Magnora ASA

Investor Presentation • Feb 28, 2018

Sevan Marine ASA

Fourth quarter 2017

Oslo, 28 February 2018

Reese McNeel, CEO / CFO

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 – Q4 2017

• Increased operating revenue, driven largely by start up of Dana Western Isles project and related revenue in Q4 of NOK 3.2 million
• Adjusted EBITDA of NOK -4.0 million, NOK 3.6 million better than Q3 2017. Consistently improving trend through 2017
• Solid financial position Q4 2017 cash position of NOK 197.5 million and no interest bearing debt
• Dividend payment of NOK 0.5 per share, subject to general meeting approval

Revenues NOK million

Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017

Sevan FPSO – Western Isles field

• Start-up of production in Q4 2017
• Sevan Marine receiving USD 0.5 per produced barrel offloaded
• Income in Q4 2017 of NOK 3.2 million
• Sevan Marine to also provide ongoing engineering support as requested by Dana going forward

Sevan FPSO – Shell Penguins Redevelopment

• Final investment decision taken in January 2018
• Sevan Marine has invoiced and received the first milestone payment of USD 2.625 million under the license agreement in Q1 2018
• Further payments remain subject to completion of the unit, start-up and successful production
• Sevan Marine is to continue to provide engineering support during construction of the unit
• Total revenue, including license income, is exepected to be in the range of USD 19 to 20 million over the coming 3 to 4 years

Sevan – Key prospects and market development

• Cost effective, cylindrical design has attracted increased interest, particularly from oil majors (Shell and ExxonMobil as examples)
• Concept is very competitive for upcoming projects in the UK sector of North Sea, Norwegian Barents Sea and Australia where small studies have been carried out
• Objective for 2018 is to ensure that the concept is included in relevant upcoming early phase studies
• Will continue to support existing units in operation with Teekay, ENI, Sevan Drilling and Dana

Sevan SCR FPSO

• SCRs in moonpool
• Extended bilge box/skirt
• Deep to ultradeep water

• Hurricane conditions

• Alternative to complex solutions

• − Steel lazy wave risers (e.g. Stones)
• − Hybrid towers (e.g. Chinook Cascade)

New developments

HiLoad LNG Offloading and Regas	Drilling unit for harsh environment	Fish farming	Cylindrical unit without storage
• Co-operation with industry partners. Jointly marketing concept with hope to start a FEED in 2018	• New concept development for harsh environment • Model testing and	• New cost effective concept development • Looking to apply cylindrical design and	• Low-cost, geo-stationary unit with reduced displacement for various sizes and applications
• Continuing to promote LNG offloading solution	further design work to be carried out in 2018	knowledge	• Model testing and further design work to be carried out in 2018

Financials

10

Financial highlights

• Increased operating revenue
• Stable revenue from engineering activities through 2017
• Revenue from Dana Western Isles, NOK 3.2 million
• Adjusted EBITDA of NOK -4.0 million, NOK 3.6 million better than last quarter
• Revenue from Dana Western Isles, NOK 3.2 million
• Operational cost excluding one-off costs stable at NOK 20.4 million
• Dividend payment of NOK 0.5 per share, subject to general meeting approval. The board will also consider future dividends pending financial performance and future cash flow

18.3 12.1 13.1 12.8 16.3 Revenues NOK million

Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017

Performance – EBITDA adjusted for one-offs

• Reported EBITDA impacted by one-off items
• Underlying operational costs decreasing consistently over last quarters, stable in Q4 2017
• EBITDA going forward driven by:
• Engineering studies
• License income from Dana Western Isles
• Shell Penguins redevelopment project

Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017

Concluding remarks

13

Summing up

• Western Isles producing
• Shell Penguins redevelopment project FID confirmed
• Stable engineering revenue in the quarter
• Further decreases in operating cost base expected in 2018
• Continued development of new concepts
• Continued focus on selling design packages and winning new engineering work
• NOK 0.5 dividend proposed. First dividend since 2014

Appendix

Profit & loss statement (as reported)

NOK million	Q4 17	Q3 17	2017	Q4 16	2016
Continued operations
Operating revenue	16.3	12.8	54.3	18.3	117.1
Operating expense	-22.6	-39.4	-116.6	-34.2	-221.1
EBITDA	-6.2	-26.6	-62.3	-16.0	-104.0
Depreciation, amortization and impairment	-0.5	-0.5	-2.2	-2.0	-3.3
Operating profit/(loss)	-6.7	-27.1	-64.6	-18.0	-107.3
Financial income/(expense)	0.8	0.6	11.5	-0.6	-127.7
FX gain/(loss)	4.0	-3.6	-3.4	9.1	-12.2
Net financial items	4.8	-3.0	8.1	8.5	-139.8
Profit/(loss) before tax	-2.0	-30.1	-56.5	-9.5	-247.1
Tax income/(expense)	-6.5	0.0	32.8	-0.2	5.7
Net profit/(loss) continued operations	-8.5	-30.1	-23.7	-9.7	-241.4
Discontinued operations
Disposed group classified as held for sale	0.0	0.0	-10.1	-1.3	25.1
Net profit/(loss) discontinued operations	0.0	0.0	-10.1	-1.3	25.1
Net profit/(loss)	-8.5	-30.1	-33.8	-11.0	-216.3

Balance sheet (as reported)

NOK million	Note	31.12.17	30.09.17	31.12.16
Fixed assets		0.1	0.2	1.4
Intangible assets		4.3	4.7	5.9
Other non-current assets	3	3.2	3.5	46.7
Total non-current assets		7.6	8.4	54.0
Trade and other receivables	3	16.1	52.3	22.2
Cash and cash equivalents		197.5	161.6	213.9
Total current assets		213.6	214.0	236.1
Assets held for sale				75.5
Total assets		221.2	222.4	365.5
Share capital	2	210.4	210.4	210.4
Other equity		-26.7	-17.1	-0.7
Total shareholders' equity		183.7	193.4	209.7
Non-controlling interest		0.3	0.2	9.2
Total equity		184.0	193.6	218.9
Retirement benefit obligations		0.0	0.0	6.4
Other non-current liabilities		2.3	0.0	0.0
Total non current liabilities		2.3	0.0	6.4
Current liabilities		34.9	28.8	77.1
Total current liabilities		34.9	28.8	77.1
Total liabilities		37.1	28.8	83.4
Liabilities held for sale				63.2
Total equity and liabilities		221.2	222.4	365.5

Cash flow statement (as reported)

NOK million	Q4 17	Q3 17	2017	Q4 16	2016
Cash flows from operating activities
Cash from operations	35.8	-17.5	-49.7	4.8	-44.3
Taxes paid/repaid	0.0	0.0	31.7	0.0	-31.7
Net cash generated from continued operating activities	35.8	-17.5	-18.0	4.8	-76.0
Net cash generated from discontinued operating activities	0.0	0.0	25.1	2.4	-40.2
Net cash generated from operating activities	35.8	-17.5	7.1	7.2	-116.2
Cash flows from investment activities Sale of shares KANFA Aragon AS	0.0	0.0	0.0	0.0	20.0
Sale of shares KANFA AS	0.0	0.0	0.9	0.0	0.0
Sale of fixed assets	0.1	0.0	0.7	0.0	0.0
Net cash from continued investment activities	0.1	0.0	1.6	0.0	20.0
Net cash from discontinued investment activities **	0.0	0.0	-37.1	0.0	0.0
Net cash from investment activities	0.1	0.0	-35.5	0.0	20.0
Cash flows from financing activities
Dividends paid	0.0	0.0	0.0	0.0	0.0
Net cash from continued financing activities	0.0	0.0	0.0	0.0	0.0
Net cash from discontinued financing activities	0.0	0.0	0.0	0.0	0.0
Net cash from financing activities	0.0	0.0	0.0	0.0	0.0
Net cash flow for the period - continued activities	35.9	-17.5	-16.5	4.8	-56.0
Net cash flow for the period - discontinued activities	0.0	0.0	-12.0	2.4	-40.2
Cash balance at beginning of period	161.6	179.1	225.9	218.7	322.1
Cash balance at end of period	197.5	161.6	197.5	225.9	225.9
Cash balance at end of period continued operations	197.5	161.6	197.5	213.9	213.9
Cash balance at end of period discontinued operations	0.0	0.0	0.0	12.0	12.0