Euronav – Company presentation May 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
Agenda Introduction to Euronav I Financials II Industry and Market Overview III Supplementary slides IV 3
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 64% and liquidity of USD~620m (Q1-17) • Conservative financial strategy with target to keep normalized leverage at or • Strong financial position 2 below 50% and a minimum 2 year operational liquidity-runway 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 • 4
Introduction to Euronav 2 5
Euronav is the largest tanker company in the world INTRODUCTION FINANCIAL SUMMARY (USDm) (1) • Leading provider of transportation and storage of Net interest bearing debt Adj. EBITDA crude oil 1,235 • The largest listed tanker ship owner in the world with a fleet of modern high quality tankers 1 921 879 • Best-in-class fully-integrated operating platform • Strong relationships to oil majors and leading energy 648 companies 504 • Conservative financing strategy with a strong balance 239 sheet and high liquidity • Head quartered in Antwerp with ca 180 employees shore side and globally 3,000 seafarers 2014 2015 2016 • Listed on NYSE (TICKER: EURN) with a market Purchased 2 VLCCs capitalization of USD ~1.29 billion (as of 9 May 2017) 4 Suezmax on 7 year TCE IPO NYSE (2 in 2016 + 2 in 2017) Purchased 19 VLCCs CURRENT FLEET – TOTAL 57 VESSELS – 14.3 MM DWT 1 V – PLUS (2) 2 FSO 19 SUEZMAX (+4 NBs) 31 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 1MM barrels 2MM barrels 3 MM barrels 2.8 MM barrels 6 1. Adjusted EBITDA (a non-IFRS measure) represents operating earnings including the share of EBITDA of equity accounted investees before interest expense, income taxes and depreciation expense attributable to Euronav 2. Only 4 V-Plus vessels in world fleet
28 years of tanker history January 2014 Euronav Luxembourg October 2016 Acquisition of 15 VLCCs created as a JV Acquisition of 2 Lists on Euronext Brussels from Maersk between CNN and CMB Suezmaxes March 2005 Acquisition of 16 Suezmaxes and 2 TI Asia and TI Africa Aframaxes from 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 1989 1995 2008-2010 2015 2016 Acquisition of 4 August 2016 July 2014 Added 5 Suezmaxes ULCCs in JV Acquisition of 2 Acquisition of 4 and 3 VLCCs VLCCs newbuilds VLCCs Initiated focus on larger March 2005 sized and modern Acquired 4 VLCCs vessels: 6 VLCCs August 2015 (double hull) ordered Acquisition of 4 VLCCs 7
Fleet managed in pool structure provides benefits VLCC POOL SUEZMAX POOL SUEZMAX CHARTERING 58 37 36 18 (+4 NB) 13 12 12 Other VLCC Tanker Pools (Ships on the Water) Main Tanker Clients Heidmar Navig8 China VLCC – VLCC Seawolf – VL8 13 37 32 Source: Company reports 17 February 2017 Size is critical to improve market knowledge and achieve the best commercial terms 8
Actively managed high quality fleet EMPLOYMENT PER VESSEL HIGH QUALITY SHIPYARDS Euronav employs its fleet based on assessment of where it can create the most value Storage Service Contract Korea 1 2 1 3 Japan Time Charter 6 4 11 China TI Pool 4 23 Fleet of 51 vessels 17 including 4 TBD • excluding 2 FSOs • 16 excluding 4 S&L • 20 Spot VESSEL ACQUISITION AND SALE TRACK RECORD VLCC 5 Year Old Secondhand Prices Suezmax 5 Year Old Secondhand Prices Vessel acquisition 180 Profitable vessel sale 160 Loss-making vessel sale 140 Purchased 15 VLCCs from Maersk for $980M Purchased of 4 VLCCs ($477.5M) & 120 16 Suezmax + 2 Aframax from Tanklog ( $1,083M) 100 +4 +4 +4 +16 +1 80 +2 +3 +1 +15 +1 +1 +4 60 +1 +1 +2 40 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 9
Euronav focused on prudent consolidation… Value Adjusted Equity ratio* (%) DYNAMICS IN THE SHIPPING INDUSTRY FRAGMENTED VLCC MARKET OPEN FOR CONSOLIDATION Differentiate spot players vs industrial players Crude tanker business slowly industrialising • Low rate environment enables market consolidation Green indicates Captive or Sovereign fleet Blue indicates fleet in stock listed companies • Small owners are data deficient (275 VLCCs ) Euronav plays a key role in the consolidation of the • tanker market China Merchants 41 Tanker companies have 3 main counterparties – Oil • NIOC 40 majors, Refinery majors and Oil traders Bahri 37 All 3 have excellent credit risk and exposure • However freight rates likely to retain some volatility as • China COSCO 33 each cargo carriage price is set on an auction basis Top 10 owners Euronav NV 32 control 43% Strong ship owners utilize downturns pro actively • of global MOL 31 VLCC fleet Angelicoussis Group 31 TANKER MARKET CONSOLIDATION DHT 25 300 25% DHT* TNK GNRT Gener8 Maritime 24 EURN NAT FRO 241 BAHRI % of fleet 250 20% Nippon Yusen 19 206 Number of VLCC/Suezmax 32 % of VLCC/Suezmax fleet 65 200 10-15 Ship Owner 130 31 46 65 15% 142 4-10 Ship Owner 185 124 42 150 27 116 31 10% 26 3 Ship Owner 27 17 49 17 100 22 37 32 46 24 2 Ship Owner 34 34 5% 22 22 50 25 39 21 1 Ship Owner 29 31 30 22 10 32 11 10 16 14 0 6 5 0% 2012 2013 2014 2015 2016 Source Clarkson’s – Total 715 VLCC ships @ 3 May 2017 10 * Post BW acquisition
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