[PPT] - 2017 24 August 2017 Agenda Highlights Financials PowerPoint Presentation

SLIDE 1

Second Quarter/First Half Year Presentation

2017

24 August 2017

SLIDE 2

Agenda

Highlights
Financials
Operational review
Market update and prospects

SLIDE 3

Highlights

Second quarter was slightly weaker than first quarter

and in line with guidance from the previous quarter

EBITDA of USD 41 mill, compared with USD 46 mill in

first quarter 2017

Net results of –USD 5 mill compared to USD 2 mill in

the previous quarter

Odfjell chemical freight index (ODFIX) down 1.3%

compared with previous quarter

Acquisition of 5 vessels from Chemical Transportation

Group (CTG) is completed

The potential sale of our share of the terminal in

Singapore has received high interest

Final refund from cancellation of eight gas carriers was

received in July

Financing for total outstanding capital expenditure in

Odfjell Tankers secured Highlights

300 250 200 150 100 50 2016 2017 2015 2014 2013 2012 2011 2010 2009 2008

Chemical tankers Tank terminals LPG/Ethylene

Annualised EBITDA1, USD mill

«We are not satisfied reporting a net loss for the quarter, but our operational performance remains strong. The CTG transaction completed our current growth ambitions to ensure that Odfjell can continue to offer competitive and efficient service to our customers. We expect 2H 2017 to be in line with 1H 2017»

Kristian Mørch, CEO Odfjell SE

1. Proportional consolidation method according to actual historical ownership share

*2Q17 annualised 3

SLIDE 4

Financials USD mill

2Q 2017 1Q 2017 Gross revenue 238 243 Voyage expenses (79) (82) TC expenses (50) (48) Operating expenses (46) (45) General and administrative expenses (22) (22) Operating result before depr. (EBITDA) 41 46 Depreciation (27) (29) Impairment

Capital gain (loss) on non-current assets

(0) Operating result (EBIT) 14 18 Net finance (18) (15) Taxes (1) (1) Net result (5) 2

1. Proportional consolidation method

Income statement¹ - Odfjell Group

4

SLIDE 5

Quarterly figures¹ – Odfjell Group

Financials Quarterly Gross Revenue and EBITDA, USD mill

Quarterly direction in gross revenue leads to similar drop in quarterly EBITDA
Weaker results in Odfjell Tankers marginally offset by improved results in Odfjell

Terminals

238 243 238 240 241 249 253 276 279 Q2 2015 Q4 2016 Q3 2016 Q2 2017 Q1 2017 Q4 2015 Q3 2015 Q2 2016 Q1 2016 41 46 48 60 61 69 45 57 53 Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q4 2015 Q3 2015 Q2 2015 Q2 2016 Q1 2016

Gross Revenue EBITDA

1. Proportional consolidation method

5

SLIDE 6

Quarterly figures¹ – Odfjell Group

Financials Operating Result (EBIT)¹, Net Finance² and Net Result, USD mill

Positive EBIT in ten consecutive quarters
Net finance quarterly deviation due to repurchase of 2018 bond above par value (106.5)

14 18 45 28 30 41 26 12

5

2 43 16 16

17

7 7 Q2 2017 Q3 2016 Q2 2016 Q1 2017 Q4 2016 Q3 2015 Q2 2015 Q1 2016 24 Q4 2015

1. Proportional consolidation method 2. Equity method

Operating Result (EBIT)¹ Net Finance² Net Result

14
14
12
12
11
11
12
12
7

1 17

11
14
9
18
3
13

5

9
10
4

Net interest Other financial/currency

6

SLIDE 7

Income statement¹ – Chemical tankers

USD mill 2Q 2017 1Q 2017 Gross revenue 209 213 Voyage expenses (79) (81) TC expenses (50) (48) Operating expenses (33) (31) General and administrative expenses 2 (17) (17) Operating result before depr. (EBITDA) 31 36 Depreciation (18) (20) Impairment

Capital gain/loss on fixed assets

Operating result (EBIT) 13 16

Financials

Gross revenue reflecting a weaker spot market

1. Proportional consolidation method 2. Including corporate functions 7

SLIDE 8

Financials

EBITDA variance – Chemical tankers

2Q 2017 versus 1Q 2017

Net gross revenue down 2%
Net voyage expenses down 3%
Operating expenses up 7%

TC exp.

1.6

Bunker der.

3.9

1Q 2017 36.0 0.2 OPEX

2.1

2Q 2017 31.0 G&A

0.1

Voy exp. 2.2 Bunker cl. 0.0 Gross rev. Quarterly EBITDA, USD mill

8

129.2 87.7 G&A 3.7 OPEX 3.8 TC exp.

15.7

Voy exp.

25.1

Gross rev.

8.3

YTD 2016 YTD 2017

YTD 2017 versus YTD 2016

Gross revenue down 2%
Voyage expenses up 18%
OPEX down 4%
G&A down 8%
EBITDA reduced 32%

SLIDE 9

Bunker development

Financials

Net bunker cost in 2Q USD 377 per tonne before hedging vs. USD 391 in 1Q
Bunker clauses in CoAs cover about 64% of the exposure
6% of 2017 exposure is hedged at USD 229 per tonne

3.3 26.7 9.9 2Q16 32.9 21.0 11.4 2Q17 37.3 38.6 35.8 3.3

0.5

4Q16 34.1 28.0 6.2

0.1

3Q16 36.7 34.3

0.3

1Q17

Quarterly net bunker cost USD mill 2Q 2016 - 2Q 2017 Platts 3.5% FOB Rotterdam January 2013 - July 2017

USD per metric tonne

9

Bunker purchase Bunker clauses

incl. in revenue

Bunker hedging

100 200 300 400 500 600 700 01.2016 01.2015 01.2013 01.2014 01.2017

SLIDE 10

USD mill 2Q 2017 1Q 2017 Gross revenue 28 28 Operating expenses (13) (13) General and administrative expenses (4) (5) Operating result before depr. (EBITDA) 10 9 Depreciation (8) (8) Impairment

Capital gain/loss on fixed assets

(0)

Operating result (EBIT)

1 1

Financials

Some negative effects from the end of the contango for middle distillates
Lower G&A driven by non-recurring management costs in the previous quarter
1. Proportional consolidation method (Odfjell SE share)

Income statement¹ – Tank terminals

10

SLIDE 11

Financials

EBITDA Tank terminals

EBITDA, USD mill YTD EBITDA Tank Terminals 2Q 2017 1Q 2017 Europe 2 1 North America 5 5 Asia 3 3 Total EBITDA 10 9

6 4 10 Asia North America Europe

11

Stable results in all areas
Odfjell Terminals Singapore EBITDA USD 5

mill in 1H 2017 (Odfjell SE share)

SLIDE 12

Balance sheet 30.06.2017 – Odfjell Group¹

Assets, USD mill Ships and newbuilding contracts 1 249 Other non-current assets/receivables 23 Investment in associates and JV’s 335 Total non-current assets 1 608 Cash and cash equivalent 190 Other current assets 114 Total current assets 304 Total assets 1 912 Equity and liabilities, USD mill Total equity 718 Non-current liabilities and derivatives 35 Non-current interest bearing debt 907 Total non-current liabilities 942 Current portion of interest bearing debt 187 Other current liabilities and derivatives 64 Total current liabilities 252 Total equity and liabilities 1 912 Financials

1. Equity method

12

Cash balance of USD 190 mill - excluding JV’s cash
Net investment in tank terminals JV’s USD 320 mill
Sale/lease back structures for two vessels at favourable terms at the

end of June gave USD 28 mill in additional liquidity

SLIDE 13

Debt Portfolio, USD mill Debt Repayments, USD mill Financials 50 100 150 200 250 300 2021 2020 2019 2018 2017

NOK bond 12/17 NOK Bond 12/18 NOK Bond 16/19 NOK Bond 17/21 Secured loans Balloon Leasing

Debt development – corporate and chemical tankers

30.06.2017

13

200 400 600 800 1 000 1 200 2021 2020 2019 2018 2017

Repayment Ending balance

We have secured financing of all six vessels ordered at the Hudong Yard in China
Financing of the five vessels acquired from CTG is also in place
NOK bond maturing in December 2018 of USD 84 mill

SLIDE 14

Financial ratios – Odfjell Group

14

2013 27.7x 2017 YTD annualised 8.3x* 2016 4.8x 2015 8.5x 2014 17.6x Gross interest bearing debt / EBITDA 38% 38% 33% 31% 37% 2Q 2017 2016 2015 2014 2013 Equity ratio Return on capital employed (ROCE)1 Return on equity (ROE) 3% 8% 2%

1%
3%

2017 YTD annualised 2016 2015 2014 2013

1%

15%

6%
12%
14%

2014 2013 2015 2016 2017 YTD annualised

Note figures are by the equity method, year-end (or annualised) and not adjusted for extraordinary items such as impairments, capital gains, etc. 1. EBIT divided by end of period total equity plus net interest-bearing debt

Equity method method Financials

*adjusted for NOK bond repayment in April 2017

SLIDE 15

USD mill Remaining 2017 2018 2019 2020 2021 Chemical Tankers Newbuildings 4 x 49,000 dwt¹ 6 24 144 42

Newbuildings 2 x 38,000 dwt1
6

12 87

CTG 5 x 25,000 dwt

92 108

Docking

6 12 12 12 12 Other investments * 6 7 7 7

Total

110 157 175 148 12 Tank Terminals, 100% Planned capex 25 57 39 29

Financials

Capital expenditure programme – 30.06.2017

1 Construction cost USD 60/58 mill per vessel, payment terms 3 x 10 +70, delivery June 2019 - 2020

* Includes propeller upgrade and ballast water treatment systems

15

SLIDE 16

Liquidity situation

16

Operational review

 Our balance sheet remains robust and we have secured financing for our recent growth initiatives  Our current fleet growth in Odfjell Tankers is almost completed. We do not want to stretch

ur balance sheet, but have sufficient liquidity

to act if the right opportunities arises  Financing of newbuilding programme in Odfjell Tankers is completed  Total equity instalments on the newbuilding programme limited to USD 50 mill, of which USD 20 mill will be paid in 3Q 2017  The remaining instalments will be funded by

perational cash flow and existing cash

 Repayment of USD 25 mill bridge financing will be done in 3Q 2017

Equity instalments on newbuilding programme 3 9 6 6 6 20 10 20 30 40 50 Q1-18 Q3-17 Q2-18 Q4-18 Q2-19 Q3-19 Q4-19 Q2-20 Q3-18 Q1-19 Q1-20 Q3-20 Q4-17 USD mill

SLIDE 17

Fleet additions DWT Built Tanks Transaction August 2017 Chem Bulldog 21 306 2010 Stainless Short TC June 2017 Bow Compass* 33 609 2009 Stainless Purchase June 2017 Bow Neon 25 000 2017 Stainless Purchase April 2017 Sun Triton 12 670 2017 Stainless Long TC March 2017 Southern Quokka 26 077 2017 Stainless Long TC February 2017 Stellar Orchid 12 571 2011 Stainless Short TC January 2017 Stellar Wisteria 12 601 2011 Stainless Short TC January 2017 Argent Eyebright 33 609 2009 Stainless Short TC

Short-term TC: Up to one year Medium-term TC: 1-3 years

Fleet disposals DWT Built Tanks Transaction May 2017 Bow Aratu 13 843 1997 Stainless Sale April 2017 Chembulk Sydney 14 271 2005 Stainless Redelivered Feb 2017 Chembulk Wellington 14 312 2004 Stainless Redelivered

Operational review

Fleet development – Year-to-Date

17 * Former Argent Eyebright

SLIDE 18

CTG transaction almost completes our growth ambitions for chemical tankers

18

Operational review

Growth target of operating 100 chemical

tankers is almost completed

CTG transaction to positively contribute to
ur returns with limited downside risk

Deal facts:

Attractive equity returns
Consolidates the 25k segment which

is in need of more consolidation

Attractive financing terms secured
Transaction was concluded at an

attractive stage of the asset cycle

Projected fleet growth SS 38k 30 tanks and 20k 20 tanks Newbuild prices

Source: Maersk Brokers

SLIDE 19

Odfjell Terminals

 Possible Ethylene project Houston

 We have finalised the basic engineering and have all the required permits  We are ready to start construction as soon as we have the appropriate commitments from customers, with whom we are in continuous dialogue to finalise agreements  If satisfactory customer commitment and financing is achieved, final investment decision can be made in 2H 2017

Initiated a process to explore a sale of our share in Odfjell Terminals Singapore
We have received high interest from numerous potential buyers
A potential sale would be in line with our strategy of focusing on core terminals where we have
perational control
A transaction seems likely to materialise in 2H 2017
Development in Rotterdam
We have secured a long-term contract for most of our PID in Rotterdam at attractive terms
This counters a weaker development in the tank terminal market, which is negatively affected by

the end of the contango for middle distillates

The value creation programme in Rotterdam is progressing

19

Operational review

SLIDE 20

20 Source: Odfjell, various brokers Note there are different definitions of core fleet between sources

Supply CAGR 2017 – 2019E Demand CAGR 2017 – 2019E 3.7% Consensus 3.4% Steensland 3.4% Maersk Broker 4.4% Clarksons 2.3% Odfjell 4.0% Consensus 3.7% World GDP 3.9% Steensland 3.3% Odfjell Clarksons 4.2% 3.5% Maersk Broker Market update and prospects

Our overall view on market fundamentals is in line with consensus, indicating demand will outgrow supply

SLIDE 21

Market update and prospects

Market update – Chemical tankers

Source: Clarkson Platou 1. Odfix Index (1Q 1990 = 100) 2. Chemical tanker spot earnings index (midcycle = 100) 21

Odfix quarterly average index (1990=100)

60 70 80 90 100 110 120 130 140 150 2012

0.3%
1.3%

2017 2016 2015 2014 2013 2011 2010 2009 2008

% change 2Q

vs. 1Q

Odfix average 2008-2016 Chemical tanker spot earnings index (midcycle = 100) Source: Clarkson Platou Odfix index

Second quarter was in line with guidance

from the first quarter 2017, with a slightly weaker market

Odfjell chemical freight index (ODFIX)

down 1.3% compared with prevoius quarter.

We expect 3Q17 timecharter results to be

marginally lower than 2Q17

Odfix average 2008-2016 Odfix index

SLIDE 22

22

Prospects

We reiterate our view that both chemical tankers and

terminals markets will remain challenging in 2017

Our contract portfolios in both tankers and terminals

continues to soften the impact of the challenging markets

In the medium-term, we believe the current
versupply of tonnage to gradually be absorbed
We expect 3Q17 results to be marginally lower than

2Q17, but 2H 17 to be in line with 1H 17

SLIDE 23

ODFJELL SE - Conrad Mohrs veg 29, P.O. Box 6101 Postterminalen - 5892 Bergen, Norway Tel: +47 55 27 00 00 - Fax: +47 55 28 47 41 - E-mail: ir@odfjell.com - Org. no: 930 192 503 Odfjell.com

Company representatives: