Pacific Basin Shipping Limited · HKEX:2343

Pacific Basin Shipping — H1 2022 Earnings Presentation

38 slides from Pacific Basin Shipping's earnings presentation, Jul 28, 2022

1. Slide 1: Interim Results 2022

   Interim Results 2022 28 July 2022

2. Slide 2: wi i

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3. Slide 3: Net profit of US$465.1 million, our best interim results ever

    Net profit of US$465.1 million, US$million 2022 1H 2021 1H our best interim results ever EBITDA 566.9 244.6 Underlying profit 457.5 150.4  Basic EPS of HK74.5 cents Net profit 465.1 160.1  48% return on equity US$million 2022 1H 2021  A significantly strengthened balance sheet with net cash of

4. Slide 4: Handysize and Supramax Market Spot Rates

   Handysize Market Spot Rates Supramax Market Spot Rates US$/day net* US$/day net* 40,000 40,000 35,000 35,000 30,000 30,000 25,000 25,000 25 July 2022 25 July 2022 $21,720 20,000 20,000 $18,670 15,000 15,000 10,000 10,000 5,000 5,000 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

5. Slide 5: Minor bulk, grain, coal and iron ore demand

   Mill tonnes Mill tonnes Demand driven by construction annualised Minor Bulk annualised Grain materials, aggregates, cement and clinker 2,200 700 2,100 650 Marginal benefit from spillover of 2,000 containerised commodities into 600 geared bulkers 1,900 1,800 550 Conflict in Ukraine impacting 1,700 50

6. Slide 6: Handysize and Supramax TCE rates in 1H22 were 83% and 85% higher

   Handysize Core Business TCE Supramax Core Business TCE US$/day net* US$/day net* 1H22 45,000 45,000 $33,840 1H22 40,000 40,000 $26,370 35,000 35,000 # $28,970 30,000 30,000 25,000 $23,690 # 25,000 85% of 20,000 81% 20,000 days of 15,000 days 15,000 10,000 10,000 5,000 5,000 - - 1Q21 2Q21 3Q21 4Q21 1

7. Slide 7: 1H22 Handysize and Supramax outperformance and operating activity margin

   Handysize Performance vs Index (BHSI)* Supramax Performance vs Index (BSI)* US$/Day net* US$/Day net* Under/Outperformance Under/Outperformance Trailing 12 months Trailing 12 months 8,610 7,790 5,460 3,260 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22

8. Slide 8: Handysize costs per day

   Opex Depreciation US$/Day Finance Cost 12,000 10,180 10,610 10,000 8,850 9,050 7,520 7,880 380 8,000 530 3,050 6,000 2,360 4,000 4,630 5,420 2,000 0 Owned Long-Term Chartered Blended Owned Long-Term Chartered Blended No. of Ships: 79 11 90 75 10 85  G&A per day for 1H2022 was US$1,210 for our owned

9. Slide 9: Supramax costs per day

   Opex Depreciation US$/Day Finance Cost 16,000 14,400 14,000 12,000 11,450 10,000 9,140 9,390 8,910 8,780 8,000 940 570 6,000 3,460 3,420 4,000 2,000 4,510 4,790 0 Owned Long-Term Chartered Blended Owned Long-Term Chartered Blended No. of Ships: 41 4 45 42 7 49  G&A per day for 1H2022 was US$1,210 f

10. Slide 10: 3RD DECK

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11. Slide 11: Income statement and owned vessel costs

    1H22 1H21 Owned vessel costs US$m 1H22 1H21 Revenue 1,722.8 1,142.0 Opex (112.6) (90.3) Voyage expenses (497.3) (429.8) Depreciation (71.3) (57.9) Finance (9.8) (15.0) Time-charter equivalent ("TCE") earnings 1,225.5 712.2 Owned vessel costs (193.7) (163.2) Charter costs Charter costs (532.2) (363.9

12. Slide 12: Operating cash inflow was US$486.0 million

    1 2 3 4 5 Operating cash inflow was 1 US$486.0 million, inclusive of all US$ Million long and short-term charter hire 1,200 payments. This compares with the US$203.9 million in the first half 1,000 +41 -368 2021 and US$813.1 million in the +486 full year 2021 800 2 Proceeds from the sale of 4 smalle

13. Slide 13: Balance sheet and capital allocation priorities

    1H22 2021  Strong operating cash flow and limited US$m capital expenditure has increased our available committed liquidity to PP&E 1,828.1 1,906.0 US$698.6 million and we are today US$68.9 million net cash positive Total assets 2,884.5 2,745.4  Capital allocation priorities Total borrowings 447.4

14. Slide 14: fd a)

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15. Slide 15: Global GDP slowing; demand outlook

     Global GDP slowing  IMF expects 3.2% in 2022 and 2.9% in 2023 – possible  The world will require substantial infrastructure recession in the US and Europe investments going forward – much of it driven by the green transition  Emerging markets affected by inflation and stronger US dollar  Geopo

16. Slide 16: Strong freight rates have not led to increased ordering

     Strong freight rates have not led to Dry Bulk Orderbook increased ordering in this cycle – new % of fleet 90% vessel ordering down 60% in 1H22 80% 70%  Decarbonisation leads to technological % of fleet 60% uncertainty and risks associated with 45% 50% useful life of traditional propulsion system

17. Slide 17: Supply development: Handysize / Supramax and overall dry bulk

    Handysize / Supramax Supply Development Overall Dry Bulk Supply Development % of Total Fleet % of Total Fleet 6% 6% 5% 5% 3.8% 4% 4% 3.6% 2.9% 2.9% 3% 3% 2.7% 2.7% 2% 2% 1% 1% 0.7% 0% 0% 0.3% -1% -1% -2% -2% -3% -3% 2020 2021 2022F 2023F 2020 2021 2022F 2023F Scrapping Forecast Scheduled Orderbook S

18. Slide 18: 3RD DECK

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19. Slide 19: Maintain and grow our position as the leading operator

     Maintain and grow our position as the leading  Supporting our teams to ensure we continue to minor bulk cargo-focused, integrated owner and deliver a quality service to our customers while operator servicing our customers’ transportation maximising our earnings in the current strong needs around

20. Slide 20: Carbon intensity and emission targets

    15 Carbon Intensity (EEOI) Grams of CO 2 per tonne-mile  Our ambition is for our ships to achieve an AER rating of “C” or better 10  From January 2023, IMO’s global EEXI and 10.1 Our previous EEOI IMO-aligned target CII regulations are expected to drive technical 5 Our new target of and operationa

21. Slide 21: Fleet ownership, sales and purchase activity

    Handysize Newbuilding and Second-hand Prices Change Sales & Purchase Activity YTD 2022 US$m 35 Vessel DWT Year MOA Delivery +30% Type Built 30 +93% Purchased 25 Ultramax 61,510 2010 Dec-2021 Jan 2022 +129% 20 Sold 15 +175% Handysize 28,433 2004 Feb-2022 Apr 2022 +207% 10 Handysize 28,488 2002 Mar-20

22. Slide 22: Outlook

     Our 1H 2022 average TCE earnings for Handysize and Supramax were 83% and 85% above 1H21 respectively, driven by favourable supply and demand fundamentals  Slowing global GDP growth, demand softness in China and the conflict in Ukraine are likely to slow demand in 2H 2022 compared to the first hal

23. Slide 23: Forward looking statements

    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, uncertainti

24. Slide 24: 3RD DECK

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25. Slide 25: 2022F and 2023F Dry Bulk Trade Volumes

    2022F Dry Bulk Trade Volumes YOY 2023F Dry Bulk Trade Volumes YOY Million Tonnes Coal 1,227 -0.4% Million Tonnes Coal 1,243 1.3% Iron Ore 1,521 0.3% Iron Ore 1,530 0.6% Total Major Bulk (Iron Ore + Coal) 2,748 0.0% Total Major Bulk (Iron Ore + Coal) 2,773 0.9% Bauxite / Alumina 184 7.0% Bauxite / Al

26. Slide 26: Asset heavy core business vs asset light operating activity

     Contract and spot cargoes  Spot cargoes  Owned and long-term chartered ships  Short-term ships carrying spot cargoes  Short-term ships carrying contract cargoes  Costs largely fixed and disclosed  Costs fluctuate with freight market  Key KPI = TCE per day  Key KPI = Margin per day  Signif

27. Slide 27: Our core business and operating activity

    Our “core business” is to optimally combine our owned and long-term chartered ships with multi-shipment contract cargos and spot cargoes to achieve the highest daily TCE earnings. Our core business also uses short-term chartered ships to carry contract cargoes to maximise the utilisation and TCE of

28. Slide 28: Earnings contribution and sensitivity

    Handysize contribution Core TCE1 x owned & LTC 2 revenue days + Blended cost x owned & LTC cost days 3 - = X Supramax contribution Core TCE1 x owned & LTC2 revenue days + Blended cost x owned & LTC cost days 3 - = X Operating Activity Operating margin x operating days X Capesize contribution X Total

29. Slide 29: Vessel days and long-term charter costs

    Days FY2021 1H2022 FY2021 1H2022 Core business revenue days 32,080 15,520 15,480 8,360  This table shows an analysis of – Owned revenue days 27,580 13,700 14,040 7,430 our vessel days in 1H2022 and – Long-term chartered days 4,500 1,820 1,440 930 FY2021 (1) Short-term core days 8,710 3,830 19,110 6

30. Slide 30: The dry bulk industry and our focus segments

    The dry bulk industry carries dry commodities and other non-containerised cargo. Large Capesize and Panamax vessels carry mainly iron ore, coal and grain. We specialise in the versatile, mid-size, geared Handysize and Supramax ships that carry a wide range of minor bulks and grains which offers sign

31. Slide 31: Fleet size segments and orderbook

    5.6% 13 14% 0.1% (10,000–40,000 dwt) 7.8% 11 9% 0.0% (40,000–70,000 dwt) 9.1% 11 13% 0.1% (70,000–100,000 dwt) 6.0% 10 2% 0.4% (100,000+ dwt) 7.2% 11 8% 0.2%

32. Slide 32: EEXI, CII and EU ETS regulations

     Adopted in June 2021, IMO rules will require existing ships to combine technical and operational measures to meet IMO’s 2030 GHG reduction targets  In July 2021, EU announced a number of environmental regulations affecting shipping  Technical design criteria  Some impact on PB ships EEXI  Vess

33. Slide 33: We operate one of the world's largest Handysize and Supramax fleets

     We operate one of the world’s largest fleets of interchangeable modern Handysize and Supramax ships, equipping us for efficient trading and reliable service any time and anywhere  Cargo system business model – outperforming market rates  Own 117 Handysize and Supramax vessels, with approximately

34. Slide 34: Our top 25 customers represent 32%

     More diverse customer, cargo and geographical exposure enables high utilization  A segment where scale and operational expertise make a difference  Better daily TCE earnings driven by a high laden-to-ballast ratio  Sound long-term demand expectations and modest fleet growth Our largest Our top

35. Slide 35: Business foundation: office locations

    235 APPENDIX: BUSINESS FOUNDATION 18 office locations 9, ae = 10. commercial offices —_ ao — # 4 technical & crewing offices ° Hong Kong ——- Our Hong Kong headquarters is home to commercial, technical, crewing and all central functions oO S J Melbourne | ° Middle East Africa 5% Australia & &india 9%

36. Slide 36: Diverse range of commodities reduces product risk

    Minerals 11% Agricultural Products & Related 29% Salt 5% +1pp 11% Grains & Agricultural Products 15% -4pp Sand & Gypsum 4% +1pp 9% Fertiliser 12% +3pp Soda Ash 2% - 29% Sugar 2% -2pp 13% 11% 32% Energy 13% Coal 8% +1pp Petcoke 4% +1pp 15% Construction Materials 31% Wood Pellets 1% - Cement & Cement

37. Slide 37: Vessels in operation

    118 Vessels 17 LT 135 105 240 ST Total owned Chartered Total Chartered Vessels in Operation Total Average Long-term Short-term Capacity Age Owned Chartered Sub-total Chartered1 Total (million dwt) Costs fluctuate with Owned Owned Substantially fixed costs market Handysize 75 10 85 30 115 2.6 12 Supr

38. Slide 38: Forward cargo cover for the rest of the year

    US$/Day (net) US$/Day (net) 35,000 35,000 $31,310 30,000 30,000 $28,970* $26,570 $26,120* 25,000 $23,690* 25,000 $22,610* $20,800 20,000 $18,440 20,000 81% 60% 85% 64% 76% 52% 81% 58% of of of 15,000 15,000 of of of of of days days days days days days days days 10,000 10,000 5,000 5,000 0 0 3Q21 2H2

Pacific Basin Shipping — H1 2022 Earnings Presentation on 6ix