Euronav Company presentation May 2017 1 Forward Looking Statements - - PowerPoint PPT Presentation

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Euronav – Company presentation

May 2017

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

• ther 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

• therwise, 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

Agenda

3

Introduction to Euronav Financials Industry and Market Overview Supplementary slides I II III IV

Key credit highlights

4

Largest publicly listed tanker company in the world Strong financial position Mix of spot and fixed rate charters Long-term positive tanker market fundamentals Strong and Reputable Platform

1 2 3 4 5

• High quality fleet of Very Large Crude Carriers (“VLCCs”) and Suezmax tankers,

in addition to two 50% owned FSOs on long-term contracts

• Best-in class operations with a fully integrated operating platform
• Value adjusted equity ratio of 64% and liquidity of USD~620m (Q1-17)
• Conservative financial strategy with target to keep normalized leverage at or

below 50% and a minimum 2 year operational liquidity-runway

• Listed on NYSE with USD 1.29bn market cap and strong access to capital

markets

• Tanker fleet commercially operated through the leading VLCC Chartering and

Suezmax Chartering platforms

• USD 155m of contracted fixed rate EBITDA in 2016
• Recently awarded new 5 year contracts for the two FSOs (Qatar Petroleum and

Total) and four Suezmax 7 year time charter contracts (Valero Energy)

• Softer market outlook short-term due to high number of newbuildings coming

to market in 2017

• Stronger long-term market fundamentals with robust and steady increase in

demand for oil, increasing tanker ton-mile, lower newbuild ordering and financing becoming more restrictive

• Management and Board of Directors with strong experience in shipping and

through the shipping cycles

• Corporate governance – important factor for Euronav
• Strong historical track record

2

5

Introduction to Euronav

INTRODUCTION

6

1. Adjusted EBITDA (a non-IFRS measure) represents operating earnings including the share of EBITDA of equity accounted investees before interest expense, income taxes and depreciation expense attributable to Euronav 2. Only 4 V-Plus vessels in world fleet

• Leading provider of transportation and storage of

crude oil

• The largest listed tanker ship owner in the world with

a fleet of modern high quality tankers1

• Best-in-class fully-integrated operating platform
• Strong relationships to oil majors and leading energy

companies

• Conservative financing strategy with a strong balance

sheet and high liquidity

• Head quartered in Antwerp with ca 180 employees

shore side and globally 3,000 seafarers

• Listed on NYSE (TICKER: EURN) with a market

capitalization of USD ~1.29 billion (as of 9 May 2017)

879 921 504 648 239 2016 2015 2014 1,235

• Adj. EBITDA

Net interest bearing debt

FINANCIAL SUMMARY (USDm) 3 MM barrels 2.8 MM barrels

31 VLCC Up to 330,000 DWT

2MM barrels 1MM barrels

19 SUEZMAX (+4 NBs) 150,000 – 165,000 DWT 1 V – PLUS (2) Over 441,000 DWT 2 FSO Stripped water capacity 380k barrels Only 4 in world fleet

CURRENT FLEET – TOTAL 57 VESSELS – 14.3 MM DWT

Euronav is the largest tanker company in the world

Purchased 19 VLCCs IPO NYSE Purchased 2 VLCCs 4 Suezmax on 7 year TCE (2 in 2016 + 2 in 2017)

(1)

28 years of tanker history

7

1989 2016 1995 1997 2000 2004 2005-2014 2008-2010 2014 2015

Started doing business under the name “Euronav” as a subsidiary of CNN Euronav Luxembourg created as a JV between CNN and CMB Initiated focus on larger sized and modern vessels: 6 VLCCs (double hull) ordered TANKERS INTERNATIONAL Pool founded Lists on Euronext Brussels Acquisition of 4 ULCCs in JV March 2005 Acquired 4 VLCCs March 2005 Acquisition of 16 Suezmaxes and 2 Aframaxes from Tanklog (Livanos Group) Added 5 Suezmaxes and 3 VLCCs newbuilds TI Asia and TI Africa conversion into FSO Asia and FSO Africa July 2014 Acquisition of 4 VLCCs January 2014 Acquisition of 15 VLCCs from Maersk August 2015 Acquisition of 4 VLCCs January 2015 IPO on the NYSE October 2016 Acquisition of 2 Suezmaxes August 2016 Acquisition of 2 VLCCs

Fleet managed in pool structure provides benefits

58 36 18 (+4 NB)

8

SUEZMAX CHARTERING

12 13 12

VLCC POOL SUEZMAX POOL

Other VLCC Tanker Pools (Ships on the Water)

Source: Company reports 17 February 2017

Heidmar – VLCC Seawolf

13

Navig8 – VL8

37

China VLCC

32

37 Size is critical to improve market knowledge and achieve the best commercial terms

Main Tanker Clients

Actively managed high quality fleet

9

EMPLOYMENT PER VESSEL HIGH QUALITY SHIPYARDS VESSEL ACQUISITION AND SALE TRACK RECORD Euronav employs its fleet based on assessment of where it can create the most value

20 40 60 80 100 120 140 160 180 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2000 Suezmax 5 Year Old Secondhand Prices VLCC 5 Year Old Secondhand Prices

+4 +4 +4 +16 +1 +1 +1 +1 +1 +3 +15

Vessel acquisition Profitable vessel sale Loss-making vessel sale

+2 +4 +2 +1

Purchased 15 VLCCs from Maersk for $980M Purchased of 4 VLCCs ($477.5M) & 16 Suezmax + 2 Aframax from Tanklog ( $1,083M)

Korea Japan China Fleet of 51 vessels

• including 4 TBD
• excluding 2 FSOs
• excluding 4 S&L

1 6 16 17 4 3 4 Storage 1 Service Contract 2 Time Charter 11 Spot 20 TI Pool 23

Euronav focused on prudent consolidation…

10

FRAGMENTED VLCC MARKET OPEN FOR CONSOLIDATION Value Adjusted Equity ratio* (%) DYNAMICS IN THE SHIPPING INDUSTRY

• Crude tanker business slowly industrialising
• Low rate environment enables market consolidation
• Euronav plays a key role in the consolidation of the

tanker market

• Tanker companies have 3 main counterparties – Oil

majors, Refinery majors and Oil traders

• All 3 have excellent credit risk and exposure
• However freight rates likely to retain some volatility as

each cargo carriage price is set on an auction basis

• Strong ship owners utilize downturns pro actively

TANKER MARKET CONSOLIDATION

6 5 16 14 32 11 10 10 22 21 25 34 31 30 39 46 49 22 22 24 26 27

37 32 22 42 46

17 17 31 31 32

124 116 142 206 241

0% 5% 10% 15% 20% 25% 50 100 150 200 250 300 2012 2013 2014 2015 2016

% of VLCC/Suezmax fleet Number of VLCC/Suezmax

DHT* TNK GNRT EURN NAT FRO BAHRI % of fleet

Source Clarkson’s – Total 715 VLCC ships @ 3 May 2017

Green indicates Captive or Sovereign fleet Blue indicates fleet in stock listed companies Small owners are data deficient (275 VLCCs)

Differentiate spot players vs industrial players

24 Angelicoussis Group 31 MOL 31 Euronav NV 32 China COSCO 33 Bahri 37 NIOC 40 China Merchants 41 1 Ship Owner 29 2 Ship Owner 34 3 Ship Owner 27 4-10 Ship Owner 185 10-15 Ship Owner 130 Nippon Yusen 19 Gener8 Maritime DHT 25 65 65

Top 10 owners control 43%

• f global

VLCC fleet

* Post BW acquisition

…achieved with a strategy of strong capital allocation

• Tanker business is cyclical, towards which the only

cure is to have a strong balance sheet and liquidity pool

• Euronav currently has a very strong liquidity pool

that creates a three year runway through the cycles

• Policy to retain at least two years of operational

liquidity at all times and maintain strong banking relationships

11

LIQUIDITY END MARCH 2017 (USDm)

620 144 60 416 Total liquidity pool Undrawn secured revolving facility Undrawn unsecured credit line Cash and cash equiv.

2

Since 2014

25 VESSELS ACQUISITION HIGH DIVIDEND YIELD

MAINTAIN STRONG BALANCE SHEET ≈ 50% (Leverage)

+

• 1. KEEP STRONG BALANCE SHEET
• 2. RIGHT MIX OF EQUITY & DEBT
• 3. KEEP OR LOWER AVERAGE BREAK-EVEN

1

ACQUISITION CRITERIAS

Leverage

As evidenced by

STRONG BALANCE SHEET HEDGE TOWARDS CYLICALITY CAPITAL ALLOCATION KEY TO GROWTH STRATEGY

Highly experienced management

12 Patrick Rodgers - CEO Hugo De Stoop - CFO

• Capt. Alex Staring - COO
• Chief Executive Officer since 2000
• Chief Financial Officer between 1998 and 2000
• Board of Directors since June 2003
• Member of the Executive Committee since 2004
• Director and Chairman of the International Tanker

Owners Pollution Federation Fund since 2011

• Trained as a Lawyer
• Chief Operating Officer of Euronav since July 2005
• Spent majority of his time at sea on Shell and CMB

tankers

• Came ashore in 1997 and headed up SGS training and

gas centre

• Former COO of Tankers International LLC
• Trained in Maritime Sciences
• CFO since 2008
• Joined Euronav in September 2004 and appointed

Deputy CFO and Head of Investor Relations

• Private Equity and Investment Banking background with

UBS

• Started career at Mustad International Group
• Founder of First Tuesday International
• Trained as an Engineer and MBA from INSEAD

Brian Gallagher – Head of IR

• Head of Investor Relations since March 2014
• Experience from the British Coal Pension fund unit, CIN

Management, before moving to Aberdeen Asset Management in 1996

• Worked as Investment Manager at Gartmore for 7 years
• In 2007 set up a retail fund at UBS Global Asset

Management before switching into Investor Relations as IR Director at APR Energy in 2011

• Trained as Economist

Professional and Experienced Board of Directors

13 Name Age Background Carl Steen (Chairman) 65 Strong background in finance, shipping,

• ffshore and oil services (Nordea)

Alice Wingfield Digby 42 Strong background in shipping (former Chartering Manager), ship owner in smaller tanker segment Daniel R. Bradshaw 69 Strong background in shipping and offshore Anne-Hélène Monsellato 48 Former Partner/ Auditor (EY), strong background in cross-border listing transactions, Audit Committee financial expert (SEC) Grace Reksten Skaugen 63 Strong background in corporate finance, venture capital and shipping, former board member of Statoil William Thomson 68 Strong background in shipping, former ship

• wner, shipbroker, director of P&I club

Name Age Background Ludovic Saverys 33 Strong background in finance and shipping (CFO of CMB), ship owner (BOCIMAR (Dry bulk), Delphis (Container))

INDEPENDENT DIRECTORS

Shareholder Shares % Saverco - Marc Saverys 17,026,896 10.70% Victrix – Virginie Saverys 9,245,393 5.80% Total Family 26,272,289 16.50% Huber Capital 4,253,700 2.67% Argonaut 4,223,775 2.65% Dimensional Fund 3,823,695 2.40% Avenue Capital 2,593,936 1.63% Vanguard 2,582,388 1.62% Fidelity 2,565,774 1.61% Mellon Capital 2,459,193 1.54% Wisdomtree 2,330,323 1.46% SEB Investment Man 2,182,989 1.37% Norges Bank 2,177,398 1.37% Deutsche Bank Trust 1,913,762 1.20% Alyeska 1,800,148 1.13% Donald Smith 1,785,377 1.12%

SHAREHOLDERS

Name Age Background Paddy Rodgers (CEO) 57 CEO Euronav since 2000

NON-INDEPENDENT DIRECTORS EXECUTIVE DIRECTORS

Clean structure with most assets held directly at Euronav NV

14

Euronav Ship Management SAS France

Euronav UK Ltd United Kingdom Euronav Tankers NV Belgium Euronav SAS France Euronav Hong Kong Ltd Hong Kong Euronav Shipping NV Belgium

Euronav Ship Management (Antwerp) Branch Office Belgium Euronav Ship Management (Hellas) Ltd Liberia Euronav Singapore

• Pte. Ltd.

Singapore Euronav Luxembourg SA Luxembourg Larvotto Shipholding Ltd Hong Kong Fiorano Shipholding Ltd Hong Kong TI Africa Ltd Hong Kong TI Asia Ltd Hong Kong E.S.M.C. Euro-Ocean Ship Management Ltd Cyprus Euronav Ship Management (Hellas) Branch Office Greece 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

50% 50%

100% 100%

1 vessel 1 vessel * 1 vessel * 1 FSO 1 FSO 3 vessels *

Euronav NV

Belgium

47 Vessels*

*Vessel to be repatriated under main balance sheet

*All of our daughters are funded through shareholders’ loans. The excess of cash is repatriated through the repayment of these shareholders’ loans.

SERVICE HOLDING

16

15

Financials

Strong credit profile

16

Q1-17 2016 62% 2015 63% 2014 48% 2013 37% 64% 909 879 921 Q1-17 2016 2015 2014 1,212 2013 1,059 620 597 423 264 97 Q1-17 2016 2015 2014 2013

LIQUIDITY (USDm) VALUE ADJUSTED EQUITY RATIO(1) (%) EBITDA FROM FIXED RATE CONTRACTS(2) (USDm) NET DEBT (USDm)

1) Book equity value adjusted for broker valuations 2) On proportionate basis covering all joint ventures

155 155 144 122 136 2013 LTM Q1-17 2014 2015 2016

SEASONALITY: AVERAGE MONTHLY VLCC RATE 1990 - 2016

Strong financial profile offsets cyclicality and seasonality

1 YEAR TC VLCC

17

Source Clarkson Research Services Limited 2017

$0 $10 000 $20 000 $30 000 $40 000 $50 000 $60 000 $70 000 $80 000 $90 000 $100 000 Mar-00 Oct-01 May-03 Dec-04 Jul-06 Feb-08 Sep-09 Apr-11 Nov-12 Jun-14 Jan-16 1 Year TC VLCC Cash breakeven

$43 372 $40 048 $37 962 $32 615 $35 652 $36 851 $35 887 $29 567 $31 114 $36 315 $45 944 $51 236

$25 000 $30 000 $35 000 $40 000 $45 000 $50 000 $55 000 Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec

Average VLCC rate

COMMENTS

• Low opex and cheap financing lower

breakeven rates

• P&L breakeven (including 2017

expected; interest, reduction and repayment of debt facilities)(1): – ~ USD 27,300 / day for VLCC (OpEx / day USD 8,165 and SG&A / day USD 1,600) – ~ USD 24,000 / day for Suezmax (OpEx / day USD 7,520and SG&A / day USD 1,600)

• Cash flow breakeven 2017(2):

– ~ USD 18,500 / day for VLCC – ~ USD 15,750 / day for Suezmax

1. Before TC-in/fixed income 2. Before fixed rate contracts

Long-term bank financing on attractive terms

Leverage 18

• Credit margins between 1.225%

and 2.25%

• Most of the secured bank debt is

revolving

• Strong relationships with the leading

international shipping banks

• No material debt maturities until

2020

• Revolving credit facilities reduce by

$138m/year

• Cash debt amortizations on term

loans: $55m/year

HIGHLIGHTS REPAYMENT SCHEDULE AND RCF REDUCTIONS STRONG & SUPPORTING BANKING RELATIONS COVENANTS

• Liquidity (minimum USD 54.3 million):

USD 620 million (Q1-17)

• Equity Ratio (minimum 30%):

63.8% (Q1-17)

• Working Capital (positive):

USD 582.5 million (Q1-17)

50 100 150 200 250 300 350 400 450 500 2017 2018 2019 2021 2023 2022 2020 Repayments Reductions Balloon

19

Financial Highlights – Profit & Loss

(In millions of USD) 2015 2016 Revenue 846.5 684.3 Other operating income 7.4 7.0 Total income 853.9 691.3 Voyage expenses and commissions

• 71.2
• 59.6

Vessel operating expenses

• 153.7
• 160.2

Charter hire expenses

• 25.9
• 17.7

General and administrative expenses

• 46.3
• 44.1

Net gain (loss) on disposal 5.3 26.2 EBITDA 613.7 476.4

• f which FIXED EBITDA

144.0 155.0 Depreciation

• 210.2
• 227.8

Net finance expenses

• 47.6
• 44.8

Share

• f

profit (loss)

• f

equity accounted investees 51.6 40.5 Result before taxation 355.9 203.8 Tax benefit (expense)

• 5.6

0.1 Profit (loss) for the period 350.3 203.9

PROFIT AND LOSS COMMENTS

• Fixed income strengthened:

– Long-term seven year charters secured with Valero Energy Inc. for four Suezmax vessels starting in 2018 which will be served by four Ice-class new buildings

• rdered during the year

– Award of further five years contracts for the FSOs on the Al-Shaheen field offshore Qatar, owned and

• perated by Qatar Petroleum (70%) and Total (30%)
• Company currently has > USD 100 million of EBITDA (1)

generated annually from fixed income contracts (FSO + TC contracts)

• Revenues dropped from 2015 to 2016 due to lower

freight rates

1. Before TC-in/fixed income 2. Proportionate consolidation method & FSO contribution current contract runs to Q3 2017

Financial Highlights – Balance Sheet

1 2 3

Leverage remains within company imposed limits at 45% loan to value Diversification of funding source Sale & Leaseback of 4 VLCCs opens new

• ption on funding

HIGHLIGHTS

4

Liquidity position strengthened – providing

• ptionality for cycle

LIQUIDITY POSITION Bank Loans Refinancing of term loan facility Q4 2016 now means Euronav credit facilities are mostly RCFs CAPEX and newbuild debt capacity (current)

• Newbuilding Capex (4 Suezmax w/

contracts) = USD 236m

• Total estimated lending capacity = USD

175m

5

(In millions of USD) 2015 2016 Cash 131.5 206.6 Restricted cash 0.1 0.1 Other current assets 243.4 166.7 Long term assets: Newbuildings 93.9 86.1 Vessels 2,288.0 2,383.2 Other long term assets 283.8 203.9 Total assets 3,040.8 3,046.7 Current liabilities 179.5 189.1 Long term debt 952.4 966.4 Other long term liabilities 3.1 3.4 Equity 1,905.7 1,887.7 Total liabilities and stockholders’ equity 3,040.8 3,046.7

BALANCE SHEET

(In millions of USD) 2016 Q1-17 Cash & cash equivalent (incl. share of JV) 240 144 Undrawn secured revolving facility 297 416 Undrawn unsecured credit line 60 60 Total Liquidity 597 620 20

21

Financial Highlights – Cash Flow

(In millions of USD) 2015 2016 Net Income 350.3 204.1 Depreciation and amortization 210.4 227.8 Other

• 52.5
• 32.1

Change in working capital

• 57.7

38.5 Net Cash from Operating Activities 450.5 438.3 Investment in fixed assets

• 360.1
• 349.5

Proceeds from sale of fixed assets 154.3 248.8 Net Cash for Investments

• 205.8
• 100.7

Change in net debt

• 436.6
• 33.7

Dividends

• 138.0
• 216.8

Change in equity 237.3

• 6.2

Other

• 28.0
• 4.4

Net Cash from Financing

• 365.3
• 261.1

Change in cash balance

• 120.6

76.5

COMMENTS CASH FLOW

• Asset investments mainly in secondary market as part of

active fleet management

• Debt facilities are revolving with no fixed cash

amortizations, only fixed reductions of the facility sizes

• Dividend policy 80% of net profits, however, depreciating

assets down to zero over 20 years (industry standard 25 years down to scrap value)

5

22

Industry and Market Overview

23

Demand for oil ROBUST Supply of oil BALANCED Shipping demand Ton miles CHANGEABLE Shipping Supply Vessel supply

S/T HEADWINDS L/T MANAGEABLE IF OWNERS ARE DISCIPLINED

Financing & regulation NEW BARRIER TO ENTRY

Oil Tankers – five key medium term drivers

Historical

• Oil demand growing

last 25 years with yearly average 1.1 mbpd

• Only 2 negative years of

growth since 1990 for global crude demand Present

• IEA forecast 1.4 mbpd pa

growth 2017 OPEC Impact vs US Shale OPEC cuts impact on shipping

• Uncertainty around impact
• How long?

OPEC cut = Non OPEC increased supply

• USA production shale:

New Swing Producer very resilient & responsive

• USA crude exports to

increase ton miles from 2017

• Seasonal Trends:

increasing tonnage due to refinery maintenance and other factors

• Contracting rate for

newbuildings fallen substantially & shipyards under reform pressure in the medium term

1 2 3 4 5

• Leverage down
• New regulations (Basel 3 & 4)

restricting lending Total amount of loans reduced

• Distress in shipping loans has

reduced risk appetite

• OPEC cuts: difficult to

predict if good or bad for Ton miles

Demand for oil – robust and steady

1 Demand growth (million bpd)

Y/Y CHANGE IN GLOBAL DEMAND FOR OIL THE IEA ESTIMATES FOR OIL OIL PRICE OUTLOOK

24

10 20 30 40 50 60 70 80 90 2015 2016 2017 2018 2019 2020 2021 2022 2023 USD per barrel Demand/supply Disruptive Demand stimulating Neutral Demand Destructive Capex cuts in E&P Lack of disruption/market share game

Source IEA, McQuilling, Bernstein, Barclay, Petrowin and Bloomberg 0,3 1,0 0,5 0,3 1,0 1,5 1,9 2,0 0,3 1,7 0,8 0,7 0,7 1,5 3,1 1,4 1,0 1,6

• 0,7
• 0,9

3,1 0,8 1,1 1,3 0,7 1,8 1,6

• 1
• 0,5

0,5 1 1,5 2 2,5 3 3,5 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Million barrels per day

Average 1.1 million barrels per day 1,2 1,4 1,5 1,6 1,3 1,4 1,4 1,4 0,2 0,4 0,6 0,8 1 1,2 1,4 1,6 1,8 Nov 16 Dec 16 Jan 17 Feb 17 2016 forecast for oil demand 2017 forecast for oil demand

10 20 30 40 50 60 70 80 90 USD

0,6 2,5 3,0 3,1 3,3 3,5 4,4 4,6 5,0 5,7

Supply of oil – driven by shale & new supplier dynamics

Average field development (approval to start up) time by resource [years, selected areas]

Source SBC Analysis, Rystad Source Economist Source CLSA

2

84 000 86 000 88 000 90 000 92 000 94 000 96 000 98 000 2012 2013 2014 2015 2016 2017 mbpd

OIL SUPPLY ELEVATED BUT PRICE CAPPED SHALE OIL SPEED TO PRODUCTION IS KEY GLOBAL OIL SUPPLY IS GROWING MOST SHALE PRODUCTION KICKS IN AGAIN @ USD 50

25

Source IEA

Ton miles increasing

1.4 mbpd x 365 days = 511m barrels 511m barrels / 2m capacity per VLCC = 256 cargoes 256 cargoes / 9 annual journeys for VLCC MEG – F East = 28 VLCCs Arabian Gulf to China 5,500 miles 21 days West Africa to China 9,650 miles 33 days LatAm to China 11,500 miles 44 days

26

1.4 mbpd x 365 days = 511m barrels 511m barrels / 2m capacity per VLCC = 256 cargoes 256 cargoes / 4.5 annual journeys for VLCC Atlantic – F East = 57 VLCCs Average oil demand growth 1990-2015 =1.1 mbpd

Importer

Exporter

Supply Demand Demand Supply 3

DEMAND GROWTH ALL FROM FAR EAST – FOR TANKERS IMPORTANT WHERE SUPPLY IS SOURCED FROM

Source Euronav, Morgan Stanley

West Africa LatAm / Caribs Middle East Asia Pacific China

28 VLCCs 57 VLCCs

LatAm / Carbs - Asia Pacific route Middle East - Asia Pacific route

Vessel Supply – Current order book ratio expected to drop significantly over the next 12 months

Source Clarkson

Source Clarksons

VLCC order book ratio falls to 5.9%

• ver the next 12

months* Last 20 years order book ratio rarely been below 10% 4 Industrial players 50 Chinese 29 Captive fleet 10 Speculative 10

SMALL PORTION OF ORDERS ARE SPECULATIVE ORDERBOOK AS % OF FLEET IMPROVING PICTURE NEWBUILDING ORDERING ACTIVITY

27 1 2 3 4 5 6 7 8 9 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2016 2017 VLCC Suezmax

• The VLCC and Suezmax orderbook in aggregate stands

at 13.6% of the total fleet and is scheduled to be delivered over the next 2-3 years

• With a normal replacement rate of ~5% per annum,

the order book is at healthy levels, although it has increased during 1Q 2017 due to historic low newbuilding prices from the yards

• Yards have recently filled up capacity, and are not

likely to continue to offer the compelling prices

• Limited number of speculative orders within current
• rder book is positive

10 20 30 40 50 60 % VLCC Orderbook % Fleet Suezmax Orderbook % Fleet

22.5 20 USD 4.0m 17.5 USD 3.5m 15 USD 2.5m 12.5 10 USD 2.0m 7.5 5 USD 1.5m

Vessel Supply – Scrapping decision-making process

100% utilisation

28 Special Survey #1 Special Survey #2 Special Survey #3 Special Survey #4 Special Survey #5

4

Dry-dock costs increasing after 15 years Maintenance costs increasing Regulations costs

• ballast water

management

• Sulphur emissions

control Increased costs due to vessel age Decreasing utilisation (vettings) Lower market freight rates Lower earnings potential

TANKER SHIPPING – A HIGHLY REGULATED INDUSTRY

Process Driver=Time Catalyst=Rates

Vessel age

SCRAPPING MOTIVATION

Large tanker market – moving towards equilibrium

29

DEMAND AND SUPPLY INTERACTION ON VLCC EQUIVALENTS 2016-2019 WHAT IEA DEMAND TRANSLATES INTO VLCC EQUIVALENTS REQUIRED PA

2016 2017 2018 2019 Total VLCC to be delivered 45 51 50 17 Total Suezmax equivalent to be delivered* 12 32 10 VLCC equivalents to be delivered* 57 83 60 17 +/- Gibsons Scrapping forecast

• 18
• 23
• 25
• Demand based on IEA forecast

49 40 37 37 IEA demand forecast bpd m 1.6 1.4 1.2 1.2 = Yearly Net Surplus/(Deficit) 22

• 45

Cumulative Surplus/(Deficit) 8 30 30

• 15

IEA demand forecast m bpd VLCC equivalent* IEA demand forecast m bpd VLCC equivalent*

1.6 49 1.1 33 1.5 46 1.0 30 1.4 43 0.9 27 1.3 40 0.8 24 1.2 37 0.7 21

Source Clarksons, Gibsons * VLCC equivalent = 1 VLCC = 2 Suezmax

SUPPLY DEMAND

4

• 20

20 40 60 80 100 2016 2017 2018 2019 VLCC Equivalents

VLCC Equivalents to be delivered* Demand based on IEA forecast Cumulative Surplus/(Deficit)

Vessel Supply: Current order book

4

VLCC ORDER BOOK SUEZMAX ORDER BOOK

• 48
• 25
• 22

17 54 62 49 30 24 23 47 19

• 11
• 13
• 35
• 27
• 11
• 35
• 18
• 24

50 32

• 80
• 60
• 40
• 20

20 40 60 80 2017

• 1

2016

• 2

2015

• 1

2014 2013 2012 2011 2010 2019 2018 Could be scrapped (≥ 20 years old) Must be scrapped (over 22.5 years old) Scrapped Forecast Additions Additions

• 21
• 30

38 43 45 27 24

• 16
• 9
• 20
• 19
• 7
• 7
• 26
• 26
• 14

19 46 10 8 17

• 70
• 60
• 50
• 40
• 30
• 20
• 10

10 20 30 40 50 60 2019 2018 2017 2016

• 1

2015 2010 2014 2013 2012 2011 Could be scrapped (≥ 20 years old) Must be scrapped (over 22.5 years old) Scrapped Forecast Additions Additions

30

Source Clarksons

HUGE REDUCTION IN SHIPPING BANK EXPOSURE

Around USD 100bn withdrawn from shipping sector since 2009

REGULATIONS FORCE LEVERAGE DOWN

• Banks lending

flexibility severely curtailed due to Basel II & III

• Shipping & Energy

loans in distress

• Quantum of available

lending capital restricted for commercial reasons

PRIVATE EQUITY IN RETREAT

• PE exiting shipping
• PE been surprised by

the lack of liquidity implying a return to the sector difficult to realize

SHIP OWNERS UNDER PRESSURE

• Other shipping

segments under severe financial pressure

• Most tanker owners

have mixed fleets so pressure felt within

• wnership structure

SHIPYARD PRESSURE TO RESTRUCTURE & REDUCE CAPACITY

• Low order books in all

shipping segments leading to ship yard distress

• Reforms being

actively adopted by shipyards driven by governments

Financing – becoming more restrictive

Source: Tufton, Marine money london 2015

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5

Summary

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Largest tanker company in the world Strong financial position Mix of spot and fixed rate charters Long-term positive tanker market fundamentals Strong and Reputable Platform 1 2 3 4 5

22

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Supplementary slides

Introduction to the tanker market

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• Refinery utilisation

and locations

• Regional imbalances
• Stock performance
• Spot and forward

prices

• Oil
• Coal
• Natural gas
• Nuclear power
• Shipyard capacity

and labour costs

• Prices of input goods
• Vessel prices
• Interest rates
• Access to funding
• Service offer
• Geographic fleet

concentration

• Ownership structures
• Size of global fleet
• Newbuilding rates
• Scrapping rate
• Age of fleets
• Environmental issues

Energy sources Oil market Newbuildings Transport capacity Ship owners and logistics operations

• Large tankers play a vital link

in the global energy supply chain

• Oil tanker shipping market

primarily driven by daily freight rates

• Daily freight rates vary with

the supply and demand for vessels and cargoes (need for movement of crude)

• Freight is paid for the

movement of cargo between a load port and a discharge port

• Demand for oil traded by sea

is primarily affected by global and regional economics

• Economic growth
• Industrial production
• Trade, Energy and

environmental policies

• War & conflicts

Macro-economics DEMAND DRIVING FACTORS SUPPLY DRIVING FACTORS

Targeting an optimal mix of employment for revenue generation

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Notes: 1. Established using a weighted average of the time charter equivalent (TCE) for each vessel on three selected voyages, which is then compared with an agreed reference

• vessel. Variable parameters affecting the calculations, such as fuel oil price and actual speed and consumption are reassed and reapplied every six months

2. With the exception of any specific trading restrictions which owners may stipulate

Pool of VLCCs

All commercial decisions are handled by the Pool’s independent agent(2) Vessel owning companies pool their vessels together in

• rder to gain

economies of scale The pool distributes net revenues to the pool members in accordance with the allocated pool points(1) Vessels chartered, mainly in the spot market All revenues and costs are pooled Charterer Pays all voyage related costs Charterer Pays monthly charter hire on a per day basis Responsible for the payment of all vessel

• perating expenses

and capital costs

• As part of the overall offshore field

development, most FSOs are leased

• n long-term (5-15years), fixed

rate contracts

• These contracts are normally

structured as either a time charter

• r a bareboat contract

Both FSOs are deployed as floating storage units under service contracts with QP/Total 1 3 4 5 2

VLCC CHARTERING LTD. (TANKER POOL) TIME CHARTERS FSOs AND OFFSHORE SERVICE CONTRACTS

• Tankers a highly cyclical sector –

always repeats past mistakes

• Large vessel supply to drive freight

rates lower

ASSET VALUES

• Asset values falling despite positive

tanker earnings trend

• Lower NAV reduces valuation

support

OTHER INVENTORY

• Inventory at record highs – will

need to be cleared at some point thus reducing need for shipping

• Contango spread negligible since

OPEC announced production cuts

• Trump impact uncertain – Border

adjustment tax

• OPEC output cut / M - East

export cuts extended > 6 months

• Speculation of increased contracting

activity in response to discounting

• Korean political paralysis delaying

necessary industry restructuring

CYCLICAL

SHIPYARDS DEMAND

• Agencies continue to upgrade

demand forecasts

• 2016 now seen as 1.6m bpd 2017

1.4m bpd growth

CHINA – GROWTH

• China oil demand by very diverse

range of factors

• Base effect of economy consuming

12m bpd = key

$

• Financing being restricted – new

barrier to entry

• Restricted access reducing vessel

supply growth

SUPPLY OIL

• Supply of oil elevated despite OPEC

cuts

• Increased supply = increased

demand for shipping

• World GDP: upgrades beginning
• “Risk on” approach with investors

GLOBAL GROWTH

BULL CASE BEAR CASE

Complex factors have impact on the tanker business

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Vessel Supply - Reduction in contracting run rate

SHIPYARDS FAR EAST FOLLOWING NATURAL LIFE CYCLE

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Source CLSA

UK Western-Europe Japan Korea China Pre-1945 1945-1950s 1950s-1970s 1970s-1990s 1990s-2000s 2000s-present

• Gvt. subsidies and downsizing

Restructuring and cost reduction Cost leadership Technology, specialization and domestic markets Closure of industry Nationalization

Corporate Governance matters

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Shipping Corporate Governance Scorecard Rankings

ASC EURN NVGS KEX AVANCE DHT OSG GLNG MATX NAT 1 2 3 4 5 6 7 8 9 10 SDLP NAP NMM CAI FRO GNRT NNA CMRE KNOP SSW 22 23 24 25 26 27 28 29 30 31 GLOG TGH TK LPG TNK BWLPG GLOP GMLP RIGP TGP TOO 11 12 13 14 15 16 17 18 19 20 21 SBLK DSX DCIX ESEA CPLP SB TNP STNG SALT GASS DRYS 32 33 34 35 36 37 38 39 40 41 42

Quartile 1 Quartile 3 Quartile 2 Quartile 4 Merits of corporate governance are important to Euronav

1

The reason it is important is the future funding of tanker shipping

2

Euronav HAS a credible platform in capital markets

=

Tanker shipping MUST breakout from historical funding structures & embrace capital markets

3

Source Well Fargo Securities, LLC

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