Pareto Oil & Offshore conference Jan Arve Haugan, President & CEO Holmenkollen Park Hotel, 2 September 2015

© Kvaerner 2015 02.09.2015

Leading contractor in four segments CONCRETE SOLUTIONS

Global leader in marine concrete structures Substructures CONDEEPTM GBS Floating concepts LNG terminals

JACKETS

European leader in steel jackets

Steel jackets Steel structures Piping technology

2 900 employees in 8 countries Revenues of ~USD 1.7 billion (2014) Order backlog of USD 2.1 billion (30 June 2015) 2

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TOPSIDES

Leading EPC contractor to the North Sea market

Topsides Floating platforms

ONSHORE

Leading Norwegian EPC contractor for onshore plants Upstream plants Treatment facilities

HSSE – our licence to operate

Open and transparent reporting Continued pro-active focus HSSE is not only our licence to operate, it is an efficient way to work

17.06.2011

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© Kvaerner 2011

Our competitive edge: Expertise - Execution model - Cost control - Predictability SAKHALIN I

EDVARD GRIEG

Photo: Lundin Norway

E

P

C

Engineering

Procurement

Construction

FEED

MARTIN LINGE

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Hook-up & completion ELDFISK

Delivering as committed: All projects on track for predictable delivery

Nyhamna – Expansion of the gas processing plant

J. Sverdrup utility and living quarter topside

Hebron concrete substructure

Johan Sverdrup riser platform jacket

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Strengthened competitiveness: Winning Johan Sverdrup contracts TOPSIDE: Scope: Value: JV: Execution: Option:

EPC delivery of ULQ topside NOK 6.7 billion Kvaerner 51% - KBR 49% More competitive delivery model Hook-up and commissioning

JACKETS: Scope: EPC for Riser Platform Jacket Value: NOK 2 billion LoI: EPC for Drilling Platform jacket Tendering for the two remaining jackets

Illustration Statoil

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Strengthened competitiveness: Standardisation and industrialisation Improvements which Kvaerner can initiate and control Improvements demanding cooperation between industry players and authorities

- Develop long-term relationships allowing optimisation through the value chain

- Reduce demand for documentation - Standardised contract format: Update NTK 07 - Standardise/re-use execution model Optimize value chain: Strategic cooperation with partners, subcontractors

Optimize procurement: suppliers reduce prices

- Reduce internal costs - Increased productivity

Studies & FEED Feasibility & Concept Tender & Kick-off

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E System Definition

P Detailing & Fabrication

Hook-up & Commissioning

C Assembly & Erection

System completion

Contract Completion

Predictable financial performance: Quarterly development since stock listing Revenue and EBITDA margin NOK billion 4,5

Margin % 14

EBITDA margin

12,3

4,0 3,5

Revenue

4,0

3,9

3,6

3,5 3,3

10,0

12 3,5

10,1 3,1

3,0 2,5 2,1

2,0

2,7

8,2

3,1

2,7

8

2,3

2,2

2,0

1,9

5,9 5,0 4,4

1,5 3,5

4,6

4,9

4,8

6

4,9

4,1

3,2

1,0

3,5 2,9

4

2

0,5 0,0

0 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

Note: Q311-Q312 numbers estimated as reported total less reported Downstream & Industrial financials

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Improved visibility: Order backlog on a good level Order backlog NOK million 30 000

25 000

20 000 17.7 ~20% 15 000

10 000

~45%

5 000 ~35% 0 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Estimated scheduling as of 30 June 2015: For execution in 2015 Note: All figures include incorporated joint ventures. For execution in 2016 Q311-Q312 numbers estimated as reported total less reported Downstream & Industrials. For execution in 2017+ 9

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Project opportunities in a challenging market Market outlook Longer term (2017 – 2020):  Fundamental long term demand for Kvaerner’s expertise  Anticipates several projects well fit for Kvaerner’s expertise*  Timing of individual prospects is currently uncertain*

Short term (12 - 15 months):  Some few key prospects up for award*

Prospects Norway / North Sea region:  Specific prospects with expected awards in 2015 - 2016 – Steel jackets – Subsea on a Stick® – Topside and completion projects Outside North Sea Region:  Pursuing specific prospects, timing uncertain – Near shore LNG studies

*Sources: Rystad Energy, own contact with customers 10

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Concluding remarks Predictable execution and results Competitive power based on cost improvements and expertise

HSSE – core value and licence to operate Maintain and develop home markets

Retain a robust financial structure Project opportunities in a challenging market

Develop global delivery model for Norway and abroad Hands-on management

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Ownership structure Owned by Kjell Inge Røkke and family Share- TRG Holding AS holders 66.7%

30%

70%

Aker Kværner Holding AS 6.3%

41.02% 12

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40.27%

8.5%

40.27%

New dividend policy The Board of Directors has revised the company’s dividend policy to reflect the developments in Kvaerner’s long term markets and outlook. The Board’s current priorities when proposing the level of dividends are to retain a strong balance sheet and cash position. The new policy has been implemented:  Kværner ASA's dividend policy is based on semi-annual dividend payments. Decisions as to dividend payments depend on outlook, liquidity and considerations such as alternative use of cash and strengthening of the company’s financial structure. In periods of weak economic conditions, the dividend can be paid out as long as the group’s capital structure permits.  The Board approves interim dividends based on an authorisation from the General Meeting, while the Annual General Meeting approves the final (and total annual) dividend based on a proposal from the Board of Directors.

The Board of Directors has according to the new dividend policy propose a semi-annual dividend of NOK 0.15 to be paid 23 October 2015.

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Topside assembly facilities at Stord, Norway

Surface protection

Assembly of modules and platforms Completion and hook-up Onshore projects Decommissioning

Assembly crane Assembly hall Dry dock

Camp

Administration office Cutting shop

Construction management office Outfitting quay Heated ware house/ service center Prefabrication Deepwater quay

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Jackets fabrication 650 000 m² Quay water depth

-12 m

Outdoor assembly area

50 000 m² Surface protection

5 500 m²

Indoor steel prefabrication and assembly workshops

20 000 m²

Piping and cold forming

5 600 m²

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Steel jackets for offshore installations Specialised within cold bending of pipes Pre-fabrication, installation and pressure testing of pipe systems for offshore and onshore industries

Concrete gravity base structures A proven Arctic solution

Sakhalin-II

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Sakhalin 1 sail-away

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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