Eqva ASA

Investor Presentation • Nov 21, 2014

Presentation Q3 201421.11.14Geir Johan BakkeCEO

Agenda

• Headlines/ milestones Q3
• Outlook
• Main figures
• Detailed figures
• HES/ QA
• Questions

Headlines/Milestones Q3

• Delivery of newbuild no. 120, an Havyard 832 Wave Edition with new bow design and twin skeg for increased stability
• The design delivers up to all expectations, and this is an important milestone for extensive R&D investments in the Havyard Group
• A breakthrough contract for delivery of design and equipment packages of four Havyard 843 AHTS to the Brazilian shipping company and ship yard group Grupo CBO
• First contract in Brazil for Havyard
• EBIT-margin of 3,0 % in Q3 and 3.5 % for first three quarters of 2014
• Adjusted for IPO cost, the EBIT-margin is 4.4 %
• Design and production of prototype vessels in offshore, fishing vessel and live-fish carrier market
• Lower margins to introduce the designs to the markets
• A part of a diversification strategy to increase the Groups long term competitiveness
• The EBIT-margin are still negatively influenced by the fish and live fish-carrier segments
• Substantial start-up challenges in the live fish-carrier segment
• Havyard have confidence that the fish and live fish-carrier segments will have a positive development and profitability going forward, and this is still a priority area of the Group

Outlook

• Positive market outlook for subsea, windmill service and arctic vessels
• Diversified customer base, both geographically and on different segments
• Strong foothold in diversified markets
• Nigerian offshore market
• Windmill support
• Arctic
• Control of orders and production for the fishing and aquaculture market is still key for short term performance
• Quarterly dividends of 50-75 % of the earnings as stated in dividend policy

Main Figures

	2014 YTD	2013 YTD 2014 Q3		2013 03	2013
Operating revenue	1673	1507	548	491	1987
EBITDA	76	181	22	51	199
EBIT	591	168	16	46	181
EBIT-margin	3.5 %	11.1%	3.0%	9.4%	9.1%
Profit before tax	60	173	17	49	190
Earnings per share	1.90	5.68	0.63	1.60	6.13
NIBD	64	86	64	86	8
Working Capital	164	193	164	193	102

• •Order backlog of approx. 2 100 million
• •Secures capacity utilization for the coming periods
• • Contract of approx. 1 000 million for 2 x Havyard 843 ICE AHTS in Nov 14
• •Not included in backlog 2014 Q3

DetailedFigures

• Delivered
• Live fish carrier, NB 117
• Rebuild of HavilaPhoenix
• 832 PSV Wave Edition, NB 120
• Outfitting
• 832 PSV, NB 116
• 857 Subsea Vessel, NB 115
• 832 SOV, NB 118 & 119
• Significant amount of prototype vessels lower margins

• Challenges in the fish and live-fish carrier segments

• Full capacity utilization

• More prototype projects in 2014

• Decline in revenue due to decreased equipment package deliveries YTD compared to 2013

• Increased activity in Havyard Production & Service

• Lower margins due to restructuring effects
• Electro installation incorporated in Ship Technology

DetailedFigures (cont.)

• Restructuring process in Refrigeration gives positive effect
• Fish Handling has seen reduced margins due to more complex projects in the aquaculture segment

BALANCE SHEET

AS SE TS	20 14 Q 3	20 13
No nt et n cu rre a ss s
Go od ill w	23 9 18	23 9 18
Lic nd & te nt R D en se s, pa s a	49 94 7	41 4 83
la nd Pr ty nt ip t op er , p a e qu m en	25 8 5 70	24 0 16 7
t i cia In st te ve m en n as so s	90 3 54	84 1 43
iat Lo to an a ss oc es	14 4 36	15 1 85
n f l a In t i in cia st et ve m en an ss s	17 2 0 71	20 5 2 94
he ab le Ot iv nt r n on cu rre re ce	12 2 9 42	11 8 8 39
l n To ta nt et on cu rre a ss s	73 2 2 38	72 9 0 28
Cu A nt et rre ss s
In nt ve or y	35 7 89	38 8 72
Ac iv ab le ts co un re ce s	60 4 99	82 1 22
Ot he ei bl r r ec va es	84 6 82	13 9 5 53
Co tio n W IP in f p tr ts ns uc e xc es s o re pa ym en	76 8 3 16	26 1 5 74
sh nd sh iv al Ca ts a ca e qu en	28 5 9 96	28 1 3 81
l C To ta nt A et ur re ss s	1 2 35 28 2	80 3 5 01
TO TA L A SS ET S	1 9 67 5 20	1 5 32 5 29
EQ UI TY A ND LI AB ILI TI ES		20 13
Eq ui ty
Sh l pi ta ar e ca	1 1 26	1 1 26
Sh iu ar e pr em m re se rv e	5 4 62	5 4 62
Tr sh ea su ry ar es	7 -	-1 6
in ed ni Re ta e ar ng s	60 9 4 20	64 0 8 65
No lli in nt te st n- co ro ng re	7 4 94	21 0 02
To l e ity ta qu	62 3 4 95	66 8 4 39
li ab ili tie Lo te ng rm s
fe d lia bi lit De ta rre x y	59 3 35	45 2 27
nd b Lo in nt an s a or ro w gs , n on -c ur re	20 8 7 70	98 1 23
he r l li ab ili Ot tie te on g- rm s	4 26 1	19 1 07
l l li ab ili To tie ta g t on er m s	27 2 3 66	16 2 4 57
Cu li ab ili tie nt rre s
Ac ab le ts co un p ay s	11 0 3 58	12 8 2 78
Ta ab le xe s p ay	30 1 72	57 9 03
Pr isi fo r d iv id d ov on en	60 0 00	-
bl ic du tie ab le Pu s p ay s	19 4 10	16 9 16
tio lo Co tr ns uc n an s	66 0 0 73	13 4 78 8
nd b in Lo nt an s a or ro w gs , c ur re	26 82 1	43 83 1
Pr ts ep ay m en	71 8 56	23 2 8 02
he li ab ili Ot tie nt r c ur re s	93 6 05	87 7 65
l c li ab ili To tie ta nt ur re s	1 0 71 6 56	70 1 6 34
l l bi lit To ia ie ta s	1 3 44 0 22	86 4 0 91

• Increased activity in 2014
• New administration building in Leirvik MNOK 20
• Realisations in financial investments of MNOK 80
• Bond Loan placed in June, MNOK 150
• Refinancing of long term debt, MNOK 35
• Purchase of minority shares in Fish Handling & Refrigeration, MNOK 25
• Additional dividend MNOK 60
• Strengthening liquidity
• Net interest bearing debt: MNOK 64
• Working capital: MNOK 164
• Equity ratio: 32 %

TOTAL EQUITY AND LIABILITIES 1 967 520 1 532 530

Working Capital & Net Interest Debt

CASH FLOW

( ) NO K 1 000	20 14 YT D	20 13 YT D	20 14 Q 3	20 13 Q 3	20 13
	( aud ited ) Un		( aud ited ) Un
CA SH OW OM OP ION S FL FR ER AT
fit / ( ) for Pro los be e t s ax	60 47 7	173 18 8	9 17 40	503 49	189 51 5
d Ta ai xe s p	-26 92 1	-40 56 8	-	0 -14	-55 89 0
De cia tio pre n	16 680	12 833	72 5 9	23 4 7	17 94 2
/ ha f (pr fit ) los fro iat S re o o s m ass oc es	200 -8	147 -3	187 -3	9 -1 04	-4 196
C ha in inv tor ng es en y	3 0 83	15 87 1	196 -1	54 3 9	17 514
ha n l Ne in tio t c nst ng es co ruc oa ns	525 28 5	85 35 1	2 267 80	5 -32 95	-12 9 2 97
/co ha b les C in iva tio n W IP nts nst ng es acc ou re ce ruc	-48 5 1 19	-24 33 3	55 -21 2 4	232 89	184 01 8
ha b le C in nts ng es acc ou pa ya	-17 92 0	-46 84 7	0 45 41	0 -10 51	-18 61 2
ha he b les / lia bi liti C in eiv ot nt ng es r cu rre rec a es	-15 4 8 29	15 816	3 -37 81	700 39	121 22 2
/ h flo fro ( ) o Ne ing tiv itie t c to rat as w m pe ac s	46 -87 4	188 16 4	2 81 94	8 142 45	320 28 7
CA SH OW OM ST S FL FR IN VE ME NT
Inv in lan nd uip est nts ert t a nt me pr op p eq me y,	5 -32 87	3 -26 48	385 -7	3 -8 76	-30 36 9
ib le Inv in int est nt ets me an g ass	-10 67 2	-11 68 1	944 -4	1 -3 68	-22 99 4
/ dis l o f fin l as Inv in cia est nt set me po sa an s	623 80	74 7 6	3 -29	74 7 6	-49 42 1
ha in lon eiv b les C ter ng es g m rec a	-1 42 5	-71 30 8	32	929	-37 74 0
h flo d i n i ing tiv itie Ne t c est as use nv ac s w	1 35 65	98 -10 1 7	0 -12 59	1 -3 84	-14 0 5 24
CA SH FL OW FR OM FI NA NC ING AC TIV ITI ES
lon de bt Ne ter w g m	146 40 0	14 540	-	03 7 1	16 84 5
lon de bt Re t ter pa ym en g m	78 -45 4	06 -14 5	100 -3	689 -4	-18 75 4
ha /sa le f tr ha Pu rc se o ea su ry s res	5 9 99	-	99 5 9	-	2 0 00
ha f m ha d F h H d lin frig Pu ino rity in Ha is & Re tio rc se o s res vy ar an g era n	1 -25 19	-	-	-
ide nd Div s	-24 99 6	-	-	-	-24 79 2
/ h flo fro (us d i ) fin cin cti vit ies Ne t c as w m e n an g a	56 42 8	47 5	99 2 8	14 2 4	-24 70 1
ha h a nd h e len Ne e i iva t c ts ng n c as ca s qu	15 4 6	842 86	252 72	2 141 03	155 06 3
Ca h a nd h e iva len f t he rio d ts at sta rt o s ca s qu pe	28 38 1 1	126 31 9	213 5 74	6 61 04	126 31 9
fro f s Ca h a nd h e iva len ha bsi dia rie ts s ca s qu m pu rc se o u s
h a nd h e len d o f t he d Ca iva rio ts at s ca s qu en pe	9 285 96	213 16 1	6 285 99	8 202 07	28 1 3 81
d ba nk de he d o f t he d Re ict sit rio str t t e po s a en pe	11 5 4 65		115 46 5	0 141 12	148 20 6
ai la b le h a nd h e iva len he d o f t he rio d Av ts at t cas ca s qu en pe	170 53 1	213 16 1	170 53 1	958 60	133 17 5

• Several projects under construction in 2014
• Prepayments received in 2013
• Realisations in financial investments of MNOK 80

• Bond Loan placed in June

• •Sick leave gradually reduced during 2013 and 2014

• • Total 20 injuries resulting in absense from work last 12 months
• •Average length of absence following injuries is 18.9 days
• • An extensive plan is implemented to reduce injuries and absence, and it includes subcontractors

HES/ QA

HES/ QA

• Quality
• Strong focus on Quality in the Group
• Quality deviations are measured, documented in action lists and handled effectively
• Internal audits in accordance with ISO 9001 and ISO 14001
• Supplier audits
• Audits from costumers