Quarterly Presentation Q1 2018

DOF Subsea Group

DOF Subsea Group at a glance

2

2005DOF Subsea

established

NOK 1.1bn1)

Revenues

Q1’18

1 1082)

Subsea employees

worldwide Q1’18

NOK 15.3bnFirm backlog

Q1’18

273)

Subsea vessels714)

ROVs

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 newbuilds Skandi Olinda and Skandi Recife and chartered-in vessels Harvey Deep Sea, Skandi Chieftain and Skandi Darwin

4) Note: Including 2 AUVs

11 1113

1618

21

24 25 26 27

24

21

25 25

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

Owned vessels Chartered-in vessels

337

553 563

8971014

1246

14921354

1667

1858

1566

1278 12141108

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

More than a decade of structural growth and consolidation

DOF Subsea 3

Development in number of Subsea Employees1)

Development in number of vessels in operation2)

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

Large and global organisation following multiple

acquisitions from 2005-2010

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: Newbuilds not included

3) Note: Year-end numbers

2018

Delivery of two newbuilds entering into long-term

contracts and commencement of two long-term

IMR contracts2017

Two newbuilds with long-term contracts to be

delivered

-

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

2012 2013 2014 2015 2016 2017 LTM

-

500

1 000

1 500

2 000

2 500

2012 2013 2014 2015 2016 2017 LTM

-

5

10

15

20

25

2012 2013 2014 2015 2016 2017 LTM

Key financials1)

4

Revenue EBITDA2) Firm backlog

NOK million NOK million NOK billion

1) Note: Figures according to management reporting (LTM = Last Twelve Months)

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

Global footprint

5

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

2556

34310

2824

2285

DOF Subsea1) Note: Number of employees as at end of Q1’18, excluding marine crew

2) Note: Vessels in operation as at end of Q1’18, including 3 chartered-in vessels (excluding newbuilds under construction)

6

Positioning DOF Subsea

• Improved competitive position for DOF

Subsea when market normalises

− multiple competitors have scaled down

operations or entered financial distress

• Favourable competitive dynamics in

tendering for mid-sized subsea IMR

projects

− Larger EPCI providers typically invited to

tender, however less capable and willing

to meet specific project requirements

due to relatively small project size

− Vessel suppliers are not invited to

tenders due to lack of engineering and

project execution capabilities

• DOF Subsea benefits from offering an

integrated engineering and vessel

solution

Lo

cal

Mu

lti-

reg

ion

al

Glo

ba

l

Dayrate / Support services Small to medium EPCI contracts Larger EPCI contracts

Source: ABGSC

= Chapter 11 /

financial distress

Geographies

Capabilities

Illustrative

DOF Subsea holds a leading position in the subsea IMR market through its

global presence and integrated solutions offering

DOF Subsea

Maintained strong backlog in challenging market

Firm backlog Q1 2018 equals firm backlog 2013

0

5

10

15

20

25

30

35

40

45

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2013 2014 2015 2016 2017 2018

NO

K b

illi

on

Sum of Firm Sum of Options

• Majority of firm contract backlog with

investment grade companies

• Firm contract backlog in NOK has been

relatively steady over time

• Current firm contract backlog equals ~3x

actual 2016 revenue

• Majority of firm backlog has high EBITDA-

margin

DOF Subsea 7

Segment highlights

Two business segments – Last Twelve Months (LTM)

DOF Subsea 9

DOF Subsea Group

Long-term Chartering1)

Revenues LTM2)

NOK 1 482 million

EBITDA LTM3)

NOK 1 148 million

~77% margin

Firm backlog4)

NOK 11.4bn

1) Note: Long-term chartering comprises 5 PLSVs in operation and 2 PLSVs under construction, plus

Skandi Acergy and Skandi Patagonia

2) Note: According to management reporting (LTM = Last Twelve Months)

3) Note: According to management reporting (LTM = Last Twelve Months)

4) Note: Firm backlog as at end of Q1’18

5) Note: Including 3 chartered-in vessels

2 newbuilds Q1’187 vessels in

operation Q1’18

Long-term

charters

Vessel

capabilitiesCapex

spending

Subsea / IMR Projects

Revenues LTM2)

NOK 3 139 million

EBITDA LTM3)

NOK 297 million

~10% margin

Firm backlog4)

NOK 4.0bn

1 108 Employees

Q1’18

18 vessels in

operation5) Q1’18

Engineering

capabilities

Framework

agreements

Opex

spending

10

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)

✓ ENI Angola IMR Contract (2017-2018)

✓ 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)

✓ Aasta Hansteen Mooring Installation (2018)

✓ Lam Son Mooring Replacement (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)

✓ Knarr Mooring Project Teekay (2013-2014)

✓ Banff Re-instatement Project Teekay (2013-2014)

DOF Subsea

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

11

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

7

vessels in

operation

2

contracted

newbuilds

NOK 11.4bn

firm backlog

per Q1’18

Long-term Chartering

DOF Subsea

Selected long-term contracts

12DOF 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

Skandi Achiever

Sep 2018

• Long-term contract with

Petrobras

• 8 years + 8 years options

• Vessel owned in joint venture

with TechnipFMC

• Built in Brazil with 300t VLS

Skandi Olinda

Feb 2019

• Long-term IMR contract

offshore Eastern Canada

• 10 years + 10 years options

• IMR scope comprising project

management, engineering,

vessel and ROV services

• High strategic importance

through strengthened presence

in the Canadian market

Husky Energy

Jul 2017

1st quarter 2018

Q1 2018 highlights

• The operating revenue for the quarter was NOK 1 053 million1), EBITDA was NOK 311 million1) and

overall vessel utilisation was 71%.

• Firm contract backlog as at 31 March 2018 was NOK 15.3 billion.

• DOF Subsea was awarded several short-term contracts in the Asia Pacific region, the Atlantic region,

the Brazil region and the North America region securing utilisation of personnel and assets in the

Subsea/IMR Projects segment.

• The Brazil region was awarded long-term ROV contracts with Petrobras.

• The Brazil region was awarded a three-year firm contract with a two-year option by Petrobras in Brazil

for the provision of the DSV Skandi Achiever and ROV and diving services.

• The North America region was awarded a contract securing 120 days of utilisation of the chartered-in

vessel Skandi Chieftain for seismic support operations from May 2018.

DOF Subsea 141) Note: Figures according to management reporting

Quarterly performance1)

DOF Subsea 151) Note: Figures according to management reporting, and excluding profit from sale of non-current assets

NOK million Q1 2014 Q2 2014 Q3 2014 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

Operating income 1 530 1 963 1 904 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

EBITDA 502 543 552 502 458 515 553 516 456 510 447 320 279 400 332 402 310

EBITDA margin 32,8% 27,7% 29,0% 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%

Current assets 3 247 3 252 2 998 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

Non-current assets 16 012 16 151 16 215 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

Total assets 19 258 19 403 19 213 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

Current liabilities 3 470 3 741 3 607 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

Non-current liabilities 10 126 9 701 9 668 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

Equity 5 662 5 962 5 938 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

Total equity and liablilites 19 258 19 404 19 213 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

0%

5%

10%

15%

20%

25%

30%

35%

40%

-

500

1 000

1 500

2 000

2 500

Q1 2014 Q2 2014 Q3 2014 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

EBIT

DA

mar

gin

NO

K m

illio

n

Operating income EBITDA EBITDA margin

Condensed profit & loss1)

DOF Subsea 161) Note: Financial statement according to IFRS. Condensed financial statement according to management reporting is included in the DOF Subsea Quarterly Financial Report

Condensed balance sheet1)

DOF Subsea 171) Note: Financial statement according to IFRS. Condensed financial statement according to management reporting is included in the DOF Subsea Quarterly Financial Report

Debt maturity profile1)

DOF Subsea 18

Debt maturity profile, 2018E – 2022E

1) Note: Figures according to management reporting and based on exchange rates as at end of Q1’18

The figures reflect amortisation and balloon payments on outstanding debt

-

500

1 000

1 500

2 000

2 500

3 000

2018E 2019E 2020E 2021E 2022E Thereafter

NO

K m

illi

on

Bond Loan Bank Debt Balloons

Backlog1)

DOF Subsea 191) Note: Figures based on remaining backlog as at end of Q1’18 and exchange rates as at end of Q1’18

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 March 2018, the Group’s firm contract backlog was NOK 15.3 billion

2018 2019 2020 2021 2022 Thereafter

Options 0,4 0,8 0,5 0,9 1,0 14,1

Firm 2,3 2,6 2,4 2,0 1,7 4,4

0,0

5,0

10,0

15,0

20,0

NO

K b

illi

on

Firm Options

Modern high-end fleet

• Majority of the fleet is younger than 10 years

• Modern fleet with a value adjusted average fleet age of 6.71) years

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

DOF Subsea 201) Note: Excluding newbuilds under construction and chartered-in vessels, and figures as at end of Q1’18

Newbuilds2

2013-20174

2007-201212

2000-20066

Year of delivery DOF Subsea fleet1)

(number of vessels)

-

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

10,0

Years

Fleet age1)

Average fleet age Value adjusted average fleet age

Skandi Africa, Ship of the Year 2015

Skandi Buzios, PLSV built 2017

Skandi Vinland, CSV built 2017

Thank you!