Himalaya Shipping

Investor Presentation • Nov 15, 2023

Himalaya Shipping – Q3 2023 results presentation

15 November 2023

Forward looking statements

This results presentation and any related discussions contain forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements that do not reflect historical facts and may be identified by words such as "aim", "believe," "assuming," "anticipate," "could", "expect", "intend," "estimate," "forecast," "project," "likely to", "plan," "potential," "will," "may," "should," or other similar expressions and include statements about plans, objectives, goals, strategies, future events or performance, including outlook, prospects, contracts to acquire newbuilding vessels and associated financing agreements, statements about the benefits of our vessels, including the ability to bunker with LNG, LSFO, or HSFO, the terms of our charters, dry bulk industry trends and market outlook, including activity levels in the industry, expected trends, including trends in the global fleet, expected demand for and offer of vessels and utilization of the global fleet and our fleet, fleet growth, new orderings, the impact of an aging global fleet, expected trends regarding steel demand, expected limited supply growth of dry bulk vessels, expectations on demand, and other non-historical statements. These forward-looking statements are not statements of historical fact and are based upon current estimates, expectations, beliefs, and various assumptions, many of which are based, in turn, upon further assumptions, and a number of such assumptions are beyond our control and are difficult to predict. These statements involve significant risks, uncertainties, contingencies and factors that are difficult or impossible to predict and are beyond our control, and that may cause our actual results, performance or achievements to be materially different from what is expressed, implied or forecasted in such forward-looking statements. Numerous factors, risks and uncertainties that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed, implied or forecasted in the forward-looking statements include but are not limited to: general economic, political and business conditions; general dry bulk market conditions, including fluctuations in charter hire rates and vessel values; our ability to complete the purchase of the vessels we have agreed to acquire and on schedule; our ability to meet the conditions and covenants in our financing agreements;

changes in demand in the dry bulk shipping industry, including the market for our vessels; changes in the supply of dry bulk vessels; our ability to successfully employ our dry bulk vessels and the terms of future charters; changes in our operating expenses, including fuel or bunker prices, dry docking and insurance costs; changes in governmental regulation, tax and trade matters and actions taken by regulatory authorities; compliance with, and our liabilities under governmental, tax, environmental and safety laws and regulations; potential disruption of shipping routes due to accidents or political events; our ability to procure or have access to financing and to refinance our debt as it falls due; our continued borrowing availability under our sale and leaseback agreements in connection with our vessels and compliance with the financial covenants therein; fluctuations in foreign currency exchange rates; potential conflicts of interest involving members of our board and management and our significant shareholder; our ability to pay dividends; risks related to climate change, including climate-change or greenhouse gas related legislation or regulations and the impact on our business from climate-change related physical changes or changes in weather patterns, and the potential impact of new regulations relating to climate change, as well as the performance of our vessels; other factors that may affect our financial condition, liquidity and results of operations; and other risks described under "Risk Factors" in our registration statement on Form F-1/A filed with the U.S. Securities and Exchange Commission on March 30, 2023. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Himalaya Shipping undertakes no obligation to update publicly any forward-looking statements after the date of this press release whether as a result of new information, future events or otherwise, except as required by law.

Highlights

Q3 2023 Highlights:

• Successful delivery and commencement of operations of an additional two Newcastlemax dual fuel newbuildings. All delivered vessels generated total operating revenues of \$10.2 million, an average time charter equivalent earnings of approximately US\$22,300/day, gross.
• EBITDA of \$6.1 million for the quarter ended September 30, 2023.
• Final instalments for the two delivered vessels were financed by sale and leaseback facilities provided by wholly-owned subsidiaries of CCB Financial Leasing Co. Ltd. ("CCBFL") totalling \$98.6 million.
• Instalment payments on three newbuilding vessels totalling \$20.7 million financed by pre-delivery financing with CCBFL.
• Completed LNG bunkering of "Mount Norefjell" and "Mount Matterhorn" in July 2023.

Subsequent events:

• Secured time charter agreements for three vessels for 24 months' time charters with an evergreen structure commencing in the first half of 2024. These vessels will earn an index-linked rate plus premium plus scrubber benefits.
• Extended time charter for six vessels by an additional year, until the end of 2026.

Key Financials Q3 2023

Key Financials Q3 2023
Income statement		Comments
US\$ millions, except per share data	Q3 2023	• Operating revenues of \$10.2 million on six vessels. Average time
Operating revenues	10.2	charter equivalent earnings of approx. US\$22,300/day, gross.
Vessel operating expenses	(3.0)	• Vessel operating expenses of \$3.0 million. Average vessel
Voyage expenses and commission	(0.2)	operating expenses of approx. \$6,300 per day per vessel.
General and administrative expenses	(0.9)	• General and administrative expenses of \$0.9 million, including
Depreciation and amortization	(3.2)	\$0.1 million in share-based compensation, \$0.2 million in
Total operating expenses	(7.3)
Operating profit	2.9	net of interest capitalized.
Interest expense	(5.0)	• EBITDA of \$6.1 million
Other financial items	(0.1)
Total financial expense, net	(4.9)	• Operating profit of \$2.9 million
		• Net loss of \$2.0 million
Tax expense	-
Net loss	(2.0)
Loss per share	(0.05)

• Operating revenues of \$10.2 million on six vessels. Average time charter equivalent earnings of approx. US\$22,300/day, gross.
• Vessel operating expenses of \$3.0 million. Average vessel operating expenses of approx. \$6,300 per day per vessel.
• General and administrative expenses of \$0.9 million, including \$0.1 million in share-based compensation, \$0.2 million in management fees, and \$0.2 million of D&O insurance. • Interest expense of \$5.0 million on the sale & leaseback financing
• net of interest capitalized.
• EBITDA of \$6.1 million
• Operating profit of \$2.9 million
• Net loss of \$2.0 million

Key Financials Q3 2023

Key Financials Q3 2023
	Balance Sheet Summary		Comments
US\$ millions	September 30, 2023	June 30, 2023	• Net cash generated by operating activities of \$1.6 million. • Net cash used in investing activities was \$127.6 million, primarily consisting of \$103.1 million for the final installment payments for the two vessels delivered, and \$20.7 million for installment
Total assets	560.4	459.8	• Net cash provided by financing activities of \$114.5 million from
Total equity Cash and cash equivalents	132.6 12.8	134.4 24.2	drawdown on sale & leaseback financing of \$98.6 on delivery of vessels and pre-delivery financing of \$20.7 million on newbuilding installments;
Vessels and equipment	432.3	286.8	vessels.
Newbuildings	108.8	143.6	• End-Oct cash position of \$15.1 million.
Short-term and long-term debt	421.9	305.9

• Net cash generated by operating activities of \$1.6 million.
• Net cash used in investing activities was \$127.6 million, primarily consisting of \$103.1 million for the final installment payments for the two vessels delivered, and \$20.7 million for installment payments on the newbuilding vessels under construction
• Net cash provided by financing activities of \$114.5 million from drawdown on sale & leaseback financing of \$98.6 on delivery of vessels and pre-delivery financing of \$20.7 million on newbuilding installments; • Vessels and equipment increased as a result of delivery of two • Total remaining shipyard capex (inc scrubbers) of \$331.5 million.
• vessels.
• End-Oct cash position of \$15.1 million.
• Current committed sale lease-back financing of \$316.2 million.
• \$15 million available to draw-down under the RCF with Drew Holdings Ltd.

Strong growth in dry bulk demand

Strong growth in dry bulk demand Jan-Sep yoy change in tonne-miles by segment and commodity Million tonne-miles

Capesize market fundamentals should see more support going forward

Source: Clarksons Shipping Intelligence Network (https://sin.clarksons.net/)

A significant reduction in Capesize congestion has put pressure on freight rates

Decreases in speed have not been enough to counterweight the drop in congestion

Capesize freight rates have been very sensitive to a drop in congestion

IF stationary fleet in Q3.23=Q2.23, then Capesize freight rates would theoretically be 50% higher and average at 19.000 \$/day, instead of 12.500 \$/day.

IF stationary fleet in Q3.23=Q3.22, then Capesize freight rates would theoretically be 90% higher and average at 24.000 \$/day, instead of 12.500 \$/day.

Source: Clarksons Shipping Intelligence Network (https://sin.clarksons.net/)

The investment case

The right timing

Source: Clarksons Shipping Intelligence Network (https://sin.clarksons.net/)

The right timing

67% of Capesize vessels likely facing non-compliance by 2030 due to EEXI & CII Older vessels (non-eco) at risk

^1. Capesize including sub-categories Newcastlemax and VLOC 2. Capesize fleet defined as all vessels delivered since 1996 until year-end 2022. 3. Non-compliant illustrated by vessels delivered before 2008, facing non-compliance illustrated by vessels delivered after 2008 but before 2015, and vessels unaffected illustrated by vessels delivered after 2015. Source: Clarksons Shipping Intelligence Network (https://sin.clarksons.net/) as of January 26, 2023, and Company assumptions

…well positioned for EU ETS commencing 2024²

The right ships

Fuel flexibility unlocking premium potential vs. conventional vessels

Shipping is able to achieve in contracts entered into, including the variable scrubber earnings. Source: Clarksons Shipping Intelligence Network (https://sin.clarksons.net/) as of January 26, 2023, Bloomberg and Company estimates

14

The right financing

~ 14,000

basis Singapore bunkering for average October 2023 for a consumption of 10,000 tons per year with 75% benefit to the Shipowner. 5. 8 index-linked charters with a contracted premium to BCI 5TC of 42%. Source: Clarksons Shipping Intelligence Network (https://sin.clarksons.net/) as of January 26, 2023 and Company estimates

Summary