Tanker Market Outlook (based on VLCC]

Tanker Market Outlook (based on VLCC] November 1, 212 HANBADA

Tanker Major Trade Lanes West-bound East-bound Crude oil loading zone N.SEA UKC USA MED AG AG F.EAST CARIB. WAF WAF SPORE INDO BRAZIL Crude oil: Utilization of VLCC/SUEZMAX/AFRAMAX - Long voyage: VLCC or SUEZMAX - Short voyage: SUEZMAX or AFRAMAX Refined product: Utilization of LR2/LR1/MR -1- HANBADA

WS Rates & Correlation by ship Historical Monthly World Scale Rates Table of Correlation Coefficient 45 4 35 3 V LCC(AG/EAST) SUEZ(WAF/USG) AFRA(AG/SPORE) LR2(AG/JP) VLCC SUEZMAX AFRAMAX LR2 VLCC 1..97.856.694 WS 25 2 15 1 5 Jan-2 Jul-2 Jan-3 <Sources: Clarkson, Hanbada> Jul-3 Jan-4 Jul-4 Jan-5 Jul-5 Jan-6 Jul-6 Jan-7 Jul-7 Jan-8 Jul-8 Jan-9 Jul-9 Jan-1 Jul-1 Jan-11 Jul-11 Jan-12 Jul-12 SUEZMAX.97 1..9.775 AFRAMAX.856.9 1..842 LR2.694.775.842 1. Despite the difference of ship size, the market volatility was very similar over the past 1 years. Tankers have high correlation with each other. -2- HANBADA

Market Fluctuations & Seasonality $/ day 25, 225, 2, 175, 15, VLCC(AG/EAST) SUEZMAX(WAF/USG) Market Fluctuations by factors OPEC increases production Hurricane Katrina Hits southern U.S. Hebei Spirit s oil spill Speculative storage by soaring oil price $/day 8, 7, 6, 5, 4, 3, 2, Market Seasonality 125, 1, 75, 5, 25, -25, Jan- Aug- Mar-1 U.S. attack on Iraq IT bubble decay 911 terror <Sources: Baltic exchange, Hanbada> Oct-1 May-2 Dec-2 Jul-3 Feb-4 Sep-4 Apr- 5 Nov-5 Jun-6 Jan-7 Aug-7 Mar-8 Oct-8 May-9 Financial crisis Expectations for economic recovery & speculative storage Oversupply Dec-9 Jul-1 Feb-11 Sep-11 Apr-1 2 1, VLCC AFRAMAX SUEZMAX LR2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec (unit: $/day) 1Q 2Q 3Q 4Q VLCC 6,117 43,489 37,35 57,655 SUEZMAX 42,58 33,73 26,525 43,363 AFRAMAX 26,55 22,229 22,23 29,462 LR2 26,213 21,992 28,163 28,85 Based on data over the past 1 years, Market Trends (due to seasonal factors) Summer-bear market, Winter-Bull market Similar to oil consumption patterns Refinery maintenance during summer Restocking for cold winter -3- HANBADA

VLCC Annual Spot Earnings Annual Spot TCE Earnings by trade lane (unit:$/day) AG/EAST AG/WEST WAF/USG 2 52,429 47,564 58,67 21 33,436 36,429 42,284 22 22,622 2,363 25,599 23 53,34 46,186 51,844 24 99,15 86,393 15,986 25 59,44 56,226 66,296 26 61,58 53,11 72,19 ($/day) 12, 11, 1, 9, 8, 7, 6, 5, 4, Since global financial crisis, Market has been made worse by oversupply problem. AG/EAST AG/WEST WAF/USG 27 62,79 45,347 56,72 28 12,2 74,41 1,691 3, 2, 1, B.E.P.: $3k/day level 29 31,634 19,83 43,97 21 4,219 26,676 45,36 2 21 22 23 24 25 26 27 28 29 21 211 12(~Oct) 211 18,364 3,38 25,79 29~211 Avg. 3,72 16,62 38,37 27~211 Avg. 5,986 33,849 54,175 22~211 Avg. 55,75 43,152 59,262 212(~Oct) 21,66 1,826 32,174 <Sources: Clarkson, Hanbada> Correlation by lane Correlation coefficient AG/EAST- AG/WEST AG/EAST- WAF/USG AG/WEST- WAF/USG.951.98.942-4- HANBADA

VLCC Spot Market Trends(1) TD3(AG/EAST) TCE Earnings $/day 9, 8, 7, 6, 5, 4, 3, 2, 1, 29 21 211 212 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ex-ag Spot Fixtures Despite concerns of oversupply, Unexpectedly bull market developed in the first half of 212. Due to: - active spot fixtures(apr~jun stems, laycan basis) - increase in china s oil imports - increase in saudi s exports to U.S. Motiva refinery - new NOVA POOL in February (Maersk tanker/phoenix tanker/samco shipping/ocean tanker) - major importers efforts to restock prior to iran sanction - bullish west market by china and india - slow steaming etc. (unit: No. of fixtures) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Month avg. WEST 19 29 22 25 28 31 19 26 21 26 24.6 CHINA 42 35 36 43 46 38 35 33 37 32 37.7 KOREA 12 18 16 14 15 17 16 16 17 14 15.5 OTHER 49 49 41 43 37 41 42 47 49 46 44.4 TOTAL 122 131 115 125 126 127 112 122 124 118 122.2 211 18 17 12 111 121 115 121 11 117 116 114.6 <Sources: Hanbada> * Laycan basis -5- HANBADA

VLCC Spot Market Trends(2) No. fixtures 14 13 12 11 1 9 8 7 WS 9 8 7 6 5 4 Fujairah 38 cst TD3 WS $/mt 75 7 65 6 55 5 3 211-1-3 211-2-1 211-3-18 211-4-25 211-6-3 211-7-11 211-8-16 211-9-22 211-1-27 211-12-1 212-1-6 212-2-13 212-3-19 212-4-23 212-5-28 212-7-4 212-8-8 212-9-13 212-1-18 6 Spot Fixtures & WS Bunker Prices & WS Spot Fixtures (laycan basis) VLCC(AG/EAST) No.ships 12 11 11 WS 1 9 8 7 6 5 4 3 2 1 [Recently bearish factors] - Flat fixtures - Long tonnage-list - Fluctuations of bunker Available Tonnages & WS Available tonnages AG/EAST(WS) 11 WS 1 1 9 9 8 7 8 6 7 5 6 4 5 4 3 3 2 1 Jan-9 Mar-9 May-9 Jul-9 Sep-9 Nov-9 Jan-1 Mar-1 May-1 Jul-1 Sep-1 Nov-1 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Jan-9 Mar-9 May-9 Jul-9 Sep-9 Nov-9 Jan-1 Mar-1 May-1 Jul-1 Sep-1 Nov-1 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 <Sources: Hanbada> * arriving in AG within 3 days Moving into winter -6- HANBADA

VLCC TC Rates & Spot TCE <Sources: Clarkson, Hanbada> Annual TC rates & Spot TCE earnings (unit:$/day) 1yr TC 3yr TC 5yr TC AG/EAST 2 43,65 - - 52,429 21 4,49 28,667-33,436 22 25,824 27,274-22,622 23 34,26 3,125-53,34 24 55,557 42,14-99,15 25 58,529 47,192-59,44 26 58,38 47,337-61,58 27 55,548 48,385-62,79 28 73,413 58,644 56,833 12,2 29 39,577 37,538 37,38 31,634 21 37,962 38,32 37,594 4,219 211 24,947 31,481 33,899 18,364 29~211 Avg. 34,162 35,774 36,267 3,72 27~211 Avg. 46,289 42,87 41,49 5,986 22~211 Avg. 46,393 4,838 41,49 55,75 212(~Oct) 22,298 27,113 3,786 21,66 ($/day) 12, 1, 8, 6, 4, 2, 2 21 AG/EAST TCE 3yr TC 1yr TC 5yr TC 22 23 24 25 26 27 28 29 21 211 12(~Oct) SPOT TCE 1yrs Avg. 1yr TC 1yrs Avg. [General Tendency] Spot Bullish: Short TC Rates > Long TC Rates Charterers prefer Long TC Spot Bearish: Short TC Rates < Long TC Rates Charterers prefer Spot or Short TC -7- HANBADA

VLCC Tonnages 19 VLCC Fleet Development 1 2 VLCC Scrap Trends 9 18 17 16 VLCC Fleet % Growth 8 6 19 18 17 VLCC Fleet Scrap Ratio VLCC Scrap 8 7 6 Mil. dwt 15 14 4 2 % Mil. dwt 16 15 14 5 4 % 13 12 11-2 13 12 11 3 2 1 1 21 22 23 24 25 26 27 28 29 21 211 212 YTD -4 1 21 22 23 24 25 26 27 28 29 21 211 212 YTD VLCC Age Profile VLCC Orderbook 1~ 5yrs 6~ 1yrs 11~ 15yrs 16~ 2yrs >21yrs No.Ship Non D/H 5 4 9 D/H 241 144 146 59 4 594 Total 241 144 146 64 8 63 % 4% 24% 24% 11% 1% 1% No. ships Mil. dwt 212 213 214 215 Total % of Fleet 16 49 19 1 85 14.1% 5.1 15.5 6..3 26.9 14.6% <Sources: Clarkson, Hanbada> * Based on Oct. 212-8- HANBADA

VLCC Asset Values VLCC Prices of N/B-S/H-Resale N/B-related Activities 2 18 16 AG/EAST TCE Resale prices N/B prices S/H prices(5yr) 3, 25, 12, 1, TD3 tce Contracts Orderbook Deliveries 3 25 14 2, 8, 2 $ mil. 12 1 15, ($/day) $/day 6, 15 No. of ships 8 4, 1 6 4 2 Jan-2 Aug-2 Mar-3 Oct-3 May-4 Dec-4 Jul-5 Feb-6 Sep-6 Apr-7 Nov-7 Jun-8 Jan-9 Aug-9 Mar-1 Oct-1 May-11 Dec-11 Jul-12 Downward pressures increase and are considerable. 1, 5, Lowest Highest Present Falling Rate (unit: $mil. $/day) 2, 2 8 7 6 21 22 23 24 25 India basis($/ldt) 26 27 28 Scrap prices 29 21 211 212 YTD 5 Impact of spot doldrums & shrinking ship finance N/B prices 62.5 162. 91. -43.8% Resale prices 85. 195. 84. -56.9% S/H prices (5yr) 53. 165. 55. -66.7% $/ldt 5 4 3 2 TCE (Month avg) 3,92 239,34 3,922-98.4% <Sources: Clarkson, Poten, Hanbada> 1 Jan-5 Sep-5 May-6 Jan-7 Sep-7 May-8 Jan-9 <Sources: Clarkson, Hanbada> Sep-9 May-1 Jan-11 Sep-11 May-12-9- HANBADA

AFRAMAX MR Tanker Asset-Value Trends 1, 1 14, 9, 8, 7, 6, 5, 4, 3, INDO/JAPAN TCE N/B prices Resale prices S/H prices(5yr) 9 8 7 6 5 4 3 WAF/USG TCE N/B prices Resale prices S/H prices(5yr) 12, 1, ($/day) ($/day) $ mil. 8, 6, 4, 12 1 8 6 4 $ mil. SUEZMAX 2, 1, 2 2 2, 1 Jul-12 Dec-11 May-11 Oct-1 Mar-1 Aug-9 Jan-9 Jun-8 Nov-7 Apr-7 Sep-6 Feb-6 Jul-5 Dec-4 May-4 Oct-3 Mar-3 Aug-2 Jan-2 Jul-12 Dec-11 May-11 Oct-1 Mar-1 Aug-9 Jan-9 Jun-8 Nov-7 Apr-7 Sep-6 Feb-6 Jul-5 Dec-4 May-4 Oct-3 Mar-3 Aug-2 Jan-2 8 7, 7 SPORE/JAPAN TCE N/B prices 45, ($/day) 4, 35, 3, 25, 2, 15, 1, Resale prices S/H prices(5yr) 6 5 4 3 2 ($/day) $ mil. 6, 5, 4, 3, 2, AG/JAPAN TCE N/B prices 7 Resale prices S/H prices(5yr) 6 5 4 3 2 $ mil. LR 1 1, 1 5, Jul-12 Jan-12 Jul-11 Jan-11 Jul-1 Jan-1 Jul-9 Jan-9 Jul-8 Jan-8 Jul-7 Jan-7 Jul-6 Jan-6 Jul-5 Jan-5 Jul-4 Jan-4 Jul-3 Jan-3 Jul-2 Jan-2 Jul-12 Jan-12 Jul-11 Jan-11 Jul-1 Jan-1 Jul-9 Jan-9 Jul-8 Jan-8 Jul-7 Jan-7 Jul-6 Jan-6 Jul-5 Jan-5 Jul-4 Jan-4 Jul-3 Jan-3 Jul-2 Jan-2-1- HANBADA

Global Oil Demand 1 Global Oil Demand 5 Consuming Countries (212 basis) mbd 9 8 7 6 5 4 3 2 1 2 21 Non-OECD OECD % Growth 22 23 24 25 <Sources: IEA, Hanbada> 26 27 28 29 21 211 212(P) 213(P) Over the past 1 years, Average growth rate : 1.4% OECD ratio reduced 22: 61.7% 212: 51.5% Non-OECD ratio enlarged : due to BRICs strong growth 22: 38.3% 212: 48.5% 4 3 2 1-1 -2 % Others 34% Canada 3% Saudi 3% Brazil Russia 3% 4% Non-OECD 37% OECD 21% EU(5) 9% India 4% USA 21% Japan 5% Korea 3% Producing countries (Sep. 212 basis) OPEC 42% China 11% * EU(5): FRA.GER,ITA,SPA,UK <Sources: IEA, Hanbada> -11- HANBADA

U.S. Crude oil Stocks & Imports k bbl 38, 36, 34, 32, 3, 28, 26, 24, 22, 2, U.S. Crude Oil Stocks (excluding SPR) Crude oil stocks WAF/USG AG/EAST After Jan.21, Lowest 28-Jan 28-May 28-Sep 29-Jan 29-May 29-Sep 21-Jan 21-May 21-Sep 211-Jan 211-May 211-Sep 212-Jan 212-May 212-Sep Recently crude oil stocks upturn. October stocks, up 33 mil. bbl from same month last year. WS 25 2 15 1 5 mb/d 11 1 9 8 7 6 5 Jan-8 Apr-8 U.S. Crude Oil Stocks (excl. SPR) & Imports U.S. Domestic Production (mbd) Crude Stocks(mil. Bbl) Jul-8 Oct-8 Jan-9 Apr-9 Jul-9 Crude Imports(mb/d) Expectations for recovery Oct-9 Jan-1 Apr-1 Jul-1 Oct-1 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 - U.S. domestic production of crude oil has been increasing <Sources: EIA, Hanbada> mil. bbl Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 6.24 6.29 6.8 6.21 6.61 % Growth.8%.9% - 3.4% 2.1% 6.4% 36 Due to high 32stocks & increase in domestic production 28 24 2 After Jan.1999, Highest -12- HANBADA

U.S. Refinery Capacity Changes U.S. Refinery Capacity Changes 3 25 2 BRENT-WTI Spread TD3 TCE 25, 2, Company Refinery Country Capacity (kbd) 211 Sunoco Marcus Hook USA -175. 211 ConocoPhillip's Trainer USA -185. 211 Hess Oil St. Croix Virgin Islands -15. 212 Sunoco Philadelphia USA -33. 212 Hess Oil St. Croix 212 Virgin Islands -35. Motiva Enterprises Port Arthur USA 325. 212 COP/Cenovus Wood River USA 5. Spread ($/bbl) 15 1 5-5 -1-15 -2 28-1-2 28-4-16 28-7-23 7 6 28-1-28 29-2-3 29-5-8 29-8-1 29-11-12 21-2-18 21-5-27 21-8-3 21-12-7 211-3-15 211-6-2 211-9-23 212-1-5 212-4-1 212-7-14 212-1-16 Negative effect on west market 15, 1, 5, - -5, TCE ($/day) 212 Marathon Ashland Detroit USA 15. 212 Tesoro Mandan USA 1. 214 Valero Sunray USA 28.4 mil. bbl 5 4 3 2 U.S. imports from WAF(Angola & Nigeria) Some refineries have been closed in PADD 1(U.S. east coast) due to equipment obsolescence & refining-margin deterioration The delay of Motiva s launching due to technical troubles 1 Jan-8 May-8 Sep-8 Jan-9 May-9 Sep-9 Jan-1 May-1 Sep-1 Jan-11 May-11 Sep-11 Jan-12 May-12 <Sources: EIA, KNOC, Hanbada> -13- HANBADA

China s imports & OPEC Production mil. ton 26 China s Crude oil Imports all-time high WS 25 mb/d 34 OPEC Production WS 25 24 22 2 Crude oil imports TD3(AG/EAST) WS Sharply drop 2 33 32 OPEC s effective spare capacity: 3.9mbd (Saudi 2.1mbd) OPEC production TD3(AG/EAST) WS 2 mi.ton 8 7 6 5 4 3 18 16 14 12 1 8 6 Jan-8 4Q -9 1Q -9 2Q -9 3Q -9 Q ly imports trends May-8 1Q -1 2Q -1 3Q -1 Sep-8 4Q -1 1Q-11 Jan-9 2Q-11 3Q-11 May-9 4Q -11 1Q -12 Sep-9 2Q -12 3Q -12 Jan-1 May-1 Oct. Nat. Holida y Following the very strong oil import in May, China s import level has come off, in particular, in August. But still expect stockpiling of oil and stimulus packages. Sep-1 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 15 1 5 <Sources: China customs, IEA, Hanbada> 31 3 29 28 27 28-Jan 28-Jun 28-Nov 2 9-Apr 29-Sep 21-Feb 21-July Impact of Libyan Revolution 21-Dec 211-May 211-Oct 212-Mar 212-Aug After April-peak, OPEC production showed a decreasing trend. Decrease in Saudi s production 1.mbd 9.5mbd 15 1 5-14- HANBADA

China s SPR Expansion China s SPR Expansion Operator Location Capa. Completion Status Sinopec Zhenhai, Zhejiang 32.7 3Q6 Filled Sinochem Zhoushan, Zhejiang 31.4 4Q7 Filled Sinopec Huangdao, Shandong 2.1 4Q7 Filled CNPC Dalian, Liaoning 18.9 4Q8 Filled Phase 1 13.2 28 CNPC Dushanzi, Xinjiang 18.9 3Q11 To be filled CNPC Lanzhou, Gansu 18.9 4Q11 To be filled CNPC Jinzhou, Liaoning 18.9 1Q12 Sinopec Tianjin 22. 1Q12 <Sources: IEA, Hanbada> * Phase 2 was estimated by IEA. Under construction Under construction Other(4 Storages) 9.3 213 planed Phase 2 169. 213 Phase 3 227.8 216 Total 5. (unit: mil. bbl) China has been continuing the construction of the second phase of its Strategic Petroleum Reserve (SPR). The filling is dependent on price and buying schedule. Cf. U.S. SPR: 695mil. bbl Japan SPR: 254mil. bbl $/bbl 9 8 7 6 5 4 3 2 1 J an-11 F eb-1 1 Mar-11 Apr-1 1 May -11 Jun-11 <Sources: KNOC, Hanbada> BRENT-DUBAI SPREAD Jul-11 Aug-11 Sep-11 Oct-11 N ov-11 D ec-1 1 J an-12 F eb-1 2 Mar-12 Apr-1 2 Brent-Dubai spread contraction in 1 st Half of 212 M ay-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Brent is attractive for china s buyer. Positive effect on tonne-miles. -15- HANBADA

Floating Storage Demand WTI Spot-Futures Basis BRENT Spot-Futures Basis oil price($/bbl) 12 11 1 nov/12-spot jan/13-spot mar/13-spot WTI(spot) nov/12 jan/13 mar/13 basis($/bbl) 1 8 6 Weak Contango oil price($/bbl) 14 13 12 11 nov/13-spot jan/13-spot mar/13-spot BRENT(spot) nov/12 jan/13 mar/13 basis($/bbl) 8 6 4 9 8 7 6 weak Contango [Prerequisite for storage increase] Low WS Rate & Strong Contango 4 2-2 1 9 Commercial Storage 8 Demand 7 Cold 6 Backwardation 2-2 -4-6 5 May Jun Jul Aug Sep Oct -4 5 May Jun Jul Aug Sep Oct -8 3 25 2 NITC VLCC STORAGE U.N. sanctions against Iran. No.ships 15 1 5 Iran storage decreasing - Due to increase in exports by NITC. - Aug basis, storage estimated to be 23 mil. bbl. 1-Jan 1-Mar 1-May 1-Jul 1-Sep 1-Nov 11-Jan 11-Mar 11-May 11-Jul 11-Sep 11-Nov 12-Jan 12-Mar 12-May 12-Jul cf. NITC fleet: VLCC 28, SUEZMAX 9, AFRAMAX 5 <Sources: IEA, KNOC, Gibson, Hanbada> -16- HANBADA

World Economic Outlook 14 12 1 World Economic Outlook World Advanced eco. Emerging market U.S. Euro China India 8 6 Macro Variables Development 8 4 % 6 4 2 % 2-2 Expect to approach to 3~ 7 avg. in medium-term. '3~'7 avg '8~'11 avg 212(p) <Sources: IMF, Hanbada> * Based on Oct. 212 213(p) [World economy still downside risks] U.S. : High unemployment 217(p) & Fiscal Cliff Euro: Fiscal consolidation & Still-weak financial system Emerging market: Growth decrease Middle East: Geopolitical concerns High debt + Sluggish growth + Absence of global coordination ability + Protectionism floating etc. Black swan -2-4 -6 22 World economy % growth Global oil demand % growth Seaborne oil trades % growth <Sources: IMF, IEA, Clarkson, Hanbada> World economy -oil demand 23 24 25 26 27 28 29 21 211 212(p) 213(p) World economy -seaborne oil trades Oil demand -seaborne oil trades Correlation coefficient.765.822.81 The above table implies the close correlation. -17- HANBADA

FFA Market Trends FFA TD5(SUEZMAX) Trends 11 15 1 TD5 Q4-12 Q1-13 CAL-13 CAL-14 95 9 85 WS 8 75 7 65 6 55 5 3-Jan 17-Jan 31-Jan 14-Feb 28-Feb 13-Mar 27-Mar 12-Apr 26-Apr 11-May 25-May 12-Jun 26-Jun 1-Jul 24-Jul 8-Aug 22-Aug 6-S ep 2-S ep 4-O ct 18-O ct FFA TD3(VLCC) Trends 75 7 TD3 Q4-12 Q1-13 CAL-13 CAL-14 65 6 55 5 45 4 35 3 Cal-14 45.5 46. 46.6 <Sources: ACM-GFI, Hanbada> Sep avg. Oct avg. MTD BITR(TD5) 56.6 59. 7.1 Q4-12 66.1 63.9 - Q1-12 65.1 65.2 - Cal-13 63.6 62.8 63.2 Cal-14 62.9 62.1 63. WS 3-Jan 17-Jan 31-Jan 14-Feb 28-Feb 13-Mar 27-Mar 12-Apr 26-Apr 11-May 25-May 12-Jun 26-Jun 1-Jul 24-Jul 8-Aug 22-Aug 6-S ep 2-S ep 4-O ct 18-O ct Sep avg. Oct avg. MTD BITR(TD3) 38.7 36. 48. Q4-12 46.5 42.6 - Q1-12 48.2 47.3 - Cal-13 45.9 44.9 46.9-18- HANBADA

Fundamental Analysis % Oversupply of VLCC % Oversupply of SUEZMAX 12, 11, 1, VLCC TCE(TD3) % oversupply of VLCC 25 2 8, 7, suezmax tce(td5) % oversupply of suezmax 5 4 9, 8, 7, 15 6, 5, 3 2 $/day 6, 5, 4, 3, 1 5 % $/day 4, 3, 2, 1 % 2, 1, 1, -1 23 25 27 29 211 213(p) 215(p) <Sources: Clarkson, Hanbada> Correlation coefficient: -.7 [% oversupply estimations] % oversupply formula= (supply-demand)/supply*1 Over the past 1 yrs, Avg. demand growth rate: 2.8% 212~215 estimations: - supply: based on Orderbook and last scrap patterns - demand: avg. demand growth rate over the past 1 yrs is reflected. -5-2 23 25 27 29 211 213(p) 215(p) <Sources: Clarkson, Hanbada> Correlation coefficient: -.78 [% oversupply estimations] % oversupply formula= (supply-demand)/supply*1 Over the past 1 yrs, Avg. demand growth rate:.3% 212~215 estimations: - supply: based on Orderbook and last scrap patterns - demand: avg. demand growth rate over the past 1 yrs is reflected. -19- HANBADA

Tanker Market Outlook The outlook appears still more uncertain in the medium to longer term. - Tanker market is made worse by oversupply of tonnages. - As a result, owners suffer from poor earnings and some still face default or bankruptcy risk. - For examples, GENMAR: filed for Chapter 11, OSG: potential Chapter 11(bankruptcy protection). - And a plan of massive vlcc orders (up to 5) in china remains the most obvious threat to the vlcc outlook. Hopefully, - We expect tanker market including vlcc to show signs of recovery in the 2 nd half of 214 or 215. - Not easy to return to the pre-crisis levels for a medium term. Asset values will be exposed to downward pressure over a considerable period of time. -2- HANBADA

Thanks for your Attention! -21- HANBADA