Magnora ASA

Investor Presentation • May 25, 2016

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Important information

This presentation and its enclosures and appendices (hereinafter jointly referred to as the "presentation") have been prepared by Sevan Marine ASA ("Sevan" or the "Company") exclusively for information purposes. This presentation has not been reviewed or registered with any public authority or stock exchange. Recipients of this presentation may not reproduce, redistribute or pass on, in whole or in part, the presentation to any other person.

The contents of this presentation are not to be construed as legal, business, investment or tax advice. Each recipient should consult with its own legal, business, investment and tax adviser as to legal, business, investment and tax advice.

There may have been changes in matters which affect the company subsequent to the date of this presentation. Neither the issue nor delivery of this presentation shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of the company have not since changed, and the company does not intend, and does not assume any obligation, to update or correct any information included in this presentation.

This presentation includes and is based on, among other things, forward-looking information and statements. Such forward-looking information and statements are based on the current expectations, estimates and projections of Sevan or assumptions based on information available to the company. Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. Sevan cannot give any assurance as to the correctness of such information and statements.

An investment in the company should be considered as an high-risk investment, and several factors could cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in this presentation, including, among others, risks or uncertainties associated with the company's business, segments, development, management, financing, market acceptance and relations with customers, ability to implement cost reducing initiatives, the company's technology and offshore unit design, latent risks associated with divested businesses (including Teekay's / Logitel's ability to develop the accommodation business unit and repay the USD 60 million convertible loan in full), and, more generally, general economic and business conditions, including, but not limited to, within the oil and gas industry, changes in domestic and foreign laws and regulations, taxes, customs duties, vat or variations thereof, changes in competition and pricing environments, fluctuations in currency exchange rates and interest rates and other factors. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this document. The company does not intend, and does not assume any obligation, to update or correct the information included in this presentation.

This presentation does not constitute or form a part of, and should not be construed as, an offer or invitation to subscribe for or purchase any securities of the company. Neither this presentation nor anything contained herein shall form the basis of, or be relied on in connection with, any potential transaction referred to in this presentation. Any potential offer of securities of the company would be based on a prospectus prepared for that purpose.

This presentation is subject to Norwegian law, and any dispute arising in respect of this presentation is subject to the exclusive jurisdiction of Norwegian courts.

Proven designs – with unique benefits

Piranema Spirit Hummingbird Spirit Voyageur Spirit Goliat Western Isles

4 Drilling Units

Sevan Driller Sevan Brasil Sevan Louisiana Sevan Developer

Arendal Spirit Stavanger Spirit Nantong Spirit

Q1 - Highlights

• Continuing work on UK sector FPSO prospect
• Continuation of FLNG study with oil major for a specific field
• Increased interest from oil majors regarding the Sevan technology as well as HiLoad LNG
• Further model testing for GOM application with SCRs
• Further cost reductions implemented
• Topside and Process results significantly improved
• Strategic review ongoing

Floating Production (FPSO, FSO, FLNG)

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Sevan FPSO - Goliat

IMPORTANT MILESTONES Q1 16!

• First oil achieved!
• First offloading successfully performed!
• 70 MW electrification through a 105 km HVAC cable from shore!
• Continued support by Sevan Marine
• Potential regularity bonus

Sevan FPSO – Western Isles

• First oil planned for Q4 17
• Plateau production is expected to be around 40,000 boepd
• The estimated field life is 15 years
• Continued support from Sevan Marine
• Sevan Marine will receive 50 cents per produced barrel when in operation

Sevan FPSO – UK based oil major

• Sevan Marine entered into a license agreement for this prospect during Q4 2015. Payments under the license agreement remain subject to the field developers' final investment decision and start of construction of the unit, which is not expected before the second half of 2016
• Sevan Marine has been carrying out detail engineering for the hull under the service agreement entered into
• Currently in the process of discussing further support to the project for the next phases

Sevan FLNG – US based oil major

• Sevan Marine was last year awarded a feasibility study with an oil major to explore the use of Sevan Marine's cylindrical hull for a specific FLNG development
• Sevan Marine has now been awarded a follow up study focused on the marine aspects of Sevan Marine's unique cylindrical design.
• This study will continue until the end of 2016 and represents yet a further milestone in the development of Sevan Marine's FLNG concept

HiLoad LNG Regasification

• The first license and service agreement was signed in early January 2016 with Vires Energy Corporation ("Vires") to support their regasification project in the Philippines.
• Payment under the license agreement is subject to Vires constructing and operating the regasification terminal. Construction is currently expected to start in 2016

Other Applications (Drilling, Logitel)

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Proven technology – Sevan designed drilling units

• Units owned and operated by Sevan Drilling / Seadrill
• Sevan Marine has all technology and IP rights
• Sevan Marine has developed MKII and arctic design

Proven technology – Sevan designed Logitel units

• Units owned and operated by Teekay/Logitel
• Sevan Marine has all technology and IP rights
• Very positive feedback received regarding 'Arendal Spirit'

Investments (KANFA, KANFA Aragon)

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KANFA

• A process technology company focusing on delivering on an EPC basis process equipment packages and modules as well as studies and FEEDs together with Technip
• Traditional process equipment packages and modules include: Main Separation systems, Water Injection systems, Produced Water Treatment systems, Chemical Injection systems
• High activity in the quarter due to working on the USD 50 million Yinson OCTP project as well as the Chemical Injection Package for Johan Sverdrup. Package will be ready for delivery Q2 2016

OCTP Project

• All 4 modules loaded onto barge and being transported to the integration yard in Singapore
• Margin has not been recognized earlier for conservative reasons. However, as the project is now close to complete, a small margin has been recognized in Q1 2016.

KANFA Aragon

• A process technology company focusing on FLNG as well as traditional gas processing packages, also on an EPC basis
• Patented FLNG liquefaction process based on an optimized dual nitrogen expander cycle
• The ongoing study work for Singaporean based client has significantly improved the workload and the results for the quarter. This is expected to also be the case for the next quarter
• KANFA Aragon also managed a positive settlement of a historical project which further improved the results for the quarter
• Sevan Marine is undertaking a strategic review of its holding in KANFA Aragon AS which may result in a disposal or closer integration

Financials

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Q1 2016 Highlights

Floating Production:.

• Close to break even without one offs of USD 5.0 million related to Logitel and USD 2 million in restructuring
• USD 0.6 million recurring loss driven by workload

Topside and Process:

• Driven by OCTP initial margin. Project progressing well with more margin likely as project is completed over remainder of 2016
• High workload and historical settlement in KANFA Aragon

EBITDA (USD Million)

Q2 2015 Q3 2015 Q1 2015 Q4 2015 Q1 2016

Note: Topside and Process includes KANFA AS and KANFA Aragon which are fully consolidated. Sevan ownership is 51% in KANFA AS and 50% in KANFA Aragon

Q1 2016 Cash Flow

• USD 41.3 million in cash at end Q1 2016
• Majority of cash (USD 27.0 million) in floating production, USD 14.3 million in topside and process
• Positive cash flow driven solely by working capital in relation to OCTP project which will unwind in Q2/Q3
• Negative cash flow in floating production driven by the USD 3.5 million 2012 tax dispute which has been appealed

Cash Flow (USD Million)

Cost Reduction Highlights

• Headcount in Floating Production reduced from 121 to 86 during 2015. New target of 50 by year end. Group headcount has been reduced from over 200 to below 140 in the past 15 months
• Employee cost voluntary wage reductions of 10 to 50% for management. All staff in Sevan Marine have accepted a 7.5% salary reduction for remainder of 2016 and reduced working time over summer period. Further changes have also been made to simply and reduce the management team
• Legal cost Legal and other advisors costs substantially below 2015 although still high due to Logitel issue and 2012 tax dispute in particular
• Overhead cost The recurring cost base in Floating Production has been reduced by over USD 8m or over 40 percent since the end of 2014. The fixed cost base in Floating production is declining to as little as USD 11-12 million per annum

Sevan Marine Value Components

License Fee Potential

License fee

Outlook 2016

• Continue to work with ENI, DANA and UK FPSO project at or above forecasted level
• Secured backlog in relation to FLNG study with oil major
• Continued delay in other near term prospects (Bentley and the Far East Opportunity) means that achieving 2016 revenue targets will be challenging. Further cost reduction measures been kicked off, including across the board salary and working time reductions to counter decline to extent possible
• Recent re-negotiation of UK sector FPSO license fee has reduced potential gross license fee from USD 35 million to USD 27.5 million with impact only on last milestone payments not expected before 2020
• OCTP project progressing well which should provide for upside from KANFA in Q2/Q3 2016
• KANFA Aragon workload high and outcome of strategic review expected in Q2 2016
• Substantially increased interest from oil majors regarding Sevan Marine cylindrical design. This has materialized in some very small studies already. Hopeful that this will materialize into further study work during H2 2016. Likely to start out small

Q1 2016 – Profit & Loss statement

Unaudited figures in USD million	Q1 16	Q4 15	Comment
Operating revenue	21,0	27,2	Reduced activity in Q1 Floating Production (USD 0.7m). Reduced project progress in Topside and Process mainly from OCTP project (USD 5.5m).
EBITDA	-7,0	-3,0	Decrease in Floating Production (USD 4.9m) mainly due to impairment of Logitel variable fee of USD 5.0m. Increase Topside and Process performance (USD 0.9m) due to improved project performance and activity level.
Operating profit	-7,1	-3,1
Net profit	-8,1	-8,4	Impacted by impairment of USD 3.0m related to Logitel Loan

Close to breakeven excluding Logitel impairments of USD 8.0m Positive Topside and Process performance a key driver

Q1 2016 – Balance Sheet

Total liabilities	35	37
Total current liabilities	34	36	USD 11m in Floating Production and USD 23m in Topside and Process segment
Total non-current liabilities	1	1	USD 0.6m in Floating Production and USD 0.7m in Topside and Process segment
Total equity	42	50
Total assets	76	87
Total current assets	56	63
Cash and cash equivalents	41	37	USD 27m in Floating Production and USD 14m in Topside and Process segment
Trade and other receivables	15	27	USD 5m in Floating Production and USD 10m in Topside and Process segment. Impairment of USD 5m related to Logitel variable fee in Floating Production segment
Total non-current assets	20	23
Other non-current assets	6	6	Accrued Logitel variable fee of USD 5m
Loan	13	16	Logitel convertible loan estimated recoverable value, impairment of USD 3m
Intangible assets	1	1	Remaining amount related to software & rights
Unaudited figures in USD million	31.03.2016	31.12.2015	Comment

Q1 2016 – Segment Assets

Unaudited figures in USD million	FP	T&P	Q1 16	Comment
Non-current assets
Intangible assets	1	-	1	Largely IT, software and rights
Loan	13	-	13	Carrying value Logitel loan
Other non-current assets	6	0	6	USD 5m Logitel variable payment estimate
Total non-current assets	20	0	20
Trade and other receivables
Short term portion Logitel variable payment	-	-	-	USD 5m write down in Q1
Trade receivables	2	3	5
Project accruals	1	6	8	Mainly related to OCTP project in T&P
Prepaids	1	0	2
Other	0	1	1
Total trade and other receivables	5	10	15
Cash and cash equivalents
Total cash and cash equivalents	27	14	41
Total assets	52	25	76

Floating Production assets excludes NOK 3.5 billion in tax losses not recorded on balance sheet

Note: Excludes intra and intersegment assets

Q1 2016 – Segment Liabilities

Unaudited figures in USD million	FP	T&P	Q1 16	Comment
Non-current liabilities
Retirement benefit obligations	1	0	1
Deferred tax	-	0	0
Total non-current liabilities	1	1	1
Current liabilities
Debt to credit institutions	-	-	-
Trade creditors	1	6	7	Mainly related to OCTP project in T&P
Project accruals	0	14	14	Mainly related to OCTP project in T&P
Tax dispute 2012	1	-	1	Provision for remaining disputed tax 2012, interest and penalties.
Piranema fine	3	-	3
VAT & public duties	2	1	3
Employee related accruals	2	1	3
Other	1	1	2
Total current liabilities	11	23	34
Total liabilities	12	23	35

Largely driven by OCTP project in Topside and Process Segment

Note: Excludes intra and intersegment liabilities

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Big push towards lowering cost

		Sevan	Sevan	Sevan	Sevan	Sevan	Sevan
		300	400	650	850	1000	1400
Storage capacity	bbls	300 000	400 000	650 000	850 000	1 000 000	1 400 000
Hull Weight	(ton)	9 0 0 0	15 000	21 000	26 000	30 000	44 000
Typical Topside Weight ex process	(ton)	5 0 0 0	8 0 0 0	9 500	12 000	14 000	18 500
Typical Process Module weight (ton)		3 0 0 0	6 0 0 0	9 0 0 0	11 500	16 000	22 000
Typical Topside (all above tank (ton) top) weight		8 0 0 0	14 000	18 500	23 500	30 000	40 500
Typical lightship weight	(ton)	17 000	29 000	39 500	49 500	60 000	84 500
Main Deck Area	(m 2 )	3 4 5 1	4776	5 8 0 6	7 0 8 5	8 0 0 8	10 0 24
Process Deck Area	(m 2 )	3825	5 5 3 9	6 5 0 1	8 0 0 8	8820	10 967
Hull Diameter	(m)	60,0	70,0	78,0	86,0	92,0	102,0
Skirt Diameter	(m)	64,3	87,5	96,0	108,0	115,0	124,0
Main Deck Diameter	(m)	66,3	78,0	86,0	95,0	101,0	113,0
Process Deck Diameter	(m)	69,8	84,0	91,0	101,0	106,0	118,2
Main Deck El. (Hull depth)	(m)	27,0	32,0	36,0	39,0	42,0	46,0
Process Deck El.	(m)	32,0	38,0	41,0	45,0	47,0	52,0
Draft, Ballast	(m)	13,0	16,5	19,0	19,0	19,0	35,5
Draft, Loaded	(m)	19,0	22,0	25,0	27,0	28,0	23,5

• The industry is looking for new and innovative solutions
• The industry is looking for simplification and standardisation
• We firmly believe that an increased focus on cost effective solutions will be an advantage for Sevan Marine

Focus on environmental aspects

Gas to Wire Floating Power Plant developed with Siemens

CEPONG (Clean Electricity Production from Offshore Natural Gas) Ongoing project with SINTEF incl. Carbon capture and storage

Electrification 70 MW through a 105 km HVAC cable from shore

Fields in the Barents Sea 23rd Licensing round

Open Water Draft Ice Draft

Making progress in the Gulf of Mexico

• Under a program organized by the Research Partnership to Secure Energy for America (RPSEA), Doris Inc., the Offshore Technology Research Center (OTRC) at Texas A&M University and Sevan Marine have carried out further research and model scale testing of Sevan Marine's cylindrical hull for application in GOM ultra deep water
• Also in dialog with US regulatory bodies regarding non-disconnect FPSO

Making progress in the Gulf of Mexico

• The model tests at OTRC confirm the favorable motion characteristics of the Sevan Marine design enabling the application of with Steel Catenary Risers (SCR) and permanent mooring in even the harshest hurricane conditions.
• Several major oil companies attended the Industry Day held on Wednesday, May 11, 2016 further highlighting the keen interest which exists in the market for Sevan Marine's cylindrical design.

FPSO/FSO prospects

• The prospects pursued during the first quarter includes a FWPSO for Asian waters, a bridgelinked FSO for UK North Sea, gas FPU's in various areas as well 'standard' FPSO solutions
• Despite a generally weak market, we have received an increasing amount of inquiries in connection with early phase studies. Which we take as a signal that the downturn in the market is about to level off

Gas market - FLNG

• The oversupply of LNG that has developed over the past year has impacted ongoing FLNG contracts as well as several planned FLNG projects
• Sevan Marine is addressing the FLNG with a cost effective solution based on proven elements
• In dialog with several potential clients

HiLoad LNG - Offloading System

Parallel Loading System (PLS)

• This system utilizes the HiLoad LNG unit for station keeping and Technip's cryogenic flexible aerial pipes
• It enables a safe transfer of LNG to any conventional LNG Carriers with no modifications necessary

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HiLoad LNG – Offloading System

Arc Loading System (ALS)

• This system intends to use the HiLoad LNG unit for station keeping and Trelleborg's newly qualified 20"cryogenic floating hose
• It enables a safe transfer of LNG to any conventional LNG Carriers with no modifications necessary

HiLoad LNG - Regasification

HiLoad for Regasification

• Expected (high) growth in the LNG downstream market
• The HiLoad Floating Regasification Dock (FRD) offers a simple and cost effective solution for regasification of LNG
• In particular relevant for areas with underdeveloped power infrastructure

Extensive Technology Development Program

15 YEARS

15-years extensive technology development project and qualification. 130,000 man-hours (combined by HiLoad LNG AS and Remora) Full scale testing

7 MODEL TESTS

• 7 Model Test carried out:
• Docking
• DP Station Keeping
• 100-year survival
• Towing

FIELD OPERATION OF FIRST VESSEL

Field operation performed in Brazil.

Vessel owned and Operated by Teekay

FRD – The next generation FSRU…

No modifications required Floating Regas Dock w/Turret Mooring Flexible Riser to save installation cost

= The Complete LNG Logistics Solution

Storage | Regas | Distribution

Outlook

• The FPSO/FSO/FLNG market
• − Focus on cost effective solutions is an advantage and is leading to increased market interest
• − Study work for FLNG application very positive
• − Positive continuing progress on UK sector FPSO prospect
• − Increased interest and small initial studies expected

• The Topside Process Systems market

• − OCTP project progressing with equipment now being installed at yard, single digit USD margin likely in 2016
• − Chemical injection package for Johan Sverdrup field progressing well
• − Improved workload in Kanfa Aragon

• Cost Reduction Program

• − Over 20% further headcount reduction taken in Q1 2016
• − Reduced salary for 2016 and working time agreed for all Sevan Marine staff
• Strategic Review
• − Process continues and Sevan Marine is optimistic that the outcome will deliver enhanced shareholder value