Q4 Financial Presentation 2017 DOF ASA

Q4 Financial Presentation 2017 DOF ASA

Highlights Group 2

Highlights EBITDA Q4 MNOK 649 (excl hedge accounting) Refinancing completed in DOF and DOF Subsea: Private Placement and repair issue NOK 700 million Extended ownership in DOF Subsea Extension maturity DOFSUB07 Extension soft terms DOF Rederi and credit facility in DOF Average utilization fleet 76% in Q4 Skandi Darwin on-hire on a 5-year contract with Shell at the Prelude field in Australia NOK 5 billion in firm backlog for 2018 All numbers based on management reporting 3

Increased ownership in DOF Subsea at attractive terms In December, DOF ASA increased its ownership in DOF Subsea from 51% to 65% at attractive terms LT Chartering growth from 2x newbuilds with 8-year contracts Invested NOK 500 million of new equity at NOK 1.26 billion pre-money pricing, compared to book value of NOK 6 billion Increasing ownership by 14%-points at NOK ~4.5 billion discount to book EBITDA (excl. sales gains) NOK million 2000 1500 ~9 vessels in operation by Q1 19 DOF Subsea has a fleet of state-of-the-art subsea vessels and one of the world s largest owned fleets of work ROVs Long-term Chartering 9x high-end construction vessels (whereof 6 in JV with TechnipFMC), average remaining contract tenor ~5 years, 76% EBITDA margin in 2017 and NOK 12.4 billion in backlog at the end of the year Subsea IMR Projects 18x vessels, ~1 200 employees and NOK 3.7 billion in backlog at the end of the year DOF Subsea has an aggregate firm backlog of NOK 16.1 billion compared to net debt of NOK 11.8 million Capex NOK 1.9 billion next 18 months (two JV vessels with TechnipFMC with BNDES financing) 1000 500 0 2000 1500 1000 500 2012 2013 2014 2015 2016 2017 2019 Subsea IMR Projects bottom of the cycle EBITDA (excl. sales gains) NOK million 0 2012 2013 2014 2015 2016 2017 2019 4

DOF ASA, a global player Our vessels and subsea equipment Subsea 31 AHTS 20 PSV 16 Total fleet 67 ROV / AUV 71 23 billion backlog Approx 4 000 employees 67 vessels Positioned globally Head office in Norway Operating from 6 continents 20 offices near key O&G markets 67 vessels globally Total of 3,953 employees Subsea employees 1 214 Supply employees 2 739 5

DOF Group overview Contract backlog and debt Fleet Firm contracts: NOK 23 billion Options: NOK 33 billion Net debt**: NOK 20.5 billion Remaining capex: NOK ~1.9 billion **per 31.12.2017 Global organization Head office in Norway Regional offices in Australia, Singapore, UK, USA, Canada, Angola, Argentina and Brazil Group fleet of 67 vessels (including 2 JV newbuilds, 1 chartered-in vessel and 3 management vessels) Whereof 39 vessels owned by DOF Rederi and Norskan; 24 vessels are owned by DOF Subsea, 3 vessels under management Total market value of owned vessels in operation NOK ~ 32 billion based on ship broker valuations Average age fleet of 9.1 years (value adjusted average age of 6.1 years) Assets 67 vessels 71 ROVs 1 16 20 30 Subsea AHTS PSV Chartered Subsea Vessels Total 3 953 employees Subsea employees: 1 214 Marine personnel: 2 739 Backlog Firm contracts: NOK 23 billion Options: NOK 33 billion 6

NOK million Positioned to deliver Group backlog at 31.12.2017 Backlog DOF Supply / DOF Subsea at 31.12.2017 9 000 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 2018 2019 2020 2021 Thereafter Option 967 1 577 1 784 2 252 26 920 Firm 5 037 4 199 3 305 2 648 7 820 Total value backlog (firm & options) from 2020 and onwards is MNOK 42,789 (As per 31.12.2017) 7

DOF Supply Highlights Contracts New contracts in the Atlantic region Skandi Foula (PSV) awarded 2 month contract + option in the Black Sea Skandi Olympia (RSV) extended with Fugro until September 2018 Skandi Gamma (PSV) extended until March Skandi Iceman (AHTS) awarded 60 + 40 days in West-Africa securing work parts of the winter season Skandi Captain (PSV) awarded 1-year contract with Peterson, commencement in February 2018 New contracts in Brazil 265 days extension Skandi Admiral (AHTS) contract, from June 2018 New contract in the Asia Pacific Skandi Sotra (PSV) secured 75 days with Chevron in Australia Vessels sold Skandi Møgster (AHTS) built in 1998 sold in November Skandi Marstein (PSV) built in 1996, sold in December 8

DOF Subsea Highlights Contracts New contracts Skandi Darwin (Subsea) commenced its long-term IRM contract on the Shell Prelude FLNG facility in Australia in November Skandi Neptune (Subsea) and Skandi Constructor (Subsea) extended in the Atlantic region until the beginning of April Harvey Deep Sea (MPSV) and Skandi Achiever (DSV) secured 135 days for the provision of survey, ROV and vessel services in the Gulf of Mexico. Both vessel secured utilization in Q1 Skandi Hercules (AHTS/Subsea) and Skandi Singapore (DSV) secured utilization in Australia in Q1 2018 Skandi Niteroi ((PLSV) awarded 2-months contract with McDermott on the Atlanta Project for Queiroz Galvão with commencement in November Skandi Skansen s (AHTS/Subsea) contract with TechnipFMC extended and a new contract signed securing high utilization in the first four months of the year Skandi Salvador (Subsea) awarded short-time contract with Saipem in Brazil Two ROV contracts with Petrobras, to be installed onboard Skandi Angra and Skandi Paraty (AHTS) Extension two ROV contracts with Petrobras, installed on Skandi Iguacu and Skandi Urca (AHTS) 9

Two newbuildings remaining with 8-year contracts Co-owned 50/50 with TechnipFMC Vessel Yard Delivery Type Contract Financing Skandi Recife Vard Brazil Q2 2018 PLSV 8 years Petrobras Loan agreement signed with BNDES Skandi Olinda Vard Brazil Q1 2019 PLSV 8 years Petrobras Loan agreement signed with BNDES 10

Vessels added to the fleet Opportunities in a challenging market Agreement with the new owner for management and operation of three vessels. Options to purchase vessels at a price corresponding to the outstanding debt (approx. 50-60% of historical build costs). Skandi Hera Built: 2009 LOA: 93.8 m Crane: prepared for 250 t Bollard pull: 263 t Skandi Hera will give good exposure in both AHTS and Subsea markets. Skandi Darwin Built: 2012 LOA: 93.8 m Crane: 70 t Accommodation: 60 persons To be utilized for the Shell Prelude IMR contract in the Asia Pacific region. Skandi Bergen Built: 2010 LOA: 87.4 m Bollard pull: 250 t Skandi Bergen is a well-regarded vessel in the Asia Pacific region but can also be utilized in the South America or Atlantic regions. 11

Financials Management Reporting 12

DOF has tightened control of DOF Subsea and extended the runway 1) DOF ASA raised NOK 500 million of new equity in a private placement in November 2017 2) Increased ownership in DOF Subsea AS and refinanced bond debt Fully subscribed NOK 500 million DOF Subsea equity issue, increasing ownership from 51% to 65% Pre-money equity pricing of NOK 1.26 billion New equity coupled with extension of NOK 508 million bond (DOFSUB07) until Oct 2019 (NOK 100 million) and May 2020 (NOK 408 million) 3) Extended runway of DOF Rederi (the non-brazilian supply vessel part) Extension soft terms on NOK 3,8 bn facility until end of maturity in 2021, estimated cash impact of NOK 550 million 4) Extended runway of DOF Extension credit facility in holding until 2021 5) Subsequent offering of up to NOK 202 million completed in February 2018 DOF ASA is attractively positioned: 70% of EBITDA is from Subsea segment, with high contract coverage and upside from Subsea IRM projects 24% of EBITDA is from the Brazilian activity, long term contracts, local flag privileges and long-term funding from BNDES 6% of EBITDA is from the offshore supply vessel activity (PSV & AHTS outside Brazil) 13

Main Financial Highlights EBITDA Q4 MNOK 649 (excl hedge) Average utilization total fleet 76% in Q4 82% PSV segment 67% AHTS segment 80% Subsea segment (project fleet 75%) EBITDA ex Hedge Q4 2017 EBITDA ex Hedge Q4 2016 38% 45 % 62% 55 % DOF Supply DOF Supply DOF Subsea DOF Subsea Comments to highlights Performance DOF Subsea EBITDA: MNOK 402 DOF Supply EBITDA: MNOK 247 Operations Avg. utilization of DOF Subsea fleet: 78% Avg. utilization of DOF Supply fleet: 75% Five vessels in lay-up end December Reduced earnings and variable utilization in the North Sea spot market, stable utilization in Brazil, and variable utilization subsea IRM projects in the various regions All numbers based on management reporting DOF Supply is DOF Rederi and Norskan consolidated 14

Profit & Loss Q4 2017 All figures in NOK million Q4 2017 Q4 2016 2017 2016 Operating income 2 034 1 955 7 547 8 776 Operating expenses -1 379-1 319-5 076-5 745 Net profit/loss from TS and JV -10 5-15 -10 Net gain on sale of vessel 3 98 2 171 EBITDA before hedge 649 738 2 458 3 193 Hedge operating income -39-43 -171-207 Operating profit - EBITDA 610 695 2 287 2 986 Depreciation -285-304 -1 145-1 142 Impairment -340-413 -1 322-1 932 Operating profit- EBIT -15-21 -180-89 Financial income 9 29 51 1 116 Financial costs -321-337 -1 118-1 190 Net currency gain/loss -59-200 -227-483 Net profit/loss before unrealized currency -386-530 -1 474-646 Net unrealized currency gain/loss -215 20 299 800 Net unrealized gain/loss on market instr. -49-116 64 249 Profit/loss before tax -649-625 -1 111 403 Tax -203-89 -244-202 Net profit/loss -853-714 -1 355 201 According to management reporting Main events in Q4 Operational performance: PSV: Stable utilization spot fleet in the North Sea One vessel in lay-up by end Q4 AHTS: Stable earnings and utilization in Brazil Reduced earnings and utilization in spot fleet in the North Sea Low utilization in APAC Four vessels in lay-up by end Q4 Subsea: Variable utilization Subsea IRM fleet Improved activity in APAC and in North America Lower activity in the Atlantic and Brazil region Impairment represent a drop in values in the PSV and small-medium sized AHTS and Subsea fleet 15

Segment reporting Q4 2017 PSV AHTS Subsea Total Amounts in NOK million Q4 2017 Q4 2016 Q4 2017 Q4 2016 Q4 2017 Q4 2016 Q4 2017 Q4 2016 Operating income 204 210 366 431 1 425 1 271 1 995 1 912 Gain on sale of tangible assets 1 2 2 - - 96 3 98 Operating result before depreciation and impairment (EBITDA) 36 59 150 218 425 418 610 695 Depreciation 29 41 64 68 192 196 285 304 Impairment 160 143 97 91 83 179 340 413 Operating result (EBIT) -154-123 -11 59 150 44-15 -21 EBITDA margin 17 % 28 % 41 % 50 % 30 % 33 % 31 % 36 % EBIT margin -75 % -59 % -3 % 14 % 11 % 3 % -1 % -1 % According to management reporting EBITDA Q4 2017 EBITDA Q4 2016 70 % 6 % 24 % 60 % 9 % 31 % PSV AHTS Subsea PSV AHTS Subsea 16

Balance as of 31.12.2017 Amounts in NOK million 31.12.2017 31.12.2016 ASSETS Tangible assets 25 793 27 469 Goodwill 324 330 Deferred taxes 779 1 023 Investment in associated and joint ventures 71 70 Other non-current receivables 635 619 Non-current assets 27 604 29 511 Receivables 2 165 2 243 Cash and cash equivalents 2 434 2 370 Current assets 4 599 4 614 Total assets 32 203 34 125 EQUITY AND LIABILITIES Subscripted equity 3 393 2 675 Retained equity 1 444 1 950 Non-controlling equity 2 505 3 521 Equity 7 342 8 146 Non-current interest bearing debt 20 596 21 901 Other non-current liabilities 173 222 Non-current liabilities 20 769 22 123 Current part of interest bearing debt 2 558 2 081 Other current liabilities 1 534 1 775 Current liabilities 4 092 3 856 Total equity and liabilities 32 203 34 125 According to management reporting Main events balance sheet YTD Non current assets: Two newbuilds delivered and on-hire firm contracts YTD Three vessels sold two in Q4 Current assets: Operating cash flow MNOK 1,150 Investments MNOK -1,292 Financing activity MNOK 218 Equity: Convertible bond loan MNOK 275 by end Q4 Non current liabilities: Two new loans drawn upon delivery newbuild DOFSUB08, USD 175 million, drawn in February Extension DOFSUB07 until 2019/2020 Current liabilities: Short term IBD: Amortisation MNOK 1,979 (next 12 months) Credit facilities and accrued interests No balloons before 2019 17

DOF Group is reducing net debt quarter by quarter NOK million 13 000 12 500 12 000 11 500 11 000 10 500 10 000 9 500 DOF Supply has reduced net debt from NOK 9.6 billion post the 2016- restructuring, to 8.9 billion DOF Subsea has reduced net debt from NOK 12.0 billion Q3 16 to Q4 17 NOK 11.6 billion 9 000 8 500 8 000 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 DOF Supply DOF Subsea (ex deliveries) DOF Subsea newbuilds w/contract All numbers based on management reporting DOF Supply is DOF Rederi and Norskan consolidated 18

DOF Subsea 19

DOF Subsea has two business segments DOF Subsea Group Subsea IMR Projects Long-term Chartering 1) Framework agreements Engineering capabilities Opex spending Long-term charters Vessel capabilities Capex spending Revenues 2017 2) EBITDA 2017 3) Firm backlog 4) Revenues 2017 2) EBITDA 2017 3) Firm backlog 4) NOK 3 127 million NOK 323 million NOK 3.7bn NOK 1 423 million NOK 1 084 million NOK 12.4bn ~10% margin* ~76% margin 1 214 Employees Q4 17 18 vessels in operation 5) Q4 17 7 vessels in operation Q4 17 2 newbuilds Q4 17 * Reduced EBITDA margin due to one-off events in North America and APAC 1) Note: Long-term Chartering comprises 5 PLSVs in operation, 2 PLSVs under construction, Skandi Acergy and Skandi Patagonia 4) Note: Firm backlog as at end of Q4 17 20 2) Note: According to management reporting 3) Note: According to management reporting 5) Note: Including 3 chartered-in vessels

DOF Subsea Long-term chartering fleet provides solid backlog Subsea vessel Built year Current client Firm end Option end ~5 years Average contract coverage NOK 0.8bn and 1.0bn EBITDA contribution in 2016 and 2017 6 and 7 Operational vessels end of 2016 1) and 2017 2) 9 Vessels in operation from Q1 19 1) Note: Skandi Acu delivered August 2016 2) Note: Skandi Buzios delivered April 2017 21

DOF Subsea Significant upside potential from Subsea IMR Projects Strong influx of new contracts commencement of 3 long-term contracts and framework agreements in 2017 Gaining market share and reputation in core offshore regions a key enabler for access to new project opportunities Increasing opportunities for repeatable revenue related to additional project scope under existing contracts IMR market expected to grow due to aging subsea infrastructure and low spending during recent market downturn Leverage significant access to highly-skilled subsea personnel in order to position for expected market upturn in 2018/2019 EBITDA (excl. sales gains) NOK million 2000 1500 Commencement in 2017 1000 500 0 2012 2013 2014 2015 2016 2017 2019 22

NOK billion DOF Subsea Maintained strong backlog Current backlog at 2014 levels Book-to-bill of ~1.0x from 2014-2016 45 40 35 30 25 20 15 10 5 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 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 EBITDAmargin 23

Outlook Actuals in line with guidance for 2017 (MNOK 2 400 MNOK 2 800) Firm backlog of NOK 5 billion in 2018 The refinancing completed in February has extended the Group s runway to sustain a continuing challenging markets The two remaining newbuild to be delivered in 2018 and 2019 are committed on firm contracts Increased tendering activity and signs of higher activity within some regions and segments. Still uncertainty on where the market is heading. High uncertainty to guide for 2018, best estimate today is an operational EBITDA of MNOK 2 400 MNOK 2 800 24

Presented by Mons Aase Hilde Drønen Thank you - CEO - CFO

DISCLAIMER This presentation by DOF ASA designed to provide a high level overview of aspects of the operations of the DOF ASA Group. The material set out in the presentation is current as at 23 February 2018. This presentation contains forward-looking statements relating to operations of the DOF ASA Group that are based on management s own current expectations, estimates and projections about matters relevant to DOF ASA s future financial performance. Words such as likely, aims, looking forward, potential, anticipates, expects, predicts, plans, targets, believes and estimates and similar expressions are intended to identify forward-looking statements. References in the presentation to assumptions, estimates and outcomes and forward-looking statements about assumptions, estimates and outcomes, which are based on internal business data and external sources, are uncertain given the nature of the industry, business risks, and other factors. Also, they may be affected by internal and external factors that may have a material effect on future business performance and results. No assurance or guarantee is, or should be taken to be, given in relation to the future business performance or results of the DOF ASA Group or the likelihood that the assumptions, estimates or outcomes will be achieved. While management has taken every effort to ensure the accuracy of the material in the presentation, the presentation is provided for information only. DOF ASA, its officers and management exclude and disclaim any liability in respect of anything done in reliance on the presentation. All forward-looking statements made in this presentation are based on information presently available to management and DOF ASA assumes no obligation to update any forward looking- statements. Nothing in this presentation constitutes investment advice and this presentation shall not constitute an offer to sell or the solicitation of any offer to buy any securities or otherwise engage in any investment activity. You should make your own enquiries and take your own advice (including financial and legal advice) before making an investment in the company's shares or in making a decision to hold or sell your shares. 26