Havila Shipping ASA

Investor Presentation • Jul 21, 2015

Highlights

• Havila Fortune extended for one year with Mærsk Olie og Gas
• New 2 years firm contract for Havila Crusader with Premier Oil UK
• Market has been challenging
• Spot
  • Low utilization
  • Low rates
• Agreements with charterers on existing contracts
• FX high influence on numbers
• Unrealized gains and losses
• Refinancing activities
• Work in progress

Summary of facts and figures Q2

	Freight income	396
	Total income	408
	EBITDA (adjusted)	191
	EBITDA margin	47 %

Utilization 90,3% Time charter fleet

Q2 15		Mill NOK	Q2 14		Mill NOK
	Freight income	396		Freight income	397
	Total income	408		Total income	402
	EBITDA (adjusted)	191		EBITDA (adjusted)	201
	EBITDA margin	47 %		EBITDA margin	50 %

Utilization 93,1% Time charter fleet

Summary of facts and figures YTD

	Freight income	796
	Total income	827
	EBITDA (adjusted)	379
	EBITDA margin	46 %

Utilization 91,0% Time charter fleet

	YTD 15	Mill NOK		YTD 14	Mill NOK
	Freight income	796		Freight income	768
	Total income	827		Total income	781
	EBITDA (adjusted)	379		EBITDA (adjusted)	379
	EBITDA margin	46 %		EBITDA margin	48 %

Utilization 93,2% Time charter fleet

Figures

Main figures

NOK mill		Q2 2015		Q1 2015		Q4 2014		Q3 2014		Q2 2014		Q1 2014
Income and gains	408,2		418,6		390.4		519.6		402.3		378.5
EBITDA (Adjusted)	191,2	46,8%	187,8	44,9%	217.9	55.8%	273.2	52.6%	200,6	49.9%	177.9	47.0%
Pre tax result	59,4	14,5%	- 60,6	- 14,5%	- 119.2	- 30.5%	92.6	17.8%	24.4	6.1%	41.8	11.0%

Q2: FX effects on P&L account:

Income increased by unrealized value change of forward contracts: MNOK 12 Financial expenses reduced by unrealized gains: MNOK 37

FX exchange rates

Weaker NOK: Gives unrealized FX losses but increases future income

FX effects increases both income and expenses

Q2: NOK strengthening against USD and weakening against EUR and GBP

Interest bearing debt

		NOK millions	Q2 15	Q1 15	Q4 14	Q3 14	Q2 14	Q1 14	Q4 13	Q3 13	Q2 13	Q1 13
		Long term debt	4 880	4 944	5 012	4 836	4 890	5 416	4 827	5 341	5 184	5 371
		Next year's instalments	876	991	899	1 106	1 104	652	1 106	698	923	730
		Short term debt	5 1	6 1	1 1
	3M NIBOR average	Total	5 8 0 7	5 9 9 7	5 9 2 2	5 9 4 2	5 9 9 4	6 0 6 8	5 9 3 3	6 0 3 8	6 1 0 7	6 1 0 1
0,05% - again	Interest rates turned up next will be down	Bank Deposit/Other interest-bearing assets	-326	-384	-357	-344	-351	-536	-407	-398	-441	-385
	Q1 13: 1.87%	Net	5 4 8 1	5 6 1 3	5 5 6 5	5 5 9 8	5 6 4 3	5 5 3 3	5 5 2 7	5 6 4 0	5 6 6 5	5 7 1 6
	Q2 13: 1.77%
 	Q3 13: 1.71% Q4 13: 1.67%
	Q1 14: 1.68%
	Q2 14: 1.79%	Stronger USD has increased Long term debt by MNOK 226 compared to initial
	Q3 14: 1.71%	amount.
	Q4 14: 1.61%	Q115: MNOK +78
	Q1 15: 1.38%	Q215: MNOK - 35
	Q2 15: 1,43%
				Q2 15 Q1 15	Q4 14	Q3 14	Q2 14	Q1 14	Q4 13 Q3 13	Q2 13	Q1 13	Q4 12

Existing Reconstruction FX effekts

Modern fleet

Value adjusted fleet age: 6 years, 10 month Market value

	Fleet value:	BNOK	8.0
	Not including Havila Troll
	Booked value
	Fleet value:	BNOK	7.4
	Excess value:	BNOK	0.6
	Long term financing
	Secured :	BNOK	4.8
	Unsecured:	BNOK	1.0
	Excess value	BNOK	2.2

Calculation date:		21.07.15
Years	Months	Weeks	Days
6	10	1	5

Fleet values 5% down

Quarterly income

Increase from Q2 14 caused by contracts and FX exchange rates

Quarterly vessel expenses

For 2014 and 2015 the HIRE numbers includes hire of equipment (external costs)

Operating profit from segments

AHTS: Spot market utilization and rates | PSV: Term contracts improvement | Subsea: FX

Contractual coverage

Fleet utilization

Down – but acceptable

2015: 85% firm / 86% options included 2016: 68% firm / 80% options included

Contract backlog

Backlog excluding options BNOK 3.5: Calculated on FX rates at end June

Key figures

15

Assets

Assets stable: BNOK 8.2 – operating vessels 90% of total assets

Equity and liability

Short term debt reduced

Summing up

Spot market Q3 15

Vessels

• AHTS
• Havila Venus
• Havila Jupiter
• Havila Neptune
• Havila Mars
• PSV
• Havila Crusader (out of spot)
• Market
• Challenging market

This is Havila Shipping ASA

• Head-office in Fosnavåg, Norway
• Offices in
  • Rio
  • Labuan
  • Aberdeen
• Partnership with POSH in Singapore
• A fleet of 27 vessels (+ one under management))
• 800 offshore staff
• 46 onshore
• Strong operating track record
• A qualified organisation focusing on human resources and solid seamanship

Segments	Current Fleet
PSV	14 + 1 (ext owner)
AHTS	9
SubSea	3
Rescue vessels	1

Largest shareholders

Shareholder	Address	Shares	Interest
Havila Holding AS	FOSNAVÅG	15 379 717	51,0 %
Odin Offshore	OSLO	2 551 378	8,5 %
Torghatten ASA	BRØNNØYSUND	1 223 100	4,1 %
Pareto Aksje Norge	OSLO	993 466	3,3 %
The Northern Trust Co.	Storbritannia	916 292	3,0 %
Pareto Aktiv	OSLO	684 804	2,3 %
Jeki Private Limited	Singapore	500 000	1,7 %
Carvallo International Ltd	Singapore	394 726	1,3 %
Morten Erga	KLEPPE	350 000	1,2 %
Pareto Verdi Vpf	OSLO	341 851	1,1 %
Spilka International AS	ÅLESUND	300 000	1,0 %
Pareto AS	OSLO	258 000	0,9 %
Hustadlitt AS	MOLDE	252 000	0,8 %
Arthur Sævik	FOSNAVÅG	215 809	0,7 %
Bakkely Invest AS	ULSTEINVIK	214 800	0,7 %
KS Artus	FOSNAVÅG	203 800	0,7 %
Pacific Carriers Ltd	Singapore	185 926	0,6 %
Bjørn Hetland	OSLO	172 800	0,6 %
MP Pensjon	OSLO	164 370	0,5 %
Olav Magne Tveitå	HORNNES	153 196	0,5 %
20 LARGEST		25 456 035	84,3 %
OTHER		4 723 564	15,7 %
Total number of shares		30 179 599	100,0 %

Summary

• Second quarter acceptable challenging market
• Focusing on keeping vessels working
• Firm contracts signed
• 2016 maturities
• Focus on balloons
• High contract coverage for 2015 and 2016
• Continuing low interest rate
• No capex / No new-builds
• www.havilashipping.no

Q3 / 2015

Will be released on 21st October 2015