Hunter Group ASA · OSL:HUNT

Hunter Group ASA — Investor Presentation (September 2020)

15 slides from Hunter Group ASA's investor presentation, Sep 9, 2020

  1. Slide 1: Hunter Group ASA - Company Presentation 9 September 2020

    Hunter Group ASA - Company Presentation 9 September 2020 Save a tree – presentation can be found at www.huntergroup.no

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements CERTAIN STATEMENTS INCLUDED IN THIS DOCUMENT CONTAIN FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING PLANS, OBJECTIVES, GOALS, STRATEGIES, FUTURE EVENTS OR PERFORMANCE, AND UNDERLYING ASSUMPTIONS AND OTHER STATEMENTS, WHICH ARE OTHER TH

  3. Slide 3: Hunter Group ASA – A publicly traded investment company

    Hunter Group ASA – A publicly traded investment company Company overview Top 10 shareholders (as of 8 September 2020) Investor Shares (m) Ownership Apollo Asset Ltd. Other shareholders Apollo Asset Limited 169 29% Sundt AS 46 8% Songa 40 7% ~29% ~71% Swap Invest 16 3% BNP Paribas Securities 15 3% No

  4. Slide 4: Key events past twelve months

    Key events past twelve months Q4 ’19 – Q2 ‘20 financial highlights • Delivery of Hunter Atla Q4’19 Q1 ‘20 Q2 ‘20 Q3 2019 • Financed first three vessels with USD 180m sale and Pool days 181 277 197 leasebacks to avoid equity issuance and shareholder dilution TC days - 12 191 Offhire/startup days 44 1

  5. Slide 5: Approaching industry leading cash breakeven levels

    Approaching industry leading cash breakeven levels Historical and expected cash breakeven levels USD/day # vessel days Avg. cash breakeven Vessel days 30,000 700 25,000 27,500 600 24,300 500 20,000 22,500 21,100 21,450 20,500 400 15,000 300 10,000 200 5,000 100 - - Q4 '19 Q1 '20 Q2 '20 Q3 '20 est. Q

  6. Slide 6: Remember the fuel savings…

    Remember the fuel savings… Cash breakeven breakdown (USD/day) 950 3,700 5,000 7,600 21,450 20,500 2,800 400 600 15,500 6,350 Opex & ins. Run rate TI Sale Bank Bank Cash Laga refi. PF cash Scrubber & Market cash G&A pool cost leaseback amort. interest breakeven effect breakeven fuel savings benchmark

  7. Slide 7: Robust rate coverage through current market weakness

    Robust rate coverage through current market weakness USD/d 70,000 66% covered 60,000 50,000 100% covered* 40,000 63,750 30,000 42,075 20,000 25,250 10,000 21,450 17,200 12,200 - Q4 '20 est. cash Hunter coverage H2 ‘20 FFA market H2 '20 Current market Current market breakeven (Hunter vessels**) (Benc

  8. Slide 8: High degree of flexibility with nimble fleet size

    High degree of flexibility with nimble fleet size Current charter coverage Q2 '20 Q3 '20 Q4 '20 Q1 '21 Hunter Atla TC Spot Hunter Saga Spot Hunter Laga TC Spot Hunter Freya Spot Hunter Disen Construction TC Spot Hunter Idun Construction TC Spot Hunter Frigg Construction TC Spot 8

  9. Slide 9: Volatile?

    Volatile? Benchmark VLCC spot rates: TD3C MEG - China COSCO sanctions and Saudi Abqaiq attacks USD/day 300,000 Oil price war causing buying USD/day spree and contango driven floating storage 100,000 250,000 90,000 Chinese new year and 80,000 Seasonal strength 26 COSCO VLCCs 200,000 and scrubber offh

  10. Slide 10: The world will still need increasing amounts of oil

    The world will still need increasing amounts of oil World oil consumption Mbd 110 100 90 80 70 60 50 40 Source: EIA, Company 10

  11. Slide 11: Oil market balance normalizing sooner than expected

    Oil market balance normalizing sooner than expected Mbd Days OECD inventory forward days coverage Total World Production Total World Consumption 105 95 90 100 85 80 95 75 90 70 65 85 60 80 55 Jan 19 Apr 19 Jul 19 Oct 19 Jan 20 Apr 20 Jul 20 Oct 20 Jan 21 Apr 21 Jul 21 Oct 21 • Trough monthly avg. de

  12. Slide 12: Record fiscal stimulus and rebounding global PMIs

    Record fiscal stimulus and rebounding global PMIs Top ten COVID-19 fiscal stimulus responses (USDbn) USDbn Share of 2019 GDP: • Combined US, Japan and China stimulus 3,000 13% 21% 7% 9% 16% 12% 7% 11% 5% 5% close to USD 5 trillion or ~12% of GDP 2,821 2,500 2,000 1,500 • Close to USD 7 trillion of f

  13. Slide 13: VLCC fleet structure limiting prolonged downturn

    VLCC fleet structure limiting prolonged downturn VLCC orderbook and scrap candidates Scrap prices* have rebounded 80 Fleet OB Turning 15-20 yrs Turning 20+ yrs Scrapped $/ldt 60 500 45k lightweight tonnes = 40 450 $16.2m scrap value 68 24 65 58 53 49 50 47 400 20 38 36 36 39 39 27 29 31 28 31 27 360

  14. Slide 14: AUSTE

    AUSTE =c eo Ru = =° bat Southern

  15. Slide 15: Hunter Group ASA

    Hunter Group ASA Org. nr. 985 955 107 Dronningen 1 0287 Oslo, Norway +47 975 31 227 info@huntergroup.no

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