Aker Philadelphia Shipyard · Aker Philadelphia Shipyard ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the

part of Aker

The Premier Shipbuilder in the U.S.Aker Philadelphia Shipyard

Investor Day Presentation MaterialSeptember 9, 2008

part of Aker

Important information

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 Aker Philadelphia Shipyard 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 Aker Philadelphia Shipyard ASA’sbusinesses, 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 Aker Philadelphia Shipyard 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. Aker Philadelphia Shipyard ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Aker Philadelphia Shipyard ASA nor any of its directors, officers, employees or consultants assisting in this Presentation will have any liability to you or any other persons resulting from your use thereof.

Slide 2

part of Aker

Building the Future

Slide 3

1. Introduction

2. Company Presentation

3. Financial Overview

Table of contents

part of Aker

Section 1Introduction

part of Aker

Building the Future

Slide 5

Today’s PresentationAKPS will continue to return value to our shareholders

AKPS possesses:

-State of the art shipyard, processes and people-

-Unique position in a unique market-

-The ability to deliver predictable results-

VP Planning

27 yrsVP Production

16 yrsCFO

17 yrs

VP Bus Dev

12 yrs

VP Procurement

26 yrs

VP HR

14 yrs

part of Aker

Our Vision and Values

HSEmindset

We take personal responsibility for HSE

because we care

Deliveringresults

We deliver consistently and strive to beat our goals

Customerdrive

Building customer trustis key to our business

Peopleand teams

All our major achievementsare team efforts

Hands-on management

We know our business and get things done

Open anddirect dialogue

We encourage early andhonest communication

Mission:Premier provider of

merchant vessels in the U.S. Jones Act Market

Common Aker values define us as part of a larger organization

Slide 6

Building the Future

part of Aker

Section 2Company presentation

part of Aker

Building the Future

Slide 8

Transformation of the ShipyardAKPS is the most modern commercial shipyard in the U.S., with $650 million invested in facilities and equipment since 1997

The yard in 1997… The facility today…

part of Aker

Building the Future

Slide 9

Advanced Shipbuilding PracticesAKPS’s innovative production approach utilizes the most sophisticated shipbuilding technologies and processes in the U.S.

Modern, automated steel assembly line

Total processing capability of 25,000 tons annually

High lift capacity (660 tons) and efficient layout

Sophisticated Fabrication EquipmentConcept, design and detailed engineering

Advanced production methods and expertise

Procurement and logistics support

Co-Operation w/ Leading Shipbuilders

More efficient vertical build process

Greater flexibility and fewer space constraints

Faster production times and reduced manhours

Extensive ModularizationStrong subcontractor relationships reduce need for specialized labor and equipment

Advantageous agreements with suppliers

Efficient Procurement Practices

part of Aker

Building the Future

Slide 10

Strong Management and Highly Skilled, Flexible WorkforceAKPS possesses the most skilled shipbuilding workforce in the U.S.

~200

~500

~600

~1,300

Experienced senior management team with extensive international shipbuilding industry knowledge

Emphasis on employee training

Strong relationship with union workforce

AKPS’s unique partnership with its workforce allows for a flexible arrangement for the use of over 600 subcontractors

Salaried Employees

Employee Snapshot

Union Employees

Subcontractors

Total

part of Aker

Building the Future

Slide 11

Exclusive Rights to World-Class Hyundai DesignsAKPS’s strategic agreements and experience allow us to provide the vessels desired by leading companies

“User friendly” designs translate into more cost-effective shipbuilding

Highly efficient designs create significant competitive differentiators versus peer vessels

Established track record for quality

Product/Shuttle Tankers

Container Ships

part of Aker

Building the Future

Slide 12

Track Record of Efficiency Gains

AKPS has continued to experience operational improvements

Production time has declined dramatically and a further reduction in production time is expected

Vessel throughput has consistently improved year over year since 2005

Internal metrics show continued productivity improvements each of the last four quarters

Unmatched by U.S. competitors, AKPS is progressing towards improved levels of production efficiency

Manhours per Vessel

Through-put

-46%

Korean Shipyards

Other U.S. Shipyards

0.2 0.30.5

0.7

1.1

1.5

2.02.3

2.73.0

2000 2001 2002 2003 2004 2005 2006 2007 2008E 2009E

part of Aker

1

33

0

10

20

30

40

2009 2011 2013 2017 2020 2023

Tank

ers

12

16

11

8

1

7

0

4

8

12

16

20

>35 30 - 35 25 - 30 15 - 25 5 - 15 <5

Cont

aine

r Shi

ps

Building the Future

Slide 13

New offshore oil exploration and aging ship fleets will drive significant demand for Jones Act tankers and container ships over the next twenty years

The Jones Act protects AKPS from foreign competition

Product tanker supply deficit due to old vessels and increase in trade

AKPS estimates the market for shuttle tankers to be up to $5-6 billion over the next 15 years

AKPS estimates that the long-term market for container ships is up to $4-6 billion

- Strong fundamentals for additional capacity on “short sea” routes

28% CAGR

Candidates for Replacement

Shuttle Tanker Demand – GoM

Age of Container Ship Fleet (Years)

Expanding Demand in the Protected Jones Act Market

10

3716

9

<20 years

>20 years

Tankers underconstruction

ATBs underconstruction

Product Tanker Fleet

part of Aker

Building the Future

Slide 14

Flexible Capacity and Continuous ImprovementAKPS has flexibility and potential to capitalize on both additional Jones Act opportunities and other opportunities

Shuttle Tankers– Developing demand as oil exploration moves into deeper waters off the coast of the Gulf of

Mexico– Management anticipates building several tankers as part of its current backlog– New builds are significantly more cost-effective than converting older vessels

Product Tankers– Supply deficit due to tougher vetting standards and increases in quantity of transported product

Container Vessels– Major operators Matson (13 ships) and Horizon (21 ships) are currently planning to replace

aging container vessel fleetsShort Sea Barges and Ro/Ro’s– Short sea shipping services are being evaluated by the U.S. Government to relieve overworked

rail and freightLNG Tankers– Natural gas exploration in Alaska will create demand for multipurpose vessels (MPVs) and LNG

Tankers with icebreaking capabilities– AKPS can access state-of-the-art icebreaker technologies due to strong industry relationships

Military Vessels– AKPS could also service an aging military product tanker fleet or potentially build other military

vesselsLarge Steel Structures– Fabrication shops well suited for non-marine steel structures

Jones Act Opportunities

Other Opportunities

part of Aker

Building the Future

Slide 15

Leadership Position in the U.S. Jones Act Market

Direct Competitor

NASSCOSan Diego, CA Constructing Jones Act commercial tankers

Other Shipbuilders w/ Commercial Capabilities

Atlantic MarineMobile, AL

Building and assembling modules for AHL product tankers

Bender ShipyardMobile, AL

Constructs smaller commercial and governmental vessels

Bollinger ShipyardsLockport, LA

Constructs smaller commercial and governmental vessels

VT HalterPascagoula, MS

Constructs smaller commercial and governmental vessels

Limited U.S. Competition

As a result of several key points of differentiation, AKPS has become the clear market leader in the U.S.

Demonstrated track record of success with Hyundai’s industry-leading designs

Highly efficient production capabilities and lean manufacturing practices will continue to increase capacity

Ability to secure favorable material procurement agreements due to strong industry relationships

Focus on commercial market yields a reduction of specialized labor and greater flexibility

Available capacity to expand product offerings in 2011 and beyond

History of on-time deliveries

Key Differentiators

part of Aker

Section 3Financial Overview

part of Aker

Building the Future

Slide 17

AKPS’s revenue streams into 2010 are secured by contracts; rising EBITDA margins and low capital expenditures will result in strong cash flow generations

Highly Predictable Revenues and Improving Profitability

Summary FinancialsRevenues for the years 2008 – 2010 are highly predictable - Secure contracts in place for eight additional

tankers

For the fiscal year 2008 AKPS expects record revenues and earnings

AKPS projects strong EBITDA growth and cash flow generation through 2010

Continued improvement in efficiency through entire cost base

Targeted revenues in excess of $300M in 2010

Targeted EBITDA Margin in excess of 7% in 2010

$ millions 2005 2006 2007 2008F

Revenue 88 247 264 274 Growth NA NA 7% 4%

EBITDA 7 10 13 15 Margin 8% 4% 5% 5%

part of Aker

Building the Future

Slide 18

Summary Balance Sheet

$ millions Dec06 Dec07 Jun08

Vessels under construction - receivables 243 93 110Cash and cash equivalents 0 58 32Other current assets 18 16 22Total current assets 262 168 163Total non-current assets 86 85 84Total assets 348 253 248

Construction and other short term loans 221 79 78Trades and payables 29 39 30Other current liabilities 4 7 2Total current liabilities 254 125 110

Total non-current liabilities 24 30 37

Total liabilities 278 155 147

Total equity 70 98 101

Total equity and liabilities 348 253 248

Strong balance sheet provides flexibility

part of Aker

Key Financial Ratios

Working Capital $54 million as of June 30, 2008

Current ratio of 1.5 as of June 30, 2008

Debt to capital (excluding construction financing)• 30% as of June 30, 2008

Anticipated Dividend Policy ratios• Dividend Yield of 4-8%• Payout Ratio of 50-100%

Strong financial ratios confirm healthy position

Slide 19

Building the Future

part of Aker

Summary of Favorable Financing Arrangements

$20 million term debt for Capital expenditures spent in 2007/2008• Interest rate of 2.75%• Maturity-bullet payment of $20 million on March 27, 2012

$150 million construction financing facility• Interest rate of Libor plus 2.25(5.06% at August 21)• Facility matures approximately Q1 2011

Original funding as part of the Master Agreements with Governmental parties• Approximately $17.6 million outstanding at 12/31/07• Interest rate of 3.75%

• Maturities occur on July 1, 2015 and October 1, 2015

AKPS’s lending partners have confidence in us as reflected in our favorable cost of capital

Slide 20

Building the Future

part of Aker

Cash Position

Cash and cash equivalents at June 30, 2008 was $31.5 million

This cash gives us flexibility and can be used for the following:• Deposits on long lead items• Funding of new project engineering/specs• Short term working capital needs• Dividends

AKPS’s has sufficient cash to prepare for the future

Slide 21

Building the Future

part of Aker

Dividend Policy

The Company’s objective is to provide its shareholders with a competitive return over time based on its earnings. Any dividends will be considered in conjunction with the Company’s financial position, debt covenants, its capital requirements and potential strengthening of the Company’s financial structure. The Company aims to pay out between 50% and 100% of its net profits.

AKPS aims to pay out 50% to 100% of our net profits

Slide 22

Building the Future

part of Aker

2008 Interim Dividend

The Company’s goal is to pay out dividends on a consistent basis

Dividend of 2.50 NOK per Share approved by the EGM held on September 2, 2008

September 2 - Traded in-dividend date

September 3 - Traded ex-dividend date

September 12 - Dividend Payment

Interim dividend will not impact Company’s ability to pay out a dividend based on 2008 annual accounts

Following through on our promises

Slide 23

part of Aker

Building the Future

Slide 24

State-of-the-Art Shipyard

Exclusive Rights to World-Class Hyundai Designs

Leadership Position in the strong U.S. Jones Act Market

Strong Management and Highly Skilled, Flexible Workforce

Flexible Capacity and Continuous Improvement Opportunities

Highly Predictable Revenues and Improving Profitability

High Dividend Potential

Investment HighlightsUnique opportunity to be part of the most modern U.S. commercial shipyard with a prospects for continued success

part of Aker

Appendix

part of Aker

Building the Future

Slide 26

Company OverviewA U.S. shipyard that utilizes state-of-the-art shipbuilding practices to manufacture ocean-going commercial vessels for the Jones Act market

Company: AKPS is the most modern U.S. shipyard focused on building commercial vessels protected by the Jones Act

Products: AKPS currently builds mid-sized (30,000 –45,000 dwt), ocean-going tankers and container ships with double-hull designs; the yard has the capabilities and infrastructure to build significantly larger vessels (50,000 – 80,000 dwt)

Customers: AKPS’s products are sold or leased through an affiliated organization to leading oil producers and shipping lines

Facility: AKPS’s shipyard was completely rebuilt in 1998 and has been optimally designed to support commercial shipbuilding operations

Processes: The yard utilizes modular construction, automated fabrication systems and outsourcing to enhance productivity

Backlog: AKPS’s backlog of eight vessels plus 13 options, representing total potential revenues of $2.0 to $3.0 billion, is the largest in the U.S. commercial market

Product Tankers Container Ships

Commercial Vessels

$88

$242$264

0%

2%

4%

6%

8%

10%

0

50

100

150

200

250

300

2005 2006 2007

EBIT

DA M

argi

n

$Mill

ions

Financial Summary

Note: 2005 financials represent half year numbers, as the business was previously part of a combined entity

part of Aker

Philadelphia Naval Shipyard

1876First Ship Built

on League Island

1919350 t

Hammerhead Crane Installed

1942Battleship New

Jersey Built

1996PNSY Closes

Master Agreement

signed

1997

2000Construction of

New Yard Completed

Contract with Matson for 2

ships

2002

2003Delivery of First Containership

2006Delivery of

Fourth Containership

2007Delivery of

Three Product Tankers

Listing on Oslo Stock

Exchange

2005Aker Philadelphia Shipyard

1970Last New

Construction Ship Delivered

In Just 10 Years, New Facilities, 8 Ships Built, 8 on order and 1,300 Jobs

Timeline – Shipbuilding in Philadelphia

Building the Future

Slide 27

part of Aker

50%

29%

21%

Industrial Conglomerate Float Others Over 5%

05101520253035404550

45.00

50.00

55.00

60.00

17-D

ec27

-Dec

6-Ja

n16

-Jan

26-J

an5-

Feb

15-F

eb25

-Feb

6-M

ar16

-Mar

26-M

ar5-

Apr

15-A

pr25

-Apr

5-M

ay15

-May

25-M

ay4-

Jun

Volu

me

(000

's)

Pric

e (N

OK)

Building the Future

Slide 28

Current Trading Summary

Ownership SnapshotShare Price Evolution

Enterprise Value Calculation$ millions

Share Price 10.33$ Shares Outstanding 10.2Equity Value 105.4$

Interest-bearing Loans 32.6$ Excess Cash (37.3)$ Enterprise Value 100.7$

part of Aker

Length Over All 185 mBeam 32.2 mDepth, molded 18.8 mDraft, max 12.2 mSpeed 14.0 kntsDeadweight 46,000 t

Capacity 320,000 bbl

Bow loading System 8,000 m3/hr

Discharge (Framo System) 3,600 m3/hr

DP2 positioning capability with tunnel and azimuthing thrusters and redundant diesel generator room

EPA Tier II Compliant

DP2 specifics: 1 azimuth thruster forward 1 tunnel thruster forward2 tunnel thrusters aft1 Controllable pitch propeller

Generation II Shuttle Tanker for U.S. GoM

Building the Future

Slide 29

part of Aker

Key element of Aker’s Early Production System package

Lease FPSO

Subsea Systems

Risers,Flowlines

Aker Integrated Project

Team

Lease Shuttle Tanker Installation

A unique offering potential across Aker provides additional credibility

Field Architecture &

Flow AssuranceOilCo

Project Shuttle

Building the Future

Slide 30

part of Aker

Hull 001 - M.V. Manukai (CV2600)

Our Vessels

Container Vessels – 4 Delivered

Hull 004 - M.V. Maunalei (CV2500)

Hull 002 - M.V. Maunawili (CV2600)

Hull 003 - M.V. Manulani (CV2600)

Building the Future

Slide 31

part of Aker

Our VesselsVeteran MT46 Product Tankers (4 of 12 Delivered)

Hull 005 - Overseas Houston

Hull 007 - Overseas Los Angeles Hull 008 - Overseas New York

Hull 006 - Overseas Long Beach

Building the Future

Slide 32

part of Aker

Our Vessels

Four product tankers under constructionHull 009 – Outfitting Dock Hull 010 – Engine Lowering in Dry Dock

Hull 012 – Pre FabricationHull 011 – Grand Block Assembly

Building the Future

Slide 33