Odfjell SE - Chemical Tanker Industry Update

Efficient capital structure Debt Equity LTV & Equity ratio Financial targets Break-even FCF to equity ROIC Long-term priority We continue to focus on reducing our cash break-even in order to generate positive cash flows in any market cycle Odfjell Tankers historical Break-even (USD/day) 30,000 Cost savings initatives 26,099 Capital structure Initiatives 25,000 23,137 22,851 21,393 21,544 21,148 20,084 20,000 18,000/ 19,500 15,000 10,000 5,000 2014 2015 2016 2017 2018 2019 mar-20 Target 16 Break-even comments We target to lower our cash break-even to USD18,000 - USD19,500 per day This positions us to generate positive cash flow in every cycle We believe this will lower our cost of capital and improve our competitiveness in the future This is to ensure we can deliver on our financial strategy Break-even levels increased in 2019 driven by increased debt and reduced number of operating days of our owned fleet Timing to successfully reach these levels are market dependent... ... But we expect to reach this level by 2022 should the current earnings environment continue through 2020 and 2021

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