Q2 presentation

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10.8.2012

Second quarter results 2012

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Highlights

2

New predictable dividend policy

Proposed dividend of

NOK 0.53 per share

New employee share purchase

programmes reinforcing the

performance culture

Sakhalin-1 GBS installed at the field

Strong order intake of

NOK 15.2 billion

EPC Center Houston divested in July

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New dividend policy

3

“Kværner ASA's dividend policy is

based on visibility and predictability.

The ambition is to pay semi-annual

dividends with increases, in order to

give a stable and predictable dividend

growth, balancing out the underlying

volatility of earnings.”

The Board of Directors proposes

dividend of NOK 0.53 per share Ambition to increase by 10 percent

annually

Extraordinary General Meeting

(EGM) scheduled for 9 October 2012

Subject to EGM approval, dividend

payment expected 24 October 2012

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Employee share purchase programme

4

Ensuring alignment of employees

interests’ with those of the

shareholders: Long term active ownership

Satisfactory participation Total 449 participants

All members of Executive Management

Increased employee commitment

and identification with the company

Reinforcement of performance culture

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Key financials

5

19

2

16

9

24

9

15

9

85

0

50

100

150

200

250

Q2

'11

Q3

'11

Q4

'11

Q1

'12

Q2

'12

Revenues

NOK Million

-1 2

64

-1 0

28

-1 2

35

-71

7

-43

2

-1 400

-1 200

-1 000

-800

-600

-400

-200

Q2

'11

Q3

'11

Q4

'11

Q1

'12

Q2

'12

EBITDA

NOK Million

Net current operating assets

NOK Million

3 9

47

2 6

23

3 0

04

2 3

88

3 0

00

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

Q2

'11

Q3

'11

Q4'1

1

Q1

'12

Q2

'12

4.9% 6.4% 8.3% 6.7% 2.8% EBITDA margin

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Solid order backlog

6

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

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

Order intake

NOK million

0

5 000

10 000

15 000

20 000

25 000

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

Order backlog

NOK million

For execution in 2012



Upstream

Downstream & Industrials

For execution in 2015 and later

23 018 15 190

~20%

~35%

~25%

~20%

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Second quarter operations

7

Last inspection on the Sakhalin-1 GBS before sail-away in June 2012.

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Health, safety and environment

8

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

Per million work hours and 12 months rolling averages

Crane accident at Verdal: Actions implemented*

HSE summit with key contractors Awarded two safety awards by United States Steel Corporation

* The Norwegian Labour Inspection Authorities concluded that all their orders have been met.

Highlights

Two lost time injuries and eight other injuries resulting in 10 recordable injuries in the quarter

Five of the 10 injuries are considered serious during the second quarter

0,0

1,0

2,0

3,0

4,0

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

LTIF TRIF

3.0

0.5

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Divestment of EPC Center Houston

9

EPC Center Houston sold to IHI

E&C International Corporation (IHI)

in July

IHI has been a joint venture project

partner since 2004

Jim Miller, EVP E&C Americas, Kvaerner and Mikio Mochizuki, President & CEO, IHI Inc.

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Operations and market

10

NORTH SEA INTERNATIONAL JACKETS E&C AMERICAS CONCRETE

UPSTREAM DOWNSTREAM &

INDUSTRIALS

Eldfisk multi-

discipline

fabrication

Edvard Grieg

topside start-up

activities

Kashagan

Hook-up close out

continuing

Browse tender

submitted

Nordsee Ost: 19

jackets completed

First roll up of

Clair Ridge

V&M MEP project

nearing

completion

EPC Centre

divested

Successful

tow-out and

installation of

Sakhalin-1

Dry-dock ready at

Hebron site

Second quarter financials Eiliv Gjesdal, Chief Financial Officer

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Income statement

12

Amounts in NOK million Q2 2012 Q2 2011 YTD 2012 YTD 2011

Full year

2011

Operating revenue 3 000 3 947 5 388 7 669 13 295

EBITDA 85 192 244 656 1 073

Depreciation and amortisation (15) (12) (31) (24) (54)

EBIT 70 180 214 632 1 019

Net financial items, including result

from associated companies and JVs (2) (3) (4) (4) (116)

Profit before tax 68 177 210 628 903

Income tax expense (26) (155) (76) (285) (344)

Net profit 42 22 134 343 559

EBITDA margin 2.8 % 4.9 % 4.5 % 8.6 % 8.1 %

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Revenue distribution

13

Share of revenues 2010

Percent

Share of revenues 2011

Percent

Share of revenues last 12 months

Percent

NOK

13.2 billion

NOK

13.3 billion

NOK

11.0 billion

International EC Americas Concrete Jackets North Sea

Significant changes in distribution of revenues between business areas

2012 activity level expectations unchanged

Increased revenues expected in 2013 compared to previous years

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Q2 2012: Downstream & Industrials review

14

Order backlog and order intake

NOK million

Revenues, EBITDA and EBITDA margin

NOK million

Revenues EBITDA

Financials

Limited results expected until Longview

arbitration is concluded

EPC Center divested in July resulting in a Q3

accounting gain. Immaterial impact on results

and balance sheet.

Orders

Growth in existing contracts

345

549

850

496

689

-300

-39 -15

3 6

-500

0

500

1000

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

1 558

1 376 1 287

1 130

702

537 298

716

381 234

0

500

1 000

1 500

2 000

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

EBITDA-% (87.1)% (7.1)% (1.8)% 0.5% 0.9%

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

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Q2 2012: Upstream review

3 600

2 052 2 176 1 891

2 317

554 253 287 196 119

0

1 000

2 000

3 000

4 000

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

15

11 738 10 482

8 758 9 683

22 318

1 068 789 446

2 817

14 959

0

5 000

10 000

15 000

20 000

25 000

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

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

Activity level increased

EBITDA reflects project portfolio with

relatively wide margin range

Commercial challenges on Nordsee Ost

project

Orders

Edvard Grieg topside of NOK 8 billion

Nyhamna onshore contract of NOK 6 billion

EBITDA-% 15.4% 12.3% 13.2% 10.4% 5.1%

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-2 000

-1 500

-1 000

-500

0

500

1 000

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

Cash flow and working capital development

16

Net current operating assets (NCOA)

NOK million

The EPC business is

cash positive through

negative working capital:

Customer pre-

payments¹ of

NOK 354 million

Downstream &

Industrials: Capital tied

up in the Longview

project

Downstream

& Industrials

Upstream

Group

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

Amounts in NOK million Q2 2012 Q2 2011 YTD 2012 YTD 2011

Full year

2011

Cash flow from operating activities (387) (35) (772) 796 1 069

Cash flow from investing activities (19) (64) (58) (106) (231)

Cash flow from financing activities (294) (1 533) (294) (1 529) (1 105)

Translation adjustments 2 (119) 49 (62) 8

Net increase/(decrease) in cash and

bank deposits (699) (1 751) (1 075) (901) (259)

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Balance sheet

17

YTD 2012 YTD 2011

Full year

2011

Assets

Total non-current assets 2 011 1 775 1 954

Prepaid company tax 189 118 169

Current operating assets 2 737 3 841 2 256

Other current assets 20 - 25

Total cash and bank 1 344 1 776 2 418

Total assets 6 300 7 510 6 823

Total equity 2 306 2 120 2 445

Non-current interest bearing liabilities 464 8 460

Other non-current liabilities 181 251 161

Current operating liabilities 3 168 5 106 3 491

Current tax liabilities 180 (0) 257

Other current liabilities 0 26 8

Total liabilities 3 994 5 391 4 378

Total equity and liabilities 6 300 7 510 6 823

Equtiy ratio 37 % 28 % 36 %

Net cash 942 1 773 2 012

Amounts in NOK million

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Strong market in all business areas

19

North Sea

• High number of

prospects

• New contracts

expected next 6-12

months

Arctic Russia

• Strong future market in

Kara Sea and Sakhalin

• Kara Sea exploration

drilling expected from

2014

Caspian

• Strong future market,

uncertain timing

• Development of

delivery model

Asia Pacific

• Browse FID expected

1H 2013

• Multiple opportunities

within next 24 months

• Robust delivery model

established

North America

• Gas fired power plant

market

• Healthy US steel

market

• Contract awards

somewhat delayed

Atlantic Canada

• Operators increasing

Arctic activities

• Long term

opportunities

STRATEGIC AND SELECTIVE APPROACH REQUIRED

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Market positioning

Investing in own yards

Project management

Engineering capacity

Global procurement

20

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Summary and closing remarks

21

New predictable dividend policy

Strong order backlog

Exceptional market

HSE – core value and licence

to operate

Maintain and develop home

markets

International expansion

Hands-on management

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The current EPC project portfolio

24

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

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EPC prospects

25

Martin Linge

Mariner

Bressay

Aasta Hansteen

Dagny

Draupne

Victoria

Tommeliten

Snorre

Skrugard

Johan Sverdrup

Havis

Ormen Lange

compression platform

Snøhvit Phase II

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 plant

environmental compliance

projects

White Rose EPC

Piltun South

Pechora LNG

Kammennomyskoye

Dolginskoe

Amuligak

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

Montrose/Arbroath

Dagny

Draupne

Mariner

Bressay

Peregrino

Jackdaw

Nordsee Ost

extension

Hod

Auk

Tor

Utsira high

Greater Clair

Development

Snorre

Johan Sverdrup

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Continued operations in North America

26

Kvaerner will keep and further

develop its other businesses in

North America

Pursuing growth opportunities for

offshore and onshore operations

Upstream

Downstream & Industrials

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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.

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Q2 presentation

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