Philly Shipyard — AGM Information 2019

Apr 5, 2019

Annual General Meeting

Philly Shipyard ASA Oslo, 5 April 2019

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 2018 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 2018.

• 10.Election of members to the Board of Directors.
• 11. Election of members to the Nomination Committee.
• 12. Authorization to the Board of Directors for payment of dividends.
• 13. Authorization to the Board of Directors to acquire own shares in connection with acquisitions, mergers, de-mergers or other transactions.
• 14. Authorization to the Board of Directors to acquire own shares for the purpose of investment or subsequent sale or deletion of such shares.
• 15. 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 leading U.S. shipbuilder that utilizes state-of-the-art shipbuilding facilities and practices, that is presently pursuing a mix of commercial and government work

• Company: PHLY has earned a reputation as a preferred provider of ocean-going merchant vessels with a track record of delivering quality ships, having delivered around 50% of all large ocean-going Jones Act commercial ships since 2000.
• 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: One vessel currently in the completion phase, consisting of one containership for Matson with last delivery in late March 2019
• Ownership: Aker Capital AS owns 57.6% of the company, which is listed on the Oslo Stock Exchange

Modern Shipyard

Commercial Vessels

Tankers

Container Ships

Summary of Philly Shipyard 2018 Main Events

• Placed the TOTE Maritime containership project on hold in January 2018 and ultimately cancelled it in October 2018
• Idled its facilities and reduced its workforce in line with its order backlog
• Delivered the first vessel (Hull 029) in the two-containership order for Matson in October 2018
• Enhanced its government contracting resources and systems to prepare the business to compete for and handle government work
• Launched Hull 030 in November 2018

Largest containership ever built in the U.S. – Hull 029 - the Daniel K. Inouye

Hull 029 Naming Ceremony | June 2018

Presentation of Financial Statements

Philly Shipyard ASA

Consolidated Income Statement

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

Consolidated Statement of Financial PositionAssets

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

Consolidated Statement of Financial PositionEquity & Liabilities

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

Philly Shipyard ASA Income Statement

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

Auditor's Report 2018

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 2018

Philly Shipyard ASA's corporate governance report is presented on pages 64-67 of the 2018 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	N O K	3 5 0 0 0 0
>	B d b o a r m e m e r s	O N K	2 4 0 0 0 0
>	A d i t i t t h i u c o m m e e c a r p e r s o n	O N K	0 0 0 0 5
>	A d i i b t t t u c o m m e e m e m e r s	N O K	4 0 0 0 0

Nomination Committee

Chairman and members NOK 34 000

Approval of remuneration to the auditor for 2018

The remuneration to the auditor of USD 30,943 ex.-VAT for the audit of the Company's 2018 annual accounts is approved. In addition, the Group has paid fees to KPMG of USD 22,229 ex.-VAT for services other than audit.

Board composition

Jim Miller(Chairman)

Kristian Rokke (Deputy Chairman)

Amy E. Humphreys

Elin Karfjell

Nomination committee composition

Leif-Arne Langøy (chairman)

Gerhard Heiberg

Arild Støren Frick

Board authorizations

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

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

• Authorization to the Board of Directors to acquire 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.