Höegh LNG - the FSRU provider

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Q1 2019Presentation of financial results

29 May 2019SHI 2220 on gas trials

Forward looking statements

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This presentation contains forward-looking statements which reflects management’s current expectations, estimates and projections about Höegh LNG’s

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; changes to 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, including the impact from changes in financial markets;

changes in the ability to achieve 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.

Agenda

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▪ Highlights

▪ Operational update

▪ Market update

▪ Financials

▪ Summary

Highlights for the first quarter of 2019 and subsequent events

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Highlights

▪ EBITDA of USD 55.9 million

▪ Net profit of USD 4.5 million

▪ Dividend of USD 0.025 per share paid in the first quarter of 2019

Subsequent events

▪ Dividend of USD 0.025 per share declared for the second quarter of 2019

▪ AIE’s Port Kembla FSRU project received development consent

▪ First class renewal survey afloat completed for FSRU Independence

▪ HMLP has issued new units under its ATM programme: net proceeds of USD 2.2 million

Agenda

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▪ Highlights

▪ Operational update

▪ Market update

▪ Financials

▪ Summary

Höegh LNG: Commercial progress – continued operational excellence – financing according to plan

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▪ Höegh Grace and Höegh Gallant refinancing completed (as announced in 4Q report)

▪ Contract backlog providing solid support for up-coming refinancings

▪ Sale and leaseback financing of FSRU #10 in final documentation phase

Financing

Operational

▪ 100.0% technical availability across the global fleet

▪ Excellent HSEQ statistics - Zero LTIs last 20 months

▪ First class renewal afloat completed

Commercial

▪ Selected as the FSRU provider for three projects and in final round of one ongoing tendering

process. Important progress made for all four projects

▪ Continued firm demand for FSRUs and busy business development activity. Backed, among other

factors, by the drive to replace polluting fuels with natural gas, especially in Asia

Progress made for projects with near-term FID decision

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▪ Crib Point, Victoria,

Australia

▪ Höegh LNG signed

TCP in December 2018

− 10-year contract

− Annual EBITDA

USD 29-31 million

▪ Conditional on FID

− EIS well under way

▪ Start-up 2020/21

▪ Port Kembla, New South

Wales, Australia

▪ Höegh LNG has achieved

exclusivity

− TCP under negotiation

▪ Conditional on FID

− Governmental development

consent given in April

− Gas supply contract

negotiations with industrial

customers ongoing

▪ Start-up 2020/21

▪ South Asian market

▪ Höegh LNG has achieved

exclusivity

▪ Conditional on FID

− In the process of securing

necessary operating permits

▪ Start-up 2020/21

▪ Tendering, Höegh LNG

in final round

FSRU project

#3

FSRU project

#4

Built EBITDA Charterer

USDm/yr

Höegh LNG Holdings

Arctic Princess* 2006 19** Equinor

Arctic Lady* 2006 19** Total

Independence 2014 47 KN

Höegh Giant 2017 Naturgy / AGL

Höegh Esperanza 2018 CNOOC / LT contract

Höegh Gannet 2018 Naturgy / LT contract

FSRU#10 2019 Spot / LT contract

Höegh LNG Partners

Neptune 2009 33** Total

Cape Ann 2010 33** Total

PGN FSRU Lampung 2014 40 PGN

Höegh Gallant 2014 38*** Egas / Gunvor

Höegh Grace 2016 42 SPEC

Long-term contract Extension option Under construction

2036 20382024 2026 2028 2030 2032 2033 2035 203720342027 2029 20312025

FSRU and/or LNGC

intermediate charter

2020 20222019 2021 2023

Improving contract coverage

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* LNG carriers

** 100% basis, units are jointly owned

AGL - Conditional on FID

Long-term business under development

AIE - Conditional on FID

*** Currently on LNG charter with Clearlake Shipping (Guvor subsidiary) with annual EBITDA contribution of around USD 16

million. The difference in revenue between the original FSRU contract with Egas and the new LNG carrier time charter for the

balance of the charter was recognised in Q4 2018 although Egas continues to compensate for this difference on a monthly

basis until the expiration of the original FSRU contract

Long-term business under development

Long-term business under development

Agenda

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▪ Highlights

▪ Operational update

▪ Market update

▪ Financials

▪ Summary

Natural gas is the backup and bridge fuel for the renewable future

▪ Natural gas is displacing coal

and oil – contributing to

reduced greenhouse gas

emissions and improved local

air quality

▪ LNG gives markets with

insufficient indigenous gas

supply the opportunity to

replace pollutive fuels with

gas

▪ FSRUs represent the most

cost- and time efficient import

access to global LNG markets

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Global fuel consumption by source

Source: BP Energy Outlook

LNG supply: Significant volume growth potential as new projects ramp up production and take FID

▪ Supply growth driven by Atlantic

Basin capacity additions:

− Ramp-up at Yamal LNG

− Corpus Christi LNG T1, Sabine Pass

T5 entering commercial operations

− First cargoes from Elba Island LNG

and Cameron LNG expected soon

− Ichthys LNG and Prelude LNG

(Australia) also contributing

▪ Solid momentum for US LNG

− LNG contracting volumes increase

− 3 US LNG projects with recent

regulatory approvals

− Golden Pass LNG FID Feb-2019

▪ LNG Canada, Qatargas V-VIII

adding to future volumes

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Source: IHS Markit

291

28 319

24

3120

91 485

0

100

200

300

400

500

2017 volumes 2018 volumegrowth

2018 volumes 2018 additionsramping up

2019 additions 2020 additions 2021-2025additions

End-2025potential

mill

ion t

onnes p

er

annum

LNG supply additions

Additions from FIDed projects FID taken 2018/19 Qatargas V-VIII

LNG demand: Solid LNG trade growth continues in 2019

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Source: IHS Markit / Waterborne

15

17

19

21

23

25

27

29

31

33

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

mill

ion t

onnes

LNG trade by month, global

2014 2015 2016 2017 2018 2019

▪ Total volumes up 12% y/y in the

first quarter of 2019

▪ Europe taking a larger share of

imports due to pricing

▪ Continued growth in China;

imports up 24% y/y first 3

months of 2019 to around 16

million tonnes

Strong FSRU market potential

▪ Kaliningrad FSRU inagurated in

January 2019

▪ FSRUs arriving and preparing

for long-term business in

Bangladesh and Brazil

▪ India and Turkey will have new

FSRUs installed later in 2019

▪ Potential new FSRU projects

not included (30 - 40)

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FSRU terminals in operation (24)

FSRU projects under development (10 – 12)

0

2

4

6

8

10

12

Höegh LNG Excelerate Golar LNG BW LNG Other Captive Barge

Units

FSRU fleet by owner and orderbook1 by owner

Conv FSRU NB FSRU NB order Conv order Potential NB Barge Barge order

34 FSRUs currently on the water – 12 new units scheduled to deliver through 2022

▪ World fleet: 34 FSRUs

− 27 purpose-built FSRUs

− 5 LNGC-to-FSRU conversions

− 2 barges

▪ Global orderbook: 12 units

− 8 purpose-built FSRUs

− 2 LNGC-to-FSRU conversions

− 1 LNGC-to-powership conversion

− 1 barge

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OLTMOL

Gazprom

Kol / Kal

SWAN

Java-1

Source: Höegh LNG1 Orderbook defined as confirmed orders, excluding LOIs, options and conversions not firmed up

Maran

Dynagas

KALMOL

Botas

JSK

Exmar

GasfinDynagas

Agenda

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▪ Highlights

▪ Operational update

▪ Market update

▪ Financials

▪ Summary

Income statement for the quarter ended 31 March 2019

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45,0 40,3

9,3

5,5 9,1

6,1

0,2 4,5

0,0

10,0

20,0

30,0

40,0

50,0

US

D m

illio

n

Net profit variation

IFRS 16

effects

USD million1Q 2019 4Q 2018

Total income 84.3 122.3

Charterhire and other expenses 0.2 -9.7

Operating expenses -15.8 -18.0

Administrative and BD expenses -12.8 -13.2

EBITDA 55.9 81.4

Depreciation -26.1 -17.0

Impairment 0.0 0.0

EBIT 29.7 64.4

Net finance -23.5 -17.5

Profit before taxes 6.2 46.9

Corporate income tax -1.7 -1.9

Profit for the period 4.5 45.0

Financial position at 31 March 2019

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▪ IFRS 16 – Leases implemented with an increase in

the balance sheet at 31 March 2019

− Right-of-use assets: USD 215 million

− Interest-bearing lease liabilities: USD 217 million

▪ Book equity ratio (adjusted for mark-to-market of

hedges) of 33%, down from 36% owing to effects of

implementation of IFRS 16 – Leases

▪ Net interest bearing debt at 31 March 2019 of USD

1,463 million

USD million31-Mar-19 31-Dec-18

Investments in FSRUs 2,106 1,908

Investments in newbuildings 91 89

Other 130 144

Cash and short-term restricted cash 165 164

Total assets 2,492 2,305

Equity attributable to the parent 474 500

Non-controlling interests 281 287

Total equity 755 787

Interest bearing debt 1,647 1,433

Other 91 85

Total equity and liabilities 2,492 2,305

NIBD 1,463 1,251

Adjusted equity 822 830

Adjusted equity ratio 33% 36%

Cash flow statement for the quarter ended 31 March 2019

▪ Stable cash position quarter-on-quarter

▪ HMLP’s USD 63 million credit facility was undrawn

at 31 March 2019

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USD million1Q 2019 4Q 2018

Net CF from operating activities 50.2 52.2

of which working capital adjustments -0.6 -22.6

Net CF from investing activities -3.5 -204.1

of which investments in FSRUs -3.9 -179.5

Net CF from financing activities -46.3 117.4

of which new debt 320.0 175.0

of which debt repayment -330.8 -21.5

of which interest paid -16.1 -17.4

of which distributions to NCI -11.2 -11.2

of which HLNG dividends -1.9 -1.9

Net change in cash and cash eq. 0.4 -34.5

Current cash and cash eq., start 158.0 192.4

Current cash and cash eq., end 158.4 158.0

Manageable and laddered-out debt repayment profile

191) All balloons assumed refinanced in full, extending current amortisation profiles

▪ Financing/refinancing completed in 1Q2019:

− Höegh Grace / Höegh Gallant refinancing:

▪ USD 303 million under previous financing repaid / USD 320

million drawn in Q1 2019.

− Sale and leaseback financing for FSRU#10 is currently in the

final documentation phase

▪ Next refinancing - debt maturing in 2020:

− Independence, commercial tranche: USD 61 million

− HLNG02 bond loan: USD 130 million

0

50

100

150

200

250

300

350

400

450

2-4Q19 2020 2021 2022 2023 2024 2025 2026

US

D m

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Debt repayment schedule

Amortisation Amortisation of new/refinanced debt Balloons Bonds1

HL

NG

02

HL

NG

03

Capex commitments and sources

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▪ FSRU#10: Remaining installments and expenses:

USD 184 million

− To be funded by sale and leaseback financing with USD 178

million upon delivery. Remaining amount to be funded by existing

cash in the group

▪ Avenir: USD 18 million remaining capital commitment

− To be funded by existing cash in the group

▪ Class survey/dry dockings in 2019: Estimate a total

cost of USD 7-8.5 million for Höegh Gallant and PNG

FSRU Lampung in 2019.

− To be funded by existing cash in the group

▪ Additional sources of funding:

− USD 63 million credit facility in HMLP (undrawn)

− Potential for up to USD 87 million in increased leverage from

existing debt arrangements on Höegh Giant, Höegh Esperanza

and FSRU#10. Availability is subject to long-term FSRU contracts

FSRU#10

AvenirOther

Debt

Cash at hand

Additional sources of

funding (incl. potential)

0

50

100

150

200

250

300

350

400

Capex Funding

US

D m

illio

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Capex and funding

Agenda

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▪ Highlights

▪ Operational update

▪ Market update

▪ Financials

▪ Summary

Summary

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Firm progress on 4 new FSRU contracts

Continued strong growth in demand for LNG - driven by both price and environmental factors

EBITDA of USD 55.9 million and net profit of USD 4.5 million for Q1 2019

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Q&A session

29 May 2019 - 09:00 CET

Call-in details:

Norway +47 2350 0296

United Kingdom +44 (0)330 336 9411

United States +1 646 828 8143

Participant passcode: 5661091

Webcast:

http://webtv.hegnar.no/presentation.php?webcastId= 97815904