9th Global Shipping & Logistics Conferencestarbulk.irwebpage.com/files/sblkjeff090612.pdfFleet...

NASDAQ: SBLK September 2012

9th Global Shipping & Logistics Conference

Except for the historical information contained herein, this presentation contains among other things, certain forward-looking statements,

within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such statements may

include, without limitation, statements with respect to the Company’s plans, objectives, expectations and intentions and other statements

identified by words such as “may”, ‘could”, “would”, ”should”, ”believes”, ”expects”, ”anticipates”, ”estimates”, ”intends”, ”plans” or

similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are

subject to significant risks and uncertainties, including those detailed in the Company’s filings with the Securities and Exchange

Commission. Actual results, including, without limitation, operating or financial results, if any, may differ from those set forth in the

forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based

on various factors (many of which are beyond the Company’s control).

Forward-looking statements include statements regarding:

• The delivery and operation of assets of Star Bulk, the surviving corporation in the Redomiciliation Merger;

• Star Bulk’s future operating or financial results;

• Future, pending or recent acquisitions, business strategy. Areas of possible expansion, and expected capital spending or

operating expenses; and

• Drybulk market trends, including charter rates and factors affecting vessel supply and demand.

The financial information and data contained in this presentation is unaudited and does not conform to the Securities and Exchange

Commission’s Regulation S-X. Accordingly, such information and data may not be included in , or may be presented differently in, the

Company’s proxy statement to solicit shareholder approval for the Redomiciliation Merger. This presentation includes certain estimated

financial information and forecasts (EBIT, EBITDA, and Time Charter Equivalent Revenue) that are not derived in accordance with

generally accepted accounting principles (“GAAP”). The Company believes that the presentation of these non-GAAP measures provides

information that is useful to the Company’s shareholders as they indicate the ability of Star Bulk, if the Redomiciliation Merger is effected,

to meet capital expenditures, working capital requirements and other obligations, and make distributions to its stockholders.

The Company undertakes no obligation to publicly update or revise any forward-looking statements or other information or data

contained in this joint proxy statement/prospectus, or the documents to which we refer you in this joint proxy statement/prospectus,

whether to reflect any change in our expectations with respect to such statement or any change in events, conditions or circumstances

on which any statement is based, or otherwise.

Safe Harbor Statement

Company Highlights

Star Bulk Carriers Corp

Operational since November 2007 (following de-SPAC)

Growing quality dry bulk fleet

Initial fleet of 8 dry bulk vessels

Took delivery of 4 capesize vessels within 2011

Sold one of our oldest capesize vessels in 2012

Current fleet of 14 vessels and 1.5 million dwt

Average age of 10 years

Consistent and conservative strategy

Focused on Capesize and Supramax Vessels

Front-loaded loans

Focused on revenue visibility

Transparent corporate structure

Wholly owned management company

In-house management for all our vessels

Shipmanagement services to one third party vessel

Balance Sheet Profile

No CAPEX – No Interest Rate Swaps

Total Outstanding Debt $235.1m (1)

Cash (including restricted) $37.1m (1)

Net Outstanding Debt $198.0m

Net Debt /2012 Adjusted EBITDA(1) 3.8x

2012 Remaining Principal Repayment(2) $8.9m

(1) Annualized 1H 2012 EBITDA excluding non-cash items (2) As of August 31st 2012 All figures approximate

Solid Financial Position

68

37

31

9 32 33 28

0

10

20

30

40

50

60

70

80

2010 2011 2012 2013 2014 2015

Principal Repayment

40

$millions

Vessel Type Built DWT

Star Aurora Capesize 2000 171,199

Star Big Capesize 1996 168,404

Star Borealis Capesize 2011 179,678

Star Mega Capesize 1994 170,631

Star Polaris Capesize 2011 179,546

Star Sigma Capesize 1991 184,403

Star Cosmo Supramax 2005 52,247

Star Delta Supramax 2000 52,434

Star Epsilon Supramax 2001 52,402

Star Gamma Supramax 2002 53,098

Star Kappa Supramax 2001 52,055

Star Omicron Supramax 2005 53,489

Star Theta Supramax 2003 52,425

Star Zeta Supramax 2003 52,994

Total 14 Vessels 1,475,005

Fleet Growth

Million dwt

4 capesize vessels delivered in 2011

75% fleet growth in 2011 in dwt terms

Average fleet age ~10 years – steady since 2007

14 owned vessels – 15 managed vessels

Fleet Growth & Renewal

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2007 2008 2009 2010 2011 2012*

Managed Owned

* Up to August 31, 2012

(1) As of August 31, 2012.

Current Fleet Coverage(1): 86% for 2012 - 35% for 2013 – 19% for 2014

Capesize Fleet Coverage(1): 97% for 2012 - 73% for 2013 – 43% for 2014

Supramax Fleet Coverage(1): 77% for 2012

Total contracted gross revenue of approximately $152 million(1)

No “legacy” charters

Fleet Employment Profile xx

NA

DSW

Pacific Basin

Pacific Basin

EarlierCapesize

Supramax

Major Mining Company


Star Borealis

$25,000

$24,500

$17.05/ton

$16,500

$24,750

Nov-2015


$7,100

$11,750

$14,100

$11,750

Gross TC Rate

$27,500

$9,000

$14,050

$12,500

$9,750

Star Aurora

4Q

20131Q 2Q 3Q 4Q

Vessel Charterer

Star Mega

2012 20141Q

Star Big

2Q 3Q 4Q 1Q 2Q 3Q

Jul-2021

Star Polaris

Star Cosmo

Redelivery dates: Latest

Star Theta

Star Zeta

Star Delta

Star Epsilon

Star Gamma

Star Kappa

Star Omicron

Star Sigma

Pancoast

Notes:

Star Bulk – NOT a Greek Company

Shipping is an international business by nature

Assets are travelling around the world

In the process of opening branch in the Far-East

Business Continuity Plan and Disaster Recovery Plan in place

Company can relocate easily

Our revenues and services have nothing to do with Greece

Vessel OPEX lower while average vessel size grows

G&A expenses contained while management capacity grows

Overall vessel quality improves every year on rigorous quality controls

Management Efficiency and Optimization

$6.9m

$8.9m $8.3m

$4.0m $3.9m 27

34

42 40

53

0

10

20

30

40

50

60

0

1

2

3

4

5

6

7

8

9

10

2009 2010 2011 1H2011 1H2012

Core G&As Headcount (Annual Average)

G&A Expenses* vs No of Employees

2.2

1.4

0.9

2.0

3.7 3.5 3.5 3.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2009 2010 2011 1H2012

SBLK Industry Average

Average Deficiencies per PSC Inspection xx

$6,903

$5,665 $5,642 $5,416

92K

83K

102K 106K

40K

50K

60K

70K

80K

90K

100K

110K

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

2009 2010 2011 1H2012

Average Daily OPEX Average vessel size (dwt)

Average Daily OPEX vs Vessel Size

* Excluding one-off severance payments and share incentive plans

Competitive Strengths

High quality modern fleet

Experienced and dedicated

executive team

Diverse and high quality charterers

In-house commercial and

technical management

Moderately leveraged balance

sheet

Efficiency, transparency,

flexibility

Market Comments

BDI near all time lows

Asset values at 20-year lows

Star Bulk trades at a discount to its NAV

Promising returns for those who enter at the low part of the cycle

A Low Entry Point

BDI vs Cape Secondhand Values

0

2,000

4,000

6,000

8,000

10,000

12,000

0

20

40

60

80

100

120

140

160

180

1990-0

1

1991-0

1

1992-0

1

1993-0

1

1994-0

1

1995-0

1

1996-0

1

1997-0

1

1998-0

1

1999-0

1

2000-0

1

2001-0

1

2002-0

1

2003-0

1

2004-0

1

2005-0

1

2006-0

1

2007-0

1

2008-0

1

2009-0

1

2010-0

1

2011-0

1

2012-0

1

$ million Cape 180k 5Y Inflation Adj. Price Baltic Dry Index - BDI (RHS)

Supply Update

Million dwt

08-11 average delivery slippage ~30%

Annualized year-to-date deliveries ~115m

Deliveries should slow down after 2012

Acceleration of scrapping so far points to more than 30m dwt annualized

Scrapping History

Source: Clarksons, Aug 2012

4.6

8.2 6.0

4.2

0.4 1.0 1.7 0.6

5.5

10.6

5.9

22.3

18.3

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

?

0

10

20

30

40

50

60

70

FY2012 2012* 2013 2014 2015

Million dwt

Capesize Panamax Handymax Handysize

Drybulk Orderbook

*Remaining as of 1/8/12 Source: Clarksons, Aug 2012

24.5

43.1

80.2

98.1

30.4

71.3

125.6 137.3 138.9

0

20

40

60

80

100

120

140

160

2008 2009 2010 2011 2012

Million dwt

Deliveries Orderbook

?

Deliveries vs Orderbook

Source: Clarksons, Aug 2012

Chinese Demand Update

Coal imports growth expected to accelerate

Chinese iron ore imports expected to continue growing

Iron Ore

Chinese Iron Ore Cost Curve

Iron Ore Capacity Projection

Projects of 1.5 billion tons of iron ore capacity on the drawing board – not defined by short term price movement

Chinese iron ore of low quality - expensive and price sensitive

China gradually replacing domestic with imported iron ore

Seaborne Iron Ore Trade

Coal

Chinese thermal coal electricity demand growing at high pace

Chinese coal imports have surged, but still less than 6% of total consumption

Indian fast growing coal imports expected to continue

0

5

10

15

20

25

Coal Imports Coal Imports (3mma)

Source: Custom statistics, Bloomberg

Chinese Coal Imports

Million Tons

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

01/2

005

05/2

005

09/2

005

01/2

006

05/2

006

09/2

006

01/2

007

05/2

007

09/2

007

01/2

008

05/2

008

09/2

008

01/2

009

05/2

009

09/2

009

01/2

010

05/2

010

09/2

010

01/2

011

05/2

011

09/2

011

01/2

012

05/2

012

China Thermal Coal Electricity

Billion kWh

Source: Custom statistics, Bloomberg

Indian Coal Imports

Million Tons

Source: Braemar

Appendix

2nd Quarter 2012 Financial Highlight

“Adjusted” figures exclude non-cash items

2nd Quarter 2012 2nd Quarter 2011

Gross revenue $21.8m $22.7m

G&A expenses $2.1m $2.9m

Net income/(loss) $(4.6)m $1.7m

Net income/(loss) Adjusted $(2.9)m $2.3m

EBITDA Adjusted $8.4m $15.1m

TCE Adjusted $14,628 $18,664

Average daily OPEX per vessel $5,241 $5,609

EPS Adjusted $(0.04) $0.04

1st Half 2012 Financial Highlights

“Adjusted” figures exclude non-cash items

1st Half 2012 1st Half 2011

Gross revenue $49.8m $52.2m

G&A expenses $5.3m $7.0m

Net income/(loss) $(4.5)m $3.4m

Net income Adjusted $3.2m $3.6m

EBITDA Adjusted $26.4m $29.3m

TCE Adjusted $15,724 $20,943

Average daily OPEX per vessel $5,416 $5,360

EPS Adjusted $0.04 $0.06

Balance Sheet

(in '000s) June 30, 2012 Dec 31, 2011

(unaudited) (audited)

ASSETS

CURRENT ASSETS 30,176 31,397

FIXED ASSETS 608,238 638,532

NON CURRENT ASSETS 43,175 47,999

TOTAL ASSETS 681,589 717,928

LIABILITIES

CURRENT LIABILITIES 49,031 52,154

NON-CURRENT LIABILITIES 204,680 231,561

STOCKHOLDERS' EQUITY 427,878 434,213

TOTAL LIABILITIES 681,589 717,928

Income Statement 2nd Quarter 2012

P&L WITH NON CASH ITEMS

(in $000's) Apr 1 - Non-cash Adjusted Apr 1 - Adjusted Apr 1 -

Jun 30, 2012 Adjustments Jun 30, 2012 Jun 30, 2011

REVENUES 21,802 1,583 23,385 22,6780

(EXPENSES): 0

Voyage expenses -5,324 0 -5,324 -4,387

Vessel operating expenses -6,678 -0 -6,678 -5,553

Drydocking expenses -930 0 -930 -517

Depreciation -9,426 0 -9,426 -12,069

Gain/Loss on derivative instruments 0 0 0 70

General and administrative expenses -2,134 71 -2,063 -2,342

Loss on time charter agreement termination 0 0 0 -65

Other operational Loss 0 0 0 -4,050

Other Operational gain 0 0 0 9,240

Loss on sale of vessel -2 -2 0

Total expenses -24,494 71 -24,423 -19,673

Operating (loss)/ income -2,692 1,654 -1,038 3,005

Interest and finance costs -1,978 0 -1,978 -922

Interest income and other 116 0 116 184

Total other income (expenses), net -1,862 0 -1,862 -738

Net income -4,554 1,654 -2,900 2,267

Income Statement 1st Half 2012

P&L WITH NON CASH ITEMS

(in $000's) Jan 1 - Non-cash Adjusted Jan 1 - Adjusted Jan 1 -

Jun 30, 2012 Adjustments Jun 30, 2012 Jun 30, 2011

REVENUES 49,807 3,167 52,974 52,0060

(EXPENSES): 0

Voyage expenses -14,029 0 -14,029 -11,021

Vessel operating expenses -14,169 0 -14,169 -10,671

Drydocking expenses -1,026 0 -1,026 -1,358

Depreciation -19,197 0 -19,197 -24,009

Management fees 0 0 0 -54

Gain/Loss on derivative instruments 64 -82 -18 70

General and administrative expenses -5,337 1,402 -3,935 -6,386

Gain on time charter agreement termination 6,454 0 6,454 1,598

Loss on time charter agreement termination 0 0 0 -65

Other operational Loss 0 0 0 -4,050

Other Operational gain 140 0 140 9,240

Loss on sale of vessel -3,164 3,164 0 0

Total expenses -50,264 4,484 -45,780 -46,706

Operating (loss)/ income -457 7,651 7,194 5,300

Interest and finance costs -4,142 0 -4,142 -2,041

Interest income and other 139 0 139 346

Total other income (expenses), net -4,003 0 -4,003 -2,041

Net income -4,460 7,651 3,191 3,605

Thank you

9th Global Shipping & Logistics Conferencestarbulk.irwebpage.com/files/sblkjeff090612.pdfFleet...

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