Magnora ASA

Investor Presentation • Nov 19, 2014

Sevan Marine ASA Presentation of third quarter results 2014

Hotel Continental, Oslo, 19 November 2014 Presented by: Carl Lieungh, CEO Kjetil Vangsnes, CFO

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 UNIT BUSINESS AND REPAY THE MSUD 60 MILL. 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.

• Third quarter highlights

• Floating Production (FPSO, FSO, FLNG)
• Other Applications (Drilling, Accommodation)
• Investments (KANFA, KANFA Aragon)
• Financials
• Outlook

Highlights

• Still high activity within the FPSO/FSO market segment
• Prospecting related to several projects: Bream (Premier), Penguins (Shell), Sea Lion (Premier), Bentley (Xcite) and Culzean (Maersk)
• Significant market attention for the Sevan FLNG and HiLoad LNG Offloading solutions
• In discussions with several oil & gas majors and specific project developers for the application of the Sevan FLNG unit for projects worldwide
• Our offloading solution for LNG, HiLoad LNG, is being considered by a number of projects
• New Logitel agreements reduce risk and strengthen floating accommodation initiative
• The agreement has opened a new line of business within the accommodation market
• The agreement has reduced Sevan's risk exposure relative to Logitel. Down payment of MUSD 30 of the convertible loan was secured in the third quarter
• Weak quarter for Topside and Process Technology
• Start-up cost for KANFA Aragon's subsidiary in Houston, Texas
• This business development initiative is expected to significantly strengthen KANFA Aragon's market position in the US LNG and FLNG markets
• The margins on two process equipment packages have been reduced

4

Highlights cont'd

• Operations and financial position
• Operating revenue of USD 25.2 million was USD 2.2 million lower than last quarter.
• EBITDA was positive with USD 1.5 million, which is USD 0.3 million higher than previous quarter
• The Cash position was 30.7 USD million as of end September.
• The Company has high equity (72%) and no interest bearing debt
• Dividend policy

• The Board has communicated a strategic target of paying an annual dividend.

• Third quarter highlights

• Floating Production (FPSO, FSO, FLNG)
• Other Applications (Drilling, Accommodation)
• Investments (KANFA, KANFA Aragon)
• Financials
• Outlook

Sevan's core technology

Sevan FPSOs: Ongoing projects

Goliat

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

Under construction at the HHI yard in Korea

Western Isles

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

Under construction at the Cosco yard in China

Sevan FPSOs: Main prospects

Field operator: Premier Oil Location: North Sea, Norway Hull size: Sevan 650

FEED ongoing

Bream Penguins Sea Lion

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

Pre-FEED ph.2 completed FEED expected Q1 2015

Field operator : Premier Location: Falkland Islands Hull size: Sevan 1200/1400

Pre-FEED (FSO) FEED expected Q2

Sevan FPSOs: Other FPSO opportunities

SEVAN FDPSO

Concept study completed on a Sevan FDPSO.

SEVAN SCR FPSO FWPSO

Study proposal prepared for a non-disconnectable deepwater FPSO utilizing Steel Catenary Risers (SCR) in the Gulf of Mexico.

Study proposal prepared to explore the possibility of using dry-trees on a Sevan unit.

Sevan FSOs: Main prospects

Field operator : Xcite Location: North Sea, UK Hull size: Sevan 1000

Pre-FEED ongoing with Teekay FEED expected to start Q1 2015

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

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 a keen 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-by-side offloading solutions.

• Third quarter highlights

• Floating Production (FPSO, FSO, FLNG)
• Other Applications (Drilling, Accommodation)
• Investments (KANFA, KANFA Aragon)
• Financials
• Outlook

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

• Working on Mark II (second generation) drilling rigs
• The Mark II version also includes an Ice version and a Harsh Environment version

Proven technology: Sevan designed Accommodation Units

Six FAU Options with the Cosco Shipyard

• Teekay Offshore Partner has completed the acquisition of Logitel Offshore
• Logitel Offshore has the option to build 6 more FAUs at the Cosco Shipyard

• The first option was exercised in August 2014, with delivery Q3 2016

• Third quarter highlights

• Floating Production (FPSO, FSO, FLNG)
• Other Applications (Drilling, Accommodation)
• Investments (KANFA, KANFA Aragon)
• Financials
• Outlook

KANFA

A process technology company focusing on providing process equipment packages and modules as well as participating in studies and FEEDs together with Technip.

The co-operation with Technip is expected to provide new opportunities in the North Sea market (Norway and UK) as well as in the international oil & gas markets.

Traditional process equipment packages and modules includes: Main Separation systems, Water Injection systems, Produced Water Treatment systems, Chemical Injection systems Etc.

KANFA

• 60 employees
• Currently involved in the execution and delivery of process equipment packages for projects like Edvard Grieg, Piranema, Aasta Hansteen, Nyhamna, Martin Linge and Ivar Aasen
• High tendering activities

KANFA Aragon

A process technology company focusing on FLNG as well as traditional gas processes

• Patented FLNG liquefaction process based on an optimized dual nitrogen expander cycle
• Traditional gas processing and gas conditioning includes:
• ‒ Gas compression
• ‒ Gas dehydration, CO2 and H2S removal
• ‒ Dew point control
• ‒ Etc

KANFA Aragon

• Third quarter highlights
• Floating Production (FPSO, FSO, FLNG)
• Other Applications (Drilling, Accommodation)
• Investments (KANFA, KANFA Aragon)

• Financials

• Outlook

Q3 2014 – Profit & Loss statement

Unaudited figures in USD million	Q3 14	Q2 14	Q3 13	Comment Q3 vs Q2
Operating revenue	25,2	27,4	26,1	Reduced revenue in KANFA partly offset by increased revenue in Sevan
EBITDA	1,5	1,2	2,8	Reduced margin in KANFA compensated by increased revenue in Sevan
Operating profit	1,4	1,1	2,7
Net profit	1,3	1,4	4,5

Stable activity level (approximately MUSD 100 per year)

Q3 2014 – Balance Sheet

Unaudited figures in USD million	30.09.2014	30.06.2014	31.12.2014	30.09.2013	Comment
Intangible assets	13	13	13	13	Goodwill KANFA
Deferred income tax assets	8	8	8	8
Loan	50	60	60	51	Loan to Logitel
Other non-current assets	9	8	4	2
Total non-current assets	80	89	85	74
Trade and other receivables	54	39	41	32	MUSD 10 classified to current assets
Cash and cash equivalents	31	36	39	53	Cash tied up in projects (KANFA)
Total current assets	85	75	80	84
Total assets	164	163	165	158
Total equity	128	127	126	120	Paid out dividend MUSD 10.5 (NOK 1.2 per share) in Q2 14
Total non-current liabilities	3	3	4	5
Total current liabilities	34	33	35	33
Total liabilities	36	36	39	38
Total equity and liabilities	164	163	165	158
equity-% excl. minority interest	72 %	71 %	75 %	75 %

Asset light and high equity

• Third quarter highlights
• Floating Production (FPSO, FSO, FLNG)
• Other Applications (Drilling, Accommodation)
• Investments (KANFA, KANFA Aragon)
• Financials
• Outlook

Outlook

• Generally positive for the FPSO/FSO market segment
• High number of prospects in advanced phases (i.e. Pre-Feed, FEED) provides for cautious optimism regarding activity level in Sevan
• Increased focus on cost effective solutions should be an advantage for Sevan
• Significant market attention for the Sevan FLNG and HiLoad LNG Offloading solutions
• Studies expected in the short and medium term
• The drilling segment is expected to remain challenging in the short and medium term
• Teekay's entry into the FAU market is positive for Sevan
• Is likely to generate increased activity in the short and medium term
• The co-operation with Technip is expected to open a larger market for KANFA
• In terms of project size and geographic reach