities in Middle East
                                                                            – Merchant segment is primarily a quotation
                                                                              business
                                                                            – Offshore & Cruise, typically annual service
    Offshore
                                                                              contracts
     – Mainly provisions and stores through catering
       companies and supply vessel companies              ~10-15%1)
       operating globally


    Other – cruise, ferry and fishing
     – Provisions, bonded stores, marine equipment
       and other supplies
                                                          ~10-15%1)
                                                                       1) Indicative   share of current revenue



                                                                                                                            5
Steps from Strømme acquisition to today’s EMS
                                           2012         New management team in place
                                                        Operational and strategic reconsideration
                                                        Several short term liabilities resolved

                                    2011          Debt to equity conversion - exited Eitzen Group
                                                  Improved balance sheet

                             2010        Refinancing – Amended agreement with bondholders and
                                         share issue

                   2008          Acquisition of Seven Seas Shipchandlers (Middle East)
                                 EMS becomes world leader in ship supply


            2007          Acquisition of Provimar (Mediterranean, Iberian peninsula, Americas)


     2006      Eitzen acquisition of Strømme (Northern Europe and Singapore)


                                                                                                    6
     The business landscape

                                                                                            EMS
       Global                                                                              today
                                                                              Fuji
                                                         Combined                          Wrist
                                                         Company
International
                           EMS                                 HMS


                                             Provimar
                                                                      Sinwa
    Regional
                                Klevenberg                          Seven
                  Kloska                     Gulf Ship
                                             Chandlers               Seas
                                Saifee
                  Mares
         Local


                           50                  100                    200            400           500


                                               Turnover (MUSD)

Source: Company                                                                                          7
           Global platform



Ship Supply locations
September 2012 headcount
Norway, ~6 employees
Argentina, ~16 employees
Germany, ~35 employees
Gibraltar, ~7 employees
Morocco, ~6 employees
The Netherlands, ~37 employees
Portugal, ~24 employees
Singapore, ~55 employees
Spain, ~215 employees
Middle East, ~601 employees
Uruguay, ~17 employees – discontinued
USA, ~28 employees
Eitzen IT, ~25 employees
Headquarters, 4 employees
*Middle East includes UAE, Bahrain, Qatar, Kuwait, Oman and Djibouti




    Main offices
    Regional / agent offices by country
    Partners

                                                                       8
 Substantial growth in EMS’ core market
                                                                                                        Strong long-term macro trends for
    Growth in world merchant fleet 2011 - 2015                                                           shipping:
                                                                                                         – Globalization
# of vessels*
                                                                                                             • International division of labor set to
  25,000
                                                                                                               continue
                                                                                                             • High tech communication facilitates trade
  24,000
                                                                                                               and logistics
                                                                216             35                       – Industrialization of developing countries
  23,000
                                                                                                             • High demand for raw materials and energy
                                                1,318
  22,000
                                                                                                             • Large infrastructure investments
                                                                                                             • Strong increase in economic strength for
                                                                                                               BRIC area
  21,000
                                 2,252                                                                   – Unmatched cost advantage of shipping
  20,000
                                                                                             23,399          • 95% of intercontinental trade is transported
                                                                                                               by sea
  19,000
                                                                                                             • Efficient and competitive means of
                                                                                                               transport are necessary to facilitate
                 19,578                                                                                        globalization and world trade growth
  18,000
                                                                                                             • Environmentally most effective mode of
                                                                                                               transport per unit carried – and continues
  17,000                                                                                                       to improve
                  2011           2012           2013           2014            2015          2015E

   Source: Clarksons
   * Larger ships within key segments of a certain size . Growth in smaller segments also represents
   increased market opportunities for EMS                                                                                                                     9
Operational set-up
                                                                 CEO
                                                             Morten Persen

                   Global Sales & Marketing                                                                                    CFO
                       Mikael Karlsson                                                                                    Ole A. Gulsvik


                                                                                                                                            Chief Acc.
                                                                                                            Business control
                                                                                                                                         Bjørn Hollseter

                               Middle East & Americas                        Iberia & Holland                           Eitzen IT (Cubisol)
                                  Peter Machado                               Per Lokkegaard                             Henrik Hyldahn




Asia & Products                         UAE             United States                            Spain                     Netherlands
Kjetil Gulliksen
                                       Qatar             Argentina                              Portugal

  Singapore
                                                                                                Gibraltar
                                      Djibouti
    Norway                                                                                      Morocco
                                       Oman

   Germany
                                      Bahrain                                                                                       Executive
                                                                                                                                   Management
                                                                                                                                                           10
Management/Key personnel
      Morten Persen, CEO
      Morten Persen (born 1957) has served as the CEO of Eitzen Maritime Services ASA since 16 October 2011, replacing Peter D Knudsen.
      Morten Persen has several years of management experience focused on operations, restructuring, line management, board
      representation, as well as international commercial and legal negotiations.. Morten Persen has previously been head of his own
      advisory firm and been employed in Aker ASA, Aker Oil & Gas ASA, Wikborg Rein & Co and the Norwegian Ministry of Finance. He holds
      a Law Degree from Oslo University. Morten Persen is a Norwegian citizen and resides in Norway. Morten Persen owns 200.000 shares of
      EMS
      Ole Anton Gulsvik, CFO
      Ole Anton Gulsvik (born 1973) joined Eitzen Maritime Services ASA January 2012, replacing Andreas Reklev. Ole Anton Gulsvik has
      several years of experience from capital markets – lastly with Carnegie Investment Banking. His core areas of expertise lies within
      financial restructuring and shipping related companies – including Eitzen Maritime Services ASA which he work extensively with in 2010
      and 2011. He was previously working as Senior Analyst within Equity Research in Handelsbanken Capital Markets. He holds a MSc within
      Civil Engineering from Norwegian University of Science and Technology (NTNU). Ole Anton Gulsvik is a Norwegian citizen and resides in
      Norway. Ole Anton Gulsvik owns 100.000 shares of EMS.

      Peter Paul C. Machado, Senior VP – Asia and Americas
      Peter Machado (born 1956) is a Senior Vice President of Eitzen Maritime Services ASA. He is the General Manager of Seven Seas
      Shipchandlers covering the Middle East, Afghanistan and Africa, and is responsible to follow up the EMS subsidiaries in Asia and the
      Americas. Captain Machado sailed with Scindia Steam Navigation India and KLTT Kuwait in various ascending deck and navigation
      capacities including Captain-in-Command. He was also the Fleet Manager at KLTT before joining Seven Seas as Group General
      Manager. In addition to the professional Class 1 Master FG certification, Captain Machado holds a MSO (Master of Ship Operations)
      from the Centre of Advanced Maritime Studies, Glasgow, UK. Captain Machado is an Indian citizen and resides in Dubai, United Arab
      Emirates.
      Per Løkkegaard, Senior VP - Europe
      Per Lökkegaard (Born 1969) is a Senior Vice President of Eitzen Maritime Services ASA. He is the General Manager of EMS Spain S.A.U.
      and is responsible to follow up the EMS subsidiaries in Europa. He has been the VP-Sales & Marketing of EMS and held several senior
      positions within sales and marketing in Provimar S.A and ROCA S.A. Inicially he was stationed as a Danish Diplomat and Commercial
      Responsible for the Carribbean based out of San Juan, Puerto Rico.
      Lökkegaard holds a Bs in International Economics from Denmark as well as an Executive MBA from ESADE Business School in
      Barcelona. He is a Danish citizen who has lived outside Denmark since 1992 among others in the US, Puerto Rico and Spain, where he
      has been living for the last 19 years.                                                                                                   11
Content
 About Eitzen Maritime Services ASA (EMS)
 The EMS Repositioning
 Funding situation




                                             12
                                                                                                             Financial

                                                                                                            Operational

     EMS unique features                                                                                     Strategic


    EMS has historically been run as several isolated units and has not been able to benefit from its size and market
    presence

    The competing landscape still has an overweight of small and local suppliers enabling EMS to differentiate itself
    and capitalize on its larger size and global presence. Ship operators need to save money and find efficient partners

    Long term business plan involves positioning of EMS to harvest on its unique features and targets sustainable
    market leading margins                                                                     EMS
                                                                                                            Ability to take out
                                                                                                  today
                                                                                                            operational scale
                                                                                  Fuji
                                                             Combined                             Wrist
                                                             Company

                                  EMS                              HMS


                                                 Provimar
                                                                          Sinwa

                                    Klevenberg                          Seven
                         Kloska                  Gulf Ship
                                                 Chandlers               Seas
                                    Saifee
                         Mares



                                                    Turnover (MUSD)
Source: Company                                                                                                               13
                                                                                                                                                    Financial

                                                                                                                                                  Operational

The EMS repositioning                                                                                                                               Strategic



                    Financial                                     Operational (first wave)                            Strategic (second wave)
 Convert bond loan to equity - improve solidity          Secure and renew military contracts in Dubai &      New strategic approach – One Global Company
                                                           Europe
 Renegotiate and/or refinance expensive and                                                                   Sales matrix from geographic specific to sector
  short term debt (local financing)                       Operational restructuring in Spain & Netherlands     specific related to global customers
 Improve liquidity in subsidiaries through new           Reduce head-quarter costs                           Take control over business from a centralized
  funding sources                                                                                               set-up; creating one integrated company
                                                          Shut down non-strategic and non-profitable
 Create financial headroom to too stabilize               business                                            “Grow-to-fit” using automated and customer
  profitability, explore longer term strategy and                                                               integrated solutions (increased investments in
                                                          Focus on key accounts and control systems
  reinstated internal and external company                                                                      control systems and IT)
  confidence


 “Crisis Actions”
 Financial restructuring, new funding &
 ownership consideration
                                                    “Stop the bleeding”
                                                    Immediate cost cuts & profitability
                                                    improvements
                                                                                 “Rebuild the company”
                                                                                 From several stand alone companies to one
                                                                                 integrated global company
                  2010-2012                                                 2012-2013                                      2013 ->
                                                                                                                                                                  14
                                                                                               Financial

                                                                                              Operational

 First Wave roadmap (Financial)                                                                Strategic


Tasks                                                            Status   Comment


 Convert bond loan to equity - improve solidity
                                                                 dads    Equity ratio from ~10% to ~40%


 Renegotiate or pay down expensive short term debt
                                                                 dads    ~MUSD 1 remaining (Nov)

                                                                          MUSD 35 in new ASA funding
 Improve liquidity through new funding sources                  dads    secured last 12 months

 Clean up old financial issues (cash & non-cash)                dads
 Capital to fund 1. wave                                        dads    Strategic support from key
                                                                          stakeholders

 Financing through 2013 + fund the Second wave analysis phase   dads    In progress (guaranteed)


                                                                           dadsCompleted


                                                    2012-2013               dads
                                                                                Ongoing

                                                                                Outstanding
                                                                                                            15
                                                                                                       Financial

                                                                                                      Operational

 First Wave roadmap (Operational)                                                                      Strategic


Tasks                                                                    Status   Comment


 Focus sales team on large clients (key accounts)                        dads dads   Completed



                                                                          dads dads
                                                                                        Ongoing
 Reduce HQ costs                                                                       Outstanding


 Centralize Product/Strømme platform in Singapore, Germany and Norway
                                                                          dads
                                                                                  High attention – continous
 Focus on local cost levels and processes to reduce local costs          dads   process
 Operational restructuring plan Spain & Netherlands                      dads
 Initiate IC sourcing project and European Procurement Pilot             dads   High attention - long process

 Shut down high risk & non-profitable business (Kuwait + Uruguay)        dads
 Secure military contracts                                               dads
 Set-up Group control & BI systems                                       dads   High attention – long process
                                                                                                                    16
                                                                                                                       Financial

                                                                                                                      Operational

Second wave focused on efficiency and scalability                                                                      Strategic

Ship Supply only

                                  Local            Regional              Central          Automated

                                 2012                         Strategy                      2017
                                          First wave                        Second wave
           Back-office &
           administration

           Procurement/
           logistic                                                        Gradual transformation will reduce upfront costs &
                                                                                          implementation risk

           Sales, Marketing &
           Quotation                    Local functions

           Front-end &
           delivery


                                IT & Automation roadmap built around the new strategy



   Through automation and improved work processes the Company will gradually transform from
                          several stand alone units to One global EMS
                                                                                                                                    17
                                                                                                                                                     Financial

                                                                                                                                                    Operational

 Second wave key components                                                                                                                          Strategic


                                                                                                                              Ship Supply (SS)
 Central global sales set-up
– Centralize customer relation and ownership                                                             Ship
– Commercial sales split in responsibility areas to improve                        Military                              Ship Mgmt            Offshore**          Catering
                                                                                                        Owners
  focus vs. the current geographic responsibility
  segmentation                                                Sales                MUSD 130            MUSD 140                                MUSD 140
– Offer a unified solution within each business segment to    level
  reduce costs, improve operational control and enhance       Share of
  the EMS brand                                                                       n.m.                 ~50%                                  ~50%
                                                              SS sales
 Network supply chain set-up                                 Market
– Increased procurement collaboration across branches                                 n.m.                 ~6%                                   ~3%*
                                                              share
  to improve purchasing power                                 (indicative)
                                                                                                                                Targeted growth areas MUSD 100**
– Focus on core product line and reconsider the               *
  stock/warehouse cost-benefit level                          *Offshore & Catering only food, others incl. tech items

 Improved operational administration                         **Upside potential in Offshore not included but part of new go-to-market plan

– Restructure the ERP and reporting set-up to enhance                           Current core                              Targeted growth areas
  business intelligence, business transparency and                              business segments                         through new offerings
  business control
– Expand the automation engine to reduce the risk and
  cost level per quote, per delivery and per supply orders
 Expand business concept                                     Hypothesis: Possible to increase sales with USDM 100 in Ship
– Offer existing clients a unified service in new markets     Supply without adding costs
  through pure delivery offices and partnerships              –EMS to piggyback on the market trend with larger customer preferring fewer number of
– Consider ownership control only when volumes and            suppliers with central controlled agreements
  structure is satisfactory                                   –Increased focus on Offshore & Catering through new go to market approach and
                                                              partnerships


                                                                                                                                                                             18
                                                                                                                        Financial

                                                                                                                      Operational

 Second Wave roadmap                                                                                                    Strategic


Tasks                                                                                 Status   Comment


 Prepare for second wave (plan & pilots)                                                       dads  Completed



       Draft long term business plan                                                  dads    dads  Ongoing

                                                                                                       Outstanding

       Prepare IT development roadmap & IT tools to new strategy                               Year end 2012


       Rebuild customer matrix to improve focus and specialize customer “products”    dads    From geographic to sector

       Initiate new Go-To-Market pilots to test feasibility                           dads    H2 2012


       Analyze new market opportunities                                               dads    H2 2012

       Analyze supply chain structure                                                 dads    H2 2012




       Finalize plan & implementation process                                                  Medio 2013




 Secure funding to implement (if needed)                                                       Ultimo 2013


 Roll out plan                                                                                 2014-2017




                                      Ambition for Second Wave: 6 % EBITDA margin
                                                                                                                                    19
                                                                                                                        Financial

                                                                                                                       Operational

Targeted projects to increase profitability potential                                                                   Strategic




    Illustrative profitability potential


                                                                                                       Improved
                                                                                                      profitability
                                                                                                      potential in
                                                                                                     second wave
           Reduced sales                                                                               initiatives
               and non -
              renewal of                             Initiated
          military contracts                        operational
                                                   improvement
                                                     projects
                                                                                        2013-2017
                               Drop due to weak
                               market & internal
                                financial issues




          Previous run rate    Current run rate
            (ex one offs)        (ex one offs)                    First wave run-rate               Second wave run-
                                                                        potential                     rate potential




                                                                                                                                     20
EMS repositioning at a glance
                        Global reach and diversified customer base
A world leading ship
                        Consolidation among customers is expected to continue (ship managers and caterers expected to grow)
     supplier
                        Customers are increasingly moving towards fewer suppliers with abilities to serve them globally


 Strong position        Through Seven Seas, EMS is an important supplier to Military customers in Middle East
within the military     Excellent reputation as a first class supplier of food and general supplies to Military customers
     segment
                        Contracts representing approximately MUSD 100 annual turnover now secured


                        Large scalability in operations with significant potential for margin improvements
  Large scalability
   allows margin        1% margin improvement equals EBITDA increase of MUSD 4-5 per year and lowering WC assets DSO by 1 day
   improvements          improves cash balance with more than MUSD 1


                        Management team in place which has implemented several cost cutting initiatives
    Short term
   restructuring        Operational restructuring for Spain and Netherlands initiated and bearing fruits
     ongoing            Exited Non-profitable/non-strategic businesses in Kuwait and Uruguay

                        Will transform EMS from several stand alone companies to one integrated global company
    Long term
                        Hypothesis MUSD 100 in increased sales within the Ship Supply business
operational growth
  plan initiated        MUSD 15 of new equity secures sufficient financial headroom to enable operational improvements
                                                                                                                               21
Content
 About Eitzen Maritime Services ASA (EMS)
 The EMS Repositioning
 Funding situation




                                             22
 Proposed transaction – MUSD 15 rights issue
 Additional funding to the parent company of MUSD 15 is required to shift focus from
 financial restructuring to operational improvements
 The proposed MUSD 15 rights issue is expected to cover the company’s funding need
 throughout 2013 related to
  – financing cost
  – payment of reserved provisions
  – working capital
  – initiation of 2. wave actions
 70% of the proposed MUSD 15 rights issue is guaranteed and pre-subscribed. The
 remaining funding need is secured through either the rights issue and/or Payment in Kind
 over the unsecured bond loan.
                                                                                            23
     Capital structure pre and post proposed share issue
     Distribution of enterprise value (illustrative)

    MUSD                                                                                                   MUSD ~50m of interest bearing debt
    90
                     79.7                       79.7                                                              – Bank debt of MUSD 16.1m
     80
                                                                       MCAP**                                     – 1. priority loan of MUSD 1.4 maturing in Nov-12
     70              14.6
                                                29.6***                                                           – Unsecured loan of MUSD 32.6 maturing in October
     60                                                                Net unfunded working
                     15.0
                                                                       capital*                                      2014
     50
                                                                       Unsecured bond loan
     40                                                                                                    Net unfunded requirement of MUSD 15m
                     32.6                       32.6
     30                                                                1. pri loan
                                                                                                           Market capitalization of MUSD ~ 15m pre-issue
     20
                      1.4                        1.4                   Bank loan & credit lines                   – Rights issue increases MCAP with MUSD 15m
     10              16.1                       16.1
                                                                                                                  – Post money MCAP depending on pre-money issue price
      0
                   Pre-issue                 Post-issue
                                                                                                           Unrestricted cash per end of Q2 2012 was
                                                                                                             MUSD 13.9 (not included in figure)


*Estimated MUSD 15 in net unfunded capital = gross capital need adjusted for expected cash flow from operations
in 2013
** Market cap as of 17. September assuming NOK 0.74 share and USD/NOK 5.7.
***For illustrative purposes only. Post money MCAP will depend on pre-money issue price                                                                                  24

				
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