Q4 2015 Presentation

DOF Subsea Group

DOF Subsea Group

DOF Subsea Group – In brief• Fleet

• One of the largest subsea vessel owners in the world• Owns and operates a fleet of 21 vessels, plus 4 newbuilds on order• In addition 3 chartered-in vessels• The market value of owned vessels in operation is about NOK 16 billion, with a value

adjusted age of approx. 6.2 years

• Operates 62 ROVs and 4 ROVs and 1 AUV on order

• Global organization• Head office in Bergen• Regional offices in Australia, Singapore, Norway, UK, Angola, US, Canada and

Brazil

• Total of 1 566 employees• Subsea employees: 1 566• Of which offshore engineers and project staff: 1 150

Norway Brazil Canada US UK Asia Pacific Angola

264 400 47 221 218 402 14

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DOF Subsea Group – In brief

Key figuresBack-log incl. options Approx. NOK 39 billion

Market value of fleet Approx. NOK 16 billion

Condensed figures 5 last quarters

* According to internal Management reporting

0%

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Q42011

Q42012

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Q42015

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Q4 last five years

Operating revenue EBITDA EBITDA margin

4

Recent events• Fleet

• Skandi Africa commenced long-term charter with Technip• Delivery of first of 4 PLSVs, installation of topside equipment in progress• Sale of Skandi Inspector• Sale of Skandi Protector with delivery to new owners in January 2016

• Contracts• Several subsea projects awarded in Asia Pacific and Atlantic region during Q4 2015

• Finance• Financing Skandi Acu in JV with Technip• Refinancing of Skandi Achiever, Skandi Neptune, Skandi Patagonia, Geoholm, Geograph and

Skandi Hercules• Bond repurchase in Q1 2016 of NOK 62 million

5

2005Established

20 570 NOK million total assets

Modernhigh-end fleet

and equipment

21owned subsea

vessels

4vesselson order

3vessels

on charter

62 ROVs,5 ROVs on order

First Reserve Corporation (49%)

1 566highly-skilled employees

Ownership structure

DOF Subsea

DOF Subsea Holding(100%)

DOF ASA(51%)

6

Our global footprint

ATLANTIC

NORTH AMERICA

BRAZILASIA PACIFIC

MacaéRio de Janeiro

BuenosAires

Houston

St John’s

Aberdeen

Bergen

Luanda

Singapore

Manila

Melbourne

Jakarta

BruneiKuala Lumpur

Darwin

Perth

4008

4968

2683

4024

1

7

DOF Subsea fleet evolution

- 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000

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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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Owned vessels Chartered vessels MV of owned fleet (r.a.)

MV of fleet

DOF Subsea timeline

2005 - 2010

Fleet: From 11 to 21 vessels

• DOF Subsea was established in 2005• DOF Subsea was listed on the Oslo

Stock Exchange in 2005, and taken private by DOF and FRC in 2008

• Established a global footprint, present in all major offshore oil & gas regions

• Built a global organization through organic growth and acquisitions

• Developed global Business Management System, and achieved global ISO certification

• JV with Technip• Expanded the fleet by taking delivery

of 10 newbuilds

2011

Fleet: 24 vessels

• Feb: Delivery of Skandi Niteroi

• May: Sale of Geosounder

• Jun: Acquisition Skandi Constructor

• Jul: Delivery of Skandi Skansen

• Sep: Delivery of Skandi Singapore

2012

Fleet: 25 vessels

• Mar: Sale of OSCV newbuild

• Mar: Signed OSCV newbuild contract

• Mar: CharteredSkandi Hawk

2013

Fleet: 26 vessels

• Feb: Signed OSCV newbuild contract

• Feb: Chartered Harvey Deep-Sea

• Mar: Sale ofGeobay

• Jun: Delivery of Skandi Bergen

• Aug: Signed newbuild contracts for 4 x PLSVs

• Nov: Chartered Normand Reach

• Global ISO recertification

2014

Fleet: 28 vessels

• Jan: Delivered Skandi Bergen to new owners

• Mar: CharteredRoss Candies

• Mar: CharteredChloe Candies

• Nov: Delivered Skandi Skolten to new owners

DOF Subsea employees

0200400600800

1 0001 2001 4001 6001 8002 000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Num

ber o

f em

ploy

ees

Employees

2015

Fleet: 24 vessels

• Feb: Delivered Skandi Aker to new owners

• Mar: Delivery of Skandi Africa

• May: Acquired Skandi Hawk

• June: Sale of Skandi Arctic

• Nov: Sale of Skandi Inspector

* As per 31st March 2015

2016

Fleet: 23 vessels

• Jan: Delivered Skandi Protector to new owners

• Jan: Delivery offirst PLSV

8

Modern high-end fleet

• Majority of the fleet delivered after 2007

• Modern fleet with a value adjusted average fleet age of approx. 6.2

• High-end vessels capable of a wide scope of worldwide operations

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Business management• Global business management system accredited by DNV to:

• Business Management System ISO 9001: 2008• Health and Safety System OHSAS 18001:2007• Environmental Management System ISO 14001:2004

• Sustainability reporting according to Global Reporting Initiative G4 implemented• Achieved Carbon Disclosure Project reporting result of 99B (2014 report)• IMCA International Contractor membership

2009

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• Substantial HSE-improvement since 2005• Substantial increase in activity level measured by total man-hours

HSEQ key statistcs

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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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nt /

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an-h

our

DOF Subsea HSEQ-statistics

LTI TR Man-hours

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DOF Subsea – Projects• DOF Subsea has built a global

presence over the last 10 years

• DOF Subsea has developed the project business gradually

• Increased project activity and complexity driving growth

• Project business going forward

• Gradually increase the complexity of work done (Step by Step)

• Build a larger project back-log

• Mix between owned and chartered in vessels

* According to internal Management reporting

Operating income by segment

Q4 2013 Q4 2014 Q4 2015Subsea projects 1 476 1 447 1 013Chartering of vessels 395 577 630Total revenue 1 871 2 024 1 643

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Chartering of vessels Subsea projects

2013 2014 2015Subsea projects 4 971 5 187 4 810Chartering of vessels 1 609 2 236 2 442Total 6 580 7 422 7 252

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Chartering of vessels Subsea projects

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Operational highlights Q4 2015• In Asia Pacific, DOF Subsea has delivered IMR services to Shell Philippines

and Chevron Australia.

• In the North Sea, DOF Subsea has delivered survey and light construction services for Shell, Statoil, Total, OMV and Allseas.

• In North America, DOF Subsea has delivered IMR services for Freeport McMoran, Chevron and S&P services for Chevron and HMC.

• In Brazil, DOF Subsea has delivered ROV, survey and installation services for BW Offshore, Chevron and Petrobras.

• In Canada, DOF Subsea commenced ROV services for Husky under the long-term IMR contract.

• ‘Ship of the Year 2015’ Skandi Africa commenced the 5 year time charter contract with Technip.

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Contract coverage

• DOF Subsea Group has solid cash flow visibility over the next 3-5 years

• By end-December 2015 the total back-log (incl. options) was approx. NOK 39 billion

• Firm contracts counts for approx. NOK 21 billion

• Options counts for approx. NOK 18 billion

* Figures based on remaining back-log from beginning of year

2016 2017 2018 2019 2020 2021 2022 2023Firm 21 18 15 12 9 7 5 4Option 18 17 17 16 16 15 14 14

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Financials

Condensed profit & loss (IFRS 11)

• Operating income was NOK 1 565 million in Q4 2015, down from NOK 1 931 million in Q4 2014.

• EBITDA (excl. gain on sale of assets) was NOK 553 million in Q4 2015, up from NOK 462 million in Q4 2014.

• EBIT (excl. gain on sale of assets) was NOK 353 million in Q4 2015, up from NOK 302 million in Q4 2014.

* The financial numbers are presented according to IFRS 11. See DOF Subsea financial report Q4 2015 note 1 for details.

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Condensed balance sheet (IFRS 11)

• From year end 2014 non-current assets has increased to NOK 15 417 million from NOK 14 336 million

• From year end 2014 total receivables has decreased to NOK 1 560 million from NOK 1 964 million

• From year end 2014 cash and cash equivalents has decreased to NOK 1 464 million from NOK 2 120 million

• Total liabilities as per 31st December 2015 was NOK 13 226 million

• The net interest bearing debt as per 31st December 2015 was NOK 9 995 million

• The book equity was NOK 5 692 million giving a book equity ratio of 30.1 % to total assets as per 31st December 2015

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0%

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Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

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Operating income EBITDA EBITDA margin

Quarterly performance (excl. asset sales)

* According to internal Management reporting

NOK million Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015Operating income 1 223 1 384 1 354 1 288 1 225 1 679 1 804 1 871 1 530 1 963 1 904 2 025 1 656 1 962 1 991 1 642 EBITDA 411 470 489 417 329 471 595 550 502 543 552 502 458 515 553 516 EBITDA margin 33,6% 34,0% 36,1% 32,4% 26,9% 28,1% 33,0% 29,4% 32,8% 27,7% 29,0% 24,8% 27,7% 26,2% 27,8% 31,4%

Current assets 2 782 2 962 2 704 2 612 3 077 3 319 3 119 3 470 3 247 3 252 2 998 4 223 3 414 3 414 3 674 3 752 Non-current assets 16 455 16 230 16 056 16 012 16 043 16 344 16 330 16 340 16 012 16 151 16 215 15 796 16 726 16 578 16 447 16 818

Total assets 19 238 19 192 18 760 18 624 19 120 19 663 19 450 19 810 19 258 19 403 19 213 20 019 20 140 19 992 20 121 20 570

Current liabilities 2 543 2 495 2 260 1 989 2 000 2 805 2 808 3 167 3 470 3 741 3 607 4 505 4 139 4 577 4 492 3 650 Non-current liabilities 11 723 11 735 11 439 11 534 12 051 11 862 11 474 11 427 10 126 9 701 9 668 9 402 9 924 9 009 9 988 11 228 Equity 4 970 4 963 5 061 5 102 5 069 4 996 5 167 5 216 5 662 5 962 5 938 6 112 6 077 6 405 5 641 5 692

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Debt maturity profile

DOFSUB05- NOK 750 million- Maturity April 2016

DOFSUB07- NOK 1 300 million- Maturity May 2018

• The figures reflects amortization and balloon payments on debt drawn.

• Debt maturity profile excludes approx. NOK 0.4 billion in payments to Eksportfinans which is serviced by a corresponding amount of restricted cash.

Debt maturity profile DOF Subsea AS level, 2016E – 2020E

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2016E 2017E 2018E 2019E 2020E After

Bond Loan Bank Debt Balloons Liabilities held for sale

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Risk mitigating factors

Strengthened financial position

Global presence provide access to more market opportunities

Strong back-log provides stable

earnings

Diversified blue-chip customers

reduce counterparty risk

Value added services provide

increased earnings potential

Modern, high-end fleet

provides safe collateral

Strong bank and investor

relationships provide access

to credit

Spare leveraging capacity on existing fleet

Recent sale of vessels confirm

values

Weaker subsea market

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Outlook

Challenging fundamentals for subsea activity

• Demand• Weak and volatile oil price

• Continued cost focus by oil companies

• Reduced offshore E&P spending

• Uncertain project timing

• Increased focus on newer, technologically advanced and flexible vessels and engineering capabilities

• DOF Subsea owns the world’s most sophisticated fleet and has a global organization

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Challenging fundamentals for subsea activity

• Supply• Fleet of subsea vessels increasing

• Several vessels in lay-up

• Increasing supply of engineering capabilities

Weaker market

conditions

Reduced demand

Increasingsupply

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Challenging fundamentals for subsea activity

Weak subsea

market and pressure

on margins

Lower IMR activity globally

Lower rig activity and

delayed field development

Reduced E&P

spending

Low and volatile oil

price

Number of niche

subsea players

Improved access to qualified

personnel

Increased supply of subsea vessels

DOF Subsea has mitigated the weaker fundamentals through a global footprint, a diversified portfolio of clients, strengthened balance sheet and a strong back-log of

NOK 39 billion

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Thank you!

DOF Subsea GroupDOF Subsea Group DOF Subsea Group – In briefDOF Subsea Group – In briefRecent eventsOwnership structureSlide Number 7DOF Subsea timelineModern high-end fleetBusiness managementHSEQ key statistcsDOF Subsea – ProjectsOperational highlights Q4 2015Contract coverageFinancialsCondensed profit & loss (IFRS 11)Condensed balance sheet (IFRS 11)Quarterly performance (excl. asset sales)Debt maturity profileRisk mitigating factorsOutlookChallenging fundamentals for subsea activityChallenging fundamentals for subsea activityChallenging fundamentals for subsea activitySlide Number 25