AGM Presentation Paddy Rodgers, CEO May 2016 1
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
Section 1 Euronav at a Glance 2 3
2015 – Strong year for Euronav and our shareholders Q1 Q2 Q3 Q4 Full Year In USD EBI TDA 131.3 142.3 127.9 160.6 562.2 Net I ncom e 80.9 92.4 72.2 104.7 350.1 EPS 0.508 0.580 0.454 0.658 2.199 ACTI VE PORTFOLI O MANAGEMENT BEST YEAR SI NCE 2 0 0 8 - DELI VERED 2 1 Profit sale of older tonnage ( Antarctica, Cap Laurent, Fam enne) Consistently strong rate environm ent during 2 0 1 5 Fleet renew al - 4 VLCCs bought sum m er 2 0 1 5 * Robust m arket fundam entals continued into 2 0 1 6 DI VI DEND – COMMI TMENT DELI VERED STRATEGI C OBJECTI VES – DELI VERED 3 4 Policy to return 8 0 % net incom e* * - delivered Substantial increase in share liquidity achieved Listing in New York provides platform for future grow th May 2 0 1 5 : $ 0 .2 5 Sept 2 0 1 6 : $ 0 .6 7 May 2 0 1 6 : $ 0 .8 2 * Will all be delivered in May 2016. * * Pre capital gains. 4
Q1 2016 Highlights In USD per day First quarter 2 0 1 6 First quarter 2 0 1 5 VLCC Average spot rate (in TI pool)* 60,638 50,845 Average time charter rate* * 40,847 44,547 SUEZMAX Average spot rate* 38,386 41,944 Average time-charter rate* * 32,251 41,593 * Including profit share where applicable * * Excluding technical offhire EBI TDA : USD 1 6 4 m – with year on year freight rate growth Rate volatility high but reflects strong and tight freight m arket Sale of Fam enne for $ 1 3 .8 m capital gain Outlook Q2 VLCC so far: 4 3 % fixed at more than USD 59,000 per day Q2 Suezm ax so far: Nearly 4 2 % fixed at more than USD 32,500 per day
Euronav – Largest Tanker Company in the World CURRENT FLEET – TOTAL 5 5 VESSELS – 1 3 .1 MM DW T W HO W E ARE 2 FSO 1 V – PLUS 22 SUEZMAX 30 VLCC Leading pure-play tanker company Over 441,000 DWT 380k barrels with best-in-class operating platform 150,000 – 165,000 DWT Up to 330,000 DWT Only 2 in world fleet Stripped water capacity Strong balance sheet Committed to shareholder long-term value creation… 1MM barrels 3 MM barrels 2MM barrels 2.8 MM barrels Avg. age 10 years Avg. age 12 years Avg. age 6 years Avg. age 12 years … with significant direct return to shareholders Most liquid big tanker player in the world W ELL POSI TI ONED FOR STRONG CASH FLOW GENERATI ON Spot I ncom e - High Leverage to Upside Breakeven ( including debt service) : 3 1 Each USD 5 ,0 0 0 uplift (above break-even) in both VLCC and ~ USD 2 7 ,3 0 0 / day for VLCC – OpEx / day USD 8 ,1 6 5 Suezmax rates improves net revenue and EBITDA ~ USD 2 4 ,0 0 0 / day for Suezmax – OpEx / day USD 7 ,5 2 0 by USD 7 2 m illion Fixed I ncom e Returns to Shareholders 2 4 > USD 1 0 0 m illion of EBITDA (1) generated annually from Return 8 0 % of net income to shareholders (2) fixed income contracts (FSO + TC contracts) 1. Proportionate consolidation method 2. P&L definition excluding exceptional items such as gains on disposal of assets 6
Euronav – Exposed to Structural Growth in Demand for Oil I NCREMENTAL VLCC DEMAND FOR 1 .2 MBPD ADDI TI ONAL EXPORTS = 3 6 – 4 9 VLCC PER YEAR 1 .2 m bpd x 3 6 5 days = 4 4 0 m barrels 4 4 0 m barrels / 2 m capacity per VLCC = 2 2 0 cargoes 2 2 0 cargoes / 4 .5 annual journeys for VLCC ( 1 ) = 4 9 VLCCs Europe Russia Asia Pacific Middle East U.S. 22 – 24 VLCCs China 24 – 26 VLCCs 29 – 32 West Africa VLCCs W HAT W E DO LatAm / Caribs I m porter Demand Supply 48 – 50 48 – 50 VLCCs VLCCs Exporter 52 – 54 Supply VLCCs Demand 7
Euronav - Most Liquid Big Tanker Player LI QUI DI TY GI VES SHAREHOLDERS OPTI ONALI TY Euronext Brussels: 9 a.m. – 5. 30 p.m. (CET) More Trading Hours Ticker Symbol: EURN NYSE: 9.30 a.m. – 4 p.m. (EST) TOTAL TRADED VALUE OF EURONAV US AND BB SHARES ( SAME SHARE) - EURN US EQUI TY & EURN BB EQUI TY 100% Average daily volume shares = 90% 1 .3 8 m m shares per day 80% 70% Average daily volume USD = USD 2 0 m m per day 60% 50% Velocity = 3 3 4 % * 40% 30% 20% Free float = 8 5 % 10% * Calculation method = daily volume x trading days / free float 0% Feb 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 EURN US EURN BB Source Bloomberg based on Exchange volumes 8
Section 2 Current Industry Dynamics 5 9
Oil Tankers – Five Key Drivers Demand for Oil Supply of Oil Ton Miles Supply of Vessels Financing EXCESS BALANCED MANAGEABLE NEW BARRI ER ROBUST TO ENTRY • Trade lines established • Natural replacement • New regulations • Oil demand growing • Market share strategy from production in West cycle of 5% p.a. (Basel 2&3) restricting last 25 years • USA production shale: to consumption in East • Order book largely lending • Yearly average 1.1 very resilient & • Ton miles a dynamic industrial not • Distress in shipping mbpd responsive function in tankers speculative loans has reduced risk • IEA forecast 1.2m bpd • Iran increase of 900k appetite • Chinese imports • Order velocity EVERY year to 2020 bpd diversification substantially fallen since • Shipyards under • 1.2 m bpd oil demand Q3 2015 pressure to reform • USA crude exports to growth = for 30-40 increase ton miles VLCCs 1 2 3 4 5 10
Oil Price – Impact on Demand 1 Demand for Oil OI L PRI CE OUTLOOK ( I LLUSTRATI ON) 110 Lack of disruption/ market share game Iran and other supply remain high Dem and Destructive 100 Shale - as swing producer increases output 2 0 0 9 - 2 0 1 4 proved in this oil 90 price range that dem and w as destroyed 80 70 Neutral 60 Dem and Stim ulating 50 proven over time that the cheaper the commodity price the greater it 40 is used 30 Dem and Disruptive 20 Current structure of global markets mean energy/ capex/ sovereign wealth Capex cuts in E&P effects > consumer stimulus from 10 Potential coordinated cuts in production lower oil prices QE returns/ $ loss of value/ oil as financial asset 0 11
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