Odfjell Se Class A · OSL:ODF
Odfjell Se Class A — Investor Day (May 2025)
82 slides from Odfjell Se Class A's investor day presentation, May 26, 2025
Slide 1: Capital Markets Day
Capital Markets Day Presentation | Odfjell SE | May 26, 2025
Slide 2: Agenda
Agenda Odfjell SE, Capital Markets Day 2025 Time Topic Presenter Welcome: 10:00 – 10:20 Keeping a steady course in an Harald Fotland CEO uncertain world 10:20 – 10:40 Finance update Terje Iversen CFO 10:40- 11.00 Odfjell Tankers Bjørn Hammer CCO 11:00 – 11:15 Coffee break 11:15 – 11:30 Market outloo
Slide 3: Opening remarks
Opening remarks Klikk for å redigere tekststiler i malen Harald Fotland Chief Executive Officer
Slide 4: At the heart of global trade
At the heart of global trade Our core business is handling hazardous liquids – safely, efficiently and sustainably Company highlights 2024 Milestones 1 Celebrated our 110th anniversary 2 Reached record-low AER of 7.1 Operational excellence Customized fleet Global presence 3 0 serious safety or secur
Slide 5: Odfjell's strategy is designed to capture the short term, and to de-risk the long term
Odfjell’s strategy is designed to capture the short term, and to de-risk the long term Key guiding principles Our long term goals SAFETY SAFETY CHEMICAL TANKERS We do not compromise on safety Industry leading safety record with zero The leader within deep-sea Chemical incident target Tankers CORE TE
Slide 6: Global volumes set to grow, adding further demand for chemical tankers
Global volumes set to grow, adding further demand for chemical tankers Most of the products we use in our everyday life are made by using chemicals. Global volume of chemical cargoes Global demand for chemical tankers Building blocks for industries, markets & consumers Mill. mt. +5% Mill. DWT. … med
Slide 7: Geopolitics driving the outlook
Geopolitics driving the outlook Market development will follow the timing of various sensitive events on the geopolitical stage Base case assumptions: 1 Shadow fleet 2 Tariffs 3 Increased U.S. port fees 4 Chemical production / seaborne transport 5 Core chemical tanker supply 6 Swing supply 7 End of
Slide 8: U.S. tariffs have increased trade uncertainty
U.S. tariffs have increased trade uncertainty… … But the U.S. benefits from an estimated $30+ billion trade surplus tied to U.S. chemical exports Selected U.S. tariffs 1 (%) U.S. seaborne chem/ bio imports & exports (MMt) Negotiations continue amid increased uncertainty • Tariffs have increased unce
Slide 9: Odfjell's journey towards sustainability is advancing well
Odfjell’s journey towards sustainability is advancing well Continued investments in green technology have made Odfjell a leader within sustainability Odfjell is on a continued downwards AER trajectory Bow Olympus demonstrates leading position within sustainability -53.3% • Odfjell’s latest technolog
Slide 10: Rest assured, Odfjell keeps a steady course
Rest assured, Odfjell keeps a steady course Our organization has captured the upside of the beneficial market fundamentals, leading to record strong results and dividends We have built resilience for the future through strengthening of our balance sheet and a significant improvement of the COA portf
Slide 11: Finance
Finance Klikk for å redigere tekststiler i malen Terje Iversen Chief Financial Officer
Slide 12: Capturing the current strong chemical tanker market and strengthening our financial position
Capturing the current strong chemical tanker market and strengthening our financial position Thanks to improved earnings and capital discipline our financial position has improved substantially 550 EBITDA Chemical Tankers 5-year avg. ROCE 11.3% 44 Odfjell SE, 4Q18 report presentation: 480 EBITDA Tan
Slide 13: Significant repayment of debt has strengthened our balance sheet
Significant repayment of debt has strengthened our balance sheet, while steadily returning funds to our shareholders Total debt reduced by >USD 500m since the delivery of last newbuilding in 2020, in parallel >USD 300m has been paid in dividends Interest-bearing debt development and refinancing tran
Slide 14: Solid access to capital at competitive terms
Solid access to capital at competitive terms Odfjell capital structure 1Q25 with 2Q bond issuance completing repricing of Odfjell as a solid credit case % of cap. 2018 % cap. Cost per Competitive Size $m structure structure day pricing ▪ Increase in bank debt to overall capital structure ▪ Competiti
Slide 15: A changing debt capital structure – from lease to bank
A changing debt capital structure – from lease to bank Financial lease has been significantly reduced in recent year, repaying our final two Chinese financial leases in 1Q25 1 526 • Over the last 5 yrs we have reduced financial lease significantly and increased bank debt 1 234 • Our average cost of
Slide 16: A changing debt capital structure, cont.
A changing debt capital structure, cont. From financial lease to bank, new bond loan, and an increasing TC fleet Total Interest-bearing debt development with IFRS16 newbuilding deliveries (USD 1000) 1 600 000 1 500 000 Operating lease Financial lease 1 400 000 Bonds Bank loans 1 300 000 1 200 000 1
Slide 17: Odfjell has a leading position within sustainable finance
Odfjell has a leading position within sustainable finance All our bank debt facilities has incorporated a sustainability adjustment which can be utilized once converted, and we will continue to explore opportunities within sustainable and green finance ▪ Sustainability-Linked Framework dated 2020. K
Slide 18: Inflation and higher interest rates has been challenges, but reducing break-even is still a key goal
Inflation and higher interest rates has been challenges, but reducing break-even to sustainable low-cycle levels is still a key goal Going forward our cost for TC vessels will increase as vessels conclude at a higher point in the cycle are delivered, yet average hire for the TC fleet is forecasted t
Slide 19: Reducing break-even on chemical tankers is still a key goal
Reducing break-even on chemical tankers is still a key goal Completed most financing initiatives, going forward growing our fleet to unlock economies of scale is key 23 548 22 850 21 991 ▪ Break even-has been reduced y-o-y by approximately USD 700 driven by reduced margins and instalments on interes
Slide 20: A path to achieving our break-even target
A path to achieving our break-even target Reducing our break-even is realistic, although reaching our target of USD 21,000/ day is challenging in the near term 3 456 22 850 700 250 500 1 200 730 285 21 585 Target 2 488 5 464 Financing initiatives: TC commitments: G&A: USD 700 p/d lower interest in 2
Slide 21: Strong free cash flow from current cost base
Strong free cash flow from current cost base FCF to equity potential and EBITDA less interest expenses at various points in the cycle Odfjell average TCE/day for LTM (2Q24-1Q25) was USD 32,702 Super cycle FCF to equity was USD 200 mill 397 EBITDA less int. exp. and IFRS16 capital repayments was USD
Slide 22: Estimated NAV with ample headroom to current share price
Estimated NAV with ample headroom to current share price Estimated market value for our vessels and terminals indicate a NAV per share of ~NOK 186, while current market cap is below book value 1 979 USD million Fleet valuation 250 • Based on YE24 broker indications, conservatively adjusted down 10%
Slide 23: Successful issuance of NOK 1 billion senior unsecured bond
Successful issuance of NOK 1 billion senior unsecured bond Record tight credit margin, and limited running cost for Odfjell when optimized with existing revolving credit facilities Mid spread to worst (NOK) 600 • NOK 1 billion priced at NIBOR + 275 bps, swapped to USD 550 97.1 mill • Shipping peers
Slide 24: ODF share price has declined in line with sector, dividends support satisfactory return
ODF share price has declined in line with sector, dividends support satisfactory return ODF Volume and Price/Book ratio 220 ODF (A) share price 200 200.000 1,8 ODF (A) total return PB 180 30 day avg volume 1,6 160 Analysts avg. 1,4 target price • . 150.000 140 1,2 120 1,0 100.000 100 0,8 80 0,6 60 5
Slide 25: Delivering on our finance strategy
Delivering on our finance strategy • We have utilized a strong market in recent years to strengthen our balance sheet and return funds to shareholders • Strong capital discipline, excess funds are earmarked dividends and debt repayments • We have been successful in optimizing our debt structure with
Slide 26: Odfjell Tankers
Odfjell Tankers Klikk for å redigere tekststiler i malen Bjørn Hammer Chief Commercial Officer
Slide 27: Odfjell Tankers
Odfjell Tankers A leading operator in deep-sea transportation of liquid specialty cargoes ✓ Modern and fuel-efficient fleet, mostly stainless steel ✓ Global presence across all major deep-sea chemical trade routes ✓ Proven capability in managing highly complex chemical cargo operations ~70 Number of
Slide 28: The Odfjell Trade
The Odfjell Trade Legend Chemicals Vegoils CPP Fronthaul Backhaul • Presence in all major deep sea chemical trade routes with a versatile fleet • Extensive market knowledge and well diversified contract portfolio across trades and products 28
Slide 29: We are diversified despite the specialized nature of our market
We are diversified despite the specialized nature of our market Odfjell’s broad customer and product base limits concentration risk Balanced exposure across 200+ customers... ….Serving leading companies across the globe Comments 200+ customers • Odfjell benefits from a wide customer base of over 200
Slide 30: Resilient contract portfolio despite spot rate decline
Resilient contract portfolio despite spot rate decline Contracts are anticipated to be agreed at similar levels going forward despite substantial boost over the last years Development in CoA volumes and CoA rate Comments 32% 26% • Odfjell has capitalized on a historically strong market, which has yi
Slide 31: TCE remains at elevated levels despite volatile geopolitical environment
TCE remains at elevated levels despite volatile geopolitical environment Company earnings are still at historically high levels despite market softening due to increased uncertainty Odfjell Chemical Tankers TCE/ day vs. break-even Odfjell Chemical Tankers TCE/ day (L6M) TCE per day development since
Slide 32: Impact from tariffs is limited
Impact from tariffs is limited While the U.S. is a key market for Odfjell, the impact to our business has been contained Tariffs have started to alter trade flows between U.S. and China, but disruption to Odfjell is manageable Comments • U.S. accounts for around 25% of global chemical tanker ton-mil
Slide 33: Safe voyages through the Red Sea still appears far away
Safe voyages through the Red Sea still appears far away In a “back-to-normal” scenario, the chemical segment is among the least affected and volumes may increase Tensions in Middle East are still high Chemical tankers among the least affected Potential effects on chemical tanker market despite Houth
Slide 34: We operate a streamlined fleet focusing on the deep-sea trade
We operate a streamlined fleet focusing on the deep-sea trade Fleet profile focusing around deep-sea super-segregators Fleet composition Fleet composition by ownership type Fleet age profile Number of vessels by size, DWT thousands Number of vessels Number of vessels by age 2015 2025 X # of segregat
Slide 35: The Odfjell fleet of ~70 deep-sea vessels, 2.5 mill dwt. capacity
The Odfjell fleet of ~70 deep-sea vessels, 2.5 mill dwt. capacity High-quality chemical tankers, optimized for serving global markets. The world’s most energy-efficient in its segment Super-Segregators Size range between 33-49k 31 dwt. Average number of 8 tanks per ship is 49 ▪ Strategic focus on de
Slide 36: The future Odfjell fleet is greener and younger
The future Odfjell fleet is greener and younger Well positioned to renew fleet and maintain market share while keeping flexibility Odfjell fleet changes (2025 – 2028) Comments Deliveries (current scenario) 82 Vessel Specification Assumed exits* • Odfjell is committed to taking delivery of 20 vessels
Slide 37: Tonnage replacement secured through attractive charters
Tonnage replacement secured through attractive charters Fixed-rate charter agreements with purchase options to increase our flexibility Odfjell fleet changes (2025 – 2028) Fleet renewal and expansion Chemical tankers Current Delivery Delivery Delivery Delivery fleet • 20 newbuildings on order. The n
Slide 38: Newbuilding prices are almost at an all time high – timing is everything
Newbuilding prices are almost at an all time high – timing is everything Recent fleet renewal made at a good point in the cycle Clarksons Newbuilding Index Time details Index After having secured the critical portion of our fleet renewal need at a very 200 favorable time in the cycle, and in combina
Slide 39: Summary: Odfjell Tankers
Summary: Odfjell Tankers A modern fleet, strong contract portfolio and flexible growth strategy support Odfjell’s leading position Leading position • Odfjell maintains a leading position within the chemical tankers market with a global presence and around 70 vessels. • Presence in all major deep sea
Slide 40: The market
The market Klikk for å redigere tekststiler i malen Nils Jørgen Selvik VP Finance & IR
Slide 41: With a diversified cargo mix, chemical tanker earnings are less volatile
With a diversified cargo mix, chemical tanker earnings are less volatile While linked to the broader tanker markets, the chemical tanker market is differentiated, leading to less volatile earnings Ultimate driver Vessel supply dynamics Rate volatility, 2017-2024 60 USDk/d 50 Organic 40 Crude tanker
Slide 42: We operate in four different market segments with different characteristics and market outlooks
We operate in four different market segments with different characteristics and market outlooks Odfjell is predominantly focused on transporting chemicals which constitutes ~ 90% of our COA volumes and ~ 80% of our total volumes Business ODF volume Characteristics Selected products Market outlook se
Slide 43: Chemical tanker spot rates have declined from the top but remain above historical average
Chemical tanker spot rates have declined from the top but remain above historical average, shifting US tariffs cloud the outlook Market volatility in recent years driven by supply side shock due to geopolitical events Spot market) Comments 190 +8% • Spot rates have come down since the peak Clarksons
Slide 44: Chemical volumes have proven to be resilient over time
Chemical volumes have proven to be resilient over time Increased sailing distance has been a key driver for tonne-mile demand the last decade Y-o-y growth rates for volumes, tonne-miles and GDP growth Comments Annual change 10% 9,7 Covid China Tonne-mile growth • Due to the diversified nature of end
Slide 45: Chemical tanker market supported by several dynamics
Chemical tanker market supported by several dynamics Some of the fastest growing industries rely on chemical compounds providing a solid fundament for Odfjell business 1 Positive growth outlook for chemical trade 2 High-growth industries may boost chem demand 3 Projected strong growth in chemical pr
Slide 46: Robust growth outlook for several of Odfjell's core products
1 Robust growth outlook for several of Odfjell’s core products Chemical trade across various segments is forecast to grow over the coming years Highlights Projected growth outlook: total trade of key cargo segments • Forecast global economic growth and increase in international chemical trade provid
Slide 47: Several of the fastest growing industries rely on chemicals
2 Several of the fastest growing industries rely on chemicals Odfjell is well-positioned to handle the chemicals that will support the industries shaping tomorrow U.S. end-use market production volumes (%, YoY) Key industries in rapid development may boost chemical demand 10.1 Semiconductors RENEWAB
Slide 48: Global chemical production is forecast to increase
3 Global chemical production is forecast to increase Total chemical output is projected to rise by 3.1% in 2025 despite slowing growth in the world’s largest economies Regional organic and inorganic chemical production growth rate (2025 – 2029) Regional comments • Advancing toward self-sufficiency,
Slide 49: Orderbook continues to grow – still at sustainable level
Orderbook continues to grow – still at sustainable level An aging fleet with ~18% above 20yrs should keep net fleet growth at manageable levels in coming years Fleet and orderbook – core, deep-sea chemical tankers Annual deliveries and recycling, core deep-sea DWT mill. Net fleet growth Deliveries*
Slide 50: Fundamentals expected to be supportive of current market, uncertainty from tariffs cloud the outlook
Fundamentals expected to be supportive of current market, uncertainty from tariffs cloud the market outlook Demand | Tonne miles, seaborne chemicals Development estimated swing tonnage Bn. tonne-miles. Bn. tonne-miles Demand growth (y/y) Mill. tons % product tankers +2% seaborne chem/veg lifting che
Slide 51: Decarbonization
Decarbonization Klikk for å redigere tekststiler i malen Erik Hjortland VP Technology
Slide 52: Introduction
01 Introduction
Slide 53: Operational Improvements
Operational Improvements Odfjell has targeted energy efficiency and emission reductions since 2007, and has dedicated teams that drive the operational improvements Collection of data from all vessels Automatic over-consumption/energy in-efficiency alarms Business Intelligence tools on all data (2007
Slide 54: Technical Improvements
Technical Improvements Odfjell has invested close to 40 million USD in retrofit of energy saving devices (ESD). We have done more than 140 ESD-installations since 2014, and have more than 50 more in the pipeline from now until 2030 Mewis Ducts (2011-) PBCF (2020-) Derating/Turbo charging E/R Lights
Slide 55: Technical Improvements: Costs and Payback-time
Technical Improvements Costs and Payback-time Fuel price used for payback calculations: USD 500 pmt. Expected life time for the installations: ship life time. l
Slide 56: Technical Improvements
Technical Improvements Fuel cost savings (2019-2024 only) are ≈ 3 x the total investments (2014-2024) • Around 100-120.000 mt CO2 reductions per year • Accumulated 650.000 mt since 2019 • Since 2014 we have invested USD 38 million • In the period 2019-2024 alone, we estimate to have saved USD 108 mi
Slide 57: Carbon intensity trend
Carbon intensity trend ODFJELL CARBON INTENSITY (AER) 16 15.0 14 -53.3% 12 10 8.9 8.8 8.3 8.0 7.6 8 7.2 7.1 7.0 6 4 2 0 2008 2018 2019 2020 2021 2022 2023 2024 2025 YTD Odfjell average IMO Base line 57
Slide 58: "But it is not zero…."
“But it is not zero….” Food for thought = 21 Zero emission vessels on continuous zero emission operation 58
Slide 59: WAPS installation
02 WAPS installation
Slide 60: Overall Scope
Overall Scope 60
Slide 61: Installation completed in 2 days
Installation completed in 2 days + 4 days testing and paper- work
Slide 62: WAPS maiden voyage / Results
03 WAPS maiden voyage / Results
Slide 63: A new AI based weather routing system
A new AI based weather routing system used to position vessel in optimum wind conditions to capitalize on the wind-forces
Slide 64: Arriving Houston
Arriving Houston
Slide 65: eSails Performance
eSails Performance
Slide 66: eSails Performance
eSails Performance FOC (tpd) 66 40,00 35,00 30,00 25,00 20,00 15,00 Hudong49 Historic Performance (World-Wide) World-wide Historic Performance X Bow Olympus (9 hrs) © Bow Olympus historical (Last é years) Draft = 10,55 m STW = 14,19 kts SOG = 14,16 kts Pp = 5275 kW FOC = 21,83 tpd {"Appearant Wind S
Slide 67: Payback period for sails
Payback period for sails 67 Fuel prices (pmt): VLSFO/LGO/B-30/: 550/701/835. IMO GFI Tier 1 RU: USD 100 pmt/CO2eq. Expected life time for the sails: life time of vessel. Operation: World wide, EU exposure = historical exposure for ship class. EU ETS not included
Slide 68: 2050 demonstrator voyage
04 2050 demonstrator voyage
Slide 69: Bow Olympus demonstrating a pathway to 2050
Bow Olympus demonstrating a pathway to 2050 1. WAPS in operation 2. Sustainable Biofuel (B-100)
Slide 70: Results
Results • 15-20% fuel savings from sails confirmed • Up to 40 % observed under optimum conditions • The biofuel is made from waste, and certified sustainable by ISCC, meeting all sustainability criterias by EU and IMO (RED II / CORSIA) • GHG intensity (WTW) 14 gram CO2eq/MJ • 85% GHG reduction vs VL
Slide 71: Results
Results • 15-20% fuel savings from sails confirmed • Up to 40 % observed under optimum conditions • The biofuel is made from waste, and certified sustainable by ISCC, meeting all sustainability criterias by EU and IMO (RED II / CORSIA) • GHG intensity (WTW) 14 gram CO2eq/MJ • 85% GHG reduction vs VL
Slide 72: Conclusion
05 Conclusion
Slide 73: Conclusion
Conclusion • Demonstrated a practical pathway to 2050, 20-25 years ahead of regulations • Requiring no capex, limited 40-100 EJ crew training, pose no risk to 12 crew, has lowest opex, do not EJ rely on renewable electricity* • This 2050 pathway is very promising * Decarbonizing deep sea with e-fuel
Slide 74: Odfjell Terminals
Odfjell Terminals Klikk for å redigere tekststiler i malen Adrian Lenning Managing Director, Terminals
Slide 75: A healthy Terminal platform centered around local leaders in strategic locations
A healthy Terminal platform centered around “local leaders” in strategic locations Expansion 4 Number of terminals 0.4 potential (CBM, million) ✓ High quality assets ✓ Global presence 1.3 Storage capacity (CBM, million) 43.8 EBITDA* (USD, million) ✓ Local leaders in key hubs ✓ Combines yield capacit
Slide 76: Odfjell Terminals is in essence an infrastructure business
Odfjell Terminals is in essence an infrastructure business, powered by the full Odfjell machinery Ticks all the boxes of prime infrastructure assets… …with a differentiated value proposition ▪ Integrated and essential part of customers’ supply chains ▪ Industry track record and unparalleled market i
Slide 77: In partnership with local management teams, we continue to drive hands-on operational value creation
In partnership with local management teams, we continue to drive hands-on operational value creation Commercial optimization Setting clear strategic priorities ▪ OTK/OTH: Increased revenue per cbm by 33% / 26% ▪ Project Renaissance (OTUS) (2018-2024) through optimized tank and product ▪ Terminal Mas
Slide 78: Value creation at OTK: ambition to 2.5x EBITDA by 2028
Value creation at OTK: Applying our toolkit with the ambition to 2.5x EBITDA by 2028 (vs 2023) Performance improvement Accretive Expansions Disciplined M&A Multiple Expansion +80% +70% vs 9.0x ▪ Execution of Full Potential Plan ▪ Developing E5 and Jetty 2 ▪ Accretive Acquisitions ▪ Tank / product mi
Slide 79: Performance improvement and accretive expansions have lifted portfolio EBITDA by 83%
In sum, performance improvement and accretive expansions have lifted portfolio EBITDA by 83% since the 2018/19 restructuring Added more than 176,000 cbm totaling ~USD 200 mln of investments, Delivering strong EBITDA growth and margin expansion across the with another 100,000 cbm under construction p
Slide 80: Key take-aways
Key take-aways Global footprint centred around “local leaders” in key chemical hubs Resilient portfolio combining yield generation capacity and growth potential Characteristics of prime infrastructure assets, leveraging the strengths of Odfjell Hands-on operational value creation, in partnership wit
Slide 81: Closing remarks
Closing remarks Klikk for å redigere tekststiler i malen Harald Fotland Chief Executive Officer
Slide 82: Thank you!
Thank you! Investor Relations Nils Jørgen Selvik | Tel: +47 920 39 718 | E-mail: nils.jorgen.selvik@odfjell.com ODFJELL SE | Conrad Mohrs veg 29 | P.O. Box 6101 | 5892 Bergen | Norway Tel: +47 55 27 00 00 | E-mail: mail@odfjell.com 82