SNC — Investor Presentation 2021

Aug 31, 2021

新 2021 興 航 Sincere Navigation Corporation 運 Company Presentation September 2021 新興航運股份有限公司 Sincere Navigation Corporation

Company Overview

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Key Facts

Sincere Navigation (”Sincere”), established in 1968, owns and operates 14 dry bulk and tanker vessels, with an average age of 11 years and about 2.7mn dwt.

Key Highlights:

• Anchored by multiple generations of shipping expertise and family heritage, Sincere traces its lineage back to Charles Eddie Hsu and the first “Chou Shan” vessel, launched in 1922.

• Actively engaged with the community and industry associations, the latest generation is represented by Jack Hsu, also has served as the Chairman of the Hong Kong Shipowners Association in year 2018 and 2019 .

• With Operations in Taipei, Hong Kong, Europe, and Vancouver, Sincere owns and operates a fleet of vessels with a strong focus on asset management and operational excellence.

• Balanced supply / demand dynamics for its core fleet of Capesize dry bulk vessels and incremental recovery of VLCC rates, is driving a recovery in profitability, supported by its moderate leverage and opportunities for asset acquisitions.

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Fleet Profile
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Kamsarmax
2 VLCC 3
VLCC
VLOC
VLOC 1 Capesize
Kamsarmax
Capesize 8
Total Fleet Tonnage & Mix
VLCC 33%
894,438 MT
Dry Bulk
VLCC
Dry Bulk 67%
1,816,539 MT
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新興航運股份有限公司 Sincere Navigation Corporation

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Company 2021 Overview 新興航運股份有限公司 Sincere Navigation Corporation

Sincere Navigation Fleet Summary

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Tankers Dry Bulk
Stable
Diligence
Improving
VLCC Capesize
• Placed in Tankers International Pool, to achieve • Carries major commodities, like iron ore, coal.
long‐term commercial management stability. • Flexible operations between spot and mid and
long‐term period markets.
Total Fleet Tonnage & Mix Dry bulk Fleet Mix (by tonnage)
Kamsarmax
VLCC 33% (2) 14% VLCC (3)22%
Deadweight
894,438 Dry VLCC
Tonnage MT Bulk VLOC
VLOC (1)
Capesize
VLCC 7%
Dry Bulk Kamsarmax
67%
Capesize
1,816,539
(8)57%
新興航運股份有限公司 Sincere Navigation Corporation MT 5
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Sincere Navigation Fleet (by # of vessels)

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Total Fleet: 14
Kamsarmax 14%
 VLCC (Tanker): 3 VLCC 22% VLCC
 VLOC: 1
VLOC
 Capesize: 8
VLOC Capesize
 Kamsarmax: 2 7%
Kamsarmax
Capesize 57%
新興航運股份有限公司 Sincere Navigation Corporation
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1968 Principles
 Established Sincere  Credibility, Decisiveness,
Navigation in Taiwan, a Diligence, Discretion, and
Services
leading dry bulk owner‐ Improvements.
operator.  Crude Oil  Taking advantage of
 Transportation
With more than 50 years of opportunities, while
management expertise, managing the volatility of
 Dry bulk
transporting goods for the business cycle.
Transportation
various industries such as
 Holding on to a spirit of
mining, steel, power and
 Ship Owner / stable and conservative
paper companies.
Operator
growth, developing a
sustainable marine
transportation business.
新興航運股份有限公司 Sincere Navigation Corporation
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1987 1968 Acquired Karson Navigation and Tai Hsing Navigation, and 2001 2021 Sincere Navigation 2004 reorganized with “Sincere A fleet of 14 ships was established Established wholly Navigation Corporation” as Established Haihu Maritime with about 2.7 million with one handysize owned subsidiary the surviving company Service (Shanghai) Co., Ltd. deadweight ton ship Heywood Limited 2006 1980 1989 Awarded by Forbes Reformed the Listed in Taiwan Magazine as one of company into stock exchange the “Best Under a one of the and established Billion” companies largest privately wholly owned in the Asia region. owned Capesize subsidiary Norley fleets Corporation Inc. 7 新興航運股份有限公司 Sincere Navigation Corporation

Industry Outlook 2021

新興航運股份有限公司 Sincere Navigation Corporation

2021 Tanker Market Positive / Negative Drivers

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Positive Drivers

Negative Factors

• Covid‐19 vaccine successfully developed to reduce the pandemic globally, increasing airline and traveling demand

• Expected slowdown in deliveries, to improve supply/demand balance.

• Gradual crude output recovery from OPEC after 2H 2021

• Covid‐19 Delta variant influence

• International conventions on environmental protection requirements

• Battery/Hybrid car reduce the petroleum requirement.

• VLCC completed the docking repairs (Scrubber installment etc) then entering spot tanker market at cut‐throat rates

新興航運股份有限公司 Sincere Navigation Corporation

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VLCC Market Dynamics

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OPEC Production & VLCC Earnings Tanker Spot Earnings

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Source: Clarkson SIN, 6 January, 2020

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VLCC Spot Earnings

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VLCC New Building

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2021 Dry Bulk Market Positive / Negative Drivers

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Positive Drivers

Negative Factors

• Covid‐19 vaccine successfully developed to reduce the pandemic globally and global economy is gradually recovering.

• U.S. Senate passed a bill of 1.2 trillion infrastructure spending plan.

• Congestion in Chinese and Australian ports.

• Stronger ton‐mile demand forecasted in 2021 supported by improving US‐China volumes in grains.

• Developing nations increasing coal demand from summer months

• Covid‐19 Delta variant influence.

• The politic war between China and Australia (China prohibit to import of coal, barley, wine, lobster from Australia.)

• International conventions on environmental protection requirements

• Environmental factors (shift to gas & renewables, air pollution control) driving EU and South Korea to decrease steam coal imports.

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Bulk Dry Market Freight Index trends and Spot Earning

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Baltic Capesize Index Trends Bulkcarrier Spot Earnings

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Capesize Spot Rates Earning

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Panamax Spot Earnings & Trip Charter Rates

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Source: Clarkson SIW, 3 January, 2020

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Supramax Trip Charter Rates

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Ca esize New Buildin p g

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Panamax Vessel New Buidlin g

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Hand max New Buildin y g

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Hand size New Buildin y g

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New Building Price

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Strategic 2021 Outlook 新興航運股份有限公司 Sincere Navigation Corporation

Evolution of a shipping asset

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Vessel Delivery
Delivered and enters operations
Exit Shipyard
Vessel sales are a core Strong Newbuilding
component of value relationships, enables
creation. Timing of asset high quality vessels.
sales for maximum returns.
Capture the essence of
what this product
achieves.
Dry Docking
Identify
Effective dry docking
Vessel type
management and a strong
and segment for
focus on asset Chartering
newbuilding
management Strong relationships with
first class charterers enables a mix of
period and spot charters.
新興航運股份有限公司 Sincere Navigation Corporation
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Business model focused on prudent asset management and cash flow generation

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• Average fleet age for SNC fleet is currently at 11 years, in‐line with the 11 years of the total bulk fleet average.

• New sectors continued to be evaluated for future investments.

 Prudent risk management is key approach to asset replacement.

 Continued commitment to a stable dividend policy and returns to our shareholders.

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Sincere Navigation Fleet

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2605.TW 新興航運 Sincere Navigation Corporation Investor Relation Contact Spokesperson: Ms. Kathy Chen sncad@snc.com.tw +886‐2‐2703‐7055

新興航運股份有限公司 Sincere Navigation Corporation