Quarterly Presentation Q1 2019

DOF Subsea Group

DOF Subsea 2

Q1 2019 highlights

• The operating revenue for the quarter was NOK 1 103 million1), EBITDA was NOK 365 million1) and overall vessel utilisation was 67%

• The joint venture with TechnipFMC took delivery of the newbuild Skandi Olinda and the vessel commenced the 8-year contract with Petrobras. The delivery of Skandi Olinda marks the successful conclusion of the JV’s and DOF Subsea Group’s newbuild program

• Geoholm and Skandi Neptune have mobilised on new contracts in the Red Sea and Guyana respectively

• A continuing weak market has increased the liquidity risk for the Group

• Increased refinancing and financial risk

As a result of the continued challenging market situation, the Group have experienced that regular rollover (or refinancing) of existing loan facilities is very challenging. This new situation is likely to result in the Group being in breach of its financial covenants in the near future and the Group being unable to repay (or rollover) certain of its existing loans when they fall due. The management will commence a dialogue with the involved parties and believes it is possible to reach agreements to solve the expected challenging situation for the Group, although no assurance can be given that the Group will be successful in this respect. The effects of such breach is further described in note 6 Net interest-bearing debt to the quarterly accounts.

1) Note: Figures according to management reporting

DOF Subsea 3

DOF Subsea Group at a glance

2005DOF Subseaestablished

NOK 1.1bn1)

RevenuesQ1’19

1 1702)

Subsea employeesworldwide Q1’19

NOK 14.7bnFirm backlog

Q1’19

273)

Subsea vessels73

ROVsModern

State-of-the-art asset base

IntegratedSupplier of subsea offshore services

1) Note: According to management reporting2) Note: Excluding marine crew3) Note: Including chartered-in vessels Harvey Deep-Sea, Harvey Subsea, Skandi Chieftain and Skandi Darwin

DOF Subsea

Global footprint

ATLANTIC

NORTH AMERICA

BRAZILASIA PACIFIC

MacaéRio de Janeiro

BuenosAires

Houston

St John’s

AberdeenBergen

Luanda

Singapore

Manila

Melbourne

Jakarta

BruneiKuala Lumpur

Darwin

Perth

3749

33110

2593

2065

1) Note: Number of employees as at end of Q1’19 (excluding marine crew).2) Note: Vessels in operation as at end of Q1’19, including 4 chartered-in vessels (excluding newbuild under construction).

Local operating model ensuring on-the-ground responsiveness towards clients’ needs

4

DOF Subsea 5

11 1113

1618

2124 25 26 27

2421

2527 27

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q12019

Development in number of vessels in operation2)

Owned vessels Chartered-in vessels Total

337

553 563

8971014

1246

14921354

16671858

1566

1278 12141311

1170

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1 2019

Development in number of DOF Subsea Employees1)

Large and global organisation following multiple acquisitions from 2005-2010

More than a decade of structural growth and consolidation

SEMAR

Focus on consolidation and streamlining of business operations to improve efficiency and

competitiveness in weak market

DOF Subsea established following the acquisition of Geoconsult. The Company was

listed second half 2005.

First Reserve acquires 49% of DOF Subsea, which in the following is delisted from the Oslo

Stock Exchange

Expanding organisation on the back of several large contract awards. Number of employees

and vessels peaking at 1 858 and 27, respectively

2010Century SubseaCovus SubseaCSL

2005

2008

2014

2016

Awarded four PLSV long-term contracts in joint venture with TechnipFMC2013

SWG Offshore

1) Note: Marine crew not included2) Note: Newbuild not included3) Note: Period-end numbers

2018

Delivery of two newbuilds entering into long-term contracts and commencement of two long-term

IMR contracts2017Delivery of one JV newbuild entering into long-term contract and award of several long-term

contracts within both business segments and start rebuilding the organization

DOF Subsea 6

Key financials1)

Revenue EBITDA2) Firm backlog

1) Note: Figures according to management reporting2) Note: EBITDA excl. profit from sale of non-current assets

-

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

2012 2013 2014 2015 2016 2017 2018 LTM

NOK million

0%

5%

10%

15%

20%

25%

30%

35%

40%

-

500

1 000

1 500

2 000

2 500

2012 2013 2014 2015 2016 2017 2018 LTM

NOK million EBITDA margin

-

5

10

15

20

25

2012 2013 2014 2015 2016 2017 2018 Q12019

NOK billion

Segment highlights

DOF Subsea 8

Two business segmentsDOF Subsea Group

Long-term Chartering1)

Revenues Q1’192)

NOK 441 millionEBITDA Q1’193)

NOK 328 million~74% margin

Firm backlog4)

NOK 10.7bn

1) Note: Long-term Chartering comprises 7 PLSVs in operation, plus Skandi Acergy and Skandi Patagonia2) Note: According to management reporting3) Note: According to management reporting

4) Note: Firm backlog as at end of Q1’195) Note: Including 3 chartered-in vessels

9 vessels in operation Q1’19

Long-term charters

Vessel capabilities

Capexspending

Subsea / IMR Projects

Revenues Q1’192)

NOK 662 millionEBITDA Q1’193)

NOK 38 million~6% margin

Firm backlog4)

NOK 3.9bn

1 170 Employees Q1’19

18 vessels in operation5) Q1’19

Engineering capabilities

Framework agreements

Opexspending

No newbuilds as of Q1’19

DOF Subsea 9

Numerous projects completed and ongoing worldwideBuilt a leading subsea projects division for over a decade• Subsea project activity established with a global footprint in all key offshore regions• High quality asset base leveraging unrivalled subsea and vessel operating competence

A clear action plan to pursue further opportunities• Continue to increase the scope and complexity of operations

− Strengthen presence in selected geographies− Further build project backlog with core focus on IMR projects

Subsea/IMR Projects

Selected Mooring projects – Last 5 yearsSelected IMR projects – Last 5 years

Petrobras DSV Contract (2018-2021) Petrobras RSV Contract (2018-2020) ENI Angola IMR Contract (2017-2019) Husky Energy IMR Contract (2017-2027) Shell Prelude IMR Contract (2017-2022) Goliat Field Support ENI (2016) Chevron Gorgon IMR Contract (2015-2019) Shell Malampaya IMR Contract (2014-2021) ConocoPhillips ROV Services (2012 and onwards) ROV Support Vessel Petrobras (2011 and onwards)

Egina FPSO Hook-up (2018) Lam Son Mooring Replacement (2017) Bergading FPSO Pre-Tensioning (2017) Yinson OCTP FPSO Field Dev. (2016-2017) Bongkot Mooring Replacement PTTEP (2017) Raroa Mooring OMV (2016-2017) Gina Krog TMRS Teekay (2016) Catcher Mooring Installation BWO (2016) Goliat FPSO Marine Installation ENI (2011-2015) Lam Son Mooring Installation PTSC (2014)

DOF Subsea 10

DOF Subsea provides state-of-the-art vessels to leading playersSkandi Acergy Skandi Acu Skandi Africa

Skandi Niteroi Skandi Patagonia Skandi Vitoria

Skandi Buzios Skandi Recife Skandi Olinda

Day-rate basedRemuneration

Strong long-term contract coverageContracts

High-end vessels operating advanced subsea projects for third party EPCI contractors

Operations

Selected clients

Construction support vessel

Construction & pipe laying vessel

Construction & pipe laying vessel

Construction & pipe laying vessel

Construction & pipe laying vessel

Construction & pipe laying vessel

Construction & pipe laying vessel

Dive support vessel

Construction & pipe laying vessel

9 vessels inoperation

Nocontractednewbuild

NOK 10.7bnfirm backlog

per Q1’19

Long-term Chartering

DOF Subsea 11

Selected long-term contracts

• Long-term FLNG IMR contract awarded in Australia with Shell

• 5 years + 4 years options• IMR scope comprising project

management, engineering, logistics, vessel and ROV services

• Utilising Skandi Darwin

Prelude FLNG

Nov 2017

• Long-term contract with Petrobras

• 8 years + 8 years options• Vessel owned in joint venture

with TechnipFMC• Built in Brazil with 300t VLS

• Long-term DSV contract with Petrobras

• 3 years + 2 years options• ROV and diving services• Partnered up with diving

partner in Brazil

Skandi Recife

Jun 2018 • Long-term contract with Petrobras

• 8 years + 8 years options• Vessel owned in joint venture

with TechnipFMC• Built in Brazil with 300t VLS

• Long-term contract with Petrobras in Brazil

• Vessel and ROV services

Skandi Salvador

Aug 2018Skandi Achiever

Sep 2018

Skandi Olinda

Feb 2019

1st quarter 2019

DOF Subsea 13

Quarterly performance1)

1) Note: Figures according to management reporting, and excluding profit from sale of non-current assets

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

500

1 000

1 500

2 000

2 500

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019

EBIT

DA

mar

gin

NO

K m

illio

n

Operating revenue EBITDA EBITDA marginNOK million Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019Operating revenue 1 656 1 962 1 991 1 642 1 406 1 660 1 232 1 128 982 1 199 1 093 1 275 1 053 1 203 1 184 1 166 1 103EBITDA 458 515 553 516 456 510 447 320 279 400 332 402 310 372 376 342 365EBITDA margin 27,7 % 26,2 % 27,8 % 31,4 % 32,4 % 30,7 % 36,3 % 28,4 % 28,4 % 33,4 % 30,4 % 31,5 % 29,4 % 30,9 % 31,8 % 29,3 % 33,1 %

Current assets 3 414 3 414 3 674 3 752 2 900 3 010 2 742 2 483 2 808 2 595 2 501 2 607 2 399 2 474 2 320 2 532 2 317Non-current assets 16 726 16 578 16 447 16 818 17 652 18 206 18 514 18 043 18 087 18 428 17 926 17 829 16 881 17 684 17 523 17 818 18 840

Total assets 20 140 19 992 20 121 20 570 20 552 21 216 21 256 20 526 20 896 21 023 20 427 20 436 19 280 20 158 19 843 20 350 21 156

Current liabilities 4 139 4 577 4 492 3 650 2 991 3 022 2 645 2 478 2 444 3 010 3 051 2 440 2 345 2 879 2 983 3 484 3 533Non-current liabilities 9 924 9 009 9 988 11 228 11 482 11 864 12 174 11 993 12 503 11 942 11 221 11 648 10 485 11 110 10 798 11 130 11 915Equity 6 077 6 405 5 641 5 692 6 078 6 330 6 437 6 055 5 948 6 071 6 156 6 348 6 450 6 170 6 063 5 735 5 708

Total equity and liablilites 20 140 19 991 20 121 20 570 20 551 21 216 21 256 20 526 20 896 21 023 20 427 20 436 19 280 20 158 19 843 20 350 21 156

DOF Subsea 14

Debt maturity profile1)

Increased refinancing risk of the bank balloons

Debt maturity profile, 2019E – 2023E

1) Note: Figures according to management reporting and based on exchange rates as at end of Q1’19The figures reflect amortization and balloon payments on outstanding debt as at end of Q1’19

-

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

2019E 2020E 2021E 2022E 2023E Thereafter

Bond Loan Bank Debt Balloons

DOF Subsea 15

Backlog1)

1) Note: Contract backlog excludes master service agreements (MSAs) within the Subsea/IMR Projects segment – only confirmed POs are included in the backlog

As at 31 March 2019, the Group’s firm contract backlog was NOK 14.7 billion

2019 2020 2021 2022 2023 ThereafterOptions Revenue 0,1 0,3 1,0 1,1 1,2 14,1Firm Revenue 2,9 2,9 2,3 1,8 1,6 3,1

0,0

5,0

10,0

15,0

20,0

NO

K bi

llion

Firm Revenue Options Revenue

DOF Subsea 16

Modern high-end fleet

• Majority of the fleet is younger than 10 years• Modern fleet with a value adjusted average fleet age of 5.71) years• High-end vessels, capable of a wide scope of worldwide operations

1) Note: Excluding chartered-in vessels, and figures as at end of Q1’19

Skandi Vinland, CSV built 2017

Skandi Buzios, PLSV built 2017

Skandi Recife, PLSV built 2018

Skandi Olinda, PLSV built 2019

2000-2006; 6

2007-2012; 12

2013-2019; 6

Year of delivery DOF Subsea fleet1)

-

2,0

4,0

6,0

8,0

10,0

12,0Fleet age

Average fleet age ageValue adjusted average fleet age

DOF Subsea 17

Outlook

• Operational EBITDA in 2019 to be slightly better than 2018

• Still challenging markets within the Subsea/IMR Segment

• Increased refinancing risk on bank balloons and continuing challenging

markets are likely to result in breach of financial covenants for the Group

Appendix

DOF Subsea 19

Condensed profit & loss1)

1) Note: Financial statement according to IFRS. Condensed financial statement according to management reporting is included in the DOF Subsea Quarterly Financial Report

Profit & loss (NOK million) 1Q 2019 1Q 2018 2018

Operating revenue 844 840 3 742

Operating expenses -687 -708 -3 063

Share of net income of associates and joint ventures 68 105 403

Profit from sale of non-current assets - 1 1

Operating profit before depreciation (EBITDA) 226 238 1085

Depreciation and impairment -167 -232 -913

Operating profit (EBIT) 59 6 172

Financial income 20 14 96

Financial expenses -146 -112 -507

Realised net gain / loss on derivative instruments and currency position -56 -24 -168

Unrealised net gain / loss on derivative instruments and currency position 118 292 -214

Net financial income / loss -64 169 -794

Profit / loss before tax -5 175 -622

Income tax expense -19 5 -46

Profit / loss for the period -25 180 -668

DOF Subsea 20

Condensed balance sheet1)

1) Note: Financial statement according to IFRS. Condensed financial statement according to management reporting is included in the DOF Subsea Quarterly Financial Report

Assets (NOK million) 31.03.2019 31.03.2018 31.12.2018

Tangible assets 11 258 11 539 11 100

Goodwill 337 362 337

Deferred tax asset 215 248 220

Investment in associates and joint ventures 1 617 1083 1 553

Non-current receivables 1 364 1 080 1 204

Non-current assets 14 792 14 311 14 414

Trade receivables 698 721 631

Other current receivables 250 299 289

Total current receivables 948 1 020 920

Restricted cash 181 265 223

Unrestricted cash and cash equivalents 631 706 919

Cash and cash equivalents 812 972 1142

Current assets 1 760 1 992 2 062

Total assets 16 551 16 302 16 476

Equity and liabilities (NOK million) 31.03.2019 31.03.2018 31.12.2018

Paid-in equity 4 344 4 344 4 344

Other equity 1 170 1 872 1 197

Non-controlling interests 195 232 194

Total equity 5 708 6 450 5 735

Bond loans 2 474 1 864 2 480

Debt to credit institutions 5 012 6 093 5 278

Lease liabilities 375 0

Other non-current liabilities 25 37 34

Non-current liabilities 7 887 7 994 7 793

Current portion of debt 2 291 1 132 2 177

Trade payables 328 369 406

Other current liabilities 338 357 366

Current liabilities 2 957 1 859 2 949

Total liabilities 10 843 9 852 10 742

Total equity and liabilities 16 551 16 302 16 476

DOF Subsea 21

DISCLAIMERThis presentation by DOF Subsea AS designed to provide a high-level overview of aspects of the operations of the DOF Subsea AS Group. The material set out in the presentation is current as at 23 May 2019.This presentation contains forward-looking statements relating to operations of the DOF Subsea AS Group that are based on management’s own current expectations, estimates and projections about matters relevant to DOF Subsea AS‘s future financial performance. Words such as “likely”, “aims”, “looking forward”, “potential”, “anticipates”, “expects”, “predicts”, “plans”, “targets”, “believes” and “estimates” and similar expressions are intended to identify forward-looking statements.References in the presentation to assumptions, estimates and outcomes and forward-looking statements about assumptions, estimates and outcomes, which are based on internal business data and external sources, are uncertain given the nature of the industry, business risks, and other factors. Also, they may be affected by internal and external factors that may have a material effect on future business performance and results.No assurance or guarantee is, or should be taken to be, given in relation to the future business performance or results of the DOF Subsea AS Group or the likelihood that the assumptions, estimates or outcomes will be achieved.While management has taken every effort to ensure the accuracy of the material in the presentation, the presentation is provided for information only. DOF Subsea AS , its officers and management exclude and disclaim any liability in respect of anything done in reliance on the presentation.All forward-looking statements made in this presentation are based on information presently available to management and DOF Subsea AS assumes no obligation to update any forward looking- statements. Nothing in this presentation constitutes investment advice and this presentation shall not constitute an offer to sell or the solicitation of any offer to buy any securities or otherwise engage in any investment activity.You should make your own enquiries and take your own advice (including financial and legal advice) before making an investment in the company's shares or in making a decision to hold or sell your shares.

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