Cmb.tech Nv · EURONEXT:CMBT

Cmb.tech Nv — Euronav — Shareholder Meeting (May 2019)

43 slides from Cmb.tech Nv's shareholder meeting presentation, May 2019

  1. Slide 1: AGM Presentation

    AGM PRESENTATION C E O H U G O D E S TO O P M AY 2 0 1 9

  2. 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

  3. Slide 3: Agenda

    AGENDA 1. EURONAV THE LARGEST TANKER PLATFORM 2. 2018 REVIEW PREPARING FOR THE TANKER CYCLE 3. POSITIVE SIGNALS 4. STRATEGY & OUTLOOK 5. Q&A 3

  4. Slide 4: Euronav – The Largest Quoted Tanker Platform

    EURONAV THE LARGEST QUOTED TANKER PLATFORM 4

  5. Slide 5: Euronav – Who We Are

    EURONAV – WHO WE ARE The world’s largest, independent quoted crude tanker platform 43 VLCC 25 SUEZMAX International company – internationally connected (9 May 2018: 28 VLCC) (9 May 2018: 22 Suezmax) 20% 16% 28% Av Age 44% Av Age Headquarters in Antwerp 10.2 Yrs 20% 6.6 Yrs 28% 44% 0 - 5 yrs 6-10 yrs

  6. Slide 6: Euronav – Capital Discipline

    EURONAV – CAPITAL DISCIPLINE MAINTAIN STRONG BALANCE SHEET 1 LT TARGET LEVERAGE AROUND 50% & LIQUIDITY RUNWAY FOR TWO YEARS MAINTENANCE CAPEX DIVIDEND DISCRETIONARY NON- $30M MAINTENANCE CAPEX FIXED DIVIDEND USD 12c PER YEAR 2 ON DRY DOCK & REGULATORY CAPEX PAID 50% IN MAY & SEPT eg ballast water sy

  7. Slide 7: Euronav – Only as Strong as Our People

    EURONAV – ONLY AS STRONG AS OUR PEOPLE Investment in People Investment in Growth Euronav fleet expansion 2002 to today 72 8 2002 2018 7

  8. Slide 8: 2018: Preparing for the Tanker Cycle

    2018 PREPARING FOR THE TANKER CYCLE 8

  9. Slide 9: Euronav 2018 – Challenging Market

    EURONAV 2018 – CHALLENGING MARKET BUT IDEAL TO BE COUNTER-CYCLICAL In USD million Q1 Q2 Q3 Q4 Full Year EBITDA 30.7 68.2 50.9 108.8 258.6 Net Income -39.1 -12.4 -58.8 0.3 -110.0 EPS c per share -0.24 -0.06 -0.27 0.00 -0.57 SHAREHOLDER RETURNS LIQUIDITY ON BALANCE SHEET 1 2 12c per share dividend & s

  10. Slide 10: Preparation for the Cycle

    PREPARATION FOR THE CYCLE REQUIRES TIMING AND EXPERIENCE VLCC rates Newbuild VLCC prices 120,000 110 Maersk (19 vessels) Gener8 (21 vessels) 105 100,000 100 Value of newbuild VLCC $m 80,000 VLCC freight rates 95 60,000 90 40,000 85 20,000 80 0 75 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Sou

  11. Slide 11: Recycling – The Key Feature of 2018

    RECYCLING – THE KEY FEATURE OF 2018 Global fleet rebalancing sets stage for tanker market recovery 50 45 43 No of VLCC equivalents recycled during year 40 35 30 25 19.5 20 20 19.5 20 15.5 15 12 11.5 10 7 5 4 2 2 2.5 0 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 11

  12. Slide 12: Positive Signals

    POSITIVE SIGNALS FROM THE TANKER MARKET 12

  13. Slide 13: Signal #1: US Crude Export Outlook

    SIGNAL #1: US CRUDE EXPORT OUTLOOK POTENTIAL FOR FURTHER GROWTH IN 2019 Total pipeline capacity Terminal planned export capacity 9 8 7 Million bpd US crude exports 6 5 4 3 2 1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1h 2h 1h 2h 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2022 2022 Source: Pareto 13

  14. Slide 14: Signal #1: US Crude Export Outlook

    SIGNAL #1: US CRUDE EXPORT OUTLOOK …AND INTO 2020 Total pipeline capacity Terminal planned export capacity 9 8 7 Million bpd US crude exports 6 5 4 3 2 1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1h 2h 1h 2h 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2022 2022 Source: Pareto 14

  15. Slide 15: Signal #1: US Crude Export Outlook

    SIGNAL #1: US CRUDE EXPORT OUTLOOK …AND FURTHER INTO 2022 Total pipeline capacity Terminal planned export capacity 9 8 7 Million bpd US crude exports 6 5 4 3 2 1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1h 2h 1h 2h 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2022 2022 Source: Pareto 15

  16. Slide 16: Signal #1: US Crude Export Outlook

    SIGNAL #1: US CRUDE EXPORT OUTLOOK COULD MEAN DEMAND FOR MORE THAN 150 VLCCS Total pipeline capacity Terminal planned export capacity 9 8 7 Million bpd US crude exports 6 5 4 3 2 1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1h 2h 1h 2h 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2022 2022 Source: Pareto 16

  17. Slide 17: Signal #2: Asset Prices

    SIGNAL #2: ASSET PRICES 10 year old VLCC values EURN share price $ 50 160 45 140 Euronav share price in USD 40 120 10 year old VLCC values $m 35 100 30 25 80 20 60 15 40 10 20 5 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Clarksons, Bloomberg 17

  18. Slide 18: Signal #2: Asset Prices

    SIGNAL #2: ASSET PRICES ASSET VALUES RISING & KEY FOR EQUITY VALUATION 10 year old VLCC values EURN share price $ 50 160 45 Correlation EURN share price 140 Euronav share price in USD 40 & New Build VLCC = 90+% 120 10 year old VLCC values $m 35 100 30 25 80 20 60 15 40 BUY 10 20 BACK 5 0 0 2004 2005

  19. Slide 19: Signal #2: Asset Prices

    SIGNAL #2: ASSET PRICES ASSET VALUES RISING & KEY FOR EQUITY VALUATION 19

  20. Slide 20: Signal #3: Resilient Freight Rates

    SIGNAL #3: RESILIENT FREIGHT RATES VLCC equivalents due to be delivered VLCC equivalents in DD for IMO 2020 Iranian VLCC post US waivers Recycling 30 25 20 Number of VLCC equivalents 15 10 5 0 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 -5 -10 -15 -20 Refinery maintenance programmes brought forward ahea

  21. Slide 21: Signal #3: Resilient Freight Rates

    SIGNAL #3: RESILIENT FREIGHT RATES DEMAND 3% SUPPLY 3% - VLCC $35K Q4 & Q1 VLCC equivalents due to be delivered VLCC equivalents in DD for IMO 2020 Iranian VLCC post US waivers Recycling Oil supply change 30 1.5 25 Quarterly change in global oil supply (citi) 1 20 Number of VLCC equivalents 15 0.5 1

  22. Slide 22: Signal #3: Resilient Freight Rates

    SIGNAL #3: RESILIENT FREIGHT RATES DEMAND 3% SUPPLY 3% - VLCC $35K Q4 & Q1 VLCC equivalents due to be delivered VLCC equivalents in DD for IMO 2020 Iranian VLCC post US waivers Recycling Oil supply change 30 1.5 25 Quarterly change in global oil supply (citi) 1 20 Number of VLCC equivalents 15 0.5 1

  23. Slide 23: Signal #3: Resilient Freight Rates

    SIGNAL #3: RESILIENT FREIGHT RATES DEMAND 3% SUPPLY 3% - VLCC $35K Q4 & Q1 VLCC equivalents due to be delivered VLCC equivalents in DD for IMO 2020 Iranian VLCC post US waivers Recycling Oil supply change 30 1.5 25 Quarterly change in global oil supply (citi) 1 20 Number of VLCC equivalents 15 0.5 1

  24. Slide 24: Signal #3: Resilient Freight Rates

    SIGNAL #3: RESILIENT FREIGHT RATES DEMAND 3% SUPPLY 3% - VLCC $35K Q4 & Q1 VLCC equivalents due to be delivered VLCC equivalents in DD for IMO 2020 Iranian VLCC post US waivers Recycling Oil supply change 30 1.5 25 Quarterly change in global oil supply (citi) 1 20 Number of VLCC equivalents 15 0.5 1

  25. Slide 25: Signal #3: Resilient Freight Rates

    SIGNAL #3: RESILIENT FREIGHT RATES DEMAND 3% SUPPLY 3% - VLCC $35K Q4 & Q1 VLCC equivalents due to be delivered VLCC equivalents in DD for IMO 2020 Iranian VLCC post US waivers Recycling Oil supply change 30 1.5 25 Quarterly change in global oil supply (citi) 1 20 Number of VLCC equivalents 15 0.5 1

  26. Slide 26: Signal #3: Resilient Freight Rates

    SIGNAL #3: RESILIENT FREIGHT RATES DEMAND 3% SUPPLY 3% - VLCC $35K Q4 & Q1 VLCC equivalents due to be delivered VLCC equivalents in DD for IMO 2020 Iranian VLCC post US waivers Recycling Oil supply change 30 1.5 25 Quarterly change in global oil supply (citi) 1 20 Number of VLCC equivalents 15 0.5 1

  27. Slide 27: Signal #4: IMO 2020

    SIGNAL #4: IMO 2020 POSITIVE DRIVER FOR TANKERS Likely more crude throughput More volume & new trading routes Potential crude & fuel storage 27

  28. Slide 28: Scrubbers

    SCRUBBERS \ } USD 5M CAPEX ue el

  29. Slide 29: Scrubbers – Risk/Reward Balance

    SCRUBBERS – RISK/REWARD BALANCE USD 5M CAPEX REWARD RISK 29

  30. Slide 30: Scrubbers – Risk/Reward Balance

    SCRUBBERS – RISK/REWARD BALANCE USD 5M CAPEX REWARD RISK Fuel oil spread • Operational Risk – wastewater $400 (2018) to $180 (2019) • Regulatory Risk – port bans • ESG pressure – rising • Environmental Risk – emissions 30

  31. Slide 31: Scrubbers – Risk/Reward Balance

    SCRUBBERS – RISK/REWARD BALANCE USD 5M CAPEX REWARD RISK Fuel oil spread $400 (2018) to $180 (2019) • Operational Risk – wastewater • Regulatory Risk – port bans • ESG pressure – rising • Environmental Risk – emissions 31

  32. Slide 32: Strategy and Outlook

    = © © — — — © _ = — = faa) Laded — — c= — Fs

  33. Slide 33: Prepared for the Upcoming Cycle

    PREPARED FOR THE UPCOMING CYCLE WITH COUNTER CYCLICAL INVESTMENT VLCC rates Newbuild VLCC prices 120,000 110 Maersk (19 vessels) Gener8 (21 vessels) 105 100,000 100 Value of newbuild VLCC $m 80,000 VLCC freight rates 95 60,000 90 40,000 85 20,000 80 0 75 2010 2011 2012 2013 2014 2015 2016 2017 2018

  34. Slide 34: Retain Operational Leverage to Upside.. + Contract Income

    FSO 5 year contract to 2022 RETAIN OPERATIONAL LEVERAGE TO UPSIDE.. + CONTRACT INCOME Each $5,000 uplift in both VLCC and Suezmax rates improves net revenue and EBITDA by $112mm $1,232 Long term TC 7 year contract to 2024 $336 $560 + $112 BASE +$5,000 +$15,000 +$25,000 +$55,000 per day per day per d

  35. Slide 35: Euronav Strategy – Shareholder Focus

    Actively managed high quality fleet… EURONAV STRATEGY – SHAREHOLDER FOCUS Liquidity in the Euronav share 2000 10 1800 9 1600 8 Daily Value traded $m per day last 12 months 1400 7 Free Float $ Market Cap (000) 1200 6 1000 5 800 4 600 3 400 2 200 1 0 0 Euronav Euronav Tanker Company #1 Tanker Company

  36. Slide 36: Euronav Strategy – Shareholder Focus

    Actively managed high quality fleet… EURONAV STRATEGY – SHAREHOLDER FOCUS Shareholder returns since 2014 net income Dividend share buy back 400 • USD 2.70 dividend per share since 2015 $m net income, dividend and share buy back 300 • Average share price USD 9.55 over past 4 years 200 • Average annua

  37. Slide 37: Outlook

    OUTLOOK RESILIENT Q1 – HEADWINDS TO TAILWINDS FOR 2H Demand for Supply Ton miles & Vessel Euronav Oil IMO 2020 Supply Balance of Oil sheet Robust US v Saudi Positive IMO to help Flexibility from Q4 Change No change No change No change Upgrade No Change 37

  38. Slide 38: Outlook

    OUTLOOK RESILIENT Q1 – HEADWINDS TO TAILWINDS FOR 2H Demand for Supply Ton miles & Vessel Euronav Oil IMO 2020 Supply Balance of Oil sheet Robust US v Saudi Positive IMO to help Flexibility from Q4 Change No change No change No change Upgrade No Change 38

  39. Slide 39: Outlook

    OUTLOOK RESILIENT Q1 – HEADWINDS TO TAILWINDS FOR 2H Demand for Supply Ton miles & Vessel Euronav Oil IMO 2020 Supply Balance of Oil sheet Robust US v Saudi Positive IMO to help Flexibility from Q4 Change No change No change No change Upgrade No Change 39

  40. Slide 40: Outlook

    OUTLOOK RESILIENT Q1 – HEADWINDS TO TAILWINDS FOR 2H Demand for Supply Ton miles & Vessel Euronav Oil IMO 2020 Supply Balance of Oil sheet Robust US v Saudi Positive IMO to help Flexibility from Q4 Change No change No change No change Upgrade No Change 40

  41. Slide 41: Outlook

    OUTLOOK RESILIENT Q1 – HEADWINDS TO TAILWINDS FOR 2H Demand for Supply Ton miles & Vessel Euronav Oil IMO 2020 Supply Balance of Oil sheet Robust US v Saudi Positive IMO to help Flexibility from Q4 Change No change No change No change Upgrade No Change 41

  42. Slide 42: Outlook

    OUTLOOK RESILIENT Q1 – HEADWINDS TO TAILWINDS FOR 2H Demand for Supply Ton miles & Vessel Euronav Oil IMO 2020 Supply Balance of Oil sheet Robust US v Saudi Positive IMO to help Flexibility from Q4 Change No change No change No change Upgrade No Change 42

  43. Slide 43: Thank You

    THANK YOU © EURONAV. 43

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