4Q 2014 Presentation

25 February 2015

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This presentation (the “Presentation”) has been produced by Scanship Holding ASA ("Scanship" or the "Company") exclusively for

information purposes.

This Presentation includes forward-looking statements regarding Scanship, including projections and expectations, which involve risk and

uncertainty. Such statements are included without any guarantee as to their future realization. Although Scanship currently believes that

the expectations regarding the Company reflected in such forward-looking statements are based on reasonable assumptions, no

assurance can be given that such projections will be fulfilled. Any such forward-looking statement must be considered a long with the

knowledge that actual events or results may vary materially from such predictions due to, among other things, political, economic, financial

or legal changes in the markets in which Scanship does business, and competitive developments or risks inherent to the Company’s

business plans. Many of these factors are beyond Scanship’s ability to control or predict. Given these uncertainties, readers are cautioned

not to place undue reliance on any forward-looking statements. Accordingly, the Company does not accept any responsibility for the future

accuracy of the forward-looking statements expressed in this Presentation or the actual occurrence of the forecasted developments. The

Company does not intend, and does not assume any obligation, to update any such forward-looking statements as of any date subsequent

to the date hereof.

No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including, without

limitation, projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors,

omissions or misstatements contained herein, and, accordingly, the Company does not accept any liability whatsoever arising directly or

indirectly from the use of this Presentation.

By receiving this Presentation, the recipient acknowledges that he will be solely responsible for its own assessment of the market and the

market position of the Company and that he will conduct his own analysis and be solely responsible for forming his own view of the

potential future performance of the businesses of the Company. This Presentation must be read in conjunction with the recent financial

information, as well as other publicly disclosed information.

Nothing in this Presentation, nor any other information provided to the recipient by the Company or any of its advisers constitutes, or may

be relied upon as constituting, investment advice or any financial, tax or legal advice by such persons or anybody else.

Disclaimer

Scanship Holding ASA

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• Envirotech company – solution provider for

water purification and waste processing

• World leading cruise industry supplier

• Unique track record since 1993 with supplies

to 49 newbuilds and 30 turnkey retrofits

• R&D driven with new game changing

technologies under development

• One stop shop strategically located around the

cruise liner and yard clusters

6

R&DSales &

marketing

Engineering &

DesignProcurement Installation

Manufacturing

& assembly

(outsourced)

Commissioning

Aftersales

Service, spares

& chemicals

Business model scope of services

In brief Locations

1 Tønsberg/Lysaker (NORWAY)

2 Fort Lauderdale (US)

3 Victoria (CANADA)

4 Turin (ITALY)

5 Gdynia (POLAND)

6 BuHua Hai Equipment &

Engineering Co., (CHINA)

About the company

Scanship Americas Inc. Scanship Poland Sp.z o.o

Scanship AS

100%

100% 100%

Scanship Canada Inc.

100%

4

• Treats all wastewater streams from onboard

operations including galley water, reject water from

foodwaste management systems and bio-residue

treatment

• Meets all IMO Marpol- and local port sate regulations

such as Alaska and Baltic Sea (Helcom). System type

approved according to IMO Marpol MEPC 227(64)

• Compact, efficient and easy to operate, low cost with

an attractive LCC and ROI

• 44 systems in operation, whereas 19 systems

supplied to newbuilds and 25 systems as retrofits.

Layout illustration of the Scanship AWP on the ship classes NCL

Getaway and RCCL Quantum built at Meyer Werft in Papenburg,

Germany

Layout

illustration for

the Scanship

Waste

Management

system on the

Viking Star

project at

Fincantieri

Waste

Management

systemFood waste

Incinerator

Waste recycling

Bio-sludge

AWP (Advanced

Wastewater

Purification)

system

• Processes all garbage, foodwaste and bio residues from

shipboard operations

• Vacuum foodwaste conveying system to eliminate

overboard discharge and risk of contamination

• Incinerator system meets and exceeds the IMO Marpol

Annex V standard

• Recycled waste obtain savings and income from landing

• 50 systems in operation whereas 45 systems supplied

to newbuilds and 5 systems supplied as retrofits.

Company system offerings

Combined supplies of AWP and Waste Managment systems defined as a «total clean ship system»

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Operational highlights 2014

• Completed IPO on the Oslo Stock Exchange

• Record high order intake in 4Q14

• Maintained leading market share for AWP*

systems on new cruise ships

• Continued technology development and

commercialization of new solutions

* AWP – Advanced Water Purification system

RCCL’s Quantum of the Seas launched 2014 with Scanship AWP

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• STX France awards contracts for Scanship

Total Clean Ship* systems on MSC’s E34

and F34, with options for G34 and H34

• STX France awards contract for Scanship

AWP system on RCCL’s B34, the forth Oasis

class vessels

• Fincantieri calls on the option for the

Scanship Total Clean Ship* system on Viking

Ocean Cruises’ newbuild no. 4

Record high order intake in 4Q14

Illustration of MSC newbuilds E34 and F34

B34 Steel cutting ceremony at STX France

* Combined system supplies AWP and Waste Managment system

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Financial highlights 4Q14

• Total revenues 4Q14 at NOK 43.2m

ending full year NOK 145.6m

• Total revenues reflects retrofit market on

hold

• EBITDA* for 4Q14 at NOK 0.7m ending

full year NOK 4.4m -

0,5

1,0

1,5

2,0

2,5

-

10

20

30

40

50

1Q14 2Q14 3Q14 4Q14

Revenues & EBITDA*

Rev EBITDA

* EBITDA before non recurring items

NOKm NOKm

8

Revenues & gross margin 2012 - 2014

• Newbuild growth from NOK 46.6m to NOK

103.5m through period

• Retrofit revenue declined in the period

from NOK 60m down to NOK 3.3m

• Retrofits on hold but potential remains

unchanged

• Positive development in gross margin*

* 2012 Gross Margin is proforma, restated to reflect changes

to project accounting implemented from 2013

NOKm

27%

28%

29%

30%

31%

32%

33%

34%

35%

36%

-

20

40

60

80

100

120

140

160

180

2012 2013 2014

Segment Revenues & Gross margin

Newbuild Aftersales Retrofit Margin %

9

• Significant 4Q14 order intake within

newbuild

• Order backlog at year-end of NOK

185m, +83% from 3Q14

• Positive outlook from strong

momentum in cruise market

NOKm

0

50

100

150

200

1Q14 2Q14 3Q14 4Q14

Order Backlog

Building backlog

10

Revenue recognition in backlog

• Revenue recognition is driven by internal

hours consumed on each project

• Internal hours include engineering, project

management, procurement and

commissioning

• At the time of main equipment delivery the

project revenue recognition will typically

reach ~ 80 - 85% of contract amount

• Remaining revenue is recognized from

equipment delivery to date of completion

Project Name

Main equipment

delivery

(estimated)

Project

Completion

(estimated)

Mein schiff 4 - TUI 2 4Q-2013 2Q-2015

Viking Star 4Q-2013 2Q-2015

Anthem of the Seas 4Q-2013 2Q-2015

Oasis 3 - A34 1Q-2014 2Q-2016

Carnival Vista 3Q-2014 1Q-2016

Norwegian Escape 3Q-2014 4Q-2015

Viking Sky 4Q-2014 2Q-2016

Viking Sea 1Q-2015 4Q-2016

Ovation of the Seas 1Q-2015 2Q-2016

Mein schiff 5 - TUI 3 2Q-2015 2Q-2016

Genting World I 3Q-2015 4Q-2016

Fincantieri, Viking 4 3Q-2015 3Q-2017

Oasis 4 - B34 3Q-2015 3Q-2018

MSC E34 4Q-2015 1Q-2017

Norwegian Bliss 1Q-2016 3Q-2017

Mein schiff 6 - TUI 4 2Q-2016 2Q-2017

Genting World II 3Q-2016 4Q-2017

MSC F34 3Q-2017 1Q-2019

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• Awarded 9 newbuilds during 2014 from

total of 15 awards

• ~ 63% Scanship footprint in cruise

newbuilding marketspace, on 22 of total

35 vessels

• High tendering activity for several

newbuilds to fill yard slots from 2017 -

expected to impact revenue from 2015

Maintains high share in larger newbuild market

Block construction of Viking Sea with Scanship equipment

Illustration of Scanship waste system in the same block

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Newbuild overview with 2014 contracting

Contract awards

in 2014

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Status retrofit

• AWP retrofits pushed back by Exhaust

Gas Scrubbers (ECA)

• IMO decision on Helcom implementation

is expected to re-boost demand

• AWP retrofit cruise market size is

estimated to be ~ NOK 2.3bn

• Wärtsilä Hamworthy awarded AWP retrofit

for Cunard's QM2 in “exclusive” bidding

process

• Higher activity on feasibility studies and

tendering compared to last year

382

116

128

138

Total Already installed

AWP

Excluded Retrofit potential

AWP retrofit potential(# of vessels)

~ NOK 2.3bn

NOKm

0

10

20

30

40

50

60

70

2012 2013 2014

Retrofit Revenue (Scanship)

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Steady underlying growth in aftersales

• 33% growth in aftersales through

period 2012 – 2014

• Expect continued growth as more ships

are being delivered

• Revenue in 2013 includes emergency

repair from Carnival Triumph fire

NOKm

30%

34%

38%

42%

46%

50%

-

10

20

30

40

50

2012 2013 2014

Aftersales Revenue & Gross Margin

Aftersales CCL Triumph "fire" GM%

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Status technology development

• Development of the new Waste to Energy

solution - MAP*- on schedule

• Test facility under assembly in Norway with

operations set to start 1H15

• Waste to Energy solution for newbuilds and

retrofit will provide tangible pay-back for the

end user

• 6 product development projects completed in

4Q14, strengthening our system’s

effectiveness and broadening our range of

environmentally friendly products

* MAP – Microwave Assisted Pyrolysis

Microwave pyrolysis inside test reactor – test in 2014

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Condensed consolidated income statement

(NOK 1 000)

Unaudited Unaudited Unaudited Audited

4Q14 4Q13 FY 2014 FY 2013

Total operating revenue 43.188 49 572 145 631 169 974

Gross Margin 12 815 18 890 46 323 52 995

Gross Margin % 30 % 38 % 32 % 31 %

OPEX 12 069 9 370 41 915 32 013

EBITDA before non-recurring items 747 9 520 4 408 20 982

Operating profit (EBIT) 175 9 290 857 19 890

Finance income 1 745 1 073 9 318 3 042

Finance costs -16 040 -4 631 -22 783 -15 744

Profit before tax -14 120 5 732 -12 609 7 188

Profit for the period -10 331 4 103 -9 212 5 146

• Gross Margin % lower mainly

due to changes in project time-

and -cost estimates

• Gross Margin % improvement

YoY 2013 – 2014

• Opex increase reflects build-up

for higher activity

• Finance costs 4Q14 include

unrealized loss on financial

instruments NOK 9.9m

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Impact financial instruments

• Realized loss on Financial

Instruments includes approx.

NOK 3.3m related to currency

hedges that were renewed

• Some of the effect reversed to

date in 1Q15

• Forward share of hedging on new

contracts are reduced with larger

share of EUR-purchases

Currency effects on financial items in 4Q 2014

(NOK 1 000) Realized Unrealized Total

Agio 691 1 155 1 846

Disagio -810 -173 -983

Financial Instruments -4 948 -9 868 -14 815

Sum -5 067 -8 885 -13 952

Financial Instruments at end 4Q 2014

Maturity

(EUR 1 000) 2015 2016 2017 - Total

Amount secured through FI € 10 810 € 2 883 € 3 869 € 17 562

Average EUR/NOK Rate 8,58 8,28 8,71 8,56

% of Contract payments secured 94 % 83 % 72 % 86 %

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Consolidated condensed cash flow statement

• Cash flow from operating activities

reduced by NOK 3.3m due to EURO-

spike

• Late payments from Yard of approx.

NOK 10m has reduced Cash and

reduced Net cash flow from operating

activities

• Overdue payments from Yard at end

4Q14 received in 1Q15

• Investing activities mainly from product

development activities

• Cash flow expected to improve in 2015

Unaudited

(NOK 1 000) 4Q 2014

Profit before income tax -14 120

Adjustments:

Net cash flow from operating activities -5 567

Net cash flow from investing activities -3 301

Net cash flow from financing activities 7 775

Net change in cash and cash equivalents -1 093

Cash and cash equivalents ingoing balance 4 915

Cash and cash equivalents at end of period 3 821

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• Late payments from Yard of approx. NOK

10m has reduced Cash and increased Trade

Receivables

• Increase in non-current assets mainly due to

product development activities

Condensed consolidated financial statement

Unaudited Audited

(NOK 1 000) 31.12.2014 31.12.2013

ASSETS:

Total non-current assets 21 816 14 077

Current assets:

Inventories 5 684 5 109

Trade receivables 32 621 23 809

Contracts in progress 75 064 52 195

Other Receivables 4 170 5 035

Cash and cash equivalents 3 821 1 177

Total current assets 121 360 87 325

Total assets 143 176 101 401

Unaudited Audited

(NOK 1 000) 31.12.2014 31.12.2013

EQUITY AND LIABILITIES

Total equity 45 185 -21 360

Total non-current liabilities 1 667 26 783

Current liabilities:

Current borrowings - 10 000

Trade creditors 16 669 30 931

Contract accruals 35 379 22 058

Financial instruments 10 536 7 114

Income tax payable -112 823

Bank overdraft 27 674 14 290

Other Current liabilities 6 179 10 762

Total Current Liabilities 96 325 95 978

Total liabilities 97 991 122 761

Total equity and liabilities 143 176 101 401

• Non-current bank loan of NOK 20m

converted in 4Q14 to Bank overdraft

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Scanship Holding ASA

Lysaker Torg 12

P.O. Box 465

1327 Lysaker

Norway

Phone: +47 67 200 300

E-mail: mail@scanship.no

www.scanship.no