Marine Money › system › files › media › mm... · 2017 IGU World LNG Report (Ichthys delay adjusted as per company disclosure) New LNG Supply By Project Start Date Continued

Not For Redistribution

Marine Money

19-21 June 2017

All statements in this presentation that are not statements of historical fact are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, particularly in relation toour operations, cash flows, financial position, liquidity and cash available for dividends or distributions, plans, strategies, business prospects, and changes and trends in our business and the markets inwhich we operate. We caution that these forward-looking statements represent our estimates and assumptions only as of the date of this press release, about factors that are beyond our ability to controlor predict, and are not intended to give any assurance as to future results. Any of these factors or a combination of these factors could materially affect future results of operations and the ultimateaccuracy of the forward-looking statements. Accordingly, you should not unduly rely on any forward-looking statements.

Factors that might cause future results and outcomes to differ include, but are not limited to the following:

general LNG shipping market conditions and trends, including spot and long-term charter rates, ship values, factors affecting supply and demand of LNG and LNG shipping and technological advancements and opportunities for the profitable operation of LNG carriers;

continued low prices for crude oil and petroleum products and volatility in gas prices; our ability to enter into time charters with new and existing customers; increased exposure to spot market and fluctuations in spot charter rates; changes in the ownership of our charterers; our customers’ performance of their obligations under our time charters and other contracts; our future operating performance, financial condition, liquidity and cash available for dividends and distributions; our ability to obtain financing to fund capital expenditures, acquisitions and other corporate activities, funding by banks of their financial commitments, and our ability to meet our restrictive covenants

and other obligations under our credit facilities; future, pending or recent acquisitions of or orders for ships or other assets, business strategy, areas of possible expansion and expected capital spending or operating expenses; the time that it may take to construct and deliver newbuildings and the useful lives of our ships; number of off-hire days, drydocking requirements and insurance costs; fluctuations in currencies and interest rates; our ability to maintain long-term relationships with major energy companies; our ability to maximize the use of our ships, including the re-employment or disposal of ships no longer under time charter commitments including the risk that our vessels may no longer have the latest

technology at such time; environmental and regulatory conditions, including changes in laws and regulations or actions taken by regulatory authorities; the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization standards, requirements imposed by classification societies and standards

imposed by our charterers applicable to our business; risks inherent in ship operation, including the discharge of pollutants; our ability to retain key employees and the availability of skilled labor, ship crews and management; potential disruption of shipping routes due to accidents, political events, piracy or acts by terrorists; potential liability from future litigation; any malfunction or disruption of information technology systems and networks that our operations rely on or any impact of a possible cybersecurity breach; and other risks and uncertainties described in the Company’s Annual Report on Form 20-F filed with the SEC on March 1, 2017 and available at http://www.sec.gov.

We undertake no obligation to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events, a change in our views or expectations or otherwise, except as required by applicable law. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, we cannot assess the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement.

The declaration and payment of dividends are at all times subject to the discretion of our board of directors and will depend on, amongst other things, risks and uncertainties described above, restrictions in our credit facilities, the provisions of Bermuda law and such other factors as our board of directors may deem relevant.

Forward-Looking Statements2

GasLog: A Global Leader In LNG Transportation3

2001 International owner and operator of LNG carriers since 2001 2017

~1,500 employees

onshore and on the vessels

GasLog Ltd.April 2012 IPO

GasLog PartnersMay 2014 IPO

$3.5 billion Q1 17 consolidated

revenue backlog

MonacoAthens

London

Busan (South Korea)

New York

28 VesselsConsolidated fleet

Singapore

Strategy Of Long Term Charters To Quality Customers4

1. The vessel is chartered to Total Gas & Power Chartering Limited, a subsidiary of Total2. On February 24, 2016, GasLog completed the sale and leaseback of the Methane Julia Louise with Lepta Shipping Co., Ltd., a subsidiary of Mitsui Co. Ltd. GasLog Partners retains its option to purchase the special purpose entity that controls the charter

revenues from this vessel3. The vessel is chartered to Pioneer Shipping Limited, a subsidiary of Centrica plc4. Charters may be extended for certain periods at charterer’s option. The period shown reflects the expiration maximum optional period. In addition, the charterer of the Methane Shirley Elisabeth, the Methane Heather Sally and the Methane Alison Victoria

has a unilateral option to extend the term of two of the related time charters for a period of either three or five years at its election. The charterer of the Methane Rita Andrea and the Methane Jane Elizabeth may extend either or both of these charters for one extension period of three or five years

5. Reflects pending acquisition of GasLog Geneva by GasLog Partners from GasLog Ltd.

LNG MARKET

6

2

Attractive Outlook For LNG Shipping

3 FSRUs Creating Incremental Demand

Strong And Growing Demand In New & Existing Markets

1 Significant Increase In Future LNG Supply

4 Limited New Vessel Orders: Expected Shortfall To 2020

5 Tightening Market And Increasing Spot Rates

0.0

20.0

40.0

60.0

80.0

100.0

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New Supply

2017 2018 2019 2020

Online

7

2017 IGU World LNG Report (Ichthys delay adjusted as per company disclosure)

New LNG Supply By Project Start Date

Continued LNG Supply Growth

Over 110 million tonnes per annum (“MTPA”) of new supply coming online 2017 - 2020

Projects expected to use both newbuildings and existing tonnage to meet shipping requirements

8

New LNG Supply Met With Growing Demand

2017 YTD vs. 2016 Comparable Period LNG Imports (million tons)

Source: Poten

LNG Imports

2017 YTD: 118 MTPA

2016 (Comparable Period): 106 MTPA

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

Un

ited

Kin

gdo

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Brazil

Du

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Be

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Pu

erto

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Ind

on

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Lithu

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Un

ited

States

Arge

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a

Me

xico

Ind

ia

Co

lom

bia

Jamaica

Do

min

ican R

ep

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lic

Malta

Ku

wait

Malaysia

Egypt

Israel

Jord

an

Can

ada

Singap

ore

Ne

the

rland

s

Ch

ile

Gre

ece

Po

land

Italy

Taiwan

Thailan

d

Pakistan

Po

rtugal

Spain

France

Turke

y

Sou

th K

ore

a

Ch

ina

Japan

Denotes recent maiden US cargoes

Future Vessel Demand Exceeds The Current Orderbook9

The shortage will be met by new and existing vessels

The analysis above does not include vessel conversions or scrapping

2017 20192018 2020

Potential vessel shortfall of >40 vessels by 2020

Source: IGU and GasLog estimates for vessel demand, assumption of 1 vessel/mtpa for Asia Pacific projects; 1.3 vessels/mtpa for Yamal; 1.5 vessels/mtpa for US projects

0

20

40

60

80

100

120

140

160

Petro

nas LN

G T9

Petro

nas FLN

G Satu

Senkan

g LNG

T1

Sabine

Pass LN

G T3

Go

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Pass LN

G T4

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on FLNG

Whe

atston

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T1

Yamal LN

G T1

Cove Po

int LNG

Ichthys LN

G T1

Ichthys LN

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FLNG

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h LNG

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2

Nu

mb

er o

f Ve

sse

ls

Vessel delivery Vessels Required Vessels required (assuming US 1.7x multiplier)

~60 with 1.7x US

multiplier

10

Source: Poten

Eight new LNG carrier orders placed since fall 2015

LNG vessels take ~2.5 years to build: An order placed now likely delivers H2 2019 / H1 2020

Some vessel deliveries being pushed back to match project start-up dates

New LNG Carrier Orders Placed

New Vessel Orders Continue At Multi-Year Low

54

28

40

66

21

5 3-

20

40

60

80

2011 2012 2013 2014 2015 2016 2017 YTD

Only 8 New Vessels Ordered In The Last 20 Months

Historical Spot Market Availability Vs Rates11

0

20

40

60

80

100

120

140

160

0 5 10 15 20 25 30 35 40 45

Spo

t R

ate

s ($

000

's/d

ay)

Number Of Active Spot Market Vesels

Benchmark Spot Charter Rates vs Active Spot Market Vessels (2010-2017)

Charter Rates below ~US$ 57,500 / day

Charter Rates above ~US$ 57,500 / day

R2 = 0.9

Strong Historical Relationship Between Charter Rates and Number of Spot Vessels

Illustrative EBITDA Sensitivity To Spot Rates12

GasLog currently has five vessels trading in the spot market (all in The Cool Pool)

Each open vessel would earn an incremental $3.6m of EBITDA for every $10,000/day increase in spot TCE rates (~$18m for the five open vessels)

EBITDA Sensitivity To Spot TCE Rates For GasLog’s Five Open Vessels

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

$30,0

00

$40,0

00

$50,0

00

$60,0

00

$70,0

00

$80,0

00

$90,0

00

Illu

stra

tive E

BIT

DA

($m

)

Spot TCE Rate

Source: Company estimate (opex assumed at $15,000/day)s

Significant Inbuilt EBITDA13

2018 – 2019 Newbuild Programme Provides Over $100m Of Annualised EBITDA(1,2,3)

1. EBITDA is a non-GAAP financial measure, and should not be used in isolation or as a substitute for GasLog’s financial results presented in accordance with International Financial Reporting Standards (“IFRS”). For definition and reconciliation of this measure to the most directly comparable financial measures calculated and presented in accordance with IFRS, please refer to GasLog’s most recent quarterly results filed with the SEC on May 5, 2017.

2. EBITDA based on Company estimates3. Contract start dates sometimes differ from vessel delivery dates

Contracted newbuilds typically deliver ~$21-23m of incremental EBITDA per vessel

0

25

50

75

100

125

150

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2H

2018 2019

Incr

em

en

tal E

BIT

DA

($m

)

HullNo. 2212

HullNo. 2131

HullNo. 2800

HullNo. 2130

HullNo. 2801

Tota

l

She

ll

She

ll

She

ll

Ce

ntr

ica

2017

-

5

10

15

20

25

30

2014 2015 2016 Indicative$2.09 / unit

LP GP/IDR

217

543

665

816

111

269

335

403

-

200

400

600

800

1,000

1,200

1,400

2014 2015 2016 2017 YTD

Assumed Debt Equity to GasLog

Number Of Dropdowns Per Year

2 3 1 1

GasLog Partners: Efficient Funding For The Group14

Cumulative Dropdown Gross Proceeds ($m) Annual LP And GP/IDR Distributions to GLOG ($m)

1,000

811

3286

19

22

1. Gross proceeds exclude payment to GasLog Partners to maintain GasLog Ltd’s 2% GP stake2. Distributions based on an annualized $2.09/unit, equivalent to $0.5225 per quarter

1

1,219 26

2

15

2

Ideally Placed To Benefit From Market Opportunities

3 Cashflow Today / Significant Inbuilt Revenue Growth

Strategy Of Long Term Charters To Leading O&G Players

1 Leading LNG Shipping Company, Listed On NYSE

4 Funding Through MLP With Extensive Growth Pipeline

5 Well Funded, Robust Balance Sheet

6 GLOG/GLOP – Offering Investors Attractive Growth/Yield

7 Leveraged To Improving Market