31 October 2012 - Kvaerner ASA's 3rd quarter results presentation, Oslo, Norway

1. Third quarter results 2012
© Kvaerner 2012 31.10.2012

2. Highlights
Sakhalin-1 GBS completed
Technology Center Mongstad
project completed
Edvard Grieg hook-up and
commissioning assistance awarded
High tendering activity – several
tenders submitted
Dividend of NOK 0.53 per share
approved by EGM
2 © Kvaerner 2012 31.10.2012

3. Key financials
Revenues EBITDA Net current operating assets
NOK Million NOK Million NOK Million
3,500 250
-432
3,000 -200
200
-717
-840
2,500 -400
-1,028
-1,235
150
2,000 -600
249
3,004
3,000
109
1,500 -800
2,623
100
2,430
42 ¹
2,388
169
159
1,000 -1,000
50
85
500 -1,200
0 67 -1,400
Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12
EBITDA 6.4% 8.3% 6.7% 2.8% 2.8%²
margin
¹ Net positive effect from divestment of EPC Center Houston.
3 © Kvaerner 2012 31.10.2012 ² EBITDA margin excluding net effect from divestment.

4. Solid order backlog
Order intake Order backlog
NOK million NOK million
16,000 25,000
14,000
21 788
20,000
12,000 ~25%
10,000
15,000
~25%
8,000
10,000
6,000
4,000 ~40%
5,000
2,000
1 240
~10%
0 0
Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12
For execution in 2012
Upstream For execution in 2013
Downstream & Industrials For execution in 2014
For execution in 2015 and later
4 © Kvaerner 2012 31.10.2012

5. Third quarter operations
The Bull Arm site being prepared for Hebron outside St.John’s, Newfoundland.
5 © Kvaerner 2012 31.10.2012

6. Health, safety and environment
Three lost time injuries and nine other injuries resulting in 12 recordable
injuries in the quarter
Two serious near miss incidents (no injuries)
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 Received “Best
3.0
contractor award”
for the Sakhalin-1
project
2.0
Enforced pro-
activeness
throughout the
1.0 organisation
0.6
0.0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept
6 © Kvaerner 2012 31.10.2012

7. Operations
DOWNSTREAM &
UPSTREAM
INDUSTRIALS
CONCRETE JACKETS NORTH SEA INTERNATIONAL E&C AMERICAS
Sakhalin-1 GBS Nordsee Ost: 29 Eldfisk assembly Positioning for the Demobilising V&M
successfully jackets completed phase started Browse project MEP project
completed Securing major Kashagan Hook-
E. Grieg topside Steel maintenance
Hebron preparing sub-contracts for project placing up project close
for start of Grieg and Linge down projects on plan
purchase orders
construction
7 © Kvaerner 2012 31.10.2012

8. Third quarter financials
Eiliv Gjesdal, Chief Financial Officer

9. Income statement
Full year
Amounts in NOK million Q3 2012¹
¹ Q3 2011 YTD 2012¹ ¹ YTD 2011 2011
Operating revenue 2 430 2 623 7 818 10 292 13 295
EBITDA 109 169 354 825 1 073
Depreciation and amortisation (17) (12) (47) (36) (54)
EBIT 93 157 306 789 1 019
Net financial items, including result
(11) 0 (15) (4) (116)
from associated companies and JVs
Profit before tax 82 157 292 785 903
Income tax expense (33) (22) (110) (307) (344)
Net profit 48 135 182 478 559
EBITDA margin 4.5 % 6.4 % 4.5 % 8.0 % 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.
9 © Kvaerner 2012 31.10.2012

10. Q3 2012: Downstream & Industrials review
Financials Orders
 Limited results expected until Longview  Growth in existing contracts
arbitration is concluded  New awards tend to be somewhat delayed
 EPC Center divested in July resulting in a net
positive effect of NOK 42 million
Revenues, EBITDA and EBITDA margin Order backlog and order intake
NOK million NOK million
900 850 2,000
689
549 1,500 1,376
496 1,287
442 1,130
400 1,000
702
716
46 500 358
3 6 298 381
234 148
-39 -15
-100 0
Q3'11 Q4'11 Q1'12 Q2'12 Q3'12¹ Q3'11 Q4'11 Q1'12 Q2'12 Q3'12
EBITDA-% (7.1)% (1.8)% 0.5% 0.9% 10.4%
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.
10 © Kvaerner 2012 31.10.2012

11. Q3 2012: Upstream review
Financials Orders
 Activity level increasing in North Sea  Edvard Grieg hook-up and commissioning
 EBITDA margin expected within normalised assistance contract of NOK 525 million
range of 5-10% for 2012
 Commercial challenges on Nordsee Ost
project
Revenues, EBITDA and EBITDA margin Order backlog and order intake
NOK million NOK million
3,000 25,000 22,318 21,433
2,317
2,176 20,000
2,052 1,992
1,891
2,000 14,959
15,000
10,482 9,683
10,000 8,758
1,000
253 287 5,000 2,817
196 119 100 789 1,097
446
0 0
Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12
EBITDA-% 12.3% 13.2% 10.4% 5.1% 5.0%
Revenues EBITDA Order backlog at the end of the quarter Order intake in the quarter
11 © Kvaerner 2012 31.10.2012

12. Cash flow and working capital development
Full year
Amounts in NOK million Q3 2012 Q3 2011 YTD 2012 YTD 2011 2011
Cash flow from operating activities 317 (49) (455) 747 1 069
Cash flow from investing activities (10) (48) (68) (154) (231)
Cash flow from financing activities 3 425 (292) (1 104) (1 105)
Translation adjustments (4) 15 46 (47) 8
Net increase/(decrease) in cash and
306 343 (769) (558) (259)
bank deposits
The EPC business is Net current operating assets (NCOA)
cash positive through NOK million
negative working 1,000 Downstream
capital: 500 & Industrials
 Customer pre-
0
payments¹ of
NOK 242 million -500
Group
 Downstream & -1,000
Industrials: Capital Upstream
-1,500
tied up in the -2,000
Longview project Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12
¹ Invoicing in excess of cost and estimated earnings less amounts billed in advance but not received (on a project by project basis).
12 © Kvaerner 2012 31.10.2012

13. Balance sheet
Full year
Amounts in NOK million YTD 2012 YTD 2011 2011
Assets
Total non-current assets 2 150 1 821 1 954
Prepaid company tax 173 111 169
Current operating assets 2 498 2 771 2 256
Other current assets 20 - 25
Total cash and bank 1 649 2 118 2 418
Total assets 6 491 6 822 6 823
Total equity 2 321 2 271 2 445
Non-current interest bearing liabilities 467 457 460
Other non-current liabilities 218 259 161
Current operating liabilities 3 338 3 799 3 491
Current tax liabilities 147 33 257
Other current liabilities 0 2 8
Total liabilities 4 170 4 551 4 378
Total equity and liabilities 6 491 6 822 6 823
Equtiy ratio 36 % 33 % 36 %
Net cash 1 253 1 678 2 012
13 © Kvaerner 2012 31.10.2012

14. Summary and closing remarks
14 © Kvaerner 2012 31.10.2012

15. Strong market in all business areas
Atlantic Canada Arctic Russia
• Operators increasing North Sea • Strong future market in
Arctic activities Kara Sea and Sakhalin
• Long term • High activity
• Several tenders • Studies awarded and
opportunities on-going
• Office in St. John’s submitted
established • New contracts
expected within next
quarters
North America Caspian
• Gas fired power plant • Strong future
market positive market, uncertain
• Healthy US steel timing
market • Development of
• Contract awards delivery model
somewhat delayed
Asia Pacific
• Browse FID expected
1H 2013
• Multiple opportunities
within next 24 months
• Delivery model
established
STRATEGIC AND SELECTIVE APPROACH REQUIRED
15 © Kvaerner 2012 31.10.2012

16. Summary and closing remarks
Backlog with good basis for HSE – core value and licence
future earnings to operate
Solid market calls for selective Maintain and develop home
tendering approach markets
Contract awards expected within International expansion
the next quarters
Hands-on management
Predictable dividend policy
16 © Kvaerner 2012 31.10.2012

18. APPENDIX
18 © Kvaerner 2012 31.10.2012

19. Downstream & Industrials –
historical data for Union Construction
Revenues, EBITDA and EBITDA margin Order backlog and order intake
NOK million NOK million
700 2,000
608
566
500 419 1,500
364 362 1,158 1,153
300 951
1,000
598
100 500 358
12 14 5 515
6 5
195 260 229 148
-100 0
Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12
EBITDA-% 3.3% 1.0% 1.3% 2.4% 1.3%
Revenues EBITDA Order backlog at the end of the quarter Order intake in the quarter
19 © Kvaerner 2012 31.10.2012

20. Revenue distribution
Share of revenues 2010 Share of revenues 2011 Share of revenues last 12 months
Percent Percent Percent
NOK NOK NOK
13.2 13.3 11.0
billion billion billion
International EC Americas Concrete Jackets North Sea
20 © Kvaerner 2012 31.10.2012

21. The current EPC project portfolio
2009 2010 2011 2012 2013 2014
Mongstad TCM
Eldfisk topside
Nyhamna onshore
Edvard Grieg topside
Ekofisk jacket
Nordsee Ost wind
jackets
Clair Ridge jackets
Edvard Grieg jacket
Martin Linge jacket
Sakhalin-1
Kashagan HUC
V&M Star (MEP)
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
International E&C Americas Concrete Solutions Jackets North Sea
21 © Kvaerner 2012 31.10.2012

22. EPC prospects
North Sea Jackets International Concrete E&C Americas
Martin Linge Montrose/Arbroath Browse White Rose EPC Gas processing
Mariner Dagny Other international Piltun South Chemical
Bressay Ivar Aasen prospects on a case Amuligak Refining
Aasta Hansteen Mariner by case basis Pechora LNG Steel
Dagny Bressay Kammennomyskoye Pipe manufacturing
Ivar Aasen Peregrino Dolginskoe industry
Victoria Jackdaw Natuna Gas fired power plants
Tommeliten Hod Plant maintenance and
Snorre Auk services
Skrugard Tor Power plants
Johan Sverdrup Tommeliten environmental compliance
Havis Utsira high projects
Ormen Lange Greater Clair
compression platform Development
Snorre
Johan Sverdrup
Existing and prioritised markets
Note: The list is not exhaustive or indicative of Kvaerner’s priorities.
22 © Kvaerner 2012 31.10.2012

23. 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.
23 © Kvaerner 2012 31.10.2012