Rahul Sengupta Avinash Nagaraja Kyle Samani Neha Gaddam

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1 Rahul Sengupta Avinash Nagaraja Kyle Samani Neha Gaddam

2 Agenda Thesis Industry Overview Our Company Macroeconomic Catalysts Valuation Summary Q&A

3 Thesis Diverse portfolio of modern tankers Stable future contracts Worldwide increased demand and production of energy resources High dividend yield

4 Investment Philosophy "Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell - John M. Templeton

5 Industry Overview How oil is transported Pipelines Ships Trains Trucks

6 Pipelines

7 Oil Reserves Worldwide

8 Shipping Deliver goods from point A to point B Value is based on: Type of Ship Age of Ship Long Haul Short Haul

9 Our Company Transport crude oil and petroleum products worldwide Major clientele include major national and independent oil companies Versatile fleet of modern crude and product tankers with strong ice class capabilities

10 Our Fleet Diversity 48 Tankers in service 23 Crude oil carriers: 3 VLCC (Very Large Crude Carrier) 10 Suezmax 10 Aframax 25 Product carriers: 3 Aframax LR 7 Panamax 6 Handymax MR 8 Handysize 1 LNG (Liquefied Natural Gas) 4 more Aframax vessels under construction

11 VLCC Most effective way of transporting large volume of oil over long distances Capacity: 2 million barrels

12 Panamax Can transit the Panama Canal fully loaded Capacity: 0.5 million barrels

13 Ice Class 23 ships in our fleet are ice class rated Increased oil demand in winter in the Northern Hemisphere

14 New Regulations

15 New Regulations

16 Double Hull Requirements International Marine Organization All single hulled oil tankers must be decomissioned by % of tankers still single hulled Tsakos advantage Entire fleet is double hulled

17 Risks Calibration of supply and demand Prolonged lower oil production Piracy Higher operating costs

18 Map of Operations

19 Our Fleet Age One of the youngest fleets in the industry Average age of our fleet: 6.3 years Average age of industry: 9.8 years Tankers usually scrapped after years

20 Them

21 Us

22 Types of Contracts Time charter Vessel leased for a specific amount of time Few months to several years Payment 30% on fixed rate 70% on variable rate Predictable cash flows Spot charter Single voyage Payment based on market rates Either on a $/tonne or on a lump sum basis Higher profit margins

23 Operational Costs Vessel Costs Includes: Crew, maintenance, insurance, etc. Between $8,500 $9,500/day Voyage Costs Includes: Fuel costs, port and canal fees, etc. Fuel accounts for 59% of voyage cost

24 Who Pays What? Time charter Charterer bears voyage costs Short term contracts Tsakos bears vessel costs Long term contracts Charterer bears vessel costs Rental car Spot charter Tsakos bears all costs Taxi

25 Tsakos Contracts 2/3 of fleet on time charters Most due to expire between Just re-signed a 2 year extension on a Suezmax (Decathlon) 1/3 of fleet on spot charters Single voyage Above average fleet utilization: 97.1% 59% of 2010 days are booked

26 Fleet Utilization

27 Our Customers

28 Tsakos Group Affiliation Technical management by Tsakos Shipping 87 vessels under management One of the largest tanker managers in the world Economies of scale Procuring supplies Underwriting insurance

29 Macroeconomic Catalysts Future oil consumption Location of oil wells Emerging markets

30 Do I See China? China is on a materials rampage Buying up as much resources as possible Nigerian Oil Well Bid Kazak Oil Fields

31 And India? 75% of crude oil is imported $61.72 billion worth of crude oil

32 Cars, Cars, Cars!

33 Today

34 Tomorrow

35 Oil Production and Consumption

36 Oil Consumption by Region

37 Baltic Dry Index Compiled daily by the Baltic Exchange Tracks international shipping prices of dry bulk cargoes Accurate barometer of future global trade

38 Baltic Dry Index and TNP Baltic Dry Baltic Dry Index Index TNP Stock Performance

39 Relative Valuation Company Market Cap P/E Revenue/Ship ($ Millions) ROE Tsakos Energy Navigation Hornbeck Offshore Services 550M % M % General Maritime Corporation M % Overseas Shipholding Group 1,110M %

40 Ship Revenue Revenue per Ship 18 Revenue/Ship ($ Millions) Taskos Energy Navigation Hornbeck Offshore Services General Maritime Corporation Overseas Shipholding Group

41 Dividends Company Dividend Yield (%) Tsakos Energy Navigation 7.05 Teekay Corp Overseas Shipholding Group 4.23 Diana Shipping Hornbeck Offshore Services None None Next Ex-Dividend date: October 20 th, 2009

42 Dividend Yield

43 Book Value/Share

44 Price/Book Value per Share

45 Summary Fleet Diverse portfolio to meet our customers needs Modern ships complies with new regulations Long term stability High fleet utilization Generated a net profit every year since inception Economies of scale arising from our relationship with Tsakos Shipping Macroeconomic catalysts Increased demand for oil transportation by sea Financials Great dividend yield

46 Q & A Questions?

Business Performance in FY2009 and Outlook for FY2010. Mitsui O.S.K. Lines, Ltd. April 2010

Business Performance in FY2009 and Outlook for FY2010 Mitsui O.S.K. Lines, Ltd. April 2010 HP Contents FY2009 Results [Consolidated] 2 Key Points of FY2009 Full-year Results [Consolidated] 4 Results Comparison