Quarterly Presentation Q4 2018

DOF Subsea Group

DOF Subsea Group at a glance

2

2005DOF Subsea

established

NOK 1.2bn1)

Revenues

Q4’18

1 3112)

Subsea employees

worldwide Q4’18

NOK 15.5bnFirm backlog

Q4’18

283)

Subsea vessels

71ROVs

ModernState-of-the-art

asset base

IntegratedSupplier of subsea

offshore services

DOF Subsea1) Note: According to management reporting

2) Note: Excluding marine crew

3) Note: Including newbuild Skandi Olinda and chartered-in vessels Harvey Deep-Sea, Harvey Subsea, Skandi Chieftain and Skandi Darwin

Global footprint

3

ATLANTIC

NORTH AMERICA

BRAZILASIA PACIFIC

Macaé

Rio de Janeiro

Buenos

Aires

Houston

St John’s

Aberdeen

Bergen

Luanda

Singapore

Manila

Melbourne

Jakarta

BruneiKuala Lumpur

Darwin

Perth

3788

38910

2504

2945

DOF Subsea1) Note: Number of employees as at end of Q4’18, excluding marine crew

2) Note: Vessels in operation as at end of Q4’18, including 4 chartered-in vessels (excluding newbuild under construction)

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

Large and global organisation following multiple

acquisitions from 2005-2010

11 1113

1618

21

2425

2627

24

21

2527

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q4 2018

Development in number of vessels in operation2)

Owned vessels Chartered-in vessels Total

337

553 563

8971014

1246

14921354

1667

1858

1566

1278 12141311

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q4 2018

Development in number of DOF Subsea Employees1)

More than a decade of structural growth and consolidation

DOF Subsea 4

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 Subsea

CSL

2005

2008

2014

2016

Awarded four PLSV long-term contracts in joint

venture with TechnipFMC2013

SWG Offshore

1) Note: Marine crew not included

2) Note: Newbuild not included

3) Note: Period-end numbers

2018

Delivery of two newbuilds entering into long-term

contracts and commencement of two long-term

IMR contracts2017

Delivery 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

Key financials1)

5

Revenue EBITDA2) Firm backlog

DOF Subsea1) Note: Figures according to management reporting

2) Note: EBITDA excl. profit from sale of non-current assets

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

NOK million EBITDA margin

-

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

2012 2013 2014 2015 2016 2017 2018

NOK million

-

5

10

15

20

25

2012 2013 2014 2015 2016 2017 2018

NOK billion

Segment highlights

Two business segments

DOF Subsea 7

DOF Subsea Group

Long-term Chartering1)

Revenues Q4’182)

NOK 399 million

EBITDA Q4’183)

NOK 298 million

~75% margin

Firm backlog4)

NOK 11.3bn

1) Note: Long-term Chartering comprises 6 PLSVs in operation and 1 PLSV under construction, plus

Skandi Acergy and Skandi Patagonia

2) Note: According to management reporting

3) Note: According to management reporting

4) Note: Firm backlog as at end of Q4’18

5) Note: Including 4 chartered-in vessels

1 newbuild Q4’188 vessels in

operation Q4’18

Long-term

charters

Vessel

capabilitiesCapex

spending

Subsea / IMR Projects

Revenues Q4’182)

NOK 767 million

EBITDA Q4’183)

NOK 44 million

~6% margin

Firm backlog4)

NOK 4.2bn

1 311 Employees

Q4’18

19 vessels in

operation5) Q4’18

Engineering

capabilities

Framework

agreements

Opex

spending

8

Numerous projects completed and ongoing worldwide

Built 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

DOF Subsea provides state-of-the-art vessels to leading players

9

Skandi 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

8

vessels in

operation

1

contracted

newbuild

NOK 11.3bn

firm backlog

per Q4’18

Long-term Chartering

DOF Subsea

Selected long-term contracts

10DOF Subsea

• 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 2018 Skandi Achiever

Sep 2018

Skandi Olinda

Feb 2019

DOF Subsea newbuild program completed

The Group took delivery of Skandi Vinland and the vessel entered a 10-year contract with Husky Energy in July 2017

The DOFCON JV has since 2016 taken delivery of four PLSVs (two from yard in Norway and two from yard in Brazil)

▪ Skandi Açu delivered and on-hire on 8-year contract with Petrobras in August 2016

▪ Skandi Buzios delivered and on-hire on 8-year contract with Petrobras in April 2017

▪ Skandi Recife delivered and on-hire on 8-year contract with Petrobras in June 2018

▪ Skandi Olinda delivered and on-hire on 8-year contract with Petrobras in Feb 2019

The PLSV project was delivered according to budgeted cost, giving DOF Subsea an annual EBITDA of USD 110

million

All newbuild contracts provide stable earnings visibility for the Group

DOF Subsea 11

Skandi Vinland (Subsea), delivered 2017 Skandi Açu (PLSV), delivered 2016 Skandi Buzios (PLSV), delivered 2017 Skandi Recife (PLSV), delivered 2018 Skandi Olinda (PLSV), delivered 2019

4th quarter 2018

Q4 2018 highlights

• The operating revenue for the quarter was NOK 1 166 million1), EBITDA was NOK 342 million1) and overall

vessel utilisation was 69%.

• During the quarter, the Group strengthened the organization and management team.

• 2 year extension of existing IMR contract with Chevron Australia.

• Refinancing of Skandi Achiever with an international shipping bank.

• Issued a new 5-year bond loan of NOK 900 million in the Norwegian High-Yield market.

DOF Subsea 131) Note: Figures according to management reporting

Quarterly performance1)

DOF Subsea 141) 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

Q4 2014 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

EB

ITD

A m

arg

in

NO

K m

illi

on

Operating revenue EBITDA EBITDA margin

NOK million Q4 2014 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

Operating revenue 2 025 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

EBITDA 502 458 515 553 516 456 510 447 320 279 400 332 402 310 372 376 342

EBITDA margin 24,8 % 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 %

Current assets 4 223 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

Non-current assets 15 796 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

Total assets 20 019 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

Current liabilities 4 505 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

Non-current liabilities 9 402 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

Equity 6 112 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

Total equity and liablilites 20 019 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

Debt maturity profile1)

DOF Subsea 15

Debt maturity profile, 2019E – 2023E

1) Note: Figures according to management reporting and based on exchange rates as at end of Q4’18

The figures reflect amortization and balloon payments on outstanding debt as at end of Q4’18

-

500

1 000

1 500

2 000

2 500

3 000

3 500

2019E 2020E 2021E 2022E 2023E Thereafter

Bond Loan Bank Debt Balloons

Backlog1)

DOF Subsea 161) Note: Figures based on remaining backlog as at end of Q4’18 and exchange rates as at end of Q4’18

2) 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 December 2018, the Group’s firm contract backlog was NOK 15.5 billion

2019 2020 2021 2022 2023 Thereafter

Option Revenue 0,09 0,26 0,72 1,12 1,17 14,13

Firm Revenue 3,66 2,94 2,35 1,85 1,60 3,13

0

2

4

6

8

10

12

14

16

18

20

NO

K B

illio

n

Firm Revenue Option Revenue

Modern high-end fleet

• Majority of the fleet is younger than 10 years

• Modern fleet with a value adjusted average fleet age of 6.51) years

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

DOF Subsea 171) Note: Excluding chartered-in vessels, and figures as at end of Q4’18

Skandi Vinland, CSV built 2017

Skandi Buzios, PLSV built 2017

Skandi Recife, PLSV built 2018

2000-2006; 6

2007-2012; 12

2013-2018; 5Newbuild; 1

Year of delivery DOF Subsea fleet1)

-

2,0

4,0

6,0

8,0

10,0

12,0

Fleet age

Average fleet age age

Value adjusted average fleet age

Skandi Olinda, PLSV built 2019

Appendix

Condensed profit & loss1)

DOF Subsea 191) 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) 4Q 2018 4Q 2017 2018 2017

Operating revenue 945 1068 3 742 3 849

Payroll expenses -354 -368 -1 375 -1 420

Other operating expenses -431 -462 -1 688 -1 593

Share of net income of associates and joint ventures 104 54 403 303

Profit from sale of non-current assets - - 1 -5

Operating profit before depreciation (EBITDA) 264 292 1085 1135

Depreciation and impairment -291 -201 -913 -999

Operating profit (EBIT) -26 91 172 136

Financial income 55 13 96 55

Financial expenses -148 -132 -507 -521

Realised net gain / loss on derivative instruments and currency position -78 8 -168 -80

Unrealised net gain / loss on derivative instruments and currency position -244 -194 -214 288

Net financial income / loss -414 -305 -794 -259

Profit / loss before tax -440 -215 -622 -123

Income tax expense -18 -161 -46 -150

Profit / loss for the period -458 -375 -668 -273

Condensed balance sheet1)

DOF Subsea 201) 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) 31.12.2018 31.12.2017

Tangible assets 11 100 11 773

Goodwill 337 366

Deferred tax asset 220 243

Investment in associates and joint ventures 1 553 1027

Non-current receivables 1 204 1 125

Non-current assets 14 414 14 534

Trade receivables 631 855

Other current receivables 289 252

Total current receivables 920 1 107

Restricted cash 223 311

Unrestricted cash and cash equivalents 919 786

Cash and cash equivalents 1142 1 097

Current assets 2 062 2 204

Total assets 16 476 16 738

Equity and liabilities (NOK million) 31.12.2018 31.12.2017

Paid-in equity 4 344 4 344

Other equity 1 197 1 778

Non-controlling interests 194 226

Total equity 5 735 6 348

Bond loans 2 480 1 914

Debt to credit institutions 5 278 6 518

Other non-current liabilities 34 49

Non-current liabilities 7 793 8 481

Current portion of debt 2 177 1 191

Trade payables 406 392

Other current liabilities 366 325

Current liabilities 2 949 1 909

Total liabilities 10 742 10 390

Total equity and liabilities 16 476 16 738

Thank you!