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21st June 2006 Marine Money Week by wulinqing

VIEWS: 14 PAGES: 14

									Marine Money Week

  21st June 2006
Safe Harbor Statement

 This presentation contains statements that are forward looking as that term is defined by
 the united states private securities litigation reform act of 1995. These statements are
 based on current expectations that are subject to risks and uncertainties. Actual results
 may differ due to factors such as material adverse events affecting either company or the
 ability of either company to satisfy the conditions to completion of the business
 combination. Readers are referred to FreeSeas’ most recent periodic and other reports
 filed with the securities and exchange commission.


 This announcement shall not constitute an offer to sell or the solicitation of an offer to buy
 securities, nor shall there be any sale of securities in any jurisdiction in which such offer,
 solicitation or sale would be unlawful under the securities laws of such jurisdiction.




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Company Overview

! FreeSeas is a commercial shipping company that operates in the
  attractive Handysize vessel segment of the dry bulk market.

! The Company’s current fleet consists of three Handysize vessels:

! M/V “Free Destiny”, delivered in August 2004
     ! 25,240 deadweight tons
     ! Built 1982

! M/V “Free Envoy”, delivered in September 2004
     ! 26,318 deadweight tons
     ! Built 1984

! M/V “Free Fighter”, delivered in June 2005
     ! 39,850 deadweight tons
     ! Built 1982



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Management

George D. Gourdomichalis - Chairman & President

Ion G. Varouxakis - CEO

Stathis D. Gourdomichalis - CFO

! Management has expertise in all aspects of chartering and
  vessel management in the dry bulk shipping industry
! Combining traditional shipping ethics with young and modern
  business acumen
! Focus on Growth, Stability and Security
! Management has a significant equity stake (71.6%)




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Our Strategy

 ! Focus on Handysize segment due to strong fundamentals and
   customer needs

 ! Goal of rapidly expanding and modernizing fleet within 2006-2007

 ! Fleet expansion through second hand vessel acquisitions

 ! Balanced fleet deployment between period and spot markets

 ! Growth financed through cash flow, bank debt and alternative
   financing methods

 ! Maintain cost efficient and safe operations responding to customer
   needs

 ! Investor and shareholder friendly. Became public through a reverse
   merger in December 2005. Goal of sharing upside potential with
   investors


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Focus on the Handysize Market

 ! Viewed as the workhorses and most versatile carriers in cargo and
   accessibility in the dry bulk fleet

 ! Well suited for small ports with length and draft restrictions and for
   ports lacking infrastructure for larger vessels

 ! Used in inter-regional trading and trading to second and third world
   countries that buy smaller quantities

 ! This segment has the lowest volatility in freight rates and vessel
   prices in the dry bulk industry

 ! The number of Handysize vessels will decline in the coming years:
    ! Support increases in freight rates and vessel prices
    ! Increase current owners market share



                                    6
Handysize Vessel Demand Drivers

! Petrodollars have fueled booming economies in the Middle East,
  resulting in increased demand for construction material, steel
  products and other minor bulks in the region.

! Continuing high oil prices and ever increasing demand for electricity
  from China are expected to contribute to continued demand of steam
  coal as an energy alternative.

! Handysize ton-miles have increased from 1,700 billion in 2000 to
  approx. 2,000 billion in 2005 and is expected to further increase
  reaching approx. 2,200 billion ton-miles in 2009.

! The strong demand for raw materials from developing countries such
  as China and India, and dynamics within the dry bulk fleet, create an
  attractive opportunity for expansion of Handysize dry bulk shipping
  fleets.


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Handysize Vessel Supply Drivers

 ! Supply of new building dry bulk vessels is expected to peak in 2006.
 ! Supply of newly built Handysize drybulk carriers is minimal and
   not expected to dramatically increase the total fleet size. The
   Handysize orderbook represents only 6% of the existing fleet as
   compared to 21% for the Handymax sector, 21% for the Panamax
   sector and 27% for the Capesize sector.
 ! The Handysize sector has the oldest fleet with approximately 27%
   of the vessels over 25 years of age. In contrast only 1.3% of the
   Capesize, 3.9% of the Panamax and 5% of the Handymax are over
   25 years of age.
                                       New Vessel Orders Vs. Fleet Age

                                         Average                      Fleet Vessel Age
                   Orderbook             Age (Yrs)       20 yrs +   20 - 24 yrs 25 - 29 yrs 30+ yrs
  Capesize              22.8%                 11.1          15.5%         14.2%       1.1%     0.3%
  Panamax               22.0%                 11.6          24.2%         19.3%       4.2%     0.7%
  Handymax              18.4%                 11.3          22.4%         16.8%       4.5%     1.1%
  Handysize              6.6%                 17.7          53.2%         26.1%      18.6%     8.4%
  Source: Clarkson Research Services




                                                     8
Growth Opportunity in Handysize Vessels


 ! The average age at which vessels are scrapped is 27 years

 ! Constraints in increasing Handysize new order book as shipyards
   are operating at or near capacity with their berth availability
   booked through 2009

 ! Shipbuilders prefer to build larger dry bulk vessels which are more
   profitable to the builders

 ! Since 27% of the Handysize fleet is over 25 years old and the
   current orderbook is for only 6% – the Handysize fleet will decline
   approximately 21% in the coming years




                                   9
Fleet Operating Statistics


                         Summary of Fleet Data

   Fleet Data                      12-Months 2005 12-Months 2004
   Average Number of Vessels                 2.55          0.66
   Available Days for Fleet                   893           244
   Calendar Days for Fleet                    931           244
   Fleet Utilization                         96%          100%
   Average Daily Results
   Average Daily Revenue per Vessel       $10,881        $11,012
   Vessel Operating Expenses                4,418          4,000
   General and Administrative Expenses        367             64
   Total Vessel Operating Expenses         $4,785         $4,064
   Average Gross Profit per Day            $6,096         $6,948




                                  10
Statement of Financial Condition (in US$ 000’s)



                                             12/31/2004   12/31/2005
  Current Assets                                 $1,443      $5,286
  Total Assets                                   18,335      29,593

  Current Liabilities                            4,971        9,465
  Total Liabilities                             14,949       20,165
  Total Shareholders Equity                      3,386        9,428

  Total Liabilities & Shareholders' Equity     $18,335      $29,593




                                   11
Capitalization and Ownership


   Symbol                           FREE

  Exchange                          Nasdaq Capital Market

  Recent Price 6/16/06              $4.23
  Current Shares Outstanding        6.28 million shares
  Market Cap                        $26.6 million
  Float                             1.78 million shares

  Ownership:
    Management                      71.6%
    Institutional Holdings          12.6%

  Warrants Outstanding
    Series W (FREEW)                1.8 million
    Series Z (FREEZ)                1.5 million



                               12
Competitive Strengths


 ! Experienced management team with long shipping tradition

 ! Focus on the handy segment with compelling dynamics

 ! Stability – least volatile segment of the dry bulk sector

 ! Strong customer relationships, efficient and dependable vessel
   operations

 ! Goal of rapidly expanding and modernizing fleet within 2006-2007

 ! Opportunity to be part of the biggest growth potential

 ! Investor and shareholder friendly. Goal of sharing upside
   potential with investors



                                    13
Contacts


Visit company website at: www.freeseas.gr


 Company Contact                  Investor Relations/Media

 Stathis D. Gourdomichalis        Nicolas Bornozis
 Chief Financial Officer          Capital Link, Inc.
 FreeSeas Inc.                    230 Park Avenue - Suite 1536
 93 Akti Miaouli Street           New York, NY 10160, USA
 185 38 Piraeus, Greece           Tel: (212) 661-7566
 Tel: 011-30-210-45-28-770        Fax: (212) 661-7526
 Fax: 011-30-210-429-10-10        E-Mail: nbornozis@capitallink.com
 E-Mail: info@freeseas.gr         Website: www.capitallink.com
          sdg@freeseas.gr
 Website: www.freeseas.gr




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