Eidesvik Offshore — Investor Presentation 2019

Feb 27, 2019

Presentation 4th Quarter 2018

Oslo 27.02.2019 CEO Jan Fredrik Meling

Disclaimer

This presentation has been produced by Eidesvik Offshore ASA (the "Company") based on information which is publicly available. This presentation is for information purposes only. Further to the aforementioned, this presentation is the result of an effort of the Company to present certain information which the Company has deemed relevant in an accessible format. The presentation is not intended to contain an exhaustive overview of the Company's present or future financial condition and there are several other facts and circumstances relevant to the Company and its present and future financial condition that has not been included in the this presentation. No representation or warranty (express or implied) is made or intended to be made as to the accuracy or completeness of any or all of the information contained herein and it should not be relied upon as such. The recipient of this presentation acknowledges that it will be solely responsible for its own assessment of the information.

This presentation contains forward-looking statements. Such forward-looking statements give the Company's current expectations and projections relating to its financial condition, the market in which it operates and the future performance of the Company. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the Company's actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which it will operate in the future.

Neither the Company's nor any of its affiliates (nor any department in any of those entities), nor any such person's directors, officers, employees, advisors or representatives (collectively the "Representatives"), in any capacity, shall have any liability whatsoever arising directly or indirectly from the use of this presentation, including (but not limited to) as a result of any liability for errors, inaccuracies, omissions or misleading statements in this presentation.

News in 4th Quarter 2018

Eidesvik was awarded a contract for Viking Neptun for term work with Ocean Installer AS during two periods with commencement early 2020 and 2021 respectively.

The contract for "Viking Neptun" with Merkur Offshore was first extended to mid May, then further extended in February 2019 to ultimo June 2019 with further optional extensions.

News in 4th Quarter 2018

The contract with Siemens Gamesa for the charter of "Acergy Viking" was extended by one additional year and is now firm until end January 2021 with options until end April.

News in 4th Quarter 2018

Eidesvik entered into a contract with a CGG subsidiary for "Veritas Viking". The contract commenced ultimo November, and is firm for five months with further options.

News after 31.12.2018

Contract award with undisclosed client for "Viking Prince". Duration is approx. 3 to 5 months, with commencement spring 2019.

4 th Quarter 2018 results

(4th Quarter 2017)

Revenues	MNOK 145,0	(133,0)
EBITDA	MNOK 48,3	(33,3)
Operating profit	MNOK -14,3	(-158,9)
Pre-tax profit	MNOK -88,3	(-221,1)

(Q4 2017 Operating profit influenced by impairment of assets of MNOK 114,0)

Results 4 th Quarter 2018

(in million NOK)

Operating revenue Q4

EBITDA Q4

EBITDA Q4 2018 vs. Q4 2017 (MNOK 15,0):

Seismic: Increase of freight income of MNOK 17,3, increase in the total operating expenses of MNOK 3,2. Net increase in EBITDA of MNOK 14,1.

Subsea: Decrease of freight income of MNOK 10,4, decrease in the total operating expenses of MNOK 0,1. Net decrease in EBITDA of MNOK 10,3.

Supply: Increase of freight income of MNOK 5,2, increase of total operating expenses of MNOK 4,9. Net increase of MNOK 0,2.

Of other freight income and operating expenses is the change in EBITDA an increase of MNOK 11,0.

Results 2018 (in million NOK)

Operating revenue 2018

EBITDA 2018

EBITDA 2018 vs. 2017 (MNOK -288,4):

Seismic: Decrease of freight income of MNOK 45,0 and no termination fee of MNOK 138,2 in 2018, decrease in the total operating expenses of MNOK 5,8. Net decrease in EBITDA of MNOK 177,4.

Subsea: Decrease of freight income of MNOK 66,5 and no gain on sale of vessel of MNOK 17,2 in 2018, increase in the total operating expenses of MNOK 12,0. Net decrease in EBITDA of MNOK 95,6.

Supply: Increase of freight income of MNOK 3,8, increase of total operating expenses of MNOK 24,3. Net decrease of MNOK 20,6.

Of other freight income and operating expenses is the change in EBITDA an increase of MNOK 5,1.

EBIT 2018*

* Termination fee, gain on sale, impairments and one-off effects in Profit from JV are excluded (2018: MNOK 11, 2017: MNOK -165, 2016: MNOK 474)

Cash Flow (in million NOK)

	4th Quarter 2018	4th Quarter 2017	1.1-31.12.2018	1.1-31.12.2017
Net cashflow from operating activities	77,7	76,1	90,0	372,1
Net cashflow from investment activities Net cashflow from finance activities	(3,2) (49,1)	15,1 (84,3)	(38,9) (92,9)	401,4 (765,8)
Net changes in cash holdings	25,4	6,9	(41,8)	7,7
Cash at beginning of period Cash at end of period	490,2 515,6	550,5 557,4	557,4 515,6	549,7 557,4

Interest paid is categorized under financing activities, interest received is categorized under operating activities.

Balance (in million NOK)

Segments

Incl. Share of Joint Ventures (in million NOK)

4th Quarter 2018	Seismic	Subsea	Supply	Other
Revenue	76,7	73,1	49,0	4,2
EBITDA	56,4	30,6	8,9	-0,4
EBIT	14,5	3,4	-10,1	--0,7
EBITDA margin	74 %	42 %	18 %	N/A
EBIT margin	19 %	5 %	-21 %	N/A

4th Quarter 2017	Seismic	Subsea	Supply	Other
Revenue	48,7	84,2	43,9	4,4
EBITDA	29,8	42,7	8,6	-11,4
EBIT	-14,3	-18,7	-88,4	-11,7
EBITDA margin	61 %	51 %	20 %	N/A
EBIT margin	-29 %	22 %*	-26 %*	N/A

*Excl. impairment

Instalments Balloons

14

Contract Backlog 31.12.18

15

Contract coverage incl JV's 31.12.2018

Option Firm

Contract Status

Market

In the North Sea the PSV spot market has been challenging with a drop in utilization and rate levels under pressure during the last quarter of the year. The term market on the other hand has seen an increase in number of PSV fixtures and improved rate levels compared to the same period the previous year. The PSV segment still suffers from oversupply in all regions, however we are cautiously optimistic for the market outlook for large modern PSVs from the spring 2019 and onwards.

The trend with shorter project based contracts in the subsea and wind markets is expected to continue for the majority of 2019. Approaching 2020 however, we expect the market balance to support a movement towards more term contracts. We expect increased demand for SPS coded vessels driven by walk-to-work requirements in both O&G and the renewable market. Further, we have seen an increasing number of offshore projects being approved for development, in combination with an increasing number of projects reaching a late planning phase. These projects are expected to positively impact demand for subsea ships and ships serving the renewable wind market. Thus, we are positive medium- to long-term for the subsea and wind market.

For the second consecutive year seismic spending has increased year on year. Multi-client has already benefitted from this and there are signs of improved pricing momentum in contract seismic. We remain positive to the seismic market, in both medium and long term.

Thanks for Your attention!