First Quarter 2013 Results Oslo 7 May 2013 Agenda Highlights - - PDF document

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First Quarter 2013 Results

Oslo – 7 May 2013

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Agenda

• Highlights
• Financials
• Operational review
• Market update and prospects
• Summary
• Q&A session

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Highlights

• EBITDA of USD 27 million reflects a

slightly better chemical tanker market and higher terminal earnings

• Final agreements entered into with

Lindsay Goldberg post quarter to expand existing partnership to include substantially all tank terminal assets

• Time-charter results up 8% compared

to last quarter

50 100 150 200 250 300 350 03 04 05 06 07 08 09 10 11 12 13 USD mill

Annual EBITDA – actual ow nership

Chemical tankers Tank terminals

Highlights

50 100 150 200 03 04 05 06 07 08 09 10 11 12 13 Index 1990=100

ODFIX 4

Highlights

Highlights

• Purchase of Bow Engineer, a 30,000 dwt chemical tanker with 28 stainless

steel tanks, delivery of the third and final 9,000 dwt newbuilding from China and two new time-charter vessels

• Re-commissioning of tanks at Odfjell Terminals (Rotterdam) brings total

capacity ready for storage up to one million cbm

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Income statement - First quarter 2013

USD mill

1Q13 4Q12 Gross revenue 291 296 Voyage expenses (122) (130) TC expenses (44) (43) Operating expenses (68) (72) General and administrative expenses (32) (35) Operating result before depr. (EBITDA) 27 17 Depreciation (31) (34) Capital gain/loss on fixed assets (1) (7) Operating result (EBIT) (6) (23) Net finance (6) (19) Taxes (2) 3 Net result (13) (40)

Financials 6

Quarterly figures - from continued operation (previous quarters restated)

USD mill

50 100 150 200 250 300 350 2011 2012 2013 USD mill

Gross Revenue

5 10 15 20 25 30 35 40 45 2011 2012 2013

USD mill

EBITDA

• Increase in EBITDA of USD 10 million compared to last quarter reflects higher

spot activity and higher terminal earnings

Financials

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Quarterly figures - from continued operation (previous quarters restated)

USD mill

12 11 ‐6 8 ‐5 2 ‐25 ‐1 ‐23

• 30
• 25
• 20
• 15
• 10
• 5

5 10 15 2011 2012 2013 USD mill

Operating Result (EBIT)

11 ‐4 ‐13 5 ‐28 261 ‐39 ‐8 ‐40

• 100
• 50

50 100 150 200 250 300 2011 2012 2013 USD mill

Net Result

• Negative EBIT of USD 6 million
• Stable net interest
• Net loss 1Q13 of USD 13 million

‐9 ‐10 ‐10 ‐11 ‐12 ‐12 ‐13 ‐13 ‐12 2 2 ‐2 5 ‐9 ‐3 ‐6 6

• 25
• 20
• 15
• 10
• 5

5 10 USD mill

Net Finance

Net interest Other financial/currency 2011 2012 2013

Financials 8

Balance sheet – 1Q 2013

USD mill - Assets Ships and newbuilding contracts 1 286 Tank terminals and intangible assets 548 Other non-current assets/receivables 163 Total non-current assets 1 996 Available-for-sale investments and cash 133 Other current assets 193. Total current assets 325 Assets held for sale 223 Total assets 2 543 Equity and liabilities Total equity 832 Non-current liabilities and derivatives 142 Non-current interest bearing debt 1 041 Total non-current liabilities 1 183 Current portion of interest bearing debt 243 Other current liabilities and derivatives 157 Total current liabilities 400 Liabilities held for sale 129 Total equity and liabilities 2 543

• Cash balance of USD 133 million + USD 18 million cash in «held for sale assets»
• Available drawing facilities USD 14 million pluss substantial drawing facilities allocated to specific

investments projects in the tank terminal joint ventures

• Equity ratio decreased to 32.7% compared to last quarter due to clearing of total return swap,

mark to market variations in hedging positions and an equity correction

• LG transaction will further strengthen the liquidity

Financials

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Possible conversion of current share structure

• Odfjell has for historical reasons held two shares classes – class A and class B
• The Board has initiated an evaluation of the legal and regulatory issues related

to a possible conversion of current structure of class A and class B shares into

• ne single class of shares
• If the Board upon completion of the evaluation, expected by end 2013, should

decide to put such proposal forward to the General Meeting, an approval would require a majority vote in both share classes

Financials 10

Debt development

• Secured financing of the jetty project at Odfjell Nangang Terminals (Tianjing) with a Chinese

bank

• Refinaning of OTR in good progress
• Continuing discussions with banks regarding financing of newbuilding program in Korea
• Drawdown of USD 100 million in first quarter attributable to payment of maturing balloons on

loans, retroactive Norwegian tonnage tax, funding of newbuildings and TRS and interim funding

• f Odfjell Terminal (Rotterdam)

200 400 600 800 1,000 1,200 1,400 1Q13 2014 2015 2016 2017 USD mill

Debt Portfolio

Ending balance Repayment 50 100 150 200 250 300 1Q13 2014 2015 2016 2017 USD mill

Planned Debt Repayments

Secured loans Balloon Leasing NOK bond 09/13 NOK bond 12/15 NOK bond 12/17

Financials

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Capital expenditure programme – Odfjell’s share

In USD mill

Per1Q13 2014 2015 2016 2017 Daewoo, 1 x 75,000 DWT 13 Hyundai Mipo, 4 x 46,000 DWT 16 110 2nd hand purchase 30 Docking 20 27 27 27 Terminals1) 140 83 51 24 2 Total 219 220 78 51 2

1) Planned not commited

From the naming ceremony of Bow Nangang, the last of three vessels from Chuandong Financials 12

Income statement – 1Q13 chemical tankers and LPG/Ethylene

USD mill

1Q13 4Q12 Gross revenue 257 263 Voyage expenses (122) (130) TC expenses (44) (43) Operating expenses (49) (51) General and administrative expenses (25) (26) Operating result before depr. (EBITDA) 18 14 Depreciation (22) (25) Capital gain/loss on fixed assets (1) (7) Operating result (EBIT) (5) (18) Net finance (7) (21) Taxes (3) (1) Net result (16) (40)

Financials

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Income statement – 1Q13 tank terminals

USD mill

1Q13 4Q12 Gross revenue 35 34 Operating expenses (19) (21) General and administrative expenses (7) (9) Operating result before depr. (EBITDA) 9 5 Depreciation (9) (9) Operating result (EBIT) (1) (5) Net finance 2 1 Taxes 2 3 Net result 3

Financials 14

Results per segment

1Q13 4Q12

USD mill Chemical tankers/LPG Tank terminals Chemical tankers/LPG Tank terminals

Gross revenue 257 35 263 34 EBITDA 18 9 14 5 EBIT (5) (1) (18) (5) Net result (16) 3 (40)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Gross revenue EBITDA Assets Chemical tankers Tank terminals

Financials

50 100 150 200 250 300 350 03 04 05 06 07 08 09 10 11 12 13 USD mill

Annual EBITDA – actual ow nership

Chemical tankers Tank terminals

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Tank terminals EBITDA – by geographical segment

‐8 4 8 5

• 10
• 8
• 6
• 4
• 2

2 4 6 8 10 Europe North America Asia Middle East USD mill

EBITDA YTD 2013

EBITDA Tank Terminals by 1Q13 4Q12 geographical segment Europe (8) (11) North America 4 3 Asia 8 6 Middle East 5 6 Total EBITDA 9 5

• In Europe EBITDA improved from last

quarter

• The remaining geographical segments

deliver stable results

Financials 16

Bunker development

102.5 95.7 83.4 84.0 82.7 (20.3) (15.7) (9.8) (8.5) (8.5) (2.1) (2.8) (5.8) (1.9) (2.0) 80.1 77.2 67.8 73.5 72.2

(30) (20) (10)

• 10

20 30 40 50 60 70 80 90 100 110 1Q12 2Q12 3Q12 4Q12 1Q13

USD mill

Net Bunker Cost

Bunker purchase Bunker clauses Bunker hedging Net bunker cost

• Net bunker per tonne in the first quarter was

USD 557

• About 30% of the remaining bunker exposure in 2013

is hedged and about 20% of the 2014 exposure

• Bunker clauses in CoAs cover about

50% of the exposure

100 200 300 400 500 600 700 800 08 09 10 11 12 13 USD/mt

Platts 3.5% FOB Rotterdam Operational review

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Fleet development - last 12 months

Fleet additions DWT Built Tanks Transaction May 2013 Bow Engineer 30,086 2006 Coated Purchase March 2013 UACC Messila 45,352 2012 Coated 1 year TC March 2013 Bow Nangang 9,000 2013 Stainless New delivery March 2013 Chembulk Sydney 14,271 2005 Stainless 1-2 years TC January 2013 Chembulk Wellington 14,312 2004 Stainless 1-2 years TC December 2012 NCC Sama 45,564 2012 Coated Pool November 2012 Bow Dalian 9,000 2012 Stainless New delivery October 2012 Chemroad Hope 33,552 2011 Stainless 1 year TC September 2012 UACC Masafi 45,352 2012 Coated 1 year TC September 2012 NCC Reem 45,544 2012 Coated Pool September 2012 Bow Guardian 9,000CBM 2008 LPG Purchase August 2012 Bow Gallant 9,000CBM 2008 LPG Purchase August 2012 NCC Najem 45,499 2012 Coated Pool June 2012 Bow Fuling 9,000 2012 Stainless New delivery

Operational review 18

Fleet development – last 12 months

Fleet disposals, owned DWT Built Tanks Transaction January 2013 Bow Leopard 39,512 1988 Coated Recycling November Bow Fraternity 45,507 1987 Coated Recycling October 2012 Bow Lion 39,423 1988 Coated Recycling June 2012 Bow Viking 33,644 1981 Stainless Sale June 2012 Bow Fertility 45,507 1987 Coated Recycling May 2012 Bow Pride 45,655 1987 Coated Recycling May 2012 Bow Peace 45,655 1987 Coated Recycling

Operational review

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NOCT chemical tanker pool

• 1 June 2013 Odfjell Tankers (Odfjell) and National Chemical Carriers will

dissolve their pool of 40,000 to 45,000 dwt coated tankers

• Result of different strategies related to trading of the NOCT vessels
• 13 of 18 vessels owned by NCC
• Odfjell is positioned to maintain their position as a major operator in the coated

chemical tanker market

• The cooperation will continue for the two 75,000 dwt coated chemical tankers

currently under construction in Korea

• The discontinuation will have limited effect on the Odfjell group’s financial figures

Operational review 20

Tank terminal development

• The projects in Charleston, USA and Tianjin, China are on schedule and are

expected to be operational in 4Q 2013 and 1Q 2014

• Construction of the additional 50,000 cbm at Noord Natie Odfjell Terminals in

Antwerp, Belgium is underway

• The re-commissioning project at Odfjell Terminals (Rotterdam) is slightly behind

schedule, due to shortage of engineering capacity

• By end of March 1 million cbm was approved for usage at OTR

Operational review

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Tank terminal capacity

200 400 600 800 1 000 1 200 1 400 1 600 1 800 Cubic Metres`000

Mineral oil storage Chemical storage Ongoing expansions

Current capacity 5,310,459 Ongoing expansions 447,291 Total capacity in CBM (incl. related parties): Operational review * Odfjell’s ownership share in the respective tank terminals is shown in percentage 22

Signed final agreements with Lindsay Goldberg (LG)

• LG will aquire 49% interest in Odfjell Terminals AS (OTAS), the holding

company for substanially all of Odfjell’s tank terminal activities

• Capital increase of USD 219 million in OTAS plus contribution by LG of its 49%

share of the existing joint venture

• All assets will be owned by OTAS
• The proceeds will be used to pursue growth opportunities within tank terminals
• Odfjell is expected to realize a book gain of USD 25-30 million
• Expected closing in Q2/Q3 2013

Operational review

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Market update - chemical tankers

• Chemical tanker market improved
• Contracts renewed at higher rates
• Time charter results up by 8% compared to fourth quarter
• Stronger spot activity
• Contract coverage at 54%, expected to increase further due to NOCT

discontinuation

Market update and prospects 24

Core Chemical Deep-sea Fleet 2002-2016 - as per 30 April 2013

* Outphasing 30 years (Europe built) and 25 years (Asian built) Source: Odfjell FLEETBASE

• 800
• 400

400 800 1,200 1,600 2,000

02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 '000 Dwt

• 5.0%
• 2.5%

0.0% 2.5% 5.0% 7.5% 10.0% 12.5%

Deliveries Orderbook Actually demolished

• Estim. vessel outphasing*

Net Fleet Growth (%)

% of year-start fleet

Market update and prospects Average annual net growth: 2002-2012: 8.0% 2013-2016: 0.8%

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Prospects

• World economy remains uncertain
• Bunker prices and supply/demand balance continue to develop favourably
• Anticipate no upturn for the chemical tanker market this year
• Expecting to see improved results in our tank terminal business as the

performance of the Rotterdam terminal continues to pick up

Market update and prospects 26

Summary

• Slightly better chemical tanker market and higher terminal earnings
• Final agreement signed with Lindsay Goldberg
• Postioned for growth in both the tanker and tank terminal sector

Summary

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Company representatives

Terje Iversen – CFO, Odfjell SE Email: Terje.Iversen@odfjell.com Phone: Terje.Iversen@odfjell.com IR – contact: Tom A. Haugen – VP Finance, Odfjell SE Email: Tom.Haugen@odfjell.com Phone: +47 905 96 944

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Thank you

For more information please visit our webpage at www.odfjell.com

Q&A session