[PPT] - DOF Subsea Group Agenda Accounting principles In brief Recent PowerPoint Presentation

SLIDE 1

Q1 2014 Presentation

DOF Subsea Group

SLIDE 2

DOF Subsea

Agenda

Accounting principles In brief Recent events Group overview Contract status Financials Outlook Appendix

SLIDE 3

Accounting principles – IFRS 11

DOF Subsea 3

Effective from 1st January 2014

DOF Subsea has implemented IFRS 11, changing the consolidation method from proportional consolidation to applying the equity method.

Internally DOF Subsea still

applies proportional consolidation for management reporting

Unless otherwise stated,

figures in this presentation is according to management reporting.

The table to the right

summarises the effect of the implementation of IFRS 11 on the main items from the financial statements.

See DOF Subsea financial

report Q1 2014 note 1 and 2 for further details.

SLIDE 4

DOF Subsea Group – In brief

DOF Subsea 4

Fleet

One of the largest subsea vessel owners in the world
Owns and operates a fleet of 23 vessels, plus 5 newbuilds on order
In addition 4 vessels on long-term charter
The market value of owned vessels in operation is NOK 16 billion, with a value adjusted

age of approx. 5 years

Operates 51 ROVs and 7 ROVs on order

Global organization

Head office in Bergen
Regional offices in Australia, Singapore, Norway, UK, Angola, US, Canada and

Brazil

Total of 2 575 employees

Subsea employees:

1 575

Of which offshore engineers and project staff:

1 230

Marine crew approx.:

1 000

Norway Brazil Canada US UK Asia Pacific Angola

332 393 49 110 336 335 20

SLIDE 5

DOF Subsea Group – In brief

DOF Subsea 5

Key figures

Back-log incl. options NOK 33 billion Market value of fleet NOK 16 billion Number of shares 119 733 714

Total Per share

Book equity NOK 5.7 billion NOK 47.29 Value adj. equity NOK 8.7 billion NOK 72.61 Book equity ratio 29.4 % Value adj. equity ratio 39.0 %

27.7 % CAGR 19.4 % CAGR

Quarterly figures

0% 5% 10% 15% 20% 25% 30% 35% 40%

200

400 600 800 1 000 1 200 1 400 1 600 1 800

Q1 2011 Q1 2012 Q1 2013 Q1 2014

NOK million

Operating revenue EBITDA EBITDA margin * According to internal Management reporting

SLIDE 6

Key credit metrics

DOF Subsea 6

* According to internal Management reporting

0,50

1,00 1,50 2,00 2,50 2009 2010 2011 2012 2013 Last 4 Qs

Interest Coverage

2,00

4,00 6,00 8,00 10,00 12,00 2009 2010 2011 2012 2013 Last 4 Qs

NIBD/EBITDA

0,10

0,20 0,30 0,40 0,50 0,60 0,70 0,80 0,90 1,00 2009 2010 2011 2012 2013 Last 4 Qs

NIBD/Total assets

0,10

0,20 0,30 0,40 0,50 0,60 0,70 0,80 0,90 1,00 2009 2010 2011 2012 2013 Last 4 Qs

Debt/Total assets

SLIDE 7

Recent events

DOF Subsea 7

Fleet

Chartered the JAC vessel Chloe Candies for a 1 + 1 year period
Chartered the JAC vessel Ross Candies for a 1 + 1 year period
Skandi Bergen was delivered to new owners in beginning of January
Skandi Aker purchase options was exercised by AKOFS 2 AS, transaction in February 2015

Contracts

Statoil call-off under existing frame agreement, utilizing Geosund for minimum 4 months in

2014 and 8 months in 2015

Several subsea contracts in the Atlantic region, including AUV work for Statoil, replacement of

risers for Maersk and turret mooring and riser installation for the Gina Krogh FSO.

Several subsea contracts in the North America region, increasing the utilization of the vessels

Skandi Inspector, Harvey Deep-Sea, Chloe Candies and Ross Candies

Several contracts awarded in Asia Pacific, including mooring installation and IMR services,

utilizing Skandi Hercules, Skandi Singapore and Skandi Hawk.

Australian Customs and Border control extended the charter on Ocean Protector with 6 months
Subsea 7 extended the charter on Skandi Seven with 2 years, firm until end March 2017

Finance

Repayment of DOFSUB04 in April, with a total net cash effect of NOK 453.5 million

SLIDE 8

DOF Subsea

Group overview

SLIDE 9

Ownership structure

DOF Subsea 9

Modern high-end fleet and equipment
A workforce of 2 575 highly skilled employees
23 owned subsea vessels in operation
5 vessels on order
4 vessels on charter
50 ROVs and 1 AUV in operation
7 ROVs on order
Leading subsea contractor

51% 49% 100%

DOF ASA FIRST RESERVE CORPORATION DOF SUBSEA HOLDING AS DOF SUBSEA AS

SLIDE 10

DOF Subsea AS

DOF Subsea Asia Pacific Singapore Australia Indonesia Malaysia Mashhor DOF Subsea (50%) Brunei DOF Subsea Atlantic UK Angola Norway Arctic Russia DOF Subsea North America US Canada DOF Subsea Brazil Management companies DOF Management (34 %) Marin IT (35 %) Engineering companies CSL Semar (50%) Ship/asset

wning

companies DOF Subsea Rederi DOF Subsea Rederi II DOF Installer (83.66 %) DOFTECH (50 %) TECHDOF (50 %) DOF Subsea ROV

DOF Subsea 10

DOF Subsea Group structure

DOF Subsea divided into regions, engineering

companies and asset-owning companies

Regions, engineering companies and asset-owning

companies are profit centers

Head office in Bergen

SLIDE 11

GEOGRAPHICAL FOCUS AREAS

Perth Rio de Janeiro Buenos Aires Singapore Houston

St. Johns

Aberdeen Cairo Brunei Macaé Jakarta Manila Angola Moscow Bergen (159) (393) (20) (335) (668)

DOF Subsea - A global subsea player

11 DOF Subsea Malaysia

SLIDE 12

DOF Subsea fleet evolution

2 000

4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 4 8 12 16 20 24 28

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

NOK million Number of operated vessels

Owned vessels Chartered vessels MV of owned fleet (r.a.)

MV of fleet

DOF Subsea timeline

DOF Subsea 12

2005 - 2009

Fleet: From 11 to 18 vessels

DOF Subsea was established in

2005

DOF Subsea was listed on the

Oslo Stock Exchange in 2005, and taken private by DOF ASA and FRC in 2008

Established a global footprint,

present in all major offshore oil & gas regions

Built a global organization through
rganic growth and acquisitions
Expanded the fleet by taking

delivery of 9 newbuilds

2010

Fleet: 21 vessels

Jan: Delivery of Skandi

Aker

Feb: Sale of Geo

Challenger

Jun: Acquisition of SWG
Jul: Delivery of Skandi

Vitoria and Skandi Skolten

Dec: Delivery of Skandi

Hercules

JV with Technip
Developed global

Business Management System, and achieved global ISO certification

2011

Fleet: 24 vessels

Feb: Delivery of Skandi

Niteroi

May: Sale of

Geosounder

Jun: Acquisition Skandi

Constructor

Jul: Delivery of Skandi

Skansen

Sep: Delivery of Skandi

Singapore

2012

Fleet: 25 vessels

Mar: Sale of OSCV

newbuild

Mar: Signed OSCV

newbuild contract

Mar: Chartered Skandi

Hawk

2013

Fleet: 26 vessels

Feb: Signed OSCV

newbuild contract

Feb: Chartered Harvey

Deep-Sea

Mar: Sale of Geobay
Jun: Delivery of Skandi

Bergen

Aug: Signed newbuild

contracts for 4 x PLSVs

Nov: Chartered

Normand Reach

Global ISO recertification

2014

Fleet: 27 vessels

Jan: Delivered Skandi

Bergen to new owners

Mar: Chartered Ross

Candies

Mar: Chartered Chloe

Candies

DOF Subsea employees

200 400 600 800 1 000 1 200 1 400 1 600 1 800

2008 2009 2010 2011 2012 2013 Q1 2014

Number of employees

Employees

SLIDE 13

DOF Subsea’s main presence is in segments with medium to high

barriers to entry and high complexity of operations

Higher margins and earnings beyond the time charter rates
DOF Subsea is gradually building engineering capabilities

13 DOF Subsea

Level of barriers to entry Increased engineering requirement

Complex subsea operations Marine transport/ services

Complexity and size of operations Increased system requirement

Level of industry barriers to entry

SLIDE 14

New high-end fleet

DOF Subsea 14

Majority of the fleet delivered after 2007
Industry leading value adjusted average fleet age of approx. 5 years
High-end vessels capable of a wide scope of operations, world wide
1,00

2,00 3,00 4,00 5,00 6,00 7,00 8,00 Average fleet age Value adjusted

Newbuild 18 % 2007 - 2013 57 % 2000 - 2006 21 % Before 2000 4 %

Building year DOF Subsea fleet

SLIDE 15

Business management

Global business management system accredited by DNV to:

Business Management System

ISO 9001: 2008

Health and Safety System

OHSAS 18001:2007

Environmental Management System

ISO 14001:2004

Global recertification by DNV December 2013

DOF Subsea 15

2009

SLIDE 16

Substantial HSE-improvement over time
High number of safety
bservations reported

shows commitment to HSEQ

HSEQ key statistcs

DOF Subsea 16

No. of safety observations

500 1000 1500 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

* Figures represent number of safety observations

2013 2014

500 000 1 000 000 1 500 000 2 000 000 2 500 000 3 000 000 3 500 000 4 000 000 2 4 6 8 10 12 2005 2006 2007 2008 2009 2010 2011 2012 2013

Man-hours Frequence: Incident / 1 000 000 man- hour

DOF Subsea HSE-statistics

LTI (l.h.a.) TR (l.h.a.) Man-hours (r.h.a.)

SLIDE 17

DOF Subsea

Projects

SLIDE 18

DOF Subsea – Life-of-field services

DOF Subsea 18

DOF Subsea offers integrated subsea solutions across life-of-field
Field development
Production phase
Field abandonment / decommissioning

SLIDE 19

DOF Subsea – Projects

DOF Subsea has built a global project
rganization over the last 9 years
DOF Subsea has developed the project

business gradually

Increased project activity driving growth
Project business going forward
Hire more engineers
Gradually increase the complexity
f work done (Step by Step)
Build a larger project back-log
Mix between owned and chartered

in vessels

DOF Subsea 19

2012 2013 Subsea projects 3776 4971 Chartering of vessels 1472 1609 Total 5248 6580 1 000 2 000 3 000 4 000 5 000 6 000 7 000 1 000 2 000 3 000 4 000 5 000 6 000 7 000

NOK million

Operating income by segment

Chartering of vessels Subsea projects Total

* According to internal Management reporting

SLIDE 20

DOF Subsea – Projects

DOF Subsea 20

OMV Emergency FPSO Mooring System Repair

Skandi Singapore Q1 ‘12 &’13,

Skandi Hercules, Skandi Skansen, Skandi Atlantic, Skandi Emerald Q3 & Q4 ‘13

Initially routine IRM scope including

saturation diving in NZ. Emergency FPSO Mooring System Repair, stabilising vessel, Engineering, Project Management and replacement vessel for Galoc EPIC project.

Innovation for diverless solution to

handle significant loads involved. Developed and built the equipment in time Hercules arrived in New Zealand.

SLIDE 21

DOF Subsea – Projects

DOF Subsea 21

PTSC Lamson FPSO Mooring Installation

Location 120km east of Vung Tau, Offshore Vietnam
Skandi Hercules, Skandi Singapore, two third party

AHTS and a third party Tug & Barge from Q3 2013 to Q2 2014

Project Management and Engineering: Engineering and

detailed design for all Temporary Equipment, Free Issued Equipment and Installation Aids

Phase 1 - Q3 2013: Installation and pre-tensioning of 9

x 1.83m diameter 30m long Anchor pile c/w 500m-750m

f 117m/130mm R3 studless mooring chain ( pre-tense

load of 150Te)

Phase 2 - Q2 2014: Tow out and hook up of FPSO

PTSC Lamson including installation; Installation of two Mid Water Arches and gravity base, 5 flexible risers, 2 umbilicals and associated saturation diver tie-ins, leak testing and pre-commissioning

SLIDE 22

DOF Subsea

Contract status

SLIDE 23

Contract coverage vessels

DOF Subsea 23

FIRM CONTRACTS OPTIONAL PERIOD CONSTRUCTION PERIOD Chartered in vessels

SLIDE 24

2014 2015 2016 2017 2018 2019 2020 2021 Firm 16 13 11 10 8 7 5 4 Option 17 16 16 15 14 12 11 10

5

10 15 20 25 30 35 NOK billion

Contract coverage vessels

DOF Subsea 24

DOF Subsea Group has solid cash flow visibility over the next 3-5 years
By March 2014 the total back-log (incl. options) was approx. NOK 33 billion
Firm contracts counts for approx. NOK 16 billion
Options counts for approx. NOK 17 billion

SLIDE 25

DOF Subsea

Financials

SLIDE 26

Condensed profit & loss (IFRS 11)

Operating income increased from NOK 1 156 million in Q1 2013 to NOK 1 451 million in Q1 2014.
EBITDA (excl. gain on sale of assets) increased from NOK 308 million in Q1 2013 to NOK 459 million in Q1 2014.
EBIT (excl. gain on sale of assets) increased from NOK 130 million in Q1 2013 to NOK 336 million in Q1 2014.

DOF Subsea 26 * The financial numbers are presented according to IFRS 11. See DOF Subsea financial report Q1 2014 note 1 and 2 for details.

SLIDE 27

Condensed balance sheet (IFRS 11)

From year end 2013 non-current assets has decreased from NOK 15 076 million to NOK 14 747 million
From year end 2013 cash and cash equivalents has decreased from NOK 1 752 million to NOK 1 676 million
Total liabilities as per 31st March 2014 was NOK 12 224 million
Net interest bearing debt of NOK 9 149 million as per 31st March 2014
Book equity of NOK 5 662 million giving a ratio of 31.7 % to total assets as per 31st March 2014
Value adjusted equity of NOK 8 694 million giving a ratio of 41.6 % as per 31st March 2014

DOF Subsea 27

SLIDE 28

Quarterly performance (excl. asset sales)

DOF Subsea 28

20.3 % CAGR 28.2 % CAGR

NOK million

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Operating income 730 944 851 1 080 900 1 028 1 152 1 246 1 223 1 384 1 354 1 288 1 225 1 679 1 804 1 871 1 530 EBITDA 186 306 282 320 241 325 370 406 411 470 489 417 329 471 595 550 502 EBITDA margin 25.4% 32.4% 33.2% 29.7% 26.8% 31.6% 32.1% 32.6% 33.6% 34.0% 36.1% 32.4% 26.9% 28.1% 33.0% 29.4% 32.8% Current assets 2 467 2 919 3 192 3 366 2 829 3 003 2 938 2 923 2 782 2 962 2 704 2 612 3 077 3 319 3 119 3 470 3 247 Non-current assets 11 738 12 499 13 325 14 179 14 520 15 089 16 178 16 305 16 455 16 230 16 056 16 012 16 043 16 344 16 330 16 340 16 012 Total assets 14 205 15 418 16 517 17 545 17 349 18 092 19 117 19 228 19 238 19 192 18 760 18 624 19 120 19 663 19 450 19 810 19 258 Current liabilities 2 035 2 496 2 942 2 167 2 311 2 458 2 640 2 637 2 543 2 495 2 260 1 989 2 000 2 805 2 808 3 167 3 605 Non-current liabilities 8 350 8 867 9 109 10 154 9 946 10 542 11 694 11 759 11 723 11 735 11 439 11 534 12 051 11 862 11 474 11 427 9 991 Equity 3 819 4 054 4 466 5 224 5 091 5 092 4 782 4 832 4 970 4 963 5 061 5 102 5 069 4 996 5 167 5 216 5 662

0% 5% 10% 15% 20% 25% 30% 35% 40%

200

400 600 800 1 000 1 200 1 400 1 600 1 800 2 000

Q1 2010Q2 2010Q3 2010Q4 2010Q1 2011Q2 2011Q3 2011Q4 2011Q1 2012Q2 2012Q3 2012Q4 2012Q1 2013Q2 2013Q3 2013Q4 2013Q1 2014

NOK million Operating income EBITDA EBITDA margin

* According to internal Management reporting

SLIDE 29

Debt maturity profile

DOF Subsea 29

DOFSUB04

NOK 750 million
Maturity April 2014
Net NOK 453.5 million

DOFSUB05

NOK 750 million
Maturity April 2016
Net NOK 750 million

DOFSUB06

NOK 700 million
Maturity Oct 2015
Net NOK 700 million

DOFSUB07

NOK 1 300 million
Maturity May 2018
The figures reflects amortization and balloon payments on debt drawn as per 31st March 2014.
Debt maturity profile excludes approx. NOK 0.5 billion in payments to Eksportfinans which is serviced by corresponding

amount of restricted cash.

* As per 31st March 2014

Debt maturity profile DOF Subsea AS level, 2014E – 2018E

500

1 000 1 500 2 000 2 500 2014E 2015E 2016E 2017E 2018E 2019E After Bond Loan Bank Debt Balloons

SLIDE 30

Stable asset values over the last years

DOF Subsea 30 200 300 400 500 600 700 800 900 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 NOK million Skandi Seven Ocean Protector Geoholm Skandi Patagonia

Fair market values of the DOF Subsea fleet have been stable over time.

* As per 31st March 2014

Market value development

SLIDE 31

Asset coverage

DOF Subsea 31

The figures reflects amortization and balloon payments on debt drawn as per 31st March 2014, including newbuilds to be

delivered assuming standard DOF Subsea leverage. Bonds not included.

Gearing forecast – summary

Total assets (NOK billion) Market value

Vessels 16.2 Other equipment (a) 1.3

Total assets 17.5

Note: vessel values as per 31st March 2014

(a) Includes ROVs, AUV, diving systems and other equipment

Combined market value of DOF Subsea’s fleet is NOK 16 billion
Vessel level gearing on the existing fleet is estimated to 44 % at year end 2014, decreasing to 38 % at year end 2015
Provides a significant equity cushion on top of the existing vessel level financing
Significant gearing reduction on the existing fleet in the years to come

0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % 2014E 2015E 2016E 2017E 2018E 44% 38% 35% 33% 29% 56% 62% 65% 67% 71% Loan to value Market Value Cushion

SLIDE 32

Improved credit metrics going forward

DOF Subsea 32

Improved credit metrics going forward

Extremely strong back-log provides stable earnings Diversified blue- chip customers reduce counterparty risk Value added services provide increased earnings potential New, high-end fleet provides safe collateral Strong bank and investor relationships provide access to credit Spare leveraging capacity on existing fleet Robust liquidity buffer

Subsea market looks favourable

SLIDE 33

DOF Subsea

Outlook

SLIDE 34

Mixed fundamentals for subsea activity

DOF Subsea 34

Demand

Stable oil price
Expected growth in E&P spending

in 2014

Increased deep water spending
Increased infrastructure spending
Growth expected in Brazil, North

Sea and Gulf of Mexico

Increased focus on newer, larger

and more technologically advanced vessels and engineering capabilities

DOF Subsea owns the world’s

most sophisticated fleet and has a global project organization

SLIDE 35

Mixed fundamentals for subsea activity

DOF Subsea 35

Supply

Fleet of high-end subsea vessels to

increase by 12 % in 2014

Limited growth in supply of

engineering capabilities

Mixed market conditions

Increasing demand Increasing supply

SLIDE 36

Thank you

SLIDE 37

Disclaimer

DOF Subsea 37

This presentation by DOF Subsea AS (“DOF Subsea” or the “Company”) is designed to provide a high level overview of aspects of the

perations of DOF Subsea and the DOF Subsea group.

The material set out in the presentation is current as at 31st March 2014. This presentation contains forward looking statements relating to operations of DOF Subsea and the DOF Subsea Group that are based on management’s own current expectations, estimates and projections about matters relevant to DOF Subsea‘s future financial

performance. Words such as “likely”, “aims”, “looking forward”, “potential”, “anticipates”, “expects”, “predicts”, “plans”, “targets”,

“believes” and “estimates” and similar expressions are intended to identify forward looking statements. References in the presentation to assumptions, estimates and outcomes and forward looking statements about assumptions, estimates and outcomes, which are based on internal business data and external sources, are uncertain given the nature of the industry, business risks, and other factors. Also, they may be affected by internal and external factors that may have a material effect on future business performance and results. No assurance or guarantee is, or should be taken to be, given in relation to the future business performance or results of DOF Subsea

r the DOF Subsea Group or the likelihood that the assumptions, estimates or outcomes will be achieved.

While management has taken every effort to ensure the accuracy of the material in the presentation, the presentation is provided for information only. DOF Subsea, its officers and management exclude and disclaim any liability in respect of anything done in reliance on the presentation. All forward looking statements made in this presentation are based on information presently available to management and DOF Subsea assumes no obligation to update any forward looking statements. Nothing in this presentation constitutes investment advice and this presentation shall not constitute an offer to sell or the solicitation of any offer to buy any securities or otherwise engage in any investment activity.