Magnora ASA

Investor Presentation • Feb 25, 2015

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 wich 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.

Sevan Marine

• Debt free cash in excess of USD 27 million
• Large unutilized tax losses in excess of NOK 3.5 billion
• Asset light and technology heavy no vessel ownership
• Strong partners Teekay and Technip
• Multiple applications FPSOs, FSOs, Drilling rigs, Accomodation units, FLNG
• A proven design delivering enhanced motion characteristics at competitive cost level

Floating Production

Other Applications

Investments

Financials

Outlook

Fourth Quarter Highlights

Q4 Highlights

Floating Production:

• High workload for Goliat, Western Isles and Logitel
• Number of studies for FSO, FPSO and Drilling
• Final Western Isles fixed license payment in Q4 Variable structure subject to production
• Notice from Skatt Sør (Norwegian tax authorities) Potential NOK 30 – 40 million cash impact in 2015

Topside and Process:

• Kanfa AS decline in project margins and loss provisions
• Kanfa Aragon costs for Houston (50% ownership)

EBITDA (USD Million)

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

After balance sheet date

• Kanfa AS awared USD 50 million EPC LOA for FPSO Yinson Production in Q1
• Arendal Spirit successfully delivered in Q1 2015 with USD 10 million payment expected in August 2015
• Several prospects postponed or delayed in Q1 2015
• Ordinary dividend suspended. Extraordinary dividend to be evaluated during year
• Cost reduction program started

Floating Production

Other Applications

Investments

Financials

Outlook

Floating Production (FPSO, FSO, FLNG)

Sevan's core technology

Sevan FPSOs: Ongoing projects

Field operator: ENI Location: Sub-arctic Barents Sea Hull size: Sevan 1000

Under transportation to Norway

Field operator: Dana Petroleum Location: North Sea, UK Hull size: Sevan 400

Under construction at the Cosco yard in China

Sevan FPSOs: Main prospects

• Continuing work on several studies and tenders for upcoming FPSO prospects, like the potential FPSOs for the Bream (Vette) and Penguin fields
• Several prospects have been postponed or delayed in 2015 due to the rapid decline in oil price and consequent reduction in investment levels

Sevan FSOs: Main prospects

• Continuing work on several studies and tenders for FSO prospects, like the potential FSOs for the Bentley and Culzean fields
• Some of these prospects have also met challenges due to the low oil price and general decline in market sentiment

Sevan FPSOs: Future FPSO opportunities

Sevan FLNG and Offloading concepts

Sevan FLNG Unit

• The concept has been developed on a generic basis as far as we want at this stage. Further development will be in connection with a concrete project
• Several oil companies and project developers have shown an interest in the solution

HiLoad LNG

• High focus on offloading in the industry from a safety perspective
• High interest from clients to explore HiLoad LNG as an alternative to the current side-byside offloading solutions
• Small study awarded

Floating Production

Other Applications

Investments

Financials

Outlook

Other Applications with Partners (Drilling, Accommodation)

Proven technology: Sevan designed Drilling Units

Sevan Driller	Sevan Brasil	Sevan Louisiana	Sevan Developer
Field operator: Petrobras Field: Pre-salt Brazil Building year: 2009 Design: Sevan 650	Field operator: Petrobras Field: Pre-salt Brazil Building year: 2012 Design: Sevan 650	Field operator: LLOG Location: US GoM Building year: 2013 Design: Sevan 650	Design: Sevan 650 Building year: 2013 /2014 Yard: Cosco Shipyard, China

Sevan MODU MKII and Sevan Arctic MODU

• Continued interest for an Ice version and a Harsh Environment version
• Potential for opportunistic projects based on the Sevan Technology

Proven technology: Sevan designed Accommodation Units

Three Accommodation Units – One delivered and two under construction

Six FAU Options with the Cosco Shipyard – one exercised

• The FAU 'Arendal Spirit' was delivered in February 2015 from the Cosco, Nantong yard to Teekay Offshore Partners
• Logitel Offshore has the option to build 5 more FAUs at the Cosco Shipyard

Logitel agreement structure

FAU #1	10 MUSD loan repayment due August 2015 8 – 10 MUSD variable compensation (license and interest) 3 – 4 MUSD engineering and site support revenue**
FAU # 2 & 3	2 x 10 MUSD loan repayment 10 – 12 MUSD variable compensation (license and interest) 4 – 8 MUSD engineering and site support revenue**
FAU 4 – 6 (not exercised to date)	3 x 10 MUSD loan repayment Estimated 30 MUSD in license fees, interest and services

* USD 10 million due 6 months after delivery from the yard

** Variable compensation due 12 months after acceptance of each unit by the charter party and subject to performance KPIs

*** Engineering and site support paid on an ongoing basis, estimated at approximately 3 – 4 MUSD per annum during construction

Floating Production

Other Applications

Investments

Financials

Outlook

Investments (KANFA, KANFA Aragon)

KANFA

• 60 employees
• A process technology company focusing on 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
• Involved in the execution and delivery of process equipment packages for projects like:
• Edvard Grieg
• Aasta Hansteen
• Nyhamna
• Martin Linge
• Ivar Aasen
• EPC LOA for FPSO Yinson Production. USD 50 million value over 15 months

LOA for EPC Contract – FPSO Yinson Production

• Estimated duration of 15 months with a contract value of approximately USD 50 million
• The FPSO 'Yinson Production' will be deployed at the recently sanctioned Offshore Cape Three Points Block (OCTP), located in the Tano Basin, around 60 km off the cost of Ghana. The OCTP Block is operated by ENI's subsidiary ENI Ghana and joint venture partners
• Scope of Supply includes the following 4 modules: M10 – MEG Regeneration Unit, Diesel, Subsea CI M12 – Produced Water Treatment, Sand Treatment M13 – Cooling Medium & Seawater Coarse Filter
• M14 Chemical Injection Package

KANFA Aragon

• 30 employees
• A process technology company focusing on FLNG as well as traditional gas processing
• Patented FLNG liquefaction process based on an optimized dual nitrogen expander cycle
• Traditional gas processing and gas conditioning (Gas compression, gas dehydration, CO2 and H2S removal and dew point control)
• Has designed the 2.4 mtpa topside for the Sevan FLNG concept
• Involved with the dehydration (TEG) and vapour gas recovery packages for the Aasta Hansteen project
• Involved in various FLNG Pre-FEED studies
• Established an engineering company in Houston, Texas together with five experienced engineering professionals in the Gas Processing and LNG Industry

Floating Production

Other Applications

Investments

Financials

Outlook

Financials

Q4 Net Result

• USD 17.0 million in non-cash charges during quarter
• − Write down of Kanfa Goodwill of USD 5.9 million
• − Write down of deferred tax asset of USD 8.0 million
• − NOK 3.5 billion in tax losses remain within Group
• − USD 3.1 million in unrealised foreign exchange losses

2014 Net Result (USD Million)

Q4 Cash Flow

• USD 3.4 million decline in cash in Q4
• − Negative working capital movement, largely Kanfa
• − Foreign exchange effect
• USD (13.9) million decline in cash during 2014
• − Negative results of topside and process segment. USD (10.0) million negative operating cash flow
• − Positive cash flow from floating production
• − Net divestment proceeds of USD 6.7 million
• − Dividend of USD (10.5) million
• USD 27.3 million in cash at end Q4

Page 24

• Piranema claim unresolved (USD 4.4 million provided for)
• Notice from Skatt Sør (Norwegian tax authorities)

Potential NOK 30 – 40 million cash impact in 2015

2014 Cash Flow (USD Million)

Note: See press release and Q4 2014 interim report dated February 24, 2015 for a more detailed description of the Q4 interim financial results.

Q4 2014 – Profit & Loss statement

Unaudited figures in USD million	Q4 14	Q3 14	Q4 13	Comment Q4 vs Q3
Operating revenue	25,2	25,2	31,2	Reduced revenue in Sevan from Dana license expiry offset by increase in Kanfa revenue
EBITDA	1,2	1,5	1,1	Kanfa AS loss provisions and less Sevan license income offset by foregoing of 2014 bonus
Operating profit	-4,8	1,4	0,9	Goodwill impairment charge of 5,9 million related to Kanfa AS
Net profit	-15,9	1,3	1,5	Write down of deferred tax asset of USD 8,0 million and USD 3,1 million in unrealised foreign exchange losses

Large impact of non-cash charges in the quarter

Page 25 Note: See press release and Q4 2014 interim report dated February 24, 2015 for a more detailed description of the Q4 interim financial results.

Q4 2014 – Balance Sheet

Page 26

Condensed Consolidated Balance Sheet

Unaudited figures in USD million	31.12.2014	30.09.2014	31.12.2013	Comment
Intangible assets	7	13	13	Goodwill KANFA
Deferred income tax assets	0	8	8
Loan	50	50	50	Loan to Logitel
Other non-current assets	10	9	14	Accrued Logitel license of USD 8.4 million
Total non-current assets	67	80	85
Trade and other receivables	51	54	39	USD 10 million of Logitel loan and USD 2.8 million in accrued interest classified as current asset
				Exchange rate and working capital
Cash and cash equivalents	27	31	41	movements
Total current assets	78	85	80
Total assets	145	164	165
Total equity	111	128	126
Total non-current liabilities	2	3	4
				USD 10 million Kanfa related. USD 4.4
Total current liabilities	31	34	35	million Piranema provision
Total liabilities	34	36	39
Total equity and liabilities	145	164	165
equity-% excl. minority interest	71 %	72 %	75 %

USD 27.3 million of available cash USD 71.2 million or roughly 50% of balance sheet related to Logitel transaction

Note: See press release and Q4 2014 interim report dated February 24, 2015 for a more detailed description of the Q4 interim financial results.

Floating Production

Other Applications

Investments

Financials

Outlook

Outlook

• The FPSO/FSO market
• − Despite the current low oil price environment and consequently delayed project sanctions, we remain positive with regards the FPSO/FSO market segment
• − Increased focus on cost effective solutions should be an advantage for Sevan
• The Sevan FLNG and HiLoad LNG Offloading solutions
• − This market segment is expected to be one of the fastest growing within LNG globally
• − Our concept, both for FLNG and Offloading, has been well received in the market
• The Floating Accommodation market
• − An important milestone was achieved by the delivery of 'Arendal Spirit'
• − Teekay's efforts in this area, through Logitel, is positive with respect to new units
• The Drilling market
• − The Drilling market is expected to remain challenging
• − We see continued interest for the Ice versions of our design as well as the possibility for someone to build a unit on speculative basis

Outlook

• The Topside Process Systems market
• − The co-operation with Technip with regards to KANFA is expected to open a larger market in terms of project size and geographic reach
• − The recent award of 4 process modules for the FPSO Yinson Production is a clear positive
• − The upcoming Johan Sverdrup project represents an opportunity for process equipment packages
• Comprehensive Cost Reduction Program
• − In reaction to the revised market outlook Sevan has initiated a comprehensive cost reduction program
• − The target will be to reduce fixed cost by USD 3 million per annum in Sevan
• Strategic Review
• − Also, in light of the changes in business environment, Sevan will start a strategic review with the objective to seek strong partners for the further growth strategy