AGM 2020 PRESENTATION CEO HUGO DE STOOP - MAY 2020
FORWARD LOOKING STATEMENTS Matters discussed in this presentation may constitute forward-looking statements under U.S. federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect the Company’s current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including, without limitation, the delivery of vessels, the outlook for tanker shipping rates, general industry conditions future operating results of the Company’s vessels, capital expenditures, expansion and growth opportunities, bank borrowings, financing activities 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 from those projected in the forward-looking statements. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their obligations to us, the strength of the world economies and currencies, general market conditions, including changes in tanker vessel charter hire rates and vessel values, changes in demand for tankers, changes in our vessel operating expenses, including dry- docking, crewing and insurance costs, or actions taken by regulatory authorities, ability of customers of our pools to perform their obligations under charter contracts on a timely basis, potential liability from future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists. We undertake no obligation to publicly update or revise any forward looking statement contained in this presentation, whether as a result of new information, future events or otherwise, except as required by law. In light of the risks, uncertainties and assumptions, the forward looking events discussed in this presentation might not occur, and our actual results could differ materially from those anticipated in these forward-looking statements. 2
COVID-19 SUPPORTING OUR PEOPLE IN CHALLENGING TIMES Approx. 3,600 EMPLOYEES • Wellbeing of Euronav’s community = priority #1 Approx. 3,400 seafarers of many different nationalities • Approx. 200 shore employees • • Precautionary measures on board and on shore • Most of shore staff working from home • No employees put under temporary or permanent unemployment Headquarters in Antwerp • Working hard towards a solution for seafarers who need to stay on board or get on board • Euronav not materially impacted thanks to our people • BELGIUM: 200,000 FFP2 and surgical mouth masks Euronav offices Partnerships sourced and donated to hospitals and care centers • GREECE: donated respiratory equipment to hospitals 3
EURONAV – WHO WE ARE EURONAV – WHO WE ARE The world’s largest, independent quoted crude tanker platform 46 VLCC incl. 4 N/B 26 Suezmax* International company – internationally connected 2% 16% 23% 24% Headquarters in Antwerp Av Age 45% Av Age 15% 7.3 Yrs 11.1 Yrs 29% 46% Euronav offices 0-5 yrs 6-10 yrs 11-14 yrs 15+ yrs 0-5 yrs 6-10 yrs 11-14 yrs 15+ yrs Partnerships 2 FSO* 2 ULCC Mix of time charter and spot exposure for the rest of 2020 19% Fixed days Spot days 81% * Includes JV 4
EURONAV STRATEGY – SHAREHOLDER FOCUS Shareholder returns since 2014 Repayment schedule and RCF reductions Leverage: USD 3.77 DPS • 600 39.5% book value since 2015 445 Millions • 42% post dividend payments for 2h $1.035bn dividend 347 500 2019 & Q1 2020 345 paid since 2004 $m net Income, Dividend & Buy back $17.76 p/s 270 400 226 245 187 172 300 123 145 119 77 45 200 32 23 45 7 3 100 -9 -55 -50 0 -155 -138 Bond Maturity Balloon to be refinanced Net Income Dividend Share Buy Back Repayments Reductions Source: Euronav Source: Bloomberg 5
EURONAV STRATEGY – LIQUIDITY FOCUS +$270m 4x VLCC DELIVERY Q4 20 Q1 21 6
EURONAV OPERATIONAL LEVERAGE WITH CONTRACTUAL INCOME SUPPORT Each $5,000 uplift in both VLCC and Suezmax rates improves net revenue and EBITDA by $108mm $1,188 $540 $324 $108 BASE +$5,000 +$15,000 +$25,000 +$55,000 per day per day per day per day VLCC TCE rates $25,000 $30,000 $40,000 $50,000 $80,000 Suezmax TCE rates $20,000 $25,000 $35,000 $45,000 $75,000 + Long term TC contract to 2024 FSO contract until 2022 Commercial TC relationships 7
EURONAV 2019 – HIGHLIGHTS 2019 In USD million Q1 Q2 Q3 Q4 EBITDA 130.0 71.0 96.8 266.8 564.6 Net Income 19.5 -38.6 -22.9 160.8 118.9 EPS c per share 8.8 -17.5 -10.4 73.0 53.9 1 SHAREHOLDER RETURNS & MOVE TO QUARTERLY DIVIDENDS 35c per share dividend & $35m in buy back 2 BALANCE SHEET STRENGTHENED Bond upsized to $200m with $1.1bn of cash or revolving credit facilities available 3 SUCCESSFUL IMPLEMENTATION OF IMO 2020 No Scrubbers – Fuel quality – Shipping emitting 85% less sulphur in the atmosphere 4 ACTIVE FLEET MANAGEMENT 3x VLCC sale & leaseback, 1x VLCC sold, 1x Suezmax sold, 2x Suezmax bought in JV 8
EURN SHARE PRICE 2019 YEAR OF PROGRESS 13 Share buy backs $35m in total 12 11 10 9 8 7 6 EURN US EURN BB Share buy backs 9
LIQUIDITY OF SHARE TRADING UP TO USD 40 MILLION PER DAY 45 USD value traded per day on NYSE and Euronext in Euronav 40 35 30 25 20 15 10 5 0 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q12020 NYSE USD value traded Euronext USD value traded Source: Bloomberg 10
EURONAV BOND AN IMPORTANT PART OF OUR FINANCING Bond size upsized by USD 50m to USD 200m 110 105 Euronav bond price USD 100 95 Bonds repurchased by Company 90 85 11
EURONAV MISSION STATEMENT 1 FOR OUR SOCIETY To deliver an essential source of energy in ways that are economically, socially and environmentally viable now and in the future. 2 FOR OUR CLIENTS To operate in a manner that contributes to the success of their business objectives by providing flexible, global high-quality and reliable services. 3 FOR OUR SHAREHOLDERS AND CAPITAL PROVIDERS To create significant long-term value by strategically planning financial and investment decisions while efficiently, consistently and transparently act as good stewards of capital. 4 FOR OUR SHAREHOLDERS AND CAPITAL PROVIDERS To attract, inspire and enable talented, hard-working people to develop themselves in order to contribute to our business and its vision in a challenging and rewarding environment. 12
ESG AT EURONAV, IT’S IN THE DNA 13
Environmental Social Governance Carbon emissions cut 10% Top quartile rank in 2019 with 2019 sector since 2016 leading disclosure in key surveys In GEI 3 years >40% Female running & only representation transport co on board 14
ESG – EURONAV CREDENTIALS WELL ESTABLISHED WITH FURTHER TO GROW 35 30 Bloomberg ESG Disclosure Score 25 20 15 10 5 0 2014 2015 2016 2017 2018 Euronav Tanker Co A Tanker Co B Source: Bloomberg, Euronav 15
OUTLOOK TANKER MARKET UNDERPINNED UNTIL INVENTORY CYCLE CHANGES Demand for Supply Vessel Ton miles IMO 2020 Oil Supply of Oil Low orderbook 2020 temp Many ships Storage & over Switch to AG Flexible impact supply >15 years from Q4 Change ST Positive Negative Positive No Change ST Coronavirus 16
CURRENT MARKET HIGHLIGHTS Storage has further capacity for substantial impact 1800 105 1600 100 IEA oil demand & production m bbls Cumulative inventory build m bbls 1400 95 EIA estimate onshore storage capacity 1200 90 1000 800 85 600 80 400 75 200 0 70 Cumulative inventory build IEA Oil Production IEA Oil Demand Source: Bloomberg. IEA, EIA, Broker reports 17
ONSHORE STORAGE LIMITED TO 1BN BARRELS AND OECD LOCATION FOCUSED Likely already approaching full onshore capacity given recent moves to tankers Source: HIS Markit, EIA, Livemnint, Reuters, various 18
NOT ALL FLOATING STORAGE IS CREATED EQUAL Storage has ONLY just begun with: • 129 VLCCs are currently being used as storage of which : • 69 VLCCs taken for market storage in April • 38 Iranian • 22 infrastructure VLCC in storage before crisis 250 16% …and now up to 73 14% Suezmax now in 200 market storage x2 12% record high 10% No of Vessels 150 8% 100 6% 4% 50 2% 0 0% Dedicated Infrastructure Storage Iranian VLCC Market Storage Suezmax % of VLCC fleet Source: Bloomberg, Clarksons, Fearnley 19
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