[PPT] - DNB Oil, Offshore & Shipping C onference March 2018 Agenda PowerPoint Presentation

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DNB Oil, Offshore & Shipping Conference March 2018

SLIDE 2

Agenda

Odfjell at a glance
Our recent history
Positioning for the future
Market outlook

2

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Established in 1914 with headquarters in Bergen, Norway
Listed on Oslo stock exchange
We are a leading operator of chemical tankers operating 80

vessels, which are among the most sophisticated tankers in the world

About 50-60% contract coverage
We own (j/v) and operate 8 tank terminals worldwide
After a period of crisis, the company is emerging from a

turn-around with a stronger balance sheet and a significantly more competitive platform

3

Odfjell has more than 100 years experience in the chemical tanker industry, and is today one of the leading companies in our industry

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4

Our vessels are sophisticated and built for serving very complex and demanding trades, with multiple parcels of highly specialized chemicals

Basic chemical tanker Sophisticated super-segregator

Standardized and cost efficient Scale effect on basic equipment across similar ships Experienced crew with cost focus Tailor-made and responsive Experienced crew with cost focus, comprehensive technical competencies and training Complex and flexible equipment

1W 1P 2W 2P 3W 3P 4W 4P 5W 5P 6W 6P 13WP 13WS 8WP 8WS

7WS 7WS 6WP 6WS

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Agenda

Odfjell at a glance
Our recent history
Positioning for the future
Market outlook

5

SLIDE 6

6

Odfjell is emerging from a turn around, and is today stronger and leaner, with a robust balance sheet

In 2013/2014 Odfjell was in a «perfect storm» with erosion of

market shares, financial losses, a weakening balance sheet and a significant cost problem

In 2011 our largest terminal faced a shut down, which for a

period has required a significant part of Odfjell´s capital and attention

The core of the business continued to work, but it was clear to

all stakeholders that we had to change course to regain strength

Since 2015 the company has been undergoing a significant

transition – Material cost cuts of +USD 100m (OPEX, fuel cost and G&A) – Rotterdam terminal under control – We solved our tonnage renewal and growth ambitions at the bottom of the cycle, in a very capital efficient way – Introduction of top to bottom business intelligence system

Source: Odfjell

Odfjell Terminals (Rotterdam), 100%, EBITDA, EUR millions Opex per day, USD per day

12 000 10 000 8 000 6 000 4 000 2 000 2010 2009 2008 2007

25%

2017 2016 2015 2014 2013 2012 2011 Crew cost Non-crew OPEX 2015-2017 average 10 10

8
60
49
46

26 35 41 35 27

80
60
40
20

20 40 60 2017 2016 2015 2014 2008 2007 2013 2012 2011 2010 2009 2007-2014 average

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..and we are seeing real and measurable effects from our operational excellence initiatives

Project Moneyball status, End Q4 2017

Source: Odfjell

23% improvement in ETA performance (days) Port efficiency is 7% better than historic benchmark and 1% better than target

94%

Historic benchmark (Baseline) 100%

93%

7%

Actual 2016-2017 Target 2016-2017

Average delays Odfjell port efficiency index

7

4.4

23%

Q4-2017 Q1-2017 5.7

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8

EBITDA per division, USD million

Source: Odfjell

242 191 73 59 61 66 147 188 125 74 95 109 110 96 27 98 97 40 47 38 22 +73% 2017 166 2016 238 2015 2009 182 2008 286 2007 191 2014 96 2013 117 316 2012 93 2011 157 2010 169 LPG/Ethylene Tank terminals Chemical tankers

Our EBITDA performance improved, despite the challenging markets, which means we are today significantly more competitive

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2017 marks a year where we continued to make good progress as a company and Odfjell is now well positioned for the future

9

Growth

Tonnage renewal / fleet growth
Take part in consolidation
The “100 vessel” target reached
CTG and Sinochem concluded

High quality service

Safety, predictability and reliability
Successful efficiency programmes

and improved safety performance Operational excellence

Tankers: OPEX + SG&A
Terminals: implementing operational excellence project
Reduced by USD 8 mill in 2017
Being implemented

Financial strength

Further improve balance sheet to be able to act quickly as opportunities may arise
Cost of capital
Equity Ratio and cash improved
Ongoing process

Terminals – back to profitability

Implementation of the «value creation program»
Ongoing process

    

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Agenda

Odfjell at a glance
Our recent history
Positioning for the future
Market outlook

10

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Our balance sheet is robust and we have a strong liquidity position, which we believe will translate into a lower cost of capital and ultimately to appreciation by the equity markets

11

2017 3.6x 2016 4.0x 2015 7.6x 2014 16.1x 2013 25.4x

Net interest bearing debt / EBITDA

2017 41.0% 2016 38.0% 2015 33.0% 2014 31.0% 2013 37.0%

Equity ratio

207 165 126 105 162 2017 2016 2015 2014 2013

Odfjell SE cash position Return on capital employed

8% 8% 2%

1%
3%

2017 2016 2015 2014 2013 31 31 29 28 28 41 2014 2013 2016 Today 2017 2015

Share price development (NOK per share)*

Key ratios has improved since 2015
Equity instalments on newbuilding programme

limited to USD 24 mill

We got liquidity and a balance sheet to act if

attractive opportunities arises

Dividends have been reinstated from 2016
Lowering our cost of capital is an ongoing

process.

Comments

*

* Year-end closing prices

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12

The main reason for the strengthened balance sheet is the sale of two non-

perated terminals in Oman (2016) and Singapore (2017) at attractive

valuations

Odfjell announced a strategy of divesting terminals where we did not have operational control
In late 2016 we divested our minority stake in the Oman terminal. Generated an equity IRR of 22%
In late 2017 we divested our minority stake in the Singapore terminal. Generated an equity IRR of 23%
Assets were sold at attractive multiples and contributed with material cash to Odfjell SE
Our focus is now turned to terminals were we have operational control in key hubs like Houston, Rotterdam and growth initiatives in China

Source: Odfjell

Oman transaction Singapore transaction

Equity gain per share (NOK) Equity IRR (%) 14.0 4.1 Equity gain (USD mill) Cash gain (USD mill) 22.0 40.0 EV/EBITDA multiple (x) 12.0 23.0 Cash gain (USD mill) Equity IRR (%) 153.0 EV/EBITDA multiple (x) 18.0 136.0 15.6 Equity gain (USD mill) Equity gain per share (NOK)

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Our long-term ambition level and targets

Zero incidents

Safety performance

Target an operated fleet of about 100 vessels, to benefit from scale advantages

Tankers scale

Average revenue growth of 10% per year (over time)

Revenue / Top-line

Industry leading EBITDA margin

Profitability

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Delivering safely, on time, on spec and being competitively priced

Customer service

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Our investments and growth initiatives on tankers have been concluded at a very low point on the cycle – even at historic earnings, the investments are attractive

Based on 2008 asset

prices and 10 year median TCE rates as quoted by brokers

Super segregator asset

values based on quotes from shipyards in 2008 and TCE based on internal calculations ROIC based on 2018 asset values and 2018-2027 EBIT assumed in line with 2008-2017 ROIC based on 2008 asset values and 2008-2017 EBIT

Source: Clarksons Platou, Odfjell

15.0% 10.0% 5.0% 0.0%

5.0%
0.4%

Panamax Bulker

0.2%

Capesize

0.2%

LNG Carrier

0.1%

VLCC 0.0% Handysize Tanker 0.8% Suezmax 2.1% VLGC 2.5% Super segregators 2.7% MR 15.0% 10.0% 5.0% 0.0%

5.0%

1.9% LNG carrier

0.1%

MR 0.3% Handysize Tanker Panamax Bulker 1.9% VLCC 2.2% Capesize 2.4% VLGC 3.5% Suezmax 5.2% Super segregators 11.2%

Based on 2018 asset

prices and last 10 year median TCE rates as quoted by brokers

Super segregator asset

values based on Odfjell’s growth/renewal initiatives

Super segregators will be

more than 65% of our book values by 2020

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Agenda

Odfjell at a glance
Our recent history
Positioning for the future
Market outlook

15

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Degree of Chinese self-sufficiency could impact this picture in both directions Potential downside from CPP markets (swing tonnage)

We believe that demand growth in chemical tankers will outpace supply growth towards 2020 and that tonne-mile growth will add further upside to demand.

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The market has gone through a period with high fleet growth, but we expect more rational growth towards 2020

12

Deep-sea fleet development, DWT mill. 72 62 92 89 94 66 16 81 59 68 11 88 68 54 12 13 17 74 75 77 15 76 16 13 53 2009 2008 2014 2011 9 2010 47 2012 2018E 2020E 2013 51 2017 50 2019E 57 10 2015 56 72 2016 41 12 61 10 12 64 Core fleet Swing/other fleet

+6%

p.a.

+2%

p.a. ce: Odfjell

Y

wth

+14% +1% +7% +5% +2% +4% +5% +5% +8% +8% +2% +3%

+2%

p.a.

We expect volumes to grow by 4% p.a. primarily driven by organic chemicals… …while supply growth is reduced to 2% p.a. following a period of rapid growth

+4%

p.a.

+ tonne-mile effect Core fleet +3.6% p.a

Source: Odfjell

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Key take-aways

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Odfjell SE is emerging from a crisis and is now standing on a solid

platform for the future

We are leaner, smarter and more competitive
We have completed our fleet renewal and tonnage ambitions, while

strengthening our balance sheet and cash position

We have renewed and grown our fleet at what appears to be the bottom
f the market in a capital efficient way
We are implementing a turnaround plan for our terminal activities
We believe chemical tanker market is fundamentally healthy and we

expect that 2018 will be the turning point for our markets

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Thank you

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Appendix

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Odfjell SE Profit & Loss

* figures based on proportionate method ** Odfjell is in the process of divesting its two LPG carriers

USD mill Tankers Terminals Gas** Total* 2016 2017 2016 2017 2016 2017 2016 2017 Gross revenue 832.4 842.5 122.7 110.1 12.3 8.4 967.2 961.1 Voyage expenses (275.6) (319.2)

(5.9)

(3.7) (281.5) (322.9) TC expenses (164.1) (194.9)

(0.5)
(164.6)

(194.9) Opex (133.1) (135.5) (53.7) (51.9) (2.2) (2.2) (189.1) (189.5) G&A (71.8) (68.0) (22.5) (19.9) (0.3) (0.2) (94.4) (88.1) EBITDA 187.7 125.0 46.5 38.3 3.3 2.3 237.6 165.7 Depreciation (89.6) (89.0) (34.1) (34.4) (1.4) (1.3) (125.1) (124.7) Impairment (12.7) (21.9) (3.8) (20.7) (8.9)

(24.5)

(42.6) Capital gain/loss 12.7 (0.1) 44.0 135.7

(0.4)

56.7 135.5 EBIT 98.1 14.0 52.6 119.0 (7.0) (0.6) 144.6 134.0 Net finance (22.2) (50.6) (14.7) (6.3) (0.6) (0.5) (38.3) (58.3) Taxes (7.1) (2.3) 0.7 9.3

(6.4)

(7.0) Net result 68.8 (38.9) 38.7 121.9 (7.6) 0.1 100.0 82.7 EPS 0.86 (0.49) 0.49 1.55 (0.10) 0.00 1.25 1.05

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Odfjell SE Balance sheet

* figures based on equity method

Equity and liabilities, USD mill FY 16 FY 17 Paid in equity 199.0 199.0 Other equity 519.8 609.0 Total equity 718.8 808.0 Non-current liabilities 11.3 9.6 Derivative financial instruments 29.4

Non-current interest bearing debt

837.6 845.3 Total non-current liabilities 878.3 854.9 Current portion of interest bearing debt 204.2 238.5 Current interest bearing debt

Derivative financial instruments

12.9 23.8 Current liabilities 68.5 66.8 Total current liabilities 285.6 329.1 Total equity and liabilities 1 882.7 1 992.2 Assets, USD mill FY 16 FY 17 Ships and newbuilding contracts 1 227.8 1 293.5 Other non-current assets 11.9 8.4 Investments in associates and JVs 337.6 349.5 Other Non current receivables 12.0 15.3 Total non-current assets 1 589.3 1 666.7 Current receivables 81.1 83.4 Bunkers and other inventories 17.9 20.9 Derivative financial instruments 1.8

Available for sale investments

14.5

Loan to associates and JVs

13.6 14.8 Cash and cash equivalent 164.5 206.6 Total current assets 293.4 325.7 Total assets 1 882.7 1 992.2

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Odfjell SE Debt overview

1 600 1 400 1 200 1 000 800 600 400 200

200
400

USDm 2020 2019 2018 2017 Ending balance Planned vessel financing Repayment

Debt portfolio, USD mill Debt Repayments, USD mill

20 40 60 80 100 120 140 160 180 200 220 240 260 2021 2020 2019 2018 NOK Bond 16/19 NOK Bond 12/18 NOK Bond 17/21 NOK Bond 17/22 Secured loans Balloon Leasing Planned vessel financing

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Financials

Capital expenditure programme – 31.12.2017

USD mill 2018 2019 2020 2021 2022 Chemical Tanker newbuildings Hudong 4 x 49,000 dwt (USD 60 mill) 24 144 42

Hudong 2 x 38,000 dwt (USD 58 mill)

6 12 87

AVIC 3 x 25,000 dwt (USD 40 mill)

108

Total

138 156 129

Instalment structure – Newbuildings

Debt instalment 126 144 130

Equity instalment

12 12

Tank Terminals, (Odfjell share)

Planned capex 34 19 17 13

We have secured financing for all chemical tanker newbuildings have secured and remaining equity

instalments are limited to USD 24 mill

Other chemical tanker investments for the next three years amounts to about USD 33 million, mainly

related to installation of ballast water treatment systems.

We expect the average annual docking capitalization to be about USD 15 million in the years ahead.

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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: