Team Tankers Management AS Formerly Eitzen Chemical ASA Annual Report 2014 Table of Contents Description of the Company ................................................................................................................................... 4 Introduction to the chemical tanker market .......................................................................................................... 9 Board of Directors’ report .................................................................................................................................... 14 Statement of responsibility .................................................................................................................................. 22 Consolidated Income Statement .......................................................................................................................... 23 Consolidated Statement of Comprehensive Income ............................................................................................ 24 Consolidated Statement of Financial Position ...................................................................................................... 25 Consolidated Cash Flow Statement ...................................................................................................................... 26 Consolidated Statement of Changes in Equity ..................................................................................................... 27 Notes to the Financial Statements ....................................................................................................................... 28 Income Statement – Parent Company ................................................................................................................. 59 Statement of Financial Position – Parent Company ............................................................................................. 60 Cash Flow Statement – Parent Company ............................................................................................................. 61 Notes to the Financial Statements – Parent Company ......................................................................................... 62 Sustainability report ............................................................................................................................................. 72 Corporate Governance Principles ......................................................................................................................... 75 Auditor’s report .................................................................................................................................................... 80 Fleet list as of 31 December 2014 ........................................................................................................................ 82 Description of the Company Overview of the Company Team Tankers Management AS (the “Company”), formerly Eitzen Chemical ASA1, was until 5 March 2015 the ultimate parent company in the Team Tankers Management group of companies (the “Group”). On 5 March 2015, 99.63 per cent of the shares in the Company were exchanged into shares in Team Tankers International Ltd. Following the completion of the exchange, Team Tankers International Ltd. continues the business previously carried out with the Company as the ultimate parent company. The Company is a leading marine chemical and related products transportation company with a sailing fleet of 47 vessels as of year-end 2014, of which 35 were owned, 6 were on financial lease and 6 were on operational lease. The Company transports a wide variety of cargoes such as organic chemicals, non-organic chemicals, clean and dirty petroleum products, vegetable oils and lube oils. The fleet consists of coated and stainless steel vessels ranging from 3,500 to 46,000 dwt, primarily designed for the transport of IMO II classified chemical cargoes. The vessels are employed in the spot market or chartered out through time charter agreements or Contracts of Affreightment (CoAs). The vessels are commercially operated through offices in Denmark, Spain, USA and Singapore. The commercial offices communicate on a common IT platform, which includes global voyage management and communication systems to ensure that commercial activities are co-ordinated and optimised between the various commercial offices. The technical management of the owned vessels is handled by Selandia, V.Ships and Thome Ship Management. The Company has a global presence as illustrated in the figure below. Oslo, Norway Copenhagen, Denmark Westport, CT, USA Houston, TX, USA Hamilton, Bermuda Marbella, Spain Singapore The Company’s vision, mission and core values The Company has a clearly defined vision and mission statement and a set of core values, which we strongly believe will ensure that the Company grows a value-creating and sustainable business. Vision Superior commitment to customers and quality creates value. Mission We are an ambitious global organization with focus on: • Safety & environment 1 On 20 March 2015, Eitzen Chemical ASA was transformed from a public limited company to a private limited company, and changed its company name to Team Tankers Management AS. 4 • Customers • Quality • People • New thinking • Being proactive Core values • Respect • Commitment • Sincerety & Honesty Our core values are reflected in everything we do. They are an integrated part of how we conduct our business. Overview of the Company’s fleet As of 31 December 2014, the fleet consists of 47 chemical tankers ranging from 3,500 dwt to 46,000 dwt. Cargo segregations vary from 12 to 30, and the fleet consists of both coated and stainless steel vessels. Of the owned and leased fleet at the end of the year, 27 were coated and 20 were stainless steel. The Company ranks amongst the 10 largest chemical tanker operators in the world, based on number of vessels in its fleet and average vessel size measured in dwt. With an average fleet age of less than ten years, the Company operates a young and modern chemical tanker fleet. Of the vessels operated by the Company, 35 were at year-end 2014 owned through subsidiaries in Singapore and Norway. In January 2015, 30 vessels were sold to subsidiaries in Bermuda and three vessels were sold to an unrelated third party, and leased back on bareboat charter parties. The remaining two vessels owned through subsidiaries in Singapore are expected to be sold in the first half of 2015. 12 of the vessels operated by the Company at year-end 2014 are chartered in on time charter or bareboat contracts, most of them with purchase options. The vessels which are chartered in are classified as financial or operating leases in the Company’s financial statements. Owned vessels The following table provides an overview of the key vessel data as of 31 December 2014. Technical Vessel Built Dwt Flag Ship owning company Coating IMO mgmt. Siteam Adventurer 2007 46,026 Singapore Eitzen Chemical Thome Epoxy / Zinc II (Singapore) Pte. Ltd. Siteam Explorer 2007 46,026 Singapore Eitzen Chemical Thome Epoxy / Zinc II (Singapore) Pte. Ltd. Siteam Voyager 2008 46,017 Singapore Eitzen Chemical Thome Epoxy / Zinc II (Singapore) Pte. Ltd. Siteam Leader 2009 46,017 Singapore Eitzen Chemical V.Ships Epoxy / Zinc II (Singapore) Pte. Ltd. Siteam Discoverer 2008 46,005 Singapore Eitzen Chemical Thome Epoxy / Zinc II (Singapore) Pte. Ltd. Siteam Anja 1997 44,640 Marshall Eitzen Chemical Thome Epoxy II/III Islands (Singapore) Pte. Ltd. Sichem Eagle 2008 25,421 Singapore Eitzen Chemical V.Ships Epoxy II (Singapore) Pte. Ltd. Sichem Falcon 2009 25,419 Malta Eitzen Chemical V.Ships Epoxy II (Singapore) Pte. Ltd. Sichem Hawk 2008 25,385 Malta Eitzen Chemical V.Ships Epoxy II (Singapore) Pte. Ltd. Sichem Osprey 2009 25,431 Malta Eitzen Chemical V.Ships Epoxy / Zinc II (Singapore) Pte. Ltd. 5 Technical Vessel Built Dwt Flag Ship owning company Coating IMO mgmt. Sichem Defiance 2001 17,396 Marshall Eitzen Chemical Selandia Stainless Steel II Island (Singapore) Pte. Ltd. Sichem Rio 2006 13,162 Italy Eitzen Chemical Selandia Epoxy II (Singapore) Pte. Ltd. Sichem Edinburgh 2007 13,153 Singapore Eitzen Chemical Selandia Marineline II (Singapore) Pte. Ltd. Sichem Singapore 2006 13,141 Italy Eitzen Chemical Selandia Epoxy II (Singapore) Pte. Ltd. Sichem Manila 2007 13,125 Singapore Eitzen Chemical Thome Marineline II (Singapore) Pte. Ltd. Sichem Paris 2008 13,079 Singapore Eitzen Chemical Selandia Epoxy II (Singapore) Pte. Ltd. Sichem Hong Kong 2007 13,069 Singapore Eitzen Chemical Selandia Epoxy II (Singapore) Pte. Ltd. Sichem Beijing 2007 13,068 Singapore Eitzen Chemical Selandia Epoxy II (Singapore) Pte. Ltd. Sichem Montreal 2008 13,056 Singapore Eitzen Chemical V.Ships Epoxy II (Singapore) Pte. Ltd. Sichem New York 2007 12,945 Singapore Eitzen Chemical V.Ships Epoxy II (Singapore) Pte. Ltd. Sichem Melbourne 2007 12,937 Singapore Eitzen Chemical Selandia Epoxy II (Singapore) Pte. Ltd. Sichem Marseille 2007 12,928 Singapore Eitzen Chemical Selandia Epoxy II (Singapore) Pte. Ltd. Sichem Dubai 2007 12,889 Malta Eitzen Chemical Selandia Epoxy II (Singapore) Pte. Ltd. Sichem Challenge 1998 12,181 Singapore Eitzen Chemical Selandia Stainless Steel II (Singapore) Pte. Ltd. Sichem Fumi 1996 11,674 Panama Eitzen Chemical Thome Stainless Steel II (Singapore) Pte. Ltd. Tour Pomerol 1998 10,379 Singapore Eitzen Chemical Invest V.Ships Stainless Steel II (Singapore) Pte. Ltd Sichem Palace 2004 8,807 Singapore Eitzen Chemical Thome Stainless Steel II