IGM Financial Investor Presentation March 2026 Caution concerning forward-looking statements Certain statements in this report, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect IGM Financial Inc.'s (IGM Financial, IGM or the Company) and, where applicable, its subsidiaries' and strategic investments', current expectations. Forward-looking statements are provided to assist the reader in understanding the Company's, and its subsidiaries and stra ...

Financial Data and Key Metrics Changes - In Q4 2025, the company reported a net profit of $109.7 million, contributing to a full-year net profit of $339.7 million, indicating solid performance [5][22] - The adjusted EBITDA for Q4 was $149.7 million, with a return on equity of 14.8% and a return on invested capital of 11.2% for the full year [22] - The net loan-to-value (LTV) ratio increased from 20.5% at the end of Q3 to 24.9% at the end of Q4, primarily due to the investment in TORM [23] Business Line Data and Key Metrics Changes - The company continued its fleet renewal strategy, divesting older vessels while acquiring new ones, including the delivery of the Ecomar Gironde [6][7] - Fee-based businesses contributed $6.9 million in fee income for Q4 [22] - The average time charter equivalent (TCE) income for Q4 was $27,346 per day, with TCE income totaling $259 million [25] Market Data and Key Metrics Changes - The product tanker market remained seasonally firm in Q4, supported by growth in refined oil exports and higher crude oil exports [11] - The U.S. Gulf experienced historically high earnings in the clean product segment, while the overall net fleet growth for product tankers remained limited due to sanctions [14][16] - Clean petroleum product volumes on the water reached their highest levels in nine years, reflecting resilience in global oil demand [14] Company Strategy and Development Direction - The company aims to maintain a transparent dividend policy, declaring an 80% payout ratio for Q4, resulting in a total cash dividend of $87.7 million [8] - The strategic rationale for acquiring TORM shares includes potential commercial, operational, and financial benefits, enhancing market presence and trading liquidity [6][50] - The company is focused on sustainability initiatives and technological advancements to strengthen its competitive edge [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for Q2 2026, citing strong earnings leverage and a favorable market outlook despite anticipated newbuild deliveries [21][30] - The ongoing geopolitical disruptions and sanctions are expected to continue reshaping trade flows, supporting both crude and product tankers [17][20] - The company is committed to disciplined financial management and pursuing strategic opportunities to enhance its competitive position [30] Other Important Information - The company has paid dividends for 16 consecutive quarters, with total dividends for 2025 amounting to $271.7 million, representing a yield of about 10% [9] - The company operates one of the largest and most diversified fleets in the industry, with a net asset value of approximately $3.5 billion [7] Q&A Session Summary Question: Discussion on the LR2/crude Aframax spread - Management noted that the spread between LR2s and Aframaxes is causing more ships to enter Aframax trade, indicating a transition is ongoing [32][33] Question: View on seasonality and potential shifts - Management acknowledged geopolitical unrest could lead to a stronger-than-normal Q2, with various factors positively impacting Aframaxes [35][36] Question: Impact of EU regulations on MRs - Management indicated that the European market for MRs remains weak, but there is a significant supply from the U.S. Gulf driving the market [37] Question: Increased scrapping of sanctioned vessels - Management confirmed that a few sanctioned vessels have been allowed to be scrapped in India, but significant scrapping is not yet occurring [39][41] Question: Reason for not moving more LR2 into Aframax trade - Management explained the decision to charter LR2s on long-term contracts rather than entering the spot market as part of their hedge strategy [42][43] Question: Commercial performance versus peers - Management stated that Hafnia's performance is competitive with peers like TORM, with a close run in various segments [47][48] Question: Status of TORM shareholding and future expectations - Management highlighted the strategic importance of the TORM investment and the potential for consolidation to create synergies and enhance shareholder value [49][50]

Financial Data and Key Metrics Changes - Hafnia reported a net profit of $79.6 million for Q4 2024, contributing to a full-year net profit of $774 million, indicating strong performance despite moderated market conditions [7][35] - Total TCE income for the year reached $1.4 billion, with Q4 TCE income at $233.6 million [8][34] - The company achieved an adjusted EBITDA of $131 million for Q4 and $992 million for the full year, reflecting operational resilience [34] Business Line Data and Key Metrics Changes - Core operations generated strong earnings, with adjacent fee-generating businesses contributing $35.2 million in full-year revenue [8] - Commercial pool management and bunkering businesses performed well, generating $6.9 million in Q4 [34] Market Data and Key Metrics Changes - The product tanker market experienced strong earnings in the first nine months of 2024, but rates softened in Q4 due to increased cannibalization from the crude sector [16][33] - Clean petroleum product loadings rebounded significantly in December, driven by reduced crude tanker cannibalization and higher export volumes from the US Gulf [18][31] Company Strategy and Development Direction - Hafnia is focused on sustainability and has initiated a fleet renewal strategy, including the introduction of dual-fuel methanol vessels [11] - The company aims to enhance shareholder returns through share buybacks, having repurchased approximately 14.4 million shares at about 70% of NAV [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the underlying strong market fundamentals for 2025, despite current uncertainties [41][48] - The company anticipates robust net profits in 2025, estimated between $300 million to $400 million, supported by favorable market conditions [43] Other Important Information - Hafnia's net loan-to-value ratio increased to 23.2% due to a decline in vessel market values, with a payout ratio of 80% for Q4 [14][38] - The company has hedged approximately half of its interest rate exposure at a weighted average base rate of 2.01% [37] Q&A Session Summary Question: Why pursue the share buyback program with low share prices? - Management noted the decision was based on a significant disconnect between share price and NAV, leading to a buyback program of around $50 million in Q4 and another $25 million in Q1 [51][52] Question: How are China and India adhering to sanctions? - Management observed that both countries are adhering to sanctions, with a significant drop in imports from sanctioned regions, particularly Iran [58][61] Question: What is the current state of crude cannibalization? - Cannibalization has returned to normal averages, with recent data indicating a slight elevation in February [63][64] Question: What is the impact of the Red Sea reopening on the market? - Management concluded that the reopening would have a marginal impact on the market, as the volume lost due to longer trade routes would be offset by increased competition from U.S. refiners [75] Question: What is the breakeven TCE rate? - The operating cash flow breakeven rate is around $14,000, expected to be slightly higher for Q1 [161]