OPPORTUNITIESFORFINNISHSUPPLIERSINTHENORWEGIAN

MARITIME&OFFSHOREMARKETJaakkoIsotalo/TimoUn0nen

GatewayNorwayA/S

Contents

• TheNorwegianOffshoreSector

• TheNorwegianMariAmeSector

Norway is home to a

world-leading offshore

andmari0mecluster

TheNorwegianOffshore

Sector

•  Althoughinvestmenthasbeendecliningsomewhatin2015,it’scurrentlyatthethirdhighestfigureinhistory.Inotherwords,wearefarfromacrisis.–GroBækken,CEOinNorwegianOilandGass.

•  ThereisplentyofoilleGtofind.Thehorizonoftheworldsoilagemovesconstantly.Soithasbeen,andsoitwillbe;formanydecadestocome.–DagHaraldClaes,ProfessoratUniversityofOslo

NorwegianOilandGas

TheoilandgassectorisNorway'slargestmeasuredin

termsofgovernmentrevenuesandinvestments.

EUR194billion

EUR22billion

EUR83billion

EUR21billion

AccumulatedresourcesontheNorwegianconAnentalshelfAround38%ofallremainingresourcesonthe

shelfiss0llundiscovered.

Historicalandexpected

produc0oninNorway,

1970-2020Oilproduc0onrosein2015forthesecondyearrunning,andgas

sales reached a record level. In the next few years, total

produc0onisexpectedtoremainhighandstable.

OverallCostbyCategory

Thelowerac0vitylevelin2015resultedinaconsiderablereduc0onin

overallcosts,butthecostlevelremainshighinhistoricalterms.

Historicalfiguresfor2010-2015andforecastfor2016-2020

Es0ma0on.Totalvaluein2016=EUR26.17billion

InvestmentsbyMainCategory

Historicalfiguresfor2010-2015andforecastfor2016-2020

Four new fields – Valemon, Bøyla, Knarr and Edvard Grieg – startedproducing in 2015.A further ninewereunder development at the endof

theyear,andfournewplansfornewdevelopments(PDOs)wereapproved

bytheauthori0esduring2015.Oneofthesewasforthefirstphaseofthe

Johan Sverdrup project, which will help to maintain a high level of

investmentintheyearsahead.

JohanSverdrup–GeneraAngGiganAcValue

•  LocatedontheUtsiraHeightintheNorthSea,155kilometreswestofStavanger

•  OilfromthefieldwillbepipedtotheMongstadterminalinHordaland.ThegaswillbetransportedviaStatpipetotheKårstøprocessingplantinNorthRogaland

•  First-phaseinvestmentses0matedatNOK117billion/EUR13.08billion(2015value)

•  Totalproduc0onrevenuesofNOK1,350billion/EUR151billionover50years•  Corpora0ontaxpayabletotheNorwegianstatecalculatedatNOK670billion/

EUR75billion•  Dailyproduc0onduringfirstphasees0matedat315,000–380,000barrelsper

day•  Peakproduc0ones0matedtoreach550,000–650,000barrelsdaily•  Waterdepthis110-120metres;thereservoirislocatedatadepthof1900

metres

•  Thefieldwillbeoperatedbyelectricalpowergeneratedonshore

Produc0onstart-upisscheduledforend2019.Thefieldwillbe

developed in phases. The first phase involves the

establishmentofafieldcentreconsis0ngoffourplalorms.

GasExportsfromthe

NorwegianShelfNorwayisthethirdlargestgasexporterintheworld.NearlyallNorwegiangasissoldontheEuropeanmarket.Gasproduc0on

has increased in recent years, and therefore accounts for a

largershareofpetroleumproduc0onthanbefore.

Historicalandexpected

produc0oninNorway,

1970-2020Norwayisthethirdlargestgasexporterintheworldandcovers

morethan20%oftotalEuropeangasconsump0on.

TheSupplyIndustry

SketchofafieldduringdevelopmentandoperaAon.

The Norwegian supply industry includes more than 1.250 companiessupplying goods and services for all stages of the value chain, including

seismicandengineeringservicesanddrillingrigequipment;valves,nutsand

hoses for the shipyard industry; and advancedoffshore supply and service

vesselsandsubseatechnology.

TheNorwegianMari0meSector

Norway has one of the largest and most comprehensive

mari0me sectors in global terms. The offshore fleet is the

secondlargestintheworldandtheindustryischaracterizedby

itshighcompetence,innova0onandadvancedtechnology.

GeographicalDistribu0onof

theindustryinNorway

NorwegianYards2016

•  The big shipyardswent into a new yearwith a total orderbook of EUR 3.3 billion. The orders from the offshore

segmenthasexperiencedanabruptdeclineinthepastyear.

•  Thetotalorderamountfornextyeariss0llnotbad.

•  Order amounts shows a spread to other ship types. It

providesstrengthtobenotdependentononlyonemarket.

•  A total of 13 of the total 62 vessels over 40meters to be

builtattheNorwegianyardsarewellboats,anditisbooked

6largefishingvessels.

•  Norwegianyards is clearlyhelpedby theweakNOK,whichmeansthatpricesaremorecompe00ve.

Opportuni0esatNorwegian

shipyards

•  Turnkeyou`iang:interiorareas,publicareas,deckareas,enginerooms

•  Shipengineering&design

•  Shipmachinery&systemsincludingpropulsionandpowersystems

•  Electricalequipment&systems

•  Deck&interiorequipment,HVAC&cateringequipment

Opportuni0es exist for Finnish system and equipment suppliers, material

and component suppliers, subcontractors for metal works, and turnkey

suppliers.

Orderbook:changes/flexibility

OSV

Well/Service

Wind

Fishing

Ferry

Mining

Governmental

Yacht

Passenger/Cruise

OSV

Well/Service

Wind

Fishing

Ferry

Mining

Governmental

Yacht

Passenger/Cruise

Post”crisis”ac0vityat

NorwegianYards

•  OffshoreMining

•  OffshoreWind

•  PleasureYachts•  FishingBoats•  Smallcrasscateringtothefishfarmingindustry

•  Ferries•  Smallcruisevessels

Thepictureisnearlyas

unfortunatethatonegetsthe

impression

OrderbookFitjarMek.Verksted26.Sept2016Owner Name Type Various DeliverySeistarHolding Seihav HFMVLFC3600 09.16

Seadive KSMul002 HFMVW15-8 09.16

Servicebåt SASVirgo HFMVW15-10 09.16

Servicebåt SASOrion HFMVW15-10 10.16

Servicebåt SASTBN HFMVW15-10 11.16

Servicebåt SASTBN HFMVW15-10 12.16

Marnius

Aquaservice RestlessTBN HFMVW15 12.16

Servicebåt SASTBN HFMVW15-10 Op0on 17

Servicebåt SASTBN HFMVW15-10 Op0on 17

Servicebåt SASTBN HFMVW15-10 Op0on 17

Servicebåt SASTBN HFMVW15-10 Op0on 17

Napier TBN

HFMVP37

Napier Intent 17

Napier TBN

HFMVP37

Napier Intent 17

Wh i l e s e v e r a l o f t h e

tradi0onal "locomo0ves” in

the industry are struggling,

the smaller shipyards is

generally a far beuer off.

Fitjar Mek., Larsnes Mek.and Moen Mar i n a re

examplesofshipyardswhich

all boast good order intake

so far this year. Within

workboats for aquaculture

the demand seem to be

good.

TheMøreMari0meCluster

•  FarstadShipping

•  RollsRoyceCommercialMarine

•  UlsteinGroup

•  VARD

•  Kleven

•  Havila

•  Brunvoll

•  Skiptekniske

•  FiskerstandVers

Themari0meclusteratMøreisaworldleaderindesign,construc0on,

equipmentandopera0onofadvancedoffshorevesselsfortheglobaloiland

gasindustry.

Hometocompaniessuchas:

KlevenYardinMøre–Current

OrderbookKlevenVers inUlsteinvik,Norway, buildsadvancedoffshorevessels.The

yardhaseffec0vefacili0esforearlyoulivngandhullassembly.Klevenhas

inrecentyearsinvestedheavilyinautoma0onandrobo0sa0onofpartsof

the hull produc0on, allowing the yard to backsource a larger part of the

buildingprocesstoNorway.

Bnr TypeofVessel Design Name Owner Deliverydate Yard401Expedi0on NVC2140 TBN Hur0gruten July2019 KlevenVers

400Expedi0on NVC2140 TBN Hur0gruten July2018 KlevenVers

388Fishharves0ngvessel SALT425FHV TBN DESSAquacultureShipping March2018 MyklebustVers

396Sterntrawler NVC374WP TBN PesqueraAncoraS.L.U. February2018 MyklebustVers

394Trawler/purseseiner SALT0155 GiueHenning GiueHenningAS December2017 MyklebustVers

387AHTS SALT200AHTS TBN MaerskSupplyService October2017 KlevenVers

380Livefishcarrier NVC387 TBN Sølvtrans September2017 MyklebustVers

395Sterntrawler NVC374WP TBN CDPSaint-Malo&Euronor September2017 MyklebustVers

386AHTS SALT200AHTS TBN MaerskSupplyService August2017 KlevenVers

385AHTS SALT200AHTS TBN MaerskSupplyService June2017 KlevenVers

393Sterntrawler NVC374WP TBN DFFU June2017 MyklebustVers

384AHTS SALT200AHTS TBN MaerskSupplyService April2017 KlevenVers

375Livefishcarrier NCE387 TBN Sølvtrans March2017 MyklebustVers

392Sterntrawler NVC374WP TBN DFFU February2017 MyklebustVers

383AHTS SALT200AHTS TBN MaerskSupplyService February2017 KlevenVers

370ESV MT5006MKIIESV TBN TBN October2016 KlevenVers

382AHTS SALT200AHTS TBN MaerskSupplyService October2016 KlevenVers

372CLV SALT306CLV TBN ABB 2017 KlevenVers

Klevenbuildsuptofourexplorer

vesselsforHur0grutenCruisesDue toa strongpassengervolumegrowth incruise travels, cruise ship

order books are at historic levels, guaranteeing that many European

shipyardswillstaybusyforyearstocome.

•  Hapag-LloydCruisesorderstwoexpedi0oncruiseships•  VardConfirmsContractsforPonantQuartet:fourvessels.

Aquaculture

•  MarineHarvest(Listed)

•  LerøySeafoodGroup(Listed)

•  SalMar

•  Cermaq

•  GriegSeafood

•  NorwayRoyalSalmon

•  Nordlaks

•  NovaSea

•  BremnesSeashore

Norway’s long and jagged coastline surrounded by cold, fresh

seawater provides excellent condi0ons for aquaculture

ac0vi0es. Norway is the world’s leading producer of Atlan0c

salmonandthesecondlargestseafoodexporterintheworld.

ImportantCompanies:

Autonomousshipscanbemajor

investmentinNorway

Interest in autonomous ships is increasing and both industry

and research says that this could be the next revolu0on in

shipping. Autonomous ships with environmental friendly

technolgy will provide new business opportuni0es for

shipyards,equipmentmanufacturersandshipowners.

Greenstrategyforablueindustry.