Presentation to NAMEPA: Winds of Change in Shipping Shipping Cycles - PowerPoint PPT Presentation

Presentation to NAMEPA: Winds of Change in Shipping Shipping Cycles and U.S. Equity Capital Markets February 19, 2014 / Confidential Jefferies LLC Member SIPC

“That Was Then” (2009) Jefferies LLC / February 2014 1

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“This Is Now” (NAMEPA 2014) Jefferies LLC / February 2014 6

Crude and Product Tankers 2003 – 2014 YTD Spot Rates ($ per day) Average $ 49,655 Average $ 39,860 VLCC Suezmax High 204,361 High 140,516 Low (1,452) Low 1,308 Current 43,947 Current 9,681 $150,000 $250,000 $200,000 $125,000 $150,000 $100,000 Crude $100,000 $75,000 $50,000 $50,000 $25,000 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 -$50,000 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Average $ 17,888 Average $ 28,518 MR Aframax High 42,099 High 87,863 Low 5,174 Low 2,262 Current 12,275 Current 9,833 $45,000 $90,000 $40,000 $80,000 $35,000 $70,000 Product $30,000 $60,000 $25,000 $50,000 $20,000 $40,000 $15,000 $30,000 $20,000 $10,000 $10,000 $5,000 $0 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Jefferies LLC / February 2014 7

Tanker Asset Values and Orderbook ($ millions) 20-Yr Quarterly 5-Yr Old VLCC Prices Average $ 76.4 Crude Tanker Orderbook as % of Fleet High 163.0 Low 45.0 Current 60.0 $200 160 60.0% 10.6% Orderbook (Million Dwt) 140 $160 Orderbook as % of Fleet 50.0% 120 $120 Crude 40.0% 100 $80 80 30.0% $40 60 20.0% 40 $- 10.0% 1993-Q3 1994-Q2 1995-Q1 1995-Q4 1996-Q3 1997-Q2 1998-Q1 1998-Q4 1999-Q3 2000-Q2 2001-Q1 2001-Q4 2002-Q3 2003-Q2 2004-Q1 2004-Q4 2005-Q3 2006-Q2 2007-Q1 2007-Q4 2008-Q3 2009-Q2 2010-Q1 2010-Q4 2011-Q3 2012-Q2 2013-Q1 2013-Q4 20 - - 20-Yr Quarterly 5-Yr MR Prices Average $ 25.0 Product Tanker Orderbook as % of Fleet High 47.0 Low 15.5 $50 Current 25.0 19.1% 60 70.0% Orderbook (Million Dwt) $40 60.0% Orderbook as % of Fleet 50 Product 50.0% $30 40 40.0% $20 30 30.0% $10 20 20.0% $- 10 10.0% 1993-Q3 1994-Q2 1995-Q1 1995-Q4 1996-Q3 1997-Q2 1998-Q1 1998-Q4 1999-Q3 2000-Q2 2001-Q1 2001-Q4 2002-Q3 2003-Q2 2004-Q1 2004-Q4 2005-Q3 2006-Q2 2007-Q1 2007-Q4 2008-Q3 2009-Q2 2010-Q1 2010-Q4 2011-Q3 2012-Q2 2013-Q1 2013-Q4 - - Jefferies LLC / February 2014 8

Drybulk and Containerships 2003 – 2013 YTD Spot Rates ($ per day) Average $ 47,982 Average $ 22,370 Capesize Panamax High 188,643 High 74,099 Low 1,758 Low 2,278 Current 8,279 Current 7,242 $80,000 $200,000 $60,000 $150,000 Drybulk $100,000 $40,000 $50,000 $20,000 $0 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Average $ 20,820 Average $ 16,553 Panamax Containership (1) Handysize (2) High 44,000 High 46,341 Low 5,450 Low 4,112 Current 7,250 Current 9,676 $45,000 $50,000 $40,000 Containership $40,000 $35,000 $30,000 $30,000 $25,000 $20,000 $20,000 $15,000 $10,000 $10,000 $5,000 $0 $0 2006 2007 2008 2009 2010 2011 2012 2013 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (1) 3500 teu Panamax containership historic 6-12 month TC rate from Clarksons. (2) Data from Clarksons available from 2006. Jefferies LLC / February 2014 9

Dry Asset Values and Orderbook ($ millions) 20-Yr Quarterly 5-Yr Old Capesize Prices Drybulk Orderbook as % of Fleet Average $ 37.5 High 153.0 Low 25.7 $80 Current 44.0 350 90.0% 21.0% $70 Orderbook (Million Dwt) 80.0% $60 300 Orderbook as % of Fleet 70.0% Drybulk $50 250 60.0% $40 200 50.0% $30 40.0% $20 150 30.0% $10 100 $- 20.0% 50 1993-Q3 1994-Q2 1995-Q1 1995-Q4 1996-Q3 1997-Q2 1998-Q1 1998-Q4 1999-Q3 2000-Q2 2001-Q1 2001-Q4 2002-Q3 2003-Q2 2004-Q1 2004-Q4 2005-Q3 2006-Q2 2007-Q1 2007-Q4 2008-Q3 2009-Q2 2010-Q1 2010-Q4 2011-Q3 2012-Q2 2013-Q1 2013-Q4 10.0% - - 20-Yr Quarterly 5-Yr Old Containership Prices (1) Containership Orderbook as % of Fleet Average $ 37.9 High 65.3 Low 17.0 22.2% Current 17.0 $70 8,000 70.0% Orderbook (Thousand TEU) $60 Orderbook as % of Fleet 7,000 Containership 60.0% $50 6,000 50.0% $40 5,000 40.0% $30 4,000 $20 30.0% 3,000 $10 20.0% 2,000 $- 10.0% 1,000 - - (1) Historic prices for 3200/3600 teu 5-year old Panamax containerships, Data is from Clarksons and is only available from Q4 2006. Jefferies LLC / February 2014 10

Historical Annual Price Movement in Maritime Sectors 2011 FY 2012 FY 2013 FY 2014 YTD 50.0% 47.2% 50.0% 130.0% 40.0% 110.1% 120.0% 110.0% 40.0% 40.0% 30.0% 100.0% 90.0% 30.0% 30.0% 80.0% 20.0% 70.0% 20.0% 20.0% 60.0% 41.5% 50.0% 10.0% 10.0% 10.0% 7.8% 40.0% 33.0% 1.6% 27.2% 30.0% 2.7% 1.1% 0.0% 0.0% 20.0% 0.0% -2.4% 10.0% -10.0% -10.0% 0.0% -10.0% -14.2% -10.9% -10.0% -5.5% -20.0% -20.0% -20.0% -30.0% -30.0% -30.0% -40.0% -20.0% -28.2% -50.0% -40.0% -40.0% -60.0% -70.0% -30.0% -50.0% -50.0% -80.0% -90.0% -50.1% -54.7% -60.0% -60.0% -100.0% -40.0% Drybulk Tanker Container Gas Drybulk Tanker Container Gas Drybulk Tanker Container Gas Drybulk Tanker Container Gas Note: The drybulk index includes BALT, DSX, DRYS, EGLE, ESEA, FREE, GNK, GLBS, GPRT, HCL, NM, NMM, PRGN, SB, SHIP and SBLK for all years. EXM is included in the drybulk index for 2011 and 2012. SALT and VLCCF are included in 2013 and 2014. The tanker index includes CPLP, DHT, FRO, NNA, NAT, STNG, TK, TNK and TNP for all years. The tanker index also includes OSG, ONAV and VLCCF for 2011 and 2012, GMR for 2011 and ASC for 2013 and 2014. The container index includes TEU, CMRE, DAC, DCIX, GSL and SSW for all years. HRZL is also included in the container index for 2011. The gas index includes EXMAR, GLOG, GLNG, GMLP, HLNG, GASS and TGP for all years. NVGS is also included in the gas index for 2013 and 2014. Source: Capital IQ. Jefferies LLC / February 2014 11

Cyclical Industry Creates Various Buying Opportunities – Product Scorpio Tankers (NYSE: STNG) Historic Price Movement Investment in Dorian LPG 10/28/2013 USD Follow-On $300.0m 14 5/8/2013 12 Follow-On $230.0m 1/30/2013 10 IPO $162.5m 3/31/2010 8 Follow-On Follow-On $63.0m Follow-On $190.0m 5/13/2011 $44.8m Follow-On 7/31/2013 6 $235.0m 11/16/2010 3/13/2013 Follow-On 4 $27.0m Follow-On 4/13/2012 $132.0m 12/5/2012 Follow-On $38.5m 2 12/1/2011 0 Mar-2010 Apr-2010 May-2010 Jun-2010 Jul-2010 Aug-2010 Sep-2010 Oct-2010 Nov-2010 Dec-2010 Jan-2011 Feb-2011 Mar-2011 Apr-2011 May-2011 Jun-2011 Jul-2011 Aug-2011 Sep-2011 Oct-2011 Nov-2011 Dec-2011 Jan-2012 Feb-2012 Mar-2012 Apr-2012 May-2012 Jun-2012 Jul-2012 Aug-2012 Sep-2012 Oct-2012 Nov-2012 Dec-2012 Jan-2013 Feb-2013 Mar-2013 Apr-2013 May-2013 Jun-2013 Jul-2013 Aug-2013 Sep-2013 Oct-2013 Nov-2013 Dec-2013 Jan-2014 Scorpio Tankers Jefferies LLC / February 2014 12

Feb-2014 Jan-2014 11/13/2013 Follow-On Dec-2013 $58.2 Nov-2013 Baltic Trading Oct-2013 9/20/2013 Follow-On $63.5 Sep-2013 Aug-2013 Jul-2013 5/22/2013 Follow-On $23.1m Jun-2013 May-2013 Apr-2013 Mar-2013 Feb-2013 Jan-2013 Dec-2012 Nov-2012 Cyclical Industry Creates Various Buying Opportunities – Drybulk Oct-2012 Sep-2012 “THE NEXT?” Aug-2012 Jul-2012 Jun-2012 May-2012 Apr-2012 Mar-2012 13 Feb-2012 Jan-2012 Dec-2011 Nov-2011 Baltic Trading Limited (NYSE: BALT) Historic Price Movement Oct-2011 Sep-2011 Aug-2011 Jul-2011 Jun-2011 May-2011 Apr-2011 Mar-2011 Feb-2011 Jan-2011 Dec-2010 Nov-2010 Oct-2010 Sep-2010 Aug-2010 Jul-2010 February 2014 Jun-2010 May-2010 Apr-2010 Mar-2010 / USD 16 14 12 10 8 6 4 2 0 Jefferies LLC

U.S. Equity Market Overview Street Predicting Modest Upside To Stocks In 2014 (1) Global Equities Have Started 2014 Down After 2013 Returns 60% 40% 34% 31% 30% 50% 27% 26% 30% 23% 20% 20% 20% 40% 14% 13% 13% Russell 2000: +35.3% 9% Nikkei 225: +33.9% 10% 7% 6% 3% 4% 30% S&P 500: +28.9% Dow Jones: +23.3% 0% (2%) (0%) 20% EuroSTOXX: +22.4% +1,033.5 (10%) (10%) +237% 10% (13%) (20%) +538.5 (23%) 0% +945.1 (30%) +61% Hang Seng: (2.7%) +105% Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan MSCI EM: (9.3)% (40%) -10% (38%) -20% Strong Inflows Into Equities (2) Volatility Remains Low New Issues Are Producing Outsized Returns $50 60.0 $37.8 Peak VIX: 48.0% $40 Mutual Fund Flows - Equity ex ETF ($bn) 43.4% 50.0 30.1% $30 LTM $20 $12.7 40.0 19.0% Offer-to-Current 6.8% $10 IPOs 30.0 $0 Current VIX: 13.6% 2011 2012 2013 2014 FOs ($10) 20.0 38.2% ($20) 19.4% ($11.4) Last 8 ($30) 10.0 Weeks 19.1% 5.1% ($40) 0.0 ($50) 01/11 06/11 11/11 04/12 09/12 02/13 07/13 12/13 0% 10% 20% 30% 40% 50% ($51.9) ($60) VIX Index IPOs FOs Offer-to-Current % Source: Dealogic. CapitalIQ. Bloomberg. (1) 2014E based on S&P 500 consensus price target estimate of 1,956 vs. closing price on 12/31/13. (2) Equity fund flows exclude ETFs. Jefferies LLC / February 2014 14