January 28, 2019 Safe Harbor Statement This document may contain - PowerPoint PPT Presentation

Fourth Quarter 2018 Earnings Presentation January 28, 2019

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 $7.4 million / Loss per Share of $0.11 Q4-2018 • includes $7.2 million or $0.10 net loss on the investment in Scorpio Tankers Inc. and $1.7 million or $0.03 write off of deferred financing costs Financial Results • EBITDA of $23.3 million and cash flow from operations of $20.2 million • Ultramax TCE of $12,213 per day in Q4 2018 • Ultramax TCE of $11,072 per day booked to date in Q1 2019 TCE • Kamsarmax TCE of $13,148 per day in Q4 2018 • Kamsarmax TCE of $12,913 per day booked to date in Q1 2019 • Liquidity Liquidity position as of January 25, 2019 is $74.3 million in cash • Investment in Scorpio As of January 25, 2019, the 5.4 million shares owned by the Company have a fair value of Tankers Inc. $110.4 million • Company plans to install exhaust gas cleaning systems (“scrubbers”) in 2019 and 2020 on all of its vessels at an estimated total cost of $127.1 million IMO 2020 • Entered into an estimated $41.9 million agreement to purchase scrubbers for 18 and 10 of our vessels in 2019 and 2020, respectively • Scrubbers to be financed through secured asset financing expected to be agreed during Q1 2019 • The Company’s Board of Directors declared a dividend of $0.02 per share on January 25, Dividend 2019 • During Q4 2018, approximately 4.5 million shares were purchased by the Company under its then existing share repurchase programs at an aggregate cost of approximately $27.0 million Stock Buyback or $6.05 per share 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 3

Strong Market for our Vessels $15,000 February 10, 2016 BDI hits 40 year low $12,500 $10,000 $7,500 $5,000 $2,500 $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 Q1 19* Ultramax Kamsarmax 4 * Projections based on 56% and 60% of the days for the Ultramax fleet and Kamsarmax fleet, respectively as of January 23, 2019.

Scrubber Installation Schedule 2019 and 2020 Estimated Payments by Year 20 2018 $1.2 million 2019 $58.9 million 2020 $66.1 million 16 15 2021 $0.9 million Total $127.1 million 12 12 6 1 10 1 8 8 4 5 11 3 9 9 3 4 4 4 3 3 1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 Ultramax Kamsarmax 5

Financial Performance Summary Revenue EBITDA $70 $60.6 $62.5 $65.2 $40 $60 $51.1 $54.3 $28.1 $28.8 $30 $22.9 $20.4 $23.3 $50 $20 $34.7 $37.7 $38.6 $10.8 $12.4 $40 $7.3 $10 $0.9 $23.9 $26.8 $30 $0 $17.4 -$1.3 $20 -$10 -$5.8 $10.2 $10 -$20 -$17.0 $0 -$30 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Net Debt (Debt less Cash) (1) Operating Cash Flow $25 $21.1 $18.6 $20.2 $870 $13.5 $11.1 $761.1 $15 $649.6 $770 $647.0 $647.6 $5.3 $650.5 $2.5 $670 $501.6 $5 $477.7 $452.7 $570 $456.9 -$5 $369.9 -$4.5 -$2.1 -$1.7 $470 $281.6 $370 -$15 $279.8 $270 -$18.1 -$25 $170 -$27.5 $70 -$35 Q1 16Q2 16Q3 16Q4 16Q1 17Q2 17Q3 17Q4 17Q1 18Q2 18Q3 18Q4 18 -$30 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 6 Figures in $USD millions (1) Excludes fair value of the Company’s investment in Scorpio Tankers Inc. common stock.

Trading Summary Q4-18 & January 2019 • General trade war and macroeconomic uncertainty reduced trading appetite from cautious importers ready to close their books at the end of the year. • Increasing soybean imports from Brazil in early Q4-18 was not enough to offset the total reduction in Chinese imports. • China’s total soybean imports for November and December fell from 18.3m MT in 2017 to 11.1m MT in 2018, 39% y-o-y decrease (1) • Strong increases in Indian thermal coal imports were mitigated by the reduction in Chinese imports due to above average coal inventories • Mild winter conditions in the North America and Europe have reduced coal trading activity Going Forward • Progress in the US-China trade war which was reported in late November could materialize after Chinese New Year, boosting US grain and soybean exports • Historically, slow periods of Chinese GDP growth have been followed by government stimulus which would boost iron ore and coal imports • Limited supply in mid size segments with 3% and 1.5% net fleet growth for 2019 and 2020 (2) 7 1) Bloomberg, January 2019 2) Clarksons Research Service, January 2019. Includes ultramax and kamsarmax vessels. Assumes newbuildings deliver as scheduled and 10 yr avg scrapping of 2.7m DWT and 4.6m DWT for Ultramax and Kamsarmax vessels, respectively.