The Q2 Report 2012

CEO TransAtlantic Henning E. Jensen

CFO TransAtlantic Heléne Mellquist,

CEO Viking Supply Ships Christian Berg

Aug 8, 2012

Overall result

As anticipated, earnings for the second quarter were weak for both

Viking Supply Ships (VSS) and Industrial Shipping (IS), but due to

seasonal- and cost-cutting effects, the underlying operating results

were better in Q2 than in Q1.

The quarter includes a number of nonrecurring provisions (SEK -28 M),

primarily attributable to restructuring costs and a customer bankruptcy.

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Q2 and H1, 2012

April-June 2012

• Net revenues amounted to SEK 864 M (661)

• EBITDA, amounted to SEK 35 M (31)

• Profit before tax amounted to SEK -124 M (-73)

• Net Income amounted to SEK -124 M (-52)

• Earnings per share amounted to SEK -1.1 (-0.8)

January – June 2012

• Net revenues amounted to SEK 1 725 M (1 239)

• EBITDA, amounted to SEK 20 M (54)

• Profit before tax amounted to SEK -256 M (-138)

• Net Income amounted to SEK -256 M (-105)

• Earnings per share after tax amounted to SEK -2.3 (-1.6)

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Group income statement

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Group

Jan-Jun Full Year

SEK M 2012 2011 2012 2011 2011

Net sales 864 661 1 725 1 239 2 989

EBITDA 35 31 20 54 67

Operating Income (Loss) -51 -59 -148 -100 -348

Profit (Loss) before taxes -124 -73 -256 -138 -466

Profit before tax by business area

Viking Supply Ships business area -49 -30 -137 -64 -110

Industrial Shipping business area -54 -13 -117 -33 -162

Operating income (Loss) -103 -43 -254 -97 -272

Restructuring items -27 -27 -8 -38 -187

Acquisition effects 6 -3 6 -3 -7

Profit (Loss) before taxes -124 -73 -256 -138 -466

Taxes 0 21 0 33 31

Result -124 -52 -256 -105 -435

Net Income (Loss) margin -14,4% -7,9% -14,8% -8,5% -14,6%

SEK per share

Earnings per share -1.1 -1.1 -2.3 -2.1 -7.3

Apr-Jun

Financial position

Financial position

June December

SEK M at the close of each period 2012 2011

Total assets 6 223 6 283

Shareholders' equity 2 231 2 493

Equity/assets ratio, % 35,9% 39,5%

Debt/equity ratio, % 134,2% 97,7%

Cash and cash equivalents 287 548

Number of shares outstanding 110 902 700 110 902 700

Shareholders' equity per share 20,1 22,5

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Q2 2012 Industrial Shipping

• Progress is being made relating to the cost reduction

program presented earlier this year.

• The IS fleet was reduced to 35 vessels compared with

48 at year end 2011. Several charter agreements were

also renegotiated. This is beginning to generate positive

effects in Q2 and will gain additional traction over the

next quarters.

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Industrial Shipping Full year

2012 2011 2012 2011 2011

Net sales 579 538 1 227 977 2 259

EBITDA -36 n.a. -63 n.a. n.a.

Operating income (Loss) -54 -13 -117 -33 -162

Operating income (Loss) % -9,3% -2,4% -9,5% -3,4% -7,2%

April-June January-June

Q2 2012 Viking Supply Ships

• The charter agreement between Viking Supply Ships

(VSS) and Sakhalin Energy Investment Company Ltd

(SEIC) has been duly executed and the ship (Vidar

Viking) is now in full operation for SEIC.

• During the first six months of the year, VSS focused on

increasing the number of vessels on longer term-

contracts thus reducing our spot market exposure. This

has proven successful; 2 additional ships have been

committed to long term contracts with start up in Q2 and

Q3.

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Viking Supply Ships Full year

2012 2011 2012 2011 2011

Net sales 285 123 498 262 730

EBITDA 71 n.a. 83 n.a. n.a.

Operating income (Loss) -49 -30 -137 -64 -110

Operating income (Loss) % -17,2% -24,4% -27,5% -24,4% -15,1%

April-June January-June

Viking Supply Ships - Highlights

• VSS has a clear focus on continuing to increase the

number of vessels on term contracts.

• For most of the remainder of 2012, 4 AHTS vessels

will be on term contracts compared to 1 AHTS vessel

at the beginning of 2012.

• The average utilization for the AHTS fleet in Q2

increased from Q1 to 72 % and 70 % for the AHTS and

PSV flees, respectively. This combined with slightly

higher rates on average in Q2 than in Q1 is the main

driver behind the sequential quarterly performance

improvement in VSS.

• During March, Viking Supply Ships raised 300 MNOK

through issuing a 5 year senior unsecured bond in the

Norwegian capital market. This bond was listed on

Oslo ABM on June 28th.

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Viking Supply Ships – Way forward

• Increase focus on Arctic/Ice operations in harsh environments. The Arctic

E&P spending is increasing and forecasted to continue to increase. This year

VSS has a record number of vessels involved in such operations. As this

market continues to grow, we expect to see a increase in the number of

contracts and the rates for such operations.

• Continue to focus on winning longer term contracts also with emphasis on

Arctic/ice operations.

• Optimize the VSS fleet to fit with the overall strategy.

• Focus on streamlining operations and achieving cost savings.

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Summary

Industrial Shipping

• Continued challenging market.

• Increased focus on additional sales and cost savings/restructuring in 2012

• Results expected to be slightly improved in H2, compared with H1.

• The target is to break even on a cash basis at the end of 2012 on a run rate basis.

Viking Supply Ships

• Medium to long-term, we see a growing market with higher demands for our area of expertise and focus. VSS is well positioned for this and we see this as an exciting story.

• In the short term, the market continues to be weak with small expectations for significant improvements except for the normal seasonality effects for the remainder of the year, alhtough VSS performance will improve in the second half of the year due to the increase in longer term contract coverage.

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Thank you!