2020 BULKERS (2020) Company presentation summary

Investment highlights

• Capesize ton-mile growth reached 6.5% year-to-date, with a low orderbook at 7% and limited yard capacity before 2028.

• Fleet consists of 6 scrubber-fitted Newcastlemax vessels with an average age of 4.5 years.

• Market capitalization is approximately $285 million, with net debt around $93 million.

• 51 consecutive monthly distributions have returned 136% of paid-in capital to shareholders since the first vessel delivery.

• Net profit has been positive every quarter since August 2019, with an attractive cash breakeven of ~$11,800 per ship per day.

Market dynamics and outlook

• Drybulk sector shows the highest upside to historical highs and the lowest orderbook among major shipping segments.

• Capesize rates in 2024 are 100% above 2023, with Brazilian iron ore shipments up 7% and bauxite tonne-miles 13% above last year.

• Iron ore tonne-miles have increased as Brazil gains market share from Australia, and bauxite trade from Guinea continues to grow.

• Global steel output is estimated to grow 3.5% in 2024, with India showing 8% YoY growth and China expected to remain flat.

• Atlantic iron ore volumes are rising, requiring 50% of the current orderbook, with major capacity increases expected from Simandou and Vale.

Supply constraints and fleet productivity

• Drydock requirements will increase as over 10% of the fleet faces 15-year special surveys in 2025, impacting utilization by 3.2% from 2025-2027.

• Active shipyards are down 50% from peak, with limited yard capacity before 2028 and Newcastlemax pricing at $78-80 million.

• Fleet congestion is at the low end of the range, with discharge port congestion already priced in.