October 22, 2018 Safe Harbor Statement This document may contain - PowerPoint PPT Presentation

Third Quarter 2018 Earnings Presentation October 22, 2018

Safe Harbor Statement This document may contain forward- looking statements that reflects management’s expectations for the future. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements. The forward-looking statements in this document are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk vessel capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. 2

Corporate and Financial Highlights • GAAP Net Loss of $0.4 million / Loss per Share of $0.01 (includes $0.03 write off of Q3-2018 deferred financing costs) Financial Results • EBITDA of $28.8 million and cash flow from operations of $18.6 million • Ultramax TCE of $11,342 per day in Q3 2018 • Ultramax TCE of $13,388 per day booked to date in Q4 2018 TCE • Kamsarmax TCE of $13,649 per day in Q3 2018 • Kamsarmax TCE of $14,382 per day booked to date in Q4 2018 • Investment in Scorpio Invested $100 million in a related party, Scorpio Tankers, Inc. for approximately 54.1 Tankers, Inc. million shares, or 10.9% of Scorpio Tankers’ issued and outstanding shares • Liquidity Liquidity position as of October 19, 2018 is $58.0 million in cash • Entered into and closed a $60.0 million credit facility to refinance two Ultramax vessels and two Kamsarmax vessels • Entered into and closed a $184.0 million credit facility to refinance six Ultramax vessels and six Kamsarmax vessels Debt • Entered into and closed a $34.0 million credit facility to refinance two Kamsarmax vessels • Agreed to a $20.5 million lease financing of the Ultramax bulk carrier, SBI Hermes • Agreed to a $90 million credit facility to refinance six Ultramax vessels 3

Corporate and Financial Highlights (cont.) • Agreed letters of intent to cover the purchase and installation of exhaust gas cleaning systems between Q2 2019 and Q3 2020 for a cost of between $1.5 million - $2.2 million Fleet Development per vessel • Anticipated to be financed at 60-70% • Entered into Time Charters for 11 vessels at rates of $14,500-$16,500 per day that Time Charters end in H1 2019 • From July 1, 2018 to October 12, 2018, approximately 1.8 million shares were purchased by the Company under its share buyback program at a cost of $6.80 per share or $11.9 million in aggregate Stock Buyback Program • The Board of Directors approved a new share repurchase plan for the repurchase of up to $50.0 million of our common stock, replacing the existing authorization • The Company’s Board of Directors declared a dividend of $0.02 per share on October Dividend 19, 2018 4

Strengthening Market for Our Vessels $16,000 February 10, 2016 $14,382 BDI hits $14,000 $13,649 40 year $13,388 low $12,881 $12,823 $12,605 $12,000 $11,569 $11,342 $10,886 $9,757 $10,000 $9,273 $9,211 $9,164 $8,949 $8,360 $8,230 $8,000 $7,401 $7,238 $7,083 $6,349 $6,000 $5,335 $5,263 $4,000 $3,462 $3,331 $2,000 $0 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18* Ultramax Kamsarmax 5 * Projections based on 47% and 49% of the days for the Ultramax fleet and Kamsarmax fleet, respectively as of October 17, 2018.

Financial Performance Summary Revenue EBITDA $70 $60.6 $62.5 $40 $60 $51.1 $54.3 $28.1 $28.8 $30 $22.9 $20.4 $50 $17.0 $20 $34.7 $37.7 $38.6 $10.8 $12.4 $40 $7.3 $5.8 $10 $1.3 $0.9 $23.9 $26.8 $30 $0 $17.4 $20 -$10 $10.2 $10 -$20 $0 -$30 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Operating Cash Flow EBIT $25 $21.1 $18.6 $15 $10.6 $9.4 $13.5 $11.1 $10 $6.0 $15 $2.9 $5 $5.3 $2.5 $0 $5 -$5 -$4.1 -$5 -$2.1 -$1.7 -$6.2 -$10 -$4.5 -$9.9 -$15 -$15 -$16.2 -$14.1 -$20 -$19.2 -$18.1 -$25 -$25 -$30 -$27.5 -$28.8 -$35 -$35 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 6 Figures in $USD millions.

Trading Summary Atlantic Pacific • • ~ 60% and 65% of the kamsarmax and ~ 40% and 35% of the kamsarmax ultramax fleet currently trading in the and ultramax fleet currently trading in Atlantic, respectively the Pacific, respectively • • Increasing thermal coal from US/South Increasing thermal coal imports to America exports to Europe as a result India from South Africa/Indonesia due of rising LNG prices to weak domestic production and historically low inventories • South American grain exports increase • as a result of Chinese tariffs on US South East Asia emerging as a grain imports primary destination for coal with new power plants in Vietnam and Pakistan • While US soybean exports heading to offsetting a slight decline in Chinese Northern Europe, Saudi Arabia and imports Egypt have increased 7

Appendix 8

Time Charter Out Agreements Earliest Redelivery Vessel Type Rate Per Day Date SBI Jaguar Ultramax April 2019 $16,000 SBI Ursa Ultramax June 2019 $15,000 SBI Tango Ultramax March 2019 $14,500 SBI Cougar Ultramax March 2019 $16,500 SBI Echo Ultramax February 2019 $15,000 SBI Thalia Ultramax April 2019 $16,500 SBI Lyra Ultramax April 2019 $16,500 SBI Bolero Kamsarmax May 2019 $14,500 SBI Macarena Kamsarmax February 2019 $16,000 SBI Samba Kamsarmax April 2019 $15,500 SBI Mazurka Kamsarmax May 2019 $16,000 9