Q4 presentation

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13.02.2013

Fourth quarter results 2012

Photo:

A/S Norske Shell

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13.02.2013

Highlights

2

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.

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13.02.2013

Key financials

3

24

9

15

9

85

67

11

9

42

0

50

100

150

200

250

Q4

'11

Q1

'12

Q2

'12

Q3

'12

Q4

'12

Revenues

NOK million

-1 2

35

-71

7

-43

2

-84

0

-51

4

-1 400

-1 200

-1 000

-800

-600

-400

-200

Q4

'11

Q1

'12

Q2

'12

Q3

'12

Q4

'12

EBITDA

NOK million

Net current operating assets

NOK million

3 0

04

2 3

88

3 0

00

2 4

30

2 9

30

500

1 000

1 500

2 000

2 500

3 000

3 500

Q4

'11

Q1

'12

Q2

'12

Q3

'12

Q4

'12

8.3% 6.7% 2.8% 2.8%² 4.1% EBITDA

margin

¹ Gain on sale of EPC Center Houston to IHI Corp.

² EBITDA margin excluding sales gain.

¹

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Solid order backlog

4

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

Order intake

NOK million

0

5 000

10 000

15 000

20 000

25 000

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

Order backlog

NOK million

For execution in 2013

For execution in 2014 Upstream

Downstream & Industrials For execution in 2015 and later

21 262

2 444 ~50%

~30%

~20%

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13.02.2013

Fourth quarter operations

5

Roll-up of the Clair Ridge jacket at Verdal, Norway.

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Health, safety, security and environment

6

0,0

1,0

2,0

3,0

4,0

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

LTIF TRIF

Lost time incident frequency (LTIF) and Total recorded incident frequency (TRIF)

Per million work hours and 12 months rolling averages

Enforced pro-

activeness

throughout the

organisation

Started roll-out of

new HSSE

Leadership course

Increased security

focus

Highlights

Two lost time injuries and twelve other injuries resulting in 14 recordable

injuries in the quarter

Four serious near miss incidents

3.2

0.6

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Operations

7

NORTH SEA INTERNATIONAL JACKETS E&C AMERICAS CONCRETE

UPSTREAM DOWNSTREAM &

INDUSTRIALS

Eldfisk assembly

progressing

E. Grieg topside

prefabrication

started

Nyhamna onshore

detailed

engineering

Positioning for the

Browse project

Pre-qualification

and study activities

Nordsee Ost: 31

jackets completed

Fabrication started

on E. Grieg and M.

Linge

Start up activities

for the Calpine

Garrison project

Steel maintenance

projects on plan

Hebron GBS: steel

skirts installed

Several studies on-

going

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13.02.2013

Major onshore project at Nyhamna

8

Fourth quarter financials Eiliv Gjesdal, Chief Financial Officer

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13.02.2013

Amounts in NOK million Q4 2012 Q4 2011

Full year

2012

Full year

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 %

Income statement

10

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

Historical figures include EPC Center Houston.

¹

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Q4 2012: Downstream & Industrials review

11

Order backlog and order intake

NOK million

Revenues, EBITDA and EBITDA margin

NOK million

Revenues EBITDA

Financials

Somewhat lower activity level expected first

half of 2013

Limited results expected until Longview

arbitration is concluded

Orders

Calpine Garrison power plant of

~USD 100-120 million

Various smaller steel maintenance projects

850

496

689

442

261

-15

3 6 46 7

-100

400

900

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

1 287

1 130

702

358

1 039

716

381

234 148

981

0

500

1 000

1 500

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

EBITDA-% (1.8)% 0.5% 0.9% 10.4% 2.7%

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.

¹

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Q4 2012: Upstream review

2 176

1 891

2 317

1 992

2 717

287 196 119 100 136

0

1 000

2 000

3 000

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

12

8 758 9 683

22 318 21 433 20 226

446

2 817

14 959

1 097 1 511

0

5 000

10 000

15 000

20 000

25 000

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

Order backlog and order intake

NOK million

Revenues, EBITDA and EBITDA margin

NOK million

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

Financials

North Sea activity level increasing

Early cycle projects with limited contribution

Nordsee Ost project commercial challenging

Orders

Eldfisk 2/7S hook-up and commissioning

assistance contract of NOK 400 million

Growth in existing projects

EBITDA-% 13.2% 10.4% 5.1% 5.0% 5.0%

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2 000

4 000

6 000

8 000

10 000

12 000

14 000

2008 2009 2010 2011 2012 2013 2014 2015andlater

2012 order intake – foundation for growth

13

¹

Revenues and backlog

NOK million

Backlog per

year-end 2012 Backlog per

year-end 2011

Solid long term revenue visibility

The major 2012 project wins:

Nyhamna onshore project

Edvard Grieg topside, jacket and offshore

completion

Martin Linge jacket

Hook-up and commissioning of

Eldfisk 2/7S

Construction of Garrison Energy Center

Incorporated joint ventures will not be

included in the backlog

2013 order intake: Increase in the Nyhamna

onshore contract of NOK 5 billion

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

Revenues Orders booked

in 2013

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-2 000

-1 500

-1 000

-500

0

500

1 000

Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

Cash flow and working capital development

14

The EPC business is cash

positive through negative

working capital:

Customer pre-

payments¹ of

NOK 143 million

Downstream &

Industrials: Capital

tied up in the Longview

project

Upstream: Capital tied

up in the Nordsee Ost

project

Net current operating assets (NCOA)

NOK million

Downstream

& Industrials

Upstream

Group

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

Amounts in NOK million Q4 2012 Q4 2011

Full year

2012

Full year

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

deposits (580) 300 (1 349) (259)

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Balance sheet

15

Full year

2012 Q3 2012

Full year

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

Amounts in NOK million

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Summary and closing remarks

16

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Future market opportunities

17

Facsimiles from Capital Markets Day 10 January 2013.

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13.02.2013

Summary

18

Strong order backlog More than NOK 11 billion secured for 2013

Focus on project execution and

improving competitiveness

Predictable deliveries Quality on time with predictable price tag

Predictable dividend policy Proposed semi-annual dividend of

NOK 0.55 per share

HSSE – core value and

licence to operate

Maintain and develop home

markets

International expansion

Hands-on management

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13.02.2013 20

APPENDIX

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13.02.2013

International E&C Americas Concrete Solutions Jackets North Sea

The current EPC project portfolio

21

2011 2012 2013 2014 2015 Value at award

Mongstad TCM NOK 525M

Eldfisk topside NOK 5.5B

Nyhamna onshore NOK 11B

Edvard Grieg

topside NOK 8B

Nordsee Ost wind

jackets EUR 115M

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

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Revenue distribution

22

Share of revenues 2010

Percent


Percent


Percent

NOK

13.2 billion

NOK

13.3 billion

NOK

10.7 billion

International E&C Americas Concrete Jackets North Sea

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13.02.2013

EPC prospects

23

Victoria

Maria

Tommeliten

Snorre

Utsira high

Skrugard

Johan Sverdrup

Havis

Existing and prioritised markets

North Sea Jackets International Concrete E&C Americas

Browse

Other international

prospects on a case

by case basis

Gas processing

Chemical

Refining

Steel

Pipe manufacturing

industry

Gas fired power plants

Plant maintenance and

services

Power plants

environmental compliance

projects

White Rose

Piltun South

Amuligak

Kara Sea

Pechora LNG

Kammennomyskoye

Dolginskoe

Natuna

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

Hod

Auk

Tor

Tommeliten

Utsira high

Greater Clair

Development

Snorre

Johan Sverdrup

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13.02.2013

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,

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Copyright and disclaimer

24

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