Nekkar — Investor Presentation 2017

Sep 14, 2017

TTS

TORIL EIDESVIK CEO

PARETO OIL & OFFSHORE CONFERENCE 2017

NUMBER OF SHIPS BUILT BY REGION

• New CEO appointed in April 2016
• "Clean your garden" strategy initiated
• Improved performance, both operational and financial
• Digitalization, CDO appointed in December
• Adjustments in organization smaller and leaner management team
• New CFO appointed in June 2017
• Preparing the platform for growth building on TTS strengths

SEVEN KEY DRIVERS FOR GROWTH

Last 12 months:

• Cost savings program realized >MNOK 100
• Down-sized organization >150 Persons
• Flexible utilization of resource pool across BU's
• Reduced organizational complexity
• Operational improvements
• Manufacturing in Europe closed down
• Initiated cloud based IT/ERP system integration program across BU's

TTS HAS A SOLID MARKET POSITION

MARKET SIZE (NOK)

>15 bn

TARGETED MARINE AND OFFSHORE EQUIPMENT MARKET

>7000 >15 EXPECTED CONTRACTING 2018 - ²⁰²⁰ % ships

TTS CHINA MARKET SHARE

8

Global and Strong Customer Base

Comprehensive and Diversified Product Portfolio

Large Installed Base for Service Business

Potential to Increase Revenue

TODAY'S REVENUE

REVENUE POTENTIAL

TTS Group ASA

2Q 2017- Headlines

• 2Q 2017 revenues increased with more than 10% vs 1Q 2017 to MNOK 556, but notable lower than the same period last year
• Continued positive underlying operations, with a 2Q 2017 EBITDA excl. restructuring of MNOK 36. Reported EBITDA was MNOK 29
• Improved EBITDA margin despite reduced business volume confirms successful implementation of cost reduction program
• 1H EBITDA was MNOK 46 excluding restructuring costs. Reported EBITDA of MNOK 9 impacted by restructuring cost of MNOK 37, of which MNOK 30 in 1Q 2017 from restructuring cost in Multipurpose/General cargo, and MNOK 7 in 2Q 2017 related to restructuring of the corporate functions

Financial Information 2Q 2017

TTS GROUP ***)	2Q		1H		Full year
MNOK	2017	2016	2017	2016	2016
Revenue	556	822	1063	1 588	3 087
EBITDA **	2 9	3 2	9	5 9	7 0
EBITDA margin (%)	5,2	4,0	0,8	3,7	2,3
Order intake	917	639	1318	1 168	2 398
Order backlog *	2943	3 333	2943	3 333	2 722
EPS (NOK) Total	0,04	-0,19	-0,42	-0,21	-1,40

* Order backlog includes 50% of backlog from equity consolidated investments in China

** 2017 EBITDA includes a restructuring cost of MNOK 7 (2Q/17)

** 2017 EBITDA includes a restructuring cost in BUMPG of MNOK 30 (1Q/17)

** 2016 EBITDA includes a negative inventory impairment in BUMPG of MNOK 20, and a negative impairment in BUCBT of MNOK 43.

*** TTS Liftec OY, a former part of BUSYS, w as sold in 1Q/2017. Profit from the transaction is calculated to MNOK 12,7 and classified

as a finance transaction. Based on overall immaterial effect on the comparable figures, TTS Liftec is retained in the 2016 figures.

In Summary – TTS Group Will

• Build on a solid market position and strong customer base
• Continue to improve operations
• Implement an exciting new product development program ("Smart moves")
• Achieve profitability at industry levels

"New TTS" is about to take shape