Corporate Presentation NewLead Holdings Ltd. LD Micro Conference June 1, 2015
Forward Looking Statement Forward Looking Statement This presentation includes assumptions, expectations, projections, intentions and beliefs about future events. These statements, as well as words such as "anticipated," "estimated," "projected," "plan," and "expect," are intended to be ''forward-looking statements ” (as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended). We caution that assumptions, expectations, projections, intentions and beliefs about future events may vary from actual results and the differences can be material. Such “ forward looking ” statements in this presentation are based on assumptions and expectations deemed reasonable by NewLead, as well as information available to NewLead, at the time this presentation was made. Although NewLead believes its assumptions are reasonable for its projections, it can give no assurance that such projections will be attained. The Company undertakes no obligation to update any forward-looking statements even if it obtains new information or becomes aware of future events, unless it is required to do so under the securities laws. The Company makes no prediction or statement about the performance of its common stock. Monday, June 1, 2015 1
Shipping Always and Today Engine Control Room: the heart of a ship The heart of shipping beats at a vessel ’ s engine room 20 ships you didn ’ t realize you used today…everyday dry bulk commodities are brought to you by bulk carriers (Intercargo, the International Association of Dry Cargo Shipowners) On 18 February, the BDI - Baltic Dry Index - hit an all-time low of 509 (BIMCO, the world ’ s largest international shipping association) Anaemic demand growth is here to stay, Dry Bulk Shipping: Will It Ever Recover? especially as the trade development in coal (Morgan Stanley, Maritime Industries April 2015) and iron ore into China is expected to decline further The Tanker Market Is Sending a Big Warning to Oil Bulls (Drewry, May 2015) (Bloomberg.com, May 27, 2014) China asphalt demand growing 5% per annum Russia's bitumen demand growing at 10% per annum, to reach 9 - 10 million tons by 2015 (Petrosil.com) The global market for bitumen is expected to reach USD 95.77 billion by 2020 (Grand View Research, Inc) Monday, June 1, 2015 2
Overview International, vertically integrated shipping and coal processing company Ideal solutions for worldwide transportation of dry bulk commodities and petroleum products Diversified fleet of dry bulk and tanker vessels Owned and third party managed vessels Securities and Exchange Commission ( “ SEC ” ) reporting In compliance and current with all applicable SEC rules and regulations and reporting requirements Monday, June 1, 2015 3
Profile 2014 - A Transformational Year for the Company Delivery of three Eco-type Handysize dry bulk carriers and five Asphalt/Bitumen Oil tankers Fleet of ten vessels and one third party managed vessel Average fleet age of 9.2 years for the dry bulk and 6.2 years for the asphalt/bitumen oil tankers Entry in a niche oil market with upside from growing demand in oil and bitumen Prudent Commercial Management Experienced in-house chartering department capable to capitalize on responses to market conditions Balanced employment strategy among long term period charters, spot employment and COAs Capitalization of strong commercial relationships with charterers, trading companies and oil majors Knowledgeable S&P in-house department with access to numerous shipyards and respectable S&P brokers Fleet utilization as of December 31, 2014 of 92.4% Competent Operating Platform In-house commercial, operational and technical ship management Dedicated operations sustaining efficient fleet performance Skilled technical department maintaining vigorous safety and quality control standards Competitive OpEx per vessel per day due to integrated ship management services Enhanced Transparency Independent Board of Directors with solid shipping expertise Corporate Governance structure to ensure commitment to conduct all affairs with trust and integrity Code of Business Conduct and Ethics implemented by the Board of Directors Corporate Governance practices routinely reviewed and modified to meet current best practices Monday, June 1, 2015 4
Facts and Figures Fleet: Growth - Optimization - Diversification - Balance Blend of vessels is NewLead’ s competitive advantage Revenue mix allows mitigation of charter rate fluctuations; stable cash flow during shipping cycles NUMBER OF VESSELS AVERAGE FLEET AGE (as of end of May 2015) 1 DRY BULK CARRIERS 9.2 YEARS ASPHALT/BITUMEN OIL TANKERS 6.2 YEARS 5 FLEET EMPLOYMENT PROFILE Dry bulk vessels 5 Aspahlt/Bitumen Oil tanker vessels 2 3 Third party managed Oil tanker vessel Time Charter Spot Charter KEY FIGURES Contract of Affreightment 5 TOTAL FLEET UTILISATION Q1 2015 90.75% Accretive fleet growth strategy to expand fleet DRY FLEET UTILIZATION Q1 2015 97.81% Continuous market monitoring and evaluation WET FLEET UTILIZATION Q1 2015 98.69% Responsive chartering strategy to market assessment CONTRACTED AVAILABLE DAYS Maintenance of vessel condition to superior standards Reduced OpEx while preserving high quality standards 2015 42% Monday, June 1, 2015 5
Commercial, Technical and Operational Management In-house ship management companies Newlead Shipping S.A. : Oil Tankers Newlead Bulkers S.A. : Dry bulk Carriers ENVIRONMENTAL PROTECTION ASPHALT/BITUMEN OIL TANKER ABILITY IS TO KEEP OPEARTIONAL FLEXIBILITY TEMPERTURE OF CARGO AT 200 O C (392 O F) CREW SAFETY SAFETY IS NEWLEAD ’ S TOPMOST PRIORITY In-house ship management companies; commercial and quality competence Investment in the welfare of onshore and offshore personnel; NewLead’ s most valuable asset Personnel with years of experience in shipping; 55 employees ashore in our offices and 245 crew members Operational flexibility; quality in every single management procedure Strong relationships with industrial partners; relationship of mutual respect and trust INTEGRATION ONE-STOP WORLDWIDE SEABORNE TRANSPORTATION SERVICES QUALITY COMPETENCE OPEATIONAL FLEXIBILITY EXPERIENCED PERSONEL STRONG INDUSTRY RELATIONSHIP Monday, June 1, 2015 6
Constant Commercial Competence Adaptive, prudent and opportunistic chartering strategy Continuous evaluation of market conditions and trends Capitalization on commercial relationships with oil majors and traders; competitive employment of asphalt/bitumen oil tankers Capturing trading opportunities despite market conditions in the dry bulk sector Optimum balance among long term period charters, spot employment and contracts of affreightment Cash flow stability Sustainable revenues Opportunity to participate in market turnarounds Limiting counterparty risk FLEET UTILIZATION PER VESSEL 2014 FLEET UTLIZATION PER SECTOR 2013-2014 VESSEL 2014 VESSEL 2014 NEWLEAD VICTORIA 98.59% NEWLEAD GRANADINO 100.00% NEWLEAD CASTELLANO 95.94% NEPHELI 100.00% NEWLEAD ALBION 90.22% SOFIA 90.30% NEWLEAD VENETICO 93.82% KATERINA L 1 76.50% NEWLEAD MARKELA 89.47% IOLI 1 67.67% 1. In 2014 the Katerina L and the Ioli underwent scheduled repairs Monday, June 1, 2015 7
Strong Commercial Relationships DRY BULK CHARTERES Diversified dry bulk charterers; longlisting commercial relationships with leading dry bulk charterers ASPHALT/BITUMEN OIL CHARTERES Competitive employment profile of asphalt/bitumen oil tankers with reputable counterparties Monday, June 1, 2015 8
Continuous Operational Competence International Maritime Organization (IMO) regulations and responsibilities MARPOL 73/78 requirements; recognizing environmental care Ship operations in accordance with ISO 14001:2004 and ISO 50001:2011 Experienced technical department ensuring quality and safety while containing OpEx Improved transparency; allowing effective management of third-party vessels Constant investment in the maintenance and improvement of the vessels’ condition NewLead mandates at least two inspections per year for each vessel Test of cargo pumps and critical equipment prior every loading and discharging of asphalt/bitumen oil tankers ASPHALT/BITUMEN OIL TANKERS DRY BULK CARRIERS APPROVALS Monday, June 1, 2015 9
Dry bulk carrier: Newlead Victoria Asphalt/Bitumen Oil tanker: Nepheli Appendix A Trading Routes Dry bulk Carriers and Asphalt/Bitumen Oil Tankers Monday, June 1, 2015 10
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