Eqva ASA

Investor Presentation • Aug 29, 2014

Presentation Q2 201429.08.14Geir Johan BakkeCEO

Agenda

• Headlines/ milestones Q2
• Outlook
• Main figures
• Detailed figures
• HES/ QA
• Questions

Headlines/Milestones Q2

• Delivery of newbuild no. 117, a live-fish carrier to Fosnavåg Shipping
• Delivery of the extensive rebuild of Havila Phoenix
• Signing of contract with Fafnir Offshore for newbuild no. 126, a Havyard 833 WE with planned delivery in mid-2015
• Purchase of the minority shares in Fish Handling & Refrigeration, securing further control of the value chain
• Realisation of NOK 80 million in financial investments
• Placed a 3 year unsecured bond loan of NOK 150 million on the Nordic ABM
• EBIT-margin of 3.8 % in first half of 2014
• Adjusted for IPO cost, the EBIT-margin is 5.2 %
• 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 negatively influenced by the fish and live fish-carrier segments
• Measures have been taken to increase profitability, and Havyard have confidence that the fish and live fish-carrier segments will have a positive development and profitability going forward

Outlook

• Control of orders for the fishing and aquaculture market is key for short term performance
• Diversified customer base, both geographically and on different segments
• Strong foothold in emerging markets (Nigeria, offshore wind power)
• Positive market outlooks within offshore subsea and aquaculture
• Demands for cost reductions offshore enhances opportunities for new, cost effective technology
• EBIT-margin of approx. 5 % expected for 2014
• Additional dividend of NOK 60 mill for Q2 approved by the Board, subject to General Meetings Approval
• Quarterly dividends onwards 50 – 75 % of earnings as stated in dividend policy

Main Figures

	2014 YTD	2013 YTD	2014 Q 2	2013 Q2	2013
Operating revenue	1 1 2 5	986	696	613	1987
EBITDA	53	115	21	70	199
EBIT	$43^{1}$	107	$15^{1}$	66	181
EBIT-margin	$3.8\%$ 2	10.9%	$2.2 \%$ 2	10.8%	9.1%
Profit before tax	43	109	15	67	190
Earnings per share	1.28	3.43	0.40	2.06	6.13
NIBD	143	99	143	99	8
Working Capital	213	137	213	137	102

• •Order backlog of approx. 2 500 million
• •Secures capacity utilization for the coming periods

DetailedFigures

• Delivered
• Live fish carrier, NB 117
• Rebuild of HavilaPhoenix
• Outfitting
• 832 PSV Wave Edition, NB 120
• 832 PSV, NB 116
• 857 Subsea Vessel, NB 115
• Significant amount of prototype vessels lower margins
• Challenges in the fish and live-fish carrier segments
• Measures have been taken

DetailedFigures (cont.)

• Full capacity utilazation
• Expanding capacity in Poland and Croatia

DetailedFigures (cont.)

• Increased activity in Havyard Production & Service
• Lower margins due to restructuring effects
• Electro installation incorporated in Ship Technology

DetailedFigures (cont.)

• Fish Handling has seen reduced margins due to more complex projects in the aquaculture segment
• Measures have been taken to increase profitability
• Restructuring process in Refrigeration gives positive effect

BALANCE SHEET

(N 0) 1, AS SE TS	20 14 Q 2	20 13
No nt ts n c ur re as se
od ll Go wi	23 91 8	23 91 8
Lic d R &D te nts en se s, pa an	45 55 5	41 48 3
lan nd uip Pro rty t a nt pe , p eq me	25 6 8 55	24 0 1 67
t i cia Inv tm te es en n a sso s	87 16 6	84 3 14
Lo to cia te an as so s	14 05 8	15 18 5
n f ial Inv tm t i ina ts es en nc as se	17 1 7 78	20 5 2 94
he iva ble Ot nt r n on cu rre re ce	12 1 4 23	11 8 8 39
l n To ta nt ts on cu rre as se	72 0 7 53	72 9 0 28
Cu As nt ts rre se
Inv to en ry	34 59 3	38 87 2
Ac iva ble ts co un re ce s	57 27 6	82 12 2
Ot he eiv ab les r r ec	10 4 0 46	13 9 5 53
Co cti W IP in of tru nts ns on ex ce ss pr ep ay me	55 9 0 84	26 1 5 74
Ca sh d c h e iva len ts an as qu	45 21 3 7	28 1 3 81
To l C As ta nt ts ur re se	44 96 8 7	80 3 5 01
TO TA L A SS ET S	1 6 89 49 7	1 5 32 52 9
(N 0) OK 1, 00
EQ UI TY A ND LI AB ILI TIE S uit	20 14 Q 2	20 13
Eq y Sh al pit are ca	1 1	1 1 26
Sh ium are em re se rve	26 5 4 62	5 4 62
pr sh Tr ea su ry are s		-16
d e Re ta ine ing arn s	-16 64 9 3 12	64 0 8 65
llin No nt g i nt t n- co ro er es	7 6 89	21 00 2
l e ity To ta qu	66 3 5 73	66 8 4 39
lia bil iti Lo te ng rm es
fe d t lia bil ity De rre ax	85 1 55	45 22 7
Lo nd bo wi nt an s a rro ng s, no n- cu rre	21 1 4 13	98 12 3
Ot he r lo lia bil iti -te ng rm es	3 2 28	19 10 7
To l lo lia bil iti ta te ng rm es	27 0 4 92	16 2 4 57
Cu lia bil iti nt
rre es Ac ble ts	64 94 8	12 8 2 78
co un pa ya s Ta ab le	30 17	57 90 3
xe s p ay Pu bli c d ies ble ut	2 16 45 3	16 91 6
pa ya s Co cti lo tru	42 40 1 6	13 4 7 88
ns on an s Lo nd bo wi nt an s a rro cu rre	33 07 4	43 18 3
ng s, Pre ts en	14 3 7	23 2 8 02
pa ym he lia bil Ot iti nt r c ur re es	43 65 40 0	87 76 5
l c lia bil To iti ta nt ur re es	75 5 4 32	70 1 6 34
l li ab ilit To ies ta	1 0 25 92 4	86 4 0 91

• Increasing activity in first half of 2014
• Prepayments received in 2013
• Bond Loan placed in June, MNOK 150
• Refinancing of long term debt, MNOK 35
• Purchase of minority shares in Fish Handling & Refrigeration, MNOK 25
• Strengthening liquidity
• Net interest debt: MNOK 143
• Working capital: MNOK 213
• Equity ratio: 39 %
• Realisations in financial investments of MNOK 80

CASH FLOW

( K ´ 0) NO 00	20 14 YT D	20 13 YT D	20 14 Q 2	20 13 Q 2	20 13
	( ) Un dit ed au		( ) Un dit ed au
CA SH FL OW FR OM O PE RA TIO NS
fit / ( los s) be fo Pro tax re	43 06 8	123 68 5	1 14 99	320 82	189 51 5
aid Ta xe s p	-26 92 1	-40 42 8	7 -4 09	4 -19 70	-55 89 0
cia tio De pre n	10 70 8	8 1 10	96 5 5	61 4 0	17 94 2
(p it) / Sh of rof los s f cia tes are rom as so	3 01 -5	8 -2 09	105 -3	9 04 -1	196 -4
Ch s in in nto an ge ve ry	4 2 79	11 91 7	186 -1	1 -77	17 514
ha n l Ne in tio t c nst ng es co ruc oa ns	25 7 4 83	118 30 6	270 75	2 122 27	-12 9 2 97
/co Ch s in eiv ab les tio n W IP ts nst an ge ac co un rec ruc	-27 2 6 64	-11 3 5 65	7 -66 22	36 -12 9 5	184 01 8
Ch s in ble ts an ge ac co un pa ya	-63 33 0	-36 33 7	88 1 -7	2 43 91	-18 61 2
/ Ch s in he iva ble lia bil itie ot t re an ge r c urr en ce s s	-82 11 1	-23 88 4	70 -10 4 2	3 -17 83	12 1 2 22
ash flo fro / ( to) Ne tin cti vit ies t c w m op era g a	4 5 -13 01	45 70 6	9 -90 90	2 83 67	320 28 7
CA SH FL OW FR OM IN VE ST ME NT S
in lan nd uip Inv est nts ert t a nt me pr op p eq me y,	0 -25 49	0 72 -17	2 -20 59	8 95 -14	-30 36 9
ibl Inv in int est nt ts me an g e a sse	-5 72 8	-8 00 0	1 -3 96	0 -5 00	-22 99 4
/ dis sal of fin l as Inv in cia est nt set me po an s	1 46 01	-	1 46 01	-	-49 42 1
Ch lo ble s in iva te an ge ng rm re ce s	-1 45 7	-72 23 7	185	7 -71 34	-37 74 0
ash flo d i n i ing tiv itie Ne t c est w use nv ac s	6 13 33	-97 95 7	3 21 64	-91 30 5	0 5 24 -14
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	7 4 37	0 146 40	61 1 3	16 84 5
t lo de bt Re te pa ym en ng rm	-42 68 4	-9 37 6	9 -36 92	7 -4 68	-18 75 4
Pu rch of sh tre ase asu ry are s		- -	-	-	2 0 00
rch of sh ard sh nd lin fri Pu ino rity s in Ha Fi Ha & Re ion rat ase m are vy g ge	1 -25 19	-	1 -25 19	-
ide nd Div s	-24 99 6	-	163 -4	-	-24 79 2
/ ash flo fro (us ed in ) fin cin cti vit ies Ne t c w m an g a	53 529	-1 93 9	117 80	6 -3 32	-24 70 1
Ne ha e i ash d c ash uiv ale t c nts ng n c an eq	6 -67 63	9 -54 18	2 10 85	8 -10 95	166 14 5
sh d c ash ale of th od Ca uiv eri nts at st art an eq e p	1 28 38 1	115 23 5	93 20 2 8	4 72 00	115 23 5
sh d c ash ale fro rch of bs idi Ca uiv ari nts an eq m pu ase su es
Ca sh d c ash uiv ale d o f t he rio d nts at an eq en pe	3 7 21 45	61 04 6	45 21 3 7	6 61 04	28 1 3 81
ict ed ba nk de sit he d o f t he rio d Re str t t po s a en pe	11 2 1 15		112 11 5		148 20 6
of Av ail ab le h a nd sh uiv ale th nd th eri od nts at cas ca eq e e e p	30 10 1 6	6 61 04	30 10 1 6	6 61 04	133 17 5

• Several projects under construction in the first half of 2014
• Prepayments received in 2013
• Bond Loan placed in June

HES/ QA

• •Sick leave gradually reduced during 2013 and 2014
• • Total 21 injuries resulting in absense from work last 12 months
• •Average length of absence following injuries is 16.2 days
• • An extensive plan is implemented to reduce injuries and absence, and it includes subcontractors

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