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Eagle Bulk Shipping Inc. DELIVERING SUSTAINABLE GROWTHDELIVERING SUSTAINABLE GROWTH

Eagle Bulk Shipping Inc. Oppenheimer 3rd Annual Industrials Conference

3 October 2008

DELIVERING SUSTAINABLE GROWTH

Eagle Bulk Shipping Inc. DELIVERING SUSTAINABLE GROWTHDELIVERING SUSTAINABLE GROWTH 1

Forward Looking Statements Forward Looking Statements

This presentation contains certain statements that may be deemed to be “forward-looking statements” within the meaning of the Securities Acts. Forward-looking statements reflect management’s current views with respect to future events and financial performance and may 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 forward-looking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's 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. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charterhire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in our vessel operating expenses, including dry-docking and insurance costs, or actions taken by regulatory authorities, ability of our counterparties to perform their obligations under sales agreements and charter contracts on a timely basis, potential liability from future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists. Risks and uncertainties are further described in reports filed by Eagle Bulk Shipping Inc. with the US Securities and Exchange Commission.


Agenda Agenda

2

Investment Thesis

The Fleet

Industry View

Financial Overview

Conclusion

Investment Thesis


The Eagle Story – Delivering Sustainable GrowthThe Eagle Story – Delivering Sustainable Growth

Modern Fleet Focus on Supramax Class

4

Newbuilding Program

One of the largest Supramax owners On-the-water fleet’s average age of 6 years45 vessels acquired over last 3 years

35 new vessels (one delivered)Remaining delivery schedule:

2 vessels - 2008 9 vessels - 20109 vessels - 2009 10 vessels - 2011

4 vessels - 2012

Chartering Strategy Provides Revenue Stability and Visibility

Launch of Our First Newbuilding Vessel “Wren” in China - April 200810-year revenue visibility

All charters insured until mid-2010


Newbuilding Program UpdateNewbuilding Program Update

5

Highly Accretive to Earnings, EBITDA and Free Cash Flow per Share

Launch of Our Second Newbuilding Vessel –“Woodstar” in China - July 2008

Launch of Our Third Newbuilding Vessel –“Crowned Eagle” in Japan - July 2008

Launched first three newbuilding vessels:

Wren - delivered in June 08, 70 days ahead of contract dateCommenced 10 year profit-sharing time charter

Woodstar- launched July 08

Crowned Eagle – launched July 08

The Fleet


Modern, High Quality Geared Fleet of Supramax VesselsModern, High Quality Geared Fleet of Supramax Vessels

One Delivered, 34 More Vessels to Come

On-the-Water Fleet *No. of Vessels Deadweight Tons (dwt) Vessel Type Delivery

21 Vessels 1.08 million dwt 18 Supramaxes 3 Handymaxes

Supramax Newbuilding - 3 Groups of Sister Vessels

4 Vessels 0.21 million dwt 53,100 dwt Series 2008-09



* Includes Redwing delivery in September 2008


Eagle On a Solid Growth TrajectoryEagle On a Solid Growth Trajectory

Fleet CAGR of > 20% ● 3x increase in Owned Days

(6,000)

(4,000)

(2,000)

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2005 2006 2007 2008 2009 2010 2011 2012

♦ Owned Days$ m EBITDA

44

83100


10-year Revenue Visibility10-year Revenue Visibility

Contracted Gross Revenues in Excess of $1 Billion Support Dividends

♦ No. of ships

-

5,000

10,000

15,000

20,000

25,000

-

20

40

60

80

100

120

140

160

180

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$ m Owned DaysContracted Revenues

18

32

23

41

51

55 5555 55 55 55 55


Secure and Increasing RevenuesSecure and Increasing Revenues

New vessel deliveries increase revenues

Supramax vessels are currently outearning Panamax vessels

Current charter rates are higher than Eagle's average expiring time-charter rates

All charters are covered by insurance until mid-2010

Industry View


Internal Demand Drives Chinese Economy Internal Demand Drives Chinese Economy

12

0

4,000

8,000

12,000

16,000

20,000

24,000

28,000

2000 2001 2002 2003 2004 2005 2006 2007

Net exports

Investment

Consumption (Government)

Consumption (household)

8.9%

42.1%

13.7%

35.3%

Domestic demand accounted for over 70% of China’s economic growth in 2007

China plans to spend RMB 5.1 trn ($744 bn) on infrastructure expansion during the current five-year plan

RMB 3.8 trn($555 bn) investment in transportation infrastructureAdd 12,000km railways by 2010Increase port capacity from 3.4 bn tons to potential 5.4 bn tons

China’s GDP by Expenditure (RMB bn)11th Five Year Plan Infrastructure

Investment (RMB trn)Source: Ministry of Railway, Ministry of Construction, JPMorgan research, BHP

Infrastructure Expansion Supports Demand for Dry Bulk Commodities

Roads 2.1

Railway 1.25

Power grid 1.0

Waterway

Others

Roads RailwayPower gridWaterwayOthers

0.3

0.45


China’s Post-earthquake Rebuilding Plan Totals $147 blnChina’s Post-earthquake Rebuilding Plan Totals $147 bln

13

Source: National Development and Reform Commission

$ 147 bln three-year rebuilding

plan

Demand for Cement and Steel Expected to Benefit Supramax Class


Charterers Attracted by Versatility of Supramax VesselsCharterers Attracted by Versatility of Supramax Vessels

14

57% of Eagle’s 1H Cargoes were “Capesize and Panamax cargoes”

Handymax/Supramax

Panamax

Capesize

Eagle vessels carried 3.6 million tons of cargo in 1H 2008 MISC. cargoes include potash and alumina

IRON ORE COAL GRAINS

OTHER ORES CEMENT COKE STEELS

SCRAP IRON AGGREGATES MISC.

In m tons 975,610 576,170 491,846 431,707 133,507 193,145 99,596 92,550 101,004 514,307

CardinalCondorFalconGoldeneyeGriffonHarrierHawk I HeronJaegerKestrel IKiteKittiwakeMerlinOsprey IPeregrineShrikeSkuaSparrowTern


Handymax Class Vessels – India’s Dry Bulk Trade WorkhorseHandymax Class Vessels – India’s Dry Bulk Trade Workhorse

15

Eagle Vessels First to Call at new Indian Port of Krishnapatnam (near Chennai)

Source: Indian Ports Association, Portworld, Braemar, May 2008

India to Invest $500B in Infrastructure between Now and 2012 *

58%

5%14%

23%

Cape Handymax Panamax Handysize

111

985

3,003

1,496

94

1,115

3,015

1,600

102

913

3,282

1,553

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

C apes P anamax Handymax Handysiz e

2005 2006 2007

Port Calls

Dry Bulk Vessel Port Calls

* Source: Reuters, Sep17 2008


Supply Cancellations = Fewer Ships for Global DemandSupply Cancellations = Fewer Ships for Global Demand

16

Rising labor costs, material costs, and tighter financing cause orderbook cancellations

Labor costs rose 18% y-on-y

Steel prices surged 51%

Other raw material and component costs up 24%

Steel component cost of a newbuilding has risen from 30% to 75% in the last five years

In order to pass on higher cost, SLS Shipbuilding became the first yard in S. Korea to include steel-price escalations clauses in contract.

Limited survey of 19 Chinese shipyard managers confirms that in 1H08, 10 shipyards realize 21 vessel order cancellations. July report estimates that 150 capesizes on order will not be delivered.

Many orders do not have refund guarantees in place (all Eagle Bulk’s refund guarantees are issued)

Source: Hong Kong brokerage CLSA, Shipbroker Gibsons, Lloyd’s List

Financial Overview


1H 2008 Financial Highlights1H 2008 Financial Highlights

18

Net Income of $29.3 million or $0.62 per share, up 43% from 1H2007

Net Time Charter Revenues of $73.9 million, up 34% from 1H 2007

EBITDA1 of $55.4 million, up 24% y-on-y

Declared and paid Cash Dividend of $1.00 per share

Fleet Utilization of 99.8%

1 EBITDA, as defined by our credit agreement, is Net Income plus Interest Expense, Depreciation and Amortization, and Exceptional Items


2H 2008 Estimated Cash Break-Even Levels2H 2008 Estimated Cash Break-Even Levels

19

$9,400 per day cash breakeven cost for 2H 2008

Vessel expenses include crew wages and related costs, the cost of insurance including credit risk insurance, expenses relating to repairs and maintenance, the cost of spares and consumable stores and related inventory, tonnage taxes, pre-operating costs associated with the delivery of acquired vessels including providing the newly acquired vessels with initial provisions and stores, and other miscellaneous expenses. The Company is anticipating higher crewing costs and higher costs for oil based supplies including lubes and paints. The Company is also making allowance for constraints in yard drydocking capacity which has driven up drydocking costs.

$548

$296

$1,650

$2,200

$4,704

Dry-Dock

Vessel Expenses

Technical Mgt Fees

Cash G&A

Cash Interest (net)


Strong Balance SheetStrong Balance Sheet

20

Secure Growth

1 Newbuild Costs to be Capitalized eliminating any impact on current cash flows2 Net Debt is pro forma after taking into effect 2Q Dividend payments of $23.4 million (‘08), $19.6million (‘07)

BALANCE SHEET DATA June 30, 2008 June 30, 2007(in $ 000's)

Cash $62,997 $22,879Other Current Assets 6,418 3,984Vessels, net 725,388 618,572Advances for Vessel Construction1 380,672 64,785Restricted Cash 10,276 7,325Other Assets 22,640 9,109 TOTAL ASSETS 1,208,391 726,654 Current Liabilities 14,771 8,843 Long-term Debt 665,695 302,377 Other Liabilities 21,017 4,693 Stockholders' Equity 506,908 410,741

Book Capitalization 1,172,603 713,118 Net Debt 2 / Capitalization 53% 41%


$1.6 billion 10-year Revolver at Favorable Terms$1.6 billion 10-year Revolver at Favorable Terms

Syndicated by Royal Bank of Scotland

* Thereafter semi-annual reduction in availability to Balloon

Ample Liquidity for Growth

Amount $1.6 billion

Maturity July 2017

Interest Only until (at least) July 2012

Interest MarginLibor + 95 basis points (base grid pricing)

Commitment Fees on undrawn amounts 31.25 basis points

Availabilty in full for next * 4 years

Balloon $850 million

21

Conclusion


Conclusion – Ongoing Operating StrengthConclusion – Ongoing Operating Strength

Eagle Bulk – Delivering Sustainable Growth

Fleet growth begins in Q3 - 2008

Current charter rates are higher than Eagle’s average expiring time-charter rates

New vessel deliveries increase revenues

CLEAR BENEFITS TO SHAREHOLDERS

Significant increase in EBITDA

Eagle Bulk Shipping Inc.

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DELIVERING SUSTAINABLE GROWTH - IIS …library.corporate-ir.net/library/18/189/189576/items/309617...Eagle Bulk Shipping Inc. DELIVERING SUSTAINABLE GROWTH Eagle Bulk ... ORES CEMENT