Listing of Bonds issued by Havilafjord AS in a NOK 1,000,000,000 FRN senior secured open bond issue with maturity in 2023

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1 PROSPECTUS HAVILAFJORD AS (A private limited liability company organized under the laws of Norway) Listing of Bonds issued by Havilafjord AS in a NOK 1,000,000,000 FRN senior secured open bond issue with maturity in 2023 ISIN: NO This prospectus (the Prospectus ) relates to, and has been prepared in connection with the listing (the Listing ) on Oslo Børs, a stock exchange operated by Oslo Børs ASA ( Oslo Børs ), of bonds (the Bonds ) which were issued by Havilafjord AS (the Company or the Issuer ) on 19 June 2018 in a senior secured open bond issue in an initial amount of NOK 750,000,000 and in a maximum amount of NOK 1,000,000,000, with maturity in June 2023 (the Bond Issue ). The Bonds have a floating interest rate of 3 month NIBOR %. The Bonds are expected to be listed and tradable on Oslo Børs on or about 11 January The distribution of this Prospectus may in certain jurisdictions be restricted by law. Accordingly, this Prospectus may not be distributed or published in any jurisdiction except under circumstances that will result in compliance with any applicable laws and regulations. The Company and the Managers (as defined below) require persons in possession of this Prospectus to inform themselves about, and to observe, any such restrictions. This Prospectus and the Bonds shall be governed by and construed in accordance with Norwegian law. The courts of Norway, with Oslo City Court as legal venue, shall have exclusive jurisdiction to settle any dispute which may arise out of, or in connection with the Bonds or this Prospectus. THIS PROSPECTUS IS A LISTING PROSPECTUS FOR BONDS ALREADY ISSUED BY HAVILAFJORD AS. NO SECURITIES ARE BEING OFFERED TO ANY PERSON IN ANY JURISDICTION ON THE BASIS OF THIS PROSPECTUS. Investing in the Company and the Bonds involves material risks and uncertainties. Please refer to section 2 (Risk Factors) for further information on risks and uncertainties. *** Managers The date of this Prospectus is 10 January 2019

2 IMPORTANT INFORMATION Please refer to section 9 Definitions and Glossary of Terms for definitions of terms used throughout this Prospectus, which also apply to the preceding pages. This Prospectus has been prepared in order to provide information about the Company and its business in relation to the Listing of the Bonds, and to comply with the Norwegian Securities Trading Act of June 29, 2007 no. 75 (the Norwegian Securities Trading Act ) and related secondary legislation, including EC Commission Regulation (EC) no. 809/2004 implementing Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive) regarding information contained in prospectuses (the Prospectus Directive ). This Prospectus has been prepared solely in the English language. This Prospectus has been reviewed and approved by the Norwegian FSA in accordance with sections 7-7 and 7-8, cf. section 7-3 of the Norwegian Securities Trading Act. The Norwegian FSA has not controlled or approved the accuracy or completeness of the information given in this Prospectus. The approval given by the Norwegian FSA only relates to the Company's descriptions pursuant to a pre-defined check list of requirements. The Norwegian FSA has not made any form of control or approval relating to corporate matters described in or otherwise covered by this Prospectus. The Norwegian FSA approved this Prospectus at 10 January The Company has furnished the information in this Prospectus. The Company has engaged Fearnley Securities AS and SpareBank 1 Markets AS as joint lead managers (the Managers ) in connection with the Bond Issue. Unless otherwise indicated, the information contained herein is current as of the date hereof and the information is subject to change, completion and amendment without notice. In accordance with Section 7-15 of the Norwegian Securities Trading Act, every significant new factor, material mistake or inaccuracy that is capable of affecting the assessment of the Bonds arising after the time of approval of this Prospectus and before the date of listing of the Bonds on Oslo Børs will be published and announced promptly as a supplement to this Prospectus. Neither the publication nor distribution of this Prospectus shall under any circumstances create any implication that there has been no change in the Company s affairs since the date hereof or that the information herein is correct as of any time since its date. The distribution of this Prospectus may in certain jurisdictions be restricted by law. Accordingly, this Prospectus may not be distributed or published in any jurisdiction except under circumstances that will result in compliance with any applicable laws and regulations. The Company and the Managers require persons in possession of this Prospectus to inform themselves about, and to observe, any such restrictions. An investment in the Bonds involves inherent risks. Potential investors should carefully consider the risk factors set out in section 2 Risk Factors in addition to the other information contained herein before making an investment decision. An investment in the Company or its securities is suitable only for investors who understand the risk factors associated with this type of investment and who can afford a loss of their entire investment. The contents of this Prospectus are not to be construed as legal, business or tax advice. Each prospective investor should consult with its own legal adviser, business adviser and tax adviser as to legal, business and tax advice. In the ordinary course of their respective businesses, the Managers and certain of their respective affiliates have engaged, and will continue to engage, in investment and commercial banking transactions with the Company. The Bonds are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable securities laws and regulations. Investors should be aware that they may be required to bear the financial risks of an investment in the Bonds for an indefinite period of time. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. Without limiting the manner in which the Company may choose to make any public announcements, and subject to the Company s obligations under applicable law, announcements relating to the matters described in this Prospectus will be considered to have been made once they have been received by Oslo Børs and distributed through its information system. The distribution of this Prospectus and the offer and sale of the Bonds in certain jurisdictions may be restricted by law. The Company and the Managers require persons in possession of this Prospectus to inform themselves about, and to observe, any such restrictions. This Prospectus does not constitute an offer of, or an invitation to subscribe or purchase any securities in any jurisdiction. Furthermore, the restrictions and limitations listed and described herein are not exhaustive, and other restrictions and limitations in relation to the Prospectus that are not known or identified by the Company and the Managers at the date of this Prospectus may apply in various jurisdictions as they relate to the Prospectus. The Company has not registered the Bonds under the U.S. Securities Act or the securities laws of other jurisdictions other than the Kingdom of Norway and the company does not expect to do so in the future. The Bonds may not be offered or sold in the United States or to U.S. persons (as defined in Regulation S under the Securities Act), except for pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities law, or pursuant to an effective registration statement. 2

3 TABLE OF CONTENTS 1. SUMMARY RISK FACTORS RESPONSIBILITY STATEMENT INFORMATION ABOUT THE COMPANY AND THE GROUP FINANCIAL INFORMATION THE BONDS BOARD AND MANAGEMENT ADDITIONAL INFORMATION DEFINITIONS AND GLOSSARY OF TERMS APPENDICES Appendix 1 Bond Terms Appendix 2 Havilafjord AS audited consolidated annual report 2017 & 2016 Appendix 3 Havilafjord AS unaudited Q3 report

4 1. SUMMARY Summaries are made up of disclosure requirements known as Elements. These elements are numbered in Sections A E (A.1 E.7). This summary contains all the Elements required to be included in a summary for this type of securities and Issuer. Because some Elements are not required to be addressed, there may be gaps in the numbering sequence of the Elements. Even though an Element may be required to be inserted in the summary because of the type of securities and Issuer, it is possible that no relevant information can be given regarding the Element. In this case a short description of the Element is included in the summary with the mention of not applicable. Section A Introductions and warnings A.1 Introduction and warning This summary should be read as introduction to the prospectus. Any decision to invest in the securities should be based on consideration of the prospectus as a whole by the investor. Where a claim relating to the information contained in the prospectus is brought before a court, the plaintiff investor might, under the national legislation of the Member States, have to bear the costs of translating the prospectus before the legal proceedings are initiated. Civil liability attaches only to those persons who have tabled the summary including any translation thereof, but only if the summary is misleading, inaccurate or inconsistent when read together with the other parts of the prospectus or it does not provide, when read together with the other parts of the prospectus, key information in order to aid investors when considering whether to invest in such securities. A.2. Use of the prospectus in resales by financial intermediaries Not applicable. The Prospectus will not be used in subsequent resales by financial intermediaries Section B Issuer B.1 Legal and commercial name B.2 Domicile, legal form, legislation and country of incorporation The legal and commercial name of the Company is Havilafjord AS. The Company is incorporated in Norway with registration number and organised as a private limited liability company in accordance with the Norwegian Private Limited Companies Act. 4

5 B.3 Nature of current operations and principal activities, products and markets The only business of the Company is to own 51.5% of the shares in the listed company Fjord1 ASA. Fjord1 is the largest ferry company in Norway with 17.3 million passenger car equivalents ( PCE ) transported in 2017, representing an estimated market share of 49% according to Management estimates. The ferry and passenger boat activity is based on long-term contracts with public road authorities. Fjord1 currently has a total of 22 contracts with public road authorities, covering 29 ferry connections. Fjord1 has an existing fleet of 65 ferries with a total capacity of 5,614 PCE, in addition to four passenger boats. B.4a Known trends There are no significant known trends that will have material adverse effect on the current financial year for the Company. B.5 Group The Company is 100% owned by Havila Holding AS, org no: The Company s only asset is the holding of 51.5% of the shares in the Oslo Børs listed company Fjord1 ASA, org no: ( Fjord1 ) B.9 Profit forecast or estimate B.10 Qualifications in the audit report Not applicable. The Company have not made any profit forecasts or estimates. Not applicable. There are no qualifications in the audit reports. 5

6 B.12 Selected historical key financial information, material adverse changes in prospects and significant changes in the financial or trading position. There has been no material adverse change in the prospects of the Issuer since the data of its last published audited financial statements. There has been no significant changes in the financial or trading position after Annual Report Havilafjord AS annual consolidated accounts (audited) Balance sheet (NOK thousands) Total non-current assets 4,956,476 5,106,118 Total current assets 687, ,660 Total assets 5,643,753 5,821,778 Total equity attributable to owners of the parent 893,555 1,251,881 Non-controlling interests 1,132,467 3,881 Total liabilities 3,617,731 4,566,016 Total equity and liabilities 5,643,753 5,821,778 Profit & loss statement (NOK thousands) Total operating income 2,794, ,795 Total operating expenses (1,834,949) (411,631) Operating profit (EBIT) 411, ,184 Net financial income/(expenses) (82,075) 14,811 Profit/(loss) before tax 329, ,995 Total comprehensive income for the year 287, ,266 Cash flow statement (NOK thousands) Net Cash flow from operating activities 849, ,998 Net Cash flow used in investing activities (749,223) (203,783) Net Cash flow from financing activities (165,174) 563,521 Cash and cash equivalents at end of period 521, ,422 B.13 Recent events There are no recent events related to which to a material extent are relevant for the evaluation of the Issuer s solvency. B.14 Group and dependence on other entities B.15 Principal activities The Group is inter-related with regard to both financial and operational matters and the Group companies are as such dependent on each other. As all operations are carried out in, and all fixed assets and employees are held by Fjord1, the Company is dependent on the financial and operational performance of Fjord1. Havilafjord AS is a special purpose vehicle fully owned by Havila Holding AS, which is controlled and owned by the Sævik family. Established in 2011 with the sole purpose of owning shares in Fjord1, currently 51.5% shareholding in Fjord1 with a market value as of of NOK 2.822bn. Fjord1 is listed on Oslo Børs under the ticker FJORD. 6

7 B.16 Ownership and control The Company is directly controlled by Havila Holding AS, with is controlled by the Sævik family. B.17 Credit ratings There are no official credit ratings assigned to the Issuer or its debt securities. Section C - Securities C.1 Type and class of security C.2 Currency of the securities issue C.5 Restrictions on the free transferability of the securities C.8 Rights attached to the Bonds FRN Senior secured open Bonds with ISIN NO NOK The Bonds are freely tradable. Bondholders may however be subject to purchase or transfer restrictions under local laws to which a Bondholder may be subject (due e.g. to its nationality, its residency, its registered address, its place(s) for doing business). Pursuant to the Bond Terms, each Bondholder must ensure compliance with applicable local laws and regulations at its own cost and expense. At the Bondholders meeting each Bondholder has one vote for each bond he owns, save for any bonds owned by the Issuer itself which do not carry voting rights. Denomination: NOK 500,000 each and ranking pari passu among themselves. The Bonds constitute senior debt of the Company, secured on a first priority basis over 50.1% of the outstanding shares in Fjord1 ASA held by the Issuer and all bank accounts of the Issuer, and otherwise rank at least pari passu with the claims of its other creditors, except for obligations which are mandatorily preferred by law. 7

8 C.9 Terms of the Bonds Coupon rate: NIBOR + Margin Reference Rate: 3 months NIBOR Margin: 5.00% p.a. First Interest Payment Date: 19 September 2018 (3 months after the Settlement Date). Final Maturity Date: 19 June 2023 (5 years after the Settlement Date). The Bonds shall be repaid in full on the Final Maturity Date at a price of % of the Nominal Amount (par value). Yield: Investors wishing to invest in the Bonds after the issue date must pay the market price for the Bonds in the secondary market at the time of purchase. Depending on the development in the bond market in general and the development of the Issuer, the price of the Bonds may have increased (above par) or decreased (below par). As the Bonds have a floating reference rate, it is the market's expectations of risk premium, i.e. margin that affects the price. If the price has increased, the yield for the purchaser in the secondary market, given that the reference rate does not change, will be lower than the interest rate of the Bonds and vice versa. At par and an assumption that the reference rate is 1.03% from the issue date to maturity date, the yield will be 6.03%. C.10 Derivative component C.11 Admission to trading The Bonds have a derivative component in the interest payment linked to the Norwegian Interbank Offered Rate (NIBOR). An application for admission to trading on the Oslo Børs will be made once the Prospectus has been approved and within 6 months of the Issue Date. 8

9 Section D Risks D.2 Key information on the key risks that are specific to the issuer Risks in the relation to the share price development of the Fjord1 listed shares. Risks in relation to the Fjord1 s contracts, including operational, technical, commercial and political. As it is impossible to insure against all applicable. Risks and liabilities, Fjord1 may assume substantial liabilities in its operations. Construction risks in relation to new builds, and delays may affect the potential revenue or potentially the loss of contracts. The application of new zero or low emission power technology may lead to failure to comply with the terms of the relevant contracts, e.g. in respect of breach of the environmental requirements under the contracts or traffic delays, should the new technology not function as intended. The reconstruction of docks to facilitate the construction of charging towers and other infrastructure may be affected in a manner that may lead to noncompliance with the environmental requirements in the new contracts. Maintenance costs for the Fjord1 s vessels may be substantial. Fjord1 s development is dependent on key personnel. The option periods for current contracts may not be exercised and new tenders may not be awarded to Fjord1. Fjord1 s key contracts are for long terms, which implies a risk for committing to potentially unprofitable projects for a long period of time, should Fjord1 be erroneous in its calculations and/or assumptions forming the basis for the offers made in the respective tender process. The technical operation of the vessels will have a significant impact on the vessels economic life. 9

10 D.3 Key information on the key risks that are specific to the securities All investments in interest bearing securities have risk associated with such investment. The risk is related to the general volatility in the market for such securities, varying liquidity in a single bond issue as well as company specific risk factors. There are four main risk factors that sum up the investors' total risk exposure when investing in interest bearing securities: liquidity risk, settlement risk, credit risk and market risk (both in general and issuer specific). Liquidity risk The liquidity of the trading market in the Bonds, and the market price quoted for the Bonds, may be adversely affected by changes in the overall market for similar yield securities, interest rates and the Issuer s financial performance or prospects or in the prospects for companies in its industry generally. Interest-rate risk is the risk that results from the variability of the NIBOR interest rate. The coupon payments, which depend on the NIBOR interest rate and the Margin, will vary in accordance with the variability of the NIBOR interest rate. Settlement risk is the risk that the settlement of bonds does not take place as agreed. The settlement risk consists of the failure to pay or the failure to deliver the bonds. Credit risk is the risk that the Borrower fails to make the required payments on the Bonds (either principal or interest). Market risk is the risk that the value of the bonds will decrease due to the change in value of the market risk factors. The price of a single bond issue will fluctuate in accordance with the interest rate and credit markets in general, the market view of the credit risk of that particular bond issue, and the liquidity of this bond issue in the market. 10

11 Section E Offer E.2b Reasons for the offer and use of proceeds The Initial Loan Amount (net of fees and legal cost of the Managers and the Bond Trustee and any other cost and expenses incurred in connection with the Bond Issue) shall exclusively be employed for (i) repayment of Existing Debt, and (ii) general corporate purposes. E.3 Terms and conditions of the offer E.4 Material interests E.7 Estimated expenses charged to the investor by the issuer or the offeror Not applicable. The Prospectus relates to the listing of already issued Bonds. The Managers or their affiliates have provided from time to time, and will provide in the future, investment and commercial banking services to the Company and its affiliates in the ordinary course of business, for which they may have received and may continue to receive customary fees and commissions. The Managers, their employees and any affiliate may currently own existing Shares and/or bonds in the Company. The Managers does not intend to disclose the extent of any such investments or transactions otherwise than in accordance with any legal or regulatory obligation to do so. The Managers received a commission in connection with the issue of the Bonds. Not applicable. The Company will not charge any expenses to the investors. 11

12 2. RISK FACTORS Investing in the Company and the Bonds involves inherent and significant risk, which, if they were to materialise, may materially and adversely affect the Company's investments, results of operations, financial condition and/or prospects. This may in turn result in a decline in the value of the Bonds and a loss of part or all of any investment. The summary of risk factors set out herein is not intended to be exhaustive, and the risks referenced below are not the only ones facing the Company and the Bonds. Additional risks, including also risks which may not presently be known to the Company, or which is currently deemed immaterial, may also materially impair the Company's assets and operations and adversely affect the value of the Company s securities. The risks described only constitutes a high level summary of certain risks facing the Company and associated with an investment in the Bonds and must be viewed in context of other publicly available information, including in particular periodic reports and historic announcements of Fjord1. The order of appearance is not intended to indicate importance or likelihood of occurrence. An investment is suitable only for investors who are able to understand the risks associated with this type of investment and who can afford a loss of all or part of the investment. Before making an investment decision, prospective investors should carefully consider the information provided. No investor should make any investment decision without having reviewed and understood the risks associated with investing in the Bonds (whether described herein or not). Investors must conduct its own investigations and analysis of the Company, and should consult his or her own expert advisors as to the suitability of an investment in the Bonds. The Company is a single purpose company, with its sole asset being shares of Fjord1. The Company is thus fully dependant on the performance of Fjord1 and its stock value and dividend capacity, and there can be no assurances that Fjord1 will make sufficient dividends to enable the company to service the Bonds or that the value of the shares of Fjord1 furnished as security for the Bonds will be sufficient to cover any outstanding amounts e.g. in the event of a default and subsequent enforcement situation. For further information on risks particularly associated with Fjord1, prospective investors are therefore urged to review risk descriptions included in the presentations, prospectuses and financial reports available on ( 2.1 Risks relating to the Company, Fjord1 and the industry in which it operates Market risks Continued volatility in global financial markets and other macroeconomic factors may adversely affect Fjord1 s and thus the Company's business, results of operations, financial condition and prospects. Uncertainty relation to development of the world economy may reduce the demand for the Company's services, result in non-performance of contracts by counterparties, and limit Fjord1 s ability to obtain additional capital to finance new investments or have other unforeseen negative effects. Such changes and developments, none of which will be within the control of the Company or Fjord1, may negatively impact their investment activities, realisation opportunities and overall investor returns. Risks related to competition The industry in which the Group operates is competitive. Although the Group considers itself well positioned in the Norwegian and Swedish markets, no assurance can be given with regard to future competition. Competitive pressures or other factors may result in significant price competition, particularly during industry downturns, which could materially adversely affect the Group s business, results of operations and financial condition. As Fjord1 s assets are largely concentrated in a single industry, it may be more vulnerable to particular economic, political, regulatory, environmental or other developments than would a company holding a 12

13 more diversified portfolio of assets and the aggregate return of Fjord1 will be substantially adversely affected by the unfavourable performance of a single asset. Technology risk Fjord1 s focus on the further development and implementation of new zero or low emission power technology implies a higher degree of risk that the relevant ferries do not function as intended, compared to older and tested technology. There is further a risk that sub suppliers are not able to provide adequate and relevant deliveries, e.g. sufficient charging facilities. This may lead to failure to comply with the terms of the relevant contracts, e.g. in respect of breach of the environmental requirements under the contracts or traffic delays. Political risks Changes in legal, tax and regulatory regimes within the relevant jurisdictions may occur during the life of the Company and Fjord1 which may have an adverse effect. Governmental laws and regulations, including environmental laws and safety regulations, may limit the activities of the Company, reduce vessel values and require capital expenditures for upgrades or modifications to the vessels, or expose the Company to liability. Growth risk The Group may be required to make substantial capital expenditure for expansion of its operations in the future. Such capital expenditures could be covered by revenues, new equity or by obtaining new debt. If the Group s revenues are not sufficient to cover capital expenditures for future expansion plans, if the Company is unable to attract investors to increase the Group s equity, or if new debt arrangements are not accessible, or only on unattractive commercial terms, the Group will experience a limited ability to expand its business. Compliance with laws, regulations and industry standards Governmental laws and regulations could affect operations, increase operating costs and restrict or make it more challenging for the Group to conduct its business and/or deliver its services. Given the nature of the business and counterparties, any breach (or alleged breach) of laws and regulations could materially adversely affect the Group's business, financial condition, results of operation and prospects. Ability to retain and attract members of management and key personnel The Group's business depends on its ability to attract and retain skilled professionals with appropriate experience, technical expertise, training and certificates. The loss of key personnel may have an adverse impact on the Group's operating results and financial condition. Risk of antitrust and competition regulation The market in which the Group operates is characterized by few and large players and applicable antitrust and competition regulations may prevent the Group from making future acquisitions and from consolidating with other companies operating within the same market. Estimation risk The Group may fail to effectively estimate risks, costs or timing when bidding on contracts and to manage such contracts efficiently which could have a material adverse impact on the profitability of the Group. 13

14 Reputation risk The Group may become subject to inspections and negative publicity relating to private operators in each of the Group s business segments which may have a material adverse effect on the Group s operations, results and financial conditions. Similarly, the Group s reputation may also be negatively affected if there is a quality breach in the operations in one of the Group s subsidiaries. Repair and maintenance risk Repairs and maintenance costs for vessels are inherently difficult to predict and may be substantially higher than expected. 2.2 Financial risks Current and future debt facilities of Fjord1 will impose operating and financial restrictions on it. The restrictions may limit Fjord1's ability make dividends, or from incurring additional indebtedness, create liens on its assets, sell its vessels, and other actions otherwise beneficial for the Company. 2.3 Risk factors relating to the Bonds General All investments in interest-bearing securities have risk associated with such investment. The risk is related to the general volatility in the market for such securities, varying liquidity in a single bond issue as well as company-specific risk factors. There are five main risk factors that sum up the investors total risk exposure when investing in interest bearing securities: liquidity, interest-rate, settlement, credit and market risk (both in general and issuer-specific). Liquidity risk The liquidity of the trading market in the Bonds, and the market price quoted for the Bonds, may be adversely affected by changes in the overall market for similar yield securities, interest rates and the Issuer s financial performance or prospects or in the prospects for companies in its industry generally. As a result, an active trading market for the Bonds may not develop or be maintained. Historically, the markets for high-yield debt, such as the Bonds, have been subject to disruptions that have caused substantial volatility in their prices. Any market for the Bonds may be subject to similar disruptions. Any such disruptions may affect the liquidity and trading of the Bonds independently of the Issuer s financial performance and prospects and may have an adverse effect on the holders of the Bonds. No market-maker agreement has been entered into in relation to this Bond Issue, and the liquidity of the Bonds will depend at all times on the market participants view of the credit quality of the Issuer as well as established and available credit lines. Interest-rate risk Interest-rate risk is the risk that results from the variability of the NIBOR interest rate. The coupon payments, which depend on the NIBOR interest rate and the Margin, will vary in accordance with the variability of the NIBOR interest rate. The interest-rate risk related to this Bond Issue will be limited, since the coupon rate will be adjusted quarterly in accordance with the change in the reference interest rate (NIBOR three months) over the five-year tenor. The primary price risk for a floating rate bond issue will be related to the market view of the correct trading level for the credit spread related to the bond issue at a certain time during the tenor, compared with the credit margin the bond issue is carrying. 14

15 A possible increase in the credit spread trading level relative to the coupon-defined credit margin may relate to general changes in the market conditions and/or Issuer-specific circumstances. Under normal market circumstances, however, the anticipated tradable credit spread will fall as the duration of the bond issue shortens. In general, the price of bonds will fall when the credit spread in the market increases, and conversely the bond price will increase when the market spread decreases. Settlement risk The settlement risk (being the risk that the settlement of Bonds does not take place as agreed) consists of the failure to pay or the failure to deliver the Bonds. Credit risk Credit risk is the risk that the Borrower fails to make the required payments under the Bond Issue (either principal or interest). Market risk Market risk, also called "systematic risk", is the negative impact on the value of the Bonds from any type of major natural disaster, such as recessions, political turmoil, changes in interest rates or terrorist attacks. The price of a single bond issue will fluctuate in accordance with the interest rate and credit markets in general, the market view of the credit risk, and the liquidity of this Bond Issue in the market. In spite of an underlying positive development in the Issuer s business activities, the price of the Bonds may fall independently of this fact. However, bond issues with a relatively short tenor and a floating-rate coupon rate do generally carry a lower price risk compared with bonds with a longer tenor and/or with a fixed coupon rate. Modification and waiver The conditions of the Bonds contain provisions for calling meetings of bondholders to consider matters affecting their interests generally. These provisions permit defined majorities to bind all bondholders including bondholders who did not attend and vote at the relevant meeting and bondholders who voted in a manner contrary to the majority. 2.4 Amendments and waivers The Issuer and the Bond Trustee (acting on behalf of the Bondholders) may agree to amend the Finance Documents or waive a past default or anticipated failure to comply with any provision in a Finance Document, provided that: (i) (ii) (iii) such amendment or waiver is not detrimental to the rights and benefits of the Bondholders in any material respect, or is made solely for the purpose of rectifying obvious errors and mistakes; or such amendment or waiver is required by applicable law, a court ruling or a decision by a relevant authority; or such amendment or waiver has been duly approved by the Bondholders in accordance with Clause 17 (Bondholders Decisions) in the Bond Terms. Any changes to the Bond Terms necessary or appropriate in connection with the appointment of a Security Agent other than the Bond Trustee shall be documented in an amendment to the Bond Terms, signed by the Bond Trustee (in its discretion). If so desired by the Bond Trustee, any or all of the Transaction Security Documents shall be amended, assigned or re-issued, so that the Security Agent is the holder of the relevant Security (on behalf of the Bondholders). The costs incurred in connection with such amendment, assignment or re-issue shall be for the account of the Issuer. 15

16 3. RESPONSIBILITY STATEMENT The Company, with registered address Mjølstadnesvegen, 6092 Fosnavåg, Norway is responsible for this Prospectus. The Company declares that, having taken all reasonable care to ensure that such is the case, the information contained in this Prospectus is to the best of the Company's knowledge in accordance with the facts and contains no omissions likely to affect its import. Fosnavåg, 10 January 2019 Havilafjord AS 16

17 4. INFORMATION ABOUT THE COMPANY AND THE GROUP 4.1 The Company The Company, Havilafjord AS, was incorporated on 10 August 2011 and is registered under the laws of Norway with company registration number The Company is organised as a private limited liability company in accordance with the Norwegian Companies Act. The Company's domicile is Mjølstadnesvegen, 6092 Fosnavåg, Norway. Its mailing address is P.B. 215, 6091 Fosnavåg. The Company s telephone number is The Company is a special purpose vehicle (SPV). According to paragraph 3 of the articles of association of the Company, the sole purpose of the Company is to own shares in Fjord Share capital and ownership The Company currently has a share capital of NOK 200,000 divided into 2,000 shares of NOK 100. The Parent is the sole shareholder of the Company. There are no arrangements known to the Company at the date of this Prospectus which may result in a change in control of the Issuer. 4.2 Fjord1 Fjord1 ASA was incorporated on 9 May 2011 and is registered under the laws of Norway with company registration number Fjord1 is organised as a public limited company in accordance with the Norwegian Companies Act, with domicile at Strandavegen 15, 6905 Florø, Norway. Its mailing address is P.B. 354, 6902 Florø, its telephone number is , and its web address is According to the articles of association, the main purpose of Fjord1 is to conduct transportation, communications and tourism Share capital and ownership Fjord1 currently has a share capital of NOK divided into shares of NOK 2.50 each. The shares of Fjord1 have been listed on Oslo Børs since 15 August 2017, under the ticker "FJORD". The Company currently owns 51,500,000 shares in Fjord1 representing fifty-one point five per cent. (51.5%) of the share capital. 4.3 The shareholder of the Company Havila Holding AS The Parent, Havila Holding AS, is a maritime investment company, owned by the Sævik family. The company is based in Fosnavåg in Norway and has more than 30 years of maritime experience. The Group initially focused on fisheries and offshore supply vessels and has later expanded into other segments to diversify the business. Media / Advertisement Real estate Offshore/ fisheries Tourism Shipbuilding Transportation Ownership stakes in Bakkar og Berg Media AS and Nordic Mediatech AS Ownership stakes in hotels and property development companies Ownership in several companies, among others P/F Skansi Offshore, Axxis Geo Solutions AS and Volstad Maritime AS Havila Hotels AS Fosnavåg Vekst AS Havila Kystruten AS 40.1 per cent. ownership in Havyard Group ASA Fjord1 ASA Widerøe AS 17

18 4.4 Description of the legal structure of the Group The Company, Havilafjord AS, is a holding company 100 per cent. owned by the Parent, Havila Holding AS, an investment company owned by the Sævik family. Havilafjord AS is the majority shareholder of Fjord1 ASA, with fifty-one point five per cent. (51.5%) ownership share. As all operations are carried out in, and all fixed assets are held by, Fjord1, the Company is dependent on the financial and operational performance of Fjord1. Please find below a chart describing the legal structure of the Group: Havila Holding AS Havilafjord AS (Issuer) 100% Fjord1 ASA 51.5% FERRIES TOURISM PASSENGER BOATS OTHERS Fanafjord AS 100% The Fjords DA 50% Kystekspressen ANS 49% Bolsønes Verft AS 100% Nye Fanafjord AS 100% The Fjords Fartøy 1 DA 100% Fjord Tours AS 30.6% ÅB Eigedom AS 66% Hareid Trafikkterm. AS 63% Måløy Reisebyrå AS 100% WF Holding AS 34% Widerøe AS 100% 18

19 4.5 Principal activities Introduction The Company s principal activities relates to its share ownership in Fjord1, being the largest ferry company in Norway with 16.8 million passenger car equivalents ( PCE ) transported in 2016, representing an estimated market share of 49%. 1 The Company has an existing fleet of 61 ferries with a total capacity of 5,112 PCE, in addition to four passenger boats. Fjord1's goal is to be the leading company within environmentally friendly ferry solutions and modern technology. In addition, Fjord1 operates within passenger boats, tourism and catering. The ferry and passenger boat activity of Fjord1 is based on long-term contracts with public road authorities. Fjord1 currently has a total of 22 contracts with public road authorities, covering 27 ferry connections Overview of the ferry business The ferry business in Norway is a service provided by private companies (such as Fjord1) to public road authorities, being a mix of state agencies and county municipalities. Contracts are entered into on a competitive basis, based on public tender procedures. The Company estimates that, measured in capacity (PCE), contracts in respect of approximately 40% of the Norwegian ferry market will be subject to such public tenders in the next two to three years. The normal contract duration is between 6 and 10 years, where a number of the agreements include unilateral options for the counterpart to extend the term. There is significant variation between the different contracts for ferry connections, in respect of the capacity (PCE) required, number of connections included, the frequency to be applied, environmental requirements etc. Consequently, the value of a contract will vary. During the term of the contract, the ferry provider receives contribution to provide a service matching the requirements set forth in the respective invitation to tender in respect of timetable, vessel and operational profile as well as personnel. Under the respective contract, the Company is granted a license to operate the connection in the contract period, resulting in an effective monopoly for the service during such period. Pursuant to the contracts, the ferry provider must provide equipment (ferries), personnel (crew) and operations, and has full cost responsibility (including investments and maintenance), subject to normal rate or cost escalation clauses. The ferry provider will also be responsible for maintaining certain operational criteria, such as capacity, reliability, and other factors such as environmental factors (emissions). Contracts can be entered into on a gross or net basis. In the context of the ferry business, a gross contract is a contract where the ferry provider receives contribution by the public road authorities to provide a specified service, and has no risk on transport volume or ticket revenues; i.e. is paid to provide a certain infrastructure, with the ticket revenues being collected on behalf of the road authorities. In contrast, a net contract makes the ferry provider dependent on the transportation volume since the ferry provider must derive part of its revenue from such ticket revenues. Ticket revenues are often not sufficient to cover the costs of providing ferry services in the extent society desires. To enable the ferry service providers to provide the desired level of service, the contracts often contain a level of contribution to the operations. Pursuant to the newer contracts, prices are adjusted according to the Ferry Index while in the earlier contracts, the prices are regulated by the CPI-index. CPI is an adjustment for general inflation, while the Ferry index is a cost index for domestic sea transport, which takes into consideration development in costs specific for sea travel such as fuel, wages, interest cost and maintenance. 1 According to Management estimates. 19

20 A number of the contracts contain requirements for one or more back-up ferries in the event of engine failures and other operational disruptions. The contracts have differing requirements as to response time, capacity etc. In order to satisfy the requirement, not all of the Fjord1 s ferries are in day-to-day operations Contract backlog and ferry fleet The contracts of Fjord1 as of August 2017 represent gross revenues ( backlog ) of approximately NOK 21 billion over their duration. When competing for contracts, ferry providers need to take into account both operating, investing, and financing parameters of a contract to determine how to bid to achieve a satisfactory profitability. Technological shifts in the ferry business, with increased requirements for battery and/or hybrid powered ferries, add to the complexity of the tender process. The Company believes that Fjord1's broad portfolio of contracts serves to mitigate specific risks related to individual contracts. Further, the Company believes that Fjord1 has gained significant advantages by being at a technological forefront, having commenced operation of its first LNG ferries in 2007 and commenced operation of its first fully electric connection in In order to serve its contract portfolio, Fjord1 has a large fleet of 65 ferries built and maintained to the standards required. Capacities are measured in passenger car equivalents (PCEs) and the fleet has a total capacity of 5,614 PCE, in addition to four passenger boats. Three ferries and one passenger vessel are charterer to The Fjords DA. At times with free capacity, Fjord1 may charter vessels to third parties. The existing fleet includes 12 ferries operating on LNG, two on bio diesel, one hybrid operating on LNG and marine gas oil, and five hybrid ferries which will be operated fully electrical. In addition to the existing fleet, Fjord1 has 18 hybrid electric ferries under construction. The ferries are manned by trained officers and crew, all of which are employed by Fjord1. Approximately 977 of the 1,191 employees (at the end of 2016) were employed on the ferries. The employees play a large role in providing a safe, efficient and pleasant service to the passengers and in the overall quality in Fjord1 s service offering. Ferries are built to carry cars, trucks and passengers in a safe and efficient manner, and are adapted to the types of service that they are to provide. On large and densely trafficked crossings, ferries with large capacity are employed, while on smaller and less densely trafficked crossings, it will be more efficient to employ smaller ferries, however, always taking into account the requirements of the road authorities in respect of time table and size of vessels. The average size of Fjord1 s sailing fleet is 84 PCEs, but this ranges from the largest 242 PCE ferry in the fleet serving Boknafjord near Stavanger, to the smallest 11 PCE ferry serving a scarcely populated western Norwegian island. Generally, a ferry is deemed to have an operational life time of 30 years, but older vessels may be modernized to satisfy the modern requirements, inter alia by reconstruction to hybrid technology. Being passenger vessels, ferries are subject to rigorous certification procedures, which also relate to the officers and crew on board, as well as the systems of the owner in respect of regulatory adherence, safety, technical standard, maintenance, and other factors. The operation is under the supervision of the Norwegian Maritime Authority (Sjøfartsdirektoratet). 4.6 Principal markets Introduction The core business of the Company is its ownership of shares in Fjord1. Fjord1 aims to provide high quality and low emission ferry services in the Norwegian market. The section below is intended to give an overview of the key features of this market and of the Company s key assumptions underlying its exposure to this market, through Fjord1. Ferries services are a critical part of Norwegian public transportation, crossing the fjords and connecting islands to the mainland. According to Company data, ferries in Norway transported 35 million passenger car equivalents (PCE) and 43.2 million passengers in 2016 (including drivers). The market consists of around 130 connections served by around 220 ferries. Most ferry connections are operated by the four 20

21 largest ferry companies in Norway; Fjord1 AS, Torghatten ASA, Norled AS and Boreal Transport Norge AS. According to Company data, demand for transportation by ferries has exhibited a fairly steady growth rate over time, growing from 30.8 million PCE transported in 2007 to 35.0 million PCE transported in The compound annual growth rate over the period was 1.5%. According to Management's estimates, in terms of passengers transported, the number has grown from 41.3 million in 2007 to 43.3 million in The compound annual growth rate over the period was 0.5%. Over the same period, the number of passenger per vehicle using ferry services has declined Competitive position of Fjord1 2 The Norwegian domestic ferry market has gone through comprehensive consolidation over the past 10 years. There are four major players remaining; Fjord1 AS, Torghatten ASA, Norled AS and Boreal Transport Norge AS. In terms of PCE transported, Fjord1 is the largest ferry company with 17.3 million PCE transported in Norled AS is the second largest with 9.4 million PCE transported, Torghatten ASA is the third largest with 7.2 million PCE transported, while Boreal Transport Norge AS is the fourth largest with 0.5 million PCE transported. In terms of connections, Torghatten ASA had the largest number with 34 connections in Norled AS had 31 connections, Fjord1 had 29 connections while Boreal Transport AS had 13 connections. In terms of market shares based on PCE transported in 2017, Fjord1 is the largest player with a market share of around 49%. Equally, Norled AS with a market share of 27%, Torghatten ASA with a market share of around 22%, Boreal Transport AS with a market share of around 2%, while other ferry service providers have a combined market share of around 1%. In general, Fjord1 and Norled AS together have more connections in the Western and Middle part of Norway while Torghatten ASA and Boreal Transport AS combined have more connections in the Northern part of Norway. 4.7 Litigation From time to time the Company and/or the Group may become engaged in litigation or regulatory proceedings incidental to their business. The Company is not involved in any governmental, legal or arbitration proceedings (including any such proceedings which are pending or threatened of which the Company is aware), as of the date of this Prospectus, or have been for the preceding 12 months, which may have, or have had in recent past, significant negative effects on the Company's financial position or profitability. 4.8 Further information For further information about the Company s and/or the Group s business, please refer to the Company s annual report for 2017 which is appended hereto as Appendix 2. 2 According to Management's estimates numbers as of August

22 5. FINANCIAL INFORMATION 5.1 Introduction Certain key financial information about the Company is set out in sections 5.3 below, pursuant to the Company s audited annual consolidated financial statements as of 31 December 2017 (as described further below). In addition, section 5.4 contains summarised key financial information from the unaudited unconsolidated Q interim report of the Company. The Company s audited annual consolidated financial statements as of 31 December 2017 and 2016, together with the auditor's reports for such financial statements, are attached as Appendix 2. The annual consolidated financial statements for the Company have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and the Norwegian Accounting Act. The Company s interim numbers are unconsolidated and prepared in accordance with NGAAP. The Company s unaudited Q3 interim report for 2018 is attached hereto as Appendix 3. Please find below a table detailing where the abovementioned financial information may be found. 3 Financial reports Q (YE) 2016 (YE) Havilafjord AS Appendix 3 Appendix 2 Appendix 2 Income statement Page 1 Page 2 Page 2 Balance Sheet Page 2 Page 4 Page 4 Accounting policies and notes N/A Page 7 Page 7 The Company s annual financial statements (both as appended and the key financial information thereof provided in section 5.3 below) have been audited by BDO AS, a member of Den norske Revisorforening, with company registration no and registered address Munkedamsveien 45A, 0250 Oslo, Norway (acting through its Ålesund branch with address Lerstadveien 517, 6018 Ålesund, Norway), as stated in their independent auditor s reports included therein. 3 Page numbering referring to page number in the relevant appended document. The Company is not required to prepare a cash flow statement, cf. the Norwegian Accounting Act. 22

23 5.2 Alternative performance measures To complement the key financial information presented in sections 5.3 below, the Company presents Alternative Performance Measures (APMs) according to the Directives of European Securities and Markets Authority (ESMA), being non-ifrs financial measures. Management uses such APMs in decision-taking and to evaluate the performance of the company. Below there are details of disclosures required by ESMA on definition, reconciliation and explanation of use for relevant APMs included in this Prospectus. For all APMs used in this Prospectus comparable figures for previous periods are shown, and all APMs are coherent meaning they are calculated using the same method as for previous periods. Alternative Performance Measure Definition Reconciliation Explanation of use EBITDA EBITDA is Earnings Before Interest, Tax, Depreciation and Amortisation, representing the operating profit/loss before deducting interest and taxes, amortisation and write-down of intangible assets and depreciation and write-down of tangible assets. EBITDA is used as a financial measurement in the Company s audited annual financial statements, and measures the net income with interest, taxes, depreciation and amortisation added back. No adjustments are made compared to IFRS. Management believes this measure enables an evaluation of the Group s operating profitability on a more variable cost basis as it excludes depreciation and amortisation expense related primarily to capital expenditures and acquisitions that occurred in the past, and it enables an evaluation of operating performance and ability to generate cash flow. EBIT EBIT is Earnings Before Interest, Tax, representing revenue less operating profit/loss, before deducting interest and taxes. EBIT is used as a financial measurement in the Company s audited annual financial statements, and measures the operating profit after depreciation and amortisation. No adjustments are made compared to IFRS. Management believes EBIT is a good measure for an evaluation of the Group s profitability and operating efficiency. 23

24 5.3 Havilafjord AS annual consolidated accounts (audited) Consolidated statement of financial position (NOK thousands) Deferred tax asset 18,327 21,328 Contracts 259, ,593 Property, plant and equipment 4,263,181 3,944,339 Investment in associates and joint ventures 408, ,709 Loan to related parties ,866 Other non-current assets 6,205 8,284 Total non-current assets 4,956,476 5,106,118 Inventory 16,508 14,690 Trade receivables 86,099 78,660 Other current receivables 63,012 35,888 Cash and cash equivalents 521, ,422 Total current assets 687, ,660 Total assets 5,643,753 5,821,778 Share capital Surplus capital ,410 Other paid-in capital ,650 Other equity 863, ,621 Non-controlling interests 1,132,467 3,881 Total equity 2,026,022 1,255,762 Non-current borrowings 1,687, ,000 Non-current derivatives 12,147 42,403 Post-employment benefits 23,671 14,605 Deferred tax liabilities 529, ,971 Other non-current liabilities 347, ,209 Total non-current liabilities 2,600,677 1,886,188 Current borrowings 130,285 1,910,511 Current derivatives 26,607 22,775 Trade payables 169, ,711 Tax payable 40,055 2,675 Public duties payable 93,896 90,269 Other current liabilities 556, ,888 Total current liabilities 1,017,054 2,679,828 Total liabilities 3,617,731 4,566,016 Total equity and liabilities 5,643,753 5,821,778 24

25 5.3.2 Consolidated statement of comprehensive income (NOK thousands) Revenue 851, ,287 Other income 1,942, ,508 Total operating income 2,794, ,795 Cost of goods sold (433,547) (76,586) Personell expenses (946,354) (220,312) Other operating expenses (455,048) (114,733) Total operating expenses (1,834,949) (411,631) Share of profit/(loss) from associates 20, ,056 Gains/(losses) from purchase of associates 262,579 Gain from bargain purchase 296,953 EBITDA 979, ,751 Depreciation (568,387) (140,568) EBIT 411, ,184 Share of profit/(loss) from associates 42,963 28,752 Financial income 6, Interest cost (149,774) (44,854) Other financial items 18,135 30,250 Net financial items (82,075) 14,811 Profit before tax 329, ,995 Tax expense (33,705) (3,724) Profit for the period 295, ,270 Other comprehensive income Share of other comprehensive income from associates (3,059) 1,363 Actuarial gains/(losses) (4,745) 9,633 Other comprehensive income before tax (7,804) 10,996 Total comprehensive income 287, ,266 25

26 5.3.3 Consolidated statement of cash flows (NOK thousands) Profit/(loss) before tax 326, ,995 Adjustments: Depreciation 568, ,568 Net interest expense 102,486 44,191 Change in fair value of derivatives (26,424) (23,175) Gain from bargain purchase (296,953) Change in post-employment benefits 2,552 13,361 (Gain)/loss on disposals (4,713) (1,573) Share of (profit)/loss from associates (63,604) (411,387) Working capital adjustments: Trade receivables (7,439) (3,539) Inventory (1,818) (2,037) Trade payables 48,766 37,648 Other accruals 7,235 61,091 Cash flows from operating activities 954, ,189 Interest payments (109,110) (44,854) Interest income received 6, Paid taxes (2,675) 0 Cash flows from operating activities 849, ,998 Cash flows from investing activities Purchase of property, plant and equipment (738,174) (159,732) Purchase of shares less cash received in business combination (402,160) 191,102 Received dividend from associate 25,503 24,404 Proceeds from loans to group companies 262,220 0 Loans to group companies 0 (262,866) Proceeds from disposals 103,566 3,309 Proceeds from non-current receivables (178) 0 Net cash flows usedin investing activities (749,223) (203,783) Cash flows from financing activities Proceeds from borrowings 985, ,000 Repayment of borrowings 1,351,603 0 Proceeds from reduced ownership in Fjord1 ASA (1,633,027) (53,479) Dividends (869,000) 0 Net cash flow from financing activities (165,174) 563,521 Net change in cash and cash equivalents (64,765) 566,736 Cash and cash equivalents at the beginning of the period 586,422 19,686 Cash and cash equivalents at the end of the period 521, ,422 26

27 5.4 Havilafjord AS interim figures (unaudited and unconsolidated) INCOME STATEMENT NOK '000 YTD Q3 18 YTD Q3 17 Other operating expenses (143) (1,416) Income from subsidiaries and other group entities 139, ,500 Other financial income 0 709,350 Other interest expenses (20,113) (21,438) Other financial expenses (13,494) (1,300) Net financial income and expenses 105, ,111 Profit before tax 105, ,695 Income tax expense 0 0 Profit for the period 105, ,695 BALANCE SHEET NOK ' Deferred tax asset 24,333 19,592 Investment in subsidiaries 681, ,980 Loans to group companies 135, ,092 Total non-current financial assets 817,676 1,068,072 Total non-current assets 842,009 1,087,664 Cash and cash equivalents 385, ,510 Total current assets 385, ,510 Total assets 1,227,764 1,253,174 Share capital Share premium reserve Other equity 105, ,658 Total equity 105, ,268 Bond loan 750,000 0 Other non-current liabilities 370, ,730 Total non-current liabilities 1,120, ,730 Trade payables 1,720 3,176 Public duties payable 2 0 Total current liabilities 1,722 3,176 Total liabilities 1,122, ,906 Total equity and liabilities 1,227,764 1,253,174 27

28 5.5 Lack of material adverse changes There have been no material adverse changes in the Company s financial or trading position since the date of the last published audited financial statements, being 31 December 2017, or the last published interim report as of 30 September 2018, nor have there been material adverse changes in the prospects of the Company since the date of its last published audited financial statements, being 31 December 2017, or the last published interim report as of 30 September 2018, that are relevant to the evaluation of the Company s solvency. There are no significant known trends that are likely to have a material adverse effect on the Company s financial or trading position or prospects within the current financial year for the Company. 5.6 Investments Historical investments not covered by the latest annual accounts or interim reports The Company has not made any new investments after the release of the 2018 Q3 report as of 30 September Principal future investments The Company has no principal investments that are in process or any future principal investments on which its management bodies have already made firm commitments, other than through Fjord1 as disclosed below. As of 5 November 2018 Fjord1 had 18 hybrid electric ferries under construction, with ten ferries being built at Havyard Ship Technology in Norway, three at Sefine Shipyard in Turkey, two at Cemre Shipyard in Turkey, two at Tersan Shipyard in Turkey and one at Fjellstrand Shipyard in Norway. As of 5 November 2018 the estimated delivery dates and PCE capacity of the newbuild ferries were as set out below. Payment is divided into a pre-payment portion and the remainder on delivery, varying between a 20/80 and 30/70 split, with the outstanding amount to be paid in respect of the newbuilds being approx. TNOK (source: Fjord1 Q report). Newbuild Delivery PCE TBN 1 Q TBN 2 Q TBN 3 Q TBN 4 Q TBN 5 Q TBN 6 Q TBN 7 Q TBN 8 Q TBN 9 Q TBN 10 Q TBN 11 Q TBN 12 Q TBN 13 Q TBN 14 Q TBN 15 Q TBN 16 Q TBN 17 Q TBN 18 Q Fjord1 has an outstanding bond (FJORD01) in an outstanding amount of MNOK 1,000 (with a MNOK 1,500 tap issue limit) and a fully committed bank facility in the amount of MNOK 4,458, which in combination with the operating profits of Fjord1 in the coming years is estimated by management to fully fund the investments in new ferries. 28

29 6. THE BONDS 6.1 The terms and details of the Bonds Below is an overview of the key terms and details of the Bonds. The full terms and conditions for the Bonds (the "Bond Terms") is included in Appendix 1 to this Prospectus. Capitalised terms and expressions used in this section 5.1 shall have the meaning given to them herein. ISIN NO Securities type Issuer Security Type Bond Trustee Managers Currency Maximum Loan Amount Initial Loan Amount Purpose of the Bond Issue Reference rate Bond issue with floating rate. Havilafjord AS (the Company) Bond issue with floating rate The bondholders are represented by Nordic Trustee AS (formerly known as Nordic Trustee ASA), P.O. Box 1470 Vika, N-0116 Oslo, Norway. For further information on the Bond Trustee's rights and power to represent the Bondholders, please refer to Clause 16 in the Bond Terms. Fearnley Securities AS, Grev Wedels Plass 9, NO-0107 Oslo, Norway; and SpareBank 1 Markets AS, Olav Vs gate 5, NO-0114 Oslo, Norway. NOK NOK 1,000,000,000. NOK 750,000,000. The Initial Loan Amount (net of fees and legal cost of the Managers and the Bond Trustee and any other cost and expenses incurred in connection with the Bond Issue) shall exclusively be employed for (i) repayment of Existing Debt of approximately NOK 370,000,000, and (ii) general corporate purposes, including dividends. 3 month NIBOR. NIBOR means the interest rate which (a) is published on Oslo Børs NIBOR Page (or through another system or on another website replacing or (as the case may be) agreed, between Norske Finansielle Referanser (NoRe) (or any other Person which takes over the administration of NIBOR) and the NIBOR calculation agent), to replace the said system or website respectively) approximately noon (on days on which the Norwegian money market has shorter opening hours (New Year's Eve and the Wednesday before Maundy Thursday), the data published by the banks at 10 a.m. shall be used), or, if such publication does not exist, (b) at that time corresponds to (i) the average of the quoted lending rates of Norwegian commercial banks on the interbank market in Oslo or, if only one or no such quotes are provided, (ii) the assessment of the Bond Trustee of the interest rate, which in the Bond Trustee's determination is equal to what is offered by Norwegian commercial banks, for the applicable period in the Oslo interbank market. If any such rate is below zero, NIBOR will be deemed to be zero. Information on the historical and further development of the reference rate may be found at the NIBOR calculation agent's (Oslo Børs) website: 29

30 Margin 5.00% ticker=nibor3m Interest Rate Yield Floating rate of 3 month NIBOR % per annum. As the Bonds have a floating interest rate, the yield paid out to the Bondholders fluctuates. Consequently it is not possible to provide an exact figure for the annual return for Bondholders. The relevant interest payable amount shall be calculated based on a period from, and including, the Issue Date to, but excluding, the next following applicable Interest Payment Date, and thereafter from and including, that Interest Payment Date to, but excluding, the next following applicable Interest Payment Date. The day count fraction in respect of the calculation of the payable interest amount shall be Actual/360, which means that the number of days in the calculation period in which payment being made divided by 360 ( Interest Rate Day Count Fraction ). The interest rate on the Bonds is set/reset on each interest quotation date by the Bond Trustee, being two Business Days before the beginning of the next Interest Period, commencing at the first date of the next Interest Period. When the interest rate is set for the first time and on subsequent interest rate resets, the interest rate applicable up to the next Interest Period, and the actual number of calendar days for that period, shall immediately be notified to the Bondholders, the Issuer, the Paying Agent and Oslo Børs. The payable interest amount per Bond for a relevant Interest Period shall be calculated as per the following formula: Interest amount = (Nominal Amount Interest Rate Interest Rate Day Count Fraction) Example calculation for a 90 days Interest Period if applicable Interest Rate equals 5.00 per cent.: Issue Date 19 June Interest amount = (NOK 500, ) = NOK 6, Final Maturity Date Amortisation First Interest Payment Date Last Interest Payment Date Interest Payments 19 June The Bonds shall be repaid in full on the Final Maturity Date at a price of % of the Nominal Amount (par value). 19 September Final Maturity Date. Interest on the Bonds will commence to accrue on the Issue Date and shall fall due on each Interest Payment Date for the corresponding preceding Interest Period and, with respect to accrued interest on the principal amount then due and payable, on 30

31 each Repayment Date, and on the Final Maturity Date. Day-count fraction for the coupon is actual/360, business day convention is "modified following" and Business Day as defined in section 9 in this Prospectus. Interest Period Subject to adjustment in accordance with the Business Day Convention, the period between 19 June, 19 September, 19 December and 19 March each year, provided however that an Interest Period shall not extend beyond the Final Maturity Date. Interest Payment Date The last day of each Interest Period, i.e. 19 June, 19 September, 19 December and 19 March the first Interest Payment Date being 19 September 2018 and the last Interest Payment Date being the Maturity Date. Issue Price 100% of par value. Nominal Amount The Bonds have a nominal (par) value of NOK 500,000. Status of the Bonds Call Options (American) The Bonds shall constitute senior debt obligations of the Issuer and shall be secured on a first-priority basis by the Security. The Bonds shall rank at least pari passu with all other obligations of the Issuer (save for such claims which are preferred by bankruptcy, insolvency, liquidation or other similar laws of general application) and shall rank ahead of subordinated debt. The Company may redeem the Bonds (in whole or in part) at any time from and including: (i) (ii) (iii) (iv) the First Call Date to, but not including, the Interest Payment Date falling 48 months after the Settlement Date at a price equal to 103.5% of the Nominal Amount; the Interest Payment Day falling 48 months after the Settlement Date to, but not including, the Interest Payment Date falling 54 months after the Settlement Date at a price equal to % of the Nominal Amount; the Interest Payment Date falling 54 months after the Issue Date to, but not including the Final Maturity Date at a price equal to % of the Nominal Amount; and if refinanced with a bond issue, the date falling 2 months prior to the Final Maturity Date to, but not including the Final Maturity Date at a price equal to 100% of the Nominal Amount. In addition, the Issuer shall pay accrued and unpaid interest on redeemed Bonds. For the avoidance of doubt, the redemption prices above shall be determined based on the Call Option Repayment Date and not based on the date the call option was exercised (issue of call notice). If redemptions of Bonds is made in part, such redemption shall be applied pro rata between the Bondholders in accordance with the procedures of the VPS, and any accrued and unpaid interest on the Bonds being redeemed shall be paid together with principal on the date of such early redemption. Security Written notice must be given at least ten (10) business days prior to the proposed repayment date for the call (the Call Option Repayment Date ). All amounts outstanding under the Finance Documents, including but not limited to principal, premium, interest, default interest, fees and expenses, shall (subject to 31

32 any mandatory limitations under applicable law) at all times be secured by the following security (the "Security"): Pre-Settlement Security: (i) a first priority pledge over the Escrow Account (the Escrow Account Pledge ); Pre-Disbursement Security: (ii) (iii) (iv) a Norwegian law first priority pledge over 50.1% of the voting shares issued by Fjord1 (currently 50,100,000) held by the Issuer (constituting the Collateral Shares ) Norwegian law first priority pledges over all bank accounts held by the Issuer, which shall be unblocked except upon the occurrence of an Event of Default which is continuing and following the Bond Trustee's written notice to the relevant account bank (the "Account Pledges"), and a Norwegian law first priority pledge over the LTV Cure Escrow Account (the LTV Cure Escrow Account Pledge ). Financial Covenants The documents and agreements relating to the Security listed in items (i) through (iv) above shall collectively be referred to as the "Security Documents", and shall be made in favour of the Bond Trustee (on behalf of the Bondholders). The Pre- Settlement Security shall be established no later than the Settlement Date. The relevant Pre-Disbursement Security shall be established prior to (or as the case may be, in connection with) the release of funds from the Initial Issue Amount from the Escrow Account. The Issuer undertakes to comply with the following financial covenants during the term of the Bonds: Loan to Value Ratio: The Issuer shall ensure that the Loan to Value Ratio does not exceed 70%. Minimum Liquidity: The Issuer shall maintain Liquidity in an amount of no less than the estimated next 12 months of interest payments under the Bonds. The Issuer undertakes to comply with the above Financial Covenant at all times, such compliance to be certified by the Issuer with each annual financial statement and quarterly financial statement on the respective Quarter Date. General Undertakings During the term of the Bonds, the Issuer shall (unless the Bond Trustee or the Bondholders meeting (as the case may be) in writing has agreed to otherwise) comply with the following general covenants and undertakings at any time: a) Authorizations: The Issuer shall in all material respects obtain, maintain and comply with the terms of any authorization, approval, license and consent required for the conduct of its business as carried out from time to time if a failure to do so would have Material Adverse Effect. b) Distributions: The Issuer shall not make any Distribution other than a Permitted Distribution. c) Mergers and de-mergers: The Issuer shall not carry out any (i) merger or other business combination or corporate reorganization 32

33 involving the consolidation of the assets and obligations of the Issuer with any other person or party; or (ii) any demerger or other corporate reorganisation having the same or equivalent effect as a demerger involving the Issuer; if such merger, de-merger, combination or reorganisation would have a Material Adverse Effect. d) Continuation of business: The Issuer shall procure that no material change is made to the general nature of the business from that carried on at the date of the Bond Terms, and/or as set out in the Bond Terms. e) Corporate status: The Issuer shall not change its type of organization (other than to an ASA) or jurisdiction of organization. f) Arm s length transactions: The Issuer shall not enter into any transaction with any person except on arm s length terms and for fair market value. g) Investments: The Issuer shall remain a single purpose vehicle and not acquire any company, shares, securities, business or undertaking (or any interest in any of them) or make any other investments or capital expenditures, other than solely related to the ownership of shares issued by Fjord1. h) Ownership of Fjord1: The Issuer shall remain the legal and beneficial owner of at least 50.1% of the at all times outstanding voting shares of Fjord1 and shall not sell or dispose (or agree to any sale or disposal) of any shares of Fjord1 that are pledged as Security for the Bond Issue, or agree to any other transaction having a similar effect thereto, provided however that it can carry out a sale of all (but not some only) of the Collateral Shares subject to the Mandatory Prepayment provisions being complied with. i) Maintenance of Security: As long as any amount remains outstanding under the Bond Issue, the Issuer shall ensure that each Security Document shall remain duly created, enforceable and perfected on first priority. j) Compliance with laws: The Issuer shall comply in all material respects with laws and regulations it may be subject to from time to time k) Disposal of assets/business: The Issuer shall not sell or otherwise dispose of all or a substantial part of its assets or operations save for a Mandatory Prepayment Event. l) Financial indebtedness restriction: The Issuer shall not to incur, create or permit to subsist any Financial Indebtedness other than Permitted Financial Indebtedness. m) Negative pledge: The Issuer shall not to create, permit to subsist or allow to exist any mortgage, pledge, lien or any other encumbrance over any of its present or future respective assets or its revenues, other than the encumbrances granted to secure any of the following: (i) granted in relation to Permitted Financial Indebtedness; and (ii) any lien arising by operation of law. n) Financial support restriction: The Issuer shall not grant any loans, guarantees or other financial assistance (including, but not limited to granting of security) to or for the benefit of any party other than any Financial Support provided in 33

34 relation to Permitted Financial Indebtedness. o) Reporting: The Issuer shall of its own accord make management and financial reports (quarterly, written in English) available on its web pages, Stamdata and/or Newsweb no later than 120 days after the end of the financial year and no later than 60 days after the end of the relevant Quarter Date (each a Reporting Date ). Such reports shall be prepared in accordance with the applicable Accounting Principles, and include a profit and loss account, balance sheet, management or board report and cash flow statement. Permitted Distribution Means: (i) (ii) a Distribution by the Issuer provided that the Incurrence Test is met (tested pro forma after such Distribution) and provided always that no Event of Default is continuing or would result from such Distribution. a Distribution of an amount equal to up to 100% of new equity or Shareholder Loans injected into the Issuer after the date of the Bond Terms (unless already repaid as a Distribution) and provided always that no Event of Default is continuing or would result from such Distribution. Permitted Financial Indebtedness Means (always subject to compliance with the relevant Financial Covenants): (i) (ii) (iii) (iv) this Bond Issue and the Finance Documents (including any Tap Issue); the Existing Debt, provided that (a) the Seller's Credit is repaid (and the Bank Guarantee and any related security, including the Cash Deposit, if applicable, is released in full) no later than the date falling three months after the Settlement Date and (b) pending such repayment and release, the security for the Bank Guarantee is released in full and replaced with the Cash Deposit no later than through or in connection with the first release of funds from the Escrow Account in accordance with the Closing Procedure; any Shareholder Loans; and any Financial Indebtedness arising as a result of a contemplated refinancing of the Bonds in full provided that (i) a call notice has been served on the Bonds (in full) and (ii) net proceeds from the issuance of such debt is held in escrow until full repayment of the Bonds. Permitted Financial Indebtedness Means (always subject to compliance with the relevant Financial Covenants): (i) (ii) (iii) (iv) this Bond Issue and the Finance Documents (including any Tap Issue); the Existing Debt, provided that (a) the Seller's Credit is repaid (and the Bank Guarantee and any related security, including the Cash Deposit, if applicable, is released in full) no later than the date falling three months after the Settlement Date and (b) pending such repayment and release, the security for the Bank Guarantee is released in full and replaced with the Cash Deposit no later than through or in connection with the first release of funds from the Escrow Account in accordance with the Closing Procedure; any Shareholder Loans; and any Financial Indebtedness arising as a result of a contemplated 34

35 refinancing of the Bonds in full provided that (i) a call notice has been served on the Bonds (in full) and (ii) net proceeds from the issuance of such debt is held in escrow until full repayment of the Bonds. Permitted Security Tap Issue Means: (i) (ii) (iii) any security under the Finance Documents; (a) until the initial release of funds from the Escrow Account, any security provided under the Existing Debt and (b) in the period following release of funds from the Escrow Account and until the date falling three months after Settlement Date, the Cash Deposit; and created by customary escrow arrangements for Financial Indebtedness described in (iv) of Permitted Financial Indebtedness. The Issuer may on one or more occasions issue additional Bonds under the Bond Issue until the aggregate amount equal to the Maximum Issue Amount (each such issue a Tap Issue ) provided that the Incurrence Test is met and no Event of Default is continuing. For Tap Issues not falling on an Interest Payment Day, accrued interest will be calculated using standard market practice in the secondary bond market. Any additional Bonds issued under a Tap Issue shall be subject to the terms of the Finance Documents and rank pari passu with previous Bonds issued. The additional Bonds may be issued at a discount (but no lower than 98% of par value) or at a premium relative to the Issue Price for the Initial Issue Amount. Incurrence Test Means that the Loan to Value Ratio does not exceed 50.0%. The calculation of the Loan to Value Ratio shall be made as per a testing date determined by the Issuer, falling no earlier than the last day of the period covered by the most recent Financial Report delivered to the Trustee prior to the event relevant for the application of the Incurrence Test. (i) For any Tap Issue: The Loan to Value Ratio shall be measured on the relevant testing date, and then so that for the purposes of calculating the Outstanding Bond Amount, the full commitment of any Tap Issue in respect of which the Incurrence Test is applied shall be taken into account. (ii) For any Distributions: The Loan to Value Ratio shall be measured on the relevant testing date, and then so that for the purposes of calculating the Liquidity, the amount of the contemplated Distribution shall be deducted. Information Undertakings The Issuer shall of its own accord make management and financial reports (quarterly, written in English) available on its web pages, Stamdata and/or Newsweb no later than 120 days after the end of the financial year and no later than 60 days after the end of the relevant Quarter Date (each a Reporting Date ). Such reports shall be prepared in accordance with the applicable Accounting Principles, and include a profit and loss account, balance sheet, management or board report and cash flow statement. Change of Control Event Means the occurrence of an event or a series of events whereby a person or group of persons acting in concert, save for the Parent, gaining Decisive Influence over the Issuer: Put Option Event Means a Change of Control Event or a Listing Failure Event. 35

36 Listing Failure Event Means that: (i) the Bonds have not been admitted to listing on the Oslo Stock Exchange within 6 months following the Issue Date, or (ii) in the case of a successful admission to listing, that a period of 6 months has elapsed since the Bonds ceased to be admitted to listing on the Oslo Stock Exchange. Put Option Issuer's ownership of Bonds Governing law and jurisdiction Taxation Registration Paying Agent Market making Transfer restrictions Limitation of claims Upon the occurrence of a Put Option Event, each Bondholder will have a right (Put Option) to require that the Issuer purchases all or some of the Bonds held by that Bondholder at a price equal to 101% of the Nominal Amount, plus accrued and unpaid interest, during a period of 30 calendar days following the notice of a Put Option Event. The Put Option repayment date will be the fifth Business Day after the end of the 30 calendar days exercise period. If Bonds representing more than 90 per cent. of the Outstanding Bonds have been repurchased due to the Put Option, the Issuer is entitled to repurchase all the remaining Outstanding Bonds at the price stated in above by notifying the remaining Bondholders of its intention to do so no later than 20 calendar days after the Put Option Repayment Date. Such prepayment may occur at the earliest on the 15th calendar day following the date of such notice. The Issuer has the right to acquire and own the Bonds. Such Bonds may at the Issuer s discretion be retained by the Issuer, sold and discharged against the remaining Bonds. Norwegian for the Bond Terms, Norwegian or local law as applicable for the Security Documents. The Issuer shall pay any stamp duty and other public fees in connection with the issuance of the Bonds, but not in respect of trading in the secondary market, and shall deduct at source any applicable withholding tax payable pursuant to law. Standard gross-up obligation to apply. The Bonds are registered electronically with the Norwegian Central Securities Depository ("VPS"), being Verdipapirsentralen ASA, Fred. Olsens gate 1, 0051 Oslo, Norway. Principal and interest accrued will be credited the Bondholders through VPS. Sparebank 1 SMN No market-maker agreement has been made for this Bond Issue. Bondholders located in the United States will not be permitted to transfer the Bonds except (a) subject to an effective registration statement under the Securities Act, (b) to a person that the Bondholder reasonably believes is a QIB within the meaning of Rule 144A that is purchasing for its own account, or the account of another QIB, to whom notice is given that the resale, pledge or other transfer may be made in reliance on Rule 144A, (c) outside the United States in accordance with Regulation S under the Securities Act or (d) pursuant to an exemption from registration under the Securities Act provided by Rule 144 thereunder (if available). All claims under the Bond Terms for payment, including interest and principal, will be subject to the legislation regarding time-bar provisions of Norway (Nw. foreldelsesloven), i.e. 3 years for interest payments and 10 years for principal. 36

37 Business Day Convention Bondholders Meeting Means that if the last day of any Interest Period originally falls on a day that is not a Business Day, the Interest Period will be extended to include the first following Business Day unless that day falls in the next calendar month, in which case the Interest Period will be shortened to the first preceding Business Day (Modified Following). The Bondholders Meeting represents the supreme authority of the Bondholders community in all matters relating to the Bonds, and has the power to make all decisions altering the terms and conditions of the Bonds, including, but not limited to, any reduction of principal or interest and any conversion of the Bonds into other capital classes. The Bondholders' Meeting may not adopt resolutions which will give certain Bondholders an unreasonable advantage at the expense of other Bondholders. Subject to the power of the Bond Trustee to take certain action as set out in Clause 16.1 in the Bond Terms (Power to represent the Bondholders), if a resolution by, or an approval of, the Bondholders is required, such resolution may be passed at a Bondholders' Meeting. Resolutions passed at any Bondholders' Meeting will be binding upon all Bondholders. At least 50 per cent. of the Voting Bonds (as defined in the Bond Terms) must be represented at a Bondholders' Meeting for a quorum to be present. Resolutions will be passed by simple majority of the Voting Bonds represented at the Bondholders' Meeting, however so that a majority of at least 2/3 of the Voting Bonds represented at the Bondholders' Meeting is required for approval of any waiver or amendment of any provisions of these Bond Terms, including a change of Issuer and change of Bond Trustee. For more details on the Bondholders' rights and representation pursuant to the Bonds, as well as information about the procedures for arranging a Bondholders' Meeting and voting rules, please see clause 15 of the Bond Terms, appended to this Prospectus as Appendix 1. Corporate approval The issuance of the Bonds was unanimously resolved by the Issuer s Board of Directors on 13 June

38 6.2 Listing The Bonds were on 19 December 2018 resolved admitted to listing on Oslo Børs, with first day of trading immediately following approval of this Prospectus by the FSA. Ticker code is HAVFJR Expenses and use of proceeds Expenses related to the issuance and listing of the Bonds The Company shall cover all expenses in connection with the Bond Issues such as preparation of the Bond Terms, review and approval of the Prospectus from the FSA, listing of the Bonds on Oslo Børs and registration and administration of the loan in the VPS in the accordance with agreements between the Company and the VPS. The fees payable for listing on Oslo Børs amount to approximately NOK 12,000 and the fees payable for review and approval from the FSA amount to NOK 75,000. The total costs incurred by the Company in connection with the issuance and listing of the Bonds are expected to amount to approximately NOK 15,100,000, which includes expenses and fees to financial and legal advisors ( Transaction Costs ) Use of proceeds The estimated aggregated net amount of the proceeds from the Initial Bond Issue is approximately NOK 734,900,000. The expenses and proceeds will be used by priority as described set out below (terms as defined in section 5.1 of this Prospectus): Purpose: Amount (NOK) (i) The full discharge of the Existing Debt: 370,000,000 (ii) Finance general corporate purposes of the Group (including Transaction Costs): 380,000,000 Total: 750,000,000 The proceeds from the issuance of any additional bonds under the Bond Issue (tap issue) will be used for the general corporate purposes of the Company. 6.4 Transferability and taxation of the Bonds The Bonds are freely tradable. Bondholders may however be subject to purchase or transfer restrictions under local laws to which a Bondholder may be subject (due e.g. to its nationality, its residency, its registered address, its place(s) for doing business). The Company is responsible for withholding any withholding tax imposed by applicable law on any payments to be made by it in relation to the Finance Documents. The Company shall, if any tax is withheld in respect of the Bonds under the Finance Documents: (i) (ii) gross up the amount of the payment due from it up to such amount which is necessary to ensure that the Bondholders or the Bond Trustee, as the case may be, receive a net amount which is (after making the required withholding) equal to the payment which would have been received if no withholding had been required; and at the request of the Bond Trustee, deliver to the Bond Trustee evidence that the required tax deduction or withholding has been made. 38

39 Any public fees levied on the trade of Bonds in the secondary market shall however be paid by the Bondholders, unless otherwise provided by law or regulation, and the Issuer shall not be responsible for reimbursing any such fees. 39

40 7. BOARD AND MANAGEMENT 7.1 Board of Directors Overview The Company s board of directors consists of members of the Sævik family: Name Per Rolf Sævik Vegard Sævik Njål Sævik Hege Sævik Rabben Position Chairman Board Member Board Member Board Member The Company s business address serves as c/o address in relation to the board of directors. Fjord1 s board of directors currently consists of the following persons: Name Vegard Sævik Per Rolf Sævik Siri Beate Hatlen Frederik Wilhelm Mohn Siri Hatland Position Chairman Board Member Board Member Board Member Board Member Fjord1 s business address serves as c/o address in relation to the board of directors Information on the members of the board of directors of the Company Per Rolf Sævik Chairman Long experience in the maritime industries and has held various board positions. Member of the Norwegian Parliament from 1989 to Vegard Sævik Member of the board Sævik is also Chairman of the board of Havyard Group ASA and is employed with Havila Holding AS. Mr. Sævik has held several board positions in various external and internal companies. Njål Sævik Member of the board Mr. Sævik is a trained ship master and was educated in administration and management at Ålesund Maritime College, graduating in He has been the Chief Executive Officer of Havila Shipping since the Company was established in Mr. Sævik holds several board positions in various external and internal companies. Hege Sævik Rabben Member of the board Hege Sævik Rabben (born 1971) is now working for Havila AS. She is a trained children's nurse and has worked in a day care centre as a children's nurse. She is a member of several boards in the Havila Group. Ms. Sævik Rabben holds several board positions in various external and internal companies. 40

41 7.1.3 Information on the members of the Board of Directors of Fjord1 Vegard Sævik Chairman Member of the board since 2011 and Chairman of the board since Sævik is also Chairman of the board of Havyard Group ASA and is employed with Havila Holding AS. Has held several board positions in various external and internal companies. Per Sævik Member of the board Observer from 2011 and member of the board since Managing Director of Havila Holding AS and Havilafjord AS. Long experience in the maritime industries and has held various board positions. Member of the Norwegian Parliament from 1989 to Siri Beate Hatlen Member of the board Seasoned business executive and a board member with more than 30 years' experience. Has held executive positions in Statkraft AS, Oslo Universitetssykehus HF and various offshore companies. Board positions in, among others, Entra ASA, Sevan Marine ASA, DNT, Unibuss AS, PGS AS, NTNU and Smedvig AS. Master of Science from NTNU and MBA from INSEAD. Frederik Wilhelm Mohn Member of the board Member of the board since Independent Director at Transocean Ltd., Director at DOF ASA and Chairman and Managing Director of the investment company Perestroika AS. Previously Chairman at Songa Offshore and extensive industrial experience from maritime sectors. Siri Hatland Member of the board Member of the board since May Atle Olav Trollebø Member of the board Geir Offerdal Member of the board Member of the board since 2008 and representative of the employees. Employed as ship master in Fjord1 with 20 years' experience. Member of the board since July 2017 and representative of the employees. Employed as seaman in Fjord1. 41

42 7.2 Management Information on the members of the management of the Company Per Sævik is the Chief Executive Officer of Havilafjord AS. Other managerial services, including accounting and financial reporting, are being in-sourced from Havila AS, being part of the wider Havila concern. The Company's business address serves as c/o address in relation to the management of the Company Information on the members of the management of Fjord1 The table below sets forth the current executive management of Fjord1: Name Dagfinn Neteland Anne-Mari Sundal Bøe Andrè Høyset Nils Kristian Berge Deon Mortensen Position CEO CFO COO PD TD and HSE Fjord1 s business address serves as c/o address in relation to the management of Fjord1. The executive management consists of the following persons: Dagfinn Neteland Chief Executive Officer Anne-Mari Sundal Bøe Chief Financial Officer CEO of Fjord1 in the period and since Previous positions include CEO of Tide ASA, CEO of HSD ASA, CEO of Gjensidige Vest and Regional Manager of Nordea. CFO in Fjord1 since Previous experience as Group Chief Accountant in INC Invest AS and Senior Manager in PwC. Master in Business and Economics. Andrè Høyset Chief Operating Officer Over 20 years of experience from various positions at Fjord1, including Head of IT and Project Director. Master of Science in Information Technology. Nils Kristian Berge Project Director More than 30 years of experience from various positions within the maritime industries. Extensive national and international senior manager and top executive experience, previous employers include ASRY, Utkilen AS, Laurin Maritime AB, Odfjell SE and Kvaerner AS. Deon Mortensen Technical Director and HSE Experience from Fjord1 since Previous positions include Senior Vice President of Fjord1 Fylkesbaatane AS, Technical Director of STX Norway Florø and Project Manager of Odfjell SE. 42

43 7.3 Conflict of Interest etc. The Company is wholly controlled by the Sævik family, members of which also serves as directors and management. Other than that, there are no potential conflicts of interest between any duties to the Company of the members of the administrative, management of supervisory bodies, and their private interests and/or other duties. 7.4 Corporate governance The Board of Directors has the overall responsibility for the Company s control environment. The Board of Directors has established an audit committee consisting of the Board of Directors and Torill Haddal as independent member, being responsible for monitoring on an ongoing basis the internal control and risk management systems related to the financial reporting process. The Board of Directors approves the overall policies and procedures in key areas of financial reporting. The Company has implemented formalised processes for its internal and external financial reporting, and is in compliance with the Norwegian corporate governance Code of Practice as recommended by the Norwegian Corporate Governance Board (NCCB). The full Code of Practice may be downloaded at the following URL from NCCB: 43

44 8. ADDITIONAL INFORMATION 8.1 Involved persons The involved persons in the Issuer have no interest, nor conflicting interests that are material to the Bond Issue. Advisors: The Issuer has mandated the Managers, Fearnley Securities AS and SpareBank 1 Markets AS, as joint lead managers for the issuance of the Bonds. The Managers have acted as advisors to the Issuer in relation to the pricing of the Bonds. The Managers and/or any of their affiliated companies and/or officers, directors and employees may be a market maker or hold a position in any instrument or related instrument discussed in this Prospectus, and may perform or seek to perform financial advisory or banking services related to such instruments. The Managers corporate finance departments may act as manager or co-manager for this Issuer in private and/or public placement and/or resale not publicly available or commonly known. Statement from the Managers Fearnley Securities AS and SpareBank 1 Markets AS have assisted the Company in preparing the Prospectus. Neither Fearnley Securities AS nor SpareBank 1 Markets AS have separately verified the information contained herein. Accordingly, no representation, warranty or undertaking, express or implied, is made and the Managers expressively disclaim any legal or financial liability as to the accuracy or completeness of the information contained in this Prospectus or any other information supplied in connection with Bonds issued by Havilafjord AS or their distribution. The statements made in this paragraph are without prejudice to the responsibility of the Company. Each person receiving this Prospectus acknowledges that such person has not relied on the Managers or on any person affiliated with it in connection with its investigation of the accuracy of such information or its investment decision. Oslo (Norway), 10 January 2019 FEARNLEY SECURITIES AS SPAREBANK 1 MARKETS AS 44

45 8.2 Documents on display For twelve months from the date of this Prospectus, the following documents (or copies thereof) may be physically inspected at the principal office of the Company at Mjølstadnesvegen, 6092 Fosnavåg, Norway (telephone number ): The Company s articles of association; The Company s audited consolidated annual accounts for 2016 and 2017, including the auditor s reports therein; and The Company s unaudited Q1, Q2 and Q interim reports. 8.3 Statement regarding sources The Company confirms that when information in this Prospectus has been sourced from a third party it has been accurately reproduced and as far as the Company is aware and is able to ascertain from the information published by that third party, no facts have been omitted which would render the reproduced information inaccurate or misleading. Where information sourced from third parties has been presented, the source of such information has been identified. 45

46 9. DEFINITIONS AND GLOSSARY OF TERMS 9.1 Definitions In the Prospectus, the following terms and expressions have the meaning defined below: Board or Board of Directors... Bond Issue... Bonds... Bond Terms... Bond Trustee... Bondholders... Bondholders meeting... Business Day... Company... CSD... EBIT... EBITDA... EEA... EU... Finance Documents... Fjord1... Forward-looking statements... FSA... Group... Group Company... The Board of Directors of the Company The Company s issuance of FRN senior secured callable bonds in an initial amount of NOK 750,000,000 and in a maximum amount of NOK 1,000,000,000, with maturity in 2023 and ISIN NO The bonds issued under the Bond Issue The bond terms containing the final terms and conditions in respect of the Bonds Nordic Trustee AS Holders of the Bonds The supreme authority of the bondholders community in all matters relating to the Bonds Any day on which both the relevant CSD settlement system is open, and the relevant Bond currency settlement system is open Havilafjord AS The central securities depository in which the Bonds are registered, being Verdipapirsentralen ASA Earnings Before Interest and Taxes Earnings Before Interest, Taxes, Depreciation and Amortization European Economic Area European Union The finance documents in connection with the Bonds (as defined in the Bond Terms) Fjord1 ASA (org. no ), a company whose shares are listed on Oslo Børs under ticker "FJORD" and of which the Company at the date of the Bond Issue owns 51.5 per cent. Statements relating to, without limitation, projections and expectations regarding the Group s future financial position, business strategy, plans and objectives The Norwegian Financial Supervisory Authority The Company and its Subsidiaries Each company being part of the Group 46

47 Initial Bond Issue... The Company s initial issuance of Bonds under the Bond Issue in an amount of NOK 750,000,000 Issue Date... The date of issuance of the Bonds, being 19 June 2018 Listing... Management... Managers... Member States... NOK... Norwegian Securities Trading Act... Oslo Børs... p.a.... Listing of the Bonds on Oslo Børs The management of the Company Fearnley Securities AS and SpareBank 1 Markets AS as joint lead managers The member states of the EEA which have implemented the Prospectus Directive Norwegian kroner, the lawful currency of Norway Norwegian Act no. 75 of June 29, 2007 on securities trading The Oslo Stock Exchange Per annum Parent... Havila Holding AS (org no ) PCE... Prospectus... Prospectus Directive... Regulation S... Security Agent... Stamdata... Subsidiary... Term Sheet... U.S. Securities Act... VPS... Passenger car equivalents This prospectus, dated as stated herein Directive 2003/71/EC Regulation S under the U.S. Securities Act Nordic Trustee AS A company over which the Company has decisive influence The term sheet for the Bonds The United States Securities Act of 1933, as amended VPS Holding ASA (the Norwegian Central Securities Depository) Biskop Gunnerus gate 14 A, P.O. box 4, N Oslo, Norway 47

48 HAVILAFJORD AS Registered Office Havilafjord AS Mjølstadnesvegen 6092 Fosnavåg Managers Fearnley Securities AS Grev Wedels plass Oslo, Norway SpareBank 1 Markets AS Olav Vs gate Oslo, Norway 48

49 Appendix 1 Executíon versíon BOND TERMS FOR Havilafjord AS FRN senior secured NOK ,000 open bond issue 2018t2023 rsrn No %

50 Contents Clause Page 1. ) t INTERPRETATION...J,t4...I5 THE BONDHOLDERS ADMISSION TO LISTING...,...16 REGTSTRATION OF THE BONDS......,.16 CONDITIONS FOR DISBURSEMENT...16 REPRESENTATIONS AND WARRANTIES......I8 PAYMENTS IN RESPECT OF THE BONDS......,,21 INTEREST REDEMPTION AND REPURCHASE OF BONDS.,23 PURCHASE AND TRANSFER OF 8ONDS... )\ INFORMATION LINDERTAKINGS )6 GENERAL AND FINANCTAL UNDERTAKINGS... 7 EVENTS OF DEFAULT AND ACCELERATION OF THE BONDS...30 BONDHOLDERS' DECISIONS.33 THE BOND TRUSTEE...37 AMENDMENTS AND WAIVERS...,...,,.,,42 MISCELLANEOUS GOVERNING LAW AND JURISDICTION...45 SCHEDULE I COMPLIANCE CERTIFICATE SCHEDULE 2 RELEASE NOTICE - ESCROW ACCOUNT zl t qå

51 BOI\ID TERMS between ISSUER: BOND TRUSTEE: Havilafiord AS, a company existing under the laws of Norway with registration number 897 2ll 572 and LE[-code AFQBWBLXZ lt 47 ; and Nordic Trustee AS, a company existing under the laws of Norway with registration number and LEI-code 5493OOXAKTM2BMKIPT85. DATED: l8 June 2018 These Bond Terms shall remain in effect for so long as any Bonds remain outstanding. I 1.1 INTERPRETATION Definitions The following terms will have the following meanings: "AddÍtional Bonds" means Bonds issued under a Tap Issue. "Afïiliate" means, in relation to any person: (a) any person which is a Subsidiary of that person; (b) any person who has Decisive Influence over that person (directly or indirectly); and (c) any person which is a Subsidiary of an entity who has Decisive Influence (directly or indirectly) over that person. "Annual Financial Statements" means the audited unconsolidated and consolidated annual financial statements of the Issuer for any financial year, prepared in accordance with GAAP, such financial statements to include a profit and loss account, balance sheet, cash flow statement and report ofthe board of directors or management. "Attachment" means each of the attachments to these Bond Terms. "Btnk Accounts Pledge" means the pledge over all bank aocounts held by the Issuer, which shall be unblocked unless an Event of Default has occured and is continuing and notice thereofhas been served by the Seourity Agent to the relevant account bank. "Bond Terms" means these terms and conditions, including all Attachments which shall form an inægraæd part of these Bond Terms, in each case!s amended and/or supplemented from time to time. tl+t %

52 *Bond Trusteeo' means the company designated as such in the preamble ûo these Bond Terms, or any successor, acting for and on behalf of the Bondholders in accordance with these Bond Terms. 'obond Trustee Fee Agreemenf' means the agreement entered into between the Issuer and the Bond Trustee relating among other things to the fees to be paid by the lssuer to the Bond Trustee for its obligations relating to the Bonds. o'bondholder" means a person who is registered in the CSD as directly registered owner or nominee holder of a Bond, subject however to Clause 3.3 (Bondholders' rights\, "Bondholders' Meeting" means a meeting of Bondholders as set out in Clause 14 (Bondha lder s' Dec is ions). "Bonds" means the debt instruments issued by the Issuer pursuant to these Bond Terms, including any Additional Bonds. "Business Day" means a day on which both the relevant CSD settlement system is open, and the relevant Bond currency settlement system is open. "Business Day Convention" means that if the last day of any Interest Period originally falls on a day that is not a Business Day, the Interest Period will be extended to include the first following Business Day unless that day falls in the next calendar month, in which case the Interest Period will be shortened to the first preceding Business Day (Modifrcd Following). "Call Option" has the meaning given to it in Clause 10,2 (l/oluntary early redemption - Call Optíon). "Call Option Repayment l)ate" means the settlement date for the Call Option determined by the lssuer pursuant to Clause 10,2 (Voluntary early redemption - Call Option), or a date agreed upon between the Bond Trustee and the Issuer in connection with such redemption of Bonds. "Cash Deposito' means a cash deposit not exceeding NOK 385,000,000 that may be applied exclusively forthe discharge of the Seller's Credit, and the furtherterms of which shall be subject to the Bond Trustee's satisfaction. "Change of Control Event''means a person or group of persons acting in concart, other than the Parent, gaining Decisive Influence over the Issuer. "Closing Procedure" shall have the meaning ascribed to such term in Clause 6.1 (c). "Collatersl Shares" means no less than 50.1 per cent. of the voting shares issued by Fjordl and held and owned by the Issuer, at the date of these Bond Terms being 50,100,000 shares. "Collateral Shares Pledge" means the pledge over the Collateral Shares. "Compliance Certificate" means a statement substantially in the form as set out in Attachment t hereto. clcs W

53 "CSI)" means the central securities depository in which the Bonds are regístered, being Verdipapírsentralen ASA (VPS). "Cure Proceedg" means net cash proceeds from any shareholder of the Issuer in the form of new share capital or Shareholder Loan. "I)ecisive fnlluence" means a person having, as a result of an agreement or through the ownership of shares or interests in another person (directly or indirectly): (a) a majority of the voting rights in that other person; or (b) a right to elect or remove a majority of the members of the board of directors of that other person. "I)efault Notice" means a written notice to the Issuer as described in Clause 14.2 (Acceleratíon of the Bonds). "I)efault Repayment l)ate" means the settlement date set out by the Bond Trustee in a Default Notice requesting early redemption of the Bonds. "Distribution" means any payment of dividend on shares, repurchase of own shares, redemption of share capital, repayment of Shareholder l,oans or other restricted equity with repayment to shareholders; or any other similar distribution or transfers of value to the direct a rd indirect shareholders. "Escrolv Account" means an account in the name of the lssuer with a reputable Norwegian Bank pledged in favour of the Security Agent and blocked on fìrst priority as security for the Issuer's obligations under the Finance Documents. 'oescrow Account Pledge" means the pledge over the Escrow Account, where the bank operating the account has waived any set-offrights. "Event of l)efault" means any of the events or circumstances specified in Clause 14.1 (Events of Default). o'exchange" means Oslo Børs (the Oslo Stock Exchange). "Existing Debt" means the Seller's Credit and the Seller's Credit Guarantee. "Fintnce l)ocuments" means these Bond Terms, the Bond Trustee Fee Agreement, any Transaction Security Document, any Security Agent Agreement and any other document designated by the Issuer and the Bond Trustee as a Finance Document, "Financid Indebtedness" means any indebtedness for or in respect of: a) moneys borrowed; b) any amount raised by acceptance under any acceptance credit facility or dematerialized equivalent; sl e 3,r

54 c) d) e) Ð s) h) any amount raised pursuant to any note purchase facility or the issue ofbonds, notes, debentures, loan stock or any similar insffument; the amount of any liabilþ in respect of any lease or hire purchase oontract which would, in accordance with the GAAP, be treated as a finance or capital lease (meaning that the lease is capitalized as an asset and booked as a corresponding liabilþ in the balance sheet); receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis provided that the requirements for de-recognition under the GAAP are met); any amount raised under any other transaction (including any forward sale or purchase agreement) having the commercial effect of a borrowing or otherwise being classified as a borrowing under the GAAP; any derivative transaction entered into and, when calculating the value of any derivative transaction, only the marked to market value (or, if any actual amount is due as a result of the termination or close-out of that derivative transaction, that amount shall be taken into account); any counter-indemnity obligation in respect of a guarantee, bond, søndby or documentary letter of credit or any other instrument issued by a bank or financial institution in respect of an underlying liability of a person which is not a Group Company which liability would fall within one of the other paragraphs of this definition; i) any amount raised by the issue of redeemable shares which are redeemable (other than at the option of the Issuer) before the Maturity Date or are otherwise classified as borrowings under the GAAP; i) any amount of any liability under an advance or deferred purchase agreement, if (a) the primary reason behind entering into the agreement is to raise finance or (b) the agreement is in respect of the supply of assets or services and payment is due more than 120 calendar days after the date ofsupply; and k) without double-counting, the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (a) to O above. "F'inancial Reports" means the Annual Financial St tements and the Interim Accounts. "Financial Support" means any loansn guarantses, Security or other financial assistance (whether actual or contingent). *tr'irst Call l)ate" means the Interest Payment Date falling in June 2021 o'fjordl" means $ordl ASA (org. no ), a company whose shares are listed on Oslo Børs under ticker UFJORDU and of which the Issuer at the date of the Bond Terms owns 51.5 per cent. olqt %

55 "GAAP" means generally acæpted accounting practices and principles in the country in which the Issuer is incorporated including, if applicable, the International Financial Reporting Standards (IFRS) and guidelines and interpretations issued by the lntemational Accounting Standards Board (or any predecessor and successor thereof), in force from time to time, "Group" means the Issuer and its Subsidiaries from time to time. 'ogroup Company" means any person which is a member of the Group. "Incurrence Tesf' shall have the meaning ascribed to such term in Clause (Fínancial Covenants and Incurrence Test). "Initial Bond Issue" means the aggregate Nominal Amount of all Bonds issued on the Issue Date. "Initi l Disbursement" means the distribution of the net proceeds from the Initial Bond Issue to the Issuer in accordance with Clause 6 (Conditionsfor disbursement). "Initial Disbursement l)ate" means the date of the Initial Disbursement. "Initial Nominal Amounf' means the nominal amount of each Bond as set out in Clause 2.1 (Amount, denomination and ISIN of the Bonds). "Insolvent" means that a person: (a) (b) (c) is unable or admits inability to pay its debts as they fall due; suspends making payments on any of its debts generally; or is otherwise considered insolvent or bankrupt within the meaning of the relevant bankruptcy legislation of the jurisdiction which can be regarded as its center of main interest as such term is understood pursuant to Council Regulation (EC) no A on insolvency proceedings (as amended). "Interest Payment Date" means the last day of each Interest Period, the first Interest Payment Date being 19 September 2018 and the last Interest Payment Date being the Maturity Date. "Interest Period" means, subject to adjustment in accordance with the Business Day Convention, the period between 19 March, 19 June, 19 September and 19 December each year, provided however that an Interest Period shall not extend beyond the Maturþ Date. "Interest Rate" means the percentage rate per annum which is the aggregate of the Reference Rate for the relevant Interest Period plus the Margin. "Interest Quotation l)ay" means, in relation to any period for which lnterest Rate is to be determined, the day falling two (2) Business Days before the first day of the relevant Interest Period. ilqt?4

56 "Interim Accounts" means the unaudited unconsolidated and consolidated quarterly financial statements of the Issuer for the quarterly period ending on each 3l March, 30 June,30 September and 3l December in each year, prepared in accordance with GAAP, such financial statements to include a profït and loss account, balance shee! cash flow statement and repoft of the board of directors or management. "fsin" means International Securities ldentification Number, being the identification number ofthe Bonds. "Issue Date" means 19 June 'olssuer" means the company designated as such in the preamble to these Bond Terms. "fssuer's Bonds" means any Bonds which are owned by the Issuer or any Affiliate of the lssuer. "Liquidity" meanq at any date, the aggregate amount of cash and cash equivalents of the Issuer (unconsolidated) in each case reported in accordance with GAAP and to which the Issuer has free and unrestricted access. "Listing Failure Event" means: (a) that the Bonds have not been admitted to listing on an Exchange within 6 months following the Issue Daten or (b) in the case of a successful admission to listing, that a period of 6 months has elapsed since the Bonds ceased to be admitted to listing on an Exchange. "Loan to Value Cure" shall have the meaning ascribed to such term in Clause (Financial Covenants and Incurrence Test). "Loan to V lue Ratio" means the ratio of the Outstanding Bond Amount deducted Liquidity to the Market Value of the Collateral Shares. "Longstop l)âte" means the date falling 90 (ninety) days after the Issue Date, *LTV Cure Escrorü Account" means an account in the name of the Issuer with a reputable Norwegian bank pledged in favour of the Security Agent and blocked on first priority as securþ for the Issuer's obligations underthe Finance Documents. "LTV Cure Escrow Account Pledge" means the pledge over the LTV Escrow Account, where the bank operating the account has waived any set-off rights. "Managers" means Fearnley Securities AS and Sparebank I Markets AS. "Mandatory Prepayment Date" means the settlement date for redemption of Bonds pursuant to Clause I0.4 (Early redemptíon due to ø Mandatory Prepøymenl Event). "Mandatory Prepayment Evenf' means: al+a trr.

57 (a) a sale or disposal of the Collateral Shares; or (b) the shares issued by Fjordl ceases to be listed on the Exchange. "Margin" mgans 5.00 per cent. "Market Value of the Collateral Shtre n' means the market value of the Collateral Shares being determined by applying the volume weighted average share price (VWAP) of the Fjordl shares on the Exchange during the last twenty (20) trading days immediately preceding the testing date, "Material Adverse Effect" means a material adverse effect on: (a) the ability of the Issuer to perform and comply with its obligations under any of the Finance Documents; or (b) the validity or enforceability of any of the Finance Documents "Maturity I)ate" means I 9 June 2023, adjusted according to the Business Day Convention. "Maximum fssue Amount" shall have the meaning ascribed to such term in Clause 2.1 (Amotmt, denomination and ISIN of the Bonds). "Nominal Amount" means the Initial Nominal Amount (less the aggregate amount by which each Bond has been partially redeemed, if any) pursuant to Clause l0 (Redemption and repurchase of Bonds) or any other amount following a split of Bonds pursuant to Clause 16.2, paragraph (i). "Outstanding Bonds" means any Bonds not redeemed or otherwise disoharged. "Outgtanding Bond Amounf'means the Outstanding Bonds multiplied with the Nominal Amount. "Overdue Amounf' means any amount required to be paid by the Issuer under any of the Finance Documents but not made available to the Bondholders on the relevant Payment Date or otherwise not paid on its applicable due date. "Parent" means Havila Holding AS (org. na ), the sole shareholder of the Issuer. "Partial Payment" means a pâyment that is insuffrcient to discharge all amounts then due and payable under the Finance Documents. "Paying Agent" means the legal entþ appointed by the Issuer to act as its paying agent with respect to the Bonds in the CSD. '?ayment l)ate" means any Interest Payment Date or any Repayment Date. 'opermitted Distribution" means: slts Ø-

58 (a) a Dishibution by the Issuer provided that the Incurrence Test is met (tested pro forma after such Distribution); or (b) a Disûibution of an amount equal to up to 100 per cent. of new equity or Shareholder Loans injected into the Issuer after the date of these Bond Terms (unless already repaid as a Distribution), provided always that no Event of Default is continuing or would result from a Distibution pursuant to (a) or (b) above. "Permitted Financial Indebtednes$" means, subject always to compliance with Clause (a) (Financial Covenants and Incurrence Test): (a) any Financial Indebtedness incurred pursuant to the Finance Documents (including any Tap Issue); (b) the Existing Debt, provided that: (i) (ið the Seller's Credit is repaid (and the Seller's Credit Guarantee and any related security, including the Cash Deposit, if applicable, is released in full) no later than the date falling three months after the Issue Date; and pending such repayment and release, the security for the Seller's Credit Guarantee is released in full and replaced with the Cash Deposit no later than through or in connection with the Initial Disbursement in accordance with the Closing Procedure; (c) any ShareholderLoans; and (d) any Finanoial Indebtedness arising as a result of a contemplated refinancing of the Bonds in full provided that (i) the Issuer has served a call notice in respect of all Outstanding Bonds, in accordance with Clause 10.2 (c); and (ii) the net proceeds from the issuance of such Financial Indebtedness is held in escrow until the Bonds have been repaid in full. "Permitfed Security" means: (a) any Transaction Securþ, including cash collateral to secure obligations under the Finance Documents; (b) until the Initial Disbursement, any Securþ provided under the Existing Debt; (c) in the period from the Initial Disbursement Date and until the date falling three months after the Issue Date, the Cash Deposit; and (d) any Security created by customary escrorry arrangements for Financial Indebtedness desøibed in paragraph (d) of Permitted Financial Indebtedness. '?ut Option" shall have the meaning ascribed to such term in Clause 10.3 (Mandatory reparchase due to a Put Option Event). t}l4s?4

59 "Put Option Event" means a Listing Failure Event or a Change of Control Event. '?ut Option Repayment Dâte" means the settlement date for the Put Option Event pursuant to Clause 10.3 (Mandøtory repurchase due to a Put Option Event). "Reference Rnte" shall mean (a) NIBOR; (Norwegian Interbank Offered Rate) being the interest rate fixed for a period comparable to the relevant Interest Period on Oslo Børs' webpage at approximately (Oslo time) on the Interest Quotation Day or, on days on which Oslo Børs has shorter opening hours (New Year's Eve and the Wednesday before Maundy Thursday), the data published at approximately a.m. (Oslo time) on the Interest Quotation Day shall be used; (b) ifno screen rate is available for the relevant Interest Period; (Ð (ii) the linear interpolation between the two closest relevant interest periods, and with the same number of decimals, quoted under paragraph (a) above; or a rate for deposits in the Bond Currency for the relevant Interest Period as supplied to the Bond Trustee at its request quoted by a sufücient number of commercial banks reasonably selected by the Bond Trustee; or (c) if no quotation is available under paragraph (b), the interest rate which according to the reasonable assessment ofthe Bond Trustee and the Issuer best reflects the interest rate for deposits in the Bond Currency offered for the relevant Interest Period. In each case, if any such rate is below zero, the Reference Rate will be deemed to be zero. "Relevant Jurisdiction" means the country in which the Bonds are issued, being Norway. "Relevant Record Date" means the date on which a Bondholder's ownership of Bonds shall be recorded in the CSD as follows: (a) in relation to payments pursuant to these Bond Terms, the date designated as the Relevant Record Date in accordance with the rules of the CSD from time to time; (b) for the purpose of casting a vote in a Bondholders' Meeting, the date falling on the immediate preceding Business Day to the date of that Bondholders' Meeting being held, or another date as accepted by the Bond Trustee; and (c) for the purpose of casting a vote in a Written Resolution: (Ð the date falling three (3) Business Days after the Summons have been published; olt (ii) if the requisite majority in the opinion of the Bond Trustee has been reached prior to the date set out in paragraph (i) above, on the date falling on the immediate Business Day prior to the date on which the Bond Trustee declares that'the Written Resolution has been passed with the requisite majorþ. nlqt?t

60 "Repayment Date" means any Call Option Repayment Date, the Default Repayment Date, the Mandatory Prepayment Date, the Put Option Repayment Date, the Tax Event Repayment Date, the Longstop Date or the Maturity Date. "Secured Obligations" means all present and future obligations and liabilities of the Issuer under the Finance Doouments. "Secured Pa 'ties" means the Security Agent and the Bond Trustee on behalf of itself and the Bondholders. 'osecurities Trading Acf'means the Securities Trading Act of 2007 no.75 of the Relevant Jurisdiction. "Security" means a mortgage, charge, pledge, lien, security assignment or other security interest securing any obligation ofany person or any other agreement or arrangement having a similar effect. 'osecurity Agent" means the Bond Trustee or any successor Security Agent, acting for and on behalf of the Secured Parties in acoordance with any Security Agent Agreement or any other Finance Document. "Security Agent Agreement" means any agreement whereby the Security Agent is appointed to act as such in the interest of the Bond Trustee (on behalf of itself and the Bondholders). "Seller's Credit" means the approximately NOK 370,000,000 in sellor's credit provided by Sogn og Fjordane Fylkeskommune to the Issuer. "Seller's Credit Gunrantee" means the bank guarantee provided by Sparebanken Vest on behalf of the Issuer to Sogn og Fjordane Fylkeskommune as security for the Issuer's obligations under the Seller's Credit. "Shareholder Loân" means any loan provided by any shareholder to the Issuer, provided that such loan is made as a subordinated loan subject to a subordination agreement and loan agreement in form and substance satisfactory to the Bond Trustee, such agreements to reflect that any such Shareholder Loan (i) is unsecured and subordinated to the Bonds, (ii) is nonamortizing, (iii) matures after the Final Maturity Date, (iv) have no right of pre-payment before the Final Maturity Date (save for as provided in Clause (c)) and (v) is non-cash interest bearing (it being understood that interest may accn e and be added to the principal amount), provided that cash interest and principal payments may be made to the extent such payment is a Permitted Dishibution. "Subsidiary" means a company over which another company has Decisive Influence. "Summons" means the call for a Bondholders' Meeting or a Written Resolution as the case may be. "Tap fssue" shall have the meaning asøibed to such term in Clause 2.1 (Amount, denomínation, ISIN and tenor). nlqt?á

61 "Tap fssue Addendum" shall have the meaning ascribed to such term in Clause 2.1 (Amotmt, denomínation, ISIN and tenor), "Tax Event Repayment Date" means the date set out in a notice from the Issuer to the Bondholders pursuant to Clause 10.5 (Early redemption option due to a tax event). "Transaction Security" means the Security created or expressed to be created in favour of the Security Agent (on behalf of the Seoured Parties) pursuant to the Transaction Security Documents. "Transaction Security Documents" means, collectively, the Escrow Account Pledge and all of the documents which shall be executed or delivered pursuant to Clause 2,5 (Transaction Securìty) expressed to create any Seourity by the relevant grantor thereof in respect ofthe Issuer's obligations under any of the Finance Documents. 'ovoting Bonds" means the Outstanding Bonds less the Issuer's Bonds and a Voting Bond shall mean any single one of those Bonds. "Written Resolution" means a written (or electronic) solution for a decision making among the Bondholders, as set out in Clause 15.5 (Wrìtten Resolutions). 1,2 Construction In these Bond Terms, unless the context otherwise requires: (a) (b) (c) (d) (e) headings are for ease ofreference only; words denoting the singular number will include the plural and vice versa; references to Clauses are references to the Clauses of these Bond Terms; references to a time are references to Central European time unless otherwise stated; references to a provision of "lârv" is a reference to that provision as amended or reenacted, and to any regulations made by the appropriate authority pursuant to such law; (f) references to a "regulationn' includes any regulation, rule, offrcial directive, request or guideline by any offrcial body; (g) references to a "perton" meåns any individual, corporation, partnership, limited tiability company, joint venture, association, joint-stock company, unincorporated organization, government, or any agency or political subdivision thereof or any other entity, whether or not having a separate legal personality; (h) references to Bonds being "redeemed" means that such Bonds are cancelled and discharged in the CSD in a corresponding amount, and that any amounts so redeemed may not be subsequently re-issued under these Bond Terms; (Ð references to Bonds being "purchased" or "repurchased" by the Issuer means that such Bonds may be dealt with by the Issuer as set out in Clause 11.1 (lssaer's purchase of Bonds), nl+a?

62 ü) references to persons "acting in cotrcert" shall be interpreted pursuant to the relevant provisions of the Securities Trading Act; and (k) an Event of Default is "continuing" if it has not been remedied or waived THE BONDS Amount, denomination and ISIN of the Bonds (a) The Issuer has resolved to issue a series of Bonds in the maximum amount of NOK 1,000,000,000 (the "Maximum Issue Amount"). The Bonds may be issued on different issue dates and the Initial Bond Issue will be in the amount of NOK 750,000,000. The Issuer may, provided that the conditions set out in Clause 6.3 (Tap Issues) are met, at one or more occasions issue Additional Bonds (each a "Tap fssue") until the Nominal Amount of all Additional Bonds equals in aggregate the Maximum Issue Amount less the Initial Bond Issue. Each Tap Issue will be subject to identical terms as the Bonds issued pursuant to the Initial Bond Issue in all respects as set out in these Bond Terms, except that Additional Bonds may be issued at a different price than for the Initial Bond Issue and which may be below (but not lower than 98 per cent) or above the Nominal Amount. The Bond Trustee shall prepare an addendum to these Bond Terms evidencing the terms of each Tap Issue (a "Tap Issue Addendum"). (b) The Bonds are denominated in Norwegian Kroner (NOK), being the legal cunency of Norway, (c) The Initial Nominal Amount of each Bond is NOK 500,000. (d) The ISIN of the Bonds is NO All Bonds issued under the same ISIN will have identical terms and conditions as set out in these Bond Terms Tenor ofthe Bonds The tenor of the Bonds is from and including the Issue Date to but excluding the Maturity Date. Use of proceeds (a) The Issuer will use the net proceeds from the Initial Bond Issue for: (i) the tull discharge of the Existing Debt; and (ii) the general corporate purposes of the Issuer (including payment of dividends to the shareholders in acoordance with Permitted Distributions). (b) The Issuer will use the net proceeds from the issuance of any Additional Bonds for the general corporate purposes ofthe Issuer. 2,4 Status of the Bonds The Bonds will constitute senior debt obligations of the Issuer. The Bonds will rank pari passu between themselves and will rank at least pari passu with all other obligations of the Issuer (save for such claims which are preferred by bankruptry, insolvency, liquidation or other similar laws of general application). rulca %

63 2,5 Transaction Security (a) As Security for the due and punctual fr lfilment of the Secured Obligations, the Issuer shall procure that the following Transaction Security is granted in favour of the Security Agent with first priority within the times agreed in Clause 6 (Conditìons þr dísbarsement): (D the Escrow Account Pledge; (ii) the Collateral Shares Pledge; (iið the Bank Accounts Pledge, and (iv) (if and to the extent relevant under the Bond Terms) the LTV Cure Escrow Account Pledge. (b) The Transaction Security shall be entered into on such terms and conditions as the Bond Trustee in its discretion deems appropriate in order to create the intended benefit for the Seoured Parties under the relevant document THE BONDHOLDERS Bond Terms bindíng on all Bondholders (a) By virtue of being registered as a Bondholder (directly or indirectly) with the CSD, the Bondholders are bound by these Bond Terms and any other Finance Document, without any further action required to be taken or formalities to be complied with by the Bond Trustee, the Bondholders, the Issuer or any other party. (b) The Bond Trustee is always acting with binding effect on behalf of all the Bondholders. 3,2 Limit tion of rights of action (a) No Bondholder is entitled to take any enforcement action, instigate any insolvency procedures, or take other action against the Issuer or any other party in relation to any of the liabilities of the Issuer or any other party under or in connection with the Finance Documents, other than through the Bond Trustee and in accordance with these Bond Terms, provided, however, that the Bondholders shall not be restricted from exercising any of their individual rights derived from these Bond Terms, including the right to exercise the Put Option. (b) Each Bondholder shall immediately upon request by the Bond Trustee provide the Bond Trustee with any such documents, including a written powor of attorney (in form and substance satisfactory to the Bond Trustee), as the Bond Trustee deems necessary for the purpose of exercising its rights and/or carrying out its duties under the Finance Documents. The Bond Trustee is under no obligation to represent a Bondholder which does not comply with such request. tslts "ß

64 3.3 Bondholders' rights (a) If a beneficial owner of a Bond not being registered as a Bondholder wishes to exercise any rights under the Finance Documents, it must obain proof of ownership of the Bonds, acceptable to the Bond Trustee. (b) A Bondholder (whether registered as such or proven to the Bond Trustee's satisfaction to be the beneficial owner of the Bond as set out in paragraph (a) above) may issue one or more powers of attorney to third parties to represent it in relation to some or all of the Bonds held or beneficially owned by such Bondholder. The Bond Trustee shall only have to examine the face of a power of attorney or similar evidence of authorisation that has been provided to it pursuant to this Clause 3.3 (Bondholders' rìghts) and may assume that it is in full force and effect, unless othenwise is apparent from its face or the Bond Trustee has actual knowledge to the contrary. 4, ADMISSION TO LISTING The Issuer shall procure that the Bonds are listed on an Exchange within six months of the Issue Date and thereafter (subject to the provisions concerning Listing Failure Event) remain listed on an Exchange untilthe Bonds have been redeemed in full REGISTRATION OF TI{E BONDS Registration in the CSD The Bonds shall be registered in dematerialised form in the CSD according to the relevant securities regiskation legislation and the requirements of the CSD. 5,2 Obligation to ensure correct registration The Issuer will at all times ensure that the registration of the Bonds in the CSD is correct and shall immediately upon any amendment or variation of these Bond Terms give notice to the CSD of any such amendment or variation. 5.3 Country of issuance The Bonds have not been issued under any other country's legislation than that of the Relevant Jurisdiction. Save for the registration of the Bonds in the CSD, the Issuer is under no obligation to register, or cause the registration of, the Bonds in any other registry or under any other legislation than that of the Relevant Jurisdiction CONDITIONS FOR DISBURSEMENT Conditions precedent for disbursement to the Issuer (a) Payment of the net proceeds from the issuance of the Bonds to the Escrow Account shall be conditional on the Bond Trustee having received in due time (as determined by the Bond Trustee) prior to the Issue Date each of the following documents, in form and substance satisfactory to the Bond Trustee: (Ð these Bond Terms duly executed by all parties hereto; (ii) copies ofall necessary corporate resolutions ofthe Issuer to issue the Bonds and execute the Finance Documents to which it is a parly; rol s YT,

65 (iið a copy of a power of attorney (unless included in the corporate resolutions) from the Issuer to relevant individuals for their execution of the Finance Documents to which it is a pafly, or extracts from the relevant register or similar documentation evidencing such individuals' authorisation to execute such Finance Documents on behalf of the Issuer; (iv) copies of the Issuer's articles of association and of a full exhact from the relevant company register in respect of the Issuer evideneing that the Issuer is validly existing; (v) the Escrow Account Pledge duly executed by all parties thereto and perfected in accordance with applicable law; (vi) copies of the Issuer's latest Financial Reports (if any); (vii) confirmation that the applicable prospectus requirements (ref the EU prospectus directive ( EC)) concerning the issuance of the Bonds have been tulfilled; (viii) confirmation that the Bonds are registered in the CSD; (ix) copies of any written documentation used in marketing the Bonds or made public by the Issuer or any Manager in connection with the issuance of the Bonds; (x) the Bond Trustee Fee Agreement duly executed by the parties thereto; and (xi) legal opinions or other statements as may be required by the Bond Trustee (including in respect of corporate matters relating to the Issuer and the legality, validity and enforceability of these Bond Terms and the Finance Documents). (b) The net proceeds from the Bond Issuo (on tho Escrow Acoount) will not be disbursed to the Issuer unless the Bond Trustee has received or is satisfied that it will receive in due time (as determined by the Bond Trustee) prior to such disbursement to the Issuer each of the following documents, in form and substance satisfactory to the Bond Trustee: (D a duly exeouted release notice from the lssuer, as set out in Schedule 2; (ii) a written confirmation from the Issuer to the Bond Trustee confirming that the amount to be released from the Escrow Account shall be applied in accordance with Clause 2.3 (Use of proceeds), including evidence that either (A) the Existing Debt is or will be discharged upon or in connection with disbursement, or (B) pending subsequent discharge in accordance with the terms hereof (see the definition of Permitted Financial Indebtedness), the current security for the Seller's Credit Guarantee is released in full and replaced by the Cash Deposit, in each case in accordance with the relevant Closing Procedure; //s

66 (iið the documents listed in items (ii)-(iv) of this Clause 6.1 (Conditions precedent for disbursenent to the Issuer) paragraph (a),feil! Fant ikke referansekilden. unless delivered as pre-settlement conditions precedent; (iv) tl e Transaction Security Documents duly executed by all parties thereto and evidence of the establishment and perfection of the Transaction Security; (v) any other Finance Documents duly executed by all parties thereto; (vi) a written confirmation from the Issuer confirming (a) that no indebtedness, securþ or guarantees (that will not constitute Permitted Security or Permitted Financial Indebtedness) exist (or will exist upon disbursement in accordance with the Closing Procedure) and (b) that no Event of Default has occurred and is continuing or will result from the release of funds from the Esorow Account, and (vii) legal opinions or other statements as may be required by the Bond Trustee (including in respect of corporate matters relating to the Obligors and the legality, validity and enforceability of the Finance Documents (unless delivered under this Clause 6.1 (Condítions precedent for disbursement to the ßsuer) paragraph (a) as pre-settlement conditions precedent). (c) The Bond Trustee, acting in its reasonable discretion, may, regarding this Clause 6.1 (Conditions precedent for dísbursement to the Issuer), waive the requirements for documentation, or decide in its discretion that delivery of cert in documents sh ll be made subject to an agreed closing procedure between the Bond Trustee and the Issuer (the "Closing Procedure") Distribution Disbursement of the proceeds from the issuance of the Bonds is conditional on the Bond Trustee's confirmation to the Paying Agent that the conditions in Clause 6.1 (Conditions precedent for disbursement to the Issuer. have been either satisfied in the Bond Trustee's discretion or waived by the Bond Trustee pursuant to paragraph (c) of Clause 6.1 above. Tap Issues The Issuer may issue Additional Bonds if: (a) the Bond Trustee has executed a Tap Issue Addendum; (b) the representations and warr nties contained in Clause 7 (Representatìons and lltarranties) of these Bond Terms are true and correct in all material respects and repeated by the Issuer as at the date ofissuance ofsuch Additional Bonds; and (c) the Issuer meets the Incurrence Test tested pro forma including the new Financial Indebtedness incurred as a result of issuing such Additional Bonds. 7. REPRESENTATIONS AT I) \ryarrantie S The Issuer makes the representations and warranties set out in this Clause 7 (Representatìons and warrantìes), in respect of itself to the Bond Trustee (on behalf of the Bondholders) at the following times and with reference to the facts and circumstances then existing: ls/4s 16

67 (a) at the date of these Bond Terms; (b) at the Issue Date; (c) on each date ofdisbursement ofproceeds from the Escrow Account; (d) at the date of issuance of any Additional Bonds; and (e) on each date of release from the LTV Cure Escrow Account: Status It is a limited liability company, duly incorporated and validly existing and registered under the laws of its jurisdiction of incorporation, and has the power to own its assets and carry on its business as it is being conducted. Power and authority It has the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and delivery ofl this Bond Terms and any other Fin nce Document to which it is a parfy and the transactions contemplated by those Finance Documents. Valid, binding and enforceable obligations These Bond Terms and each other Finance Document to which it is a parfy constitutes (or will constitute, when exeouted by the respective parties thereto) its legal, valid and binding obligations, enforceable in accordance with their respective terms, and (save as provided for therein) no fi rther registration, filing, payment of tax or fees or other formalities are necessary or desirable to render the said documents enforceable against it. Non'conflict with other obligations The entry ínto and performance by it of these Bond Terms and any other Finance Document to which it is a party and the transactions contemplated thereby do not and will not conflict with (i) any law or regulation or judicial or official order; (ii) its constitutional documents; or (iii) any agreement or instrument which is binding upon it or any of its assets. No Event of Default (Ð No Event of Default exists or is likely to result from the making of any drawdown under these Bond Terms or the entry into, the performance of, or any transaction contemplated by, any Finanoe Document. (ii) No other event or circumstance has occurred which constitutes (or with the expiry of any grace period, the giving of notice, the making of any determination or any combination of any of the foregoing, would constitute) a default or termination event (howsoever described) under any other agreement or instrument which is binding on it or âny of its Subsidiaries or to which its (or any of its Subsidiaries') assets a e subject which has or is likely to have a Material Adverse Effect. tslt '%.

68 7.6 Aufhorizatlons and consents All authorisations, consents, approvals, resolutions, licenses, exemptions, filings, notarizations or regishations required: (i) (ii) to enable it to enter into, exeroise its rights and comply with its obligations under this Bond Terms or any other Finance Document to which it is a party; and to carry on its business as presently conducted and as contemplated by these Bond Terms, have been obt ined or effected and are in full force and effect. 7,7 Litigation No litigation, arbitration or administrative proceedings or investigations of or before any court, arbitral body or agency which, if adversely determined, is likely to have a Material Adverse Effect have (to the best of its knowledge and belief) been started or threatened against it or any of its Subsidiaries. 7.8 Financial Reports Its most recent Financial Reports fairly and accurately represent the assets and liabilities and financial condition as at their respeotive dates, and have been prepared in accordance with GAAP, consistently applied. 7.9 No Material Adverse Effect Since the date of the most recent Financial Reports, there has been no change in its business, assets or financial condition that is likely to have a Material Adverse Effect No misleading information Any factual information provided by it to the Bondholders or the Bond Trustee for the purposes of the issuance of the Bonds was true and accurate in all material respects as at the date it was provided or as at the date (if any) at which it is stated. 7.ll No withholdings The Issuer is not required to make any deduction or withholding from any payment which it may become obliged to make to the Bond Trustee or the Bondholders under these Bond Terms. 7,12 Pari passu ranking Its payment obligations under these Bond Terms or any other Finance Document to which it is aparly ranks as set out in Clause Security No Security exists over any of the present assets of any Group Company in conflict with these Bond Terms. zolqs,/r

69 PAYMENTS IN RESPECT OF THE BONDS Covenant to pay (a) The Issuer will unconditionally make available to or to the order of the Bond Trustee and/or the Paying Agent all amounts due on each Payment Date pursuant to the terms of these Bond Terms at such times and to such accounts as specified by the Bond Trustee and/or the Paying Agent in advance of each Payment Date or when othçr payments are due and payable pursuant to these Bond Terms. (b) All payments to the Bondholders in relation to the Bonds shall be made to each Bondholder registered as such in the CSD at the Relevant Record Date, by, if no specific order is made by the Bond Trustee, crediting the relevant amount to the bank account nominated by suoh Bondholder in connection with its securities account in the CSD. (c) Payment constituting good discharge of the Issuer's payment obligations to the Bondholders under these Bond Terms will be deemed to have been made to each Bondholder once the amount has been credited to the bank holding the bank account nominated by the Bondholder in connection with its securities account in the CSD. If the paying bank and the receiving bank are the same, payment shall be deemed to have been made onoe the amount has been credited to the bank account nominated by the Bondholder in question. (d) If a Payment Date or a date for other payments to the Bondholders pursuant to the Finance Documents falls on a day on which either of the relevant CSD settlement system or the relevant cunency settlement system for the Bonds are not open, the payment shall be made on the first following possible day on which both of the said systems are open, unless any provision to the contrary have been set out for such payment in the relevant Finance Document. 8.2 Default Ínterest (a) Default interest will accrue on any Overdue Amount from and including the Payment Date on which it was first due to and excluding the date on which the payment is made at the Interest Rate plus an additional three (3) per cent. per annum. (b) Default interest acøued on any Overdue Amount pursuant to this Clause 8.2 (Default ínterest) will be added to the Overdue Amount on each Interest Payment Date until the Overdue Amount and default interest accrued thereon have been repaid in full. 8.3 Partial Payments (a) If the Paying Agent or the Bond Trustee receives a Partial Payment, such Partial Payment shall, in respect of the Issuer's debt under the Finance Documents be considered made for discharge of the debt of the Issuer in the following order of priorþ: (i) firstly, towards any outstanding fees, liabilities and expenses of the Bond Trustee (and any Securþ Agent); (ið secondly, towards accrued interest due but unpaid; and ztlqt,k

70 (iii) thirdly, towards any principal amount due but unpaid. (b) Notwithstanding paragraph (a) above, any Partial Payment which is distributed ùo the Bondholders, shall, after the above mentioned deduction of outstanding fees, liabilities and expenses, be applied (i) firstly towards any principal amount due but unpaid and (ii) secondly, towards accrued interest due but unpaid, in the following situations; ( ) the Bond Trustee has served a Default Notice in accordance with Clause 14,2 (Acceleralion of the Bonds), or (ii) as a result of a resolution according to Clause 15 (Bondholders' decisions). 8.4 Taxation (a) The Issuer is responsible for withholding any withholding tax imposed by applicable law on any payments to be made by it in relation to the Finance Documents. (b) The Issuer shall, if any tax is withheld in respect of the Bonds under the Finance Documents: (Ð gross up the amount of the payment due from it up to such amount which is necessary to ensure that the Bondholders or the Bond Trustee, as the case may be, receive a net amount which is (after making the required withholding) equal to the payment which would have been received if no withholding had been required; and (ii) at the request of the Bond Trustee, deliver to the Bond Trustee evidence that the required tax deduction or withholding has been made. (c) Any public fees levied on the trade of Bonds in the secondary market shall be paid by the Bondholders, unless otherwise provided by law or regulation, and the Issuer shall not be responsible for reimbursing any such fees, 8.5 Currency (a) All amounts payable under the Finance Documents shall be payable in the denomination of the Bonds set out in Clause 2.1 (Amount, denomination and ISIN of the Bonds). If however, the denomination differs from the cunenoy of the bank account connected to the Bondholder's account in the CSD, any cash settlement may be exchanged and credited to this bank account. (b) Any specific payment instructions, including foreign exchange bank account details, to be connected to the Bondholder's aceount in the CSD must be provided by the relevant Bondholder to the Paying Agent (either directly or through its account manager in the CSD) within five (5) Business Days prior to a Payment Date. Depending on any currency exchange settlement agreements between each Bondholder's bank and the Paying Agent, and opening hours of the receiving bank, cash settlement may be delayed, and payment shall be deemed to have been made once the sash settlement has taken place, provided, however, that no default interest or other penalty shall accrue for the account ofthe Issuer for such delay. zzlqe %

71 8.6 Set-off and counterclaims The Issuer may not apply or perform any counterclaims or set-off against any payment obligations pursuant to these Bond Terms or any other Finance Document INTEREST Calculation of interest (a) Each Outstanding Bond will accrue interest at the Interest Rate on the Nominal Amount for each Interest Period, commencing on and including the first date of the Interest Period, and ending on but excluding the last date ofthe Interest Period. (b) Interest will accrue on the Nominal Amount of any Additional Bond for each Interest Period starting with the Interest Period commencing on the Interest Payment Date immediately prior to the issuance of the Additional Bonds (or, if the date of the issuance is not an Interest Payment Date and there is no Interest Payment Date prior to such date of issuance, starting with the Interest Period commencing on the Issue Date). (c) Interest shall be calculated on the basis of the actual number of days in the Interest Period in respect of which payment is being made divided by 360 (aotuav360-days basis). The Interest Rate will be reset at each Interest Quotation Day by the Bond Trustee, who will notiff the Issuer and the Paying Agent and, if the Bonds are listed, the Exchange, ofthe new Interest Rate and the actual number ofoalendar days for the next Interest Period. 9.2 Payment of interest Interest shall fall due on each Interest Payment Date for the corresponding preceding Interest Period and, with respect to accrued interest on the principal amount then due and payable, on each Repayment Date REDEMPTION AND REPURCIIASE OF BONI}S Redemption of Bonds The Outstanding Bonds will mature in full on the Maturþ Date and shall be redeemed by the Issuer on the Maturity Date at a price equal to 100 per cent. of the Nominal Amount Voluntary early redemption - Call Optlon (a) The Issuer may redeem all or part of the Outstanding Bonds (the "Call Optlon") on any Business Day from and including: (D the First Call Date to, but not including, the Interest Payment Date in June 2022 at a price equal to per cent, of the Nominal Amount for each redeemed Bond; (ii) the Interest Payment Date in June 2022 to, but not including, the Interest Payment Date in December 2022 at a price equal to per cent. of the Nominal Amount for each redeemed Bond; and zs/as Ø

72 ( ið the Interest Payment Date in December 2022 to, but not including, the Maturþ Date at a price equal to per cent. of the Nominal Amount for each redeemed Bond. (b) Any redemption of Bonds pursuant to Clause 10.2 (a) above shall be determined based upon the redemption prices applicable on the Call Option Repayment Date. (c) The Call Option may be exercised by the Issuer by written notice to the Bond Trustee and the Bondholders at least ten (10), but not more than twenty (20), Business Days prior to the proposed Call Option Repayment Date. Such notice sent by the Issuer is irrevocable and shall specifr the Call Option Repayment Date. (d) Any Call Option exercised in part will be used for pro rata payment to the Bondholders in accordance with the applicable regulations of the CSD Mandatory repurchase due to a Put Option Event (a) Upon the oscurrence of a Put Option Event, each Bondholder will have the right (the "Put Option") to require that the Issuer purchases all or some of the Bonds held by that Bondholder at a price equal to per cent. of the Nominal Amount. (b) The Put Option must be exercised within thirly (30) calendar days after the Issuer has given notice to the Bond Trustee and the Bondholders that a Put Option Event has occuned pursuant to Clause 12.3 (Put Option Event). Once notified, the Bondholders' right to exercise the Put Option is irrevocable and will not be affected by any subsequent events related to the Issuer. (c) Each Bondholder may exercise its Put Option by written notice to its account manager for the CSD, who will notiff the Paying Agent of the exercise of the Put Option. The Put Option Repayment Date will be the frfth Business Day after the end of the thi*y (30) calendar days exercise period referred to in paragraph (b) above. However, the settlement of the Put Option will be based on each Bondholder's holding of Bonds at the Put Option Redemption Date. (d) If Bonds representing more than 90 per cent. of the Outstanding Bonds have been repurchased pursuant to this Clause 10.3 (Mandatory repurchase due to a Put Option Event), the Issuer is entitled to repurchase all the remaining Outstanding Bonds at the price stated in paragraph (a) above by notifying the remaining Bondholders of its intention to do so no later than twenty (20) calendar days after the Put Option Repayment Date. Such prepayment may occur at the earliest on the l5rh calendar day following the date of such notice Early redemption due to a Mandatory Prepayment Event (a) Upon a Mandatory Prepayment Event occurring, the Issuer shall no later than thirty (30) days following the relevant Mandatory Prepayment Event (unless an Event of Default has occurred and is continuing, in which case it will be promptly) redeem 100 per cent. of the Outstanding Bonds at the following redemption prices: (i) from the Issue Date to, but not including, the First Call Date at a price equal to per cent. of the Nominal Amount of each redeemed Bond; zclqe fr,2

73 (id from the First Call Date, in accordance with the redemption prices set out in Clause 10.2 (a). (b) Settlement of the redemption of Bonds pursuant to this Clause 10.4 will be determined based upon the redemption prices applicable on the date the Mandatory Prepayment Event occurred. (c) The Issuer may apply any amount deposiæd on the LTV Cure Esøow Account to fund redemption pursuant to this Clause (d) In the event of a sale or disposal ofthe Collateral Shares, the Issuer shall ensure that the proceeds from such sale or disposal (and/or other available cash) in an aggregate amount equal to the ft ll prepayment amount pursuant to paragraph (b) above is directly and immediately tansferred to the LTV Cure Escrow Account pending redemption rt.2 Early redemption option due to a tax event If the Issuer is or will be required to gross up any withheld tax imposed by law from any payment in respect of the Bonds under the Finance Documents pursuant to Clause 8.4 (Tasealion) as a result of a change in applicable law implemented after the date of these Bond Terms, the Issuer will have the right to redeem all, but not only someo of the Outstanding Bonds at a price equal to 100 per cent. of the Nominal Amount. The Issuer shall give written notice of such redemption to the Bond Trustee and the Bondholders at least twenty (20) Business Days prior to the Tax Event Repayment Date, provided that no such notice shall be given earlier than sixty (60) days prior to the earliest date on which the Issuer would be obliged to withhold such tax \ryere a payment in respect of the Bonds then due. Mandatory early redemption at the Longstop Date In the event that the conditions precedent set out in Clause 6.1 (Conditìons preeedent for disbursement to the Issuer) have not been fulfilled within the Longstop Date, the Issuer shall immediately redeem the Bonds at a price of 101 per cent. of the Norninal Amount plus accrued interest, by inter alia applying the funds deposited on the Escrow Account for such redemption. PURCHASE AND TRANSTAR OT'BONDS Issuerts purchase of Bonds The Issuer may purchase and hold Bonds and such Bonds may be retained, sold or cancelled in the Issuey's sole discretion, (including with respect to Bonds purchased pursuant to Clause 70.3 (Mandatory repurchase due to a Put Option Event). Restrictions (a) Certain purchase or selling restrictions may apply to Bondholders under applicable local laws and regulations from time to time. Neither the Issuer nor the Bond Trustee shall be responsible to ensure compliance with such laws and regulations and each Bondholder is responsible for ensuring compliance with the relevant laws and regulations at its own cost and expense. (b) A Bondholder who has purchased Bonds in breaoh of applicable reshictions may, notwithstanding such breach, benefit from the rights attached to the Bonds pursuant to zslqa %ç

74 these Bond Terms (including, but not limited to, voting rights), provided that the Issuer shall not incur any additional liability by complying with its obligations to such Bondholder. 12. t2.t INFORMATION UNDERTAKINGS F'inancial Reports (a) The [ssuer shall prepare Annual Financial Statements in the English language and make them available on its website (alternatively on another relevant information platform) as soon as they become available, and not later than 120 days after the end of the financial year. (b) The Issuer shall prepare Interim Accounts in the English language and make them available on its website (alternatively on another relevant information platform) as soon as they become available, and not later than 60 days after the end ofthe relevant interim period Requirements as to Financial Reports (a) The Issuer shall supply to the Bond Trustee, in connection with the publication of its Financial Reports pursuant to Clause 12.1 (Financial Reports), a Compliance Certifioate with a copy of the relevant Financial Reports attached thereto. The Compliance Certificate shall be duly signed by the chief executive officer or the chief financial officer of the Issuer, certifing inter alia that the Financial Reports are fairly representing its financial condition as at the date of those financial statements and setting out (in reasonable detail) computations evidencing compliance with Clause (Financial Covenanls and Incurrence Test) as at such date. (b) The Issuer shall procure that the Financial Reports delivered pursuant to Clause l2.l (Financial Reports) are prepared using GAAP consistently applied, Put Option Event The Issuer shall inform the Bond Trustee in writing as soon as possible after becoming aware that a Put Option Event has occurred. Information: Miscellaneous The Issuer shall: (a) promptly inform the Bond Trustee in writing of any Event of Default or any event or circumstance whioh the Issuer understands or could reasonably be expected to understand may lead to an Event of Default and the steps, if any, being t ken to remedy it; (b) at the request of the Bond Trustee, report the balance of the Issuer's Bonds (to the best of its knowledge, having made due and appropriate enquiries); (c) send the Bond Trustee copies of any statutory notifications of the Issuer, including but not limited to in connection with mergers, de-mergers and reduction of the Issuer's share capital or equity; zalqt %

75 (d) if the Bonds are listed on an Exohange, send a copy to the Bond Trustee of its notices to the Exchange; (e) if the Issuer and/or the Bonds are rated, inform the Bond Trustee of its and/or the rating ofthe Bonds, and any changes to such rating; (Ð inform the Bond Trustee of changes in the registration of the Bonds in the CSD; and (g) within a reasonable time, provide such information about the Issuer's and the Group's business, assets and financial condition as the Bond Trustee may reasonably request, GENERAL AND FINANCIAL UNDERTAKINGS The Issuer undertakes to (and shall, where applicable, prooure that the other Group Companies will) comply with the undenakings set forth in this Clause 13 (General and financ íal Unde r tak ìngs). Authorisations The Issuer shall in all material respects obtain, maintain and comply with the terms of any authorisation, approval, license and consent required for the conduct ofits business as carried out from time to time if a failure to do so would have Material Adverse Effect Distr butions The Issuer shall not make any Distribution other than a Permitted Dishibution. Compliancewith laws The Issuer shall comply in all material respects with all laws and regulations to which it may be subject from time to time. 13,4 Continuation of business The Issuer shall procure that no material change is made to the general nature of the business from that carried on by the Issuer at the date of these Bond Terms Corporate status The Issuer shall not change its type of organization (other than to an ASA) or jurisdiction of organisation. Mergers and de-mergers The Issuer shall not carry out any: (a) merger or other business combination or corporate reorganisation involving the consolidation of the assets and obligations of the Issuer with any other person or party; or (b) any demerger or other corporate reorganisation having the same or equivalent effect as a demerger involving the Issuer, if such merger, demerger, combination or reorganisation would have a Material Adverse Effect. zil$ %r

76 t3,7 Arm's length transactions The Issuer shall not enter into any transaction with any person except on arm's length terms and for fair market value Investments The Issuer shall remain a single purpose vehicle and not acquire any company, shares, securities, business or undertaking (or any interest in any of them) or make any other investments or capital expenditures, other than solely related to the ownership of shares issued by Fjordl Ownership of Fjordl The Issuer shall remain the legal and beneficial owner of at least 50.1 per cent. of the at all times outstanding voting shares of Fjordl and shall not sell or dispose (or agree to any sale or disposal) of any shares of Fjordl that are pledged as Transaction Security, or agree to any other transaction having a similar effect thereto, provided however that it can carry out a sale of all (but not some only) of the Collateral Shares subject to compliance with Clause 10,4 (Early redemptíon due to a Mandatory Prepayment Event). 13.r0 Maintenance of Security As long as any amount remains outstanding under the Bonds, the Issuer shall ensure that each Transaction Security Document shall remain duly created, enforceable and perfected on first priority Financiallndebtedness (a) Except as permitted under paragraph (b) below, the Issuer shall not incur any additional Financial Indebtedness or maintain or prolong any existing Financial Indebtedness. (b) Paragraph (a) above shall not prohibit any Group Company to incur, maint in or pro lon g any Permitted Financial Indebtedness Negative pledge (a) Except as permitted under paragraph (b) below, the Issuer shall not create or allow to subsist, retain, provide, prolong or renew any Security over any of its/their assets (whether present or future). (b) Paragraph (a) above does not apply to any Security granted (i) in relation to Permitted Financial Indebtedness; or (ii) to secure any lien arising by operation of law. 13.f3 Financialsupport (a) Except as permitted under paragraph (b) below, t}re Issuer shall not grant any Financial Support to or for the benefit ofany pafy. (b) Paragraph (a) above does not apply to any Financial Support provided in relation to Permitted Financial Indebtedness. ztl+s l/(

77 13, Disposals (a) The Issuer shall not sell, ftansfer or otherwise dispose of all or substantially all of its assets, save in case for a Mandatory Prepayment Event. X'inancial Covenants and fncurrence Tesl (a) The Issuer undertakes to at all times comply with the following financial covenants: (D Loan to Value Ratio The Issuer shall ensure that the Loan to Value Ratio does not exceed 70 per cent. (ii) Minimum liquídíty The Issuer shall maintain Liquidity in an amount of no less than the estimated next twelve (12) months of interest payments underthe Bonds. (b) Compliance with the above financial covenants shall be certified by way of a Compliance Certificate to be delivered in acoordance with Clause 12.2 (a). (c) Loan to Value Cure: (i) A breach of the minimum Loan to Value Ratio may be cured through receipt by the Issuer of Cure Proceeds no later than ten (10) Business Days from the date the Compliance Certificate for the relevant interim period is delivered or required to be delivered (whichever comes first) pursuant to Clause 12.2 (a) or such other time as the Issuer notifies the Bond Trustee of a breach. (ið Such Cure Proceeds shall be deposited into the LTV Cure Escrow Account and the total amount in the LTV Cure Escrow Account shall be added to the Market Value of the Collateral Shares. (iið The Cure Proceeds deposited into the LTV Cure Escrow Account may, subject to paragraph (b) of Permitted Distribution, be released to the shareholders of the Issuer in connection with any subsequent Compliance Certifioate certising (i) that the breach of the minimum Loan to Value Ratio has been cured and (ii) that the amount of Cure Proceeds deposited into the LTV Cure Escrow Account is in excess of the amount required to satis! the Loan to Value Ratio. (d) Inourrence Test: (D The Incurrence Test is met if the Loan to Value Ratio does not exceed 50.0 per cent. (ii) The calculation of the Loan to Value Ratio shall be made as per a testing date determined by the lssuer, falling no earlier than the last day of the period covered by the most recent Financial Report delivered to the Bond Trustee prior to the event relevant for the application ofthe Incurrence Test: zslqs '7s

78 (A) (B) tr'or any Tap Issue: The Loan to Value Ratio shall be measured on the relevant testing date, and then so that for the purposes ofcalculating the Outstanding Bond Amount, the full commitment of any Tap Issue in respect of which the Incunence Test is applied shall be taken into account. For any Distributions: The Loan to Value Ratio shall be measured on the relevant testing date, and then so that for the puryosos of calculating the Liquidity, the amount of the contemplated Distribution shall be deducted. 14. t4.l EVENTS OF DEFAULT AND ACCELERATION OF THE BONDS Events of Default Each of the events or circumstances set out in this Clause l4.l shall constitute an Event of Default: (a) Non-payment The Issuer fails to pay ùny amount payable by it under the Finance Documents when such amount is due for payment, unless: (i) its failure to pay is caused by administrative or technical error in payment systems or the CSD and payment is made within five (5) Business Days following the original due date; or (ið in the discretion of the Bond Trustee, the Issuer has substantiated that it is likely that such payment will be made in full within five (5) Business Days following the original due date. (b) Breach of other obligatíons The Issuer does not comply with any provision of the Finance Documents other than set out under paragraph (a) (Non-payment) above, unless such failure is capable of being remedied and is remedied within twenty (20) Business Days after the earlier of the Issuer's actual knowledge thereof, or notice thereof is given to the Issuer by the Bond Trustee (c) Mísrepresentation Any representation, warranty or statement (including statements in Compliance Certificates) made under or in connection with any Finance Documents is or proves to have been incorreæt, inaccurate or misleading in any material respect when made or deemed to have been made, unless the circumstances giving rise to the misrepresentation are capable of remedy and are rpmedied within twenty (20) Business Days of the earlier of the Bond Trustee giving notice to the Issuer or the Issuer becoming aware of such misrepresentation. (d) Crass default :nlas %,

79 If for any Group Company: (D any Financial Indebtedness is not paid when due nor within any applicable grace period; or (ii) any Financial Indebtedness is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described); or (iii) any commitment for any Financial Indebtedness is cancelled or suspended by a creditor as a result ofan event of default (however described), or (iv) any creditor becomes entitled to declare any Financial Indebtedness due and payable prior to its specified maturity as a result of an event of default (however described), provided however that the aggregate amount of such Financial Indebtedness or commitment for Financial Indebtedness falling within paragraphs (i) to (iv) above exceeds a total of NOK 50,000,000 (or the equivalent thereof in any other currency). (e) Insolvency and insolvency proceedings Any Group Company: (i) is Insolvent; or (ið is object ofany corporate action or any legal proceedings is taken in relation to: (c) (D) (E) (F) (G) the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration or reorganisation (by way of voluntary arangement, scheme of arrangement or otherwise) other than a solvent liquidation or reorganisation; or a composition, compromise, assignment or arrangement with any creditor which may materially impair the Issuer's abilþ to perform its obligations under these Bond Terms; or the appointment of a liquidator (other than in respect of a solvent liquidation), receiver, administrative receiver, administrator, compulsory manager or other similar officer of any of its assets; or enforcement of any Security over any of its or their assets having an aggregate value exceeding the threshold amount set out in paragraph l4.l (d) (Cross deþult) above; or for (A) - (D) above, any analogous procedure or step is taken in any jurisdiction in respect ofany such company, zt/ e %

80 (, Creditor's process however this shall not apply to any petition which is frivolous or vexatious and is discharged, stayed or dismissed within twenty (20) Business Days of commencement. Any expropriation, attachment, sequestration, distress or execution affects any asset or assets of any Group Company having an aggregate value exceeding the threshold amount set out in paragraph 14.1 (d) (Cross deíault) above and is not discharged within twenty (20) Business Days. (g) Unløwfulness It is or becomes unlawful for the Issuer to perform or comply with any of its obligations under the Finance Documents to the extent this may materially impair: (i) the abilþ of the Issuer to perform its obligations under these Bond Terms; or (ii) the ability of the Bond Trustee or any Security Agent to exercise any material right or power vested to it under the Finance Documents Acceleration of the Bonds If an Event of Default has occurred and is continuing, the Bond Trustee may, in its discretion in order to protect the interests of the Bondholders, or upon instruction received from the Bondholders pursuant to Clause 74.3 (Bondholders' instructions)below, by serving a Default Notice: (a) declare that the Outstanding Bonds, together with accrued interest and all other amounts accrued or outstanding under the Finance Documents be immediately due and payable, at which time they shall become immediately due and payable; and/or (b) exercise (or direct the Security Agent to exercise) any or all of its rights, remedies, powers or discretions under the Finance Documents or take such further measures as are necessary to recover the amounts outstanding under the Finance Documents Bondholders' instructions The Bond Trustee shall serve a Default Notice pursuant to Clause 14.2 (Accelerctíon of the Bonds) if: (a) the Bond Trustee receives a demand in writing from Bondholders representing a simple majorþ of the Voting Bonds, that an Event of Default shall be declared, and a Bondholders' Meeting has not made a resolution to the contrary; or (b) the Bondholdcrs' Meeting, by a simple majority decision, has approved the declaration of an Event of Default Calculation of claim The claim derived from the Outstanding Bonds due for payment as a result of the serving of a Default Notice will be calculated at the prices set out in Clause la.2 (Voluntary earþ tzlct re

81 redemption - CaU Option) as applicable at the following dates (and regardless of the Default Repayment Date set out in the DefaultNotice): (a) for any Event of Default arising out of a breach of Clause 14.1 (Events of Default\ paragraph (a) (Non-payment),the elaim will be calculated at the price applicable at the date when such Event of Default occurred; and (b) for any other Event of Default, the claim will be calculated at the price applicable at the date when the Default Notice was served by the Bond Trustee. 15. ls.1 BONDHOLDERS' DECISIONS Authority of the Bondholders' Meeting (a) A Bondholders' Meeting may, on behalf of the Bondholders, resolve to alter any of these Bond Terms, including, but not limited to, any reduction of principal or interest and any conversion ofthe Bonds into other capital classes. (b) The Bondholders' Meeting cannot resolve that any overdue payment of any instalment shall be reduced unless there is a pro rata reduction ofthe principal that has not fallen due, but may resolve that accrued interest (whether overdue or not) shall be reduced without a corresponding reduction of principal. (c) The Bondholders' Meeting may not adopt resolutions which will give certain Bondholders an unreasonable advantage at the expense ofother Bondholders. (d) Subject to the power of the Bond Trustee to take cert in action as set out in Clause 16.I (Power to represent the Bondholders), if a resolution by, or an approval of, the Bondholders is required, such resolution may be passed at a Bondholders' Meeting. Resolutions passed at any Bondholders' Meeting will be binding upon all Bondholders. (e) At least 50 per cent. of the Voting Bonds must be represented at a Bondholders' Meeting for a quorum to be present. (Ð Resolutions will be passed by simple majority of the Voting Bonds represented at the Bondholders'Meeting unless otherwise set out in paragraph (g) below. (g) Save for any amendments or waivers which can be made without resolution pursuant to Clause l7.l (Procedure for amendments and waivers) paragraph (a), section (i) and (ii), a majority of at least 2/3 of the Voting Bonds represented at the Bondholders' Meeting is required for approval of any waiver or amendment of any provisions of these Bond Terms, including a change of Issuer and change of Bond Trustee Procedure for arranging a Bondholderct Meeting (a) A Bondholders' Meeting shall be convened by the Bond Trustee upon the request in writing of: (Ð the Issueç (ii) Bondholders representing at least li l0 of the Voting Bonds; R /te 33/4s

82 (iið the Exchange, if the Bonds are listed and the Exchange is entitled to do so pursuant to the general rules and regulations of the Exchange; or (iv) the Bond Trustee. The request shall clearly state the matters to be discussed and resolved. (b) If the Bond Trustee has not convened a Bondholders' Meeting within ten (10) Business Days after having received a valid request for calling a Bondholders' Meeting pursuant to paragraph (a) above, then the re-questing party may itself call the Bondholders' Meeting. (c) Summons to a Bondholders' Meeting must be sent no later than ten (10) Business Days prior to the proposed date of the Bondholders' Meeting. The Summons shall be sent to all Bondholders registered in the CSD at the time the Summons is sent from the CSD. If the Bonds are listed, the Issuer shall ensure that the Summons is published in accordance with the applicable regulations of the Exchange. The Summons shall also be published on the website of the Bond Trustee (altematively by press release or other relevant information platform). (d) Any Summons for a Bondholders' Meeting must clearly state the agenda for the Bondholders' Meeting and the matters to be resolved. The Bond Trustee may include additional agenda items to those requested by the person calling for the Bondholders' Meeting in the Summons. If the Summons contains proposed amendments to these Bond Terms, a description of the proposed amendments must be set out in the Summons. (e) Items which have not been included in the Summons may not be put to a vote at the Bondholders' Meeting. (Ð By written notice to the Issuer, the Bond Trustee may prohibit the Issuer from acquiring or dispose of Bonds during the period from the date of the Summons until the date of the Bondholders' Meeting, unless the acquisition of Bonds is made by the Issuer pursuant to Clause l0 (Redemption and Repurchase of Bonds). (g) A Bondholders'Meeting may be held on premises selected by the Bond Trustee, or if paragraph (b) above applies, by the person convening the Bondholders' Meeting (however to be held in the capital of the Relevant Jurisdiction). The Bondholders' Meeting will be opened and, unless otherwise decided by the Bondholders' Meeting, chaired by the Bond Trustee. If the Bond Trustee is not present, the Bondholders' Meeting will be opened by a Bondholder and be chaired by a representative elected by the Bondholders' Meeting (the Bond Trustee or such other representative, the "Chairperson"). (h) Each Bondholder, the Bond Trustee and, if the Bonds are listed, representatives of the Exchange, or any person or persons acting under a power ofattorney for a Bondholder, shall have the right to attend the Bondholders' Meeting (each a "Representative"), The Chairperson may grant access to the meeting to other persons not being Representatives, unless the Bondholders' Meeting decides otherwise. In addition, each r ldt %

83 Representative has the right to be accompanied by an advisor. In case of dispute or doubt with regard to whether a person is a Representative or entitled to vote, the Chaiqperson will decide who may attend the Bondholders'Meeting and exercise voting rights. (i) Representatives of the Issuer have the right to attend the Bondholders' Meeting. The Bondholders Meeting may resolve to exclude the Issuer's representatives and/or any person holding only Issuer's Bonds (or any representåtive of such person) from participating in the meeting at certain times, however, the Issuer's representative and any such other person shall have the right to be present during the voting. û) Minutes of the Bondholders' Meeting must be recorded by, or by someone acting at the instruction of, the Chairperson. The minutes must state the number of Voting Bonds represented at the Bondholders' Meeting, the resolutions passed at the meeting, and the results of the vote on the matters to be decided at the Bondholders' Meeting. The minutes shall be signed by the Chairperson and at least one other person. The minutes will be deposited with the Bond Trustee who shall make available a copy to the Bondholders and the Issuer upon request. (k) The Bond Trustee will ensure that the Issuer, the Bondholders and the Exchange are notified of resolutions passed at the Bondholders' Meeting and that the resolutions are published on the website of the Bond Trustee (or other relevant electronically platform or press release). (l) The Issuer shall bear the costs and expenses incurred in connection with convening a Bondholders' Meeting regardless of who has convened the Bondholders' Meeting, including any reasonable costs and fees incurred by the Bond Trustee. 1s.3 Voting rules (a) Each Bondholder (or person acting for a Bondholder under a po\iler of attorney) may cast one vote for each Voting Bond owned on the Relevant Record Date, ref. Clause 3.3 (Bondholders' rights). The Chairperson may, in its sole discretion, decide on accepted evidence of ownership of Voting Bonds. (b) Issuer's Bonds shall not carry any voting rights. The Chairperson shall determine any question concerning whether any Bonds will be considered Issuer's Bonds. (c) For the purposes of this Clause 15 (Bondholders' decisions), a Bondholder that has a Bond registered in the name of a nominee will, in accordance with Clause 3.3 (Bondholders' rights), be deemed to be the owner of the Bond rather than the nominee. No vote may be cast by any nominee if the Bondholder has presented relevant evidence to the Bond Trustee pursuant to Clause 3.3 (Bondholders' rights) stating that it is the owner of the Bonds voted for. If the Bondholder has voted directly for any of its nominee registered Bonds, the Bondholder's votes shall take precedence over votes submitted by the nominee for the same Bonds. (d) Any of the Issuer, the Bond Trustee and any Bondholder has the right to demand a vote by ballot. In case of parþ of votes, the Chairperson will have the deciding vote. sslqt,.2( / )

84 15.4 Repeated Bondholders' Meeting (a) Even if the necessary quorum set out in paragraph (d) of Claus e 15.1 (Authority of the Bondholders' Meeting) is not achieved, the Bondholders' Meeting shall be held and voting completed for the purpose of recording the voting results in the minutes of the Bondholders' Meeting. The Bond Trustee or the person who convened the initial Bondholders' Meeting may, within ten (10) Business Days of that Bondholders' Meeting, convene a repeated meeting with the same agenda as the first meeting. (b) The provisions and procedures regarding Bondholders' Meetings as set out in Clause 15.l (Authority of the Bondholders'Meeting), Clause 15.2 (Procedurefor arranging a Bondholders' Meeting) and Clause 15.3 (Yoting rules' shall apply mutatis mutandis to a repeated Bondholders' Meeting with the exception that the quorum requirements set out in paragraph (d) of Clause 15.1, (Authorrty af the Bondholders' Meeting) shall not apply to a repeated Bondholders' Meeting. A Summons for a repeated Bondholders' Meeting shall also contain the voting results obtained in the initial Bondholders' Meeting. (c) A repeated Bondholders' Meeting may only be convened once for each original Bondholders' Meeting. A repeated Bondholders' Meeting may be convened pursuant to the procedures of a Written Resolution in accordance with Clause I5.5 (Written Resolutions), even if the initial meeting was held pursuant to the procedures of a Bondholders' Meeting in accordance with Clause 15.2 (Procedure for arranging a Bondholders' Meeting) and vice versa Written Resolutions (a) Subject to these Bond Terms, anything which may be resolved by the Bondholders in a Bondholders' Meeting pursuant to Clause 15.1 (Authority of the Bondholders' Meeting) may also be resolved by way of a Written Resolution. A Written Resolution passed with the relevant majority is as valid as if it had been passed by the Bondholders in a Bondholders' Meeting, and any reference in any Finance Document to a Bondholders' Meeting shall be construed accordingly. (b) The person requesting a Bondholders' Meeting may instead request that the relevant matters are to be resolved by Written Resolution only, unless the Bond Trustee decides otherwise. (c) The Summons for the Written Resolution shall be sent to the Bondholders registered in the CSD at the time the Summons is sent from the CSD and published at the Bond Trustee's web site, or other relevant elechonic plaform or via press release. (d) The provisions set out in Clause l5.l (Authority of the Bondholders' Meeting), 15.2 (Procedure þr arcanging ø Bondholder's Meeting), Clause 15.3 (Yoting Rules) and Clause I5.4 (Repeated Bondholders' Meeting) shall apply mutatis mutandis to z Written Resolution, except that: (Ð the provisions set out in paragraphs (g), (h) and (i) of Clause 15.2 (Procedure for ørranging Bondholders Meetings); or xl+t /ã

85 (ið provisions which are otherwise in conflict with the requirements of this Clause (llritten Re s olution), shall not apply to a Written Resolution. (e) The Summons for a Written Resolution shall include; (i) instructions as to how to vote to each separate item in the Summons (including instructions as to how voting can be done electronically ifrelevant); and (ii) the time limit within which the Bond Trustee must have received all votes necessary in order for the rùvritten Resolution to be passed with the requisite majority (the "Voting Period"), such Voting Period to be at least three (3) Business Days but not more than fifteen (15) Business Days from the date of the Summons, provided however that the Voting Period for a Written Resolution summoned pursuant to Clause 15.4 (Repeated Bondholders' Meeling) shall be at least ten (10) Business Days but not more than fifteen (15) Business Days from the date of the Summons. (Ð Only Bondholders of Voting Bonds registered with the CSD on the Relevant Record Date, or the beneficial owner thereof having presented relevant evidence to the Bond Trustee pursuant to Clause 3.3 (Bondholders' ríghts), will be counted in the Written Resolution. (S) A Written Resolution is passed when the requisite majority set out in paragraph (e) or paragraph (f) of Clause 15.1 (Authority of Bondholders' Meeting) has been achieved, based on the total number of Voting Bonds, even if the Voting Period has not yet expired. A Written Resolution may also be resolved if the sufficient numbers of negative votes are received prior to the expiry of the Voting Period. (h) The effective date of a Written Resolution passed prior to the expiry of the Voting Period is the date when the resolution is approved by the last Bondholder that results in the necessary voting majority being achieved. (i) If no resolution is passed prior to the expiry of the Voting Period, the number of votes shall be calculated at the close of business on the last day of the Voting Period, and a decision will be made based on the quorum and majority requirements set out in paragraphs (d) to (Ð of Clause 15.l(Authority of Bondholders' Meeting) THE BOND TRUSTEE Power to represent the Bondholders (a) The Bond Trustee has power and authority to act on behalf of, and/or represent, the Bondholders in all matters, including but not limited to taking any legal or other action, including enforcement of these Bond Terms, and the commencement of bankruptcy or other insolvency proceedings against the Issuern or others. (b) The Issuer shall promptly upon request provide the Bond Trustee with any such documents, information and other assistance (in form and substanoe satisfactory to the lil4s %

86 Bond Trustee), that the Bond Trustee deems neaessary for the purpose of exercising its and the Bondholders' rights and/ot carrying out its duties under the Finance Documents. t6.2 The duties and authority of the Bond Trustee (a) The Bond Trustee shall represent the Bondholders in accordance with the Finance Documents, including, inter alia, by following up on the delivery of any Compliance Certificates and such other documents which the Issuer is obliged to disclose or deliver to the Bond Trustee pursuant to the Finance Documents ando when relevantn in relation to accelerating and enforcing the Bonds on behalf of the Bondholders. (b) The Bond Trustee is not obligated to assess or monitor the financial condition of the Issuer or any other Obligor untess to the extent expressly set out in these Bond Tenns, or to take any steps to ascertain whether any Event of Default has occurred. Until it has actual knowledge to the contrary, the Bond Trustee is entitled to assume that no Event of Default has occurred. The Bond Trustee is not responsible for the valid execution or enforceabilþ of the Finance Documents, or for any discrepancy between the indicative terms and conditions described in any marketing material presented to the Bondholders prior to issuance of the Bonds and the provisions of these Bond Terms. (c) The Bond Trustee is entitled to take such steps that it, in its sole discretion, considers necessary or advisable to protect the rights of the Bondholders in all matters pursuant to the terms of the Finance Documents. The Bond Trustee may submit any instructions received by it from the Bondholders to a Bondholders' Meeting before the Bond Trustee takes any action pursuant to the instruction. (d) The Bond Trustee is entitled to engage external experts when carrying out its duties under the Finance Documents. (e) The Bond Trustee shall hold all amounts recovered on behalf of the Bondholders on separated accounts. (Ð The Bond Trustee will ensure that resolutions passed at the Bondholders' Meeting are properþ implemented, provided, however, that the Bond Trustee may refuse to implement resolutions that may be in conflict with these Bond Terms, any other Finance Document, or any applicable law. (g) Notwithstanding any other provision of the Finance Documents to the contrary, the Bond Trustee is not obliged to do or omit to do anything if it would or might in its reasonable opinion constitute a breach of any law or regulation. (h) If the cos! loss or liabilþ which the Bond Trustee may incur (including reasonable fees payable to the Bond Trustee itself) in: (i) complying with instructions of the Bondholders; or (ii) taking any action at its own initiative, 3s/4s ø"

87 will no! in the reasonable opinion of the Bond Trustee, be covered by the Issuer or the relevant Bondholders pursuant to paragraphs (e) and (g) of Clause 16.4 (Expenses, liability ønd indemniþ), the Bond Trustee may refrain from acting in accordance with such instructions, or refrain from taking such action, until it has received such funding or indemnities (or adequate security has been provided therefore) as it may reasonably require. (Ð The Bond Trustee shall give a notice to the Bondholders before it ceases to perform its obligations under the Finance Documents by reason of the non-payment by the Issuer of any fee or indemnity due to the Bond Trustee under the Finance Documents. 0) The Bond Trustee may instruct the CSD to split the Bonds to a lower nominal amount in order to facilitate partial redemptions, restructuring of the Bonds or other situations Equaltty and conflicts of interest (a) The Bond Trustee shall not make decisions which will give certain Bondholders an unreasonable advantage at the expense ofother Bondholders. The Bond Trustee shall, when acting pursuant to the Finance Documents, act with regard only to the interests of the Bondholders and shall not be required to have regard to the interests or to act upon or comply with any direction or request of any other person, other than as explicitly stated in the Finance Documents. (b) The Bond Trustee may act as agent, trustee, representative and/or security agent for several bond issues relating to the Issuer notwithstanding potential conflicts of interest. The Bond Trustee is entitled to delegate its duties to other professional parties Expenses, liability and indemnity (a) The Bond Trustee will not be liable to the Bondholders for damage or loss caused by any action taken or omitted by it under or in connection with any Finance Dooument, unless directly caused by its gross negligence or wilful misconduct. The Bond Trustee shall not be responsible for any indirect or consequential loss. Irrespective of the foregoing, the Bond Trustee shall have no liability to the Bondholders for damage caused by the Bond Trustee acting in accordance with inshuctions given by the Bondholders in accordance with these Bond Terms. (b) Any liability for the Bond Trustee for damage or loss is limited to the amount of the Outsknding Bonds. The Bond Trustee is not liable for the content of information provided to the Bondholders by or on behalfofthe Issuer or any other p rson. (c) The Bond Trustee shall not be considered to have acted negligently in: (Ð acting in accordance with advice from or opinions of reputable external experts; or (ið taking, delaying or omitting any action if acting with reasonable care and provided the Bond Trustee considers that such action is in the interests of the Bondholders. ßl * Ø

88 (d) The Issuer is liable for, and will indemnify the Bond Trustee fully in respect of all losses, expenses and liabilities inourred by the Bond Trustee as a result of negligence by the Issuer (including its directors, management, offic rs, employees and agents) in connection with the performance of the Bond Trustee's obligations under the Finance Documents, including losses incurred by the Bond Trustee as a result of the Bond Trustee's aetions based on misrepresentations made by the Issuer in connection with the issuance of the Bonds, the entering into or performance under the Finance Documents, and for as long as any amounts are outstanding under or pursuant to the Finance Documents. (e) The Issuer shall cover all costs and expenses inourred by the Bond Trustee in connection with it fulfilling its obligations under the Finanoe Documents. The Bond Trustee is entitled to fees for its work and to be indemnified for costs, losses and liabilities on the terms set out in the Finance Documents. The Bond Trustee's obligations under the Finance Documents are conditioned upon the due payment of such fees and indemnifications. The fees of the Bond Trustee will be further set out in the Bond Trustee Fee Agreement. (Ð The Issuer shall on demand by the Bond Trustee pay all costs incurred for extemal experts engaged after the occurrence of an Event of Default, or fior the purpose of investigating or considering (i) an event or circumstance which the Bond Trustee reasonably believes is or may lead to an Event of Default or (ii) a matter relating to the Issuer or any of the Finance Documents which the Bond Trustee reasonably believes may constitute or lead to a breach of any of the Finance Documents or otherwise be detrimental to the interests of the Bondholders under the Finance Documents. G) Fees, costs and expenses payable to the Bond Trustee which are not reimbursed in any other way due to an Event of Default, the Issuer being Insolvent or similar circumstances pertaining to any Obligors, may be covered by making an equal reduction in the proceeds to the Bondholders hereunder of any costs and expenses incuned by the Bond Trustee (or the Security Agent) in connection therewith. The Bond Trustee mây withhold funds from any escrow account (or similar arrangement) or from other funds received from the Issuer or any other person, irrespective of such funds being subject to Transaction Security, and to set-off and cover any such costs and expenses from those funds. (h) As a condition to effecting any instruction from the Bondholders (including, but not limited to, instructions set out in Clause 14.3 (Bondholders' instructions) or Clause 75.2 (Procedure þr ananging a Bondholders' Meeting\), the Bond Trustee rnay require satisfaotory Security, guarantees and/or indemnities for any possible liability and anticipated costs and expenses from those Bondholders who have given that instruction and/or who voted in favour of the decision to instruct the Bond Trustee Replacement of the Bond Trustee (a) The Bond Trustee may be replaced according to the procedures set out in Clause 15 (Bondholders' Decisions), and the Bondholders may resolve to replace the Bond Tnrstee without the lssueros approval. +oltt Ø( /4y'

89 (b) The Bond Trustee may resign by giving noticc to the Issuer and the Bondholders, in which case a successor Bond Trustee shall be elected pursuant to this Clause 16.5 (Replacement of the Bond Trustee), initiated by the retiring Bond Trustee. (c) If the Bond Trustee is Insolvent, or othenvise is permanently unable to fulfil its obligations under these Bond Terms, the Bond Trustee shall be deemed to have resigned and a successor Bond Trustee shall be appointed in accordance with this Clause 16.5 (Repløcement of the Bond Trustee).The Issuer may appoint a temporary Bond Trustee until a new Bond Trustee is elected in ccordance with paragraph (a) above. (d) The change of Bond Trustee's shall only take effect upon execution of all necessary actions to effectively substitute the retiring Bond Trustee, and the retiring Bond Trustee undertakes to co-operate in all reasonable manners without delay to such effect. The retiring Bond Trustee shall be discharged from any further obligation in respect of the Finance Documents from the change takes effect, but sh ll remain liable under the Finance Documents in respect of any action which it took or failed to take whilst acting as Bond Trustee. The retiring Bond Trustee remains entitled to any benefits and any unpaid fees or expenses under the Finance Documents before the change has taken place, (e) Upon change of Bond Trustee the Issuer shall co-operate in all reasonable manners without delay to replace the retiring Bond Trustee with the successor Bond Trustee and release the retiring Bond Trustee from any future obligations under the Finance Documents and any other doouments. t6,6 Security Agent (a) The Bond Trustee is appointed to act as Security Agent for the Bonds, unless any other person is appointed. The main functions of the Security Agent may include holding Transaction Security on behalf of the Secured Parties and monitoring compliance by the Issuer and other relevant parties of their respective obligations under the Transaction Securþ Documents with respect to the Transaction Securþ on the basis of information made available to it pursuant to the Finance Documents. (b) The Bond Trustee shall, when acting as Security Agent for the Bonds, at all times maintain and keep all certifioates and other documents received by it, that are bearers of right relating to the Transaction Security in safe custody on behalf of the Bondholders. The Bond Trustee shall not be responsible for or required to insure against any loss incurred in connection with such safe custody. (c) Before the appointment of a Security Agent other than the Bond Trustee, the Issuer shall be given the opportunity to state its views on the proposed Security Agent, but the final decision as to appoinünent shall lie exclusively with the Bond Trustee. (d) The functions, rights and obligations of the Security Agent may be determined by a Security Agent Agreement to be entered into between the Bond Trustee and the Security Agent, which the Bond Trustee shall have the right to require the Issuer and any other party to a Finance Document to sign as a paly, oro at the discretion of the rlqs %

90 Bond Trustee, to acknowledge. The Bond Trustee shall at all times retain the right to instruct the Security Agent in all matters, whether or not e separate Security Agent Agreement has been entered into. (e) The provisions set out in Clause 16.4 (Expenses, líability and indemniry) shall apply mutatis mutandis to any expenses and liabilities of the Security Agent in connection with the Finance Documents. 17. t7,t AMENDMENTS AND WAIVERS Procedure for amendments and waivers (a) The Issuer and the Bond Trustee (acting on bohalf of the Bondholders) may agree to amend the Finance Documents or waive a past default or anticipated failure to comply with any provision in a Finance Documen! provided that: (i) such amendment or waiver is not detrimental to the rights and benefits of the Bondholders in any material respeot, or is made solely for the purpose of rectiffing obvious errors and mistakes; or (ii) such amendment or waiver is required by applicable law, a court ruling or a decision by a relevant authority; or (iii) such amendment or waiver has been duly approved by the Bondholders in accordance with Clause 15 (Bondholders' Decisions), (b) Any changes to these Bond Terms necessary or appropriate in connection with the appointment of a Security Agent other than the Bond Trustee shall be documented in an amendment to these Bond Terms, signed by the Bond Trustee (in its discretion). If so desired by the Bond Trustee, any or all of the Transaction Security Documents shall bo amended, assigned or re-issued, so that the Security Agent is the holder of the relevant Security (on behalf of the Bondholders). The costs incurred in connection with such amendment, assignment or re-issue shall be for the account of the Issuer t7.3 Authority with respect to documentetion If the Bondholders have resolved the substance of an amendment to any Finance Document, without resolving on the specific or final form of such amendment, the Bond Trustee shall be considered authorised to draft, approve and/or finalise (as applicable) any required documentation or any outstanding matters in such documentation without any further approvals or involvement from the Bondholders being required. Notification of amendments or waivers The Bond Trustee shall as soon as possible notif, the Bondholders of any amendments or waivers made in accordance with this Clause 17 (Amendments and waívers), setting out the date from which the amendment or waiver will be effective, unless such notice obviously is unnecessary. The Issuer shall ensure that any amendment to these Bond Terms is duly registered with the CSD. +zhs %ç

91 MISCELLAI\IEOUS Limitstion of claims All claims under the Finance Documents for payment, including interest and prinoipal, will be subject to the legislation regarding time-bar provisions of the Relevant Jurisdiction. Access to information (a) These Bond Terms will be made available to the public and copies may be obtained from the Bond Trustee or the Issuer. The Bond Trustee will not have any obligation to distribute any other information to the Bondholders or any other person, and the Bondholders have no right to obtain information from the Bond Trustee, other than as explicitly stated in these Bond Terms or pursuant to statutory provisions of law. (b) In order to carry out its functions and obligations under these Bond Terms, the Bond Trustec will have access to the relevant information regarding ownership of the Bonds, as recorded and regutated with the CSD. (c) The information referred to in paragraph (b) above may only be used for the purposes of carrying out their duties and exercising their rights in accordance with the Finance Documents and shall not disclose such information to any Bondholder or third pafy unless necessary for such purposes Notices, contact information Written notices to the Bondholders made by the Bond Trustee will be sent to the Bondholders via the CSD with a copy to the Issuer and the Exchange (if the Bonds are listed). Any such notice or communication will be deemed to be given or made via the CSD, when sent from the CSD. (a) The Issuer's written notifïcations to the Bondholders will be sent to the Bondholders via the Bond Trustee or through the CSD with a copy to the Bond Trustee and the Exchange (if the Bonds are listed). (b) Unless otherwise specifically provided, all notices or other communications under or in connection with these Bond Terms between the Bond Trustee and the Issuer will be given or made in writing, by letter, or fax. Any such notice or communication will be deemed to be given or made as follows: (Ð if by letter, when delivered at the address of the relevant parly; (ið if by , when received; and (iid if by fa when received. (c) The Issuer and the Bond Trustee shall each ensure that the other party is kept informed of changes in postal address, address, telephone and fax numbers and contact persons. (d) When determining deadlines set out in these Bond Terms, the following will apply (unless otherwise stated) : qtl+a 7s

92 (D if the deadline is set out in days, the first day of the relevant period will not be included and the last day of the relevant period will be included; (ið if the deadline is set out in weeks, months or years, the deadline will end on thê day in the last week or the last month which, according to its name or number, corresponds to the first day the deadline is in force. If such day is not a part ofan actual month, the deadline will be the last day of such month; and (iii) if a deadline ends on a day which is not a Business Day, the deadline is postponed to the next Business Day Defeasance (a) Subjectto paragraph (b) below and provided that: (D an amount sufficient for the payment of principal and interest on the Outstanding Bonds to the Maturity Date (including, to the extent applicable, any premium payable upon exercise of the Call Option), and always subject to paragraph (c) below (the "Defeasance Amount") is credited by the Issuer to an account in a financial institution acceptable to the Bond Trustee (the "I)efe sance Account'); (ii) the Defeasance Account is irrevocably pledged and blocked in favour of the Bond Trustee on such terms as the Bond Trustee shall request (the "Defeasance Pledge"); and (iið the Bond Trustee has received such legal opinions and statements reasonably required by it, including (but not necessarily limited to) with respect to the validþ and enforceability of the Defeasance Pledge, then; (A) the Issuer will be relieved from its obligations under Clause 12.2 (Requirements as to Financial Reports) paragraph (a), Clause 12.3 (Put Option Event), Clause 12.4 (Informatíon: Miscellaneous) and Clause 13 (General and financ ial undertakings); and (B) any Transaction Securþ shall be released and the Defeasance Pledge shall be considered replacement of the Transaction Securþ. (b) The Bond Truste shall be authorised to apply any amount credited to the Defeasance Account towards any amount payable by the Issuer under any Finance Document on the due date for the relevant payment until all obligations of the Issuer and all amounts outstanding under the Finance Documents are repaid and discharged in full. (c) The Bond Trustee may, if the Defeasance Amount cannot be finally and conclusively determined, deoide the amount to be deposited to the Defeasance Account in its discretion, applying such buffer amount as it deems required. A defeasance established according to this Clause 18.4 may not be reversed. 44/4s %

93 , COVERNINC LA}V AIIID JT]RISDICTION Governing law These Bond Terms are governed by the laws of the Relevant Jurisdiction, without regard to its conflict of law provisions. Main jurisdiction The Bond Trustee and the Issuer agree for the benefit of the Bond Trustee and the Bondholders that the City Court of the capital of the Relevant Jurisdiction shall have jurisdiction with respect to any dispute arising out of or in connection with these Bond Terms, The Issuer agrees for the benefit of the Bond Trustee and the Bondholders that any legal action or proceedings arising out of or in connection with these Bond Terms against the Issuer or any of its assets may be brought in such court. Alternative j urisdiction Clause 19 (Governìng law and jwisdictíon) is for the exclusive benefit of the Bond Trustee and the Bondholders and the Bond Trustee have the right: (a) to commence proceedings against the Issuer or any of its assets in any court in any jurisdiction; and (b) to commence such proceedings, including enforcement proceedings, in any competent jurisdiction conourrently ts/ts %

94 These Bond Terms have beçn executed in two originals, of whish the Issuer and tho Bond Trustee shall retain one each. SIGNATTJRES: Ilavilafiord AS as Issuer Nordic Trustee AS as Bond Trustee and Sacurity Agent: By: Vhlr,* 'PgR Set)ìk posirion: t ù*,b n By: Position: Lars Erik Lærum q6l+s

95 SCHEDULE 1 COMPLIANCE CERTIFICATE Idate] Havita{iord AS FRN senior secured open bond issue 2018/2023ISIN NO We refer to the Bond Terms for the above captioned Bonds made between Nordic Trustee AS as Bond Trustee on behalf of the Bondholders and the undersigned as Issuer. Pursuant to Clause I2.2 (a) of the Bond Terms a Compliance Certificate shall be issued in connection with each delivery of Financial Statements to the Bond Trustee. This letter constitutes the Compliance Certificate for the period [o] Capitalised terms used herein will have the same meaning as in the Bond Terms. With reference to Clause I2.2 (Requirements as to Financial Reports) we hereby certifu that all information delivered under cover of this Compliance Certificate is true and accurate and there has been no material adverse change to the financial condition of the Issuer since the date of the last accounts or the last Compliance Certificate submitted to you. Copies of our latest consolidated ffinancial Statements] / flnterim Accounts] are enclosed. [The Financial Covenants set out in Clause (Financial Covenants and Incurrence Test) are met, please see the calculations and figures in respect of the ratios attached hereto.] We confirm that, to the best of our knowledge, no Event of Default has occurred or is likely to occur Yours faithfully, Havilafiord AS Name of authorised person Enclosure: Financial Statements; [and any other written documentationj 471 4s

96 SCHEDULE 2 RELAASE NOTICE - ESCROW ACCOUNT ldatel Dear Sirs, Havilafjord AS FRN senior secured open bond issue 2018/2023ISIN NO We refer to the Bond Terms for the above captioned Bonds made between Nordic Trustee AS as Bond Trustee on behalfofthe Bondholders and the undersigned as Issuer. Capitalised terms used herein will have the same meaning as in the Bond Terms. We hereby give you notice that we on [date] wish to draw an amount of [cunency and amount] from the Escrow Account applied pursuant to the purpose set out in the Bond Terms, and request you to instruct the bank to release the above mentioned amount. We hereby represent and warrant that (i) no Event of Default has occurred and is continuing or is likely to occur as a result of the release from the Escrow Account, (ii) no indebtedness, security or guarantees exist (save for as Permitted Security or Permitted Financial Indebtedness), and (iii) we repeat the representations and warranties set out in the Bond Terms as being still true and accurate in all material respects at the date hereof. Yours faithfully, Havilafiord AS Name of authorized person Enclosure: [copy of any written documentation evidencing the use of funds] 4sl4s

97 Appendix 2 Havilafjord AS Konsernregnskap 2017

98 Konsolidert resultatregnskap Beløp i NOK 1,000 Note Salgsinntekt 4, Annen driftsinntekt 4,6, Sum driftsinntekt Varekostnad 17 ( ) (76 586) Lønn og sosiale kostnader 7,14,18 ( ) ( ) Annen driftskostnad 8,16 ( ) ( ) Sum driftskostnader ( ) ( ) Andel av resultat fra tilknyttet virksomhet Gevinst ved oppkjøp tilknyttet virksomhet Gevinst fra kjøp på gunstige vilkår Driftsresultat før avskrivninger og nedskrivninger (EBITDA) Ordinære avskrivninger 10,11 ( ) ( ) Driftsresultat (EBIT) Andel av resultat fra tilknyttet virksomhet Renteinntekt Rentekostnad 12 ( ) (44 854) Andre finansposter, netto Netto finansinntekter / (kostnader) (82 075) Ordinært resultat før skattekostnad Skattekostnad på ordinært resultat 9 (33 705) (3 724) Årsresultat Tilordnet: Aksjonærene i morselskapet Ikke kontrollerende eierinteresser

99 Utvidet konsolidert resultatregnskap Beløp i NOK 1,000 Note Årsresultat Utvidet resultat: Poster som ikke reklassifiseres til resultatet: Andel av utvidet resultat for tilknyttet virksomhet bokført etter egenkapitalmetoden 5 (3 059) Aktuarmessige tap på pensjonsforpliktelser før skatt 14 (4 745) Sum (7 804) Sum andre inntekter og kostnader før skatt (7 804) Årets totalresultat Tilordnet: Aksjonærene i morselskapet Ikke kontrollerende eierinteresser

100 Konsolidert balanse Beløp i NOK 1,000 Note Eiendeler Anleggsmidler Utsatt skattefordel Kontrakter ferger 2, Fartøy, eiendom o.l Investeringer i tilknyttet virksomhet Lån til foretak i samme konsern Andre langsiktige eiendeler Sum anleggsmidler Omløpsmidler Varelager Kundefordringer 12, Andre kortsiktige fordringer Bankinnskudd Sum omløpsmidler Sum eiendeler Egenkapital og gjeld Egenkapital Aksjekapital Overkurs Annen innskutt egenkapital Opptjent egenkapital Egenkapital tilordnet morselskapets aksjonærer Ikke kontrollerende eierinteresser Total egenkapital Langsiktig gjeld Gjeld til kredittinstitusjoner Finansielle derivater Pensjonsforpliktelser Utsatt skatt Annen langsiktig gjeld Sum langsiktig gjeld Kortsiktig gjeld Gjeld til kredittinstitusjoner Leverandørgjeld 12, Finansielle derivater Betalbar skatt Skyldige offentlige avgifter Annen kortsiktig gjeld Sum kortsiktig gjeld Sum gjeld Sum egenkapital og gjeld

101 Konsolidert oppstilling av endringer i egenkapital Egenkapital tilordnet morselskapets aksjonærer Beløp i NOK 1,000 Aksjekapital Overkurs Annen innskutt egenkapital Opptjent egenkapital Sum IKE* Sum egenkapital Egenkapital Årsresultat Andre inntekter og kostnader Totalresultat Ikke kontrollerende eierinteresser fra virksomhetssammenslutninger Utbytte 0 0 Transaksjoner med eierne Egenkapital Egenkapital Årsresultat Andre inntekter og kostnader Totalresultat Endring i eierandel i datterselskaper som ikke medfører opphør av kontroll Utbytte Transaksjoner med eierne Egenkapital *Ikke kontrollerende eierinteresser

102 Konsolidert kontantstrømoppstilling Beløp i NOK 1,000 Note Kontantstrøm fra operasjonelle aktiviteter Resultat før skatt Justert for: Avskrivninger og nedskrivninger 10, Netto rentekostnader Endring i virkelig verdi av finansielle instrumenter 12 (26 424) (23 175) Gevinst ved kjøp på gunstige vilkår 2 ( ) Endring i pensjonsforpliktelser Gevinst/tap ved salg av anleggsmidler (4 713) (1 573) Resultat fra investering i tilknyttet virksomhet (63 604) ( ) Arbeidskapitaljusteringer: Kundefordringer 12 (7 439) (3 539) Varer (1 818) (2 037) Leverandørgjeld Andre tidsavgrensningsposter Kontantstrøm fra operasjonelle aktiviteter Utbetalt rentekostnad ( ) (44 854) Innbetalt renteinntekt Betalt skatt (2 675) Netto kontantstrøm fra operasjonelle aktiviteter Kontantstrøm fra investeringsaktiviteter Investeringer i varige driftsmidler 10 ( ) ( ) Utbetaling ved kjøp av aksjer og andeler fratrukket kontanter i oppkjøpt datterselskap 2 ( ) Innbetaling av utbytte fra tilknyttet virksomhet Innbetaling fra lån til foretak i samme konsern Utbetaling fra lån til foretak i samme konsern ( ) Innbetaling ved salg av varige driftsmidler Netto innbetaling fra langsiktige forpliktelser (178) Netto kontantstrøm fra investeringsaktiviteter ( ) ( ) Kontantstrøm fra finansieringsaktiviteter Innbetaling fra opptak av ny gjeld Innbetaling ved nedsalg Fjord1 ASA Nedbetaling av gjeld 12 ( ) (53 479) Utbetalt utbytte ( ) Netto kontantstrøm fra finansieringsaktiviteter ( ) Netto endring i kontanter og kontantekvivalenter (64 765) Kontanter og kontantekvivalenter ved begynnelsen av perioden Kontanter og kontantekvivalenter ved periodeslutt

103 Note 1 Regnskapsprinsipper Generell informasjon Havilafjord konsernet består i hovedsak av aktiviteten i datterselskapet Fjord1 ASA. Fjord1 konsernet sin kjernevirksomhet er konsentrert rundt sjøtransport gjennom drift av ferger og ekspressbåter, i tillegg til cateringvirksomhet ombord på båtene. Havilafjord AS har forretningskontor i Herøy kommune og selskapet leier lokaler i basebygget på Mjølstadneset, 6090 Fosnavåg. Utarbeidelse av regnskap Det konsoliderte regnskapet for Havilafjord AS for 2017 er utarbeidet i samsvar med International Financial Reporting Standards (IFRS). Fortsatt drift Det konsoliderte konsernregnskapet er utarbeidet under forutsetning om fortsatt drift. Ledelsen har vurdert all tilgjengelig informasjon om fremtiden når de har vurdert fortsatt drift, inkludert informasjon knyttet til kontantstrøm fra eksisterende fergekontrakter og andre servicekontrakter, avdrag på gjeld og forpliktelser knyttet til nybyggskontrakter. Prognosene har tatt høyde for forventet fremtidig inntekt fra anlegg under utvikling. Basert på disse forutsetningene har ledelsen en fornuftig forventning om at konsernet har tilstrekkelige ressurser til å drive virksomheten videre i overskuelig fremtid. Grunnlag for måling Det konsoliderte regnskapet er utarbeidet med utgangspunkt i historisk kost, med unntak av finansielle eiendeler tilgjengelig for salg og finansielle derivater, som er verdsatt til verkelig verdi. Utarbeidelse av regnskapet i tråd med IFRS krever bruk av enkelte vesentlige regnskapsestimater. Det kreves også at ledelsen utøver skjønn når de legger til grunn konsernets regnskapsprinsipper. I note 3 er det fremlagt en oversikt over områdene som i høyere grad krever skjønn samt områder som er mer komplekse. Oversikten inkluderer også områder der forutsetninger og estimater er vesentlige for det konsoliderte regnskapet. Nye standarder, tillegg og tolkninger utstedt, men ikke gjeldende for regnskapsåret 2017, som ikke er tatt hensyn til i det konsoliderte regnskapet Det har blitt publisert flere nye regnskapsstandarder og tolkninger, som ikke er obligatoriske for regnskapsåret 2017, som konsernet ikke har tatt hensyn til i regnskapet. Nedenfor følger konsernet sine vurderinger av effekten av de nye standardene og tolkningene. IFRS 9 Finansielle instrumenter International Accounting Standards Board offentliggjorde i juli 2014 den endelige versjonen av IFRS 9, som ble godkjent av European Financial Reporting Advisory Group den 28. november IFRS 9 er gjeldende for regnskapsår som starter på eller etter 1. januar 2018, men det er også tillatt å ta i bruk standarden tidligere. Standarden erstatter de delene av IAS 39 som omhandler klassifisering og måling av finansielle instrumenter. IFRS 9 introduserer nye regler for sikringsbokføring og en ny modell for nedskriving av finansielle eiendeler. IFRS 9 inneholder tre kategorier for klassifisering av finansielle eiendeler; (i) verdsatt til amortisert kost, (ii) virkelig verdi over utvidet resultat og (iii) virkelig verdi over ordinært resultat. På denne måten eliminerer standarden de eksisterende IAS 39 kategoriene holdt til forfall, lån og fordringer og tilgjengelig for salg. Konsernet har gjort en vurdering av sine finansielle eiendeler og forpliktelser og forventer ikke at den nye standarden skal påvirke klassifiseringen og målingen av disse. Den nye nedskrivningsmodellen krever nedskrivninger basert på forventet tap i motsetning til dagens standard (IAS 39) som krever nedskrivning først når tapshendelsen faktisk har inntruffet. Den nye standarden omfatter finansielle eiendeler verdsatt til amortisert kost, finansielle forpliktelser målt til virkelig verdi over utvidet resultat, kontraktsrelaterte eiendeler under IFRS 15 Inntekt fra kontrakter med kunder, leierelaterte fordringer, forpliktelser knyttet til lån og enkelte finansielle garantikontrakter. Konsernet har vurdert effekten dette vil ha for regnskapet og forventer ikke at dette vil ha vesentlig påvirkning på avsetning for tap. Den nye standarden introduserer også utvidede krav til noteopplysninger og endring i presentasjon. Dette er ventet å endre omfanget av konsernets opplysninger om dets finansielle instrumenter, spesielt i året den nye standarden implementeres. Konsernet vil innføre IFRS 9 med tilbakevirkende kraft fra 1. januar 2018, med de praktiske forenklinger standarden tillater. Sammenligningstall for 2017 vil ikke bli omarbeidet. IFRS 15 Inntekt fra kontrakter med kunder Standarden erstatter IAS 18 og IAS 11 og etablerer prinsipper for rapportering av hensiktsmessig informasjon til brukerne av regnskapet angående karakter, beløp, tidfesting og usikkerhet knyttet til inntekter og kontantstrømmer som stammer fra selskapets kontrakter med kunder. Standarden er basert på prinsippet om at inntekter skal registreres når kontroll av varen eller tjenesten er overført til kunden. På denne måten erstatter kontroll den nåverende praksis med overføring av risiko. Inntekt bokføres når kunden oppnår kontroll over en vare eller tjeneste og på denne måten har mulighet til å utnytte fordelene knyttet til varen eller tjenesten. Standarden ble godkjent av EU i oktober 2016 og får effekt fra 1. januar Ledelsen har vurdert effekten denne standarden vil ha på konsernregnskapet. Konsernet forventer ikke at standarden vil føre til vesentlige endringer.

104 IFRS 16 Leieeavtaler IFRS 16 ble offentliggjort i januar Effekten av den nye standarden er at stort sett alle leieavtaler vil bli synliggjort i balansen, da skillet mellom finansielle og operasjonelle leieavtaler fjernes. Den nye standarden legger opp til at en eiendel (rett til å bruke det leasede driftsmiddelet) og en finansiell forplikelse til å betale leie over tid, blir synliggjort i balansen. De eneste unntakene er korttidsavtaler og leieavtaler med lav verdi. Regnskapsføringen for utleier vil ikke endre seg vesentleg. Standarden vil i hovedsak påvirke konsernet sine operasjonelle leieavtaler. På balansedagen har konsernet uoppsigelige leieavtaleforpliktelser på NOK 61.3 millioner, se note 15. Hvorvidt disse forpliktelsene vil resultere i balanseføring av eiendeler og forpliktelser, og hvordan dette vil påvirke konsernet sitt resultat og kontantstrøm er det enda ikke konkludert på. Noen av forpliktelsene kan muligens være dekket av unntakene knyttet til korttidsavtaler og leieavtaler med lav verdi og noen av forpliktelsene kan være knyttet til leieavtaler som ikke er omfattet av IFRS 16. Standarden trer i kraft for regnskapsperioder som begynner på eller etter 1. januar Konsernet har per i dag ingen planer om å ta hensyn til standarden før dette. Prinsipp for konsolidering og egenkapitalmetoden Datterselskap (i) Datterselskap er definert som alle enheter (inkludert deltakerlignende selskap) som er kontrollert av konsernet. Konsernet har kontroll over en enhet der det har direkte eller indirekte bestemmende innflytelse over den finansielle og operasjonelle styringen av enheten og dermed oppnår fordeler fra sin involvering i enheten. Datterselskap blir inkludert i konsernregnskapet fra kontrolltidspunktet, og tilsvarende tatt ut av konsernet på det tidspunktet kontrollen opphører. Kjøp av datterselskap blir regnskapsført etter oppkjøpsmetoden. Konserninterne transaksjoner, mellomværende og urealisert gevinst på transaksjoner mellom konsernselskap elimineres. Urealiserte tap blir også eliminert, dersom transaksjonen ikke blir sett på som et bevis på at eiendelen som blir solgt burde ha vært nedskrevet. Regnskapsprinsipp hos datterselskap blir omarbeidet i den grad dette er nødvendig for å oppnå samsvar med regnskapsprinsipp i konsernregnskapet. Ikke kontrollerende eierinteresser sin andel av resultat og egenkapital til datterselskap er skilt ut i det konsoliderte resultatregnskapet, det konsoliderte totalresultatet, oversikten over endringer i egenkapitalen og i den konsoliderte balanseoppstillingen. (ii) Tilknyttede selskaper Tilknyttede selskaper er selskaper der konsernet har betydelig innflytelse, men ikke kontroll. Betydelig innflytelse er normalt tilfelle når konsernet har mellom 20% og 50% av stemmerettighetene. Investeringer i tilknyttede selskaper er bokført etter egenkapitalmetoden (se (iii) nedenfor), etter opprinnelig å ha blitt bokført til anskaffelseskost. (iii) Egenkapitalmetoden Ved bruk av egenkapitalmetoden blir eierinteressen opprinnelig innregnet til anskaffelseskost. Deretter blir det balanseførte beløpet regulert for å innregne konsernets andel av resultat etter kjøpet, samt andel av utvidet resultat. Utbytte mottatt fra investeringer ført etter egenkapitalmetoden blir ført som reduksjon i den bokførte verdien av investeringen. Når konsernet sin andel av tap i en investering målt etter egenkapitalmetoden overstiger balanseført beløp, inkludert andre langsiktige investeringer som i realiteten er en del av konsernet sin nettoinvestering i virksomheten, blir ikke ytterligere tap beregnet med mindre det er pådratt forpliktelser eller gjennomført utbetalinger på vegne av virksomhetene. Urealiserte gevinst på transaksjoner mellom konsernet og konsernet sine investeringer målt etter egenkapitalmetoden elimineres i samsvar med eierandelen i selskapet. Urealiserte tap blir også eliminert med mindre transaksjonen gir bevis for et verdifall på den overførte eiendelen. Rapporterte tall fra virksomheter ført etter egenkapitalmetoden blir omarbeidet om nødvendig for å sikre samsvar med regnskapsprinsippene til konsernet. Bokført verdi av investeringer bokført etter egenkapitalmetoden blir testet for nedskriving i tråd med prinsippene beskrevet i avsnittet "nedskriving av eiendeler". (iv) Endring i eierskap Transaksjoner med ikke kontrollerende eiere i datterselskap som ikke medfører tap av kontroll behandles som egenkapitaltransaksjoner. Forskjellen mellom virkelig verdi av vederlaget og aksjene sin forholdsmessige andel av balanseført verdi av nettoeiendeler i datterselskap, føres mot konsolidert oppstilling av endring i egenkapitalen. Gevinst eller tap ved salg til ikke kontrollerende eiere blir tilsvarende ført mot konsolidert oppstilling av endringer i egenkapitalen. Når konsernet slutter å konsolidere eller å bokføre en eierinteresse etter egenkapitalmetoden som følge av at en ikke lenger har kontroll, delt kontroll eller vesentlig innflytelse, blir enhver resterende investering målt til virkelig verdi og endringen i bokført verdi resultatføres. Den virkelige verdien blir sett på som anskaffelseskost for senere regnskapsformål.

105 Dersom det tidligere har vært bokført andre gevinster eller tap knyttet til investeringen, blir disse behandlet som om konsernet hadde kvittet seg med de aktuelle eiendelene eller forpliktelsense. Dette betyr at beløp som tidligere har blitt ført mot utvidet resultat reklassifiseres og føres i det ordinære resultatregnskapet. Dersom eierandeler i en felleskontrollert virksomhet eller et tilknyttet selskap reduseres, men delt kontroll eller vesentlig innflytelse er opprettholdt, blir bare en forholdsmessig del av beløpet tidligere ført mot utvidet resultat reklassifisert og ført i det ordinære resultatregnskapet. Segmentrapportering Driftssegment rapporteres på samme måte som ved intern rapportering til konsernets øverste beslutningstaker. Styret i Havilafjord AS har blitt definert som konsernets øverste beslutningstaker. Omregning av utanlandsk valuta Funksjonell valuta og presentasjonsvaluta Elementer inkludert i regnskapene for alle enheter i konsernet måles basert på valutaen innenfor det primære økonomiske miljøet den aktuelle enheten opererer i (funksjonell valuta). Det konsoliderte konsernregnskapet blir utarbeidet på norsk, og norske kroner er Havilafjord AS sin funksjonelle valuta og presentasjonsvaluta. Transaksjoner og mellomværende Transaksjoner i utenlandsk valuta regnes om til funksjonell valuta ved bruk av valutakurs på tidspunktet for transaksjonen. Gevinst og tap ved oppgjøret av slike transaksjoner og fra omregning av balanseposter i utenlandsk valuta ved periodeslutt, blir ført som finansposter i det ordinære resultatregnskapet. Om de knytter seg til kvalifiserte netto investeringer eller kan tilskrives en del av nettoinvesteringen i en utenlandsk virksomhet, blir de utsatt som reserve over utvidet resultat. Gevinst eller tap relatert til omregning av lån fra kredittinstitusjoner føres som finansposter i det ordinære resultatregnskapet. Alle andre gevinster og tap som følge av omregning av utenlandsk valuta blir også ført i det ordinære resultatregnskapet. Ikke monetære poster som er verdsatt til virkelig verdi i utenlandsk valuta regnes om ved bruk av valutakurs på det tidspunktet den virkelige verdien ble fastsatt. Omregningsdifferanser på eiendeler og gjeld verdsatt til virkelig verdi er presentert som del av gevinst eller tap på virkelig verdi. For eksempel blir omregningsdifferanser på ikkemonetære eiendeler og gjeld som aksjer verdsatt til virkelig verdi over resultatet, presentert som gevinst eller tap i det ordinære regnskapet, mens omregningsdifferanser på ikke monetære eiendeler som aksjer klassifisert som holdt for salg er ført mot utvidet resultat. Prinsipp for inntektsføring Inntekt regnskapsføres til virkelig verdi av mottatt vederlag. Presentert inntekt er etter fratrekk for rabatter og beløp innkrevd på vegne av tredjeparter. Konsernet innregner inntekt når inntekten kan måles pålitelig, når det er sannsynlig at det vil tilkomme en strøm av fremtidige økonomiske fordeler til enheten og spesifikke kriterier er møtt for hver av konsernet sine aktiviteter, som beskrevet nedenfor. Konsernet baserer sine estimater på historisk resultat, etter at det er tatt høyde for type kunde, type transaksjon og de spesifikke detaljene knyttet til hver avtale. Konsernet sine spesifikke regnskapsprinsipper for hovedtypene av inntekter er som følger: i) Varesalg: Ved salg fra cateringservice om bord i fergene innregnes inntekten når varen er solgt til kunden. ii) Billettsalg: Billettinntekter innregnes når billetten er solgt til kunden. For forskuddsbetalte verdikort blir innregning utsatt og innregnet når kortet blir brukt. Offentlige kontrakter Offentlige tilskudd innregnes til virkeleg verdi når det er rimeleg sikkerhet for at tilskuddet vil bli utdelt og konsernet vil overholde alle forutsetninger. Note 6 gir ytterligere informasjon rundt konsernet sin behandling av offentlige tilskudd. Betalbar skatt og utsatt inntektsskatt Skattekostnaden i perioden består av perioden sin betalbare skatt basert på aktuell skattesats, justert for endringer i utsatte skattefordeler og utsatt skatt som følge av midlertidige forskjeller og ubenyttet skattemessige underskudd. Skattekostnaden er beregnet i samsvar med de skattemessige lover og regler som er fastsatt, eller i hovedsak fastsatt, på balansedagen av skattemyndighetene i de landene hvor konsernet sine datterselskap og tilknyttede virksomheter opererer og genererer skattemessig inntekt. Ledelsen evaluerer skatteposisjonene i konsernet hver periode, hensyntatt situasjoner der gjeldende skattelover er gjenstand for fortolking, og avsetter for forventede skattebetalinger. Det beregnes utsatt skatt på alle midlertidige forskjeller mellom skattemessige og konsoliderte regnskapsmessige verdier på eiendeler og gjeld, ved bruk av gjeldsmetoden. Likevel blir det ikke bokført utsatt skatt dersom den stammer fra den opprinnelige verdsettelsen av goodwill. Utsatt skatt føres helles ikke dersom den stammer fra opprinnelig verdsettelse av en eiendel eller en forpliktelse i en transaksjon som ikke er en sammenslåelse, som på transaksjonstidspunktet verken påvirker skattemessig eller regnskapsmessig resultat.

106 Utsatt skatt/skattefordel versettes ved bruk av de skattesatser (og lover) som er vedtatt eller hovedsakelig vedtatt ved utgangen av rapporteringsperioden, og som er forventet å være gjeldende på det tidspunkt den utsatte skattefordelen blir realisert eller den utsatte skatten blir gjort opp. Utsatt skattefordel balanseføres i den grad det er sannsynlig at det vil oppstå framtidig skattbar inntekt, og at de midlertidige forskjellene kan trekkes fra inntekten. Leieavtaler Leie av driftsmidler der konsernet, som leietaker, har en vesentlig del av risiko og avkastning knyttet til eiendelen, klassifiseres som finansielle leieavtaler. Leieavtaler der en vesentlig del av risiko og avkasting knyttet til eierskap fremdeles ligger hos utleier, klassifiseres som operasjonelle leieavtaler. Leiekostnader ved operasjonelle leieavtaler (med fradrag for eventuelle økonomiske insentiv fra utleier) kostnadsføres lineært over leieperioden. Leieinntekter fra operasjonelle leieavtaler der konsernet er utleier inntektsføres lineært over lengden på leieavtalen. De tilhørende eiendelene balanseføres og klassifiseres i samsvar med de iboende egenskapene til eiendelen. Nedskriving av eiendeler Goodwill og immaterielle eiendeler med uavgrenset levetid avskrives ikke og blir årlig testet for nedskriving. Testene skjer oftere dersom hendelser eller endringer i omstendigheter indikerer at det kan være et nedskrivingsbehov. Andre eiendeler testes for nedskriving når omstendighetene indikerer at bokført verdi ikke er høyere enn gjenvinnbart beløp. Nedskrivingstapet består av forskjellen mellom bokført beløp og gjenvinnbart beløp. Gjenvinnbart beløp er det høyeste av en eiendel sin virkelige verdi fratrukket salgskostnader og bruksverdien av eiendelen. For vurdering av nedskrivning, grupperes eiendelene i det laveste nivået av kontantgenererende enhet med identifiserbare kontantstrømmer som er uavhengig av kontantstrømmer fra andre eiendeler eller grupper av eiendeler. For ikke finansielle eiendeler utover goodwill som tidligere har blitt nedskrevet, gjennomføres det en vurdering av om tidligere nedskrivinger burde reverseres ved årsslutt hvert år. Bankinnskudd, kontanter og lignende For presentasjonsformål i kontantstrømsanalysen, består bankinnskudd og kontanter av kontanter, depositum i finansinstitusjoner, andre kortsiktige og høylikvide investeringer med opprinnelig løpetid på tre måneder eller mindre som straks kan omsettes til kjente kontantbeløp og som er utsatt for uvesentlig risiko for verdiendring. Kundefordringer Kundefordringer blir i utgangspunktet verdsatt til virkelig verdi og senere målt til amortisert kost ved bruk av effektiv rentes metode, med fratrekk for avsetning for tap. Se note 12 for ytterligere informasjon om konsernet sine bokførte kundefordringer og kredittrisiko. Varelager Varelager er bokført til laveste verdi av anskaffelseskost og netto realisasjonsverdi. Kostnader knyttet til kjøp av varer er fratrukket rabatter og avslag. Netto realisasjonsverdi er estimert pris ved salg under normal drift. Investeringer og andre finansielle eiendeler (i) Klassifisering Konsernet klassifiserer finansielle eiendeler i følgende kategorier: Til virkelig verdi over resultatet Utlån og fordringer Finansielle eiendeler holdt for salg Investeringer holdt til forfall Klassifiseringen er avhengig av formålet med investeringene. Ledelsen fastsetter klassifiseringen av en investering på transaksjonstidspunktet, og i de tilfeller der eiendeler er klassifisert som holdt til forfall, blir disse revurdert i forbindelse med årsavslutningen. Se note 12 for detaljer rundt hver type finansiell eiendel. ii) Reklassifisering Konsernet kan velge å reklassifisere finansielle eiendeler som ikke er derivater ut av holdt for salg kategorien dersom den finansielle eiendelen ikke lenger er forventet solgt i nærmeste fremtid. Andre finansielle eiendeler enn utlån og fordringer kan kun reklassifiseres ut av holdt for salg kategorien i sjeldne omstendigheter som stammer fra enkeltstående hendelser som svært lite trolig vil gjenta seg i den nærmeste framtid. I tillegg kan konsernet velge å reklassifisere finansielle eiendeler som treffer definisjonen av utlån og fordringer fra holdt for salg eller tilgjengelig for salg, dersom konsernet, på tidspunktet for reklassifiseringen, har intensjon om og mulighet til å holde disse finansielle eiendelene i overskuelig fremtid eller frem til forfall. Reklassifisering gjøres til virkelig verdi på reklassifiseringsdatoen. Virkelig verdi blir da den nye anskaffelseskostnaden eller amortisert kost, og ingen tilbakeføringer av tidligere regnskapsførte virkelig verdi justeringer kan gjøres i ettertid. Effektiv rente for finansielle eiendeler reklassifisert til utlån og fordringer og holdt til forfall fastsettes på reklassifiseringsdatoen. Ytterligere økning i estimat av kontantstrøm justerer effektiv rente i framtiden.

107 (iii) Innregning og fraregning fra balansen Ordinære kjøp og salg av finansielle eiendeler innregnes i balansen på transaksjonsdatoen, som er datoen når konsernet forplikter seg til å kjøpe eller selge eiendelen. Finansielle eiendeler blir tatt ut av balansen når retten til å ta i mot kontantstrømmer fra den finansielle eiendelen faller bort eller har blitt overført og konsernet har overført all risiko og gevinst knyttet til eierskapet av eiendelen. Når verdipapir klassifisert som tilgjengelig for salg blir solgt, blir den akkumulerte virkelige verdi justeringen som tidligere har blitt ført mot utvidet resultat, ført mot det ordinære resultatregnskapet som gevinst eller tap fra investeringer. (iv) Måling Når en finansiell eiendel opprinnelig blir tatt inn i balansen blir den målt til virkelig verdi pluss transaksjonskostnader som knytter seg direkte til kjøpet av den finansielle eiendelen, i de tilfeller der finansielle eiendeler ikke justeres for virkelig verdi over resultatet. Transaksjonskostnader av finansielle eiendeler verdsatt til virkelig verdi over resultatet kostnadsføres på transaksjonstidspunktet. Utlån, fordringer og investeringer holdt til forfall blir senere bokført til amortisert kost ved bruk av effektiv rentes metode. Finansielle eiendeler tilgjengelig for salg og finansielle eiendeler verdsatt til virkelig verdi over resultatet verdijusteres fortløpende. Gevinst og tap fra endringer i virkelig verdi blir tatt inn i regnskapet på følgende måter: Finansielle eiendeler verdsatt til virkelig verdi over resultatet resultatføres som annen inntekt eller andre kostnader Finansielle eiendeler tilgjengelig for salg, som er pengepapir med pålydende utenlandsk valuta omregningsforskjeller knyttet til endring i amortisert kost av verdipapiret føres over resultatet og andre endringer i bokført verdi føres mot utvidet resultat. Andre monetære og ikke monetære verdipapirer klassifisert som tilgjengelig for salg ført mot utvidet resultat. Utbytte på finansielle eiendeler verdsatt til virkeleg verdi over resultatet og egenkapitalinstrument klassifisert som tilgjengelig for salg føres over resultatet som en del av inntekten fra virksomheten, når konsernet sin rett til å ta i mot utbetalinger blir etablert. Renteinntekt fra finansielle eiendeler verdsatt til virkeleg verdi over resultatet er inkludert i netto gevinst/(tap). Renteinntekter på verdipapir klassifisert som tilgjengelig for salg, holdt til forfall og utlån og fordringer beregnet ved bruk av effektiv rentes metode føres over resultatet som en del av inntekter fra virksomheten. (v) Nedskriving Ved slutten av hver rapporteringsperiode vurderer konsernet om det eksisterer objektive indikatorer som tyder på verdifall av enkelte finansielle eiendeler eller grupper av finansielle eiendeler. En finansiell eiendel eller en gruppe av finansielle eiendeler nedskrives og nedskrivingskost bokføres kun dersom; det eksisterer objektive bevis på at nedskrivingen skjer som et resultat av en eller flere (taps)hendelser etter den opprinnelige innregningen av eiendelen og at tapshendelsen(eller hendelsene) har påvirkning på den estimerte fremtidige kontantstrømmen til den finansielle eiendelen eller gruppen av finansielle eiendeler, som kan estimeres pålitelig. For investeringer i aksjer klassifisert som holdt for salg, vil en vesentlig eller vedvarende reduksjon i virkelig verdia av investeringene under kostpris bli sett på som en indikator på at det har vært et verdifall på eiendelen. Eiendeler balanseført til amortisert kost For utlån og fordringer beregnes nedskrivingsbeløpet som differansen mellom eiendelen sin bokførte verdi og nåverdi av estimerte fremtidige kontantstrømmer (ekskludert fremtidige kredittap som ikke har inntruffet) diskontert med den finansielle eiendelen sin opprinnelige effektive rente. Bokført verdi av eiendelen reduseres og tapet føres over resultatet. Dersom et lån eller en investering holdt til forfall har variabel rente, blir diskonteringsrenten for å vurdere nedskrivningsbehov den effektive renten fastslått i kontrakten. Av praktiske hensyn, kan konsernet ta i bruk observerbar markedspris for å fastsette virkelig verdi. Dersom nedskrivningsbehovet, i en senere periode redususeres og reduksjonen objektivt sett kan relateres til en hendelse inntruffet etter den opprinnelige nedskrivningen (eks. økning i debitors kredittverdighet), vil tilbakeføringen av den tidligere bokførte nedskrivingen føres over resultatet. Nedskrivningstesting av kundefordringer er beskrevet i note 12. Eiendeler klassifisert som tilgjengelig for salg Dersom det eksisterer objektive bevis for at eiendeler tilgjengelig for salg skal nedskrives, skal det akkumulerte tapet målt som differansen mellom anskaffelseskost og virkelig verdi, fratrukket tidligere nedskrivinger over resultatet fjernes fra egenkapital og føres over resultatet. Nedskrivningskostnader på egenkapitalinstrumenter ført over resultatet blir ikke tilbakeført over resultatet i senere perioder. Dersom virkelig verdi av et gjeldsinstrument klassifisert som tilgjengelig for salg øker i senere perioder og økningen objektivt sett kan relateres til en hendelse inntruffet etter den opprinnelige nedskrivningen ført over resultatet, skal nedskrivningskostnaden tilbakeføres over resultatet. Detaljer om hvordan virkelig verdi av finansielle instrumenter fastsettes beskrives nærmere i note 12.

108 (vi) Inntektsføring Renteinntekt Renteinntekt innregnes ved bruk av effektiv rentes metode. Når en fordring blir nedskrevet, reduserer konsernet bokført verdi til forventet gjenvinnbart beløp, som er forventet fremtidig kontantstrøm diskontert med opprinnelig effektiv rente på det finansielle instrumentet, og fortsetter å oppløse diskonteringen som renteinntekt. Renteinntekt på nedskrevet lån beregnes ved bruk av opprinnelig effektiv rente. Utbytte Utbytte inntektsføres når retten til å ta i mot utbetalinger er etablert. Dette gjelder selv om utbetalingene gjelder overskudd opptjent før oppkjøpet. Men investeringen kan være gjenstand for nedskrivningsvurdering som følge av dette. Derivater og sikringsaktiviteter Derivater innregnes første gang til virkelig verdi på dato for kontraktsinngåelse og måles senere til virkelig verdi ved hver periodeslutt. Regnskapsføring av endringer i virkelig verdi i senere perioder er avhengig av om derivatet er designet som et sikringsinstrument, og dersom dette er tilfellet, det sikrede elementets iboende egenskaper. Konsernet har ingen øremerkede sikringer, da konsernet sine derivater ikke er kvalifisert for sikringsbokføring. Verdien av et sikringsderivat klassifiseres som et anleggsmiddel eller langsiktig gjeld når resterende forfall på derivatet er mer en 12 måneder; det er klassifisert som omløpsmiddel eller kortsiktig gjeld når resterende forfall på derivatet er mindre enn 12 måneder. Handelsderivater er klassifisert som omløpsmiddel eller kortsiktig gjeld. Varige driftsmidler Alle varige driftsmidler bøkføres til historisk kost fratrukket nedskrivninger. Historisk kost inkluderer utgifter som direkte knytter seg til anskaffelsen av driftsmiddelet. Kostnaden kan også omfatte overføring av gevist eller tap på kontantstrømssikring av utenlandsk valuta ved kjøp av varige driftsmidler. Ytterligere kostnader, dersom passende, aktiveres på driftsmiddelet eller innregnes som en egen eiendel dersom det er sannsynlig at konsernet vil få en strøm av fremtidige økonomiske fordeler knyttet til eiendelen og kostnaden kan måles pålitelig. Den bokførte verdien av komponenter som utgjør en selvstendig eiendel tas ut av balansen dersom den blir skiftet ut. Annet vedlikehold og reperasjoner føres i resultatregnskapet i den perioden kostnaden pådras. Metoder for avskrivning og levetid beskrives i note 11. Eiendelens gjenværende levetid vurderes og justeres om nødvendig ved slutten av hver rapporteringsperiode. Bokført verdi av eiendelen nedskrives til gjennvinnbart beløp med en gang, dersom eiendelens bokførte verdi er høyere enn estimert gjennvinnbart beløp (note 11). Gevinst og tap ved avgang fastettes ved å sammenligne vederlag mot bokført beløp. Beløpet inngår i resultatregnskapet. Når verdijusterte eiendeler avhendes, har konsernet som retningslinje at alle beløper tilknyttet den aktuelle eiendelen som tidligere ble ført over utvidet resultat, blir ført mot opptjent egenkapital. Leverandørgjeld og annen gjeld Disse beløpene gjelder forpliktelser som knytter seg til varer og tjenester som er levert til konsernet før slutten av regnskapsåret, men som ikke er blitt betalt. Beløpene er uten sikkerhet og blir normalt betalt innen 30 dager fra de er innregnet. Leverandørgjeld og annen gjeld presenteres som kortsiktig, med mindre de forfaller til betaling senere enn 12 måneder etter rapporteringsperioden. Forpliktelsene innregnes opprinnelig til virkelig verdi og deretter måles de til amortisert kost ved bruk av effektiv rentes metode. Lån Lån innregnes første gang til virkelig verdi, fratrukket transaksjonskostnader knyttet til opptak av lånet. Ved påfølgende måling måles lån til amortisert kost. Forskjeller mellom utbetaling (fratrukket transaksjonskostnader) og innløsningsbeløpet blir innregnet i resultatregnskapet gjennom låneperioden ved bruk av effektiv rentes metode. Honorar betalt ved etablering av lånefasiliteter innreges som transaksjonskostnader knyttet til lånet i den grad det er sannsynlig at deler av eller hele fasiliteten vil bli trukket på. I slike tilfeller blir honoraret utsatt til det blir gjort trekk på fasiliteten. Dersom det ikke eksisterer bevis på at det er sannsynlig at det vil bli trukket på deler av eller hele fasiliteten, blir honoraret kapitalisert som en forskuddsbetaling for likviditetstjeneester og amortisert over perioden fasiliteten er knyttet til. En endring i eierskap i Fjord1 ASA den 14. oktober 2016 utløste en klausul om endring av kontroll i låneavtalene, og kreditorene krevde at det ble gjennomført en refinansiering innen juli Som følge av dette var gjeld til kredittinstitusjoner per 31. desember 2016 som ble omfattet av denne klausulen klassifisert som kortsiktig gjeld i balansen.

109 Lån fjernes fra balansen når forpliktelsen som er spesifisert i avtalen bortfaller, kanselleres eller utgår. Forskjellen mellom den bokførte verdien av en finansiell forpliktelse som har blitt slettet eller overført til en annen part og der vederlaget er helt betalt, inkludert en hver overført ikke monetær eiendel eller forventet forpliktelse, innregnes i resultatregnskapet under andre inntekter eller finanskostnader. Dersom vilkårene knyttet til en finansiell forpliktelse blir reforhandlet og enheten utsteder et egenkapitalinstrument til en kreditor for å slette alle deler av forpliktelsen (gjeldskonvertering), blir gevinst eller tap innregnet. Dette måles som forskjellen mellom det bokførte beløpet av den finansielle forpliktelsen og den virkelige verdien av det utstedte egenkapitalinstrumentet. Lån klassifiseres som kortsiktig med mindre konsernet har en ubetinget rett til å utsette oppgjøret av lånet i minst 12 måneder etter rapporteringsperioden. Lånekostnad Generelle og spesifikke lånekostnader som er direkte knyttet til overtagelse, bygging eller produksjon av en kvalifisert eiendel kapitaliseres i tiden frem til den kvalifiserte eiendelen er klar til tiltenkt bruk eller salg. Kvalifiserte eiendeler er eiendeler som tar vesentlig tid å klargjøre for planlagt bruk eller salg. Inntekter knyttet til kortgvarige investeringer av lån tiltenkt en kvalifisert eiendel, opptjent i perioden frem til det brukes på den kvalifiserte eiendelen, blir fratrukket de kapitaliserte lånekostnadene. Andre lånekostnader kostnadsføres i den perioden de oppstår. Avsetninger Avsetninger for juridiske krav, servicegarantier og opprydningskrav innregnes når konsernet har et nåværende eller forventet juridisk krav som et resultat av tidligere hendelser, der det er sannsynlig at en avgjørelse vil føre til en strøm av ressurser ut av konsernet og at dette kan måles på en pålitelig måte. Avsetningen innregnes ikke for fremtidige driftstap. Dersom det er flere krav av tilsvarende karakter blir sannsynligheten for en fremtidig strøm av ressurser ut av konsernet fastsatt som en samlet vurdering av kravene. Avsetningen innregnes selv om sannsynligheten for en strøm av ressurser ut av konsernet knyttet til ett av kravene i den samlede vurderingen isolert sett er lav. Avsetninger måles til nåverdien av ledelsen sitt beste estimat av utgiften som må til for å gjøre opp den nåværende forpliktelsen, på slutten av rapporteringsperioden. Diskonteringsrenten som brukes til å bestemme nåverdien, er en før skatt rente som reflekterer tidsverdien av penger og risikoen som spesifikt kan knyttes til kravet. En økning i avsetningen som følge av tid som har gått, innregnes som en rentekostnad. Ytelser til ansatte Konsernet har ulike pensjonsordringer, både ytelsesbaserte og innskuddsbaserte pensjonsordninger. Pensjonsforpliktelser Forpliktelsen eller eiendelen som er innregnet i balansen knyttet til ytelsesbaserte pensjonsordringer er nåverdien av forpliktelsen fra den ytelsesbaserte pensjonsordningen på balansedagen, fratrukket pensjonsmidlenes virkelige verdi. Forpliktelsen fra den ytelsesbaserte pensjonsordningen beregnes årlig av uavhengige aktuarer. Nåverdien av de definerte ytelsesbaserte forpliktelsene blir bestemt ved å diskontere fremtidige utbetalinger med renten på statsobligasjoner i samme valuta som utbetalingene og med en løpetid som er tilnærmet den samme som løpetiden for den relaterte pensjonsforpliktelsen. Netto rentekostnad kalkuleres ved å diskontere nettobalansen knyttet til den ytelsesbaserte pensjonsforpliktelsen og den virkelige verdien av pensjonsmidlene. Denne kostnaden er inkludert i lønnskostnaden i resultatregnskapet. Estimatavvik som skyldes ny informasjon eller endringer i de aktuarmessige forutsetningene føres mot egenkapitalen i utvidet resulat i den perioden de oppstår. De inkluderes i opptjent egenkapital i balansen og i oppstillingen over endringer i egenkapitalen. Endringer i nåverdi av den ytelsesbaserte pensjonsforpliktelsen som følge av planendringer eller avkortninger, blir innregnet i resultatregnskapet med en gang, som tidligere pensjonskostnader. Ved innskuddsbaserte pensjonsordninger betaler konsernet innskudd til offentlig eller privat administrerte forsikringsplaner for pensjon på obligatorisk, avtalemessig eller frivillig basis. Konsernet har ingen ytterligere batalingsforpliktelser etter at innskuddene er betalt. Innbetalingene kostnadsføres fortløpende med hensyn til riktig periodisering. Forskuddsbetalte innskudd innregnes som eiendel i den grad en motytelse eller en fremtidig reduksjon i innbetalinger er mulig.

110 Utbytte Det avsettes for alle varslede utbytteutdelinger, som er vedtatt og som enheten ikke lenger har råderett over, i eller etter rapporteringsperioden, men som ikke er delt ut på slutten av rapporteringsperioden. Oppkjøpsmetoden Oppkjøpsmetoden benyttes ved virksomhetssammenslutninger. Vederlaget som overføres ved oppkjøp av et datterselskap måles til virkelig verdi, det være seg i form av avgitte eiendeler, pådratte forpliktelser, eller egenkapitalinstrumenter som avgis eller utstedes av konsernet. Vederlaget inkluderer virkelig verdi av alle eiendeler eller forpliktelser som følge av en avtale om betinget vederlag. Transaksjonsutgifter kostnadsføres når de påløper. Identifiserbare oppkjøpte eiendeler, gjeld og betingede forpliktelser regnskapsføres til virkelig verdi på oppkjøpstidspunktet. Konsernet velger for hvert oppkjøp der det foreligger en ikke kontrollerende interesse om disse skal regnskapsføres til virkelig verdi eller til deres andel av virkelig verdi av det overatte selskapets identifiserbare nettoeiendeler. Immaterielle eiendeler a) Goodwill er forskjellen mellom anskaffelseskost ved kjøp av virksomhet og virkelig verdi av konsernets andel av netto identifiserbare eiendeler i virksomheten på oppkjøpstidspunktet. Goodwill ved oppkjøp av datterselskap er klassifisert som immateriell eiendel. b) Kontraktsfestede kundeforhold Kontraktsfestede kundeforhold anskaffet i virksomhetssammenslutninger balanseføres til virkelig verdi på oppkjøpstidspunktet. De kontraktsfestede kundeforholdene har begrenset utnyttbar levetid og føres til anskaffelseskost med fradrag for akkumulerte avskrivninger. Avskrivning foretas lineært over kundeforholdens forventede levetid. Summen av vederlaget, balanseført verdi av eventuelle ikke kontrollerende interesser og virkelig verdi på oppkjøpstidspunktet for tidligere eierinteresser i det overatte selskaept som overstiger virkelig verdi av identifiserbare netto eiendeler i datterselskapet balanseføres som goodwill. I motsatt fall resultatføres differansen.

111 Note 2 Virksomhetssammenslutning Virksomhetssammenslutninger 2016 Havilafjord AS eide 41% av aksjene i Fjord1 ASA per Den 17. august 2016 inngikk selskapet avtale om å kjøpe ytterligere 26% av aksjene i Fjord1 ASA, og oppnådde dermed kontroll over Fjord1 ASA med en eierandel på 67%. Samtidig ble det inngått kjøps og salgsopsjoner med F1 Holding AS som medførte en forpliktelse for Havilafjord AS til å kjøpe resterende 33% av aksjene. Oppkjøpstidspunktet er satt til 1. oktober 2016, som var det tidspunktet Havilafjord AS oppnådde kontroll over aksjene i Fjord1 ASA. Kostpris Kontantvederlag Forpliktelse til å erverve resterende 33% av aksjene Samlet vederlag for 59% av aksjene Verdi av konsernets egenkapitalinteresse i Fjord1 ASA eid før virksomhetsssamenslutning Samlet verdi for 100% av aksjene i Fjord1 ASA Eiendeler og gjeld som er innregnet som følge av oppkjøpet er som følger: Balanseført verdi Virkelig verdi Utsatt skattefordel Kontrakter Fartøy, eiendom o.l Investeringer i tilknyttet virksomhet Andre langsiktige eiendeler Varelager Kundefordringer Andre kortsiktige fordringer Bankinnskudd Gjeld til kredittinstitusjoner langsiktig ( ) ( ) Finansielle derivater langsiktig (53 447) (53 447) Pensjonsforpliktelser (13 919) (13 919) Utsatt skatt ( ) ( ) Gjeld til kredittinstitusjoner kortsiktig ( ) ( ) Leverandørgjeld (79 985) (79 985) Finansielle derivater kortsiktig (34 906) (34 906) Betalbar skatt (72 899) (72 899) Skyldige offentlige avgifter (50 055) (50 055) Annen kortsiktig gjeld ( ) ( ) Ikke kontrollerende interesser (3 862) (3 862) Netto identifiserbare eiendeler ervervet Verdien av vederlaget for 100% av aksjene Gevinst ved kjøp på gunstige vilkår

112 Konsernet Regnskapsprinsipp innregner for ikke kontrollerende ikke kontrollerende interesser interesser i en (minoritetsinteresser) overdragende enhet enten til virkelig verdi eller til de ikkekontrollerende interessenes forholdsmessige andel av den oppkjøpte enhetens netto identifiserbare eiendeler. Beslutningen fattes for det enkelte oppkjøp. For de ikke kontrollerende interessene i Fjord1 valgte konsernet å innregne de ikke kontrollerende interessene til sin forholdsmessige andel av de overførte netto identifiserbare eiendelene. Se note 1 for konsernets regnskapsprinsipper for virksomhetssammenslutninger. Vurdering av virkelig verdi av identifiserbare eiendeler og forpliktelser Som beskrevet i note 3, er vurderingen av de overtatte eiendeler og forpliktelsene ved oppkjøpet av Fjord1 ASA er til virkelig verdi et vesentlig estimat i regnskapet. Oppkjøpsanalysen er utarbeidet ved hjelp av bistand fra eksterne rådgivere. Det er lagt til grunn følgende nøkkelforutsetninger: Kontrakter er verdsatt basert på kontantstrømsprognoser som er konsistente med styregodkjente langtidsplaner i Fjord1 Verdsettelse av fartøy er basert på et gjennomsnitt av to uavhengige meglertakster Fast eiendom er verdsatt basert på eksterne takster Det er anvendt et avkastningskrav (WACC) på 7% Inntekts og resultatbidrag Fjord1 bidro med inntekter på 551 mnok og et årsresultat på 154 mnok til konsernet i perioden 1. oktober 2016 til 31. desember Dersom oppkjøpet av Fjord1 hadde skjedd 1. januar 2016, ville konsolidert proforma inntekter og årsresultat for året som ble avsluttet 31. desember 2016 ha vært henholdsvis mnok og 186 mnok. Disse tallene er beregnet ved å konsolidere inn Fjord1 sitt resultatregnskap for 2016 og justere det for: Forskjeller i regnskapsprinsipper mellom morselskap og datterselskap De tilleggsavskrivninger som ville blitt kostnadsført under antakelsen om at virkelig verdi justeringene av eiendom, anlegg og utstyr ville vært gjeldende fra 1. januar 2016, samt skatteeffekter som konsekvens av dette. Nærmere om gevinst ved kjøp på gunstige vilkår Oppkjøpet av Fjord1 1. oktober 2016 førte til en resultatført gevinst på NOK 262 millioner knyttet til aksjene Havilafjord AS eide i Fjord1 ASA før oppkjøpet. Videre resulterte oppkjøpsanalysen i en gevinst ved kjøp på gunstige vilkår på NOK 297 millioner. Sogn og Fjordane Fylkeskommune inngikk opprinnelig avtale om å selge aksjene sine til Torghatten, men da denne avtalen ikke ble sluttført som følge av begrensninger fra Konkurransetilsynet fikk Havilafjord AS tre inn på tilsvarende vilkår som avtalen mellom Sogn og Fjordane Fylkeskommune og Torghatten. Forpliktelse knyttet til kjøp av 33% av aksjene i Fjord1 ASA Opsjonen knyttet til kjøp av gjenværende 33% av aksjene i Fjord1 ASA ble utøvd i mai Forpliktelsen var bokført til NOK 532,3 millioner pr , som Annen langsiktig gjeld. En del av oppgjøret bestod i en selgerkreditt som per utgjør NOK 367,5 millioner med tillegg av renter, med forfall 30. juni 2020.

113 Note 3 Sentrale regnskapsvurderinger og viktige kilder til estimatusikkerhet Utarbeidelsen av konsernet sitt konsoliderte regnskap krever at ledelsen gjør skjønnsmessige vurderinger og benytter seg av estimater og forutsetninger som påvirker de rapporterte beløpene av inntekter, kostnader, eiendeler og forpliktelser, og den tilhørende presentasjonen av disse, i tillegg til presentasjonen av betingede forpliktelser. Usikkerhet rundt forutsetningene og estimatene kan resultere i utfall som krever vesentlige korrigeringer av bokførte beløp av eiendeler eller forpliktelser påvirket i fremtidige perioder. Sentrale vurderinger i anvendelsen av konsernets regnskapsprinsipper I utarbeidelsen av konsernregnskapet har ledelsen gjort følgende vurderinger som har vesentlig effekt på bokførte beløp i regnskapet: 1) Inntektsføring Som beskrevet i note 15, har konsernet bokført inntekter på tilsammen NOK 31 millioner i 2017 (2016: NOK 87 millioner) relatert til kompensasjon mottatt for å dekke inntektstap som følge av endringer i opprinnelige kontraktsantagelsene som rabatter og prisstrukturer. Størrelsen på kompensasjonen er ikke endelig fastsatt, noe som kan resultere i at konsernet senere vil få tilleggskompensasjon eller krav om tilbakebetaling av allerede mottatt kompensasjon. Mottatt kompensasjon er bokført som inntekt i den perioden som kompensasjonen er utbetalt, da dette vil representere konsernet sitt beste estimat på forventede kompensasjonsinntekter. 2) Nedskriving av ikke finansielle eiendeler Ved periodeslutt vurderer konsernet om det eksisterer nedskrivningsindikatorer. Dersom slike indikatorer er identifisert, eller når det for konkrete eiendeler er krav om årlig nedskrivningstest, estimerer konsernet gjennvinnbart beløp på eiendelen. Konsernet har fastsatt at det eksisterte nedskrivningsindikatorer som for eksempel driftsunderskudd for eiendeler, når årets regnskapstall legges sammen med budsjetterte tall for de neste periodene. Basert på dette har konsernet utført en nedskrivningsvurdering på hver rapporteringsdato. (31. desember 2016 og 31 desember 2017). Nedskrivning av andre eiendeler enn goodwill bokført i tidligere perioder, skal kun reverseres dersom det har skjedd en endring i de estimatene benyttet for å fastslå bruksverdi av eiendelen. Om dette er tilfelle, skal bokført verdi økes til gjennvinnbart beløp av den aktualle eiendelen. 3) Operasjonelle leieavtaler konsernet som leietaker Konsernet leier enkelte ekspressbåter for bruk i passasjerbåtsegmentet. Basert på en evalurering av vilkårene i avtalene, som at leieperioden ikke utgjør en betydelig del av fartøyets økonomiske levetid og at nåverdien av minimum leiebeløp ikke utgjør en vesentlig del av virkelig verdi av førtøyene, har konsernet vurdert disse avtalene som operasjonelle avtaler. Usikkerhet i estimatene sentrale regnskapsestimater Nedenfor følger en oversikt over viktige forutsetninger angående fremtiden og andre kilder til estimatusikkerhet på balansedagen, som medfører betydelig risiko for vesentlige endringer i balanseførte verdier av eiendeler og forpliktelser i løpet av det neste regnskapsåret. Konsernet baserer sine forutsetninger og estimater på tilgjengelige parametere på tidspunktet for konsolideringen. Gjeldende omstendigheter og forutsetninger angående fremtidig utvikling kan likevel endre seg som følge av endringer i markedet eller omstendigheter utenfor konsernet sin kontroll. Slike endringer blir reflektert i forutsetningene når de inntreffer. 1) Estimert bruksverdi av ikke finansielle eiendeler For vurdering av verdifall blir hver enkelt offentlige kontrakt, inkludert fartøy utpekt for ulike fergekontrakter, definert som kontantstrømgenererende enheter (KGE). For å fastsette bruksverdien av fartøyene benytter konsernet estimerte kontantstrømmer for resterende kontraktsperiode og estimert residualverdi av fartøyene ved utløp av kontraktsperiodene. Se note 11 for ytterligere detaljer. 2) Ytelsesbaserte pensjonsordninger Kostnader knyttet til ytelsesbaserte pensjonsordninger og nåverdien av pensjonsforpliktelsen fastsettes ved bruk av aktuarmessige beregninger. Den aktuarmessige vurderingen involverer ulike forutsetninger som kan avvike fra faktisk fremtidig utvikling. Disse inkluderer blant annet diskonteringsrente, fremtidig lønnsvekst, dødelighetsrate og fremtidig vekst i pensjon. Som følge av kompleksiteten i beregningene og de iboende langsiktige egenskapene til forpliktelsene, er ytelsesbaserte pensjonsordninger svært sensitive for endringer i forutsetninger. Alle benyttede forutsetninger blir evalurert på balansedagen. 3) Virkelig verdi ved bruk av oppkjøpsmetoden Overtatte eiendeler og forpliktelser ved oppkjøpet av Fjord1 ASA er vurdert til virkelig verdi. Viser til beskrivelse i note 2.

114 Note 4 Segmentinformasjon Konsernet leverer ferge og passasjerbåttjenester, catering og turisttjenester. Driftssegmentene rapporteres på samme måte som ved intern rapportering til selskapets øverste beslutningstaker. Selskapets øverste beslutningstaker, som er ansvarlig for allokering av ressurser og vurdering av inntjening i driftssegmentene, er definert som selskapet sitt styre. Styret vurderer konsernet sine prestasjoner fra et serviceperspektiv. Segmentprestasjon vurderes basert på fortjeneste eller tap målt på samme måte som fortjeneste eller tap i det konsoliderte regnskapet. Konsernet har fire rapporterende segment: Ferge Passasjerbåt Catering Turisme Ingen av driftssegmentene har blitt slått samman for å danne de rapporterende segmentene ovenfor. Finansiering (inkludert finanskostnad, finansinntekt og gevinst eller tap fra eierandel i Widerøe) og inntektsskatt blir styrt på konsernbasis og blir ikke allokert til driftssegmentene. Alle av konsernet sine aktiviteter utføres i Norge. Det er ingen enkelt kunde som står for mer enn 10% av omsetningen. Regnskapsåret avsluttet 31. desember 2017 Beløp i NOK Ferge Passasjerbåter Catering Turisme Sum segment Annet og elimineringer Konsolidert Salgsinntekt Inntekter Sum inntekter Andel av gevinst fra tilknyttet virksomhet Andre driftskostnader ekskl. avskrivning og nedskrivning ( ) (95 506) ( ) (19 226) ( ) (10 900) ( ) EBITDA Avskrivning ( ) (5 214) (3 444) (299) ( ) (1 730) ( ) Segmentoverskudd (3 006) Regnskapsåret avsluttet 31. desember 2016 Beløp i NOK Ferge Passasjerbåter Catering Turisme Sum segment Annet og elimineringer Konsolidert Salgsinntekt Eksterne kunder (22 609) Sum inntekter (22 609) Andel av gevinst fra tilknyttet virksomhet (3 771) (2 694) (2 694) Andre driftskostnader ekskl. avskrivning og nedskrivning. ( ) (24 819) (33 751) (3 691) ( ) ( ) EBITDA (3 298) Avskrivning (52 472) (1 499) (857) (3) (54 831) (447) (61 634) Segmentoverskudd (301) (3 301)

115 Oppstilling av konsernresultatet Segmentoverskudd Driftsresultat Havilafjord (5 427) (4 522) Oppkjøpskostnader (13 289) Avskrivning merverdier ( ) (78 934) Gevinst ved oppkjøp til gunstige vilkår Andel av resultat fra tilknyttet virksomhet GAAP forskjeller Renteinntekt Rentekostnad ( ) (44 854) Andre finansposter, netto Skattekostnad (33 705) (3 724) Konsernresultat Spesifisering av inntekter Frakt av biler og passasjerer Catering Turisme Annet (22 609) Sum

116 Note 5 Investeringer i andre selskaper 5.1 Vesentlige datterselskap Konsernet sine vesentlige datterselskap per 31. desember 2017 er listet opp nedenfor. Om ikke annet er opplyst, har datterselskapene kapital som i sin helhet består av ordinære aksjer som er eid direkte av konsernet, og det er samsvar mellom konsernet sin eierandel Selskap Forretningssted Eierandel Eierandel holdt av minoritet Hovedvirksomhet Fjord 1 ASA Florø 52 % 49 % Fergedrift Hareid Trafikkterminal AS Hareid 63 % 37 % Eiendomsforvaltning F1 Administrasjon AS Florø 100 % 0 % Konsernadministrasjon Bolsønes Verft AS Molde 100 % 0 % Verft ÅB Eigedom AS Årdal 66 % 34 % Eiendomsforvaltning Måløy Reisebyrå AS Måløy 100 % 0 % Reisebyrå Fanafjord AS Florø 100 % 0 % Holdingselskap Nye Fanafjord AS Florø 100 % 0 % 10% er eid av Fanafjord AS, som er 100% kontrollert av konsernet Havilafjord AS gjennomførte et nedsalg i 2017 som medførte at eierandelen i Fjord1 ASA ble redusert fra 100% til 51,5%. Havilafjord AS kontrollerer fremdeles Fjord1 ASA, og endringen i eierandel er ført som en egenkapitaltransaksjon. 5.2 Investeringer i tilknyttet og felleskontrollert virksomhet Nedenfor følger en oversikt over tilknyttede og felleskontrollerte virksomheter i konsernet per 31. desember 2017 som etter ledelsen sin vurdering, er vesentlige for konsernet. Enhetene listet nedenfor har aksjekapital som i sin helhet består av ordinære aksjer som er eid direkte av konsernet, og konsernet sin eierandel er samsvarende med konsernet sin stemmerett. Bokført verdi Selskapsnavn Eierandel Relasjon Målemetode The Fjords Fartøy I DA 50 % Tilknyttet virksomhetenkapitalmetoden The Fjords Fartøy II DA 50 % Tilknyttet virksomhetenkapitalmetoden (27) Sognefjorden Fartøy I AS 50 % Tilknyttet virksomhetenkapitalmetoden The Fjords DA 50 % Tilknyttet virksomhetenkapitalmetoden Fjord Tours AS 31 % Tilknyttet virksomhetenkapitalmetoden Geiranger Fjordservice AS 30 % Tilknyttet virksomhetenkapitalmetoden 338 Partsrederiet Kystekspressen ANS 49 % Tilknyttet virksomhetenkapitalmetoden WF Holding AS* 34 % Tilknyttet virksomhetenkapitalmetoden Investeringer i tilknyttet og felleskontrollert virksomhet *WF Holding AS eier 100 % av aksjene i Widerøe's Flyveselskap AS. Selskapet er kontrollert av Torghatten ASA, som utarbeider konsolidert regnskap som inkluderer WF Holding AS. Konsernregnskapet for Torghatten ASA er tilgjengelig hos selskapet sitt hovedkontor i Havnegata 40, 8900 Brønnøysund. Som følger av dette er Fjord 1 sin del av gevinst og tap i Widerøe 34%. Forpliktelser og betingede forpliktelser tilknyttede virksomheter Som deltaker i The Fjords DA og The Fjords Fartøy DA, er konsernet solidarisk ansvarlig for alle forpliktelser som tilhører disse selskapene. Oppsummering av finansiell informasjon angåande tilknyttet og felleskontrollert viksomhet Tabellene nedenfor viser den finansielle informasjonen knyttet til de felleskontrollerte virksomhetene som er vesentlige for konsernet. Merk at de tilknyttede selskapene først inngikk i konsernet fra , mens finansiell informasjon under viser tall for Informasjonen reflekterer beløp som blir presentert i regnskapet til de aktuelle felleskontrollerte virksomhetene, og ikke konsernet sin del av disse beløpene. Beløpene er endret for å reflektere justeringer enhetene har utført ved bruk av egenkapitalmetoden, inkludert virkelig verdi justeringer og endringer som følge av forskjeller i regnskapsprinsipp.

117 5.2 Investeringer i tilknyttet og felleskontrollert virksomhet (fortsettelse) Balanse WF Holding Group The Fjords DA Beløp i NOK Bankinnskudd, kontanter og lignende Andre omløpsmidler Sum omløpsmidler Anleggsmidler Leverandørgjeld Annen kortsiktig gjeld Sum kortsiktig gjeld Gjeld til kredittinstitusjoner Annen langsiktig gjeld Sum langsiktig gjeld Netto eiendeler Avstemming mot bokført verdi Netto eiendeler 1. januar Årsresultat Andre inntekter (8 996) Utbetalt utbytte (50 000) (40 000) (13 013) (15 866) Netto eiendeler 31. desember Konsernet sin del i % 34,0 % 34,0 % 50 % 50 % Konsernet sin del i NOK Goodwill Andre justeringer (8 578) (3 081) Utbytte Bokført verdi Avstemming av totalresultatet Beløp i NOK Salgsinntekt Driftskostnader ( ) ( ) ( ) ( ) Avskrivning og nedskrivning ( ) ( ) (1 468) (905) Netto finansposter (77 430) (25 301) 3 (21) Skattekostnad (31 609) (82 609) Årsresultat Andre inntekter (8 996) Totalresultat for året

118 5.2 Investeringer i tilknyttet og felleskontrollert virksomhet (fortsettelse) Balanse The Fjords Fartøy I DA Partsrederiet Kystekspressen ANS Beløp i NOK Bankinnskudd, kontanter og lignende Andre omløpsmidler Sum omløpsmidler Omløpsmidler Leverandørgjeld Annen kortsiktig gjeld Sum kortsiktig gjeld Gjeld til kredittinstitusjoner Annen langsiktig gjeld Sum langsiktig gjeld Netto eiendeler Avstemming mot bokført verdi Netto eiendeler 1. januar Årsresultat Andre inntekter Utbetalt utbytte (2 000) Netto eiendeler 31. desember Konsernet sin del i % 50,0 % 50,0 % 49 % 49 % Konsernet sin del i NOK Goodwill (11) 981 Andre justeringer Utbytte Bokført verdi Avstemming av totalresultatet Beløp i Nok Salgsinntekt Driftskostnader (817) (482) ( ) ( ) Avskrivning og nedskrivnining (5 030) (2 233) (14 591) (12 591) Netto finansposter (2 035) (1 002) (2 375) (2 687) Skattekostnad Årsresultat Andre inntekter Totalresultat for året

119 5.2 Investeringer i tilknyttet og felleskontrollert virksomhet (fortsettelse) Balanse Geiranger Fjordservice AS Fjord Tours AS Beløp i NOK Bankinnskudd, kontanter og lignende Andre omløpsmidler Sum omløpsmidler Omløpsmidler Leverandørgjeld Annen kortsiktig gjeld Sum kortsiktig gjeld Gjeld til kredittinstitusjoner Annen langsiktig gjeld 200 Sum langsiktig gjeld 200 Netto eiendeler Avstemming mot bokført verdi Netto eiendeler 1. januar Årsresultat Andre inntekter Utbetalt utbytte Netto eiendeler 31. desember Konsernet sin del i % 30 % 31 % Konsernet sin del i NOK Goodwill Andre justeringer Utbytte Bokført verdi Avstemming av totalresultatet Beløp i Nok Salgsinntekt Driftskostnader (22 031) (38 894) Avskrivning og nedskrivning (833) (2 213) Netto finansposter Skattekostnad (7 790) Årsresultat Andre inntekter Totalresultat for året

120 Individuelt uvesentlige tilknyttede virksomheter I tillegg til de virksomhetene presentert ovenfor, har konsernet også investeringer i Sognefjorden Fartøy I AS og The Fjords Fartøy II DA, som er vurdert å være uvesentlig og er bokført etter egenkapitalmetoden Bokført verdi av uvesentlig tilknyttet virksomhet Årsresultat (169) (17)

121 Note 6 Oversikt over annen inntekt og offentlige tilskudd Konsernet har innregnet følgende inntektsrelaterte beløp i resultatregnskapet: Offentlige tilskudd knyttet til fergerelaterte tjenester Leieinntekt Gevinst/tap ved avhending av varige driftsmidler NOX refusjon Annen driftsinntekt Sum annen driftsinntekt og offentlige tilskudd Det er ingen uoppfylte vilkår eller andre poster utenfor balansen knyttet til disse tilskuddene. Konsernet har ikke mottatt andre former for tilskudd fra det offentlige. Utsettelse og presentasjon av offentlige tilskudd Offentlige tilskudd knyttet til kostnader blir utsatt og innregnet i resultatregnskapet i den perioden kostnadene knyttet til tilskuddet inntreffer. Offentlige tilskudd knyttet til kjøp av driftsmidler er inkludert i kortsiktig gjeld og utsatt inntekt, og blir resultatført lineært over driftsmiddelets forventede levetid.

122 Note 7 Lønn og sosiale kostnader Beløp i NOK Note Lønn Arbeidsgiveravgift Pensjonskostnader Andre ytelser Sum lønnskostnader Antall sysselsatte årsverk (2016 tall gjelder hele året selv om Fjord1 bare har vært en del av konsernet i perioden ) Ordningene er dekket gjennom forsikringsselskap og KLP. Norske selskap er pålagt å følge kravene i lov om obligatorisk tjenestepensjon. Konsernet sine pensjonsordninger tilfredsstiller disse kravene. Kostnadsført beløp til innskuddspensjon

123 Note 8 Poster som er slått sammen i regnskapet Denne noten viser en oversikt over postene som er inkludert i andre driftskostnader og andre finansposter netto Andre driftskostnader Note Havneavgifter, sanitærkostnader og andre ruterelaterte kostnader Reparasjon og vedlikehold Driftskostnader fartøy Andre driftskostnader Sum andre driftskostnader Andre finansposter, netto Note Endring i virkelig verdi på derivater Valutagevinst Valutatap (1 506) (940) Utbytte Annen finansinntekt 250 (4 131) Andre finanskostnader (5 043) Sum andre finansposter, netto

124 Note 9 Skatt Spesifikasjon av skattekostnad på ordinært resultat Betalbar skatt Justering av tidligere års betalbar skatt Endring i utsatt skatt/skattefordel (7 768) Årets totale skattekostnad Avstemming av nominell og effektiv skattesats Resultat før skatt Skattesats til skattesats i Norge (24%/25 %) Resultatført skattekostnad Avvik mellom forventet og resultatført skattekostnad Endring i skattesats Permanente forskjeller Avvik mellom forventet og resultatført skattekostnad Spesifikasjon av grunnlag for utsatt skatt Tomter, bygninger og annen fast eiendom Fordringer (984) (96 311) Gevinst og tapskonto Andeler i deltakerlignende virksomheter (16 272) (5 610) Pensjonsforpliktelser (23 671) (14 605) Derivater (38 754) (65 704) Midlertidige forskjeller Underskudd til fremføring ( ) Grunnlag for utsatt skatt/skattefordel i balansen Utsatt skatt/skattefordel Utsatt skattefordel i regnskapet Utsatt skatt i regnskapet Nettoposisjon Avstemming av endring i utsatt skatt Netto utsatt skatt Endringer i ordinært resultat (6 351) (1 541) Endringer i utvidet resultat (1 417) Andre endringer Netto utsatt skatt

125 Note 10 Varige driftsmidler Fartøy under oppføring Bygninger, eiendom og tomt Driftsløsøre, redskap, inventar m.m Fartøy Periodisk vedlikehold Sum varige driftsmiddel Anskaffelsekost Tilganger Overført fra fartøy under oppføring Avganger Anskaffelseskost Akkumulerte ordinære avskrivninger Årets avskrivninger Avganger Akkumulert avskrivning Akkumulerte nedskrivninger Årets nedskrivninger Reversering av tidligere års nedskrivninger Akkumulerte nedskrivinger Bokført verdi Fartøy under oppføring Bygningr, eiendom og tomt Driftsløsøre, redskap, inventar m.m Fartøy Periodisk vedlikehold Sum varige driftsmiddel Anskaffelsekost Tilgang ved erverv av datterselskap Tilgang Overført fra fartøy under oppføring Avganger Anskaffelseskost Akkumulerte ordinære avskrivninger Årets avskrivninger Avganger Akkumulert avskrivning Akkumulerte nedskrivninger Årets nedskrivninger Reversering av tidligere års nedskrivninger Akkumulerte nedskrivinger Bokført verdi Levetid år 5 år 0 33 år 3 10 år Avskringvningsmetode Lineær Lineær Lineær Lineær Tilganger Fartøyet Sulafjord ble kjøpt i januar Nybygde Gloppenfjord og Eidsfjord var under transport fra Tyrkia til Norge i desember I tillegg har konsernet 15 andre fartøy under oppføring pr Avganger Konsernet solgte to fartøy i 2017; Hålagoland og Åtfjord. Gevinst på salg av fartøy er inkludert i annen driftsinntekt i det konsoliderte resultatregnskapet.

126 Note 10 Varige driftsmidler (fortsetter) Viktige forutsetninger Konsernet har kalkulert gjenvinnbart beløp basert på en bruksverdiberegning. Modellen benyttet for beregning av bruksverdi kalkulerer netto nåverdi av fremtidige kontantstrømmer fra hver enkelt offentlige kontrakt. Hver enkelt kontrakt, som inkluderer bokført verdi allokert til kontrakter (se note 11), sammen med de tiltenkte fartøyene for bruk under kontrakten, definert som en egen kontantstrømgenererende enhet (KGE). Kontantstrømprognosene er basert på de siste prognosene for EBITDA, der det er tatt hensyn til vilkår i kontrakter og estimerte driftskostnader, sammen med estimerte investeringskostnader. På slutten av kontraktsperioden estimerer konsernet realiserbar verdi for hvert fartøy. Realiserbar verdi er basert på takster fra eksterne meglere på balansedagen, med justering for inflasjon og forventet avskrivning over resterende kontraktsperiode. Diskontering av kontantstrømmene skjer ved bruk av estimert WACC. Konsernet har lagt til grunn en diskonteringsrente etter skatt (WACC) på 7.0 % (8.1 % før skatt) i nedskrivningstestene. Sensitivitetsanalyse nedskrivningstest Nedskrivning/(reversering av nedskrivning) Nedskrivning 2017 Endring WACC økt med 1 prosentpoeng WACC økt med 2 prosentpoeng EBITDA redusert med 5 % EBITDA redusert med 10 % (7 193) (7 193) Restverdi redusert med 5 % Restverdi redusert med 10 % (54 983) (54 983)

127 Note 11 Immaterielle kontraktseiendeler 2017 Kontrakter Sum immaterielle eiendeler Anskaffelsekost Tilganger Avganger Anskaffelseskost Akkumulerte ordinære avskrivninger Årets avskrivninger Avganger Akkumulerte avskrivninger Akkumulerte nedskrivninger Årets nedskrivninger Reversering av tidligere års nedskrivninger Akkumulerte nedskrivninger Bokført verdi Kontrakter Sum immaterielle eiendeler Anskaffelsekost Tilganger Tilgang ved erverv av datterselskap Avganger Anskaffelseskost Akkumulerte ordinære avskrivninger Årets avskrivninger Avganger Akkumulerte avskrivninger Akkumulerte nedskrivninger Årets nedskrivninger Reversering av tidligere års nedskrivninger Akkumulerte nedskrivinger Bokført verdi Levetid Avskringvningsmetode 2 9 år Lineær Bokført verdi av kontrakter er allokert til kontantstrømsgenererende enhet som testes for nedskrivning, se note 10 for detaljer.

128 Note 12 Finansiell risikostyring og finansielle instrumenter Denne noten gir følgende informasjon om de finansielle instrumentene til konsernet: En oversikt over alle finansielle instrumenter eid av konsernet Spesifikk informasjon knyttet til de ulike kategoriene av finansielle instrumenter Informasjon knyttet til verdsettelse av virkelig verdi av de finansielle instrumentene, inkludert involverte vurderinger og estimatusikkerhet Finansiell risikostyring Konsernet har følgende finansielle instrumenter: Finansielle eiendeler Eiendeler Eiendeler ført til virkelig verdi over utvidet resultat ført til virkelig verdi over resultatet Eiendeler til amortisert kost Sum Kundefordringer og andre fordringer Finansielle eiendeler tilgjengelig for salg Lån til ansatte Andre kortsiktige fordringer Kontanter og kontantlignende eiendeler Sum Eiendeler Eiendeler ført til virkelig verdi over utvidet resultat ført til virkelig verdi over resultatet Eiendeler til amortisert kost Sum Kundefordringer og andre fordringer Finansielle eiendeler tilgjengelig for salg Lån til ansatte Andre kortsiktige fordringer Kontanter og kontantlignende eiendeler Sum Eiendeler Eiendeler ført til virkelig verdi over utvidet resultat ført til virkelig verdi over resultatet Eiendeler til amortisert kost Sum Kundefordringer og andre fordringer Finansielle eiendeler tilgjengelig for salg Lån til ansatte Andre kortsiktige fordringer Kontanter og kontantlignende eiendeler Total

129 Finansiell gjeld Derivater ført til virkelig verdi over resultatet Gjeld til amortisert kost Sum Derivater Rentebærende gjeld Leverandørgjeld og annen kortsiktig gjeld Total Derivater ført til virkelig verdi over resultatet Gjeld til amortisert kost Sum Derivater Rentebærende gjeld Leverandørgjeld og annen kortsiktig gjeld Total Derivater ført til virkelig verdi over resultatet Gjeld til amortisert kost Sum Derivater Rentebærende gjeld Leverandørgjeld og annen kortsiktig gjeld Total Kundefordringer og andre fordringer Beløp i NOK Kortsiktig Langsiktig Sum Kortsiktig Langsiktig Sum Kundefordringer Avsetning for verditap (936) (936) (1 505) (1 505) Lån til ansatte Forskuddsbetalinger Forsikringskrav Andre fordringer Kundefordringer og andre fordringer Beløp i NOK Kortsiktig Langsiktig Sum Kundefordringer Avsetning for verditap Lån til ansatte Forskuddsbetalinger Forsikringskrav Andre fordringer Klassifisering som kundefordringer og andre fordringer Kundefordringer er fordringer fra kunder knyttet til salg av varer og tjenester i den ordinære driften. Utlån og andre fordringer er finansielle ikke derivative eiendeler med faste nedbetalinger som kan fastsettes, som ikke er notert på børs eller lignende handelsmarkeder. Fordringene er klassifisert som kortsiktige dersom forventet innbetaling er innen ett år fra balansedagen. Dersom innbetaling ikke er forventet innen ett år fra balansedagen, klassifiseres fordringene som langsiktige. Kundefordringer har i utgangspunktet forfall innen 30 dager og derfor er alle kundefordringer klassifisert som kortsiktige. Som følge av fordringene sine iboende kortsiktige egenkaper, er bokført verdi vurdert til å være lik virkelig verdi. For langsiktige fordringer er det ikke vurdert å være vesentlige forskjeller mellom bokført og virkelig verdi.

130 Fianansielle eiendeler tilgjengelig for salg Følgende finansielle eiendeler er klassifisert som tilgjengelig for salg: Unoterte aksjer Kapitalinnskudd i KLP Sum Klassifisering som finansielle eiendeler tilgjengelig for salg Investeringer betegnes tilgjengelig for salg dersom de ikke har faste forfall og faste innbetalinger eller innbetalinger som kan fastsettes, og dersom ledelsen har intensjoner om å holde på eiendelene i et mellomlangt perspektiv. Finansielle eiendeler som ikke er klassifisert i andre kategorier (virkelig verdi over resultatet, utlån og fordringer eller investeringer holdt for salg) klassifiseres som tilgjengelig for salg. Dersom de finansielle eiendelene ikke forfaller innen 12 måneder etter balansedagen eller dersom ledelsen ikke har intensjon om å selge de innen 12 måneder etter balansedagen, klassifiseres de som langsiktige. Kontanter og kontantlignende eiendeler Per 31.desember 2017 var de bundne bankinnskuddene på NOK 290 tusen, mot NOK 218 tusen per Nordea har utstedt en garanti som dekker skattetrekk inntil NOK 50 millioner. Garantien har økt ytterligere NOK 3 millioner den Leverandørgjeld og annen kortsiktig gjeld Leverandørgjeld Forskuddsbetalinger fra kunder, verdikort Opptjent lønn og feriepenger Andre kortsiktige forpliktelser Uopptjent inntekt Sum Leverandørgjelden er ikke sikret og er i de fleste tilfeller gjort opp innen 30 dager fra innregning. Bokført verdi på leverandørgjeld og andre kortsiktig forpliktelser er antatt å være lik virkelig verdi, som følge av de iboende kortsiktige egenskapene til forpliktelsene. Lån Beløp i NOK Kortsiktig Langsiktig Sum Kortsiktig Langsiktig Sum Sikret Gjeld til kredittinstitusjoner Selgerkreditt Obligasjonslån Sum Beløp i NOK Kortsiktig Langsiktig Sum Sikret Gjeld til kredittinstitusjoner Gjeld til kredittinstitusjoner er sikret med førsteprioritet på pant i konsernet sine eiendommer og fartøy Bokført verdi av pantsatte eiendeler Finanasielle lånevilkår De mest vesentlige låneavtalene krever at konsernet oppfyller følgende finansielle vilkår: NIBD/EBITDA kan maks være 5.25 Egenkapitalandel over 25% Konsernet har ikke vært i brudd med lånevilkårene i løpet av Endringen i eierskap som fant sted 14. oktober 2016 utløste en klausul i låneavtalen knyttet til endring i eierskap. I 2017 inngikk konsernet en avtale med kreditorene om utvidet forfall på lånefasilitetene til 31.desember Som følge av dette krevde kreditorene at det ble gjennomført en refinansiering innen utgangen av juli Dette har ført til at gjeld til kredittinstitusjoner presenteres som kortsiktig gjeld i balansen per 31.desember 2016, som følge av at konsernet ikke lengre har en vilkårsløs rett til å utsette tilbakebetalingen av lånet minst 12 måneder etter balansedagen. Konsernet utstedte et obligasjonslån pålydende NOK 1 milliard den 22. november Obligasjonslånet vil betale en flytende rente kupong bestående av NIBOR 3 måneder pluss 3,5% og har forfall i november Konsernet har i februar 2018 inngått avtale med DNB og Nordea om opptrekk av lånefasilitet på NOK millioner. Deler av lånet benyttes til å nedbetale all eksisterende gjeld til kredittinstitusjoner. Innregning til virkelig verdi Nedenfor følger forklaring på estimatene og vurderingen som legges til grunn for beregning av virkkelig verdi av finansielle insrumenter som bokføres til virkelig verdi i regnskapet. For å gi en indikasjon på påliteligheten av informasjonen lagt til grunn for beregning av virkelig verdi er de finansielle instrumentene klassifisert i tre ulike nivåer, som er obligatorisk som etter IFRS. Forklaring av de ulike nivå følger nedenfor.

131 Periodisk vurdering av virkelig verdi Nivå 1 Nivå 2 Nivå 3 Sum 31 Desember 2017 Finansielle eiendeler Finansielle eiendeler tilgjengelig for salg Finansiell gjeld Handelsderivater Periodisk vurdering av virkelig verdi Nivå 1 Nivå 2 Nivå 3 Sum 31. desember 2016 Finansielle eiendeler Finansielle eiendeler tilgjengelig for salg Finansiell gjeld Handelsderivater Periodisk vurdering av verkelig verdi Nivå 1 Nivå 2 Nivå 3 Sum 1. januar 2016 Finansielle eigedelar Finansielle eiendeler tilgjengeleg for salg Finansiell gjeld Handelsderivater Ingen finansielle instrumenter har blitt flyttet mellom nivå 1 og nivå 2 i løpet av regnskapsåret. Konsernet har som prinsipp å innregne klassifiseringer inn og ut av de ulike nivåene i virkelig verdi hierarkiet ved årsslutt. Nivå1: Virkelig verdi av finansielle instrumenter som omsettes i aktive handelsmarkeder (som aksjer, egenkapitalbevis og pengemarkedsfond) er basert på noterte kurser eller priser per Markedskursen som legges til grunn for de finansielle eiendelene er kjøpskursen. Instrumentene beskrevet ovenfor er inkludert i nivå 1. Nivå 2: Virkelig verdi av finansielle instrumenter som ikke omsettes i et aktivt handelsmarked fastsettes ved bruk av den verdsettelsesmetoden som maksimerer bruk av observerbare markedsdata, og som er minst mulig avhengig av enhetsspesifikke estimater. Dersom all nødvendig vesentlig informasjon for å fastsette virkelig verdi av et instrument er observerbar, inkluderes instrumentet i nivå 2. Nivå 3: Dersom all eller noe av den vesentlige informasjonen som ligger til grunn for verdsettelsen ikke er basert på observerbare markedsdata, inkluderes instrumentet i nivå 3. Dette er tilfellet for alle unoterte aksjer. Verdsettelsesmetoder for å fastsette virkelig verdi Verdsettelsesmetoder benyttet for å fastsette verdien av finansielle instrumenter inkluderer: bruk av noterte markedspriser eller meglerpriser for lignende instrumenter. virkelig verdi av rentebytteavtaler, valutaterminkontrakter og bunkerderivat blir fastsatt basert på "marked til marked" estimater fremsatt av eksterne meglere. virkelig verdi av resterende finansielle instrumenter fastsettes ved å neddsikontere fremtidig forventet kontantstrøm. Alle de beregnede virkelige verdiene inkluderes i nivå 2, unntatt unoterte aksjer hvor virkeleg verdi er basert på nåverdien av neddiskonterte fremtidige kontantstrømmer. Verdsettelse til virkelig verdi ved bruk av vesentlig ikke observerbar informasjon (nivå 3) Andre Unoterte aksjer finansielle eiendeler Per 1. januar 2016 Gevinst/(tap) ført over utvidet resultat Tilganger ved virksomhetssammenslutning Avganger 31. desember Gevinst/(tap) ført over utvidet resultat Tilganger 372 Avganger (2 331) 31. desember

132 Finansiell risikostyring Konsernet er utsatt for en rekke finansielle risikoer, som de som er listet nedenfor: Risiko Eksponering fra Måling Styring Markedsrisiko - valutakurs Nybyggkontrakter inngått i utanlandsk valuta Sensitivitetsanalyse Valutaterminkontrakter Markedsrisiko - rentesats Langsiktige kredittlån med flytende rente Sensitivitetsanalyse Rentebytteavtaler Markedsrisiko - råvarekost Bruk av brennstoff Sensitivitetsanalyse Bruk av brennstoffrelaterte derivater Markedsrisiko - verdipapirpriser Kredittrisiko Investering i verdipapirer Ikke aktuelt Kontantar og kontantlignende eiendeler, kundefordringer og derivative finansielle instrumenter Analyse av aldersfordeling Konsernet har et avgrenset omfang av aksjer og bare unoterte aksjer. Konsernet er indirekte eksponert for risiko knyttet til verdipapirpriser gjennom den ytelsesbaserte pensjonsordningen, hvor deler av midlene er investert i verdipapir. Denne risikoen er håndtert gjennom investeringer i diversifiserte porteføljer, og styrt av eksterne forsikringsselskap. Diversifisering av bankforbindindelser og kredittgrenser Likviditetsrisiko Rullerende kontantstrømsprognoser Tilgjengelighet av lånetilsagn og innvilged kreditt Risikostyringen i konsernet utføres av økonomiavdelingen etter instrukser godkjent av styret. Økonomiavdelingen identifiserer, evaluerer og sikrer finansiell risiko i tett samarbeid med selskapene i konsernet. Styret har utarbeidet skriftlige prinsipper for den overordnede risikostyringen, i tillegg til spesifikke instrukser som dekker spesifikke områder, som valutaomregningsrisiko, renterisiko, kredittrisiko, råvareprisrisiko, bruk av finansielle derivat og andre finansielle instrumenter, samt investeringer av overskuddslikviditet. Derivater Derivater blir bare benyttet for sikringsformål, og ikke som spekulative investeringer. I de tilfellene hvor derivatene ikke tilfredsstiller kravene for sikringsbokføring, blir endringer i virkelig verdi av de derivative finansielle instrumentene innregnet i resultatregnskapet. Konsernet har følgende derivater: Rentebytteavtaler (26 621) (40 889) Valutaterminkontrakter (3 326) Brennstoffrelaterte derivater (12 133) (20 963) Sum (38 754) (65 178)

133 Derivater klassifiseres som holdt for salg og bokført til virkelig verdi over resultatet dersom de ikke blir utpekt som sikringsinstrument. De pesenteres som kortsiktige eiendeler eller forpliktelser dersom de forventes å forfalle innen 12 måneder etter balansedagen. NOK i Verdiendringer på derivater innregnet i resultatregnskapet Kredittrisiko Konsernet sin maksimale eksponering for kredittrisiko er lik bokført verdi av hver enkelt klasse av finansielle eiendeler i listen ovenfor, ved slutten av regnskapsperioden. Dersom det er kjent at enkelte fordringer ikke lar seg inndrive, blir det gjort avsetning for tap med en gang. Det er av konsernet sin oppfatning begrenset kredittrisiko da de største kundene er fra offentlig sektor. Likviditetsrisiko Forsiktig styring av likviditetsrisikoen innebærer å sørge for at det til enhver tid er tilstrekkelig med kontanter og likvide verdipapirer eller tilgjengelig finansiering gjennom kredittfasiliteter til å dekke forpliktelser når de forfaller og til å gjøre opp alle posisjoner knyttet til finansielle instrumenter. Konsernet styrer likviditetsrisiko basert på rullerende likviditetsprognoser på henhodsvis 8 uker og 12 måneder.

134 Note 13 Aksjekapital Selskapets aksjekapital er på fordelt på aksjer à 100. Alle aksjene har lik stemmerett. Alle aksjene eies av Havila Holding AS, som har forretningsadresse Mjølstadneset, 6092 Fosnavåg. Havila Holding AS utarbeider konsernregnskap og det kan fås utlevert ved selskapets kontor.

135 Note 14 Pensjonsforpliktelser Konsernet opererer med ulike pensjonsordninger, inkludert både innskudds og ytelsesbaserte ordninger. Alle pensjonsordninger oppfyller kravene i lov om obligatorisk tjenestepensjon. Pensjonsforpliktelser Innskuddsbaserte pensjonsordninger er ordninger der konsernet betaler faste innskudd til en separat juridisk enhet. Konsernet betaler innskudd til offentlig eller privat administrerte forsikringsplaner for pensjon på obligatorisk, avtalemessig eller frivilling basis. Konsernet har ingen ytterligere betalingsforpliktelser etter at innskuddene er betalt. Innbetalingene kostnadsføres fortløpende når de betales. Forskuddsbetalte innskudd presenteres som en eeindel i den grad en tilbakebetaling eller en reduksjon i fremtidige innskudd er tilgjengelig. Ytelsesbaserte ordninger er alle ordninger osm ikke er innskuddsordninger. Ytelsesbaserte pensjonsordnigner fastsetter typist et bestemt beløp en ansatt vil få ved pensjon, avhengig av en eller flere faktorer som alder, lønn og lengde på arbeidsforholdet. Forpliktelsen presentert i balansen, knyttet til ytelsesbaserte pensjonsordninger viser nåverdi av de fremtidige utbetalingene etter fratrekk fra virkelig verdi av pensjonsmidlene. Forplitkelsen knyttet til ytelsesbaserte pernsjonsordninger blir kalkulert årlig av uavhengige aktarer ved hjelp av oppsamlet ytelses metode. Nåverdien av den ytelsesbaserte pensjonforpliktelsen beregnes ved å diskontere fremtidige kontantstrømmer ved bruk av rentesatser på statsopbligasjoner for den valutaen som forpliktelsen vil bli utbetalt i, og som har tilnærmet lik løpetid som forpliktelsen. Aktuarmessige gevinster og tap som følge av erfaringskorrigeringer og endringer i aktuarmessige forutsetninger føres direkte mot egenkapitalen gjennom andre inntekter og kostnader det året de inntreffer. Periodens pensjonsopptjening resultatføres med en gang. Ytelsesbaserte ordninger Konsernet har pensjonsordnigner for til sammen personer, inkludert 246 pensjonister. Ordninger gir de ansatte rett på definerte fremtidige utbetlainger. Størrelsen på utbetlingene er i hovedsak av hengig antall opptjeningsår, lønnsnivå, lønnsnivå ved oppnåd pensjonsalder og størrelsen på ytelsen fra folketrygden. Forpliktelsen er dekket gjennom ordninger i forsikringsselskap. Konsernet har også Avtalefestet Førtidspensjon(AFP) sm dekker 184 personer, der 108 er pensjonister. Avtalen gir de ansatte krav på ytelser fra de er 62 år til de kvalifiserer for offentlig pensjon fra folketrygden når de er 67 år. Rundt 50% av ordninger ersikret gjennom KLP. KLP klarer ikke å skille den sikrede ordningen fra den usikre ordningen. Av denne årsaken er alle forpliktelser relatert til AFP presentert som sikre ordninger. Kostnader og forpliktelser knyttet til de ytelsesbaserte ordningene presenteres i tråd med IAS 19R. Risikoeksponering Gjennom de ytelsesbaserte ordningene er konsernet utsatt for en rekke risikoer. De mest vesentlige risikoene gjennomgås nedenfor. Volatilitet: Forpliktelsene knyttet til ordningene kalkuleres ved hjelp av en diskonteringsrente med referanse til OMFobligasjoner. Dersom eiendeler underpresterer men hensyn til denne avkastningen, vil dette føre til et avvik. Alle ordninger inkluderer en vesenltig del av aksjer, som er forventet å gi avkastning utover kredittobligasjoner i et langsiktig perspektiv, samtidig som de medfører volatilitet og risiko i et kortsiktig perspektiv. Når ordningene blir eldre har konsernet intensjoner om å redusere andelen risikable investeringer gjennom i større grad å investere i eiendeler som er bedre sammenstilt med forpliktelsene. Endring i obligasjonesrenter: En reduksjon i obligasjonsrenter for kredittobligasjoner vil øke forpliktelsene knyttet til ordningene selv om effekten delvis vil bli utlignet av en økning i verdien av obligasjonsbeholdningene i ordningene. Inflasjonsrisiko: Enkelte av konsernet sine pensjonsforpliktelser er knyttet til lønnsinflasjon. Høyere inflasjon vil føre til økte forpliktelser (selv om det i de fleste tilfeller eretablert en øvre grense på inflasjonsøkning for å beksytte ordningen mot ekstrem inflasjon). Størstedelen av ordningen sine eiendeler er enten ikke påvirket eller i liten grad korrelert med inflasjon, noe som medfører at en øknin i inflasjon også vil øke underdekkingen. Antatt levetid: Størsteparten av ordningen sine forpliktelser er til for å gi økonomiske fordeler for resten av livet til medlemmene, En økning i antatt levetid vil dermed medføre en økning i pensjonsforpliktelsen. Beløp presentert i regnskapet 31. desember desember januar 2016 Nåverdi av sikrede forpliktelser Virklelig verdi på pensjonsmidlene Underdekning på sikrede ordningar Nåverdi av usikrede forpliktelser Sum underdekning på ytelsesbaserte pensjonsordninger

136 Note 14 Pensjonsforpliktelser (fortsetter) Noteinformasjon for 2016 under dekker hele perioden for Fjord1 ASA sine pensjonsordninger. Havilafjord AS sitt konsoliderte resultat og utvidede resultat inkluderer bare endring i pensjonsforpliktelse fra oppkjøpstidspunktet til Pensjonsforpliktelsen på oppkjøpstidspunktet utgjorde NOK 13,9 millioner Sikrede forpliktelser Usikrede forpliktelser Sum Nåverdi av pensjonsopptjening i året Tidligere års pensjonsopptjening Pensjonsopptjening Netto rentekostnader/ ( inntekter) Administrasjonskostnader Arbeidsgiveravgift(AGA) Sum pensjonskostnad Sikrede forpliktelser Usikrede forpliktelser Sum Nåverdi av pensjonsopptjening i året Tidligere års pensjonsopptjening (14) Pensjonsopptjening Netto rentekostnader/ ( inntekter) Administrasjonskostnader Arbeidsgiveravgift(AGA) Sum pensjonskostnad Endring i ytelsesbaserte forpliktelser Nåverdi av forpliktelse Nåverdi av pensjonsmidlene Sum 1. januar ( ) Årets pensjonsopptjening Rentekostnad ( inntekt) (5 875) 197 Tidlegere års pensjonsopptjening Estimatendringer (2 178) Utbetalte ytelser fra ordningene (9 020) (1 818) Innbetalt (12 591) (12 591) Administrasjonskostnader Arbeidsgiveravgift(AGA) desember ( ) Present value of obligation Fair value of plan assets Total 1. januar ( ) Årets pensjonsopptjening Rentekostnad ( inntekt) (5 762) 634 Tidlegere års pensjonsopptjening Estimatendringer (17 785) 913 (16 872) Utbetalte ytelser fra ordningene (9 256) (911) Innbetalt (13 487) (13 487) Administrasjonskostnader Arbeidsgiveravgift(AGA) (442) (442) 31. desember ( ) Vesentlige forutsetninger Diskonteringsrate 2,40 % 2,60 % Forventet lønnsregulering 2,50 % 2,50 % Forventet G regulering 2,25 % 2,25 % Forventet avkastning på pensjonsmidler 2,40 % 2,60 % Forventet økning av pensjoner under utbetaling 0,00 % 0,00 %

137 Note 15 Betingede forpliktelser og eiendeler Rabattkompensasjon Konsernet har bokført en inntekt på NOK 31 millioner i 2017 (2016: NOK 1 millione) knyttet til kompensasjon for å dekke inntektstap som følge av endringer i de opprinnelige kontraktforutsetningene knyttet til rabatter og prisstruktur. Kompensasjonen er ikke endelig fastsatt, noe som medfører at konsernet kan komme til å få ytterligere kompensasjon eller måtte betale tilbake noe av kompensasjonen allerede mottatt. Utbetalt kompensasjon er inntektsført i tråd med utbetalinger, da konsernet ser på dette som beste estimat for den endelige kompensasjonen. Den bokførte kompensasjonen er ikke vurdert å være en betinget eiendel.

138 Note 16 Forpliktelser 16.1 Kapitalforpliktelser Vesentlige kontraktfestede kapitalforpliktelser som ikke er innregnet som forpliktelser i balansen har følgende avtalte betalingsstruktur: Etter 2019 Sum Nybygg Kaistruktur og landbaserte investeringer Sum Operasjonelle leieavtaler som ikke kan avsluttes Konsernet leier fartøy og annet utstyr fra eksterne leverandører. Disse operasjonelle leiekontraktene har følgende vilkår: Årlig leie Utløp Fartøy Annet utstyr Sum Reparasjon og vedlikehold Periodisk vedlikehold er knyttet til større inspeksjons og vedlikeholdskostnader som oppstår med jevne intervaller over fartøyets levetid, normalt hvert femte. år. Derfor har konsernet forpliktelser knyttet til å opprettholde fartøyet sin operasjonelle stand og til å overholde aktuelle lover og regler.

139 Note 17 Transaksjoner med nærstående parter Nedenfor følger en oversikt over transaksjoner med nærstående parter: Inntekt fra nærstående parter Nærstående part Relasjon The Fjords DA Tilknyttet virksomhet The Fjords Fartøy I DA Tilknyttet virksomhet The Fjords Fartøy II DA Tilknyttet virksomhet 345 Kostnader til nærstående parter Nærstående part Relasjon Havila Holding AS Morselskap The Fjords DA Tilknyttet virksomhet (1 063) (1 104) Havyard Ship Technology Konsernselskap ( ) (3 705) Fordringer/(forpliktelser) til nærstående parter Nærståande part Relasjon The Fjords DA Tilknyttet virksomhet Havyard Ship Technology Konsernselskap (608) Havila Holding AS Morselskap (1 025) Havila AS Konsernselskap (2 875) Ved utgangen av 2017 har konsernet åtte ferger under bygging ved Havyard Ship Technology AS. Havila Holding AS (som eier 100% av aksjene i Havilafjord AS) eier 57.71% av aksjene i Havyard Group AS som igjen eier 100% i Havyard Ship Technology AS. Fjord 1 AS er forpliktet til å betale forskudd under disse kontraktene, og ved utgangen av 2017 var totale forskudd på NOK millioner. I tillegg har Havyard Ship Technology utført arbeid med reparasjon og ombygging av ferger for Fjord 1 ASA for NOK 7 millioner i løpet av Havila Holding AS yter ulike administrative tjenester for Havilafjord AS. Det ble belastet NOK 2,3 millioner for disse tjenestene i 2016.

140 Note 18 Lønn og ytelser til ledende personer Ledelsen i Havilafjord AS og styremedlemmer i Havilafjord AS er lønnet av annet selskap i Havila Holding konsernet. Det er ikke utbetalt styregodtgjørelse eller annen godtgjørelse til styremedlemmer eller ledelse i Havilafjord AS. For Fjord1 ASA konsernet er følgende ytelser gitt til ledende personer: NOK i 1000 Lønn Bonus Annen godtgjørelse Pensjon Sum Antall aksjer pr i Fjord1 Dagfinn Neteland (CEO fra ) Anne Mari Sundal Bøe (CFO) Andrè Høyset (fungerende CEO til , deretter COO) Deon Mortensen (CTO) Tor Vidar Kittang (fungerende prosjektdirektør til ) Sum lønn og ytelser til lededende personer i Pensjonsforpliktelse CEO per Administrerende direktør (CEO), Dagfinn Neteland, har krav på sluttvederlag lik ordinær lønn for 12 måneder dersom selskapet velger å avslutte arbeidsforholdet, og om Neteland velger å avslutte arbeidsfroholdet som følge av vesentlige endringer i eierskap eller endringer i strategi og drift av selskapet. Ingen andre i konsernledelsen eller i styret har krav på sluttvederlag fra selskapet. Som kompensasjon for solid innsats gjennom selskapet sin snuoperasjon de siste årene, og tilrettelegging for opptak og notering på Oslo Børs, tildelte styret i 2017 bonus til administrerende direktør på NOK 1 million. I tillegg fikk administrerende direktør fullmakt til å fordele NOK 3 millioner til øvrige ledende ansatte og andre nøkkelpersoner. Styremedlemmer i Fjord1 ASA i 2017: Beløp i NOK 1000 Antall aksjer per Sum godtgjørelse i Fjord1 Vegard Sævik (Styreleder fra , tidligere styremedlem) 154 * Pål W. Lorentzen (Styreleder til ) 939 Per Sævik (Styremedlem) 52 * Janicke Westlie Driveklepp (Styremedlem) 69 Siri Beate Hatlen (Styremedlem fra ) 35 Frederik W. Mohn (Styremedlem fra ) 26 * Atle Olav Trollebø (Ansatterepresentant) Geir Offerdal (Ansatterepresentant fra ) Reidar Tangen (Varamedlem/Ansatterepresentant fra ) 290 Ole Kjell Eidem (Varamedlem/Ansatterepresentant fra ) 290 Thomas Rakstang (Observatør/Ansatterepresentant fra ) Egil Kirkebø (Observatør/Ansatterepresentant fra ) 290 Daniel Nedrelid (Observatør/Ansatterepresentant fra til ) 69 Vidar Grønnevik (Styremedlem til ) 54 Bente Iren Næsse (Styremedlem til ) 40 Øyvind Oksnes(Observatør/Ansatterepresentant til ) 30 Arnstein Amås (Ansatterepresentant til ) 40 Sum * Eier av aksjer gjennom andre foretak: Vegard og Per Sævik gjennom Havilafjord AS og Frederik W. Mohn gjennom Perestroika AS. Ledelsen i Fjord1 i 2016: NOK i 1000 Lønn Bonus Naturalytelser Naturalytelser Annen godtgjørelse Pensjon Sum Dagfinn Neteland (CEO frem til ) Anne Mari Sundal Bøe (CFO) Andrè Høyset (CEO fra ) Deon Mortensen (CTO) Tor Vidar Kittang (Prosjektdirektør) Sum lønn og ytelser til lededende personer i

141 Styremedlemmer 2016: NOK i 1000 Sum Pål W. Lorentzen (Styreleder fra ) 300 Reidar Jørgen Sandal (Styreleder frem til ) Vidar Grønnevik (Styremedlem fra ) 54 Nils R Sandal 6 Vegard Sævik (Styremedlem) 104 Bente Iren Næsse (Styremedlem fra ) 77 Janicke Westlie Driveklepp (Styremedlem fra ) 10 Daniel Nedrelid 42 Lars Birkeland 8 Per Sævik (Styremedlem fra ) 50 Øyvind Oksnes 50 Heidi Kathrin Osland (Styremedlem frem til ) Arvid Andenæs (Styremedlem frem til ) 53 Arnstein Amås (Ansatterepresentant) 84 Atle Olav Trollebø (Ansatterepresentant) 78 Sum ytelser til styret i Revisjonshonorar Revisor i Havilafjord AS I NOK Lovpålagt revisjon (inkludert teknisk bistand med årsregnskap) Skatterådgivning (inkludert teknisk bistand med ligningspapirer) 7 Andre tjenester 35 Sum Revisor i Fjord1 ASA konsernet I NOK Lovpålagt revisjon (inkludert teknisk bistand med årsregnskap) Skatterådgivning (inkludert teknisk bistand med ligningspapirer) Andre tjenester Sum

142 Note 19 Hendelser etter balansedagen Nye kontrakter Møre og Romsdal Fylkeskommune har tildelt Fjord1 ASA en ny kontrakt bestående av fire ferjesamband. Kontraktene er på 11 år og har oppstart i Det har vært anbudskonkurranse på kontrakten Indre Sogn. Fjord1 har ikke fått fornyet sambandene Mannheller Fodnes og Dragsvik Hella Vagnsnes som inngår i denne kontrakten. Det har vært anbudskonkurranse på kontrakten Sunnmørspakken. Fjord1 har ikke fått fornyelse på sambandet Festøya Solavågen som inngår i denne nye kontraktspakken. Fjord1 er tildelt kontrakt om drift av fire ferjesamband på Indre Sunnmøre. Kontrakten gjelder for perioden til fartøy skal driftes under denne kontrakten. Nye trekkfasiliteter Konsernet har i mars 2018 inngått nye låneavtaler med DNB og Nordea for trekkfasiliteter på NOK millioner. Fjord1 har tatt opp et obligasjonslån på NOK 1 milliard som ble notert på Oslo Børs den 14. mai Det er signert term sheet med GIEK for finansiering av nybygg kontrahert ved norske verft. I oktober 2018 inngikk konsernet en låneavtale med DNB og Nordea på millioner med garanti fra GIEK på NOK 900 millioner. Utbytte Det ble vedtatt å utbetale et utbytte på NOK 270 millioner fra Fjord1 på generalforsamlingen 22. mai Nybyggingskontrakter Fjord1 har bestilt fem nye ferjer i mars 2018 med design fra Havyard Design & Solutions til bygging på Havyard Ship Technologies verft i Leirvik i Sogn og Fjordane. Ferjene skal leveres i 2018 og 2019, og den totale kontraktsverdien er rundt NOK 800 millioner. Fjord1 har bestilt to nye ferjer hos tyrkiske Cemre med levering i Fjord1 har bestilt en ny ferje for bygging hos det tyrkiske verftet Tersan.

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145 Appendix 3 Morselskap tall i 1000 Revenue statement Havilafjord AS Konsern Operating income and operating expnistes Revenue 0 Other operating income 0 _0_ Operating Income Raw materials and consumables used Payroll expenses Depreciation and amortisation expense Other operating expenses Operating expenses Operating profit Financial income and expenses Income from subsidiaries and other group entities Income from associated companies Other interest income Other financial income Other Interest expenses Other financial expenses Net financial income and expenses Operating result before tax Tax on ordinary result Annual net profit Minority share Brought forward Dividend To other equity Total allocated Qavilafjord AS Side 1

146 Morselskap AHe tall i 1000 Balance sheet Havilafjord AS Konsern Assets Note Fixed assets Intangible fixed assets Deferred tax asset Total intangible assets 0 0 Tangible fixed assets 0 0 Buildings and land Ships _ Equipment and other movables Total tangible fixed assets S Financial fixed assets Investments in subsidiaries Loans to group companies Investments in associated companies Investments in shares _ Andre fordringer Total financial fixed assets Total fixed assets Current assets 0 0 Inventories Debtors 0 0 Accounts receivables _ Other receivables Total debtors Investments 0 0_ Quoted investment shares Total investments Cash and bank deposits Total current assets Total assets Havilafjord AS Page 1

147 Morselskap Alle tall i 1000 Balance sheet Havilafjord AS Konsern Equity and liabilities Note Restricted equity Share capital Share premium reserve Total restricted equity Retained earnings Other equity Minority Total retained earnings Total equity Liabilities Provisions Deffered tax Total provisions Other long-term liabilities Bonds Liabilities to financial institutions Other long term liabilities Total of other long term liabilities Current liabilities Trade creditors Tax payable Public duties payable Other short term liabilities Total short term liabilities Total liabilities Total equity and liabilities Fosnavag The board of Havilafjord AS Njal Saevik chairman of the board Per Sasvik Vegard Saevik member of the board Hege Saevik Rabben member of the board Havilafjord AS Page 2