Belships

Investor Presentation • Feb 24, 2021

COMPANY PRESENTATION | Q4 2020 February 2021

Belships ASA – Owner and operator of bulk carriers

average fleet age

Purchase options on almost half the fleet

USD 10 300 cash break-even per day

16% Historical outperformance of Baltic Supramax index

Highlights – Q4 2020

THE MARKET IS BACK – 2021 OUTLOOK IMPROVED Earnings summary

• ▪Operating income of USD 59.9 million (Q4 2019: USD 38.9m)
• ▪EBITDA of USD 11.3m (USD 8.5m)
• ▪Net result of USD 0.9m (USD 2.1m)
• ▪Net TCE per ship of USD 10 502 per day versus BSI index of USD 10 211 net per day
• ▪33 per cent of available ship days in 2021 are booked at USD 11 716 net per day
• ▪Positioned to take advantage of improved market with 80 per cent open vessel days in Q2-Q4 2021
• ▪BELFORT and BELORIENT sold with delivery in Q2 2021 as part of fleet modernising with two newbuildings delivering in 2021
• ▪Record EBITDA of USD 5.6m from management companies after rebound and expansion
• ▪Modern fleet of 23 vessels with an average age of 5 years

Q4 2020	Q4 2019
Average TCE	Average TCE
USD 10 502/day	USD 11 992/day
EBITDA	EBITDA
USD 11.3m	USD 7.4m
Net result	Net result
USD 0.9m	USD 2.1m
Financial position
Assets	Equity and liabilities
Owned ships	Equity
USD 220.4m	USD 150.0m (32%)
Leased ships	Mortgage loans
USD 157.1m	USD 141.7m
Cash and cash equivalents	Lease liabilities
USD 34.0m	USD 139.7m
Other assets	Other liabilities
USD 52.9m	USD 33.0m

Market update – Spot rates not seen in a decade

Current Supramax spot and FFA curve

CORONA (COVID-19) – With vaccines being rolled out there are clear signs of the economy recovering and pent-up demand driving the market. The pandemic has put strains on our sailling officers and crew, however we have managed to maintain safe and continued vessel operations.

CARGO – A rally in commodity markets coupled with a cold winter season has resulted in a freight market not seen in a decade. Import figures for most regions is again showing growth, after a period in 2020 where China almost single handedly spurred a rebound in the dry bulk market.

ORDERBOOK/SUPPLY - The publicly quoted order book for the Supra/Ultramax segment is below 5 per cent – historically very low. In relative terms, we are heading towards the lowest rate of supply growth in 30 years. The average sailing speed has increased, showing that the market has been able to absorb this inherent fleet supply during a sharp increase in spot rates. This is an important indicator of a stronger market sentiment.

STIMULUS - Continued credit growth and economic stimulus is expected to aid a recovery in dry bulk in 2021-22 as the effects of fiscal stimulus usually lags about 12-24 months. Seaborne iron ore is predominantly driven by Chinese demand whereas minor bulks tend to correlate closer with GDP. GDP forecasts predict healthier levels of economic activity for 2021.

MARKET PROSPECTS – The market outlook has turned very bullish. With the rate of growth on the supply side diminishing and post-COVID-19 normalisation now occuring in tandem with a wider commodity rally it appears that the stars are aligning for the dry bulk market in 2021-22. The strength in dry bulk market rates has barely started to take effect on vessel values.

Proven ability to execute growth strategy

Key milestones 2019 - 2021

7 → 23 Bulk carriers

| BELSHIPS ASA |

USD 30m → USD 180m

Market capitalisation

Pushing the growth agenda – Net cash invested USD 1.5m

Cash effect recent transactions (USDm)

Purchase options provide upside and flexibility

Average age of vessels

Purchase options on 40% of current fleet No purchase obligations related to any of the leased vessels

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

Supra/Ultramax - The largest geared vessel segment

• VOLUME GROWTH Minor bulks demand expected to fully recover from the impact of COVID-19 increasing 5% YoY in 2021
• COMMERCIAL PLATFORM Expansion of commercial platform provides additional opportunities to take full advantage of market inefficiencies

Geared vessels' trading patterns

16% outperformance of the BSI index last two years

Belships TCE vs BSI 58 (net per day)

Uniform fleet of 23 Supra/Ultramax bulk carriers

Ultramax Supramax

	Vessel	Built	DWT	Yard	Ownership
max Ultra 6 x 1	BELMAR (NEWBUILD)	2021	64,000	Imabari	BB-in1
	BELFAST	2021	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	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
	BELLIGHT (ex SOFIE VICTORY)	2016	63,000	New Times	Owned
	BELPAREIL	2015	63,000	Hantong	Owned
	BELSOUTH	2015	63,000	Hantong	Owned

	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	Owned1
	BELFORT	2008	50,000	PT Pal	Owned2

1) Sold with expected delivery to buyer in April/May 2021

2) Sold with expected delivery to buyer in March/April 2021

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

2) Delivery January 2021 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

CO2 per tonne km

Agenda

▪2020

• ▪Modernisation continues, with three fully-financed new eco Ultramax vessels being delivered in 2020
• ▪New carbon footprint study initiated with DNVGL
• ▪Belships regarded as leading within corporate governance by Danske Bank and on course for delivering emission cuts in line with industry ambitions for 2030
• ▪Part of the Maritime Anti-Corruption Network (MACN) working towards the vision of a maritime industry free of corruption

▪2021

• ▪2 eco Ultramax newbuildings to be delivered in 2021
• ▪Signed the Neptune declaration as part of ongoing work to mitigate impact of Covid-19 on our seafarers
• ▪Belships will issue a separate ESG report in accordance with the Marine Transport Framework

Shipping is the most energy efficient means of transporting goods and resources

Contributing towards sustainable shipping through modernisation and transparency

2021 guidance

Cash break-even per day

Superior cash break-even driven by low costs and competitive financing

Increasing operational leverage

Coverage 2021 (USD net per day)

40% of 2021 (incl FFA) booked at USD 11 140 net

80% of days in Q2-Q4 2021 are open

Free cash flow to equity ratio 2021

0%

5%

10%

15%

20%

25%

30%

35%

Lowest fleet growth in decades

Order book in % of fleet

Annual schedule

Source: Fearnleys

15

Dec-20 Jan-21

Significant upside in vessel values

Low interest rates historically a leading indicator of value appreciation

Vessel prices are 20-25% lower than historical average given current 1Y TCE rates

Belships ASA - Investment highlights

Platform

Proven track record – with growth prospects

Governance

Simple structure, low costs and governance leader

Flexibility

40% of the fleet with purchase options – no obligations

Leverage

High operational leverage providing significant upside

Key drivers

Infrastructure boom ahead of 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 23 February 2021 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. Forward-looking 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		2020	2019	2020	2019
Gross freight revenue	Note	78 095	48 784	220 332	153 909
Voyage expenses		-19 918	-10 008	-61 065	-30 243
Net freight revenue	2	58 177	38 776	159 267	123 666
Management fees		1 679	194	6 095	7 650
Operating income	2	59 856	38 970	165 362	131 316
Share of result from j/v and assoc. comp.		1 541	815	3 052	2 715
T/C hire expenses		-36 642	-13 958	-90 401	-49 825
Ship operating expenses		-8 673	-11 952	-38 675	-33 558
Operating expenses ship management		-1 129	-1 215	-3 490	-4 125
General and administrative expenses		-3 633	-4 133	-11 862	-11 815
Operating expenses		-48 536	-30 443	-141 376	-96 608
EBITDA		11 320	8 527	23 986	34 708
Depreciation and amortisation	3	-6 036	-9 372	-27 286	-23 074
Impairment	3	-89	0	-4 957	0
Gain on sale of ships		0	4 381	2 469	4 381
Other gains/(-losses)	6	-891	2 119	1 165	2 119
Operating result (EBIT)		4 304	5 655	-4 623	18 134
Interest income		242	99	985	283
Interest expenses		-3 233	-2 817	-13 668	-10 522
Other financial items		-340	-389	-729	-1 127
Currency gains/(-losses)		239	666	875	-13
Net financial items		-3 092	-2 441	-12 537	-11 379
Result before taxes		1 212	3 214	-17 160	6 755
Taxes		-349	-1 142	-583	-1 655
Net result		863	2 072	-17 743	5 100
Hereof majority interests		-1 742	1 243	-19 898	3 487
Hereof non-controlling interests		2 605	829	2 155	1 613
Earnings per share		0.01	0.01	-0.08	0.03
Diluted earnings per share		0.01	0.01	-0.08	0.03

Consolidated statement of income Consolidated statement of financial position

		31 Dec	31 Dec
USD 1 000		2020	2019
NON-CURRENT ASSETS	Note
Intangible assets		1 770	4 629
Ships, owned	3	214 494	213 052
Ships, right-of-use assets	3	157 143	92 720
Prepayment of lease obligations on ships		3 000	6 000
Property, Plant, and Equipment		4 878	4 790
Investments in j/v and assoc. companies		2 123	3 303
Other non-current assets		5 394	8 311
Total non-current assets		388 802	332 805
CURRENT ASSETS
Assets held for sale		5 917	0
Bunkers		5 344	5 832
Current receivables		30 431	14 576
Cash and cash equivalents		33 985	44 428
Total current assets		75 677	64 836
Total assets		464 479	397 641
EQUITY AND LIABILITIES
Equity
Paid-in capital		137 962	125 927
Retained earnings		5 956	25 717
Non-controlling interests		6 099	4 471
Total equity		150 017	156 115
Non-current liabilities
Mortgage debt	4	119 561	127 249
Lease liability	5	127 754	73 646
Other non-current liabilities		2 769	3 060
Total non-current liabilities		250 084	203 955
Current liabilities
Mortgage debt	4	22 176	9 388
Lease liability	5	11 986	7 315
Other current liabilities		30 216	20 868
Total current liabilities		64 378	37 571
Total equity and liabilities		464 479	397 641