 Merger of Cambridge Capital Acquisition Corporation (NASDAQ: CAMB) & Parakou Tankers, Inc. PARAKOU TANKERS, INC. Investor Presentation December 2014 Filed by Cambridge Holdco, Inc. pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934 Subject Company: Cambridge Capital Acquisition Corporation Commission File No.: 001-36229 |
 Parakou Tankers, Inc. Preliminary Matters Additional Information and Where to Find It. The proposed mergers described in this presentation (the "Mergers”) will be submitted to the stockholders of Cambridge Capital Acquisition Corporation ("Cambridge"). In connection with the proposed Mergers, Cambridge and Cambridge Holdco, Inc. ("Holdco"), Cambridge’s wholly owned subsidiary, will file with the Security and Exchange Commission (the "SEC") a registration statement on Form S-4 that will include a proxy statement/prospectus for the stockholders of Cambridge that will be mailed to the stockholders of Cambridge. Cambridge urges investors, stockholders and other interested persons to read, when available, the proxy statement/prospectus, as well as other documents filed with the SEC, because these documents will contain important information and a more complete description of the transaction summarized briefly in this presentation. Such persons can also read Cambridge’s final prospectus, dated December 17, 2013, and Cambridge’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013, for a description of the security holdings of the Cambridge officers and directors and of EarlyBirdCapital, Inc. ("EBC") and their respective interests as security holders in the successful consummation of the transactions described herein. Cambridge’s definitive proxy statement/prospectus included in Holdco’s registration statement will be mailed to stockholders of Cambridge as of a record date to be established for voting on the transactions described in this presentation. Stockholders will also be able to obtain a copy of such documents, without charge, by directing a request to: Cambridge Capital Acquisition Corporation, 525 South Flagler Drive, Suite 201, West Palm Beach, Florida 33701. These documents, once available, and Cambridge’s IPO final prospectus and Annual Report on Form 10-K can also be obtained, without charge, at the Securities and Exchange Commission’s web site (http://www.sec.gov). Participants in Solicitation. EBC, the managing underwriter of Cambridge’s initial public offering consummated in December 2013, is acting as Cambridge’s investment banker in these efforts, for which it will receive a fee. Additionally, Cowen and Company, LLC (“Cowen”) is also assisting Cambridge in connection with the proposed Mergers, for which it will receive a fee. Cambridge and its directors and executive officers, EBC and Cowen may be deemed to be participants in the solicitation of proxies for the special meeting of Cambridge stockholders to be held to approve the Mergers. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the stockholders of Cambridge in connection with the proposed Mergers will be set forth in the proxy statement/prospectus when it is filed with the SEC on Form S-4. You can find information about Cambridge’s executive officers and directors in its Annual Report on Form 10-K, which was filed with the SEC on March 28, 2014. You can obtain free copies of these documents from Cambridge using the contact information above. Non-Solicitation. This presentation and the oral statements made in connection with this presentation are not proxy statements or solicitations of a proxy, consent or authorization with respect to any securities or in respect of the proposed Mergers and shall not constitute an offer to sell or a solicitation of an offer to buy the securities of Cambridge, Holdco or Parakou Tankers, Inc. ("Parakou"), nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. 2 |
 Parakou Tankers, Inc. Preliminary Matters Forward-Looking Statements. This presentation, and oral statements made in connection with this presentation, include "forward-looking statements" within the meaning of U.S. federal securities laws. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue" and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results and, consequently, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements and factors that may cause such differences include, without limitation, Cambridge’s and Parakou’s expectations with respect to future performance, growth and anticipated acquisitions; the anticipated financial impact of the Mergers; ability to recognize the anticipated benefits of the Mergers; costs related to the proposed Mergers; the satisfaction of the closing conditions to the Mergers; the timing of the completion of the Mergers; volatility in charter rates and profitability; demand for shipping of refined petroleum products; global economic conditions; changes in fuel prices; geopolitical events and regulatory changes; damages to vessels; acts of piracy, political instability, terrorist or other attacks, war or international hostilities; loss of key personnel; delays in deliveries of any newbuild product tankers; difficulty managing planned growth properly; seasonal and exchange rate fluctuations; access to additional financing; changes in tax laws; weather and natural disasters; changing interpretations of generally accepted accounting principles; inquiries and investigations and related litigation; continued compliance with government regulations; and other risks and uncertainties indicated from time to time in filings with the SEC by Cambridge or Holdco. The foregoing list of factors is not exclusive. Additional information concerning these and other risk factors is contained in Cambridge’s most recent filings with the SEC and will be contained in the proxy statement/prospectus to be filed by Holdco. All subsequent written and oral forward-looking statements concerning Cambridge, Holdco and Parakou, the transactions described herein or other matters and attributable to Cambridge, Holdco and Parakou or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Neither Cambridge, Holdco nor Parakou undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based. Market & Industry Data. The market and industry data contained in this presentation are based on the parties own estimates, internal research, surveys and studies conducted by third parties and industry and general publications and, in each case, are believed by management to be reasonable estimates. This data is subject to change and cannot always be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties inherent in any statistical survey of market or industry data. 3 |
 Parakou Tankers, Inc. 4 Transaction Overview Acquirer Cambridge Capital Acquisition Corporation (NASDAQ: CAMB) Target Parakou Tankers, Inc. Amount Held in Trust $81.3 million¹ Use of Proceeds Vessel Acquisitions² Closing Consideration to be Received by Target Shareholder 5.8 million shares of CAMB stock Pro Forma Ownership¹ At Closing: Assuming Earnout Targets are Achieved³: CAMB Public Shareholders – 43.9%; CAMB Initial Parakou Board Transaction Approvals CAMB Shareholder Approval; Charterer Consent Parakou Place of Incorporation Marshall Islands 4 Transaction Advisors EarlyBird Capital/Cowen & Company 1. Assumes that no public Cambridge stockholders exercise their conversion rights. 2. Sources and uses of funds for the acquisition of vessels described under “Fleet Acquisition Strategy” on page 10 of this presentation will be based on a variety of sources of cash, debt and/or equity. 3. Earnout targets include EBITDA targets and share price targets over a three year period. 4. Upon consummation of the transaction, Cambridge will be renamed to Parakou Tankers, Inc. and incorporated in the Marshall Islands. CAMB Public Shareholders – 52.5%; CAMB Initial Shareholders – 9.6%; Target Shareholder – 37.9% Shareholders – 13.6%; Target Shareholder – 42.5% 7 members; Majority Independent Directors |
 Parakou Tankers, Inc. Parakou Owns and Operates MR Product Tankers 5 |
 Parakou Tankers, Inc. Company Overview Market Backdrop Investment Highlights Historical Financial Statements 6 |
 Parakou Tankers, Inc. 7 The Merger of Cambridge and Parakou Tankers: Creating a Publicly Traded Industrial Shipping Company • Cambridge and Parakou Tankers intend to merge on a share for share basis • Parakou is a fully integrated, high growth, product tanker company that provides marine transportation of petroleum and other liquid products globally – 8 Medium Range product tankers in current fleet – Parakou has letters of intent or is actively negotiating agreements to acquire an additional 20 Medium Range product tankers by the fourth quarter of 2017, as described in this presentation • Balanced commercial strategy provides predictable revenue streams, access to improving spot market fundamentals and the ability to optimize trading performance • High quality and cost efficient in-house technical management provides competitive advantage • Compelling industry dynamics: – Expected structural shifts in global refining capacity driving positive product tanker trade developments and ton-mile expansion in 2014-2016 – Global demand for product tankers forecast to grow 6.5% annually versus MR tanker supply growth of 4.5% • Long-standing relationships provide meaningful access to rapidly expanding Asian markets • Closely aligned shareholder, management, and owner interest with 100% equity rollover by founder • Transparent and accessible Singapore and New York management team with proven track record |
 Parakou Tankers, Inc. Parakou Tankers, Inc.. . Parakou International Ltd. Parakou Tankers, Inc • PIL founded in 1985 in Hong Kong • Built over 170 vessels with total value of approximately $4.5 billion • Focus on predictable long-term charters Introduction: Background and Formation of Parakou Tankers, Inc. Key Events & Operational History Parakou International Ltd. (“PIL") • Building high growth industrial shipping company • 8 MR tanker fleet, currently • 100% technical and commercial management performed in-house • Strategy of operating pool to diversify revenue streams • Attractive market dynamics • Plan to pursue acquisition of an additional 20 MR product tankers (newbuilding resales, newbuilding bareboat charters and purchase of existing vessels) Parakou Tankers Through newbuilding resales, secondhand resales, and bareboat dropdowns with purchase options, Parakou is seeking to achieve significant fleet and earnings growth 8 |
 Parakou Tankers, Inc. 9 Operating Fleet Overview Current Charter Coverage Provides Stable Cash Flows DWT Year Built Charterer Charter Expiration Registry Shipyard Pretty World Sextans Cygnus St. Petri Pretty Scene Pretty Jewelry Orion Hercules 51,000 51,000 51,000 51,000 51,000 51,000 51,000 51,000 2007 2007 2007 2007 2006 2006 2006 2006 STX STX STX STX STX STX STX STX Torm OSG OSG Oetker Morgan Stanley Torm OSG OSG Feb-16 Apr-16 Apr-16 Mar-17 Feb-15 Feb-16 Apr-16 Apr-16 Hong Kong Hong Kong Hong Kong Hong Kong Hong Kong Hong Kong Hong Kong Hong Kong |
 Parakou Tankers, Inc. 10 Fleet Acquisition Strategy DWT Year Built Shipyard Eco • The addition of modern tonnage to Parakou's fleet would increase fuel efficiency and trading flexibility while simultaneously decreasing capital expenditures and charterer dependency • Successful execution of our vessel acquisition strategy would expand our operating fleet to 28 MR product tankers by the fourth quarter of 2017 1. Parakou has letters of intent or is actively negotiating agreements to acquire an additional 20 Medium Range product tankers by the fourth quarter of 2017. We cannot assure you that Parakou will be successful in completing these negotiations or the acquisition of these vessels on the time frame anticipated or at all. NB #S5158 NB #S5159 NB #S5160 NB #S5161 2013 Built TBD 2013 Built TBD NB # 1 NB # 2 NB # 3 NB NB # 5 NB NB # 6 NB NB # 7 NB NB # 8 NB NB # 9 NB NB # 10 NB NB # 11 NB NB # 12 51,300 51,300 51,300 51,300 51,000 51,000 51,300 51,300 51,300 51,300 51,000 51,000 51,300 51,300 51,300 51,300 51,000 51,000 2015 2015 2016 2016 2013 2013 2016 2016 2016 2016 2017 2017 2017 2017 2017 2017 2017 2017 SPP SPP SPP SPP SPP SPP SPP SPP SPP SPP SPP SPP SPP SPP SPP SPP SPP SPP Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 51,000 51,000 2007 2007 STX STX No St. Johannis ¹ St. Marien ¹ No Status Under Neg. Under Neg. LOI LOI LOI Under Neg. Under Neg. Under Neg. Under Neg. Under Neg. Under Neg. Under Neg. Under Neg. Under Neg. Under Neg. Under Neg. Under Neg. LOI LOI LOI Bareboat Bareboat Bareboat Bareboat NB # 4 1 |
 Parakou Tankers, Inc. Company Overview Market Backdrop Investment Highlights Historical Financial Statements 11 |
 Parakou Tankers, Inc. • In 2014 oil demand growth is forecasted to expand 1,540 KB/d with global economic activity increasing 3.6% • Seaborne product trade flows are forecasted to expand to 79,30 KB/d, a 4.1% increase from 2013 levels • Ton-mile demand expansion of 6.5% annually due to increasing seaborne trade flows and voyages distances Now Is An Attractive Time to Enter the MR Market Steady Oil Demand, Product Tradeflow and Ton-Mile Demand Growth Shifting Trade Patterns Resulting in Ton-mile Expansion Moderate Fleet Growth in MR Sector Increasing Scrap Incentives for Aging Non-Eco Tonnage • The MR fleet (35k DWT-59.9k DWT) grew by 4.5% YoY in 2013 • 2014 MR fleet growth is projected at approximately 4.6% • The US continues to lead product trade pattern expansion with exports growing 95 KB/d to 495 KB/d, +24% growth in 2013 from 2012 levels • Australian refinery closures, Russian refinery upgrades, and Mideast export refinery completions are expected to add further momentum to positive product tanker trade developments and ton-mile expansion in 2015-2016 • The product tanker orderbook is shrinking as a percentage of the fleet with an increasing proportion of the MR segment approaching the key 15+ year age profile • Ballast Water Treatment System and ECA fuel regulation implementations in 2016, are expected to add significantly to dry docking and trading costs in environmentally sensitive areas MR ton-mile demand growth of 6.5% annually is forecasted to outpace supply growth of 4.5% in the medium term resulting in tightening MR utilization and positive earnings development 12 Sources: PIRA Energy Group, Clarksons SIN, Fearnleys AS. |
 Parakou Tankers, Inc. Robust Long Term Fundamentals MR Charter Rates Continue to Increase Along with Ton-mile Demand Key takeaways MR Fleet Development Seaborne Product Trade Flows (MMB/d) Asset Values Near Cyclical Low • The US continues to lead product trade pattern expansion with exports growing 95 KB/d to 495 KB/d, +24% growth in 2013 from 2012 levels • Ton-mile demand forecast to expand 5-8% in 2014 with supply forecast to increase 4-5% • MR newbuilding resale values currently 68% of peak 2008 levels providing attractive entry point Vessel deliveries projected to remain well below peak 2004-2009 levels 13 Sources: PIRA Energy Group, Clarksons SIN, Fearnleys AS. -4 -2 0 2 4 6 8 10 12 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014 Deliveries Removals Est. Deliveries Scrap Forecast Net Change 44 Year Fleet Growth Avg Nominal values Inflation adjusted values 10 year avg - nominal 10 year avg - inflation adjusted 20 25 30 35 40 45 50 55 60 USDm 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 MM Dwt |
 Parakou Tankers, Inc. Company Overview Market Backdrop Investment Highlights Historical Financial Statements 14 |
 Parakou Tankers, Inc. A Differentiated Industrial Shipping Company Key Investment Highlights Strategy to Own and Operate a Fleet of Modern Efficient MR Product Tankers Highly Experienced Management Team With Proven Track Record 7 High Quality, Cost Efficient Operator Fully Integrated Shipping Platform Supports Customer Requirements and Adds to Shareholder Value Capitalize On Positive Industry Dynamics 2 Access to Strategically Important, High Growth Asia/Pacific Markets 4 15 5 1 3 Differentiated Trading Strategy Achieves Higher Returns 6 |
 16 Fully Integrated Shipping Platform Supports Customer Requirements and Adds to Shareholder Value 1 Creates shareholder value: Adjustable commercial strategy capable of taking advantage of market opportunities, no fees paid to third parties, and asset values acquired at the right time in cycle Typical Blue Chip End User Base Customers 16 Parakou Tankers, Inc. • • • • • • • Fleet 8 ships currently in operation All high specification Korean built MR Product Tankers Assets acquired at right time in cycle Commercial Provides management team flexibility to adjust commercial strategy based on client requirements, new opportunities and shifts in the market Technical All technical management is performed in-house PSM has shown clear competitive advantage in providing cost efficient technical management services Finance Provides financial security for customers Multi-cycle relationships with commercial lenders Moderate leverage leads to stability • • |
 Strategy to Own and Operate a Fleet of Modern Efficient MR Product Tankers 17 2 Parakou Tankers Fleet Average Fleet Age • Disciplined and strategic acquisition strategy leads to scale and operational efficiencies – Successful execution of our vessel acquisition strategy would result in 28 MR product tankers by the fourth quarter of 2017 – Addition of modern tonnage to fleet would increase fuel efficiency and trading flexibility while simultaneously decreasing average age and capital expenditures – Financial structure and infrastructure provide platform for stable growth 1. Parakou has letters of intent or is actively negotiating agreements to acquire an additional 20 Medium Range product tankers by the fourth quarter of 2017. We cannot assure you that Parakou will be successful in completing these negotiations or the acquisition of these vessels on the time frame anticipated or at all. 7.4 7.0 5.3 4.4 0 1 2 3 4 5 6 7 8 2014 2015 2016 2017 Parakou Tankers, Inc. 8 8 14 20 6 6 8 8 14 20 28 0 5 10 15 20 25 30 2014 2015 2016 2017 Additions Existing Fleet 1 |
 Parakou Tankers, Inc. 18 • Expanding US exports, Russian refinery upgrades, Mideast export refinery completions, Japanese/Australian refinery shutdowns, and European refinery closures provide a robust backdrop for expected increasing product tanker demand • According to leading industry analysts, MR Earnings are forecast to increase to $17,900/day and $18,300/day in 2015 and 2016, respectively 3 MR Spot Market Earnings and Analyst Earnings Forecast ($/day) 5,000 10,000 15,000 20,000 25,000 30,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Proj. 2014 Proj. 2015 Proj. 2016 Capitalize On Positive Industry Dynamics Spot Market MR Rates and Term Charter Rates Continue to Rise Note: Actual Earnings based on Clarkons’ SIN; 2014-2016 consists of average of Clarksons YTD Earnings and Analyst Projections (ICAP, Stifel, RS Platou, Pareto, Clarksons, Jefferies, and DNB 2015 and 2016 Earnings are weighted average of analyst projections. |
 Parakou Tankers, Inc. • Parakou has strong ties to Asian charterers, owners, shipyards and financial institutions • This is represented by relationships with: – Respected customer at 15+ top tier Asia/Pacific shipyards in South Korea, China and Japan forged through 170+ newbuilding projects by legacy companies (provides opportunities as newbuild slots become available) – Relationships with Asia/Pacific financial institutions provide potential attractive alternative long-term financing – Chinese state owned oil companies provides increased cargo potential – China and South Asia GDP forecasted to grow at 7.3% and 5.2% in 2014, respectively – Relationships at shipyards and with customers in areas 19 Access to Strategically Important, High Growth Asia/Pacific Markets Parakou Tankers, Inc. Asia Presence Established Asian Market Presence 4 Enhances Earnings and Financing Opportunities |
 High Quality, Cost Efficient Operator Lower Cost Structure Relative to Peer Group 2013 Reported MR Peer Group OPEX ($/day) • Parakou Ship Management has shown a competitive advantage in providing technical management leading to dramatically lower cost. Services include: – OPEX of $5,700/day for existing tankers and estimated $5,000/day for newbuildings results in 14% cost advantage relative to peer group • Lower crewing costs by negotiation of more favorable contracts • In house management of drydock expenses leads to favorable pricing with shipyards • More efficient use of shore-side employees is reflected in lower repair and maintenance – Economies of scale lead to benefits remaining within the company – Total transparency – No fees paid to management or third party technical providers 20 Source: Company filings. 1. Includes both MR and Chemical Tanker operating expense per day. 5 $4,000 $4,500 $5,000 $5,500 $6,000 $6,500 $7,000 $7,500 $8,000 Torm Ardmore Scorpio Parakou $7,155 $6,531 $6,069 $5,687 1 Parakou Tankers, Inc. |
 Parakou Tankers, Inc. # of Ships on Order Commercial Strategy Fleet Composition Operating Expense/day 1 Corporate Overhead per Ship/day Technical Management 13 MR Product Tankers 5 Handysize Product Tankers 8 LR2 Product Tankers 20 MR Product Tankers 4 MR Product Tankers 6 Chemical Tankers North Atlantic Basin Global IMO II/III Time Chartered Related Third Party In House Independent Third Party 64% MR Product Tankers 36% Other Product Tankers 100% MR Product Tankers 79% MR Product Tankers 21% Chemical Tankers $ 6,100/day $ 5,700/day $ 6,500/day 2 High Quality, Cost Efficient Operator Parakou Compares Favorably to our Competitors 5 Current Fleet 8 MR Product Tankers 11 MR Product Tankers 3 Chemical Tankers 10 Handysize Product Tankers 32 MR Product Tankers $ 1,820/day $ 1,040/day $ 2,450/day Commercial Management Related Third Party In House Tonnage Provider N/A Mixed Strategy In House N/A $ 7,200/day 11 Handysize Tankers 44 MR Product Tankers 7 LR1 Product Tankers 10 LR2 Product Tankers N/A In House Source: Company Filings 21 6 LR2 Product Tankers 2 LR1 Product Tankers 2. Includes both MR and Chemical Tanker operating expense per day. 1. 2013 reported operating expense / day. |
 Parakou Tankers, Inc. • Strategic access to Asian Markets (with Singapore as trading hub) enhances ability to enter Easy Chemicals, Palm oil, Veg-oil, and Biofuel trades (IMO II/III trades) • Tankers designed to carry a range of liquid cargoes to achieve greater operational efficiency and earnings – We believe a premium up to $1,000 – $2,000/day achieved through improved utilization, lower port time/charges, decreased ballast time, easier rerouting for repair/special survey/drydock maintenance, and the flexibility to switch back into clean petroleum product (“CPP”) trades to capitalize on earnings spikes Differentiated Trading Strategy Achieves Higher Returns Trading Strategy Leads to Significant Premiums Over Peers Source: Internal Parakou estimates, Fearnleys AS 6 Earnings Premium of Triangulated Trade Patterns Total Voyage: 24 Days Laden 7 Days Ballast (Clean Petroleum Products) (Caustic Soda) (Caustic Soda) Total Voyage: 140 Days Laden 21 Days Ballast 90% Efficiency 80% Efficiency 22 |
 Parakou Tankers, Inc. Mr. Por Liu Chairman & CEO 23 Highly Experienced Management Team With Proven Track Record Mr. Gregory McGrath CFO Mr. Peter S. Bell CCO Mr. Yang Jian Gou COO, President PSM, & Director • Mr. Gregory McGrath, has 30+ years of industry experience with a major oil company and both public and private shipping companies • Most recently was Chief Financial Officer of a publicly held shipping company • Formerly Vice President of Finance and Administration of American Eagle Tankers, Inc., a foreign flag tanker owner • Began his career with ExxonMobil, working for 16 years in various financial, shipping and supply functions • Mr. Por Liu, Chairman and CEO of Parakou Tankers, also serves as Managing Director of PSM, our in- house technical management company based in Singapore • Mr. Liu has worked for Parakou and affiliated companies in different roles and capacities for his entire career • For the past seven years Mr. Liu has been instrumental in building and managing PSM’s ship management company’s activities • Mr. Peter S. Bell brings 30+ years of experience in international tanker chartering, business development, sale and purchase, new construction contracting, and M&A • Experienced in development and implementation of corporate strategic plans and has held senior management roles in three of the industry’s largest publically listed shipping firms • Extensive relationships with cargo interests, shipyards and the finance community and was most recently responsible for the commercial development of a fleet of twenty-two tankers • Mr. Yang Jian Guo, has served as President of PSM since 2006 • Mr. Yang has spent 40+ years in various capacities in the shipping industry • Prior to joining PSM, Mr. Yang served as President of Sinotrans Holdings HK, overseeing the business activities of a dozen shipping related businesses including tanker, container line, bulk cargo, and logistics units • Prior to this role, Mr. Yang served as Vice President of Sinotrans • Additionally, Mr. Yang served as the Vice Chairman of China Shipowners Association and a member of the arbitration committee of CCPIT 7 23 |
 Parakou Tankers, Inc. 24 Investing in an Industrial Shipping Company With Strong Potential for Growth Fully Integrated Shipping Platform Supports Customer Requirements and Adds to Shareholder Value 1 Strategy to Own and Operate a Fleet of Modern Efficient MR Product Tankers 2 Capitalize On Positive Industry Dynamics 3 Access to Strategically Important, High Growth Asia/Pacific Markets 4 High Quality, Cost Efficient Operator 5 Highly Experienced Management Team With Proven Track Record 7 Differentiated Trading Strategy Achieves Higher Returns 6 |
 Parakou Tankers, Inc. Company Overview Market Backdrop Investment Highlights Historical Financial Statements 25 |
 Parakou Tankers, Inc. 26 Key Financial Highlights Selected Income Statement Highlights: ($ in Millions) Fiscal Year Ended 6 Months Ended Income Statement December 31, 2012 December 31, 2013 June 30, 2013 June 30, 2014 Revenue $57.0 $48.9 $23.5 $23.5 Operating Expenses Vessel Operating Expense ($31.8) ($25.7) ($12.6) ($11.4) Depreciation (11.6) (11.5) (5.8) (5.8) G&A (3.0) (2.9) (1.4) (1.7) All Other (1.2) (6.5) (0.9) (1.1) Operating Profit $9.4 $2.2 $2.9 $3.5 Net Interest Expense (10.8) (9.3) (4.8) (4.1) Unrealized Gain on Derivative 3.6 8.4 4.8 1.8 Comp. from Charter Termination – 14.5 – – Other Income 0.1 0.9 0.6 0.2 Net Income $2.3 $16.7 $3.4 $1.4 |
 Parakou Tankers, Inc. 27 Key Financial Highlights Selected Financial Highlights: ($ in Millions) As of As of Balance Sheet Data December 31, 2013 June 30, 2014 Current Assets Cash and Cash Equivalents $11.8 $10.2 Receivables 7.2 4.3 Other 2.3 3.5 Total Current Assets $21.3 $18.1 Non-current Assets Vessels $222.5 $217.4 Other 0.2 0.3 Total Non-current Assets $222.7 $217.7 Total Assets $244.0 $235.8 Current Liabilities Payables $9.1 $9.6 Bank Loans 19.8 20.1 Other 2.4 3.7 Total Current Liabilities $31.3 $33.4 Non-current Liabilities Derivative Financial Instruments $13.0 $11.4 Bank Loans 96.9 86.8 Total Non-current Liabilities $109.9 $98.2 Total Shareholder's Equity $102.8 $104.2 Total Liabilities and Equity $244.0 $235.8 |
 Parakou Tankers, Inc. 28 Key Operating Highlights Note: Analyst Estimates based on weighted average of analyst projections (ICAP, Stifel, RS Platou, Pareto, Clarksons, Jefferies, and DNB);. TCE and OPEX Assumptions: Full Year 2012 Full Year 2013 Analyst Estimate 2014 Analyst Estimate 2015 Analyst Estimate 2016 TCE – $/Day $15,551 $12,962 $15,108 $17,943 $18,300 Vessel Opex – $/Day $5,781 $5,733 $6,500 $6,500 $6,500 Current Debt Profile (Existing Fleet, $ in millions): Loan Amount $136.0 Margin Libor + 275 Quarterly Amortization $0.4 per vessel |