Capital Market Day20 November 2012

Oslo Konserthus

Welcome

Oslo 20 November 2012

Johannes D. NetelandCEO

Capital Market Day 2012

TTS Group ASA

Capital Market Day 2012

• Recent News

• The sale of the Drilling Equipment unit

• Value Creation

• Strategy 2016

• The Organization

• The Development in China

• Summary

Agenda

Recent News

The TTS Drillship Crane Package Crane Supply for STX Sigma Drillship

Typical Order Value: 120-140 MNOK

Breakthrough Deal for TTS Offshore Crane

• TTS Offshore Handling Equipment to supply the total crane package for the Sigma Drillship-vessel

• State of the art subsea crane with active heave compensation (GPOKac 5000-165-51,5)

• Pipehandling crane with gripper (1250 TM) handling all drilltubes from vessel

• Vessel to be built by South Korean STX Offshore & Shipbuilding, world’s fourth largest shipbuilder

• The Sigma drillship is designed for efficient drilling operations in Gulf of Mexico, offshore Brazil, offshore west Africa and South East Asia

• Drilling depths of 12,190 meters• Water depths up to 3,660 meters

• Cranes ordered by STX:• 1 x GPOKac 5000-165-51,5• 3 x GPOKc 5000-100-45• 1 x Pipehandling crane 1250 TM• 1 x Riser yoke swl 35 ton

Entering a new growth-segment

TTS Investment in Sigma DrillingEntering a new crane segment and increasing earn-out potential

• 5 MUSD investment (approx. 28 MNOK) in Sigma Drilling AS in connection with entity partly owned by Sigma

• TTS to deliver the offshore cranes to the vessel and Cameron International Corp. delivers the drilling equipment

• With the sale of its drilling equipment unit earlier this year, TTS established an earn-out agreement with Cameron based on revenue of drilling equipment to early June 2015

• Investment brings TTS into a new growing market segment

• Increased earn-out potential of the sale of the drilling equipment unit

Sigma Drilling AS

The Sale ofthe DrillingEquipment Unit

TTS Group ASATTS after the sale of Drilling Equipment

0

500

1 000

1 500

2 000

2 500

3 000

3 500

00 01 02 03 04 05 06 07 08 09 10 11

Offshore HandlingEquipment

Marine

Port & Logistics

MNOK

Sale of the Drilling Equipment Unit

• April 2012: - TTS Group ASA signed the agreement to sell the drilling equipment business to

Cameron for USD 270 million on a cash free/debt free basis- USD 15 million deferred payment over 2 years- Turnover based earn-out model for a three-year period

• June 2012:- Closing of transaction. Total gain from the sale was MNOK 420

• Q3 2012:- Paid MNOK 500 to the shareholders in form of extraordinary dividends and

payback of share capital

• 2013 – 2015: - Additional dividend capacity in 2013- All paid earn-out and deferred payment will be allotted to the shareholders

Value Creation ofTTS Group

TTS in Brief

• Global ship equipment company with more than 40 years experience

• 25 units in 13 countries and a workforce of around 1,100

• Is one of the top three suppliers in our specialized market segments

• Headquarter in Bergen , Norway, listed on Oslo Stock Exchange

• Long history of organic growth and acquisition

• 30 acquisitions and establishments since 1996

Long history of growth

TTS in 2000

TTS in 2010

Strong Financial PerformanceHistorical key figures 2000-2012 in MNOK for TTS Group

* NGAAP, from 2004- IFRS**Without Drilling equipment

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

A Story of Acquisition-Driven GrowthTTS Group turnover (NOKM)

Acquisitions

Mongstad Engineering

Listed on the OSE in 1995

Norlift

Aktro

Hamworthy KSEHydralift Marine

100% of JV in Shanghai

LMG Cranes

Liftec Oy

NavCiv Engineering

Kocks GmbH

ICD Project

Sense EDM

Sense MUD

Sense DrillFab

Sense EDM, Singapore

Wellquip Holdings

TTS Brazil

NMF GmbH

Keyon

Marine Engineering

100% of JV in Korea

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

DivestmentsTTS Group turnover (NOKM)

Divestments

TTS Construction

Listed on the OSE in 1995

Aktro

Sense MUDSense EDM

Sense DrillFabSense Singapore

TTS Brazil

Intercontrol AS

Controlteam AS

TTS Keyon

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

New CompaniesTTS Group turnover (NOKM)

New companies

JV in Shanghai

Listed on the OSE in 1995

Office in Pusan, Korea

TTS BoHai Machinery

TTS Inc., Miami

TTS Marine, Italy

TTS Vietnam

TTS Keyon Marine, China

Jiangnan TTS, China

TTS Marine Equipment, China

TTS Singapore

TTS Greece

TTS Mexico

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Marine Engineering

100% of JV in Korea

TTS Keyon

TTS Automation AS

Combined Growth TTS GroupTTS Group turnover (NOKM)

Acquisition Divestment New company

Mongstad Engineering

JV in Shanghai

TTS Construction

Listed on the OSE in 1995

Norlift

Aktro

Hamworthy KSEHydralift Marine

Aktro

Office in Pusan, Korea

100% of JV in Shanghai

LMG Cranes

Liftec OyTTS BoHai Machinery

TTS Inc., Miami

NavCiv Engineering

Kocks GmbH

TTS Marine, Italy

TTS Vietnam

ICD Project

Sense EDM

Sense MUD

Sense DrillFab

Sense EDM, Singapore

TTS Keyon Marine, China

Wellquip Holdings

Jiangnan TTS, China

TTS Marine Equipment, China

TTS Singapore

TTS Greece

TTS Mexico

TTS Brazil

NMF GmbH

Sense MUDSense EDM

Sense DrillFabSense Singapore

TTS Brazil

Intercontrol AS

Controlteam AS

Closed company

Keyon

Acquisition of NMF

• The acquisition of NMF was completed on August 20th

• The integration of NMF started immediately thereafter and will be finalized by 4th quarter 2012

• Expected turnover in 2012 is approximately MEUR 90. EV/Sales 0,20

• The product range of NMF is complementary to TTS’ existing product range

• Market access to China, with potential on aftermarket, and lower production costs

• Significant synergies: sales and marketing, service and manufacturing. Expect to increase EBITDA margin 2-4%

Promising synergies for fast-growing Chinese market

Neuenfelder Maschinenfabrik Gmbh (NMF)NMF is the world leader in the segment of heavy lift cranes.

Crane segment Size Cranes

delivered

Cranes in

operation

Market

shareBoat and supply cranes 1.0t - 7.2t 1,200 cranes 743 cranes

< 5%

Bulker cranes 30t - 35t 184 cranes 141 cranes < 5%

Container cranes 20t - 60t 1,260 cranes 928 cranes~ 25%

Multipurpose cranes 20t - 120t 616 cranes 462 cranes< 10%

Heavy lift cranes 150t - 400t 455 cranes 326 cranes> 60%

Super heavy lift cranes* 700t - 1,000t 28 cranes 23 cranes> 90%

Total 3,743 cranes 2,623 cranes

* Will be offered as offshore oil and gas cranes, or for the installation of wind turbine

foundations with dynamic positioning system and deep sea capacities in the future.

Strategy 2016

ExecutionThe key to success

The 5 – 15 – 80 Rule:

•5% strategy•15% position•80% execution

Strategy

Position

Execution

Strategy 2016:Building a global € 1 Billion shipping and offshore equipment/ service company

€ 1 Billion Company in 2016Leading shipping and offshore equipment/ service company with economies of scale

Strategy

� Leading position in China provides market access (NMF)

� Focus on attractive specialized ships segments

� Grow offshore handling in expanding Far-East markets

Leverage strong position in China and Far-East

1

� Financial flexibility

� M&A track record

� Opportunities in distressed markets

M&A2

� COO

� Centralized standardization, product development and procurement

� Decentralized organization and decision making

Synergies and operational excellence

5

� Marine (volume and high end)

� Offshore handling

� P&L

Focus on profitability in

challenging segments3

� End user focus

� Mission critical products

� 4 hubs for global reach (80%)

Global service offering4

The Organization

Corporate ManagementFlat organization

CEOJohannes D. Neteland

FinanceArild Apelthun

OperationsIvar K. Hanson

Human ResourcesNina Aadland

CommunicationsMiao Reinlund

DeckEquipment

Port &Logistics

OffshoreHandling

CargoAccess

Service

Business units

TTS NMFTTS JV

New Management Position

Ivar K. Hanson appointed COO:

• Joined TTS in 1994

• Former Executive Vice President for Marine

Division

• Solid trac- record with TTS Group

Chief Operating Officer (COO)

The DevelopmentIn China

TTS Group China Venture

• Long history of successful business in China - Early mover, valuable experiences and strong position

• Unique relations with state owned companies- Long term commitment, new high-level meetings in Q3-Q4

• Joint Ventures with two leading Chinese state owned corporations :1. China State Shipbuilding Corporation (CSSC in 1998)

- China’s largest shipbuilding company- TTS HuaHai in Shanghai (1998)- Jiangnan TTS Marine Equipment Co. in Nantong (2007)- Hatch Covers and Winches (introduced in 2011)

2. Dalian Shipbuilding Industry Corporation (DSIC in 2005)- TTS Bohai in Dalian- Cargo Cranes, Offshore Cranes (and previously drilling equipment)

• World’s biggest market for Marine equipment

• All marine equipment products for the Chinese market are included in the two joint ventures

• Through the JVs TTS has gained a significant market share within its important and fast-growing niches in China

• TTS is building a strong service-presence in the Chinese market in close cooperation with its JV-partners

Strong Development for TTS in China

TTS Group Locations in China

TTS Bohai Machinery

TTS Marine Equipment

JiangNan TTS Marine Equipment

TTS Hua Hai

TTS Marine Shanghai

Hainan

Heilongjiang

Jinlin

Liaoning

Hebei

Shandong

Jiangxi

AnhuiHubei

Hunan

GuangdongGuangxi

Shanghai

Henan

Shanxi

Inner Mongolia

Shanxi

Ningxia

Gansu

Qinghai

Sichuan

Guizhou

Yunnan

Tibet

Xinjiang

Jiangsu

Zhejiang

Beijing

Tianjin

Fujian

Locations of Shipyards in China

Solid Structure for Growth

• Three solid revenue streams from TTS Group’s JVs in China:1. Royalty2. 50/50 profit split3. 100% after market outside China

• Expected turnover of close to NOK 1,5 billion in 2012

• Market share of 40-60% in Hatch Covers and Cranes

• The most important and focused market for the company- In 10 years, China is expected to be the largest market for offshore

equipment in the world

Uniquely positioned to serve the fast-growing Chine se offshore market where TTS’ unique relations is a key success f actor. (i.e. NMF)

• Joint Ventures are recognized in the financial statements according to the equity method. TTS Group includes only its share (50%) of profit after tax in financial reports

• Turnover in Joint Ventures in 2011 exceeded NOK 1 billion

• Increased turnover also in Q3 2012

• A weak market for bulkers lead to lower order intake and some cancellations in the quarter

• Still solid order backlog

TTS Joint Venture Operations in China

Numbers are on a 100% basis and in MNOK.

China Offshore GrowthChina, inclusive drilling equipment

MNOK

TTS Group ASAProduction of rig equipment in China

TTS Group ASAProduction of rig equipment in China

TTS Group ASAProduction of rig equipment in China

TTS Bohai’s deliveries:

•BOP handling crane•BOP skids•Pipe handling crane•Derrick

Total order value of around 2,5 MUSD

Significant potential for expanding the deliveries:

- Rig Cranes- NMF cranes- Winches- Doors- and more

TTS Group ASARig market in China with great potential

Prospector’s jack-up rig in Dalian

Focusing on the Far-East

• China is the gateway• Establishment of TTS Far-East Cooperation• Increasing demand from South Korea,

Singapore and China

• Growth Strategy for Far-East Market:1. Expanding the product portfolio

- Drillship Cranes, Offshore Rig, Offshore vessels

2. Expanding other offshore products

Capitalize on existing infrastructure to develop products and capture market opportunites in the Far-East markets

Summary

Summary

• Sale of Energy completed. The sale strengthened TTS financial position significantly

• Acquisition of NMF improved TTS position in the marine crane market and complements TTS product offering. Significant synergy potential is expected to lift margins

• Dividends and repayment of MNOK 500 declared in 2012, additional capacity for 2013

• Short term - market uncertainties

• TTS has reiterated it long term growth strategy through generic growth and acquisitions. Capacity for growth after dividend payments

www.ttsgroup.com

Capital Market Day20 November 2012

Oslo Konserthus

Ivar K. HansonCOO

Capital Market Day2012

TTS Group ASA

Market Outlook

Capital Market Day 2012

• Market Segmentation

• Marine Market

• Offshore Market

• Port & Logistics Market

• TTS Markets (Geo)

• Summary

The Promising Market

Segmentations

Market Segmentation

Offshore Handling Port & LogisticsMarine

Marine MarketRoRo equipmentHatch CoversSide DoorsCruise and Mega YachtsWinchesDeck EquipmentCranesDavits

• Generally good operation is resulting in high margins, 10-11% EBITDA

• Activity and earnings in Joint Ventures in China remain high and looks promising for 2012

• Lower activity relating to standard products due to several postponed projects

• Low activity and difficult market for Services

• Low order intake in the quarter, but increasing trend of enquiries

• Acquisition of NMF expands TTS product offering and position in the Marine crane market

Marine – Status of OperationsRoRo equipment, Hatch Covers, Side Doors, Cruise and Mega Yachts.Winches and Deck Equipment, Cranes and Davits for ships

Marine Market NewbuildingMarket Development – contracting forecast - Trends

Marine Market NewbuildingOverall contracting still on historical levels

Deliveries to the World FleetForecast looks promising – China on the move

Positive Trend World FleetContracting set to grow

Marine Focus: PCTC,Yacht, Eco Friendly VesselsMarine Market Development by Main Segments vs. Competitive power

Market growth 2012-2015 HighLow

TT

S M

arin

e c

ompe

titiv

e po

wer

Weak

StrongMarket size equipment 2012

(annual new sales)

TTS Market Attractiveness Matrix

Marine: MTO• Bulk• Tank• Container

Offshore •Subsea constr.•Drillships & Rigs•OSV, PSV•FPSO

500’’- 1000’’

1.000’’- 2.000’’

2.000’’- 4.000’’

ETO: Engineer to Order

MTO: Make to Order

Marine: ETO•Car carriers•Heavy Load•LNG•Yacht•Cruise•Multi P

World Fleet Outlook

• Container Decreasing market in all segments• LNG Tankers Positive development in South Korea and Japan• Tanker Market on low level, but slightly positive outlook• Bulk Carrier In general low level, acceptable Chinese market, only few projects in

South Korea• Car Carrier Currently high activity in market due to low shipbu ilding prices,

demand expected to exceed supply in 2013-2014, more fuel-efficient Post-Panamax designs are introduced

• Short Sea RoRo Continued low activities expected• Deep sea RoRo Will maintain low level, but large projects• RoPax Expected to increase after several years of low demand• Reefer Has not developed, strong competition from container,

conversions more likely than NB• Multipurpose Few but interesting and substantial projects; heavy lift with growth

potential • Cruise Slow increase towards normal levels• Offshore Currently high activities, risk for lower oil price will reduce

activities. PSV has dropped, more complex, but fewe r projects• Navy New focus area, currently uncertain market• Yachts Booming market• Heavy Lift Market is slow, few contracts out but is expected to improve in 2013

Market Development by Ship Types

Estimated total market share/ value for Marine Products is 12 000 MNOK

Others – 12%

Total TTS – 50%

Annual Sales in MNOK

Seohae

Ravenstein – 7%

Kyoritsu Kikai

Others

Total TTS

TTS JV

TTS JV

TTS JV

OthersN

aval

impi

anti

Mac

or

Cargotec

Others

Total TTS

Rolls Royce

Pusnes

Hatlapa

Kawasaki

Towimor

Others

Total TTS

Seohae

Cargotec

Others

Lieb

herr

Total TTS

Others – 12%

Total TTS

Mitsubishi

IHI

Liebherr

Marine Segments

Post Panamax:Shipping market not all black – light at the end of the tunnel

Post Panamax

• In 2015, the new, wider Panama Canal will open which will tolerate vessels with 34-36 meter width (compared to today’s 32m)

• New vessel size with increased capacity and efficiency have generated increased demand from ship owners and ship builders

• TTS well positioned for this fast-growing market

• Close and long-term relations with our customers, combined with our leading technology provides excellent platform to capitalize on the Post Panamax segment

• Stern Ramp technology and internal ramps of TTS Cargo Access approved and delivered

• TTS Cargo Access actively working together with customers to constantly improve cargo efficiency and capacity

Opens for new designs of Pure Car and Truck Carriers

Summary Marine

1.Challenging Market for new-building

2.Attractive segments in specialized ships

3.Positive Forecast for Bulk and Heavy Lift, ultimo 2 013

4.Service market showing signs of improvement

Port and LogisticsMarketEquipment for Shipyards, Terminals and Industry

• Low activity and backlog at the start of the year still affects earnings. However backlog has increased markedly over the last 6 months

• Turnover still below break-even, resulting in a negative EBITDA in the quarter

• While investment activity in North Europe remains at a relatively low level for port business, there are still opportunities in this market

• Two new contracts were reported in August of 50 MNOK

Port and Logistics - Status of Operations

Port & Logistics SegmentsContainer Port development - Trends

-15,0%

-10,0%

-5,0%

0,0%

5,0%

10,0%

15,0%

20,0%

-

20 000 000

40 000 000

60 000 000

80 000 000

100 000 000

120 000 000

140 000 000

160 000 000

180 000 000

200 000 000

in F

ull T

EU

Containerisation since 1995

FULL TEU growth

P&L Focus: Linkspans and ShipliftsPort & Logistics Market Development by Main Segments vs. Competitive power

Market size (annual new sales)

300 – 500 MNOK

500-1000 MNOK

Market growth 2012-2015 HighLow

TT

S p

ositi

on/e

xper

ienc

e

Weak

Strong

1000-1500 MNOK

Shipyards

Heavy Industry

Ports

Port & Logistics SegmentsEstimated total market value for Port & Logistics: 1 870 MNOK

860 (46%) 650 (35%)

TTS

Cargotec

Others

Ports

TTS

Others

Shipyard

IMG

360 (19%)

TTS

Industry

Annual Sales in MNOK

Bladt Industries

Ravenstein – 7%TEAM

Novatec

Ravenstein

TII Group (Kamag

Scheurle Rolls Royce

TII Group

Shipyard

Locals

Others

Seacom

Kress GIA

Horizontal Transportation Eq. Market in Container ports: 3 000 MNOK

Annual Sales in MNOK

666 MNOK (22%) 1 240 MNOK (40%) 840 MNOK (28%) 300 MNOK (10%)

Translifter+

Cassettes

Trailers

TerminalTractors

Straddle

Carriers

Auto

Shuttle

AGV

Others

Cargotec

Terex

Others

TTS

Liberr

CIMC

Houcon

Terberg

Cargotec

Others

Car

gote

c T

erex

(G

ottw

ald)

Port & Logistics Segments

Summary Port and Logistics

1.Ship repair market is in development – a potential f or TTS in segments for ship handling solutions

2.Port market showing signs of improvement

3.Long-term forecasts for the Port segments are posit ive with a growth in box movement between 5-6%

Offshore MarketDrillship and Rig CranesActive Heave Compensation-CranesWinches

Offshore Handling Equipment

• TTS continues focus on the offshore market after the sale of drilling equipment

• Improved order intake in the quarter relates to offshore cranes

• Higher activity compared to 2011 explains the improved earnings

• Sold rest of the stocked offshore cranes in the quarter

• Well positioned to take advantage of active offshore market

Drillship and rig-cranes, AHC Cranes, winch segments

Offshore Handling Equipment

• The offshore yards and rig/ drillship owners welcomes a new player in the supply of offshore handling equipment

• TTS infrastructure in Europe and China provide unique position for effective supply of offshore handling equipment

• TTS NMF GmbH facility for supply in Europe

• TTS Marine Shanghai Co Ltd. facility for supply in China

• Opportunities in the development of the offshore market in China and the Far-East where TTS is uniquely positioned

Opportunities

Offshore Handling MarketMain Driver – oil price forecast expected to stabilize around USD 95

Source: IHS Fairplay, TTS analysis

Offshore Market Drivers

Source: IHS Fairplay, TTS analysis

Global rig fleet development

0%

25%

50%

75%

100%

400

600

800

jan 2002 jan 2004 jan 2006 jan 2008 jan 2010 jan 2012

Utilization (%)# of units

Total Supply Contracted Working Contracted utilization (rhs)

Offshore Market Drivers

Source: IHS Fairplay, TTS analysis

Rig Day Rates

0

100

200

300

400

500

600

700

jan.02 jan.03 jan.04 jan.05 jan.06 jan.07 jan.08 jan.09 jan.10 jan.11 jan.12

USD'/day

UDW Midwater UK Premium jackup USGoM jackup

Global demand 2010 - 2016

Outlook Offshore Vessels

Offshore Handling SegmentsEstimated total market value for Offshore Handling is 4 000 - 5 000 MNOK

Offshore & Subsea systems market and competitive si tuation

3) A-frames, module handling systems and ROV LARS

4) Products offered by TTS SESources: Clarksons, Pareto, TTS analysis

1) Offshore AHC cranes and general offshore cranes. Not platform /rig cranes

2) AHT winches and subsea winches page 74

Annual sales (MNOK):

MacGregor

ODIM

1000

Lifting & HandlingOffshore cranes

Other

TTSHuisman

MacGregor

Hatlapa

ODIM

National Oilwell Varco

Rolls Royce Marine

Offshore winches

Other

ODIM

Huisman

TTS

MacGregor

National Oilwell Varco

2 700

Other

1200

TTS

National Oilwell Varco

Huisman

100 %

0%

10 %

60 %

50 %

40 %

90 %

80 %

30 %

20 %

70 %

TT

SO

ther

Offshore Access

45

MacGregor

Shipyard

TT

S O

ffsh

ore

Co

mp

eti

tiv

e P

ow

er

Market Growth 2012 - 2015

TTS Offshore Market Attractiveness Matrix

osv

100 - 500 mNOK

500 - 1000 mNOK

RIG

LOW

STRONG

HIGH

WEAK

1000 - 2000 mNOK

Market size offshore

equipment 2012

(annual new sales)

WELL

FPSO

DRILLSHIPS

AHTS Make to Order

Engineer to Order

Offshore Focus: Drillships, Rigs and OSVsMarket Development by Main Segments v.s Competitive power

Summary Offshore Market

1.Drillship and Rig Markets are hot and provide oppor tunities for TTS Rig Cranes

2.Increased demand for subsea construction vessel – po ssibilities for AHC Cranes

Summary

TTS Markets

Other marketsIn addition to China, TTS is building extensive local activites in Brazil, Singaporeand South Korea

Enhancing the Global Presence

The Market - Summary

Marine•Market prospects for complex ships are positive, pessimistic prospects for container and tank while the bulk and heavy lift sector shows signs of improvement ultimo 2013

Offshore Handling•Market prospects for OSVs are generally positive with opportunities in the rig/ drillship segments for offshore handling equipment

Port and Logistics•Market prospects for ship-lifts are positive while the market for port equipment shows minute signs of improvement on short term, long term – the trends are promising

Service•Challenging market that holds great potential, especially with development of four hubs for TTS’ global reach. Establish and develop long-term customer relations to end-user with strong product development of mission critical equipment. Improvements and important synergy effects already in place

www.ttsgroup.com

Capital Market Day20 November 2012

Oslo Konserthus

Coffee Break

Ivar K. HansonCOO

Capital Market Day 2012

TTS Group ASA

Streamlining Operations

Product Development

Service and After Market

TTS Group OperationsTopics

• Streamlining Operations

• Product Development

• Service and After Market

TTS Group ASATopics

StreamliningOperations

Creating an Operations Platform for GrowthEstablishing ‘’The TTS Model’’

DeckEquipment

Port &Logistics

OffshoreHandling

CargoAccess

Service TTS NMFTTS JV

Sales

Service

Sourcing

Production

Continuous Cost ImprovementCentralized procurement at core of new organization

• Approx 50 MNOK reduction per year based on order intake volume

• Across all product groups in TTS

• Estimates for 2013, full effect in 2014

5 - 10%

ReducedPurchase Cost

Production Efficiency with New Organization

Finland:TTS-Liftec

Germany:TTS-NMF

Germany:TTS-Service(Bremerhaven)

China:TMS(Shanghai)

China:TTS-MarineEquipment (Dalian)

Excluded are JV‘s, Sub‘s and their products.

Korea:TTS-MarineEquipment

Maximize utilization, optimization based on core competencies

Enhancing Production EfficiencyIncrease of Value Added - Example: Winches

Establish an Engineering Footprint for GrowthCreating a Basis for Growth in High Value Segments

• Engineering Gdansk, Poland: Offsh/PCTC 30 Engineers, Cost: NOK 120/hour• Engineering Hai Phong, Vietnam: PCTC 14 Engineers Cost NOK 20 /hour• Engineering Shanghai, China: Offshore 10 Engineers Cost: NOK 55 /hour

TTS Group ASATopics

ProductDevelopmentPort & Logistics

Ship LiftsMarine

Side Loading SystemsOffshore

Rig CranesOffshore Winches

Ship Lifts and Shipyard Solutions

Ship Handling SolutionsHeavy Load Transfer

Productivity ToolsImproving Customer Productivity

Ship LiftsHandling solutions in the low-end market 300t-3000t

Ship Handling Tools

Side Loading Systems

Side Loading systemsHandles both pallets and cars

Performance UpgradeIncreases load capacity and reduces port turnaround

Reefer ship project

Potential for Additional Offshore Products

Cranes for rigs and drillships

Revitalize TTS efforts on Anchor Handling Winches

TTS Group ASATopics

Service andAfter Market

Key competencies available to the end-customer

Service-Driven Operations

DeckEquipment

Port &Logistics

OffshoreHandling

CargoAccess

Service

Ivar K. Hanson

Cheif Operating Officer

TTS NMFTTS JV

Service and After Market

After Market for Far-East

• TTS secured 100% after market from JV-partner for service outside of China

• Optimization and efficiency through integration of European and Far-East operations

• Through customer-driven development secure a strong position in the Far-East Offshore Market

• Increase ability to serve the customer on the spot and in a timely manner so as to increase our competitive edge.

• Independent entities with technical and design knowledge for all TTS products

• The Hub Advantages:- Customer accounts (sales)- Service capability on all TTS products- Stock of critical parts- Workshop- Technical knowledge (design)

TTS Group Hub StrategyStrategic Objectives and Actions

Service Hub Development:

Hub Development Areas:

•Bremerhaven•Singapore•Dubai•Fort Lauderdale

Services

•There is great potential to grow the Service busine ss, both in terms of market shares and volume. This will be achieved by:

- Increasing market penetration : Establish hubs in US, Singapore, Dubai and Bremerhaven. Establishing services company in Brazil

- Gearing the organization towards more pro-active sa les : Not just CRM and KAM but making our service engineers our prime sales force

- Implementing cost reduction initiatives and working “smarter”: Strategic stocking and implementation of ERP system for Marine Inc and Singapore

- Optimizing pricing : Developing and implementing a competitive pricing strategy

Customer-oriented main strategic direction

Summary

1. New Operations Platform in place for enhanced produ ction efficiency and synergies- Optimization and efficiency through integration of European and Far-East

operations

1. Increased focus on Product Development to meet new and increased demand- Increase TTS Engineering Footprint and additional offshore products

1. Hub Strategy implemented to improve customer effici ency in vessel operations- Increase global After Market Sales and Service

www.ttsgroup.com

Capital Market Day20 November 2012

Oslo Konserthus

Arild ApelthunCFO

Capital Market Day 2012

TTS Group ASA

Capital Market day 2012

• Financial Status TTS Group ASA- Main financial key figures and development- Change in Joint Venture structure more in detail - Balance sheet Q3 2012 after repayment of capital- Capital structure

• Selected Topics- Sale of Drilling: earn out model and potential

dividends going forward- Growth strategy – from a financial perspective –

alternatives- Pension obligation

Topics

Financial StatusTTS Group ASA

Financial Status TTS Group ASAMain financial key figures

(MNOK) YTD Q3 2012 YTD Q3 2011 Full year 2011

Revenue 1 560 1 993 2 594

EBITDA 122 93 171

EBITDA (%) 7,8 % 4,7 % 6,6 %

EBIT 82 74 144

Net result continuing buiness 36 8 38

Net result divested business including gain on sale 418 0 -15

Net result in total 454 8 23

EPS (NOK, continuing business) 0,45 0,11 0,50

EPS (NOK, total) 5,61 0,11 0,30

Net working capital -47 -94 -169

Capital Employed (*) 860 1 634 1 596

(*) Adjusted for excess cash (i.e. dividends)

• Originally set up to accommodate legislation in China

• Decision to wind down was made in 2010 and final close will be early 2013 as arrangement no longer needed. Marginal impact on EBITDA

• Effects on working capital from year end approx. 100 MNOK (MNOK 125 from Q3 last year)

• Compared to 2011, revenues excluding structure change are down 12% YTD Q3

Financial Status TTS Group ASAChanges in Joint Venture structure affects revenue

• Consolidated TTS Group will remain debt free company after repayment of capital and adjusted for repayment of capital.

- Equity ratio of 38% at the end of 3rd

quarter 2012

• TTS Group aim at having a low working capital going forward and remain a “asset light” company

• Key focus is to minimize working capital to limit need for credit. Key drives are:

- Significant projects aim at being cash neutral

- Manage procurement and inventory

Financial Status TTS Group ASABalance Sheet after repayment of capital

28,7 29,0

46,6 46,5

38,0

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q3 2012

Illustration

Equity ratio

• Working capital has moved substantially during the last quarter and year. Most of the movement in Q2 and Q3 relate to the sale of the drilling unit

• Change from year end of MNOK 148 – approx. MNOK 100 relate to change in JV structure and approx. MNOK 80 relates to acquisition of NMF

• Working capital is expected to increase gradually going forward but is still expected to be kept at a relatively modest level

Financial Status TTS Group ASANet working capital development

• In connection with the sale of the drilling unit TTS repaid 80% of its debt• TTS expects to have a new finance package finalized in Q4 mainly to

maintain financial flexibility

Financial Status TTS Group ASACurrent capital structure

MNOK Q3 12 Q2 12 Q1 12 Q4 11 Q3 11

Short term interest b. debt 45 21 577 755 793Long term int. bearing debt 29 37 313 35 96

Convertible Bond(*) 95 112 188 193 195

Total 169 170 1 078 983 1 084

Cash 565 985 567 435 492

Net interest b. debt(*) -396 -815 511 548 592

(*) Convertible loan included at nominal value(*) Negative indicates asset position

Selected Topics

• Base for the earn out relates to 12 months revenue relating to specific products existing in the business at the time it was sold.

• A 7.5% earn out of revenue exceeding certain levels

• While the exact earn out is not possible to estimate reliably and depends on a number of factors outside TTS control, the award of equipment to drill ship improves likelihood of earn out.

• TTS current view is that the gain on the drilling business sale, after repayment of debt, should be paid to shareholders

Earn Out Relating to Sale of Drilling Unit

• TTS has a long history of successful acquisitions

• Current market conditions and development is likely to provide opportunities for further growth through acquisitions

• Over the last years TTS Group had a significant gearing following the acquisition of the drilling unit

• Sale of drilling unit results in a debt free company

• Long term TTS aim at a gearing which reflects its cyclic business, working capital fluctuation and especially need for financial flexibility.

• Current target capital structure: - Equity ratio above 30%- Net debt/EBITDA below 2

Funding Growth

• TTS has a defined contribution scheme for the majority of its Norwegian employees

• TTS to adopt IAS 19 from 1 January 2013- Liability being reflected in the balance sheet (and affect equity)- Currently obligation is estimated to be between 50 and 80 MNOK

and represents 6-10 % on the equity ratio- The change has limited impact to P&L and no cash effect

• TTS is expecting that legislation changes in progress could reduce liability in 2013

Pension Obligation

www.ttsgroup.com

Capital Market Day20 November 2012

Oslo Konserthus

Thank you