Q4 Financial Presentation 2014

DOF ASA

Highlights

Main highlights Q4 2014





Strengthening balance sheet through sale of vessels approximately MNOK 1 350 in liquidity Improved terms from refinancing activity



Record high backlog for 2015 (approximately 79% overall)



Challenging markets

DOF ASA

- Q4 Presentation 2014

3

Highlights Q4 2014 

Subsea •

Asia Pacific – Decent utilisation, but good project execution

•

North Sea - High utilisation and good project execution in October and November, but weak utilisation in December

•

US Gulf – Stable utilisation

Operational 

DOF ASA

AHTS/PSV •

North Sea – Reasonable utilization, but low earnings from the spot market

•

Brazil – Variable utilisation due to transit and mobilization of vessels, mostly for new contracts

•

Asia Pacific – Stable utilisation, but one vessel idle in the period

- Q4 Presentation 2014

4

Highlights Q4 2014     

Contract awards

      



Fleet

 

DOF ASA

Skandi Vega including ROV, first option with Statoil firm until mid-May 2016 Skandi Caledonia, 6 months extension with Maersk UK firm until Apr 2016 Skandi Gamma, 1 yr extension with Statoil applicable from Feb 2015 DOF Subsea awarded LOA for a 7+3 yrs IRM contract (Skandi Hawk) Skandi Møgster and Skandi Saigon, extended 1 yr with Total Argentina firm until end Feb 2016 Skandi Giant and Skandi Atlantic, 150 days + options up to 5 wells for Origin Australia Skandi Barra, 3 yrs (+ up to 2 yrs options) with Total UK firm until Feb 2018 Skandi Buchan, 3 yrs (+ up to 2 yrs options) with Total UK firm until Sept 2018 Skandi Sotra, 1 yr (+ 4 x 6 months options) with Chevron North Sea Ltd firm until Dec 2015 Skandi Marstein, 10 months (+ up to 9 months options) with CNR International (UK) firm until Oct 2015 Skandi Texel, 20 months (+1 yr option) with BP Egypt firm until Aug 2016 Skandi Hav, 4 yrs with Petrobras firm until November 2018 Skandi Aker sold and changed name to AKOFS Seafarer, releasing approx. MNOK 200 after redemption of debt Skandi Skolten delivered to new owner releasing approx. MNOK 650 after redemption of debt Signed contract in Brazil for sale of five vessels, releasing approx. MNOK 500 after redemption of debt

- Q4 Presentation 2014

5

Overview Group

DOF ASA in brief Fleet  72 vessels in operation



•

68 owned vessels

•

4 Subsea vessels chartered in

•

PSV: 24, AHTS: 18 and Subsea: 30





 

Head office in Norway Regional offices in Australia, Singapore, UK, USA, Canada, Angola, Argentina and Brazil

7 newbuildings •



Global organization

AHTS: 2, Subsea: 5

54 ROVs, 13 ROVs on order NOK 34.4 bn in market value total fleet (100% basis) in operation Average age 9 years, value adjusted fleet age of 6.2 years

Total of 5 375 employees  

•

Firm contracts : NOK 30.9 bn

•

Options: NOK 34.7 bn

1 858 3 517

Share price  

Back log  Total NOK 65.6 bn

Subsea employees: Marine personnel:

Vessels

NOK 14.95 (31.12.2014) NAV per share NOK 80.5

Subsea

4 26 24

PSV

18

DOF ASA

- Q4 Presentation 2014

AHTS

Chartered Subsea Vessels

7

Fleet overview and contract coverage No. of vessels PSV

AHTS

Subsea

Total fleet

DOF ASA/DOF REDERI AS

19

3

2

24

NORSKAN OFFSHORE

5

12

2

19

DOF SUBSEA AS

0

0

29*

29

DOF INSTALLER ASA

0

0

2

2

DOF DEEPWATER AS

0

5

0

5

Total fleet

24

20

35

79

Contract coverage 2015 Firm

89%**

76 %

74 %

79 %

2015 Including options

95 %

78 %

80 %

84 %

2016 Firm

58 %

48 %

40 %

48 %

2016 Including options

90 %

56 %

67 %

71 %

Good coverage in 2015: • Minor time charter renewal risk in 2015 • Important LOA (7 + 3 yr) secured in subsea project fleet

Expectations for 2016: • Few vessels off charter next year (including options) • Despite highly competitive subsea market, we see good progress in securing long-term work • Our global footprint and project capability will be vital for securing utilization

* Including four chartered vessels ** Excluding two old PSVs in lay-up

DOF ASA

- Q4 Presentation 2014

8

A global player

34 Austevoll Moscow

Aberdeen St. Johns Houston

Cairo

3

Manila Malaysia Singapore Luanda

Brunei Jakarta

Macaé Rio de Janeiro

27

Perth

3

9

Buenos Aires

FOCUS AREAS

DOF employees

DOF ASA

- Q4 Presentation 2014

Norway

Brazil

US/Canada

UK

Asia Pacific

492

608

225

456

405

Angola

17

Argentina

Marine Crew

Total

7

3 165

5 375

9

Remaining newbuilding program Vessel

Yard

Delivery

Type

Contract

Financing

Skandi Angra

Vard Brazil

Apr 2015

AHTS

8 yrs Petrobras

Funding secured

Skandi Paraty

Vard Brazil

Oct 2015

AHTS

4 yrs Petrobras

Funding secured

Skandi Africa

Vard Norway

Summer 2015

CSV

5 yrs Technip

Funding secured

Skandi TBN Vard 823

Vard Norway

2016

PLSV

8 yrs Petrobras

Skandi TBN Vard 824

Vard Norway

2016

PLSV

8 yrs Petrobras

Skandi TBN PLSV1

Vard Brazil

2016

PLSV

8 yrs Petrobras

Skandi TBN PLSV2

Vard Brazil

2017

PLSV

8 yrs Petrobras

DOF ASA

- Q4 Presentation 2014

10

DOF ASA timeline DOF fleet evolution

DOF Group employees

80

40000 35000

60

30000

50

25000

40

20000

30

15000

20

10000

10

5000

0

0 2007

2008

2009

2010

6000

MV of Fleet

2011

2012

2013

2014

No. Of employees 5000 4000 MNOK

No. Of Vessels

No. of operated Vessels

70

3000 2000 1000 0 2007

2008

2009

2010

2011

2012

2013

2014

2005 – 2006

2007 – 2008

2009 – 2010

2011 – 2012

2013 – 2014

Fleet: 41 vessels

Fleet: 45 vessels

Fleet: 56 vessels

Fleet: 69 vessels

Fleet: 70 vessels

• Acquisition of Geoconsult (later DOF Subsea)

• DOF Installer founded

• Delivery of 12 new-builds from yards (4 PSVs, 3 AHTS, and 5 subsea vessels)

• Delivery of 2 vessels (PSV and subsea vessel)

• DOF Subsea listed on the OSEBX

• Delivery and acquisition of 10 vessels (2 PSV, 2 AHTS and 6 subsea vessels)

• DOF Deepwater (ex Aker DOF Deepwater) founded, a JV with Aker Solutions

• Purchased Skandi Constructor

• DOF Subsea established 2 jointventures with Technip in Norway and in Brazil

• 1 vessel sold

• DOF Subsea &Technip JV won a USD 1,7 bn contract with Petrobras for 4 PLSVs

• DOFCON founded and ordered 7 large CSVs • Acquired 100% shares in Norskan • Purchase 2 subsea vessels and delivered 4 new-builds from yard (AHTS & PSVs) • DOF Subsea established office in Perth, Australia (Covus Corp. Ltd)

• DOFCON merged with DOF Subsea

• Partnered with First Reserve to purchase DOF Subsea ASA and the company was taken private • Delivery of 9 new-builds from yard (2 PSVs, 1 AHTS and 6 subsea vessels) • 3 vessels sold

• DOF Subsea established office in Brazil • Acquired engineering capacity in Aberdeen, UK (Century Ltd)

DOF ASA

- Q4 Presentation 2014

• 1 vessel sold • Acquired more engineering capacity in Australia (SWG Offshore)

• 1 new-build (subsea vessel) sold

• Signed newbuild contracts for 4 PLSVs • Extensive growth in subsea project activity • Chartered four external subsea vessels (incl. 3 Jones Act vessels) for the project activity • 2 vessels sold • Signed new-build contract for one large subsea construction vessel

11

FinancialsManagement Reporting

Result Q4 2014 ALL FIGURES NOK MILLION All figures inINNOK million

Q4 2014

Q4 2013

2014

2013

2 878 -2 082 -11 264 1 050

2 633 -1 806 -6 3 824

10 681 -7 350 -9 468 3 790

9 754 -6 651 1 8 3 112

Depreciation and write-down Operating profit- EBIT

-323 727

-296 528

-1 127 2 663

-1 193 1 919

Financial income Financial costs Net realized currency gain/loss

24 -355 -86

17 -361 17

77 -1 419 -212

62 -1 434 39

Net profit/loss before unrealised gain/loss long term debt

310

202

1 109

586

Net unrealized currency gain/loss Net unrealized gain/loss on market instruments

-400 -201

-11 -38

-441 -218

-606 -5

Profit/loss before tax

-291

152

450

-25

Tax Net profit/loss

89 -202

-18 134

51 501

-27 -52

Profit attributable to Non-controlling interest Controlling interest

72 -274

97 37

418 82

139 -191

Operating income Operating expenses Net profit/loss from associates and joint ventures Net gain on sale of vessel Operating profit before depreciation- EBITDA

DOF ASA

- Q4 Presentation 2014

Comments Operational result PSV: • 88% utilisation PSV fleet • Two vessels in the spot market • Vessels in transit for new contracts • Two vessels in lay-up from December AHTS: • 80% utilisation AHTS fleet • Vessels on dry-docking and mobilization new contracts • One vessel in the spot market end of the period Subsea: • 93% utilisation vessels on term contracts • 67% utilisation project fleet • High project activity in Atlantic region, lower towards end of period • Stable activity in APAC, US and Brazil • Vessels in transit and several dockings in the period Finance: • Weak NOK in the period, high unrealized currency loss 13

Segment reporting Q4 2014 ALL FIGURESin IN NOK NOK MILLION Amounts mill

PSV

AHTS

CSV/Subsea

Total

Q4 2014

Q4 2013

Q4 2014

Q4 2013

Q4 2014

Q4 2013

Q4 2014

Q4 2013

Operating income

304

270

400

333

2 174

2 030

2 878

2 633

Operating result before depreciation and write-down (EBITDA)

103

99

186

166

761*

559

1 050

824

48

61

120

112

559

354

727

527

EBITDA margin

34 %

37 %

47 %

50 %

35 %

28 %

36 %

31 %

EBIT margin

16 %

23 %

30 %

34 %

26 %

17 %

25 %

20 %

Operating result (EBIT)

EBITDA Q4 2014

EBITDA Q4 2013 12 %

10 % 18 %

20 % 68 %

72 %

PSV

AHTS

CSV

PSV

AHTS

CSV

* Including gain from sale of assets MNOK 264 DOF ASA

- Q4 Presentation 2014

14

Historical Performance Group (excl gain from sale of assets) 40%

3 500 Operating revenue

EBITDA

EBITDA margin 35%

3 000

30%

MNOK

25% 2 000 20% 1 500 15%

EBITDA Margin %

2 500

1 000 10% 500

5%

-

0% Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Operating revenue EBITDA EBITDA margin

Q4 2011 1 862 581 31 %

Q4 2012 2 069 685 33 %

Q4 2013 2 633 830 32 %

Q4 2014 2 878 786 27 %

Non-current assets Current assets Total Assets

26 641 4 187 30 828

27 630 4 136 31 766

27 928 4 817 32 745

28 761 5 800 34 561

Equity Non-current debt Current debt Total Equity and Debts

6 669 20 012 4 147 30 828

6 735 21 563 3 468 31 766

6 346 21 576 4 822 32 745

6 869 19 739 7 954 34 562

DOF ASA

- Q4 Presentation 2014

15

Balance Q4 2014 Amounts in NOK ALL FIGURES IN NOKmillion MILLION

31.12.2014

31.12.2013

1 117 26 204 1 075 365 28 762

781 26 244 646 258 27 928

3 105 2 696 5 800

2 503 2 314 4 817

34 562

32 745

EQUITY AND LIABILITIES Subscribted equity Retained equity Non-controlling equity Equity

1 452 1 960 3 456 6 869

Provisions for commitments Other non-current liabilities Non-current liabilities

ASSETS Intangible assets Vessel and other tangible assets Newbuildings Financial assets Non-current assets Receivables Cash and cash equivalents Current assets Total assets

Current part of interest bearing debt Other current liabilities Current liabilities Total equity and liabilities

DOF ASA

- Q4 Presentation 2014

Comments •

Prepaid instalments new-buildings include 7 vessels (50% share in 4 vessels). Three vessels planned delivered in 2015

•

Financial assets include minority share in 4 vessels

•

Generally high project activity, impact on receivables (approx. 50% of total revenue represent subsea projects)

1 452 1 929 2 965 6 346

•

Unsecured debt (bonds) MNOK 4 124 included in long term debt

140 19 599 19 739

155 21 421 21 576

•

6 049 1 905 7 954

3 248 1 574 4 822

Current part long term debt includes bond (MNOK 1 039), balloons (MNOK 2 300) and normal amortization

34 562

32 745

16

Cash Flow Q4 2014 ALL FIGURES IN NOK MILLION

Cash from operating activities Net interest paid Taxes paid Net cash from operating activities Payment received on sale of tangible assets Purchase of tangible assets

Q4 2014

Q4 2013

2014

2013

1 050

871

2 963

2 809

-316

-299

-1 352

-1 342

31

-12

-6

-48

765

561

1 605

1 419

1 148

5

2 082

87

-615

-128

-2 345

-1 616

Other changes in investing activities

-41

47

-126

11

Net cash from investing activities

492

-76

-390

-1 518

Proceeds from borrow ings

1 585

752

4 036

3 186

Prepayment of borrow ings

-1 800

-594

-4 952

-2 844

-4

-98

-7

-99

-219

60

-923

242

Net changes in cash and cash equivalents

1 038

545

293

144

Cash and cash equivalents at the start of the period

1 567

1 759

2 314

2 145

91

10

89

25

2 696

2 314

2 696

2 314

Payment from/to non-controlling interests Net cash from financing activities

Exchange gain/loss on cash and cash equivalents Cash and cash equivalents at the end of the period

DOF ASA

- Q4 Presentation 2014

Comments Improved cash from operating activities Investing activities •

Two vessels sold during 2014 (one Q2 and one in Q4)

•

One new-build delivered in 2014

•

Prepaid instalments 5 new-builds with delivery in 2015 and onwards

Financing activities •

Approx MNOK 1 630 represents new financing (one new-build and one new bond). Remaining net proceeds and repayments represent ordinary refinancing activity during 2014

17

Key figures Q4 2014 FINANCIAL RESULT EBITDA margin ex net gain on sale of vessel EBITDA margin EBIT margin Cashflow per share Profit per share ex. non-controlling interest Profit per share ex. unrealized loss/gain and taxes BALANCE Return on net capital Equity ratio Value adjusted equity Value adjusted equity per share Net interest bearing debt Net interest bearing debt ex. unemployed capital Capex

DOF ASA

- Q4 Presentation 2014

Q4 2014

Q4 2013

2014

2013

27 % 36 % 25 % 5,70 -2,47 3,60

31 % 31 % 20 % 4,48 0,33 1,65

31 % 35 % 25 % 20,13 0,74 10,44

32 % 32 % 20 % 16,03 -1,72 5,03

-128

7% 20 % 34 % 80 22 856 21 781 -2 345

-1 % 19 % 37 % 75 21 985 21 339 -1 616

-615

18

Net interest bearing debt Q4 2014 ALL FIGURES IN NOK MILLION

Bond loan

31.12.2014

31.12.2013

4 124

4 722

Debt to credit institutions

15 057

16 265

Total non-current interest bearing liabilities

19 181

20 988

Bond loan

1 039

454

Debt to credit institutions

4 328

2 461

Utilized credit facilities Total current interest bearing liabilities Total interest bearing liabilities Cash and cash equivalents Net derivatives Non-current receivables Total net interest bearing liabilities New builds Net interest bearing liabilities, excluding unem ployed capital

DOF ASA

- Q4 Presentation 2014

455

97

5 822

3 012

25 003

24 000

2 696

2 314

-549

-357

-

58

22 856

21 985

1 075

646

21 781

21 339

Comments Current interest bearing debt: Bonds MNOK 1 039 •

DOF08 MNOK 339 and DOFSUB06 MNOK 700 will be fully repaid in 2015

Debt to credit institutions MNOK 4 328 • •

Balloons MNOK 2 300 Amortization approx. MNOK 2 000

Cash and derivatives: • •

MNOK 639 represent cash deposit Derivatives mainly represent interest derivatives

19

Debt maturity profile DOF GROUP COUNTERPARTY EXPOSURE Q4 2014

3 000 2 500

DOF

2 000 Bank Debt 1 500

Bond loans

34%

44%

Balloons

1 000 500

22%

2015

2016

2017

2018

2019

After

DOF Subsea

2500

ECA

Bond

Other Banks

2000 1500

Bank Debt

•

ECA mainly represent long term funding with BNDES and GIEK

•

DOF08 and DOFSUB06 will be fully repaid in 2015

•

MNOK 1 000 in balloons in 2015 is repaid or refinanced ytd 2015

Bond Loans 1000 Balloons 500 0 2015E

DOF ASA

2016E

2017E

- Q4 Presentation 2014

2018E

2019E

After

20

DOF ASA – Asset coverage 

Combined market value DOF Group fleet including newbuild is NOK 40.4 bn (total value 100% NOK 48.658 bn)



New-building program to be completed in 2017 (including 50% in 4 PLSV’s)



Asset-level gearing on the existing fleet is 61%, decreasing to 26% in 2019 • Significant gearing reduction forecasted Gearing forecast – summary

Total Fleet Debt

100% 39%

80%

47%

54%

Equity

Vessels & new-buildings

MNOK 40 363

Equipment (subsea)

MNOK

Total Fleet 64%

60%

Values

1 550

MNOK 41 913

74% Note: Vessels based on fair market values as of 31 December 2014

40%

61%

53%

20%

46%

36%

26%

0% 2015 •

DOF ASA

2016

2017

2018

2019

The figures reflects amortization and balloon payments on total debt drawn as per 31 December 2014 and onwards

- Q4 Presentation 2014

21

Sale of 5 vessels in Brazil

DOF ASA

Design

Built

Type

Skandi Stolmen

UT 755

1997

PSV

Skandi Yare

UT 755

2001

PSV

Skandi Leblon

UT 755 L

2004

PSV

Skandi Flamengo

UT 755 L

2003

PSV

Skandi Copacabana

UT 722 L

2005

AHTS

- Q4 Presentation 2014

22

DOF Subsea

DOF Subsea Group – In brief Fleet •

•

One of the largest subsea vessel owners in the world •

Owns and operates a fleet of 22 vessels, plus 5 newbuilds on order

•

In addition 4 external vessels on long-term charter

•

The market value of owned vessels in operation is NOK 15 billion, with a value adjusted age of approx. 6.2 years

Operates 54 ROVs and 12 ROVs and 1 AUV on order

Global organization •

Head office in Bergen

•

Regional offices in Australia, Singapore, Norway, UK, Angola, US, Canada and Brazil

Total of 1 858 employees •

Subsea employees:

•

Of which offshore engineers and project staff: 1 390

DOF ASA

1 858

Norway

Brazil

Canada

US

UK

Asia Pacific

Angola

345

443

53

172

440

388

17

- Q4 Presentation 2014

24

DOF Subsea Group – In brief Quarterly figures

2 500

35% 30%

2 000 NOK million

25% 20%

17.6 % CAGR

15%

1 000

10%

Key figures

500 5%

Back-log incl. options

NOK 36 billion

Market value of fleet

NOK 15 billion

Number of shares

1 500

119 733 714

-

7.3 % CAGR

0% Q4 2011

Q4 2012

Operating revenue

Total

Per share

Book equity

NOK 6.1 billion

NOK 51.05

Value adj. equity

NOK 9.0 billion

NOK 75.17

Book equity ratio

30.5 %

Value adj. equity ratio

39.3 %

Q4 2013 EBITDA

Q4 2014 EBITDA margin

* According to internal Management reporting

DOF ASA

- Q4 Presentation 2014

25

Key credit metrics Interest Coverage (EBIT / Interest cost)

NIBD/EBITDA

3,00

12,00

2,50

10,00

2,00

8,00

1,50

6,00

1,00

4,00

0,50

2,00

-

2009

2010

2011

2012

2013

2014

2009

NIBD/Total assets

2011

2012

2013

2014

2013

2014

Debt/Total assets

1,00

1,00

0,80

0,80

0,60

0,60

0,40

0,40

0,20

0,20

-

2009

DOF ASA

2010

2010

2011

- Q4 Presentation 2014

2012

2013

2014

2009

2010

2011

2012

26

DOF Subsea – Projects •

•

•

•

DOF Subsea has built a global presence over the last 9 years DOF Subsea has developed the project business gradually Increased project activity driving growth Project business going forward • Gradually increase the complexity of work done (Step by Step) • Build a larger project back-log • Mix between owned and chartered in vessels

Operating income by segment 8 000

8 000

7 000

7 000

6 000

6 000

5 000

5 000

4 000

4 000

3 000

3 000

2 000

2 000

1 000

1 000

0 Subsea projects Chartering of vessels Total

2012 3 776 1 472 5 248

Chartering of vessels

2013 4 971 1 609 6 580 Subsea projects

YTD2014 5 378 2 044 7 422

-

Total

* According to internal Management reporting

DOF ASA

- Q4 Presentation 2014

27

Market and outlook Subsea: APAC market    

Construction in Australia slowing down But being replaced by IRM Operators spend slowing Competition scene changing

DOF SUB: 

High tendering activity, several long term opportunities



Expect better utilisation in 2015 compared to 2014

Brazil market We expect a slow 2015, with few new tenders and pressure on rates DOF SUB: 

DOF ASA

In general good backlog, but challenging for vessels that are up for renewal

- Q4 Presentation 2014

28

Market and outlook continued Subsea: North America market  

Increasing demand for Jones Act Compliance IMR and light construction vessels Market slow down for DSV and larger construction vessels

DOF SUB:  Fairly new player in the US subsea market. We expect gradually increased market share and higher vessel utilisation Atlantic market  We expect Norway to slow down significantly in 2015  We expect also UK to slow down in 2015 DOF SUB:  North Sea exposure reduced. Skandi Skolten sold. Only 3 vessels in the North Sea in 2015  In sum we expect lower activity in our Atlantic region in 2015 compared to 2014 DOF ASA

- Q4 Presentation 2014

29

Market and outlook continued Supply:

Brazil: 

We expect a slower 2015, with few new tenders and pressure on rates



DOF: Only 2 PSV’s and 1 AHTS up for renewal late in 2015. All 3 vessels are Brazilian built and flagged

North Sea: 

We expect the North Sea market for both AHTS and PSV to be weak



DOF: Low spot exposure in 2015

Asia Pacific:

DOF ASA



We see modest increase in tender activity in the region within supply



The AHTS/PSV market is holding up, but downward pressure on rates



DOF: Only 4 vessels in the region

- Q4 Presentation 2014

30

Market and outlook continued Guidance 2015: 

High backlog for 2015 already secured



Skandi Skolten and Skandi Aker already delivered to new owners



5 Brazilian vessels planned for delivery to new owners within April 2015



3 new vessels planned delivered in 2015 (Skandi Angra in April 2015, Skandi Paraty in October 2015 and Skandi Africa in August 2015). All 3 have long term contracts



Higher “than normal” uncertainty on earnings from vessels that do not have firm contracts

Operational EBITDA guidance 2015

DOF ASA

- Q4 Presentation 2014

MNOK 3 100 – 3 500

31

Thank you

Presented by

Mons Aase - CEO Hilde Drønen - CFO

DISCLAIMER This presentation by DOF ASA designed to provide a high level overview of aspects of the operations of the DOF ASA Group. The material set out in the presentation is current as at 20 February 2015. This presentation contains forward-looking statements relating to operations of the DOF ASA Group that are based on management’s own current expectations, estimates and projections about matters relevant to DOF ASA‘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 the DOF ASA 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 ASA , 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 ASA 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. You should make your own enquiries and take your own advice (including financial and legal advice) before making an investment in the company's shares or in making a decision to hold or sell your shares.

DOF ASA

- Q4 Presentation 2014

33