Bonheur ASA — Earnings Release 2018

Jul 13, 2018

2 quarter 2018 Board Meeting 12 July 2018

Highlights 2Q 2018

Bonheur ASA Group of companies

100%Fred. Olsen Renewables AS

• EBITDA NOK 165 mill. (NOK 164 mill.)
• Total generation down 1.4%
• «Like for like» generation down 15%
• Increasing electricity prices in all markets
• Transaction with Aviva and corresponding finance agreements closed in 2Q, total proceeds of NOK 1 966 million

Fred. Olsen Ocean Ltd.100%51.9% Fred. Olsen Energy ASA

• EBITDA NOK 64 mill. (NOK 139 mill.)
• Utilization for installation vessels 69% (100%)
• Contract pipeline into end 2Q 2020 covered by 27 % firm contracts
• Brave Tern with craneextension in 2Q18
• GWS aquired Offshore wind activities from Total Wind

Offshore drilling

• EBITDA NOK -414 mill. (NOK 240 mill.)
• Blackford Dolphin successfully reactivated
• Waiver period with creditors has expired

• The company has resolved to stop its service of interest and amortizations to itsfinancial creditors

• EBITDA NOK 123 mill. (NOK 139 mill.)

• Net ticket income per diems unchanged
• Passenger days increased with 4 %
• 6% strengthening of GBP/USD
• River Cruise vessel Brabant in operation from April

Consolidated summary

Bonheur ASA Group of companies

( N O K i l l io ) m n	2 Q 1 8	2 Q 1 7	C ha in ng e N O K
R e v e nu e s	1 8 0 0	2 0 3 6	2 3 6 -
E B I T D A	-6 4	6 9 5	9 7 5 -
D i i t e p r e c a o n	-6 8 4	1 3 7 -	2 9
I i t m p a r m e n	8 7 5 -	6 3 5 -	1 0 5 -
E B I T	-1 3 3 5	6 2 5 -	8 8 1 -
f f N i d l i t t t e n a n c e a n r e s r o m a s s o c a e s u	1 5 7 -	6 5 -	9 2 -
E B T	1 6 9 0 -	7 1 7 -	9 7 3 -
N l t t e r e s u	-1 7 0 1	8 1 2 -	8 8 9 -
S f *) h h l d h t t a r e o e r s o e p a r e n c o m p a ny	8 5 9 -	3 2 5 -	5 3 4 -
Ea ing ha ( N O K ) rn s p er s re	-2 0. 2	7. 6 -	1 2. 5 -
Ne in be ing de b ( N I B D ) t ter t t es ar	5 8 1 7	6 6 3 6	8 1 9 -
Eq i io ty t u ra	3 4 %	3 9 %

*) The non-controlling interests mainly consist of 47.74% of Fred.Olsen Energy ASA, 44.06% of NHST Media Group AS and 49% in Fred. Olsen Wind Limited (UK) and 49% of Fred. Olsen CBH Limited (FOCBH) (UK).

Segment analysis – Revenues

Bonheur ASA Group of companies

( N O K i l l io ) m n	Q 2 1 8	Q 2 1 7	C h a n g e
R b l e n e w a e e n e r g y	2 9 1	2 3 5	3 9
S h i i / O f f h i d p p n g s o r e w n	4 1 1	4 0 1	9
O f f h d i l l i s o r e r n g	1 3 8	4 6 6	3 2 8 -
C i r s e u	6 1 7	5 7 4	4 3
O h t e r	3 4 3	3 4 2	0
T l R t o a e e n e s v u	1 8 0 0	2 0 3 6	2 3 6 -
N O K / E U R ( ) a v e r a g e	9 5 5	9 3 7	2 0 %
O / G ( ) N K B P a e r a g e v	1 0 9 1	1 0 8 9	0 1 %
G B P / U S D ( ) a v e r a g e	1 3 6	1 2 8	6 4 %

Segment analysis – EBITDA

Bonheur ASA Group of companies

( N O K i l l i ) m o n	2 Q 1 8	2 Q 1 7	C h a n g e
R b l e n e a e e n e r g w y	1 6 5	1 6 4	1
S / O h i i f f h i d p p n g s o r e w n	6 4	1 3 9	7 5 -
O f f h d i l l i s o r e r n g	4 1 4 -	2 4 0	6 5 5 -
C i r s e u	1 2 3	1 3 9	1 6 -
O h t e r	2 -	1 2	1 4 -
T l E B I T D A t o a	6 4 -	6 9 5	9 7 5 -

Cash, Debt and Guarantees as per 2Q 18

Bonheur ASA Group of companies

( i l l i ) N O K m o n	h C a s	l E t x e r n a d b t e	h f O W B N e r e o d t g u a r a n e e
( ) * b l d R F O W L F O C B H e n e a e e n e r a n w g y	7 7 4	4 1 5 0	3 4
( ) b l l. d R F O W L F O C B H e n e w a e e n e r g y e x c a n	2 9 8 6	6 9 1	0
/ h f f h d ( ) S i i O i O O F p p n g s o r e w n	3 1 5	9 7 7	9 7 5
( ) C i F O C L r u s e	6 9 3	0	‐
h ( ) A S A B t o n e u r p a r e n c o m p a n y	2 4 2 2	2 4 3 5	‐
( ) l. d S F O W L F O C B H u m e x c a n	6 2 5 4	3 9 0 5	7 5 9

• Net cash position excl. FOWL , FOCBH and Offshore drilling at NOK 2 349 million.
• Guarantees relate to bank financing in Shipping / Offshore wind and minor leases withinRenewable energy.
• BON ASA parent company debt consist of unsecured bond loans.

*) Ring fenced in a joint venture of Fred. Olsen Wind Limited (FOWL) with The Renewables Infrastructure Group Ltd. and Fred. Olsen CBH Limited (FOCBH) with Aviva Investors Global Services Ltd.

**) Guarantee (NOK 25 million) related to potential claims regarding Koksa Eiendom AS

Note: Offshore drilling (FOE) is separately listed on OSE, thus excluded from table above. No guarantees from BON.

Capex per segment

Bonheur ASA Group of companies

Capex 2Q 18 mainly consist of:

• NOK 32 million related to crane extension of Brave Tern.
• NOK100 million related to Offshore drilling, whereof the major part is related to reactiviation of BlackfordDolphin

Equity split of portfolio investments as at 30 June 2018

Bonheur ASA Group of companies

• Majority of portfolio investments are within theRenewable energy and Shipping /Offshore wind segment (70%)
• Green footprint has increased over recent years

Book Equity for Cruise, Shipping / Offshore wind, Renewable energy and Other subsidiaries as per 30 June 2018 For Offshore drilling, equity = BON's 51.9% share of Fred. Olsen Energy's market capitalization as per 30 June 2018

Electricity prices UK

• 78% of generation capacity located in the UK.
• Revenues in UK mostly determined by electricity prices and support regime (ROC).
• All UK wind farms receive ROCs for first 20 years of operation.
• Elctricity prices in the UK increased year on year with 32%

Key financials

• Seasonal generation pattern (1Q and 4Q higher, 2Q an 3Q lower)
• Rolling 12 months EBITDA increasing
• Power prices (per MWh) in UK, Norway and Sweden were on average £53 (£40), €38.7 (€27) and €38.5 (€29), respectively, in the quarter

Business Model and Project Portfolio

Site Investigation	Development	Consented	Construction	Operation
Scotland Norway Sweden France	Scotland - 100-180 MW Crystal Rig extension Rothes extension Paul's Hill extension Brockloch Rig III (formerly Windy Standard III) Fetteresso Norway - 200-400 MW Portfolio Ireland - 500 MW Codling II - 500 MW offshore (50% owned; total 1000 MW) France - 200-250 MW Portfolio (51% owned of total 400- 500 MW) USA Icebreaker - 20.7 MW offshore (Lake Erie)	Ireland Codling Bank - 500 MW offshore (50% owned; total 1000 MW) Norway Gilja - 135 MW Gismarvik 9 MW (60% owned of total 15 MW) Sweden Högaliden 105 MW Verkanliden 90 MW FORSCA-projects 373 MW		Scotland Crystal Rig - 62.5 MW Crystal Rig II - 138.0 MW Rothes - 50.6 MW Rothes $II - 41.4$ MW Paul's Hill - 64.4 MW Mid $Hill - 75.9$ MW Crystal Rig III - 13.8 MW Brockloch Rig Windfarm (formerly Windy Standard II) - 61.5 MW Brockloch Rig 1 - 21.6 MW Norway $Lista - 71.3$ MW Sweden Fäbodliden - 78 MW
Total portfolio Onshore portfolio	1020 - 1350 MW $500 - 830$ MW	1 212 MW 712 MW	0 MW 0 MW	679 MW 679 MW

• Growth industry, growth market
• Installed 15.8 GW as per 2017
• Forecasted to increase to 70.2 GW as per 2030

Shipping / Offshore wind

Shipping / Offshore wind (Fred. Olsen Ocean)

Key financials

Fred. Olsen Windcarrier AS Universal Foundation A/S Global Wind Services A/S

Two modern transport and installation vessels (T&I) and seven crew transfer vessels Providing the innovative Mono Bucket Foundation Leading installation company with ~900 employees ¹⁴

Events in the quarter:

• GWS aquired offshore wind activities from Total Wind with 200 employees
• Brave Tern with crane extension in 2Q18
• Universal Foundation reached Certified Design for Deutsche Bucht
• Transition of CTV's to pool arrangement with Northern Offshore Services
• Utilization for installation vessels 69% (100%)
• Contract pipeline into end 2Q 2020 covered by 27 % firm contracts

Offshore drilling

Offshore drilling

Dayrates- worldwide

Offshore drilling

Key financials

F l t e e o v e r v	i e w
i U t n	2 0 1 7	2 0 1 8	( O ) F ig in N K i l l ion ure s m	Q 2 1 8	Q 2 1 7
			Op ing t er a re ve nu es	1 3 8	4 6 6
B l t t o e e	A d k n a a r o		E B I T D A	4 1 4 -	2 4 0
f B l k d a c o r	Sm C ke d h t s ta ar c e r o n v	B P	Ne l f t r t a te ta es u r x	1 6 4 7 -	1 0 4 6 -
B i d f d e o r	S i l t t S i l t t a o a o		Ca p ex	1 0 0	1 6
B l d o r g a n	Sm ke d t s ta ar c		Eq i ty u	2 8 1 3	5 9 0 1
B d f d r e o r	Pr d d in ine d ta es er ve an ma		Gr in be ing de b te t t os s res ar	6 0 1 3	3 4 9 7
			Ca h a d h e iva len ts s n ca s q u -	1 5 7 2	2 9 5 1
Sm ke d t s ta B f d ar c y o r		( ) Ne in be ing de b N I B D t te t t res ar =	4 4 4 2	4 3 9 8
f B l d e o r	Pr d d in ine d ta es er ve an ma		Ca i l e loy d ( Eq i N I B D ) ta ty p m p e u +	7 2 5 4	1 0 2 9 9
	Firm Te rmi ed for ntra ct nat co co nve	nie . Te rmi ion fe f U SD mi llion nat 96 nce e o
	Op tion

Capitalization and financing as per 2Q 18

• Market cap. NOK 606 mill.
• Covenant waiver expired 30.06.2018
• The company has resolved to stop its service of interest and amortizations to its financial creditors

Cruise

Cruise

Key financials

• Passenger days were 285 940 in the quarter (274 436), an increase of 4%.
• Net Ticket Income per passenger day was GBP 148.1 in the quarter (GBP 147.9)
• GBP/USD strengthened with 6% compared to 2Q18
• River cruise vessel Brabant in operation from April

( l lio ) Fig i n NO K m i ur es n	2 Q 1 8	2 Q 1 7
O in t p er a g re ve nu es	6 1 7	5 7 4
E B I T D A	1 2 3	1 3 9
E B I T D A in m ar g	2 0 %	2 4 %
l f Ne t t a te ta r es u r x	7 8	5 5
Ca p ex	1	1 3
i Eq ty u	1 1 1 5	8 3 1 1
be de b Gr in in te t t os s re s ar g	0	0
h d h le Ca iv ts s an ca s eq u a n ‐	6 9 3	7 7 2
be de b ( ) Ne in in N I B D t te t t re s ar g =	‐6 9 3	‐7 7 2
( ) i l e lo d i Ca Eq N I B D ta ty + p m p y e u	4 2 2	4 1 2

Highlights 2Q 2018

Bonheur ASA Group of companies

100%Fred. Olsen Renewables AS

• EBITDA NOK 165 mill. (NOK 164 mill.)
• Total generation down 1.4%
• «Like for like» generation down 15%
• Increasing electricity prices in all markets
• Transaction with Aviva and corresponding finance agreements closed in 2Q, total proceeds of NOK 1 966 million

Fred. Olsen Ocean Ltd.100%51.9% Fred. Olsen Energy ASA

• EBITDA NOK 64 mill. (NOK 139 mill.)
• Utilization for installation vessels 69% (100%)
• Contract pipeline into end 2Q 2020 covered by 27 % firm contracts
• Brave Tern with craneextension in 2Q18
• GWS aquired Offshore wind activities from Total Wind

Offshore drilling

• EBITDA NOK -414 mill. (NOK 240 mill.)
• Blackford Dolphin successfully reactivated
• Waiver period with creditors has expired

• The company has resolved to stop its service of interest and amortizations to itsfinancial creditors

• EBITDA NOK 123 mill. (NOK 139 mill.)

• Net ticket income per diems unchanged
• Passenger days increased with 4 %
• 6% strengthening of GBP/USD
• River Cruise vessel Brabant in operation from April

Figures in paranthesis 2Q17