"A comprehensive outlook on restructuring in the shipping sector" Milan – 9° of May 2018

SHIPPING LOANS PORTFOLIO (Bn. $) Bank Lending Market. SHIPPING LOANS PORTFOLIO (Bn. $) - 4,8% ….sharp Bank Lending retrenchement countered a moderate fleet growth (4%)…….

Dry Bulk vessel funded at boom market by 80% LtV Hyper Cyclicity. Dry Bulk vessel funded at boom market by 80% LtV

Dry Bulk vessel funded at boom market by 50% LtV Hyper Cyclicity. Dry Bulk vessel funded at boom market by 50% LtV

Funding Needs.

Risk Control: LTVs <80% drive LGD <20% Shipping Risk. Risk Control: LTVs <80% drive LGD <20% LOSS GIVEN DEFAULT / EXPOSEURE AT DEFAULT RATIO BY LOAN TO VALUE LOSS GIVEN DEFAULT / EXPOSEURE RATIO BY YEAR DEFAULT Source: VSL on Global Credit Data, Shipping Finance LGD Study 2017. May 2017

9 years CAGR 62% Chinese Financial Leasing Development. Chinese Financial Leasing as an Option for Fleet Renewal 9 years CAGR 62%

Italian Fleet Features: At a Glance…… High Value added fleet sailing prevalently under Italian flag… ITALIAN FLEET VS. GREEK FLEET Source: VSL on Clarkson data

Italian Fleet Features: At a Glance…… VALUE FOR GT/UNIT (mln. $) SAILING UNDER FLAGS Source: VSL on Clarkson data

Italian Lending Market: At a Glance…… ITALIAN OWNED FLEET – GROSS ASSET VALUE (Bn. $) ITALIAN NPL (included under restructuring) 7,6 bn. $ Source: VSL on Clarkson data

Italian Lending Market: At a Glance…… ITALIAN FLEET BREAKDOWN (N. OF SHIPS) ITALIAN OUTSTANDING LOANS Source: VSL on Clarkson data

Italian NPLs/UTP. ITALIAN BULKER FLEET ITALIAN TANKER FLEET LtV = 189% Source: VSL on Clarkson data

Where are going the NPLs ? Source: VSL on Clarkson data

What's happening on NPLs ? ITALIAN LOANS FOR SALE IN BILLION US Source: VSL on Clarkson data