Company Presentation January 2017 1 About Scorpio Bulkers Scorpio - - PowerPoint PPT Presentation

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January 2017

Company Presentation

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• Scorpio Bulkers Inc. (“Scorpio” or the “Company”) is a NYSE-listed Marshall Islands

corporation, founded in March 2013 by the senior management team of the Scorpio Group

• Company currently owns 48 dry bulk ‘Eco’ vessels
• 28 Ultramax and 19 Kamsarmax delivered to date
• 1 Kamsarmax delivering in 2Q-2017
• Scorpio’s strategy is to:
• Own and operate the latest generation of fuel efficient drybulk vessels

purchased from quality shipyards

• Operate vessels in the spot market through the Scorpio Ultramax and Scorpio

Kamsarmax pools under short term or long term time charters

• Maintain a strong balance sheet in the current difficult operating environment
• Scorpio has access to Scorpio Group’s customer and supplier relationships as well as

technical, commercial and managerial expertise

About Scorpio Bulkers

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Experienced Management Team

Years in industry Prior experience Emanuele A. Lauro

Founder, Chairman, Director & Chief Executive Officer

Robert Bugbee

Founder, President and Director

Cameron Mackey

Chief Operating Officer

Hugh Baker

Chief Financial Officer 13 years 30 years 22 years 24 years

 Member of the Lolli-Ghetti family, involved in shipping since the 1950s  Joined Scorpio Group in 2003, part of senior management since 2004  Founder of several tanker pools including: Scorpio Aframax Tanker Pool, Panamax Tanker Pool and Handymax tanker pool  Degree in International Business from the European Business School in London 

• Mr. Bugbee, Co-Founder of Scorpio Bulkers, has served as President since July 2013, he also serves as

President and Director of Scorpio Tankers since its IPO in April 2010  Joined Scorpio Group in February 2009. Prior to joining Scorpio Group, Mr. Bugbee was a partner at Ospraie Management LLP, and held President, Executive Vice President, Chief Operating Officer positions in OMI Corporation  Holds an MBA from the Norwegian School of Economics (NHH) 

• Mr. Mackey has served as Chief Operating Officer of Scorpio Bulkers since July 2013, also serves as

Chief Operating Officer of Scorpio Tankers since its IPO in April 2010  Previous experience includes equity and commodity analyst at Ospraie Management LLC, Senior Vice President and in Business Development at OMI Corporation  M.B.A. from the Sloan School of Management at MIT, a B.S. from the Massachusetts Maritime Academy, B.A. from Princeton University and Master Mariner  Joined Scorpio in July 2012, initially focusing on business development in Scorpio Tankers before taking

• n role as CFO in Scorpio Bulkers in July 2013

 Previous experience as Managing Director of Evercore Partners in New York, Head of Shipping at HSH Nordbank in New York and Managing Director of ING Bank in London 

• Mr. Baker has a BA from the London School of Economics and a MSc in Shipping, Trade & Finance from

Cass Business School 

• Mr. Baker is a Fellow of the Institute of Chartered Shipbrokers

Filippo A. Lauro

Vice President 6 years

 Member of the Lolli-Ghetti family, involved in shipping since the 1950s  Joined Scorpio Group in 2010 as part of senior management  Founder of and held senior executive roles in several private companies both in his native Italy and abroad

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SALT’s Market Cap & Liquidity

Source: Fearnleys: January 16, 2017

SALT’s daily traded volume makes it the most liquid/traded listed dry bulk stock

$531 $451 $405 $318 $290 $306 $129 $39 $- $1 $2 $3 $4 $5 $6 $- $100 $200 $300 $400 $500 $600 Golden Ocean Group Scorpio Bulkers Star Bulk Carriers Diana Shipping Eagle Bulk Genco Safe Bulkers Seanergy Maritime (Millions $USD) Liquidity ($m pd)

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Scorpio Pools Have Outperformed Market Indices

* 95% of the Clarksons Average of the 6/TC Routes for Baltic Supramax Index & 4/T/C Routes for Baltic Panamax Index $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Scorpio Kamsarmax Pool Performance Baltic Panamax Index* $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Scorpio Ultramax Pool Performance Baltic Supramax Index*

6 Dec-2014 Sold 1 Kamsarmax NB for ~ $31m

2H 14

Nov-2014 $150m equity private placement

• ffering

Dec-2014 Modified 6 Capesize NBs for LR2 NBs. Agreed to sell 4 LR2 to Scorpio Tankers Inc for $204m Feb-2015 Modified 3 existing Capesize NB contracts for construction of 3 LR1 product tankers Apr-2015 Sold 1 Kamsarmax and 3 Capesize NBs as well as 3 LR1 NBs for ~$290m Apr-2015 Sold 2 Capesize NBs and 1 Ultramax NB for ~ $111m Sep-2014 Raised $65m 7.5%

• Sr. Unsecured

Notes due 2019 Oct-2014 UW option exercised, raised

• add. $8.6m 7.5% Sr.

Unsecured Notes Jun-2015 Sold 3 Capesize NBs and 2 LR2 product tankers for ~ $236m Jun-2015 $200m public offering

• f common shares +

$30m greenshoe exercise a week later

Capital raises Other Vessel sales

Company Timeline: Raise and Preserve Liquidity (1/2)

Sep-2015/Oct-2015 Interest Coverage Ratio covenant waived/amended through 4Q 2017 Nov-2015 Sold 2 Capesize and 4 Capesize NBs for ~$227m

1H 15 2H 15

Dec-2015 Sold 5 Capesize for ~$167m

Dec-2015 Executed a one-for- twelve reverse stock split to facilitate further equity issuance and ensure NYSE compliance

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Company Timeline: Raise and Preserve Liquidity (2/2)

Capital raises Other Vessel sales

2H 16

Feb-2016 Agreement reached to defer delivery of 8 newbuildings by

• ca. 6 months per

vessel Feb-2016 Termination of 4 TC-In contracts for $10 million Mar-2016 $63m public

• ffering of

common shares Apr-2016 Agreement to cancel a Kamsarmax newbuilding

1H 16

Feb-2016 Reached agreement with lenders to: (i) prepay $41.2m in exchange for deferment of principal payments of $67.9m and (ii) reduce minimum liquidity clause to >$25m and $700k per vessel May-2016 Reached agreement with lenders to: (i) amend the "interest coverage ratio" covenant under the relevant credit facilities, and (ii) reduce the "value-to-loan ratio" covenant under all of its credit facilities Jun-2016 $70m public

• ffering of

common shares Sep-Dec 2016 Reached agreements to: (i) receive a reduction in delivery price on 8 vessels by $18m in aggregate, (ii) defer delivery of 6 newbuildings by

• ca. 2-3 months per vessel, and (iii)

eliminate management fees payable upon any future vessel purchases/disposals and reduce notice period upon vessel disposal Oct-2016 Reached agreement with lenders to: (i) prepay $24.4m in exchange for deferment of principal payments of $48.8m and (ii) amend the "interest coverage ratio" covenant under the relevant credit facilities

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Vessel Type Duration (Months) Daily Rate

SBI Bravo Ultramax 4 – 7 $7,500 SBI Zeus Ultramax 7 – 9 $7,300 MV Geneva Queen Kamsarmax 7 – 10 $6,500 SBI Bolero Kamsarmax 5 – 8 $8,000 SBI Electra Kamsarmax 5 – 8 $8,000 SBI Lyra Ultramax 5 – 8 $9,500 SBI Poseidon Ultramax 5 – 7 $8,750 SBI Antares Ultramax 5 – 7 $8,900 SBI Cronos Ultramax 5 $9,000 SBI Capoeira Kamsarmax 5 – 7 $9,350 SBI Thalia Ultramax 5 – 8 $7,350 SBI Reggae Kamsarmax 5 – 8 $9,500 SBI Athena Ultramax 4 – 6 $10,000 SBI Echo Ultramax 4 – 6 $10,000 SBI Leo Ultramax 5 – 7 $9,000 SBI Cakewalk Kamsarmax 5 – 8 $9,000 SBI Achilles Ultramax 6 – 8 $11,000

Recent Charter Employment

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Remaining Capex & Delivery Obligations

• Includes recent agreement to reduce price / defer deliveries of recent newbuildings

Vessel Type Country Built Delivery Date Q2-17 Total Installments Extra Costs* Total Remaining Capex SBI Jive * Kamsarmax China Q2-17 16.6 16.6 0.1 16.7 * Extra costs refer to equipment and other technical upgrades Installments 16.6 Extra Costs* 0.1 Total CapEx $16.7

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Projected Quarterly Principal Repayment Schedule 2017 – 2019

($ in millions)

$1.0 $2.7 $6.1 $6.1 $6.1 $6.1 $6.1 $6.3 $6.3 $6.3 $6.3 $6.3 $- $5.0 $10.0 $15.0 $20.0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19

Year Principal Repayments 2017 $16.0m 2018 $24.7m 2019 $25.3m Total $66.0m

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• We are currently in compliance with all Value-to-Loan covenants

Collateral Maintenance Ratio – VTL Analysis

Secured Credit Facilities # of delivered vessels VTL Compliance (1) VTL Ratio VTL Test Compliance 20 165% 140% PASS 15 180% 140% PASS 4 203% 115% PASS 3 182% 140% PASS 2 237% 140% PASS 2 194% 140% PASS 1 212% 140% PASS

Total

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(1) Includes the three recent drawdowns in January 2017, and based on loan amount outstanding as of December 31, 2016 and vessel values from Arrow as of December 31, 2016

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Coal/iron ore Iron ore/coal Iron ore/coal Handysize 10,000 – 40,000 40,000 – 60,000 60,000 – 80,000 Steel/fertilizers/forest/grains/soybeans/ alumina/coal/other minor bulks Steel/fertilizers/forest/grains/soybeans/ alumina/coal/other minor bulks Coal/grains/soybeans/bauxite

Vessel type DWT Cargo carried

Handymax/Supramax Panamax/Kamsarmax Post-Panamax Capesize VLOC 80,000 – 110,000 110,000 – 200,000 Over 200,000

Overview of Dry Bulk Segments

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Overview of Dry Bulk Commodity Cargoes

• Iron ore: primary ingredient in the

production of steel, along with limestone & coking coal and is the largest single commodity shipped on dry bulk vessels.

• Coal: seaborne coal trade is comprised of

two different types of coal; steam coal (which is used for electricity generation and industrial uses), and coking coal (which is the key ingredient for steel making).

• Grains: consists primarily of wheat, coarse

grains (such as corn, barley, oats, and rye) and soya bean/meal.

• Minor bulks: include several other dry bulk

goods such as phosphate rock, fertilizers, bauxite, steel products, forest products, nickel, ore, sugar, salt, and others. Breakdown of Major Bulks Breakdown of Minor Bulks Breakdown of Major Bulks

Minor Bulks 38% Iron ore 29% Grains 10% Coal 23% Total Sugar 3% Total Agribulks 9% Fertiliser 8% Metals and Minerals 40% Manufactures 40%

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One Year Time Charter Rates

Source: Clarksons Research Services, November 2016

Time charter rates and BDI have recovered from record low in February 2016

Historical Data 2002-2016 Class/Index Current Avg Max Min Ultramax $7,900 $18,928 $66,300 $4,875 Panamax/Kamsarmax $9,070 $21,388 $79,375 $5,363 Baltic Dry Index 1,050 2,657 10,844 307

2,000 4,000 6,000 8,000 10,000 12,000 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16

Balticx Dry Index ($/Day)

Ultramax Panamax/Kamsarmax BDI

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$0 $10 $20 $30 $40 $50 $60 $70 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16

($ Millions)

Panamax/Kamsarmax Ultramax

Dry Bulk Asset Values

Q1-2002

Ultramax: $18.3 Kamsarmax: $20.5

Q3-2008

Ultramax: $48.0 Kamsarmax: $53.7

Dec-2016

Ultramax: $22.25 Kamsarmax: $24.5

Avg 2001-2016

Ultramax: $28.8 Kamsarmax: $32.4

Source: Clarksons Research Services, January 2016

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Dry Bulk Seaborne Demand

3,428 3,854 4,101 4,340 4,585 4,821 4,818 4,885 1,000 2,000 3,000 4,000 5,000 2009 2010 2011 2012 2013 2014 2015 2016

Million MT

Iron Ore Coal Grains Minor Bulks Source: Clarksons Research Services, January 2016

2009-2016 Iron Ore Coal Grains Minor Bulks Total Dry Bulk CAGR 6.6% 4.7% 5.6% 4.2% 5.1%

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Ton Mile Demand

Iron Ore Grain Total Dry Bulk

Ton Miles (Billions)

Coal

Ton Miles (Billions) Ton Miles (Billions) Source: Clarksons Research Services, January 2016 5,365 5,852 6,336 6,718 6,931 7,544 7,575 8,035 6,359 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2009 2010 2011 2012 2013 2014 2015 2016 (e) 2017 (f) 3,440 4,047 4,315 4,833 5,032 5,222 4,936 4,903 4,910 1,000 2,000 3,000 4,000 5,000 6,000 2009 2010 2011 2012 2013 2014 2015 2016 (e)2017 (f) 2,221 2,460 2,404 2,594 2,794 3,002 3,292 3,376 3,512 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2009 2010 2011 2012 2013 2014 2015 2016 (e) 2017 (f) 18,611 21,098 22,435 23,768 24,932 26,327 26,557 27,133 27,735 5,000 10,000 15,000 20,000 25,000 30,000 2009 2010 2011 2012 2013 2014 2015 2016 (e) 2017 (f)

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Dry Bulk Fleet Growth Before Scrapping

. Assumes no slippage, cancellation or scrapping Includes 30 VLOC Newbuildings on order Clarksons Research Services, January 2016 111.0 127.9 139.7 145.2 205.3 212.5 212.9 212.9 196.5 212.4 215.0 215.2 188.8 210.8 212.8 213.4 93.9 102.1 103.6 104.3

795.6 865.8 884.0 891.0 200 400 600 800 1000 Current 2017 2018 2019 DWT (Millions) VLOC Capesize Panamax Handymax Handysize

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Bulker Fleet Age Profile

Source: Clarksons Research Services, December 2016 39% 41% 40% 21% 39% 26% 32% 25% 12% 14% 12% 9% 5% 12% 8% 10% 6% 6% 7% 14% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Capesize Panamax Handymax Handysize 0-5 yrs 5-9 yrs 10-14 yrs 15-29 yrs >20 yrs

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Scrapping Increasing, Average Age Scrapped Decreasing

Source: Clarksons Research Services, December 2016

Scrapped (mDWT) Avg Age 2014 16.3 27.3 2015 30.5 25.2 2016 28.9 23.3

8.2 6.1 4.2 0.4 1.0 1.8 0.5 5.6 10.6 6.5 23.3 33.4 23.1 16.3 30.5 28.9 0.0 10.0 20.0 30.0 40.0 0.0 10.0 20.0 30.0 40.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD

(Avg Scrap Age) DWT (Millions)

Capesize Panamax Handymax Handysize Avg Scrap Age

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Appendix

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Owned Fleet List

Vessel size 60,200-64,000 DWT Vessel size 82,000-84,000 DWT Delivered Vessels Vessels to be delivered

Ultramax Newbuildings # Name Year Yard 1 SBI Athena Q1-15 Chengxi 2 SBI Bravo Q1-15 Nacks 3 SBI Antares Q1-15 Nacks 4 SBI Leo Q1-15 Dacks 5 SBI Echo Q3-15 Imabari 6 SBI Lyra Q3-15 Dacks 7 SBI Subaru Q3-15 Dacks 8 SBI Tango Q3-15 Imabari 9 SBI Maia Q3-15 Nacks 10 SBI Hydra Q3-15 Nacks 11 SBI Pegasus Q3-15 Chengxi 12 SBI Ursa Q4-15 Dacks 13 SBI Thalia Q4-15 Chengxi 14 SBI Cronos Q4-15 Imabari 15 SBI Orion Q4-15 Chengxi 16 SBI Achilles Q1-16 Imabari 17 SBI Hercules Q1-16 Chengxi 18 SBI Perseus Q1-16 Chengxi 19 SBI Hermes Q1-16 Imabari 20 SBI Zeus Q2-16 Mitsui 21 SBI Hera Q2-16 Mitsui 22 SBI Hyperion Q2-16 Nacks 23 SBI Tethys Q3-16 Nacks 24 SBI Phoebe Q3-16 Chengxi 25 SBI Poseidon Q3-16 Mitsui 26 SBI Apollo Q4-16 Mitsui 27 SBI Samson Q1-17 Chengxi 28 SBI Phoenix Q1-17 Chengxi

Kamsarmax Newbuildings # Name Year Yard 1 SBI Cakewalk Q3-14 SWS 2 SBI Charleston Q3-14 SWS 3 SBI Samba Q1-15 Imabari 4 SBI Rumba Q3-15 Imabari 5 SBI Capoeira Q3-15 Hudong 6 SBI Electra Q3-15 Yangzijiang 7 SBI Carioca Q4-15 Hudong 8 SBI Conga Q4-15 Hudong 9 SBI Flamenco Q4-15 Hudong 10 SBI Bolero Q4-15 Hudong 11 SBI Sousta Q1-16 Yangzijiang 12 SBI Rock Q1-16 Yangzijiang 13 SBI Lambada Q1-16 Hudong 14 SBI Reggae Q1-16 Hudong 15 SBI Zumba Q4-16 Hudong 16 SBI Macarena Q4-16 Hudong 17 SBI Parapara Q1-17 Hudong 18 SBI Mazurka Q1-17 Hudong 19 SBI Swing Q1-17 Hudong 20 SBI Jive Q2-17 Hudong (1) As of January 10, 2017

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Name Yard Type Name Yard Type Name Yard Type SBI Pegasus Chengxi Ultramax SBI Cakewalk SWS Kamsarmax SBI Perseus Chengxi Ultramax SBI Orion Chengxi Ultramax SBI Charleston SWS Kamsarmax SBI Phoebe Chengxi Ultramax SBI Hercules Chengxi Ultramax SBI Electra Yangzijiang Kamsarmax SBI Samson Chengxi Ultramax SBI Flamenco Yangzijiang Kamsarmax SBI Phoenix Chengxi Ultramax Name Yard Type SBI Leo Dacks Ultramax SBI Athena Chengxi Ultramax SBI Lyra Dacks Ultramax SBI Thalia Chengxi Ultramax Name Yard Type SBI Subaru Dacks Ultramax SBI Echo Imabari Ultramax SBI Achilles Imabari Ultramax SBI Ursa Dacks Ultramax SBI Hera Mitsui Ultramax SBI Hermes Imabari Ultramax SBI Bravo Nacks Ultramax SBI Zeus Mitsui Ultramax SBI Antares Nacks Ultramax SBI Poseidon Mitsui Ultramax SBI Maia Nacks Ultramax SBI Apollo Mitsui Ultramax Name Yard Type SBI Hydra Nacks Ultramax SBI Conga Hudong Kamsarmax SBI Cronos Imabari Ultramax SBI Hyperion Nacks Ultramax SBI Bolero Hudong Kamsarmax SBI Tethys Nacks Ultramax SBI Sousta Hudong Kamsarmax SBI Capoeira Hudong Kamsarmax SBI Reggae Hudong Kamsarmax SBI Carioca Hudong Kamsarmax SBI Zumba Hudong Kamsarmax SBI Lambada Hudong Kamsarmax SBI Parapara Hudong Kamsarmax SBI Macarena Hudong Kamsarmax SBI Mazurka Hudong Kamsarmax SBI Swing Hudong Kamsarmax SBI Rock Yangzijiang Kamsarmax SBI Jive Hudong Kamsarmax Name Yard Type SBI Tango Imabari Ultramax SBI Samba Imabari Kamsarmax SBI Rumba Imabari Kamsarmax $42 Million Credit Facility $39.6 Million Credit Facility $67.5 Million Credit Facility $330 Million Credit Facility $409 Million Credit Facility $27.3 Million Credit Facility $12.5 Million Credit Facility

Fully Financed Fleet

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Proven Access to Capital Markets by Management

$168,350,000

April 2010

$250,000,000

July 2013

$56,560,249

November 2010

$72,450,000

May 2011

$38,500,000

December 2011

$27,000,000

April 2012

$132,002,621

December 2012

$234,997,200

March 2013

$299,999,997

May 2013

$218,500,000

July 2013

$360,000,000

June 2014

$300,000,000

September 2013

$300,000,000

November 2013

$351,000,000

December 2013

$150,000,000

November 2014

$230,000,000

June 2015

$53,750,000

May 2014

$51,750,000

October 2014

$159,747,244

May 2015

$230,040,000

February 2013

$73,625,000

September 2014

Equity Raises Convertible Bond Unsecured Notes $63,000,000

March 2016

$70,150,000

June 2016

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Top 20 Shareholders

Source: Nasdaq/Bloomberg, December 2016

# Holder Ownership 1 Scorpio Services Holding Limited 17.4% 2 GRM Investments Ltd. 17.1% 3 Raging Capital Management 12.2% 4 Q Investments 5.6% 5 BlackRock Fund Advisors 4.3% 6 Evermore Global Advisors, LLC 4.2% 7 TFG Asset Management, L.P. 2.3% 8 Wellington Management Company 1.8% 9 Anchorage Capital Group, LLC 1.7% 10 Renaissance Technologies, LLC 1.1% 11 Kairos Partners SGR S.p.A. 0.8% 12 Tufton Oceanic, LTD 0.8% 13 State Street Global Advisors (SSgA) 0.7% 14 Avenue Capital Management II, L.P. 0.7% 15 Northern Trust Investments, Inc. 0.6% 16 Invesco PowerShares Capital Management, LLC 0.5% 17 Royce & Associates, LP 0.4% 18 Phoenix Investment Adviser, LLC 0.3% 19 Parametric Portfolio Associates, LLC 0.3% 20 First Fondene AS 0.3%