ARDMORE SHIPPING CORPORATION JP Morgan Investor Presentation March - PowerPoint PPT Presentation

ARDMORE SHIPPING CORPORATION JP Morgan Investor Presentation March 09, 2016

Disclaimer This presentation contains certain statements that are deemed to be “forward -looking statements” within the meaning of applicable U.S. federal securities laws. All statements, other than statements of historical facts, that address activities, events or developments that Ardmore Shipping Corporation (“Ardmore” or the “Company”) expects, projects, believes or anticipates will or may occur in the future are forward looking statements, including, without limitation, statements about future operating or financial results; global and regional economic conditions and trends; pending vessel acquisitions or possible upgrades to vessels; the Company’s business strategy and expected capital spending or operating expenses; fuel efficiency savings and the potential impact of the company’s cost structure on the share price; competition in the tanker industry; shipping market trends; the Company’s financial condition and liquidity, including ability to obtain financing in the future to fund capital expenditures, acquisitions and other general corporate activities, the amount of future cash flows and earnings of the Company; dividend amounts actually declared by the Company’s board of directors; the amount of cash reserves established by the Company’s board of directors; limitations on dividends contained in the Company’s credit facilities or under Marshall Islands law; additional issuances of the Company’s shares of common stock, the Company’s ability to enter into fixed-rate charters after the current charters expire and the Company’s ability to earn income in the spot market, and expectations of the availability of vessels to purchase, the time it may take to construct new vessels; vessel delivery dates and vessels’ useful lives, are forward-looking statements. Although the Company believes that its expectations stated in this presentation are based on reasonable assumptions, actual results may differ from those projected in the forward-looking statements. Factors that might cause or contribute to such a discrepancy include, but are not limited to, the risk factors described in the Company's filings with the Securities and Exchange Commission (the "SEC"). This presentation is for information purposes only and does not constitute an offer to buy or sell securities of the Company. For more complete information about the Company, the information in this presentation should be read together with the Company 's filings with the SEC which may be accessed on the SEC website at www.sec.gov. Factors that might cause or contribute to such a discrepancy include, but are not limited to, the risk factors described in the Company's filings with the Securities and Exchange Commission (the "SEC"). This presentation is for information purposes only and does not constitute an offer to buy or sell securities of the Company. 2

Key Points to Keep in Mind 1. Low oil price, and oil price volatility, is good for the product tanker market 2. Product tankers are not dry bulk ships! 3. Product tanker market is currently strong :  Tonne mile demand is growing  Ship supply is tightening  Charter rates are continuing to strengthen 3

Overview of Ardmore Shipping . 4

Ardmore Shipping Corporation  Leading public product tanker company focused on most attractive sector over the long-term  Owns and operates a fleet of 24 “Eco” medium size (“MR”) product and chemical tankers. MR’s are the workhorses of the product tanker fleet  Strategy based on service excellence and operating efficiency  Internal management company and no transactions with affiliates  Generated record earnings of $1.23 per share for the 12 months ended Dec 31, 2015 with an average of 20 vessels in operation  World class operations driving significant earnings upside: o Every $1,000 increase in charter rates adds 34 cents to EPS & Cashflow and increases the dividend by $0.20 / share (1)  Attractive dividend policy – pay out of 60 % of net income quarterly 1. Realized across a full fleet of 24 ships. Calculation based on: ($1,000 day x 363 revenue days x 24 ships) / 26.1mln shares = $0.34 per share. $0.34 x 60% = Dividend of $0.20 per share 5

High Quality Fleet Fleet List High Quality Vessels Vessel Name Type Dwt Built Country Specification Employment  Modern “Eco” Fleet Ardmore Seavaliant IMO 2/3 49,998 Feb-13 Korea Eco-design Spot Ardmore Seaventure IMO 2/3 49,998 Jun-13 Korea Eco-design Spot Ardmore Seavantage IMO 2/3 49,997 Jan-14 Korea Eco-design Time Charter  Average age of ~4.3 yrs Ardmore Seavanguard IMO 2/3 49,998 Feb-14 Korea Eco-design Time Charter Ardmore Sealion IMO 2/3 49,999 May-15 Korea Eco-design Pool Ardmore Seafox IMO 2/3 49,999 Jun-15 Korea Eco-design Pool Ardmore Seawolf IMO 2/3 49,999 Aug-15 Korea Eco-design Pool  Upgraded for enhanced Ardmore Seahawk IMO 2/3 49,999 Nov-15 Korea Eco-design Pool commercial capability Ardmore Endeavour IMO 2/3 49,997 Jul-13 Korea Eco-design Spot Ardmore Seafarer IMO 3 45,744 Aug-04 Japan Eco-mod Time Charter Ardmore Seatrader Product 47,141 Dec-02 Japan Eco-mod Spot  Built at high-quality yards in Ardmore Seamaster IMO 3 45,840 Sep-04 Japan Eco-mod Spot Korea and Japan Ardmore Seamariner Product 45,726 Oct-06 Japan Eco-mod Spot Ardmore Sealeader Product 47,463 Aug-08 Japan Eco-mod Spot Ardmore Sealifter Product 47,472 Jul-08 Japan Eco-mod Spot Ardmore Dauntless IMO 2 37,764 Feb-15 Korea Eco-design Pool  Quality fleet = lower Ardmore Defender IMO 2 37,791 Feb-15 Korea Eco-design Pool operating cost, higher Ardmore Centurion IMO 2 29,006 Nov-05 Korea Eco-mod Spot utilization and maximum Ardmore Cherokee IMO 2 25,215 Jan-15 Japan Eco-design Pool value appreciation Ardmore Cheyenne IMO 2 25,217 Mar-15 Japan Eco-design Time Charter Ardmore Chinook IMO 2 25,217 Jul-15 Japan Eco-design Time Charter Ardmore Chippewa IMO 2 25,217 Nov-15 Japan Eco-design Time Charter  Complementary fleet Ardmore Calypso (1) IMO 2 17,589 Jan-10 Korea Eco-mod Time Charter Ardmore Capella (1) IMO 2 17,567 Jan-10 Korea Eco-mod Time Charter Total 24 969,953 4.3 (2) 1. Agreed sale of the Ardmore Calypso and Ardmore Capella, expected to deliver to buyer in 2Q16 2. Average age of fleet as at Feb 29th, 2016 6

MRs in Perspective World Tanker Fleet (1) 5,907 Vessels Crude Tankers Product / Chemical Tankers Short Range / Stainless / Specialized (Uncoated) (Coated: 25,000 Dwt to 120,000 Dwt ) UL / VLCC SUEZ AFRA PAN LR2 LR1 MR SR Stainless Spec 635 494 629 84 262 329 1,892 896 577 109 Products Share of Oil Seaborne Trade Increasing (2) Growing Share of World Tanker Fleet 3,500 Crude Seaborne Trade Product Seaborne Trade  MR tankers comprise ~32% of the world tanker 3,000 fleet by number of ships (1) 2,500 Million Tonnes 36% 2,000 25%  Seaborne oil transport is gradually shifting away 1,500 from crude and toward refined products 1,000 64% 75%  This is the main growth driver for MRs 500 0 1. Source: Drewry as at February, 2015 2. Source: Clarksons Shipping Intelligence Network Time series 7

MRs the “Yellow Cabs” of the World Tanker Fleet MR VLCC LR1 LR2 MRs Trade Everywhere And Are The Ship Of Choice For Oil Traders Due To Their Versatility 8

Consistent and Focused Strategy 1 Consistent Focus on MR Product and Chemical Tankers 2 3 4 Cost Efficiency Highly Effective Chartering Strategy Value Added Service = Max Earnings    Maintain a high-quality, fuel efficient fleet Acquire vessels at cyclical lows: low cash Time charter and spot employment - mix breakeven and maximum ship value adjusted to maximize TCE  Exploit the product and chemical overlap appreciation  1Q16: Spot 71% v Time Charter 29%   Close operational collaboration with Operate and maintain vessels efficiently  charterers: service excellence Maintain close dialogue with charterers at  Low overhead at approx. $1,200 per ship / all times for time-charter opportunities  Optimise voyage performance: maximise day (1) TCE Superior Operational And Financial Performance 1. Based on full fleet of 24 ships 9