Pacific Basin Shipping Limited · HKEX:2343

Pacific Basin Shipping — Investor Day (June 2018)

85 slides from Pacific Basin Shipping's investor day presentation, Jun 26, 2018

1. Slide 1: Pacific Basin 2018 Investor Day

   2 Pacific Basin 2018 Investor Day 26 June 2018 Hong Kong oa

2. Slide 2: Agenda

   Agenda Time Topics Speaker 2.30pm-3.00pm Introduction Mats Berglund 3.00pm-3.45pm Technical Presentation: Jay Pillai Ship Management of PB Owned Fleet 3.45pm-4.00pm Office Tour and Coffee Break 4.00pm-4.45pm Market Presentation: Mats Berglund Steaming Towards Better Markets 4.45pm-5.30pm Chartering

3. Slide 3: Introduction - Mats Berglund, CEO

   Introduction - Mats Berglund, CEO 2018 Investor Day 2

4. Slide 4: Pacific Basin Overview

   Appendix: As in 2017 Annual Report Pacific Basin Overview Owned Fleet Hong Kong HQ Our Vision 200+ Handysize and 12 “To be a Supramax vessels leading ship owner/operator 106 Handysize & Supramax Global Offices 330+ Shore-based staff 3,400+ World’s largest owner and operator of in the dry bulk Bulk C

5. Slide 5: Understanding Our Core Market

   Appendix: As in 2017 Annual Report Understanding Our Core Market 2018 Investor Day 4

6. Slide 6: Our Business Model Continues to Outperform

   As in 1Q18 Trading Update Our Business Model Continues to Outperform Our business model has been refined over many Our TCE Outperformance Compared to Market years. We are able to generate a TCE earnings in Last 5 Years premium over market rates because of our high laden percentage (minimum ballast l

7. Slide 7: Freight Market Recovery Continues

   Freight Market Recovery Continues Handysize Market Spot Rates in 2016-2018 Supramax Market Spot Rates in 2016-2018 # US$/day net* US$/day net* 22 Jun 2018 12,000 12,000 $11,240 2017 22 Jun 2018 10,000 2017 10,000 $8,210 8,000 8,000 2016 2016 6,000 6,000 4,000 4,000 2,000 2,000 0 0 Jan Feb Mar Apr Ma

8. Slide 8: Improved Outlook Supports Vessel Values

   Improved Outlook Supports Vessel Values Handysize Vessel Values Supramax Vessel Values US$ Million US$ Million 80 60 70 50 60 40 50 Newbuilding (38,000 dwt): Newbuilding (62,000 dwt): US$23.5m 40 US$25.5m 30 30 20 20 10 10 5 years (32,000 dwt): US$16m 5 years (56,000 dwt): US$18m 0 0 04 05 06 07 08

9. Slide 9: PB Acquires Ships with 50% Equity Funding

   As at May 18 PB Acquires 4 Ships with 50% Equity Funding Acquisition of four attractive modern ships: Supramax Supramax Handysize Handysize Total built 2010 Resale built 2015 Resale newbuild newbuild Shipbuilder Tsuneishi Tsuneishi Imabari Imabari Dwt 58,000 64,000 37,000 37,000 Total consideration

10. Slide 10: Reasons for the Transaction

    As at May 18 Reasons for the Transaction  To grow and renew our fleet with modern, efficient ships of the best design for our trades at still historically low prices  To increase further the proportion of our owned vs. chartered-in vessels (especially Supramax) at what we consider to be an attract

11. Slide 11: New Regulations

    As in 2017 Annual Report New Regulations New Regulations Content Impact on the Industry PB actions IMO Ballast Water  International Maritime  Increased capex for existing shipowners  System selected, pending US Treatment - Organization (IMO)  Increased potential scrapping Coast Guard approval In

12. Slide 12: We Like Low Risk / High Return Vessels

    We Like Low Risk / High Return Vessels The beauty of age (if well kept and operated within PB’s cargo system….) New 5 yr 10 yr 15 yr TC In US$ 37 dwt 32 dwt 32 dwt 28 dwt TCE 10,600 10,000 10,000 9,100 10,600 Opex / TC in rate 3,600 4,000 4,100 4,200 10,500 Drydocking 500 600 650 700 - G&A 850 850 8

13. Slide 13: Vessel Speed Optimisation Example

    Vessel Speed Optimisation Example  Higher fuel oil prices allow freight rates to increase without increasing speed and hence supply Optimal MCR / Speed Matrix on Typical Handysize Ship (Japanese-built 32,000 dwt, all weather) TCE US$/day US$ 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,

14. Slide 14: Well Positioned for a Recovering Market

    As in 1Q18 Trading Update Well Positioned for a Recovering Market Our TCE More Owned Efficient Cost Sensitivity toward Outperforms Vessels with Structure Market Rates4 Market Fixed Costs Annual Group 106 G&A Overheads Market Rate Average PB premium 92 80 86 US$75.7m +/- over market indices in 75 US$

15. Slide 15: Ship Management of PB Owned Fleet - Jay Pillai

    Ship Management of PB Owned Fleet - Jay Pillai, Fleet Director 2018 Investor Day 14

16. Slide 16: Ship Management of PB Owned Fleet

    Ship Management of PB Owned Fleet Our vision: to be a leading ship owner/operator in dry bulk shipping, and to be the first choice partner for customers and other stakeholders Our mission: to be the best in our field by continuously refining our business model, our service and our conduct in everyth

17. Slide 17: Ship Management of PB Owned Fleet

    Ship Management of PB Owned Fleet 1) Overview of the Ship Management Function & Organization 2) Our Asset – Our People at Sea & on Shore 3) Industry leading Focus on Outcome 4) Environmentally friendly ships and Operation 5) Secondhand S&P Inspections and Newbuilding Evaluation & Supervision 6) Dry-

18. Slide 18: Overview of the Ship Management Function

    Overview of the Ship Management Function  In-house Ship Management Team in Hong Kong  crewing and training centers in Dalian & Manila  focus on safe & efficient operation of Owned Fleet  Technical and crew management of 107 ships  Pacific Basin Management System certified to HSEQ standards by L

19. Slide 19: Overview of the Ship Management Function

    Overview of the Ship Management Function  Pacific Basin Management System (cont.)  Focused on 3 crew pools  PRC  Philippines  FSU (Russia, Ukraine)  also some from Hong Kong and Bangladesh  with Officer Cadet program: 1~2 cadets per ship, healthy budget for training  Sector-leading Marine &

20. Slide 20: Organisation

    Organisation  106 technical staff ashore Chief Executive Officer  12 roving Fleet Training Director, Fleet Managers  4 DD Superintendents General Manager, Marine* (Designated Person General Manager, General Manager,  55 Technical Managers Technical* Ashore, Company Security Officer, Management F

21. Slide 21: Our Asset: Our People at Sea & on Shore

    Our Asset: Our People at Sea & on Shore  4+ Officer Training Seminars per year 2018 Investor Day 20 20

22. Slide 22: Technical Teams at Sea

    Technical Teams at Sea 3,500+ PB Seafarers Ships Handysize Supramax PRC Crew Filipino / FSU Crew 107 81 26 60 47 Standard No Electrical Officer UMS* Crew Size 20 19 17 No. of Ships 8 50 47 *UMS = Unattended Machinery Spaces Control systems in engine room are designed for “No watch-keeping in engine

23. Slide 23: Technical Teams at Sea

    Technical Teams at Sea Standard No Electrical Officer UMS Master 1 1 1 Navigating Officers 3 3 3 Chief Engineer 1 1 1 Engineer Officers 3 3 2 Electrical Officer 1 Deck Ratings 5 5 5 Engine Ratings 4 4 3 Catering Ratings 2 2 2 Total 20 19 17  Navigating Officers and Engineer Officers keep watch: 4 h

24. Slide 24: Technical Teams at Sea

    Technical Teams at Sea  Technical team ashore (106 staff) is the support team of technical teams at sea (3,400+ crew)  We strive to provide our colleagues at sea the best shore-based support and empower Master and Chief Engineer (on-board managers) and crew to Care for Ship and Cargo with passion

25. Slide 25: Talent Retention At Sea

    Talent Retention At Sea Career Progression from Sea to Shore  Cadet to Master/Chief Engineer, Ship Manager/Marine Manager/Training Manager, Fleet Manager/Risk Manager, Personnel Manager Leisure on Board  Indoor sports, games and fitness, entertainment equipment (eg TV, video & audio equipment, kar

26. Slide 26: Talent Retention At Sea

    Talent Retention At Sea Compassion & Family Welfare  Compassionate sign-off and repatriation worldwide for crew members with serious family or personal issues where reasonable (whether covered by P&I Insurance or not)  For Filipino crew  Dedicated Family Welfare Center in PB Manila handling PB se

27. Slide 27: Crew Retention

    86% Crew Retention 94% Officer Retention 79% Ratings Retention 2018 Investor Day 26

28. Slide 28: Stopping Unsafe Acts

    Stopping Unsafe Acts: 3W Risk Assessment for each task What can go wrong? 3W What factors can cause it to go wrong? A P What shall I do to prevent it going wrong? One-Man Errors, accidents, injuries Act Plan occur when people don’t:  do 3W Risk Assessments for each task Check Do C D  care for each

29. Slide 29: Stopping Unsafe Acts: Hazards

    Stopping Unsafe Acts: 3W Risk Assessment for each task  Our Safety Management  The goal is to minimise holes Hazards in our defenses so that Hazards System endeavours to develop layers of effective defences to hazards are stopped before protect against risks from incidents occur operations Hazards

30. Slide 30: Leadership – Speaking up with focus on outcome

    Leadership – Speaking up with focus on outcome 2018 Investor Day 29

31. Slide 31: Leadership in Dry Bulk Shipping

    Leadership in Dry Bulk Shipping Think Safe, Work Safe and Be Safe I take pride in my job and the great work I do for myself and my family My family awaits my safe return I will:  Stop & report unsafe acts & conditions  Correct my colleagues if I see them doing anything wrong  Maintain the ship an

32. Slide 32: Industry Leading Opex

    Industry Leading Opex  Crewing & messing  Repairs & maintenance 2017 Opex: $3,840/day  Insurance  Sundries & others  Saving of $66 per day in crew costs on 47 UMS ships from reduced manning of engineering crew  Policy to own reliable Japanese-built tonnage (or select PRC tonnage if built under

33. Slide 33: Industry Leading Ship Management Standards

    Industry Leading Ship Management Standards  0.82 is our best ever LTIF result 2018 Investor Day 32

34. Slide 34: Industry Leading Ship Management Standards

    Industry Leading Ship Management Standards  78% of our Port State Control inspections found zero regulatory deficiencies 2018 Investor Day 33

35. Slide 35: Award-winning Safety Culture & Performance

    Award-winning Safety Culture & Performance Top global & regional industry awards in Notable other awards in recent years 2017  Safety Award at Lloyd’s List Global Awards 2016  Lloyd’s List Global Awards 2017  Ship Operator Award at Lloyd’s List  Company of the Year Awards Asia 2015 and 2016  Be

36. Slide 36: Shipping Company of the Year (2017)

    Shipping Company of the Year (2017) 2018 Investor Day 35

37. Slide 37: Environmentally-friendly Ships and Operation

    Environmentally-friendly Ships and Operation 2018 Investor Day 36

38. Slide 38: Environmentally-friendly Features

    Environmentfally-friendly Features Use of exhaust gas to generate heating steam Garbage compactors facilitate easy storage of operational Advanced self-tuning autopilot systems garbage Teduce rudder movements and improve course-keeping to improve fuel efficiency Environmentally-friendly biodegradabl

39. Slide 39: Energy Efficiency Projects

    Energy Efficiency Projects  Optimise speed down to 30% engine load  minimises CO2 emissions and impact on environment  Enhance fleet performance with regular hull & machinery maintenance  Operational inputs at design stage to reduce dry docking and environmental impact  cargo holds, cargo gear,

40. Slide 40: Energy Efficiency Projects Eco Devices

    Energy Efficiency Projects Eco Devices  Non hub-vortex propeller  Prop-rudder transition bulb  Mewis duct + post-swirl  Propeller boss cap fins  Pre-duct  Silicon paint 2018 Investor Day 39

41. Slide 41: S&P Inspections and Newbuilding Support

    S&P Inspections and Newbuilding Support Secondhand Sale & Purchase  Technical support for PB’s discerning secondhand ship acquisition activity Newbuilding Support  Contracting support and newbuilding site supervision  PB built 15 Handysize ships to high standard at JNS shipyard in PRC  These shi

42. Slide 42: Dry-Docking Management

    Dry-Docking Management  Requirement: 2 dockings every 5 years (max. 36 months between dockings)  Intermediate Survey (IS) every 2.5 years  Vessels can skip IS if <12.5 yrs old and classed for “In Water Survey” or specially permitted by Class  Typical cost ≈ US$ 550K, 17 days (incl. repositioning

43. Slide 43: Dry-Dock Management

    Dry-Dock Management Shipyard &  All dockings in China as far as possible, or Turkey (when Atlantic trading) if not cost-efficient to position to Vendor China Selection  Concentrate on a few select shipyards to obtain pricing and service advantage. We use a selection of SOE and private shipyards fo

44. Slide 44: Projects – Ballast Water Management

    Projects – Ballast Water Management Ballast Water Management Convention  IMO’s BWMC in force since 8 September 2017. In July 2017, IMO agreed on a practical and pragmatic implementation schedule with a 2-year extension for installation of Ballast Water Treatment Systems from 8 September 2019 to 202

45. Slide 45: Statutory Legislation Landscape

    Statutory Legislation Landscape Energy Consumption – Monitoring, Reporting & Verification (MRV) EU’s MRV legislation effective 1 January 2018. We have developed an in-house solution rather than buy expensive market software. IMO’s MARPOL Annex VI fuel consumption data collection system in force 1 Ma

46. Slide 46: Future of Ship Safety

    Future of Ship Safety Recommendations from IMO symposium Future of Ship Safety  review regulatory regime to meet future needs and expectations  consider the pace of change and technological advancements  encourage safety culture that goes beyond mere compliance Support for Seafarers  focus on th

47. Slide 47: Promoting Careers at Sea

    Promoting Careers at Sea Let’s strive for safe ship operations and a clean environment To achieve this, we must make sea careers attractive and embrace regulations and technological innovations 2018 Investor Day 46

48. Slide 48: Steaming Towards Better Markets - Mats Berglund, CEO

    Steaming Towards Better Markets - Mats Berglund, CEO 2018 Investor Day 47

49. Slide 49: Reduced yard deliveries ahead

    Reduced yard deliveries ahead GOOD A regulatory curve ball is Scrapping already very low helpful to limit appetite with limited downside for newbuildings GOOD INTERESTING World cargo prospects are positive GOOD 48 With you 2018 forInvestor the longDay haul

50. Slide 50: Freight Market Earnings - Update

    Freight Market Earnings - Update 80,000 Supramax US$ / day earnings The market has improved since the 70,000 low point in early 2016 but it is far from what we can call ‘recovered’ 60,000 50,000 40,000 30,000 Now Low point Handysize early 2016 20,000 earnings 10,000 0 2007 2008 2009 2010 2011 2012 2

51. Slide 51: What can we say about the Supply Side?

    What can we say about the Supply Side?  Yard deliveries are reducing and we expect net fleet growth to slow from +3.0% last year to +2.1% this year and to 2.0% in 2019 – the lowest since the 1990s. Net fleet growth for 2020 and beyond is too much of an open book to forecast  Scrapping would normal

52. Slide 52: Long Term View on Net Fleet Growth Gives Us Reason to be Positive

    Long Term View on Net Fleet Growth Gives Us Reason to be Positive 20% Clarkson growth % of fleet 17.0% forecasts 2.1% & 2.0% for 2018 & 2019 - the 15% lowest since 1990s Net fleet growth 10% Deliveries 2017: Deliveries 38M dwt (4.8%) 5% 3.0% 2.6% 2.2 % 0% -5% Scrapping Scrapping 2017: 15M dwt (1.8%)

53. Slide 53: Clarkson’s Fleet Forecast by Sector

    Clarkson’s Fleet Forecast by Sector Shows Reduced Growth for Sub-cape Vessel Types Year-on-Year net fleet growth All BC Cape Pmax Smax Handy 2017 Actual Actual 3.0% 2.8% 2.7% 4.0% 1.9% Lower Same Lower Lower Lower 2018 F'cast 2.1% 2.8% 1.6% 1.7% 1.8% 2019 F'cast 2.0% 2.8% 1.7% 1.3% 1.4% Based on Cla

54. Slide 54: Contracting Picked Up in 2017 from Near Zero

    Contracting Picked Up in 2017 from Near Zero as Market Sentiment Improved Contracting (annualised % of fleet) 14% 12% Handy & Supra Pmax & Cape Tier II 10% contracting 8% 6% 4% Apr-18 2% 0% 2015 2016 2017 2018 2018 Investor Day 53 Source: Clarkson Research

55. Slide 55: Historically Low Handysize and Supramax Orderbook

    Historically Low Handysize and Supramax Orderbook Total Dry Bulk Orderbook Combined Orderbook: Handysize and Supramax Mil Dwt Mil Dwt 3.4% 2.8% 3.3% 30 28m 3.1% 8 7.7m 27m 26m 25 6 1.8% 1.8% 20 44% 4.9m 45% 4.9m 1.7% Shortfall 14m Shortfall 15 4 0.9% 1.0% 1.0% 2.6m 8m 2.7m 10 2 5 0 0 Scheduled Actua

56. Slide 56: Better Fundamentals for Handysize

    Better Fundamentals for Handysize Orderbook Average Over Over YTD Scrapping as as % of Age 20 Years 15 Years % of Existing Fleet Existing as at 1 Apr 2018 Fleet (annualised) Lower Handysize – 81m dwt orderbook (25,000-41,999 dwt) 6.2% 10 11% 17% 0.6% More Supramax – 195m dwt older 5.2% 9 7% 15% 0.4%

57. Slide 57: Pro-forma Orderbook vs Fleet Profile by Build-year

    Pro-forma Orderbook vs Fleet Profile by Build-year Mill dwt Due to slippage actual 120 Bulk carrier pro-forma orderbook deliveries per year will 80M dwt or 9.7% of the fleet.... be less than what the 100 pro-forma orderbook schedule indicates ....is equal to the trading fleet 80 built prior to Nov-2

58. Slide 58: Unprecedented Uncertainty on Design Front

    Unprecedented Uncertainty on Design Front  New design regulation: Deliveries after June 2020 will have to comply with new CSR regulation requiring a new more expensive design with greater steel input. Tier III main engines are more expensive. This means a higher NB cost for ships. Additional cost i

59. Slide 59: What can we say about the Demand Side?

    What can we say about the Demand Side?  The demand side in 2017 surprised on the upside with Clarkson‘s estimating +5.1% on tonne-mile basis led by coal & grain, but also minor bulks saw good expansion at the highest level since 2011  Total demand in 2018 is forecast by Clarkson to grow at a slowe

60. Slide 60: Long Term Demand Overview

    Long Term Demand Overview Demand development (t-mile basis) 16% 14% GFC rebound 12% Annual 10% 8% 5-yr average Fleet growth 2004 - 2015 6% 4% China 2% coal Fleet growth after 2015 0% -2% -4% Global Fin Crisis -6% 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 2018 Investor Day 59 Source: Clarkson Rese

61. Slide 61: 2018 Demand is Forecast to Grow 3.4% with Minor Bulks at +4.0%

    2018 Demand is Forecast to Grow 3.4% with Minor Bulks at +4.0% Annual change dry bulk Forecast demand Bn tonne-miles Less than 2017 for 2018 is 1,600 +5.1% but comfortably moderate 1395 above supply 1,400 285 1,200 +3.4% 969 1,000 296 +2.5% 800 322 Iron ore +3.9% 660 322 Coal +1.7% 600 88 285 102 Gr

62. Slide 62: 2018 Demand Forecast

    2018 Demand Forecast Key Drivers in so far in 2018 2018E Dry Bulk Trade Volumes  Broad based economic recovery seen through Million Tonnes YOY increased steel output, also outside China Iron Ore 1,520 3%  Increased Q1 coal trade, including long haul Coal 1,228 2% exports out of North America, and

63. Slide 63: Growth in Chinese Electricity Generation Drives Higher Consumption of Coal

    Growth in Chinese Electricity Generation Drives Higher Consumption of Coal 7500 Chinese electricity 7000 generation by source Chinese electricity generation grows 6500 Annualised Bill kwh 6000 5500 China continues to rely on thermal 5000 (coal) based generation to support 4500 its growth in electric

64. Slide 64: Simplistic Supply / Demand Balance Since 2015 with Forecast

    Simplistic Supply / Demand Balance Since 2015 with Forecast Demand % growth t-mile basis Some YoY % fleet growth improvement Bottoming Market is out tightening further In Good & low decline starting point for supply 3.0% 2.4% 2.2% 2.1% 2.0% 0.9% 2.5% 5.1% 3.4% 2015 2016 2017e 2018f 2019f Demand Supp

65. Slide 65: Summary

    Summary Finally the supply side is under control  Contracting has increased since last year but mainly for larger vessel types and design uncertainty is limiting owners’ appetite for new ordering  Scrapping is low and this is good as it can‘t decline much more Demand expectations for 2018 are mode

66. Slide 66: Beating the Market - Hideaki Arai

    Beating the Market - Hideaki Arai, General Manager, Handysize, Pacific 2018 Investor Day 65

67. Slide 67: Beating the market: Overview

    Beating the market: Overview Our Vision  Total global dry bulk trade volumes of 5.1B mt per annum  What choices have we made in the cargo segments and why? “To be a leading ship  Total global dry bulk fleet of 11,200 ships owner/operator  What choices have we made in the vessel sizes and why? in

68. Slide 68: Dry Bulk Trade Volumes

    Dry Bulk Trade Volumes Full Year 2017 Global Dry Bulk Trade (Volume) = 5.1 Billion Tonnes (+4% YOY) 29% 24% 10% 37% Iron Ore Coal Grain & Minor Bulk Soybean  Minor Bulks & Grain is 47% of total Dry Bulk demand  Pacific Basin focuses on these growing markets Why we choose this segment  More divers

69. Slide 69: Diverse Cargoes & Customers

    Diverse Cargoes & Customers  Diverse range of commodities reduces product risk  Diverse customers reduces counterparty risk Our cargo volumes in 2017: 2018 Investor Day 68

70. Slide 70: Minor Bulk Ships: our strategic focus

    Minor Bulk Ships: our strategic focus 2018 Investor Day 69

71. Slide 71: Fleet List – Apr 2018

    Fleet List – 30 Apr 2018 www.pacificbasin.com Customers > Our Fleet 108 Vessels 36 LT 85 ST 229 Total owned Chartered Chartered * Total Handysize 81 23 32 136 Supramax 26 12 53 91 Post- Panamax 1 1 0 2 * Average number of vessels operated in Apr 2018 Average age of core fleet: 8.2 years old 2018 Inv

72. Slide 72: Our Worldwide Network

    Our Worldwide Network Our People Close to our customers 12 local dry 24/7 bulk offices support  Strong local relationships with customers  Experienced commercial and operations staff around the world  Being local facilitates clear understanding of and response to customers’ needs and first-rate p

73. Slide 73: Our People

    Our People  Diverse backgrounds - 28 nationalities  Well established trainee program since 2008  Staff given global exposure  Emphasis on shipping as a career, not just a job  Preference for internal promotions and succession  Lateral hires at mid-management level bringing fresh knowledge, new

74. Slide 74: Key Trading Areas – Pacific

    Key Trading Areas – Pacific  Diverse trades reduce impact of geopolitical & trade pattern changes North East Asia Persian Gulf New Zealand North Pacific South East Asia Australia 2018 Investor Day 73

75. Slide 75: Key Trading Areas – Atlantic

    Key Trading Areas – Atlantic US Gulf Continent Mediterranean / Black Sea West Coast South America East Coast South America 2018 Investor Day 74

76. Slide 76: Optimising Cargo Systems

    Optimising Cargo Systems  A normal cargo system comprises 1 empty ballast leg + 1 laden fronthaul leg  By combining backhaul and fronthaul cargoes, we achieve higher utilisation and outperform the market (Baltic Exchange indices)  Operating activity also contributes to our outperformance 2018 Inv

77. Slide 77: Shipping Cycle Management

    Shipping Cycle Management 3) Long-term COA 2) Medium-term COA 4) Spot trade 1) Spot trade 5) Reduce spot exposure Shipping Market Cycle  General chartering strategy changes with the cycle  Getting it right requires anticipation, flexibility and action Source: Adapted from Marsoft, 2003, as cited i

78. Slide 78: Strategic Model

    Strategic Model MARKET-LEADING COMPREHENSIVE GLOBAL CUSTOMER FOCUS & SERVICE OFFICE NETWORK Priority to build and sustain long-term Integrated international service enhanced by customer relationships experienced commercial and technical staff around the world Solution-driven approach ensures accessi

79. Slide 79: Business Foundation

    Business Foundation Our People Our Record Our Fleet Trusted and Managed In-house Close to you transparent and Highly Versatile 12 local dry 24/7 Strong public Award winning Modern quality Low breakeven bulk offices support balance sheet and CSR policy and ships with the cost and track record environ

80. Slide 80: Q&A Session

    Q&A Session 2018 Investor Day 79

81. Slide 81: Forecasting Our Business - Peter Schulz, CFO

    Forecasting Our Business - Peter Schulz, CFO 2018 Investor Day 80

82. Slide 82: Our Key Disclosures

    Our Key Disclosures Costs (excl. G&A) TCE Revenue 2017 “Fixed” Vessels Vessel Days Costs/Day Handysize Supramax FY2017 FY2017 2017 31 Mar 2018 FY 2017 Owned 53,360 34,510 P.12 Handysize 80 28,410 $7,480 1) revenue days at revenue days at P.11 $8,320 $9,610 P.12 Supramax 25 7,800 $8,210 2) Q1 2018 LT

83. Slide 83: Forecasting Our Business

    Forecasting Our Business Handysize Excluding G&A Onerous Contracts • $20.3mn utilized in Vessel No. Revenue TCE/d TCE No. Vessel Cost/d Cost Contr. 2017 Type Days ($) ($m) Days ($) ($m) ($m) • $16.1mn utilization allocated to 2018 Owned 801) X 3602) X BHSI + PB prem.= (A) 801) X 365 = 7,4803) (B) (A

84. Slide 84: Earnings Sensitivity

    Understanding the Sensitivity Owned + 360 +/- Open days in Sensitivity LT chartered on-hire US$1,000/day next 12 mths +/- Key Assumptions fleet days market rate (excl. CoA cover) Underlying Profit • No change in ST Earnings TC-in profitability US$35-40m Total • No change in G&A • No change in Onerou

85. Slide 85: 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 — Investor Day (June 2018) on 6ix