Belships

Investor Presentation • May 8, 2024

COMPANY PRESENTATION | Q1 MAY 2024

Our business – Dry Bulk Shipowning and Operating

Highlights – Q1 2024

SIMPLIFYING THE BUSINESS AND 100 PER CENT PAYOUT

• EBITDA of USD 31.3m including USD 4.7m from Lighthouse Navigation
• Net result of USD 15.7m
• Declared dividend of NOK 0.60 per share 100 per cent pay out due to solid cash position
• TCE of USD 16 731 gross per day for owned fleet 29 per cent outperformance of BSI-58
• Prepaid USD 13.5m of bank debt increasing the number of debt free vessels to four
• 74 per cent of ship days in Q2 2024 are fixed at USD 16 700 gross per day
• 43 per cent of ship days in the next four quarters are fixed at USD 16 500 gross per day
• Cash breakeven for 2024 of about USD 10 900 per day per vessel
• Modern fleet of 40x Supra/Ultramax vessels including 10x newbuildings

Subsequent events

• Change in ownership in Lighthouse Navigation, allowing Belships to focus and simplify its investment in dry bulk operating
• Expanded newbuilding program with two new 64 000 dwt Ultramax bulk carriers which will be delivered in 2028
• Amended Loan Facility of USD 90m with reduced margin 195 bps

Average TCE	EBITDA
USD 16 731 per day	USD 31.3m
Net Result	Dividend
USD 15.7m	NOK 0.60 per share
Cash and Cash Equivalents	Interest Bearing Debt
USD 120.2m	USD 542.6m

New and Simplified Structure

30x Vessels on the water today......

......and 10x Newbuildings coming in 2024-2028

• Q4 2024

Q4 2025

Q4 2025 – Q1 2026

Q1 2026

H2 2026

H2 2026

H1 2027

Q2-Q3 2027

H1 2028 Q2-Q3 2028

• Japanese-built 64 000 dwt Ultramax represents the highest quality and efficiency available today
• Japanese lease financing with fixed costs
• 100% leverage No cash invested
• Cost of capital 6.5 per cent fixed rate all in
• 7 years duration with optional period up to 10 years
• Purchase options during the charter, all in USD
• No obligation to acquire any of the vessels
• A levered bet on a historically low order book

No cash invested, zero impact on dividend capacity during construction

Ultramax – Superior Risk/Reward

Average earnings per day last 7 years

Supramax: BSI58, Kamsarmax: BPI82, Capesize: BCI 5TC sourced: Baltic Exchange as of Apr 2024

Improving Markets, Strong Start to 2024

Current freight market - Spot and FFA

RATES – The Baltic Supramax Index (BSI-58) averaged 12 961 per day in Q1 2023 – and USD 15 268 per day for Ultramax vessels which typically earn a premium of about 15-20 per cent to a Supramax.

Sentiment improved as rates increased markedy in March which also lifted the forward expectations as observed in the FFA market.

Average earnings in the first quarter were high, despite the typical low seapon, in fact third highest in the last 15 years.

DEMAND – According to Fearnleys, shipment volumes in Q1 2024 were 272 million tonnes, marginally down from Q4. The highest growth (quarter-onquarter) was seen in iron ore (28 per cent), steels (27 per cent) and fertilizers (7.5 per cent). Minor bulks (-3.5 per cent) and coal (-4.5 per cent) contributed negatively, whilst grains grew slightly (2.7 per cent).

Overall volumes continue to grow (3.4 per cent year-on year) and shows that the demand side is stable and resilient.

Reduced capacity thru Panama Canal, and also Suez Canal due to Red Sea being a high-risk area, is adding to sailing distances, reducing tonnage capacity. This situation is expected to continue in the near term.

Spot rates are currently at very healthy levels. One year period rates at around USD 17 500 per day. If this market continues, we believe ship values may increase further.

Historically Low Orderbook – Newbuilding prices increasing

Lowest fleet growth in decades – Ageing fleet

ORDERBOOK/SUPPLY: The order book for Supra/Ultramax bulk carriers is about 8-9 per cent of the sailing fleet. About 35-40 ships are set sto deliver per quarter. Fleet growth has been around 3.5 per cent since Q2 2023. In 2025-2026, we are heading towards the lowest rate of supply growth, in decades.

NUMBERS: There are about 4 100 ships on the water today in the 45 – 65 000 dwt bracket. Only 1/3 of these are Ultramax vessels. The rest – are smaller, older and/or non-economical.

Even if newbuilding supply doubled it would take a decade to modernise the existing fleet – giving perspective on difficulties in scaling the adaptation of new fuels like ammonia/methanol.

Reduced amount of newbuildings coupled with very little scrapping/recycling has led to a consistantly ageing fleet (see graph left below).

NEWBUILDING PRICES: Ordering activity remains low, cost inflation and high demand from other shipping segments has reduced the available shipbuilding capacity. A Japanese Ultramax newbuilding would today cost about USD 39m with available delivery from 2028.

SECONDHAND VESSEL VALUES: Ship values have increased, 15 per cent YTD. Modern vessels are clearly higher in demand than older, less economical ships.

Significant de-risk: Highly Profitable Contract Coverage

Payouts since dividend policy Q2 2021

Creating value and returning it to shareholders

Solid Platform: Renewed and Simplified

The Newest Ultramax Fleet

No need for modernisation

Low Cost, Long Duration Financing

Fixed interest rates, unique optionality

Market Dynamics

Rising ship values, historically low supply-side

Dividend Visibility

Contract coverage and high cash position

Value

Discount to Net Asset Values and favourable risk/reward

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 7 May 2024 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

	Q1	Q1
USD 1 000	2024	2023	2023
Gross freight revenue Note	154 778	147 864	563 441
Voyage expenses	-42 762	-36 768	-139 085
Net freight revenue 2	112 016	111 096	424 356
Management fees	1 507	531	3 408
Operating income 2	113 522	111 627	427 764
Share of result from j/v and assoc. comp.	2 206	3 430	6 407
T/C hire expenses	-63 863	-51 731	-194 155
Ship operating expenses	-15 710	-14 335	-60 865
Operating expenses management companies	-3 674	-4 282	-16 306
General and administrative expenses	-1 185	-1 340	-5 233
Operating expenses	-82 227	-68 258	-270 152
EBITDA	31 295	43 369	157 612
Depreciation and amortisation	-10 629	-11 271	-45 738
Gain on sale of ships	0	0	316
Other gains/(-losses)	688	1 830	350
Operating result (EBIT)	21 354	33 928	112 539
Interest income	1 110	412	2 527
Interest expenses	-7 532	-8 472	-33 184
Other financial items	39	-553	2 065
Currency gains/(-losses)	-327	2 152	1 049
Net financial items	-6 710	-6 461	-27 543
Result before taxes	14 644	27 467	84 996
Taxes	1 011	-3 193	-7 562
Net result from continuing operations	15 655	24 274	77 434
Result from discontinuing operation 5	0	348	8 806
Net result for the period	15 655	24 622	86 240
Hereof majority interests	13 602	20 558	75 895
Hereof non-controlling interests	2 053	4 064	10 346
Earnings per share for continuing operations	0,06	0,10	0,31
Diluted earnings per share for continuing operations	0,06	0,09	0,30
Earnings per share	0,06	0,10	0,34
Diluted earnings per share	0,06	0,10	0,34

Consolidated statement of income Consolidated statement of financial position

		31 Mar	31 Mar	31 Dec
USD 1 000		2024	2023	2023
NON-CURRENT ASSETS	Note
Intangible assets		344	0	0
Ships	3	721 364	771 282	731 596
Property, Plant and Equipment		355	3 930	883
Investments in j/v and assoc. companies		7 622	14 936	9 934
Other non-current assets		1 098	1 080	2 956
Total non-current assets		730 783	791 228	745 370
CURRENT ASSETS
Bunker inventory		14 344	15 862	8 556
Current receivables		41 187	59 991	50 662
Cash and cash equivalents		120 176	127 691	128 276
Total current assets		175 706	203 544	187 495
Total assets		906 490	994 772	932 864
EQUITY AND LIABILITIES
Equity
Paid-in capital		131 936	140 402	141 736
Retained earnings		137 264	118 351	128 935
Non-controlling interests		37 863	33 699	34 890
Total equity		307 063	292 451	305 561
NON-CURRENT LIABILITIES
Deferred tax		5 287	3 146	6 537
Long-term interest-bearing debt	4	516 923	580 047	536 668
Other non-current liabilities		910	1 780	954
Total non-current liabilities		523 120	584 973	544 160
CURRENT LIABILITIES
Current portion of interest-bearing debt	4	25 660	30 022	26 735
Other current liabilities		50 647	87 326	56 409
Total current liabilities		76 307	117 348	83 144
Total equity and liabilities		906 490	994 772	932 864

Appendix: Uniform and Modern Fleet of 40 Bulk Carriers

Vessel	Built	DWT	Yard	Vessel	Built	DWT	Yard
NEWBUILD 10	2028	64 000	Japan	BELMOIRA	2020	61 000	Shin Kurushima
NEWBUILD 9	2028	64 000	Japan	BELFUJI	2020	63 000	Imabari
BELVICTORY	2027	64 000	Japan	BELNIKE	2020	63 000	Imabari
BELTEMPO	2027	64 000	Japan	BELTANGO	2020	64 000	Mitsui
BELROSSO	2026	64 000	Japan	BELFORTE	2019	64 000	Mitsui
BELAVANTI	2026	64 000	Japan	BELRAY	2019	61 000	Shin Kurushima
BELFUTURE	2026	64 000	Japan	BELNIPPON	2018	63 000	Imabari
BELFORTUNE	2025	64 000	Japan	BELAFONTE	2017	63 000	Imabari
BELFOX	2025	64 000	Japan	BELHAVEN	2017	63 000	Imabari
BELGRACE	2024	64 000	Japan	BELTIGER	2017	63 000	New Times
BELMONDO	2023	64 000	Imabari	BELISLAND	2016	61 000	Imabari
BELYAMATO	2022	64 000	Imabari	BELINDA	2016	63 000	Hantong
BELTOKYO	2021	64 000	Imabari	BELMONT	2016	63 000	Hantong
BELFORCE	2021	61 000	Dacks	BELATLANTIC	2016	63 000	Hantong
BELKNIGHT	2021	61 000	Dacks	BELLIGHT	2016	63 000	New Times
BELTRADER	2021	61 000	Dacks	BELFRIEND	2016	58 000	Tsuneishi
BELGUARDIAN	2021	61 000	Dacks	BELTIDE	2016	58 000	Tsuneishi
BELMAR	2021	64 000	Imabari	BELFOREST	2015	61 000	Imabari
BELFAST	2021	64 000	Imabari	BELHAWK	2015	61 000	Imabari
BELAJA	2020	61 000	Shin Kurushima	BELSOUTH	2015	63 000	Hantong