Nekkar — Investor Presentation 2018

Aug 22, 2018

Looking Towards a New Future

Hordaland på børs 2018

Leiv Kallestad, CFO 22.08.2018

TTS Group ASA

• Provides cargo handling solutions and access systems to the international marine and offshore industries
• Resources are focused on design and engineering, assembly and testing
• Approx. 800 employees in 13 countries
• Headquarters in Bergen, Norway
• Listed on Oslo Stock Exchange since 1995

Current Market Remains Tough

Source: BRL Newbuild Market Survey 2Q 2018 First Half Full Year

TTS Group - 1H 2018 Revenue and EBITDA (MNOK)

Restructuring Process Required Result: Improved Performance

Increased Contribution from Higher Margin Businesses

Status – Cargotec Transaction

Recap:

• Five business units sold (Approx. 90% of TTS)
• MNOK 840 in proceeds
• Deal subject to approval from competition authorities

Status:

• Filing in process; China, Korea & Germany
• Transaction close expected 2H 2018

TTS Completing the Circle

• Production- and material handling solutions to the shipyard industry
• Revenue approx. MNOK 300

• Number of employees approx. 120

• Handling solutions and access systems for the marine- and offshore industries

• TTS has subsidiaries in 13 countries
• Revenue approx. MNOK 2.200
• Number of employees approx. 800

1995 2018 2019

• Nekkar intends to create new growth history building on the heritage of TTS
• Starting Point:
• Shipyard Solutions
• Revenue >MNOK 250

The Group will start of a transformation from:

To: Nekkar

Drilling

China & Far East

Logistics/Handling

Management

Technology

Engineering

Where the foundations for growth are:

TTS Shipyard Solutions

BU Shipyard Solutions - 1H 2018 Financial Information

TTS Group (Total) – Financial Information 1H 2018

TTS GROUP (Total) *	2Q		1H		Full year
MNOK	2018	2017	2018	2017	2017
Revenue	466	556	947	1 063	2183
EBITDA **	2 5	2 9	4 0	9	5 3
EBITDA margin	5,5 %	5,3 %	4,2 %	0,9 %	2,4 %
EBIT	1 6	1 9	2 1	-11	1 1
Order intake	721	917	1116	1 318	2267
Order backlog ***	2677	2 943	2677	2 943	2802
EPS (NOK)	0,11	0,04	0,19	-0,42	-0,39

* Please note that numbers are presented based on TTS' financial performance measures (APM)

** 2017 EBITDA includes a restructuring cost of MNOK 50, and MNOK 13 in bad debt provision related to an old contract. 1H 2017 EBITDA includes MNOK 37 in restructuring costs.

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

Continued Business – Financial Information 2Q 2018

TTS GROUP - Continued Business *	2Q		1H		Full year
MNOK	2018	2017	2018	2017	2017
Revenue	5 3	4 3	114	8 7	211
EBITDA **	3	-7	8	-11	1 1
EBITDA margin	5,4 %	-15,7 %	6,6 %	-13,2 %	5,0 %
EBIT	3	-7	7	-12	9
Order intake	176	293	186	298	351
Order backlog	529	527	529	527	458
EPS (NOK)	0,03	-0,12	0,07	-0,21	0,09

ttsgroup.com