Odfjell SE - Chemical Tanker Industry Update

Summary - Covid-19 creates high uncertainties for future demand, but demand still looks likely to continue surpassing net fleet growth in the years to come Covid-19 O Relatively resilient to Covid-19 impact so far - Essential Products & wide product mix are key ORegional outbreaks and a reduction in fleet supply has given a short-term boost to our markets We still expect tonne-mile growth between 2 to 4 per cent p.a. through 2022 depending on the outcome for the global economy following Covid-19 Chemical tanker tonne-mile demand, Billion tonne-miles Other chemical products New capacity O New organic capacity led to strong demand growth of 6 and 8 percent in 2018 and 2019 A slowdown in new capacity is expected to normalise demand growth rates between 2020 and 2022 Demand growth Regulations Swing tonnage Tonne-mile demand forecasted to grow between 2 to 4 percent on average between 2020 and 2022 A slow recovery post Covid-19 to result in low growth (2%) and 2021 recovery in high growth (4%) Forecast Vegoils Inorganic chemicals 1138 1102 1058 1006 Organic chemicals 938 854 868 898 777 755 738 788 805 669 688 376 365 385 358 263 255 286 301 333 298 309 339 351 245 250 126 132 136 122 106 94 106 109 108 102 99 101 109 115 119 265 302 329 332 330 333 358 362 385 448 482 506 524 377 397 2008 2009 יי YOY +3% 2% to growth 4% Source: Odfjell SE p.a. 2012 2013 2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E Dependent on outcome of covid- 19 for the global economy O Regulations to positively impact fleet growth until 2022 and maybe also beyond A large share of the tanker fleet needs replacement by 2025 - But propulsion dilemma a positive hurdle The market has gone through a period with high fleet growth, but we expect growth to decline to 1% on average p.a. through 2022 Deep-sea fleet development, DWT mill. O Low orderbook also the case neighbouring crude and product tanker segments OA positive development in competition from swing tonnage could therefore be expected O Current orderbook to fleet ratio for chemical tankers is 4.9%, an all-time low Fleet growth O Fleet growth estimated to be 1% on average per year between 2020 and 2022 30 Forecast Core fleet Swing/other fleet 88 89 81 92 16 94 95 95 17 17 17 75 72 15 16 64 66 68 13 61 13 57 12 50 10 11 12 12 10 9 68 72 74 76 77 78 78 62 47 51 53 54 56 59 41 2008 2009 2010 12 YoY growth +1% p.a. Source: Odfjell 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E +/- Swing tonnage

View entire presentation