powering the world Aegean Marine Petroleum Network Inc. Fourth Quarter 2008 Earnings Call Presentation February 26 2009
Disclosure Today s presentation and discussion will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as expects, anticipates, intends, estimates, or similar expressions are intended to identify these forward-looking statements. These statements are based on Aegean Marine Petroleum Network Inc. s current plans and expectations and involve risks and uncertainties that could cause future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual results to differ include our future operating or financial results, our ability to manage growth, adverse conditions in the marine fuel supply industries, and increased levels of competition. For further information, please refer to Aegean Marine Petroleum Network Inc. s reports and filings with the Securities and Exchange Commission. 2
...powering the world 3
Agenda Highlights Financial Overview Industry Strategy Q&A Appendix 4
Highlights 5
Highlights Increased sales volumes to 1,568,770 metric tons in Q4 2008 and 5,200,256 metric tons for the full year. Expanded net revenues to $51.6 million in Q4 2008 and $170.9 million for 2008. Generated gross spread on marine petroleum products of $47.7 million in Q4 2008 and $161.0 million for the full year. Recorded operating income of $18.3 million in Q4 2008 and $52.1 million for the full year. Reported adjusted net income, which excludes a $1.0 million tax expense, of $14.1 million, or $0.33 basic and diluted earnings per share for Q4 2008. Net Income for the quarter was $13.1 million, or $0.31 basic and diluted earnings per share. Net Income for the full year was $39.9 million, or $0.94 basic and diluted earnings per share. Continued expanding global presence and infrastructure: Announced expansion into Trinidad and Tobago (Southern Caribbean) and Tangiers (Morocco), increasing our presence to 13 markets worldwide. Took delivery of seven double-hull bunkering tanker newbuildings in 2008 and year-to-date in 2009. Acquired four double-hull bunkering tankers and two bunkering barges in the secondary market in 2008 and year-to-date in 2009. Implemented a $25 million stock repurchase program. 6
Financial Overview 7
(1) Financial Overview: Selected Financials Year-on-Year Comparison 4q07 4q08 YoY % Sales Volumes (MT) 1,026,395 1,568,770 +52.8% (4) Gross Spread per MT ($/MT) $28.41 $30.21 / $32.48 +6.3% / +14.3% (2) Net Revenue $32,634 $51,579 +58.1% Operating Income $8,816 $18,269 +107.2% (3) Adjusted Net Income $7,755 $14,061 +81.3% Net Income $6,255 $13,072 +109.0% Quarter-on-Quarter Comparison 3q08 4q08 QoQ % Sales Volumes (MT) 1,338,914 1,568,770 +17.2% Gross Spread per MT ($/MT) $32.75 $30.21 / $32.48-7.8% / -0.8% (2) Net Revenue $46,384 $51,579 +11.2% Operating Income $15,057 $18,269 +21.3% (3) Adjusted Net Income $10,521 $14,061 +33.6% Net Income $9,455 $13,072 +38.3% (4) (4) (4) (1) All amounts are in thousands of USD unless otherwise specified. (2) Net Revenues= Total Revenues - Cost of Goods Sold - Cargo Transportation Costs (3) Adjusted Net Income excludes non-recurring items (4) Gross spread per metric ton calculation pre FX translation adjustment. 8
Financial Overview: Net Revenue Drivers 1,750,000 $40.0 (in metric tons) Sales Volumes 1,500,000 1,250,000 1,000,000 750,000 500,000 Sales Volumes CAGR = 47.3% $37.5 $35.0 $32.5 $30.0 $27.5 $25.0 $ Gross Spread per Metric Ton 250,000 $22.5 0 4q06 1q07 2q07 3q07 4q07 1q08 2q08 3q08 4q08 $20.0 Volumes Gross Spread (1) (1) Gross spread per metric ton calculation changed in the fourth quarter 2008 to reflect FX translation adjustment. 9
Financial Overview: Company-wide Utilization (1,2) 800 Volu ume (metric tons delivered d per vessel per day) 700 600 500 400 300 200 100 0 4q06 1q07 2q07 3q07 4q07 1q08 2q08 3q08 4q08 Gross Adjusted (1) Utilization is measured as volume (in metric tons) delivered per vessel per day. (2) Adjusted figure excludes non-operating (off-hire) days caused by both scheduled and unscheduled maintenance requirements; Aegean began monitoring this metric in 1q08. 10
(1,2) Financial Overview: Market-specific Utilization 1100 Volume (metric tons del elivered per vessel per day) 1000 900 800 700 600 500 400 300 200 100 Singapore U.A.E. Greece Northern Europe U.K. Gibraltar West Africa Jamaica Vancouver 4q06 1q07 2q07 3q07 4q07 1q08 2q08 3q08 4q08 (1) Utilization is measured as volume (in metric tons) delivered per vessel per day. (2) Figures are not adjusted for non-operating days. 11
Financial Overview: Volume Analysis $ per MT Sold 4q06 1q07 2q07 3q07 4q07 1q08 2q08 3q08 4q08 Bunker Vessel OPEX G&A Expenses Operating Income Bunker Vessel OPEX ex fuel Storage Costs 12
Financial Overview: Profitability (1,2) $60,000 50.0% $50,000 Net Revenues CAGR = 45.8% 48.0% 46.0% Net Revenue (in thousands) $40,000 $30,000 $20,000 $10,000 44.0% 42.0% 40.0% 38.0% 36.0% 34.0% EBITDA % Margin 32.0% $0 4q06 1q07 2q07 3q07 4q07 1q08 2q08 3q08 4q08 30.0% Net Revenues EBITDA Margin (1) Net Revenues= Total Revenues - Cost of Goods Sold - Cargo Transportation Costs (2) EBITDA Margin is calculated as EBITDA (excluding any FX-related gains/losses) divided by Net Revenue. 13
Financial Overview: Working Capital (1) Cash Conversion Cycle 40 35 30 Days Outstan nding 25 20 15 10 5 0 4q06 1q07 2q07 3q07 4q07 1q08 2q08 3q08 4q08 DIO DPO DRO CCC (1) DIO= Days Inventory Outstanding, DRO= Days Receivable Outstanding, DPO= Days Payable Outstanding, CCC= Cash Conversion Cycle 14
(1) Financial Overview: Balance Sheet Data ASSETS LIABILITIES and SE Cash and Cash Equivalents $46,927 Short-term Debt $99,352 Current Assets 251,387 Current Liabilities 202,022 Fixed Assets 349,380 Long-term Debt 154,269 Other Non-Current Assets 41,140 Other Non-Current Liabilities 613 TOTAL LIABILITIES $356,904 STOCKHOLDERS EQUITY $285,003 TOTAL ASSETS $641,907 TOTAL LIABILITIES & SE $641,907 (1) As of December 31, 2008 15
Industry 16
Industry: Review Capital Access Status Industry Effect Aegean Limited Increased risk to the funding of operations (working capital) and capex. Renewed credit facility in January 2009. Ample liquidity to fund growth. Leading to charges. Sophisticated credit Credit (to customers) Higher risk control systems has mitigated bad-debt loss. Marine Fuel Prices Lower/ Volatile Reduction in working capital requirements. Harder to manage price movements. Experienced purchasing and sales teams successfully manage client demand and product sourcing. Single-hull Phase-out In-effect All E.U. ports are now double-hull. Fully compliant. 17
Industry: Supply Fundamentals Projected World Bunkering Vessel Fleet (1) 4000 3500 3000 428 IMO MARPOL Regulation 13H bans single-hull tankers between 600 and 5,000 dwt from carrying heavy-grade oil; regulations went into effect beginning 2008. # of Vessels s 2500 2000 1500 1000 2994 511 585 647 709 776 500 1167 1050 945 850 765 0 2007 2008 2009 2010 2011 2012 Single-hull Double-hull (1) Lloyds MIU 18
Industry: Regulations Aegean s Markets Size (mm of tons) 1 Singapore 34.0 2 U.A.E. 13.0 Regulations Single-hulls allowed to operate until their 25 th anniversary. Current owners/operators of double-hull vessels are eligible for waivers on certain port fees. Single-hulls allowed to operate until their 25 th anniversary but no later than end-of-2009. 3 Gibraltar 4.0 Only double-hulls allowed to operate. 4 Greece 4.0 Only double-hulls allowed to operate. 5 Trinidad & Tobago (Southern Caribbean) 3.5 6 West Africa 3.0 (1) No new single-hulls allowed to enter market. Ghana allows single-hulls to operate subject to receiving approval. Moving towards adopting regulation. 7 Vancouver 1.0 Single-hulls allowed to operate until end-of-2015. 8 U.K. 1.0 Only double-hulls allowed to operate. (2) 9 Northern Europe 0.6 Only double-hulls allowed to operate. 10 Jamaica 0.6 No single-hull restrictions are currently in-place. 11 Mexico 0.3 Single-hulls allowed to operate until end-of-2015. 12 Montreal 0.3 Single-hulls allowed to operate until end-of-2015. 13 Tangiers n/a Only double-hulls allowed to operate. Aegean s Markets 65.3 Global Market Size 200.0 (1) Bunkerworld and Company information (2) Niche market (non ARA region) 19
Strategy 20
Strategy: New Markets Market Competitive Landscape Single-hull Regulation Key Strengths Expected Commencement Tangiers (Morocco) Low Only double-hulls allowed to operate Strategic location Planned regional hub Aegean, sole bunkering operator 2q09 21
Strategy: New Markets Market Size Competitive Landscape Single-hull Regulation Key Strengths Expected Commencement Trinidad & Tobago 3.5mm MT (Southern Caribbean) Medium Only double-hulls allowed to enter market 2q09 Strategic location Transshipment Hub Local supply agreement 22
Strategy: Global Reach Northern Europe (2007) Vancouver (2008) Montreal (2008) New York Gibraltar (1998) U.K. (2008) Athens / Greece (1995) Mexico (2008) Miami Jamaica (2005) Tangiers (2009e) U.A.E (2001) Trinidad & Tobago (2009e) West Africa (2008) Singapore (2006) Markets Headquarters Executive / Finance / Sales Business Development 23
Strategy: Delivery Fleet Growth (1) # of Ves ssels 50 40 30 20 Current count is 32. (as of February 2009) CAGR= 34.1% 10 0 2006 2007 2008 2009e 2010e SH DH (1) Delivery fleet includes both vessels and barges. 24
Strategy: Diversification Aegean s Sales Breakdown by Client Sector (1) Tankers Containerships Bulkers Car Carriers Cruise Ships Chemical Tankers Reefers LPG/LNG Other (1) Approximate percentages. 25
Strategy: Credit 26
Strategy: Marine Lubricants Marine Lubricants Size of Global Market Market Dynamics Aegean s Entrance into Market 2007 (1) Sealub Alliance Network Oils used by vessels to reduce friction in engines and machines. 2mm metric tons Dominated by the majors Group formed by Gulf Oil Marine to market and distribute marine lubricants globally. Aegean joined Sealub in February 2009. Other members include PetroChina, Ipiranga (Brazil), and SK (South Korea). Presence in over 450 ports in 40 countries. (1) Aegean estimates 27
Appendix 28
Appendix: Logistics Infrastructure DELIVERY FLEET Current On Order Projected in 2010 % Change Number of Vessels/Barges 32 20 52 +62.5% Total Capacity (dwt) 164,390 105,500 269,890 +64.2% Avg. Size per Vessel/Barge (dwt) 5,137 5,275 5,190 +1.0% Avg. Year Built 1996 n/a 2002 n/a Avg. Age in Years 13.5 n/a 7.7-42.6% % of Fleet DH 87.5% 100.0% 92.3% +5.5% ROLL-ON/ROLL-OFF / SPECIALTY TANKERS Number of Vessels 1 1 Total Capacity (dwt) 2,454 2,400 % of Fleet DH 100.0% 100.0% Number of Vessels 1 Total Capacity (dwt) 546 Number of Facilities 5 Capacity of Floating Storage (dwt) 224,849 Capacity of Onshore Storage (m^3) 40,000 (1) SPECIAL PURPOSE VESSELS STORAGE FACILITIES (2) (1) Delivery Fleet includes both vessels and barges. (2) Special Purpose Vessels are small bunkering tankers (circa 1,000 dwt) which are utilized for in-port operations only and hence are not included in utilization calculations. 29
Appendix: Current Delivery Fleet (1) Vessel Name Market Hull / Type Year Built DWT Vessel Name Market Hull / Type Year Built DWT 1 Aegean Force Jamaica DH / Vessel 1980 6,679 22 Aegean Flower Fujairah DH / Vessel 2001 6,523 2 Vera Jamaica SH / Vessel 1985 3,720 23 Aegean Pride I Fujairah DH / Vessel 1982 11,538 3 Hope Jamaica DH / Vessel 1980 10,597 24 Kithnos Fujairah DH / Vessel 2007 4,600 4 Aegean Tulip West Africa DH / Vessel 1993 4,853 25 Patmos Fujairah DH / Vessel 2008 6,283 5 Aegean VII West Africa SH / Vessel 1984 3,892 26 Serifos Singapore DH / Vessel 2007 4,664 6 Amorgos Gibraltar DH / Vessel 2007 4,627 27 Naxos Singapore DH / Vessel 2009 4,600 7 Santorini Gibraltar DH / Vessel 2008 4,600 28 Milos Singapore DH / Vessel 2007 4,626 8 Aegean XI Gibraltar DH / Vessel 1984 11,050 29 Kimolos Singapore DH / Vessel 2008 4,641 9 Mykonos Gibraltar DH / Vessel 2008 4,623 30 Paros Singapore DH / Vessel 2008 4,646 10 Aegean X U.K. DH / Vessel 1982 6,400 31 P.T. 25 Vancouver SH / Barge 1988 2,000 11 Sara Northern Europe DH / Vessel 1990 7,389 32 P.T. 36 Vancouver SH / Barge 1997 3,600 12 Aegean Princess Northern Europe DH / Vessel 1991 7,030 13 Syros Northern Europe DH / Vessel 2008 4,600 14 Aegean Daisy Piraeus DH / Vessel 1988 4,935 15 Aegean III Piraeus DH / Vessel 1990 2,972 16 Aegean Rose Piraeus DH / Vessel 1988 4,935 17 Aegean VIII Piraeus DH / Vessel 1990 2,972 18 Aegean XII Piraeus DH / Vessel 1979 3,660 19 Aegean Breeze I Piraeus DH / Vessel 2004 2,747 20 Aegean Tiffany Piraeus DH / Vessel 2004 2,747 21 Aegean Ace Piraeus DH / Vessel 1992 1,615 (1) Geographic deployment represents either current or planned. 30
Appendix: Newbuild Delivery Schedule (1,2,) Vessel Name Vessel Type Shipyard Size (dwt) Delivery 1 SN-223 Oceangoing Oil Tanker / Ro Ro Cargo Severnav, Romania 2,400 1q 2009 2 QHS 221 Bunkering Tanker Hyundai, China 5,500 1q 2009 3 QHS 207 Bunkering Tanker Hyundai, China 5,500 2q 2009 4 QHS 208 Bunkering Tanker Hyundai, China 5,500 2q 2009 5 QHS 209 Bunkering Tanker Hyundai, China 5,500 3q 2009 6 QHS 210 Bunkering Tanker Hyundai, China 5,500 3q 2009 7 QHS 215 Bunkering Tanker Hyundai, China 5,500 3q 2009 8 QHS 216 Bunkering Tanker Hyundai, China 5,500 3q 2009 9 QHS 217 Bunkering Tanker Hyundai, China 5,500 4q 2009 10 QHS 222 Bunkering Tanker Hyundai, China 5,500 4q 2009 11 QHS 223 Bunkering Tanker Hyundai, China 5,500 4q 2009 12 QHS 224 Bunkering Tanker Hyundai, China 5,500 4q 2009 13 DN-3500-11 Bunkering Tanker Fujian, China 4,600 4q 2009 14 DN-3500-12 Bunkering Tanker Fujian, China 4,600 4q 2009 15 QHS 225 Bunkering Tanker Hyundai, China 5,500 1q 2010 16 DN-3500-13 Bunkering Tanker Fujian, China 4,600 1q 2010 17 QHS 226 Bunkering Tanker Hyundai, China 5,500 1q 2010 18 DN-3500-14 Bunkering Tanker Fujian, China 4,600 1q 2010 19 DN-3500-15 Bunkering Tanker Fujian, China 4,600 1q 2010 20 QHS 227 Bunkering Tanker Hyundai, China 5,500 2q 2010 21 QHS 228 Bunkering Tanker Hyundai, China 5,500 2q 2010 (1) Delivery schedule as per most recent shipyards reports. (2) Aegean owns options to purchase 2+2 2,400dwt oceangoing specialized tankers / roro cargo from Severnav Shipyard- not included in the schedule above. 31