Investing in LNG Propulsion Erik-Jan Verdegaal CFO Anthony Veder

15-3-2016

Contents

• Introduction

• Anthony Veder and LNG

• Retrofit of the Coral Anthelia

• The Sustainable Shipping Loan

• Questions

15-3-2016 Anthony Veder – Investing in LNG Propulsion

History

15-3-2016

We have a long-standing maritime history

2010

Focus on LPG, NH3 and LNG

1990

Focus on gas shipping only

1968

First gas tanker built

1945

World War II

1937

Establishment

Anthony Veder – Investing in LNG Propulsion

15-3-2016

Our fleet

1,000 – 3,000 (1)

3,000 – 4,000 (3)

4,000 – 5,0002(5)

5,000 - 6,500 (9)

6,500 – 8,000 (5)

6,500 (1)

7,500 (1)

16,000 (1)

18,000 (2)

35,000 (1)

1 All LNG carriers have dual fuel engines 2 Two Ethylene carriers have dual fuel engines 3 One 5,800 cbm LNG bunker-feeder vessel (dual fuel) on order and one 18,000 cbm LNG Carrier ICE Class 1A Super on order

Small to midsize

LNG (3) 1, 3

Handy & Midsize (3)

Petchem (23)

“Leading European

player”

“Market leader &

pioneer”

“Challenger”

Current fleet by

size, cbm

(# of vessels)

Segment

(# of vessels)

Position

Maintain strong

customer base and

stable cash flow

Diversify geographical presence and customer

base Strategy

Anthony Veder – Investing in LNG Propulsion

Contents

• Introduction

• Anthony Veder and LNG

• Retrofit of the Coral Anthelia

• The Sustainable Shipping Loan

• Questions

15-3-2016 Anthony Veder – Investing in LNG Propulsion

Advantages of LNG

Environment

Reserves

Expected long-term

price

LNG as fuel

LNG fuel burns much cleaner than diesel,

substantial reduction of:

- Fine particle

- NOx emissions

- SOx emissions

Estimated that there are 5x as much

natural gas reserves:

- Natural gas reserves for 250 years

- Crude oil reserves for 50 years

In the long term, the expected price of

LNG is lower than the price of diesel.

Anthony Veder – Investing in LNG Propulsion 15-3-2016

Our small scale LNG fleet Coral Methane

Delivery 2009

Size 7,500 cbm

Cargo LNG/LPG/Ethylene

Dimensions 118 x 19 x 6.4 m

Engine DFDE Rolls Royce

Coral Energy

Delivery 2013

Size 15,600 cbm

Cargo LNG

Dimensions 156 x 23 x 7.4 m

Engine Wärtsilä 8L50DF

Coral Anthelia

Delivery 2013 (retrofit 2014)

Size 6,500 cbm

Cargo LNG/LPG/Ethylene

Dimensions 115 x 17 x 7 m

Engine MAK 6M46DF

15-3-2016 Anthony Veder – Investing in LNG Propulsion

The first LNG propelled LEG carriers

Particulars Dimensions Fuel Gas system

Size 4,700 cbm Delivery 2014 Length 100 m Bunker

tanks

2 * 100 cbm

Tanks 2 x Type C Propulsion DF Breadth 17 m Bunker

interval

2 weeks

Cargo Ethylene/LPG Manifold Low Draught 6.5 m LNG

loading

Truck

Anthony Veder – Investing in LNG Propulsion 15-3-2016

Contents

• Introduction

• Anthony Veder and LNG

• Retrofit of the Coral Anthelia

• The Sustainable Shipping Loan

• Questions

15-3-2016 Anthony Veder – Investing in LNG Propulsion

15-3-2016

Retrofit of the Coral Anthelia LPG/LEG/LNG carrier (6,500 cbm)

- Delivery in 2013: conventional six-cylinder

MaK M43C diesel engine.

- New target:

- LNG boil-off gas as fuel

- Not completely replacing the old

engine.

- Solution in 2015: a MaK M46 dual-fuel

engine.

- Partners: Damen Shiprepair Rotterdam (Van

Brink shipyard), Bolier (MaK dealer), Croon

Elektrotechniek (electrical contractor),

Leemberg (piping contractor) and Eekels

(ship automation contractor).

Anthony Veder – Investing in LNG Propulsion

15-3-2016

Financing of retrofit

Key points:

- Cost of 15% of new-build price

- Loan-to-value

- Who will finance?

Reasons for success:

- Relationship bank

- Value of the retrofit

- Sustainable investment

Anthony Veder – Investing in LNG Propulsion

Contents

• Introduction

• Anthony Veder and LNG

• Retrofit of the Coral Anthelia

• The Sustainable Shipping Loan

• Questions

15-3-2016 Anthony Veder – Investing in LNG Propulsion

15-3-2016

On order: Coral EnergICE ICE Class 1A Super LNG Carrier (18,000 cbm)

- Long term time charter contract

with Gasum (Finland) / Skangas

- LNG cargo is to fuel the

propulsion

- Reduction of impact on marine

life (green options for chemicals

in antifouling, lubricants and

ballast water treatment)

Anthony Veder – Investing in LNG Propulsion

15-3-2016

1st Certified Sustainable Shipping Loan

The Sustainable Shipping Loan:

- EUR 66 million

- Competitive margin

- Leverage >80%

- 20 year tenor

- Amortising repayment profile

Anthony Veder – Investing in LNG Propulsion

15-3-2016

The Sustainable Shipping Framework

Bureau Veritas provided a positive second opinion on the transaction’s sustainable credentials.

Clean Shipping

Index

Sustainability Assessment

Tool

Framework

Based on Green Bond Principles

Benchmarking tool to evaluate

the environmental performance

of ships and carriers (Stichting

De Noordzee is actively

involved in the development of

the environmental criteria)

Sustainability Assessment

tool developed by ABN Amro

to asses Anthony Veder

Group

Anthony Veder – Investing in LNG Propulsion

15-3-2016

The reasons for success

Certification of the financing is the result of:

(i) Anthony Veder’s dedication to sustainable shipping,

(ii) The eco-friendly design of the LNG vessel,

(iii) Sourcing and use of the product to reduce emissions in Finland by Gasum/

Skangas, and

(iv) ABN AMRO’s expertise in sustainable financing.

Anthony Veder - Investing in LNG Propulsion

Contents

• Introduction

• Anthony Veder and LNG

• Retrofit of the Coral Anthelia

• The Sustainable Shipping Loan

• Questions

15-3-2016 Anthony Veder – Investing in LNG Propulsion