Investor Presentation March 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
Euronav – Largest Tanker Company in the World CURRENT FLEET – TOTAL 5 6 VESSELS – 1 3 .5 MM DW T W HO W E ARE 1 V – PLUS (1) 2 FSO 29 VLCC 22 SUEZMAX Leading pure-play tanker company Over 441,000 DWT 380k barrels + 2 (TBD) with best-in-class operating platform 150,000 – 165,000 DWT Only 4 in world fleet Stripped water capacity Up to 330,000 DWT 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 Notes: 1. Only 4 V-Plus vessels in world fleet 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 4
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 (1) Euronav average Source Euronav, Morgan Stanley 5
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% 40% Velocity = 3 3 4 % * 30% 20% Free float = 8 5 % 10% 0% * Calculation method = daily volume x trading days / free float Source Bloomberg based on Exchange volumes 6
Section 2 Industry Dynamics 5 7
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 36-49 increase ton miles VLCCs 1 2 3 4 5 8
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 9
Demand – steady and robust outlook 1 Demand for Oil GLOBAL OI L DEMAND 1 9 9 0-2 0 1 5 ( MB/ D) AND AVERAGE OI L PRI CE Average oil dem and grow th 1 9 9 0 -2 01 5 = 1 .1 m bpd Grow alm ost alw ays 3.5 95.5 80 3.1 3.1 2 0 1 5 oil 3 dem and grow th = 1 .8 m bpd 2.5 Million barrels per day 1.9 2 95 70 2 1.8 1.7 1.6 1.5 1.5 1.4 1.5 1.3 1.1 1 1 1 Oil price ( USD per barrel) Consum ption ( m bpd) 1 0.8 0.8 0.7 0.7 0.7 94.5 60 0.5 0.5 0.3 0.3 0.3 0 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 -0.5 94 50 Source I EA -0.7 -1 -0.9 93.5 40 I EA forecast 1 .2 m bpd consumption growth 93 30 EVERY year to 2020 in line with historical 92.5 20 average Actual demand (million barrels) Average oil price Source I EA 10
China, Oil Demand & Oil Tankers 1 Demand for Oil CHI NA CRUDE OI L I MPORT DI VERSI FI CATI ON CONTI NUES CHI NA OI L DEMAND – VERY STEADY ( UNLI KE GDP GROW TH) Source Bloomberg 35 14 GDP grow th ( % ) I m ports ( m bpd) Russia 14% Other 20% 13 30 12 25 Libya 1% Saudi Arabia 11 14% 20 Kzakhstan 10 1% Brazil 3% 15 9 Kuwait 4% 10 8 Venezuela Oman 11% 6% 5 7 Iran 6% 0 6 Iraq 9% 08 09 10 11 12 13 14 15 Angola 10% Oil imports (million barrels per day) Real GDP growth (% ) CHI NA OI L DEMAND – TO BE DRI VEN BY THE CONSUMER NOT I NDUSTRY STRATEGI C PETROLEUM RESERVE – SPR A KEY DRI VER I n China, transportation (road and air) makes up about 42% of demand for oil Additional 110 mm bbls in 2016 (source: BP) 600 Other Transport 14.2% 500 (road and m illion barrels air - 400 consumer- led) 300 42.1% 200 Industrial usage 100 28.8% 0 Commercial heating (mix industry and consumer) Source Argus, FGE, Reuters, Barclays Research Source Bloomberg 14.9% 11
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