Himalaya Shipping

Investor Presentation • Aug 8, 2023

Himalaya Shipping – H1 2023 result presentation

10 August 2023

Disclaimer and Important Information

THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THE SECURITIES REFERRED TO HEREIN IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION, EXEMPTION FROM REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY JURISDICTION. THIS PRESENTATION DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS MATERIAL TO AN INVESTOR. This presentation relating to Himalaya Shipping Ltd. and its subsidiaries (the "Company") has been prepared on a confidential basis, solely for use as an investor presentation, is provided for informational purposes only and for purposes of considering an opportunity to participate in a potential offering of its securities which is under consideration, and is to be maintained in strict confidence. You may not disclose any information contained herein to any other parties without the Company's prior express written consent. The following applies to this document, the oral presentation of the information in this document by the Company or any person on behalf of the Company, and any question-and-answer session that follows the oral presentation (collectively, the "Information"). This presentation is being made pursuant to Section 5(d) or Rule 163B of the Securities Act of 1933, as amended (the "Securities Act"), and is intended solely for entities that are qualified institutional buyers (as defined in Rule 144A under the Securities Act) or institutions that are institutional accredited investors (as defined in Rule 501 under the Securities Act) solely for the purposes of familiarizing such entities or institutions with the Company and for determining whether such investors might have an

interest in a potential securities offering contemplated by the Company. Any such offering of securities and any decision to purchase securities in any offering the Company may make in the future will only be made by means of a registration statement (including a prospectus and information thereunder) that may be filed in final form with the Securities and Exchange Commission (the "SEC") in relation to any proposed offering, after such registration statement becomes effective, and which would supersede this presentation and information contained herein in its entirety. No such registration statement has been publicly filed or become effective as of the date of this presentation and the Company is not currently making any offer to sell, or soliciting any offer to buy, securities, and cannot accept any orders for securities at this time. The securities of the Company have not been registered under the Securities Act or any other applicable securities law. THE COMPANY'S SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC OR ANY OTHER STATE SECURITIES COMMISSION OR ANY OTHER REGULATORY OR GOVERNMENTAL AUTHORITY IN THE UNITED STATES, NOR HAVE ANY OF THE FOREGOING PASSED UPON THE ACCURACY, TRUTHFULNESS, COMPLETENESS OR ADEQUACY OF THE INFORMATION PRESENTED IN THIS PRESENTATION. Any representation to the contrary is a criminal offense. Information provided in this presentation and the accompanying oral presentation speak only as of the date hereof. The information contained herein does not constitute an offer to subscribe to or a solicitation of an offer to subscribe to securities in any member state within EEA in which such offer or solicitation is unlawful, unless in reliance upon applicable EEA prospectus exceptions, whereby no EEA prospectus, registration or similar action would be required within EEA. The offering is not subject to and has not received approval from either the Bermuda Monetary Authority or the Registrar of Companies in Bermuda and no statement to the contrary, explicit or implicit, is authorized to be made in this regard. The shares being offered may be offered or sold in Bermuda only in compliance with the provisions of the Companies Act 1981, Investment Business Act 2003, Exchange Control Act 1972 and related regulations of Bermuda. The industry and market data contained in this presentation has come from official or third party sources as well as from the Company's own information, own internal research and estimates based on the knowledge and experience of the Company's management in the market in which it operates. Third party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. While the Company believes that each of these publications, studies and surveys has been prepared by a reputable source, the Company has not independently verified the data contained therein.

The Information contains forward-looking statements. All statements other than statements of historical fact included in the Information are forward-looking statements. Forward-looking statements give the Company's current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target," "believe," "expect," "intend," "may," "anticipate," "estimate," "plan," "project," "will," "aim," "can have," "likely," "should," "would," "could" and other words and terms of similar meaning or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the Company's actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which it will operate in the future. No representation, warranty or undertaking, express or implied, is made as to, the merits of any offering, the condition, financial or otherwise, of the Company, or any other matter relating thereto, and nothing herein shall be construed as a

recommendation to subscribe in any offering and no responsibility is or will be accepted by the Company, or by any of its respective affiliates or agents, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the Information or the opinions contained therein or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed. The Information has not been independently verified and will not be updated. The Information, including but not limited to forward-looking statements, applies only as of the date of this document and is not intended to give any assurances as to future results. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to the Information, including any financial data or forward-looking statements, and will not publicly release any revisions it may make to the Information that may result from any change in the Company's expectations, any change in events, conditions or circumstances on which these forward-looking statements are based, or other events or circumstances arising after the date of this document. The contents of this presentation shall not be construed as legal, business, or tax advice. Each reader of this presentation should consult its own legal, business or tax advisor as to legal, business or tax advice. If you are in doubt about the contents of this presentation, you should consult your stockbroker, bank managers, lawyer, accountant, or other professional adviser.

Highlights

1H 2023 Highlights:

• Completed Initial Public Offering ("IPO") in the U.S. in April 2023, raising net equity proceeds of \$44.9 million including the

• partial exercise of the Greenshoe option. Successful delivery and commencement of operations of four Newcastlemax dual fuel newbuildings, generating total operating revenues of \$8.2 million, an average time charter equivalent earnings of approximately US\$25,700/day, gross. Cash and cash equivalents of \$24.2 million at the end of the first half of 2023. EBITDA of \$4.2 million for the six months ended June 30, 2023. • Final installments of vessels delivered financed by sale and leaseback facility provided by wholly-owned subsidiaries of AVIC International Leasing Co. ("AVIC") totalling \$200.0 million. • Installment payments of five newbuilding vessels totalling \$48.0 million financed by pre-delivery financing with CCBFL and

• Jiangsu.

• Secured time charter agreements for two vessels for 22 to 26 months' time charter commencing between January and July 2024, plus an option for a further 11 to 13 months. Both vessels will earn an index-linked rate plus premium plus scrubber benefits. • Delivery of Mount Matterhorn in July 2023 and commencement of its 32-to-38 month index-linked time charter. • Completed LNG bunkering of "Mount Norefjell" and "Mount Matterhorn" in July 2023.

Subsequent events:

Key Financials 1H 2023

Key Financials 1H 2023
Income statement		Comments
US\$ millions, except per share data	1H 2023	• Net loss of \$1.1 million
Operating revenues	8.2	• Operating profit of \$1.8 million
Vessel operating expenses	(2.0)	• EBITDA of \$4.2 million
Voyage expenses and commission	(0.2)
General and administrative expenses	(1.8)	• Operating revenues of \$8.2 million on four vessels delivered.
Depreciation and amortization	(2.4)	Average time charter equivalent earnings of approx. US\$25,700/day, gross.
Total operating expenses	(6.4)
Operating profit	1.8	• Vessel operating expenses of \$2.0 million. Average vessel operating expenses of approx. \$6,200 per day per vessel.
Interest expense	(2.9)
Other financial items	(0.0)	million in share-based compensation, \$0.6 million in
Total financial expense, net	(2.9)	management fees including \$0.2 million of IPO expenses.
Tax expense	-	less interest capitalized.
Net loss	(1.1)
Loss per share	(0.03)

• Net loss of \$1.1 million
• Operating profit of \$1.8 million
• EBITDA of \$4.2 million
• Operating revenues of \$8.2 million on four vessels delivered. Average time charter equivalent earnings of approx. US\$25,700/day, gross.
• Vessel operating expenses of \$2.0 million. Average vessel operating expenses of approx. \$6,200 per day per vessel.
• General and administrative expenses of \$1.8 million, including \$0.1 million in share-based compensation, \$0.6 million in management fees including \$0.2 million of IPO expenses.
• Interest expense of \$2.9 million on the sale & leaseback financing less interest capitalized.

Key Financials 1H 2023

Key Financials 1H 2023
Balance Sheet Summary			Comments
US\$ millions	June 30, 2023	December 31, 2022	• Cash increased by \$19.9 million primarily as a result of:
			• Net cash provided by financing activities of \$284.0 million from
Total assets	459.8	177.8
Total equity	134.4	90.3	leaseback financing of \$200.0 on delivery of vessels and pre
Cash and cash equivalents	24.2	0.3	delivery financing of \$48.0 million on newbuilding installments;
Vessels and equipment	286.8	-	•
Newbuildings	143.6	176.1	Net cash used in operating activities of \$3.5 million, which includes settlement of fees under the Corporate Services
Short-term and long-term debt	305.9	67.5	Agreement of \$2.7 million and prepayment of interest and insurance of \$2.1 million and \$1.5 million, respectively.
			• Net cash used in investing activities of \$256.6 million mainly on the delivery of the four vessels and newbuilding installments.

• Cash increased by \$19.9 million primarily as a result of:
• Net cash provided by financing activities of \$284.0 million from net proceeds of \$44.9 million on the U.S. IPO, drawdown on sale & leaseback financing of \$200.0 on delivery of vessels and predelivery financing of \$48.0 million on newbuilding installments;
• Net cash used in operating activities of \$3.5 million, which includes settlement of fees under the Corporate Services Agreement of \$2.7 million and prepayment of interest and insurance of \$2.1 million and \$1.5 million, respectively.
• Net cash used in investing activities of \$256.6 million mainly on the delivery of the four vessels and newbuilding installments.
• Vessels and equipment increased as a result of delivery of four vessels.

The investment thesis

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

The right ships

Fleet overview

Fleet overview
	(\$m)	Yard	Size (DWTk)	Ship type	Estimated delivery date3
Mount Norefjell	70.2	NTS	210	DF Newcastlemax	Mar-23
Mount Ita	70.2	NTS	210	DF Newcastlemax	Mar-23
Mount Etna	70.2	NTS	210	DF Newcastlemax	Apr-23
Mount Blanc	70.2	NTS	210	DF Newcastlemax	Jun-23
Mount Matterhorn	72.1	NTS	210	DF Newcastlemax	Jul-23
Mount Neblina	72.1	NTS	210	DF Newcastlemax	Aug-23
Mount Bandeira	72.1	NTS	210	DF Newcastlemax	Jan-24
Mount Hua	72.1	NTS	210	DF Newcastlemax	Jan-24
Mount Elbrus	72.6	NTS	210	DF Newcastlemax	Jan-24
Mount Denali	72.6	NTS	210	DF Newcastlemax	May-24
Mount Aconcagua	72.6	NTS	210	DF Newcastlemax	Jul-24
					Jul-24

9 estimates

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

10

The right ships

LNG expected to be at a discount to VLSFO by 2026

\$/tonne, calorific value adjusted1,2

Himalaya ships bunkering LNG in July 2023

1. HSFO = high Sulphur fuel oil, VLSFO = very low Sulphur fuel oil 2. Calorific adjusted kj/kg 40,500 (HSFO), 41,200 (VLSFO), 50,000 (LNG). Data shown from December 2018 through February 2023 reflect spot prices for respective fuels, data shown from March 2023 onward reflect forward curves for respective fuels. 3. Implied scrubber-driven savings illustrated 27.4 tonnes/day consumption, 75% retention of scrubber premium by the Company. LNG-driven saving illustrated by 22.7 tonnes/day consumption for LNG and 27.4 tonnes/day consumption for VLSFO, and \$600/tonne VLSFO and \$600/tonne LNG and spread based on increasing VLSFO. Source: Bloomberg and Company assumptions

The right financing

~ 15,700

basis Singapore bunkering for average August 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

\$61k/day + 41% premium + \$4.8k/day scrubber benefit. Cash break-even of \$24.4k/day

Summary