Philly Shipyard — AGM Information 2018

Apr 5, 2018

Annual General Meeting

Philly Shipyard ASA Oslo, 5 April 2018

Agenda

• 1. Opening of the annual general meeting, including approval of the notice and agenda.
• 2. Election of a person to co-sign meeting minutes along with the meeting chair.
• 3. Presentation of business activities (non-voting).
• 4. Approval of the 2017 annual accounts of Philly Shipyard ASA, group consolidated accounts and the Board of Directors' report.
• 5. Consideration of the Board of Directors' declaration regarding stipulation of salary and other remuneration to the executive management of the Company.
• 6. Consideration of the statement of corporate governance (non-voting).
• 7. Stipulation of remuneration to the members of the Board of Directors and the Audit Committee.

• 8. Stipulation of remuneration to the members of the Nomination Committee.

• 9. Approval of remuneration to the auditor for 2017.

• 10.Election of members to the Board of Directors.
• 11. Authorization to the Board of Directors for payment of dividends.
• 12. Authorization to the Board of Directors to acquire own shares in connection with acquisitions, mergers, de-mergers or other transactions.
• 13. Authorization to the Board of Directors to acquire own shares for the purpose of investment or subsequent sale or deletion of such shares.
• 14. Authorization to the Board of Directors to increase the share capital in connection with new shipbuilding projects or other future investments within the Company's scope of operations.

Presentation of Business Activities

Philly Shipyard ASA

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 and opportunistically maintains ownership interests in the vessels it constructs

• Company: PHLY is the most modern U.S. shipyard focused on building commercial vessels protected by the Jones Act
• Products: PHLY builds ocean-going tankers ranging in size from 46,000-115,000 dwt and containerships. The yard has the capabilities and infrastructure to build a variety of vessels
• Facility: PHLY's shipyard was completely rebuilt in 1998 and has been optimally designed to support commercial shipbuilding operations; over USD 650M invested through a public private partnership
• Processes: The yard utilizes modular construction, automated fabrication systems and outsourcing to enhance productivity
• Partners: Relationships with Hyundai Mipo Dockyards, KOMAC and SM SOLUTION
• Order book: Two vessels currently in the production phase, consisting of two containerships for Matson with last delivery in early 2019
• Ownership: Aker Capital AS owns 57.6% of the company, which is listed on the Oslo Stock Exchange Tankers

Modern Shipyard

Commercial Vessels

Container Ships

Summary of 2017 Main Events

• Completed four-ship order for Kinder Morgan
• Concluded investment program in USD 1.0 billion product tanker series
• Record strong earnings
• Philly Shipyard's 20-year anniversary celebration
• Hull 029 milestone | Dock mounting ceremony
• 2017 AOTOS award recipient

Hull 028 Christening | November 2017

Presentation of Financial Statements

Philly Shipyard ASA

Consolidated Income Statement

A i U S D h d ( h ) t t t t m o n s n o s a n s e c e p p e r s a r e a m o n s u u x u	2 0 1 7	2 0 1 6
O i t p e r a n g r e v e n u e s	9 1, 8 4 5 7	2 0 2 4 9 5,
O h i t e r n c o m e	2 2, 8 1 5	2 8, 3 8 7
O i d h i t t p e r a n g r e v e n u e s a n o e r n c o m e	6 1 4, 6 3 5	2 3 3, 6 2 7
C f l t o s o v e s s e s	( ) 4 9 9, 4 0 0	( ) 1 4, 9 3 5 5
W d h l t t a g e s a n o e r p e r s o n n e e x p e n s e s, n e	( 3, 3 0 8 )	( 2, 8 6 4 )
O h i t t e r o p e r a n g e p e n s e s x	( ) 6, 8 6 8	( ) 5, 4 2 3
O i i b f d d ( E B I T D A ) t t. p e r a n g n c o m e e o r e e p r. a n a m o r	5, 5 1 0 0 9	5 7 0, 4 0
D i i t e p r e c a o n	( 9 ) 5, 7 7	( 3, 6 6 6 )
O i i ( E B I T ) t p e r a n g n c o m e	9 9, 2 6 2	6 6, 3 9 7
F i i l i n a n c a n c o m e	2, 0 3 7	2, 9 2 7
F i i l n a n c a e x p e n s e s	( 2, 0 3 2 )	( 1, 2 9 9 )
I b f t n c o m e e o r e a x	9 9, 9 3 3	6 8, 2 3 2
I t n c o m e a x e x p e n s e	( ) 3 2, 1 0 7	( ) 2 9, 8 0 5
i f N h t t e n c o m e o r e e a r y	6 7, 2 2 3	3 8, 6 5 2
B i i h ( U S D ) a s c e a r n n g s p e r s a r e	5. 5 5	3. 1 9

Consolidated Statement of Financial PositionAssets

A i U S D h d t t m o n s n o s a n s u u	2 0 1 7	2 0 1 6
S S S A E T
P l d i t t t r o p e r p a n a n e q p m e n y, u	5 0, 1 0 3	5 0, 5 6 0
E i d i t t t t q u y -a c c o u n e n v e s m e n s	4 7, 3 1 0	6 4, 3 3 5
R i d h t t e s r c e c a s	1 3, 1 4 5	1 3, 1 0 1
D f d t t e e r r e a x a s s e	8 9 7	1 6, 6 2 4
O h t t t e r n o n- c r r e n a s s e s u	2 3 9	2 3 8
T l t t t o a n o n- c r r e n a s s e s u	1 1 1, 7 0 3	5 1 4 4, 8 8
C h d h i l t a s a n c a s e q a e n s u v	1 1 0, 0 6 6	6 9, 1 0 9
W k- i o r n- p r o c e s s	1 3, 4 2 0	1 8 0, 3 2 1
V l d i i b l t t e s s e s- u n e r- c o n s r u c o n r e c e v a e	7, 2 7 5	-
I i b l t n c o m e a x r e c e v a e	9 1 2 5,	1, 8 0 5
P d h i b l t t r e p a m e n s a n o e r r e c e a e s y v	4, 6 0 3	5, 6 9 6
R i d h t t e s r c e c a s	1 4	7, 0 0 1
T l t t t o a c r r e n a s s e s u	1 4 1, 2 9 0	2 6 3, 9 3 2
T l t t o a a s s e s	2 5 2, 9 9 3	4 0 8, 9 0 7

Consolidated Statement of Financial PositionEquity & Liabilities

S A i U D h d t t m o n s n o s a n s u u	2 0 1 7	2 0 1 6
E Q U I T Y A N D L I A B I L I T I E S
P i d i i l t a n c a p a	3 5, 2 0 6	3 5, 2 0 6
O h i t t e r e q u y	1 2 0, 3 1 7	6, 1 5 7 5
T l i i b b l i h l d f h t t t t t t t t t o a e q a r a e o e q o e r s o e p a r e n u y u u y	1 5 5, 5 7 7	9 1, 3 8 1
i T l t t o a e q u y	1 5 5, 5 7 7	9 1, 3 8 1
I b i l d b t t- -t t n e r e s e a r n g o n g e r m e	5 9, 3 7 0	5 9, 3 2 9
D f d l i b i l i t t e e r r e a x a y	7 0 4	1, 0 3 1
O h l l i b i l i i t -t t e r o n g e r m a e s	-	3
T l l i b i l i i t t t o a n o n- c r r e n a e s u	6 0, 0 7 4	6 0, 3 6 3
T d b l d d l i b i l i i t r a e p a y a e s a n a c c r u e a e s	3 4, 8 1 4	6, 4 4 5 5
O h i i i t t e r p r o s o n s a r r a n e s v w -	1, 3 1 5	2, 2 4 6
I b l t n c o m e a x p a y a e	9 6 5	2, 1 3 4
I b i h d b t t- t- t t n e r e s e a r n g s o r e r m e	2 4 8	2 3 5
C d t t s o m e r a a n c e s, n e u v	-	9 8 8 7, 7
C i l t t o n s r u c o n o a n s	-	9 8, 0 0 0
i i i i T l l b l t t t o a c u r r e n a e s	3 7, 3 4 2	2 5 7, 0 4 6
T l l i b i l i i t t o a a e s	9 7, 4 1 6	3 1 7, 4 0 9
T l i d l i b i l i i t t t o a e q a n a e s u y	2 5 2, 9 9 3	4 0 8, 7 9 0

Philly Shipyard ASA Income Statement

S A i U D h d t t m o u n s n o u s a n s	2 0 1 7	2 0 1 6
O i t p e r a n g r e v e n u e s	( ) 2 9 6	2 0
O i t p e r a n g e x p e n s e s	-	( ) 4 7 2
O i l t p e r a n g o s s	( ) 2 9 6	( 5 ) 4 2
f I i b i d i i t t n e r e s n c o m e r o m s s a r e s u	1, 3 1 3	1, 1 5 7
I b i d i i t t t n e r e s e x p e n s e o s u s a r e s	( 2 2 1 3 ) ,	( 1, 2 9 ) 5
O h i i d f i i l i t t t e r n e r e s n c o m e a n n a n c a n c o m e	2 9 9 5 ,	4 6 6 4 6 ,
O h i d f i i l t t t e r n e r e s e x p e n s e a n n a n c a e x p e n s e	( 6 3 )	( 4 )
I b f t n c o m e e o r e a x	1, 3 6 7	4 6, 0 5 2
I t n c o m e a x e x p e n s e	( ) 6 4 0	( ) 6 4 4 3 ,
i f N h t t e n c o m e o r e e a r y	1, 0 9 6	3 9, 6 0 9
f A l l i i t t o c a o n o n e n c o m e :
f N i h t t e n c o m e o r e e a r y	1, 0 9 6	3 9, 6 0 9
O h i t t e r e q u y	( 1, 0 9 6 )	( 3 9, 6 0 9 )
T l t o a	-	-

Philly Shipyard ASA Statement of Financial Position

A i U S D h d t t m o n s n o s a n s u u	2 0 1 7	2 0 1 6	A i U S D h d t t m o n s n o s a n s u u	2 0 1 7	2 0 1 6
S S S A E T :			S E Q U I T Y A N D L I A B I L I T I E :
			S h i l t a r e c a p a	2 2, 6 6 4	2 2, 6 6 4
			S h i a r e p r e m u m r e s e r v e	1 2, 4 2 5	1 2, 4 2 5
			T l i d i i l t t o a p a n c a p a	3 5, 2 0 6	3 5, 2 0 6
			O h i t t e r e q u y	8, 4 2 4	1 0, 3 5 5
			i T l t t o a e q u y	4 3, 6 3 0	4 5, 5 6 1
			f D d l i b i l i t t e e r r e a x a y	7 0 4	1, 0 3 1
L b i d i t o a n o s u s a r y	3 1, 0 0 0	3 1, 0 0 0	f L b i d i o a n r o m s u s a r y	0 0 0 5 5,	-
S h i b i d i a r e s n s u s a r y	6 0 0 0 7,	6 0 0 0 7,	O h l i b i l i i t t t e r n o n- c u r r e n a e s	-	3
T l t t t o a n o n- c u r r e n a s s e s	9 8, 0 0 0	9 8, 0 0 0	T l l i b i l i i t t t o a n o n- c u r r e n a e s	5 5, 0 4 7	1, 0 3 4
			f L b i d i o a n r o m s u s a r y	-	2, 0 0 0 5
C h d h i l t a s a n c a s e q u v a e n s	1, 8 4 0	9 3 7	I b l t n c o m e a x p a y a e	9 6 5	2 0 8
O h t t t e r c r r e n a s s e s u	6 0 3	2 9	O h l i b i l i i t t t e r c r r e n a e s u	1 4 4	1 9 9
T l t t t o a c u r r e n a s s e s	2, 4 4 3	1, 0 0 2	T l l i b i l i i t t t o a c u r r e n a e s	1, 1 0 9	5 2, 4 0 7
T l t t o a a s s e s	1 0 0, 4 4 3	9 9, 0 0 2	T l i d l i b i l i i t t t o a e q u y a n a e s	1 0 0, 4 4 3	9 9, 0 0 2

Auditor's Report 2017

KPMG ASGunnar Sotnakk, State Authorized Public Accountant

Consideration of the Board of Directors' declaration regarding stipulation of salary and other remuneration to executive management of the Company

The General Meeting supports the Board of Directors' statement regarding establishment of salary and other benefits for the executive management pursuant to the Public Limited Liability Companies Act section 6-16a.

Corporate Governance Report 2017

Philly Shipyard ASA's corporate governance report is presented on pages 60-63 of the 2017 annual report.

Proposal from the Nomination Committee of remuneration to the members of the Board of Directors, the Audit Committee and the Nomination Committee

Board of Directors

>	B d h i o a r c a r p e r s o n	O N K	3 0 0 0 0 5
>	B d b o a r m e m e r s	N O K	2 4 0 0 0 0
>	A d i i h i t t t c o m m e e c a r p e r s o n u	O N K	5 0 0 0 0
>	A d i i b t t t c o m m e e m e m e r s u	O N K	4 0 0 0 0

Nomination Committee

Chairman and members NOK 34 000

Approval of remuneration to the auditor for 2017

The remuneration to the auditor of USD 31,283 ex.-VAT for the audit of the Company's 2017 annual accounts is approved. In addition, the Group has paid fees to KPMG of USD 7,366 ex.-VAT for services other than audit.

Board composition

Jim Miller(chairman)

Audun Stensvold (deputy chairman)

Amy E. Humphreys

Elin Karfjell

Board authorizations

• Authorization to the Board of Directors for payment of dividends.

• Authorization to the Board of Directors to purchase own shares in connection with acquisitions, mergers, de-mergers or other transactions.

• Authorization to the Board of Directors to purchase own shares for the purpose of investment or subsequent sale or deletion of such shares.

• Authorization to the Board of Directors to increase the share capital for new shipbuilding projects or other future investments within the Company's scope of operations.

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 Philly Shipyard ASA and Philly 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 Philly 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 Philly 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. Philly Shipyard ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Philly 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 Philly Shipyard group consists of many legally independent entities, constituting their own separate identities. Philly Shipyard is used as the common brand or trade mark for most of this entities. In this presentation we may sometimes use "the Company", "Philly Shipyard", "Group, "we" or "us" when we refer to Philly Shipyard companies in general or where no useful purpose is served by identifying any particular Philly Shipyard company.