Star Bulk Carriers : Corporate Presentation September 2024

CORPORATE PRESENTATION

SEPTEMBER 2024

KEY INVESTMENT HIGHLIGHTS

The largest, most liquid US-listed dry bulk company with significant operating leverage to a market with strong fundamentals

The Largest US-Listed Dry Bulk Company

• Fleet of 159 vessels, on a fully delivered(1) basis, with an average age of ~11.4 years
• Significant leverage to strong dry bulk supply fundamentals; enhanced by low overhead and operating expenses
• Largest market capitalization and greatest liquidity among US-listed peers
• Consolidator in the dry bulk industry; Completed the Eagle Bulk merger on April 9th

Fully Integrated Management Platform

• Consistently amongst the lowest OPEX and G&A operators while maintain highest Rightship ranking

Strong Balance Sheet

• Total cash(1) of ~$516 million and limited capex requirement
• Net reduction of ~34% since 2021

Shareholder's Friendly Capital Allocation Policy

• Since 2021, dividend distributions were over $1.25 billion or $12.2 per share
• Share buybacks are over $0.4 billion for the same period

Favorable Fundamentals

• Fleet growth during 2024-26 is expected to be limited and is unlikely to exceed 3.0% per annum.
• Demand is projected to increase by 2.2% in tons and 4.3% in ton-miles
• ~97% of Star Bulk's fleet is equipped with scrubbers, providing leverage to increasing fuel price spreads and a strong competitive advantage during downturns

Fleet Size (2) (DWT)

15.0M

11.7M

4.8M4.4M5.0M

Peer 1

Peer 3

Peer 4

Peer 2

Market Cap (2) ($ billions)

$2.5$2.5

			$0.7	$0.5
				$0.3
		Peer 1	Peer 2	Peer 3	Peer 4

Trading Liquidity (2) (90-day $ millions)

$38.5

$27.0

$11.3

$3.2$1.9

Peer 1

Peer 2

Peer 3

Peer 4

3	(1) As of September 2nd, 2024

BUILDING AN INSTITUTIONAL DRY BULK COMPANY

Development of fleet, market cap. and trading volume

4,000

Merged with Eagle Bulk, from which we acquired 52 Supramax vessels

100,000

Successful track record of

3,500

acquiring fleets by issuing shares at or above NAV

3,000

2,500

2,000

1,500

1,000

500

Acquired 3 newbuilding Newcastlemax vessels from Ocean Bulk Carriers

Acquired a fleet of 15 vessels from Songa Bulk

Acquired a fleet of 16 vessels from

Augustea Atlantica and York Capital

Management

Acquired 3 vessels from E.R. Capital

Holdings

Acquired 11 vessels from Delphin Shipping

Acquired 3 vessels from E.R. Capital Holdings and 7 vessels from Scorpio Bulkers

During 2023-2024 sold 26 vessels, part of our fleet renewal strategy to dispose older tonnage

90,000

80,000

70,000

~$2.5

Bn

50,000

	~$37.5
40,000	Mn
30,000
20,000
10,000

-

Jan-17Apr-17Jul-17Oct-17Jan-18Apr-18Jul-18Oct-18Jan-19Apr-19Jul-19Oct-19Jan-20Apr-20Jul-20Oct-20Jan-21Apr-21Jul-21Oct-21Jan-22Apr-22Jul-22Oct-22Jan-23Apr-23Jul-23Oct-23Jan-24Apr-24Jul-24

0

90day Avg. Value ($)		Market Cap.

4	Source: Bloomberg

CREATING VALUE FOR SHAREHOLDERS

Net Debt Reduction (in $million)

											155			160
126	128					126						140
$1,407															120
											(2)
											$1,209
																100
		$1,005						$937
										$865				80
																60
																40
																20
																0
	Q2 2021				Q2 2022					Q2 2023		Q2 2024 (1)
					Net Debt		Scrap Value	# vessels

Capital Allocation & Fleet Growth

• Star Bulk has been creating value for its shareholders through consecutive fleet buyouts by issuing shares at or above NAV.
• Full payout dividend policy resulted in over $1.25 billion cumulative dividends since 2021
• In addition, since 2022 we have completed share buybacks of $423 million
• 34% net debt reduction since 2021. Net debt covered entirely by fleet scrap value

Dividends (in $million)

$1,263

			$1,095	$168
		$961
		$134
		$526
$435
$435
2021	2022	2023	6M 2024
		Dividend Declared		Cumulative dividend payments

Total Shareholder Value Creation (in $million)

Total actions of $2.3 billion in shareholders value creation since 2021

$655	Dividend Payments
	Share Buybacks
$1,263	Regular Debt Amortization
$423

	Notes:
5	(1)	Net Debt figure for Q2 2024 excludes Convertible Bond that matured on August 1st
(2)	Indicative scrap values for SBLKs fleet (2.4 million lightweight) based on current market scrap prices of $510/ldt

CONTINUED OPERATIONAL EXCELLENCE

We operate a fleet with one of the lowest average daily OPEX among our peers without compromising quality

•

•

•

For Q2 2024 vessel OPEX(1) were $5,319 per vessel per day

Net cash G&A(2) expenses per vessel per day were $1,371 for Q2 2024

We are consistently in the top 3 dry bulk operators amongst our peer group in Rightship Ratings

Average Daily OPEX(1)

Average Rightship risk rating (June 2024)

$10,000

$9,000

$8,000

$7,000

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0

152,281

150,000

	102,980	106,543	4.6	4.6	4.5
97,107	102,045
			100,000		3.8
			$6,847
		$5,993	$6,275		3.4

$5,319	50,000
	$5,089
	0

-50,000

-100,000

SBLK

Peer A

Peer B

Peer C

Peer D

PEER 1

SBLK

PEER 2

PEER 3

PEER 4

Daily OPEX

Average dwt

1. Figures exclude pre-delivery and COVID -19 related expenses
2. Excludes share incentive plans, includes management fees Source: Company filings

6

INTEGRATION WITH EAGLE BULK FOCUSES ON SYNERGIES

• Global presence of combined entity solidified in three different continents:
• • Far East: Singapore offices have merged into one and continue as a commercial and technical management hub aligning ship management practices, covering Asia/ Pacific
  • USA: Stamford office continues operations both for commercial and technical management
  • Europe: Headquarters in Athens and Limassol office complemented with commercial presence in Copenhagen
• Commercial teams for the Supramax and Ultramax vessels in the three continents are close to completion of their integration, managing the second largest Supramax and Ultramax fleet globally
• Significant synergies are expected from the centralization of the Procurement of all stores, spares parts, bunkers and lubricants for the combined fleet
• Crewing management is gradually being taken in-house, with the expected cost reduction of $600/vessel/day to be realized by Q2 2025
• Dry docks of 12 ex-Eagle Bulk vessels have benefited from Star Bulk competitive pricing agreements with service providers and shipyards globally
• Marine Safety Quality and Technical maintenance standards, processes, and policies applied across the combined fleet aligning with the Star Bulk Rightship Safety Score and Port State Control performance
• Commercial, financial, technical, vessels performance systems are being integrated to enable efficiencies among the different offices and to create further synergies

7

SCALED FLEET WITH SIGNIFICANT OPERATING LEVERAGE

Fleet Snapshot

Fleet composition based on dwt

• We have five firm shipbuilding contracts with Qingdao Shipyard for the construction of 82k dwt Kamsarmax newbuilding vessels
• Our newbuilding vessels are expected to be delivered in Q4 2025, Q2 and Q3 2026
• During 2024, we have agreed to sell ten vessels for total gross proceeds of $180 million with an average age of 15.1 years
• We have in total eight long term charter-in contracts plus two newbuilding charter-in contracts to be delivered in H2 2024
• CAPEX for vessel upgrades focused on sustainable shipping and compliance with emissions regulations

Ultramax /

Supramax

29%

159	Newcastlemax /
vessels	Capesize
42%

Panamax /

Kamsarmax

29%

Fleet Breakdown (by # vessels)

											4
					3
					5
	1										48
				39
												25
17	17
		7						1
Newcastlemax	Capesize	Post Panamax	Kamsarmax			Panamax	Ultramax	Supramax
				OTW			NB			CH-IN

8	(1) Including five SBLK newbuilding vessels

A SOLID AND TRANSPARENT ESG STRATEGY

The Star Bulk vision

Our ESG Performance

Our Decarbonization Strategy

To be the global leader in sustainable dry bulk shipping

• Committed to the United Nations Global Compact, endorsing its Ten Principles on human rights, labor, environment, and anti-corruption
• Contributing to the advancement of the United Nations Sustainable Development Goals

Environment

• Ensuring timely and efficient compliance with environmental regulations
• Tracking and disclosing the company's GHG emissions throughout the entire value chain
• Establishing Science-Based Targets to outline the pathway toward the reduction of carbon footprint
• Collaborating with our partners on initiatives such as the Poseidon Principles and the Sea Cargo Charter

Society

• Strong retention rates for both onboard and shore-based employees
• Top rankings in the RightShip Safety Score among dry bulk operators globally
• Commitment to the wellbeing and professional development of our employees
• Investments in community initiatives, including charity, education, and sports
• Inclusion of female cadets in our vessel crews

Governance

• A robust, independent Board of Directors consisting of seasoned shipping experts
• Comprehensive risk management practices, including strong cybersecurity measures
• Performance management directly tied to compensation and benefits
• An ESG Committee established at the Board of Directors level
• Annual ESG reporting, participation in the Carbon Disclosure Project

To lead by example in the industry's efforts towards a net zero future:

• Renewing the Star Bulk fleet
• Monitoring and transparent reporting of emissions
• Improving the energy efficiency of our fleet
• Participating in R&D for new technologies and alternative fuels
• Developing partnerships and participating in alliances

9

MARKET UPDATE