Scorpio Bulkers Inc. Q1 2018 Earnings Supplementary Presentation 1 - PowerPoint PPT Presentation

Scorpio Bulkers Inc. Q1 2018 Earnings Supplementary Presentation 1 April 23, 2018

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 $5.8 million / Loss per Share of ($0.08) Q1-18 Results • EBITDA of $20.4 million and continued positive cash flow from operations • Ultramax TCE of $9,757/day in Q1 2018 • Ultramax TCE of approximately $11,925/day booked to date in Q2 2018 (for 48% of the days) TCE • Kamsarmax TCE of $12,881/day in Q1 2018 • Kamsarmax TCE of approximately $13,250/day booked to date in Q2 2018 (for 56% of the days) • Liquidity Liquidity position as of April 20, 2018 is $55.0 million in cash • Agreed $12.8 million loan facility for Kamsarmax bulk carrier delivering Q3 2018 Debt • Agreed $19.0 million lease financing in Japan for Ultramax bulk carrier (SBI Tango) • Fleet Status 1 Kamsarmax bulk carrier remaining to be delivered in Q3 2018 Stock • Purchased 1.2 million common shares at an average price of $7.39 per share Buyback • The Company’s Board of Directors declared a dividend of $0.02 per share for Q2 2018 Dividend 3

Strengthening Market for Our Vessels • The increase in reported TCE earnings over the last 2 years has defied traditional seasonality, and in the face of record newbuild deliveries, shows the underlying strength of the market and supports the continuation of the market recovery February 10, $14,000 $13,250 2016 BDI $12,881 $12,605 hits 40 year low $11,925 $12,000 $10,886 $9,757 $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 Q1-18 Q2-18* Ultramax Kamsarmax 4 * Projections based on 48% and 56% of the days for the Ultramax fleet and Kamsarmax fleet, respectively as of April 18, 2018.

Financial Performance Revenue EBITDA $60 $30 $54.3 $22.9 $51.1 $20.4 $50 $20 $12.4 $10.8 $38.6 $37.7 $7.3 $40 $10 $34.7 $0.9 $26.8 $30 $0 $23.9 -$1.3 $17.4 -$10 -$5.8 $20 $10.2 -$20 $10 -$17.0 -$30 $0 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Operating Cash Flow EBIT $25 $10 $20.9 $6.0 $2.9 $5 $15 $11.1 $0 $5.3 -$5 $2.5 $5 -$4.1 -$6.2 -$10 -$9.9 -$5 -$1.7 -$15 -$2.1 -$4.5 -$14.1 -$16.2 -$20 -$19.2 -$15 -$25 -$18.1 -$30 -$25 -$28.8 -$35 -$27.5 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 -$35 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 5 Figures in $USD millions.

Overview of New Financings $12.75m Credit Facility $19m Lease Financing • $12.75 million credit facility financing Kamsarmax • $19 million lease finance of SBI Tango with bulk carrier delivering Q3-2018 Japanese shipowner and Japanese bank • ~5 year term maturing June 2023 with a 15 year to • ~80% of vessel value zero repayment profile • Pricing of L+2.40% • 5 year lease tenor • SALT covenants (excl interest cover) + no debt • Bareboat Hire rate of $5,400 per day (equates service reserve accounts to L+1.73% at the then prevailing swap rates) • Purchase options starting at end of year 3 • Minimum Tangible Net Worth covenant only • ‘On balance sheet’ and considered as debt for accounting purposes 6

Company Highlights High specification best-in- class fleet of customer preferred ‘ Ultramax ’ ✓ and ‘ Kamsarmax ’ type vessels built at top tier yards with an average Youngest ECO dry bulk fleet age of 2.0 years versus worldwide fleet average of 8 years ✓ Industry leading balance Low financial leverage secured by most modern assets sheet ✓ Exposure to rising spot Vessels trade in the spot market in the Scorpio pools to ensure market maximum exposure to rising freight rates Fuel efficient 100% ‘Eco’ fleet suitable for 2020 low sulfur fuel regulation ✓ Compliant with future and all vessels already fitted with Ballast Water Treatment Systems so regulatory requirements no need for costly installation ✓ Historically low orderbook as a % of fleet combined with limited Favorable supply dynamics newbuilding orders & continued scrapping of older tonnage ✓ Dry bulk seaborne demand expected to grow 2.8% in 2018 Positive demand outlook 7