The Odfjell Group Company presentation August 2013

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1 The Odfjell Group Company presentation August 2013

2 Agenda Company overview Business segments Financials Summary Q&A session 2

3 Company overview Odfjell history in brief Established in 1914 by the Odfjell family Odfjell SE is celebrating 100 years anniversary next year Pioneered the chemical tanker trade in the 1950 s Tank terminals since the 1960 s Publicly listed in 1986 at Oslo Stock Exchange Merged with Seachem in 2000, addition of 20 vessels and newbuilding contracts Acquisition of Odfjell Terminals (Rotterdam) in 2000, 1.6 million cbm storage capacity Entry into the gas segment with the acquistion of two LPG/Ethylene vessels in 2012 Partnership with Lindsay Goldberg LLC in 2011 and

4 GAS DEEP-SEA SHORT-SEA TERMINALS Company overview One of the world s largest chemical tanker company Asia /Pacific 9 vessels South America 5 vessels Europe 12 vessels 13 partially owned, 4.5m cbm (2 greenfield projects) 12 related parties, 0.8m cbm 63 vessels 2 vessels About 90 vessels in the Odfjell fleet 4

5 Company overview Global organization - 3,500 employees per 31 December 2012 Head office (224) International branch offices (257) Tank terminals (891) Ship crew international (1,881) Ship crew Norwegian (287) Extensive international network with offices in 20 countries 5

6 Company overview The Odfjell world - global and regional trade Flexibility and market intelligence The right ship at the right place at the right time Customers are blue chip oil and chemical companies 6

7 Company overview Organizational structure President/CEO Jan A. Hammer CFO/SVP Terje Iversen SVP/Corp. Invm. Tore Jakobsen SVP/QHSE Toralf Sørenes SVP/Corp. Serv & Support Harald Fotland SVP/Ship Management Helge Olsen SVP/Operations & Chartering Morten Nystad SVP/Odfjell Gas Knut Holsen Interim President/Odfjell Terminals Jan A. Hammer 7

8 Company overview Board of directors Laurence W. Odfjell Executive Chairman Åke H. Gregertsen Board member Irene Waage Basili Board member Jannicke Nilsson Board member Bernt Daniel Odfjell Board member Christine Rødsæther Board member 8

9 Company overview Shareholder structure Controlled by Laurence W. Odfjell (Chairman) and related party 32% Norw egian funds 19% Others 49% Norwegian shareholders 49% International shareholders 51% 9

10 Company overview From producer to consumer Tank terminal Chemical tanker Tank terminal Refining Raw materials Intermediate products and fuel Finished products Clean Petroleums Product (CPP) Gasoline, jetfuel, naphta, etc Oil and gas Organic chemicals, e.g. methanol, xylene, styrene Plastic converters, fibres Minerals Inorganic chemicals, e.g. acids and caustic soda Specialty chemicals Coatings, adhesive Textiles, packaging, electrical, automotive, building materials, etc, etc Agriculture Vegetable oil and animal fat and/or petrochemicals Detergents, edible oils, bio fuel spirits/wine Home use and personal care, green energy Production Products for everyday use 10

developed globally Synergies between our ships and tank terminals improves the quality and efficiency in our service

11 Business segments Odfjell s core fleet Transportation of chemicals and other bulk liquids An unprecedented experience in complex transportation Fully integrated in-house functions for chartering, operation and ship management Managed and developed globally Synergies between our ships and tank terminals improves the quality and efficiency in our service Strong name recognition 13WP 8WP 7WP 6WP 13WS 8WS 7WS 6WS Chemical tanker vs ordinary tanker 6W 5W 4W 3W 2W 1W 6P 5P 4P 3P 2P 1P 11

12 Business segments Total Odfjell fleet 2.2 million DWT Owned 1.2 Million DWT The largest fleet of large advanced stainless steel vessel Average acquisition price below USD 70 million Current newbuilding price USD 100 million? Very few yards willing and able to build these vessels Time Charter/ Comm.Mgmt 1.0 Million DWT 12

13 Business segments Odfjell customers 13

14 Business segments The major players - share dwt of deep-sea core chemical tanker fleet Other majors 21.0% Others 22.0% Nordic Tankers 4.4% MISC 5.3% Odfjell 12.7% Navig8 Chemicals 5.5% Stolt-Nielsen 12.9% Milestone 7.8% Fairfield/Iino 8.3% Total fleet: 626 units 15,667 DWT Definition: Minimum 13,000 DWT IMO II Average tank size less than 3,000 cbm Minimum 6 cargo tanks Commercially operated/ controlled by recognised chemical tanker operator or Chemical tanker with more than 50% of total capacity stainless steel 14

15 Business segments Core Chemical Deep-sea Fleet Orderbook and estimated demolition per August 16th, 2013 '000 Dwt 2,000 % of year-start fleet 15.0% 1,600 1,200 Average annual net growth: : 8.0% : 1.1% 12.0% 9.0% % % % -3.0% -800 Deliveries Actually demolished Net fleet growth Orderbook Estim. vessel outphasing -6.0% Source: Odfjell FLEETBASE * Outphasing 30 years (Europe built) and 25 years (Asian built) 15

16 Business segments Chemical Tanker Demand Mill. Dwt Average annual growth: : -1.2 % : 3.1 % Source: Drewry Shipping Consultants, 2013Q1 16

and broker community are often the same as within chemical tanker market We have know how

17 Business segments Odfjell Gas Carriers Background/Status Have bought two second hand LPG/Ethylene carriers with ambition to grow Related to chemical tanker market Customers and broker community are often the same as within chemical tanker market We have know how and competence related to this segment Growth by newbuildings, 2 nd hand purchases or partnerships 17

Business segments Odfjell terminals Partnership with Lindsay Goldberg has positioned us for substantial growth in the next years Further develop our global network of chemical and mineral oil

18 Business segments Odfjell terminals Partnership with Lindsay Goldberg has positioned us for substantial growth in the next years Further develop our global network of chemical and mineral oil terminals Operate world-class terminals, with focus on sophisticated chemicals Maximize operational and commercial synergy between shipping and terminals Assist our customers in opening up new markets by investing in logistic infrastructure Operate terminals with a focus on high standards for QHSE 18

19 Business segments A global tank terminal network Europe Terminal: Ownership: Antwerp 12.75% Rotterdam 51% Terminal: Americas Ownership: Houston 51% Charleston 51% Quebec - South America Related terminals Quebec Charleston Houston Callao San Antonio Ow ned/operated by Odfjell - Teresina Sao Luis Corumba Santos Triunfo Rio Grande Campana Buenos Aires Rotterdam Antwerp BIK Sohar Dalian Jiangyin Ulsan Ningbo Tianjin Quanzhou Singapore Middle East Terminal: Ownership: Sohar, Oman 15.17% BIK, Iran 35% Asia Terminal: Ownership: Dalian 25.5% Jiangyin 28.05% Ningbo 12.5% Tianjin 24.99% Quanzhou 25.5% Ulsan 25.5% Singapore 25.5% 19

20 Cubic Metres`000 Business segments Tank terminal capacity 1,800 Total capacity in CBM (incl. related parties): Current capacity 5,310,291 Ongoing expansions 489,291 1,600 1,400 1,200 1, Mineral oil storage Chemical storage Ongoing expansions * Odfjell s ownership share in the respective tank terminals is shown in percentage 20

21 Business segments Tank Terminal Development projects completed or under construction June 2012 acquisition of 25% share of Noord Natie Terminals, project to expand the capacity with 50,000 cbm Oman - 27,300 cbm expansion has been completed in July 2012 Odfjell Terminals Houston a new bay of 30,000 cbm The Charleston Terminal project is on course to become operational in Q The construction of the terminal in Nangang in China is 30% completed Odfjell Terminals has acquired a 50% equity share in Fujian Fangtong Terminals, China Odfjell Terminals has entered into a Letter of Intent to purchase Chem-Marine Corporation Odfjell Terminals Europe and Grand Port Maritime du Havre (GPMH) have signed a Site Reservation Protocol for a plot of land in the Port of Le Havre to develop a bulk liquid terminal 21

22 Business segments Finalizing transaction with Lindsay Goldberg The previous announced transaction has now been closed Lindsay Goldberg aquires 49% interest in Odfjell Terminals AS (OTAS), the holding company for substantially all of Odfjell s tank terminal activities Capital increase of USD 219 million in OTAS All tank terminal assets will be owned by OTAS Odfjell is expected to realize a book gain of USD million Our tank terminal division is now poised for a strong growth in the years to come 22

23 Financials Income statement - First quarter 2013 USD mill 1Q13 4Q12 Gross revenue Voyage expenses (122) (130) TC expenses (44) (43) Operating expenses (68) (72) General and administrative expenses (32) (35) Operating result before depr. (EBITDA) Depreciation (31) (34) Capital gain/loss on fixed assets (1) (7) Operating result (EBIT) (6) (23) Net finance Taxes Net result (6) (19) (2) 3 (13) (40) 23

24 Financials Balance sheet USD mill - Assets Ships and newbuilding contracts Tank terminals and intangible assets 548 Other non-current assets/receivables 163 Total non-current assets Available-for-sale investments and cash 133 Other current assets 193. Total current assets 325 Assets held for sale 223 Total assets Equity and liabilities Total equity 832 Non-current liabilities and derivatives 142 Non-current interest bearing debt Total non-current liabilities Current portion of interest bearing debt 243 Other current liabilities and derivatives 157 Total current liabilities 400 Liabilities held for sale 129 Total equity and liabilities Cash balance of USD 133 million + USD 18 million cash in «held for sale assets» Available drawing facilities USD 14 million pluss substantial drawing facilities allocated to specific investments projects in the tank terminal joint ventures Equity ratio decreased to 32.7% compared to last quarter due to clearing of total return swap, mark to market variations in hedging positions and an equity correction LG transaction will further strengten the liquidity 24

25 USD mill USD mill Financials Debt development Secured financing of the jetty project at Odfjell Nangang Terminals (Tianjing) with a Chinese bank Refinaning of OTR in good progress Continuing discussions with banks regarding financing of newbuilding program in Korea Drawdown of USD 100 million in first quarter attributable to payment of maturing balloons on loans, retroactive Norwegian tonnage tax, funding of newbuildings and TRS and interim funding of Odfjell Terminal (Rotterdam) 1,400 1,200 1, Debt Portfolio Planned Debt Repayments Q Q Ending balance Repayment Secured loans Balloon Leasing NOK bond 09/13 NOK bond 12/15 NOK bond 12/17 25

Financials Capital expenditure programme Odfjell s share In USD mill Per 1Q13 2014 2015

purchase 30 Docking 20 27 27 27 Terminals 1) 140 83 51 24 2 Total 219 220 78 51 2 1)

26 Financials Capital expenditure programme Odfjell s share In USD mill Per 1Q Daewoo, 1 x 75,000 DWT 13 Hyundai Mipo, 4 x 46,000 DWT nd hand purchase 30 Docking Terminals 1) Total ) Planned not commited From the naming ceremony of Bow Nangang, the last of three vessels from Chuandong 26

27 Summary Summary Slightly better chemical tanker market and stable terminal earnings Final agreement signed with Lindsay Goldberg Positioned for growth in both the tanker and tank terminal sector 2nd quarter results 2013 is to be released at 08:00 23 August

28 Q&A session Thank you For more information please visit our webpage at 28

First Quarter 2013 Results Oslo 7 May 2013

First Quarter 2013 Results Oslo 7 May 2013 First Quarter 213 Results Oslo 7 May 213 Agenda Highlights Financials Operational review Market update and prospects Summary Q&A session 2 1 Highlights Highlights EBITDA of USD 27 million reflects a slightly