SEB Nordic Seminar 2017

11 January 2017

Our story

2

• 100+ years of experience

• A market leader in the chemical tanker industry

• Integrated shipping and storage with a world wide presence

We are unique

• Our core business is handling hazardous liquids – safely and more efficiently

than anyone else in the industry Our Mission

• Competitive cost base (Project Felix)

• Competitive asset utilization (Project Moneyball) We are competitive

• USD 190m EBITDA 3Q16 YTD

• Strong COA portfolio supports earnings in weak markets We are profitable

• 35% equity ratio as of 3Q16

• Solid cash position

We are gaining

strength

• 2015 and 2016 were good years for chemical tankers

• Fundamental balance in supply/demand over the next two years

Favourable market

fundamentals

Agenda

3

• Company overview

• Efficiency programs

• Key financials

• Going forward

• Q&A

4

• We are a leading company in the global market for

transportation and storage of bulk liquid chemicals,

acids, edible oils and other special products

• Operate within the three business segments:

− Chemical Tankers

− Tank Terminals

− Odfjell Gas

• CEO: Kristian Mørch and CFO: Terje Iversen

• Employees: ~3,000

• Headquarter in Bergen, Norway

• Extensive international network with offices in 20

countries

• Odfjell SE is listed on Oslo Stock Exchange (ODF

and ODF)

• Laurence W. Odfjell (Chairman) controls 34% of the

shares3

Background Share price development last 12 months

1. 3Q16 EBITDA

2. Nominee account

3. Adjusted for treasury shares

Odfjell Group - at a glance

Shareholder A-shares B-shares % votes % shares

Norchem (Odfjell family) 26.0 3.5 43.4 % 34.0 %

Odfjell SE (Treasury) 5.9 2.3 0.0 % 9.5 %

Svenska Handelsbanken2 2.5 2.2 4.2 % 5.5 %

Morgan Stanley & Co Intl2 3.3 0.2 5.5 % 4.1 %

Rederiet Odfjell AS 3.5 0.0 5.8 % 4.0 %

Top 5 shareholders 41.2 8.3 59.0 % 57.0 %

Other shareholders 24.5 12.8 41.0 % 43.0 %

Total shareholders 65.7 21.1 100.0 % 100.0 %

Shareholder overview

10

15

20

25

30

35

Jan-16 Apr-16 Jul-16 Oct-16 Jan-17ODF (A-share) ODFB (B-share)

NOK per share

• Net result 3Q16 of USD 16 mill (same as

2Q16), and EBITDA of USD 60 mill (2Q16

of USD 61 mill)

• Continued softer chemical tanker spot

market, however, our utilization remained

high due to contract nominations

• Balance sheet continues to strengthen

• Stable results from Odfjell Terminals

• Signed agreement to sell our share in

Oman tank terminal, with a gain of USD 46

mill

• Signed final agreement for construction of

4+2+2 stainless steel chemical tankers, the

largest and most efficient stainless steel

chemical tankers ever built

0

350

300

250

200

150

100

50

2015 2016 2014 2013 2012 2011 2010 2009 2008 2007

Chemical tankers

Tank terminals

LPG/Ethylene

1. Proportional consolidation method according to actual historical ownership share

Annualised EBITDA1, USD mill

Odfix quarterly average Index, 1990=100

5

60

70

80

90

100

110

120

130

140

150

160

170

180

-5%

-3%

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Odfix index

Odfix average 2007-2015

Chemical tanker spot earnings index (midcycle = 100)

Source: Clarkson Platou

% change 3Q

vs. 2Q

Odfjell Group - 3Q16 highlights

Odfjell Group - Our business segments1

6

• Operates a fleet of ~80 owned and time-

charter/bareboat vessels

– 44 owned and 35 time-charter/bareboat

• Focus on the deep sea market and large

stainless steel vessels

• One of the world’s largest chemical tanker

companies

• We ship 600+ products with 600+ customers

every year

• Recently signed final agreement for 4+2+2

49,000 dwt stainless steel newbuildings

• Joint-venture between Odfjell SE (51%) and

Lindsay Goldberg (49%)

• Total capacity of ~ 4.8m cbm

• A global network through strategic partnerships

• 9 operational tank terminals located in key ports

around the world

• Focus on key hubs for petroleum and chemical

products in addition to synergies with chemical

tankers

• Further projects under development and being

explored

Chemical Tankers Tank Terminals

100% 51%

1. On-going exit from Odfjell Gas

2. Share of Odfjell SE 3Q16 EBITDA

3. Share of Odfjell SE 3Q16 total assets

EBITDA: 19%2 Assets: 16%3 EBITDA: 80%2 Assets: 82%3

Agenda

7

• Company overview

• Efficiency programs

• Key financials

• Going forward

• Q&A

• Reduction of 100+ FTEs – Across Tankers, Ship Management and Administration

• Other G&A initiatives – Revised pension agreement, divestment of HQ building etc.

A

B

C

D

General and administrative

expenses

Vessel operating

expenses

Odfjell Tankers

profitability

Bunker costs

• Reduction of non-crew OPEX by >25% for internally

managed ships – Technical accounts, provision and stores, ship general expenses

• Exit from unprofitable Intra-EU trade – Divestment of four vessels (Bracaria, Balearia, Brasilia and Pilot)

• Improved competitiveness in USG – Far East trade lane

through increased frequency

• Real time monitoring of fleet consumption figures

• Retrofitting projects to improve energy efficiency

for core tonnage

Example initiatives Project Felix work streams

Project Felix: Consisted of more than 400 work streams,

which covered all aspects of our business

8

Project Felix: USD 109 million improvement ambition

successfully achieved by end of 2015

9

Bunker costs OT Profitability OPEX G&A Pre-Felix

expected result

Post-Felix

result

Full-scale implementation kicked off January 2015, and effect realization

completed by December 2015

A B C D

Significant cost

reduction

Reduction of

crew- and

technical cost

Exit unprofitable

trades and core

optimization

Reduced

consumption

Improvement ambition for Project Felix

Indicative only

∑ = USD 100 million

“It's unbelievable how much you don't know about

the game you've been playing all your life.”

-Mickey Mantle

• To leverage the positive momentum in our organization, “Project Moneyball” was launched in January

2015, targeting operational excellence

• In Project Moneyball we combine our internal expertise with external data sources in order for Odfjell to

conquer some of the largest challenges facing our industry today

• Port time for chemical tanker operators has increased significantly over the last decade due to port

infrastructure not being able to keep up with a growing global fleet

• We want to find solutions that are unique to Odfjell to reduce port time for our vessels

and in general improve our operational efficiency

• “Project Moneyball” is based on wide implementation of business intelligence tools and has

sparked a data driven and fact based way of running our business

Project Felix is substituted by Project Moneyball, which is

focused on process excellence and efficiency gains

10

Project Moneyball: Working with several initiatives to

reduce port time

Project Moneyball Type of initiatives

• Use KPIs and statistics as a means to

improve vessels operational performance

• Overall ambition: reduce port time to

increase Odfjell’s fleet utilization

• Main areas of improvement:

− Commercial and cargo program

− Operational efficiency

− Leverage possibilities from

increased data availability

• Involving several external stakeholders

such as customers, terminals, port

authorities and brokers

• Consolidate cargo programs to reduce number

of berth calls

• Improved execution through better planning

processes and new tools

• Strategic partnerships

• Automate certain administrative tasks to free

up capacity

11

Implementation of Project

Moneyball is 71% completed

Port efficiency is 8% better than benchmark

and 5% better than 2016 target

97%100%92%

YTD actual

-8%

Historic

benchmark

2016 target

Project Moneyball: Successful project implementation

and significant port efficiency improvement in 2016

12

100%

71%

Full

implementation

YTD status

Project Moneyball status, YTD November 2016

Project implementation progress Odfjell port efficiency index

Agenda

13

• Company overview

• Efficiency programs

• Key financials

• Going forward

• Q&A

Odfjell Group – Quarterly figures1

Quarterly Gross Revenue, EBITDA and net result, USD millions

240241249253276279260276292

Q2 2016 Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014 Q3 2016

606169

455753

353431

Q4 2015 Q1 2016 Q3 2016 Q2 2016 Q1 2015 Q4 2014 Q3 2015 Q3 2014 Q2 2015

Gross

Revenue

EBITDA

1. Proportional consolidation method 14

1616

-17

77

-32

-17-9

Q2 2016 Q1 2016

24

Q4 2015 Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014 Q3 2016

Net

Result

Odfjell Group – Balance sheet as of 30.09.2016¹

Assets, USD millions

Ships and newbuilding contracts 1 204

Other non-current assets/receivables 38

Investment in associates and JV’s 359

Total non-current assets 1 602

Cash and cash equivalent 191

Other current assets 121

Total current assets 311

Assets held for sale 16

Total assets 1 928

Equity and liabilities, USD millions

Total equity 683

Non-current liabilities and derivatives 31

Non-current interest bearing debt 936

Total non-current liabilities 967

Current portion of interest bearing debt 197

Other current liabilities and derivatives 83

Total current liabilities 279

Liabilities held for sale -

Total equity and liabilities 1 928

1. Equity method

15

• Cash balance of USD 191 mill - excluding JV’s cash

• Net investment in tank terminals JV’s USD 310 mill

• Equity ratio 35.4% (34.6% end 2Q)

• Asset held for sale consist of planned vessel

USD millions Remaining

2016 2017 2018 2019 2020

Chemical Tankers

Newbuildings 4 x 49,000 dwt¹ 24 6 24 144 42

Docking 4 12 12 12 12

Other investments * 2 8 7 7 7

Odfjell Gas, 100%2

Sinopacific, 1 x 17,000 cbm TBD

Sinopacific, 4 x 22,000 cbm TBD TBD

Tank Terminals, 100%

Planned capex 27 60 40 9 8

Odfjell Group – Capital expenditure programme as of

30.09.2016

1 Construction cost USD 60 mill per vessel, payment terms 3 x 10 +70, delivery June 2019 - 2020

2 The construction of gas newbuildings is substantially delayed

* Includes propeller upgrade and Ballast Water Treatment

16

Financial ratios reflecting the turnaround of Odfjell

17

2016 YTD

annualised2

5.6x

2015

8.5x

2014

17.6x

2013

27.7x

2012

20.9x

Gross interest bearing debt / EBITDA

35%33%31%37%

43%

2013 2012 2014 2015 2016 YTD

annualised2

Equity ratio

Return on capital employed (ROCE)1 Return on equity (ROE)

7%

2%

-1%

-3%-3%

2013 2012 2014 2015 2016 YTD

annualised2

11%

-6%

-12%-14%

-12%

2013 2012 2014 2015 2016 YTD

annualised2

Note figures are by the equity method and not adjusted for extraordinary items

1. EBIT divided by end of period total equity plus net interest bearing debt

2. Figures annualised based on YTD as of 3Q 2016

Agenda

18

• Company overview

• Efficiency programs

• Key financials

• Going forward

• Q&A

2015 & 2016 have been good years in the chemical tanker

industry, mainly due to limited growth in supply

19

Chemical tanker supply1, demand and TC rate development

-2%

0%

2%

4%

6%

8%

10%

12%

14% 25

5

0

20

10

15

5%

1%

4%

9%

2015

3%

2013

1%

6%

2011

4%

2009

10

%

8%

2010 2006

6%

10

%

13

%

2%

2008

0%

2007 2014 2016

5%

5%

Year-on-year

percentage growth

5%

9%

USD k / day

4%

2%

1%

2012

Supply growth (dwt)

Demand growth (tonne-miles)

Steensland J19 TCE

Source: Clarksons, Steensland

1) Chemical tankers are defined as tankers that are suitable for chemical trades, including chemical parcel and chemical bulk tankers. Chemical tanker fleet includes IMO I

tankers, IMO III tankers excluding those classed as product tankers, tankers of an unknown IMO grade below 25k dwt and stainless steel tankers not designated as

specialised tankers

• 2015 and 2016 have been the two best years for chemical tankers since 2008

− Stable demand growth in the period (with the exception of 2014)

− More modest fleet growth in the period 2012 - 2015

The market consensus is a balanced market over the next

two years – which also is our view

20

Consensus1 chemical tanker supply and demand forecast, 2016-2018E

Source: Consensus based on an average of Swedbank, Clarksons, Steensland (only fleet growth), IMF (Demand growth) and Odfjell (only fleet growth)

Note: There are differences between fleet definitions

0%

1%

2%

3%

4%

5%

6%

7%

4.6%

6.7%

2018E

4.8%

2017E

2.4%

5.1%

4.4%

2016E

Demand

Supply CAGR 16-18E:

Demand: 4.6%

Supply: 4.6%

• We expect the market to be well balanced over

the next two years

− Slowing fleet growth after 2016 and limited

downside risk in the current orderbook (new

orders delivered earliest 2019)

− Ramp-up of petrochemical exports in the US

Gulf and Middle East driving long haul trades

− Higher global economic growth

− Chinese economy shifting to consumer

driven

− De-consolidation is reversing

• We are currently experiencing a softer spot

market mainly driven by:

− Weaker CPP market

− Higher competition due to vessel deliveries

and product tanker swinging into the market

• Our COA portfolio provides a limits the impact of

a volatile and softer market

Year-on-year percentage growth

Where are we today?

21

• A leaner and more fit organisation

• ~USD 100m in Felix effect is realized Leaner

• In-house competencies and systems representing 100+ years of experience

• We have implemented new data driven and analytical decision tools Smarter

• Stronger balance sheet

• Have the financial capability to act quickly as opportunities may arise Stronger

• On-going exit from Odfjell Gas

• Focusing investment and growth around our core fleet More focused

• Amongst the few operator and owners of large sophisticated chemical

tankers + integrated logistics via Odfjell Terminals

Sophisticated

tonnage

Key focus areas going forward

22

Growth

• Tonnage renewal / fleet growth

• Take part in consolidation

High quality service

• Safety, predictability and reliability

Operational excellence

• Tankers: OPEX + SG&A

• Terminals: implementing operational excellence project

Financial strength

• Further improve balance sheet to be able to act quickly as

opportunities may arise

• Cost of capital

Terminals – back to meaningful profitability levels

• Implementation of the «value creation program»

Agenda

23

• Company overview

• Efficiency programs

• Key financials

• Going forward

• Q&A

OD FJELL SE

Conrad Mohrs veg 29,

P.O. Box 6101 Postterminalen

5892 Bergen, Norway

Tel: +47 5527 0000

Fax: +47 55284741

E-mail: ir@odfjell.com

Org. no: 930 192 503

www.odfjell.com

Investor Relation and Media contact

Tom A. Haugen

Phone: + 47 55 2746 69

Mobile: + 47 90 59 69 44

tom.haugen@odfjell.com

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