Klaveness Combination Carriers (KCC) Pareto Securities' 32nd Annual Energy Conference Presentation summary

Business model and innovation

• Focuses on combining dry bulk and tanker cargoes to maximize trading efficiency and reduce ballast voyages.

• CABU and CLEANBU vessels serve diverse cargoes, including caustic soda, petroleum products, vegetable oils, and dry bulk.

• New vessel concepts (XBU) aim to further integrate dry bulk and tanker operations.

• Addresses inefficiencies in shipping, reducing empty trading to ~10% compared to 30-50% for standard vessels.

• Achieves 30-40% lower fuel consumption per metric ton transported versus standard vessels.

Decarbonization and regulatory positioning

• Demonstrates profitable decarbonization through higher trading efficiency and operational improvements.

• Prepares for future fuel transitions to maintain flexibility and compliance.

• Superior carbon efficiency leads to lower compliance costs under new IMO regulations.

• Anticipates higher TCE earnings as regulatory costs increase for less efficient competitors.

• IMO Net Zero Framework adoption and implementation expected between 2025 and 2028.

Financial performance and risk management

• Maintains high contract coverage, keeping fleet in profitable trades across both dry bulk and tanker markets.

• Delivers best risk-adjusted return on invested capital among peers from 2019 to Q2 2025.

• Diversified market exposure supports stable TCE earnings through market cycles.

• Consistent quarterly dividends since 2019, with a policy to distribute at least 80% of adjusted cash flow.

• Share buyback program complements dividend policy.