Company Presentation October 2017 | 1 1 | 2017 1 | 2017 - - PowerPoint PPT Presentation

1 | 2017 1 | 2017 2017 | 1

Company Presentation

October 2017

2 | 2017 2 | 2017 2017 | 2

• THIS PRESENTATION (THE “PRESENTATION”) HAS BEEN PRODUCED BY FLEX LNG LTD. ("FLEX LNG" OR "THE COMPANY”), SOLELY FOR PRESENTATION

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”, “PLANS”, “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.

Disclaimer

3 | 2017 3 | 2017 2017 | 3

05 05 02 02 03 03 01 01 04 04 05 02 03 01 04 05 02 03 01 04

About FLEX LNG LNG Shipping Market Outlook MEGI Propulsion FSRU Market Development Summary

Table of contents

4 | 2017 4 | 2017 2017 | 4 4 | 2017

01 01

4 | 2017

01

4 | 2017

01

About FLEX LNG

5 | 2017 5 | 2017 2017 | 5

FLEX LNG at a Glance

FLEX LNG: LNG Shipping and Regasification

FLEX ENTERPRISE: MEGI newbuilding under construction at DSME, South Korea

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

team to succeed in the FSRU market *MEGI = M-type, Electronically Controlled, Gas Injection

6 | 2017 6 | 2017 2017 | 6

2 1 1 1 6

1 2 3 4 5 6 Q1 2018 Q2 2018 Q3 2018 Q2 2019 Q3 2019 # Vessels

6

173,400 173,400 174,000 174,000

4

173,400 170,000 160,000 155,000

• 4 chartered-in TFDEs for 6 months firm period

(+6 months option) from March 2017; options declared for two vessels

• 155k-174k TFDE vessels
• Building market presence, operational experience,

and relationships with key LNG charterers

• 6 LNG MEGI vessels on order
• Under contruction at DSME and SHI in Korea
• Delivering Q1-Q3 2018, Q2-Q3 2019

173,400 173,400

Owned Fleet Deliveries Owed Fleet Chartered-in Vessels

FLEX LNGC Fleet Development

7 | 2017 7 | 2017 2017 | 7

FLEX LNG FSRU Strategy Growth of FSRU Regas Capacity by Country FLEX LNG is actively developing several opportunities to leverage its experience with the development and implementation

• f FSRU infrastructure
• Opportunities may include FSRU newbuildings for long-term

charters and/or conversions of existing vessels FLEX LNG has a highly experienced commercial and technical team to succeed in the FSRU market

• Jonathan Cook (founding partner at Excelerate Energy

and ex-Chief Marketing Officer for Cardiff LNG) was appointed CEO in March 2017

• Thomas Thorkildsen (formerly head of business development

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 13 of the existing 21 FSRU

projects worldwide (19 FSRUs including decommissioned projects)

FLEX LNG’s FSRU Ambitions

Escobar FSRU, Argentina

20 40 60 80 100 2017E 2018E 2019E mtpa India Chile Bangladesh Puerto Rico Uruguay Brazil Russia Pakistan Turkey Ghana

Source: Reuters

8 | 2017 8 | 2017 2017 | 8

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 Feb 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

9 | 2017 9 | 2017 2017 | 9

Functional Organizational Chart of FLEX LNG

A highly experienced team is in charge of LNG shipping

LNGC

Owned Fleet (FLEX LNG) Technical Mgt (Frontline Mgt) Newbuild Supervision (Seatankers) Crewing, Ship Mgt (Bernhard Schulte) Newbuild Design (Ship Construction Strategies) Chartering (FLEX LNG) Commercial Operations (V.Ships) Chartered Fleet (FLEX LNG) Chartering (FLEX LNG) Commercial Operations (V.Ships) Finance & Admin (FLEX LNG) Finance (FLEX LNG) Accounting (Frontline Mgt) Insurance (Frontline Mgt)

Providing technical management and support services

• 160 vessels including LNG,

tankers, dry bulk, container,

• ffshore supply
• Vessel construction, project

management, technical management, insurance, etc.

• HSE and Incident Response

Providing newbuild construction supervision services

• 47 vessels under construction

including LNG, tankers, dry bulk, containers, offshore Providing crewing and ship management services

• 600 ships under crewing

and/or technical management

• Dedicated LNG crew for FLEX

LNG vessels Frontline Management Ltd Seatankers Management Ltd Bernhard Schulte Shipmanagement

FLEX LNG Strategic Partners

FLEX LNG Shared Services Third Party

10 | 2017 10 | 2017 2017 | 10

CEO Jonathan Cook Business Development Thomas Thorkildsen SVP B.D. VP B.D. Kent Paulli Manager B.D. FSRU Design Alan Nierenberg Commercial Jonathan Cook

• Comm. Analyst

Sara Stahl

• Comm. Operator

Andrew Niven

• Comm. Operator

Marijan Glavan Operations Fleet Manager Mike O’Rourke Marine Super. Jason Ratcliffe Fleet Personnel Agnieszka Murawka Technical Olav Eikrem Technical Director Head of Newbuilding Björn Westerberg Project Manager JS Narayanan DSME Site Team (19) SHI Site Team (14) Fleet Manager Ola-Petter Dahlen

• Sr. Tech Super.

Calum Hickman Technical Officer Frank Shaw Technical Officer Adrienne Snowdon Technical Officer Vicky Gatherar Electrical Super. Finance/Admin/IR Oystein Kalleklev CFO SVP Finance James Clarke Accounting/Tax Tom Pryor (4)

• Corp. Secretary

Georgina Sousa (2) Insurance Chris Walker

FLEX LNG - Organizational Chart

11 | 2017 11 | 2017 2017 | 11

Jonathan Cook (54) – Chief Executive Officer

• Previously Chief Marketing Officer for Cardiff LNG, where he managed the LNG commercial activities
• Mr. Cook was founding partner of Excelerate Energy from 2003 onwards, Mr. Cook was part of the leadership team

that pioneered new frontiers in LNG shipping and transportation, by developing and marketing floating storage and regasification technologies to address the logistical challenges of importing and exporting LNG worldwide

• Mr. Cook has 30 years in the maritime and energy sectors with the last 16 years in the LNG sector

Øystein Kalleklev (38) - Chief Financial Officer

• Mr. Kalleklev joined FLEX LNG in October 2017, after serving as CFO of Knutsen NYK Offshore Tankers since

2013 and Chairman of the General Partner of the MLP KNOT Offshore Partners from 2015-2017

• Previous roles include CFO of industrial investment company Umoe Group, Managing Director of Umoe Invest,

Partner of investment bank Clarksons Platou and Business Consultant at Accenture

• Mr. Kalleklev holds a MSc in Business and Administration from Norwegian School of Economics and a Bachelor in

Business and Finance from Heriot-Watt University Thomas Thorkildsen (45) - SVP Business Development

• Previously Mr. Thorkildsen was the former head of business development at Höegh LNG. Furthermore, he was

responsible for various commercial roles such as commercial management, chartering etc.

• Mr. Thorkildsen has 20 years experience in the maritime industry with the last 14 years in LNG business

development

• Prior to joining Höegh LNG he was employed by the Norwegian Ro-Ro specialist Wilh. Wilhelmsen Group. Mr.

Thorkildsen holds an MSc from Cass Business School, London

Executive Management Team

12 | 2017 12 | 2017 2017 | 12

David McManus (64) – Chairman

• Mr. McManus has served on the Board since August 2011, and was elected as chairperson in September 2011
• Previously served as Executive Vice President for Pioneer Natural Resources. He is currently serving as non-executive director

for a number of listed companies

• Mr. McManus was previously Chairman of Cape plc an energy service company, which has been involved as a contractor in

more than 50% of the world's LNG facilities, including Sakhalin, RasGas, Damietta, Pluto and Arzew

Marius Hermansen (38) – Director

• Mr. Hermansen joined the Board in December 2015. Marius works for Frontline Management and is involved in S&P activities for

Frontline and all related companies

• Previously Mr. Hermansen worked for over 10 years at Fearnleys
• Mr. Hermansen was educated at the Norwegian School of Economics (NHH) in Bergen

Ola Lorentzon (68) – Director

• Mr. Lorentzon has been a Director since June 2017
• Ola served as Principal Executive Officer of Golden Ocean Group from 2010 to 2015 and held the role as Chief Executive Officer
• f Frontline Management from April 2000 to 2003
• Mr. Lorentzon is also a Director and Chairman of Golden Ocean Group, Director of Erik Thun AB and Dir. of Laurin Shipping AB

Georgina Souza (67) – Director

• Mrs. Sousa has been a Director of the Company since June 2017
• Mrs. Sousa has served as Secretary of Golden Ocean Group Limited since March 2007. Prior to joining Golden Ocean, Mrs.

Sousa held the role as Vice President Corporate Services of Consolidated Services, a Bermuda management company having joined that firm in 1993. From 1982 to 1993 she served as Senior Company Secretary at the law firm Cox & Wilkinson

Nikolai Grigoriev (43) – Director

• Mr. Grigoriev joined the Board in September 2017
• From 2008 to 2016 Nikolai served as Managing Director of Shipping and Logistics at Gazprom Marketing & Trading. Prior to

Gazprom, Mr. Grigoriev worked for BG Group in senior LNG shipping, commercial and corporate finance roles. Nikolai holds a B.Sc. in Navigation from Admiral Makarov State Maritime Academy in St. Petersburg, Russia and an MBA from INSEAD

Board of Directors

13 | 2017 13 | 2017 2017 | 13 13 | 2017

02 02

13 | 2017

02

13 | 2017

02

LNG Market Outlook

14 | 2017 14 | 2017 2017 | 14

Key Trends in the LNG Shipping Market

Natural Gas becoming fuel of choice Strong growth expected in the LNG market

• Over the next 5 years LNG annual supply is projected to rise by atleast 130 mt to ~418 mt

in 2021, coming from both new liquefaction plants and existing projects ramping up capacity

• IEA predicts global energy demand will increase by 30% between by 2040. Natural gas

represents 25% of the world’s energy mix

• LNG grows seven times faster than pipeline gas trade and is expected to account for 50%
• f globally traded gas in 2035 (up from 32% today)
• Both total consumption and the number of countries importing LNG are expected to

increase significantly over the next 10-15 years from 39 to 90 countries LNGC fleet development

• The LNG shipping market is expected to tighten significantly with an estimated decrease in

available tonnage of 57 vessel equivalents in the period until 2020 on conservative assumptions

• 90% of the LNGC newbuildings built by 2020 are committed on long term charters

Activity in LNG chartering market continues to grow

• While activity in the LNG chartering market continues to grow, the average charter durations

fall

• Short-term fixtures (>6 months) picked up in 2016 as charterers began covering term

requirements from new project start ups

• Higher spot rates for MEGI propulsion vessels (estimated to be approx. USD 16-18k per

day premium for MEGI vessels)

1 2 3

15 | 2017 15 | 2017 2017 | 15

242 240 238 240 246 268 297 337 373 404 418

• 100

200 300 400 500 600 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Mt LNG Middle East Atlantic Asia-Pacific

LNG Trade to Increase by Over 50% by 2021

Supply by Region, 2011-2021

Sources: Affinity, IEA

Demand by Region, 2011-2021

11% 56% Forecast Actual 242 239 238 239 247 267 297 337 373 404 418 100 200 300 400 500 600 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Mt LNG South America North America Europe Middle East Africa Asia-Pacific 56% 11% Forecast Actual

16 | 2017 16 | 2017 2017 | 16

Total export capacity additions of 115+ mtpa by 2020

14 6.5 38 10 17 6 6 6 5 2 4 2 1 20 40 60 80 100 120 140

• 10

20 30 40 50 2017 2018 2019 2020 mtpa mtpa

United States Australia Russia Malaysia Indonesia Equatorial Guinea Camaroon Cumlative Capacity

Source: Reuters

Supply Growth Driven by New Exports from U.S. and Australia New LNG Export Capacity Under Construction

17 | 2017 17 | 2017 2017 | 17

Source: Fearnley LNG

FSRU Projects: Existing, Planned and Proposed

5% 3% 7% 13% 16% 22% 0% 5% 10% 15% 20% 25%

• 50

100 150 200 250 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017

Routes (monthly avg.) Y-o-Y growth in tonne miles

New LNG Supply Set to Generate Incremental Tonne Miles Growth in Trade Routes and Tonne Miles

18 | 2017 18 | 2017 2017 | 18

• 20

40 60 80 100 120 140 160 US$ ‘000/day ST Assessed Spot Charter Rates TFDE Assessed Spot Charter Rates Term Fixtures: Existing Tonnage Term Fixtures: Newbuild Tonnage (60) (40) (20)

• 20

40 60 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 # Vsls

Period of low to zero structural availability Speculative orders get delivered Thin Orderbook

245 212 202 202 201 209 205 200 185

• 50

100 150 200 250 US$ million

Minimum 26-Month Construction Time

Newbuild Prices Structural Availability Spot & Term Rates Uncommitted NB Deliveries

1 3 1 1 1 2 1 1

• Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Earliest Yard Delivery Available Only 11 Uncommitted Newbuilds on the Orderbook Shipping market starts to tighten

183

NB Prices lowest since 2008

When Will LNG Shipping Market Be Short?

19 | 2017 19 | 2017 2017 | 19

Tightening LNG Shipping Market on the back of New Supply Overview of incremental LNGC vessel demand and supply through 2020

Source: Arctic Shipping

• The LNGC market is expected to tighten significantly with an estimated decrease in available tonnage of 56 vessel

equivalents in the period until 2020 on conservative assumptions

• There is substantial upside to these estimates as the current low ordering activity makes it highly uncertain that 10/35

newbuild vessels will be ordered with 2019/20 delivery

107 23 49 179 35 214 16 101 5 35 57

50 100 150 200 250 United States Australia Rest of World Vessel requirement Scrapping Demand after renewal Delivered 2017 to date Orderbook Yard capacity '19 Yard capacity '20 Net decrease in available tonnage # vessels 63m tons x 1.7vsl/ton 31m tons x 0.75vsl/ton 38m tons x 1.3vsl/ton

20 | 2017 20 | 2017 2017 | 20

Right Ships at the Right Time Only 11 open LNGCs out of 101 through 2021

Source: FLEX LNG # Vessels

Most of the vessels on the LNGC orderbook are committed to long term charters

• Currently, there are 101 LNGC newbuildings under construction
• 90% of the LNGC newbuildings built by 2020 are committed for

long term charters FLEX LNG owns 6 out of the 11 open LNG newbuildings, four of which delivers in 2018 and two in 2019

• Limited ordering – only 13 LNGC newbuildings contracted over

the last 18 months

• Ramp up of LNG global supply is expected to drive strong

demand for term charters of modern tonnage

• Incremental LNGC demand 30-50 vessels by 2020
• Most of the recent long-term charters have been MEGI or X-DF

vessels

28 41 19 2 1 5 5

5 10 15 20 25 30 35 40 45 50

2017 2018 2019 2020

Long Term Employment Uncommitted

21 | 2017 21 | 2017 2017 | 21

The LNG market is growing rapidly and 30-50 additional vessels are expected to be required by 2020

• New export projects will add 25-30 mtpa of LNG per year over the

coming four years

• The current orderbook is insufficient to meet this demand for

LNGC FLEX LNG is well positioned with six high spec MEGI newbuildings delivering in 2018-2019 to provide customers with superior transportation efficiency

• Further newbuildings will be considered as the market evolves
• The chartered-in vessels allows FLEX LNG to build a market

presence and establish operational experience ahead of its

• wned fleet
• Building relationships with Charterers creates opportunities for the

forthcoming newbuildings

FLEX LNG Shipping Strategic Summary

First U.S. LNG export project going live: Cheniere’s Sabine Pass

Qatar's LNG production to boost from 77 to 100 mtpa within 5-7 years

22 | 2017 22 | 2017 2017 | 22 22 | 2017

03 03

22 | 2017

03

22 | 2017

03

MEGI Propulsion

23 | 2017 23 | 2017 2017 | 23

41% 8% 5% 42% 2% 39% 2% 59% 26% 74%

2010 2015 2022

• 10

20 30 40 50 '72 '73 '74 '75 '76 '77 '78 '79 '80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

ST DFDE/TFDE Other XD-F MEGI

LNGC Engine Evolution Phasing out Steam Vessels: Technology Shift Leading to Increased Efficiency and Carrying Capacity

Source: FLEX LNG

Trend Towards Modern Vessels is Visible in the Orderbook

LNGC Fleet and Orderbook by Propulsion

24 | 2017 24 | 2017 2017 | 24

A Three Tier Market has Emerged that Favors Modern LNGCs LNG brokers began publishing assessed two-stroke (MEGI and X-DF) spot charter rates in Jan 2017

Sources: Arctic Shipping, Affinity, Clarkson Assumptions: Sabine Pass – Tokyo Bay Round-Trip, HFO price $330/ton, Estimated boil-off savings based on 0.12% for TFDE vs 0.09% for MEGI

USD/day

Comparison of LNG Ship Types on UTC Basis* MEGI Equivalent Spot Charter Rates(1)

COMPANY SNAPSHOT

Three Tier Broker Assessments

0.2 0.4 0.6 0.8 1 ST 138k TFDE 160k X-DF 174k MEGI 174k $ / mmbtu

45,000 61,910 7 530 1,212 2,000 3,938

10,000 20,000 30,000 40,000 50,000 60,000 70,000 DFDE 160k cbm spot rate Fuel savings Boil-off savings Reduced OPEX Size adjustment (+9%) MEGI equivalent spot rate USD/day

• 10,000

20,000 30,000 40,000 50,000 60,000 70,000 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17

ST TFDE MEGI/X-DF Assessment

There are currently ten MEGIs on the water (all under term TC contracts)

25 | 2017 25 | 2017 2017 | 25

U.S. Gulf - Far East via Panama 9,279 nm U.S. Gulf - Northwest Europe 4,961 nm Arabian Gulf – East Asia 5,760 nm Arabian Gulf - Northwest Europe via Suez 6,377 nm

0.50 0.30 0.18 0.26 0.16 0.10 0.34 0.20 0.13 0.30 0.18 0.11 0.19 0.17 0.15 0.18 0.16 0.14 0.19 0.16 0.14 0.19 0.16 0.14 1.09 0.95 0.83 0.58 0.52 0.45 0.74 0.66 0.58 0.67 0.59 0.52 0.02 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.21 0.20 0.20 0.21 0.20 0.19

0.0 0.5 1.0 1.5 2.0 2.5

145k ST 160k TFDE 180k MEGI / X-DF 145k ST 160k TFDE 180k MEGI / X-DF 145k ST 160k TFDE 180k MEGI / X-DF 145k ST 160k TFDE 180k MEGI / X-DF U.S. Gulf - Far East via Panama U.S. Gulf - NW Europe Arabian Gulf - Northwest Europe via Suez Arabian Gulf - East Asia

Boil Off Port Charges Charter Hire Fuel Canal Fees US$ / mmbtu

2.01 1.63 1.37 1.23 0.85 0.70 1.49 1.17 1.05 1.04 0.79 0.95

N.B. US$70,000 per day applied as charter hire across vessel classes, LNG boil-off priced at US$5.50 / mmbtu

UTC Breakdown by Trade Route

Source: Poten & Partners

Unit Transportation Cost (UTC) Analysis - Critical Trade Route Summary Critical Trade Routes Summary

26 | 2017 26 | 2017 2017 | 26

0.10 0.17 0.26 0.15 0.16 0.18 0.49 0.40 0.28

• 0.10

0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 180k MEGI Newbuilding 5 Yr Old 160k TFDE 10 Yr Old 145k ST Dominant Vessel Classes

Fuel Charter Hire Port Charges Boil Off

Sourc rce: e: Poten & Partners

…However MEGI Vessels Offer a Substantial Competitive Advantage

UTC Equivalent Breakdown of Charter Rates for Dominant Vessel Technologies Over 7 Year Term 58,400 35,800 18,500 16,600 18,700 15,500

• 10,000

20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 180k MEGI Newbuilding 5 Yr Old 160k TFDE 10 Yr Old 145k ST Dominant Vessel Classes

• Est. Average Opex

Rate

• Est. Average Capex

Rate

Source: Poten & Partners Gross Charter Rate (US$ ‘000 / day) Operating UTC (US$ / mmbtu)

0.74 0.74 0.74 54,500 75,000 34,000

$

69,300 51,100

$ UTC Equivalent Charter Rate IRR Equivalent Charter Rate

Operating UTCs Based on Balancing Charter Rates - Round Trip U.S. – NW Europe Basis

27 | 2017 27 | 2017 2017 | 27 27 | 2017

04 04

27 | 2017

04

27 | 2017

04

FSRU Market Development

28 | 2017 28 | 2017 2017 | 28

Significantly Reduced Construction Time

• Both Egyptian FSRUs were implemented in 5 months

from FID to commissioning

• Construction time for newbuilding ~ 28 – 30 months

Reduced Cost

• About half the investment CAPEX of a traditional onshore terminal

Flexibility

• FSRUs are usually chartered for a fixed period
• Most FSRUs can be traded as LNG Carriers
• Seasonal demand peaks

Reduced Footprint

• Near shore or offshore locations
• Does not occupy large and valuable coastal real estate

Become a local LNG Hub

• Coastal break bulk distribution
• Bunkering services

What are the Key Benefits of an FSRU? Onshore vs. FSRU: Cost Comparison

Source: Thyssenkrupp

USD millions 3 mtpa, 180k m3 storage Component Onshore Terminal FSRU (newbuilding) Jetty including piping 80 80 Unloading lines 100 N/A Storage Tanks (180k cbm) 180 in FSRU FSRU vessel N/A 250 Process plant 100 in FSRU Utilities 60 in FSRU Onshore interphase and infrastructure N/A 30 CAPEX 520 390 Contingency 30% onshore, 10% FSRU 156 36 Owners Cost 74 54 Total CAPEX 750 480

29 | 2017 29 | 2017 2017 | 29

The FSRU market is poised to grow substantially over the next five years

• Growth of LNG supply, low LNG prices, energy deficits, security
• f supply issues and fuel switching due to mandated emissions

reductions are prime drivers

• NB FSRU are flexible, efficient and cost competitive compared

to conversions (with current yard prices)

• Based on the current supply-demand outlook, there is potential

for 12-15 new FSRU projects contracted by 2021 FLEX LNG has a highly experienced commercial and technical team to succeed in the FSRU market

• FLEX LNG is actively pursuing FSRU opportunities and plan to

establish a presence in the FSRU market

• FLEX LNG will consider placing orders for NB FSRU to meet

the demand of fast track projects

• FSRU newbuildings can be delivered in 27-30 months

FLEX LNG FSRU newbuildings will have state of the art design incorporating latest technologies and lessons learned

• Newbuilding prices of FSRUs have fallen and compete

favourably with conversion economics LNG Imports: FSRUs vs. Land-Based Terminals

FSRU Gaining Market Share Over Traditional Import Terminals

Sources: Reuters, Affinity Shipping

Market Share: FSRU vs. Onshore Terminals

10% 10% 10% 10% 13% 14% 14% 16% 17% 19% 20% (100) 100 300 500 700 900 1,100 2010 '11 '12 '13 '14 '15 '16 '17 (E) '18 (E) '19 (E) '20 (E)

Mtpa

Onshore Regas Capacity Floating Regas Capacity

30 | 2017 30 | 2017 2017 | 30

Up to 34 FSRU Projects Expected Operational by 2020 There are 21 active FSRU projects globally and 13 awarded projects (expected to begin operations in the next 3 years)

Sources: FLEX LNG, Affinity Shipping

Awarded FRSU projects: 2017: Russia, Pakistan 2018: Pakistan (2), Bangladesh, Ghana, Uruguay, Puerto Rico 2019: Chile, Turkey, India 2020: Brazil FLEX LNG team has been involved in 13 of the 21 existing FSRU projects globally

Existing Awarded

Existing & Active: 21 Awarded: 13 Proposed: 50+

31 | 2017 31 | 2017 2017 | 31

FLEX LNG – NextDecade Alliance About NextDecade FLEX LNG and NextDecade signed an HoA in December 2016 to create a full value chain solution for LNG to international customers

• FLEX LNG will provide FSRU and dockside solutions to assist

LNG importing customers In July 2017, NextDecade signed a MoU with the Port of Cork for a new FSRU and associated LNG terminal infrastructure

• As Owners of the FSRU, FLEX LNG would charter out the unit

under a long-term contract FLEX LNG will provide FSRU and dockside solutions to assist LNG importing customers NextDecade is a leading US-based development and managment company of onshore and floating LNG projects

• NextDecade’s key project is the Rio Grande LNG export project

under development in Brownsville, Texas

• The Rio Grande LNG export project is expected to have a

capacity of six liquefaction trains, each with a nominal LNG capacity of 4.5 mtpa, yielding a total capacity of 27 mtpa

• FERC approval application filed in 2015, FID targeted for Q2 2018

with first cargo expected in 2022

Strategic Partnership with NextDecade

Next Decade’s proposed Rio Grande liquefaction terminal, Brownsville, Texas Port of Cork, Ireland

32 | 2017 32 | 2017 2017 | 32 32 | 2017

05 05

32 | 2017

05

32 | 2017

05

Summary

33 | 2017 33 | 2017 2017 | 33

LNG Carriers FSRUs

FLEX LNG has a modern and efficient fleet of LNGCs available from 2018 offering Charterers significant fuel savings and reduced boil-off rate over older vessels

• FLEX LNG has established proven operational capabilities and developed relationships with

key Charterers in the LNG market by chartering in and trading third party LNGCs Majority shareholder Geveran Trading has a long history in the LNG industry and is committed to building FLEX LNG into a major provider of LNGCs and FSRUs

• As part of the Fredriksen Group, FLEX LNG benefits from a wide range of commercial and

technical expertise, strong financial backing and access to competitive financing The FSRU market is forecasted to grow substantially over the coming years, driven by growth in LNG supply, low LNG prices and fuel switching driven by emission cuts

• Based on the current LNG supply-demand outlook, there is potential for 12-15 new FSRU

projects contracted by 2021 The FLEX LNG team has significant experience in developing and operating FSRU projects globally

• FLEX LNG is actively pursuing opportunities in the FSRU market and is engaged in

discussions with multiple counterparties across various projects

Summary The LNG market could experience significant shortage of tonnage from 2018

34 | 2017 34 | 2017 2017 | 34

Thank You

October 2017