Noble Conference Presentation January 30, 2018 Company Overview - PowerPoint PPT Presentation

Noble Conference Presentation January 30, 2018

Company Overview Fleet Profile Key Facts Scorpio Bulkers Inc. (“Scorpio” or the “Company”) owns Owned TC/BB Chartered-In Newbuilding 56 (1) mid- size dry bulk ‘Eco’ vessels with an average age 40 1 of 2.0 years and time charters in one vessel 35 30 • Scorpio’s strategy is to: 25 1 ✓ 20 Capture rising freight rates by employing 37 vessels in the spot market through the Scorpio 15 Ultramax and Scorpio Kamsarmax pools 10 18 5 ✓ Operate vessels efficiently and minimize costs 0 Ultramax Kamsarmax ✓ Maintain a strong balance sheet through Scorpio Average Age vs. Worldwide Fleet conservative leverage 10.0 ✓ Scorpio Bulkers Active Fleet Take advantage of market dislocation to 8.6 9.0 opportunistically grow fleet 8.2 8.0 • The Company is headquartered in Monaco, 7.0 incorporated in the Marshall Islands, exempt from 6.0 U.S. income tax, has NYSE-compliant governance 5.0 and transparency for foreign private issuers and is 4.0 listed under the ticker “SALT” 3.0 2.1 1.8 2.0 1.0 0.0 Handymax/Ultramax Panamax/Kamsarmax 2 (1) Includes one kamsarmax newbuilding.

Company Profile Current Shareholders (1) Market Cap ($m) (2) # Holder Ownership $1,400 1 Scorpio Services Holding Limited 18.7% $1,200 2 Grm Investments 17.1% $1,000 3 Evermore Global Advisors 8.4% 4 Raging Capital Management 4.3% $800 5 BlackRock Fund Advisors 3.3% $600 6 Anchorage Capital Group 1.7% $400 7 Royce & Associates 1.5% $200 8 Warlander Asset Management 1.5% 9 Hourglass Capital 1.3% $0 Golden Star Bulk Scorpio Genco Diana Eagle Navios Songa 10 Horseman Capital Management 1.3% Ocean Bulkers Bulk Partners Bulk Stock Price Performance (3) Trading Liquidity ($m/day) (2) $10 Ownership Shareholders $6 59.1% Top 10 $9 9.7% 11-20 3.9% 21-30 27.3% $8 31+ $4 100.0% Total $7 $6 $2 $5 $4 $0 Star Bulk Scorpio Diana Golden Navios Eagle Bulk Genco Songa Bulkers Ocean Partners Bulk 3 (1) BD Corporate (2) Fearnley Securities January 22nd, 2018 (3) Yahoo Finance

Cargo Carriage - 1H 2017 Ultramax Cargo Breakdown Kamsarmax Cargo Breakdown Argribulks, 4.1% Iron Ore, 5.2% Others, 1.4% Metals & Minerals, 7.8% Iron Ore, 8.2% Metals & Minerals, 27.4% Steel Products, Forest Products, 13.0% 12.3% Coal, 55.8% Grain, 13.7% Grain, 18.2% Coal, 19.2% Steel Products, 13.7% 4

Quarterly Time Charter Rates • Seven sequential increases in reported TCE earnings for Ultramax and Kamsarmax vessels supports continued market recovery $14,000 February 10, 2016 $12,000 BDI hits 40 $11,180 year low $10,495 $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* Ultramax Kamsarmax 5 * Projections based on 53% and 52% of the days for the Ultramax fleet and Kamsarmax fleet, respectively as of October 20, 2017.

Significant Operating Leverage • Only taking into consideration the Company’s 56 owned vessels, a $1,000/day change in rates equates to $20.4 million in annualized cash flow or $0.27/share • Applying the historical one year time charter rates from 2003 to 2017 the company would generate $316.5 million in revenue or $4.23/share • This average excludes TC rates from 2007/2008 where supramax and panamax vessels averaged $50,000/day Company Owned Fleet Avg TC Rates Annualized Revenue Class # of Vessels Days/Yr Total Days ($/day) (Millions $USD) Ultramax 37 365 13,505 14,930 $202 Kamsarmax 19 365 6,935 16,561 $115 56 20,440 Total Revenue $316.5 Historical One Year TC Rates ($/day): 2003-2017 Implied Revenue from Historical TC Rates $700 $636 Class Min Avg Max $600 $500 $400 Ultramax $6,495 $14,930 $29,448 $316 $300 $200 $134 Kamsarmax $6,740 $16,561 $34,323 $100 $0 Min Avg Max 6 The one year time charter rate “TC rate” is the rate paid per day to contract a vessel out for one year, and the time charter eq uivalent rate (“TCE”) which is the earnings per day for a vessel operating in the spot market. Source: Clarksons Research Services

Financial Snapshot Revenue EBITDA $45 $12.5 $15 $10.9 $38.6 $37.7 $40 $10 $7.0 $34.7 $35 $5 $0.9 $30 $26.8 $0 $23.9 -$1.3 $25 -$5 -$5.8 $20 $17.4 -$10 $15 -$15 $10.2 $10 -$20 -$17.0 $5 -$25 $0 -$30 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Operating Cash Flow EBIT $0 $10 $6.1 $2.5 $5 -$5 -$2.6 -$4.7 $0 -$10 -$8.5 -$1.7 -$5 -$2.1 -$4.5 -$15 -$10 -$14.1 -$16.2 -$15 -$20 -$19.2 -$20 -$18.1 -$25 -$25 -$30 -$30 -$28.8 -$27.5 -$35 -$35 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 7 Figures in $USD millions.

Financial Performance P&L FY 2016 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Revenues 78.4 10.2 17.4 23.9 26.8 34.7 37.7 38.6 EBITDA (23.1) (17.0) (5.8) (1.3) 0.9 7.0 10.9 12.5 EBIT (78.3) (28.8) (19.2) (16.2) (14.1) (8.5) (4.7) (2.6) Net Loss (99.9) (33.4) (24.7) (21.3) (20.6) (16.4) (13.4) (10.7) Balance Sheet FY 2016 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Total Assets 1,547.2 1,466.9 1,522.2 1,553.1 1,547.2 1,563.1 1,532.2 1,434.2 PP&E 1,414.1 1,183.3 1,244.8 1,318.3 1,414.1 1,363.5 1,352.5 1,340.3 Cash 101.7 230.2 241.7 200.9 101.7 126.6 149.3 62.4 Equity 956.6 941.5 989.0 972.7 956.6 926.0 916.2 908.5 Debt 579.5 510.0 523.4 570.8 579.5 628.2 606.3 529.6 Cash Flow FY 2016 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Cash from operations (52.2) (27.5) (18.1) (4.5) (2.1) (1.7) 2.5 6.1 Cash from investing (235.4) 22.6 (23.0) (128.5) (106.4) (22.4) (1.5) 21.1 Cash in financing 189.0 34.8 97.8 47.0 9.3 49.0 (23.1) (66.5) 8 Figures in $USD millions.

Market Update 9

Industry Highlights ✓ Ultramax and Kamsarmax resale values have increased 14.6% and Asset Values Recover 16.3% yoy and 37.5% and 23.9% since January 2016, respectively. ✓ TCE Rates Continue to Seven sequential increases in reported TCE earnings for our Ultramax Improve and Kamsarmax vessels and are still below historical average ✓ Favorable Supply/Demand For the first time since 2014, dry bulk ton mile demand growth (5.3%) Dynamics outpaced fleet supply growth (3.0%) ✓ Low Orderbook & Limited Orderbook as % of the fleet is 9.30% and NB orders in 2017 were 40% Newbuild Orders below the 20 year avg ✓ SALT is fully compliant with upcoming regulatory requirements which Regulatory requirements also are likely to increase scrapping ✓ Positive Demand Outlook Dry bulk seaborne exports have increased at CAGR of 4.9% since 2009 10

Asset Values • Newbuild & Resale Asset Values In the last 12 months asset values have: – $30 Increased 14.6% and 16.3% for ultramax and kamsarmax resales, respectively. $28 – Increased 36.8% and 23.3% for ultramax and $26 panamax 5 year old vessels, respectively. $24 – Increased 7.9% and 4.1% for ultramax and $22 kamsarmax newbuildings, respectively. $20 • Resale values now exceed newbuilding values $18 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 supporting expectations for continued market recovery Ultramax NB Kamsarmax NB Ultramax Resale Kamsarmax Resale Historical Asset Values Five Year Old Asset Values $60 $60 $50 $50 $40 $40 $30 $30 $20 $20 $10 $10 $0 $0 Ultramax NB Kamsarmax NB Panamax NB Ultramax NB Kamsarmax NB Panamax NB 11 Figures in million US$, Source: Clarksons Research Services, January 2018

Time Charter Rates have Increased Y-o-Y Historical Data 2009-2018 Class Current Avg Max Min $11,375 $11,775 $24,375 $4,875 Ultramax $13,563 $12,889 $29,625 $5,363 Kamsarmax 1,304 1,410 3,941 307 BDI Historical 1 Yr TC Rates 1 yr TC Rates (Last 12 months) Kamsarmax (LHS) Ultramax (LHS) 1,800 Kamsarmax (LHS) Ultramax (LHS) BDI (RHS) $100,000 $14,000 $90,000 1,600 $80,000 $12,000 1,400 $70,000 $60,000 1,200 $10,000 $50,000 1,000 $40,000 $8,000 $30,000 800 $20,000 $6,000 600 $10,000 $0 $4,000 400 12 Source: Clarksons Research Services, January 2018

Dry Bulk Demand Outpaces Supply in 2017 • For the first time since 2014, dry bulk ton mile demand growth (5.3%) outpaced fleet supply growth (3.0%) • Increasing ton mile demand and global growth coincided with a limited orderbook provides favorable supply/demand dynamics 12.0% Net Fleet Growth Ton Mile Demand 10.8% 10.0% 8.0% 6.4% 5.8% 6.1% 6.0% 5.4% 4.9% 4.4% 4.0% 3.0% 2.6% 2.4% 2.3% 1.9% 2.1% 2.0% 0.9% 0.0% 2012 2013 2014 2015 2016 2017 2018P 2019P 13 Net fleet growth for 2018/2019 assumes scrapping amount as 2017 (14.5 million DWT) and newbuilding vessels deliver as scheduled. Source: Clarkson Research Services