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Disclaimer This presentation should be read in conjunction with Vard Holdings Limiteds results for the period ended 30 June 2013 in the SGXNet announcement. Financial figures are presented according to SFRS. This presentation may contain

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This presentation should be read in conjunction with Vard Holdings Limited’s results for the period ended 30 June 2013 in the SGXNet announcement. Financial figures are presented according to SFRS. This presentation may contain forward-looking statements that involve risks and uncertainties. Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements,

  • r industry results, to be materially different from any future results, performance or

achievements expressed or implied by such forward-looking statements and financial information. Such forward-looking statements and financial information are based on numerous assumptions regarding our present and future business strategies and the environment in which we will

  • perate in the future. As these statements and financial information reflect our current views

concerning future events, these statements and financial information necessarily involve risks, uncertainties and assumptions. Actual future performance could differ materially from these forward-looking statements and financial information. Y

  • u are cautioned not to place undue

reliance on these forward looking statements, which are based on the Company’s current view of future events.

Disclaimer

11.07.2013 | Page 2

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European network for Health Technology Assessment | JA2 2012-2015 | www.eunethta.eu

2Q 2013 Results Presentation

Vard Holdings Limited

11 July 2013

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  • Revenue of NOK 2 945 million for 2Q 2013, down from NOK 3 337 million

in 2Q 2012

  • EBITDA of NOK 121 million for 2Q 2013, down from NOK 460 million in

2Q 2012

  • EBITDA margin, representing EBITDA to total operating revenues, of 4.1%

for 2Q 2013, down from 13.8% in 2Q 2012

  • Order intake of NOK 1 209 million in 2Q 2013. Order intake may vary

significantly on a quarter-by-quarter basis

  • 41 vessels in the order book as at 30 June 2013, of which 22 of own design
  • New shipyard in Brazil, Vard Promar, started production on schedule in

June; yard construction to be completed within 3Q 2013

  • Brazil operationssignificantly affecting group performance
  • Negative contribution from Vard Niterói during the quarter, and drag on margins

until delivery of last vessel in current order book in Niterói

  • Higher than expected start-up cost in Vard Promar
  • Positive outlook for new order wins in 2H 2013

Key messages

11.07.2013 | Page 4

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Business update

2Q 2013

11.07.2013 | Page 5

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1 AHTS

  • Far Statesman from Vard Langsten (Norway) to

Farstad Shipping

5 PSVs

  • Far Starling from Vard Vung Tau (Vietnam) to

Farstad Shipping

  • Island Crown from Vard Brevik (Norway) to

Island Offshore

  • Siem Atlas from Vard Niterói (Brazil) to

Siem Offshore

  • Fanning Tide from Vard Søviknes (Norway) to

Tidewater

  • Troms Lyra from Vard Aukra (Norway) to

Troms Offshore

1 OSCV

  • Skandi Bergen from Vard Søviknes (Norway) to DOF

1 Other (Forrage Carrier)

  • Eidsvaag Pioner from Vard Aukra (Norway) to

Eidsvaag

Three new vessel contracts secured in 2Q 2013

  • 1 Offshore support vessel for Island Offshore
  • 1 PSV for Simon Møkster Shipping
  • 1 Offshore Tug for Buksér og Berging

Vessel deliveries New contracts As at 30 June 2013, the Group had 41 vessels in the order book, 22 of which will be of VARD’s own design.

Vessel deliveries and new contracts – 2Q 2013

11.07.2013 | Page 6

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2008 2009 2010 2011 2012 1H 2013 2008 2009 2010 2011 2012 1H 2013

Order book value at the end of the period (NOK million)1) New order intake during the period (NOK million)1)

16 411 17 031 8 Vessels 4 458 27 Vessels 12 555 16 675 28 Vessels 11 117 15 096 16 Vessels 9 501

1) Includes firm orders only. Includes variation orders and trading packages

4 Vessels 5 692 22 389 13 950 6 Vessels 3 991

Order book development

2Q 2013: NOK 1 209 million 1Q 2013: NOK 2 782 million

11.07.2013 | Page 7

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Order book status

Order book as of 30 June 2013 (# of vessels)

11 20 7 3 22 13

10 20 30 2012 2013 2014 2015 2016

Delivery year Delivery year Norway / Romania Brazil Vietnam Total 2016 3 Other 3 2015 1 PSV 2 OSCV 1 Other 3 Other 7 2014 2 AHTS 4 PSV 5 OSCV 3 Other 2 AHTS 1 PSV 2 Other 1 PSV 20 2013 3 AHTS 10 PSV 3 OSCV 4 Other 1 AHTS 1 PSV 2 PSV 24 2012 15 PSV 1 OSCV 2 Other 1 AHTS 1 PSV 1 AHTS 1 PSV 22 delivered 11.07.2013 | Page 8

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Order book by region and vessel type

By Region Order book 31 Mar. 2013 Deliveries 2Q 2013 Order intake 2Q 2013 Order book 30 June 2013 Norway / Romania 31 6 3 28 Brazil 13 1

  • 12

Vietnam 2 1

  • 1

Total 46 8 3 41 By Vessel Type Order book 31 Mar. 2013 Deliveries 2Q 2013 Order intake 2Q 2013 Order book 30 June 2013 AHTS 7 1

  • 6

PSV 14 5 2 11 OSCV 10 1

  • 9

Other 15 1 1 15 Total 46 8 3 41

11.07.2013 | Page 9

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Operations update – Brazil (Vard Niterói)

  • Successful delivery of one PS

V during the quarter

  • Business environment in Brazil still challenging; characterized by high

personnel turnover and very high pressure in the subcontracting market

  • Vard Niterói still suffering from overload situation; further delays and cost
  • verruns incurred
  • Dependency on outsourcing of hull construction a major driver of

deteriorating performance during the second quarter – but last hull built

  • utside the yard has now been delivered
  • Mitigating actions
  • Reorganization of production beginning to bear fruit in terms of

productivity

  • Strict follow-up of subcontracted work
  • Increased use of expatriates from Norway and Romania to strengthen

the organization

  • Overload situation will naturally be reduced from 4Q as a result of

project progress

11.07.2013 | Page 10

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Pro33 Pro32 Pro31 Pro30 Pro29 mar-13 jun-13 sep-13 dec-13 mar-14 jun-14 sep-14

2Q 2013 4Q 2014 3Q 2013 4Q 2013 2Q 2014 3Q 2014 1Q 2014

Vard Niterói: Revised delivery schedule

DELIVERED

11.07.2013 | Page 11

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Operations update – Brazil (Vard Promar)

  • Operations commenced as scheduled with first steel cutting in J

une 2013; shipyard construction to be completed within 3Q 2013

  • Capex budget on target but higher-than-expected pre-operational expenses,

and revised estimates of start-up cost

  • Negative contribution from two hulls being built at external shipyard
  • Recruitment and training ongoing
  • T
  • tal number of employees currently around 350
  • Recruitment progressing above expectations, with many experienced

workers joining the organization

  • Training program ongoing; first welders in the shipyard are certified
  • State-of-the-art new facilities offer opportunities for growth, better
  • perational stability, and a substantially improved cost position
  • Foundations in place for new order intake and sustainable operations in

Brazil

11.07.2013 | Page 12

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Production started at new yard Vard Promar

First steelplates arriving at Vard Promar First steel cut

11.07.2013 | Page 13

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Operations – Norway, Romania & Vietnam

  • Operations elsewhere in the Group not affected by the

situation in Brazil

  • High workload in Romania
  • Completion of several major yard investments in Tulcea,

Romania, in Q3 2013, giving an excellent platform for future competitiveness

  • Successful delivery of seven projects from Norwegian yards,

including prototype vessels and projects with very short lead times

  • Sub-optimal utilization in Vietnam following delivery of

second-to-last vessel in the order book

11.07.2013 | Page 14

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Financial highlights

2Q 2013

11.07.2013 | Page 15

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Revenues and margins

2 811 2 945 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000 5 500 6 000 6 500 1H 2012 1H 2013 3 337 2 747 5 692 6 148

Revenues (NOK million) EBITDA (NOK million) and EBITDA Margin (%)

460 121 100 200 300 400 500 600 700 800 900 1 000 1H 2012 1H 2013 393 304 425 853 13.9% 7.5% 11.07.2013 | Page 16

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Statement of income – major items

(NOK million) 2Q ended 30 June D( %) 1H ended 30 June D( %) 2013 2012 2013 2012 Revenue 2 945 3 337

  • 11.7%

5 692 6 148

  • 7.4%

Materials, subcontract cost and others (2 163) (2 272)

  • 4.8%

(3 986) (4 102)

  • 2.8%

Salaries and related costs (518) (484)

7.0%

(1 003) (958)

4.7%

EBITDA 121 460

  • 73.7%

425 853

  • 50.2%

EBITDA % 4.1% 13.8%

n/ m

7.5% 13.9%

n/ m

Operating profit 20 431

  • 95.4%

295 793

  • 62.8%

Net financial income / (cost) 16 12

33.3%

4 22

  • 81.8%

Profit before tax 35 444

  • 92.1%

299 817

  • 63.4%

Profit for the period (44) 278

  • 116%

136 548

  • 75.2%

Note: Write down of remaining goodwill related to the Niterói yard in Brazil of NOK 70m included in Q2 2013. High effective tax rate in the period mainly due to losses in Niteroi, without the corresponding deferred tax asset recognized, as well as the aforementioned write down.

11.07.2013 | Page 17

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3 305 2 418 1 969 24 19 54

500 1 000 1 500 2 000 2 500 3 000 3 500 30 June 2012 31 Dec 2012 30 Jun 2013 Restricted Cash Non-restricted Cash

Cash and cash equivalents, and construction loans

(1) Cash and cash equivalentsless sum of short-term and long-term interest bearing liabilities, excluding construction financing

Construction Loans (NOK million)

3 351 3 238 500 1 000 1 500 2 000 2 500 3 000 3 500 31 Dec 2012 30 Jun 2013

Net Cash (NOK million)1

1 858 1 266 500 1 000 1 500 2 000 31 Dec 2012 30 Jun 2013

Cash and Cash Equivalents (NOK million)

2 437 3 329 2 040 11.07.2013 | Page 18

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Major balance sheet items

(NOK million) As at 30 June 2013 31 December 2012 Non-current assets 2 663 2 410 Current assets 10 197 10 404 Total assets 12 860 12 814 Total equity 3 420 3 227 Loans and borrowings and construction loans 3 430 3 385 Trade and other payables and construction work in progress 4 593 4 319 Other current liabilities 622 1 096 Long-term loans and borrowings 582 545 Other non-current liabilities 213 242 Total liabilities 9 440 9 587 Total equity and liabilities 12 860 12 814

11.07.2013 | Page 19

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Cash flow highlights

(NOK million) 2Q ended 30 June 1H ended 30 June 2013 2012 2013 2012 Cash flows from operating activities 58 750 (277) 1 007 Cash flows from investing activities (176) (195) (328) (310) Cash flows from financing activities 139 (367) 165 (428) Net change in cash and cash equivalents 21 188 (440) 269 Cash and cash equivalents excluding restricted cash at the beginning of the financial period 1 969 3 107 2 418 3 035 E ffects of currency translation differences (4) 10 9 1 Cash and cash equivalents excluding restricted cash at the end of the financial period 1 986 3 305 1 986 3 305 Restricted cash at the end of financial period 54 24 54 24 Cash and cash equivalents at the end of the financial period 2 040 3 329 2 040 3 329

11.07.2013 | Page 20

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Earnings per share

Note: Earningsper ordinary share for the financial period attributable to equity holders of the parent. SGD amounts are translated from NOK based on the exchange rates prevailing at the reporting dates.

2Q ended 30 June 1H ended 30 June 2013 2012 2013 2012 Earnings for the period (NOK millions)

  • 20

279 168 548 Earnings for the period (SGD millions)

  • 4

59 36 116 Weighted average number of shares (millions) 1 180 1 180 1 180 1 180 Earnings per share (NOK)

  • 0.02

0.24 0.14 0.46 Earnings per share (SGD cents)

  • 0.34

5.02 3.05 9.85

  • Adj. weighted average number of shares (millions)

1 181 1 191 1 181 1 191 Diluted earnings per share (NOK)

  • 0.02

0.23 0.14 0.46 Diluted earnings per share (SGD cents)

  • 0.34

4.97 3.05 9.76 Exchange rates (SGD/ NOK) 4.606 4.716 4.606 4.716

11.07.2013 | Page 21

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Net asset value per share

Note: Net asset value at the end of the financial period, and at the end of the last financial year, attributable to equity holders of the parent. SGD amounts are translated from NOK based on the exchange rates prevailing at the reporting dates.

As at 30 June 2013 31 December 2012 Net asset value at the end of the period (NOK millions) 3 385 3 162 Net asset value at the end of the period (SGD millions) 735 694 Number of shares (millions) 1 180 1 180 Net asset value per ordinary share (NOK) 2.87 2.68 Net asset value per ordinary share (SGD) 0.62 0.59 Exchange rate (SGD/ NOK) 4.606 4.557

11.07.2013 | Page 22

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Outlook

2Q 2013

11.07.2013 | Page 23

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Outlook

  • Positive outlook for new order wins in 2H 2013 despite fiercely competitive

market and uncertain macro outlook

  • Opportunities for sizeable projects in the subsea support and construction

vessel segment

  • Fewer but larger orders expected
  • Increased exploration and strong rig activities driving demand for support

vessels

  • Market balance improving for large AHTS with few vessels currently

under construction world wide

  • Stronger than expected PSV market but still cautious outlook due to

supply growth

  • Focus on managing high workload in Romania and utilization of new major

investments

  • Focus on securing more work for the Vietnam yard
  • Ongoing operational challenges in Niterói
  • Successful ramp-up of the new Vard Promar yard key to future performance

and growth in Brazil

11.07.2013 | Page 24

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Q&A

Q&A

2Q 2013