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 0010825284

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 0010825284

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 + 5.00%.

The Bonds are expected to be listed and tradable on Oslo Børs on or about 11 January 2019.

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.

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Managers

The date of this Prospectus is 10 January 2019

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 2019.

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.

TABLE OF CONTENTS

1. SUMMARY...... 4

2. RISK FACTORS ...... 12

3. RESPONSIBILITY STATEMENT ...... 16

4. INFORMATION ABOUT THE COMPANY AND THE GROUP ...... 17

5. FINANCIAL INFORMATION ...... 22

6. THE BONDS ...... 29

7. BOARD AND MANAGEMENT ...... 40

8. ADDITIONAL INFORMATION ...... 44

9. DEFINITIONS AND GLOSSARY OF TERMS ...... 46

APPENDICES Appendix 1 Bond Terms

Appendix 2 Havilafjord AS audited consolidated annual report 2017 & 2016

Appendix 3 Havilafjord AS unaudited Q3 report 2018

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 This summary should be read as introduction to the prospectus. Any decision and warning 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 Not applicable. The Prospectus will not be used in subsequent resales by prospectus in financial intermediaries resales by financial intermediaries

Section B – Issuer B.1 Legal and The legal and commercial name of the Company is Havilafjord AS. commercial name

B.2 Domicile, The Company is incorporated in Norway with registration number 897 211 572 legal form, and organised as a private limited liability company in accordance with the legislation and Norwegian Private Limited Companies Act. country of incorporation

B.3 Nature of The only business of the Company is to own 51.5% of the shares in the listed current company Fjord1 ASA. Fjord1 is the largest ferry company in Norway with 17.3 operations million passenger car equivalents (“PCE”) transported in 2017, representing an and estimated market share of 49% according to Management estimates. The ferry principal and passenger boat activity is based on long-term contracts with public road activities, authorities. Fjord1 currently has a total of 22 contracts with public road products and authorities, covering 29 ferry connections. markets 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: 979 366 256. The Company’s only asset is the holding of 51.5% of the shares in the Oslo Børs listed company Fjord1 ASA, org no: 983 472 583 (“Fjord1”)

B.9 Profit forecast Not applicable. The Company have not made any profit forecasts or estimates. or estimate

B.10 Qualifications Not applicable. There are no qualifications in the audit reports. in the audit report

B.12 Selected There has been no material adverse change in the prospects of the Issuer since historical key the data of its last published audited financial statements. There has been no financial significant changes in the financial or trading position after Annual Report information, 2017. material adverse Havilafjord AS – annual consolidated accounts (audited) changes in prospects and Balance sheet (NOK thousands) 31.12.2017 31.12.2016 significant changes in the Total non-current assets 4,956,476 5,106,118 financial or Total current assets 687,277 715,660 trading Total assets position. 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) 31.12.2017 31.12.2016

Total operating income 2,794,135 550,795 Total operating expenses (1,834,949) (411,631) Operating profit (EBIT) 411,441 678,184 Net financial income/(expenses) (82,075) 14,811 Profit/(loss) before tax 329,366 692,995 Total comprehensive income for the year 287,856 700,266

Cash flow statement (NOK thousands) 31.12.2017 31.12.2016

Net Cash flow from operating activities 849,633 206,998 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 521,658 586,422

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 The Group is inter-related with regard to both financial and operational dependence matters and the Group companies are as such dependent on each other. As all on other operations are carried out in, and all fixed assets and employees are held by entities Fjord1, the Company is dependent on the financial and operational performance of Fjord1.

B.15 Principal Havilafjord AS is a special purpose vehicle fully owned by Havila Holding AS, activities 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 04.06.2018 of NOK 2.822bn.

Fjord1 is listed on Oslo Børs under the ticker FJORD.

B.16 Ownership The Company is directly controlled by Havila Holding AS, with is controlled and control 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 FRN Senior secured open Bonds with ISIN NO 0010825284 of security

C.2 Currency of NOK the securities issue

C.5 Restrictions The Bonds are freely tradable. Bondholders may however be subject to on the free purchase or transfer restrictions under local laws to which a Bondholder may transferability be subject (due e.g. to its nationality, its residency, its registered address, its of the place(s) for doing business). Pursuant to the Bond Terms, each Bondholder securities must ensure compliance with applicable local laws and regulations at its own cost and expense.

C.8 Rights At the Bondholders’ meeting each Bondholder has one vote for each bond he attached to owns, save for any bonds owned by the Issuer itself which do not carry voting the Bonds 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.

C.9 Terms of the  Coupon rate: NIBOR + Margin Bonds  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 100.00% 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 The Bonds have a derivative component in the interest payment linked to the component Norwegian Interbank Offered Rate (NIBOR).

C.11 Admission to An application for admission to trading on the Oslo Børs will be made once trading the Prospectus has been approved and within 6 months of the Issue Date.

Section D – Risks D.2 Key  Risks in the relation to the share price development of the Fjord1 listed information shares. on the key risks that are  Risks in relation to the Fjord1’s contracts, including operational, technical, specific to the commercial and political. As it is impossible to insure against all issuer 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.

D.3 Key All investments in interest bearing securities have risk associated with such information investment. The risk is related to the general volatility in the market for such on the key securities, varying liquidity in a single bond issue as well as company specific risks that are risk factors. There are four main risk factors that sum up the investors' total specific to the risk exposure when investing in interest bearing securities: liquidity risk, securities 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.

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.

Section E – Offer E.2b Reasons for The Initial Loan Amount (net of fees and legal cost of the Managers and the the offer and Bond Trustee and any other cost and expenses incurred in connection with use of the Bond Issue) shall exclusively be employed for (i) repayment of Existing proceeds Debt, and (ii) general corporate purposes.

E.3 Terms and Not applicable. The Prospectus relates to the listing of already issued Bonds. conditions of the offer

E.4 Material The Managers or their affiliates have provided from time to time, and will interests 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. E.7 Estimated Not applicable. The Company will not charge any expenses to the investors. expenses charged to the investor by the issuer or the offeror

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 www.fjord1.no (www.fjord1.no/eng/Investor-Relations).

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

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.

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.

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) 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 (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 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.

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

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 897 211 572. 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 +47 70 08 45 00.

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 Fjord1.

4.1.1 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 983 472 583. 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 +47 57 75 70 00, and its web address is www.fjord1.no.

According to the articles of association, the main purpose of Fjord1 is to conduct transportation, communications and tourism.

4.2.1 Share capital and ownership

Fjord1 currently has a share capital of NOK 250 000 000 divided into 100 000 000 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 / Offshore/ Real estate Tourism Shipbuilding Transportation Advertisement fisheries

Ownership stakes Ownership Ownership in Havila Hotels 40.1 per cent. Fjord1 ASA in Bakkar og Berg stakes in hotels several AS ownership in Widerøe AS Media AS and and property companies, Fosnavåg Vekst Havyard Group Nordic development among others AS ASA Mediatech AS companies P/F Skansi Havila Offshore, Axxis Kystruten AS Geo Solutions AS and Volstad Maritime AS

100% 50% 49% 100% • Nye Fanafjord AS • The Fjords Fartøy 1 • ÅB Eigedom AS 100% DA 66% 100% • Hareid Trafikkterm. • Fjord Tours AS AS 63% 30.6% • Måløy Reisebyrå AS 100% • WF Holding AS 34% • Widerøe AS 100%

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%

PASSENGER FERRIES TOURISM OTHERS BOATS

• Fanafjord AS • The Fjords DA • Kystekspressen ANS • Bolsønes Verft AS 100% 50% 49% 100%

• Nye Fanafjord AS • The Fjords Fartøy 1 DA • ÅB Eigedom AS 100% 100% 66%

• Fjord Tours AS • Hareid Trafikkterm. 30.6% AS 63%

• Måløy Reisebyrå AS 100%

• WF Holding AS 34%

• Widerøe AS 100%

4.5 Principal activities

4.5.1 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.

4.5.2 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.

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.

4.5.3 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 2018.

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

4.6.1 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

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 2016. 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 2016. 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.

4.6.2 Competitive position of Fjord12

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 2017. 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 2017. 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 2017.

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 Q3 2018 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

Q3 2018 2017 (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. 993 606 650 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.

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 Definition Reconciliation Explanation of use Performance Measure

EBITDA EBITDA is Earnings Before EBITDA is used as a Management believes this Interest, Tax, Depreciation financial measurement in measure enables an and Amortisation, the Company’s audited evaluation of the Group’s representing the operating annual financial operating profitability on profit/loss before statements, and measures a more variable cost basis deducting interest and the net income with as it excludes depreciation taxes, amortisation and interest, taxes, and amortisation expense write-down of intangible depreciation and related primarily to capital assets and depreciation amortisation added back. expenditures and and write-down of No adjustments are made acquisitions that occurred tangible assets. compared to IFRS. in the past, and it enables an evaluation of operating performance and ability to generate cash flow. EBIT EBIT is Earnings Before EBIT is used as a financial Management believes Interest, Tax, representing measurement in the EBIT is a good measure for revenue less operating Company’s audited annual an evaluation of the profit/loss, before financial statements, and Group’s profitability and deducting interest and measures the operating operating efficiency. taxes. profit after depreciation and amortisation. No adjustments are made compared to IFRS.

5.3 Havilafjord AS – annual consolidated accounts (audited)

5.3.1 Consolidated statement of financial position (NOK thousands)

31.12.2017 31.12.2016 Deferred tax asset 18,327 21,328 Contracts 259,536 507,593 Property, plant and equipment 4,263,181 3,944,339 Investment in associates and joint ventures 408,581 361,709 Loan to related parties 646 262,866 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 521,658 586,422 Total current assets 687,277 715,660 Total assets 5,643,753 5,821,778

Share capital 200 200 Surplus capital 410 369,410 Other paid-in capital 29650 29,650 Other equity 863,295 852,621 Non-controlling interests 1,132,467 3,881 Total equity 2,026,022 1,255,762

Non-current borrowings 1,687,692 595,000 Non-current derivatives 12,147 42,403 Post-employment benefits 23,671 14,605 Deferred tax liabilities 529,202 539,971 Other non-current liabilities 347,965 694,209 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 169,477 120,711 Tax payable 40,055 2,675 Public duties payable 93,896 90,269 Other current liabilities 556,734 532,888 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

5.3.2 Consolidated statement of comprehensive income (NOK thousands)

31.12.2017 31.12.2016 Revenue 851,192 241,287 Other income 1,942,943 309,508 Total operating income 2,794,135 550,795

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 20,641 120,056 Gains/(losses) from purchase of associates 262,579 Gain from bargain purchase 296,953 EBITDA 979,827 818,751 Depreciation (568,387) (140,568) EBIT 411,441 678,184

Share of profit/(loss) from associates 42,963 28,752 Financial income 6,601 663 Interest cost (149,774) (44,854) Other financial items 18,135 30,250 Net financial items (82,075) 14,811

Profit before tax 329,366 692,995 Tax expense (33,705) (3,724) Profit for the period 295,660 689,270

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 287,856 700,266

5.3.3 Consolidated statement of cash flows (NOK thousands)

31.12.2017 31.12.2016 Profit/(loss) before tax 326,366 692,995

Adjustments: Depreciation 568,387 140,568 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 954,794 251,189 Interest payments (109,110) (44,854) Interest income received 6,624 663 Paid taxes (2,675) 0 Cash flows from operating activities 849,633 206,998

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 985,250 617,000 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 521,658 586,422

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 139,050 167,500 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 105,444 854,111 Profit before tax 105,301 852,695 Income tax expense 0 0 Profit for the period 105,301 852,695

BALANCE SHEET NOK '000 30.09.2018 30.09.2017

Deferred tax asset 24,333 19,592 Investment in subsidiaries 681,980 681,980 Loans to group companies 135,696 386,092 Total non-current financial assets 817,676 1,068,072 Total non-current assets 842,009 1,087,664 Cash and cash equivalents 385,756 165,510 Total current assets 385,756 165,510 Total assets 1,227,764 1,253,174

Share capital 200 200 Share premium reserve 410 410 Other equity 105,092 879,658 Total equity 105,702 880,268

Bond loan 750,000 0 Other non-current liabilities 370,340 369,730 Total non-current liabilities 1,120,340 369,730

Trade payables 1,720 3,176 Public duties payable 2 0 Total current liabilities 1,722 3,176 Total liabilities 1,122,062 372,906 Total equity and liabilities 1,227,764 1,253,174

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

5.6.1 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 2018.

5.6.2 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 3 336 610 (source: Fjord1 Q3 2018 report).

Newbuild Delivery PCE TBN 1 Q4 2018 120 TBN 2 Q4 2018 120 TBN 3 Q1 2019 120 TBN 4 Q1 2019 120 TBN 5 Q3 2019 120 TBN 6 Q3 2019 120 TBN 7 Q3 2019 130 TBN 8 Q3 2019 83 TBN 9 Q3 2019 83 TBN 10 Q4 2019 83 TBN 11 Q4 2019 80 TBN 12 Q4 2019 80 TBN 13 Q3 2019 50 TBN 14 Q4 2019 50 TBN 15 Q4 2019 50 TBN 16 Q4 2019 50 TBN 17 Q4 2019 50 TBN 18 Q4 2019 120

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.

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 0010825284

Securities type Bond issue with floating rate.

Issuer Havilafjord AS (the Company)

Security Type Bond issue with floating rate

Bond Trustee 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. Managers Fearnley Securities AS, Grev Wedels Plass 9, NO-0107 Oslo, Norway; and SpareBank 1 Markets AS, Olav Vs gate 5, NO-0114 Oslo, Norway.

Currency NOK

Maximum Loan NOK 1,000,000,000. Amount

Initial Loan NOK 750,000,000. Amount

Purpose of the The Initial Loan Amount (net of fees and legal cost of the Managers and the Bond Bond Issue 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.

Reference rate 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 12.00 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:

http://www.oslobors.no/markedsaktivitet/niborOverview?newt__ticker=NIBOR3M

Margin 5.00%

Interest Rate Floating rate of 3 month NIBOR + 5.00% per annum.

Yield 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:

퐼푛푡푒푟푒푠푡 푎푚표푢푛푡 = (푁표푚푖푛푎푙 퐴푚표푢푛푡 × 퐼푛푡푒푟푒푠푡 푅푎푡푒 × 퐼푛푡푒푟푒푠푡 푅푎푡푒 퐷푎푦 퐶표푢푛푡 퐹푟푎푐푡푖표푛)

Example calculation for a 90 days Interest Period if applicable Interest Rate equals 5.00 per cent.:

5.00 90 퐼푛푡푒푟푒푠푡 푎푚표푢푛푡 = (NOK 500,000 × × ) = NOK 6,250 100 360 Issue Date 19 June 2018.

Final Maturity 19 June 2023. Date

Amortisation The Bonds shall be repaid in full on the Final Maturity Date at a price of 100.00% of the Nominal Amount (par value).

First Interest 19 September 2018. Payment Date

Last Interest Final Maturity Date. Payment Date

Interest Interest on the Bonds will commence to accrue on the Issue Date and shall fall due Payments 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, 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 The last day of each Interest Period, i.e. 19 June, 19 September, 19 December and 19 Date 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 The Bonds shall constitute senior debt obligations of the Issuer and shall be secured Bonds 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.

Call Options The Company may redeem the Bonds (in whole or in part) at any time from and (American) including:

(i) 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; (ii) 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 101.75% of the Nominal Amount; (iii) the Interest Payment Date falling 54 months after the Issue Date to, but not including the Final Maturity Date at a price equal to 100.50% of the Nominal Amount; and

(iv) 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.

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”). Security All amounts outstanding under the Finance Documents, including but not limited to principal, premium, interest, default interest, fees and expenses, shall (subject to

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) 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”)

(iii) 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

(iv) a Norwegian law first priority pledge over the LTV Cure Escrow Account (the “LTV Cure Escrow Account Pledge”).

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. Financial The Issuer undertakes to comply with the following financial covenants during the Covenants 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 During the term of the Bonds, the Issuer shall (unless the Bond Trustee or the Undertakings 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

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

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 Means: Distribution (i) 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. (ii) 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 Means (always subject to compliance with the relevant Financial Covenants): Financial Indebtedness (i) this Bond Issue and the Finance Documents (including any Tap Issue); (ii) 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; (iii) any Shareholder Loans; and (iv) 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.

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 Means: Security (i) any security under the Finance Documents; (ii) (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 (iii) created by customary escrow arrangements for Financial Indebtedness described in (iv) of Permitted Financial Indebtedness. Tap Issue 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 The Issuer shall of its own accord make management and financial Undertakings 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 Means the occurrence of an event or a series of events whereby a person or group of Control Event 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.

Listing Failure Means that: Event (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 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. Issuer's The Issuer has the right to acquire and own the Bonds. Such Bonds may at the ownership of Issuer’s discretion be retained by the Issuer, sold and discharged against the Bonds remaining Bonds.

Governing law Norwegian for the Bond Terms, Norwegian or local law as applicable for the Security and jurisdiction Documents.

Taxation 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. Registration 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.

Paying Agent Sparebank 1 SMN

Market making No market-maker agreement has been made for this Bond Issue.

Transfer Bondholders located in the United States will not be permitted to transfer the Bonds restrictions 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).

Limitation of All claims under the Bond Terms for payment, including interest and principal, will claims 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.

Business Day Means that if the last day of any Interest Period originally falls on a day that is not a Convention 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).

Bondholders’ The Bondholders’ Meeting represents the supreme authority of the Bondholders Meeting 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 The issuance of the Bonds was unanimously resolved by the Issuer’s Board of approval Directors on 13 June 2018.

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 “HAVFJR01”.

6.3 Expenses and use of proceeds

6.3.1 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”).

6.3.2 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 380,000,000 Transaction Costs):

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) 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.

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.

7. BOARD AND MANAGEMENT

7.1 Board of Directors

7.1.1 Overview

The Company’s board of directors consists of members of the Sævik family:

Name Position Per Rolf Sævik Chairman Vegard Sævik Board Member Njål Sævik Board Member Hege Sævik Rabben 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 Position Vegard Sævik Chairman Per Rolf Sævik Board Member Siri Beate Hatlen Board Member Frederik Wilhelm Mohn Board Member Siri Hatland Board Member

Fjord1’s business address serves as c/o address in relation to the board of directors.

7.1.2 Information on the members of the board of directors of the Company

Per Rolf Sævik  Long experience in the maritime industries and has held various board Chairman positions. Member of the Norwegian Parliament from 1989 to 1993.

Vegard Sævik  Sævik is also Chairman of the board of Havyard Group ASA and is Member of the employed with Havila Holding AS. board  Mr. Sævik has held several board positions in various external and internal companies.

Njål Sævik  Mr. Sævik is a trained ship master and was educated in administration and Member of the management at Ålesund Maritime College, graduating in 1994. He has been board the Chief Executive Officer of Havila Shipping since the Company was established in 2003.  Mr. Sævik holds several board positions in various external and internal companies.

Hege Sævik  Hege Sævik Rabben (born 1971) is now working for Havila AS. She is a Rabben trained children's nurse and has worked in a day care centre as a children's Member of the nurse. She is a member of several boards in the Havila Group. board  Ms. Sævik Rabben holds several board positions in various external and internal companies.

7.1.3 Information on the members of the Board of Directors of Fjord1

Vegard Sævik  Member of the board since 2011 and Chairman of the board since 2017. Chairman  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  Observer from 2011 and member of the board since 2014. Member of the  Managing Director of Havila Holding AS and Havilafjord AS. board  Long experience in the maritime industries and has held various board positions. Member of the Norwegian Parliament from 1989 to 1993.

Siri Beate Hatlen  Seasoned business executive and a board member with more than 30 years' Member of the experience. board  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  Member of the board since 2017. Mohn  Independent Director at Transocean Ltd., Director at DOF ASA and Member of the Chairman and Managing Director of the investment company Perestroika board AS.  Previously Chairman at Songa Offshore and extensive industrial experience from maritime sectors.

Siri Hatland  Member of the board since May 2018. Member of the board

Atle Olav Trollebø  Member of the board since 2008 and representative of the employees.

Member of the  Employed as ship master in Fjord1 with 20 years' experience. board

Geir Offerdal  Member of the board since July 2017 and representative of the employees. Member of the  Employed as seaman in Fjord1. board

7.2 Management

7.2.1 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.

7.2.2 Information on the members of the management of Fjord1

The table below sets forth the current executive management of Fjord1:

Name Position Dagfinn Neteland CEO Anne-Mari Sundal Bøe CFO Andrè Høyset COO Nils Kristian Berge PD Deon Mortensen 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  CEO of Fjord1 in the period 2014-2015 and since 2017. Chief Executive  Previous positions include CEO of Tide ASA, CEO of HSD ASA, CEO of Officer Gjensidige Vest and Regional Manager of Nordea.

Anne-Mari Sundal  CFO in Fjord1 since 2013. Bøe  Previous experience as Group Chief Accountant in INC Invest AS and Chief Financial Senior Manager in PwC. Officer  Master in Business and Economics.

Andrè Høyset  Over 20 years of experience from various positions at Fjord1, including Chief Operating Head of IT and Project Director. Officer  Master of Science in Information Technology.

Nils Kristian Berge  More than 30 years of experience from various positions within the Project Director 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  Experience from Fjord1 since 2010. Technical Director  Previous positions include Senior Vice President of Fjord1 Fylkesbaatane and HSE AS, Technical Director of STX Norway Florø and Project Manager of Odfjell SE.

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: http://wpstatic.idium.no/nues.no/2018/10/NUES_eng_web_okt2018_2.pdf.

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

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 +47 70 08 09 00):

 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 Q3 2018 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.

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 ...... The Board of Directors of the Company

Bond Issue ...... 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 0010825284

Bonds ...... The bonds issued under the Bond Issue

Bond Terms ...... The bond terms containing the final terms and conditions in respect of the Bonds

Bond Trustee ...... Nordic Trustee AS

Bondholders ...... Holders of the Bonds

Bondholders’ meeting ...... The supreme authority of the bondholders community in all matters relating to the Bonds

Business Day ...... Any day on which both the relevant CSD settlement system is open, and the relevant Bond currency settlement system is open

Company ...... Havilafjord AS

CSD ...... The central securities depository in which the Bonds are registered, being Verdipapirsentralen ASA

EBIT ...... Earnings Before Interest and Taxes

EBITDA ...... Earnings Before Interest, Taxes, Depreciation and Amortization

EEA ...... European Economic Area

EU ...... European Union

Finance Documents ...... The finance documents in connection with the Bonds (as defined in the Bond Terms)

Fjord1 ...... Fjord1 ASA (org. no. 983 472 583), 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.

Forward-looking statements ...... Statements relating to, without limitation, projections and expectations regarding the Group’s future financial position, business strategy, plans and objectives

FSA ...... The Norwegian Financial Supervisory Authority

Group ...... The Company and its Subsidiaries

Group Company ...... Each company being part of the Group

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 ...... Listing of the Bonds on Oslo Børs

Management ...... The management of the Company

Managers ...... Fearnley Securities AS and SpareBank 1 Markets AS as joint lead managers

Member States ...... The member states of the EEA which have implemented the Prospectus Directive

NOK ...... Norwegian kroner, the lawful currency of Norway

Norwegian Securities Trading Act ...... Norwegian Act no. 75 of June 29, 2007 on securities trading

Oslo Børs ...... The Oslo Stock Exchange p.a...... Per annum

Parent ...... Havila Holding AS (org no. 979 366 256)

PCE ...... Passenger car equivalents

Prospectus ...... This prospectus, dated as stated herein

Prospectus Directive ...... Directive 2003/71/EC

Regulation S ...... Regulation S under the U.S. Securities Act

Security Agent ...... Nordic Trustee AS

Stamdata ...... www.stamdata.com

Subsidiary ...... A company over which the Company has decisive influence

Term Sheet ...... The term sheet for the Bonds

U.S. Securities Act...... The United States Securities Act of 1933, as amended

VPS ...... VPS Holding ASA (the Norwegian Central Securities Depository) Biskop Gunnerus gate 14 A, P.O. box 4, N- 0051 Oslo, Norway

HAVILAFJORD AS

Registered Office

Havilafjord AS

Mjølstadnesvegen

6092 Fosnavåg

Managers Fearnley Securities AS Grev Wedels plass 9 0107 Oslo, Norway

SpareBank 1 Markets AS Olav Vs gate 5 0114 Oslo, Norway

Appendix 1

Executíon versíon

BOND TERMS

FOR

Havilafjord AS FRN senior secured NOK 110001000,000 open bond issue 2018t2023

rsrN No0010825284

% Contents

Clause Page

1. INTERPRETATION ...J ) ,t4 3. THE BONDHOLDERS ...... I5 4. ADMISSION TO LISTING ...... ,...... 16 5. REGTSTRATION OF THE BONDS...... ,.16 6. CONDITIONS FOR DISBURSEMENT ...... 16 7. REPRESENTATIONS AND WARRANTIES...... I8 8. PAYMENTS IN RESPECT OF THE BONDS...... ,,21 9. INTEREST 10. REDEMPTION AND REPURCHASE OF BONDS .,23 11. PURCHASE AND TRANSFER OF 8ONDS...... )\ 12. INFORMATION LINDERTAKINGS )6 13. GENERAL AND FINANCTAL UNDERTAKINGS ...... 7 t4. EVENTS OF DEFAULT AND ACCELERATION OF THE BONDS...... 30 15. BONDHOLDERS' DECISIONS .33 16. THE BOND TRUSTEE ...... 37 17. AMENDMENTS AND WAIVERS...... ,...... ,,.,,42 18. MISCELLANEOUS...... 43 19. GOVERNING LAW AND JURISDICTION ...... 45

SCHEDULE I COMPLIANCE CERTIFICATE SCHEDULE 2 RELEASE NOTICE - ESCROW ACCOUNT

zl¿t qÅ BOI\ID TERMS between

ISSUER: Havilafiord AS, a company existing under the laws of Norway with registration number 897 2ll 572 and LE[-code 5 493002 AFQBWBLXZ lT 47 ; and

BOND TRUSTEE: Nordic Trustee AS, a company existing under the laws of Norway with registration number 963 342 624 and LEI-code 5493OOXAKTM2BMKIPT85.

DATED: l8 June 2018

These Bond Terms shall remain in effect for so long as any Bonds remain outstanding.

I INTERPRETATION

1.1 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

"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 % *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 "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 c) any amount raised pursuant to any note purchase facility or the issue ofbonds, notes, debentures, loan stock or any similar insffument; d) 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); e) 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);

Ð 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; s) 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); h) 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. 983 472 583), a company whose shares are listed on UFJORDU Oslo Børs under ticker and of which the Issuer at the date of the Bond Terms owns 51.5 per cent.

olqt % "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 13.15 (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) is unable or admits inability to pay its debts as they fall due;

(b) suspends making payments on any of its debts generally; or

(c) 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. 13461200A 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 "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 2018.

'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 13.15 (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. (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. 979 366 256), 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- (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 13.15 (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) 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

(iÐ 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;

(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 "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 12.15 (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 10.15 a.m. (Oslo time) on the Interest Quotation Day shall be used;

(b) ifno screen rate is available for the relevant Interest Period;

(Ð the linear interpolation between the two closest relevant interest periods, and with the same number of decimals, quoted under paragraph (a) above; or

(ii) 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

(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 "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 non- amortizing, (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 13.15 (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 "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) headings are for ease ofreference only;

(b) words denoting the singular number will include the plural and vice versa;

(d) references to a time are references to Central European time unless otherwise stated;

(e) references to a provision of "lârv" is a reference to that provision as amended or re- enacted, 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 ?¿ 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.

2. THE BONDS

2.1 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,

(d) The ISIN of the Bonds is NO 0010825284. All Bonds issued under the same ISIN will have identical terms and conditions as set out in these Bond Terms.

2.2 Tenor ofthe Bonds The tenor of the Bonds is from and including the Issue Date to but excluding the Maturity Date.

2.3 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 % 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.

3. THE BONDHOLDERS 3.1 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 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.

5. REGISTRATION OF TI{E BONDS

5.1 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.

6. CONDITIONS FOR DISBURSEMENT

6.1 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, (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 (2003171 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;

17148 //s (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").

6.2 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.

63 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 (a) at the date of these Bond Terms;

(b) at the Issue Date;

(d) at the date of issuance of any Additional Bonds; and

(e) on each date of release from the LTV Cure Escrow Account:

7.1 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.

7.2 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.

7.3 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.

7.4 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.

7.5 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¿ '%. 7.6 Aufhorizatlons and consents All authorisations, consents, approvals, resolutions, licenses, exemptions, filings, notarizations or regishations required:

(i) 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

(ii) 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.

7.10 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 2.4.

7.13 Security No Security exists over any of the present assets of any Group Company in conflict with these Bond Terms.

zolqs ,/r 8. PAYMENTS IN RESPECT OF THE BONDS

8.1 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 (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 % 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.

9. INTEREST

9.1 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.

10. REDEMPTION AND REPURCIIASE OF BONI}S

10.1 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.

10.2 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 103.50 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 101.75 per cent. of the Nominal Amount for each redeemed Bond; and

zs/as Ø (¡iÐ the Interest Payment Date in December 2022 to, but not including, the Maturþ Date at a price equal to 100.50 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.

10.3 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 101.00 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.

10.4 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 106.90 per cent. of the Nominal Amount of each redeemed Bond;

zclqe fr,2 (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 10.4.

(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.

10.5 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.

10.6 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.

11. PURCHASE AND TRANSTAR OT'BONDS

11.1 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). rt.2 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 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. INFORMATION UNDERTAKINGS t2.t 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.

12.2 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 13.15 (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,

12.3 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.

12.4 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 % (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,

13. 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).

13.1 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.

13.2 Distr¡butions The Issuer shall not make any Distribution other than a Permitted Dishibution.

13.3 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.

13.5 Corporate status The Issuer shall not change its type of organization (other than to an ASA) or jurisdiction of organisation.

13.6 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 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.

13.8 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.

13.9 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.

13.11 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.

13.12 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/( 13,14 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.

13.15 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).

(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 (A) 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.

(B) 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. EVENTS OF DEFAULT AND ACCELERATION OF THE BONDS t4.l 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

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 %, 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) 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

(D) 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

(E) 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

(F) 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

(G) for (A) - (D) above, any analogous procedure or step is taken in any jurisdiction in respect ofany such company,

zt/¿e % 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.

(, Creditor's process

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.

14.2 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.

14.3 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.

14.4 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 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. BONDHOLDERS' DECISIONS ls.1 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.

15.2 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;

33/4s

R/te (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 % 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( /¿) 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.

15.5 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 (iÐ provisions which are otherwise in conflict with the requirements of this Clause

1 5.5 (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).

16. THE BOND TRUSTEE

16.1 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 % 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" 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.

16.3 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.

16.4 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.

(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 (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.

16.5 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' (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 % 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. AMENDMENTS AND WAIVERS t7,t 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.

17.2 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. t7.3 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 18. MISCELLAI\IEOUS

18.1 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.

18.2 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.

18.3 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, e-mail 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 e-mail, 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, e-mail 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 (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.

18.4 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 % 19. COVERNINC LA}V AIIID JT]RISDICTION 19.1 Governing law These Bond Terms are governed by the laws of the Relevant Jurisdiction, without regard to its conflict of law provisions.

19,2 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.

19.3 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.

-----000-----

ts/ts % These Bond Terms have beçn executed in two originals, of whish the Issuer and tho Bond Trustee shall retain one each.

SIGNATTJRES:

Ilavilafiord AS Nordic Trustee AS as Issuer as Bond Trustee and Sacurity Agent: Vhlr,* 'PgR Set)ìk By: By: Lars Erik Lærum posirion: t ù*,b¡n Position:

q6l+s SCHEDULE 1 COMPLIANCE CERTIFICATE

Idate]

Havita{iord AS FRN senior secured open bond issue 2018/2023ISIN NO0010825284

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 13.15 (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 SCHEDULE 2 RELAASE NOTICE - ESCROW ACCOUNT

ldatel

Dear Sirs,

Havilafjord AS FRN senior secured open bond issue 2018/2023ISIN NO0010825284

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 Appendix 2

Havilafjord AS Konsernregnskap

2017 Konsolidert resultatregnskap

Beløp i NOK 1,000 Note 2017 2016

Salgsinntekt 4,15 851 192 241 287 Annen driftsinntekt 4,6,17 1 942 943 309 508 Sum driftsinntekt 2 794 135 550 795

Varekostnad 17 (433 547) (76 586) Lønn og sosiale kostnader 7,14,18 (946 354) (220 312) Annen driftskostnad 8,16 (455 048) (114 733) Sum driftskostnader (1 834 949) (411 631)

Andel av resultat fra tilknyttet virksomhet 5 20 641 120 056 Gevinst ved oppkjøp tilknyttet virksomhet 2‐ 262 579 Gevinst fra kjøp på gunstige vilkår 2 ‐ 296 953

Driftsresultat før avskrivninger og nedskrivninger (EBITDA) 979 827 818 751

Ordinære avskrivninger 10,11 (568 387) (140 568)

Driftsresultat (EBIT) 411 441 678 184

Andel av resultat fra tilknyttet virksomhet 5 42 963 28 752 Renteinntekt 12 6 601 663 Rentekostnad 12 (149 774) (44 854) Andre finansposter, netto 8 18 135 30 250 Netto finansinntekter / (kostnader) (82 075) 14 811

Ordinært resultat før skattekostnad 329 366 692 995

Skattekostnad på ordinært resultat 9 (33 705) (3 724)

Årsresultat 295 660 689 270

Tilordnet: Aksjonærene i morselskapet 176 080 689 120 Ikke‐kontrollerende eierinteresser 119 580 150 Utvidet konsolidert resultatregnskap

Beløp i NOK 1,000 Note 2017 2016

Årsresultat 295 660 689 270

Utvidet resultat:

Poster som ikke reklassifiseres til resultatet: Andel av utvidet resultat for tilknyttet virksomhet bokført etter egenkapitalmetoden 5 (3 059) 1 363 Aktuarmessige tap på pensjonsforpliktelser ‐ før skatt 14 (4 745) 9 633 Sum (7 804) 10 996

Sum andre inntekter og kostnader før skatt (7 804) 10 996

Årets totalresultat 287 856 700 266

Tilordnet: Aksjonærene i morselskapet 172 061 700 116 Ikke‐kontrollerende eierinteresser 115 795 150 Konsolidert balanse

Beløp i NOK 1,000 Note 31.12.2017 31.12.2016 01.01.2016 Eiendeler Anleggsmidler Utsatt skattefordel 9 18 327 21 328 ‐ Kontrakter ferger 2,11 259 536 507 593 Fartøy, eiendom o.l. 10 4 263 181 3 944 339 ‐ Investeringer i tilknyttet virksomhet 5 408 581 361 709 535 155 Lån til foretak i samme konsern 12 646 262 866 Andre langsiktige eiendeler 12 6 205 8 284 Sum anleggsmidler 4 956 476 5 106 118 535 155

Omløpsmidler Varelager 16 508 14 690 ‐ Kundefordringer 12,17 86 099 78 660 ‐ Andre kortsiktige fordringer 12 63 012 35 888 ‐ Bankinnskudd 12 521 658 586 422 19 686 Sum omløpsmidler 687 277 715 660 19 686

Sum eiendeler 5 643 753 5 821 778 554 841

Egenkapital og gjeld

Egenkapital Aksjekapital 13 200 200 200 Overkurs 410 369 410 369 410 Annen innskutt egenkapital 29 650 29 650 29 650 Opptjent egenkapital 863 295 852 621 152 505 Egenkapital tilordnet morselskapets aksjonærer 893 555 1 251 881 551 765

Ikke‐kontrollerende eierinteresser 1 132 467 3 881 ‐ Total egenkapital 2 026 022 1 255 762 551 765

Langsiktig gjeld Gjeld til kredittinstitusjoner 12 1 687 692 595 000 ‐ Finansielle derivater 12 12 147 42 403 ‐ Pensjonsforpliktelser 14 23 671 14 605 ‐ Utsatt skatt 9 529 202 539 971 ‐ Annen langsiktig gjeld 2 347 965 694 209 ‐ Sum langsiktig gjeld 2 600 677 1 886 188 ‐

Kortsiktig gjeld Gjeld til kredittinstitusjoner 12 130 285 1 910 511 ‐ Leverandørgjeld 12,17 169 477 120 711 3 078 Finansielle derivater 12 26 607 22 775 ‐ Betalbar skatt 9 40 055 2 675 ‐ Skyldige offentlige avgifter 93 896 90 269 ‐ Annen kortsiktig gjeld 12 556 734 532 888 ‐ Sum kortsiktig gjeld 1 017 054 2 679 828 3 078

Sum gjeld 3 617 731 4 566 016 3 078

Sum egenkapital og gjeld 5 643 753 5 821 778 554 841 Konsolidert oppstilling av endringer i egenkapital

Egenkapital tilordnet morselskapets aksjonærer

Aksje‐ Annen innskutt Opptjent Sum Beløp i NOK 1,000 kapital Overkurs egenkapital egenkapital Sum IKE* egenkapital

Egenkapital 01.01.2016 200 369 410 29 650 152 505 551 765 0 551 765

Årsresultat 689 120 689 120 150 689 270 Andre inntekter og kostnader 10 996 10 996 10 996 Totalresultat 700 116 700 116 150 700 266

Ikke‐kontrollerende eierinteresser fra virksomhetssammenslutninger 0 3 731 3 731 Utbytte 00 Transaksjoner med eierne 0 0 3 731 3 731

Egenkapital 31.12.2016 200 369 410 29 650 852 621 1 251 881 3 881 1 255 762

Egenkapital 01.01.2017 200 369 410 29 650 852 621 1 251 881 3 881 1 255 762

Årsresultat 176 080 176 080 119 580 295 660 Andre inntekter og kostnader ‐4 019 ‐4 019 ‐3 785 ‐7 804 Totalresultat 172 061 172 061 115 795 287 856

Endring i eierandel i datterselskaper som ikke medfører opphør av kontroll 338 613 338 613 1 012 790 1 351 403 Utbytte ‐369 000 ‐500 000 ‐869 000 ‐869 000 Transaksjoner med eierne ‐369 000 ‐161 387 ‐530 387 1 012 790 482 403

Egenkapital 31.12.2017 200 410 29 650 863 295 893 555 1 132 466 2 026 022

*Ikke‐kontrollerende eierinteresser Konsolidert kontantstrømoppstilling

Beløp i NOK 1,000 Note 2017 2016

Kontantstrøm fra operasjonelle aktiviteter Resultat før skatt 329 366 692 995

Justert for: Avskrivninger og nedskrivninger 10,11 568 387 140 568 Netto rentekostnader 102 486 44 191 Endring i virkelig verdi av finansielle instrumenter 12 (26 424) (23 175) Gevinst ved kjøp på gunstige vilkår 2 (296 953) Endring i pensjonsforpliktelser 2 552 13 361 Gevinst/tap ved salg av anleggsmidler (4 713) (1 573) Resultat fra investering i tilknyttet virksomhet (63 604) (411 387)

Arbeidskapitaljusteringer: Kundefordringer 12 (7 439) (3 539) Varer (1 818) (2 037) Leverandørgjeld 12 48 766 37 648 Andre tidsavgrensningsposter 7 235 61 091 Kontantstrøm fra operasjonelle aktiviteter 954 794 251 189 Utbetalt rentekostnad (109 110) (44 854) Innbetalt renteinntekt 6 624 663 Betalt skatt (2 675) ‐ Netto kontantstrøm fra operasjonelle aktiviteter 849 633 206 998

Kontantstrøm fra investeringsaktiviteter Investeringer i varige driftsmidler 10 (738 174) (159 732) Utbetaling ved kjøp av aksjer og andeler fratrukket kontanter i oppkjøpt datterselskap 2 (402 160) 191 102 Innbetaling av utbytte fra tilknyttet virksomhet 25 503 24 404 Innbetaling fra lån til foretak i samme konsern 262 220 ‐ Utbetaling fra lån til foretak i samme konsern ‐ (262 866) Innbetaling ved salg av varige driftsmidler 10 103 566 3 309 Netto innbetaling fra langsiktige forpliktelser (178) ‐ Netto kontantstrøm fra investeringsaktiviteter (749 223) (203 783)

Kontantstrøm fra finansieringsaktiviteter Innbetaling fra opptak av ny gjeld 12 985 250 617 000 Innbetaling ved nedsalg Fjord1 ASA 1 351 603 ‐ Nedbetaling av gjeld 12 (1 633 027) (53 479) Utbetalt utbytte (869 000) Netto kontantstrøm fra finansieringsaktiviteter (165 174) 563 521

Netto endring i kontanter og kontantekvivalenter (64 765) 566 736

Kontanter og kontantekvivalenter ved begynnelsen av perioden 586 422 19 686 Kontanter og kontantekvivalenter ved periodeslutt 521 658 586 422 Note 1 Regnskapsprinsipper

Generell informasjon Standarden erstatter de delene av IAS 39 som omhandler Havilafjord konsernet består i hovedsak av aktiviteten i klassifisering og måling av finansielle instrumenter. IFRS 9 datterselskapet Fjord1 ASA. Fjord1‐konsernet sin introduserer nye regler for sikringsbokføring og en ny kjernevirksomhet er konsentrert rundt sjøtransport modell for nedskriving av finansielle eiendeler. gjennom drift av ferger og ekspressbåter, i tillegg til cateringvirksomhet ombord på båtene. Havilafjord AS har IFRS 9 inneholder tre kategorier for klassifisering av forretningskontor i Herøy kommune og selskapet leier finansielle eiendeler; (i) verdsatt til amortisert kost, (ii) lokaler i basebygget på Mjølstadneset, 6090 Fosnavåg. virkelig verdi over utvidet resultat og (iii) virkelig verdi over ordinært resultat. På denne måten eliminerer Utarbeidelse av regnskap standarden de eksisterende IAS 39 kategoriene holdt til Det konsoliderte regnskapet for Havilafjord AS for 2017 forfall, lån og fordringer og tilgjengelig for salg. er utarbeidet i samsvar med International Financial Reporting Standards (IFRS). Konsernet har gjort en vurdering av sine finansielle eiendeler og forpliktelser og forventer ikke at den nye Fortsatt drift standarden skal påvirke klassifiseringen og målingen av Det konsoliderte konsernregnskapet er utarbeidet under disse. forutsetning om fortsatt drift. Ledelsen har vurdert all tilgjengelig informasjon om fremtiden når de har vurdert Den nye nedskrivningsmodellen krever nedskrivninger fortsatt drift, inkludert informasjon knyttet til basert på forventet tap i motsetning til dagens standard kontantstrøm fra eksisterende fergekontrakter og andre (IAS 39) som krever nedskrivning først når tapshendelsen servicekontrakter, avdrag på gjeld og forpliktelser knyttet faktisk har inntruffet. Den nye standarden omfatter til nybyggskontrakter. Prognosene har tatt høyde for finansielle eiendeler verdsatt til amortisert kost, forventet fremtidig inntekt fra anlegg under utvikling. finansielle forpliktelser målt til virkelig verdi over utvidet Basert på disse forutsetningene har ledelsen en fornuftig resultat, kontraktsrelaterte eiendeler under IFRS 15 forventning om at konsernet har tilstrekkelige ressurser Inntekt fra kontrakter med kunder, leierelaterte til å drive virksomheten videre i overskuelig fremtid. fordringer, forpliktelser knyttet til lån og enkelte finansielle garantikontrakter. Konsernet har vurdert Grunnlag for måling effekten dette vil ha for regnskapet og forventer ikke at Det konsoliderte regnskapet er utarbeidet med dette vil ha vesentlig påvirkning på avsetning for tap. utgangspunkt i historisk kost, med unntak av finansielle eiendeler tilgjengelig for salg og finansielle derivater, som Den nye standarden introduserer også utvidede krav til er verdsatt til verkelig verdi. noteopplysninger og endring i presentasjon. Dette er ventet å endre omfanget av konsernets opplysninger om Utarbeidelse av regnskapet i tråd med IFRS krever bruk dets finansielle instrumenter, spesielt i året den nye av enkelte vesentlige regnskapsestimater. Det kreves standarden implementeres. også at ledelsen utøver skjønn når de legger til grunn konsernets regnskapsprinsipper. I note 3 er det fremlagt Konsernet vil innføre IFRS 9 med tilbakevirkende kraft fra en oversikt over områdene som i høyere grad krever 1. januar 2018, med de praktiske forenklinger standarden skjønn samt områder som er mer komplekse. Oversikten tillater. Sammenligningstall for 2017 vil ikke bli inkluderer også områder der forutsetninger og estimater omarbeidet. er vesentlige for det konsoliderte regnskapet. IFRS 15 ‐ Inntekt fra kontrakter med kunder Nye standarder, tillegg og tolkninger utstedt, men ikke Standarden erstatter IAS 18 og IAS 11 og etablerer gjeldende for regnskapsåret 2017, som ikke er tatt prinsipper for rapportering av hensiktsmessig informasjon hensyn til i det konsoliderte regnskapet til brukerne av regnskapet angående karakter, beløp, Det har blitt publisert flere nye regnskapsstandarder og tidfesting og usikkerhet knyttet til inntekter og tolkninger, som ikke er obligatoriske for regnskapsåret kontantstrømmer som stammer fra selskapets kontrakter 2017, som konsernet ikke har tatt hensyn til i regnskapet. med kunder. Standarden er basert på prinsippet om at Nedenfor følger konsernet sine vurderinger av effekten inntekter skal registreres når kontroll av varen eller av de nye standardene og tolkningene. tjenesten er overført til kunden. På denne måten erstatter kontroll den nåverende praksis med overføring av risiko. IFRS 9 ‐ Finansielle instrumenter Inntekt bokføres når kunden oppnår kontroll over en vare International Accounting Standards Board offentliggjorde eller tjeneste og på denne måten har mulighet til å i juli 2014 den endelige versjonen av IFRS 9, som ble utnytte fordelene knyttet til varen eller tjenesten. godkjent av European Financial Reporting Advisory Group Standarden ble godkjent av EU i oktober 2016 og får den 28. november 2016. IFRS 9 er gjeldende for effekt fra 1. januar 2018. Ledelsen har vurdert effekten regnskapsår som starter på eller etter 1. januar 2018, denne standarden vil ha på konsernregnskapet. Konsernet men det er også tillatt å ta i bruk standarden tidligere. forventer ikke at standarden vil føre til vesentlige endringer. IFRS 16 Leieeavtaler (ii) Tilknyttede selskaper IFRS 16 ble offentliggjort i januar 2016. Effekten av den Tilknyttede selskaper er selskaper der konsernet har nye standarden er at stort sett alle leieavtaler vil bli betydelig innflytelse, men ikke kontroll. Betydelig synliggjort i balansen, da skillet mellom finansielle og innflytelse er normalt tilfelle når konsernet har mellom operasjonelle leieavtaler fjernes. Den nye standarden 20% og 50% av stemmerettighetene. Investeringer i legger opp til at en eiendel (rett til å bruke det leasede tilknyttede selskaper er bokført etter driftsmiddelet) og en finansiell forplikelse til å betale egenkapitalmetoden (se (iii) nedenfor), etter leie over tid, blir synliggjort i balansen. De eneste opprinnelig å ha blitt bokført til anskaffelseskost. unntakene er korttidsavtaler og leieavtaler med lav verdi. Regnskapsføringen for utleier vil ikke endre seg (iii) Egenkapitalmetoden vesentleg. Ved bruk av egenkapitalmetoden blir eierinteressen opprinnelig innregnet til anskaffelseskost. Deretter blir Standarden vil i hovedsak påvirke konsernet sine det balanseførte beløpet regulert for å innregne operasjonelle leieavtaler. På balansedagen har konsernets andel av resultat etter kjøpet, samt andel av konsernet uoppsigelige leieavtaleforpliktelser på NOK utvidet resultat. Utbytte mottatt fra investeringer ført 61.3 millioner, se note 15. Hvorvidt disse forpliktelsene etter egenkapitalmetoden blir ført som reduksjon i den vil resultere i balanseføring av eiendeler og bokførte verdien av investeringen. forpliktelser, og hvordan dette vil påvirke konsernet sitt resultat og kontantstrøm er det enda ikke konkludert Når konsernet sin andel av tap i en investering målt på. Noen av forpliktelsene kan muligens være dekket etter egenkapitalmetoden overstiger balanseført beløp, av unntakene knyttet til korttidsavtaler og leieavtaler inkludert andre langsiktige investeringer som i med lav verdi og noen av forpliktelsene kan være realiteten er en del av konsernet sin nettoinvestering i knyttet til leieavtaler som ikke er omfattet av IFRS 16. virksomheten, blir ikke ytterligere tap beregnet med mindre det er pådratt forpliktelser eller gjennomført Standarden trer i kraft for regnskapsperioder som utbetalinger på vegne av virksomhetene. begynner på eller etter 1. januar 2019. Konsernet har per i dag ingen planer om å ta hensyn til standarden før Urealiserte gevinst på transaksjoner mellom konsernet dette. og konsernet sine investeringer målt etter egenkapitalmetoden elimineres i samsvar med Prinsipp for konsolidering og egenkapitalmetoden eierandelen i selskapet. Urealiserte tap blir også Datterselskap eliminert med mindre transaksjonen gir bevis for et (i) Datterselskap er definert som alle enheter (inkludert verdifall på den overførte eiendelen. Rapporterte tall deltakerlignende selskap) som er kontrollert av fra virksomheter ført etter egenkapitalmetoden blir konsernet. Konsernet har kontroll over en enhet der omarbeidet om nødvendig for å sikre samsvar med det har direkte eller indirekte bestemmende innflytelse regnskapsprinsippene til konsernet. over den finansielle og operasjonelle styringen av enheten og dermed oppnår fordeler fra sin involvering i Bokført verdi av investeringer bokført etter enheten. Datterselskap blir inkludert i egenkapitalmetoden blir testet for nedskriving i tråd konsernregnskapet fra kontrolltidspunktet, og med prinsippene beskrevet i avsnittet "nedskriving av tilsvarende tatt ut av konsernet på det tidspunktet eiendeler". kontrollen opphører. Kjøp av datterselskap blir regnskapsført etter oppkjøpsmetoden. (iv) Endring i eierskap Transaksjoner med ikke‐kontrollerende eiere i Konserninterne transaksjoner, mellomværende og datterselskap som ikke medfører tap av kontroll urealisert gevinst på transaksjoner mellom behandles som egenkapitaltransaksjoner. Forskjellen konsernselskap elimineres. Urealiserte tap blir også mellom virkelig verdi av vederlaget og aksjene sin eliminert, dersom transaksjonen ikke blir sett på som forholdsmessige andel av balanseført verdi av et bevis på at eiendelen som blir solgt burde ha vært nettoeiendeler i datterselskap, føres mot konsolidert nedskrevet. Regnskapsprinsipp hos datterselskap blir oppstilling av endring i egenkapitalen. Gevinst eller tap omarbeidet i den grad dette er nødvendig for å oppnå ved salg til ikke‐kontrollerende eiere blir tilsvarende samsvar med regnskapsprinsipp i konsernregnskapet. ført mot konsolidert oppstilling av endringer i egenkapitalen. Ikke‐kontrollerende eierinteresser sin andel av resultat og egenkapital til datterselskap er skilt ut i det Når konsernet slutter å konsolidere eller å bokføre en konsoliderte resultatregnskapet, det konsoliderte eierinteresse etter egenkapitalmetoden som følge av at totalresultatet, oversikten over endringer i en ikke lenger har kontroll, delt kontroll eller vesentlig egenkapitalen og i den konsoliderte innflytelse, blir enhver resterende investering målt til balanseoppstillingen. virkelig verdi og endringen i bokført verdi resultatføres. Den virkelige verdien blir sett på som anskaffelseskost for senere regnskapsformål. Dersom det tidligere har vært bokført andre gevinster Prinsipp for inntektsføring eller tap knyttet til investeringen, blir disse behandlet Inntekt regnskapsføres til virkelig verdi av mottatt som om konsernet hadde kvittet seg med de aktuelle vederlag. Presentert inntekt er etter fratrekk for rabatter eiendelene eller forpliktelsense. Dette betyr at beløp og beløp innkrevd på vegne av tredjeparter. som tidligere har blitt ført mot utvidet resultat reklassifiseres og føres i det ordinære Konsernet innregner inntekt når inntekten kan måles resultatregnskapet. pålitelig, når det er sannsynlig at det vil tilkomme en strøm av fremtidige økonomiske fordeler til enheten og Dersom eierandeler i en felleskontrollert virksomhet spesifikke kriterier er møtt for hver av konsernet sine eller et tilknyttet selskap reduseres, men delt kontroll aktiviteter, som beskrevet nedenfor. eller vesentlig innflytelse er opprettholdt, blir bare en forholdsmessig del av beløpet tidligere ført mot utvidet Konsernet baserer sine estimater på historisk resultat, resultat reklassifisert og ført i det ordinære etter at det er tatt høyde for type kunde, type resultatregnskapet. transaksjon og de spesifikke detaljene knyttet til hver avtale. Konsernet sine spesifikke regnskapsprinsipper for Segmentrapportering hovedtypene av inntekter er som følger: Driftssegment rapporteres på samme måte som ved intern rapportering til konsernets øverste i) Varesalg: Ved salg fra cateringservice om bord i beslutningstaker. Styret i Havilafjord AS har blitt fergene innregnes inntekten når varen er solgt til definert som konsernets øverste beslutningstaker. kunden.

Omregning av utanlandsk valuta ii) Billettsalg: Billettinntekter innregnes når billetten er Funksjonell valuta og presentasjonsvaluta solgt til kunden. For forskuddsbetalte verdikort blir Elementer inkludert i regnskapene for alle enheter i innregning utsatt og innregnet når kortet blir brukt. konsernet måles basert på valutaen innenfor det primære økonomiske miljøet den aktuelle enheten Offentlige kontrakter opererer i (funksjonell valuta). Det konsoliderte Offentlige tilskudd innregnes til virkeleg verdi når det er konsernregnskapet blir utarbeidet på norsk, og norske rimeleg sikkerhet for at tilskuddet vil bli utdelt og kroner er Havilafjord AS sin funksjonelle valuta og konsernet vil overholde alle forutsetninger. Note 6 gir presentasjonsvaluta. ytterligere informasjon rundt konsernet sin behandling av offentlige tilskudd. Transaksjoner og mellomværende Transaksjoner i utenlandsk valuta regnes om til Betalbar skatt og utsatt inntektsskatt funksjonell valuta ved bruk av valutakurs på tidspunktet Skattekostnaden i perioden består av perioden sin for transaksjonen. betalbare skatt basert på aktuell skattesats, justert for endringer i utsatte skattefordeler og utsatt skatt som Gevinst og tap ved oppgjøret av slike transaksjoner og følge av midlertidige forskjeller og ubenyttet fra omregning av balanseposter i utenlandsk valuta ved skattemessige underskudd. periodeslutt, blir ført som finansposter i det ordinære resultatregnskapet. Om de knytter seg til kvalifiserte Skattekostnaden er beregnet i samsvar med de netto investeringer eller kan tilskrives en del av skattemessige lover og regler som er fastsatt, eller i nettoinvesteringen i en utenlandsk virksomhet, blir de hovedsak fastsatt, på balansedagen av utsatt som reserve over utvidet resultat. Gevinst eller skattemyndighetene i de landene hvor konsernet sine tap relatert til omregning av lån fra kredittinstitusjoner datterselskap og tilknyttede virksomheter opererer og føres som finansposter i det ordinære genererer skattemessig inntekt. Ledelsen evaluerer resultatregnskapet. Alle andre gevinster og tap som skatteposisjonene i konsernet hver periode, hensyntatt følge av omregning av utenlandsk valuta blir også ført i situasjoner der gjeldende skattelover er gjenstand for det ordinære resultatregnskapet. fortolking, og avsetter for forventede skattebetalinger.

Ikke‐monetære poster som er verdsatt til virkelig verdi i Det beregnes utsatt skatt på alle midlertidige forskjeller utenlandsk valuta regnes om ved bruk av valutakurs på mellom skattemessige og konsoliderte regnskapsmessige det tidspunktet den virkelige verdien ble fastsatt. verdier på eiendeler og gjeld, ved bruk av Omregningsdifferanser på eiendeler og gjeld verdsatt til gjeldsmetoden. Likevel blir det ikke bokført utsatt skatt virkelig verdi er presentert som del av gevinst eller tap dersom den stammer fra den opprinnelige verdsettelsen på virkelig verdi. av goodwill.

For eksempel blir omregningsdifferanser på ikke‐ Utsatt skatt føres helles ikke dersom den stammer fra monetære eiendeler og gjeld som aksjer verdsatt til opprinnelig verdsettelse av en eiendel eller en virkelig verdi over resultatet, presentert som gevinst forpliktelse i en transaksjon som ikke er en eller tap i det ordinære regnskapet, mens sammenslåelse, som på transaksjonstidspunktet verken omregningsdifferanser på ikke‐monetære eiendeler påvirker skattemessig eller regnskapsmessig resultat. som aksjer klassifisert som holdt for salg er ført mot utvidet resultat. Utsatt skatt/skattefordel versettes ved bruk av de og høylikvide investeringer med opprinnelig løpetid på tre skattesatser (og lover) som er vedtatt eller hovedsakelig måneder eller mindre som straks kan omsettes til kjente vedtatt ved utgangen av rapporteringsperioden, og som kontantbeløp og som er utsatt for uvesentlig risiko for er forventet å være gjeldende på det tidspunkt den verdiendring. utsatte skattefordelen blir realisert eller den utsatte skatten blir gjort opp. Kundefordringer Kundefordringer blir i utgangspunktet verdsatt til virkelig Utsatt skattefordel balanseføres i den grad det er verdi og senere målt til amortisert kost ved bruk av sannsynlig at det vil oppstå framtidig skattbar inntekt, og effektiv rentes metode, med fratrekk for avsetning for tap. at de midlertidige forskjellene kan trekkes fra inntekten. Se note 12 for ytterligere informasjon om konsernet sine bokførte kundefordringer og kredittrisiko. Leieavtaler Leie av driftsmidler der konsernet, som leietaker, har en Varelager vesentlig del av risiko og avkastning knyttet til eiendelen, Varelager er bokført til laveste verdi av anskaffelseskost klassifiseres som finansielle leieavtaler. Leieavtaler der og netto realisasjonsverdi. Kostnader knyttet til kjøp av en vesentlig del av risiko og avkasting knyttet til eierskap varer er fratrukket rabatter og avslag. Netto fremdeles ligger hos utleier, klassifiseres som realisasjonsverdi er estimert pris ved salg under normal operasjonelle leieavtaler. drift.

Leiekostnader ved operasjonelle leieavtaler (med fradrag Investeringer og andre finansielle eiendeler for eventuelle økonomiske insentiv fra utleier) (i) Klassifisering kostnadsføres lineært over leieperioden. Konsernet klassifiserer finansielle eiendeler i følgende kategorier: Leieinntekter fra operasjonelle leieavtaler der konsernet • Til virkelig verdi over resultatet er utleier inntektsføres lineært over lengden på • Utlån og fordringer leieavtalen. De tilhørende eiendelene balanseføres og • Finansielle eiendeler holdt for salg klassifiseres i samsvar med de iboende egenskapene til • Investeringer holdt til forfall eiendelen. Klassifiseringen er avhengig av formålet med Nedskriving av eiendeler investeringene. Ledelsen fastsetter klassifiseringen av en Goodwill og immaterielle eiendeler med uavgrenset investering på transaksjonstidspunktet, og i de tilfeller der levetid avskrives ikke og blir årlig testet for nedskriving. eiendeler er klassifisert som holdt til forfall, blir disse Testene skjer oftere dersom hendelser eller endringer i revurdert i forbindelse med årsavslutningen. Se note 12 omstendigheter indikerer at det kan være et for detaljer rundt hver type finansiell eiendel. nedskrivingsbehov. ii) Reklassifisering Andre eiendeler testes for nedskriving når Konsernet kan velge å reklassifisere finansielle eiendeler omstendighetene indikerer at bokført verdi ikke er som ikke er derivater ut av holdt for salg kategorien høyere enn gjenvinnbart beløp. Nedskrivingstapet består dersom den finansielle eiendelen ikke lenger er forventet av forskjellen mellom bokført beløp og gjenvinnbart solgt i nærmeste fremtid. Andre finansielle eiendeler enn beløp. utlån og fordringer kan kun reklassifiseres ut av holdt for salg kategorien i sjeldne omstendigheter som stammer fra Gjenvinnbart beløp er det høyeste av en eiendel sin enkeltstående hendelser som svært lite trolig vil gjenta virkelige verdi fratrukket salgskostnader og bruksverdien seg i den nærmeste framtid. av eiendelen. For vurdering av nedskrivning, grupperes eiendelene i det laveste nivået av kontantgenererende I tillegg kan konsernet velge å reklassifisere finansielle enhet med identifiserbare kontantstrømmer som er eiendeler som treffer definisjonen av utlån og fordringer uavhengig av kontantstrømmer fra andre eiendeler eller fra holdt for salg eller tilgjengelig for salg, dersom grupper av eiendeler. konsernet, på tidspunktet for reklassifiseringen, har intensjon om og mulighet til å holde disse finansielle For ikke‐finansielle eiendeler utover goodwill som eiendelene i overskuelig fremtid eller frem til forfall. tidligere har blitt nedskrevet, gjennomføres det en Reklassifisering gjøres til virkelig verdi på vurdering av om tidligere nedskrivinger burde reverseres reklassifiseringsdatoen. Virkelig verdi blir da den nye ved årsslutt hvert år. anskaffelseskostnaden eller amortisert kost, og ingen tilbakeføringer av tidligere regnskapsførte virkelig verdi Bankinnskudd, kontanter og lignende justeringer kan gjøres i ettertid. Effektiv rente for For presentasjonsformål i kontantstrømsanalysen, består finansielle eiendeler reklassifisert til utlån og fordringer og bankinnskudd og kontanter av kontanter, depositum i holdt til forfall fastsettes på reklassifiseringsdatoen. finansinstitusjoner, andre kortsiktige Ytterligere økning i estimat av kontantstrøm justerer effektiv rente i framtiden. (iii) Innregning og fraregning fra balansen (v) Nedskriving Ordinære kjøp og salg av finansielle eiendeler innregnes i Ved slutten av hver rapporteringsperiode vurderer balansen på transaksjonsdatoen, som er datoen når konsernet om det eksisterer objektive indikatorer som konsernet forplikter seg til å kjøpe eller selge eiendelen. tyder på verdifall av enkelte finansielle eiendeler eller Finansielle eiendeler blir tatt ut av balansen når retten til grupper av finansielle eiendeler. En finansiell eiendel eller å ta i mot kontantstrømmer fra den finansielle eiendelen en gruppe av finansielle eiendeler nedskrives og faller bort eller har blitt overført og konsernet har overført nedskrivingskost bokføres kun dersom; det eksisterer all risiko og gevinst knyttet til eierskapet av eiendelen. Når objektive bevis på at nedskrivingen skjer som et resultat verdipapir klassifisert som tilgjengelig for salg blir solgt, av en eller flere (taps)hendelser etter den opprinnelige blir den akkumulerte virkelige verdi‐justeringen som innregningen av eiendelen og at tapshendelsen(eller tidligere har blitt ført mot utvidet resultat, ført mot det hendelsene) har påvirkning på den estimerte fremtidige ordinære resultatregnskapet som gevinst eller tap fra kontantstrømmen til den finansielle eiendelen eller investeringer. gruppen av finansielle eiendeler, som kan estimeres pålitelig. For investeringer i aksjer klassifisert som holdt (iv) Måling for salg, vil en vesentlig eller vedvarende reduksjon i Når en finansiell eiendel opprinnelig blir tatt inn i balansen virkelig verdia av investeringene under kostpris bli sett på blir den målt til virkelig verdi pluss transaksjonskostnader som en indikator på at det har vært et verdifall på som knytter seg direkte til kjøpet av den finansielle eiendelen. eiendelen, i de tilfeller der finansielle eiendeler ikke justeres for virkelig verdi over resultatet. Eiendeler balanseført til amortisert kost Transaksjonskostnader av finansielle eiendeler verdsatt til For utlån og fordringer beregnes nedskrivingsbeløpet virkelig verdi over resultatet kostnadsføres på som differansen mellom eiendelen sin bokførte verdi og transaksjonstidspunktet. nåverdi av estimerte fremtidige kontantstrømmer (ekskludert fremtidige kredittap som ikke har inntruffet) Utlån, fordringer og investeringer holdt til forfall blir diskontert med den finansielle eiendelen sin opprinnelige senere bokført til amortisert kost ved bruk av effektiv effektive rente. rentes metode. Bokført verdi av eiendelen reduseres og tapet føres over Finansielle eiendeler tilgjengelig for salg og finansielle resultatet. Dersom et lån eller en investering holdt til eiendeler verdsatt til virkelig verdi over resultatet forfall har variabel rente, blir diskonteringsrenten for å verdijusteres fortløpende. Gevinst og tap fra endringer i vurdere nedskrivningsbehov den effektive renten fastslått virkelig verdi blir tatt inn i regnskapet på følgende måter: i kontrakten. Av praktiske hensyn, kan konsernet ta i bruk • Finansielle eiendeler verdsatt til virkelig verdi over observerbar markedspris for å fastsette virkelig verdi. resultatet resultatføres som annen inntekt eller andre kostnader Dersom nedskrivningsbehovet, i en senere periode • Finansielle eiendeler tilgjengelig for salg, som er redususeres og reduksjonen objektivt sett kan relateres til pengepapir med pålydende utenlandsk valuta ‐ en hendelse inntruffet etter den opprinnelige omregningsforskjeller knyttet til endring i amortisert kost nedskrivningen (eks. økning i debitors kredittverdighet), av verdipapiret føres over resultatet og andre endringer i vil tilbakeføringen av den tidligere bokførte nedskrivingen bokført verdi føres mot utvidet resultat. føres over resultatet. Nedskrivningstesting av • Andre monetære og ikke‐monetære verdipapirer kundefordringer er beskrevet i note 12. klassifisert som tilgjengelig for salg ‐ ført mot utvidet resultat. Eiendeler klassifisert som tilgjengelig for salg Dersom det eksisterer objektive bevis for at eiendeler Utbytte på finansielle eiendeler verdsatt til virkeleg verdi tilgjengelig for salg skal nedskrives, skal det akkumulerte over resultatet og egenkapitalinstrument klassifisert som tapet ‐ målt som differansen mellom anskaffelseskost og tilgjengelig for salg føres over resultatet som en del av virkelig verdi, fratrukket tidligere nedskrivinger over inntekten fra virksomheten, når konsernet sin rett til å ta i resultatet ‐ fjernes fra egenkapital og føres over mot utbetalinger blir etablert. resultatet. Nedskrivningskostnader på egenkapitalinstrumenter ført over resultatet blir ikke Renteinntekt fra finansielle eiendeler verdsatt til virkeleg tilbakeført over resultatet i senere perioder. Dersom verdi over resultatet er inkludert i netto gevinst/(tap). virkelig verdi av et gjeldsinstrument klassifisert som Renteinntekter på verdipapir klassifisert som tilgjengelig tilgjengelig for salg øker i senere perioder og økningen for salg, holdt til forfall og utlån og fordringer beregnet objektivt sett kan relateres til en hendelse inntruffet etter ved bruk av effektiv rentes metode føres over resultatet den opprinnelige nedskrivningen ført over resultatet, skal som en del av inntekter fra virksomheten. nedskrivningskostnaden tilbakeføres over resultatet.

Detaljer om hvordan virkelig verdi av finansielle instrumenter fastsettes beskrives nærmere i note 12. (vi) Inntektsføring Metoder for avskrivning og levetid beskrives i note 11. Renteinntekt Eiendelens gjenværende levetid vurderes og justeres om Renteinntekt innregnes ved bruk av effektiv rentes nødvendig ved slutten av hver rapporteringsperiode. metode. Når en fordring blir nedskrevet, reduserer Bokført verdi av eiendelen nedskrives til gjennvinnbart konsernet bokført verdi til forventet gjenvinnbart beløp, beløp med en gang, dersom eiendelens bokførte verdi er som er forventet fremtidig kontantstrøm diskontert med høyere enn estimert gjennvinnbart beløp (note 11). opprinnelig effektiv rente på det finansielle instrumentet, og fortsetter å oppløse diskonteringen Gevinst og tap ved avgang fastettes ved å sammenligne som renteinntekt. Renteinntekt på nedskrevet lån vederlag mot bokført beløp. Beløpet inngår i beregnes ved bruk av opprinnelig effektiv rente. resultatregnskapet. Når verdijusterte eiendeler avhendes, har konsernet som retningslinje at alle beløper tilknyttet Utbytte den aktuelle eiendelen som tidligere ble ført over utvidet Utbytte inntektsføres når retten til å ta i mot resultat, blir ført mot opptjent egenkapital. utbetalinger er etablert. Dette gjelder selv om utbetalingene gjelder overskudd opptjent før oppkjøpet. Leverandørgjeld og annen gjeld Men investeringen kan være gjenstand for Disse beløpene gjelder forpliktelser som knytter seg til nedskrivningsvurdering som følge av dette. varer og tjenester som er levert til konsernet før slutten av regnskapsåret, men som ikke er blitt betalt. Beløpene Derivater og sikringsaktiviteter er uten sikkerhet og blir normalt betalt innen 30 dager fra Derivater innregnes første gang til virkelig verdi på dato de er innregnet. Leverandørgjeld og annen gjeld for kontraktsinngåelse og måles senere til virkelig verdi presenteres som kortsiktig, med mindre de forfaller til ved hver periodeslutt. Regnskapsføring av endringer i betaling senere enn 12 måneder etter virkelig verdi i senere perioder er avhengig av om rapporteringsperioden. Forpliktelsene innregnes derivatet er designet som et sikringsinstrument, og opprinnelig til virkelig verdi og deretter måles de til dersom dette er tilfellet, det sikrede elementets iboende amortisert kost ved bruk av effektiv rentes metode. egenskaper. Konsernet har ingen øremerkede sikringer, da konsernet sine derivater ikke er kvalifisert for Lån sikringsbokføring. Lån innregnes første gang til virkelig verdi, fratrukket transaksjonskostnader knyttet til opptak av lånet. Ved Verdien av et sikringsderivat klassifiseres som et påfølgende måling måles lån til amortisert kost. anleggsmiddel eller langsiktig gjeld når resterende forfall Forskjeller mellom utbetaling (fratrukket på derivatet er mer en 12 måneder; det er klassifisert transaksjonskostnader) og innløsningsbeløpet blir som omløpsmiddel eller kortsiktig gjeld når resterende innregnet i resultatregnskapet gjennom låneperioden ved forfall på derivatet er mindre enn 12 måneder. bruk av effektiv rentes metode. Honorar betalt ved Handelsderivater er klassifisert som omløpsmiddel eller etablering av lånefasiliteter innreges som kortsiktig gjeld. transaksjonskostnader knyttet til lånet i den grad det er sannsynlig at deler av eller hele fasiliteten vil bli trukket Varige driftsmidler på. Alle varige driftsmidler bøkføres til historisk kost fratrukket nedskrivninger. Historisk kost inkluderer I slike tilfeller blir honoraret utsatt til det blir gjort trekk utgifter som direkte knytter seg til anskaffelsen av på fasiliteten. Dersom det ikke eksisterer bevis på at det driftsmiddelet. Kostnaden kan også omfatte overføring er sannsynlig at det vil bli trukket på deler av eller hele av gevist eller tap på kontantstrømssikring av utenlandsk fasiliteten, blir honoraret kapitalisert som en valuta ved kjøp av varige driftsmidler. forskuddsbetaling for likviditetstjeneester og amortisert over perioden fasiliteten er knyttet til. Ytterligere kostnader, dersom passende, aktiveres på driftsmiddelet eller innregnes som en egen eiendel En endring i eierskap i Fjord1 ASA den 14. oktober 2016 dersom det er sannsynlig at konsernet vil få en strøm av utløste en klausul om endring av kontroll i låneavtalene, fremtidige økonomiske fordeler knyttet til eiendelen og og kreditorene krevde at det ble gjennomført en kostnaden kan måles pålitelig. Den bokførte verdien av refinansiering innen juli 2017. Som følge av dette var gjeld komponenter som utgjør en selvstendig eiendel tas ut av til kredittinstitusjoner per 31. desember 2016 som ble balansen dersom den blir skiftet ut. Annet vedlikehold og omfattet av denne klausulen klassifisert som kortsiktig reperasjoner føres i resultatregnskapet i den perioden gjeld i balansen. kostnaden pådras. Lån fjernes fra balansen når forpliktelsen som er Avsetningen innregnes selv om sannsynligheten for en spesifisert i avtalen bortfaller, kanselleres eller utgår. strøm av ressurser ut av konsernet knyttet til ett av Forskjellen mellom den bokførte verdien av en kravene i den samlede vurderingen isolert sett er lav. finansiell forpliktelse som har blitt slettet eller overført til en annen part og der vederlaget er helt betalt, Avsetninger måles til nåverdien av ledelsen sitt beste inkludert en hver overført ikke‐monetær eiendel eller estimat av utgiften som må til for å gjøre opp den forventet forpliktelse, innregnes i resultatregnskapet nåværende forpliktelsen, på slutten av under andre inntekter eller finanskostnader. rapporteringsperioden. Diskonteringsrenten som brukes til å bestemme nåverdien, er en før skatt‐rente som Dersom vilkårene knyttet til en finansiell forpliktelse reflekterer tidsverdien av penger og risikoen som spesifikt blir reforhandlet og enheten utsteder et kan knyttes til kravet. En økning i avsetningen som følge egenkapitalinstrument til en kreditor for å slette alle av tid som har gått, innregnes som en rentekostnad. deler av forpliktelsen (gjeldskonvertering), blir gevinst eller tap innregnet. Dette måles som forskjellen mellom Ytelser til ansatte det bokførte beløpet av den finansielle forpliktelsen og Konsernet har ulike pensjonsordringer, både den virkelige verdien av det utstedte ytelsesbaserte og innskuddsbaserte pensjonsordninger. egenkapitalinstrumentet. Pensjonsforpliktelser Lån klassifiseres som kortsiktig med mindre konsernet Forpliktelsen eller eiendelen som er innregnet i balansen har en ubetinget rett til å utsette oppgjøret av lånet i knyttet til ytelsesbaserte pensjonsordringer er nåverdien minst 12 måneder etter rapporteringsperioden. av forpliktelsen fra den ytelsesbaserte pensjonsordningen på balansedagen, fratrukket pensjonsmidlenes virkelige Lånekostnad verdi. Forpliktelsen fra den ytelsesbaserte Generelle og spesifikke lånekostnader som er direkte pensjonsordningen beregnes årlig av uavhengige knyttet til overtagelse, bygging eller produksjon av en aktuarer. kvalifisert eiendel kapitaliseres i tiden frem til den kvalifiserte eiendelen er klar til tiltenkt bruk eller salg. Nåverdien av de definerte ytelsesbaserte forpliktelsene Kvalifiserte eiendeler er eiendeler som tar vesentlig tid blir bestemt ved å diskontere fremtidige utbetalinger å klargjøre for planlagt bruk eller salg. med renten på statsobligasjoner i samme valuta som utbetalingene og med en løpetid som er tilnærmet den Inntekter knyttet til kortgvarige investeringer av lån samme som løpetiden for den relaterte tiltenkt en kvalifisert eiendel, opptjent i perioden frem pensjonsforpliktelsen. Netto rentekostnad kalkuleres ved til det brukes på den kvalifiserte eiendelen, blir å diskontere nettobalansen knyttet til den ytelsesbaserte fratrukket de kapitaliserte lånekostnadene. Andre pensjonsforpliktelsen og den virkelige verdien av lånekostnader kostnadsføres i den perioden de oppstår. pensjonsmidlene. Denne kostnaden er inkludert i lønnskostnaden i resultatregnskapet. Avsetninger Avsetninger for juridiske krav, servicegarantier og Estimatavvik som skyldes ny informasjon eller endringer i opprydningskrav innregnes når konsernet har et de aktuarmessige forutsetningene føres mot nåværende eller forventet juridisk krav som et resultat egenkapitalen i utvidet resulat i den perioden de oppstår. av tidligere hendelser, der det er sannsynlig at en De inkluderes i opptjent egenkapital i balansen og i avgjørelse vil føre til en strøm av ressurser ut av oppstillingen over endringer i egenkapitalen. konsernet og at dette kan måles på en pålitelig måte. Avsetningen innregnes ikke for fremtidige driftstap. Endringer i nåverdi av den ytelsesbaserte Dersom det er flere krav av tilsvarende karakter blir pensjonsforpliktelsen som følge av planendringer eller sannsynligheten for en fremtidig strøm av ressurser ut avkortninger, blir innregnet i resultatregnskapet med en av konsernet fastsatt som en samlet vurdering av gang, som tidligere pensjonskostnader. kravene. 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. Utbytte Immaterielle eiendeler Det avsettes for alle varslede utbytteutdelinger, som er a) Goodwill er forskjellen mellom anskaffelseskost ved vedtatt og som enheten ikke lenger har råderett over, i kjøp av virksomhet og virkelig verdi av konsernets andel eller etter rapporteringsperioden, men som ikke er delt av netto identifiserbare eiendeler i virksomheten på ut på slutten av rapporteringsperioden. oppkjøpstidspunktet. Goodwill ved oppkjøp av datterselskap er klassifisert som immateriell eiendel. Oppkjøpsmetoden b) Kontraktsfestede kundeforhold Oppkjøpsmetoden benyttes ved Kontraktsfestede kundeforhold anskaffet i virksomhetssammenslutninger. Vederlaget som virksomhetssammenslutninger balanseføres til virkelig overføres ved oppkjøp av et datterselskap måles til verdi på oppkjøpstidspunktet. De kontraktsfestede virkelig verdi, det være seg i form av avgitte eiendeler, kundeforholdene har begrenset utnyttbar levetid og føres pådratte forpliktelser, eller egenkapitalinstrumenter til anskaffelseskost med fradrag for akkumulerte som avgis eller utstedes av konsernet. Vederlaget avskrivninger. Avskrivning foretas lineært over inkluderer virkelig verdi av alle eiendeler eller kundeforholdens forventede levetid. 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.

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. Note 2 Virksomhetssammenslutning

Virksomhetssammenslutninger 2016

Havilafjord AS eide 41% av aksjene i Fjord1 ASA per 01.01.2016. 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 311 440 Forpliktelse til å erverve resterende 33% av aksjene 686 711 Samlet vederlag for 59% av aksjene 998 151 Verdi av konsernets egenkapitalinteresse i Fjord1 ASA eid før virksomhetsssamenslutning 899 987 Samlet verdi for 100% av aksjene i Fjord1 ASA 1 898 138

Eiendeler og gjeld som er innregnet som følge av oppkjøpet er som følger:

Balanseført verdi Virkelig verdi Utsatt skattefordel 26 524 26 524 Kontrakter ‐ 569 607 Fartøy, eiendom o.l. 3 619 167 3 864 140 Investeringer i tilknyttet virksomhet 356 295 356 295 Andre langsiktige eiendeler 4 252 4 252 Varelager 12 653 12 653 Kundefordringer 75 121 75 121 Andre kortsiktige fordringer 9 767 9 767 Bankinnskudd 534 502 534 502 Gjeld til kredittinstitusjoner ‐ langsiktig (1 731 322) (1 731 322) Finansielle derivater ‐ langsiktig (53 447) (53 447) Pensjonsforpliktelser (13 919) (13 919) Utsatt skatt (266 175) (469 820) Gjeld til kredittinstitusjoner ‐ kortsiktig (210 668) (210 668) 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 (536 888) (536 888) Ikke‐kontrollerende interesser (3 862) (3 862) Netto identifiserbare eiendeler ervervet 1 584 155 2 195 090 Verdien av vederlaget for 100% av aksjene 1 898 138 Gevinst ved kjøp på gunstige vilkår 296 953 Konsernet innregner ikke‐kontrollerende interesser i en overdraRegnskapsprinsipp for ikke‐kontrollerende interesser (minoritetgende enhet enten til virkelig verdi eller til de ikke‐sinteresser) kontrollerende 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 2016.

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 2 386 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 2017. Forpliktelsen var bokført til NOK 532,3 millioner pr 31.12.2016, som Annen langsiktig gjeld. En del av oppgjøret bestod i en selgerkreditt som per 31.12.2017 utgjør NOK 367,5 millioner med tillegg av renter, med forfall 30. juni 2020. Note 3 Sentrale regnskapsvurderinger og viktige kilder til estimatusikkerhet

Utarbeidelsen av konsernet sitt konsoliderte regnskap krever at ledelsen gjør skjønnsmessige vurderinger og 3) Operasjonelle leieavtaler ‐ konsernet som leietaker benytter seg av estimater og forutsetninger som påvirker Konsernet leier enkelte ekspressbåter for bruk i de rapporterte beløpene av inntekter, kostnader, eiendeler passasjerbåtsegmentet. Basert på en evalurering av og forpliktelser, og den tilhørende presentasjonen av disse, vilkårene i avtalene, som at leieperioden ikke utgjør en i tillegg til presentasjonen av betingede forpliktelser. betydelig del av fartøyets økonomiske levetid og at Usikkerhet rundt forutsetningene og estimatene kan nåverdien av minimum leiebeløp ikke utgjør en vesentlig resultere i utfall som krever vesentlige korrigeringer av del av virkelig verdi av førtøyene, har konsernet vurdert bokførte beløp av eiendeler eller forpliktelser påvirket i disse avtalene som operasjonelle avtaler. fremtidige perioder. Usikkerhet i estimatene ‐ sentrale regnskapsestimater Sentrale vurderinger i anvendelsen av konsernets Nedenfor følger en oversikt over viktige forutsetninger regnskapsprinsipper angående fremtiden og andre kilder til estimatusikkerhet I utarbeidelsen av konsernregnskapet har ledelsen gjort på balansedagen, som medfører betydelig risiko for følgende vurderinger som har vesentlig effekt på bokførte vesentlige endringer i balanseførte verdier av eiendeler og beløp i regnskapet: forpliktelser i løpet av det neste regnskapsåret. Konsernet baserer sine forutsetninger og estimater på tilgjengelige 1) Inntektsføring parametere på tidspunktet for konsolideringen. Gjeldende Som beskrevet i note 15, har konsernet bokført inntekter omstendigheter og forutsetninger angående fremtidig på tilsammen NOK 31 millioner i 2017 (2016: NOK 87 utvikling kan likevel endre seg som følge av endringer i millioner) relatert til kompensasjon mottatt for å dekke markedet eller omstendigheter utenfor konsernet sin inntektstap som følge av endringer i opprinnelige kontroll. Slike endringer blir reflektert i forutsetningene kontraktsantagelsene som rabatter og prisstrukturer. når de inntreffer. Størrelsen på kompensasjonen er ikke endelig fastsatt, noe som kan resultere i at konsernet senere vil få 1) Estimert bruksverdi av ikke‐finansielle eiendeler tilleggskompensasjon eller krav om tilbakebetaling av For vurdering av verdifall blir hver enkelt offentlige allerede mottatt kompensasjon. Mottatt kompensasjon er kontrakt, inkludert fartøy utpekt for ulike fergekontrakter, bokført som inntekt i den perioden som kompensasjonen definert som kontantstrømgenererende enheter (KGE). For er utbetalt, da dette vil representere konsernet sitt beste å fastsette bruksverdien av fartøyene benytter konsernet estimat på forventede kompensasjonsinntekter. estimerte kontantstrømmer for resterende kontraktsperiode og estimert residualverdi av fartøyene 2) Nedskriving av ikke‐finansielle eiendeler ved utløp av kontraktsperiodene. Se note 11 for ytterligere Ved periodeslutt vurderer konsernet om det eksisterer detaljer. nedskrivningsindikatorer. Dersom slike indikatorer er identifisert, eller når det for konkrete eiendeler er krav om 2) Ytelsesbaserte pensjonsordninger årlig nedskrivningstest, estimerer konsernet gjennvinnbart Kostnader knyttet til ytelsesbaserte pensjonsordninger og beløp på eiendelen. nåverdien av pensjonsforpliktelsen fastsettes ved bruk av aktuarmessige beregninger. Den aktuarmessige Konsernet har fastsatt at det eksisterte vurderingen involverer ulike forutsetninger som kan avvike nedskrivningsindikatorer som for eksempel fra faktisk fremtidig utvikling. Disse inkluderer blant annet driftsunderskudd for eiendeler, når årets regnskapstall diskonteringsrente, fremtidig lønnsvekst, dødelighetsrate legges sammen med budsjetterte tall for de neste og fremtidig vekst i pensjon. Som følge av kompleksiteten i periodene. Basert på dette har konsernet utført en beregningene og de iboende langsiktige egenskapene til nedskrivningsvurdering på hver rapporteringsdato. (31. forpliktelsene, er ytelsesbaserte pensjonsordninger svært desember 2016 og 31 desember 2017). sensitive for endringer i forutsetninger. Alle benyttede forutsetninger blir evalurert på balansedagen. Nedskrivning av andre eiendeler enn goodwill bokført i tidligere perioder, skal kun reverseres dersom det har 3) Virkelig verdi ved bruk av oppkjøpsmetoden skjedd en endring i de estimatene benyttet for å fastslå Overtatte eiendeler og forpliktelser ved oppkjøpet av bruksverdi av eiendelen. Om dette er tilfelle, skal bokført Fjord1 ASA er vurdert til virkelig verdi. Viser til beskrivelse i verdi økes til gjennvinnbart beløp av den aktualle note 2. eiendelen. 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 Passasjer‐ Annet og Beløp i NOK 1 000 Ferge båter Catering Turisme Sum segment elimineringer Konsolidert

Salgsinntekt Inntekter 2 474 827 95 356 188 536 20 062 2 778 781 15 356 2 794 137 Sum inntekter 2 474 827 95 356 188 536 20 062 2 778 781 15 356 2 794 137

Andel av gevinst fra tilknyttet virksomhet 2 359 17 569 19 928 713 20 641 Andre driftskostnader ekskl. avskrivning og nedskrivning (1 551 564) (95 506) (152 326) (19 226) (1 818 622) (10 900) (1 829 523) EBITDA 923 263 2 209 36 210 18 405 980 087 5 169 985 256

Avskrivning (241 965) (5 214) (3 444) (299) (250 922) (1 730) (252 652) Segmentoverskudd 681 298 (3 006) 32 766 18 106 729 165 3 439 732 603

Regnskapsåret avsluttet 31. desember 2016 Passasjer‐ Annet og Beløp i NOK 1 000 Ferge båter Catering Turisme Sum segment elimineringer Konsolidert

Salgsinntekt Eksterne kunder 502 333 24 940 43 625 4 164 575 062 (22 609) 552 453 Sum inntekter 502 333 24 940 43 625 4 164 575 062 (22 609) 552 453

Andel av gevinst fra tilknyttet virksomhet ‐ 1 077 ‐ (3 771) (2 694) (2 694) Andre driftskostnader ekskl. avskrivning og nedskrivning. (402 187) (24 819) (33 751) (3 691) (464 448) 68 969 (395 479) EBITDA 100 146 1 198 9 874 (3 298) 107 920 46 360 154 280

Avskrivning (52 472) (1 499) (857) (3) (54 831) (447) (61 634) Segmentoverskudd 47 673 (301) 9 017 (3 301) 53 089 45 913 92 647 Oppstilling av konsernresultatet 2017 2016 Segmentoverskudd 732 603 92 647 Driftsresultat Havilafjord (5 427) (4 522) Oppkjøpskostnader ‐ (13 289) Avskrivning merverdier (315 735) (78 934) Gevinst ved oppkjøp til gunstige vilkår ‐ 296 953 Andel av resultat fra tilknyttet virksomhet 42 963 414 081 GAAP‐forskjeller ‐ ‐ Renteinntekt 6 601 663 Rentekostnad (149 774) (44 854) Andre finansposter, netto 18 135 30 250 Skattekostnad (33 705) (3 724) Konsernresultat 295 660 689 270

Spesifisering av inntekter 2017 2016 Frakt av biler og passasjerer 627 239 216 107 Catering 188 536 43 625 Turisme 20 062 4 164 Annet 15 356 (22 609) Sum 851 192 241 287 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

Forretnings‐ Eierandel holdt Selskap sted Eierandel 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 31.12.2017 31.12.2016 The Fjords Fartøy I DA 50 % Tilknyttet virksomhetenkapitalmetoden 13 371 15 465 The Fjords Fartøy II DA 50 % Tilknyttet virksomhetenkapitalmetoden (27) ‐ Sognefjorden Fartøy I AS 50 % Tilknyttet virksomhetenkapitalmetoden 579 623 The Fjords DA 50 % Tilknyttet virksomhetenkapitalmetoden 20 429 8 426 Fjord Tours AS 31 % Tilknyttet virksomhetenkapitalmetoden 7 391 ‐ Geiranger Fjordservice AS 30 % Tilknyttet virksomhetenkapitalmetoden 338 ‐

Partsrederiet Kystekspressen ANS 49 % Tilknyttet virksomhetenkapitalmetoden 24 630 22 271 WF Holding AS* 34 % Tilknyttet virksomhetenkapitalmetoden 341 871 314 927 Investeringer i tilknyttet og felleskontrollert virksomhet 408 581 361 709

*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 01.10.2016, mens finansiell informasjon under viser tall for 01.01.2016‐31.12.2016. 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. 5.2 Investeringer i tilknyttet og felleskontrollert virksomhet (fortsettelse)

Balanse WF Holding Group The Fjords DA Beløp i NOK 1 000 31.12.2017 31.12.2016 31.12.2017 31.12.2016 Bankinnskudd, kontanter og lignende 1 362 124 391 15 314 16 788 Andre omløpsmidler 583 786 509 040 11 319 13 634 Sum omløpsmidler 585 148 633 431 26 633 30 422

Anleggsmidler 2 089 459 2 137 963 11 957 3 786

Leverandørgjeld 205 857 185 351 2 909 5 626 Annen kortsiktig gjeld 739 039 826 762 1 675 5 569 Sum kortsiktig gjeld 944 896 1 012 113 4 584 11 195

Gjeld til kredittinstitusjoner 593 990 728 422 ‐ ‐ Annen langsiktig gjeld 172 216 146 599 ‐ ‐ Sum langsiktig gjeld 766 206 875 021 ‐ ‐

Netto eiendeler 963 506 884 260 34 007 23 013

Avstemming mot bokført verdi

Netto eiendeler 1. januar 884 260 650 057 23 013 25 866 Årsresultat 138 241 269 191 24 007 13 013 Andre inntekter (8 996) 5 011 ‐ ‐ Utbetalt utbytte (50 000) (40 000) (13 013) (15 866) Netto eiendeler 31. desember 963 506 884 260 34 007 23 013

Konsernet sin del i % 34,0 % 34,0 % 50 % 50 % Konsernet sin del i NOK 1 000 327 592 300 648 17 004 11 507 Goodwill 14 279 14 279 ‐ ‐ Andre justeringer ‐ ‐ (8 578) (3 081) Utbytte ‐ ‐ ‐ ‐ Bokført verdi 341 871 314 927 20 429 8 426

Avstemming av totalresultatet Beløp i NOK 1 000

Salgsinntekt 4 448 559 4 559 819 150 223 125 821 Driftskostnader (3 900 472) (3 913 672) (124 751) (111 882) Avskrivning og nedskrivning (300 807) (269 046) (1 468) (905) Netto finansposter (77 430) (25 301) 3 (21) Skattekostnad (31 609) (82 609) ‐ Årsresultat 138 241 269 191 24 007 13 013 Andre inntekter (8 996) 5 011 ‐ ‐ Totalresultat for året 129 245 274 202 24 006 13 013 5.2 Investeringer i tilknyttet og felleskontrollert virksomhet (fortsettelse)

Balanse The Fjords Fartøy I DA Partsrederiet Kystekspressen ANS Beløp i NOK 1 000 31.12.2017 31.12.2016 31.12.2017 31.12.2016 Bankinnskudd, kontanter og lignende 1 596 2 656 12 133 16 710 Andre omløpsmidler 794 1 983 12 738 9 322 Sum omløpsmidler 2 390 4 639 24 872 26 032

Omløpsmidler 93 998 97 955 136 368 141 800

Leverandørgjeld 3 060 3 046 13 278 7 538 Annen kortsiktig gjeld 4 016 6 648 11 008 21 527 Sum kortsiktig gjeld 7 076 9 694 24 286 29 065

Gjeld til kredittinstitusjoner 57 750 61 950 ‐ ‐ Annen langsiktig gjeld ‐ ‐ 88 690 95 316 Sum langsiktig gjeld 57 750 61 950 88 690 95 316

Netto eiendeler 31 562 30 950 48 262 43 450

Avstemming mot bokført verdi

Netto eiendeler 1. januar 30 951 25 973 43 449 40 098 Årsresultat 613 177 4 813 5 351 Andre inntekter ‐ ‐ ‐ ‐ Utbetalt utbytte ‐ 4 800 ‐ (2 000) Netto eiendeler 31. desember 31 564 30 951 48 262 43 449

Konsernet sin del i % 50,0 % 50,0 % 49 % 49 % Konsernet sin del i NOK 1 000 15 782 17 965 23 649 21 290 Goodwill ‐ (11) ‐ 981 Andre justeringer ‐ ‐ ‐ ‐ Utbytte ‐ ‐ ‐ ‐ Bokført verdi 13 371 13 371 24 630 22 271

Avstemming av totalresultatet Beløp i Nok 1 000 Salgsinntekt 8 495 3 894 137 592 131 892 Driftskostnader (817) (482) (115 813) (111 263) Avskrivning og nedskrivnining (5 030) (2 233) (14 591) (12 591) Netto finansposter (2 035) (1 002) (2 375) (2 687) Skattekostnad - - - - Årsresultat 613 177 4 813 5 351 Andre inntekter ‐ ‐ ‐ ‐ Totalresultat for året 613 177 4 813 5 351 5.2 Investeringer i tilknyttet og felleskontrollert virksomhet (fortsettelse)

Balanse Geiranger Fjordservice AS Fjord Tours AS Beløp i NOK 1 000 31.12.2017 31.12.2017 Bankinnskudd, kontanter og lignende 12 680 44 016 Andre omløpsmidler 4 134 1 817 Sum omløpsmidler 16 815 45 834

Omløpsmidler 2 913 10 684

Leverandørgjeld 994 8 108 Annen kortsiktig gjeld 2 039 12 626 Sum kortsiktig gjeld 3 034 20 734

Gjeld til kredittinstitusjoner ‐ ‐ Annen langsiktig gjeld 200 ‐ Sum langsiktig gjeld 200 ‐

Netto eiendeler 16 494 35 783

Avstemming mot bokført verdi

Netto eiendeler 1. januar 7 046 11 630 Årsresultat 1 447 24 153 Andre inntekter 8 001 ‐ Utbetalt utbytte ‐ ‐ Netto eiendeler 31. desember 16 494 35 783

Konsernet sin del i % 30 % 31 % Konsernet sin del i NOK 1 000 4 981 10 950 Goodwill ‐ ‐ Andre justeringer ‐ ‐ Utbytte ‐ ‐ Bokført verdi 338 7 391

Avstemming av totalresultatet Beløp i Nok 1 000 Salgsinntekt 24 216 72 428 Driftskostnader (22 031) (38 894) Avskrivning og nedskrivning (833) (2 213) Netto finansposter 95 622 Skattekostnad ‐ (7 790) Årsresultat 1 447 24 153 Andre inntekter ‐ ‐ Totalresultat for året 1 447 24 153 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. 2017 2016 Bokført verdi av uvesentlig tilknyttet virksomhet 553 623 Årsresultat (169) (17) Note 6 Oversikt over annen inntekt og offentlige tilskudd

Konsernet har innregnet følgende inntektsrelaterte beløp i resultatregnskapet:

2017 2016 Offentlige tilskudd knyttet til fergerelaterte tjenester 1 896 958 298 286 Leieinntekt 35 068 6 356 Gevinst/tap ved avhending av varige driftsmidler 4 403 1 573 NOX ‐ refusjon 2 163 935 Annen driftsinntekt 4 352 2 358 Sum annen driftsinntekt og offentlige tilskudd 1 942 943 309 508

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. Note 7 Lønn og sosiale kostnader

Beløp i NOK 1 000 Note 2017 2016 Lønn 758 349 168 067 Arbeidsgiveravgift 112 700 28 303 Pensjonskostnader 14 53 745 20 087 Andre ytelser 21 559 3 855 Sum lønnskostnader 946 354 220 312

Antall sysselsatte årsverk (2016 tall gjelder hele året selv om Fjord1 bare har vært en del av konsernet i perioden 01.10.2016‐31.12.2016) 1 204 1 191

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 4 262 934 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 2017 2016 Havneavgifter, sanitærkostnader og andre ruterelaterte kostnader 29 029 7 198 Reparasjon og vedlikehold 186 999 39 408 Driftskostnader fartøy 153 025 38 271 Andre driftskostnader 85 996 29 856 Sum andre driftskostnader 455 048 114 733

Andre finansposter, netto Note 2017 2016 Endring i virkelig verdi på derivater 12 17 592 24 291 Valutagevinst 1 022 1 957 Valutatap (1 506) (940) Utbytte 5 819 4 175 Annen finansinntekt 250 (4 131) Andre finanskostnader (5 043) 4 898 Sum andre finansposter, netto 18 135 30 250 Note 9 Skatt

Spesifikasjon av skattekostnad på ordinært resultat 2017 2016 Betalbar skatt 41 473 1 276 Justering av tidligere års betalbar skatt ‐ ‐ Endring i utsatt skatt/skattefordel (7 768) 2 448 Årets totale skattekostnad 33 705 3 724

Avstemming av nominell og effektiv skattesats 2017 2016 Resultat før skatt 329 366 692 995 Skattesats til skattesats i Norge (24%/25 %) 79 048 173 249 Resultatført skattekostnad 33 705 3 724 Avvik mellom forventet og resultatført skattekostnad 45 342 169 524 Endring i skattesats 22 212 21 610 Permanente forskjeller 23 130 147 914 Avvik mellom forventet og resultatført skattekostnad 45 342 169 524

Spesifikasjon av grunnlag for utsatt skatt 2017 2016 Tomter, bygninger og annen fast eiendom 2 196 311 2 738 673 Fordringer (984) (96 311) Gevinst‐ og tapskonto 104 566 71 548 Andeler i deltakerlignende virksomheter (16 272) (5 610) Pensjonsforpliktelser (23 671) (14 605) Derivater (38 754) (65 704) Midlertidige forskjeller 2 221 196 2 627 991

Underskudd til fremføring ‐ (466 978) Grunnlag for utsatt skatt/skattefordel i balansen 2 221 196 2 161 013

Utsatt skatt/skattefordel 510 875 518 643 Utsatt skattefordel i regnskapet 18 327 21 328 Utsatt skatt i regnskapet 529 202 539 971 Nettoposisjon 510 875 518 643

Avstemming av endring i utsatt skatt 2017 2016 Netto utsatt skatt 01.01. 518 643 ‐ Endringer i ordinært resultat (6 351) (1 541) Endringer i utvidet resultat (1 417) 3 989 Andre endringer ‐ 516 195 Netto utsatt skatt 31.12. 510 875 518 643 Note 10 Varige driftsmidler

Fartøy Bygninger, Driftsløsøre, Periodisk under eiendom redskap, Sum varige 2017 Fartøy vedlikehold oppføring og tomt inventar m.m. driftsmiddel Anskaffelsekost 01.01.2017 3 662 846 113 823 117 700 106 671 21 853 4 022 893 Tilganger 41 405 53 564 625 450 7 278 12 575 740 272 Overført fra fartøy under oppføring 63 511 ‐63 511 ‐ Avganger ‐141 439 ‐47 457 ‐817 ‐189 713 Anskaffelseskost 31.12.2017 3 626 323 119 930 679 639 113 949 33 611 4 573 452

Akkumulerte ordinære avskrivninger 01.01.2017 65 151 10 004 ‐ 1 604 1 795 78 553 Årets avskrivninger 268 664 39 406 4 599 7 661 320 329 Avganger ‐40 825 ‐46 992 ‐796 ‐88 613 Akkumulert avskrivning 31.12.2017 292 990 2 417 ‐ 6 202 8 660 310 270

Akkumulerte nedskrivninger 01.01.2017 ‐ ‐ ‐ ‐ ‐ ‐ Årets nedskrivninger ‐ ‐ ‐ ‐ ‐ ‐ Reversering av tidligere års nedskrivninger ‐ ‐ ‐ ‐ ‐ ‐ Akkumulerte nedskrivinger 31.12.2017 ‐ ‐ ‐ ‐ ‐ ‐

Bokført verdi 31.12.2017 3 333 333 117 513 679 639 107 747 24 950 4 263 181

Fartøy Bygningr, Driftsløsøre, Periodisk under eiendom redskap, Sum varige 2016 Fartøy vedlikehold oppføring og tomt inventar m.m. driftsmiddel Anskaffelsekost 01.01.2016 ‐ ‐ ‐ ‐ ‐ ‐ Tilgang ved erverv av datterselskap 3 469 038 81 251 185 847 106 159 21 845 3 864 140 Tilgang 125 661 32 572 ‐ 512 8 158 753 Overført fra fartøy under oppføring 68 147 ‐68 147 ‐ ‐ ‐ Avganger ‐ ‐ ‐ ‐ ‐ ‐ Anskaffelseskost 31.12.2016 3 662 846 113 823 117 700 106 671 21 853 4 022 893

Akkumulerte ordinære avskrivninger 01.01.2016 ‐ ‐ ‐ ‐ ‐ ‐ Årets avskrivninger 65 151 10 004 ‐ 1 604 1 795 78 553 Avganger ‐ Akkumulert avskrivning 31.12.2016 65 151 10 004 ‐ 1 604 1 795 78 553

Akkumulerte nedskrivninger 01.01.2016 ‐ ‐ ‐ ‐ ‐ ‐ Årets nedskrivninger ‐ ‐ ‐ ‐ ‐ ‐ Reversering av tidligere års nedskrivninger ‐ ‐ ‐ ‐ ‐ ‐ Akkumulerte nedskrivinger 31.12.2016 ‐ ‐ ‐ ‐ ‐ ‐

Bokført verdi 31.12.2016 3 597 695 103 819 117 700 105 067 20 057 3 944 339

Levetid 10‐30 år 5 år 0‐33 år 3‐10 år Avskringvningsmetode Lineær Lineær Lineær Lineær

Tilganger Fartøyet Sulafjord ble kjøpt i januar 2017. Nybygde Gloppenfjord og Eidsfjord var under transport fra Tyrkia til Norge i desember 2017. I tillegg har konsernet 15 andre fartøy under oppføring pr. 31.12.2017.

Avganger Konsernet solgte to fartøy i 2017; Hålagoland og Åtfjord. Gevinst på salg av fartøy er inkludert i annen driftsinntekt i det konsoliderte resultatregnskapet. 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 2017 2017 2016 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) Note 11 Immaterielle kontraktseiendeler

Sum immaterielle 2017 Kontrakter eiendeler Anskaffelsekost 01.01.2017 569 607 569 607 Tilganger ‐ ‐ Avganger ‐ ‐ Anskaffelseskost 31.12.2017 569 607 569 607

Akkumulerte ordinære avskrivninger 01.01.2017 62 014 62 014 Årets avskrivninger 248 057 248 057 Avganger ‐ ‐ Akkumulerte avskrivninger 31.12.2017 310 071 310 071

Akkumulerte nedskrivninger 01.01.2017 ‐ ‐ Årets nedskrivninger ‐ ‐ Reversering av tidligere års nedskrivninger ‐ ‐ Akkumulerte nedskrivninger 31.12.2017 ‐ ‐

Bokført verdi 31.12.2017 259 536 259 536

Sum immaterielle 2016 Kontrakter eiendeler Anskaffelsekost 01.01.2016 ‐ ‐ Tilganger ‐ ‐ Tilgang ved erverv av datterselskap 569 607 569 607 Avganger ‐ ‐ Anskaffelseskost 31.12.2016 569 607 569 607

Akkumulerte ordinære avskrivninger 01.01.2016 ‐ ‐ Årets avskrivninger 62 014 62 014 Avganger ‐ ‐ Akkumulerte avskrivninger 31.12.2016 62 014 62 014 ‐ Akkumulerte nedskrivninger 01.01.2016 ‐ ‐ Årets nedskrivninger ‐ ‐ Reversering av tidligere års nedskrivninger ‐ ‐ Akkumulerte nedskrivinger 31.12.2016 ‐ ‐ ‐ Bokført verdi 31.12.2016 507 593 507 593

Levetid 2 ‐ 9 år Avskringvningsmetode Lineær

Bokført verdi av kontrakter er allokert til kontantstrømsgenererende enhet som testes for nedskrivning, se note 10 for detaljer. 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 ført til virkelig verdi virkelig Eiendeler til over utvidet verdi over amortisert 31.12.2017 resultat resultatet kost Sum Kundefordringer og andre fordringer 149 111 149 111 Finansielle eiendeler tilgjengelig for salg 5 694 5 694 Lån til ansatte 192 192 Andre kortsiktige fordringer 319 319 Kontanter og kontantlignende eiendeler 521 658 521 658 Sum 5 694 ‐ 671 280 676 974

Eiendeler Eiendeler ført til ført til virkelig verdi virkelig Eiendeler til over utvidet verdi over amortisert 31.12.2016 resultat resultatet kost Sum Kundefordringer og andre fordringer 114 548 114 548 Finansielle eiendeler tilgjengelig for salg 7 653 7 653 Lån til ansatte 467 467 Andre kortsiktige fordringer 164 164 Kontanter og kontantlignende eiendeler 586 422 586 422 Sum 7 653 ‐ 701 601 709 254

Eiendeler Eiendeler ført til ført til virkelig verdi virkelig Eiendeler til over utvidet verdi over amortisert 01.01.2016 resultat resultatet kost Sum Kundefordringer og andre fordringer ‐ ‐ ‐ ‐ Finansielle eiendeler tilgjengelig for salg ‐ ‐ ‐ ‐ Lån til ansatte ‐ ‐ ‐ ‐ Andre kortsiktige fordringer ‐ ‐ ‐ ‐ Kontanter og kontantlignende eiendeler ‐ ‐ 19 686 19 686 Total ‐ ‐ 19 686 19 686 Finansiell gjeld Derivater ført til virkelig Gjeld til verdi over amortisert 31.12.2017 resultatet kost Sum Derivater 38 754 ‐ 38 754 Rentebærende gjeld ‐ 2 165 942 2 165 942 Leverandørgjeld og annen kortsiktig gjeld ‐ 726 211 726 211 Total 38 754 2 892 153 2 930 907

Derivater ført til virkelig Gjeld til verdi over amortisert 31.12.2016 resultatet kost Sum Derivater 65 178 65 178 Rentebærende gjeld 3 199 720 3 199 720 Leverandørgjeld og annen kortsiktig gjeld 653 598 653 598 Total 65 178 3 853 318 3 918 496

Derivater ført til virkelig Gjeld til verdi over amortisert 01.01.2016 resultatet kost Sum Derivater ‐ ‐ ‐ Rentebærende gjeld ‐ ‐ ‐ Leverandørgjeld og annen kortsiktig gjeld ‐ 3 078 3 078 Total ‐ 3 078 3 078

Kundefordringer og andre fordringer 31.12.2017 31.12.2016 Beløp i NOK 1 000 Kortsiktig Langsiktig Sum Kortsiktig Langsiktig Sum Kundefordringer 87 035 ‐ 87 035 80 165 ‐ 80 165 Avsetning for verditap (936) ‐ (936) (1 505) ‐ (1 505) 86 099 ‐ 86 099 78 660 ‐ 78 660

Lån til ansatte 192 192 467 467 Forskuddsbetalinger 3 090 3 090 3 021 3 021 Forsikringskrav 18 906 18 906 10 935 10 935 Andre fordringer 40 505 319 40 824 21 300 164 21 464 62 502 511 63 012 35 256 631 35 888

Kundefordringer og andre fordringer 01.01.2016 Beløp i NOK 1 000 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. Fianansielle eiendeler tilgjengelig for salg Følgende finansielle eiendeler er klassifisert som tilgjengelig for salg:

31.12.2017 31.12.2016 01.01.2016 Unoterte aksjer 1 191 3 322 ‐ Kapitalinnskudd i KLP 4 503 4 131 ‐ Sum 5 694 7 453 ‐

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 31.12.2016. Nordea har utstedt en garanti som dekker skattetrekk inntil NOK 50 millioner. Garantien har økt ytterligere NOK 3 millioner den 12.03.2018

Leverandørgjeld og annen kortsiktig gjeld

2017 2016

Leverandørgjeld 169 477 120 711 Forskuddsbetalinger fra kunder, verdikort 363 042 340 188 Opptjent lønn og feriepenger 133 130 120 577 Andre kortsiktige forpliktelser 60 562 58 644 Uopptjent inntekt ‐ 13 479 Sum 726 211 653 598

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

2017 2016 Beløp i NOK 1 000 Kortsiktig Langsiktig Sum Kortsiktig Langsiktig Sum

Sikret Gjeld til kredittinstitusjoner 130 285 687 692 817 977 1 910 511 595 000 2 505 511 Selgerkreditt 347 965 347 965 694 209 694 209 Obligasjonslån 1 000 000 1 000 000 Sum 130 285 2 035 657 2 165 942 1 910 511 1 289 209 3 199 720

01.01.2016 Beløp i NOK 1 000 Kortsiktig Langsiktig Sum

Sikret Gjeld til kredittinstitusjoner ‐ ‐ ‐

Gjeld til kredittinstitusjoner er sikret med førsteprioritet på pant i konsernet sine eiendommer og fartøy 31.12.2017 31.12.2016 01.01.16 Bokført verdi av pantsatte eiendeler 4 263 181 3 944 339 ‐

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 2017. 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 2018. Som følge av dette krevde kreditorene at det ble gjennomført en refinansiering innen utgangen av juli 2017. 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 2017. Obligasjonslånet vil betale en flytende rente‐kupong bestående av NIBOR 3 måneder pluss 3,5% og har forfall i november 2022.

Konsernet har i februar 2018 inngått avtale med DNB og Nordea om opptrekk av lånefasilitet på NOK 4 458 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. Periodisk vurdering av virkelig verdi Nivå 1 Nivå 2 Nivå 3 Sum 31 Desember 2017 Finansielle eiendeler Finansielle eiendeler tilgjengelig for salg ‐ ‐ 5 694 5 694 Finansiell gjeld Handelsderivater ‐ 38 754 ‐ 38 754

Periodisk vurdering av virkelig verdi Nivå 1 Nivå 2 Nivå 3 Sum 31. desember 2016 Finansielle eiendeler Finansielle eiendeler tilgjengelig for salg ‐ ‐ 7 653 7 653 Finansiell gjeld Handelsderivater ‐ 65 178 ‐ 65 178

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 31.12.2017. 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 finansielle aksjer eiendeler Per 1. januar 2016 ‐ ‐ Gevinst/(tap) ført over utvidet resultat ‐ ‐ Tilganger ved virksomhetssammenslutning 3 422 4 131 Avganger ‐ ‐ 31. desember 2016 3 422 4 131 Gevinst/(tap) ført over utvidet resultat ‐ ‐ Tilganger ‐ 372 Avganger (2 331) ‐ 31. desember 2017 1 091 4 503 Finansiell risikostyring Konsernet er utsatt for en rekke finansielle risikoer, som de som er listet nedenfor:

Risiko Eksponering fra Måling Styring

Nybyggkontrakter inngått i utanlandsk Markedsrisiko - valutakurs valuta Sensitivitetsanalyse Valutaterminkontrakter

Langsiktige kredittlån Markedsrisiko - rentesats med flytende rente Sensitivitetsanalyse Rentebytteavtaler

Markedsrisiko - råvarekost Bruk av brennstoff Sensitivitetsanalyse Bruk av brennstoffrelaterte derivater

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 Markedsrisiko - verdipapirpriser Investering i verdipapirer Ikke aktuelt forsikringsselskap. Kontantar og kontantlignende eiendeler, kundefordringer og Diversifisering av derivative finansielle bankforbindindelser og Kredittrisiko instrumenter Analyse av aldersfordeling kredittgrenser

Rullerende kontantstrøms- Tilgjengelighet av lånetilsagn og Likviditetsrisiko prognoser 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:

31.12.2017 31.12.2016 01.01.2016 Rentebytteavtaler (26 621) (40 889) ‐ Valutaterminkontrakter ‐ (3 326) ‐ Brennstoffrelaterte derivater (12 133) (20 963) ‐ Sum (38 754) (65 178) ‐ 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 1000 2017 2016 Verdiendringer på derivater innregnet i resultatregnskapet 17 592 24 291

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. Note 13 Aksjekapital

Selskapets aksjekapital er på 200 000 fordelt på 2 000 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. 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 1 018 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 OMF‐ obligasjoner. 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 31. desember 2017 2016 1. januar 2016 Nåverdi av sikrede forpliktelser 246 823 234 466 ‐ Virklelig verdi på pensjonsmidlene 239 048 227 220 ‐ Underdekning på sikrede ordningar 7 775 7 246 ‐ Nåverdi av usikrede forpliktelser 15 896 7 359 ‐ Sum underdekning på ytelsesbaserte pensjonsordninger 23 671 14 605 ‐ Note 14 Pensjonsforpliktelser (fortsetter) Noteinformasjon for 2016 under dekker hele perioden 01.01.2016 ‐ 31.12.2016 for Fjord1 ASA sine pensjonsordninger. Havilafjord AS sitt konsoliderte resultat og utvidede resultat inkluderer bare endring i pensjonsforpliktelse fra oppkjøpstidspunktet 01.10.2016 til 31.12.2016. Pensjonsforpliktelsen på oppkjøpstidspunktet utgjorde NOK 13,9 millioner.

2017 Sikrede Usikrede forpliktelser forpliktelser Sum Nåverdi av pensjonsopptjening i året 5 697 2 197 7 894 Tidligere års pensjonsopptjening ‐ 7 000 7 000 Pensjonsopptjening 5 697 9 197 14 894 Netto rentekostnader/ (‐inntekter) 268 155 424 Administrasjonskostnader 193 ‐ 193 Arbeidsgiveravgift(AGA) 192 332 524 Sum pensjonskostnad 6 350 9 684 16 035

2016 Sikrede Usikrede forpliktelser forpliktelser Sum Nåverdi av pensjonsopptjening i året 6 737 666 7 403 Tidligere års pensjonsopptjening (14) 4 149 4 136 Pensjonsopptjening 6 723 4 815 11 539 Netto rentekostnader/ (‐inntekter) 459 174 633 Administrasjonskostnader 322 ‐ 322 Arbeidsgiveravgift(AGA) 250 704 954 Sum pensjonskostnad 7 754 5 693 13 448

Endring i ytelsesbaserte forpliktelser

Nåverdi av Nåverdi av forpliktelse pensjonsmidlene Sum 1. januar 2017 241 825 (227 220) 14 605 Årets pensjonsopptjening 7 894 ‐ 7 894 Rentekostnad (‐inntekt) 6 072 (5 875) 197 Tidlegere års pensjonsopptjening 7 000 ‐ 7 000 Estimatendringer 8 246 (2 178) 6 067 Utbetalte ytelser fra ordningene (9 020) 7 202 (1 818) Innbetalt ‐ (12 591) (12 591) Administrasjonskostnader ‐ 1 614 1 614 Arbeidsgiveravgift(AGA) 702 ‐ 702 31. desember 2017 262 719 (239 048) 23 671

Present value of Fair value of plan obligation assets Total 1. januar 2016 251 806 (218 695) 33 111 Årets pensjonsopptjening 7 320 ‐ 7 320 Rentekostnad (‐inntekt) 6 396 (5 762) 634 Tidlegere års pensjonsopptjening 3 785 350 4 136 Estimatendringer (17 785) 913 (16 872) Utbetalte ytelser fra ordningene (9 256) 8 345 (911) Innbetalt ‐ (13 487) (13 487) Administrasjonskostnader ‐ 1 117 1 117 Arbeidsgiveravgift(AGA) (442) ‐ (442) 31. desember 2016 241 825 (227 220) 14 605

Vesentlige forutsetninger 2017 2016 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 % 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. Note 16 Forpliktelser

16.1 Kapitalforpliktelser Vesentlige kontraktfestede kapitalforpliktelser som ikke er innregnet som forpliktelser i balansen har følgende avtalte betalingsstruktur:

2018 2019 Etter 2019 Sum Nybygg 1 588 428 1 369 560 2 957 988 Kaistruktur og landbaserte investeringer 360 642 261 443 ‐ 622 085 Sum 1 949 070 1 631 003 ‐ 3 580 073

16.2 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 65 488 2020 Annet utstyr 585 2020 Sum 66 073

16.3 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. Note 17 Transaksjoner med nærstående parter

Nedenfor følger en oversikt over transaksjoner med nærstående parter:

Inntekt fra nærstående parter

Nærstående part Relasjon 2017 2016 The Fjords DA Tilknyttet virksomhet 28 938 29 442 The Fjords Fartøy I DA Tilknyttet virksomhet ‐ 1 249 The Fjords Fartøy II DA Tilknyttet virksomhet 345 ‐

Kostnader til nærstående parter

Nærstående part Relasjon 2017 2016 Havila Holding AS Morselskap 2 300 ‐ The Fjords DA Tilknyttet virksomhet (1 063) (1 104) Havyard Ship Technology Konsernselskap (155 651) (3 705)

Fordringer/(forpliktelser) til nærstående parter

Nærståande part Relasjon 2017 2016 The Fjords DA Tilknyttet virksomhet 154 3 973 Havyard Ship Technology Konsernselskap (608) ‐ Havila Holding AS Morselskap (1 025) 260 366 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 148.7 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 2017.

Havila Holding AS yter ulike administrative tjenester for Havilafjord AS. Det ble belastet NOK 2,3 millioner for disse tjenestene i 2016. 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: Antall aksjer pr Natural‐ Annen 31.12.17 NOK i 1000 Lønn Bonus ytelser godtgjørelse Pensjon Sum i Fjord1

Dagfinn Neteland (CEO fra 22.03.2017) 2 273 1 000 10 152 82 3 517 5 290 Anne‐Mari Sundal Bøe (CFO) 1 081 600 10 9 65 1 765 290 Andrè Høyset (fungerende CEO til 22.03.2017, deretter COO) 1 904 450 10 6 70 2 440 2 690 Deon Mortensen (CTO) 1 203 450 10 6 70 1 739 290 Tor Vidar Kittang (fungerende prosjektdirektør til 31.12.2017) 1 008 275 10 6 51 1 350 290 Sum lønn og ytelser til lededende personer i 2017 7 469 2 775 50 179 338 10 811 8 850

Pensjonsforpliktelse CEO per 31.12.2017 2 233

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 31.12.17 godtgjørelse i Fjord1 Vegard Sævik (Styreleder fra 25.07.2017, tidligere styremedlem) 154 * Pål W. Lorentzen (Styreleder til 25.07.2017) 939 ‐ Per Sævik (Styremedlem) 52 * Janicke Westlie Driveklepp (Styremedlem) 69 ‐ Siri Beate Hatlen (Styremedlem fra 25.07.2017) 35 ‐ Frederik W. Mohn (Styremedlem fra 25.07.2017) 26 * Atle Olav Trollebø (Ansatterepresentant) 84 290 Geir Offerdal (Ansatterepresentant fra 25.07.2017) 38 290 Reidar Tangen (Varamedlem/Ansatterepresentant fra 25.07.2017) ‐ 290 Ole Kjell Eidem (Varamedlem/Ansatterepresentant fra 25.07.2017) ‐ 290 Thomas Rakstang (Observatør/Ansatterepresentant fra 25.07.2017) 28 290 Egil Kirkebø (Observatør/Ansatterepresentant fra 19.01.2018) ‐ 290 Daniel Nedrelid (Observatør/Ansatterepresentant fra 25.07.2017 til 19.01.2018) 69 ‐ Vidar Grønnevik (Styremedlem til 25.07.2017) 54 ‐ Bente Iren Næsse (Styremedlem til 25.07.2017) 40 ‐ Øyvind Oksnes(Observatør/Ansatterepresentant til 25.07.2017) 30 ‐ Arnstein Amås (Ansatterepresentant til 25.07.2017) 40 ‐ Sum 1 658 1 740

* 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:

Natural‐ Annen NOK i 1000 Lønn Bonus ytelser godtgjørelse Pensjon Sum

Dagfinn Neteland (CEO frem til 22.01.2016) 137 ‐ ‐ 1 503 6 1 646 Anne‐Mari Sundal Bøe (CFO) 1 047 95 ‐ ‐ 45 1 187 Andrè Høyset (CEO fra 22.01.2016) 1 908 237 ‐ ‐ 47 2 192 Deon Mortensen (CTO) 1 179 107 ‐ ‐ 47 1 333 Tor Vidar Kittang (Prosjektdirektør) 763 ‐ ‐ ‐ 37 800 Sum lønn og ytelser til lededende personer i 2016 5 034 439 ‐ 1 503 182 7 158 Styremedlemmer 2016: NOK i 1000 Sum Pål W. Lorentzen (Styreleder fra 22.01.2016) 300 Reidar Jørgen Sandal (Styreleder frem til 22.01.2016) ‐ Vidar Grønnevik (Styremedlem fra 22.01.2016) 54 Nils R Sandal 6 Vegard Sævik (Styremedlem) 104 Bente Iren Næsse (Styremedlem fra 22.01.2016) 77 Janicke Westlie Driveklepp (Styremedlem fra 07.11.2016) 10 Daniel Nedrelid 42 Lars Birkeland 8 Per Sævik (Styremedlem fra 22.01.2016) 50 Øyvind Oksnes 50 Heidi Kathrin Osland (Styremedlem frem til 22.01.2016) ‐ Arvid Andenæs (Styremedlem frem til 07.11.2016) 53 Arnstein Amås (Ansatterepresentant) 84 Atle Olav Trollebø (Ansatterepresentant) 78 Sum ytelser til styret i 2016 916

Revisjonshonorar

Revisor i Havilafjord AS I NOK 1000 2017 2016 Lovpålagt revisjon (inkludert teknisk bistand med årsregnskap) 25 21 Skatterådgivning (inkludert teknisk bistand med ligningspapirer)7 ‐ Andre tjenester 35 ‐ Sum 67 21

Revisor i Fjord1 ASA konsernet I NOK 1000 2017 2016 Lovpålagt revisjon (inkludert teknisk bistand med årsregnskap) 1 501 1 016 Skatterådgivning (inkludert teknisk bistand med ligningspapirer)79 22 Andre tjenester 1 180 83 Sum 2 760 1 121 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 2020.

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 01.01.2020 til 31.12.2033. 10 fartøy skal driftes under denne kontrakten.

Nye trekkfasiliteter Konsernet har i mars 2018 inngått nye låneavtaler med DNB og Nordea for trekkfasiliteter på NOK 4 458 millioner.

Fjord1 har tatt opp et obligasjonslån på NOK 1 milliard som ble notert på Oslo Børs den 14. mai 2018.

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 1 283 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 2018.

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 2019.

Fjord1 har bestilt en ny ferje for bygging hos det tyrkiske verftet Tersan.

Appendix 3

Revenue statement Havilafjord AS Morselskap tall i 1000 Konsern

30.9.2018 30.9.2017 Operating income and operating expNistes 30.9.2018 30.9.2017

0 0 Revenue 640 067 692 651 0 Other operating income 1 694 751 1 445 611 0 _0_ Operating Income 2 334 818 2 138 262

0 0 Raw materials and consumables used 56 795 88 780 0 0 Payroll expenses 748 784 690 571 0 0 Depreciation and amortisation expense 211 848 173 059 143 1 416 Other operating expenses 728 002 638 669 143 1 416 Operating expenses 1 745 428 1 591 079

-143 -1 416 Operating profit 589 390 547 183

Financial income and expenses 139 050 167 500 Income from subsidiaries and other group entities 0 0 0 0 Income from associated companies 28 858 35 382 0 0 Other interest income 240 3 382 0 709 350 Other financial income 566 715 602 20 113 21 438 Other Interest expenses 81 913 68 371 13 494 1 300 Other financial expenses 38 500 14 892 105 444 854 111 Net financial income and expenses -90 748 671 102

105 301 852 695 Operating result before tax 498 642 1 218 285

0 0 Tax on ordinary result -2 482 127 745

105 301 852 695 Annual net profit 501 123 1 090 540

0 0 Minority share -262 870 98 296

Brought forward 379 000 0 Dividend 379 000 0 -273 699 852 695 To other equity 384 993 992 244 105 301 852 695 Total allocated 763 993 992 244

Qavilafjord AS Side 1 Balance sheet Havilafjord AS Morselskap AHe tall i 1000 Konsern

30.9.2018 30.9.2017 Assets Note 30.9.2018 30.9.2017

Fixed assets Intangible fixed assets 24 333 19 592 Deferred tax asset 0 0 24 333 19 592 Total intangible assets 0 0

Tangible fixed assets 0 0 Buildings and land 194 131 84 142 0 0 Ships 4 885 086 3 708 594 0 0_ Equipment and other movables 32 190 23 678 0 0. Total tangible fixed assets S 111 407 3 816 414

Financial fixed assets 681 980 681 980 Investments in subsidiaries 0 0 135 696 386 092 Loans to group companies 135 696 386 092 0 0 Investments in associated companies 415 789 362 618 0 0 Investments in shares 1 181 7 863 0 0_ Andre fordringer 65 709 5 763 817 676 1 068 072 Total financial fixed assets 618 375 762 336

842 009 1 087 664 Total fixed assets 5 729 782 4 578 750

Current assets

0 0 Inventories 22 484 14 716

Debtors 0 0 Accounts receivables 132 876 107 736 0 0_ Other receivables 86 755 60 132 0 0 Total debtors 219 631 167 868

Investments 0 0_ Quoted investment shares 10 0 0 0 Total investments 10 0

385 756 165 510 Cash and bank deposits 775 697 751 690

385 756 165 510 Total current assets 1 017 822 934 274

1 227 764 1 253 174 Total assets 6 747 604 5 513 024

Havilafjord AS Page 1 Balance sheet Havilafjord AS Morselskap Alle tall i 1000 Konsern

30.9.2018 30.9.2017 Equity and liabilities Note 30.9.2018 30.9.2017

Restricted equity 200 200 Share capital 200 200 410 410 Share premium reserve 410 410 610 610 Total restricted equity 610 610

Retained earnings 105 092 879 658 Other equity 778 530 1 100 693 0 0 Minority 1 108 180 975 285 105 092 879 658 Total retained earnings 1 886 710 2 075 978

105 702 880 268 Total equity 1 887 319 2 076 587

Liabilities Provisions 0 0 Deffered tax 454 458 307 076 0 0 Total provisions 454 458 307 076

Other long-term liabilities 750 000 0 Bonds 1 750 000 0 0 0 Liabilities to financial institutions 1 285 429 1 542 675 370 340 369 730 Other long term liabilities 383 470 387 866 1 120 340 369 730 Total of other long term liabilities 3 418 899 1 930 541

Current liabilities 1 720 3 176 Trade creditors 263 487 142 690 0 0 Tax payable 37 489 130 315 2 0 Public duties payable 56 151 47 896 0 0 Other short term liabilities 629 800 877 919 1 722 3 176 Total short term liabilities 986 927 1 198 820

1 122 062 372 906 Total liabilities 4 860 284 3 436 437

1 227 764 1 253 174 Total equity and liabilities 6 747 604 5 513 024

Fosnavag The board of Havilafjord AS

Njal Saevik Per Sasvik chairman of the board

Vegard Saevik Hege Saevik Rabben member of the board member of the board

Havilafjord AS Page 2