COMPANY PRESENTATION Q4 2019

FEBRUARY 2020

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 21 February 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 – Q4 2019	5

Company introduction	6

Market update	15

Strategy	19

Highlights – Q4 2019

Continued spot performance and growth Key figures

Operating income of USD 40.4 million (Q4 2018: USD 29.2m)
EBITDA of USD 7.4m (USD 5.9m)
Net result of USD 2.1m (USD 1.2m, excl. purchase bargain gain)
Net TCE earnings per ship of USD 11 992 per day versus BSI index of USD 10 226 net per day
70% of total ship days in Q1 2020 have been booked at USD 9 625 net per day
Average cash breakeven per vessel about USD 9 500 per day for next 12 months
Ship-for-shares acquisition of 2017-built 63 000 dwt Ultramax for delivery in Q2 2020
Bareboat agreement with purchase options for 64 000 dwt Ultramax for delivery 2H 2020
BELEAST delivered to its charterer in December for the agreed bareboat and subsequent sale
Agreement for bareboat charter and subsequent sale of PACIFIC LIGHT
Modern fleet with an average age of 5 years including newbuildings
Initiated carbon footprint fleet study

USD 2.1m

Q4 2019	FY 2019
Average TCE	Average TCE
USD 11 992/day	USD 11 201/day
BSI index USD 10 266/day net	BSI index USD 9 451/day net

EBITDA	EBITDA
USD 7.4m	USD 32.2m

Net result	Net result

USD 5.1m

Integrated owner and operator of geared dry bulk vessels

Creating the best in-class listed dry bulk company

Recent transactions

2020 Ultramax Bareboat - In October, Belships agreed a 7-year bareboat charter for a 61 000 dwt Ultramax bulk carrier newbuilding from Shin Kurushima, Japan. The estimated cash breakeven for the Vessel upon delivery is about USD 11 000 per day including operational expenses. The vessel was delivered in February 2020 and named BELAJA. Belships paid a sum of USD 3m prior to delivery. The agreement comes with purchase options below current market values and can be exercised after the fourth year until the end of the charter.
2020 Ultramax Bareboat - In December, Belships announced it had entered into agreement for a 10-year bareboat charter of a 64 000 dwt Ultramax bulk carrier newbuilding. The vessel will be delivered by Imabari Shipyard during second half of 2020. Estimated cash breakeven for the vessel upon delivery is about USD 10 750 per day including operational expenses. Belships will pay a sum of USD 3m upon signing contract, expected to occur during March 2020. The agreement comes with purchase options below current market values and can be exercised after the fourth year until the end of the charter.
2017 Ultramax ship-for-shares (NOK 7.15 per share) - In December, acquisition was announced for a modern secondhand Ultramax bulk carrier from Japanese Owners for a price of USD 24.5m. The 63 000 dwt vessel was built in 2017 by Imabari Shipyard. Delivery is expected during the second quarter of 2020. The payment for the vessel will be settled by issuing new shares equivalent to 50 per cent of the purchase price at a subscription price of NOK 7.15 per share, and the remaining in cash upon delivery. Utilising Accordion Tranche basis 60% financing, the transaction will have a positive cash effect of about USD 2.45 million.
PACIFIC LIGHT bareboat and subsequent sale - Belships has entered into an agreement with Marti Shipping & Ship Management of Turkey for a bareboat charter and subsequent sale of PACIFIC LIGHT. The 50 000 dwt bulk carrier was built in 2007, and is currently the oldest ship in Belships' fleet. Belships will realize a gain of approximately USD 2.4m upon delivery in March or April 2020. The Charterer has an obligation to purchase the vessel within 24 months and the net cash flow during the period will be approximately USD 1.8m after repayment of outstanding loans.

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 of 24 vessels with average age of ~5 years

	Vessel	Built	DWT	Yard	Ownership
x a m Ultra 6 x 1	BELMAR (NEWBUILD)	2021	64,000	Japan	BB-in1
	BELFAST (NEWBUILD)	2020	64,000	Japan	BB-in2
	BELAJA (NEWBUILD)	2020	61,000	Shin Kurushima	BB-in3
	BELMOIRA (NEWBUILD)	2020	61,000	Shin Kurushima	BB-in3
	BELFUJI (NEWBUILD)	2020	63,000	Imabari	TC-in4
	BELRAY (NEWBUILD)	2019	61,000	Shin Kurushima	BB-in5
	BELNIPPON	2018	63,000	Imabari	TC-in6
	BELHAVEN (TBD)	2017	63,000	Japan	Owned7
	BELISLAND	2016	61,000	Imabari	BB-in8
	BELFOREST	2015	61,000	Imabari	BB-in9
	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
x a m pra u S 8 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
	PACIFIC LIGHT1	2007	50,000	PT Pal	Owned

1) To enter into two year bareboat charter during March or April 2020. The vessel will be sold to the charterers as part the agreement.

1) On 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) Delivery Q1 2020 for seven years bareboat charter with purchase options after fourth year.

4) Delivery Q1 2020 for eight years time charter with purchase options after fourth year.

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

6) Eight years time charter with purchase options after fourth year.

7) Delivery Q2 2020.

8) Fifteen years bareboat charter with purchase options after fifth year.

9) Twelve years bareboat charter with purchase options after third year.

There are no purchase obligations on any of the lease agreements. | Company introduction |

Ultramax segment – superior risk/reward

Comparison last 10 years

Ultramax: BSI58 plus 10% premium. BSI58 is BSI52 plus \$293 per day prior to 2015 Kamsarmax: BPI82 2018-2019, BPI74 plus \$1 300 day prior to 2018 Capesize: BCI 5TC 2014-2019, BCI 4TC prior to 2014

Source: Baltic Exchange, Belships

| Company introduction |

19% outperformance of the BSI index in 2019

Belships TCE vs BSI 58 (net USD per day)

2020 guidance – low cash break even and cost base

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Market update

2019 - The year of trade wars and iron ore supply disruption, both set to normalise this year
CORONA - Dramatic start to 2020 driven by negative economic impacts stemming from Corona virus, shutdowns and extended Chinese New Year
IMO 2020 - Fuel price differences between 3.5 and 0.5 per cent sulphur content peaked at USD 300 per mt in December
ORDERBOOK/SUPPLY - Historically low orderbook and fleet growth to decrease sharply from 2H 2020
STIMULUS - Leading indicators are pointing to continued economic growth, low interest rates and energy prices. Continued credit growth and economic stimulus in Chinese economy
REBOUND - Near-term outlook much depends on when China resumes normal activity, which may lead to positive effect from pent-up demand on top of normal volume normalisation
CONTANGO - Forward rates for remaining days in 2020 have already started to move