Slide 1: Earnings Call Q4 2021
EURO! EARNINGS CALL Q4 2021
Slide 2: Forward Looking Statements
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
Slide 3: Content
CONTENT 1. Q4 2021 HIGHLIGHTS 2. TANKER MARKET 3. ACCOUNTING CHANGES 4. CONCLUSION 5. Q&A 3
Slide 4: Q4 Highlights
Q4 HIGHLIGHTS © EURONAY.
Slide 5: Highlights Q4 2021
HIGHLIGHTS Q4 2021 25.000 P&L VLCC • Impact of Omicron variant defers freight rate recovery Q4 20 20.000 • Recovery thesis intact and strongly supported by fundamentals • Residual value approach updated USD / Day 15.000 • Leverage at 48% with USD 708 million available liquidity Q4 21 • 16 dry dockin
Slide 6: Tanker Market
AQUITAINE TANKER MARKET | @euRGNav.
Slide 7: Crude Demand – Four Key Drivers
CRUDE DEMAND – FOUR KEY DRIVERS Demand to recover with > 4 m bpd growth in 2022 Tankers geared to demand 1m bpd = 30 VLCC 105 892 900 880 100 847 860 IEA demand m bpd VLCC fleet total 840 95 820 790 800 90 780 85 760 740 80 720 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Source: IEA, Platts 19 20 20 20 2
Slide 8: Tanker Supply - Headwinds but Visibility
TANKER SUPPLY - HEADWINDS BUT VISIBILITY VLCC survey cycle heavy in 2022 – 10% of fleet over 17.5 years Vessel supply - Implies 60-80 excess VLCCs based on 2019 demand 30 12% 105 892 900 No of VLCC due special survey Cumulative % of fleet due SS 25 10% 880 100 847 860 IEA demand m bpd 9 VLCC fleet t
Slide 9: Accounting Changes
ACCOUNTING CHANGES | @euRap
Slide 10: Accounting Changes: Depreciation Residual Value Update
ACCOUNTING CHANGES DEPRECIATION: RESIDUAL VALUE (RV) UPDATE Historical approach Approach to smooth volatility Future approach • 20-year straight line to zero 700 Bangladesh • Apply constant residual value residual value India Pakistan based on 4 year moving • Different to peers @24 years to 600 4 ye
Slide 11: P&L Reclassification & Preparation for Higher Rate Cycle
P&L RECLASSIFICATION & PREPARATION FOR HIGHER RATE CYCLE Accounting adjustments to improve financial transparency & comparability Items AS-IS TO-BE KUSD 2021 Before shifts 2021 After shifts TI POOL Admin fees G&A reduction in revenues Shipping income 447.1 430.0 1 Operating expenses -361.7 -344.60 2
Slide 12: Conclusion
CONCLUSION | @euror
Slide 13: Share for Share: Euronav Platform Strongly Positioned
SHARE FOR SHARE EURONAV PLATFORM STRONGLY POSITIONED Competitive Operational Strong liquidity with low Low entry point amongst Platform* leverage tanker stock universe * USD Per day per ship Liquidity as % of market cap 10 EURN Peer 2 Peer 1 Peer 3 10.000 9.509 1000 8.746 9 9.000 800 2.003 8.000 1.3
Slide 14: Euronav Platform: Clear Focus, Low Costs & Operational Leverage
EURONAV PLATFORM CLEAR FOCUS, LOW COSTS & OPERATIONAL LEVERAGE • Fully integrated tanker platform Best in class operational structure • Low cash breakevens VLCC $11.1k • Core VLCC fleet 6.9 years old Largest VLCC & Suezmax fleet • 41x VLCC & 22x Suezmax Eco-vessel fleet renewal & sustainability at •
Slide 15: Summary: Through Cyclical Bottom but Recovery Deferred
SUMMARY THROUGH CYCLICAL BOTTOM BUT RECOVERY DEFERRED Demand for Supply Ton miles Vessel Supply Euronav Oil of Oil Balance sheet Stalled in Q4 Output growth To grow 2022 Limited new LTV 48% but expect post turning into as supply rises supply post Liquidity Omicron exports 1h 22 $790m recovery Change
Slide 16: Q&A
Q&A 16
Slide 17: Thank You
THANK YOU | @euRonav.