Presentation at Pareto Oil & Offshore Conference September 12 th - PowerPoint PPT Presentation

Höegh LNG - the FSRU provider Presentation at Pareto Oil & Offshore Conference September 12 th , 2018 Sveinung J.S. Støhle President & CEO 1

Forward looking statements This presentation contains forward- looking statements which reflects management’s current expectations, estimates and projections about Höegh LNG’s operations. All statements, other than statements of historical facts, that address activities and events that will, should, could or may occur in the future are forward- looking statements. Words such as “may,” “could,” “should,” “would,” “expect,” “plan,” “anticipate,” “intend,” “forecast,” “believe,” “estimate,” “predict,” “propose,” “potential,” “continue” or the negative of these terms and similar expressions are intended to identify such forwa rd-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required, Höegh LNG undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changes in LNG transportation and regasification market trends; changes in the supply and demand for LNG; changes in trading patterns; changes in applicable maintenance and regulatory standards; political events affecting production and consumption of LNG and Höegh LNG’s ability to operate and control its ve ssels; change in the financial stability of clients of the Company; Höegh LNG’s ability to win upcoming tenders and securing employment for the FSRUs on ord er; changes in Höegh LNG’s ability to convert LNG carriers to FSRUs including the cost and time of completing such conversions; changes in Höegh LNG’s a bility to complete and deliver projects awarded; changes to the Company’s cost base; changes in the availability of vessels to purchase; failure by yards to comply with delivery schedules; changes to vessels’ useful lives; changes in the ability of Höegh LNG to obtain additional financing, including the impact fr om changes in financial markets; changes in the ability to achieve commercial success for the projects being developed by the Company; changes in applicable regulations and laws; and unpredictable or unknown factors herein also could have material adverse effects on forward-looking statements. 2

Agenda ▪ Company background ▪ Recent milestones ▪ Market update ▪ Financial update ▪ Summary 3

Höegh LNG is the leading owner and operator of FSRUs ▪ Largest, most modern and most efficient Floating Storage and Regasification Unit (FSRU) fleet in the market ▪ Solid backlog with credible counterparts 8 FSRUs in operation 2 LNGCs in operation 2 FSRUs under construction ▪ Actively pursuing backlog extension through on- going tender processes 8.7 years USD 3.2 bn Avg. remaining contract length Revenue backlog ▪ Market cap / EV: USD 450m / USD 1.6bn ▪ Assets / equity ratio*: USD 2.1bn / 37% ▪ Revenues / EBITDA**: USD ~300m / USD ~160m HLNG NO HMLP common equity ▪ Employees: 125 onshore / 525 offshore HLNG02 / HLNG03 bond loans HMLP-A preferred * 30 June 2018 ** H1 2018 annualised 4

The fleet at work - Global presence serving credible counterparts Arctic Princess Independence Höegh Arctic Lady Neptune Esperanza Höegh Giant Höegh Gallant Cape Ann Höegh Grace PGN FSRU Lampung FSRU LNG carrier FSRU intermediate trading 5

Recent milestones ▪ Debt financing secured for FSRU #9 Financing ▪ Debt financing secured for FSRU #10 ▪ Höegh Esperanza delivered with no LTIs ▪ Operational 100% technical availability across the fleet in 2018 ▪ Excellent HSEQ statistics - Zero LTIs last 12 months ▪ 3-year TC for Höegh Esperanza with CNOOC ▪ Commercial 15 month interim TCP for FSRU #9 with Naturgy ▪ Progress made on several tendering processes 6

Natural gas’ share of the global energy mix increasing, enabled by LNG Primary energy consumption Shares of primary energy ▪ Transition to a lower carbon fuel mix set to continue ▪ Natural gas expected to overtake oil and coal as the primary fossil fuel with an annual average demand growth of 1.6% ▪ Expanding LNG supply, paired with new regasification infrastructure, is providing access in-demand natural gas across global markets Source: BP Energy Outlook 2018 7

Prospective LNG importers choosing FSRUs as the tool for accessing LNG markets World LNG supply and demand FSRU opportunities in Asia 900 Other (Australia, Hong Kong, Sri Lanka, JKT Europe China 800 Philippines): All contemplating FSRUs India Other Asia MENA 700 Myanmar: Contemplating FSRU S America RoW LNG Capacity Vietnam: Contemplating FSRU 600 Indonesia: 2x FSRUs installed 500 mtpa Pakistan: 2x FSRUs installed, contemplating more 400 Thailand: Contemplating FSRU 300 Bangladesh: FSRU in place, contemplating more 200 India: 1 st FSRU to be installed Q4 2018, 100 several contemplated 0 China: 1 st FSRU in place, contemplating more 2000 2005 2010 2015 2020 2025 2030 2035 2040 Source: IHS Markit 8

Large number of market opportunities backed by diverse drivers of demand Enabler Demand drivers Existing and potential FSRU contracts Region Existing Under way Proposed Security of supply N America 1 2 Back-up for hydro S America 6 2 3 Seasonal demand Europe 4 1 4 Increasing supply of MENA 6 5 Transportation attractively Sub-Sahara priced LNG 1 4 Africa Balance of trade South Asia 4 3 5 New gas-fired generation Asia/Oceania 4 2 7 Replacement for coal and oil Sum 24 10 30 + Source: IHS Markit 9

FSRU supply well matched against the number of demand-side prospects FSRU fleet and orderbook 1 by owner/employment ▪ Recent newbuilding contracting: 12  BW LNGC-to-FSRU conversion  Maran Gas: 1x FSRU ordered, 1x 10 FSRU order cancelled (LNGC)  2 Botas 1x FSRU for own project 1 8 1 ▪ Single-purpose FSRUs are Units 6 2 intended for a pre-determined Botas project, rather than participation in Dynagas Java-1 4 8 8 competitive tenders Dynagas SWAN 1 Kol/Kal 5 1 Maran 2 Gazprom Exmar 2 MOL OLT 0 Höegh LNG Excelerate Golar LNG BW Gas Other Single-purpose Committed Available Committed NB Uncommitted NB 10

Modern fleet marketed in active tendering market Built EBITDA Charterer USDm/yr 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Höegh LNG Holdings Arctic Princess* 2006 19** Equinor Arctic Lady* 2006 19** Total Independence 2014 47 KN Höegh Giant 2017 Naturgy / Tendering Höegh Esperanza 2018 CNOOC / Tendering Delivery November 2018 FSRU#9 2018 Naturgy / Tendering Delivery May 2019 FSRU#10 2019 Tendering Höegh LNG Partners Neptune 2009 33** Total GDF Suez Cape Ann 2010 33** Total PGN FSRU Lampung 2014 40 PGN Höegh Gallant 2014 38 Egas Höegh Grace 2016 42 SPEC FSRU and/or LNGC Long-term contract LNGC interim trading Extension option Under construction intermediate charter * LNG carriers ** 100% basis, units are jointly owned 11

Höegh LNG is fully financed at attractive terms Höegh FSRU #9 FSRU #10 ▪ With commitments received for Esperanza the financing of FSRU #10, Höegh LNG is fully equity and Delivery April 2018 November 2018 May 2019 debt financed Export credit and Export credit and Sale and Structure ▪ Lending group consisting of commercial debt commercial debt leaseback leading international banks and Leverage (% of credit institutions 65-75% 65% 70-80% delivered cost) Amortisation 16-18 years 16 years 20 years profile Tenor 12 / 5 years 12 / 5 years 12 years Fixed interest ~4% ~5% ~6% rate 12

Solid balance sheet and robust liquidity situation Group balance sheet 1 at 30 June 2018 Available liquidity at 30 June 2018 USDm 2,500 Cash, net of HMLP 117 Marketable securities 50 Cash & eq., 195 2,000 Other, 85 Revolving credit facility 45 Equity, 782 Debt for FSRU #9 177 1,500 USDm Other, 17 Debt for FSRU #10 180 Bonds, 314 Available liquidity 569 1,000 FSRUs, 1,837 Increased leverage on Höegh Giant / 85 Höegh Esperanza / FSRU #10 Interest-bearing 500 debt, 1,003 Targeted available liquidity 654 0 Assets Liabilities Outstanding capital expenditures, 30 June 380 - 400 1) Adjusted for mark-to-market of hedging reserves 13

Earnings growth – Higher contribution expected from Höegh Esperanza and Höegh Giant in H2 2018 ▪ Total income Q2 2018 earnings reflecting full technical and commercial 80 70 uptime 60 USD million 50 40 ▪ H2 2018 earnings expected to 30 20 reach higher 10  0 Höegh Giant on index-linked LNGC 1q14 2q14 3q14 4q14 1q15 2q15 3q15 4q15 1q16 2q16 3q16 4q16 1q17 2q17 3q17 4q17 1q18 2q18 contract producing higher revenues EBITDA  Höegh Esperanza starting FSRU/LNGC contract in June 50 40 USD million 30 20 10 0 -10 1q14 2q14 3q14 4q14 1q15 2q15 3q15 4q15 1q16 2q16 3q16 4q16 1q17 2q17 3q17 4q17 1q18 2q18 14