Odfjell SE DNB Oil, Offshore & Shipping Conference 2019 - PowerPoint PPT Presentation

Odfjell SE DNB Oil, Offshore & Shipping Conference 2019 Kristian Mørch, CEO

Agenda Odfjell at a glance Odfjell Tankers Odfjell Terminals Chemical Tanker Market outlook Summary

Odfjell SE More than 100 years of experience within the shipping industry Core business is shipping and storage of bulk liquid chemicals  Headquarters in Bergen, Norway with offices in 18 countries worldwide   One of the world’s largest operator of chemical tankers  «Supersegregators» are our core assets in tankers  Global network of chemical tank terminals Listed on Oslo Stock Exchange since 1986  Odfjell shares trades at a P/BV of 0.45x with a market cap of USD 270m 

Odfjell Tankers Odfjell Terminals Market outlook Summary Odfjell at a glance We have in recent years reshaped our business, and are today significantly more competitive and efficient Our future focus: Key milestones 2015-2018: Tankers: From growth and renewal to quality of service • 31 various vessel transactions concluded in 2018 Cost savings of USD 109 • 9 vessels set for delivery in 2019 and 2020 109 mill Operational excellence G&A OPEX Exit trades Bunker costs Total • Continue improvement programs in Odfjell Tankers -7% • Focus on synergies between Tanker and Terminal division Saved 900 revenue days through port 100% 94% 93% efficiency program Terminals – Back to profit • Restructure and develop our tank terminal division Benchmark Target Actual • Grow our Houston terminal 9 9 Renewed and grown 100 Financial strength 91 fleet at bottom of 82 cycle • Maintain our strong balance sheet 4Q 18 fleet Remaining Implied Potential Target fleet size • Be able to act if attractive opportunity arises newbuilds fleet size additions Cash proceeds Equity gains 100 Capital Allocation Restructured Tank 100 135 terminal division 344 153 Investments: Look at growth opportunities in Houston • with material gains 6 1 80 Dividends: Target attractive dividends (market dependent) • 85 44 Deleverage: Reduce our debt levels (market dependent) • Oman Exir Spore Rdam Total Oman Exir Spore Rdam Total

Odfjell Tankers Odfjell Terminals Market outlook Summary Odfjell at a glance Our EBITDA has improved in recent years despite more challenging markets, and our competitiveness means significant upside when markets improve EBITDA per division, USD million: Odfjell Tankers EBITDA for every USD1,000/day change in rates: 316 433 406 286 379 74 352 2008-2018 238 325 95 Average 298 47 271 191 182 244 169 166 157 40 217 190 135 38 117 109 163 242 24 110 96 96 22 136 93 191 188 27 147 125 109 98 97 73 66 61 59 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 +1000 +2000 +3000 +4000 +5000 +6000 +7000 +8000 +9000 +10000 +11000 +12000 LPG/Ethylene Tank terminals* Chemical tankers Source: Odfjell * 2017 and 2018 EBITDA reduced by USD 8 mill and USD 10 mill, respectively due to sale of Oman and Singapore

Agenda Odfjell at a glance Odfjell Tankers Odfjell Terminals Chemical Tanker Market outlook Summary

Odfjell Tankers Odfjell Terminals Market outlook Summary Odfjell at a glance Our vessels are sophisticated and built for serving very complex and demanding trades, with multiple parcels of highly specialized chemicals Basic chemical tanker Supersegregator  Standardized and cost efficient  Tailor-made and responsive  Scale effect on basic equipment across similar ships  Complex and flexible equipment  Experienced crew with cost focus  Experienced crew with cost focus, comprehensive technical competencies and training  61% of balance sheet in Odfjell Tankers

Odfjell Tankers Odfjell Terminals Market outlook Summary Odfjell at a glance At the heart of global trade  Odfjell is one of few that operates in a truly global system with frequent sailings in all major trade lanes  Odfjell is a critical part of the logistic chain for the chemical industry  No single customer accounts for more than 10% of our freight revenue  Significant number of “evergreen” contracts where key parameters are renewed annually  Our target is to have 55% - 65% of our freight revenue from contract cargoes  We differ from other tanker trades by operating mainly in a fixed liner pattern

Odfjell Tankers Odfjell Terminals Market outlook Summary Odfjell at a glance The industrial nature of our business and a high contract coverage lead to less volatility to our top line Odfjell Tankers contract coverage: Odfjell TCE rates vs Clarksons chemical tanker spot index: 145 140 COA coverage 90% 135 Average Odfix index 80% 130 Odfix average 2008-2017 125 70% 120 59% 115 60% 110 105 50% 100 40% 95 90 30% 85 80 Chemical tanker spot earnings index (midcycle = 100) 20% 75 Source: Clarkson Platou 70 10% 65 60 0% 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Our TCE rates have historically generated higher highs and higher lows than standard chemical tankers and product tankers. This is driven by: 1. Our contract portfolio, a crucial part of our operations considering our assets and the way we operate them 2. Share of higher paying speciality chemicals carried onboard our vessels 3. Our ability to swing into CPP trade if rates are strong with our flexible fleet. This again improving our bargaining power versus chemical producers 4. Global platform enabling us to service every customer’s needs in any part of the world 5. Access to our tank terminal platform, our strong brand name and history serving the chemical industry

Odfjell Tankers Odfjell Terminals Market outlook Summary Odfjell at a glance Our recent tonnage renewal and growth initiatives are done at what looks like an attractive point on the asset curve… 195 1 Newbuildings • Ordered six newbuildings at Hudong Shipyard 190 • Delivery between July 2019 and September 2020 185 • Values for similar vessel are up 15% since our orders 180 2 Long-term TC 175 • Two newbuildings concluded on long-term Timecharter 170 • Vessels were delivered in October 2018 and January 2019 • Replacing chartered vessels at 20% lower charter-in rate 165 160 Long-term BB 3 • Two newbuildings concluded on long-term Bareboat 155 • Delivery in December 2019 and July 2020 150 • Replacing chartered vessel at 20% lower rate and growth 145 4 CTG transaction 140 • Acquired 5 vessels and formed a pool with 5 CTG vessels 135 • All vessels have been delivered and are now operated by Odfjell • Purchase options on CTG vessels and receive profit splits 130 125 Sinochem transaction 5 • 4 vessels on long-term BB and formed a pool with 4 SC vessels 120 • Purchase options and profit splits on SC vessels 115 • BB rates secured 30% below comparable charters in our fleet 110 jan- jan- jan- jan- jan- jan- jan- jan- jan- jan- jan- jan- jan- jan- jan- jan- 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Investment timing secures attractive returns also in weak markets Clarksons newbuilding index Source: Clarksons Platou, Odfjell

Odfjell Tankers Odfjell Terminals Market outlook Summary Odfjell at a glance ..and the improvements in our portfolio have also lowered our costs and increased our efficiency and unit cost Fleet development 2018: New tonnage is significantly more efficient: Bunker consumption (tons) 10 -20.0% Bunkers -14.3% -13 8 82 77 35 9 (+9) 28 24 Bow Heron Bow Kiso Old supersegregator Retrofitted New supersegregator 18 (-11) 29 Bow Sagami + supersegregator Celsius Manhattan Celsius Monaco 9 (+4) Celsius Mayfair Cargo space (Cubic meter) Cargo space 5 Celsius Miami Gion Trader Southern Jaguar 54,600 Southern Ibis 40,000 Horin Trader Kristin Knutsen 46 (-) 43 Celsius Mumbai CBM old supersegregator CBM new supersegregator = Unit cost improvements Ext. Pool TC BB Own 32% Fleet Dec 2017 Sinochem Other fleet Redeliveries Fleet 2018 Unit costs vessels additions (EoY) We redelivered 13 chartered vessels in 2018, a year where we concluded as many as 31 vessel transactions both in and out of our fleet Old supersegregator New supersegretator

Agenda Odfjell at a glance Odfjell Tankers Odfjell Terminals Chemical Tanker Market outlook Summary

Odfjell Tankers Odfjell Terminals Market outlook Summary Odfjell at a glance Odfjell Terminals (51% owned by Odfjell SE) A global tank storage service provider: Our terminals connect sea and land at strategic locations, providing safe and efficient storage for vital liquids, chemicals, and oil. 7 operational, part owned tank terminals at strategic international hubs 553 storage tanks 1.5 million cbm storage capacity 1 terminal project