Navigator Holdings Ltd. NVGS This presentation contains certain - PowerPoint PPT Presentation

Stifel Presentation August 2017 Navigator Holdings Ltd. “NVGS”

This presentation contains certain statements that may be deemed to be “forward - looking statements” within the meaning of applicable federal securities laws. Most forward-looking statements contain words that identify them as forward- looking, such as “may”, “plan”, “seek”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “project”, “opportunity”, “target”, “goal”, “growing” and “continue” or other words that relate to future events, as opposed to past or current events. All statements, other than statements of historical facts, that address activities, events or developments that Navigator Holdings Ltd. (“Navigator” or the “Company”) expects, projects, believes or anticipates will or may occur in the future, including, without limitation, acquisitions of vessels, the outlook for fleet utilization and shipping rates, general industry conditions, future operating results of the Company’s vessels, capital expenditures, expansion and growth opportunities, business strategy, ability to pay dividends 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 any expectations or goals expressed in, or implied by, the forward-looking statements included in this presentation, possibly to a material degree. Navigator cannot assure you that the assumptions made in preparing any of the forward-looking statements will prove accurate or that any long-term financial goals will be realized. All forward-looking statements included in this presentation speak only as of the date made, and Navigator undertakes no obligation to update or revise publicly any such forward-looking statements, whether as a result of new information, future events, or otherwise. In particular, Navigator cautions you not to place undue weight on certain forward-looking statements pertaining to potential growth opportunities or long- term financial goals set forth herein. 2

T ABLE OF C ONTENTS N AVIGATOR G AS M ARKET F INANCIAL I NFORMATION A PPENDIX 3

• N AVIGATOR AT A G LANCE Enabling opportunities in Energy, Plastics and Fertiliser markets Global Trade Diversification *Europe 31% Africa & MEG 25% Asia 22% SAM 12% NAM 10% Growing Together with Our Customers Leading Handysize Market Share ¦ Cargo Diversification Building for future markets Other 27% Petchems 38 2006: New 33 29 Consolidation Period management 26 23 8% LPG 12 7% 9 8 5 6 2000 2008 2009 2011 2012 2013 2014 2015 2016 2017 * 2016 YTD Regional Cargo Volume 4

G AS C ARRIER M ARKETS : M ORE TO IT THAN LPG Global Seaborne Transportation Producer of Ethylene Producer of Fertilizers. Producer of LPG 1 x New generation Midsize vessel 1x Large Ethane capable vessel on 4x Ice Class Semi- on 10 year contract 10 year contract Refrigerated vessels on 5-10 year contracts Strong Increasing Steady Market Growth Ton-Miles Diversification LPG Petrochemicals Ammonia 25 20 120 100 20 15 Million Tons Million Tons 80 Million Tons 15 60 10 10 40 5 5 20 - - - 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020 Source: Viamar 2017 5

G AS C ARRIER F LEET O VERVIEW 261 30 12% - 24 - 11% 10 Fully-Refrigerated 92 8% 1 Ethylene / Ethane 13* 26 - - Fully-Refrigerated 5 8% 59 Semi-Refrigerated 4 24 17% Ethylene Semi-Refrigerated / 336 12 4% Pressure Semi-Refrigerated / 633 4 1% Pressure * 11 of the 13 MGC’s are on long term time charters and the remnaining 2 vessels are owned by Navigator Source: Clarksons, 2017 6

I NDUSTRY O VERVIEW : T HREE M AIN C LASSES O F G AS S HIPS 7

W E ARE A CTIVELY I MPLEMENTING C HANGES T O O UR C ARGO M IX Total Earning Days 2015 to 2017 3,000 Days 43% 2,500 …and increasing Petchems Spot 2,000 Petchems TC LPG Spot 1,500 1,000 LPG Time Charter Earning Days 1H2016 1H2017 Change 500 Petrochemicals 1,219 2,374 + 95% LPG 3,104 2,978 - 4% Ammonia Time Charter Ammonia 342 336 - 2% - 2015 Q1 Q2 Q3 Q4 2016 Q1 Q2 Q3 Q4 2017 Q1 Q2 8

O UR G LOBAL F OOTPRINT IN P ETROCHEMICALS IS C HANGING Increasing voyage Long term structural approach to Shift from Middle East Larger parcel-sizes duration contracts to U.S. focus 9

T ABLE OF C ONTENTS B ACKGROUND N AVIGATOR G AS M ARKET F INANCIAL I NFORMATION A PPENDIX 10

H ANDYSIZE G AS F LEET O VERVIEW Market Share 15,000 – 40,000cbm Ethylene Vessels : Available capacity from 2018 Existing On Total Owner Ethylene Fleet Order Navigator Gas 33 - 33 [10] Ultragas 9 - 9 - 51% 37% Petredec 6 2 8 [4] Others Others Solvang 4 4 8 [8] Naftomar 7 - 7 - Harpain 5 - 5 [4] Handysize Fleet Demographics Beneleux 4 - 4 - Ethylene Non Ethylene Newbuilds Scrapping 12 Pacific Carriers 4 - 4 - 10 Schulte 4 - 4 - 8 6 Stealth Gas 1 3 4 - 4 Yara 3 - 3 - 2 0 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Other 29 - 29 [2] -2 -4 109 9 118 [28] -6 11

U.S. E THYLENE F OCUS : C OMPETITIVE F UNDAMENTALS US Ethylene expansions 2017 – 2022 U.S. Ethylene production vs domestic demand 2017 2018 2019 2020-22 50 Mts Millions Oxy 1,200 45 Westlake Calvert 100 40 Dow Freeport 3,300 +50% Formosa 300 35 CP Chem 3,300 30 Exxon Baytown 3,300 25 Indorama 800 20 Formosa 2,500 15 Sasol 3,300 LACC 2,200 10 Shintech 1,100 5 Shell 3,300 - TOTAL/Nova 2,200 Existing (Jan New Capacity 2017) U.S. Gas Prices Underpins C2 Production Cash Cost Structural Shift for our C2 exports: U.S. in focus 160,000 Mts Per Annum 20 USD/MMBtu 140,000 18 16 120,000 14 12 100,000 10 80,000 8 Middle East Exports 6 North 60,000 4 America 2 40,000 Exports - Jan-2013 Jul-2014 Jan-2016 Jul-2017 Jan-2019 20,000 Mt. Belvieu ethane Henry Hub natural gas WTI crude - 2012 2013 2014 2015 2016 Source: ESI, Bloomberg, 2017, & IHS, 2016 12

E NTERPRISE & N AVIGATOR E THYLENE T ERMINAL Source: 13

E NTERPRISE & N AVIGATOR E THYLENE T ERMINAL China Map 14

T ABLE OF C ONTENTS B ACKGROUND N AVIGATOR G AS M ARKET F INANCIAL I NFORMATION A PPENDIX 15

2017 6M H IGHLIGHTS 2017 6M HIGHLIGHTS Gross Revenue EBITDA NET INCOME US$151.7m US$64.1m US$5.0m Vessels owned Avg daily charter rate Fleet Utilization 36 US$21,657 89.2% 16

G AS C ARRIER C HARTER R ATES 78,000cbm - VLGC Navigator’s Daily TC Rates (US$) 22,000cbm - Semi-ref - Handy 30.3 30.0 29.7 28.9 28.6 28.3 30 27.4 $2,000 22,000cbm - Fully-ref - Handy 25.6 25.5 24.1 23.6 21.7 8,250cbm - Small $1,800 20 Average 2006 -2016 US$26,969 per day $1,600 10 $1,400 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 6M $1,200 2017 Navigator’s Utilization Rate $1,000 96.8% 99.4% 98.7% 97.1% 96.2% 97.4% 99.5% 92.9% 97.3% 94.3% 100% 87.9% 89.2% $800 80% US$375,000 Average 2006 -2016: 95.6% 60% $600 40% US$355,000 $400 20% $200 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 6M 2017 Source: Clarksons Platou Gas 2016 17

C OMMITTED R EVENUE Total US$ 622.1M in committed revenue 2017-2020 2020+ Committed Revenue EBITDA Average TCE Committed Revenue US$419.72M US$288.8M US$25,616 US$202.4M Committed revenue for the Navigator fleet Remaining 6 2018 2019 2020 Total months 2017 Available days 8,585 13,716 13,630 13,737 49,668 Committed charter days 1 4,890 4,566 4,009 2,920 16,385 Uncommitted days 3,695 9,150 9,621 10,817 33,283 Charter coverage 56.96% 33.29% 29.41% 21.26% 32.99% 419.72 3 Committed revenue (US$’M) 111.5 119.26 109.64 79.34 Average committed TC equivalent rate (US$ / d) 22,797 26,118 27,349 27,171 25,616 Committed EBITDA 2 (US$’M) 76.6 81.1 76.1 54.9 288.8 1) The committed revenue as at 30/6/2017, including the continuation of the charters in Indonesia. 2) Committed EBITDA calculated as contracted revenue less estimated vessel operating expenses based on average for FY 2016, excluding estimated broker commissions and other charter-related fees and expenses, any non-charter related costs such as general and administrative costs, drydocking expenses and other costs. 3) The total committed revenue beyond 2020 of $202.4 is excluded, represented by 6 vessels on committed time charters which expire up to December 2026. 18

D AILY O PERATING E XPENSES Navigator’s Daily Operating Expenses Analysis of Operating Expenses (US$) 9,000 1.0% 8,115 8,068 7,916 7,925 6.7% 7,779 8,000 7,632 7,657 7,415 7,316 7,102 5.4% 7,000 5.4% 6,000 1.7% 5,000 53.3% 4,000 14.0% 3,000 8.4% 2,000 1,000 Crew Lubes & Stores Repairs Upgrade Insurance Admin 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q2 2017 Tech Mgt Other 19