Pacific Basin Shipping Limited · HKEX:2343

Pacific Basin Shipping — FY2014 Earnings Presentation

34 slides from Pacific Basin Shipping's earnings presentation, Feb 26, 2015

1. Slide 1: Pacific Basin 2014 Annual Results

   Pacific Basin 2014 Annual Results 26 Feb 2015

2. Slide 2: 2014 Annual Results – Group Highlights

   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 difficult market, our results w

3. Slide 3: Pacific Basin Dry Bulk – 2014 Performance

   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) Handymax Outperformed Market b

4. Slide 4: Pacific Basin Dry Bulk – Earnings Coverage

   Pacific Basin Dry Bulk – Earnings Coverage As at 23 Feb 2015 PB Dry Bulk Fleet Development Covered Uncovered Average number of vessels operated Handysize Handymax 2015: proportionally more owned ships: • better stability • lower cash breakeven Revenue Days • better service 218 213 2 56,210 days 22,4

5. Slide 5: Dry Bulk Market Information

   Dry Bulk Market Information  Freight market trended sharply down in 2014 – 63% fall in BDI over the year  Continued global oversupply of vessels  Regional demand-side weaknesses, less coal imports to China  Collapse in Atlantic rates in 2Q resulting from ships repositioning for S. American grain

6. Slide 6: Dry Bulk Demand

   Dry Bulk Demand Dry Bulk Effective Demand Chinese Minor Bulk Imports % change YOY 16 Million tonnes 30 12 25 9.2 20 8 6.7 15 4.1 4 Chinese imports decreased 12% YOY 10 (Increased 14% excl. nickel ore & bauxite) 0 5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -0.8 2014 2013 2012 2011 -4 These 7 c

7. Slide 7: Global Dry Bulk Fleet Development

   Global Dry Bulk Fleet Development net fleet growth Handysize Dry Bulk overall Dry Bulk New Ship Ordering 1H14 +1.9% +2.7% Per quarter annualised In % of fleet (dwt) 2H14 +0.7% +1.7% 30% 24% 2014 +2.7% +4.4% 25% Dry bulk net fleet growth: 20% 17% 15%  Driven by 48m tonnes of new capacity 10% 9%  Pa

8. Slide 8: Dry Bulk Orderbook

   Dry Bulk Orderbook Handysize Orderbook 456 vessels (16.8m dwt) m Dwt 10 12.5%  Current orderbook: 21% (Handysize: 23%) 9 8 31%  Deliveries expected to fall short of schedule 7 Shortfall 6 7.8%  Cancellations, delays, conversions will have larger effect on 2016 7.1m 5  New ship ordering lowest si

9. Slide 9: Pacific Basin Dry Bulk – Outlook

   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  Further reduction

10. Slide 10: PB Towage

    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$12.7m exchange loss (sale of harbour towage and our OMSA JV interest) EBITDA (6.0) US$million Net book lo

11. Slide 11: 2014 Annual Financial Highlights

    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 (loss)/gain Towage r

12. Slide 12: Pacific Basin Dry Bulk

    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) 18.2 1.0 19.2 66.1 -71% before overhea

13. Slide 13: Pacific Basin Dry Bulk

    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 28.5 51.9 -45% Handymax Revenue day

14. Slide 14: Daily Vessel Costs – Handysize

    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 US$8,750 (2013: US$8,480)

15. Slide 15: Daily Vessel Costs – Handymax

    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 2014-2015 11,810 12,000 18,000 10

16. Slide 16: Balance Sheet

    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 Net borrowings after tot

17. Slide 17: Borrowings and Capex

    Borrowings and Capex US$m 300 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 2015) Convertible bonds i) face value US$210 m

18. Slide 18: Cash Flow – 2014 Sources and Uses of Group Cash Flow

    Cash Flow – 2014 Sources and Uses of Group Cash Flow Operating cash flow US$94m Cash inflow Cash outflow EBITDA US$82m US$ Million 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 2014 • US$60m RoRo sale proceeds +48

19. Slide 19: Our Outlook and Strategy

    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 bulk supply not yet

20. Slide 20: 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,

21. Slide 21: 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

22. Slide 22: 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

23. Slide 23: Sustainability

    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) the environm

24. Slide 24: Pacific Basin Dry Bulk – Diversified Cargo

    Appendix: Pacific Basin Dry Bulk – Diversified Cargo Pacific Basin Cargo Volume 2014 Energy Agricultural Products and Related Coal 5% Petcoke 6% 12% Grains & Agriculture Products 20% Fertiliser 11% Wood Pellets 1% Sugar 3% Metals 34% 14% Alumina 3% Ores 5% Concentrates & Other Metals 6% 52.4 Million

25. Slide 25: Fleet List – Jan 2015

    Appendix: Fleet List – Jan 2015* Pacific Basin Dry Bulk Fleet: 250 average age of core fleet: 7.3 years old Owned Chartered Total Delivered Newbuilding Delivered¹ Newbuilding www.pacificbasin.com Fleet Details Handysize 64 12 93 12 181 Handymax 15 6 44 2 67 Post-Panamax 1 0 1 0 2 Total 80 18 138 14

26. Slide 26: Vessels Commitments

    Appendix: 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 2014 Annual Results 26

27. Slide 27: Vessel Operating Lease Commitments

    Appendix: Vessel Operating Lease Commitments As at 31 December 2014 77 2014 Annual Results 27

28. Slide 28: Vessel Operating Lease Commitments

    Appendix: Vessel Operating Lease Commitments As at 31 December 2014 77 2014 Annual Results 28

29. Slide 29: Historical Owned and Chartered-in Cost

    Appendix: Historical Owned and Chartered-in Cost 2014 Annual Results 29

30. Slide 30: 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

31. Slide 31: 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

32. Slide 32: Dry Bulk Fleet Profile

    Appendix: Dry Bulk Fleet Profile Age Profile of Handysize Vessel (25,000-39,999 Dwt) 2,256 vessels (73.4mil dwt) 11% 30+ years 25-29 years 13% 13% 0-15 years 7.2% 16-24 years 4.6% 11.2% 77.0% Source: Clarksons, as at 1 Feb 2015 2014 Annual Results 32

33. Slide 33: 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

34. Slide 34: China Dry Bulk Trade, Iron Ore & Coal Demand

    Appendix: China Dry Bulk Trade, Iron Ore & Coal Demand Chinese Dry Bulk Trade Volume China is a significant China Iron Ore Sourcing net importer of coal for Steel Production % of total dry Mil Tonnes Mil Tonnes Mil tonnes Bulk trade 1,400 2100 1,301 30% 400 1,200 1800 28% 350 327 300 292 1,000 933 1

Pacific Basin Shipping — FY2014 Earnings Presentation on 6ix