Belships

Investor Presentation • Apr 28, 2016

Annual general meeting

April 28, 2016

Key investment highlights

Owner/operator of high quality ships on medium to long‐term charters to highly reputable customers

Strengthening market balance representing an attractive window of opportunity

5

4

6

Strong focus on fleet expansion with modern dry bulk tonnage

1

3

2

Management team with a track record for building and operating successful shipping companies

USD 75m fixed charter backlog providing long‐term stable revenues

Belships ASA was founded in 1918 and listed in Oslo in 1937.Strong and supportive majority shareholder in the Tidemand family.

Business strategy and core activities

• •Owner/operator of dry bulk tonnage
• •Pure play in dry bulk – clear strategic focus
• • Building ^a portfolio of c/p's to reputable counterparts
• •Duration of c/p's evenly spread – long tail
• • Fixed long term charters will provide stable distributable cash flows
• • Cost efficient operation and administration – «lean and mean»
• •Transparency, good corporate governance
• • Targeting an efficiently priced equity with an attractive dividend ratio
• •Buying back own stocks when undervalued

Corporate Structure

Tonnage overview

l n Ve ss e am e	Dw t	/ l d Bu i t y ar	Ty p e	Cu to s m er
ls Be ta r	5 8, 0 0 0	/ 2 0 0 9 Da y an g	bu l k Su p ra m ax	Ca te np o x
lno Be r	8, 0 0 0 5	/ 2 0 1 0 Da y an g	bu l k Su p ra m ax	Ca te np o x
loc Be ea n	5 8, 0 0 0	/ 2 0 1 1 Da y an g	bu l k Su p ra m ax	i l l Ca rg
l fo ) Be i t re s	6 1, 0 0 0	l V / e s s e ba l n n a 2 0 1 5 Im Ve i ss e am e a r	m e l bu l k U tra m ax	l l Ca i rg
l lan d ) Be is i i	6 1, 0 0 0	/ ba 2 0 1 6 Im i a r	l bu l k U tra m ax	Ca te np o x
/ ) ba i b i i i Im a r n	6 3, 0 0 0	/ ba i 2 0 1 8 Im a r	l bu l k U tra m ax	Op en

i) Bareboat charter lease period of 12 years with USD purchase options after the third year.

• ii) Bareboat charter lease period of 15 years with USD purchase options after the fifth year.
• iii) Time charter lease period of 8+1+1+1 years with purchase option from end of year 4 of JPY 3.01 bn, decreasing annually by JPY 110 m.

Contract coverage

‐USD 75m fixed charter backlog

Support team

• •Technical management
• •Insurance
• •Finance
• •Analyst coverage
• •Stock exchange

Market Should Improve Modestly From 2017-20

• Trade Demand Recovers
• Modest Global Economic Recovery Leads To Increased Trade
• Chinese Iron Ore Imports Rise Despite Falling Steel Production

Marso

• Limited Fleet Growth
• Ordering Remains Low In 2016-17
• But Potential For Rising Fleet Speed Keeps Market In Check

...But Chinese Iron Ore Imports Can Still Rise Marsoft 1,400 1,200 1,000 Imports million Tonnes (60% Fe) 5% Imports $\bullet$ Biron Ore Required Domestic Production

Commodity prices

Sources: Reuters, Platts

Commodity prices

Supply side considerations

i d E t t t s m a e n e f l h t t e e g r o w
2	2
0	0
1	%
5
2	%
0	1
6	5
1
2	%
0	1
1	3
7

The Belships share

Ownership and Organization chart

Shareholder overview

ha ho l de S re r	ha # s res	%
( Ti de d ) So AS Sve J. ta na rre ma n	28 85 6 0 30	% 60 .9
ds hip ( de d ) Ti s A S Ot G. Ti to ma n	6 2 01 05 8	13 .1 %
Sve J. Ti de d rre ma n	2 8 91 46 2	6.1 %
SE B	98 7 4 19	2.1 %
ls hip Be s A SA	49 8 0 00	1.1 %
Ge AS ms co	41 0 0 58	% 0.9
ling Ca s A S r	40 0 0 00	0.9 %
Co lor do Ei do AS a en m	35 5 0 00	0, 8 %
d Ti inv II A S est	31 5 4 14	0.7 %
Jen & Co . A S sse n	30 2 8 16	0 .6 %
hre l A C Ca ita S m p	27 0 0 00	% 0.6
ka Na To tsu ga ru	25 0 0 00	0.5 %
Liv Sø lan d	24 0 0 00	0.5 %
l d AS L H ing AS o	22 5 0 00	0.5 %
JSL AS	21 1 0 00	0.5 %
l Er k S Ca i tee r n	20 7 2 03	0.4 %
ha d K l lan d Be ie rn r	20 0 0 00	0.4 %
l d ing HK G H AS o	13 0 2 79	% 0.3
lan d To in Sø rst e	13 0 0 00	0.3 %
/ ke k A S Da Ba ns n	12 8 4 85	0.3 %
he ha ho l de Ot r s re rs	4 1 42 77 6	8.5 %
l o ha To d ing ta uts tan s res	47 35 2 0 00	10 0.0 %

i A U S D t m o n s n m u	2 0 1 5	2 0 1 4
O i i t p e r a n g n c o m e	2 2 0	2 2 1
E B I T D A	9 9	8 6
f h i i I t m p a r m e n o s p s	3 8 1 ‐	3 2 ‐
l O i t t p e r a n g r e s u	2 6 7 ‐	1 1
l b f N t t t e r e s e o r e a u x	3 0 0 ‐	1 6 ‐

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

US D 1 00 0	20 15	20 14
ig ht Fre rev en ue	17 57 0	17 91 2
fee Ma t nag em en s	4 4 14	4 1 67
Op tin inc era g om e	21 98 4	22 07 9
ha hir Tim rte e‐c r e	0	‐80 4
S hip tin op era g e xp en ses	71 ‐5 7	43 4 ‐5
tin hip Op nt era g e xp en ses s m an age me	‐3 69 4	‐3 74 1
l an d a dm Ge inis tiv tra ne ra e e xp en ses	‐2 70 0	‐3 54 0
Op tin era g e xp en ses	12 11 1 ‐	‐13 9 51
( ) Op tin lt EB ITD A era g r esu	9 8 73	8 5 60
d a De cia tio rtiz ati pre n a n mo on	‐4 68 6	‐4 27 4
f t he f lee Im irm t o t pa en	‐31 84 7	‐3 20 0
tin lt ( ) Op EB IT era g r esu	26 66 0 ‐	1 0 86
Int inc st ere om e	29	124
Int st e ere xp en ses	‐2 18 5	‐1 96 1
he fin l it Ot cia r an em s	‐67 4	‐27 7
/ (‐ los ) Cu ins rre ncy ga ses	‐48 3	‐55 0
fin cia l it Ne t an em s	3 3 13 ‐	‐2 66 4
lt be for Re e t su axe s	29 97 3 ‐	‐1 8 57
Ta xes	‐17 7	‐23
Ne lt t r esu	30 15 0 ‐	‐1 60 1
f n l ling He in ntr ter est reo on ‐co o s	10 9	80
f m ajo rity in He ter est reo s	‐30 25 9	68 ‐1 1
Ot he he nsi in r c om pre ve co me
/ l ga ( los ) o de fin d be fit lan Ac ria in tua s n e ne p s	‐23	‐99
l co he To nsi inc ta mp re ve om e	30 17 3 ‐	‐1 70 0
f n l ling He in ntr ter est reo on ‐co o s	10 9	80
He f m ajo rity in ter est reo s	‐30 28 2	‐1 78 0
ha ( ) Ear nin US nt gs pe r s re ce	‐64 42 ,	‐3, 42
Di lut d e ing ha ( ) US nt e arn s p er s re ce	‐64 42 ,	‐3, 42

CONSOLIDATED BALANCE SHEETS

B E L S H I P S A S A
	3 1 De c	3 1 De c
U S D 1 0 0 0	2 0 1 5	2 0 1 4
S S S A E T
ixe d F ts as se
h S ip s	8 7 7 3 0	8 8 9 2 0
bu l d lm i in in Ne ta ts w g s en	2 2 4 5	2 1 4 1 5
he f ixe d O t ts r as se	2 0 2 7	2 3 4 5
l f ixe d To ta ts as se	9 3 9 8 2	1 0 5 3 9 0
Cu t a ts rre n ss e
ho b les S iva t‐ te r rm re ce	1 2 7 3	1 0 1 1
h d h le Ca iva ts s an ca s eq n u	7 9 9 3	8 0 6 4
l c To ta t a ts ur re n ss e	9 2 6 6	9 0 7 5
l a To ta ts ss e	1 0 3 2 4 8	1 1 4 4 6 5

CONSOLIDATED BALANCE SHEETS

BELSHIPS ASA

	3 1 De c	3 1 De c
U S D 1 0 0 0	2 0 1 5	2 0 1 4
E Q U I T Y A N D L I A B I L I T I E S
i Eq ty u
l i d‐ in i Pa ta ca p	4 3 8 8 5	4 3 6 3 5
d e Re ine ing ta ar n s	‐9 2 0 2	2 1 0 8 0
l l ing in No tro te ts n‐ co n re s	4 4 5	0 8 4
l e To i ta ty q u	3 4 8 3 1	6 5 0 5 1
l b l Lo ia i i ies ‐te t ng rm
de b M tg t or ag e	3 5 7 6 7	4 0 6 5 1
bo i Ba t c tm t re a om m en	2 8 0 9 1	0
l F ina ia ins tru ts nc me n	6 0 2	5 1 5
b l Pe ion ig ion t ns o a s	7 9 6	1 1 3 8
he lon l b l O ia i i ies t te t r g‐ rm	1 4 0 7	0
l lon l ia b i l i ies To ta te t g‐ rm	6 0 3 8 1	4 2 3 0 4
ho l b l S ia i i ies t‐ te t r rm
f lon de b Cu ion t p t te t rre n or o g‐ rm	5 6 8 8	5 0 0 0
O he ho l ia b i l i ies t t‐ te t r s r rm	2 3 8 4	2 0 1 1
l s ho l ia b i l i ies To ta t‐ te t r rm	8 0 3 6	7 1 1 0
l e d l b l To i ia i i ies ta ty t q u an	1 0 3 2 4 8	1 1 4 4 6 5

Result 1st quarter 2016

i A U S D t m o n s n m u	Q 1‐ 2 0 1 6	Q 4 2 0 1 5 ‐
O i i t p e r a n g n c o m e	6 0	9 5
E B I T D A	2 5	2 2
f h I i i t m p a r m e n o s p s	1 3 8 ‐	1 9 9 ‐
l O i t t p e r a n g r e s u	1 4 9 ‐	1 9 1 ‐
f l b R t t e s e o r e a u x	1 6 4 ‐	1 9 9 ‐

1st quarter 2016 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME The quarterly figures are not audited

BELSHIPS ASA

		Q 1	Q 4
USD 1 0 00		20 16	201 5	20 15
ig ht Fre rev en ue	Not e	4 9 46	4 7 54	570 17
fe Ma ent nag em es		1 0 64	1 1 46	4 4 14
tin inc Op era g om e	2	6 0 10	5 9 00	21 984
Shi ati p o per ng exp ens es		‐1 8 82	‐1 95 1	‐5 717
tin s sh ip m Op ent era g e xpe nse ana gem		‐93 1	‐96 9	‐3 694
al a Ge nd adm inis tive tra ner ex pen ses		‐66 5	‐76 7	‐2 700
Op tin era g e xpe nse s		3 4 78 ‐	‐3 687	‐12 11 1
tin lt ( A) Op EB ITD era g r esu		2 5 32	2 2 13	9 8 73
nd De cia tio iza tio ort pre n a am n		‐1 336	‐1 4 38	‐4 686
air of t he fle Imp nt et me		‐13 82 3	‐19 87 6	‐31 84 7
of / Los ale sh ip los ont t s o n s s o n c rac		‐2 287	0	0
tin lt ( IT) Op EB era g r esu		14 914 ‐	‐19 10 1	‐26 66 0
Int st i ere nco me		1	22	29
Int st e ere xpe nse s		‐99 5	‐88 0	‐2 185
Oth fin ial ite er anc ms		‐70 1	38 1	‐67 4
/ (‐ los ) Cu ins rre ncy ga ses		167	‐33 5	‐48 3
t fi cia l ite Ne nan ms		1 5 28 ‐	‐81 2	‐3 313
ult be for Res e t axe s		16 2 44 ‐	‐19 91 3	‐29 97 3
Tax es		‐27	‐81	‐17 7
sul Ne t re t		16 469 ‐	‐19 99 4	‐30 15 0
f n olli He int ntr sts reo on ‐co ng ere		6	57	109
f m ajo rity int He sts reo ere		‐16 47 5	‐20 05 1	‐30 25 9
Ot he reh siv e in r co mp en com e
ial in/ ( los s) o n d efi ned be nef lan Act it p uar ga	s	0	‐23	‐23
tal reh siv e in To co mp en com e		16 469 ‐	‐20 01 7	‐30 17 3
f n olli int He ntr sts reo on ‐co ng ere		6	57	109
f m He ajo rity int sts reo ere		‐16 47 5	‐20 07 4	‐30 28 2
sh ( t) Ear nin US gs per are cen		‐35 19 ,	‐42 72 ,	‐64 42 ,
Dil d e sha ( t) ing US ute arn s p er re cen		‐35 19 ,	‐42 72 ,	‐64 42 ,

CONSOLIDATED BALANCE SHEETS

The quarterly figures are not audited

BELSHIPS ASA

	3 1 M ar	3 1 De c
U S D 1 0 0 0	2 0 1 6	2 0 1 5
A S S E T S
ixe d F ts as se
h ip S s	9 6 4 7 4	8 7 7 3 0
bu i l d ing ins lm Ne ta ts w en	0	4 2 2 5
he f d a O ixe t ts r ss e	2 0 3 4	2 0 2 7
l f d To ixe ta ts as se	9 8 5 0 8	9 3 9 8 2
Cu t a ts rre n ss e
ho b les S iva t‐ te r rm re ce	1 0 9 7	1 2 7 3
h a d c h e iva len Ca ts s n as q u	1 1 4 1 5	7 9 9 3
l c To ta t a ts ur re n ss e	2 2 1 5 1	9 2 6 6
l a To ta ts ss e	1 1 1 0 2 0	1 0 3 2 4 8

CONSOLIDATED BALANCE SHEETS

The quarterly figures are not audited

B E L S H I P S A S A
	3 1 M ar	3 1 De c
US D 1 00 0	2 0 1 6	2 0 1 5
E Q U I T Y A N D L I A B I L I T I E S
ity Eq u
i d‐ in ita l Pa ca p	3 9 4 5 4	3 8 8 4 5
ine d e ing Re ta ar n s	‐2 6 5 7 7	‐9 2 0 2
l l No ing int tro ts n‐c on er es	4 5 1	4 4 5
l e To ity ta q u	1 8 3 6 8	3 4 8 3 1
l ia b i l it ies Lo ‐te ng rm
de b Mo rtg t ag e	3 4 5 4 6	3 5 7 6 7
bo itm Ba t c t re a om m en	4 4 2 0 8	2 1 8 0 9
ina ia l ins F tru nts nc me	9 8 6	6 0 2
ion b l ig ion Pe t ns o a s	8 0 1	9 6 7
he lon l b l O ia i it ies t te r g‐ rm	1 4 0 7	1 4 0 7
l lon l b l To ia i it ies ta te g‐ rm	8 1 9 4 8	6 0 3 8 1
ho l ia b i l it ies S rt‐ te rm
f lon de b Cu ion nt t te t rre p or o g‐ rm	6 7 2 2	5 6 8 8
he ho l b l O ia i it ies t rt‐ te r s rm	3 9 8 2	2 3 4 8
l s ho l ia b i l it ies To ta rt‐ te rm	1 0 7 0 4	8 0 3 6
l e l b l ity d ia i it ies To ta q u an	1 1 1 0 2 0	1 0 3 2 4 8

Note 2 Segment information

BELSHIPS ASA

US D 1 00 0	h 2 Jan ‐ M 01 6 ua ry arc
		hn l Tec ica	dm A ini ‐	Gro up
	Dry ca rgo	ma na gm	ati str on	cti tra nsa on	l To ta
ig ht Fre rev en ue	4 8 57	0	0	89	4 9 46
fee Ma nt na ge me s	0	1 1 76	14 7	25 9 ‐	1 0 64
Op ing in t era co me	4 8 57	1 1 76	14 7	17 0 ‐	6 0 10
/ S hip tin los tra ct op era g e xp en ses s o n c on	‐2 05 2	0	0	0 17	1 8 82 ‐
hip Op tin nt era g e xp en ses s m an age me	0	93 1 ‐	0	0	93 1 ‐
l an d a dm Ge ini ati str ne ra ve ex pe nse s	3 ‐	0	66 2 ‐	0	66 5 ‐
ing Op t era ex pe nse s	2 0 55 ‐	93 1 ‐	66 2 ‐	17 0	3 4 78 ‐
lt ( ) Op ing EB ITD A t era re su	2 8 02	24 5	51 5 ‐	0	2 5 32
cia tio d a rtis ati De pre n a n mo on	1 3 14 ‐	12 ‐	10 ‐	0	1 3 36 ‐
f s hip Im irm t o pa en s	13 82 3 ‐	0	0	0	13 82 3 ‐
/ le o f s hip los Los tra ct s o n s a s o n c on	2 2 87 ‐	0	0	0	2 2 87 ‐
ing lt ( ) Op EB IT t era re su	14 62 2 ‐	23 3	52 5 ‐	0	14 91 4 ‐
Int inc st ere om e	0	0	1	0	1
Int st ere ex pe nse s	89 0 ‐	0	10 5 ‐	0	99 5 ‐
he fin l it Ot cia r an em s	28 2 ‐	12 ‐	40 7 ‐	0	70 1 ‐
/ (‐ ) Cu ins los rre ncy ga ses	15 ‐	81 ‐	26 3	0	16 7
f l Ne ina ia ite t nc ms	1 1 87 ‐	93 ‐	24 8 ‐	0	1 5 28 ‐
lt be for Re e t su axe s	80 9 15 ‐	0 14	3 77 ‐	0	16 2 44 ‐
Ta xes	0	27 ‐	0	0	27 ‐
lt Ne t r esu	15 80 9 ‐	11 3	77 3 ‐	0	16 46 9 ‐
f n l ling He in ntr ter est reo on ‐co o s	0	6	0	0	6
f m He ajo rity in ter est reo s	15 80 9 ‐	10 7	77 3 ‐	0	16 47 5 ‐