COMPANY PRESENTATION | Q4 2021 FEBRUARY 2022

Belships ASA – Owner and Operator of Bulk Carriers

Highlights – Q4 2021

Earnings summary RECORD QUARTER – IMPROVED DIVIDEND AND MARKET OUTLOOK

Operating income of USD 235.2m (USD 59.9m)
EBITDA of USD 70.4m (USD 11.3m) including USD 22.9m from Lighthouse Navigation
Net result of USD 59.2m (USD 0.9m)
Declared dividend of USD 25.6m (NOK 0.90 per share)
Extraordinary dividend payment planned for Q1 2022
Net TCE of USD 28 965 per day for owned fleet
Acquired three new bulk carriers
Sold the three oldest vessels with significant gains
88 per cent of ship days in Q1 are booked at about USD 23 900 net per day. 65 per cent of ship days in the next four quarters are booked at about USD 23 000 net per day.
Modern fleet of 27 vessels with an average age of 3.7 years and daily cash breakeven for 2022 of about USD 10 000 per vessel

Subsequent events

New USD 116m loan facility replacing all existing credit facilities with two vessels being left unencumbered. The new loan has a reduced margin of 225 basis points, LTV of 55 per cent, with the first instalment in 2023 and final maturity in 2027. Lenders for the new loan facility are DNB Bank and Sparebank 1 SR-Bank.
BELLIGHT, BELFOREST and BELYAMATO refinanced on new Japanese leases. The agreements have fixed rates for about 10 years with an average cost of capital of about 4.5 per cent.

Q4 2021	Q4 2020
Average TCE	Average TCE
USD 28 965/day	USD 10 502/day
EBITDA	EBITDA
USD 70.4m	USD 11.3m
Net result	Net result
USD 59.2m	USD 0.9m

Financial position Cash and cash equivalents USD 105.2m Interest bearing debt USD 437.3m Book value Equity USD 272.9m Ships USD 580.6m Other assets USD 111.8m Other liabilities USD 87.4m Assets Equity and liabilities

Proven Ability to Execute Growth Strategy

Execution

Acquisitions Purchased 20 new ECO vessels

Divestments

Sold 9 oldest vessels in fleet

Cash Investment Net cash invested of USD -4m

Financing 75 per cent of debt on fixed interest rate leases

Added value creation

Expanded Lighthouse Navigation

Result

Uniform Fleet

27x modern ECO bulk carriers

Low cost model

Cash breakeven of USD 10 000

Dividends Paid out NOK 465m (NOK 1.85 per share) last 3 quarters

Share Liquidity Increased by more than 10x

Market Cap Increased by more than 15x

Lighthouse Navigation – Commercial Operations

Track record

Profitable every year since its inception in 2009

Performance

Average EBITDA of USD 16.0m last four quarters

Volume About 70 vessels under operation

Growth

Offices in 4 countries with 80 employees

Risk

Skin in the game - leading employees invested

Ultramax – Superior Risk/Reward

Average earnings per day - last 3 years

Ultramax: BSI58 plus 10% premium. BSI58 is BSI52 plus \$293 per day prior to 2015

Kamsarmax: BPI82 2018-2021, BPI74 plus \$1 300 day prior to 2018

Capesize: BCI 5TC 2014-2021, BCI 4TC prior to 2014

Risk (Annualised standard deviation)

Positive Outlook – Low Orderbook – Undervalued Ships

Lowest fleet growth in decades

ORDERBOOK/SUPPLY - The order book for Supra/Ultramax bulk carriers is below 6 per cent. In relative terms, we are heading towards the lowest rate of supply growth in 30 years. 18 Supra/Ultramax bulk carriers were delivered in January and zero so far in February. Only 89 vessels are scheduled to be delivered for the remaining part of the year. However, it might be even lower, as some registered orders usually are cancelled, deferred or simply incorrect. The new regulations (EEXI) in 2023 might cause a slight contraction on the supply side as older vessels may have to reduce their maximum sailing speed.

NEWBUILDING PRICES: Whilst ordering activity for bulk carriers has been relatively low, prices have increased due to rising steel prices and high demand from other shipping segments. This has reduced the available shipbuilding capacity for bulk carriers in the near term. A Japanese Ultramax newbuilding would today cost in the region of USD36m with delivery in 2H 2024.

SECONDHAND VESSEL VALUES: Today's 1 year time charter contracts for Ultramax vessels are in the region of USD 28-30 000 per day. Net annual cash flow per vessel is currentlyUsd 6m+.

Rates for such contracts have been above USD 20 000 since beginning 2021, pointing to historically low ship valuations in relation to earnings.

Following the historical pattern of very high correlation between earnings and prices for secondhand bulk carriers, the value of a five-year old Japanese vessel should be significantly higher than today, and at least equal to the cost of a newbuilding with 2-year forward delivery.

Market Update – Highly profitable levels

Current Spot market spot and FFA

RATES – The New Year displayed softening spot rates, in line with usual seasonality. This is a reminder that freights are sensitive to swings both ways regardless of fundamentals. However, Ultramaxes again outperform larger vessel segments on the back of more stable volumes in minor bulk commodities. The FFA market is currently trading at levels of close to USD 30 000 for Ultramaxes for the remaining part of 2022.

CONGESTION – Port closures and vessel waiting times especially in Asia are causing fleet inefficiencies which contribute to tighter market dynamics. Every bulk carrier spent on average two extra days in port compared to 2020. This may seem a short term inefficiency, however, this trend has been increasing over the past several years.

CARGO – Curbs in Chinese steel production and intervention in coal markets reduced export volumes, and freight rates were markedly weaker in January. Recently, the sentiment has significantly improved and expectations are high for increased demand growth in the next couple of months. Furthermore, very high demand in the container markets continue to add support as some cargoes typically transported in containers is being shipped in bulk carriers. This is a swing factor to watch carefully as one should expect normalised trade flows over time.

GREEN SHIFT, INFRASTRUCTURE BOOM, ENERGY CRISIS – All three contribute to dry bulk demand and have accelerated during the past 12-24 months.

ECONOMIC STIMULUS AND GROWTH – Credit growth and economic stimulus is positive for the dry bulk market. Seaborne iron ore is predominantly driven by Chinese demand, whereas minor bulks tend to correlate closer with wider GDP growth. General consensus points toward continued economic growth in 2022.

Significant de-risk: Highly Profitable Contract Coverage

Cash breakeven for remaining open days in 2022 below zero

| BELSHIPS ASA |

Undervalued – Strong Downside Protection

Potential cash yield from operations in 2022

80%

Significant free cash flow and dividend capacity

Belships ASA - Investment Highlights

Platform

Proven track record – growth delivered

Governance

Simple structure, low costs and transparency leader

Visibility

Highly profitable contract coverage

Key drivers

Infrastructure/raw materials boom and the lowest orderbook in 30 years

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 17 February 2022 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

		Q4	Q4
USD 1 000		2021	2020	2021	2020
Gross freight revenue	Note	297 087	78 095	808 237	220 332
Voyage expenses		-71 263	-19 918	-164 929	-61 065
Net freight revenue	2	225 824	58 177	643 308	159 267
Management fees		2 797	1 679	7 366	6 095
Operating income	2	228 621	59 856	650 674	165 362
Share of result from j/v and assoc. comp.		8 242	1 541	14 323	3 052
T/C hire expenses		-140 523	-36 642	-400 710	-90 401
Ship operating expenses		-15 417	-8 673	-50 457	-38 675
Operating expenses management companies		-9 151	-3 627	-30 756	-11 861
General and administrative expenses		-1 332	-1 135	-4 795	-3 491
		-158 181	-48 536	-472 395	-141
Operating expenses					376
			11 320		23 986
EBITDA		70 440 -8 102	-6 036	178 279 -28 735	-27 286
Depreciation and amortisation	3	0	-89	0	-4 957
Impairment	3	15 333	0	15 333	2 469
Gain on sale of ships	3	2 691	-891	-4 048	1 165
Other gains/(-losses)		80 362	4 304	160 829	-4 623
Operating result (EBIT)		160	242	815	985
Interest income		-5 040	-3 233	-15 881	-13 668
Interest expenses		-1 014	-340	-2 308	-729
Other financial items		-379	239	-1 325	875
Currency gains/(-losses)		-6 273	-3 092	-18 699	-12 537
Net financial items
		74 089	1 212	142 130	-17 160
Result before taxes	5	-14 881	-349	-8 708	-583
Taxes		59 208	863	133 422	-17 743
Net result
		48 480	-1 742	103 983	-19 898
Hereof majority interests		10 728	2 605	29 439	2 155
Hereof non-controlling interests
Earnings per share		0.23	0.01	0.54	-0.08
Diluted earnings per share		0.23	0.01	0.53	-0.08

Consolidated statement of income Consolidated statement of financial position

		31 Dec	31 Dec
USD 1 000		2021	2020
NON-CURRENT ASSETS	Note
Intangible assets		0	1 770
Ships	3	580 628	371 637
Prepayment of ships		0	3 000
Property, Plant, and Equipment		4 227	4 878
Investments in j/v and assoc. companies		13 997	2 123
Other non-current assets		821	5 394
Total non-current assets		599 673	388 802

CURRENT ASSETS
Assets held for sale	3	23 933	5 917
Bunkers		16 492	5 344
Current receivables		52 332	30 431
Cash and cash equivalents		105 204	33 985
Total current assets		197 961	75 677

Total assets		797 634	464 479

EQUITY AND LIABILITIES
Equity
Paid-in capital		158 802	137 962
Retained earnings		82 739	5 956
Non-controlling interests		31 378	6 099
Total equity		272 919	150 017

Non-current liabilities
Long term interest bearing debt Other non-current liabilities	4	412 881 1 757	247 315 2 769
Total non-current liabilities		414 638	250 084

Current liabilities
Current portion of interest bearing debt	4	24 467	34 162
Other current liabilities		85 610	30 216
Total current liabilities		110 077	64 378

Total equity and liabilities		797 634	464 479