NASDAQ: SBLK September 2012
9th Global Shipping & Logistics Conference
Page 2
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
Page 3
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
Page 4
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
Page 5
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
Page 6
(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
Major Mining Company
Star Borealis
$25,000
$24,500
$17.05/ton
$16,500
$24,750
Nov-2015
Major Mining Company
$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:
Page 7
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
Page 8
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
Page 9
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
Page 11
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)
Page 12
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
Page 13
Chinese Demand Update
Coal imports growth expected to accelerate
Chinese iron ore imports expected to continue growing
Page 14
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
Page 15
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
Page 17
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
Page 18
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
Page 19
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
Page 20
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
Page 21
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