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GASLOG LTD Third Quarter Earnings Presenta7on 2012 21 November 2012
Forward Looking Statements This presenta6on contains “forward-‐looking statements” as deﬁned in the Private Securi6es Li6ga6on Reform Act of 1995. The reader is cau6oned not to rely on these forward-‐looking statements. These statements are based on current expecta6ons of future events. If underlying assump6ons prove inaccurate or unknown risks or uncertain6es materialize, actual results could vary materially from our expecta6ons and projec6ons. Risks and uncertain6es include, but are not limited to, general LNG and LNG shipping market condi6ons and trends, including charter rates, ship values, factors aﬀec6ng supply and demand and opportuni6es for the proﬁtable opera6ons of LNG carriers; our con6nued ability to enter into mul6-‐year 6me charters with our customers; our contracted charter revenue; our customers’ performance of their obliga6ons under our 6me charters and other contracts; the eﬀect of the worldwide economic slowdown; future opera6ng or ﬁnancial results and future revenue and expenses; our future ﬁnancial condi6on and liquidity; our ability to obtain ﬁnancing to fund capital expenditures, acquisi6ons and other corporate ac6vi6es, and funding by banks of their ﬁnancial commitments; future, pending or recent acquisi6ons of ships or other assets, business strategy, areas of possible expansion and expected capital spending or opera6ng expenses; our ability to enter into shipbuilding contracts for newbuilding ships and our expecta6ons about the availability of exis6ng LNG carriers to purchase, as well as our ability to consummate any such acquisi6ons; our expecta6ons about the 6me that it may take to construct and deliver newbuilding ships and the useful lives of our ships; number of oﬀ-‐hire days, drydocking requirements and insurance costs; our an6cipated general and administra6ve expenses; ﬂuctua6ons in currencies and interest rates; our ability to maintain long-‐term rela6onships with major energy companies; expira6on dates and extensions of charters; our ability to maximize the use of our ships, including the re-‐employment or disposal of ships no longer under mul6-‐year charter commitments; environmental and regulatory condi6ons, including changes in laws and regula6ons or ac6ons taken by regulatory authori6es; risks inherent in ship opera6on, including the discharge of pollutants; availability of skilled labor, ship crews and management; poten6al disrup6on of shipping routes due to accidents, poli6cal events, piracy or acts by terrorists; and poten6al liability from future li6ga6on. A further list and descrip6on of these risks, uncertain6es and other factors can be found in our Prospectus ﬁled April 2, 2012. Copies of the Prospectus, as well as subsequent ﬁlings, are available online at www.sec.gov or on request from us. We do not undertake to update any forward-‐looking statements as a result of new informa6on or future events or developments. The declara6on and payment of dividends is at all 6mes subject to the discre6on of our Board of Directors and will depend on, among other things, our earnings, ﬁnancial condi6on, cash requirements and availability, restric6ons in our credit facili6es and the provisions of Bermuda law and such other factors as the Board of Directors may deem advisable. 2
Highlights • For the third quarter, GasLog reports Adjusted EBITDA* of $9.7 million, Adjusted Proﬁt* of $4.0 million and Proﬁt of $2.9 million. • Adjusted EPS* of $0.06 and EPS of $0.05 for the third quarter of 2012. • Quarterly dividend of $0.11 per common share is payable on December 17, 2012. • Con6nued strong fundamentals for the LNG industry. • 100% u6liza6on of GasLog Savannah & GasLog Singapore during Q3-‐2012. • The 8 LNG newbuildings are on schedule and within budget. • 62% of the ﬂoa6ng interest rate exposure on our fully funded debt program has been hedged at a weighted average interest rate of approximately 4.3% (incl. margin) as of September 30, 2012. * See Annex 1 for reconcilia6on of Adjusted EBITDA, Adjusted Proﬁt and Adjusted EPS 4
Financial Highlights 9 months 3 months (USD%000) Q3%2012% Q3%2011 Q3%2012% Q3%2011 2011 2010 Revenues 50,244 48,675 16,935 15,918 66,471 39,832 1 EBITDA 19,238 30,576 8,624 10,028 36,139 21,076 Adjusted%EBITDA 1 26,389 30,770 9,745 10,271 Share%of%Profit%of%Associate 761 1,019 3 362 1,312 1,460 Net%Financials% 2 ,14,915 ,7,139 ,4,158 ,2,482 ,12,314 ,4,925 Profit% 1,543 14,057 2,924 4,572 13,723 9,591 Adjusted%Profit% 1 8,694 14,251 4,045 4,814 EPS,%diluted%($/share) 0.03 0.37 0.05 0.12 0.36 0.25 1 Adjusted%EPS,%diluted%($/share) 0.16 0.37 0.06 0.12 Average%Number%of%Vessels: Owned 2.00 2.00 2.00 2.00 2.00 1.00 Managed 14.0 14.0 14.0 14.0 14.0 10.3 Ownership%Segment: Time%Charter%Equivalent%rates%pr.%day% 76,885 76,205 76,886 76,511 76,378 76,086 ($/day) Utilisation 100% 100% 100% 100% 100% 100%1. See Annex 1 for reconcilia6on of EBITDA, Adjusted EBITDA, Adjusted Net Proﬁt and Adjusted EPS. In 2012, Adjusted EBITDA, Adjusted Net Proﬁt and Adjusted EPS, exclude the non-‐cash loss caused primarily from mark-‐to-‐market valua6on of interest rate swaps ($7.0 million for the 9 months and $1.7 million for the 3 months) and foreign exchange diﬀerences ($0.2 million loss for the 9 months and $0.6 million gain for the 3 months). 2. 5 Net Financials represents ﬁnancial costs, ﬁnancial income, and loss on interest rate swaps, net.
Financial Highlights The following table summarizes GasLog’s contracted revenues and vessel u6liza6on as of October 1, 2012, within the Vessel Ownership segment. 2012 2013 2014 2015 2016( Total 2021 Contracted*time*charter*revenues 1 (USD%million) *****************14* 2 ********133* ********215* ***********211* ********622* ****1,195* Total*contracted*days (days) 184 1,742 2,831 2,768 7,945 15,470 Total*available*days (days) 184 1,742 2,832 3,532 19,303 27,593 Total*unfixed*days (days) B B 1 764 11,358 12,123 Percentage*of*total*contracted*days/total* (pct.) 100% 100% 100% 78% 41% 56% available*days*for*the*ten*ships Please refer to the Q3-‐2012 6-‐K ﬁling for further details. 1 Revenue calcula6ons assume 365 revenue days per annum, with 30 oﬀ-‐hire days when the ship undergoes scheduled drydocking. Two of our ships are scheduled to be drydocked in 2015, three are scheduled to be drydocked in 2018 and one is scheduled to be drydocked in 2019. 2 Contracted revenue for the full year ending December 31, 2012 is $ 56 million. 8
Financial Highlights Expected Loan Drawdown Ship Built Bank (USD millions) Date Maturity Hedged pct. 3 GasLog Savannah 2010 DSF $149¹ N/A 2020 100% GasLog Singapore 2010 DnB, NBG, UBS $114¹ N/A 2014 Hull 1946 2013 DnB, KEXIM $136 Q1 2013 20252 70.6% Hull 1947 2013 DnB, KEXIM $136 Q1 2013 20252 70.6% Hull 2016 2013 Nordea, ABN, Citi $139 Q2 2013 2019 98.7% Hull 2017 2013 Nordea, ABN, Citi $139 Q3 2013 2019 Hull 2041 2013 Credit Suisse $144 Q4 2013 2020 75.0% Hull 2042 2014 DnB, SEB, CBA, ING, DSF $143 Q1 2014 2021 / 2022 32.9% Hull 2043 2014 DnB, SEB, CBA, ING, DSF $146 Q4 2014 2021 / 2022 In total ~62% covered at 4.30% all-in fixed Hull 2044 2015 DnB, SEB, CBA, ING, DSF $146 Q1 2015 2021 / 2022 interest1. Outstanding Balance as of September 30, 2012.2. Lenders have a put option that gives them the right to request repayment of the facility in full on the fifth anniversary of the delivery of the first ship serving as collateral under the facility.3. Represents the portion of the loan bearing interest at a floating rate that has been hedged to a fixed rate by way of an interest rate swap. Please refer to note 13 of the financial statements included in our Q3-2012 6-K filing for details surrounding the Interest Rate Swaps. 9
Market Update LNG shipping con6nued to beneﬁt from strong industry fundamentals. Spot rates somened in Q3-‐2012, but remain at historically high levels; suppor6ng op6mism for longer-‐term forward-‐rates. We expect LNG produc6on to increase. Developments in Q3-‐2012 include: • Cheniere Energy took ﬁnal investment decision (“FID”) on the construc6on of the ﬁrst two trains at its Sabine Pass, Louisiana, LNG export project, for a planned start-‐up as early as 2015. • Australia Paciﬁc LNG (led by ConocoPhilips and Origin Energy) (Australia) took FID on a 2nd train of 4.5 mtpa capacity, for a planned start-‐up in 2016. • Further increases in discoveries and gas reserves in East Africa. 11
Market Update (cont.) 500# Projected#Global#LNG#Produc?on#Capacity# 450# South#East#Asia# 400# Middle#East# North#America# LNG#(mtpa)# 350# Africa# Russia# 300# Australia# Exis?ng# 250# 200# 2011# 2012# 2013# 2014# 2015# 2016# 2017# 2018# 2019# 2020#The aoached chart was prepared using informa6on from external sources as well as GasLogs internal es6mates. The chart is based on numerous variables and assump6ons, including assump6ons as to certain business decisions that other companies will make, and is therefore inherently specula6ve. As a result, future produc6on capacity will likely diﬀer and may diﬀer materially from the informa6on presented in the chart. GasLog will not update the chart to reﬂect circumstances exis6ng amer the date the informa6on was generated or to reﬂect the occurrence of future events. 12
Summary Q3-‐2012 ﬁnancials beoer than expecta6ons * 2012-‐2015 contracted revenue is expected to be on-‐track, with our newbuilding orderbook on 6me and on budget. GasLog is paying a quarterly dividend of $0.11 per share on December 17, 2012. Con6nued strong fundamentals for the LNG industry. GasLog’s strengths come from: • Signiﬁcant contracted revenues from credit-‐worthy counterparts. • A fully funded newbuilding program. • A young, pure-‐play LNG shipping ﬂeet with the latest technology. • A leading technical plaqorm delivering strong opera6onal performance. * Excluding non-‐cash loss on interest rate swaps and foreign exchange gains (mainly unrealized). 13
Annex 1 – reconcilia6on / non-‐GAAP measures Non-‐GAAP Financial Measure EBITDA represents earnings before interest income and expense, taxes, deprecia6on and amor6za6on. Adjusted EBITDA represents EBITDA before loss on interest rate swaps and foreign exchange gains/losses. Adjusted Proﬁt/(loss) and Adjusted EPS represent earnings and earnings per share, respec6vely, before loss on interest rate swaps and foreign exchange gains/losses. EBITDA, Adjusted EBITDA, Adjusted Proﬁt/(loss) and Adjusted EPS, which are non-‐GAAP ﬁnancial measures, are used as supplemental ﬁnancial measures by management and external users of ﬁnancial statements, such as investors, to assess our ﬁnancial and opera6ng performance. We believe that these non-‐GAAP ﬁnancial measures assist our management and investors by increasing the comparability of our performance from period to period. We believe that including EBITDA, Adjusted EBITDA, Adjusted Proﬁt/(loss) and Adjusted EPS assists our management and investors in (i) understanding and analyzing the results of our opera6ng and business performance, (ii) selec6ng between inves6ng in us and other investment alterna6ves and (iii) monitoring our ongoing ﬁnancial and opera6onal strength in assessing whether to con6nue to hold our common shares. This increased comparability is achieved by excluding the poten6ally disparate eﬀects between periods of, in the case of EBITDA and Adjusted EBITDA, interest, taxes, deprecia6on and amor6za6on and, and in the case of Adjusted EBITDA, Adjusted Proﬁt/(loss) and Adjusted EPS, loss on interest rate swaps and foreign exchange gains/losses, which items are aﬀected by various and possibly changing ﬁnancing methods, capital structure and historical cost basis and which items may signiﬁcantly aﬀect results of opera6ons between periods. EBITDA, Adjusted EBITDA, Adjusted Proﬁt/(loss) and Adjusted EPS have limita6ons as analy6cal tools and should not be considered as alterna6ves to, or as subs6tutes for, proﬁt, proﬁt from opera6ons, earnings per share or any other measure of ﬁnancial performance presented in accordance with IFRS. These non-‐GAAP ﬁnancial measures exclude some, but not all, items that aﬀect proﬁt, and these measures may vary among companies. In evalua6ng Adjusted EBITDA, Adjusted Proﬁt/(loss) and Adjusted EPS, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presenta6on. Our presenta6on of Adjusted EBITDA, Adjusted Proﬁt/(loss) and Adjusted EPS should not be construed as an inference that our future results will be unaﬀected by the excluded items. Therefore, the non-‐GAAP ﬁnancial measures as presented below may not be comparable to similarly 6tled measures of other companies in the shipping or other industries. 14
Annex 1 -‐ reconcilia6on (cont.) Reconciliation of EBITDA and Adjusted EBITDA to Profit for the three and nine month periods ended: (All amounts expressed in U.S. Dollars) For the three months ended For the nine months ended September 30, 2011 September 30, 2012 September 30, 2011 September 30, 2012 Profit for the period 4,571,575 2,923,994 14,056,658 1,542,931 Depreciation of fixed assets 3,206,858 3,288,480 9,612,638 9,773,311 Financial costs 2,262,006 2,892,817 6,947,506 8,846,897 Financial income (12,265) (481,265) (41,170) (925,124) EBITDA 10,028,174 8,624,026 30,575,632 19,238,015 Loss on interest rate swaps, net 232,639 1,746,781 232,639 6,993,147 Foreign exchange (gains)/losses 9,892 (625,791) (38,718) 157,644 Adjusted EBITDA 10,270,705 9,745,016 30,769,553 26,388,806 Reconciliation of EBITDA to Profit for the years ended: (All amounts expressed in U.S. Dollars) December 31, 2010 December 31, 2011 Profit for the year 9,590,852 13,722,678 Depreciation of fixed assets 6,560,381 12,827,284 Financial costs 5,046,117 9,631,262 Financial income (121,050) (41,679) EBITDA 21,076,300 36,139,545 15
Annex 1 -‐ reconcilia6on (cont.) Reconciliation of Adjusted Profit to Profit for the three and nine month periods ended: (All amounts expressed in U.S. Dollars) For the three months ended For the nine months ended September 30, 2011 September 30, 2012 September 30, 2011 September 30, 2012 Profit for the period 4,571,575 2,923,994 14,056,658 1,542,931 Loss on interest rate swaps, net 232,639 1,746,781 232,639 6,993,147 Foreign exchange (gains)/losses 9,892 (625,791) (38,718) 157,644 Adjusted Profit 4,814,106 4,044,984 14,250,579 8,693,722 Non-controlling interest — — 316,973 — Adjusted Profit attributable to owners of the Group 4,814,106 4,044,984 14,567,552 8,693,722 16
Annex 1 -‐ reconcilia6on (cont.) Reconciliation of Adjusted Earnings Per Share to Earnings Per Share for the three and nine month periods ended: (All amounts expressed in U.S. Dollars) For the three months ended For the nine months ended September 30, 2011 September 30, 2012 September 30, 2011 September 30, 2012 Profit for the period attributable to owners of the Group 4,571,575 2,923,994 14,373,631 1,542,931 Less: Earnings allocated to manager shares and subsidiary manager 379,777 — 1,242,669 22,704 shares Earnings attributable to the owners of common shares used in the 4,191,798 2,923,994 13,130,962 1,520,227 calculation of basic EPS Weighted average number of shares outstanding 35,853,200 62,863,166 35,751,628 53,820,841 EPS 0.12 0.05 0.37 0.03 Adjusted profit for the period attributable to owners of the Group 4,814,106 4,044,984 14,567,552 8,693,722 Less: Adjusted earnings allocated to manager shares and subsidiary 399,924 — 1,259,282 127,926 manager shares Adjusted earnings attributable to the owners of common shares used 4,414,182 4,044,984 13,308,270 8,565,796 in the calculation of basic EPS Weighted average number of shares outstanding 35,853,200 62,863,166 35,751,628 53,820,841 Adjusted EPS 0.12 0.06 0.37 0.16 17