Third Quarter 2017
Earnings Presentation
3 November 2017
2
Disclaimer
This presentation contains certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the
Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation
Reform Act of 1995, and are intended to be covered by the safe harbor provided for under these sections. These statements may include words
such as “believe,” “estimate,” “project,” “intend,” “expect,” “plan,” “anticipate,” and similar expressions in connection with any discussion of the
timing or nature of future operating or financial performance or other events. Forward-looking statements reflect management’s current
expectations and observations with respect to future events and financial performance. Where we express an expectation or belief as to future
events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking
statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed,
projected, or implied by those forward-looking statements.
The forward-looking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further
assumptions, including without limitation, examination of historical operating trends, data contained in our records and other data available from
third parties. Although Eagle Bulk Shipping Inc. believes 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, Eagle Bulk
Shipping Inc. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.
The principal factors that affect our financial position, results of operations and cash flows include, charter market rates, which have declined
significantly from historic highs, periods of charter hire, vessel operating expenses and voyage costs, which are incurred primarily in U.S. dollars,
depreciation expenses, which are a function of the cost of our vessels, significant vessel improvement costs and our vessels’ estimated useful
lives, and financing costs related to our indebtedness. Our actual results may differ materially from those anticipated in these forward- looking
statements as a result of certain factors which could include the following: (i) changes in demand in the dry bulk market, including, without
limitation, changes in production of, or demand for, commodities and bulk cargoes, generally or in particular regions; (ii) greater than anticipated
levels of dry bulk vessel new building orders or lower than anticipated rates of dry bulk vessel scrapping; (iii) changes in rules and regulations
applicable to the dry bulk industry, including, without limitation, legislation adopted by international bodies or organizations such as the
International Maritime Organization and the European Union or by individual countries; (iv) actions taken by regulatory authorities; (v) changes in
trading patterns significantly impacting overall dry bulk tonnage requirements; (vi) changes in the typical seasonal variations in dry bulk charter
rates; (vii) changes in the cost of other modes of bulk commodity transportation; (viii) changes in general domestic and international political
conditions; (ix) changes in the condition of the Company’s vessels or applicable maintenance or regulatory standards (which may affect, among
other things, our anticipated drydocking costs); (x) the outcome of legal proceedings in which we are involved; and (xi) and other factors listed from
time to time in our filings with the SEC.
We disclaim any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or
otherwise, except as may be required under applicable security laws.
3
1 Highlights
2 Financial
3 Industry
4 Summary
5 Q&A
Agenda
Highlights
5
Executing on Business Strategy
Focus on active management yielding results
Outperformed the BSI by +$238 per day during 3q17
and +$948 per day for 9m17
Generated $8.4 million in Adj. EBITDA* in 3q17
Produced $7.3 million in Operating Cash Flow in 3q17
Renewing fleet leading to improved performance
Completed acquisition of 9-vessel Ultramax fleet
Sold a 2010-built Supramax
Strengthening balance sheet provides flexibility
Repaid $5 million on the Revolving Credit Facility
TCE relative performance is compared against Adj. net BSI= net BSI adjusted for the profile of owned fleet in terms of design. TCE is a non-GAAP financial
measure. Please refer to Appendix for the reconciliation of revenues to TCE
Adj. EBITDA= EBITDA adjusted to exclude certain non-cash, one-time, and other items (such as vessel impairment, gain / loss on sale of vessels, refinancing
expenses, non-cash comp, and amortization of TC acquired) that Eagle believes are not indicative core operations.
$(14.5)
$(6.7)
$(3.4)
$(2.0)
$4.6
$9.3
$8.4
$(17.5)
$(15.0)
$(12.5)
$(10.0)
$(7.5)
$(5.0)
$(2.5)
$-
$2.5
$5.0
$7.5
$10.0
1q16 2q16 3q16 4q16 1q17 2q17 3q17
Adj. EBITDA* (in millions)
Adj. EBITDA increasing
by over $90 million on
an annualized basis-
1q16 vs. 3q17
$2,911
$4,344
$5,601
$6,010
$7,716
$9,147
$8,660
$10,176
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
$11,000
1q16 2q16 3q16 4q16 1q17 2q17 3q17 4q17
(with ~64% fixed)
Adj. Net BSI EGLE TCE
6
Achieving TCE Outperformance
Eagle TCE vs. Adj. Net BSI
Adoption of Active Management is leading
to meaningful TCE outperformance, which
equaled $948 (per vessel per day) for 9m17
Equates to ~$16 million in annualized
incremental cash flow
TCE relative performance is compared against Adj. net BSI= net BSI adjusted for the profile of owned fleet in terms of design. TCE is a non-GAAP financial
measure. Please refer to Appendix for the reconciliation of revenues to TCE
7
Optimizing Revenue Through Active Management
92
109
151
200
394
749
514
744
1046
0
100
200
300
400
500
600
700
800
900
1000
1100
3q15 4q15 1q16 2q16 3q16 4q16 1q17 2q17 3q17
Chartered-in Fleet - Days
Third-party Timecharter-in Business
Eagle charters-in third party vessels in
order to cover cargo commitments, profit
from vessel-positioning arbitrage
opportunities, and increase overall
coverage to the market
8
Eagle’s Fleet Development by Vessel Age
Improving Makeup of Owned Feet
Completed acquisition of
Greenship Bulk fleet- took
delivery of the last three
Ultramaxes during 3q17:
1. ROWAYTON EAGLE
2. MADISON EAGLE
3. WESTPORT EAGLE
Expect to deliver WREN (2008-
built 53k DWT Supramax vessel)
to her new owners within
November
Sold the AVOCET (2010-built 53k
DWT Supramax vessel)- delivery
to new owners expected to take
place by January
Eagle Uniquely Focused on Supramax/Ultramaxes
Source(s): VesselsValue
-
13
9
-
5
1
10
1
-
-
-
-
-
4
1
4
-
5
10
15
<5 5-7.5 7.5-10 10-12.5 12.5-15 >15
Static Bought Vessels Sold
0
10
20
30
40
50
60
70
80
Eagle
Bulk
Scorpio Genco Star Bulk Navios
MH
Navios
MP
Golden
Ocean
Diana Safe
Bulkers
Supramax / Ultramax Handysize Panamax Capesize
Financial
10
Earnings
$ Thousands except EPS 3q17 2q17 3q16 3q17 YTD 3q16 YTD
REVENUES, net of commissions 62,711 53,631 35,788 162,197 82,657
EXPENSES
Voyage expenses 17,463 13,380 11,208 44,196 27,902
Vessel expenses 20,110 19,309 17,708 57,374 56,783
Charter hire expenses 9,652 6,445 3,822 19,971 6,979
Depreciation and amortization 8,981 8,021 9,854 24,494 28,905
General and administrative expenses 8,621 8,590 5,224 24,990 15,430
Refinancing charges - - (5) - 5,869
Vessel Impairment - - - - 6,167
(Gain) / Loss on sale of vessels (202) (1,806) (299) (2,100) 102
Total operating expenses 64,625 53,939 47,512 168,925 148,137
OPERATING LOSS (1,914) (308) (11,724) (6,728) (65,480)
OTHER EXPENSES
Interest expense (cash), net 3,265 2,574 6,855 8,314 12,140
Non Cash Interest Expense 4,429 4,099 491 12,308 2,923
Other (Income)/Expense 647 (1,093) 289 (139) 590
Total other expense, net 8,341 5,580 7,635 20,483 15,653
Net Loss (10,255) (5,888) (19,359) (27,211) (81,133)
Weighted average shares outstanding 70,329,252 70,329,050 29,607,639 68,782,517 11,318,249
EPS (Basic and Diluted) (0.15) (0.08) (0.65) (0.40) (7.17)
Adjusted EBITDA 8,397 9,307 (3,398) 22,257 (24,550)
Adjusted EBITDA represents EBITDA adjusted to exclude the items which represent certain non-cash, one-time and other items such as
vessel impairment, gain / loss on sale of vessels, refinancing expenses, non-cash compensation expenses and amortization of fair value
below contract value of time charter acquired that the Company believes are not indicative of the ongoing performance of its core operations.
11
EBITDA
$ Thousands 3q17 2q17 3q16 3q17 YTD 3q16 YTD
Net loss (10,255)$ (5,888)$ (19,359)$ (27,212)$ (81,133)$
Less adjustments to reconcile:
Interest expense 7,837 6,859 7,434 21,141 15,155
Interest income (143) (186) (88) (518) (92)
EBIT (2,561) 785 (12,013) (6,589) (66,071)
Depreciation and amortization 8,981 8,021 9,854 24,494 28,905
EBITDA 6,420 8,806 (2,159) 17,905 (37,166)
Less adjustments to reconcile:
One-time and non-cash adjustments* 1,977 501 (1,239) 4,352 12,616
Adjusted EBITDA 8,397$ 9,307$ (3,398)$ 22,257$ (24,550)$
Adjusted EBITDA represents EBITDA adjusted to exclude the items which represent certain non-cash, one-time and other items such as
vessel impairment, gain / loss on sale of vessels, refinancing expenses, non-cash compensation expenses and amortization of fair value
below contract value of time charter acquired that the Company believes are not indicative of the ongoing performance of its core operations.
12
Cash Flow
Cash Flow from Operations ($ millions)
3Q17 Cash Flow Change ($ millions)
-19.5 -13.2 -7.5 -5.3
-2.0
-3.8
7.3
-23.9
-10.1
-7.5
-4.5
2.1
4.9
2.7
1q16 2q16 3q16 4q16 1q17 2q17 3q17
Cash flow from operations
ex Changes in operating assets and liabilities
13
Balance Sheet + Liquidity Position
Liquidity Position ($ thousands) Debt Maturity ($ thousands)
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
31-Mar 30-Jun 30-Sep 31-Dec 31-Mar 30-Jun 30-Sep
Cash Revolver Availaility
0
50,000
100,000
150,000
200,000
2017 2018 2019 2020 2021 2022
1st Lien Facility 2nd Lien Facility Ultraco
$ Thousands $ Thousands
Cash 64,323
Cash 64,323 Debt (Net of debt issuance costs) 313,759
Undrawn availability 30,000 Stockholder's Equity 476,299
Capitalization 725,735
Total Liquidity as of September 30, 2017 94,323 Net Debt / Capitalization 43%
September 30, 2017September 30, 2017
14
Cash Breakeven per Vessel per Day
Vessel
Expenses
66%
Drydocking
3%
G&A
21%
Interest
expense
10%
3q17 YTD
Breakdown
by Category
3q17 3q17 YTD FY16 FY15
OPERATING
Vessel Expenses $ 4,627 $ 4817 $4,803 $ 5,239
Drydocking 535 224 243 688
G&A* 1,443 1,511 1,246 1,334
Total Operating 6,605 6,552 6,292 7,261
DEBT SERVICE
Net Interest expense 751 742 631 604
TOTAL CASH BREAKEVEN $ 7,356 $ 7,294 $6,923 $ 7,865
2016 Excluding one time extraordinary legal expenses
15
OPEX per Vessel per Day
Full Year (“FY”) and Nine-month (“(9M”) figures exclude Extraordinary items
2017 data excludes the three DIAMOND-53 vessels sold- Avocet, Woodstar, and Wren
Focused on Cost and Improved Fleet Condition
$5,239
$4,804
$4,726 $4,696
$4,458
$63
$67 $153
$103
$4,000
$4,100
$4,200
$4,300
$4,400
$4,500
$4,600
$4,700
$4,800
$4,900
$5,000
$5,100
$5,200
$5,300
2015 2016 1q17 2q17 3q17
Recurring Extraordinary
9m17* Recurring
OPEX at $4,608
16
Drydocking Schedule
11
9
16
14
5
6
21
14
2
0
5
10
15
20
25
4q17 2018 2019 2020 2021 2022
DD BWT
Number of Ships (Dry Dockings + Ballast Water Treatments)
Industry
$1,000
$3,000
$5,000
$7,000
$9,000
$11,000
$13,000
$15,000
$17,000
Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17
Global (BSI) Atlantic Pacific
Improving Rates Indicative of Better Fundamentals
18
Baltic Supramax Index (BSI)
Source(s): Clarksons
BSI is based on the derived Average of the 6 T/C Routes for the Baltic Supramax Index
3Q17
BSI is up ~372% since hitting all-
time low in February 2016
-40
-20
0
20
40
60
80
100
120
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018f 2019f
Deliveries Scrapping Net Supply
19
Source(s): Clarksons
2018f and 2019f Scrapping rate is inline with 2017e and long-term historical average
Net Supply Growth at Lowest Level in 13 Years
Deliveries + Scrapping (DWT)
Orderbook (as a % of the
on-the-water fleet) stands
at just 8%, a 15yr low
20
Trade figures in million MTs
Source(s): Bloomberg, Clarksons
Grain Trade Expected to Grow by 6.3% in 2017
U.S Grain Exports Chinese Soybean Imports
50
55
60
65
70
75
80
85
90
95
Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17
Actual Period Average
10
20
30
40
50
60
70
Oct-12 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17
Actual Period Average
Russian Grain Exports
15
20
25
30
35
Oct-12 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17
Actual Period Average
Processed soybeans are typically used
for animal feed and in food production
Brazilian Soybean Exports
30
35
40
45
50
55
60
65
70
Dec-13 Dec-14 Dec-15 Dec-16 Dec-17
Actual Period Average
Approximately 70% of
product is sent to China
Record crop boosting wheat
exports, increasing Russia’s
global market share
Draught conditions negatively
affecting U.S. crop and exports
21
Trade figures in million MTs
Source(s): Bloomberg, Clarksons
Minor Bulks Represent 37% of Total Drybulk Trade
Salt Trade Agribulks + Fertilizer Trade
20
30
40
50
60
70
80
90
100
110
Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Aug-17
China + India Period Average
40
42
44
46
48
50
Dec-13 Dec-14 Dec-15 Dec-16 Dec-17
Actual Period Average
Chile is a major
exporter of salt
Petcoke can be used as a substitute
for coal in power generation
290
295
300
305
310
315
320
325
330
335
Dec-13 Dec-14 Dec-15 Dec-16 Dec-17
Actual Period Average
Fertilizer demand growth driven
primarily by Brazil and India
Bauxite Trade
70
75
80
85
90
95
100
105
110
Dec-13 Dec-14 Dec-15 Dec-16 Dec-17
Actual Period Average
Bauxite trade expected to
increase by 18% Y/Y
U.S. Petcoke Exports to China + India
270
280
290
300
310
320
330
Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17
Actual Period Average
22
Iron Ore Imports
Coastal Bulk Freight Index
Trade figures in million MTs
Source(s): Bloomberg, Clarksons
China Expected to Grow by 6.8% in 2017
Coal Imports
50
60
70
80
90
100
Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Aug-17
Actual Period Average
8
10
12
14
16
18
20
22
24
26
28
30
Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Aug-17
Actual Period Average
700
800
900
1,000
1,100
1,200
1,300
1,400
1,500
Oct-12 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17
Actual Period Average
Imports driven by increased
construction and infrastructure
Monthly imports back above five
year average
Higher rates is indicative of the
improved economic environment
Minor Bulk Imports
Increase in imports driven by
higher demand of bauxite,
manganese ore, and forest
products
-
0.25
0.50
0.75
1.00
1.25
1.50
1.75
2.00
2.25
2.50
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
12.0%
13.0%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e 2018f 2018f 2020f
Drybulk Trade / Global GDP Ratio (RHS) Global GDP Y/Y % (LHS)
Drybulk Trade Y/Y % (LHS) DT/GDP Ratio Historical Average (RHS)
23
Source(s): Clarksons, IMF
Drybulk Trade / Global GDP Ratio for 2009 extracted from Historical Average calculation
Drybulk Trade Growth vs. Global GDP Growth
Drybulk Trade Growth Surpasses Global GDP
Implied drybulk trade growth
of ~4.5% based on reversion
to DT/GDP avg.
Summary
25
Eagle: Uniquely Positioned to Capitalize on Market
Vessel Segment: SUPRAMAX / ULTRAMAX
Superior performance and results
Business Model: OWNER-OPERATOR + INHOUSE MGMT.
Operating Scale: 46 SHIPS OWNED + TC-in FLEET
Balance Sheet: WELL-CAPITALIZED
Corporate Governance: MAJORITY INDEPENDENT BOARD
Management Team: PROVEN TRACK RECORD
Q&A
Appendix
28
One of the largest owners of Supramaxes globally
Owned Fleet*
VESSEL DWT BUILT VESSEL DWT BUILT VESSEL DWT BUILT VESSEL DWT BUILT
Singapore Eagle 63,386 2017 Oriole 57,809 2011 Kingfisher 57,776 2010 Jaeger 52,248 2004
Stamford Eagle 61,530 2016 Owl 57,809 2011 Ibis Bulker 57,775 2010 Kestrel I 50,326 2004
Westport Eagle 63,344 2015 Petrel Bulker 57,809 2011 Golden Eagle 55,989 2010 Skua 53,350 2003
Fairfield Eagle 63,301 2013 Puffin Bulker 57,809 2011 Imperial Eagle 55,989 2010 Shrike 53,343 2003
Greenwich Eagle 63,301 2013 Roadrunner Bulker 57,809 2011 Thrasher 53,360 2010 Tern 50,200 2003
Groton Eagle 63,301 2013 Sandpiper Bulker 57,809 2011 Bittern 57,809 2009 Goldeneye 52,421 2002
Mystic Eagle 63,301 2013 Thrush 53,297 2011 Canary 57,809 2009 Osprey I 50,206 2002
Rowayton Eagle 63,301 2013 Egret Bulker 57,809 2010 Crane 57,809 2009 Condor 50,296 2001
Southport Eagle 63,301 2013 Gannet Bulker 57,809 2010 Stellar Eagle 55,989 2009 Hawk I 50,296 2001
Madison Eagle 63,258 2013 Grebe Bulker 57,809 2010 Crested Eagle 55,989 2008 Merlin 50,296 2001
Stonington Eagle 63,301 2012 Martin 57,809 2010 Crowned Eagle 55,940 2008
Nighthawk 57,809 2011 Jay 57,802 2010 Cardinal 55,362 2004
VESSEL COUNT 46 DWT 2.6 million AGE 8.0 years
Green ring-fencing represents the 11 Ultramax vessels recently purchased
Excludes Avocet and Wren which have been sold but not delivered to new owners
29
Definitions
Adjusted EBITDA
Adjusted EBITDA is a non GAAP financial measure that is used as a supplemental financial measure by our management and
by external users of our financial statements, such as investors, commercial banks and others, to assess our operating
performance as compared to that of other companies in our industry, without regard to financing methods, capital structure or
historical costs basis. Our Adjusted EBITDA should not be considered an alternative to net income (loss), operating income
(loss), cash flows provided by (used in) operating activities or any other measure of financial performance or liquidity presented
in accordance with U.S. GAAP. Our Adjusted EBITDA may not be comparable to similarly titled measures of another company
because all companies may not calculate Adjusted EBITDA in the same manner. Adjusted EBITDA represents EBITDA
adjusted to exclude the items which represent certain non-cash, one-time and other items such as vessel impairment, gain /
loss on sale of vessels, refinancing expenses and non-cash compensation expenses that the Company believes are not
indicative of the ongoing performance of its core operations.
TCE
Time charter equivalent ( the "TCE") is a non-GAAP financial measure that is commonly used in shipping industry primarily to
compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters,
because charter hire rates for vessels on voyage charters are generally not expressed in per-day amounts while charter hire
rates for vessels on time charters generally are expressed in such amounts. The Company defines TCE as shipping revenues
less voyage expenses and charter hire expenses, adjusted for the impact of one legacy time charter and gains on FFAs and
bunker swaps, divided by the number of owned available days. TCE provides additional meaningful information in conjunction
with shipping revenues, the most directly comparable GAAP measure, because it assists Company management in making
decisions regarding the deployment and use of its vessels and in evaluating their financial performance. The Company's
calculation of TCE may not be comparable to that reported by other companies.
Owned available days is the number of our ownership days less the aggregate number of days that our vessels are off-hire
due to vessel familiarization upon acquisition, repairs, vessel upgrades or special surveys. The shipping industry uses
available days to measure the number of days in a period during which vessels should be capable of generating revenues.
30
TCE Calculation
Owned available days is the number of our ownership days less the aggregate number of days that our vessels are off-hire due to
vessel familiarization upon acquisition, repairs, vessel upgrades or special surveys.
$ Thousands except TCE and days 1q16 2q16 3q16 4q16 1q17 2q17 3q17
Revenues, net 21,278 25,590 35,788 41,836 45,855 53,631 62,711
Less:
Voyage expenses (9,244) (7,450) (11,208) (14,192) (13,353) (13,380) (17,463)
Charter hire expenses (1,489) (1,668) (3,822) (5,866) (3,873) (6,446) (9,652)
Reversal of one legacy time charter 1,045 783 670 432 (97) 594 329
Realized gain/loss on FFAs and bunker swaps - - (451) (561) - 91 248
TCE revenue 11,590 17,255 20,977 21,649 28,531 34,491 36,173
Owned available days * 3,945 3,902 3,700 3,653 3,671 3,771 4,177
TCE 2,938 4,422 5,669 5,926 7,772 9,146 8,660
www.eagleships.com