Third quarter 2010 presentation

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1 Third quarter 2010 presentation Ole-Peter Ole Peter Brandal CEO Sølvtrans Holding ASA Oslo, 10 November 2010 Jon Kvalø CFO Sølvtrans Holding ASA

Sølvtrans Holding ASA in n brief The world s largest wellboat company with 13

secure efficient ffi i t and environmental safe logistics for a growing fish

2005 2009 Growing importance of wellboats in the fish farming value chain, as

2 Sølvtrans Holding ASA in n brief The world s largest wellboat company with 13 vessels operating in the North Sea & Canada Søl t Sølvtrans wellboats llb t secure efficient ffi i t and environmental safe logistics for a growing fish farming industry Has delivered highly profitable growth recent years 63% CAGR Growing importance of wellboats in the fish farming value chain, as focus on biological risk increases Sølvtrans was the first wellboat company in the world to be listed

3 1 Highlights in the third quarteer 2 Financial review 3 Operational review 4 Market trends and Sølvtrans position 5 Summary and outlook

4 Highlights in the third qu uarter Operating income of NOK 58.2 million increase of 4% vs Q Reported EBITDA of NOK 20.5 million underlying u EBITDA of > NOK 30 million NOK 9.9 million negative g EBITDA effect from non recurringg items Solid balance sheet Equity ratio of 30.1% Significant improvement in cash flow Positive cash flow from operations Investment level significantly below H1 2010, 2 as forecasted in Q2 presentation Strong contract coverage currently 84% % coverage for 2011 Measures initiated to improve the liquid dity in the Sølvtrans share Market making agreement with DnB NOR Markets entered into in September

5 1 Highlights in the third quarrter 2 Financial review 3 Operational review 4 Market trends and Sølvtrans position 5 Summary and outlook

6 Operating income and EBITDA Figures in NOK mill. Q Q YTD 2010 YTD Operating income EBITDA % 47% 37% 47% 3 39% 11.4 (10.0) (26.5) EBITDA margin EBIT Net financial items Pretax profit NOK mill. Non recurring items minus NOK 4.9 mill in Q3 60 0% % % 10 0% 0 0% % Operating income Q3 09 Q3 10 YTD 09 YTD 10 EBITDA margin YTD includes NOK 9.5 mill in profit on Ronja EBITDA Reported EBITDA of NOK 20.5 mill NOK 5.7 mill below Q Includes NOK 5.0 mill in non recurring op costs Underlying EBITDA of NOK 30,4 mill in Q Total negative EBITDA impact due to non recurring items of NOK 9.9 mill. in Q % 30 0% 61 O Operating i income i Pretax profit 1H 2010 influenced positively by agio gains, whilst Q is negatively affected by disagio Pretax profit 2009 influenced by large agio gains

7 EBITDA ex non recurringg effects Q Accrual errors EBITDA Q3 2010, normalised Items booked in Q3, but related to previous reporting periods Credit notes issued related to offhire in previous periods Own risk; insurance case from Q1 Additional listing costs ( related) (Q1 l d) 35 NOK mill mill Other non recurring items Credit notes issued to customers related EBITDA Q3 '10 (reported) Non recurring items booked in Q3: "Accrual Errors" "Other non recurring items" "Normalised d" EBITDA Q3 '1 10 to events in 2008/2009 Further costs related to Canada establishment Provisions for loss on bad debt related to sales recorded 2009 and Q1 2010

8 Balance sheet as at Cash position: NOK 88 mill increased with w 11 mill since Ronja classified as a current receivable Payment expected medio Q Refinancing of NOK 140 mill Bond completed end June 2010 Net interest bearing debt: NOK 637 mill. Equity ratio: 30.1 % Book value: NOK 351 mill mill. Net asset value: NOK mill. (third party assessment February 2010) Assets NOK mill Cash & cash equiv. 800 Other current assets Fixed assets Intangible assets Equity and liabilities mill. NOKNOK mill mill.mill Current liabilities 826 Equity Non current liabilities

9 Cash flow YTD 2010 CASHFLOW ((NOK mill)) CF from operations CF from investments CF from fin. activities NOK mill NET CASH FLOW Cash as at C 2010 Changee WC Investm ments Net loan paym ment Proceeds from m IPO Net finance outflow EBITDA 24.9 Cash h at hand Q3 10 YTD 10 22,4 18,1 1,9 33,5 9,2 78,6 11,3 63,2 Cash flow Q3 affected by Low investment level Payment from share in own bond loan Positive effect from changes in other short term items Cash flow YTD 2010 affected by IPO in Q1 net proceeds NOK 143 mill Large investment programme in H1 Down payment of bond loan in June

10 1 Highlights in the third quarrter 2 Financial review 3 Operational review 4 Market trends and Sølvtrans position 5 Summary and outlook

Market position in Canad da further strengthened Charter agreement concerning Frøyfisk entered into with Northern Harvest Sea Farms,, Canada,, in September p 2010 Main terms: 6 month time charter

11 Market position in Canad da further strengthened Charter agreement concerning Frøyfisk entered into with Northern Harvest Sea Farms,, Canada,, in September p 2010 Main terms: 6 month time charter Charter period May 2011 to end Nov This was Sølvtrans third charter agreem ment in Canada since April 2010 Frøyfisk will operate in the North Sea sp pot market before commencing on the chartter in Canada The vessel will be equipped for sea lice treatment prior to leaving for Canada

12 Modern fleet provides co ompetitive edge Vessel Ronja Atlantic Ronja Harvester Ronja Nordic Ronja Pioneer Ronja Viking Ronja Superior Ronja Commander j Carrier Ronja Frøyhav Roy Kristian Frøyfisk Ronja Skye Ronja Settler Sum 3 Stake Cap. (m ) 100% 1, % 1, % 1, % 1, % 1, % 1, % % % % % % % ,820 Built year Type * Closed system Closed system Closed system Closed system Closed system Closed system Closed system Sea lice treatment X X X Large capacity: Total transportation capacity of 12,820 m3 M d fl t Modern fleet: The fleet is young with an avg. age of 6 yrs X X Technology leader: Operating 9 of 12 closed system vessels Closed system Closed system * "Closed system" means a closed and controlled system without spills and with controlled temperature and oxygen to secure animal welfare and best possible quality on slaughter fish. 5 globally, hereunder 5 vessels with sea lice treatment equipment. The Th mostt modern d vessels l are equipped i d with ith both skimmers and sea lice treatment equipment One vessel already installed with automatic well cleaning system. Will be installed on five more vessels during 1H 2011.

13 Contract coverage % 84% Strong contractual status Vessel Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Q2 Q3 Q4 60% Q Land Ronja Atlantic Norway Ronja Harvester Norway Ronja Nordic Norway Ronja Pioneer Scotland Ronja Viking Scotland Ronja Superior Ronja Commander Norway Scotland Ronja Carrier Canada Frøyhav Norway Roy Kristian Frøyfisk Scotland Norway/Canada Ronja Skye Scotland Ronja Settler Scotland out of 13 vessels on longg term contracts with solid counterparts Average remaining lifetime on currentt contracts t t is i two t years Traditional spot market moving towards awarding more long term contracts Some contract include offhire periods, which give potential for increased revenue through utilisation tili ti in i the th spott market k t

14 1 Highlights in the third quarrter 2 Financial review 3 Operational review 4 Market trends and Sølvtrans position 5 Summary and outlook

15 Sølvtrans market overvview and status Scotland: m Six vessels. All contracts renewed last 6 8 months Solid position % market share Canada: Two vessels on charter A third vessel commences on charter in May 2011 Growing demand for Canada modern wellboats with West closed valve technology Norway: Growing wellboat demand increased focus on long term charters. 6 vessels currently operating 15% market share strong market opportunity Ongoing market consolidation Norway Scotlan nd Canada East Chile: Market down, but showing promising development Re-entry when market is ready again Chile

16 North Sea market a fraagmented picture North Sea wellboat capacity (share of m3) Outdated within 5yrs 14 % Sølvtrans 27 % Sølvtrans is market leader in a fragmented industry with close to 30 players operating in the North Sea market (Faroe Islands, Iceland, UK and Norway) Most companies are small with only 1 2 wellboats each The two largest industry players Sølvtrans and Rostein control 49 per cent of the North Sea fleet measured in capacity (m3) Others 23 % Rostein 22 % Bømlo BBS 7% Seivåg 7% estimates Fraktefartøyenes Rederiforening) (Source: Company estimates, The top five wellboat companies control The more than 67 per cent of the North Sea wellboat capacity and about 50 per cent of the number of vessels Increasing i industry i d consolidation lid i iis expected d

17 Increased d demand d d ffor mod dern closed l d valve l vessels l with high capacity Strong growth in salmon production d ti Larger salmon farms Farm locations further offshore F Fewer harvest/processing h / i plants l Increased biosecurity measures Sea lice and disease treatment Continued solid growth in Norwegian salmon market 1000 Norwayy harvest volumes (ktons WFE) E 11E 12E Key drivers of wellboat demand (Sourcce: Kontali, Sølvtrans, Nordea Estimates)

18 Chile market en route to t recovery Harvesting volume Atlantic salmon Chile 1,000 gwt Chile s production of Atlantic salmon is expected to be approx tonnes in 2010, down from approximately tonnes in A considerable production increase is expected from 2012 Sølvtrans aim to re enter the Chilean market with vessels with closed technology within one to two years E 2011E 2012E S Source: K t li Analyse, Kontali A l D B NOR M DnB Markets k t A small work force has been maintained in the country in order to resume operations when the market situation allows. allows

19 Contracting orderbook wellboats Wellboat fleet growth W llb t fleet Wellboat fl t Fleet capacity (m ) Scheduled delivery new builds Conversions Scrapping Available fleet % year on year Source: Company estimates ,800 2,400 1,500 52, % 55, % 56, % ,000 50,000 56, % 10 % 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Only one new wellboat ordered in Q Bøm mlo Brønnbåtservice; 1,500 t; delivery in 2012 Four wellboats currently under construction These will only marginally add to the wellboat fleett. Approx 14% of North Sea fleet capacity is due for re eplacement within 5 years Yard capacity rapidly increasing; possibilities for attractive a building prices and delivery times Sølvtrans is continuously evaluating contracting of o new vessels and / or acquiring newer vessels with modern technology

Competitive edge The closed c valve technology History Developed in

industry was susp pected to be one of the reasons for the outbreak, and

industry developed a new n type of wellboat The first one, Ronja Skye,

and less stresssed fish, and consequently a higher slaughter quality

20 Competitive edge The closed c valve technology History Developed in Scotland as a con nsequence of the ILA outbreak in 1998 The wellboat industry was susp pected to be one of the reasons for the outbreak, and Sølvtrans togeth her with Scottish authorities and the fish farming industry developed a new n type of wellboat The first one, Ronja Skye, was delivered in 2001 How it works Positive results A less responsive and less stresssed fish, and consequently a higher slaughter quality Reduced infection risk Better results in sea lice treatm ment compared to conventional vessels

21 Steady increase in Time Charter rates TC rate development (Nominal annual averagge) Increased demand for Long Term TC s Price per m3 Increased demand for advanced wellboats Operational performance Steady increase in rates rates. Due to new capacity drivers as parasite treatment, new markets and the focus on biosecurity; => The historic rate increase is expected to continue Source: Company estimates

22 Sølvtrans strategy goingg forward Remain a market and technology leader utilise u the competitive edge: Maintain a modern fleet Technology leadership High capacity vessels Well positioned for further market expansion n Footprint established in Canada significcant market potential for Sølvtrans going forward Will return to Chile when the market is ready r The Norwegian market represent furtherr growth opportunities for closed system vessels l The company targets expansion of the share eholder base, in order to meet application requirements for listing on Oslo Børs

23 1 Highlights in the third quarrter 2 Financial review 3 Operational review 4 Market trends and Sølvtrans position 5 Summary and outlook

24 Summary of the third quartter 2010 Reported EBITDA in Q lower than Q due to non recurring items. Solid underlying EBITDA for the quarter Comfortable balance sheet equity ratio of 30.1 % Net asset values of NOK mill. Good cash position Improved cash flow from operations and investments in Q Solid contract coverage for the remaining part of , 2011 and 2012

25 Outlook Short to medium term Growing global salmon production drives demand d for further transport capacity Expects higher operating income less off hire and agreed rate increases from January 2011 Agreed rate increases implies an increase in operatin ng income of approx. NOK 20 mill. for the full year 2011 Expects lower op costs going forward as Vessel maintenance beyond quarter normal was carried c out in Q1 Q Non recurring costs in Q1 Q Q4 will be negatively impacted by incident with Ro onja Viking Gear breakdown in early October 2010 will impact EBITDA E negatively in Q4 with approximately NOK 3.5 mill. Long term Strong outlook in the market for transportation off salmon and trout: Growing global salmon production Orderbook for closed valve vessels not large enough to prevent rate increases going forward Competitive advantage for players with modern fle eet and high capacity vessels: Larger salmon farms located further offshore / Fewer harvest/processing plants Increased biosecurity measures, and stronger focus on sea lice and disease treatment Increased consolidation on the customer side Charter rates expected to continue showing solid increase i year on year

26 Disclaimer This quarter Presentation includes and is based, inter alia, on forw ward looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward looking fo information and statements are based on current expectations, estimates and projections about global economic con nditions, the economic conditions of the regions and industries that are major markets for Sølvtrans Holding ASA and its subsidiaries. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "beelieves", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectatio ons include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets fo or Sølvtrans Holding s businesses, salmon prices, oil prices, market acceptance of new products and services, changes in governmentall regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time. Alth hough Sølvtrans Holding ASA believes that its expectations and the information in this Presentation were based upon reasonable assum mptions at the time when they were made, it can give no assurance th t those that th expectations t ti will ill be b achieved hi d or that th t the th actual t l results lt will ill be b as sett outt in i this thi Presentation. P t ti Søl t Sølvtrans H ldi ASA nor Holding any other company within the Sølvtrans Holding Group is makin ng any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the Pressentation, and neither Sølvtrans Holding ASA, any other company within the Sølvtrans Holding Group nor any of their directors, officcers or employees will have any liability to you or any other persons resulting from your use of the information in the Presentation. Sølvvtrans Holding ASA undertakes no obligation to publicly update or revise any forward forward looking looking information or statements in the Presen ntation.

Sølvtrans Holding ASA Q Oslo, 7 November Roger Halsebakk, CEO Jon Kvalø, CFO

Sølvtrans Holding ASA Q Oslo, 7 November Roger Halsebakk, CEO Jon Kvalø, CFO Sølvtrans Holding ASA Q3 2012 Oslo, 7 November 2012 Roger Halsebakk, CEO Jon Kvalø, CFO 1 Highlights in the quarter 2 Financial review 3 Operational and market review 4 Summary and outlook 5 Appendix Highlights