Third quarter results 2011

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© Kvaerner 2011

1.11.2011

Highlights for the third quarter 2011 General

Financial

 Gulf LNG re-gasification project delivered

 Revenues of NOK 2.6 billion

 Skarv FPSO in-shore completed  Kashagan Hook-up offshore completed  High bidding activity  Top management team complete

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 EBITDA of NOK 169 million with an EBITDA margin of 6.4%  Net cash of NOK 1.7 billion  Access to liquidity totalling NOK 4.6 billion

Key financial indicators EBITDA NOK million

4 500

500

4 000

450

Net current operating assets NOK million

-200

-291

Revenues NOK million

-600

300

-800

464

3 947

200

-1 000

150

50

169

500

145

100

192

-1 200

1 000

97

3 722

250

2 623

1 500

3 237

2 000

3 932

2 500

-1 264

3 000

-1 336

-1 064

-400 350

-1 028

400

3 500

-1 400

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Q3'11

Q2'11

Q1'11

Q4'10

Q3'10

Q3'11

Q2'11

Q1'11

Q4'10

Q3'10

Q3'11

Q2'11

Q1'11

Q4'10

Q3'10

-1 600

Order intake and backlog Order intake NOK million

Order backlog NOK million

8 000

20 000 18 000

7 000

16 000 6 000 14 000 5 000

12 000

11 855 2013

10 000

4 000

8 000

3 000

2012 6 000

2 000 4 000

1 105 1 000

2 000 0

0 Q2'10

Q3'10

Upstream

4

2011

© Kvaerner 2011

Q4'10

Q1'11

Q2'11

Downstream & Industrials

1.11.2011

Q3'11

Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11

Third quarter operations

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Health, Safety and Environment The positive trend on our lagging HSE indicators continues

Lagging indicators: Lost time incident frequency (LTIF) Per million work hours 1,5

Continued focus on pro-active HSE work

1 0,5

Safely demobilised offshore personnel from Kashagan Hook-up

0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Two milIion man-hours worked since last lost time injuries

Aug Sept

Total recorded incident frequency (TRIF) Per million work hours 5,0 4,0 3,0 2,0 1,0 0,0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept

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Downstream & Industrials

The Longview project Background  Contract entered into with Longview Power LLC in 2007  Kvaerner’s contract value was USD 654 million  Construction of a 695 megawatt (net) coal fired power plan  Located in Maidsville, West Virginia Technology  Longview is the world’s first supercritical FW-BENSON vertical pulverized coal boiler  A Siemens technology, the boiler will generate supercritical steam at 569 degrees Celsius and at 265 bar to drive a single reheat turbine The Project  The project is delayed, but construction is completed  The power plant is in the final commissioning and performance testing phase  Substantial completion is expected in the fourth quarter 2011

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Longview power plant, USA

Downstream & Industrials

E&C Americas Operations  The Gulf LNG Energy, LLC regasification project reached substantial completion in September  Good activity on the V&M pipemill and other steel maintenance projects Market  High bidding activity  Smaller studies and FEEDs ongoing, no material EPC awards expected before year end

The Gulf LNG Energy import and re-gasification terminal, USA

"This has been a cooperative arrangement that is unheard of in the industry. We have no disputes and no outstanding issues to resolve. We are on time and under budget." John McCutchen, Senior Vice President and Chief Operations Officer of Gulf LNG Energy 8

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1.11.2011

Upstream

Concrete Solutions Operations  Sakhalin-1 GBS (Nakhodka) : – All major concrete works completed – Mechanical outfitting ongoing

Potential construction sites

Bull Arm Nakhodka

 Hebron FEED and site preparation in Bull Arm ongoing Market  Screening ongoing for establishing a concrete construction site in North West Russia for future prospects  Further opportunities both on Sakhalin and Newfoundland

Photo: Michael Martin

Hibernia GBS construction at the Bull Arm site in 1995 9

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1.11.2011

Upstream

Jackets Operations  High activity on the Nordsee Ost and Ekofisk 2/4L projects  The Clair Ridge project has commenced fabrication at the Verdal yard Market  Several prospects in the bidding phase Other  Verdal yard upgrades according to plan – completion in March 2012

Wind jacket for the Nordsee Ost project

The Verdal yard, Norway 10

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1.11.2011

Upstream

North Sea Operations  Skarv FPSO: Supporting BP with offshore and onshore personnel  Eldfisk : Well into the engineering phase  Kollsnes: Site work to be completed during the year  Mongstad Test Center: Commissioning activities ongoing  Fabrication and construction contract with Statoil for upgrades at Mongstad Market  High number of prospects with several of these in the FEED and bidding phase Other  Focus on hiring out personnel to minimise temporary lay-offs  Upgrade of crane at yard under evaluation

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Mongstad Test Center, Norway

Upstream

International Operations  Kashagan Hook-up project: – Closing of project and documentation ongoing until year end – Demobilisation of personnel  COOEC yard demonstration module presented to clients and suppliers

Target markets

Market  Invitation to tender for Browse expected in Q4  Project opportunities in the Caspian region in progress Other  Yard development plans in Kazakhstan progressing Demonstration module at COOEC yard, China 12

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1.11.2011

Third quarter financials Eiliv Gjesdal, Chief Financial Officer

Income statement NOK million

Q3 2011

Q3 2010

YTD 2011

YTD 2010

2010

2 623

3 237

10 292

9 277

13 209

EBITDA

169

97

825

343

488

Depreciation and amortisation

(12)

(13)

(36)

(39)

(54)

EBIT

157

84

789

304

434

-

(17)

(4)

(33)

(30)

Profit before tax

157

67

785

271

404

Tax

(22)

(3)

(307)

(56)

(330)

Net profit

135

64

478

215

74

6.4%

3.0%

8.0%

3.7%

3.7%

Revenues

Net financial items

EBITDA margin

Revenues reflecting lower activity which will continue throughout 2011 Unrealised currency gains offsetting net interest expenses including amortisation of fees for the established loan facilities Effective tax rate reflecting deferred tax assets being recognised in the Downstream & Industrials segment

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1.11.2011

Revenue distribution

Important projects in 2009  Sakhalin-1  Adriatic LNG delivered  H-6e rigs delivered  Gjøa  Kashagan HUC  Cameron LNG  Longview  Gulf LNG

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1.11.2011

Interna tional

Important projects in 2010  Sakhalin-1  Gjøa delivered  Kollsnes onshore  Mongstad Test Centre  Kashagan HUC  Cameron LNG delivered  Longview  Gulf LNG

North Sea

ts cke a J

NOK 10.3 billion Se a

NOK 13.2 billion

Con cret e

or th

ts ke c Ja

s C rica & E me A

N

E Am &C er ic as

Con cret e

l na io

al ation Intern

North Sea

Share of revenues Q1-Q3 2011 Percent

at rn te In

NOK 12.1 billion

15

Share of revenues 2010 Percent

Ja ck ets

E Am &C er ic as

Concrete

Share of revenues in 2009 Percent

Important projects in 2011  Sakhalin-1  Gudrun jacket delivered  Clair Ridge jackets  Nordsee Ost wind jackets  Skarv FPSO  Kollsnes onshore  Eldfisk  Kashagan HUC  Longview  Gulf LNG delivered

Q3 2011: Downstream & Industrials review Financials  Union Construction gradually moving back to a more normalised activity level  EPC Centre Houston on low activity until new EPC projects awarded

Revenues, EBITDA and EBITDA margin NOK million 1 500

Order backlog and order intake NOK million 3 000

1 047 822

1 000

673 345

500

549

3 -500

EBITDA-%

-39

Q3'10

-286 Q4'10

-13.1%

-34.8%

Revenues

Q1'11

-300 Q2'11

Q3'11

0.4%

-87.0%

-7.1%

EBITDA

2 333

2 059

2 000 1 000

0 -137

Orders  Growth in existing contracts  Studies and FEEDs

1 404 819

531

104

Q3'10*

Q4'10

Q1'11

0

Order backlog

1 558

537 Q2'11

1 376

298 Q3'11

Order intake

* The Q3’10 backlog number is adjusted for the CAD 400 million contract with TransCanada removed from the backlog in Q4’10.

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Q3 2011: Upstream review Financials  Margin contribution from projects being completed  Nordsee Ost project with no margin recognition despite 20% completion  Activity level for Q4 expected on par with Q3

Revenues, EBITDA and EBITDA margin NOK million 4 000 3 000

3 113

3 058

Orders  Growth in existing contracts  Mongstad fabrication and construction contract for Statoil (Q4)

Order backlog and order intake NOK million 15 000

3 600

14 273

12 735 10 376

2 195

2 052

10 000

234

477

431

554

5 000

EBITDA-%

755

1 068

789

Q2'11

Q3'11

0 Q3'10

Q4'10

Q1'11

Q2'11

Q3'11

10.7%

13.8%

15.6%

15.4%

12.3%

Revenues

17

3 426

253

0

10 482

6 955

2 000 1 000

11 738

© Kvaerner 2011

EBITDA

1.11.2011

Q3'10

Q4'10

Order backlog

Q1'11

Order intake

Cash flow and working capital NOK million

Q3 2011

Q3 2010

YTD 2011

YTD 2010

2010

Net CF from operating activities

(49)

(703)

747

(1 414)

(645)

Net CF from investing activities

(48)

2

(154)

(28)

(26)

Net CF from financing activities

425

306

(1 104)

513

349

15

(105)

(47)

37

53

343

(500)

(558)

(892)

(269)

Translation adjustment Net +/- in cash and bank deposits

The NOK 500 million term loan was drawn during the quarter

Net current operating assets (NCOA) NOK million Downstream & Industrials

The EPC business is cash positive through negative working capital:  Customer pre-payments¹ of 486 million  Downstream & Industrials: Capital tied up in the Longview project

Kvaerner Group Upstream

¹ Billings in excess of cost and estimated earnings less amounts billed in advanced but not received (on a project by project basis).

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Balance sheet NOK million

30.09.2011

30.06.2011

30.09.2010*

1 821

1 775

2 203

111

118

89

Current operating assets

2 772

3 841

5 364

Cash and cash equivalents

2 118

1 776

2 054

Total assets

6 822

7 510

9 710

Total equity

2 271

2 120

3 839

Non-current interest bearing liabilities

457

8

-

Other non-current liabilities

259

259

148

33

-

90

3 800

5 105

5 475

2

26

74

Total liabilities

4 551

5 390

5 871

Total liabilities and equity

6 822

7 510

9 710

33%

28%

17%

1 678

1 773

2 225

Total non-current assets Current tax receivables

Current tax payables Current operating liabilities Total liabilities related parties

Equity ratio Net cash

The NOK 500 million term loan was drawn during Q3 2011. *The reduction in Cash and cash equivalents is mainly related to settlement of inter-company positions, including group contribution to Aker Solutions and dividends settled in cash prior to the consummation of the Demerger. Please see Section 7 in the listing prospectus for further information. 19

© Kvaerner 2011

1.11.2011

Summary and closing remarks Jan Arve Haugan, Chief Executive Officer

Current project portfolio Value at award Kashagan HUC

USD 1.6B

Longview

USD 654M

Kollsnes

NOK 1.5B

Mongstad

NOK 525M

Sakhalin

USD 600M

Gulf LNG

USD 600M

Gudrun jacket

NOK 450M

Ekofisk jacket

Undiscl.

Nordsee Ost

EUR 115M

V&M Star (Structural)

Undiscl.

Clair Ridge

NOK 1.7B

Skarv FPSO

Undiscl.

Eldfisk

NOK 5.5B

V&M Star (MEP)

Undiscl. Q1

Q2

Q3

Q4

2009

© Kvaerner 2011

Q2

Q3

Q4

Q1

Q2

2010 North Sea

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Q1

1.11.2011

International

Q3

Q4

2011 Jackets

Q1

Q2

Q3

2012 Concrete

E&C Americas

Q4

Q1

Q2

Q3

2013

Q4

Number of EPC prospects higher than in decades North Sea Hejre Hild Luno Mariner Bressay Luva Dagny Victoria Tommeliten Snorre Skrugard Aldous/Avaldsnes Ormen Lange Kollsnes Snøhvit Pahse II Nyhavna extension

Jackets Golden Eagle Luno Hild Hejre Montrose/Arbroath Dagny Draupne Mariner Bressay Peregrino Jackdaw Nordsee Ost extension

International

Concrete

Browse Other international prospects on a case by case basis

White Rose Hebron Piltun South Petchora LNG Kammennomyskoye Yamal Dolginskoye Amuligak Natuna

Own offices Note: The list is not exhaustive or indicative of Kvaerner’s priorities.

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© Kvaerner 2011

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Strategic partners Existing and prioritised markets 1 November 2011

E&C Americas LNG- Liquefaction Gas processing/syngas Chemical/phosphates Heavy oil Refining Steel Pipe manufacturing industry Gas fired power plants Plant maintenance and services

Summary and closing remarks Third quarter 2011 Delivered

 Kashagan Hook-up  Skarv FPSO in-shore  Gulf LNG

High bidding activity Order backlog of NOK 11.8 billion

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HSE – core value and licence to operate Maintain and develop home markets International expansion Hands-on management

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Quarterly key figures NOK million

Q3 2011

Q2 2011

Q1 2011

Q4 2010

Q3 2010

Revenues

2 623

3 947

3 722

3 932

3 237

Upstream

2 052

3 600

3 058

3 114

2 195

Downstream & Industrials

549

345

673

822

1 047

EBITDA

168

192

464

145

97

Upstream

253

554

477

431

234

Downstream & Industrials

(39)

(300)

3

(286)

(137)

6.4%

4.9%

12.5%

3.7%

3.0%

Upstream

12.3%

15.4%

15.6%

13.8%

10.7%

Downstream & Industrials

(7.1)%

(87.1)%

0.4%

(34.8)%

(13.1)%

1 105

1 606

7 049

1 282

4 237

Upstream

789

1 068

6 955

755

3 426

Downstream & Industrials

298

537

104

531

819

Order backlog

11 855

13 296

15 676

12 435

17 419

Upstream

10 482

11 738

14 273

10 376

12 735

1 376

1 558

1 404

2 059

4 683

EBITDA margin

Order intake

Downstream & Industrials

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© Kvaerner 2011

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Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Kvaerner and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction. 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 Kværner ASA and Kværner 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 Kvaerner’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 Kværner 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. Kværner ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Kværner ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.

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