Quarterly Presentation Q4 2017

DOF Subsea Group

DOF Subsea Group at a glance

2

2005DOF Subsea

established

NOK 4.6bn1)

Revenues

2017

1 2142)

Subsea employees

worldwide Q4’17

NOK 16.1bnFirm backlog

Q4’17

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

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

Owned vessels Chartered-in vessels Total

337

553 563

8971014

1246

14921354

1667

1858

1566

1278 1214

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

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

Delivery of two newbuilds entering into

long-term contracts

Large and global organisation following multiple

acquisitions from 2005-2010

2010Century SubseaCovus Subsea

CSL

2005

More than a decade of structural growth and consolidation

DOF Subsea 3

2008

2014

2016

2017

Development in number of Subsea Employees1)

Development in number of vessels in operation2)

SEMAR

Awarded four PLSV long-term contracts in joint

venture with TechnipFMC

2013

SWG Offshore

1) Note: Marine crew not included

2) Note: Newbuilds not included

3) Note: Year-end numbers

Global footprint

4

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

2976

38610

2434

2885

DOF Subsea1) Note: Number of employees as at end of Q4’17, excluding marine crew

2) Note: Vessels in operation as at end of Q4’17, including 3 chartered-in vessels (excluding newbuilds under construction)

Several major and attractive contracts commenced in 2017

5

ENI Angola

Jan 2017

• IMR contract offshore Angola

• 16 months + 3x4 months

options

• Scope comprising project

management, engineering,

vessels and ROV services

• Long-term contract with Petrobras

• 18 months + 18 months options

• On contract with Petrobras since

2010

• Vessel owned in joint venture with

TechnipFMC

• First-pipe lay vessel built in Brazil

• Long-term contract with

Petrobras

• 8 years + 8 years options

• Vessel owned in joint venture

with TechnipFMC

• Built in Norway with 650t VLS

• 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

• 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

Skandi Vitoria

Jan 2017

Skandi Buzios

Apr 2017Husky Energy

Jul 2017

Prelude FLNG

Nov 2017

DOF Subsea

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

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2012 2013 2014 2015 2016 2017

-

500

1,000

1,500

2,000

2,500

2012 2013 2014 2015 2016 2017

-

5

10

15

20

25

2012 2013 2014 2015 2016 2017

Key financials1)

7

Revenue EBITDA2) Firm backlog

NOK million NOK million NOK billion

1) Note: Figures according to management reporting

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

Segment highlights

Two business segments

DOF Subsea 9

DOF Subsea Group

Long-term Chartering1)

Revenues 20172)

NOK 1 423 million

EBITDA 20173)

NOK 1 084 million

~76% margin

Firm backlog4)

NOK 12.4bn

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

3) Note: According to management reporting

4) Note: Firm backlog as at end of Q4’17

5) Note: Including 3 chartered-in vessels

2 newbuilds Q4’177 vessels in

operation Q4’17

Long-term

charters

Vessel

capabilitiesCapex

spending

Subsea IMR Projects

Revenues 20172)

NOK 3 127 million

EBITDA 20173)

NOK 323 million

~10% margin*

Firm backlog4)

NOK 3.7bn

1 214 Employees

Q4’17

18 vessels in

operation5) Q4’17

Engineering

capabilities

Framework

agreements

Opex

spending

* Reduced EBITDA margin due to one-off events in North America and APAC

10

Numerous projects completed 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 unrivaled 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

✓ ENI Angola IMR Contract (2017-2018)

✓ Goliat Field Support ENI (2016)

✓ Saipem CRX/Nene (2014)

✓ Call-off for Light Construction Services and Seabed

Survey Services Statoil (2012-2015)

✓ Technip Frame Agreement (2012-2015)

✓ ConocoPhillips ROV Services (2012 and onwards)

✓ Freeport McMoran IMR Support (2013-2016)

✓ Saipem JSM Export Line Support (2014-2015)

✓ ROV Support Vessel Petrobras (2011 and onwards)

✓ 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

Selected contracts included in backlog

11

Location Client Scope Commencement Duration

Angola ENI Angola IMR 2017 16 months + 12 months

Eastern Canada Husky Energy IMR 2017 10 years + 10 years

Prelude Australia Shell Australia IMR 2017 5 years + 4 years

Brazil Petrobras Inspection 2016 1 year + 1 year

Gorgon, Janz and Wheatstone Chevron Australia IMR 2015 3 years + 2 years

Malampaya Shell Philippines IMR 2014 7 years + 3 years

North Sea Conoco PhillipsIMR

2011 8 years + 13 years

Subsea IMR Projects

North America

Gradually built up the

region, becoming a top

three supplier of IMR

services in the GoM

Brazil

Strong position being one

of the major suppliers of

IMR services

North Sea / Atlantic

Leading supplier of

mooring services in the

North Sea and West

Africa

Asia Pacific

Leading supplier of IMR

services in the region

DOF Subsea

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

12

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 12.4bn

firm backlog

per Q4’17

Long-term Chartering

DOF Subsea

13

DOFCON Brazil AS(established 2009)

50% 50%

State-of-the art PLSV fleet co-owned through JV with TechnipFMC, the #1 global provider of flexible pipes

✓Skandi Vitoria and Skandi Niteroi first ever pipe-lay

vessels built in Brazil ✓

Skandi Açu and Skandi Buzios built in Norway and

delivered on-hire to Petrobras in August 2016 and April

2017, respectively

✓

Skandi Recife and Skandi Olinda currently under

construction, with construction of both vessels

progressing according to plan✓

Skandi Açu, Skandi Buzios, Skandi Refice and Skandi

Olinda all awarded 8 + 8 year contracts with Petrobras

6 vessels – USD 2 billion invested

Exposure to larger projects✓

Attractive financing terms

State-of-the-art vessels

Reduced redeployment risk ✓

✓

✓

Successful strategic alliance with TechnipFMC in BrazilLong-term Chartering

DOF Subsea

4th Quarter 2017

Q4 2017 highlights

• The operating revenue for the quarter was NOK 1 275 million1) with an EBITDA of NOK 402 million1)

and an overall vessel utilisation of 78%

• Several short-term contracts awarded within the Subsea IMR Projects segment, increasing the

utilisation of both assets and personnel compared to previous quarters

• The IMR contract on the Prelude field with Shell in Australia commenced in November

• Skandi Niteroi awarded short-term contract in Brazil

• In December, DOF Subsea completed a private placement towards DOF ASA to raise NOK 500 million

in equity. In connection with the private placement, the maturity of bond DOFSUB07 was extended from

May 2018 to October 2019 for NOK 100 million and May 2020 for the remaining NOK 408 million

• Firm backlog as at 31 December 2017 was NOK 16.1 billion

DOF Subsea 151) Note: Figures according to management reporting

Quarterly performance1)

DOF Subsea 161) Note: Figures according to management reporting, and excluding 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

Q4 2013 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

EBIT

DA

mar

gin

NO

K m

illio

n

Operating income EBITDA EBITDA margin

NOK million Q4 2013 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

Operating income 1 871 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

EBITDA 550 502 543 552 502 458 515 553 516 456 510 447 320 279 400 332 402

EBITDA margin 29,4% 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%

Current assets 3 470 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

Non-current assets 16 340 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

Total assets 19 810 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

Current liabilities 3 167 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

Non-current liabilities 11 427 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

Equity 5 216 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

Total equity and liablilites 19 810 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

Condensed profit & loss1)

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

Pofit & Loss (NOK million) 4Q 2017 4Q 2016 2017 2016

Operating income 1 068 1 001 3 849 5 099

Payroll expenses -368 -376 -1 420 -1 611Other operating expenses -462 -407 -1 593 -2 047Share of net income of associates and joint ventures 54 70 303 154Profit from sale of non-current assets - 96 -5 170

Operating profit before depreciation (EBITDA) 292 385 1 135 1 764

Depreciation and impairment -201 -375 -999 -1 318Operating profit (EBIT) 91 10 136 446

Financial income 13 20 55 59Financial expenses -132 -145 -521 -530Realised net gain / loss on derivative instruments and currency position 8 -98 -80 -181Unrealised net gain / loss on derivative instruments and currency position -194 -193 288 473Net financial income / loss -305 -417 -259 -179

Profit / loss before tax -215 -407 -123 266Income tax expense -161 -23 -150 -111

Profit / loss for the period -375 -430 -273 155

Condensed balance sheet1)

DOF Subsea 181) 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) 31.12.2017 31.12.2016

Tangible assets 11 773 11 950

Goodwill 366 373

Deferred tax asset 243 269

Investment in associates and joint ventures 1 027 717

Non-current receivables 1 125 1 169

Non-current assets 14 534 14 479

Trade receivables 855 791

Other current receivables 252 317

Total current receivables 1 107 1 108

Restricted cash 311 305

Unrestricted cash and cash equivalents 786 757

Cash and cash equivalents 1 097 1 062

Current assets 2 204 2 170

Total assets 16 738 16 648

Equity and liabilities (NOK million) 31.12.2017 31.12.2016

Paid-in equity 4 344 3 844

Other equity 1 778 1 987

Non-controlling interests 226 224

Total equity 6 348 6 055

Bond loans 1 914 1 297

Debt to credit institutions 6 518 7 208

Financial non-current derivatives 24 98

Other non-current liabilities 24 29

Non-current liabilities 8 481 8 632

Current portion of debt 1 191 1 114

Trade payables 392 500

Other current liabilities 325 347

Current liabilities 1 909 1 961

Total liabilities 10 390 10 594

Total equity and liabilities 16 738 16 648

Debt maturity profile1)

DOF Subsea 19

Debt maturity profile, 2018E – 2022E

1) Note: Figures according to management reporting and based on exchange rates as at end of Q4’17

The figures reflect amortisation and balloon payments on outstanding debt

-

500

1,000

1,500

2,000

2,500

3,000

3,500

2018E 2019E 2020E 2021E 2022E Thereafter

NO

K m

illio

n

Bond Loan Bank Debt Balloons

Backlog1)

DOF Subsea 201) Note: Figures based on remaining backlog as at end of Q4’17 and exchange rates as at end of Q4’17

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

2018 2019 2020 2021 2022 Thereafter

Options 1.1 0.6 0.5 0.5 0.3 15.1

Firm 2.8 2.5 2.3 2.0 1.8 4.7

0.0

5.0

10.0

15.0

20.0

NO

K b

illi

on

As at 31 December 2017, the Group’s firm contract backlog was NOK 16.1 billion

Modern high-end fleet

• Majority of the fleet is younger than 10 years

• Modern fleet with a value adjusted average fleet age of 6.4 years

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

DOF Subsea 21

Skandi Africa, Ship of the Year 2015

Skandi Acu, PLSV built 2016

Skandi Buzios, PLSV built 2017

1) Note: Excluding newbuilds under construction and chartered-in vessels

2) Note: Figures as at end of Q4’17

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Years

Fleet age

Average fleet age

Value adjusted average fleet age

Newbuilds8%

2013-201717%

2007-201250%

2000-200625%

Year of delivery DOF Subsea fleet

Thank you!