2018 The year when some of the optimism came back

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1 The IKM Group

2 2018 The year when some of the optimism came back That is a statement that I can vouch for. There is no doubt that the market has improved, but there is some way to go yet before all of us in this industry have full order books. Many companies still have capacity available. This also applies to IKM, which at the time of writing (week 3) has just under 100 people laid off, in many diciplines and in many companies. What is positive is that backlog for all of IKM are at their highest level in years! This means that 2018 is getting off to a better start. IKM Subsea, IKM Cleandrill and IKM Mooring for example are three companies where activities are looking very different now from It is also gratifying that our RROV is in position on the Snorre field for Statoil. This is a milestone for IKM Subsea, because we now have a remote controlled ROV (controlled from a control room in Bryne) permanently located in a small mechanical garage on the sea bed. It will only need to be brought on deck for scheduled maintenance. IKM is in fact the first company to have developed an ROV of this kind, with associated equipment. Many people in IKM have contributed to this, so we can all be proud of what we have achieved. Thanks also to Statoil, who has given us lots of support in this prestige project. Our extended framework agreement with AkerBP, covering maintenance of cranes, loose lifting equipment and lifeboats, is also very exciting. With options, this is an 11 year agreement worth more than NOK 1 billion! This was a great piece of business to win! So how will the rest of the year develop? Martin Linge is now on its way to Norway and Rosenberg WorleyParsons. How long it will stay there is not yet certain. But if there is a lot of work left to do, it would obviously be most efficient to do it while the platform is accessible from shore. Commuting offshore is both expensive and cumbersome. Time will tell. What is certain is that many IKM companies have work to do on this platform. Hopefully we can start on this right after Easter. This, together with the 7 developments for which plans were delivered to the authorities just before Christmas (Fenje, Snorre, Johan Castberg, Ærfugl, Skogul, Valhall vestflanke and Yme), means that some of the optimism is coming back. As it is here in IKM. It is our belief and expectation that by April of this year we will be in a situation where we can take on new permanent and temporary personnel in many IKM companies. Gratifyingly enough. We will also be affected by the fact that the authorities expect a further 6 development plans this year, the biggest being Johan Sverdrup phase 2 (estimated at NOK billion). So things are looking good in the longer term too. And the price of oil is 70 dollars! I would not have believed that a year ago. That also helps the optimism along. Even so, some of us (me) are a little worried about it. Costs must not be allowed to run wild again. That would not be good for our industry. Among other things, it would make us less competitive than foreign companies. On this basis, we look forward to a very exciting and active year in 2018 with many opportunities.

3 Our HSE Policy Zero injuries - an overall objective! We shall instil confidence among our customers and safety and well-being among our employees We shall follow laws, regulations and code of ethics HSE is our most important internal work component No operation has priority over safety HSE is a line responsibility in the entire organisation Everyone is responsible for their own safety and the safety of others We shall prevent pollution and reduce negative environmental impact We shall reduce the amount of waste and optimise the use of resources We shall accept our social responsibilities by contributing to the community We shall secure our values, areas and information Together with our clients and suppliers we shall continually improve our procedures and routines in environmental management. We believe that social commitment will result in savings for our clients and new business possibilities for The IKM Group. Each IKM company shall establish its own objectives in order to comply with The IKM Group s overall policy and values. Our Values Responsible Bold Clear Focused

4 Electrical / Instrument / Automation Product sales Supply house Instrumentation / electronics / automation Vibration instruments Laser alignment instruments Acoustic instruments Measurement / testing equipment Electrical motors / transformers Thermography equipment Transformer surveillance Calibration / environmental instruments Navigation / communication Enclosures EX Enclosure heaters Water makers Ballast water treatment Ex motors Industry motors Manufacturing Subsea motors Subsea transformers Invertex (Zone 1 frequency transformer) Earthing cabinets Electrical motors / transformers / generators Subsea electrical motors / transformers Pressurised containers Control / enclosure panels UPS systems HPU s Subsea HPU s Subsea electrical actuators Local control panels ( LCP) Temperature calibrators Electro models for training Electrical ROV Systems IMR Solutions Pumping systems ROV tools Subsea control systems Subsea equipment Rental Electrical measurement equipment Temperature measurement equipment Flow meters Subsea equipment and loggers Radio and communication equipment Pumps Optical instruments Instruments for analysis Pressure reading instruments Calibrators Cameras Data equipment and loggers Service, installation and calibration System integration Pressure / temp / flow /electrical / mechanical Valve Site Service (VSS) Pressure safety valves (PSV) Navigation / communication (maritime equipment for ship and rig) Vibro-acoustics Machine protection offshore Field instrumentation Emission measurements (NOX) Power control containers (Ex/non Ex) Temporary electrical equip. (Ex/Z-015) Electrical / hydraulic control systems (Ex /non Ex) Onshore / offshore service assignments Condition monitoring: - Vibration monitoring and analysis - Laser alignment - Thermography - Ultrasonic leak detection - Acoustic measurements - Balancing Winding / overhaul of: - Motors Overhaul of: - Pumps - Cylinders - Drilling equipment - Winches / cranes - HPU S Service personnel Electricians Automation technicians Instrument technicians Process operators Hydraulic Specialists Training courses Webshop Sale of test and measuring instruments Rental of equipment and instruments

5 Subsea / Mechanical Completion / Commissioning Mechanical Completion Nitrogen services Pressure testing Hot oil flushing Chemical cleaning Bolt tensioning Preservation Maintenance / Certification Composite repair services Hot Bolting Certification of accumulators Maintenance of heat exchangers HVAC cleaning Machining / Cutting on site Flange Machining Plain- / key milling Hole- / line boring Mechanical cutting Diamond wire cutting Abrasive waterjet cutting Pipeline subsea services Pigging Flushing Leak testing Dewatering Gel filling / waxing Umbilical testing Well services Cuttings Transport Nitrogen lifting Well integrity testing Scale inhibitor squeeze Acid stimulation services Temporary water injection Decommissioning / Removal Cleaning Passivation Cutting Inspection Video inspection Tank inspection Inspection pressurized systems Drone- / RPAS -/ UAV inspection Cleaning Cleaning in place (CIP) High pressure cleaning Tank- / vessel cleaning Vacuum cleaning LRA / NORM handling Rental Pumps and tanks Inspection equipment Bolt working equipment Flanges and plugs Air compressors Testing equipment Hydraulic hose reels Hot water cleaners Training courses Bolt tensioning (NS-EN 1591) Valves Pressure testing Tailor made courses Design and engineering 2D draughting (AutoCAD) 3D draughting (Inventor) 3D modelling and animation (3DS Max) Full construction drawings Bespoke equipment development Design concept simulation and visualisation Design and improvement of training courses and learning aids ROV services ROV operations Tie-in operations Survey support Drill support Inspection / maintenance / repair (IMR) Subsea construction Excavation and dredging Cutting operations, diamond wire etc Leak detection / pig tracking / tracing Subsea valve packs

6 The IKM Group ELECTRICAL / INSTRUMENT / AUTOMATION SUBSEA / MECHANICAL COMPLETION / COMMISSIONING ENGINEERING / OPERATIONS EVP, Hans Jakob Mellgren EVP, Ståle Kyllingstad EVP, Arne Vervik IKM Elektro AS (Sola) (90,2%) Dept. Hammerfest IKM Instrutek AS (Larvik) (90,2%) Dept. Sola Dept. Bergen Dept. Ålesund IKM Instrutek US LLC (Louisiana) IKM Laboratorium AS (Tananger) (90,2%) Dept. Bergen Dept. Bryne Dept. Forus Dept. Larvik Dept. Oslo IKM Measurement Services Ltd. (Aberdeen) (90,2%) IKM Measurement Services Australia Pte. Ltd. (Perth) (90,2%) IKM Hydraulic Services AS (Tananger) (81,2%) IKM Technology AS (Bryne) IKM Testing AS (Sola) Dept. Bergen Dept. Kristiansund Dept. Hammerfest IKM Testing Asia Pte. Ltd (Singapore) IKM Testing Australia Pty. Ltd (Perth) IKM Testing Brasil LTDA (Serra) IKM Testing Canada Ltd (St. Johns) Dept. Halifax IKM Testing Korea LLC (Busan) IKM Testing Malaysia Sdn. Bhd (Kuala Lumpur) IKM Testing Poland Sp. z o.o. (Gdansk) IKM Testing Thailand Co. Ltd (Rayong) IKM Testing UK Ltd (Newcastle) Dept. Aberdeen PT IKM Indonesia (Batam) IKM Subsea AS (Bryne) IKM Subsea UK Ltd (Aberdeen) IKM Subsea Malaysia Sdn. Bhd (Kuala Lumpur) IKM Subsea Middle East FZE (Sharjah) IKM Subsea Singapore Pte. Ltd (Singapore) IKM Consultants AS (Sola) Avd. Oslo IKM Consultants UK Ltd (Aberdeen) IKM dsc Engineering AS (Tranby) IKM Kran og Løfteteknikk AS (Tananger) Avd. Sandnessjøen IKM Tech Team Solution AS (Tananger) IKM Offshore Service AS (Sola) IKM Ocean Design AS (Sandnes) (88%) Avd. Trondheim Avd. Oslo IKM Operations AS (Sola)

7 IKM Invest FABRICATION / INSPECTION RIG / DOWNHOLE SERVICES IKM EIENDOM AS EVP, Kåre Øen Hansen EVP, Ståle Kyllingstad IKM HVAC AS (Sandnes) (51%) IKM HVAC Production Sp. z.o.o. (Elblag) (40,8%) IKM Haaland AS (Vigrestad) IKM Industrigravøren AS (Vigrestad) IKM Inspection AS (Stavern) Dept. Arendal Dept. Brevik Dept. Drammen Dept. Fredrikstad Dept. Grimstad Dept. Kristiansand Dept. Nærbø Dept. Forus Dept. ønsberg IKM Maskinering AS (Tau) (90,2%) Dept. Sola IKM Stainless Technology AS (Nærbø) IIKM Cleandrill AS (Straume) (69,5%) IKM Cleandrill Australia Pty. Ltd (Perth) (69,5%) IKM Cleandrill UK Ltd (Aberdeen) (67%) IKM Mooring Services AS (Sola) Dept. Skipavika IKM Pressure Control AS (Sandnes) (70%) IKM Production Technology AS (Sola) IKM Production Technology Sdn. Bhd (Kuala Lumpur) Commercial property 95 tenants ( sq.m.) Development projects Commercial real estate ( sq.m.) Residentials ( sq.m.) Recreational residentials (80 units) Apartments / housing 6 rental units / 3 apartment for sale Company investments Skagen Eiendomsforvaltning AS (100 %) - Property management ( sq.m.) Kaefer IKM AS

8 5500 IKM INDUSTRI-INVEST AS 5000 Company investments Malthus Uniteam AS (22%) Smaken av Grimstad AS (60%) Halodi Robotics AS (0,8%) 4500 Funds Energy Ventures III Acona AS B2018 Mill. NOK

9 Engineering / Operations Consultancy services Multidiscipline engineering services Project management & project control Information management Document control / LCI Procurement & contract services Logistics & MA services Information management Document control / LCI Subsea & marine Drilling & well Subsurface Geology / reservoir Quality & risk management HSE&Q Construction, MC, Commissioning and Hook-up Operation / service personnel Crane operators Mechanics Flag men Heliguards Operation and maintenance services Operation / maintenance personnel / engineers Studies and operations engineering Early phase planning and prepare for operations Documentation for operations Competence assurance Simulator training All type of manpower for execution and maintenance Implementing of maintenance programs in CMM / ERP systems Maintenance concepts Planning and execution of corrective and required maintenance, campaign maintenance, shut down activities Maintenance and inspection engineering Studies within Life-time Studies within Risk All type of projects within EIT, SAS and F&G Marine pipeline engineering Subsea and pipelines: - Field development - Engineering / design of marine pipelines - Flexible / rigid risers - Installation engineering - Subsea production systems - Subsea operational support Design and construction of: - Subsea structures - Tie-in modules / systems - Subsea manifold systems Topside engineering Structure design Piping Crane and lifting services Maintenance, modifications and certification of: - Offshore / ship cranes, lifting arrangements - Lifeboats, mob-boats and lifesaving equipment Certification, maintenance and supply of lifting equipment Hiring out equipment / lifting equipment Related engineering, studies / analysis Related structur / piping fabrication/ installation, mechanical / hydraulic work Fire / blast protection and winterization systems External fire and blast walls Internal fire walls Explosion relief panels Heat shields and wind shields Louvre systems Escape tunnels

10 Fabrication / Inspection CNC-machining CNC thin plate machining 3D measuring CNC milling CNC turning EDM machining HVAC and mechanical industry Maintenance and modifications Welding and machining of structure and sheet metal Sheet metal / welding and machining Water jetting Fabrication and installation Mechanical design / 3D modelling / 3D scanning Fabrication of stainless steel products Contracting personnel Material handling and lifting equipment Retail engineering System engineering Commissioning Service Offshore survey and rapport Piping prefabrication Inspection NDT / Material inspection Third party verification Inspection services Surface protection finishing Pre-treatment Powder coating Laser engraving Pickling stainless steel materials and aluminium Engineering and design

11 Rig / Downhole Services Process and well technology Data acquisition (pressure, temp, flow, chemical analysis) Well-site PVT and chemistry Annulus leakage diagnostics High pressure separator and sampling products Sample bottle rental and management Well testing and production services Drilling fluids management Mud Recovery without Riser (MRR) Riser Level Control (RLC) Drilling waste management Drilling waste management systems Cuttings handling, transportation and treatment Slop treatment Storage tanks, vacuum units and pneumatic pumps Mooring services Mooring services for semi-subs Analysis and engineering Inspection and services Well pressure control products Sales and services: - Surface pressure control equipment - Well intervention tools (wireline, coil tubing, snubbing) - Service spare parts - Management / refurbishment, storage of client owned equipment pressure control equipment/tools Rental: - BOP, Safety Head, Gate Valves - Riser, Cross Overs, Circulation Spools - Flow Control Treating Iron - Pressure Test. Hydraulic Control Pumps. - Flange Bolt Torque Equipment

12 Companies in the IKM Group ELECTRICAL / INSTRUMENT / AUTOMATION IKM Elektro AS Skvadronvegen Sola, Norway T: E: IKMelektro@IKM.no IKM Instrutek AS Elveveien Larvik, Norway T: E: IKMinstrutek@IKM.no IKM Laboratorium AS NorSea Base, Bygg 53 Pb. 124, 4098 Tananger, Norway T: E: IKMlab@IKM.no Dept. Oslo Ensjøveien Oslo, Norway T: E: IKMlab.Oslo@IKM.no Dept. Hammerfest Strandparken Nord, Strandgata 40, 9600 Hammerfest, Norway T: E: IKMelektro@IKM.no IKM Hydraulic Services AS Skvadronvegen Sola, Norway T: E: IKMhydraulicservices@IKM.no Dept. Sola Skvadronvegen Sola, Norway T: E: IKMinstrutek@IKM.no Dept. Bergen Johan Berentsens vei Laksevåg, Norway T: E: IKMinstrutek@IKM.no Dept. Ålesund T: M: E: IKMinstrutek@IKM.no IKM Instrutek US LLC Louisiana, 1111 Decker Drive Mandeville, LA 70471, USA T: E: IKMinstrutek@IKM.no Dept. Bergen Kokstadveien Kokstad, Norway T: E: IKMlab.Bergen@IKM.no Dept. Bryne Nordlysveien Bryne, Norway T: E: Calibration.IKMlab@IKM.no Dept. Forus Forusbeen Sandnes, Norway T: /7: E: Utleie.IKMlab@IKM.no Dept. Larvik Elveveien Larvik, Norway T: E: IKMLab.Larvik@IKM.no IKM Measurement Services Ltd Unit B4 Airport Industrial Park Howe Moss Drive, Dyce, Aberdeen AB210GL, UK T: E: IKMms@uk.IKM.com IKM Measurement Services Australia Pte. Ltd 33 Kewdale Road Welshpool WA 6106 Australia T: E: IKMms@au.IKM.com IKM Technology AS Nordlysvegen Bryne, Norway T: E: IKMtechnology@IKM.no SUBSEA / MECHANICAL COMPLETION / COMMISSIONING IKM Testing AS Ljosheimvegen Sola, Norway T: E: IKMtesting@IKM.no IKM Testing Australia Pty. Ltd 33 Kewdale Road Welshpool WA 6106, Australia T: E: IKMtesting@au.IKM.com IKM Testing Poland Sp. z o.o Slaska 21/ Gdynia, Poland T: E: IKMtesting@pl.IKM.com IKM Subsea AS Nordlysvegen Bryne, Norway T: E: IKMsubsea@IKM.no Dept. Bergen Bleivassvegen Ågotnes, Norway T: E: IKMtesting.Bergen@IKM.no Dept. Kristiansund NorSea Vestbase, Pb Kristiansund, Norway T: E: IKMtesting.Kristiansund@IKM.no Dept. Hammerfest Bøkkerveien Hammerfest, Norway T: E: IKMtesting.Hammerfest@IKM.no IKM Testing Asia Pte. Ltd 117 Defu Lane 10 Singapore T: E: IKMtesting@sg.IKM.com IKM Testing Thailand Co. Ltd 72/2 Moo3, Phala Sub-district Banchang District, Rayong Province Thailand T: +66 (0) /997 E: IKMtesting@th.IKM.com IKM Testing Korea LLC 8-12 Sandan 7-ro, Joenggwan-myeon Gijang-gun, Busan, Korea T: E: IKMtesting@kr.IKM.com IKM Testing Brasil LTDA Rua Sete (VII), CIVIT II, Serra - ES CEP: T: E: IKMtesting@br.IKM.com IKM Testing Canada Ltd 40 St. Anne s Crescent Paradise, NL A1L 1K1 St Johns, Newfoundland, Canada T: +1 (709) E: IKMtesting@ca.IKM.com Dept. Halifax 24 Rowlings Avenue Musquodoboit Harbour, Nova Scotia, Canada B0J 2L0 T: +1 (902) E: IKMtesting@ca.IKM.com IKM Testing UK Ltd Unit 42 Colbourne Crescent, Nelson Park Industrial Estate, Cramlington Northumberland, NE23 1WB, UK T: E: IKMtesting@uk.IKM.com Dept. Aberdeen Peregrine Road, Westhill Aberdeenshire, AB32 6JL, UK T: E: IKMtesting.Aberdeen@uk.IKM.com PT IKM Indonesia Puri Industrial Park 2000 Jl. Engku Putri, Block C, No. 10A Batam Centre Indonesia T: E: IKMtesting@id.IKM.com IKM Subsea Singapore Pte. Ltd 22 Pandan Road, 1st. Floor Singapore T: E: IKMsubsea@IKM.com IKM Subsea Malaysia Sdn. Bhd 35J-2-9, KLSC, Jalan Wangsa Delima 5, Wangsa Maju, Kuala Lumpur, Malaysia T: E: IKMsubsea@IKM.com IKM Subsea Middle East FZE P1-ELOB, Office No E-09F-27 Hamriyah Free Zone Sharjah United Arab Emirates P.O. Box No T: E: IKMsubsea@IKM.com IKM Subsea UK Ltd Peregrine Road, Westhill Aberdeenshire, AB32 6JL, UK T: E: IKMsubseaUK@uk.IKM.com IKM Testing Malaysia Sdn. Bhd No. 6, Jalan P8 Perdana 8, Kawasan Perindustrian, Kg. Baru Balakong Seri Kembangan, Malaysia T: E: IKMtesting@my.IKM.com

13 ENGINEERING / OPERATIONS IKM Consultants AS Ljosheimvegen Sola, Norway T: E: IKMconsultants@IKM.no IKM dsc Engineering AS Dølasletta Tranby, Norway T: E: IKMdsc@IKM.no IKM Ocean Design AS Luramyrveien Sandnes, Norway T: E: IKModesi@IKM.no IKM Offshore Service AS Ljosheimvegen Sola, Norway T: E: IKMservice@IKM.no Dept. Oslo Lysaker Torg Lysaker, Norway T: E: IKMconsultants@IKM.no IKM Kran og Løfteteknikk AS Tankbåtvegen Tananger, Norway T: E: IKMkran@IKM.no Dept. Trondheim Gryta 2B 7010 Trondheim, Norway T: E: IKModesi@IKM.no IKM Operations AS Ljosheimvegen Sola, Norway T: E: IKMoperations@IKM.no IKM Consultants UK Ltd Peregrine Road, Westhill Aberdeenshire AB32 6JL, Scotland T: +44 (0) E: IKMconsultants@uk.IKM.com Dept. Sandnessjøen ASCO-basen, Horvnes 8803 Sandnessjøen, Norway T: E: IKMkran@IKM.no Dept. Oslo Lysaker Torg 35, pb Lysaker, Norway T: E: IKModesi@IKM.no IKM Tech Team Solutions AS Tankbåtvegen Tananger, Norway T: E: IKMtts@IKM.no FABRICATION / INSPECTION IKM HVAC AS Svanholmen Sandnes, Norway T: E: IKMhvac@IKM.no IKM Maskinering AS Breivikveien 17, Nordmarka 4120 Tau, Norway T: E: IKMmaskinering.Tau@IKM.no IKM Inspection AS Holmejordetveien 21A Pb. 68, 3291 Stavern, Norway T: Dept. Grimstad C/O Nymo Mekaniske Verksted AS Pb.113, 4891 Grimstad, Norway T: IKM HVAC Production Sp. z.o.o. ul. Sulimy Elblag, Poland T: E: IKMhvac@pl.IKM.com Dept. Sola Ljosheimvegen Sola, Norway T: E: IKMmaskinering.Sola@IKM.no Dept. Arendal Teknologiveien Arendal, Norway T: Avd. Kristiansand Lumberveien 51 B, Pb. 8048, Vågsbygd 4675 Kristiansand, Norway T: IKM Haaland AS Skogateigen Vigrestad, Norway T: E: IKMhaaland@IKM.no IKM Stainless Technology AS Bjorhaugslettå Nærbø, Norway T: E: IKMst@IKM.no Dept. Brevik Strømtangveien 11B 3950 Brevik, Norway T: Dept. Nærbø Bjorhaugslettå 9, 4365 Nærbø, Norway T: IKM Industrigravøren AS Fabrikkvegen Vigrestad, Norway Pb. 55, 4369 Vigrestad T: E: IKMindustrigravoren@IKM.no Dept. Drammen Ingeniør Rybergs gate Drammen, Norway T: Dept. Fredrikstad Evjeløkka 7, Pb. 631 Fredrikstad 1661 Rolvsøy, Norway T: Dept. Forus Forusbeen Sandnes, Norway T: Dept. Tønsberg Essoveien Tolvsrød, Norway T: RIG / DOWNHOLE SERVICES IKM Cleandrill AS Straume Teknologisenter Trollhaugmyra Straume, Norway T: E: IKMcleandrill@IKM.no IKM Cleandril Australia Pty. Ltd 33 Kewdale Road Welshpool WA 6106, Australia T: E: IKMcleandrill@au.IKM.com IKM Cleandrill UK Ltd Peregrine Road, Westhill Aberdeenshire, AB32 6JL, UK T: E: IKMcleandrill@IKM.no IKM Mooring Services AS Skvadronvegen Sola, Norway T: E: IKMmooringservices@IKM.no Dept. Supply Base Skipavika Terminal, Sandevegen 631, 5977 Ånneland, Norway T: E: IKMmooringservices@IKM.no IKM Pressure Control AS Forusbeen Sandnes, Norway T: E: IKMpressurecontrol@IKM.no IKM Production Technology AS Skvadronvegen Sola, Norway T: E: IKMpt@IKM.no IKM Production Technology Sdn. Bhd 35J-2-9, KLSC Jalan Wangsa Delima 5 Wangsa Maju, Kuala Lumpur, Malaysia T: E: IKMpt@IKM.no

14 Our focus is growth! Subsea / Mechanical Completion / Commissioning Electrical / Instrument / Automation Engineering / Operations Fabrication / Inspection Rig / Downhole Services Australia Brazil Canada Indonesia Korea Malaysia Norway Poland Singapore Thailand UAE UK USA

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