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EARNINGS CONFERENCE CALL
Second Quarter Ended
June 30, 2011
www.box-ships.com2
Disclosures and Forward Looking Statements
This presentation contains certain statements that may be deemed to be “forward-looking
statements” within the meaning of the Securities Act. All statements, other than statements of
historical facts, that address activities, events or developments that the Company expects, projects,
believes or anticipates will or may occur in the future, including, without limitation, the outlook for fleet
utilization and shipping rates, general industry conditions including bidding activity, future operating
results of the Company‟s vessels, capital expenditures, asset sales, expansion and growth
opportunities, bank borrowings, financing activities and other such matters, are forward-looking
statements. Although the Company believes that its expectations stated in this presentation are based
on reasonable assumptions, actual results may differ from those projected in the forward-looking
statements. Important factors that, in our view, could cause actual results to differ materially from
those discussed in the forward-looking statements include the strength of the world economies and
currencies, general market conditions, including changes in charter hire rates and vessel values,
changes in demand that may affect attitudes of time charterers to scheduled and unscheduled
drydockings, changes in our vessel operating expenses, including drydocking, crewing and insurance
costs, or actions taken by regulatory authorities, ability of our counterparties to perform these
obligations under sales agreements and charter contracts on a timely basis, potential liability from
future litigation, domestic and international political conditions, potential disruption of shipping routes
due to accidents and political events or acts by terrorists. Risks and uncertainties are further
described in reports filed by Box Ships Inc. with the Securities and Exchange Commission.
www.box-ships.com3
Agenda
2Q 2011 Financial Highlights
Company Update
Industry Overview
Financial Update
Investment Summary
www.box-ships.com4
Second Quarter 2011 – Financial Highlights
2nd Quarter
2011
Average No. of Vessels 3.79
No. of Vessels at the end of the quarter 6
Average Daily TCE Rate $ 23,828
Time Charter Revenues $ 7,225,829
EBITDA $ 4,585,185
Net Income $ 2,258,970
EPS $ 0.16
DPS $ 0.15
Weighted average shares outstanding 14,072,494
Shares outstanding on record 16,108,000
www.box-ships.com5
…and Delivered
All six vessels delivered ahead of schedule
Acquired the MSC Emma
Actual Fleet Calendar Days = 296
Average of $5,294
100% Utilization Rate
33 Months Average Remaining Term
53% Net Debt to Total Capitalization
Declared a dividend of $0.15 for 2Q and
expect dividend of $0.30 next quarter
We Delivered On Our IPO Promises
We Promised…
Acquire the Initial Fleet
Acquire Additional Vessels
Est. 2Q Fleet Calendar Days = 165
Est. Vessel OpEx of $5,320 per day
Efficient Operations
Charter Visibility
Maintain Strong Balance Sheet
High Dividend Yield
www.box-ships.com
Company Overview
www.box-ships.com7
Vessel Name TypeCapacity
(TEU)
Sister
Vessel
Year
BuiltDelivered Shipyard
Refrigerated
Capacity
(TEU)
Slow
Steaming
Capabilities
Box Trader Panamax 3,426 A 2010 29-Apr-11HDW
(Germany)500
Box Voyager Panamax 3,426 A 2010 29-Apr-11HDW
(Germany)500
MaulePost-
Panamax6,589 – 2010 9-May-11
CSBC
(Taiwan)1,160
MSC Siena Panamax 4,546 – 2006 19-May-11
Stocznia
Gdynia
(Poland)
700
CMA CGM Kingfish Panamax 5,095 B 2007 19-May-11Hyundai
(S. Korea)330
CMA CGM Marlin Panamax 5,095 B 2007 31-May-11Hyundai
(S. Korea)330
MSC Emma Panamax 5,060 – 2004 3-Aug-11Hanjin
(S. Korea)300
Total 33,237 3,820
Young, High Specification Quality Fleet
Average age of fleet – 3.6 years
www.box-ships.com8
VesselCapacity
(TEU)Charterer
Charter Rate
($/Day)
Remaining
T/C Term
Box Trader 3,426 20,000 12 months
Box Voyager 3,426 20,000 12 months
CMA CGM Kingfish 5,095 23,000 33 months
CMA CGM Marlin 5,095 23,000 33 months
MSC Emma 5,060 28,500 36 months1
MSC Siena 4,546 28,000 30 months2
Maule 6,589 38,000 57 months3
2017 20182011 2012 2013 2014 2015 2016
Charters Support Sustainable Dividend with Upside Potential
Charter Overview
Notes:
1 Charterer has option to extend term of charter for one additional, one-year term at the same gross daily charter rate ($28,500)
2 Charterer has option to extend term of charter for four additional, one-year terms at the same gross daily charter rate ($28,000)
3 Charterer has option to purchase the vessel upon expiration of the charter for $57mm (less 0.5% purchase commission)
4 Based on the latest redelivery dates
Aug-12
Aug-12
Apr-14
May-14
Jan-14
May-16
Jan-18
Base Charter Period Option Period
Aug-14 Aug-15
Our current TEU-weighted time charter average duration is 33 months
2011 2012 2013
Fixed Revenue Days4 100% 93% 71%
www.box-ships.com9
Latest Fleet Developments - MSC Emma Acquisition
Sources and uses (in millions)
Fleet Free Cash Flow Per Day(1.,2)
Sources: Uses:
CMA CGM Kingfish/Marlin Facility $ 44 ΜSC Emma Acquisition Price $ 55
MSC Emma Facility $ 30 Partial Repayment of PRGN Facility $ 15
Working capital $ 4
Total $ 74 Total $ 74
6 Vessels 7 Vessels %Δ
Net Revenues $ 147,287 $ 174,797 19%
TVOE $ 44,537 $ 50,838
EBITDA $ 102,750 $ 123,959 21%
Debt Service $ 50,674 $ 67,924
Free Cash Flow $ 52,076 $ 56,035 8%
No additional equity required
MSC Emma to produce an additional $1.4 million in free cash flow per annum (1)
1 Please see appendix for assumptions used in calculations
2 For fleet cash flow per day calculations, we used the fourth quarter of 2011 estimates, which is the first full quarter with the MSC Emma.
www.box-ships.com10
3.63
4.42 4.42 4.42 4.42 4.42
0
1
2
3
4
5
6
7
8
9
10
100
120
140
160
180
200
220
2Q11 Today 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
Debt Outstanding Scheduled Loan Repayments
$25.8 million of scheduled debt repayments through the end of 2012
Our dividend payments are after debt repayments
Moderate Leverage
Leverage Ratio 1 Scheduled Loan Repayments (USD Million)
Cash $ 16 m
Book Equity (as of June 30, 2011) $ 179 m
Box Trader/Box Voyager/Maule Facility $ 100 m
CMA CGM Kingfish/Marlin Facility $ 44 m
MSC Emma Facility $ 30 m
MSC Siena Facility $ 30 m
Paragon Facility $ 15 m
Total Debt $ 219 m
Net Debt $ 203 m
Total Capitalization $ 382 m
Net Debt/Total Capitalization 53%
Notes:
1 As of August 5th, 2011
$160.0 m
$193.5 m
$219.3 m
www.box-ships.com
Industry Overview
www.box-ships.com12
Signs of Recovery from Historical Lows
Secondhand Vessel Prices – 3,500 TEU (5 yr) 1 Year Time Charter Rate – 3,500 TEU
Source: Clarkson‟s Shipping Intelligence – July 2011
0
10,000
20,000
30,000
40,000
50,0001 Year TC Rate
Average since 2000
0
10
20
30
40
50
60
705 Year Old Secondhand Price
Average since 2000
US
D M
illio
n
US
D
Well positioned to exploit the upside potential of the industry
www.box-ships.com13
Developments in Trade Patterns (in Million TEU)
Source: Maersk Broker Research
USA-Asia
Asia-USA
2011: 13.0
2016: 20.8
2011: 8.6
2016: 16.9
Europe-USA
USA - Europe
2011: 1.6
2016: 2.4
2011: 2.5
2016: 4.0
Europe-Asia
2011: 7.7
2016: 15.5
2011: 13.1
2016: 21.8
Intra-Asia
2011: 27.8
2016: 49.5
Asia-Europe
YearTEU Transports
in Million TEU
TEU Transports
Est. Growth
Tonnage
Demand Growth
2011 117.4 10.8% 15.6%
2012 130.5 11.2% 11.6%
2013 145.0 11.1% 12.0%
2014 161.3 11.3% 10.8%
2015 179.8 11.5% 10.9%
2016 200.8 11.7% 11.1%
www.box-ships.com14
Supply Side - Orderbook is at Low Levels
The Containership Orderbook stands at 30% of the current fleet, which remains low
70% of the current Orderbook is in sizes above 8,000 TEU
0%
10%
20%
30%
40%
50%
60%
70%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Global Fleet Orderbook Orderbook as a % of Global Fleet
Orderbook Current Fleet vs Orderbook
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Remaining
2011
2012 2013 2014 2015
100-999 1,000-2,999 3,000-7,999 8,000+
„00
0 T
EU
„00
0 T
EU
Source: Clarkson‟s Shipping Intelligence – July 2011
www.box-ships.com15
Fleet Growth vs Projected Demand for Tonnage
15.6%
11.6% 12.0%
10.8% 10.9%
10.1%
8.8%8.3% 8.0%
7.1%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
2011 2012 2013 2014 2015
Additional Capacity Required
Fleet Growth
Tonnage
Demand Growth
Source: Maersk Broker Research
Projections reveal tonnage demand to exceed fleet growth
Y-o
-Y G
row
th
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Financial Overview
www.box-ships.com17
Operating Performance 2Q11
Second Quarter Ended
June 30, 2011
Fleet Data
Average number of vessels 3.79
Available days for f leet 296
Calendar days for f leet 296
Fleet util ization 100%
Average Daily
Results
Time Charter Equivalent $ 7,053,017 23,828 % of TCE
Vessel operating expenses 1,567,032 5,294 22.22%
Management fees 265,214 896 3.76%
G&A expenses 634,468 2,143 9.00%
Total Vessel Operating Expenses (TVOE) $ 2,466,714 8,333 34.97%
Other expenses 1,118 4 0.02%
EBITDA $ 4,585,185 $ 15,490 65.01%
Loan interest 830,079 2,804 11.77%
Loan repayments 0 0 0.00%
Free Cash F low $ 3,755,106 12,686 53.24%
www.box-ships.com18
0.0
1.5
3.0
4.5
6.0
7.5
9.0
10.5
12.0
13.5
15.0
16.5
18.0
19.5
3Q11E 4Q11E 2012E
Free Cash Flow During Period(1)
Fleet-wide Per Day Projections
7,402 7,399 7,529
2,563 2,703 2,956
5,943 6,871 6,909
8,921 7,998 7,741
0
5,000
10,000
15,000
20,000
25,000
30,000
3Q11E 4Q11E 2012E
Breakdown of Average Daily Rates(1)
TVOE Interest Expense Debt Repayments Free Cash Flow
With strong charter coverage, we expect little fluctuations in our free cash flow
We expect to declare a dividend of $0.30 per share starting with the third quarter
$24,829 $24,971 $25,135
1 Please see appendix for assumptions used in calculations
US
D P
er
Da
y
US
D M
illio
n
Dividend
www.box-ships.com19
Key Take-Aways
Well-positioned in the mid-size segment, with strong industry
fundamentals
Young, high-quality fleet with an average age of 3.6 years
Visible revenues with 100% and 93% fixed for 2011 and 2012,
respectively, and an average charter life of 33 months
Moderate leverage of 53%
Free cash flows after debt repayments support attractive
dividend of $0.15 this quarter and $0.30 thereafter
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Appendix
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Focused on the Work Horses
Class Cargo Capacity
(TEU) Typical Cargo Routes
Total # of Vessels
Total TEU (000) % of Fleet by
TEU
Very Large 10,000+ Consumer goods
Industrial products
Intermediate and finished
goods
East-West 68 861 6
Large 8,000–9,999 Consumer goods
Industrial products
Intermediate and finished
goods
East-West 244 2,088 15
Post-Panamax
5,000–7,999 Consumer goods
Industrial products
Intermediate and finished
goods
Deep sea
East-West trade
routes
521 3,113 22
Panamax 3,000 – 4,999 Consumer goods
Industrial products
Intermediate and finished
goods
Deep sea
East-West trade
routes
916 3,734 27
Sub-Panamax 2,000 – 2,999 Consumer goods
Industrial products
Intermediate and finished
goods
Intermediate 714 1,809 13
Handy
1,000 – 1,999 Consumer goods
Industrial products
Intermediate and finished
goods
Intermediate 1,214 1,744 12
Feeder 100 – 999 Consumer goods
Industrial products
Intermediate and finished
goods
Intra-regional 1,079 647 5
Source: Drewry
www.box-ships.com22
Income Statement 2Q11
000's (except for share and per share data) 3 Months Ended
June 30, 2011
Revenue
Time charter revenue $7,226
Less: Commisssions 162
Net Revenue 7,064
Expenses
Voyage expenses 11
Vessel operating expenses 1,567
Management fees 265
Depreciation 1,496
General & administrative expenses 634
Total Operating Expenses 3,974
Operating Income 3,090
Other Income / (Expense)
Interest and finance costs (831)
Interest income 1
Foreign currency loss (1)
Total Other Expenses, net (831)
$2,259
14,072,494
$0.16
Net Income
Weighted average number of shares
Earnings per Common Share
www.box-ships.com23
Balance Sheet
(US$ 000's) June 30,
2011
Cash 10,803
Current assets, excluding cash 3,235
Fixed assets, net 321,602
Other long term assets 10,924
TOTAL ASSETS 346,564
Current liabilities, excluding short-term debt 3,984
Current portion of long-term debt 10,700
Long-term debt 149,300
Long-term liabilities 3,911
TOTAL LIABILITIES 167,895
Stockholders'equity 178,669
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 346,564
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Assumptions used in our projections
Revenues
Contracted periods run until earliest charter redelivery dates.
Current scenario assumes re-chartering of vessels at 15-year historical avererage
rate (for 3,500 TEU containerships that rate is $23,400 per day).
99% utilization rate is used in calculations, exluding scheduled off-hire.
Dry-dock off-hire scheduled for 15 days every five years for all vessels, and
assumes a cost of $500,000 per drydocking.
Operating Expenses
Operating expenses as per company’s 2011 budget, increasing by 2% in 2012.
Interest Expenses
Interest expense calculated based on forward US$ LIBOR curve as of June 30,
2011 (3Q11: 0.25%, 4Q11: 0.35%, 2012: 0.84%).
