DNB Oil, Offshore and Shipping Conference Presentation – March 5, 2014

March 5, 2014

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1. Buy and sell assets at the right time

2. Operate vessels safely and efficiently

3. Finance with competitively priced capital

How to Make Money in the Tanker Market

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Pure Play on Cyclical Recovery in Crude Tankers

• Tanker Investments Ltd. (“TIL”) is a new tanker company

focused on maximizing shareholder value by strategically

acquiring, operating and selling crude oil and product tankers

at the right time in the tanker market cycle

Profile

Strategy

• Buying and selling modern second-hand tankers at strategic

times throughout the tanker market cycle

• Operate in Teekay-managed pools to maximize profitability

• Enhance profits by investing in low-cost fuel saving vessel

modifications

• List on Oslo Stock Exchange (OSE) in Q1-14 and grow

through further accretive vessel acquisitions

4

TIL Represents a Significant Teekay Group Investment

in the Crude Tanker Market Recovery

Teekay

Corporation

(NYSE:TK)

Tanker

Investments Ltd. (Marshall Island)

Teekay Group

Conventional Tanker

Franchise

- Sale and purchase

- Pools (Aframax RSA, Gemini

Suezmax Pool)

- Commercial management

- Technical management and

oversight

Financial

Investors

10.0%

80%

Services

TIL is the first significant tanker investment by the Teekay Group since 2007

Teekay

Suezmaxes

Initial

Secondhand

Aframaxes

Teekay

Tankers Ltd.1

(NYSE:TNK)

10.0%

1 Teekay Corporation currently has a 25.1% economic ownership in Teekay Tankers Ltd. and has 53.1% voting control through ownership of Class B supervoting shares

TIL Holding LLC

Additional

Secondhand

Aframax

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TIL Current Fleet Vessel Specifications

4 x Aframax specifications

Yard Hudong Zhonghua

Shipbuilding

Built 2009/2010

DWT 109,000

LOA 243m

Depth 22m

Beam 42m

4 x Suezmax specifications

Yard Bohai Shipbuilding

Built 2009

DWT 159,000

LOA 275m

Depth 24m

Beam 48m

1 Aframax

Yard Tsuneishi Shipbuilding

Company

Built 2009

DWT 107,530

LOA 244m

Depth 21m

Beam 42m

Initial fleet Add-on acquisition

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Secondhand Vessel Prices at a cyclical low

Source: Clarksons

Aframax asset prices

30

40

50

60

70

80

90

100

110

120

2013 2012 2011 2014 2009 2004 2005 2010 2007 2008 2003 2006

USDm

10y avg. 5 y-old

Suezmax 5 y-old

10y avg. NB

Suezmax NB

Suezmax asset prices

Upside to 10y avg.

12%

40% NB

5y-old

Newbuild prices have recently turned and secondhand prices have historically followed with a 3-6 month lag

20

30

40

50

60

70

80

90

100

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2014

USDm

10y avg. 5 y-old

Aframax 5 y-old

10y avg. NB

Aframax NB

Upside to 10y avg.

32%

9%

5y-old

NB

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Freight Market Has Hit Rock Bottom…

…But Rates have Recently Rallied

Suezmax

Source: Clarksons

80

60

40

160

140

120

100

20

0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

USD/d (‘000)

10y avg. spot rate

Avg. Suezmax spot rate

10y avg. 1y TC rate

Suezmax 1y TC rate

90

30

60

Feb Jan Dec

0

USD

/day

(‘0

00

)

Aframax

2006 2005 2003 2004

90

80

70

60

50

40

30

20

10

0

2014 2013 2012 2011 2010 2009 2008 2007

USD/d (‘000)

10y avg. TC rate

Aframax 1y TC rate

10y avg. spot rate

Avg. Aframax spot rate

90

60

30

0

Feb Jan

USD

/day

(‘0

00

)

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Attractive Crude Tanker Supply Fundamentals

With a Shrinking Mid-Size Tanker Fleet

Source: Clarksons, Company estimates 1Orderbook adjusted to deduct for vessels being built at distressed shipyards in China and Brazil 2 Indicates orders that are at distressed shipyards in China and Brazil

Aframax fleet set to shrink by 5-6% Suezmax fleet to increase by 1% or

less depending on yards at risk

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Kashagan field online from 2014 – export routes

through the Black Sea / Med

Kozmino pipeline expansion creates Aframax /

Suezmax demand in the East

3 Key Trade Reasons Why Aframax / Suezmax Demand

is Set to Improve

Changing dynamics in North American trade flows

Expanded Panama

Canal opens up new

trade routes for mid-

size crude tankers

North America could

emerge as a significant

exporter of crude oil

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Current Secondhand Tanker Prices Provide Attractive

Returns as the Market Reverts to the Long-Term Average

1Average acquisition price for first 4 Aframax vessels

5 year-old Suezmax prices

40.8

66.0

0

10

20

30

40

50

60

70

USDm +38%

10y avg Acquisition price

48.0

7.2

29.0

50.0

0

10

20

30

40

50

60

70

Acquisition price1

37.0

USDm

8.0

+35%

10y avg

5 year-old Aframax prices

Current fleet is already in-the-money

Acquisition price Uplift to current FMV

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• Strategically target vessels based on class, age and quality

○ Utilize existing platform / commercial pools (Aframax, Suezmax)

○ May also opportunistically target other vessel classes (Panamax, VLCC)

○ Target 1-7 year old vessels prior to 2nd special survey

○ Focused on quality vessels that can achieve maximum pool points

• Diverse acquisition approach:

○ Single ship purchases, En bloc fleet acquisitions, Ship-for-shares transactions

• Sourced through direct relationships with shipbrokers, other ship

owners and banks

• Maintain financial and contract flexibility

○ Intend to trade all vessels in the spot market

○ Currently working with bank group to provide TIL with a revolving credit facility to

partially finance potential future tanker acquisitions

Vessel Acquisition Strategy

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Experienced Leadership Team

William Hung

CEO

Scott Gayton

CFO Mark Cave

Corporate

Secretary

1. Kenneth Hvid - Director

2. William Lawes - Director

3. Timothy Gravely - Independent Director

4. Alan Carr - Independent Director

5. Oivind Solvang – Independent Director

Strong Partner in Teekay Corporation

Executive

Board of Directors

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Operational

Financial Technical

Commercial

Trusted Partner That Brings

40 Years of Tanker Company Expertise

→ Strong customer

relationships with Oil

Majors and

Commodities Traders

→ A trusted provider of

3rd Party Commercial

Management

Services

→ Deep S&P knowledge

→ Regionally-based

commercial teams

across the globe

→ Operating one of the

world’s largest

conventional fleets

→ Recognized leader in

Operational Excellence

and Safety (HSEQ)

→ Technical expertise to

optimize vessel

performance and 24/7

management

→ Diversified access to

capital sources and

active relationships with

over 30 banks and

Export Credit Agencies

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TIL Fleet to be Commercially and Technically

Managed by the Teekay Conventional Tanker Franchise

1 As of 31 October 2013

33 vessels under management1

4 members

AFRAMAX RSA

Teekay pools provide

economies of scale

and higher utilization

27 vessels under management1

10 members

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Savings of Approximately USD 1,500 Per Day

* Based on 13-14 knots fully laden

0

10

20

30

40

50

60

70

80

US

D 0

00

’s / d

ay

Source: Clarksons

Bunker Cost vs. Spot TCE 1998-2013

Bunker Cost Aframax spot TCE

In 1998, cost of

bunkers was ~15%

of voyage revenue

In 2013, cost of

bunkers is ~67% of

voyage revenue

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Investment in Fuel-Saving Vessel Upgrades

Can enhance vessels with a variety of fuel saving modifications:

1. Propeller Boss Cap Fins

2. Mewis Ducts

3. Innovative Hull Coating

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Tanker Investments Ltd.

Right time

in the cycle to invest

Favorable

supply/demand fundamentals

Significant value

appreciation potential

Co-invest alongside

industry leader

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