Q2 2020 PRESENTATION OF FINANCIAL RESULTS 20 August 2020 1 - PowerPoint PPT Presentation

HÖEGH LNG – A FULLY INTEGRATED LNG INFRASTRUCTURE COMPANY Q2 2020 – PRESENTATION OF FINANCIAL RESULTS 20 August 2020 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 forward-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 vessels; 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 order; 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 ability 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 from 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 Q2 2020 Review and outlook 1 Q2 2020 Financials 2 Market update 3 Summary 4 Q&A 5 3

Highlights for the second quarter of 2020 Highlights  EBITDA of USD 57.7 million  Net profit of USD 2.9 million Stable operations despite challenging circumstances caused by Covid-19  Cost-savings progressing in accordance with plan   Completed the amendment, extension and USD-45-million upsizing of Independence’s debt facility  HLNG 02 bond loan repaid in June  Cash position improved to USD 151.9 million 4

Covid-19 update  Ensuring the health and safety of personnel remains the group’s highest priority  Limited operational and no contractual impact on Höegh LNG so far − Full or partial crew changes now conducted on all vessels  All assets operating in accordance with plans and charters − Revenues collected in accordance with contractual terms − All assets crewed in accordance with relevant safety requirements  Some business development projects are affected by the pandemic − Some actually pushed forward by the low price of LNG − Some being slowed down due to uncertainties and logistic challenges Partial return to office for onshore personnel  5

Cost-saving plan on schedule  Target to save/postpone: − USD 6-8 million in reduced Opex and SG&A − USD 3 million in dry docking off-hire to be postponed to 2021 − All savings are estimated compared with original plans and budget for 2020  SG&A expenses declined 38% q-o-q − USD 3.5 million decline in SG&A q-o-q − Two thirds a result of implemented cost-saving plan, with some aid from Covid-19 related savings with virtually no travel expenses incurred in Q2 − About one third is explained by seasonality due to holiday pay − Favourable FX development for non-USD SG&A 6

Financial performance Total income EBITDA 140 90 80 120 70 100 60 USD million USD million 80 50 40 60 30 40 20 20 10 0 0 2q17 3q17 4q17 1q18 2q18 3q18 4q18 1q19 2q19 3q19 4q19 1q20 2q20 2q17 3q17 4q17 1q18 2q18 3q18 4q18 1q19 2q19 3q19 4q19 1q20 2q20 Total income Recognition of future revenue EBITDA Recognition of future revenue 7

Fleet and contract overview Built EBITDA Charterer USDm/yr 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 AGL - Conditional on FID Höegh Esperanza 2018 CNOOC / AGL Höegh Gannet 2018 LNGC AIE - Conditional on FID Höegh Galleon 2019 Cheniere / AIE Lease back period from HMLP expires mid-2025 Höegh Gallant (TC in) 2014 LNGC Höegh LNG Partners Neptune 2009 33** Total Cape Ann 2010 33** Total PGN FSRU Lampung 2014 40 PGN Höegh Gallant 2014 HLNG Höegh Grace*** 2016 42 SPEC FSRU and/or LNGC Long-term contract Extension option Under construction intermediate charter • LNG carriers *** The initial term of the charter is 20 years. However, each party has an unconditional option to cancel the charter after 10 and 15 ** 100% basis, units are jointly owned years without penalty. However, if SPEC waives its right to terminate in year 10 within a certain deadline, Höegh LNG Partners LP 8 will not be able to exercise its right to terminate in year 10.

Charter coverage 2020-2022  98% charter coverage in 2020 Charter coverage 1 100%  85% charter coverage in 2021 if options are executed by charterers (66%) 90%  Near-term charter coverage will be covered by 80% short-term FSRU contracts and/or interim LNGC 70% contracts before long-term FSRU contracts kick-in 60% 50% 40% 30% 20% 10% 0% 2020 2021 2022 Charter coverage Charter coverage incl. Options 1: On 100% basis for 12 vessels, four units are jointly owned 9

Project pipeline Selected as FSRU provider Ongoing tenders Bilateral projects  Secured pipeline access  HLNG exclusivity FSRU  Indian subcontinent  Atlantic basin project  FID targeted in 2020 #4 − Ongoing negotiations  EES approval expected H1 2021 − Potential FID 2020  Latin America  FSRU TCP signed  HLNG shortlisted − project Potential start-up 2021  FID targeted in 2020 #5 FSRU  Cyprus  Indian subcontinent project  HLNG exclusivity  Batangas City, Philippines #3 − Proposal receives interest  HLNG one of three tenderers  Start-up Q1 2022 − Constructive dialogue with  Latin America authorities FSRU  HLNG preferred bidder project  Start-up 2023 #6  Possible competition from other solutions 10

HSEQ/ESG Lost time injury frequency 1  Joined Getting to Zero Coalition in 2019 − 0,38 Coalition’s objective is to launch first zero-emission vessel by 0,31 2030 0,00 0,00 0,00 2016 2017 2018 2019 2020 YTD Technical availability  Joined NCE Maritime CleanTech in June 2020 99,9 % 99,8 % 99,8 % 99,8 % 99,5 % − HLNG’s aim is to explore and develop new business opportunities such as infrastructure for non-carbon fuels in particular hydrogen and ammonia 2016 2017 2018 2019 2020 YTD 1: Calculated per million exposure hours for sea going personnel only 11

Agenda Q2 2020 Review and outlook 1 Q2 2020 Financials 2 Market update 3 Summary 4 Q&A 5 12

Income statement for the quarter ended 30 June 2020 USD million Q2 2020 Q1 2020 Total income 82.3 86.7 Charterhire and other expenses -1.2 -0.5 Operating expenses -17.5 -17.4 Administrative and BD expenses -5.8 -9.3 EBITDA 57.7 59.6 Depreciation -28.1 -28.1 EBIT 29.6 31.4 - Net interest expense -25.4 -25.4 Net other financials -0.1 -6.1 Profit before taxes 4.1 0.0 Corporate income tax -1.2 -1.0 Net result for the period 2.9 -1.0 13

Financial position at 30 June 2020 30.06.2020 31.03.2020 USD million Investments in vessels and other assets 2 247 2 273 No material change to the financial position Other 146 157 quarter-on-quarter Free cash 152 120 Total assets 2 545 2 551 Equity attributable to the parent 300 309 Book equity ratio of 30% 1 Non-controlling interests 298 294 Total equity 597 603 Interest-bearing debt 1 736 1 714 Other 212 234 Net interest-bearing debt of USD 1 560 million Total equity and liabilities 2 545 2 551 NIBD 1 560 1 570 Adjusted equity 780 789 Adjusted equity ratio 30 % 31 % 1: Adjusted for mark-to-market of hedges 14