Pacific Basin Shipping Limited · HKEX:2343

Pacific Basin Shipping — LSE Asia Pacific Ship Finance Conference 2006

23 slides from Pacific Basin Shipping's conference presentation, Oct 19, 2006

  1. Slide 1: Presentation to LSE Asia Pacific Ship Finance Conference 2006

    Pacific Basin Presentation to LSE Asia Pacific Ship Finance Conference 2006 “Future prospects for owners in the Asia- Pacific region” Richard Hext, CEO 19 October 2006

  2. Slide 2: World Seaborne Dry Bulk Trade

    World Seaborne Dry Bulk Trade 2,750 World Seaborne Dry Bulk Trade (million tons) 2,645 2,557 2,453 2,500 2,291 2,169 2,250 2,097 2,039 2,000 1,911 1,897 1,895 1,816 1,750 million tonnes 1,500 1,250 1,000 750 500 250 - 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005E 2006E Iron Ore Coal Grains Baux

  3. Slide 3: Asia's Increasing Dominance

    Asia’s Increasing Dominance Regional share of seaborne trade in major bulks* (million tonnes) 1,800 Other 1,600 Asia 22% Europe 22% 1,400 24% 1,200 26% 25% 26% 27% 62% 1,000 61% 29% 27% 59% 57% 800 56% 55% 54% 53% 600 51% 400 200 20% 20% 20% 19% 18% 17% 17% 17% 16% - 1998 1999 2000 2001 2002 2003 20

  4. Slide 4: China's Steel Production

    China’s Steel Production China Steel Production 40 60% 35 50% 30 Metric Tonnes (millions) 40% % y-o-y grow th 25 30% 20 20% 15 10% 10 0% 5 -10% Oct-98 Jul-99 Apr-00 Jan-01 Oct-01 Jul-02 Apr-03 Jan-04 Oct-04 Jul-05 Apr-06 4 Source: IISI www.pacbasin.com 2343.HK

  5. Slide 5: Demand - China's Iron Ore Imports

    Demand - China’s Iron Ore Imports Mil Tons/ Month 2006 average: 27.5 30 28.6 2005 average :22.9 26.9 26.9 25.4 25 22.7 22.6 21.1 2004 average :17.3 20 19.0 16.9 17.8 2003 average :12.4 15.7 15 2002 average : 9.3 12.8 12.7 12.5 11.4 10.7 9.1 9.5 10 7.9 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

  6. Slide 6: Demand – China's Steel Exports

    Demand – China’s Steel Exports Mil Tons/ Month 4.5 2006 YTD average : 3.3 4.1 4.0 3.5 3.5 3.0 2005 average : 1.7 2.5 2.2 2004 average : 1.2 2.1 2.0 1.9 1.7 1.6 1.5 2003 average : 0.6 1.4 1.4 2002 average : 0.5 1.0 1.0 0.7 0.6 0.6 0.6 0.5 0.5 0.5 0.4 0.5 0.3 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q

  7. Slide 7: Demand – China's Cement Exports

    Demand – China’s Cement Exports Mil Tons/ Month 2006 YTD average : 3.0 3.5 3.3 3.0 2005 average :1.9 2.6 2.4 2.4 2.5 2.0 1.7 2004 average :0.6 1.5 2003 average :0.5 2002 average : 0.4 0.9 1.0 0.7 0.7 0.6 0.5 0.4 0.4 0.4 0.4 0.5 0.5 0.4 0.3 0.5 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q

  8. Slide 8: China's Growth Pattern – Steel Consumption

    China’s Growth Pattern – Steel Consumption Steel consumption per capita (tons) 1.0 0.9 China (from 1990) 0.8 Japan (from 1950) 0.7 Korea (from 1970) 0.6 0.5 0.4 0.3 0.2 0.1 0.0 0 5 10 15 20 25 30 Year 8 Source: UBS www.pacbasin.com 2343.HK

  9. Slide 9: China's Growth Pattern – Electricity Consumption

    China’s Growth Pattern – Electricity Consumption Electricity consumption per capita (MWh) 6000 5000 China (from 1990) Japan (from 1950) Korea (from 1970) 4000 3000 2000 1000 0 0 5 10 15 20 25 30 9 Year Source: UBS www.pacbasin.com 2343.HK

  10. Slide 10: China's Growth Pattern – Cement Consumption

    China’s Growth Pattern – Cement Consumption Cement consumption per capita (MWh) 1.6 1.4 China (from 1990) 1.2 Japan (from 1950) Korea (from 1970) 1.0 0.8 0.6 0.4 0.2 0.0 0 5 10 15 20 25 30 Year 10 Source: UBS www.pacbasin.com 2343.HK

  11. Slide 11: China's Growth Pattern – Motor Vehicles per capita

    China’s Growth Pattern – Motor Vehicles per capita Motor vehicles per capita 0.35 0.30 China (from 1990) Japan (from 1950) 0.25 Korea (from 1970) 0.20 0.15 0.10 0.05 0.00 0 5 10 15 20 25 30 Year 11 Source: UBS www.pacbasin.com 2343.HK

  12. Slide 12: World Fleet & Orderbook

    World Fleet & Orderbook October 06 % of Existing Fleet Existing Orderbook Tanker 359 123 34% Dry Bulk 75 21% 360 Container 123 59 48% Other types 105 27 26% 0 100 200 300 400 500 12 Mil dwt Source: Clarksons www.pacbasin.com 2343.HK

  13. Slide 13: Drybulk Fleet & Orderbook

    Drybulk Fleet & Orderbook October 2006 Orderbook Average Existing 2006 2007 2008+ Fleet (%) Age Panamax Capesize 117 5 9 22 30% 11.2 99 3 8 8 19% 11.5 Handysize Handymax 70 2 5 7 20% 11.4 11% 19.7 35 11 2 PB average vessel age = 6 years 32% of world handysize fleet > 25 years old 0 50 100 150 13 Mil

  14. Slide 14: Dry Bulk Scrapping

    Dry Bulk Scrapping Orderbook DWT million Fleet > 20 years 50 740% 45 40 34.1 35 30 25 115% 56% 452% 18.7 20 112% 13.7 15 10 6.2 4.2 5 0 Capesize Panamax Handymax Handysize Handysize 100K+ 60-100K 40-60K (10-40K) (25-35K) 14 Source: Clarksons www.pacbasin.com 2343.HK

  15. Slide 15: The Baltic Dry Index

    The Baltic Dry Index 7,000 6208 5681 6,000 5,000 4159 4,000 3,000 2622 2,000 1747 1,000 0 Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 05 06 06 06 06 15 www.pacbasin.com 2343.HK

  16. Slide 16: 1-Year Time Charter Rates

    1-Year Time Charter Rates $US/day Handysize Handymax Panamax Capesize 70,000 61,500 60,000 50,000 40,000 30,000 29,250 28,250 20,000 18,750 10,000 0 Jan-03 May-03 Sep-03 Jan-04 May-04 Sep-04 Jan-05 May-05 Sep-05 Jan-06 May-06 Sep-06 Source: Clarkson's 16 www.pacbasin.com 2343.HK

  17. Slide 17: Dry Bulk Carrier Sale & Purchase Market

    Dry Bulk Carrier Sale & Purchase Market Clarkson’s 5 year-old Secondhand Dry Bulk Vessel Price Index 250 Rebased price index (Jan 00 = 100) 225 200 175 150 125 100 75 Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- 00 00 01 01 02 02 03 03 04 04 05 05 06 06 17 www.pacbasin.com 2

  18. Slide 18: Pacific Basin Group Overview

    Pacific Basin Group Overview • World’s largest modern handysize vessel owner/operator • Established in 1987 as specialist in Asia Pacific region • Listed twice (NASDAQ 1994, HKEX 2004), privatized 1996 • Experienced management and personnel with proven track record in shipping (Swire, Jardines, Maer

  19. Slide 19: Our Fleet

    Our Fleet Number of vessels Handymax Handysize 80 Owned 72 Chartered 2 70 Managed 2 Newbuilding 14 60 Operating Lease 50 33 50 45 4 17 41 10 Finance 4 40 Operating Lease 7 Lease 17 27 30 17 9 Finance Lease 31 20 5 33 22 19 10 17 4 2 6 0 1 2 19 31 Dec 2003 31 Dec 2004 31 Dec 2005 October 2006 Deliver

  20. Slide 20: Cargoes Carried

    Cargoes Carried Log & Forest Fertilisers Products 10% 13% Grains 9% Steel & Scrap 6% Other 7.3mt Bulks* 27% Cement 12% Salt 4% Concentrates Petcoke Coal/Coke 7% 7% 5% Handysize 1H06 Cargo Volume *Includes Cement Clinker, Gypsum, Alumina, Sands, Soda Ash, Agriculture Products, Ore, Aggregates and oth

  21. Slide 21: What the brokers are saying…

    What the brokers are saying… Broker Analysts 12mth Target Recommendation 1 Lehman Thomas Kim HK$ 7.50 Overweight 2 Merrill Lynch Teddy Tsai HK$ 5.10 Buy 3 UBS Damien Horth HK$ 5.00 Buy 4 Fearnley Fonds Rikard Vabo HK$ 5.00 Buy 5 Evolution Neil Juggins HK$ 5.00 Buy Jane Guo 6 Goldman Sachs Jean-Louis

  22. Slide 22: Thank You

    Thank You This presentation will be available on www.pacbasin.com 22 www.pacbasin.com 2343.HK

  23. Slide 23: Disclaimer

    Disclaimer This presentation contains certain forward looking statements with respect to the financial condition, results of operations and business of Pacific Basin and certain plans and objectives of the management of Pacific Basin. Such forward looking statements involve known and unknown risks,

Pacific Basin Shipping — LSE Asia Pacific Ship Finance Conference 2006 on 6ix