Höegh LNG The floating LNG services provider Corporate Presentation August 2015
Forward looking statements This presentation contains forward-looking statements which reflects management s current expectations, estimates and projections about its operations. All statements, other than statements of historical facts, that address activities and events that will, should, could or may occur in the future are forward-looking statements. Words such as may, could, should, would, expect, plan, anticipate, intend, forecast, believe, estimate, predict, propose, potential, continue or the negative of these terms and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required, Höegh LNG undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changes in LNG transportation and regasification market trends; changes in the supply and demand for LNG; changes in trading patterns; changes in applicable maintenance and regulatory standards; political events affecting production and consumption of LNG and Höegh LNG s ability to operate and control its vessels; change in the financial stability of clients of the Company; Höegh LNG s ability to win upcoming tenders and securing employment for the FSRUs on order; changes in Höegh LNG s ability to convert LNG carriers to FSRUs including the cost and time of completing such conversions; changes in Höegh LNG s ability to complete and deliver projects awarded; increases in the Company s cost base; changes in the availability of vessels to purchase; failure by yards to comply with delivery schedules; changes to vessels useful lives; changes in the ability of Höegh LNG to obtain additional financing, in particular, currently, in connection with the turmoil in financial markets; the success in achieving commercial success for the projects being developed by the Company; changes in applicable regulations and laws; and unpredictable or unknown factors herein also could have material adverse effects on forward-looking statements. 2
Agenda Höegh LNG in brief The LNG market Finance Summary 3
Höegh LNG at a glance Contract EBITDA backlog of approx. USD 3.5 bn Simplified group structure 5 contract awards last 4 years 14 (1) years average remaining contract length Höegh LNG Holdings Ltd. 58% (2) plus IDRs (3) MLP investors 42% NYSE listed MLP with USD 0.5 billion market cap OSE listed with USD 1.1 billion market cap LNG infrastructure assets and activities Höegh LNG Partners L.P. 4 (1) Excluding LNG Libra (2) Economic interest comprised of 8% common units and 50% subordinated units (3) Incentive Distribution Rights
Höegh LNG A preferred provider of floating LNG infrastructure services 1 FSRU FLNG 3 2 LNGC Barriers to entry High risk adj. return Long-term contracts High barriers to entry High returns Long-term contracts Accretive for MLP
Ahead of schedule for 12 FSRUs by 2019 Unit Type Built Charterer HMLP dropdown candidate? 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 Höegh LNG Holdings Ltd Libra LNGC 1979 Gas Natural No SOLD Arctic Princess LNGC 2006 Statoil Maybe Arctic Lady LNGC 2006 Total Maybe Independence FSRU 2014 Klaipedos Nafta Yes Höegh Gallant FSRU 2014 Egas Yes Höegh Grace FSRU 1Q 2016 SPEC Yes FSRU#7 / 2552 FSRU 1Q 2017 Yes FSRU#8 / 2865 FSRU 1Q 2018 Octopus Yes FSRU #9 / Option 1) FSRU 4Q 2018 Yes Höegh LNG Partners LP GDF Suez Neptune FSRU 2009 GDF Suez GDF Suez Cape Ann FSRU 2010 GDF Suez PGN FSRU Lampung FSRU 2014 PGN Contracted Extension option Under construction Firm option under construction HLNG average remaining contract length = 13 years 2) HMLP average remaining contract length = 16 years 6 1) Firm price and delivery slot 2) Excluding LNG Libra
FLNG status Significant progress in Delfin FLNG Project when selecting Bechtel as FEED provider and intended EPCIC contractor Höegh LNG is Joint Venture partner and acts as Owners Engineer in the Delfin FLNG Project Höegh LNG continues to follow its FLNG business model: Pre-FEED / FEED Order after signing a tolling agreement Lower risks lead to longer project schedule, but avoids major capex risk upfront 7
Höegh LNG in brief The LNG market Finance Summary 8
The FSRU Market in 2009 9
The FSRU Market in 2015 Existing Under construction / awarded 10
The FSRU Market in 2015 35 projects in the pipeline.. Existing Under construction / awarded 11
And only four uncommitted FSRU newbuildings on order 10 9 8 8 8 9 7 6 5 4 3 2 1 2 1 1 1 Exmar? 0 Höegh LNG Golar LNG Excelerate BWGas MOL OLT Sovcomflot Modern First generation Conversions 1 2-1 - - - 1? Number of uncommitted FSRUs on order 12
Strong LNG supply growth meeting LNG demand growth MPA 500 Global LNG export MPA 60 U.S. LNG export 400 50 40 300 30 200 20 100 10 0 2000 2005 2010 2015 2020 Australia Asia Russia Quatar ME Africa United States Others 0 2015 2016 2017 2018 2019 Sabine Pass Freeport Cameron Corpus Christi 13 Source: Shell (LHS), company webpages (RHS)
Latest long term FSRU contract in Chile (Octopus LNG) Counterparty Strategic rationale Contract length Project start-up Octopus SpA (Owned 50/50 by Cheniere and Biobiogenera) Increased demand for electricity Government initiated PPA tender Local gas distribution 20 years Mid-2018 Mejillones LNG Quintero LNG Located in Concepcion Bay Annual EBITDA Approximately USD 36 million 14
Höegh LNG in brief The LNG market Finance Summary 15
Improved results reflecting successful start up of projects MUSD Revenue MUSD EBITDA MUSD Net (loss) after tax 70 60 50 40 30 39 41 44 54 63 35 30 25 20 15 15 25 32 10 0-10 -20-30 -40-9 -16-2 6 20 10 10 5 9 5-50 -60-59 0 2q14 3q14 4q14 1q15 2q15 0 2q14 3q14 4q14 1q15 2q15-70 2q14 3q14 4q14 1q15 2q15 16 Numbers based on proportionate consolidation of Joint Ventures
Strong HLNG trading performance since IPO Höegh LNG Holdings Ltd trading Indexed 400 350 300 250 200 150 100 HLNG NO Equity GLNG US Equity EXM BB Equity GLOG US Equity 50 0 04.07.2011 04.07.2012 04.07.2013 04.07.2014 04.07.2015 17
Höegh LNG in brief The LNG market Finance Summary 18
Summary Ahead of schedule for 12 FSRUs by 2019 LNG export capacity to increase with approximately 50% by 2019 Contract EBITDA backlog of approximately USD 3.5 bn Proven access to multiple equity sources 19
Thank you! Questions? 20