Magnora ASA

Investor Presentation • Nov 21, 2017

Sevan Marine ASA

Third Quarter 2017

Oslo, 21 November 2017

Reese McNeel, CEO

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 which 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 business unit and repay the USD 60 million convertible 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.

Highlights – Q3 2017

• Stable operating revenue
• Adjusted EBITDA of NOK -7.6 million, NOK 1.3 million better than prior quarter
• Total EBITDA of NOK -26.6 million
• Includes one-off items of NOK 19 million, mainly related to the Logitel arbitration settlement (NOK 12 million) and accrued legal costs related to the Logitel Bond Loan case (NOK 4 million)
• Settlement with Logitel/Teekay on the disputed Fourpartite Agreement
• USD 4.5 million (NOK 35.7 million) received in October 2017
• Solid financial position
• Q3 2017 cash position of NOK 162 million and no interest bearing debt

Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Operations

4

Sevan FPSO – Western Isles field

• Start up
• Commissioning activities ongoing
• Plateau production is expected to be around 40,000 boepd, with a field life of 15 years
• Sevan Marine will receive USD 0.5 per produced barrel when in operation

Sevan FPSO – Shell Penguins Redevelopment

• Prospective license fee potential in 2018 and additional engineering support through project EPC
• Sevan Marine entered into a license agreement for this prospect in Q4 2015
• Payments under the license agreement are subject to the field developers' final investment decision
• Sevan Marine has carried out detailed engineering for the hull and continues to support the client

Sevan FLNG project

• Work with ExxonMobil to support specific FLNG opportunity
• Total work orders for 2017 in the range of 6,000 hours

New developments

HiLoad LNG Offloading and Regas	Drilling unit for harsh environment	Fish farming	Power hub for wind or subsea operations
• Co-operation with Fluor Corporation for Regas. First study for specific	• New concept development for Mid water	• New cost effective concept development	• Further application of existing concept
project carried out	• Potential for cost	• Looking to apply cylindrical design and	• Low cost, geo-stationary, stable unit to handle
• Looking to team up with partner for LNG offloading	savings by designing unit for niche market	knowledge to growing market	power systems (potentially unmanned)

Financials

9

Financial highlights

• Stable operating revenue of NOK 12.8 million
• EBITDA was NOK -26.6 million
• Excluding one-off items, EBITDA improved by NOK 1.3 million versus previous quarter
• One-off items of NOK 19 million mainly related to Logitel arbitration settlement loss and legal costs of Logitel dispute

Performance – EBITDA adjusted for one-offs

• Reported EBITDA impacted by one-off items
• Revenue decrease versus Q3 2016, stable through 2017
• Underlying operational costs decreasing consistently over last quarters
• Likelihood of significant one-off items decreasing
• EBITDA going forward dependent on engineering studies and license income from Dana Western Isles and Shell Penguins redevelopment projects

Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Logitel disputes

Logitel bond loan court case

• Oslo District Court rejected claims related to the Logitel bond loan and awarded Logitel legal costs of NOK 4.1 million which have been accrued for in Q3 2017
• The decision has been appealed. The appeal will most likely not be heard before the second half of 2019
• While Sevan Marine is optimistic that the Appeal Court will overturn the Oslo District Court ruling, there remains material uncertainty regarding the amount and timing of any recovery

Settlement agreement with Logitel/Teekay with respect to the disputed Fourpartite Agreement

• USD 4.5m (NOK 35.7m) cash payment received in October as full and final settlement
• NOK 12.0m loss in Q3 2017 which includes accrued legal fees related to the arbitration

Alleged Patent Infringement

• Sevan Marine ASA was informed during the quarter that Sembmarine SSP Inc. and Jurong Shipyard Pte Ltd have initiated patent infringement proceedings against Sevan Marine ASA as well as Sevan Drilling Ltd and Sevan Drilling North America LLC in the Southern District Court of Texas in relation to the U.S. Patent No. 9,266,587
• Sevan Marine has yet to be formally served the lawsuit
• Sevan Marine believes the case is without merit and will vigorously defend it
• The plaintiffs have not yet quantified their claim for damages
• Seven Maine does not believe that this will result in any material negative consequences with respect to either existing or future uses of the Sevan technology

Concluding remarks

14

Summing up – developements in the quarter

• Stable activity level through summer months
• Continuing reductions in cost base
• Large one-off impacts in quarter
• Closure of Logitel arbitration case

Summing up – short term outlook

• Western Isles license start up
• Shell Penguins redevelopment project FID expected 2018
• Continued development of new concepts
• Further development and marketing of FSRU concept, Floating Regas Dock (FRD), with partners
• Continued focus on selling design packages and winning new engineering work

Our focus

Building relationships with large oil companies to:

• Promote the proven Sevan Marine design and our specialty marine engineering designs and services and to
• Be well positioned to take advantage of opportunities in an improving market

Appendix

Profit & loss statement

NOK million	Q3 17	Q2 17	YTD Q3 17	Q3 16	YTD Q3 16	2016
Continued operations
Operating revenue	12.8	13.1	38.0	21.9	98.8	117.1
Operating expense	-39.4	-25.9	-94.1	-27.8	-186.8	-221.1
EBITDA	-26.6	-12.9	-56.1	-5.9	-88.0	-104.0
Depreciation, amortization and impairment	-0.5	-0.6	-1.7	-0.4	-1.3	-3.3
Operating profit/(loss)	-27.1	-13.5	-57.8	-6.3	-89.3	-107.3
Financial income/(expense)	0.6	2.8	10.7	0.7	-127.1	-127.7
FX gain/(loss)	-3.6	-1.8	-7.4	-4.6	-21.3	-12.2
Net financial items	-3.0	1.0	3.3	-3.9	-148.3	-139.8
Profit/(loss) before tax	-30.1	-12.5	-54.5	-10.2	-237.6	-247.1
Tax income/(expense)	0.0	39.3	39.3	6.2	6.0	5.7
Net profit/(loss) continued operations	-30.1	26.8	-15.3	-4.0	-231.6	-241.4
Discontinued operations
Disposed group classified as held for sale	0.0	-7.6	-10.1	1.1	26.4	25.1
Net profit/(loss) discontinued operations	0.0	-7.6	-10.1	1.1	26.4	25.1
Net profit/(loss)	-30.1	19.2	-25.4	-2.9	-205.3	-216.3

Balance sheet

NOK million	Note	30.09.17	30.06.17	30.09.16	31.12.16
Fixed assets		0.2	0.3	2.0	1.4
Intangible assets		4.7	5.1	7.6	5.9
Deferred tax assets		0.0	0.0	0.9	0.0
Other non-current assets	3	3.5	45.5	43.9	46.7
Total non-current assets		8.4	50.9	54.4	54.0
Trade and other receivables	3	52.3	19.6	114.2	22.2
Cash and cash equivalents		161.6	179.1	218.7	213.9
Total current assets		214.0	198.7	332.9	236.1
Assets held for sale					75.5
Total assets		222.4	249.6	387.3	365.5
Share capital	2	210.4	210.4	210.4	210.4
Other equity		-17.1	13.0	11.0	-0.7
Total shareholders' equity		193.4	223.4	221.5	209.7
Non-controlling interest		0.2	0.3	9.2	9.2
Total equity		193.6	223.7	230.6	218.9
Retirement benefit obligations		0.0	4.2	6.4	6.4
Other non-current liabilities/provisions		0.0	0.0	3.3	0.0
Total non current liabilities		0.0	4.2	9.7	6.4
Current liabilities		28.8	21.7	146.9	77.1
Total current liabilities		28.8	21.7	146.9	77.1
Total liabilities		28.8	25.9	156.7	83.4
Liabilities held for sale					63.2
Total equity and liabilities		222.4	249.6	387.3	365.5

Cash flow statement

NOK million	Q3 17	Q2 17	YTD Q3 17	Q3 16	YTD Q3 16	2016
Continued operations
Operating revenue	12.8	13.1	38.0	21.9	98.8	117.1
Operating expense	-39.0	-25.9	-93.6	-27.8	-186.8	-221.1
EBITDA	-26.1	-12.9	-55.7	-5.9	-88.0	-104.0
Depreciation, amortization and impairment	-0.5	-0.6	-1.7	-0.4	-1.3	-3.3
Operating profit/(loss)	-26.7	-13.5	-57.4	-6.3	-89.3	-107.3
Financial income/(expense)	0.6	2.8	10.7	0.7	-127.1	-127.7
FX gain/(loss)	-3.6	-1.8	-7.4	-4.6	-21.3	-12.2
Net financial items	-3.0	1.0	3.3	-3.9	-148.3	-139.8
Profit/(loss) before tax	-29.7	-12.5	-54.1	-10.2	-237.6	-247.1
Tax income/(expense)	0.0	39.3	39.3	6.2	6.0	5.7
Net profit/(loss) continued operations	-29.7	26.8	-14.8	-4.0	-231.6	-241.4
Discontinued operations
Disposed group classified as held for sale	0.0	-7.6	-10.1	1.1	26.4	25.1
Net profit/(loss) discontinued operations	0.0	-7.6	-10.1	1.1	26.4	25.1
Net profit/(loss)	-29.7	19.2	-24.9	-2.9	-205.3	-216.3