Klaveness Combination Carriers

Investor Presentation • Feb 25, 2020

Q4 2019 presentation Oslo, 25 February 2020

Strong Q4 performance on firm CABU TCE earnings

Disclaimer

This presentation has been prepared by Klaveness Combination Carriers ASA (the "Company") and is furnished to you for information purposes only and may not be reproduced or redistributed, in whole or in part, to any other person. The presentation does not constitute or form part of any offering of securities, and the contents of this presentation have not been reviewed by any regulatory authority.

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This presentation speaks as of February 2020. Neither the delivery of this presentation nor any further discussions by the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. The Company does not intend to, or will assume any obligation to, update this presentation or any of the information included herein.

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Highlights

Business and market update

2019 Q4 and full year results

Summary and outlook

Enclosures

Purpose built vessels designed for efficient trading Highlights

Unique proprietary vessel designs 9x CABU vessels

Designed to safely and efficiently carry and switch between dry and wet cargo

Servicing the alumina/aluminium industry

3+5x CLEANBU vessels

WET/ DRY

WET/ DRY

Expanding service to the petroleum/petrochemical industries

WET/ DRY

WET/ DRY

WET/ DRY

WET/ DRY

WET/ DRY

The most carbon efficient deep-sea transportation solution today – prepared roadmap to reach carbon neutrality within 2030 Highlights

30-40% more carbon efficient than standard vessels in main trades today

Detailed environmental strategy setting ambitious decarbonization targets

Full transparency of environmental performance – 3rd party audit by EY

Best quarterly results over last 18 months Highlights

Strong CABU TCE earnings and CLEANBU TCE in combi-trades	• CABU of \$19,002/day • CLEANBU of \$18,715/day
Improved EBITDA and positive EBT for the year	• 15% EBITDA improvement compared to Q3 2019 • EBT of USD 1.7 million in Q4 2019 and USD 0.6 million for full year 2019
Progress in the phase-in of the CLEANBUs	• Building track record with increasing number of customers, cargoes and terminals
2020 CSS bookings for the CABUs on track	• Expected higher TCE on CSS COAs for 2020 ~70% of CSS capacity booked for the full year and 94% for 1st • half 2020
Continue quarterly dividend payments	• USD 0.5 million / USD 0.01 per share dividends

Highlights

Business and market update

2019 Q4 and full year results

Summary and outlook

Enclosures

Strong CABU performance – TCE earnings 1.2x to standard MR tankers in 2019 Business and market update | CABU

Quarterly CABU TCE Earnings per onhire day

USD per onhire day and premium to standard MR-tankers (T) and panamax dry bulk (B)

Annual CABU TCE Earnings per onhire day

USD per onhire day and premium to standard MR-tankers (T) and panamax dry bulk (B)

Source: Baltic Exchange, Clarksons Note: TCE Earnings is an alternative performance measure (please see slide 33-37 in enclosures for more details)

High CSS shipments in Q4 2019 with further increase expected in 2020 Business and market update | CABU

of CSS cargoes shipped/booked

• Q4 2019 CSS shipment volumes in line with Q3 2019. Alunorte production back to 90% of nameplate-capacity in Q4
• Higher CSS cargo contract bookings for 1H 2020 in both Pacific and Atlantic
• Expect contract renewals to bring CSS contract volume for 2H 2020 in

Step by step proving performance, expanding customer base and trading pattern Business and market update | CLEANBU

Successful performance - customers ready for more business and terminals welcome the CLEANBU vessels back

Lower share of days in combination trading in Q4 2019 Combi-earnings level maintained at premium to LR1 tankers Business and market update | CLEANBU

CLEANBU onhire days¹ CLEANBU TCE earnings per on-hire day (\$/d)1,2

1) Definition of combi trade for CLEANBU corrected from Q3 to Q4

Note: TCE Earnings is an alternative performance measure (please see slide 33-37 in enclosures for more details and reconciliation)

11

CLEANBU 2019 earnings at par with LR1-tankers amidst of a phase-in Business and market update | CLEANBU

CLEANBU TCE Earnings USD per on-hire day and premium to standard LR1 (T) and Kamsarmax dry bulk vessels (B)¹

1) Market LR1 earnings is average daily spot LR1 earnings as reported by Clarksons while Kamsarmax spot earnings is average 5TC-routes for a 82,500 dwt vessel as reported by Baltic Exchange Note: TCE Earnings is an alternative performance measure (please see slide 33-37 in enclosures for more details)

Continued improvement in operational performance in Q4 2019, but guarantee works and upgrading lead to off-hire Business and market update | CLEANBU

of CLEANBU offhire days in 2019 and YTD 2020

In yard for 45 days during Q4 2019 for guarantee and upgrading works – no further outstanding guarantee items

• MV Barracuda and MV Barramundi Outstanding guarantee items implying off-hire target repairs during next special survey in 2022
• Delayed deliveries due to Corona-virus outbreak Current expectation basis resumption of production at
  • − CLEANBU #4: 2 months delay delivery early May
  • − CLEANBU # 5-8: 1-2 months delay

Reach IMO 2030 targets within 2022 and carbon neutrality within 2030 Business and market update | Environmental performance

CO2 emissions reductions – carbon neutral operation

• Within 2022: Reduce average CO2 emissions per vessel in KCC's fleet by minimum 15% compared to actual 2018 levels 1 2
  • Within 2030: Achieve carbon neutral operation within 2030

KCC CO2 emission per vessel in KCC's fleet in mt/year

Reach IMO 2030 carbon intensity target in 2022

• Within 2022: Achieving 40% reduction compared to actual standard vessels in KCC's trades in 2018
• Within 2030: Achieving 60% reduction compared to actual standard vessels in KCC's trades in 2018

KCC Target Carbon Intensity¹

1) Carbon intensity per tonne-mile for KCC's total fleet and estimated carbon intensity per tonne-mile for standard vessels in KCC's trades in 2018

Improvements in all environmental KPIs in Q4, but mixed results for 2019 due to less optimal CABU trading and CLEANBU phase-in¹ Business and market update | Environmental performance

1) EEOI (Energy Efficiency Operational Index) is defined by IMO and represents CO2 emitted per transported cargo per nautical mile for a period of time (both fuel consumption at sea and in port included). The EEOI and % ballast for "Benchmark standard vessels" are calculated based on standard vessels (Panamax dry, MR-tankers and LR1-tankers) making the same transportation work in the same trades as performed by KCC's CABU and CLEANBU vessels. The EEOI for "Benchmark standard vessels" is calculated as the weighted average of EEOI for the individual trades performed. End date of a voyage is decisive for periodization of ballast days and CO2 emission (EEOI). The average CO2 emissions per vessel is calculated based on the total CO2 emissions for the fleet, divided on the number of ship years. Number of ship years is the total calendar time minus offhire time while new delivered vessels are counted from date of delivery. Quarterly figures are annualized for average CO2 emission per vessel.

15

Business and market update | OPEX

CABU OPEX in line with expectation and underlying CLEANBU OPEX moving down, but Q4 OPEX affected by start-up costs and guarantee docking

CABU OPEX in line with expectations Higher CLEANBU OPEX in Q4 partly due to costs linked to guarantee docking of MV Baru

CABU OPEX USD per day CLEANBU OPEX USD per day

Note: OPEX USD per day (CABU Opex \$/d) is an alternative performance measure (please see slide 33-37 in enclosures for more details)

Business and market update

High financial market/coverage in H1 2020

• H2 2020 coverage set to increase over the coming months

Financial/market coverage

Share of estimated rate (i.e. price) exposure that has been fixed for 2020

Freight market bottomed out in February. Several possible positive macro drivers and potential "catch-up" effects once COVID-19 situation is settled Business and market update

• Both tanker and dry bulk markets seems to have bottomed out in the middle of February
• Global industrial production in cyclical low and has just turned a corner
• Signs of China complying with US trade agreement boosting potential demand for grains and coal
• Potential for Chinese economic stimulus impacting growth in iron ore exports from Brazil and Australia
• Effects on effective supply in both tanker and dry bulk markets

-1 400 -1 150

-900

-650

-400

-150

100

350

600

850

Markets pricing in v-shaped recovery for dry bulk and product tankers Business and market update

19

Source: Company data, Clarksons, Baltic Exchange 2) Fuel prices are basis Singapore excl . delivery premiums

Highlights

Business and market update

2019 Q4 and full year results

Summary and outlook

Enclosures

Higher profits driven by more CABU on-hire days 2019 Q4 and full year results

Year-on-year results (MUSD) Q4 2019 vs Q4 2018

Improved EBT on the back of stronger tanker markets, more CABU on-hire days and higher caustic soda in-take 2019 Q4 and full year results

Quarter-on-quarter results (MUSD)

Q4 2019 vs Q3 2019

Positive underlying profit for 2019 of USD 5.2 million and untapped potential through normalized CLEANBU operations 2019 Q4 and full year results

Underlying EBT(MUSD)

2019 EBT impacted by lower caustic soda cargo volumes, CLEANBU introduction and negative MTM 2019 Q4 and full year results

Income Statement ('000 USD)	Q4 2019	Q4 2018	2019	2018
Net revenues	18 826	14 990	61 327	56 393
Operating expenses, vessels	(8 512)	(5 870)	(29 913)	(21 599)
SG&A	(1 275)	(1 206)	(5 651)	(4 036)
EBITDA	9 038	7 914	25 763	30 757
Depreciation	(4 530)	(4 457)	(14 070)	(16 841)
EBIT	4 508	3 458	11 692	13 917
Net financial items	(2 759)	(2 852)	(11 081)	(5 140)
Profit before tax	1 749	607	612	8 777
Tax	(15)	59	(15)	59
Profit after tax	1 734	665	597	8 836
EPS	0.04	0.02	0.01	0.23

• Profit of USD 1.7 million for the quarter and USD 0.6 million for the year
• CABU earnings of USD 19,002/day for the quarter and USD 16,877/day for the year
• CLEANBU earnings of USD 18,715/day for the quarter and USD 18,300/day for the year
• Increase in operating expenses due to CLEANBU
• Administration costs is up compared to 2018 partly due to listing, increased complexity and higher activity level
• Close to zero in changes fair value of derivatives this quarter, however negative non-cash effects from derivatives of USD 2.6 million for the year compared to positive USD 1.1 million in 2018

Limited refinancing risk as KCC03 bond has been refinanced 2019 Q4 and full year results

Maturity profile¹

Bond

• Successful NOK 500 mill bond issue in February 2020 (KCC04)
• Margin down from 5.25% in KCC03 to 4.75%
  • NOK 138 mill of KCC03 repurchased, remaining NOK 162 mill likely be called in November 2020

Bank

• Bank debt secured for the three newbuilds with delivery in 2020
• Process to finance remaining two vessels with delivery in 2021 initiated with good initial feedback
• Klaveness has a strong relationship to its key banks and has added new banks to the bank group the last year

Continued dividend payments and solid financial position 2019 Q4 and full year results

47% Equity ratio

4%

Adjusted ROCE

14.8MUSD Operating cash flow 2.9MUSD Dividend 2019

Note: ROCE Adjusted is an alternative performance measure (please see slide 33-37 in enclosures for more details)

Highlights

Business and market update

2019 Q4 and full year results

Summary and outlook

Enclosures

Summary and outlook

CABUs with a strong start of 2020 - high CSS bookings for 2020	High CSS bookings with 94% CSS coverage in 1H 2020 and 70% for full year1 • • Strong start of 2020, Q1 2020 is expected in line with Q4 2019 for CABUs • Lagged effect from poor markets in Q1 will affect TCE earnings for Q2 2020
Strong CLEANBU combi	• Proven earnings capacity in combi-trading (2019: ~\$22,400/d)
earnings and higher share	• Higher share of CLEANBUs in combi trading as new combi-trades are established
in combi-trading in 2020	• Technical phase-in progressing
Still corona-virus risks but likely "catch-up" effects into the spring if situation is resolved	• Risks connected to Corona virus outbreak, but KCC more resilient to Corona-virus effects than most shipping companies • Signs of Corona cases stabilizing in China and Chinese economy slowly restarting • All freight markets bottomed out - forward markets price in V-shaped recovery

Future bound.

Highlights

Business and market update

2019 Q4 and full year results

Summary and outlook

Enclosures

Fleet list Enclosures

Vessel	Type	Built	Yard	DWT	Flag	Manager	Ownership
MV Banastar	CABU	2001	Oshima, Japan	72 562	MI	KSM AS2	100%
MV Barcarena	CABU	2001	Oshima, Japan	72 562	NIS	KSM AS	100%
MV Banasol	CABU	2001	Oshima, Japan	72 562	MI	KSM AS	100%
MV Bangor	CABU	2002	Oshima, Japan	72 562	NIS	KSM AS	100%
MV Bantry	CABU	2005	Oshima, Japan	72 562	MI	KSM AS	100%
MV Bakkedal	CABU	2007	Oshima, Japan	72 562	MI	KSM AS	100%
MV Baffin	CABU	2016	Ouhua Zhejiang, China	80 200	MI	KSM AS	100%
MV Balboa	CABU	2016	Ouhua Zhejiang, China	80 200	NIS	KSM AS	100%
MV Ballard	CABU	2017	Ouhua Zhejiang, China	80 200	MI	KSM AS	100%
MV Baru	CLEANBU	2019	YZJ, China	82 400	MI	KSM AS	100%
MV Barracuda	CLEANBU	2019	YZJ, China	82 400	MI	KSM AS	100%
MV Barramundi	CLEANBU	2019	YZJ, China	82 400	MI	KSM AS	100%
MV Baleen 1	CLEANBU	05/2020 (E)	YZJ, China	82 500 (E)	MI	KSM AS	100%
1 MV Bangus	CLEANBU	10/2020 (E)	YZJ, China	82 500 (E)	MI	KSM AS	100%
1 MV Baiaco	CLEANBU	12/2020 (E)	YZJ, China	82 500 (E)	MI	KSM AS	100%
MV Bass 1	CLEANBU	Q1/2021 (E)	YZJ, China	82 500 (E)	MI	KSM AS	100%
1 MV Balzani	CLEANBU	Q1/Q2/2021 (E)	YZJ, China	82 500 (E)	MI	KSM AS	100%

Structure Enclosures

Definitions and reconciliation

• TCE earnings = time charter equivalent earnings equals net average revenue per on-hire day as further described in the quarterly report for Q4 2109, note 11 (page 24) which is published on the company's homepage: https://www.combinationcarriers.com/investor-relations/#reports-presentation
  • CABU and CLEANBU TCE earnings per on-hire day for Q4 periodic and 2019 total are reconciled in the quarterly report for Q4 2109, note 2 (page 16-17).
  • CABU and CLEANBU TCE earnings per on-hire day for Q3 and Q2 are reconciled in the quarterly report for respectively Q3 2019 and Q2 2019, note 2 (page 15/page 15).
  • CABU and CLEANBU TCE earnings per on-hire day for Q1 2019 are reconciled on next slide.
  • CABU TCE earnings for 2016-2018 reconciled on next page.
• CABU Opex \$/d for Q4 periodic and 2019 total are reconciled in the quarterly report for Q4 2019, note 2 (page 16-17).
• CABU Opex \$/d for Q2 2019 Q3 2019 are reconciled in the quarterly report for respectively Q3 2019 and Q2 2019, note 2 (page 15/page 15).
• CABU Opex \$/d for Q1 2019 are reconciled on next slides
• CLEANBU Opex \$/d for Q1-Q4 2019 are reconciled on next slides
• EBT = Earnings before tax equals Profit before tax in the income statement
• Underlying EBT is defined as EBT excluding items that are not considered as part of normal operation and effects from financial items not realized. The Group has adjusted for one off costs related to start up of the CLEANBU vessels and other operating expenses occurred before delivery of the CLEANBU vessels. Underlying EBT is included because the management believes that the measure provide information of the Group's profitability beyond the phase in period of the CLEANBU fleet.
• EBT normalized CLEANBU operations is underlying EBT for 2019 adjusted for lost average earnings for offhire days in 2019 and adjusted for higher opex in the introduction phase of the CLEANBUs. The management believes that the measure provide information of the Group's profitability beyond the phase in of the CLEANBUs.
• ROCE adjusted see definition and reconciliation in Note 11 (page 24) in Q4 2019 report published: https://www.combinationcarriers.com/investor-relations/#reportspresentation

Reconciliation of average TCE earnings USD/day

USD'000	2016	2017	2018
Net revenues from operations of vessels	41 026	46 245	56 393
Other revenue	275	(603)	(675)
Commercial fee to Klaveness AS (AS Klaveness Chartering)	2 195	2 522
IFRS 15 adjustment (load-to-discharge)			373
Net revenues from operations of vessels ex commercial fee	43 496	48 164	56 091
Onhiredays	2 274	3 048	3 224
TCE earnings (\$/d)	19 133	15 794	17 398

USD'000	CABU	CLEANBU	Total Q1 2019
Net revenues from operations of vessels	12 981	358	13 339
IFRS 15 adjustment (load-to-discharge)	(28)		(28)
Net revenues ex IFRS adjustment	12 953	358	13 311
Onhiredays	805	33	838
TCE earnings (\$/d)	16 088	10 875	15 883

Reconciliation CLEANBU earnings in combi trade and outside combi trade

#Days CLEANBU trading
#Days	Q1 2019	Q2 2019	Q3 2019	Q4 2019	Total 2019
In combi trade	0	43	112	127	285
Outside combi trade	33	32	24	91	180
Total days CLEANBU	33	75	136	218	465
Net revenue CLEANBU trading
USD'000	Q1 2019	Q2 2019	Q3 2019	Q4 2019	Total 2019
In combi trade		776	2 717	2 819	6 312
Outside combi trade	358	187	390	1 266	2 201
Total net revenue CLEANBU	358	964	3 107	4 085	8 514
CLEANBU net revenue per on-hire day trading
\$/d	Q1 2019	Q2 2019	Q3 2019	Q4 2019	Total 2019
In combi trade		18 159	24 203	22 151	22 127
Outside combi trade	10 875	5 849	16 248	13 910	12 232
Total net revenue per on-hire day	10 875	12 905	22 802	18 715	18 300

Reconciliation Opex \$/d CABU (Q1-2019) and CLEANBU (Q1-Q4 2019)

Reconciliation of CABU opex per day Q1 2019
USD'000	CABU	CLEANBU	Total Q1 2019
Operating expenses, vessels	5 733	1 229	6 962
Start-up cost CLEANBU vessels		553 -	553
Opex vessels not delivered
Operating expenses, vessels adjusted	5 733	676	6 409
Operating days	810	80	890
Opex per day (\$/d)	7 078	8 451	7 202

USD'000	Q1 2019	Q2 2019	Q3 2019	Q4 2019	2019
Operating expenses, vessels	1229	1 755	2 132	3 115	8 231
Leasing cost previously presented as opex	18		23	31	12
Start-up cost CLEANBU vessels	553	369 -	647	155	1 724
Crew cost after delivery (adj/reclass)	109				109
Operating expenses vessels not delivered		392	144	152	688
Operating expenses, vessels in operation	803	ਰੇਰੇਪ	1 364	2 839	6 000
Operating days	80	ਰੀ	165	276	612
Opex per day (\$/d) for vessels in operation	10 032	10 921	8 267	10 287	9 804

Reconciliation underlying EBT and EBT normalized CLEANBU operation

USD'000	Q4 2019	2019
Profit before tax (EBT)	1 749	612
Start up costs CLEANBU vessels	155	1724
Reversal provision	285	285
Listing costs		600
Fair value changes in FFA (Q4 2019, note 7)	483	21
Gain/loss on foreign exchange (Q4 2019,	ਰੇਰੇ 8	1 074
Fair value changes interest rate swaps (Q4 2019, note 7)	1 469	3 660
Underlying EBT	1 631	5 216
CLEANBU no off-hire (114 days x 18,300 \$/d)		2 086
CLEANBU opex @ 8,000 \$/d ( (10,751 \$/d - 8,000 \$/d) x 579 days)		1 ਦੇਰੇਤ
EBT Normalized CLEANBU operations		8 895