Nekkar — Investor Presentation 2015

May 13, 2015

Q1 Results 2015 Oslo, 13 May 2015

Björn Andersson, CEO Henrik Solberg-Johansen, CFO

NEWS: New PCTC contract of MNOK120

• Cargo access equipment to two PCTCs (Pure Car Truck Carriers).
• Total order value is approx. MNOK 120.
• Under construction Korean Shipyard.
• Deliveries completed during 2016.

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Agenda

• 1st quarter headlines

• Strategy and market outlook
• 1st quarter consolidated accounts
• Segment info
• Shareholder structure
• Strategy and market outlook
• Summary

1st quarter 2015 – key figures

• § Turnover 1Q MNOK 599 up from MNOK 554 1Q last year
• § EBITDA 1Q of MNOK 1, up from MNOK -28 in 1Q 2014, in line with Q3 2014, but reduced compared to 4Q 2014
• § Order intake 1Q MNOK 301 excl. 50/50 companies. Total order intake 1Q MNOK 590 (incl 100% of 50/50 companies)*
• § Order backlog 1Q 2015 MNOK 4 418, incl. 100% of 50/50 companies

(*)TTS holds 50% of the 50/50 companies

-20 % -15 % -10 % -5 % 0 % 5 % 10 % -120,0 -100,0 -80,0 -60,0 -40,0 -20,0 0,0 20,0 40,0 60,0 Act Q2 2012 Act Q3 2012 Act Q4 2012 Act Q1 2013 Act Q2 2013 Act Q3 2013 Act Q4 2013 Act Q1 2014 Act Q2 2014 Act Q3 2014 Act Q4 2014 Act Q1 2015 EBITDA EBITDA EBITDA margin

TTS Group ASA

Turnover and EBITDA development

Note: - Restated 2012 due to changes in IAS 19, recognition of actuarial gain/loss on pension liabilities - EBITDA Q4 2014 of MNOK 36 is excluding positive pension effect of MNOK 101 ⁵

Order intake and order backlog

Agenda

• 1st quarter headlines
• Strategy and market outlook
• 1st quarter consolidated accounts
• Segment info
• Shareholder structure
• Summary

Overall vision for TTS Group

Vision	The global supplier of handling systems to the maritime and offshore industry with the strongest focus on end user satisfaction
Values that drive us	System & Technology competence	Reliability & Customer satisfaction	Health Safety & The Environment
Strategy	A preferred global supplier means: § are positioned § § § Profitability on par with industry average	Be on the makers list and get market share > 30 % in each market segment where we Product technology among the top 3 in each segment where we compete Customer oriented solution that support the life cycle of the vessel from new design to recycling. Wider product offerings to support package sales and reduce sales costs

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Our long-term goal

Building a global BNOK 6 System and Service provider company in the maritime and offshore industry within 2020

• § Grow by internal efficiency and capture market share
• § Add peripheral products to complement
• § Product costs on par with the market
• § Key accounts to support customer relationships
• § Major focus to penetrate our installed base and third party equipment

9

TTS revenue growth potential

Potential for growth towards 2020, goal of BNOK 6 turnover

BNOK

Operational Excellence & Synergies

In 2014 MNOK 130 were released in operation & sourcing costs In 2015 we will eliminate another MNOK 100

TTS has a strong position in the biggest global shipbuilding market

• Uniquely positioned to capitalize on China partnerships and through BU presence in Korea
• A new Chinese 50/50 owned company is established for Multipurpose & General Cargo
• Increased operational focus on Chinese JVs

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Positive underlying market drivers

World economy, seaborne trade and shipbuilding

• The demand for TTS equipment offering is related to the overall activity in shipping markets
• An important driver for shipping and shipbuilding markets is the state of the world economy
• World GDP expected to grow at CAGR 3.8% until 2017, in line with historic growth and a slight increase in growth relative to 2012-2014
• Seaborne trade is highly correlated to growth in world GDP
• Shipbuilding is a cyclical market and experienced a large increase in activity in the mid 2000's until the financial crisis
• Uptick in contracting and orderbook in 2013/14
• Fleet has consistently grown by more than 2% since 2000

Healthy underlying markets

Global economy to remain solid

World seaborne trade by type Comments

bn tonnes

World economy – GDP growth Growth in seaborne trade vs world GDP 1990-2014

Seaborne trade growth

• Healthy growth expectations for the world economy
• GDP projected to grow at 3.5-4% towards 2017
• Seaborne trade volumes are highly related to the world economy, and is therefore expected to move in the same direction
• Seaborne trade volumes have shown steady growth for many decades

– Key growth contributors include container and bulk

Contracting, fleet growth and new build prices

Contracting by region

Contracting by ship type

TTS currently addressing NOK 28 bn of the global market

• size for marine product categories totalling NOK 15bn
• Largest product types within marine are roro equipment, winches, hatch covers and cranes
• Estimated market size for offshore & heavy lift segments at NOK 13bn
• Largest market for offshore cranes, drillship cranes and offshore winches

Agenda

• 1st quarter headlines
• Strategy and market outlook
• 1st quarter consolidated accounts
• Segment info
• Shareholder structure
• Summary

Profit and loss statement

	1st quarter		Year
MNOK	2015	2014	2014
Turnover	593	554	2 454
EBITDA	1	-28	105
Operating profit	-8	-38	61
Net financial items	-15	-9	-38
Profit/loss before tax	-23	-47	23
Net result continued business	-28	-47	-22
Net result incl discontinued business	-28	-47	18

Balance Sheet
MNOK	31.03.2015	31.03.2014	31.12.2014
Non-current assets	916	931	927
Current assets	1 642	1 161	1 484
TOTAL ASSETS	2 558	2 093	2 411
Equity	584	503	610
Gross interest bearing liabilities	404	372	386
Other liabilities and provisions	1 570	1 218	1 415
TOTAL EQUITY AND LIABILITIES	2 558	2 093	2 411

Net interest bearing debt / Covenants § Net interest bearing debt increased to MNOK 348. § Total cash reserve is MNOK 214 as per 31.03.2015 § Equity ratio including subordinated convertible debt is 26.5 % at the end of 1Q 2015

§ Covenants at 1Q 2015 are met

Cash flow / Working capital / Interest bearing debt

Cash flow MNOK	Q1 2015 2014	Q1	Year 2014
Net cash flow from operations		-74 -157	-150
Net cash flow from investments	-1	-7	27
Net cash flow from financial activities		-7 -131	101
Net change in cash	-82	-32	-21
Cash and bank deposits at the start of the period	131	156	156
Effect of exchange rate changes in bank/cash	3	-7	-4
Cash and bank deposits at the end of the period	52	117	131

(**) Negative indicates net asset position § Cash flow from operations MNOK -74, mainly from increased working capital Offshore and RCN projects

MNOK	Q1 15 Q4 14 Q3 14 Q2 14 Q1 14 Q4 13
Short term interest b. debt	314	297	273	295	187	50
Long term int. bearing debt	0	1	1	1	103	103
Convertible Bond(*)	95	95	95	95	95	95
Total	409	393	369	391	385	248
Cash	52	131	88	88	117	156
NIBD (**)	357	262	281	303	268	92

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(*) Convertible loan included at nominal value

TTS Group - Turnover and EBITDA 1Q 2015

*) Includes 50 % of JVs Turnover and EBITDA 1Q 2015

RoRo / Cruise / Navy

Cargo handling solutions for car carriers, cruise ships and specialized vessels as well as port handling equipment.

	Q1 Periodic		Full Year
MNOK	2015	2014	2014
Turnover	160	135	599
EBITDA	15	11	77
Order backlog	707	834	854

• § Improved turnover and profit for the business unit
• § Market for RoRo, particularly PCTC, is positive
• § Competition is fierce and prices are low in the port segment
• § Cruise business is developing
• § The Navy segment is promising

Container / Bulk / Tank

Cargo handling solutions for container ships, tankers and bulk carriers; including winches, cranes and hatch covers.

	Q1 Periodic		Full Year
MNOK	2015	2014	2014
Turnover	72	112	422
EBITDA	2	1	-5
Order backlog *)	1 601	1 192	1 687

*) Includes 50 % of orderbacklog in 50/50 owned companies

• § Profit from 50/50 companies MNOK 8,4 (3,6) in Q1
• § Order backlog driven by strong market positions for the 50/50 companies in China
• § The outlook is strong for container and shows cyclic reduction for tank. The market for big bulk is slow, but emerging in small bulk and special tonnage
• § Moving of business unit head-quarter from Germany to South Korea is completed

Multipurpose / General Cargo

Heavy lift cranes, mooring winches, hatch covers and side loading systems for multipurpose vessels and cargo ships.

	Q1 Periodic		Full Year
MNOK	2015	2014	2014
Turnover	94	28	138
EBITDA	-4	-13	-35
Order backlog	445	281	562

• § Improved turnover and EBITDA
• § Continued positive activity in Chinese shipyards several projects are tendering heavy lift cranes
• § Improved order backlog combined with cost cutting measures, basis for improved EBITDA margins
• § New 50/50 company TTS-SCM approached Chinese market in Q1 and achieved large orders in April 2015

Shipyard Solutions

Production lines and systems for cargo handling to shipyards, focusing on transfer systems for docking and launching.

	Q1 Periodic		Full Year
MNOK	2015	2014	2014
Turnover	51	37	192
EBITDA	4	-3	32
Order backlog	265	278	271

• § Stable activity in the quarter. Several interesting projects may develop in 2015
• § TTS with a strong position in the ship lift market.

Offshore

Cranes for offshore vessels and offshore installations.

	Q1 Periodic		Full Year
MNOK	2015	2014	2014
Turnover	79	121	572
EBITDA	-24	-26	-50
Order backlog	230	524	254

• § Segment strongly affected by downturn in offshore market
• § Cost reduction efforts implemented. Due to long lead time for projects → effect expected gradually during 2015
• § Additional cost reduction efforts initiated in 1Q going forward into 2Q
• § Decrease in order backlog. Low order intake
• § Low utilisation and EBITDA under pressure expected in quarters to come

Services

Complete services within maintenance, including spare parts, interval agreements and life time service.

	Q1 Periodic		Full Year
MNOK	2015	2014	2014
Turnover	136	120	530
EBITDA	13	7	96

• § Solid activity in the quarter, and stabile margin
• § Market demand in the segment provides basis for increased turnover, and improvement to the overall profit margin
• § Service market remains influenced by low ship charter rates in some segments

Shareholder structure at May 8th 2015:

Rasmussengruppen AS	13.29%
Skeie Technology AS	10.31%
Lesk AS	6.13%
Stisk AS	6.13%
Skeie Capital Investment AS	4.85%
Barrus Capital AS	4.00%
Skandinaviska Enskilda	3.67%
Skagen Vekst	3.53%
Holberg Norge Verdipapirfondet	2.50%
Tamafe Holding AS	2.49%
10 largest shareholders	56.91%
Other (1407 shareholders)	43.09%
Total	100,00%

Skeie Technology AS, Skeie Capital Investment AS and members of the Skeie family own in total 32,0 %.

Agenda

• 1st quarter headlines
• Strategy and market outlook
• 1st quarter consolidated accounts
• Segment info
• Shareholder structure
• Strategy and market outlook
• Summary

Summary

§ Positive quarter and improved overall turnover ex Offshore

• § Positive 1Q EBITDA for the third quarter after four negative previous quarters
• § Turnover ex. Offshore continues to improve
• § EBITDA margin ex. Offshore at industry average level
• § Offshore affected by downturn in the market

§ Improvement processes on track

• § We have a road map for the improvement processes going forward in 2015 that has not changed. Up to now we have:
• § Finalized the cost cutting programs in MPGC, CBT and Offshore (Offshore continues cost cutting due to weak market development in 2015)
• § Value chain development in several product segments (sourcing, product development, sales)

§ Positive view on significant market segments

• § The marine market remains good
• § Contracting of new vessels continues to be on a cyclic low level, and the marked is particularly under pressure in some segments, especially Bulkers
• § Car carriers continue with several repeats
• § Container ships grow, especially feeder-size and mega size
• § Multipurpose/General cargo has improved from 2Q 2014
• § Offshore market under heavy pressure
• § TTS continues to explore new strategic opportunities to further strengthen the business, this may include sale of a part of the group, acquisition of new business or strategic cooperation with new partners

For further information, please visit us at www.ttsgroup.com