Webinar presentation 28 April 2016

Webinar 28 April 2016 You have successfully joined JSC “Latvijas kuģniecība” webinar hosted by:

Robert Kirkup Santa Spūle Ģirts Apsītis Chairman of the Finance Director Advisor to the Chairman of Management Board the Management Board

The webinar will be activated on April 28, 2016 at 16:00 (EET)

Meanwhile please send your questions in advance to: [email protected]

Webinar 28 April 2016 AGM decisions in a nutshell

. 2015 Annual Accounts approved

. 2015 profit will be used to cover accumulated loses from previous years

. 2016 Annual Accounts will be audited by «KPMG Baltics»

. New Supervisory Council elected

. 75 % shareholders support for share capital increase was not reached

Webinar 28 April 2016 Refinancing

USD 48.6 million loan: USD 360 million loan: • Loan Agreement dated June 2011 • Loan Agreement dated December 2004 • Financed fleet: 2 vessels • Financed fleet: 14 vessels • Lenders: Credit Agricole - CIB • Lenders: syndicate of 6 banks (originally • Borrowers: 2 single vessel companies, 9 banks) 100% subsidiaries of Arctic Holding • Corporate guarantors: LSC Holdings Ltd. Corp. and JSC Latvijas kuģniecība • Balance 31/12/2015: USD 35.1 million • Borrowers: 14 single vessel companies, • Maturity: 100% subsidiaries of LSC Holdings Ltd • m/t Latgale – 22 June 2016 • Balance 31/12/2015: USD 156.1 million • m/t Zemgale – 21 July 2016 • Maturity: 30 June 2017 • Payment at maturity: • Payment at maturity: USD 126.1 million • m/t Latgale– USD 17.0 million • m/t Zemgale– USD 17.0 million

Webinar 28 April 2016 Plan B

Options to fulfil debt obligations: 1) capital raising – not supported by shareholders 2) refinancing 3) asset selling

Negations with banks initiated: • extension of $34.0mm loan facility till June 2017 • new joint loan facility from syndicate with smaller amount of involved banks from June 2017

Webinar 28 April 2016 SIA «SKONTO NAFTA»

100% 100% 100% 100% 100% 100% SIA «NAFTA INVEST» Latvia LATMAR HOLDINGS CORPORATION SIA «LASCO INVESTMENT» LSC HOLDINGS LIMITED ARCTIC HOLDING CORPORATION Liberia Latvia, In Insolvency Proceedings Isle of Man Marshall Islands Property : In , Japanese Embass

100% REEFERLAT LATALPHA LATTANKERS LATSTRAND BRASLA SIA «LSC SHIPMANAGEMENT» HOLDINGS HOLDINGS HOLDINGS HOLDINGS KOLKA NAVIGATION INC. SHIPPING CORPORATION Latvia CORPORATION CORPORATION CORPORATION CORPORATION Marshall Islands Liberia Liberia Liberia Liberia Marshall Islands m.t. «Latgale» Sub-holding Sub-holding Sub-holding Sub-holding Dormant IMULA SHIPPING CORPORATION KALTENE NAVIGATION INC. ANTONIO GRAMSI LATGALE VIKTORIO MAHOE DZONS RIDS Marshall Islands SIA «RĪGAS LĪCIS» SIA «LASCO Marshall Islands m.t. «Zemgale» SHIPPING CORPORATION SHIPPING COMPANY LIMITED SHIPPING CORPORATION SHIPPING COMPANY LIMITED SHIPPING CORPORATION Dormant Liberia Malta Liberia Cyprus Liberia Latvia NEKUSTAMIE ĪPAŠUMI» Dormant Dormant Dormant In liquidation Dormant Property: In Jurmala, Latvia

KULDIGA NAVIGATION INC. HOSE MARTI SIA «VENTSPILS BIZNESA Marshall Islands APOLLO LATMAR WILCOX HOLDINGS LIMITED SHIPPING CORPORATION CENTRS» Latvia HOLDINGS CORPORATION SHIPPING COMPANY LIMITED Dormant Liberia Liberia Property: Office building in Cayman Islands Cyprus Dormant Ventspils Dormant In liquidation Investment company KABILE NAVIGATION INC. IMANTA SIA «DARĪJUMU CENTRS Marshall Islands ARCTIC SEAL LIMETREE ZEMGALE SHIPPING COMPANY LIMITED SHIPPING COMPANY LIMITED SHIPPING COMPANY LIMITED SHIPPING COMPANY LIMITED Malta DAUGAVA» Latvia m.t. «Krisjanis Valdemars» Cyprus Malta Malta Dormant Property: Preses Nams, Dormant Dormant Dormant NAVIGATION INC. MAJORI Marshall Islands ATLANTIC LEADER NOELLA ZOJA SHIPPING COMPANY LIMITED SIA «PĀRVENTAS SPORTA m.t. «Kandava» SHIPPING COMPANY LIMITED MARITIME COMPANY LIMITED SHIPPING COMPANY LIMITED Malta CENTRS» Latvia Cyprus Cyprus Cyprus Dormant Dormant Dormant Dormant KAZDANGA NAVIGATION INC. TALAVA Marshall Islands SHIPPING COMPANY LIMITED SIA «LEJASTIEZUMI» Latvia m.t. «Kazdanga» CAPE WIND PINEWOOD Malta TRADING COMPANY SHIPPING CORPORATION Dormant Liberia Liberia Dormant Dormant NAVIGATION INC. KURSA NAVIGATION INC. Marshall Islands Marshall Islands m.t. «» m.t. «Kraslava» CLIPSTONE NAVIGATION S.A. RAZNA Liberia SHIPPING CORPORATION Dormant Liberia Dormant SLOKA NAVIGATION INC. NAVIGATION INC. Marshall Islands Marshall Islands m.t. «Ance» m.t. «Ugale» DAWNLIGHT SHIPPING COMPANY LIMITED RIGA MARITIME LLC Cyprus Marshall Islands Dormant Dormant NAVIGATION INC. SALACGRIVA NAVIGATION INC. Marshall Islands Marshall Islands m.t. «Usma» m.t. «Jurkalne» FAROSHIP NAVIGATION SAGEWOOD TRADING INC. COMPANY LIMITED Liberia Cyprus NAVIGATION INC. NAVIGATION INC. Dormant Dormant Marshall Islands Marshall Islands m.t. «Targale» m.t. «Ainazi» GAIDA SAMBURGA SHIPPING CORPORATION SHIPPING COMPANY LIMITED Liberia Cyprus Dormant Dormant STRAUPE NAVIGATION INC. NAVIGATION INC. Marshall Islands Marshall Islands m.t. «Salacgriva» m.t. «Puze» GEVOSTAR SATURN SHIPPING COMPANY LIMITED TRADING CORPORATION Cyprus Liberia Dormant Dormant NAVIGATION INC. Marshall Islands m.t. «Uzava» KEMERI TAGANROGA NAVIGATION CORPORATION SHIPPING CORPORATION Liberia Liberia Active companies Dormant Dormant Single vessel companies KLEMENTS GOTVALDS TANGENT SHIPPING CORPORATION SHIPPING COMPANY LIMITED Companies in liquidation/dormant Liberia Cyprus Dormant Dormant Companies involved in UK litigations LASCO Investment companies under LSC Group control LASCO Investment

• Legacy over LASCO Investment regained in August, 2015 • The current market value of properties owned by LASCO Investment is EUR 26m, while its outstanding debt against Ventspils nafta – EUR 41m, against LSC Group – EUR 63m. • LASCO Investment liabilities are limited within LASCO Investment Group, no parent company guarantees issued. • LSC intends to sell these properties at an orderly market price (‘as is’) rather than developing them as this is a non-core activity. • The properties are in prime locations in Riga, Jurmala, Ventspils and the surrounding areas and include: • SIA Darijuma centrs Daugava (Riga): partially rented out • Building at A.Briana 3 (Riga): rented out • SIA Rigas Licis (Jurmala): conserved / offers received • SIA Ventspils business centre (Ventspils): rented out • Property Lejastiezumi (outside Ventspils): sold • Ventspils sport hall: sold

Webinar 28 April 2016 Fleet 2016

• No changes in commercial fleet expected: • 12 Medium range tankers - average age of 8 years • 4 Handy size tankers - average age of 9 years

• Strong emphasis on technical management of third party vessels: • 16 LSC owned tankers • 6 third party tankers • one additional third party tanker is expected to be received in May • active negotiations with different third party shipowners Q&A