Philly Shipyard — AGM Information 2010

Apr 13, 2010

1

Ordinær generalforsamling

Aker Philadelphia Shipyard ASA
Oslo, 13. april 2010

Building the Future

Agenda

• 1. Åpning og konstituering av generalforsamlingen, herunder valg av en person til å undertegne protokollen sammen med møteleder.
• 1. Ordinære poster
• 2.1. Orientering om virksomheten.
• 2.2. Godkjenneelse av årsregnskapet for 2009 for Aker Philadelphia Shipyard ASA og konsernet, samt årsberetningen.
• 2.3. Fastsettelse av godtgjørelse til styrets medlemmer.
• 2.4. Fastsettelse av godtgjørelse til medlemmer av valgkomiteen.

• 2.5. Godkjenneelse av revisors honorar.

• 2.6. Behandling av styrets erklæring om fastsettelse av lønn og annen godtgjørelse til ledende ansatte i selskapet. Styrets erklæring er inntatt i note 24 til konsernregnskapet på side 26-27 i årsrapporten.

• 2.7. Valg av styremedlemmer.
• 1. Vedtektsendring

Building the Future.

13-Apr-10

Side 3

Aker Philadelphia Shipyard

solo 13. April

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2

Presentation of Business Activities

Aker Philadelphia Shipyard ASA

Building the Future:
13-Apr-10
Slide 3

Aker Philadelphia Shipyard
part of Aker

Company Overview

A U.S. shipyard that utilizes state-of-the-art shipbuilding practices to manufacture ocean-going commercial vessels for the Jones Act market

• Company: AKPS is the most modern U.S. shipyard focused on building commercial vessels protected by the Jones Act
• Products: AKPS currently builds mid-sized (30,000 – 45,000 dwt), ocean-going tankers and container ships with double-hull designs; the yard has the capabilities and infrastructure to build significantly larger vessels (50,000 – 80,000 dwt)
• Customers: AKPS's products are sold directly or leased through an affiliated organization to leading oil producers and shipping lines
• Facility: AKPS's shipyard was completely rebuilt in 1998 and has been optimally designed to support commercial shipbuilding operations
• Processes: The yard utilizes modular construction, automated fabrication systems and outsourcing to enhance productivity

Modern Shipyard

Commercial Vessels
Product Tankers

Container Ships

Building the Future:
13-Apr-10
Slide 4

Aker Philadelphia Shipyard
part of Aker

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3

Summary of 2009 main events

• Three product tankers delivered in 2009
• Overseas Boston, Overseas Nikiski and Overseas Cascade
• Four others under construction
• 35% improvement in work-hours from the first to the eighth tanker (2007-2009)
• Reduced injury rates
• Due to an increased focus on safety, AKPS reduced lost-time injuries by 14% and eye injuries by 62%
• Finalized settlement agreement with AMSC and OSG
• Revenues of USD 226.7 million (20% decrease from 2008)
• EBITDA of USD 13.4 million (17% decrease from 2008)

Three Tankers Delivered in 2009

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Ship updates

Hull 013

Hull 014

Hull 015
Hull 016

Building the Future.

13-Apr-10

Slide 7

Aker Philadelphia Shipyard

part of Aker

Presentation of Financial Statements

Aker Philadelphia Shipyard ASA

Building the Future.

13-Apr-10

Slide 8

Aker Philadelphia Shipyard

part of Aker

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5

Consolidated Income Statement

Amounts in USD thousands (except loss per share)	2009	2008
Operating revenues	226,726	285,000
Cost of vessels	(205,748)	(258,731)
Wages and other personnel expenses, net	(1,905)	(2,204)
Other operating expenses	(5,643)	(7,875)
Operating income before depr. and amort. - (EBITDA)	13,430	16,190
Depreciation	(7,415)	(7,117)
Impairment of goodwill	(11,011)	-
Operating income/(loss) - (EBIT)	(4,996)	9,073
Financial income	7,478	1,529
Financial expenses	(1,239)	(10,462)
Income before tax	1,243	140
Tax expense	(5,642)	(1,894)
Net loss for the year	(4,399)	(1,754)
Basic loss per share	(0.43)	(0.17)

Consolidated Statement of Financial Position Assets

Amounts in USD thousands	2009	2008
ASSETS
Property, plant and equipment	66,848	70,833
Intangible assets	-	11,011
Interest-bearing long-term receivables	171	220
Other non-current assets	3,203	3,356
Total non-current assets	70,222	85,420
Vessels under construction-receivables	94,614	162,145
Prepayments and other receivables	10,651	16,506
Income tax receivable	1,397	2,941
Interest-bearing short-term receivables, net	3,017	4,789
Cash and cash equivalents	36,225	23,551
Total current assets	145,904	209,932
Total assets	216,126	295,352

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6

Consolidated Statement of Financial Position Equity & Liabilities

Amounts in USD thousands	2009	2008
EQUITY AND LIABILITIES
Paid in capital	70,995	70,995
Other equity	16,335	20,734
Total equity attributable to equity holders of the parent	87,330	91,729
Total equity	87,330	91,729
Interest-bearing long-term debt	31,160	33,235
Deferred tax liabilities	4,622	2,429
Total non-current liabilities	35,782	35,664
Construction loan	48,000	118,500
Interest-bearing short-term debt	2,175	2,152
Trade and other payables	39,325	41,667
Income taxes payable	114	1,871
Current provisions	3,400	3,769
Total current liabilities	93,014	167,959
Total liabilities	128,796	203,623
Total equity and liabilities	216,126	295,352

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7

Aker Philadelphia Shipyard ASA

Statement of Financial Position

Amounts in USD thousands	2009	2008
ASSETS
Shares in subsidiary	67,000	67,000
Long-term receivable from subsidiary	10,000	5,000
Total non-current assets	77,000	72,000
Other short-term receivables	243	31
Cash and cash equivalents	10,189	15,118
Total current assets	10,432	15,149
Total assets	87,432	87,149
Amounts in USD thousands	2009	2008
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EQUITY AND LIABILITIES
Share capital	18,709	18,709
Share premium reserve	52,286	52,286
Total paid in capital	70,995	70,995
Other equity	14,097	13,224
Total equity	85,092	84,219
Other short-term liabilities	2,340	2,930
Total current liabilities	2,340	2,930
Total equity and liabilities	87,432	87,149

Auditor's Report 2009

KPMG AS
Asbjorn Naess, State Authorized Public Accountant
Oslo, 5 March 2010

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8

Agenda

• 1. Åpning og konstituering av generalforsamlingen, herunder valg av en person til åundertegne protokollen sammen med møteleder.
• 1. Ordinære poster
• 2.1. Orientering om virksomheten.
• 2.2. Godkjenning av årsregnskapet for 2009 for Aker Philadelphia Shipyard ASA og konsernet, samt årsberetningen.
• 2.3. Fastsettelse av godtgjørelse til styrets medlemmer.
• 2.4. Fastsettelse av godtgjørelse til medlemmer av valgkomiteen.
• 2.5. Godkjenning av revisors honorar.
• 2.6. Behandling av styrets erklæring om fastsettelse av lønn og annen godtgjørelse til ledende ansatte i selskapet. Styrets erklæring er inntatt i note 24 til konsernregnskapet på side 26-27 i årsrapporten.
• 2.7. Valg av styremedlemmer.
• 1. Vedtektsendring

Valgkomiteens innstilling

Ordinær generalforsamling i Aker Philadelphia Shipyard ASA
Oslo, 13. april 2010

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9

Valgkomiteens arbeid

• Sammensetning
• Leif-Arne Langøy, formann
• Gerhard Heiberg
• Kjeld Rimberg
• Arbeidsform
• To møter avholdt
• Vurdert styrets arbeid
• Mottatt innspill fra enkeltaksjonærer

Karl Erik Kjelstad (formann)

Gaily Mandel (nestformann)

Marianne Heien Blystad

Elin Karfjell

Mark Singel

Nåværende styremedlemmer

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10

Forslag til nytt styremedlem

Mr. Audun Stensvold (b. 1972) is CFO and Investment Director for Converto Capital Management, which is the investment advisor for Aker Philadelphia Shipyard's largest shareholder, Converto Capital Fund. Prior to joining Converto Capital Management in 2009, Mr. Stensvold worked for Aker ASA as Vice President of the M&A and Business Development team, and was i.a. involved in the initial stock exchange listing of Aker Philadelphia Shipyard (then named Aker American Shipping ASA) and later follow-up of Aker's ownership in the yard. Before joining Aker, Mr. Stensvold worked as a strategy and finance consultant for Selmer, and as a financial analyst for DnB NOR. Mr. Stensvold holds an MSc in Business and Economics from the Norwegian School of Economics and Business Administration (NHH). Mr. Stensvold is a Norwegian citizen.

Building the Future:
13-Apr-10
Slide 19

Aker Philadelphia Shipyard
part of Aker

Forslag til nytt styremedlem

Ms. Amy Humphreys, (b. 1966) is President of Delta Western, Inc., a leading petroleum marketing and distribution company in Alaska and a subsidiary of Saltchuk Resources. Prior to her current role and beginning in late 2006, Ms. Humphreys was CFO of North Star Utilities Group, the parent company of five fuel distribution operating companies and also a subsidiary of Saltchuk Resources. From 1996 to 2006, Ms. Humphreys held various leading positions in her 10 year tenure with American Seafoods Group including VP Corporate Development and Treasurer. For the past 15 years, Ms. Humphreys has worked within companies operating under the Jones Act and, for the past several years, has managed companies in the oil industry within an environment subject to OPA 90 regulation. Ms. Humphreys holds a Master of Business Administration (MBA), with honors, from University of Washington, is a Certified Public Accountant (CPA) and hold a Bachelor of Arts (BA) in Accounting and Finance, magna cum laude, from University of Puget Sound. Ms. Humphreys is a U.S. citizen.

Building the Future:
13-Apr-10
Slide 20

Aker Philadelphia Shipyard
part of Aker

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11

Ny styresammensetning

Karl Erik Kjelstad (formann)

Elin Karfjell

Mark Singel

Audun Stensvold

Amy Humphreys

Leif-Arne Langøy (formann)

Gerhard Heiberg

Foreslått valgt
Kjeld Rimberg

Bulding the Future

13-Apr-13

13-Apr-14

13-Apr-15

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12

Honorarer - valgkomiteens forslag

• Styre
• Formann: kr. 300.000
• Styremedlemmer: kr. 200.000
• Valgkomite
• Formann og medlemmer kr. 30.000

Agenda

• 1. Åpning og konstituering av generalforsamlingen, herunder valg av en person til å undertegne protokollen sammen med møteleder.
• 1. Ordinære poster
• 2.1. Orientering om virksomheten.
• 2.2. Godkjenneelse av årsregnskapet for 2009 for Aker Philadelphia Shipyard ASA og konsernet, samt årsberetningen.
• 2.3. Fastsettelse av godtgjørelse til styrets medlemmer.
• 2.4. Fastsettelse av godtgjørelse til medlemmer av valgkomiteen.
• 2.5. Godkjenneelse av revisors honorar.
• 2.6. Behandling av styrets erklæring om fastsettelse av lønn og annen godtgjørelse til ledende ansatte i selskapet. Styrets erklæring er inntatt i note 24 til konsernregnskapet på side 26-27 i årsrapporten.
• 2.7. Valg av styremedlemmer.
• 1. Vedtektsendring

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Disclaimer

This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Aker Philadelphia Shipyard ASA and Aker Philadelphia Shipyard ASA's (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Aker Philadelphia Shipyard's businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation. Although Aker Philadelphia Shipyard ASA believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Aker Philadelphia Shipyard ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Aker Philadelphia Shipyard ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.

The Aker Philadelphia Shipyard group consists of many legally independent entities, constituting their own separate identities. Aker Philadelphia Shipyard is used as the common brand or trade mark for most of this entities. In this presentation we may sometimes use "Aker Philadelphia Shipyard", "Group", "we" or "us" when we refer to Aker Philadelphia Shipyard companies in general or where no useful purpose is served by identifying any particular Aker Philadelphia Shipyard company.