Investor Presentation – Pareto Conference September 2016 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
Section 1 Euronav at a Glance 2 3
Euronav – Largest Tanker Company in the World CURRENT FLEET – TOTAL 5 5 VESSELS – 1 3 .7 MM DW T W HO W E ARE 1 V – PLUS (1) 2 FSO 20 SUEZMAX 30 VLCC (+2 TBD) Leading pure-play tanker company Over 441,000 DWT 380k barrels with best-in-class operating platform Up to 330,000 DWT 150,000 – 165,000 DWT Only 4 in world fleet Stripped water capacity Strong balance sheet Committed to shareholder long-term value creation… 1MM barrels 3 MM barrels 2MM barrels 2.8 MM barrels Avg. age 10 years Avg. age 13 years Avg. age 6 years Avg. age 14 years … with significant direct return to shareholders Notes: 1. Only 4 V-Plus vessels in world fleet Most liquid big tanker player in the world W ELL POSI TI ONED FOR STRONG CASH FLOW GENERATI ON Spot I ncom e - High Leverage to Upside Breakeven ( including debt service) (1) : 3 1 Each USD 5 ,0 0 0 uplift (above break-even) in both VLCC and ~ USD 2 7 ,3 0 0 / day for VLCC – OpEx / day USD 8 ,1 6 5 Suezmax rates improves net revenue and EBITDA ~ USD 2 4 ,0 0 0 / day for Suezmax – OpEx / day USD 7 ,5 2 0 by USD 7 2 m illion Yield or Grow th – W hy not both? Fixed I ncom e 2 4 25 VLCC acquired in last 30 months > USD 1 0 0 m illion of EBITDA (2) generated annually from 80% of annualized P&L returned to shareholders since fixed income contracts (FSO + TC contracts) January 2015 (3) 1. Before TC-in/fixed income 2. Proportionate consolidation method & FSO contribution current contract runs to Q3 2017 3. Details of Company distribution policy at www.euronav.com 4
Shipping– access to finance is key in the “new normal” Tanker sector rem ain CYCLI CAL but……………… Financing becom ing STRUCTURALLY restricted 14% 100 Mid to long term outlook positive 12% 95 % grow th YOY VLCC fleet m barrels consum ed per day 10% 90 8% 85 6% 80 4% • “New Norm al” financing restricts amount of newbuilding orders – less cyclical extremes • Oil dem and NOT cyclical – 1.1m average demand 75 2% growth last 20 years • I ndustrial players (more disciplined) will retain capital access leading to higher & more sustainable returns 0% 70 5 Source IEA, BLoomberg
Oil Tankers 2015 – All Green 2016-2017 – Mixed Long Term – All Green Five Key Drivers Financing Demand for Oil Supply of Oil Ton Miles Supply of Vessels NEW BARRI ER BALANCED REDUCED S/ TERM ROBUST TO ENTRY HEADW I NDS • Oil demand growing • Atlantic sourced L/ TERM • New regulations • OPEC supply growth = last 25 years with Yearly barrels been replaced by (Basel 3 & 4) restricting Non OPEC reduction MANAGEABLE average 1.1 mbpd primarily Middle East lending supply reducing ton • USA production shale miles • Seasonal trends • IEA forecast 1.4mbpd • Distress in shipping New Sw ing Producer impacted by factors for 2016 and 1.2mbpd loans has reduced risk very resilient & increasing tonnage EVERY year to 2020 • USA crude exports to appetite responsive increase ton miles from • Contracting rate fallen 2017 • Only 2 negative years substantially & shipyards • Equity in retreat • Iran increase to pre of growth since 1990 for under reform pressure PE & ship owners sanction output forecast global crude demand late 2016 1 2 3 4 5 6
Section 2 Current trading 5 7
REMEMBER – Tankers remains a Seasonal Business SEASONALI TY BUI LT I N – EVERY Q2 DEMAND RETREATS AS REFI NERY TANKER RATES SEASONAL BY NATURE – VLCC EARNI NGS 2 0 0 9 -2 0 1 6 MAI NTENANCE & NORTHERN HEMI SPHERE I NTO SUMMER Million barrels per day 120,000 97 $ USD / Day 96 100,000 2011 95 2012 80,000 94 2013 2014 93 60,000 2015 92 40,000 2016 91 Average 2011-2015 20,000 90 89 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 88 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Minimum 2009-2014 Maximum 2009-2014 2015 2016 Source IEA Source Clarksons 8
Ton Mile Dislocation DI SLOCATI ON I N VLCC EQUI VALENT TERMS = LOSS OF APPROX 2 0 VLCCS ( ANNUALI SED) 1 mbpd x 365 days = 365m barrels 365m barrels / 2m capacity per VLCC = 183 cargoes Arabian Gulf to China 2 1 days 183 cargoes / 9 annual journeys for VLCC MEG – F East 5 ,5 0 0 m iles = 2 0 VLCCs W est Africa to China 3 3 days 9 ,6 5 0 m iles LatAm to China 4 4 days 1 1 ,5 0 0 m iles Asia Pacific Middle East China 29 – 32 West Africa VLCCs LatAm / Caribs 52 – 54 1 mbpd x 365 days = 365m barrels VLCCs 365m barrels / 2m capacity per VLCC = 183 cargoes 183 cargoes / 4.5 annual journeys for VLCC Atlantic – F East = 4 0 VLCCs Source Euronav, Morgan Stanley 9
Q4 BEYOND AND Q3 I MPACTS RESPONSE • Reduction of delays in key ports Q2 Q3 • Weather impact less prevalent than previous CONGESTI ON summers (Mid East / Caribs) • One tim e negative im pact on supply • Seasonality built into tanker sector • Cargo count all times high during 2016 SEASONALI TY • Q4 rates + 7 0 % on average in 1 4 out of last 1 6 years • Loss of Atlantic barrels - Nigeria (600-800k bpd) & SUBSTI TUTI ON – Venezuela (200k) has dislocated ton miles LOSS TON MI LES • Nigeria force m ajeure ending; Far East retains focus on diversifying crude sourcing • 29 VLCC & Suezmax delivered to global fleet April – August 2016 v 14 in same 2015 period I NCREASED • New vessels not vetted so first voyage at discount CAPACI TY/ VESSELS • Tanker delivery rate peaks m id 2 0 1 7 W I THOUT VETTI NGS • Speeds important as can alter tonnage capacity • Operational flexibility – affirm ative action taken SPEED by ship ow ners reducing average VLCC speeds by c 1 0 % since w eaker rates 10
Section 3 Industry Dynamics 5 11
Oil Price – Impact on Demand 1 Demand for Oil OI L PRI CE OUTLOOK Lack of disruption/ market share game Dem and Destructive 90 Iran and other supply remain high USD per barrel Shale - as swing producer increases 2 0 0 9 - 2 0 1 4 proved in this oil output price range that dem and w as 80 destroyed 70 Neutral 60 50 Dem and Stim ulating proven over time that the cheaper the commodity price the greater it 40 is used 30 Dem and Disruptive 20 Current structure of global markets mean energy/ capex/ sovereign wealth effects > consumer stimulus from Capex cuts in E&P lower oil prices 10 Potential coordinated cuts in production QE returns/ $ loss of value/ oil as financial asset 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 12
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