Pacific Basin Shipping Limited · HKEX:2343

Pacific Basin Shipping — DB Access Asia Conference 2015

40 slides from Pacific Basin Shipping's conference presentation, May 19, 2015

1. Slide 1: DB Access Asia Conference 2015

   DB Access Asia Conference 2015 19 May 2015 Singapore 24 April 2015

2. Slide 2: 2015 First Quarter Highlights

   2015 First Quarter Highlights Pacific Basin Dry Bulk  PB Handysize vessel earnings of US$8,100/day  outperformed weak first quarter spot market by 60%  We are managing our business for a continued weak market in the medium term  Currently operate 209 dry bulk ships of which 80 are owned, 40 are

3. Slide 3: Pacific Basin Dry Bulk – Earnings Coverage

   Pacific Basin Dry Bulk – Earnings Coverage Comparative data shows cargo cover secured as at 27 March 2015 vs. 7 April 2014 Cargo Contract Business Model – Currency: US$ Outperforming Market Rates Handysize Handymax • Large fleet of high-quality substitutable ships • High laden percentage 41,910 15,1

4. Slide 4: Dry Bulk Market Information

   Dry Bulk Market Information  Freight rates dropped to lowest since indices began in 1985 – average 1Q Handy rates down 45% YOY, but gradually improved since lunar new year albeit from a very low base  Newbuilding deliveries deferred from 2014 into Jan and Feb  Chinese lunar new year  seasonal de

5. Slide 5: Dry Bulk Demand

   Dry Bulk Demand Dry Bulk Effective Demand Chinese Imports of 7 Minor Bulks – % change YOY Reduced due to Indonesian Export Ban 16 12 9.2 8 6.7 4.1 4 0 -0.8 -4 04 05 06 07 08 09 10 11 12 13 14 1H14 2H14 International cargo volumes  2Q continues to be weak as sluggish demand fails to fully absorb ove

6. Slide 6: Global Dry Bulk Fleet Development

   Global Dry Bulk Fleet Development Dry Bulk Supply & Demand % change YOY net fleet growth Handysize Dry Bulk overall 18% 1Q15 +0.4% +0.7% Effective Demand 16% Supply YOY +1.8% +3.3% 14% 12% 10% 9% Dry bulk net fleet growth in 1Q15: 8% 7%  Reduced newbuilding deliveries (15m tonnes) 6% 4% 4% 4% 4% 

7. Slide 7: Dry Bulk Orderbook

   Dry Bulk Orderbook Handysize Orderbook 410 vessels (15.0m dwt) m Dwt 8 10.1%  Current orderbook: 20% (Handysize: 21%) 7  Deliveries expected to fall short of schedule 6 7.7%  Cancellations, delays, conversions will have larger effect on 2016 5 36% 4 3m Shortfall  New ship ordering lowest since 2

8. Slide 8: Dry Bulk Self-Correcting Factors

   Dry Bulk Self-Correcting Factors Increased Scrapping The Chinese Yard Sector is Shrinking What is going to happen to fleet growth in 2015? Source: Clarksons 1Q15 Trading Update 8

9. Slide 9: Pacific Basin Dry Bulk – Outlook

   As in Annual Report Pacific Basin Dry Bulk – Outlook Opportunities Threats  Growth in Chinese imports of minor bulks on re-  Low fuel prices causing a general increase in vessel stocking or economic stimulus operating speeds  increasing supply  Solid US economic growth stimulates global economy

10. Slide 10: 2014 Annual Financial Highlights

    As in Annual Report 2014 Annual Financial Highlights US$m 2014 2013 Segment net (loss)/profit (45.9) 36.0  Treasury - (4.4)  Discontinued Operations - RoRo (0.2) (0.5)  Non direct G&A (9.4) (15.5) Underlying (loss)/profit (55.5) 15.6  Sale of Harbour Towage and OMSA JV (7.6) -  Towage Exchange

11. Slide 11: 2014 Daily Vessel Costs – Handysize

    As in Annual Report 2014 Daily Vessel Costs – Handysize Finance cost Charter-hire : Short-term (ST) / Long-term (LT) Depreciation Charter-hire : Index-linked As at 31 December 2014 Opex Inward Charter Commitments Owned Chartered Days & rates Including finance lease vessels US$/day 2014-2015 Blended

12. Slide 12: 2014 Daily Vessel Costs – Handymax

    As in Annual Report 2014 Daily Vessel Costs – Handymax Finance cost Charter-hire : Short-term (ST) / Long-term (LT) Depreciation Charter-hire : Index-linked As at 31 December 2014 Opex Owned Chartered Inward Charter Commitments US$/Day Days & Rates Blended US$11,050 (2013: US$10,440) 14,000 2014-201

13. Slide 13: 2014 Balance Sheet

    As in Annual Report 2014 Balance Sheet PB PB US$m Dry Bulk Towage Treasury 31 Dec 14 31 Dec 13 Vessels & other fixed assets 1,539 42 - 1,585 1,622 Total assets 1,754 119 425 2,308 2,537 Total borrowings 1,000 - - 1,000 1,037 Total liabilities 1,237 13 9 1,306 1,233 Net assets 517 106 416 1,002 1,304

14. Slide 14: Borrowings and Capex

    As in Annual Report Borrowings and Capex US$m 300 As at 31 December 2014 Investors’ Put Option Maturity Oct 2016 Date 210* 200 190 179 124 109 96 100 86 84 79 68 62 62 56 - 2015 2016 2017 2018 2019 2020 2021 2022-2028 Bank borrowings (US$668 million) & finance lease liabilities (US$18 million due 20

15. Slide 15: Convertible Bonds Due 2021

    Convertible Bonds Due 2021 Issue size US$125 million Maturity Date 3 July 2021 (approx. 6 years) Investor Put Date and Price 3 July 2019 (approx. 4 years) at par Coupon 3.25% p.a. payable semi-annually in arrears on 3 January and 3 July Redemption Price 100% Initial Conversion Price HK$4.08 Intended

16. Slide 16: Cash Flow

    Cash Flow – As in Annual Report 2014 Sources and Uses of Group Cash Flow As at 31 December 2014 Operating cash flow US$94m Cash inflow Cash outflow EBITDA US$82m US$m 700 +13 2015 & 2016 cash flows +70 US$179m Funded by: 600 +94 borrowings • US$122m new bank borrowings due during 2015 drawn in late

17. Slide 17: Our Outlook and Strategy

    As in Annual Report Our Outlook and Strategy Dry Bulk Outlook  Poor start to 2015 - BDI fell to lowest since 1986, dysfunctional freight market in some regions  Expect weak market to continue in 2015 – taking a cautious view on freight earnings outlook  Reduced net fleet growth, but excessive dry

18. Slide 18: Capital & Management Now Fully Focused on Our World Leading Handy Dry Bulk Business

    Capital & Management Now Fully Focused on Our World Leading Handy Dry Bulk Business Start 2012 2015 Four business units Fully Dry Bulk Focused US$1.6 billion of long term assets US$2 billion of long term assets Including NB commitments ME Towage 18 Newbuildings Terminal, etc Towage Minor player No c

19. Slide 19: 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,

20. Slide 20: Pacific Basin Overview

    Appendix: Pacific Basin Overview  A leading dry bulk owner/operator of Handysize & Handymax dry bulk ships  Flexible Pacific Basin Dry Bulk business model  Large fleet of uniform, interchangeable, modern ships  Mix of owned and long-term, short-term chartered ships  Operating mainly on long ter

21. Slide 21: Strategic Model

    Appendix: Strategic Model OUR STRONG CORPORATE & OUR LARGE VERSITILE FLEET FINANCIAL PROFILE Striving for best-in-class internal and external Fleet scale and interchangeable high-quality dry reporting, transparency and corporate stewardship bulk ships facilitate service flexibility to Robust balance

22. Slide 22: Pacific Basin Dry Bulk – Diversified Cargo

    Appendix: Pacific Basin Dry Bulk – Diversified Cargo Pacific Basin Dry Bulk Cargo Volume 1 Jan - 25 Mar 2015 Energy Agricultural Products and Related Coal 7% Petcoke 4% Grains & Agriculture Products 20% Wood Pellets 2% 13% Fertiliser 9% Sugar 2% Metals 31% Alumina 3% 12% Ores 3% 11.7 Concentrates &

23. Slide 23: Fleet List – March 2015

    Appendix: Fleet List – 1 March 2015* Pacific Basin Dry Bulk Fleet: 237 average age of core fleet: 7.1 years old Owned Chartered Total Delivered Newbuilding Delivered¹ Newbuilding www.pacificbasin.com Fleet Details Handysize 64 12 85 8 169 Handymax 15 6 43 2 66 Post-Panamax 1 0 1 0 2 Total 80 18 129

24. Slide 24: Sustainability

    Appendix: Sustainability  Applying sustainable thinking in our decisions and the way we run our business  Creating long-term value through good corporate governance and CSR Corporate Social Responsibility (CSR)  Guided by strategic objectives on (i) workplace practices (primarily safety), (ii) th

25. Slide 25: 2014 Annual Results – Group Highlights

    Appendix: As in Annual Report 2014 Annual Results – Group Highlights Underlying Profit EBITDA 2014 2013 US$m US$m 15.6 118.2 Net (Loss) / Profit US$(285.0)m US$1.5m Cash Position US$363m US$486m 82.2 Net Gearing 40% 34% Dividend per Share HK¢5 (proposed) HK¢5 (55.5) 2013 2014 2013 2014  In a very d

26. Slide 26: Pacific Basin Dry Bulk – 2014 Performance

    Appendix: As in Annual Report Pacific Basin Dry Bulk – 2014 Performance Handysize Outperformed Market by: 28% US$ million 2014 Daily Earnings US$9,340 ↓2% YOY Dry Bulk net loss (30.0)  Handysize contribution 28.5 Daily Costs US$8,750 ↑3% YOY  Handymax contribution (14.8)  Direct overheads (49.2)

27. Slide 27: 2014 Pacific Basin Dry Bulk

    Appendix: As in Annual Report 2014 Pacific Basin Dry Bulk Dry Bulk 1H14 2H14 2014 2013 Change Handysize contribution (US$m) 26.2 2.3 28.5 51.9 -45% Handymax contribution (US$m) (10.7) (4.1) (14.8) 8.5 -274% Post-Panamax contribution (US$m) 2.7 2.8 5.5 5.7 -5% Segment operating performance (US$m) 18.

28. Slide 28: 2014 Pacific Basin Dry Bulk

    Appendix: As in Annual Report 2014 Pacific Basin Dry Bulk Handysize 1H14 2H14 2014 2013 Change Revenue days (days) 27,200 29,010 56,210 52,550 +7% TCE earnings (US$/day) 10,210 8,520 9,340 9,520 -2% Owned + chartered costs (US$/day) 9,120 8,400 8,750 8,480 -3% Handysize contribution (US$m) 26.2 2.3

29. Slide 29: Historical earnings

    Appendix: As in Annual Report Historical earnings www.pacificbasin.com Annual Report – Key Performance Indicators 1Q15 Trading Update 29

30. Slide 30: Vessel Operating Lease Commitments

    Appendix: As in Annual Report Vessel Operating Lease Commitments As at 31 December 2014 77 1Q15 Trading Update 30

31. Slide 31: Vessel Operating Lease Commitments

    Appendix: As in Annual Report Vessel Operating Lease Commitments As at 31 December 2014 77 1Q15 Trading Update 31

32. Slide 32: Vessels Commitments

    Appendix: As in Annual Report Vessels Commitments Total US$385m To be largely funded by US$m US$350m committed 200 190 Japanese export credit facility 60 150 109 100 23 86 130 52 50 7785 35 0 2015 2016 2017 Handysize x 12, US$250m Handymax x 6, US$135m 1Q15 Trading Update 32

33. Slide 33: Historical Owned and Chartered-in Cost

    Appendix: Historical Owned and Chartered-in Cost 1Q15 Trading Update 33

34. Slide 34: PB Towage

    Appendix: As in Annual Report PB Towage  Group results affected by: 2014 US$ million  US$70.5m non-cash impairments / provisions (incl. US$64m in 1H14) Towage net loss (15.1)  US$7.6m business disposal loss and related US$12.7m exchange loss (sale of harbour towage and our OMSA JV interest) EBITD

35. Slide 35: Convertible Bonds Due 2016

    Appendix: Convertible Bonds Due 2016 Issue size US$230 million (US$20.5m face value put back and repaid on 14 April 2014; Remaining: US$210m) Maturity Date 12 April 2016 (6 years) Investor Put Date and Price 12 April 2014 (4 years) at par Coupon 1.75% p.a. payable semi-annually in arrears on 12 Apri

36. Slide 36: Convertible Bonds Due 2018

    Appendix: Convertible Bonds Due 2018 Issue size US$123.8 million Maturity Date 22 October 2018 (6 years) Investor Put Date and Price 22 October 2016 (4 years) at par PB’s Call Option 1) Trading price for 30 consecutive days > 130% conversion price in effect 2) >90% of Bond converted / redeemed / pur

37. Slide 37: Convertible Bonds Due 2021

    Appendix: Convertible Bonds Due 2021 Issue size US$125 million Maturity Date 3 July 2021 (approx. 6 years) Investor Put Date and Price 3 July 2019 (approx. 4 years) at par Coupon 3.25% p.a. payable semi-annually in arrears on 3 January and 3 July Redemption Price 100% Initial Conversion Price HK$4.0

38. Slide 38: Dry Bulk Fleet Profile

    Appendix: Dry Bulk Fleet Profile Age Profile of Handysize Vessel (25,000-39,999 Dwt) 2,255 vessels (73.1mil dwt) 20% 18% 11% 30+ years 25-29 years 16% Total Drybulk 13% 13% 0-15 years 14% Year-on-Year Net 7% Fleet Growth (%) 16-24 years 13% 5% 11% 9% 11% 7% 77% 5% 4% 2% Lowest fleet growth since Mar

39. Slide 39: China at late-Industrialisation Stage

    Appendix: China at late-Industrialisation Stage Steel Consumption Per Capita Tons per Capital 1.0  China growth matches historical trend in Japan and Korea 0.9  Suggests strong growth in dry bulk 0.8 segment to remain for medium term 0.7  Similar trend for electricity and cement 0.6 0.5 0.4 0.3 0

40. Slide 40: China Dry Bulk Trade, Iron Ore & Coal Demand

    Appendix: China Dry Bulk Trade, Iron Ore & Coal Demand Chinese Dry Bulk Trade Volume China Coal Demand China Iron Ore Sourcing Mil Tonnes for Steel Production % of total dry Mil Tonnes Mil tonnes Bulk trade 1,400 1,301 2100 30% 1,253 400 1,200 1800 28% 350 292 1500 300 1,000 933 879 1200 250 192 800

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