Hunter : 2021-09-16 Investor Presentation

Hunter Group ASA - Company Presentation

16 September 2021

Pareto Securities 28th Energy Conference

Save a tree- presentation can be found at www.huntergroup.no

Forward Looking Statements

CERTAIN STATEMENTS INCLUDED IN THIS DOCUMENT CONTAIN FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING PLANS, OBJECTIVES, GOALS, STRATEGIES, FUTURE EVENTS OR PERFORMANCE, AND UNDERLYING ASSUMPTIONS AND OTHER STATEMENTS, WHICH ARE OTHER THAN STATEMENTS OF HISTORICAL FACTS. THE WORDS "BELIEVE," "ANTICIPATE," "INTENDS," "ESTIMATE," "FORECAST," "PROJECT," "PLAN," "POTENTIAL," "MAY," "SHOULD," "EXPECT" "PENDING" AND SIMILAR EXPRESSIONS IDENTIFY FORWARD-LOOKING STATEMENTS. THE FORWARD-LOOKING STATEMENTS IN THIS DOCUMENT ARE BASED UPON VARIOUS ASSUMPTIONS, MANY OF WHICH ARE BASED, IN TURN, UPON FURTHER ASSUMPTIONS, INCLUDING WITHOUT LIMITATION, MANAGEMENT'S EXAMINATION OF HISTORICAL OPERATING TRENDS, DATA CONTAINED IN HUNTER GROUP'S RECORDS AND OTHER DATA AVAILABLE FROM THIRD PARTIES. ALTHOUGH HUNTER GROUP BELIEVES THAT THESE ASSUMPTIONS WERE REASONABLE WHEN MADE, BECAUSE THESE ASSUMPTIONS ARE INHERENTLY SUBJECT TO SIGNIFICANT UNCERTAINTIES AND CONTINGENCIES WHICH ARE DIFFICULT OR IMPOSSIBLE TO PREDICT AND ARE BEYOND HUNTER GROUP'S CONTROL, YOU CANNOT BE ASSURED THAT HUNTER GROUP WILL ACHIEVE OR ACCOMPLISH THESE EXPECTATIONS, BELIEFS OR PROJECTIONS. THE INFORMATION SET FORTH HEREIN SPEAKS ONLY AS OF THE DATES SPECIFIED AND HUNTER GROUP UNDERTAKES NO DUTY TO UPDATE ANY FORWARD-LOOKING STATEMENT TO CONFORM THE STATEMENT TO ACTUAL RESULTS OR CHANGES IN EXPECTATIONS OR CIRCUMSTANCES. IMPORTANT FACTORS THAT, IN HUNTER GROUP'S VIEW, COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE DISCUSSED IN THE FORWARD-LOOKING STATEMENTS INCLUDE, WITHOUT LIMITATION: THE STRENGTH OF WORLD ECONOMIES AND CURRENCIES, GENERAL MARKET CONDITIONS, INCLUDING FLUCTUATIONS IN CHARTERHIRE RATES AND VESSEL VALUES, CHANGES IN DEMAND IN THE TANKER MARKET, INCLUDING BUT NOT LIMITED TO CHANGES IN OPEC'S PETROLEUM PRODUCTION LEVELS AND WORLD WIDE OIL CONSUMPTION AND STORAGE, CHANGES IN HUNTER GROUP'S OPERATING EXPENSES, INCLUDING BUNKER PRICES, DRYDOCKING AND

INSURANCE COSTS, THE MARKET FOR HUNTER GROUP'S VESSELS, AVAILABILITY OF FINANCING AND REFINANCING, ABILITY TO COMPLY WITH COVENANTS IN SUCH FINANCING ARRANGEMENTS, FAILURE OF

COUNTERPARTIES TO FULLY PERFORM THEIR CONTRACTS WITH US, CHANGES IN GOVERNMENTAL RULES AND REGULATIONS OR ACTIONS TAKEN BY REGULATORY AUTHORITIES, POTENTIAL LIABILITY FROM PENDING OR FUTURE LITIGATION, GENERAL DOMESTIC AND INTERNATIONAL POLITICAL CONDITIONS, POTENTIAL DISRUPTION OF SHIPPING ROUTES DUE TO ACCIDENTS OR POLITICAL EVENTS, VESSEL BREAKDOWNS, INSTANCES OF OFF-HIRE AND OTHER IMPORTANT FACTORS.

THIS PRESENTATION IS NOT AN OFFER TO PURCHASE OR SELL, OR A SOLICITATION OF AN OFFER TO PURCHASE OR SELL, ANY SECURITIES OR A SOLICITATION OF ANY VOTE OR APPROVAL.

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Hunter Group ASA - A publicly traded investment company

4x 2020 built SMART scrubber fitted eco

VLCCs

Shareholder friendly publicly listed

investment company

Cost leading and fully transparent corporate

structure

• World's only listed scrubber fitted newbuild VLCC pure play
• Initially bought 8x VLCCs at an average cost of 86.5m with deliveries 2019-20
• 4x 2019 built VLCCs sold to date at average ROE of 45%
• Returning value to shareholders is job #1
• Active key shareholders
• Dynamic and opportunistic approach - M&A, S&P, TCs, etc.
• USD 100m returned since inception of Hunter Tankers
• Industry leading G&A
• No hidden fees, poison pills, related party conflicts, etc.
• Fully aligned incentive structure
• Incorporated in Norway

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Hunter Group ASA - A publicly traded investment company

				Company overview
	Apollo Asset Ltd.				Other shareholders
~29%				~71%
				Hunter Group ASA
				Oslo Euronext Expand: "HUNT"

2019 built		2020 built

4x VLCCs sold and 4x remaining

Average ROE of ~45%

USD ~100m returned to shareholders LTM

Top 10 shareholders (13 sep 2021)

Name	Shares (m)	Ownership
Apollo Asset Limited	169	29%
Sundt AS	38	7%
Songa	36	6%
BNP Paribas	22	4%
Swap Invest	16	3%
Hunter Group	11	2%
DNB Luxembourg	8	1%
Argentum Fondsinvesteringer	5	1%
Stavanger Forvaltning	5	1%
Nordnet Livsforsikring	4	1%
Sum top 10	306	53%
Total	575	100%

Contract coverage

Charter coverage	Q2 '21	Q3 '21	Q4 '21	Q1 '22
Hunter Freya			Spot
Hunter Disen		TC		Spot
Hunter Idun		TC		Spot
Hunter Frigg			TC	Spot
% days covered	100%	98%	40%	13%
Avg dayrate covered ($k/d)	24,000	16,900	24,000	28,500

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Hunter Group has outperformed the broader market since first delivery

Hunter Group achieved dayrates vs. VLCC benchmark* spot rates

USD/day
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
-10,000	Q4 2019	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021	Q2 2021
		Hunter Group	VLCC spot benchmark

• Adding time charter contracts at the height of the market in 2020 secured premium rates in the period that followed
• Average rates achieved since first delivery in 2019 have been USD ~53,000, compared VLCC spot benchmark of USD ~40,000

Source: Company, Tankers International * 2011 built non-scrubber vessel

Significant upside to EPS when rates increase

EPS (NOK)
1.00
0.90			0.9
0.80
0.70		0.7
0.60
0.50	0.4
0.40
0.30
0.2
0.20
0.10
0.00
30,000	40,000	50,000	60,000
	Achieved rates (USD/day)

• When rates go from USD 30,000 to USD 40,000 per day, earnings increase by almost 100%
• Every USD 10,000 in dayrates increase EPS of approx. NOK 0.2

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