Belships

Investor Presentation • Nov 14, 2024

COMPANY PRESENTATION | Q3 NOVEMBER 2024

Investment Case

Stable demand side, commodity driven and correlated with GDP

Reduced Yard capacity, limited availability before 2027

Uncertainty on design and fuel

Modern and uniform fleet, versatile segment

30x Ultramaxes on the water

12x Newbuildings under construction

OPPORTUNITY VEHICLE COMPETITIVE ADVANTAGE

All growth financed without equity Fixed interest rates, unique optionality Lower risk to new regulations Higher leverage, lower costs

Highlights – Q3 2024

SOLID RESULT AND DIVIDEND AMIDST INCREASED MARKET UNCERTAINTY

	USD 153.6m	USD 564.3m
▪ Uniform fleet of 42x Ultramax vessels including 12x newbuildings	Cash and Cash Equivalents	Interest Bearing Debt
Cash breakeven for 2024 of about USD 10 900 per day per vessel ▪
▪ 37 per cent of ship days in the next four quarters are fixed at USD 16 200 gross per day
80 per cent of ship days in Q4 2024 are fixed at USD 16 200 gross per day ▪		extraordinary)
▪ TCE of USD 16 724 gross per day for owned fleet	USD 19.3m	NOK 1.50 per share (ordinary plus
▪ First newbuilding BELGRACE was delivered in September and entered a contract of about 18 months at USD 16 500 gross per day	Net Result	Dividend
Sold two debt-free Supramax vessels (2016-built) for a total of USD 56.6m with a book ▪ gain of USD 6.5m
▪ Declared dividend of NOK 0.50 per share, in addition to the extraordinary dividend of NOK 1.00 per share paid in October	USD 16 724 per day	USD 27.0m
▪ Net result of USD 19.3m
▪ EBITDA of USD 27.0m including USD 1.5m from Norwegian Bulk Carriers	Average TCE	EBITDA

Proven Track Record

Listed on the Oslo Stock Exchange

GROWTH

Modernised and increased the fleet from seven to 42x ships

REGULATION READY

The newest fleet of Ultramax vessels with a further 12x vessels under construction

GOVERNANCE

Norwegian-based corporate structure which protects shareholder rights and promotes transparency

STRATEGIC DIVESTMENTS

Simplified and renewed operating business and outsourced technical management

CREATING VALUE

Dividends and share appreciation resulting in the highest total return of all listed dry bulk companies*

Simplified and Transparent

Dry Bulk Operator

30x Vessels on the water.....

JAPANESE LEASE

21x Vessels

Fixed interest rates, zero covenants With purchase options, no obligations

Lease durations until 2027-2034

Average cost of debt 5.2 per cent, all-in

BANK FINANCE

7x Vessels*

Margin 195 bps

Maturity in 2029

USD 100m undrawn capacity

DEBT FREE

2x Vessels

BELSOUTH (2015)

BELINDA (2016)

* Includes new vessel BELSAKURA, will be delivered in Q1 2025 and intended financed by bank debt

......and 12x Newbuildings coming in 2025-2028

	DELIVERIES	INVESTMENT HIGHLIGTS
Q4 2025	Q3 2027	Japanese-design 64 000 dwt Ultramax represents the highest quality and efficiency available today
Q4 2025	Q3 2027
Q2 2026	Q3 2027	Japanese lease financing with fixed interest and operating costs
Q4 2026	Q1 2028	100% leverage – No cash invested
Q4 2026	Q3 2028	Periods up to a maximum of 7 to 10 years from delivery
Q1 2027	Q3 2028	Purchase options during the charter, all in USD
		No obligation to acquire any of the vessels
		A levered bet on a historically low order book

No cash invested, zero impact on dividend capacity during construction

Profitable Levels – Weaker Sentiment

Ultramax Spot Market

Source: Baltic Exchange – basis 4 Nov 24

Ultramax Spot is based on the Baltic index for Ultramax vessels (BSI-63).

Ultramax – Superior Risk/Reward

Average earnings per day last 7 years

Supramax: BSI63, Kamsarmax: BPI82, Capesize: BCI 5TC sourced: Baltic Exchange as of Nov 2024

Historically Low Supply Side

Built	No.	M. DWT
Pre-2000	187	9.46
2000-2004	346	17.69
2005-2009	602	33.11
2010-2014	1,463	83.09
2015-2019	851	52.11
2020-2024	664	40.70
Total	4,113	236.16

Lower Fleet Growth

The order book is about 10 per cent of the sailing fleet

Current rate of fleet growth is about 4 per cent per annum

Only 1/3 of the existing fleet are modern ECO type Ultramax vessels

There is not available shipyard capacity to renew or the change the fleet within the next decade

Highly Profitable Contract Coverage

2024 Cash break even of USD 10 900 per day per vessel

Payouts Since Dividend Policy Q2 2021

Creating value and returning it to shareholders

* Includes an Extraordinary Dividend Payment of 1.25 NOK per share paid May 2022

** Includes an Extraordinary Dividend Payment of 1.00 NOK per share paid October 2024

Solid Platform: Renewed and Simplified

The Newest Ultramax Fleet

No need for modernisation

Low Cost, Long Duration Financing

Fixed interest rates, unique optionality

Market Dynamics

Stable demand, historically low supply-side

Dividend Visibility

Contract coverage and high cash position

Value

Discount to Net Asset Values and favourable risk/reward

Important Information

This presentation has been prepared by Belships ASA (the "Company") exclusively for information purposes. This presentation is confidential and may not be copied, distributed, reproduced, published or passed on, directly or indirectly, in whole or in part, or disclosed by any recipient, to any other person (whether within or outside such person's organisation or firm) or published in whole or in part, by any medium or in any form for any purpose or under any circumstances.

The information in this presentation speaks as of 13 November 2024 and the Company assumes no obligation to amend, correct or update the information in this presentation. None of the Company or any of their respective directors, officers, employees, agents, affiliates, advisors or any person acting on their behalf, shall have any liability whatsoever, (whether direct or indirect, in contract, tort or otherwise) for any loss whatsoever arising from any use of this presentation, or otherwise arising in connection with this presentation.

The contents of this presentation shall not be construed as legal, business or tax advice, and the furnishing of this presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisers. Prospective investors should consult its own legal, business or tax advisor as to legal, business or tax advice.

This presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forwardlooking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or subsidiaries or any such person's directors, officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecasted developments.

This presentation has been prepared for information purposes only, and does not constitute or form part of, and should not be construed as, any offer, invitation or recommendation to purchase, sell or subscribe for any securities in any jurisdiction and neither the issue of the information nor anything contained herein shall form the basis of or be relied upon in connection with, or act as an inducement to enter into, any investment activity.

This presentation is subject to Norwegian law and any dispute arising in respect of this presentation is subject to the exclusive jurisdiction of Norwegian courts with Oslo district court as legal venue.

Consolidated Statement of Income and Financial Position

	Q3	Q3	YTD Q3	YTD Q3
USD 1 000	2024	2023	2024	2023	2023
Gross freight revenue Note	86 058	145 473	239 340	293 337	563 441
Voyage expenses	-18 737	-30 898	-57 848	-67 666	-139 085
Net freight revenue 2	67 321	114 575	181 492	225 671	424 356
Management fees	1 380	624	1 507	1 155	3 408
Operating income 2	68 701	89 857	251 699	316 683	427 764
Share of result from j/v and assoc. comp.	0	1 007	2 206	5 816	6 407
T/C hire expenses	-25 124	-36 215	-112 000	-144 078	-194 155
Ship operating expenses	-14 718	-15 714	-44 484	-44 810	-60 865
Operating expenses management companies	-983	-4 583	-5 536	-12 596	-16 306
General and administrative expenses	-916	-1 371	-4 299	-4 211	-5 233
Operating expenses	-41 741	-56 876	-164 114	-199 879	-270 152
EBITDA	26 960	32 981	87 586	116 804	157 612
Depreciation and amortisation 3	-8 926	-10 640	-29 625	-33 242	-45 738
Gain on sale of ships 3	6 537	316	6 537	316	316
Gain on sale of subsidiary 6	0	0	5 951	0	0
Other gains/(-losses)	-926	-326	262	431	350
Operating result (EBIT)	23 646	22 331	70 711	84 310	112 539
Interest income	2 595	868	4 786	1 839	2 527
Interest expenses	-7 652	-8 375	-22 525	-25 398	-33 184
Other financial items	-669	1 022	-2 134	840	2 065
Currency gains/(-losses)	-41	-512	-242	-1 202	1 049
Net financial items	-5 767	-6 998	-20 115	-23 922	-27 543
Result before taxes	17 879	15 333	50 596	60 388	84 996
Taxes	1 445	-1 480	3 279	-5 589	-7 562
Net result from continuing operations	19 324	13 853	53 875	54 799	77 434
Result from discontinuing operation 5	0	0	0	8 806	8 806
Net result for the period	19 324	13 853	53 875	63 605	86 240
Hereof majority interests	18 801	13 599	50 447	57 733	75 895
Hereof non-controlling interests	523	254	3 428	5 872	10 346
Earnings per share for continuing operations	0.08	0.05	0.21	0.22	0.31
Diluted earnings per share for continuing operations	0.08	0.05	0.21	0.22	0.30
Earnings per share	0.08	0.05	0.21	0.25	0.34
Diluted earnings per share	0.08	0.05	0.21	0.25	0.34

Consolidated statement of income Consolidated statement of financial position

		30 Sep	30 Sep	31 Dec
USD 1 000		2024	2023	2023
NON-CURRENT ASSETS	Note
Ships	3	687 069	723 305	731 596
Property, Plant and Equipment		345	972	883
Investments in j/v and assoc. companies		0	9 006	9 934
Other non-current assets		470	1 082	2 956
Total non-current assets		687 883	734 365	745 370
CURRENT ASSETS
Bunker inventory		8 835	9 938	8 556
Other current assets		27 860	45 044	50 662
Cash and cash equivalents		153 604	138 934	128 276
Total current assets		190 299	193 915	187 495
Total assets		878 182	928 281	932 864
EQUITY AND LIABILITIES
Equity
Paid-in capital		132 575	141 416	141 736
Retained earnings		147 570	121 864	128 935
Non-controlling interests		9 095	29 577	34 890
Total equity		289 241	292 858	305 561
NON-CURRENT LIABILITIES
Deferred tax		3 301	5 285	6 537
Long-term interest-bearing debt	4	514 240	537 889	536 668
Other non-current liabilities		182	828	954
Total non-current liabilities		517 723	544 001	544 160
CURRENT LIABILITIES
Current portion of interest-bearing debt	4	50 027	27 512	26 735
Other current liabilities		21 191	63 909	56 409
Total current liabilities		71 218	91 422	83 144
Total equity and liabilities		878 182	928 281	932 864

Uniform and Modern Fleet of 42x Bulk Carriers

Vessel	Built	DWT	Yard	Vessel	Built	DWT	Yard
BELFRIEND	2028	64 000	Imabari	BELMAR	2021	64 000	Imabari
BELOCEAN	2028	64 000	Imabari	BELFAST	2021	64 000	Imabari
BELNOR*	2028	64 000	Imabari	BELAJA	2020	61 000	Shin Kurushima
BELVICTORY	2027	64 000	Imabari	BELMOIRA	2020	61 000	Shin Kurushima
BELCARGO	2027	64 000	Nacks	BELFUJI	2020	63 000	Imabari
BELSTAR	2027	64 000	Imabari	BELNIKE	2020	63 000	Imabari
BELROSSO	2027	64 000	Imabari	BELTANGO*	2020	64 000	Mitsui
BELTEMPO	2026	64 000	Imabari	BELFORTE*	2019	64 000	Mitsui
BELAVANTI	2026	64 000	Imabari	BELRAY	2019	61 000	Shin Kurushima
BELFUTURE	2026	64 000	Imabari	BELNIPPON	2018	63 000	Imabari
BELFOX*	2025	64 000	Imabari	BELAFONTE	2017	63 000	Imabari
BELFORTUNE	2025	64 000	Imabari	BELHAVEN	2017	63 000	Imabari
BELGRACE	2024	64 000	Imabari	BELTIGER	2017	63 000	New Times
TBN BELSAKURA**	2024	64 000	Imabari	BELISLAND	2016	61 000	Imabari
BELMONDO	2023	64 000	Imabari	BELINDA	2016	63 000	Hantong
BELYAMATO	2022	64 000	Imabari	BELMONT	2016	63 000	Hantong
BELTOKYO	2021	64 000	Imabari	BELATLANTIC	2016	63 000	Hantong
BELFORCE	2021	61 000	Dacks	BELLIGHT	2016	63 000	New Times
BELKNIGHT	2021	61 000	Dacks	BELFOREST	2015	61 000	Imabari
BELTRADER	2021	61 000	Dacks	BELHAWK	2015	61 000	Imabari
BELGUARDIAN	2021	61 000	Dacks	BELSOUTH	2015	63 000	Hantong