Investor Presentation May 2016 1 Forward Looking Statements - - PowerPoint PPT Presentation

Investor Presentation

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

• 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

Section 1

Euronav at a Glance

2

3

Euronav – Largest Tanker Company in the World

W ELL POSI TI ONED FOR STRONG CASH FLOW GENERATI ON

Breakeven ( including debt service) :

~ USD 2 7 ,3 0 0 / day for VLCC – OpEx / day USD 8 ,1 6 5 ~ USD 2 4 ,0 0 0 / day for Suezmax – OpEx / day USD 7 ,5 2 0

1

3 MM barrels

• Avg. age 12 years

2.8 MM barrels

• Avg. age 12 years

30 VLCC + 1 (TBD) Up to 330,000 DWT 2MM barrels

• Avg. age 6 years

1MM barrels

• Avg. age 10 years

22 SUEZMAX

150,000 – 165,000 DWT

1 V – PLUS (1) Over 441,000 DWT 2 FSO Stripped water capacity 380k barrels

Notes:

• 1. Only 4 V-Plus vessels in world fleet

CURRENT FLEET – TOTAL 5 6 VESSELS – 1 3 .5 MM DW T

Only 4 in world fleet

W HO W E ARE Leading pure-play tanker company with best-in-class operating platform Committed to shareholder long-term value creation… Strong balance sheet Most liquid big tanker player in the world … with significant direct return to shareholders

Fixed I ncom e > USD 1 0 0 m illion of EBITDA (1) generated annually from fixed income contracts (FSO + TC contracts)

2

Spot I ncom e - High Leverage to Upside Each USD 5 ,0 0 0 uplift (above break-even) in both VLCC and Suezmax rates improves net revenue and EBITDA by USD 7 2 m illion

3

Returns to Shareholders Return 8 0 % of net income to shareholders (2)

4

1. Proportionate consolidation method 2. P&L definition

4

Euronav – Exposed to Structural Growth in Demand for Oil

Europe U.S. West Africa Middle East Asia Pacific 24 – 26 VLCCs 22 – 24 VLCCs 29 – 32 VLCCs 52 – 54 VLCCs 48 – 50 VLCCs 48 – 50 VLCCs 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 I NCREMENTAL VLCC DEMAND FOR 1 .2 MBPD ADDI TI ONAL EXPORTS = 3 6 – 4 9 VLCC PER YEAR

5

W HAT W E DO

I m porter Exporter

Supply Demand Demand Supply

Russia China LatAm / Caribs

(1) Euronav average Source Euronav, Morgan Stanley

Euronav - Most Liquid Big Tanker Player

Source Bloomberg based on Exchange volumes

LI QUI DI TY GI VES SHAREHOLDERS OPTI ONALI TY

More Trading Hours

Euronext Brussels: 9 a.m. – 5. 30 p.m. (CET) NYSE: 9.30 a.m. – 4 p.m. (EST)

Average daily volume shares = 1 .3 8 m m shares per day

6

Ticker Symbol: EURN Average daily volume USD = USD 2 0 m m per day Velocity = 3 3 4 % * Free float = 8 5 %

* Calculation method = daily volume x trading days / free float

TOTAL TRADED VALUE OF EURONAV US AND BB SHARES ( SAME SHARE) - EURN US EQUI TY & EURN BB EQUI TY

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 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

Section 2

Industry Dynamics

5

7

Demand for Oil ROBUST

• Oil demand growing

last 25 years

• Yearly average 1.1

mbpd

• IEA forecast 1.2m bpd

EVERY year to 2020

• 1.2 m bpd oil demand

growth = for 36-49 VLCCs

Supply of Oil

EXCESS

• Market share strategy
• USA production shale:

very resilient & responsive

• Iran increase of 900k

bpd

Supply of Vessels

MANAGEABLE

• Natural replacement

cycle of 5% p.a.

• Order book largely

industrial not speculative

• Order velocity

substantially fallen since Q3 2015

Ton Miles

BALANCED

• Trade lines established

from production in West to consumption in East

• Ton miles a dynamic

function in tankers

• Chinese imports

diversification

• USA crude exports to

increase ton miles

Financing

NEW BARRI ER TO ENTRY

• New regulations

( Basel 2 &3 ) restricting lending

• Distress in shipping

loans has reduced risk appetite

• Shipyards under

pressure to reform

Oil Tankers – Five Key Drivers

1 2 3 4 5

8

Oil Price – Impact on Demand

10 20 30 40 50 60 70 80 90 100 110

Lack of disruption/ market share game Iran and other supply remain high Shale - as swing producer increases

• utput

Capex cuts in E&P Potential coordinated cuts in production QE returns/ $ loss of value/ oil as financial asset Dem and Destructive 2 0 0 9 - 2 0 1 4 proved in this oil price range that dem and w as destroyed Neutral Dem and Stim ulating proven over time that the cheaper the commodity price the greater it is used Dem and Disruptive Current structure of global markets mean energy/ capex/ sovereign wealth effects > consumer stimulus from lower oil prices OI L PRI CE OUTLOOK ( I LLUSTRATI ON)

9 Demand for Oil

1

Demand – steady and robust outlook

GLOBAL OI L DEMAND 1 9 9 0-2 0 1 5 ( MB/ D) AND AVERAGE OI L PRI CE

0.3 1 0.5 0.3 1 1.5 1.9 2 0.3 1.7 0.8 0.7 0.7 1.5 3.1 1.4 1 1.6

• 0.7
• 0.9

3.1 0.8 1.1 1.3 0.7 1.8

• 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 Million barrels per day

Demand for Oil

1

20 30 40 50 60 70 80 92.5 93 93.5 94 94.5 95 95.5

Oil price ( USD per barrel)

Consum ption ( m bpd)

Actual demand (million barrels) Average oil price

10

Average oil dem and grow th 1 9 9 0 -2 01 5 = 1 .1 m bpd  Grow alm ost alw ays

2 0 1 5 oil dem and grow th = 1 .8 m bpd

I EA forecast 1 .2 m bpd consumption growth EVERY year to 2020  in line with historical average

Source I EA Source I EA

Transport (road and air - consumer- led) 42.1% Commercial heating (mix industry and consumer) 14.9% Industrial usage 28.8% Other 14.2%

Source Bloomberg

China, Oil Demand & Oil Tankers

CHI NA OI L DEMAND – VERY STEADY ( UNLI KE GDP GROW TH) STRATEGI C PETROLEUM RESERVE – SPR A KEY DRI VER CHI NA CRUDE OI L I MPORT DI VERSI FI CATI ON CONTI NUES CHI NA OI L DEMAND – TO BE DRI VEN BY THE CONSUMER NOT I NDUSTRY

Russia 14% Saudi Arabia 14% Oman 11% Angola 10% Iraq 9% Iran 6% Venezuela 6% Kuwait 4% Brazil 3% Kzakhstan 1% Libya 1% Other 20%

I n China, transportation (road and air) makes up about 42% of demand for oil

6 7 8 9 10 11 12 13 14 5 10 15 20 25 30 35 08 09 10 11 12 13 14 15 GDP grow th ( % ) I m ports ( m bpd) Oil imports (million barrels per day) Real GDP growth (% )

 Additional 110 mm bbls in 2016 (source: BP)

11 Demand for Oil

1

100 200 300 400 500 600

m illion barrels

Source Argus, FGE, Reuters, Barclays Research Source Bloomberg

1 1 1 1 1

China & Oil Tankers – Four Reasons for Confidence

• SPR is not a luxury OR a STATIC number
• China needs 55 days coverage of consumption – so

12m bpd x 55d = 660m bbls today

• Target is comply by 2020 = 600m bbls 2015 SPR is

currently 350m bbls

• Reforms have granted licences up to 1 mbpd (source:

Bernstein)

• “Use it or lose it” element to the licences
• Substitution demand – new for tankers
• March 2016 – merger of teapots for procurement
• China continue to look to diversify sourcing of oil

imports and decrease of domestic oil production

• Domestic production growth stagnant since 2012

(Source: Bernstein)

• Consensus is for 100k bpd requirement of imports

replacing domestic production STRATEGI C PETROLEUM RESERVE

Build out to slow 2016 C 50-110m bbls to be added = 1 4 0 k bpd to 3 0 0 k bpd

TEAPOT REFI NERY

Refinery legislation anniversary June ’16 2016 = 5 0 k bpd growth

DI VERSI FI CATI ON OF SUPPLY & LI KELY PRODUCTI ON PEAK

Consensus = 1 0 0 k bpd

1 4 3 2

• BASE EFFECT – China consumes 11.8m (source: IEA)

bpd so small % change means large no of barrels

• 500m people joined middle-class in past decade

(source: McQuilling)

• Oil demand underpinned by consumer – diesel, gasoline

& kerosene demand OPERATI ONAL ECONOMY

3% import growth = 2 1 0 k bpd 5% import growth = 3 5 0 k bpd

12

TOTAL 5 0 0 – 8 0 0 k bpd

Source IEA, McQuilling, Bernstein

Demand for Oil

1

0.6 2.5 3.0 3.1 3.3 3.5 4.4 4.6 5.0 5.7

Oil Supply = High but Production Cuts Unlikely

OI L SUPPLY – SHALE PROVI NG TO BE VERY RESI LI ENT W HO I S GOI NG TO MATERI ALLY CUT? NEED CO-ORDI NATI ON BETW EEN THE TOP 1 0 PRODUCERS = 6 0 % W ORLD SUPPLY SHALE OI L SPEED TO PRODUCTI ON I S KEY OPEC QUOTAS? … OPEC HAS NEVER COMPLI ED W I TH QUOTAS

Supply of Oil

2

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

Source SBC Analysis, Rystad

USA 12.8* Russia 11.1 Saudi Arabia 10.2 Canada 4.5 China 4.4 Iraq 4.3 UAE 2.9 Iran 2.9 FSU ex Russia 2.9 Kuwait 2.8

m illion barrels per day 500 1000 1500 2000 2500 3000 3500 4000 400 600 800 1000 1200 1400 1600 1800 2011 2012 2013 2014 2015 Thousands of barrels per day Num ber of oil rigs Baker Hughes crude oil rig count North Dakota crude oil production Texas crude oil production

13

* includes bio fuel

Source IEA November 2015

Ton Miles – a Key Driver

Ton Miles

3

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 Asia Pacific 24 – 26 VLCCs 22 – 24 VLCCs 29 – 32 VLCCs Exporter

Supply Demand Demand Supply

Russia China LatAm / Caribs U.S. Europe I NCREMENTAL VLCC DEMAND FOR EACH 1 .2 MBPD ADDI TI ONAL EXPORTS 52 – 54 VLCCs 48 – 50 VLCCs 48 – 50 VLCCs I m porter

Arabian Gulf to China 5 ,5 0 0 m iles 2 1 days W est Africa to USA 5 ,0 0 0 m iles 1 9 days W est Africa to China 9 ,6 5 0 m iles 3 3 days LatAm to China 1 1 ,5 0 0 m iles 4 4 days

Source Morgan Stanley Note: 1. Atlantic – Far East trade route

One w ay voyage durations

14

Order Book Dynamics – Structure - VLCC

54 62 49 30 24 23 45 45 30

• 48
• 25
• 13
• 22
• 11
• 1
• 5
• 8
• 7
• 16
• 8
• 10
• 60
• 40
• 20

20 40 60 2010 2011 2012 2013 2014 2015 2016 2017 2018

Could be scrapped (≥20 years old) depending on market levels Must be scrapped (over 22,5 years old) Scrapped Forecast Additions Additions

Net:1 3

Q1= 10 Q2= 8 Q3= 8 Q4 = 1 9 Q1= 12 Q2= 4 Q3= 4 Q4= 25 Q1 = 1 0 Q2= 5 Q3= 5 Q4 = 1 0

Net:6 Net:4 0 Net:8 Net:2 2 Net:3 7 Net:3 6 Net:3 7 Net:2 3

VLCC – ADDI TI ONS, SCRAPPI NG, REMOVALS  I MPLI ED BUFFER

Supply of Vessels

4

BASE CASE

15

Source Clarkson

38 43 45 27 8 10 27 45 10

• 19
• 7
• 20
• 7
• 9
• 3
• 6
• 7
• 5
• 8
• 17
• 45
• 35
• 25
• 15
• 5

5 15 25 35 45 55 2010 2011 2012 2013 2014 2015 2016 2017 2018

Could be scrapped (≥20 years old) depending on market levels Must be scrapped (over 22.5 years old) Scrapped Forecast Additions Additions

Q1= 1 Q2= 4 Q3 = 1 0 Q4 = 1 2 Q1= 16 Q2= 10 Q3= 4 Q4= 15

Q1= 3 Q2= 4 Q3= 2 Q4= 1

Net:2 0 Net:-1 Net:1 0 Net:2 4 Net:3 Net:3 9 Net:2 5 Net:3 6 Net:1 9

Order Book Dynamics – Structure - Suezmax

SUEZMAX – ADDI TI ONS, SCRAPPI NG, REMOVALS  I MPLI ED BUFFER

Q1= 3 Q2= 4 Q3= 2 Q4= 1 Supply of Vessels

4

BASE CASE

16

Source Clarkson

19 12 5 14 16 14 9 4 1 21 3 14 13 1 14 4 2 7 10 2 3 3 8 17 1 8 1 6 6 2 8 3 7 3 23

• 45
• 40
• 35
• 30
• 25
• 20
• 15
• 10
• 5

5 10 15 20

Num ber of vessels delivered

≥15 years old ≥17.5 years old ≥20 years old

2 0 1 7 2 0 1 8 2 0 1 9

Order Book – Logical Fleet Renewal – VLCC

ORDERS FROM I NDUSTRI AL SHI PPI NG ARE DI FFERENT THAN ORDERS FROM SPECULATI VE SHI PPI NG SPECULATI VE SHI PPI NG*

Supply of Vessels

4

2 0 1 6

23 6 5 10 15 20 25 2016 2017 2018 2019 Num ber of vessels delivered

• Industrial players don’t order to speculate on

asset value

• Industrial players run their ships on committed

programs less in the spot market

* including independent owners backed by private equity

17

National Oil Companies Traditional Ship Owners Chinese Ship Owners

Source Clarkson Source Clarkson

HUGE REDUCTI ON I N SHI PPI NG BANK EXPOSURE

Around USD 70bn withdrawn from shipping sector since 2008

REGULATI ONS FORCE LEVERAGE DOW N

• Banks lending

flexibility severely curtailed due to Basel II & III

• Shipping & Energy

loans in distress

• Quantum of available

lending capital restricted for commercial reasons

PRI VATE EQUI TY I N RETREAT

• PE exiting shipping
• PE been surprised by

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

SHI P OW NERS UNDER PRESSURE

• Other shipping

segments: Dry Bulk, Offshore, Container under severe financial pressure

• Most tanker owners

have mixed fleets so pressure felt within

• wnership structure

SHI PYARD PRESSURE TO RESTRUCTURE & REDUCE CAPACI TY

• Low order books in all

shipping segments leading to ship yard distress

• Reforms being

actively adopted by shipyards driven by governments

Increasing Barriers to Entry

Financing

5

Bank ( USD bn) 2 0 0 8 2 0 1 4 HSH Nordbank 58 25.5 Deutsche Schiffsbank/ Commerzbank 44.8 14.7 RBS 30 12 Lloyds/ HBOS 12.2 HVB/ UniCredit 11.2 5.7 Source Marine Money + Deutsche Bank

18

DEMAND

• Agencies forecast steady growth to

2020

• Incremental expansion from Asia

Pacific region

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 to remain elevated into

2017 with Iran and no co-ordinated production cuts

• Increased supply = increased demand

for shipping

STORAGE

• Storage increasing across due to
• versupply or strategic build e.g.

India

• Ultimately stored crude needs to be

shipped to final destination 19

• 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

SLOWDOWN OTHER INVENTORY

• Inventory at record highs – will

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

• Storage / contango on ships in

present cycle been limited

• Worldwide shale development –

unlikely outside of USA

• OPEC output cut / Middle East

reduce exports

• Global GDP growth stagnant
• Tanker market - a transportation

sector geared into GDP growth

CYCLI CAL

BULL CASE BEAR CASE

Section 3

Our Strategy

16

20

Maximizing Value Through Information

Other VLCC Tanker Pools ( Ships on the W ater)

• Tankers International = Only owner-led VLCC pool
• No value leakage; no commissions  Cost center
• Leading spot market oriented VLCC pool in which ship owners

with vessels of similar sizes and quality participate

• Spreading information (VL Database, TI Pool App)

Source: Clarkson’s – Total 665 VLCC ships @ 28 April 2016 Source: Company reports

Red indicates Captive or Sovereign fleet Blue indicates fleet in stock listed companies

VLCC Chartering Undertaking Leadership Role

Differentiate spot players vs industrial players

SI ZE I S CRI TI CAL TO I MPROVE MARKET KNOW LEDGE BARRI ER TO ENTRY – I NFORMATI ON

Heidm ar – VLCC Seaw olf

7

Navig8 – VL8

25

China VLCC

32

1 Ship Owner, 37 Vessels 2 Ship Owner, 52 3 Ship Owner, 27 10 – 15 Ship Owner, 103 COSCO Group, 32 4 – 10 Ship Owner, 154 SK Holdings, 18 NYK, 21 Fredriksen Group, 25 Euronav NV, 28 Angelicoussis Group, 30 Bahri, 34 MOL, 32 China Merchants Grp, 35 NIOC, 37

Top 1 0 Ow ners Control 4 4 %

• f Global

VLCC Fleet

53 37 16

21

Small owners are data deficient (267 VLCCs)

Capital allocation strategy

CAPI TAL ALLOCATI ON

Capex Liquidity reserve M&A criteria – balance sheet M&A – operational Shareholder Returns

• Approximately USD 20 million

maintenance capex (Drydocks)

• $130m outstanding capex on 2 VLCC

to be delivered in 1H16 – fully funded

• Retain min TWO years of
• perational liquidity at all times
• Maintain strong banking

relationships

• Will never issue

non-accretive new equity

• Additional vessels

must on pro-forma basis either match

• r reduce break

even costs

• Distribute regularly excess cash to

shareholders

2 3

Strong balance sheet Leverage

• Maintain strong balance sheet

through cycle

• Target 30% to 50% leverage

according to where we are in the cycle

1

22

Euronav Positioned for Powerful Cash Generation

Notes: 1. Based on full year contribution of 57 ships on proportionate basis’ 2. Proportionate consolidation method 3. P&L definition

W ELL POSI TI ONED FOR STRONG CASH FLOW GENERATI ON

Returns to Shareholders Return 8 0 % of net income to shareholders (3) Fixed I ncom e > USD 1 0 0 m illion of EBITDA (2) generated annually from fixed income contracts (FSO + TC contracts) Breakeven ( including debt service) :

~ USD 2 7 ,3 0 0 / day for VLCC – OpEx / day USD 8 ,1 6 5 ~ USD 2 4 ,0 0 0 / day for Suezmax – OpEx / day USD 7 ,5 2 0

264 339 493 650 1,092

500 1,000 1,500 + $5,000 per day + $15,000 per day + $25,000 per day + $55,000 per day

Each USD 5 ,0 0 0 uplift ( above breakeven) in both VLCC and Suezm ax rates im proves net revenue and EBI TDA by

USD 7 2 MM

PRO FORMA FLEET EARNI NGS CAPABI LI TY

( EBI TDA, $ MM) ( 1 )

VLCC TCE RATES $25,000 $30,000 $40,000 $50,000 $80,000 SUEZMAX TCE RATES $20,000 $25,000 $35,000 $45,000 $75,000

Next 1 2 Months Spot Days Exposure = 1 4 ,3 4 1 Days

($MM)

1 2 3

23

Section 5

Supplemental Materials

22

24

Appendix - Ton mile dynamic – still more to deliver

Europe U.S. LatAm West Africa Middle East Asia

Source Morgan Stanley

• TRADE ROUTES NOW SET FROM ATLANTI C BASI N TO FAR EAST
• REPEAL USA EXPORT BAN OPENS NEW MARKET TO TANKER SHI PPI NG
• I RAN – POTENTI AL SHORT TERM BENEFI T FOR COMMERCI AL FLEET AS I RAN RE-ENTERS GLOBAL MARKETS

USA: infrastructure spend required to fully facilitate US exports ($1-4bn) China domestic production likely peaked 2015 – more imports required Key routes established Iran impact neutral WAF to Europe likely displaced by USA exports Existing heavy Saudi/ Iraqi to complex US refinery

25 Ton Miles

3

Appendix – Supply Manageable

MOST TANKER OW NERS HEAVI LY EXPOSED TO OTHER SHI PPI NG

I ranian VLCC fleet total 4 0 Only net 1 5 VLCCs to re- enter global com m ercial fleet

I RANI AN FLEET RE-ADMI TTANCE TO GLOBAL FLEET – NEUTRAL I MPACT

17 VLCCs trading during sanction to China, Turkey, India, Taiwan Syria, S Korea and Japan 4x2013, 4x2012, 6x2008, 1x2007, 2x2004 7 VLCCs been on storage 3x2013, 1x2012, 2x2009, 1x2008 8 VLCCs been on storage near 3rd special survey 5x2003, 3x2002 8 VLCCs full tim e storage 1 9 9 3 -1 9 9 9 vintage

26

Source Citi Source Clarksons

ORDER BOOK AS % OF FLEET – MANAGEABLE

Source Clarksons

20 56 31 39 24 52 29 25 30 39 37 10 49 29 36 8 63 18 27 16 13 10 20 30 40 50 60 70 0-5 Years 5-10 Years 11-15 Years 16-20 Years +

Source Clarksons

AGE PROFI LE OF VLCC FLEET – SCRAPPI NG TO RI SE 2 0 1 8 +

(# of Vessels)

= 1 1 1 = 1 6 0 = 1 9 4 = 1 8 6

Supply of Vessels

4

10 20 30 40 50 60

2000 2002 2004 2006 2008 2010 2012 2014 2016 VLCC Suezmax

100 200 300 400 500 600 700 800 900 1000 Suezmax Aframax Product Dry Bulk Container 1-5 VLCCs owned (120) 5-9 VLCCs owned (11) 10-14 VLCCs owned (9) 15-19 VLCCs owned (3) 20+ + VLCCs owned (9)

m illion USD

Special Survey #1 Special Survey #2 Special Survey #3 IS Dry #4 SS #5

cost $1.5m $2m $2.5m $3.25m $4m 5 year 10 15 17.5 20 22.5 25 Ye a r s TANKER SHI PPI NG – A HI GHLY REGULATED I NDUSTRY

Appendix – Cost of Dry-Dock by Age Profile

Costs of surveys increase during tanker life leading to scrapping decision

Average cumulative survey cost (17.5  21 years) = USD 7.25 mm Median scrap age = 20 years

27

Reduction in available markets for vessels and reduced utilization

Supply of Vessels

4

SPECULATI VE SHI PPI NG*

2 12 3 3 31 3 4 2 5 9 17 3 6 5 2 9 1 8 1 12 1 3 9 3 23 2 16 1 23 1

• 45
• 40
• 35
• 30
• 25
• 20
• 15
• 10
• 5

5 10 15 20 25 30 35

Num ber of vessels delivered

≥20 years old ≥17.5 years old ≥15 years old

2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9

Appendix - Order Book – Logical Fleet Renewal Suezmax

ORDERS FROM I NDUSTRI AL SHI PPI NG ARE DI FFERENT THAN ORDERS FROM SPECULATI VE SHI PPI NG

Supply of Vessels

4

National Oil Companies Traditional Ship Owners Chinese Ship Owners

13 13 2 4 6 8 10 12 14 2016 2017 2018 2019 Num ber of vessels delivered

* including independent owners backed by private equity

28

Source: Clarckson Source: Clarckson

Appendix – Seasonality – VLCC rates

29

20,000 40,000 60,000 80,000 100,000 120,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

$ USD / Day

VLCC Earnings 2 0 0 9 -2 0 1 6

Minimum 2009-2014 Maximum 2009-2014 2015 2016 29