Cmb.tech Nv · EURONEXT:CMBT
Cmb.tech Nv — Euronav — Finance Avenue 2022
33 slides from Cmb.tech Nv's conference presentation, December 2022
Slide 1: Euronav Critical Energy Transportation
EURONAV CRITICAL ENERGY TRANSPORTATION LIEVE LOGGHE FINANCE AVENUE DECEMBER 2022
Slide 2: Who is Euronav?
ips Py WHO IS EURONAV?
Slide 3: Euronav – World's Largest Publicly Listed Tanker Platform
EURONAV – WORLD’S LARGEST PUBLICLY LISTED TANKER PLATFORM Euronav at a glance Our Fleet – 72 vessels Type # of vessels Avg. age • Euronav - largest publicly listed tanker platform • Listed on NYSE and Euronext Brussels with current market VLCC 39 3 42 8 years Trading cap of $~4.2 bn Suezmax 22 5 27
Slide 4: What do we do?
: ne WHAT DO WE DO?
Slide 5: Transporting Oil Safely, Securely and Responsibly
TRANSPORTING OIL SAFELY, SECURELY AND RESPONSIBLY Transporting oil is what we do We operate safely in often harsh weather conditions We apply the highest standards possible in all facets of our business Sustainability and delivering a credible decarbonisation roadmap is part of our business strategy
Slide 6: Tanker Markets Are Unique
TANKER MARKETS ARE UNIQUE VERY CYCLICAL, SEASONAL, STRONGLY REGULATED BUT ALSO HIGHLY FRAGMENTED Seasonal Few customers, lots of suppliers 46 Quarterly average VLCC rate 1990-2022 45 Oil Thousands 44 42 Companies 41 40 38 Traders Ship broker 36 35 34 32 Pool 32 30 Refiners Q1 Q2 Q3 Q4 Source: Clarks
Slide 7: Tankers - Highly Regulated Shipping Sector with Useful Life of 15-20 Years
TANKERS - HIGHLY REGULATED SHIPPING SECTOR WITH THE USEFUL LIFE OF A TANKER ONLY 15-20 YEARS Survey cycle every 5 years to 15 years then every 30 months Average of global tanker fleet at 20 year highs 11,5 11,0 10,5 Average Age tanker market fleets in Years heavy consumers 10,0 Older vessels = 9,5 9
Slide 8: What We Do Works for Shareholders
WHAT WE DO WORKS FOR SHAREHOLDERS Over past five years Euronav been one of the best shipping investments 150% 114% 109% 105% 102% 100% 88% Total Return over 5 years to August 2022 versus S&P 500 50% 43% 31% 13% 0% -2% -5% -8% -27% -50% -38% -44% -48% -49% -56% -61% -61% -68% -100% Tanker companies -
Slide 9: Crude Oil: Key Role to Play in Energy Transition
CRUDE OIL KEY ROLE TO PLAY IN ENERGY TRANSITION
Slide 10: Everyday Applications of Crude Oil
EVERYDAY APPLICATIONS OF CRUDE OIL 10
Slide 11: Peak Oil Demand / Consumption Is Within Sight
PEAK OIL DEMAND / CONSUMPTION IS WITHIN SIGHT …BUT DEMAND FALL WILL BE GRADUAL AND TAKE MANY YEARS Oil Demand likely already peaked in West – but emerging Demand growth to peak in 2030 then plateau and move into slow decline market growth will continue according to IEA 80 100 70 Global oil consumpti
Slide 12: All Energy & Power Prices Have Moved Higher in Past Two Years
ALL ENERGY & POWER PRICES HAVE MOVED HIGHER IN PAST TWO YEARS – BUT ON RELATIVE BASIS CRUDE OIL IS ATTRACTIVE Brent crude price over past two years Expressed in equivalent price per barrel LNG and Gas are more expensive 120 500 450 100 400 $211 per barrel $90 per barrel 350 80 300 60 250 200 40 150
Slide 13: Shipping: Key Role to Play in Energy Transition
SHIPPING KEY ROLE TO PLAY IN ENERGY TRANSITION
Slide 14: We Need More Shipping … Not Less!
WE NEED MORE SHIPPING … NOT LESS ! Shipping – most efficient transportation mean Shipping – facilitated trade growth but capped emissions 220 World GDP growth & Shipping volumes 200 180 160 140 Global shipping emissions 120 100 Source: IMO GHG study 2009. Notes: 1) Energy-efficient transport is much
Slide 15: Shipping Is and Will Remain Highly Regulated
SHIPPING IS AND WILL REMAIN HIGHLY REGULATED 2023 2030 2040 2050 Carbon Intensity -40% by 2030; -70% by 2050 Indicator Global New & Existing Energy Efficiency Design Index (EEXI) regulations Vessel rules EEDI for existing vessels Emission -50% by 2050 Targets EU Fit for 55 (EU carbon Solid regional
Slide 16: Technology Has Driven More Energy Efficient and Lower Emission Vessels
OVER PAST DECADE – TECHNOLOGY HAS DRIVEN MORE ENERGY EFFICIENT AND LOWER EMISSION VESSELS SUEZMAX 2022 SUEZMAX 2012 Speed 14.5 knots max 15.9 knots max Daily fuel consumption 40.1 tons/day 66.9 tons/day Range of features as Energy Saving Devices None as standard standard Provision for future dual Ye
Slide 17: Euronav Is and Will Decarbonise
EURONAV IS and WILL DECARBONISE AND HERE IS HOW
Slide 18: Euronav's Pathway to Decarbonisation
EURONAV’S PATHWAY TO DECARBONISATION First and only company to pledge net zero tanker company 18
Slide 19: How You See Crude Tankers Will Change
HOW YOU SEE CRUDE TANKERS WILL CHANGE Increased pipework ahead of new ammonia ready engine Additional fuel tanks Strengthened hull & deck Additional pipework 19
Slide 20: Tanker Market Fundamentals
TANKER MARKET FUNDAMENTALS
Slide 21: Vessels > 20 Years Under Pressure & Limited New Vessels Scheduled
VESSELS > 20 YEARS UNDER PRESSURE & LIMITED NEW VESSELS SCHEDULED VLCC fleet age will see tonnage over 20 year old under pressure Tanker market capacity likely to shrink for next 2-3 years 80 50 11% over Orderbook 20 years old 4% 40 70 30 60 20 50 10 40 33 0 30 25 -10 20 17 -20 9 10 -30 5 3 2 0 -40
Slide 22: Tanker Supply Likely Capped - Orderbooks at Lowest Since 1980s
TANKER SUPPLY LIKELY CAPPED - ORDERBOOKS AT LOWEST SINCE 1996 Orderbook to fleet ratio at lowest levels since mid 1980s 60 50 Since end Q1 2021 only 4 VLCC & 8 Suezmax been ordered 40 Orderbook as % of fleet 3 year order to delivery timeline for tanker 30 VLCC & Suezmax Newbuild prices at highest le
Slide 23: Russian Dislocation – Not Fully Played Out Yet
RUSSIAN DISLOCATION – NOT FULLY PLAYED OUT YET Crude is moving 3-4x further than before from Russia to India not EU Around 1 million barrels to EU to be replaced by non Russian imports Source: Clarksons 0,4 0,7 0,9 0,1 1.0 0,1 1,6 1,6 1,7 0,8 0,7 0,8 1,6 1,4 0,9 2021 Feb-22 Jul-22 EU Seaborne trade
Slide 24: Proposed Combination with Frontline
PROPOSED COMBINATION WITH FRONTLINE
Slide 25: Euronav & Frontline Combination Creates a Tanker Market Global Leader
EURONAV & FRONTLINE COMBINATION CREATES A TANKER MARKET GLOBAL LEADER IN TERMS OF VALUE CREATION AND SUSTAINABILITY Proposal 1.45x Frontline shares for every 1x Euronav share Transaction Highlights Combined market cap of over $7 billion ($4bn @ 8 July with share price appreciation since ) Oslo Bør
Slide 26: Currently Expected Timeline of Combination and Indicative Next Steps
CURRENTLY EXPECTED TIMELINE OF COMBINATION AND INDICATIVE NEXT STEPS Term sheet Permission F-4 filed and Launch of Closing of agreed for Frontline Re-domicile Tender Offer Tender Offer 7 April 2022 to relocate EGM January 2023 March 2023 to Cyprus December 2022 August 2022 1.45x April July August Oc
Slide 27: Creating a Worldwide Leader in Crude Tankers
… CREATING A WORLDWIDE LEADER IN CRUDE TANKERS … The combination of two listed industry players will create a leader in the crude tanker shipping space, which would encompass c.7% of the VLCC and c.8% of the Suezmax global fleets Pro Forma Key Financials Fleet Composition and Key KPIs(1) 2021A Merge
Slide 28: Conclusion & Outlook
et Py CONCLUSION & OUTLOOK
Slide 29: Conclusion - Euronav at Start of Multi Year Upcycle and Game Changing Merger
CONCLUSION - EURONAV AT START OF MULTI YEAR UPCYCLE AND GAME CHANGING MERGER COMBINATION Euronav objective - To responsibly lead the global crude oil tanker industry Oil still has a critical role to play in the energy transition Shipping holds a pivotal position as most efficient means of transporta
Slide 30: Disclaimer
DISCLAIMER Forward-Looking Statements Matters discussed in this presentation may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 (the “Reform Act”) provides safe harbor protections for forward-looking statements within the meaning of the Reform Act. Forwar
Slide 31: Disclaimer
DISCLAIMER Exchange Offer The exchange offer described in this presentation has not yet commenced. This announcement is for informational purposes only and is neither a recommendation, nor an offer to purchase nor a solicitation of an offer to sell any ordinary shares of Frontline or any other secur
Slide 32: No Offer or Solicitation
NO OFFER OR SOLICITATION This presentation shall not constitute an offer to sell or the solicitation of an offer to buy, sell, or solicit any securities or any proxy vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unl
Slide 33: Disclaimer
DISCLAIMER IMPORTANT INFORMATION FOR INVESTORS Frontline Relocation Frontline has filed with the SEC a registration statement on Form F-4 with proxy materials containing information about the relocation. Frontline will mail a final prospectus and proxy materials and other relevant documents after th