Company Presentation November 2017 | 1 1 | 2017 1 | 2017 2017
Disclaimer • THIS PRESENTATION (THE “PRESENTATION”) HAS BEEN PRODUCED BY FLEX LNG LTD. ("FLEX LNG" OR "THE COMPANY”), SOLELY FOR PRESENTAT ION PURPOSES AND DOES NOT PURPORTE TO GIVE A COMPLETE DESCRIPTION OF THE COMPANY, ITS BUSINESS OR ANY OTHER MATTER DESCRIBED HEREIN. • THE PRESENTATION DOES NOT CONSTITUTE AN OFFER, INVITATION OR SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE OR SELL ANY SECURTIEIS. THIS PRESENTATION IS STRICTLY CONFIDENTIAL AND MAY NOT BE REPRODUCED OR REDISTRIBUTED, IN WHOLE OR IN PART, TO ANY OTHER PERSON. • NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY OR COMPLETENESS OF ANY INFORMATION INCLUDED HEREIN IS GIVEN BY THE COMPANY, AND THAT NOTHING CONTAINED IN THIS PRESENTATION IS OR CAN BE RELIED UPON AS A PROMISE OR REPRESENTATION BY THE COMPANY, WHO DISCLAIM ALL AND ANY LIABILITY, WHETHER ARISING IN TORT OR CONTRACT OR OTHERWISE. • THE PRESENTATION SPEAKS AS OF THE DATE SET OUT ON ITS FRONT PAGE. THE COMPANY DOES NOT INTEND TO, OR WILL ASSUME ANY OBLIGATION TO, UPDATE THE PRESENTATION OR ANY OF THE INFORMATION INCLUDED HEREIN. • THE CONTENTS OF THE PRESENTATION ARE NOT TO BE CONSTRUED AS FINANCIAL, LEGAL, BUSINESS, INVESTMENT, TAX OR OTHER PROFESSIONAL ADVICE. EACH RECIPIENT SHOULD CONSULT WITH ITS OWN PROFESSIONAL ADVISORS FOR ANY SUCH MATTER AND ADVICE. • AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION. • THE PRESENTATION CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS RELATING TO THE BUSINESS, FINANCIAL PERFORMANCE AND RESULTS OF THE COMPANY AND/OR THE INDUSTRY IN WHICH IT OPERATES, SOMETIMES IDENTIFIED BY THE WORDS "BELIEVES”, "EXPECTS”, “INTENDS”, “P LAN S”, “ESTIMATES” AND SIMILAR EXPRESSIONS. THE FORWARD -LOOKING STATEMENTS CONTAINED IN THIS PRESENTATION, INCLUDING ASSUMPTIONS, OPINIONS AND VIEWS OF THE COMPANY OR CITED FROM THIRD PARTY SOURCES, ARE SOLELY OPINIONS AND FORECASTS WHICH ARE SUBJECT TO RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL EVENTS TO DIFFER MATERIALLY FROM ANY ANTICIPATED DEVELOPMENT. THE COMPANY DOES NOT PROVIDE ANY ASSURANCE THAT THE ASSUMPTIONS UNDERLYING SUCH FORWARD-LOOKING STATEMENTS ARE FREE FROM ERRORS NOR DOES THE COMPANY ACCEPT ANY RESPONSIBILITY FOR THE FUTURE ACCURACY OF THE OPINIONS EXPRESSED IN THE PRESENTATION OR THE ACTUAL OCCURRENCE OF THE FORECASTED DEVELOPMENTS. NO OBLIGATION IS ASSUMED TO UPDATE ANY FORWARD-LOOKING STATEMENTS OR TO CONFORM THESE FORWARD-LOOKING STATEMENTS TO ACTUAL RESULTS. • THIS PRESENTATION IS SUBJECT TO NORWEGIAN LAW, AND ANY DISPUTE ARISING IN RESPECT OF THIS PRESENTATION IS SUBJECT TO THE EXCLUSIVE JURISDICTION OF THE NORWEGIAN COURTS. | 2 2 | 2017 2 | 2017 2017
Table of contents 01 01 01 01 About FLEX LNG 02 02 02 02 LNG Shipping Market Outlook 03 03 03 03 MEGI Propulsion 04 04 FSRU Market Development 04 04 Summary 05 05 05 05 | 3 3 | 2017 3 | 2017 2017
01 01 01 01 About FLEX LNG | 4 4 | 2017 4 | 2017 4 | 2017 4 | 2017 4 | 2017 2017
FLEX LNG at a Glance FLEX LNG: LNG Shipping and Regasification FLEX LNG aims to become a leading supplier of LNG Carriers and Floating Storage & Regasification Units (“FSRUs”) • FLEX LNG is focused on providing safe, reliable, and cost effective solutions in the LNG shipping industry • The Company has built a strong market presence and successfully raised over US$ 200m in 2017 and transferred its listing to the main Oslo Stock Exchange FLEX’s fleet will provide Charterers with highly efficient tonnage to lower fuel consumption and reduce boil off rate • FLEX LNG has six 174,000 cbm MEGI* newbuildings under construction at DSME and SHI for delivery in 2018 and 2019 • MEGI propulsion has ~30% lower fuel consumption than Tri- Fuel Diesel Electric (TFDE) vessels FLEX LNG is actively pursuing opportunities in the FSRU market • FLEX LNG has a highly experienced commercial and technical FLEX ENTERPRISE: MEGI newbuilding under construction at DSME, South Korea team to succeed in the FSRU market *MEGI = M-type, Electronically Controlled, Gas Injection | 5 5 | 2017 5 | 2017 2017
FLEX LNGC Fleet Development Chartered-in Vessels Owned Fleet 6 2 173,400 173,400 173,400 173,400 173,400 170,000 174,000 174,000 • 4 chartered-in TFDEs for 6 months period from Mar-17 • 2 vsls redelivered Sep; 2 vessels extended until Mar-18 • 6 LNG MEGI vessels on order • Building market presence, operational experience, • Under contruction at DSME and SHI in Korea and relationships with key LNG charterers • Delivering Q1-Q3 2018, Q2-Q3 2019 Owned Fleet Deliveries # Vessels 6 6 5 1 4 1 3 1 2 2 1 0 Q1 2018 Q2 2018 Q3 2018 Q2 2019 Q3 2019 | 6 6 | 2017 6 | 2017 2017
FLEX LNG Fleet Breakdown – Owned and Chartered-In Status Vessel Name Builder Prop. Built Capacity Head Owner Employment 1. Owned TBN FLEX ENDEAVOUR DSME MEGI 2018 173,400 m3 FLEX LNG Available Jan 2018 2. Owned TBN FLEX ENTERPRISE DSME MEGI 2018 173,400 m3 FLEX LNG Available Jan 2018 3. Owned TBN FLEX RANGER SHI MEGI 2018 174,000 m3 FLEX LNG Available May 2018 4. Owned TBN FLEX RAINBOW SHI MEGI 2018 174,000 m3 FLEX LNG Available Jul 2018 5. Owned TBN FLEX CONSTELLATION DSME MEGI 2019 173,400 m3 FLEX LNG Available Jun 2019 6. Owned TBN FLEX COURAGEGOUS DSME MEGI 2019 173,400 m3 FLEX LNG Available Aug 2019 7. Chartered-in WOODSIDE REES WITHERS DSME TFDE 2016 174,000 m3 Dynagas Chartered-out 8. Chartered-in PSKOV STX TFDE 2014 170,000 m3 Sovcomflot Chartered-out | 7 7 | 2017 7 | 2017 2017
FLEX LNG’s FSRU Ambitions Growth of FSRU Regas Capacity by Country FLEX LNG FSRU Strategy FLEX LNG is actively developing several opportunities to mtpa India Chile Bangladesh Puerto Rico Uruguay 100 leverage its experience with the development and implementation Brazil Russia Pakistan Turkey Ghana of FSRU infrastructure 80 • Opportunities may include FSRU newbuildings for long-term charters and/or conversions of existing vessels 60 FLEX LNG has a highly experienced commercial and technical 40 team to succeed in the FSRU market • Jonathan Cook (founding partner at Excelerate Energy 20 and ex-Chief Marketing Officer for Cardiff LNG) was appointed CEO in March 2017 0 2017E 2018E 2019E • Thomas Thorkildsen (formerly head of business development Source: Reuters at Höegh LNG, responsible for FSRU opportunities) joined in February 2017 to lead business development efforts • Øystein Kalleklev (formerly CFO at Knutsen NYK Offshore Tankers involved in e.g. financing of FPSOs) joined FLEX in September 2017 The FLEX LNG team can draw on extensive technical FSRU knowledge within the group • Management has been involved in 13 of the existing 21 FSRU projects worldwide (19 FSRUs including decommissioned projects) Escobar FSRU, Argentina | 8 8 | 2017 8 | 2017 2017
Functional Organizational Chart of FLEX LNG A highly experienced team is in charge of LNG shipping LNGC FLEX LNG Strategic Partners Providing technical management and support services Owned Fleet Chartered Fleet Finance & Admin • 160 vessels including LNG, (FLEX LNG) (FLEX LNG) (FLEX LNG) tankers, dry bulk, container, offshore supply Frontline Management Ltd • Vessel construction, project management, technical Technical Mgt Chartering Chartering Finance management, insurance, etc. (Frontline Mgt) (FLEX LNG) (FLEX LNG) (FLEX LNG) • HSE and Incident Response Accounting Commercial Newbuild Commercial Providing newbuild construction (Frontline Mgt) Supervision Operations Operations supervision services (V.Ships) (Seatankers) (V.Ships) Seatankers • 47 vessels under construction Management Ltd including LNG, tankers, dry Crewing, Insurance bulk, containers, offshore Ship Mgt (Frontline Mgt) (Bernhard Schulte) Providing crewing and ship Newbuild FLEX LNG Design management services Bernhard Schulte Shared Services (Ship • 600 ships under crewing Construction Shipmanagement and/or technical management Third Party Strategies) • Dedicated LNG crew for FLEX LNG vessels | 9 9 | 2017 9 | 2017 2017
FLEX LNG - Organizational Chart CEO Jonathan Cook Business Finance/Admin/IR Technical Development Commercial Oystein Kalleklev Operations Olav Eikrem Thomas Thorkildsen Jonathan Cook CFO Technical Director SVP B.D. VP B.D. SVP Finance Comm. Analyst Fleet Manager Head of Newbuilding Fleet Manager James Clarke Kent Paulli Sara Stahl Mike O’Rourke Björn Westerberg Ola-Petter Dahlen Accounting/Tax Comm. Operator Marine Super. Project Manager Sr. Tech Super. Manager B.D. Tom Pryor (4) Andrew Niven Jason Ratcliffe JS Narayanan Calum Hickman Fleet Personnel Corp. Secretary FSRU Design Comm. Operator Technical Officer DSME Agnieszka Georgina Sousa Alan Nierenberg Marijan Glavan Frank Shaw Murawka Site Team (19) (2) Insurance Technical Officer SHI Chris Walker Adrienne Snowdon Site Team (14) Technical Officer Vicky Gatherar Electrical Super. | 10 10 | 2017 10 | 2017 2017
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