Vow ASA — Investor Presentation 2016

Mar 8, 2016

Fourth Quarter 2015 Presentation

March 8, 2016

Henrik Badin – CEO Christian Fr. Thyholdt - CFO

This presentation (the "Presentation") has been produced by Scanship Holding ASA ("Scanship" or the "Company") exclusively for information purposes.

This Presentation includes forward-looking statements regarding Scanship, including projections and expectations, which involve risk and uncertainty. Such statements are included without any guarantee as to their future realization. Although Scanship currently believes that the expectations regarding the Company reflected in such forward-looking statements are based on reasonable assumptions, no assurance can be given that such projections will be fulfilled. Any such forward-looking statement must be considered a long with the knowledge that actual events or results may vary materially from such predictions due to, among other things, political, economic, financial or legal changes in the markets in which Scanship does business, and competitive developments or risks inherent to the Company's business plans. Many of these factors are beyond Scanship's ability to control or predict. Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Accordingly, the Company does not accept any responsibility for the future accuracy of the forward-looking statements expressed in this Presentation or the actual occurrence of the forecasted developments. The Company does not intend, and does not assume any obligation, to update any such forward-looking statements as of any date subsequent to the date hereof.

No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including, without limitation, projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, the Company does not accept any liability whatsoever arising directly or indirectly from the use of this Presentation.

By receiving this Presentation, the recipient acknowledges that he will be solely responsible for its own assessment of the market and the market position of the Company and that he will conduct his own analysis and be solely responsible for forming his own view of the potential future performance of the businesses of the Company. This Presentation must be read in conjunction with the recent financial information, as well as other publicly disclosed information.

Nothing in this Presentation, nor any other information provided to the recipient by the Company or any of its advisers constitutes, or may be relied upon as constituting, investment advice or any financial, tax or legal advice by such persons or anybody else.

• Revenue for 4Q15 ended at NOK 54.4m, up 26% from 4Q14 • Revenue for the full year 2015 ended at NOK 200.3m, up 38% from 2014

• EBITDA in 4Q15 was NOK 2.9m, up from NOK 0.7m in 4Q14 • EBITDA for the full year 2015 was NOK 11.5m, up from NOK 2.0m in 2014
• The project backlog has increased to NOK 226m at year end 2015.
• The Management is pleased with the positive development from 2014 and will continue to focus on further growth and cost efficiency in operations.

Revenue & gross margin

• Aftersales revenue increase of 77% from 2014. Increase in USD/NOK exchange rate accounts for approx. 25 percentage points (approx. NOK 10m) of the aftersales growth
• Project revenues increased 23% from 2014
• Stable gross margin at 32%

Operational highlights 4Q15

• Main equipment deliveries to the fourth Viking Ocean Cruise newbuild at Fincantieri

• Main equipment delivery to the second Carnival Cruise Line in the Vista Class at Fincantieri
• Delivered and installed a sludge treatment system for Marine Harvest fish hatchery production facility at Steinsvik in Norway
• Completing the commissioning on the Scanship AWP system on Norwegian Escape, the latest newbuild for Norwegian Cruise Line

Carnival Cruise Line's Carnival Vista during the final part of construction at Fincnatieri's Monfalcone Shipyard

Illustration of the sludge treatment plant installed at Steinsvik for Marin Harvest

• Contract backlog has increased to NOK 226m at the end of 2015
• In October 2015, Scanship entered into an AWP retrofit contract with Oceania Cruises, a part of Norwegian Cruise Line Holding
• In November 2015, Scanship were awarded AWP newbuild contracts for two additional TUI newbuilds at Meyer Werft Turku

Scanship newbuild contract overview

Yard	Owner	Class	Scope of Supply	Year of Ship delivery
				2016	2017	2018	2019	2020
		Quantum Class	AWP	Ovation of the Seas Equipment Delivery: Q1-2015			Ovation II Equipment Delivery: Q1-2017	Ovation III Equipment Delivery: Q1-2019
		Breakaway Plus	AWP		Bliss Equipment Delivery: Q3-2015	707 Equipment Delivery: Q3-2016	708 Equipment Delivery: Q1-2018
		Dream Cruises	AWP	Genting Dream Equipment Delivery: Q2-2015	Genting Dream II Equipment Delivery: Q2-2016	NEW	NEW
		Mein Schiff	AWP	Mein Schiff 5 Equipment Delivery: Q1-2015	Mein Schiff 6 Equipment Delivery: Q1-2016	Mein Schiff 7 Equipment Delivery: Q4-2016	Mein Schiff 8 Equipment Delivery: Q2-2017
		Oasis Class	AWP	Harmony of the Seas Equipment Delivery: Q1-2014		B34 Equipment Delivery: Q3-2015
		Meraviglia Class	TOTAL (AWP+WASTE MGMT)		E34 Equipment Delivery: Q4-2015		F34 Equipment Delivery: Q2/Q4-2017
		Viking Ocean Cruises	TOTAL (AWP+WASTE MGMT)	Viking Sea Equipment Delivery: Q3-2014	Viking Sky Equipment Delivery: Q4-2014	Hull 6246 Equipment Delivery: Q4-2015/Q1-2016
		Vista Class	AWP	Carnival Vista Equipment Delivery: Q3-2014	Hull 6243 Equipment Delivery: Q4-2015
		SilverSea Cruises	TOTAL (AWP+WASTE MGMT)		Silver Muse Equipment Delivery: Q2-2015/Q3-2015

Status retrofit – strong and unchanged potential

• High tendering activity expected to bring orders - higher industry focus
• IMO decision on Helcom implementation is expected to re-boost demand
• Oceania Cruises placed an order with Scanship for a Helcom compliant system on the Oceania Sirena
• AWP retrofit cruise market size is estimated to be ~ NOK 2.3bn

382 116 128 138 ~ NOK 2.3bn

Total Already installed AWP Excluded Retrofit potential

Oceania Sirena to be retrofitted with Scanship AWP during March/April 2016, the new system to meet IMO Marpol MEPC 227(64)

Condensed consolidated income statement

	Unaudited	Unaudited	Unaudited	Audited
(NOK 1 000)	4Q15	4Q14	FY 2015	FY 2014
Total operating revenue	54 365	43 188	200 273	145 631
Cost of goods sold	36 946	30 373	136 347	99 308
Gross Margin	17 419	12 815	63 926	46 323
Gross Margin %	32%	30%	32%	32%
OPEX	14 519	12 069	52 463	41 914
EBITDA	2 899	747	11 463	2 046
Operating profit (EBIT)	1 546	175	8 780	867
Net finance	783	-14 296	-1 654	-13 483
Profit before tax	2 329	- 14 120	7 124	-12 617

• Development in employee expenses shows increased efficiency in project execution

• Higher Other operating expenses are targets for improvement

• The Financial instruments that matured in 4Q15 were all secured at lower currency exchange rates

• Scanship's hedging strategy is to secure all EUR-revenues from projects, that are not directly related to EUR-purchases

• Forward share of hedging on new contracts is reduced due to larger share of purchases in EUR

Currency effects on financial items in 4Q 2015

(NOK 1 000)	Realized	Unrealized	Total
Agio	837	580	1 417
Disagio	- 721	- 148	-869
Financial Instruments	- 2 744	3 223	479
Sum	- 2 728	3 655	1 027

Financial Instruments at end 4Q 2015

		Maturity
(EUR 1 000)	2016	2017	Total
Amount secured through FI	€ 4 010	€ 4 169	€ 8 180
Average EUR/NOK Rate	8.37	8.76	8.57
% of estimated EUR-payments	65%	75%	70%

Consolidated condensed cash flow statement

• Prepayment from customer of approx. NOK 7m in 4Q15 strengthens cash flow from operating activities
• Late payments from yard of approx. NOK 6m has reduced cash and reduced net cash flow from operating activities. Payment received in 1Q16
• Investing activities mainly from product development
• Net cash flow from financing activities due to increased utilisation of overdraft facility

	Unaudited
(NOK 1 000)	4Q15
Profit before income tax	2 329
Net cash flow from operating activities	14 546
Net cash flow from investing activities	-4 473
Net cash flow from financing activities	3 981
Net change in cash and cash equivalents	14 054
Cash and cash equivalents ingoing balance	5 424
Cash and cash equivalents at end of period	19 478

Intangible assets – Product development

Product development assets NOK 25,1m

• Total product development assets of NOK 25.1m, up from NOK 18.9m last year

• The 70% owned joint venture CHX Maritime Inc. is consolidated on 100% basis. The majority of the product development cost in that specific project has so far been financed by the joint venture partners

	Unaudited	Audited
(NOK 1 000)	31.12.2015	31.12.2014
ASSETS:
Total non-current assets	28 378	20 845
Current Assets:
Inventories	5 677	5 684
Trade receivables	61 182	32 577
Contracts in progress	42 354	75 064
Other receivables	11 526	5 258
Cash and cash equivalents	17 478	3 821
Total current assets	140 217	122 404
Total assets	168 596	143 248

• Increase in non-current assets mainly due to product development activities
• Increase in trade receivables and trade creditors mainly due to high equipment delivery activity in 4Q15
• Significantly overdue trade receivables at year end 2015 were approx. NOK 6m. The overdue funds were received in 1Q16

(NOK 1 000)	Unaudited 31.12.2015	Audited 31.12.2014
EQUITY AND LIABILITIES
Total equity	50 562	45 113
Total non-current liabilities	3 686	1 694
Current liabilities:
Current borrowings	52	-
Trade creditors	36 703	16 669
Contract accruals	27 668	35 379
Financial instruments	9 344	10 536
Income tax payable	653	5
Bank overdraft	27 330	27 674
Other current liabilities	12 508	6 179
Total current liabilities	114 348	96 441
Total liabilities	118 034	98 135
Total equity and liabilities	168 596	143 248

• Other receivables and other current liabilities include NOK 5.5m in provisions for German VAT, to be invoiced and paid in 1Q16

Scanship Holding ASA

Lysaker Torg 12 P.O. Box 465 1327 Lysaker Norway

Phone: +47 67 200 300 E-mail: mail@scanship.no

www.scanship.no