Euronav – Company presentation October 2017 1
Forward Looking Statements Matters discussed in this presentation may constitute forward-looking statements under U.S. federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect the Company’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. All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including, without limitation, the delivery of vessels, the outlook for tanker shipping rates, general industry conditions future operating results of the Company’s vessels, capital expenditures, expansion and growth opportunities, bank borrowings, financing activities and other such matters, are forward-looking statements. Although the Company believes that its expectations stated in this presentation are based on reasonable assumptions, actual results may differ from those projected in the forward-looking statements. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their obligations to us, the strength of the world economies and currencies, general market conditions, including changes in tanker vessel charter hire rates and vessel values, changes in demand for tankers, changes in our vessel operating expenses, including dry-docking, crewing and insurance costs, or actions taken by regulatory authorities, ability of customers of our pools to perform their obligations under 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. We undertake no obligation to publicly update or revise any forward looking statement contained in this presentation, whether as a result of new information, future events or otherwise, except as required by law. In light of the risks, uncertainties and assumptions, the forward looking events discussed in this presentation might not occur, and our actual results could differ materially from those anticipated in these forward-looking statements. 2
Key Credit Highlights High quality fleet of Very Large Crude Carriers (“VLCCs”) and Suezmax tankers, • Largest publicly listed 1 in addition to two 50% owned FSOs on long-term contracts tanker company in the world Best-in class operations with a fully integrated operating platform • Value adjusted equity ratio of 63% and liquidity of USD~794m (Q2-17) • Conservative financial strategy with target to keep normalized leverage at or • Strong financial position below 50% and a minimum 2 year operational liquidity-runway 2 Listed on NYSE with USD 1.29bn market cap and strong access to capital • markets Tanker fleet commercially operated through the leading VLCC Chartering and • Suezmax Chartering platforms Mix of spot and fixed rate 3 USD 155m of contracted fixed rate EBITDA in 2016 • charters Recently awarded new 5 year contracts for the two FSOs (Qatar Petroleum and • Total) and four Suezmax 7 year time charter contracts (Valero Energy) Softer market outlook short-term due to high number of newbuildings coming • to market in 2017 Long-term positive tanker 4 Stronger long-term market fundamentals with robust and steady increase in • market fundamentals demand for oil, increasing tanker ton-mile, lower newbuild ordering and financing becoming more restrictive Management and Board of Directors with strong experience in shipping and • Strong and Reputable through the shipping cycles 5 Platform Corporate governance – important factor for Euronav • Strong historical track record • 3
Euronav is the largest listed tanker company in the world INTRODUCTION FLEET DEPLOYMENT SUMMARY • Leading provider of transportation and storage of crude oil 45 • The largest listed tanker ship owner in the world with 40 a fleet of modern high quality tankers 35 • Best-in-class fully-integrated operating platform 30 Fixed No of Vessels 23% • Strong relationships to oil majors and leading energy 25 companies 20 • Conservative financing strategy with a strong balance sheet and high liquidity 15 Spot 77% • Headquarter in Antwerp with ca 150 employees shore 10 side and globally 3,000 seafarers 5 • Listed on NYSE & Euronext (TICKER: EURN) with a 0 market capitalization of USD ~1.2 billion Time Charter Spot VLCC Suezmax FSO CURRENT FLEET – TOTAL 56 VESSELS – 14.0 MM DWT 1 ULCC (1) 2 FSO 19 SUEZMAX (+4 NBs) 30 VLCC Over 441,000 DWT 380k barrels Up to 330,000 DWT 150,000 – 165,000 DWT Only 4 in world fleet Stripped water capacity Average Age 10 years Average Age 7 years Age 15 years Average Age 15.5 years 1MM barrels 2MM barrels 3 MM barrels 2.8 MM barrels 4 1. Only 4 ULCC or V-Plus vessels in world fleet
28 years of tanker history January 2014 Euronav Luxembourg Acquisition of 2 Acquisition of 15 VLCCs created as a JV Lists on Euronext Brussels from Maersk Suezmaxes between CNN and CMB March 2005 4x 7-year Acquisition of 14 time Suezmaxes and 2 charters TI Asia and TI Africa Aframaxes from confirmed conversion into FSO January 2015 Tanklog (Livanos Asia and FSO Africa IPO on the NYSE Started doing business Group) under the name TANKERS “Euronav” as a INTERNATIONAL Pool subsidiary of CNN founded 1997 2000 2004 2005-2014 2014 2017 1989 1995 2008-2010 2015 2016 Acquisition of 4 Acquisition of 2 Acquisition of 4 Added 5 Suezmaxes ULCCs in JV VLCCs VLCCs and 3 VLCCs newbuilds 5 year extension to FSO contract confirmed Initiated focus on larger Acquired 4 VLCCs sized and modern vessels: 6 VLCCs Acquisition of 4 VLCCs (double hull) ordered 5
Fleet managed in pool structure provides benefits VLCC POOL SUEZMAX POOL SUEZMAX CHARTERING 57 41 35 20 (+2 NB) 12 12 17 Other VLCC Tanker Pools (Ships on the Water) Main Tanker Clients Heidmar Navig8 China VLCC – VLCC Seawolf – VL8 10 34 40 Source: Company reports 16 September 2017 Size is critical to improve market knowledge and achieve the best commercial terms 6
Strategy of strong capital allocation & discipline Leverage STRONG BALANCE SHEET HEDGE TOWARDS CYLICALITY LIQUIDITY END JUNE 2017 (USDm) • Tanker business is cyclical, towards which the only 900 cure is to have a strong balance sheet and liquidity 60 794 800 465 pool 700 • Euronav currently has a very strong liquidity pool 600 that creates a three year runway through the cycles 500 400 • Policy to retain at least two years of 269 300 operational liquidity runway at all times and maintain strong banking relationships 200 100 0 As evidenced by Cash and Undrawn secured Undrawn Total liquidity pool cash equiv. revolving facility unsecured credit line CAPITAL ALLOCATION KEY TO GROWTH STRATEGY ACQUISITION CRITERIAS 2014-2017 HIGH DIVIDEND 25 VESSELS + YIELD 1. ADDITIONAL TONNAGE =/> BREAK EVEN ACQUISITION 2 1 2. MAINTAIN LEVERAGE BELOW 50% From August 2017 3. PRO – FORMA KEEP 2 YR LIQUIDITY POOL ADDITIONAL CASH DIV ANNUAL 12c PER SHARE + /BUY BACK/M&A MINIMUM DIVIDEND 7
Strong financial profile offsets cyclicality & seasonality SEASONALITY 1 YEAR TC VLCC 100,000 100,000 USD per day 90,000 80,000 80,000 70,000 60,000 60,000 50,000 40,000 40,000 20,000 30,000 Cash break even 20,000 Cash flow breakeven 2017 (1) : • 0 10,000 – ~ USD 18,500 / day for VLCC – ~ USD 15,750 / day for Suezmax Highest rate 5 Yr Avg 0 Lowest rate 2016 Current 2017 Source Clarksons Source Clarkson Research Services Limited 2017 8 1. Before fixed rate contracts
Financials 16 9
Strong Credit Profile VALUE ADJUSTED EQUITY RATIO (1) (%) LIQUIDITY (USDm) 63% 794 63% 62% 597 48% 37% 423 264 97 2013 2014 2015 2016 Q2-17 2013 2014 2015 2016 Q2-17 EBITDA FROM FIXED RATE CONTRACTS (2) (USDm) NET DEBT (USDm) 1,212 155 155 144 136 1,059 122 921 879 783 2013 2014 2015 2016 Q2-17 2013 2014 2015 2016 LTM Q2-17 10 1) Book equity value adjusted for broker valuations 2) On proportionate basis covering all joint ventures
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