Q4 presentation

Fourth quarter results 2012

Photo:
A/S Norske Shell

© Kvaerner 2013 13.02.2013

Highlights
Nyhamna onshore contract
increased to NOK 11 billion
Calpine Garrison power plant won
Eldfisk 2/7S hook-up and
commissioning assistance awarded
Order backlog of NOK 21.3 billion
Semi-annual dividend proposal of
NOK 0.55 per share
All home market tenders concluded
with awards to competitors
The Eldfisk 2/7S topside being assembled at Stord, Norway.

2 © Kvaerner 2013 13.02.2013

Key financials
Revenues EBITDA Net current operating assets
NOK million NOK million NOK million

3 500 250

-432
3 000 -200

-514
200

-717

-840
2 500 -400

-1 235
150
2 000 -600

249
3 004

3 000

2 930

1 500 -800
100
2 430
2 388

42 ¹
1 000 159 -1 000

119
50
85
500 -1 200

67
0 -1 400
Q4'11

Q1'12

Q2'12

Q3'12

Q4'12

Q4'11

Q1'12

Q2'12

Q3'12

Q4'12
Q4'11

Q1'12

Q2'12

Q3'12

Q4'12

EBITDA 8.3% 6.7% 2.8% 2.8%² 4.1%
margin

¹ Gain on sale of EPC Center Houston to IHI Corp.
3 © Kvaerner 2013 13.02.2013 ² EBITDA margin excluding sales gain.

Solid order backlog
Order intake Order backlog
NOK million NOK million
16 000 25 000

14 000 21 262
20 000
12 000 ~20%

10 000
15 000

8 000 ~30%

10 000
6 000

4 000
5 000 ~50%
2 444
2 000

0 0
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
For execution in 2013
Upstream For execution in 2014
Downstream & Industrials For execution in 2015 and later

4 © Kvaerner 2013 13.02.2013

Fourth quarter operations

Roll-up of the Clair Ridge jacket at Verdal, Norway.
5 © Kvaerner 2013 13.02.2013

Health, safety, security and environment
Two lost time injuries and twelve other injuries resulting in 14 recordable
injuries in the quarter
Four serious near miss incidents
Lost time incident frequency (LTIF) and Total recorded incident frequency (TRIF)
Per million work hours and 12 months rolling averages

4,0 LTIF TRIF
Highlights

3.2 Enforced pro-
3,0
activeness
throughout the
2,0 organisation

Started roll-out of
new HSSE
1,0
Leadership course
0.6
Increased security
0,0 focus
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

6 © Kvaerner 2013 13.02.2013

Operations
DOWNSTREAM &
UPSTREAM
INDUSTRIALS

CONCRETE JACKETS NORTH SEA INTERNATIONAL E&C AMERICAS

Hebron GBS: steel Nordsee Ost: 31 Eldfisk assembly Positioning for the Start up activities
skirts installed jackets completed progressing Browse project for the Calpine
Garrison project
Several studies on- Fabrication started E. Grieg topside Pre-qualification
going on E. Grieg and M. prefabrication and study activities Steel maintenance
Linge started projects on plan
Nyhamna onshore
detailed
engineering

7 © Kvaerner 2013 13.02.2013

Major onshore project at Nyhamna

8 © Kvaerner 2013 13.02.2013

Fourth quarter financials
Eiliv Gjesdal, Chief Financial Officer

Income statement
Full year Full year
Amounts in NOK million Q4 2012 Q4 2011 2012 ¹ 2011
Total revenue and other income 2 930 3 004 10 748 13 295
EBITDA 119 249 473 1 073
Depreciation and amortisation (19) (18) (66) (54)
EBIT 101 230 407 1 019
Net financial income/(expense) (17) (106) (31) (109)
Profit from associated companies and JVs (6) (6) (7) (6)
Profit before tax 77 119 369 903
Income tax expense (21) (38) (131) (344)
Net profit 56 81 238 559
EBITDA margin 4.1 % 8.3 % 4.4 % 8.1 %

¹ Figures include net positive effect of NOK 42 million from divestment of EPC Center Houston operations.
Historical figures include EPC Center Houston.

10 © Kvaerner 2013 13.02.2013

Q4 2012: Downstream & Industrials review
Financials Orders
 Somewhat lower activity level expected first  Calpine Garrison power plant of
half of 2013 ~USD 100-120 million
 Limited results expected until Longview  Various smaller steel maintenance projects
arbitration is concluded

Revenues, EBITDA and EBITDA margin Order backlog and order intake

900 850 1 500
1 287
689
1 130
1 039
496 1 000
442
716 702 981
400
261
500 381 358
46 234
7 148
3 6
-100 -15
0
Q4'11 Q1'12 Q2'12 Q3'12 ¹ Q4'12 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
EBITDA-% (1.8)% 0.5% 0.9% 10.4% 2.7%

Revenues EBITDA Order backlog at the end of the quarter Order intake in the quarter

¹ Figures include net positive effect of NOK 42 million from divestment of EPC Center Houston operations.
Historical figures include EPC Center Houston.

11 © Kvaerner 2013 13.02.2013

Q4 2012: Upstream review
Financials Orders
 North Sea activity level increasing  Eldfisk 2/7S hook-up and commissioning
 Early cycle projects with limited contribution assistance contract of NOK 400 million
 Nordsee Ost project commercial challenging  Growth in existing projects

Revenues, EBITDA and EBITDA margin Order backlog and order intake

3 000 2 717 25 000 22 318 21 433
2 317 20 226
2 176 20 000
1 891 1 992
2 000 14 959
15 000

8 758 9 683
10 000
1 000

287 5 000 2 817
196 119 100 136 1 097 1 511
446
0 0
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
EBITDA-% 13.2% 10.4% 5.1% 5.0% 5.0%
Revenues EBITDA Order backlog at the end of the quarter Order intake in the quarter

12 © Kvaerner 2013 13.02.2013

2012 order intake – foundation for growth
Revenues and backlog Solid long term revenue visibility
NOK million

14 000 The major 2012 project wins:
 Nyhamna onshore project
12 000
 Edvard Grieg topside, jacket and offshore
completion
10 000
 Martin Linge jacket
 Hook-up and commissioning of
8 000
Eldfisk 2/7S
 Construction of Garrison Energy Center
6 000

¹
4 000 Incorporated joint ventures will not be
included in the backlog
2 000
2013 order intake: Increase in the Nyhamna
onshore contract of NOK 5 billion
2008 2009 2010 2011 2012 2013 2014 2015
and
later
Revenues Orders booked Backlog per Backlog per
in 2013 year-end 2012 year-end 2011

Note: The Hebron project will be accounted for as an incorporated JV.

13 © Kvaerner 2013 13.02.2013

Cash flow and working capital development
Full year Full year
Amounts in NOK million Q4 2012 Q4 2011 2012 2011
Cash flow from operating activities (293) 322 (748) 1 069
Cash flow from investing activities (23) (77) (91) (231)
Cash flow from financing activities (190) - (481) (1 105)
Translation adjustments (75) 55 (29) 8
Net increase/(decrease) in cash and bank
(580) 300 (1 349) (259)
deposits

The EPC business is cash Net current operating assets (NCOA)
positive through negative NOK million
working capital:
 Customer pre- 1 000

payments¹ of 500 Downstream
& Industrials
NOK 143 million
0
 Downstream &
Industrials: Capital -500
Group
tied up in the Longview -1 000
Upstream
project
 Upstream: Capital tied -1 500
up in the Nordsee Ost -2 000
project Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

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

14 © Kvaerner 2013 13.02.2013

Balance sheet
Full year Full year
Amounts in NOK million 2012 Q3 2012 2011
Assets
Total non-current assets 2 231 2 150 1 954
Prepaid company tax 91 173 169
Current operating assets 2 660 2 498 2 256
Other current assets - 20 25
Total cash and bank 1 069 1 649 2 418
Total assets 6 052 6 491 6 823

Total equity 2 202 2 321 2 445

Non-current interest bearing liabilities 469 467 460
Other non-current liabilities 178 218 161
Current operating liabilities 3 175 3 338 3 491
Current tax liabilities 28 147 257
Other current liabilities (0) 0 8
Total liabilities 3 850 4 170 4 378
Total equity and liabilities 6 052 6 491 6 823

Equtiy ratio 36 % 36 % 36 %
Net cash 650 1 253 2 012

15 © Kvaerner 2013 13.02.2013

Summary

Strong order backlog HSSE – core value and
 More than NOK 11 billion secured for 2013 licence to operate

Focus on project execution and Maintain and develop home
improving competitiveness markets

Predictable deliveries International expansion
 Quality on time with predictable price tag

Hands-on management
Predictable dividend policy
 Proposed semi-annual dividend of
NOK 0.55 per share

18 © Kvaerner 2013 13.02.2013

The current EPC project portfolio
2011 2012 2013 2014 2015 Value at award

Mongstad TCM NOK 525M

Eldfisk topside NOK 5.5B

Nyhamna onshore NOK 11B

Edvard Grieg
NOK 8B
topside
Nordsee Ost wind
EUR 115M
jackets

Clair Ridge jackets NOK 1.7B

Edvard Grieg jacket NOK 1.1B

Martin Linge jacket NOK 1.2B

Sakhalin-1 USD 600M

Kashagan HUC USD 1.6B

V&M Star (MEP) Undisclosed

Calpine Garrison USD 100-120M

North Sea Jackets Concrete Solutions International E&C Americas

21 © Kvaerner 2013 13.02.2013

Revenue distribution
Share of revenues 2010 Share of revenues 2011 Share of revenues 2012
Percent Percent Percent

NOK NOK NOK

13.2 13.3 10.7
billion billion billion

International E&C Americas Concrete Jackets North Sea

22 © Kvaerner 2013 13.02.2013

EPC prospects
North Sea Jackets International Concrete E&C Americas
Victoria Hod Browse White Rose Gas processing
Maria Auk Other international Piltun South Chemical
Tommeliten Tor prospects on a case Amuligak Refining
Snorre Tommeliten by case basis Kara Sea Steel
Utsira high Utsira high Pechora LNG Pipe manufacturing
Skrugard Greater Clair Kammennomyskoye industry
Johan Sverdrup Development Dolginskoe Gas fired power plants
Havis Snorre Natuna Plant maintenance and
Johan Sverdrup services
Power plants
environmental compliance
projects

Existing and prioritised markets
Note: The list is not exhaustive or indicative of Kvaerner’s priorities.

23 © Kvaerner 2013 13.02.2013

Copyright and disclaimer
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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.

24 © Kvaerner 2013 13.02.2013

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