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 15 May 2020 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.

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Investment highlights

Agenda

Highlights – Q1 2020	5

Company introduction	6

Market update	15

Strategy	19

Highlights – Q1 2020

Commercial outperformance in challenging times Earnings

Operating income of USD 33.6 million (Q1 2019: USD 31.1m)
EBITDA of USD 4.9m (USD 10.1m)
Net result of USD 0.2m (USD 2.5m)
Net TCE earnings per ship of USD 8 636 per day versus BSI index of USD 6 232 net per day
Outperformance of Baltic Supramax market index of 39 per cent
40 per cent of remaining ship days in 2020 are booked at USD 8 500 net per day
1 215 days, equivalent to 20 per cent of remaining ship days in 2020, have been hedged with FFA at USD 9 900 per day
Average cash breakeven per vessel about USD 9 500 per day for next 12 months
Commercial platform set to expand with establishment of Oslo office
Taken delivery of newbuilds BELFUJI, BELMOIRA and BELAJA
Modern fleet of 23 vessels with an average age of 5 years including newbuildings

Q1 2020	FY 2019
Average TCE	Average TCE
USD 8 636/day	USD 11 201/day
BSI index USD 6 232/day net	BSI index USD 9 451/day net
EBITDA	EBITDA
USD 4.9m	USD 34.7m

Net result	Net result
USD 0.2m	USD 5.1m
Financial position
Owned ships USD 206.2m	Equity USD 156.4m (35%)
Leased ships USD 161.2m	Mortgage loans USD 129.6m
Cash and cash equivalents USD 34.8m	Lease liabilities USD 143.5m
Other assets USD 47.5m	Other liabilities USD 20.2m

Integrated owner and operator of geared dry bulk vessels

Creating the best in-class listed dry bulk company

Pushing the growth agenda – net cash invested USD 2.7m

Cash effect recent transactions (USDm)

Purchase options provide flexibility and reduce risk

Overview of vessel purchase options 2020 – 2031

Modern fleet with average age of ~5 years

	Vessel	Built	DWT	Yard	Ownership
max Ultra 6 x 1	BELMAR (NEWBUILD)	2021	64,000	Imabari	BB-in1
	BELFAST (NEWBUILD)	2020	64,000	Imabari	BB-in2
	BELAJA	2020	61,000	Shin Kurushima	BB-in4
	BELMOIRA	2020	61,000	Shin Kurushima	BB-in4
	BELFUJI	2020	63,000	Imabari	TC-in3
	BELRAY	2019	61,000	Shin Kurushima	BB-in5
	BELNIPPON	2018	63,000	Imabari	TC-in6
	BELHAVEN (TBD)	2017	63,000	Imabari	Owned
	BELISLAND	2016	61,000	Imabari	BB-in7
	BELFOREST	2015	61,000	Imabari	BB-in8
	BELINDA	2016	63,000	Hantong	Owned
	BELMONT	2016	63,000	Hantong	Owned
	BELATLANTIC	2016	63,000	Hantong	Owned
	SOFIE VICTORY	2016	63,000	New Times	Owned
	BELPAREIL	2015	63,000	Hantong	Owned
	BELSOUTH	2015	63,000	Hantong	Owned

Ultramax vessels Supramax vessels

	Vessel	Built	DWT	Yard	Ownership
max pra Su 7 x	BELOCEAN	2011	58,000	Dayang	Owned
	BELNOR	2010	58,000	Dayang	Owned
	BELSTAR	2009	58,000	Dayang	Owned
	BELCARGO	2008	58,000	Tsuneishi	Owned
	BELFRI	2007	55,000	Kawasaki	Owned
	BELORIENT	2008	50,000	PT Pal	Owned
	BELFORT	2008	50,000	PT Pal	Owned

BELEAST and PACIFIC LIGHT have been delivered to Marti Shipping & Ship Management of Turkey for bareboat charter and subsequent sale.

1) Delivery 2H 2021 ten years bareboat charter with purchase options after fourth year.

2) Delivery 2H 2020 ten years bareboat charter with purchase options after fourth year

3) Delivered January 2020 eight years time charter with purchase options after fourth year

4) Delivered Q1 2020 seven years bareboat charter with purchase options after fourth year

5) Delivered October 2019 seven years bareboat with purchase options after fourth year

6) Delivered January 2018 eight years time charter with purchase options after fourth year

7) Delivered 2016 fifteen years bareboat charter with purchase options after fifth year

8) Delivered 2015 twelve years bareboat charter with purchase options after third year

There are no purchase obligations on any of the above lease agreements.

Belships is determined to be proactive and contribute to a sustainable shipping industry

means of transporting goods and resources

Reducing carbon footprint through modernisation The most energy efficient

Ultramax segment – superior risk/reward

Average earnings per day - last 10 years

Ultramax: BSI58 plus 10% premium. BSI58 is BSI52 plus \$293 per day prior to 2015 Kamsarmax: BPI82 2018-2020, BPI74 plus \$1 300 day prior to 2018 Capesize: BCI 5TC 2014-2020, BCI 4TC prior to 2014

Source: Baltic Exchange, Belships

17% outperformance of the BSI index last four quarters

Belships TCE vs BSI 58 (net per day)

Guidance for 2020 – low cash break even and cost base

4.0

Contract coverage Q2-Q4

1,000

2,000

3,000

4,000

5,000

6,000

CORONA (COVID-19) - The effects of the outbreak and the restrictions imposed to mitigate the spread of the disease has caused economies to implode. Dry bulk markets were in seasonal recovery mode mid-February after an extended Chinese New Year, however, this turned out to be short lived as Europe and US have since battled the spread of Coronavirus thru widespread lockdown or other restrictive measures.
CARGO – In contrast to perception, volumes carried on Supramax and Ultramax vessels in the first quarter continued to increase compared to previous years. This highlights the fact that the supply side needs to adjust. Recycling of older tonnage has been virtually non-existent since India imposed travel restrictions and neither Pakistan, Bangladesh nor China were active. We expect this to resume as national borders reopen for repatriation of seafarers.
ORDERBOOK/SUPPLY - The publicly quoted Supramax and Ultramax order book is about 6 per cent of the total fleet the lowest in almost 20 years. Importantly, one third of the registered order book is scheduled for delivery by the end of July which together with normalised recycling activity points towards fleet growth peaking soon.
STIMULUS - Leading indicators are pointing to continued trade growth, however GDP forecasts have been adjusted downwards significantly. Low interest rates seem to be the new norm for the foreseeable future, together with low energy prices. Continued credit growth and economic stimulus in China is expected to aid a recovery in dry bulk. Seaborne iron ore is predominantly driven by Chinese demand whereas minor bulks tend to correlate wider with GDP.
REBOUND - The near-term outlook is negative, however much depends on when China resumes normal activity, which may lead to positive effect from pent-up demand on top of normal volume normalisation. There are clear expectations for a healthier rate environment in 2H/2020 as Freight Forward Agreements (FFA) currently indicate a market for Supramaxes and Ultramaxes of around USD 8 500 and 9 500 per day within the end of the year.