Hafnia Limited · OSL:HAFNI
Hafnia — Merger or Acquisition (November 2021)
22 slides from Hafnia's merger presentation, Nov 11, 2021
Slide 1: Hafnia Limited Investor Presentation
HAFNIA LIMITED I N V E S TO R P R E S E N TAT I O N 11 November 2021
Slide 2: Disclaimer – Safe Harbor Message
DISCLAIMER – Safe Harbor Message IMPORTANT: YOU MUST READ THE FOLLOWING BEFORE CONTINUING. THE FOLLOWING APPLIES TO THIS DOCUMENT, THE ORAL PRESENTATION OF THE INFORMATION IN THIS DOCUMENT BY HAFNIA LIMITED (THE "COMPANY") OR ANY PERSON ON BEHALF OF THE COMPANY, AND ANY QUESTION-AND-ANSWER SESSION T
Slide 3: Agenda
AGENDA Transaction Overview Combined Entity Industry Outlook Appendix 3
Slide 4: Overview of CTI Transaction
OVERVIEW OF CTI TRANSACTION • Hafnia Limited (“Hafnia”) has today entered into an agreement to acquire Chemical Tankers Inc (“CTI”) and its subsidiaries, including the fleet of 32 vessels through an issuance of new Hafnia shares • The number of shares to be issued and pro-forma ownership has been de
Slide 5: Strategic Rationale
STRATEGIC RATIONALE Vision – Being a leading provider of liquid bulk transportation 1 Hafnia post-transaction will be the largest operator of product and chemical tankers in the world Scale and diversification make the company more robust and sustainable, enabling improved earnings capability 2 thro
Slide 6: Attractive Synergies to be Achieved
ATTRACTIVE SYNERGIES TO BE ACHIEVED • Increased scale in Hafnia’s pool • TCE optimisation includes COA • Establish new Pools to operate based chemicals trading with the vessels periodic cross trading in CPP improving utilisation and • Bunker purchasing for the earnings chemical market participants o
Slide 7: Post-Transaction Estimated Relative Shareholding
POST-TRANSACTION ESTIMATED RELATIVE SHAREHOLDING % of outstanding Investor shares BW GROUP LIMITED 52.2% PAG Tankers Limited 4.3% J.P. Morgan Securities LLC 2.1% The Bank of New York Mellon 1.5% Hafnia Limited 1.5% OCM 20% Northwharf Nominees Limited 1.5% Nordea Bank Abp 1.5% Skandinaviska Enskilda
Slide 8: Agenda
AGENDA Transaction Overview Combined Entity Industry Outlook Appendix 8
Slide 9: The Combined Fleet
THE COMBINED FLEET Represents 133 owned and operated vessels across various segments Vessel Average • The transaction creates a strong synergy between Hafnia’s Type Owned SLB TC Total Segment age existing product tankers with chemical cargo carriage notations Handy Product 13 - - 13 8 and the CTI co
Slide 10: Modern Products & Chemical Tanker Owner
MODERN PRODUCTS & CHEMICAL TANKER OWNER CTI vessels complement existing Hafnia fleet, unlocking many operational synergies and arbitrage opportunities to optimise earnings Trading optimisation for the wet bulk cargo universe Rationale 1 • With the CTI fleet comprising vessels with high-spec • Sheer
Slide 11: Laying the Foundation for Operational Excellence
LAYING THE FOUNDATION FOR OPERATIONAL EXCELLENCE CTI vessels complement existing Hafnia fleet, unlocking many operational synergies and arbitrage opportunities to optimise earnings Hafnia Operational Fleet Triangulation # vessels Scale offers Owned Pool 120 • Trading flexibility 100 • Higher utilisa
Slide 12: Hafnia and CTI – Proforma Combined Financials
HAFNIA AND CTI – PROFORMA COMBINED FINANCIALS Balance Sheet USD m Hafnia CTI Combined USD m Hafnia CTI Combined As at 30 Jun 21 As at 30 Jun 21 Vessels, Dry Dock and Total shareholders’ equity 1,131 289 1,420 2,128 964 3,092 Scrubbers Total property, plant and 2,128 964 3,092 equipment Borrowings 1,
Slide 13: Agenda
AGENDA Transaction Overview Combined Entity Industry Outlook Appendix 13
Slide 14: Oil Demand Showing Steady Recovery
OIL DEMAND SHOWING STEADY RECOVERY Supply and demand of global oil OECD inventory reserve days versus brent $/barrel m barrels/d Days $/barrel 105 85 10 80 30 100 75 50 70 95 70 65 60 90 90 55 110 85 50 45 130 80 40 150 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Dec-11 Feb-13 A
Slide 15: Chemical Exposure Beneficial Going Forward
CHEMICAL EXPOSURE BENEFICIAL GOING FORWARD Chemical Cargo Volume vs Tonne-Mile Modern Tanker Owner m tonnes b tonne-miles 500 1,600 • While oil and petroleum products will remain a cornerstone for Hafnia 1,400 for years to come, both as cargo as well as fuel for ships, the world is 400 1,200 constan
Slide 16: Increasing CPP Tonne-Mile
INCREASING CPP TONNE-MILE CPP Cargo Volume vs Tonne-Mile (September) Product Tanker Fleet Growth m metric tons b tonne-miles m DWT % change 264.2 10 10% 260.7 100 246.5 8 8% 250 5.9% 5.4% 76.1 75.6 4.7% 80 6 6% 68.0 3.3% 3.2% 4 2.5% 4% 60 200 1.8% 1.9% 1.4% 2 2% 40 0 0% 150 20 -2 -2% -4 -4% 0 100 20
Slide 17: Thank You
THANK YOU www.hafniabw.com
Slide 18: Agenda
AGENDA Transaction Overview Combined Entity Industry Outlook Appendix 18
Slide 19: The Combined Fleet (1)
THE COMBINED FLEET (1) Represents 133 owned and operated vessels across various segments # DWT Delivery date Ship type Ownership # DWT Delivery date Ship type Ownership 1 BW Lynx 49,999 Nov-13 MR Owned 31 Hafnia Leo 49,999 Nov-13 MR Owned 32 Hafnia Phoenix 52,340 Jul-13 MR Owned 2 BW Puma 49,999 Nov
Slide 20: The Combined Fleet (2)
THE COMBINED FLEET (2) Represents 133 owned and operated vessels across various segments # DWT Delivery date Ship type Ownership # DWT Delivery date Ship type Ownership 1 BW Clyde 73,400 Jun-04 LR1 Owned 1 Navig8 Sirius 25,196 Jun-16 Chemical Carrier Owned 2 BW Lara 73,496 Aug-04 LR1 Owned 2 Navig8
Slide 21: The Combined Fleet (3)
THE COMBINED FLEET (3) Represents 133 owned and operated vessels across various segments # DWT Delivery date Ship type Ownership Fleet Summary Owned SLB TC Total 1 Beagle 49,999 Mar-19 MR TC-in SR 13 - - 13 2 Boxer 49,999 Jun-19 MR TC-in MR 42 - 8 50 3 Basset 50,000 Nov-19 MR TC-in LR1 24 4 4 32 4 B
Slide 22: Contacts
CONTACTS CEO CFO EVP EVP, IR, Research and Commercial Performance Management MIKAEL SKOV PERRY VAN ECHTELT JENS CHRISTOPHERSEN THOMAS ANDERSEN Email: ms@hafniabw.com Email: pve@hafniabw.com Email: jch@hafniabw.com Email: tha@hafniabw.com 22