MARKET REPORT jUly 2013 CONTENTS PROLOGUE

Prologue ...... 1 MS Nordstjernen DIS ...... 37 Dear Investors and Business Associates, Project fi nance is still at Northern Supply DIS ...... 38 If somebody had told us that the negative eff ect of the fi nancial crises challenge in all shipping markets ...... 5 Norwegian Offshore II DIS ...... 39 starting in 2008 would last for more than fi ve years, we would argue The shipping environment ...... 8 Norwegian Product DIS ...... 40 that shipping has a history with much shorter cycles. The offshore support vessel market ...... 13 Oceanlink Offshore III DIS ...... 41 Projects per year ...... 16 Octavian Bulker DIS ...... 42 Almost fi ve years have passed and tankers, bulkers and container ves- Existing projects per segment ...... 18 Orchard Offshore DIS ...... 43 sels are still sold at prices far below historical average. Projects sold ...... 19 Panda Chemical Oil DIS...... 44 axel M aas christian W. Svensson Projects estimated returns ...... 20 Raffl es Offshore DIS ...... 45 Th e question is therefore, has the time come to consider new invest- Senior Partner Senior Partner Agder Ocean Reefer KS ...... 21 RTS Panamax DIS ...... 46 ments in shipping assets? Asian Bulkers DIS ...... 22 Saragol Tankers 1 DIS ...... 47 Atlantic Guardian DIS ...... 23 Saragol Tankers 2 DIS ...... 48 Th e Oslo stock exchange main index will possibly pass the historical Compared to buying stock listed shipping shares, direct investment Blue Mountain Tankers DIS ...... 24 SBS Torrent KS ...... 49 top level registered in 2007 within this year. Although the Norwegian in a vessel has some advantages: Bovey Offshore Ltd...... 25 SBS Typhoon KS ...... 50 economy has been outperforming the rest of Europe, the general – You know exactly what you invest in trend among most stock exchanges has been positive for some time – Th e owning company has a simple structure with small overheads Bukit Timah Offshore DIS ...... 26 Seminyak DIS ...... 51 already. and no employees Dongguan Chemical Tankers DIS ...... 27 Sentosa Offshore DIS ...... 52 – A change in the vessel’s value will have an immediate eff ect on the European Venture DIS ...... 28 Singapore Offshore DIS ...... 53 At the same, shipping shares like Frontline, Golden Ocean and Odfj ell value of the owning company European Venture III DIS ...... 29 Singapore Supply DIS ...... 54 are still trading at 10-20% of the level the shares traded in 2007-2008. – A quick sale is possible with a quick decision process Feeder Container Vessel DIS ...... 30 Southern Chemical DIS ...... 55 Global Cable II DIS ...... 31 Ullswater Subsea DIS ...... 56 Many shipping companies are struggling with a high debt level and We hope to present more “asset play” deals in the months to come. Golden Kamsar DIS ...... 32 Vestland Marine PSV DIS ...... 57 high book values. Th e banks are putt ing more pressure on owners Th e RS Platou Group has direct access to owners worldwide and Industrial Shipping DIS ...... 33 Platou Shipinvest I DIS ...... 58 who need to refi nance and quality vessels are sold at a small premium a great variety of deals are continuously passing through our desk. Marineline Chemical DIS ...... 34 to scrap prices. Med Ethylene DIS ...... 35 Head offi ce ...... 60 In addition to “asset play” projects, we also hope to continue the Mount Faber KS ...... 36 Contacts ...... 61 As an alternative to buying low priced shipping shares, the Norwe- focus on sale/leaseback projects with steady cashfl ow and dividend gian KS/DIS model is ideal for “asset play” investments. payments.

RS Platou Finans Shipping AS has just fi nanced the fi rst pure ship- We are presently corporate manager for close to 100 vessels in the ping “asset play” investment in more than fi ve years. Th e company shipping and off shore sectors. Th e portfolio has been through a peri- called, Feeder Container Vessel DIS, has bought a 16 years old feeder od with restructuring within the diff erent shipping segments, but the container vessel at a price just 10% above the vessels scrap value. Tak- off shore projects have in general been performing well throughout ing into the consideration that the historical average scrap age for the fi nancial crises. similar vessels has been around 27 years, we expect the vessel to trade for another 5-10 years. With the knowledge that we, compared to our previous annual re- port, are one year closer to a recovery in the shipping sector, we wish Th e investment was fi nanced with 100% equity, meaning that the our investors a sunny summer vacation. owning company, in addition to a small commercial and corporate fee, has no other expenses on top of the operating costs. Kind regards, Th e team at RS Platou Finans

PROLOGUE 1 RS Platou Finans AS / RS Platou Finans Shipping AS RS Platou Real Estate AS RS Platou Investor Services AS ARS RS Platou Finans has since it was established in 2004 become one We believe that being present in Asia and having the ability to meet RS Platou Real Estate AS has since its establishment in 2009 become RS Platou Investor Services AS ARS is a wholly owned subsidiary of of the major finance companies in the world that specialize on ship- clients within short notice gives us a great advantage in concluding one of the leading players within real estate project finance, and is now RS Platou Finans, a leading finance company specialising in ping and offshore related financial schemes in the interest of both ship more transactions in structured finance. With the booming Asian a fully integrated real estate corporate finance house. The company Shipping and Offshore projects focusing to private investors. Platou owners and financial investors. markets and clients demand for expansion, the limited partnerships is specialized in sourcing, structuring and facilitating of commercial Investor Services’ objective is to assist private investors in establishing has created an additional source for Asian based shipping and off- property, focusing on the Norwegian and Swedish real estate market. new companies. The main objective is to identify attractive investment opportunities shore clients to use both the regional and global equity markets to involving the purchase of vessels or offshore equipment attached with expand their operations. RS Platou Real Estate is an independent company within the RS We can offer our customers a wide scope of services, including: secure employment, alternatively present asset play cases where the ­Platou group, and its entrepreneurs have a long track record, each – Establishment and incorporation of LTD, NUF, limited, timing is proven to be optimal. Being a hub for shipping, offshore and maritime activities, the impor- with 15-20 years of experience respectively. general and internal partnership tance of an Asian presence for us has become apparent over the last – Accounting and budgeting The strength of RS Platou Finans lies not only with the highlyqualified ­ few years. More European banks are also increasing their activities Primo 2012, RS Platou Real Estate acquired the real estate fund man- – Remittance staff, but also with the vast shipping related resources available within through having fully licensed offices in Singapore. agement company Realkapital Partners comprising eight profession- – Wage payment the RS Platou Group. als, now branded RS Platou Fund Management. Since inception in – Annual accounts with tax documentation We are pleased to be part of the RS Platou Group. The unparalleled 2006 the company has launched four real estate funds totaling NOK – Tax advice RS Platou Finans is an independent company within the Platou strength of the RS Platou Group in Singapore provides great syner- 1,5 billion in gross asset value, and NOK 1 billion in paid-in equity. – Secretarial assistance Group utilising the full potential of having close contact with ship- gies in both sourcing and servicing clients in Asia. brokers, ship-utilizing, ship managers, bankers, lawyers and consul- The RS Platou Real Estate Group now comprise of fourteen profes- Why choose Platou Investor Services? tants worldwide. R.S. Platou Asset Management AS sionals. An extensive network in the Nordic real estate market and a We have close connections with numerous well-known and respected R.S. Platou Asset Management AS was established in 2007 and by the team providing highly specialized real estate knowledge, should pave companies and establishments, such as lawyers, banks and chartered Core Activities: end of 2008 its first shipping fund had invested about $50 million in the way for many interesting opportunities in the coming year. accountants, whose services can be utilised by our investors if so • Identify interesting financial shipping opportunities. 35 different “KS” projects, including 76 vessels. The fund is diversi- wished. • Execute and syndicate shipping projects. fied into both the offshore and the traditional shipping markets, with The company’s core activities are: • Placement of debt. main emphasis on long term bareboat contracts. • origination of interesting financial real estate opportunities Customers of RS Platou Investor Services will, just like customers of • Corporate Management. • structuring and re-structuring of real estate projects RS Platou Finans, be advised of and have access to interesting invest- • Establish an active second hand market on limited shares. R.S. Platou Asset Management AS is focused on establishing in- • project financing of real estate projects ment projects proposed by RS Platou Finans. Our employees­ have vestment vehicles for investors that are looking for exposure in the • corporate finance advising within the commercial real estate sector substantial qualifications regarding­establishing and book keeping of RS Platou Finans also has a strong focus on Corporate Management. shipping and/or offshore market through investing in diversified • real estate fund management companies under the new ­Norwegian tonnage tax system. In addition to managing projects developed by RS Platou Finans, we portfolios of different projects. Based on investor appetite and mar- • real estate asset management have also been elected corporate manager for ­projects established by ket opportunities R.S. Platou Asset Management AS will tailor make The cost of the Investor Services is very competitive compared to the others. With specialized shipping know­ledge we handle all kind of investment mandates to meet investor needs. market rates in general. project types from asset play, time charter to bareboat deals. We pro- vide services for the entire life cycle of a project from establishment To ensure first-class service the investor establishes a personal busi- to liquidation. This includes, among others, to follow up the day to ness relation with the assigned accountant for easy and timely assis- day running of the company, to produce all financial statements and tance. tax statements and secretary services for the board of directors. Our highly qualified team seek to provide the best service possible, opti- mizing information and cash flow to the investors.

RS Platou Finans Singapore Pte Ltd RS Platou Finans Singapore was established in early 2007 to capture the growing demand for new financial instruments in the Asian ship- ping and offshore markets. The limited partnerships structures has in- creased in popularity all over the world and in order to be closer to the customers, the RS Platou Finans Singapore office was opened with a view for further expansion.

2 RS PLATOU FINANS RS PLATOU FINANS 3 RS Platou Finans AS rs platou finans

RS Platou Finans RS Platou Finans RS Platou Investor RS Platou Finans RS Platou Asset Singapore Pte Ltd Shipping Services Management Ship Finance Ship Finance Investor Services Corporate Management Fund Structure PROJECT FINANCE IS STILL AT CHALLENGE IN ALL

David P. Österström Axel M. Aas Asbjørn Wulfsberg Benjamin Ryeng-Hansen Trond Hamre Managing Partner Managing Director & Senior Partner Managing Director Managing Director Managing Director SHIPPING MARKETS

How do we structure project finance when the time charter levels in most shipping markets barely cover operating costs? When ‘KS’ financing re-emerged in the early 2000s, the typical deal was based on sale/leaseback structures, whereby the shipowner

Natalie Teh Christian W. Svensson Thomas Ødegård sold a second hand vessel to swap book equity with cash and reinvesting in new tonnage. The deal would also generate a positive Accountant Senior Partner Corporate Manager cashflow to the shipowner, based on operating income, less operating costs, on top of the agreed bareboat rate.

This is not the case today. The average annual time charter earn- charter earnings are covering the operating costs, the equity in- ings for tankers, bulkers and container vessels are entering a vestors are willing to wait for improved market conditions and fifth consecutive year where the rates do not cover the financial make a profit on the basis of an ‘asset play’ scenario. and operating costs for modern tonnage. Morten Astrup Eva Lise Bjerke In addition, the equity is less exposed when there is no mort- Project Broker Corporate Manager At the same time, most shipping banks are taking a hit on existing gage on the vessel. shipping loans and have limited capacity to consider new busi- ness. The big drop in the US interest rate level does not compen- Both newbuilding and second hand prices have dropped to a sate for the increased margins now being offered by the banks. historical low level. The potential upside is exciting and it is all a question about buying the right vessel at the right time. On top of this, the tightening of conditions required in order to get bank financing is limiting the number of possible sale/ RS Platou Finans believes the KS market will enter a period Heidi Meyer Westby Erik Kristian Andresen leaseback deals. The conditions/criteria for financing include, with various asset play projects being offered to shipping inves- Office Manager Corporate Manager among others; only modern vessels, only assets that are easy to tors. Both the dry bulk and container markets are showing signs sell, only charterers with a strong balance sheet, short loan pro- of improvement. More buyers are inspecting vessels and the file, low gearing level and higher arrangement fees. volume of transactions is picking up.

The likely alternative is therefore to find other sources of fund- A growing share of Norwegian KS projects have been invest- ing. ments in the offshore sector. A stable oil price, financially strong end users, and long-term time charter and bareboat contracts Kathrine Andersen Tåsåsen Corporate Manager Many shipowners have decided to test the bond market. This (with a profit margin for both the investors and the operators) has become a competitive alternative, with flexible terms and have continued throughout the financial crisis. better cashflow. However, bond financing is more difficult -to ar range for project finance, as most bond investors will require All the KS houses have experienced projects with financial dif- backing from a strong balance sheet. ficulties within the majority of shipping markets during the last four years. However, offshore projects with long-term charter The likely alternative in the present financial climate is to- fi contracts have been performing well, and have been able to pay ➤ Elisabeth Relbo nance new projects with 100 percent equity. As long as the time the investors a steady dividend throughout the same period. Secretary

4 RS PLATOU FINANS RS platou finans 5 the noRWegian KS MaRKet in 2012 ing scrapped and few newbuildings being delivered, the market Th e reported project volume among the top four KS houses in conditions have remained weak. 2012 was in excess of 600 mill USD. Th e level of activity is still limited compared to the top year of 2007, when the total in- Two bulk projects were merged into a new company and the vestments reached 5 bill USD. However, the trend is positive, investors injected fresh equity. At the same time, a new charter despite the lack of bank funding, and 2012 was the year with the agreement was made and the bank restructured the debt. Th e highest activity since the start of the fi nancial crisis. new company is now performing well.

About 75 percent of the projects were related to off shore invest- On the positive side, we sold some PSVs and a cement ship with ments, with a mix of newbuilding asset play deals and long-term good returns to the investors. Th e second shipping fund that was bareboat contracts involving modern OSVs. Th e banks still established prior to the fi nancial crisis also ended with a positive have some funding available for these projects, as long as the return, despite investment in some loss making projects. end user is a fi nancially strong company. Th e majority of existing projects are now performing well aft er Th e expected interest in asset play deals in the traditional some years with restructuring and sales. Dividends are paid out shipping segments did not materialize last year. Th e recover- on a regular basis and the charterers are paying on time. ies in container, dry bulk and markets were postponed for another year, with analysts now expecting the fi rst half of A total of four new projects were completed in 2012, includ- 2014 to be the period with improving utilization rates and ing two off shore projects, one bulker and one small passenger bett er earnings. vessel.

Apart from the off shore projects and a couple of container asset In total, RS Platou Finans is now the corporate manager of 45 play deals, the project houses concluded some long-term char- projects, consisting of more than 90 vessels with a value close to ter projects in other industrial shipping markets. 2 bill USD. Th e portfolio is dominated by off shore projects, but we expect the activity level in the traditional shipping markets RS Platou FinanS’ PoRtFolio oF PRoJectS to pick up in the near future. Ten projects in RS Platou Finans’ exsiting portfolio were sold last year. Some projects made a good return, but there were Th e corporate management also includes some projects limited also some losses. Aft er several years with very bad market con- to pure accounting services. Th ere is a market for professional ditions, all the reefer projects ended with the majority of eq- independent corporate management services and RS Platou uity lost. Th e specialized reefer vessels have been replaced by Finans has been appointed by several domestic and foreign container vessels and, even with a large number of vessels be- shipowners to perform this job. MS Nordstjernen has sailed with the Coastal Express for 56 years and was preserved by the Directorate for Cultural Heritage in 2012. She is now owned by a company under RS Platou Finans management. Copyright notice: Hurtigruten ASA/Bri a Ludwig.

sUmmary Ks-hoUses 2005 - 2012 total Projects by emPloyment total Projects by segments (fearnleys, nrP, Pareto, PlatoU)

Mill $ 4000 Funds 4% Other 5% Total Project Price Asset play 4% Product tankers 7% 3500 Paid in Equity

Shipping funds 4% Uncalled capital Timecharter 16% Offshore/ 3000 Cable layers 4% Supply 39% 2500 Bareboat 76%

Reefer vessels 9% 2000

1500

1000

Bulk carrier 16% 500

0 LPG/Chemical tankers 16% 2005 2006 2007 2008 2009 2010 2011 2012

6 RS PLATOU FINANS RS PLATOU FINANS 7 the shipping environment lization is nonetheless weak. According to our records it is the erage earnings rose from $14,800 per day in 2011, to $17,100 second lowest level seen in the past decade, although it is still per day in 2012. well above the bottom level of 82 percent, seen in 2009. Dry bulk in 2012: Substantial drop in freight Asset values continued falling but rate of rates World shipping 2012; decline eased Market fundamentals deteriorated further during 2012 caused It was yet another year of falling asset values, but the pace of by another year with record high deliveries. Even though scrap- decline slowed and the performance across sectors was more ping also rose to the highest level registered, the net fleet ex- varied than in 2011. The least variation was seen in newbuilding pansion was above 12 percent from the year before. Despite Down, but not out prices, which fell across the board by 5 - 10 percent for most size weaker global economic growth, tonnage demand increased classes. Secondhand values declined as well, due not only to the by a healthy 7 percent thanks to China, which utilized huge ar- weaker freight market but also because of the emergence of fuel bitrage in iron ore and coal prices, importing much more dry efficient newbuildings, a possibly important shift in shipping bulk commodities than the underlying demand for steel, energy technology and design. Values declined, with dry bulk vessels and so forth would suggest. However, the fleet utilization rate 2012 turned out to be just as difficult for the shipping markets as we feared it would be. The performance of the world economy was even recording significant declines of 20-30 percent, tankers fell by dropped from 87 percent in 2011 to 83 percent in 2012, and this 5-10 percent. It was the fourth straight year of declining asset caused a drop in freight rates of between 40 and 50 percent and weaker than reflected in downbeat expectations at the start of the year, while fleet expansion remained above any reasonably sustainable values, and accompanied by poor cash flows it put the indus- in ship values by 20- 30 percent. long-term growth trend for the fourth consecutive year. Despite another stellar performance from the LNG market and a modest tightening try’s balance sheets under further, severe pressure. of the tanker market, capacity utilization for the world’s merchant fleet fell by an estimated 1 percentage point to 84 percent, the lowest The container market in 2012: Box rates and Tankers in 2012: Little relief, despite demand timecharter rates part company level since the full force Financial Crisis hit in 2009. boom The market in 2012 was characterized by higher The tanker market experienced some improvement, although average box rates than in 2011, but substantially lower char- this was unevenly spread between segments and seasons, dem- ter rates. Operators managed to raise the utilization rate, and Nevertheless, the past year was not without bright spots, despite the fascinating complexities of tonnage demand. Most notably, onstrating the fragile nature of this market. The good news was thereby freight rates, of the operating fleet by idling more ton- the very challenging conditions for many segments. Most obvi- there were significant shifts in transportation distances for both an estimated 8 percent spike in tonnage demand. This was due nage and creating a higher demand increase through lower fleet ously, the fact that both the tanker and dry bulk freight markets tankers (longer) as well as dry bulk (moderately shorter), while to a combination of increased volume growth and longer dis- productivity. Non-operating owners faced a very difficult year saw periodic rallies through the year is a clear indication that the markedly longer distances seen in the LNG market in 2011 tances as importers rushed to cover the loss of Iranian oil. Pro- as liners had limited need for the chartering of extra tonnage. the level of over-capacity is relatively moderate, compared to were sustained in 2012. Furthermore, fleet productivity fell in ductivity also fell, as it did for all other segments. These factors Total container ship capacity increased by 7.7 percent, while the what was seen in the 1970s and ‘80s. This is partly due to ton- response to higher bunker prices and increased average vessel boosted the crude market during the first months of the year, operating fleet grew by 4.5 percent. Tonnage demand is estimat- nage demand having enjoyed a surprisingly strong year despite size. Lastly, it was a big year for inventory swings with both tank and the clean market during the last months. The period in be- ed to have escalated by around 7 percent, with 5 percent higher an overall weak world economy, as the increased weight of the and dry bulk seeing bigger than normal inventory related trade tween, on the other hand, was dismal, with most crude carriers trade volume and a drop of 2 percent in fleet productivity. The commodity intensive non-OECD economies offset weaknesses movement in response to geopolitical factors (tank) and rela- in particular consistently trading at, or below, operating costs. low growth in container movements was related to a drop of 3 ➤ in the OECD. tive commodity prices (dry bulk). Fleet growth remained high at 7.2 percent, which prevented any percent in European containerized imports. sustained increase in rates. For the year, our Tanker Index of av- Another important development was the continued sharp de- Another year of above-trend fleet growth, cline in the fleet orderbook which declined from 20 percent of but delivery pipeline is emptying the fleet a year ago to 14 percent at the end of 2012, as new or- The world’s merchant fleet continued its pattern of robust ders fell to a decade low. Whatever the reasons for this – more growth, adding another 7.8 percent, only slightly less than the prudent owners, insufficient cash flow, continued challenging record 8.2 percent seen in 2011. This marked the eighth con- tonnage demand growth World merchant fleet 2003–2012 financial conditions – the fact that fleet capacity is responding secutive year where growth exceeded 7 percent. The contribu- vs world economic growth 2003–2012 Annual Changes

rationally to market conditions raises hope that the industry tors to growth were widely spread among key segments, with Tonnage demand growth world merchant fleet, annual changes in percent Percent will avoid a repeat of the protracted structural downturn seen dry bulk in front at 12.6 percent and LNG carriers in the back at 12 9 10 in the past. a modest 1.4 percent, which made that segment the place to be 10 04 8 03 07 for the second straight year. 7 8 06 Tonnage demand slowed less than the 12/08 11 05 6 world economy Overall fleet utilization dropped by 6 5 2012 was yet another year dominated by crisis headlines on the 1 percentage point to 84 percent 4 4 economic front, as the Euro Crisis not only rolled on but gath- A sizable 4 percent drop in dry bulk fleet utilization, the larg- 2 3 ered in strength through the first half of the year. Despite world est segment of the merchant fleet, dragged down overall fleet 0 GDP growth coming in at a lackluster 3.2 percent, tonnage de- capacity utilization. The container fleet also contributed to 2 -2 09 mand registered a healthy rise of 7.1 percent, down from 7.7 this decline, while improvements for the LNG, car carrier and 1 -4 0 percent in 2011. The year gave us important demonstrations of tanker segment moderated the drop.The level of 84 percent uti- -1 0 1 2 3 4 5 6 03 04 05 06 07 08 09 10 11 12 World output growth

8 THE SHIPPING ENVIRONMENT (FROM RS PLATOU ASA’S ANNUAL REPORT 2013) the shipping environment 9 the US seemed unable to move out of its 2 percent sluggish anything, falling farther behind the curve. It took a more prag- growth rate range, regardless of any kind of monetary stimulus matic approach from the ECB with regards to supporting the thrown at it, while, in the face of all this, China (as well as other region’s bond markets, in order to nudge politicians into agree- emerging markets) was showing signs of a significant slow- ing on several difficult issues, including debt write down and down. Forecasters turned out to be relatively accurate in their continued restructuring of the most fragile economies. That in downbeat view of the world economy, as (preliminary) full year turn improved market sentiment regarding the risk of a breakup growth figures show an estimated 3.2 per cent increase, not too of the entire Eurozone. far off the 3.3 percent forecast at the start of the year. Prospects for 2013 are for a moderate pickup in growth but this will still The troubles in Europe shielded the US from the storm for most be below the long-term trend. of the year, but the country’s tepid, and disappointing, growth of around 2 percent slowed further in the fourth quarter, as poli- The challenges for the world economy differ between the -ma ticians battled over how to avoid the Fiscal Cliff of automatic ture economies of the OECD and the ‘growth’ economies of tax hikes and spending cuts. Although a last minute deal was the non-OECD. The former group is struggling with the very reached, unsurprisingly, no fundamental problems were solved difficult combination of reducing national debts and deficits, and the challenges of dealing with the deficit and national debt while at the same time avoiding a relapse into recession, mak- are set to re-emerge in 2013. ing that very task next to impossible. Emerging economies, on the other hand, are feeling some growth pains from their force- Emerging markets became emerging ful response to the Financial Crisis, which boosted inflationary risks to growth pressures in the respective economies via higher commodity A year ago, we discussed the risk of a slowdown in emerging and property prices. markets and the impact on tonnage demand. The scenario turned out to be all too realistic, as 2012 featured a broad based The more positive sentiment visible at the start of 2013 can be slowdown across-the- board in such countries: China’s growth attributed to two main factors. Number one, that key econo- slowed from 9.5 percent in 2011 to a run rate of 7.5 percent in LNG in 2012: Longer and stronger World economy and world shipping mies were pushed to the brink in 2012 – and survived. Sec- 2012. India slowed from 7 percent to 5 percent; Brazil from 4 The LNG shipping market tightened further during 2012 de- 2012 was not a good year for the world economy with, growth ondly, leadership changes in the world’s two largest economies percent to 1 percent; and Russia from 5 percent to 4 percent. spite the fact that demand growth slipped into single digits for slipping to little more than 3 percent, the lowest level for a de- went smoothly, reinforcing the notion that the leaders in the US The combination of tighter monetary policy, due to budding the first time in seven years. The 6 percent growth in tonnage cade, barring the Financial Crisis. Under these circumstances, and China are firmly committed to sustained and uninterrupted inflationary pressures in recent years and weaker export mar- demand was mainly due to longer average distances, as the it came as no surprise that the year also witnessed a slowdown growth. kets, had visible effects and combined to bring GDP growth for inter-basin trade from the Atlantic to the Pacific continued to in tonnage demand growth. That said, growth of 7.1 percent the group classified as ‘developing economies’ below 6 percent expand. Trade volume, in fact, declined by 1 percent. Lower was better than might have been expected, as it represented Europe and the US: Muddling through for only the second time in a decade. This, unsurprisingly, had a fleet productivity also contributed to the demand increase. a more moderate slowdown than that experienced by GDP. In terms of ‘stress tests’, Europe was in the spotlight, as talk of a negative impact on trade growth due to the commodity inten- Productivity fell by an estimated 2 - 3 percent owing to high While there were some special situations, as always, we view ‘Grexit’ increasingly dominated the front pages, while, for every sive nature of these economies. ➤ bunker prices and increased average vessel size. The LNG fleet this relatively strong performance in trade growth as a con- new ‘crisis’ meeting, it became clear that the politicians were, if grew only 4 percent and thus lifted the fleet utilization rate to 95 firmation of the changing, and more shipping intensive, percent, which resulted in an average spot rate of $125,000 per composition of the world economy. The commodity inten- day, up from $93,000 per day in 2011. sive non-OECD economies are increasing in size in relation to the mature, service-oriented OECD economies. Based on ANNUAL GROWTH IN REAL GDP world seaborne trade and economic growth 1970-2012 Car carriers: Uneven improvement the IMF’s current forecasts the former group is on course to Percentage change from previous year

The car carrier market has seen another year of fluctuations in overtake the latter in absolute size, in 2013. This long-term Index 1970=100 tonnage demand. 2012 started off well with export volumes trend will underpin overall shipping demand in the years Jan 2012 Jan 2013 Jan 2013 Forecast estimates Forecast 500 World output 2012 2012 2013 rising from the recovery of the Japanese automobile industry, to come and gives reasons for optimism regarding recovery. 450 Seaborne dry trade strong Korean exports and growing US auto sales. However, the The increasing weight of the non-OECD economies was ably USA 1.8 2.3 2.0 JAPAN 1.7 2.0 1.2 400 Seaborne oil trade Euro crisis took its toll on European car sales and along with demonstrated this year by the extent to which mere inventory EURO AREA -0.5 -0.4 -0.2 350 strikes in Korea, contributed to a fall in export volumes dur- swings in iron ore and coal in China moved the entire dry bulk C AND E EUROPE 1.1 1.8 2.4 300 ing the second half of the year. Due to reasonably modest fleet market. RUSSIA 3.3 3.6 3.7 CHINA 8.2 7.8 8.2 250 growth, the average market balance improved somewhat from INDIA 7.0 4.5 5.9 2011, climbing to an estimated 84 percent fleet utilization rate. Status and prospects for the world economy ASEAN 5.2 5.7 5.5 200 Prospects for tonnage demand going forward depend heavily 2012 began with forecasters in a downbeat and highly uncer- M EAST AND N AFRICA 3.2 5.2 3.4 150 SUB-SAHARA AFRICA 5.5 4.8 5.8 100 on the economic development in key sales markets, as well as tain mood, after 2011 turned into yet another false dawn for the L AMERICA 3.6 3.0 3.6 50 the possibility of relocation of car production from Japan to world economy. Most notably it became clear that politicians WORLD 3.3 3.2 3.5 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 overseas markets as a result of the strong Yen. were still behind the curve in the Eurozone crisis. In addition, Source: IMF

10 THE SHIPPING ENVIRONMENT (FROM RS PLATOU ASA’S ANNUAL REPORT 2013) the shipping environment 11 Signs of encouragement as 2013 got underway tone in the world economy, discussed above, is obviously a very the offshore support vessel market The improvement in sentiment seen at the start of 2013 reflects important factor. The ability for the world economy to influence stronger underlying data. The biggest, and for shipping, most shipping must in turn be seen against the backdrop of current important, change is in China. When the economy first began overcapacity conditions that are far more moderate than in the to slow authorities appeared hesitant to do anything to stimu- dark days of the 1980s. The various freight markets’ demon- late growth, most likely worried about the lingering inflationary strated ability to respond to changes in trading conditions during Unfulfilled expectations pressures which came as a result of the truly giant stimulus pack- 2012 is a key sign in that regard. The most positive surprise may age in 2009. However, in September another stimulus package have been on the supply side of the market, however, which has was revealed and, combined with a softening of banks’ capital responded very rationally to the weak business climate by sharply requirements, this led to an improvement in the tone of the eco- reducing new orders. The overall orderbook thus fell steadily and PSVs 150,000 GBP. Term rates of large AHTS vessels were also driven nomic data. ended the year at 14 percent of the fleet, the lowest relative level Increasing pessimism among owners spread through the OSV upwards at the start of the year, to such an extent that they pulled in fifteen years and down from 20 percent a year ago. market in 2012, especially towards the latter half of the year. The the annual average up by 15 percent in 2012. As expectations In the US, the severely deflated housing market gradually im- North Sea was symptomatic of the global trends. Average annual were lowered through the year, term rates fell substantially. An- proved through the year and, combined with continued growth Finally, the structure of the world economy continues to be- spot rates dropped by 16 percent for medium-sized tonnage to nual averages for spot rates of large AHTS vessels declined by in the auto and energy producing industries, overall labor mar- come more shipping intensive. Chinese import growth re- 9,800 GBP in 2012, while large-sized tonnage dropped even 30 percent to 22,400 GBP. The decline in day rates was reflected ket conditions began to show signs of more consistent improve- mained close to GDP growth, even during a year of slowdown. more - by 18 percent to 12,700 GBP. Annual average term rates in utilizations, with the total North Sea AHTS vessel utilization ment late in 2012. Furthermore, the size of the economy is such that even tactical show a different picture, rising 4 percent and dropping 3 percent rate dropping to 66 percent in 2012, compared to 76 percent the considerations, like stock building and/or arbitrage inspired for medium and large-sized tonnage respectively. However, closer previous year. Clearly demand did not live up to expectations Expectations for the world economy in 2013 are muted. Growth trades, can move entire markets. Also, the shale energy revolu- scrutiny shows that term rates declined steeply from the middle and was held back by several factors. Although the North Sea is expected to nudge up to 3.5 percent, still well below its long- tion in the US has contributed to a net rise in shipping activity, of the year, as market expectations were lowered. rig count increased in 2012, the number of wells drilled was flat. term potential. However, calmer financial markets signal an im- by raising the country’s exports of refined oil products and coal In other words, there were fewer rig moves than expected. The provement in overall business and consumer confidence - vital (and, soon, LNG), while also contributing to longer trading dis- North Sea fleet utilization rates were also dropping through 2012. additional rig capacity that was expected to enter the North Sea factors when it comes to making investment decisions that pro- tances for crude oil. Medium-sized PSV utilization in the North Sea decreased from was also delayed. Furthermore, a softer PSV market resulted in mote growth and employment. The relative stability of the oil 85 percent in 2011, to 82 percent in 2012. Large-sized PSVs av- AHTS vessels being out-competed for cargo work. Finally, the market, despite the fact that the 2012 average price for Brent Market conditions are likely to remain difficult in 2013 for the eraged 97 percent fleet utilization in 2011, but dropped to 92 North Sea weather proved much better in 2012 than 2011, thus was the highest on record - also contributed to a moderately segments that struggled in 2012. However, we believe there are percent in 2012. Although North Sea PSV demand was increas- facilitating easier operations. improved growth situation and the hope that the worst is over. good reasons to hope that shipping has retained its cyclicality ing, the influx of vessels from Norwegian yards, which raised the through this difficult period, and will be able to share the fruits North Sea fleet by 23 units (or close to 13 percent), sent the PSV Elsewhere, the large AHTS market was largely unchanged. Term Shipping market prospects: of any improvement in the world economy, once it arrives, rela- utilization and day rates lower. rates for all sizes of AHTS vessels in Brazil increased by an average Cyclicality is not dead tively quickly. of 7-10 percent, but the net effect was not considerable, given the On the face of it, there seem to be few reasons to expect much In previous years, surplus PSVs in the North Sea have moved to increases in operational costs. In West Africa AHTS term rates improvement for world shipping markets in 2013. However, we Ole-Rikard Hammer other relatively more attractive regions, thus rebalancing the mar- were also close to unchanged. believe there are reasons to think that a change is, if not in the Head of Research ket. However, two main factors were blocking this rebalancing in air, certainly visible on the horizon. The cautiously improved RS Platou Economic Research 2012. Global floater activity, which is one of the main drivers of The market balance for smaller AHTS vessels tightened moder- PSV demand, grew substantially in the first half of 2012, but was ately in 2012, especially in SE Asia. We observed that term rates flat in the second half, thus limiting PSV demand growth. At the for smaller AHTS (5,150 BHP) increased by 8 percent to 8,800 same time, Petrobras, which has previously been a major taker USD in 2012. Term rates for their larger siblings (12,000 BHP) of vessels internationally, basically stopped fixing new vessels, as increased even more, climbing by 19 percent to 18,800 USD. supply, demand and utilization rate 1990-2012 GLOBAL ECONOMIC GROWTH 2003-2013 World merchant fleet Forecasts and actual growth rates new management reassessed logistical needs offshore. As a result, Jack-up demand, which is a main driver of such tonnage, also term rates for PSVs in both Brazil and West Africa started drop- grew considerably in both the Middle East and SE Asia, where Mill cgt Utilization rate Percent change ping towards the end of the year, making shifting tonnage out of many of the vessels are located. In addition, deliveries of AHTS 500 130 Supply 6 Forecast the North Sea less attractive. vessels slowed down in 2012. Actual Demand 5 400 120 Utilization rate 4 One region where demand continued to rise on the back of in- Demand: Review of 2012 and prospects creasing UDW demand was the Gulf of Mexico. Term rates in the Global OSV demand is estimated to have increased by close to 300 110 3 Gulf of Mexico rose by close to 30 percent during 2012, to an 9 percent in 2012 - a similar level to the demand growth seen in 2 200 100 average of 27,000 USD per day for large PSVs. As a result, some 2011. The increase in OSV demand in 2012 came on the back 1 Jones Act vessels returned for operations in US waters. of continued rising global E&P spending, which is estimated to 100 90 have escalated by 15 percent in 2012. 0 AHTS

0 80 -1 The large AHTS market in the North Sea disappointed in 2012. Rising rig demand was again symptomatic of the increasing OSV 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Owners’ expectations were raised after the weather-induced mar- demand. As reported in the rig section, jack-ups on contract ket of the second half of 2011 saw a series of spot fixtures above globally increased from 353 units at the end of 2011 to 374 units ➤ Source: IMF (Forecast per Oct. the year before)

12 the shipping environment THE SHIPPING ENVIRONMENT (FROM RS PLATOU ASA’S ANNUAL REPORT 2013) 13 in December 2012, a rise of 6 percent. Similarly, fl oater activity more, scrapping was insignifi cant in 2012. Our fi gures indicate was signifi cantly higher and our fi gures show global demand in- only fi ve AHTS vessels and two PSVs were scrapped. As a result creased 12 percent - from 226 units at the end of 2011, to 254 of these developments, total fl eet growth in 2012 was 6 percent units a year later. As mentioned earlier, the number of rising fl oat- and 9 percent for the AHTS and PSV fl eets respectively. ers on contract was greater towards the fi rst half of 2012. Th e fl oater fl eet was close to fully utilized during the year, with an in- Trends in new orders in 2012 showed a continued divergence in crease in working units resulting mainly from newbuilds entering preference regarding tonnage. Our records show that 187 PSVs operation. Th e second half of 2012 experienced a temporary lull and 86 AHTS were ordered in 2012. Most of the AHTS ordered in fl oater newbuilds entering the market, thus impacting nega- were in the smallest category (66 units), with few new orders of tively on OSV demand growth. larger AHTS vessels. Th e record levels of PSV investments should be seen in relation to increasing expectations for deepwater activ- Global OSV demand is expected to continue to grow by between ity, and the growing preference for investments in UDW fl oaters. 8 and 10 percent in 2013. OSV demand growth is likely to be driven by a further focus on exploring and developing deepwater Th e current AHTS orderbook indicates that 131 units will be assets. From the second quarter of 2013, we expect an additional delivered in 2013 and 21 units will be delivered in 2014. How- 23 UDW fl oaters to be delivered over the course of the year. As ever, it is expected that delays at yards, which have been exten- vessels per rig serviced in deepwater tend to be relatively high, sive over the last few years, will continue in 2013 and mitigate years. However, if the productivity of new yards, especially the Seasonal demand drivers, such as new Greenland campaigns, and distances from shore-base to off shore locations tend to be some of the fl eet growth. Scrapping/removal of tonnage is ex- Chinese yards, improves, then the delivery rate per quarter has will not kick in before 2014 and 2015. Past experience of similar further, demand for OSVs is expected to receive an additional pected to remain insignifi cant, despite a large part of the fl eet the potential to increase. We currently expect the PSV fl eet to campaigns has shown a patt ern of high vessel intensity per rig, boost. On a regional basis, we expect OSV demand growth to be being built as early as the 70s/80s. Although, it must be said, grow by 120 vessels, or 10 percent, in 2013. If yard productivity which could work to boost OSV demand. Th e North Sea AHTS driven strongly by additional deepwater activity in West and East there is an increased focus from charterers on the age of ves- improves this fi gure might prove to be conservative. market balance is therefore unlikely to tighten considerably Africa and the Gulf of Mexico. In South America, Petrobras is un- sels and vessel specifi cations. Many charterers are, for example, before 2014. However, as before, the harsh environment and likely to be the same driver of tonnage demand, as it is now close demanding vessels that are no older than 10-15 years, while DP concluSionS weather will have the fi nal say in the strength of the large AHTS to having contracted its stated goal of deepwater off shore rigs. II has become the industry standard. Many of the older, lower On a global basis, OSV day rates and fl eet utilization for OSVs market in the North Sea. Elsewhere, this market could be fur- Further gains in jack-up demand in the Middle East and South specifi cation vessels are therefore removed from actively par- are forecast to rise moderately in 2013. Th is means the loosen- ther marginalized as ageing, conventionally-moored fl oaters are East Asia will also boost demand of small/mid-size AHTS vessels ticipating in the off shore markets. Due to their low scrapping ing of the OSV balance, seen in particular during the second being crowded out by new, dynamically-positioned UDW fl oat- (see rig section). value they are not sent to the breakers, but rather ‘idled’. Th e half of 2012, is expected to be reversed in 2013. Th e main driver ers. Th e conventionally-moored fl oaters are of course a main competitive fl eet may therefore be smaller than indicated in the of the change will be new UDW fl oaters entering service, espe- demand driver in the large AHTS market. Fleet tRend and neW oRdeRS fl eet counts. Th is also applies to the PSV fl eet. Given the above, cially from the second quarter of 2013, resulting in increased Th e fl eet grew considerably less than the orderbook suggested at we expect the total AHTS fl eet will probably grow by close to 4 demand for additional DP II PSVs. Day rates for smaller/medium-sized AHTS vessels in the main the start of 2012. Our records show 119 AHTS vessels and 105 percent in 2013. markets of Asia and West Africa should be fairly balanced in PSVs were delivered in 2012, while, at the start of the year, 200 Th e North Sea PSV market will still see additional units being 2013, given the number of expected deliveries in relation to in- AHTS and 170 PSVs were scheduled for delivery. Inexperience, Th e current PSV orderbook indicates that 230 units will be de- delivered from Norwegian yards. However, increasing income creasing jack-up demand. especially in the fi nal construction stages, is quoted as the main livered in 2013 and 116 units in 2014. However, signifi cant de- diff erentials between the North Sea and other regions will reason for delays. Many new yards are located in the Asian region lays are also expected for PSVs in 2013. Yards have managed to probably lead to vessels leaving the North Sea, thus tightening Sven Ziegler and they appear to be responsible for the majority of delays. Once deliver a maximum of 25-30 vessels per quarter over the last few the supply-demand balance. RS Platou Off shore Research

north sea tonnage 2003–2012 north sea tonnage 2003–2012 ahts/Psv neW orders Per year ahts average t/c rates (rePorted and estimated) Psv average t/c rates (rePorted and estimated) ahts/Psv fleet overvieW £/day £/day No. of vessels 45,000 30000 2 250 20,000+ 900+ m AHTS in service orderbook BHP 40,000 deck area total total PSV 16-19,999 25000 750-899 m2 AHTS 4-7,999 BHP 1,140 89 35,000 200 BHP deck area AHTS 8-9,999 BHP 212 6 10-15,999 AHTS 10-15,999 BHP 314 26 30,000 20000 2 BHP 500-749 m AHTS 16-19,999 BHP 112 19 deck area 150 25,000 8-9,999 AHTS 20,000+ BHP 67 13 15000 3,100+ dwt 20,000 BHP ahts total 1,845 153 2,200 -3,099 100 PSV <500 m2 364 56 15,000 10000 dwt PSV 500-749 m2 436 47 10,000 2,200+ dwt 50 PSV 750-899 m2 91 109 5000 PSV 900+ m2 245 148 5,000 Psv total 1136 360 0 0 0 total orderbook 2981 513 03 04 05 06 07 08 09 10 11 12 03 04 05 06 07 08 09 10 11 12 03 04 05 06 07 08 09 10 11 12

14 THE OFFSHORE SUPPORT vESSEL MARKET THE OFFSHORE SUPPORT vESSEL MARKET 15 Projects per year

Uncalled Total committed Uncalled Total committed Project name no. of vsls. established cUrrency Project price Paid in capital capital capital Project name no. of vsls. established cUrrency Project price Paid in capital capital capital

Projects established 2004 Projects established 2007 continued Aries Supply I KS 1 April 2004 NOK 201 046 770 42 300 000 15 000 000 57 300 000 Asian Bulkers DIS 3 October 2007 USD 142 875 000 49 075 000 0 49 075 000 Ross Cape DIS 1 October 2004 USD 17 350 000 3 850 000 1 000 000 4 850 000 Short Sea Bulkers DIS 4 November 2007 EUR 24 800 000 4 550 000 4 500 000 9 050 000 International Container KS 2 November 2004 USD 66 260 000 12 260 000 4 150 000 16 410 000 Ross Chemical IV DIS 2 November 2007 USD 53 000 000 18 000 000 0 18 000 000 J.B.U OBO I KS 1 December 2004 USD 36 580 000 7 780 000 5 000 000 12 780 000 Dongguan Chemical Tankers DIS 1 November 2007 USD 32 750 000 7 150 000 7 000 000 14 150 000 No. of vessels 5 Total NOK 201 046 770 42 300 000 15 000 000 57 300 000 Pantheon Chemical DIS 1 November 2007 EUR 31 000 000 5 160 000 5 500 000 10 660 000 No. of projects 4 Total USD 120 190 000 23 890 000 10 150 000 34 040 000 No. of vessels 43 Total NOK 0 0 0 0 Total EUR - - - - No. of projects 18 Total USD 799 635 000 206 635 000 55 125 000 261 760 000 Total EUR 144 000 000 20 060 000 20 000 000 40 060 000 Project price USD 150 018 898 30 165 964 12 375 519 42 541 484 Project price USD 996 467 765 234 054 898 82 462 884 316 517 782

Projects established 2005 Projects established 2008 Eidsiva Trucker KS 1 February 2005 EUR 10 900 000 2 470 000 2 000 000 4 470 000 Marineline Chemical DIS 3 February 2008 USD 79 850 000 12 680 000 0 12 680 000 Mount Faber KS 4 April 2005 USD 80 900 000 13 325 000 0 13 325 000 Edda Accommodation DIS 1 February 2008 EUR 126 500 000 44 000 000 12 000 000 56 000 000 Norwegian Shipping DIS April 2005 USD 19 200 000 13 700 000 5 500 000 19 200 000 NFC AHTS Ltd. 2 March 2008 USD 70 520 000 24 600 000 0 24 600 000 Goliat Roro KS 1 May 2005 EUR 9 000 000 1 960 000 1 500 000 3 460 000 Bukit Timah Offshore DIS 3 May 2008 USD 125 269 250 29 269 250 0 29 269 250 Global Cable KS 2 June 2005 USD 12 320 000 2 870 000 3 000 000 5 870 000 Mountbatten Offshore DIS 2 May 2008 USD 109 134 000 25 134 000 0 25 134 000 Bergshav Chemical KS 2 July 2005 EUR 20 470 000 4 470 000 2 200 000 6 670 000 Bovey Offshore Ltd. 4 May 2008 USD 42 650 000 14 475 000 0 14 475 000 Volstad Supply I KS 1 August 2005 NOK 262 620 000 75 050 000 20 000 000 95 050 000 Semakau Producer DIS 1 July 2008 USD 20 400 000 20 400 000 0 20 400 000 Scandinavian Bulkers KS 5 September 2005 EUR 28 926 000 6 776 000 6 000 000 12 776 000 European Venture III DIS 1 July 2008 USD 17 720 000 5 720 000 5 000 000 10 720 000 Volstad Supply II KS 1 November 2005 NOK 262 620 000 75 050 000 20 000 000 95 050 000 Golden Kamsar DIS 1 August 2008 USD 67 294 000 17 294 000 12 500 000 29 794 000 Agder Ocean Reefer KS 3 November 2005 USD 27 750 000 6 150 000 0 6 150 000 Jimbaran DIS 1 September 2008 USD 54 200 000 9 035 000 0 9 035 000 Celine I OBO DIS 1 November 2005 USD 12 470 000 1 970 000 3 000 000 4 970 000 Seminyak DIS 2 September 2008 USD 108 963 000 18 618 000 14 000 000 32 618 000 Cement Ship II DIS 1 November 2005 USD 19 800 000 5 575 000 4 000 000 9 575 000 JBUS Offshore DIS 2 September 2008 USD 60 000 000 27 000 000 0 27 000 000 Multipurpose Bulkers DIS 4 December 2005 EUR 27 145 000 4 695 000 4 500 000 9 195 000 Oceanlink Reefer III DIS 1 September 2008 USD 20 200 000 5 200 000 5 000 000 10 200 000 SBS Tempest KS 1 December 2005 NOK 134 300 000 29 300 000 10 000 000 39 300 000 Agder Ocean Reefer III AS 7 October 2008 USD 53 500 000 10 000 000 7 000 000 17 000 000 SBS Torrent KS 1 December 2005 NOK 141 175 000 31 975 000 10 000 000 41 975 000 No. of vessels 31 Total NOK 0 0 0 0 Green Pacific DIS 3 December 2005 USD 30 590 000 6 090 000 8 000 000 14 090 000 No. of projects 14 Total USD 829 700 250 219 425 250 43 500 000 262 925 250 No. of vessels 31 Total NOK 800 715 000 211 375 000 60 000 000 271 375 000 Total EUR 126 500 000 44 000 000 12 000 000 56 000 000 No. of projects 16 Total USD 203 030 000 49 680 000 23 500 000 73 180 000 Project price USD 1 004 270 250 280 145 250 60 060 000 340 205 250

Total EUR 96 441 000 20 371 000 16 200 000 36 571 000 Projects established 2009

3 offshore 3 July 2009 USD 135 000 000 10 000 000 10 000 000 Project price USD 447 167 112 107 807 795 52 940 994 160 748 789 Projects established 2006 ICON Victorious 1 September 2009 USD 42 500 000 18 750 000 18 750 000 Diving Bell 1 September 2009 USD 10 000 000 10 000 000 10 000 000 Norwegian Shipping II DIS January 2006 USD 8 000 000 5 200 000 2 800 000 8 000 000 No. of vessels 5 Total NOK 0 0 0 0 SBS Typhoon KS 1 January 2006 NOK 167 050 000 36 650 000 25 000 000 61 650 000 No. of projects 3 Total USD 277 500 000 127 750 000 0 127 750 000 Japan Offshore DIS 3 April 2006 USD 37 150 000 8 150 000 3 000 000 11 150 000 Total EUR 0 0 0 0 Aries Supply II KS 1 April 2006 NOK 155 000 000 33 000 000 21 000 000 54 000 000 European Venture DIS 2 April 2006 USD 46 325 000 9 965 000 5 000 000 14 965 000 Project price USD 277 500 000 127 750 000 - 127 750 000 NFC Offshore DIS 4 April 2006 USD 74 500 000 24 480 000 8 000 000 32 480 000 Oceanlink Offshore DIS 1 May 2006 USD 13 250 000 2 750 000 2 500 000 5 250 000 Projects established 2010 Panda Chemical Oil DIS 1 June 2006 USD 19 545 000 4 345 000 1 500 000 5 845 000 Octavian Bulker DIS 1 September 2010 USD 37 400 000 16 000 000 0 16 000 000 Western Chemical KS 3 July 2006 EUR 32 775 000 7 095 000 5 750 000 12 845 000 Shanghai Bulker DIS 1 August 2010 USD 9 000 000 1 670 000 1 670 000 Singapore Offshore DIS 5 August 2006 USD 129 100 000 8 500 000 8 000 000 16 500 000 Saragol Tanker 1 DIS 1 July 2010 USD 48 237 500 17 737 500 0 17 737 500 Oceanlink Offshore II DIS 1 August 2006 USD 12 000 000 2 250 000 2 250 000 4 500 000 Saragol Tanker 2 DIS 1 November 2010 USD 54 312 500 18 812 500 2 000 000 20 812 500 Japan Offshore II DIS 3 September 2006 USD 39 075 000 8 775 000 7 825 000 16 600 000 No. of vessels 4 Total NOK 0 0 0 0 NFC Offshore III DIS 2 October 2006 USD 46 046 000 14 186 000 8 666 000 22 852 000 No. of projects 4 Total USD 148 950 000 54 220 000 2 000 000 56 220 000 Japan Offshore III DIS 2 October 2006 USD 47 340 000 10 540 000 9 430 000 19 970 000 Total EUR 0 0 0 0 Oceanlink Offshore III DIS 2 October 2006 USD 28 500 000 5 200 000 9 600 000 14 800 000 Project price USD 148 950 000 54 220 000 2 000 000 56 220 000

Agder Ocean Reefer II AS 2 November 2006 USD 19 500 000 4 500 000 0 4 500 000 Projects established 2011 Northern Offshore DIS 2 November 2006 USD 39 000 000 8 400 000 6 740 000 15 140 000 Norwegian Product DIS 2 November 2006 USD 32 865 000 7 265 000 6 500 000 13 765 000 Northern Supply DIS 88 000 000 20 800 000 19 280 000 40 080 000 Global Cable II DIS 2 December 2006 USD 45 400 000 9 400 000 6 000 000 15 400 000 Redfish Offshore 45 000 000 9 000 000 0 9 000 000 No. of vessels 39 Total NOK 322 050 000 69 650 000 46 000 000 115 650 000 No. of vessels 4 Total NOK 0 0 0 0 No. of projects 19 Total USD 637 596 000 133 906 000 87 811 000 221 717 000 No. of projects 2 Total USD 133 000 000 29 800 000 19 280 000 49 080 000 Total EUR 32 775 000 7 095 000 5 750 000 12 845 000 Total EUR 0 0 0 0 Project price USD 133 000 000 29 800 000 19 280 000 49 080 000

Project price USD 728 855 930 153 651 288 102 186 000 255 837 288 Projects established 2012 Projects established 2007 Singapore Supply DIS 42 700 000 10 240 000 8 580 000 18 820 000 Ross Chemical II DIS 5 February 2007 USD 119 100 000 25 100 000 12 000 000 37 100 000 Vestland Marine PSV DIS 1 650 000 1 650 000 0 1 650 000 Atlantic Guardian DIS 1 February 2007 USD 42 880 000 8 100 000 8 000 000 16 100 000 Industrial Shipping DIS 25 950 000 5 750 000 0 5 750 000 NFC Panamax DIS 1 March 2007 USD 24 650 000 4 650 000 0 4 650 000 No. of vessels 9 Total NOK 0 0 0 0 Orchard Offshore DIS 4 March 2007 USD 43 800 000 7 800 000 2 125 000 9 925 000 No. of projects 3 Total USD 44 350 000 11 890 000 8 580 000 20 470 000 Raffles Offshore DIS 1 March 2007 USD 45 945 000 12 445 000 4 500 000 16 945 000 Total EUR 25 950 000 5 750 000 0 5 750 000 Norwegian Offshore DIS 4 April 2007 USD 65 470 000 21 900 000 6 000 000 27 900 000 Project price USD 78 423 478 19 440 000 8 580 000 28 020 000

Med Ethylene DIS 2 May 2007 USD 27 875 000 6 275 000 4 500 000 10 775 000 Projects established 2013 Ullswater Subsea DIS 1 May 2007 USD 48 820 000 12 820 000 5 000 000 17 820 000 European Venture II DIS 1 July 2007 USD 11 370 000 3 370 000 6 000 000 9 370 000 Feeder Container Vessel DIS 4 300 000 4 300 000 0 4 300 000 Tioman Offshore DIS 1 July 2007 USD 51 150 000 11 150 000 0 11 150 000 No. of vessels 1 Total NOK 0 0 0 0 Sentosa Offshore DIS 4 July 2007 USD 46 350 000 8 300 000 0 8 300 000 No. of projects 1 Total USD 4 300 000 4 300 000 0 4 300 000 Southern Chemical DIS 3 July 2007 EUR 88 200 000 10 350 000 10 000 000 20 350 000 Total EUR 0 0 0 0 Bovey Offshore Ltd 4 August 2007 USD 43 600 000 10 500 000 0 10 500 000 Project price USD 4 300 000 4 300 000 - 4 300 000

16 PROJECTS summary PROJECTS summary 17 ExISTING PROJECTS PER SEGMENT PROJECTS SOLD

Projects TOTAL PROJECT PRICE Projects TOTAL PROJECT PRICE accUmUlated Projects sold established Paid in caPital distribUtions irr P.a. sold offshore/supply cable layers Mount Faber KS USD 80 900 000 Atlantic Guardian DIS USD 42 880 000 Aries Supply I KS apr-2004 NOK 42 300 000 125 499 000 66 % 2007 SbS Torrent KS NOK 144 900 000 Global Cable II DIS USD 45 400 000 NFC Offshore DIS apr-2006 USD 16 280 000 32 500 000 477 % 2007 SbS Typhoon KS NOK 163 000 000 Ross Cape DIS nov-2004 USD 3 850 000 6 088 300 41 % 2007 European venture DIS USD 46 325 000 other International Containerships KS nov-2004 USD 12 260 000 18 802 700 96 % 2005 European venture III DIS USD 17 750 000 MS Nordstjernen DIS USD 1 000 000 Aries Supply II KS apr-2006 NOK 33 000 000 46 560 000 64 % 2007 Singapore Offshore DIS USD 129 100 000 Feeder Container vessel DIS USD 4 300 000 NFC Offshore III DIS okt-2006 USD 13 100 000 16 400 000 26%*) 2007 Oceanlink Offshore III DIS USD 28 500 000 Agder Ocean Reefer KS USD 27 750 000 J.b.U ObO I KS des-2004 USD 7 780 000 6 608 000 37 % 2007 Norwegian Offshore DIS USD 65 470 000 Platou Shipinvest I DIS USD 47 000 000 Japan Offshore DIS apr-2006 USD 8 150 000 1 400 000 70%*) 2007 Orchard Offshore DIS USD 43 800 000 Japan Offshore II DIS sep-2007 USD 350 000 3 166 300 733%*) 2007 Ullswater Subsea DIS USD 12 820 000 Product tankers Japan Offshore III DIS okt-2007 USD 1 110 000 1 635 000 48.5%*) 2007 Sentosa Offshore DIS USD 46 350 000 Northern Offshore DIS des-2007 USD 8 400 000 21 000 000 153 % 2007 bovey Offshore Ltd USD 43 600 000 Norwegian Product DIS USD 32 865 000 Celine I ObO DIS nov-2007 USD 1 970 000 4 250 000 57 % 2007 bukit Timah Offshore DIS USD 125 269 250 Saragol Tankers 1 DIS USD 56 000 000 Goliat Roro KS mai-2005 EUR 1 960 000 0 -25%*) 2007 Northen Supply DIS USD 84 000 000 Saragol Tankers 2 DIS USD 49 000 000 Semakau Producer DIS juli-2008 USD 20 400 000 17 750 000 N/A 2009 Singapore Supply DIS USD 44 400 000 Global Cable KS juni-2005 USD 2 870 000 7 625 182 28 % 2009 1 104 379 250 segment Scandinavian bulkers DIS sep-2010 EUR 6 776 000 6 776 000 0 % 2010 Offshore/Supply 16 43% SbS Tempest KS sep-2005 NOK 29 300 000 84 150 000 30 % 2011 lPg / chemical tankers LPG/Chemical tankers 7 19% Norwegian Offshore I DIS apr-2007 USD 23 025 000 23 325 000 0 % 2011 Panda Chemical Oil DIS USD 19 545 000 5 14% Eidsiva Trucker KS feb-2005 EUR 6 180 000 - -100%*) 2010 Med Ethylene DIS USD 6 275 000 Cable layers 2 5% JbUS Offshore DIS sep-2008 USD 32 500 000 35 000 000 3 % 2012 Southern Chemical DIS EUR 88 200 000 Product tankers 3 8% bergshav Chemical DIS juli-2005 EUR 4470000 840 000 -48%*) 2011 Dongguan Chemical DIS USD 32 750 000 Other 4 11% Western Chemical juli-2006 EUR 7095000 1 650 000 -60%*) 2011 Marineline Chemical DIS USD 79 850 000 37 100% European venture II DIS juli-2007 USD 3 370 000 6 964 845 20 % 2011 Seminyak DIS USD 108 963 000 Mountbatten DIS juli-2008 USD 26 698 000 26 300 000 -8%*) 2011 blue Mountain Tankers DIS USD 119 100 000 type Norwegian Shipping DIS apr-2005 USD 13 700 000 19 317 994 15 % 2012 bareboat 30 81% Tioman Offshore DIS juli-2007 USD 10 000 000 12 050 000 10 % 2011 bulk carriers Timecharter 4 11% Shanghai bulkers DIS aug-2010 USD 1 670 000 2 690 000 55 % 2011 Asset play 2 5% volstad Supply I DIS aug-2005 NOK 40 000 000 130 000 000 27 % 2011 RTS Panamax DIS USD 24 650 000 volstad Supply II DIS nov-2005 NOK 55 250 000 200 000 000 38 % 2011 Asian bulkers DIS USD 142 875 000 Funds 1 3% 37 100% Cement Ship II DIS nov-2005 USD 5 575 000 12 640 000 19 % 2013 Golden Kamsar DIS USD 67 294 000 Norwegian Shipping II DIS apr-2005 USD 5 200 000 7 196 500 8 % 2013 Octavian bulker DIS USD 37 000 000 vestland Marine PSv DIS jan-2012 USD 1 600 000 2 170 000 30 % 2013 Industrial Shipping DIS EUR 34 000 000 Raffl es Offshore DIS mar- 2007 USD 12 445 000 27 025 000 16% 2013

*) Return on equity

total PRoJectS By SegMent total PRoJectS By eMPloyMent totalcaPital PRoJectS PeR yeaR By - SegMent uSd accuMulated caPital - uSd

Mill Mill 1,200 Total projects price 4000 Total projects price Other 11% Funds 3% Asset play 5% Paid in capital 3500 Paid in capital O shore/Supply 43% Timecharter 11% 1,000 Product tankers 8% Uncalled capital Uncalled capital Bareboat 81% 3000 800 Cable layers 5% 2500

600 2000

1500 Bulk carrier 14% 400 1000 200 500

LPC/Cemical tankers 19% 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

18 PROJECTS SUMMARy PROJECTS SUMMARy 19 PROJECTS ESTIMATED RETURNS AGDER OCEAN REEFER KS

Key figUres (date of analysis: 01.07.2013) Project broker: Axel M. Aas, Corporate Manager: Eva Lise bjerke accUmUlated distribUtions estimated estimated estimated accUmUlated in % of share Price irr seller irr for Established: November 2005 Estimated share value per 1%: 0 Latent tax benefi t vessel pr 1%: N/A Projects established Paid in caPital distribUtions Paid in caPital Per 1% Per 1% bUyer Paid in capital: USD 6 900 000 Last reported sale per 1%: June 2008 USD 73 450 Latent tax benefi t debt pr. 1%: N/A Uncalled capital: USD 0 Estimated IRR buyer: N/A Accumulated dividends: USD 2 050 000 Estimated IRR Seller: N/A Agder Ocean Reefer KS nov-2005 USD 6 150 000 2 050 000 33 % N/A N/A N/A Asian bulkers DIS okt-2007 USD 48 000 000 - 0 % 0 N/A N/A the vessels Atlantic Guardian DIS feb-2007 USD 8 100 000 4 100 000 51 % 77 500 6 % N/A bovey Offshore Ltd aug-2007 USD 21 375 000 17 550 000 82 % 263 500 15 % 18 % bukit Timah Offshore DIS May 2008 USD 29 269 000 17 350 000 59 % 297 500 11 % 17 % Dongguan DIS des-2007 USD 7 150 000 3 500 000 49 % 41 250 2 % 18 % European venture DIS apr-2006 USD 9 965 000 8 090 000 81 % 156 500 17 % 33 % European venture III DIS juli-2008 USD 5 720 000 5 885 000 103 % 55 000 23 % 45 % Feeder Container vessel DIS mai-2011 USD 4 300 000 0 % 43 000 0 % 24 % Global Cable II DIS des-2006 USD 8 200 000 9 500 000 116 % 114 000 15 % 24 % Golden Kamsar DIS aug-2008 USD 23 694 000 - 0 % 194 000 -5 % 17 % Industrial Shipping DIS May2012 USD 5 750 000 355 515 6 % 58 000 6 % 24 % vessels name: Mv Italian Reefer Mv Iberian Reefer Mv Indian Reefer Marineline Chemical DIS feb-2008 USD 18 710 000 - 0 % 0 N/A N/A Type: Refrigerated Carrier Refrigerated Carrier Refrigerated Carrier Med Ethylene DIS mai-2007 USD 6 275 000 4 880 000 78 % 59 000 9 % 25 % DWT: 6 088 6 112 6 120 Mount Faber KS apr-2005 USD 13 325 000 21 119 750 158 % 31 250 23 % 34 % Capacity (cbm): 265 770 265 770 265 770 MS Nordstjernen DIS nov-2012 NOK 6 000 000 825 000 14 % 57 150 16 % 10 % yard: Kvaerner Kleven AS Kvaerner Kleven AS Kleven Mek. verksted AS RTS Panamax DIS mars-2007 USD 4 650 000 3 050 000 66 % 0 -15 % N/A built: 1992 1991 1991 Northern Supply DIS may 2011 USD 20 800 000 - 0 % 208 000 N/A N/A Class: DNv - 1A DNv - 1A DNv - 1 A Norwegian Offshore II DIS apr-2007 USD 32 925 000 - 0 % 329 250 N/A N/A Flag: Isle of Man Isle of Man Isle of Man Norwegian Product DIS nov-2006 USD 10 115 000 5 560 000 55 % 87 500 6 % 22 % Oceanlink Offshore III DIS okt-2006 USD 5 200 000 3 592 500 69 % 13 500 -1 % 25 % Octavian bulker DIS sep-2010 USD 16 000 000 500 000 3 % 52 500 -31 % 17 % commercial details Orchard Offshore DIS mars-2007 USD 7 800 000 8 850 000 113 % 81 750 17 % 18 % Panda Chemical Oil DIS juni-2006 USD 4 345 000 1 565 000 36 % 0 -45 % 0 % Corporate management: RS Platou Finans AS TC rate per day per vessel Platou Shipinvest I DIS okt-2007 USD 47 365 930 7 200 000 15 % N/A N/A N/A Disponent owner: Agder Ocean Shipping AS Commencement of Timecharter blue Mountain Tankers DIS feb-2007 USD 36 375 000 - 0 % N/A N/A N/A Procject price: USD 27 750 000 Expiry of Timecharter Saragol Tankers 1 DIS juni-2010 USD 17 737 500 1 854 000 10 % N/A N/A N/A Paid in capital: USD 0 Saragol Tankers 2 DIS des-2010 USD 18 812 500 1 586 500 8 % N/A N/A N/A Uncalled capital: Charterer SbS Torrent KS des-2005 NOK 31 975 000 33 700 000 105 % 435 000 17 % 21 % SbS Typhoon KS jan-2006 NOK 36 650 000 44 350 000 121 % 372 500 13 % 21 % Seminyak DIS sep-2008 USD 32 618 000 - 0 % 0 N/A N/A Sentosa Offshore DIS juli-2007 USD 8 300 000 6 365 000 77 % 111 750 16 % 18 % residUal valUe sensitivity on irr loW base high Singapore Offshore DIS aug-06 USD 7 850 000 6 570 000 84 % 80 750 14 % 17 % Singapore Supply DIS mars-12 USD 10 240 000 - 0 % 102 400 N/A N/A Residual value end CP: N/A N/A N/A Southern Chemical DIS juli-07 EUR 16 350 000 540 000 3 % 95 000 -11 % 24 % Estimated IRR: N/A N/A N/A Ullswater Subsea DIS mai-07 USD 12 820 000 7 438 400 58 % 141 500 11 % 18 % cashfloW 2013 2014e 2015e 2016e Operating revenue N/A N/A N/A N/A Operating expenses N/A N/A N/A N/A Net operating cashfl ow 0 0 0 0

Interest earned N/A N/A N/A N/A Interest expenses N/A N/A N/A N/A Drawdown / Repayment long term debt N/A N/A N/A N/A Net fi nancial items N/A N/A N/A N/A Net projected cash fl ow Estimated dividend N/A N/A N/A N/A

Project balance 01.07.2013 Cash N/A Implicit vessel value N/A Total assets N/A Outstanding debt N/A Short term payables N/A Sellers credit N/A Total outstanding debt N/A Estimated project value N/A

financing comments Mortgage: USD 21 600 000 The project was established with a bareboat contract to Eastwind Maritime Inc. The Charterer went bankrupt in balloon: USD 11 782 000 2009 and the vessels have since then been operating in the spot/short period market. Quarterly instalments: USD 1 - 25: 500.000 The project has been taken over by the mortgage bank. Term: 6 years Interest: 3 months LIbOR + margin

20 PROJECTS SUMMARy PROJECTS 21 ASIAN bULKERS DIS ATLANTIC GUARDIAN DIS

Key figUres (date of analysis: 01.07.2013) Project broker: Chris W. Svensson, Corporate Manager: Thomas Ødegård Key figUres (date of analysis: 01.07.2013) Project broker: Morten Astrup, Corporate Manager: Erik Kristian Andresen

Established: October 2007 Estimated share value per 1%: USD 0 Latent tax benefi t vessel pr 1%: N/A Established: January 2007 Estimated share value per 1%: USD 77 500 Latent tax liability vessel pr 1%: USD 15 700 Paid in capital: USD 48 000 000 Last reported sale per 1%: N/A Latent tax benefi t debt pr. 1%: N/A Paid in capital: USD 8 100 000 Last reported sale pr 1%: May 2013 USD 77 500 Latent tax liability debt pr. 1%: USD 2 900 Uncalled capital: USD 0 Estimated IRR buyer: N/A Uncalled capital: USD 7 000 000 Estimated IRR buyer: N/A Accumulated dividends: USD 0 Estimated IRR Seller: N/A Accumulated dividends: USD 4 100 000 Estimated IRR Seller: 6%

the vessels the vessels

vessel name: Mv Atlantic Guardian vessels name: Mv Svenner Mv Slettnes Mv Svinoy Type: Cable / Construction / Seismic vessel Type: Supramax bulk Carrier Supramax bulk Carrier Supramax bulk Carrier GRT / NRT: 7,172 / 2,151 DWT: 58 000 58 000 58 000 Speed: 13,5 yard: Dayang, China Dayang, China Dayang, China LDT: 17 495 built /delivered: January 2010 July 2010 August 2010 yard: van der Geissen-de Class: bv bv bv Noord, The Netherlands Flag: Marshall Island Marshall Island Marshall Island built: 2001 / 2006 Class: DNv commercial details Flag: Norway commercial details Corporate management: RS Platou Finans AS Slettnes og Svinoy Svenner Disponent owner: Scantank AS Commencement of CP: January 2013 January 2010 Corporate management: RS Platou Finans AS bareboat charter: 4 + 1 + 1 years Project price: USD 123 000 000 Expiry of CP: January 2014 3 months in advance Disponent owner: North Sea Shipping AS bareboat charterer: North Sea Invest AS Paid in capital: USD 45 850 000 TC rate per day year USD 8 000 Pool Project price: USD 42 880 000 Commencement of CP: March 2007 Uncalled capital: USD 2 150 000 TC charter: AS Klaveness Chartering bulkhandling Handymax AS Paid in capital: USD 8 100 000 Expiry of CP: March 2011 + 1 + 1 Uncalled capital: USD 7 000 000 residUal valUe sensitivity on irr loW base high bb rate: USD per day year 1: 14 300 USD per day year 2-4: 16 000

Residual value end CP: residUal valUe sensitivity on irr loW base high Estimated IRR: Residual value end CP: Estimated IRR: cashfloW 2012 2013e cashfloW 2012 01.07.2013 Operating revenue 8 936 000 8 017 000 Operating revenue 5 618 000 1 500 000 Operating expenses -5 848 000 -5 949 000 Operating expenses -95 000 -945 000 Net operating cashfl ow 3 088 000 2 068 000 Net operating cashfl ow 5 523 000 555 000

Interest earned 0 0 Interest earned 2 000 1 000 Interest expenses -2 323 000 -1 673 000 Interest expenses -467 000 -205 000 Drawdown/ Repayment long term debt -5 760 000 0 Drawdown/ Repayment long term debt -3 000 000 -250 000 Net fi nancial items -8 083 000 -1 673 000 Purchase / sale of vessel 0 0 Purchase / sale of vessel 0 0 Net fi nancial items -3 465 000 -454 000 Net Projected Cashfl ow -4 995 000 395 000 Net Projected Cashfl ow 2 058 000 101 000 Estimated dividend 0 0 Estimated dividend 0 0 Project balance 01.07.2013

Project balance 01.07.2013 Cash 2 464 000 Implicit vessel value 23 561 000 Cash balance 2 692 000 Total assets 26 025 000 Implicit vessel value 67 173 000 Outstanding debt 18 250 000 Total assets 69 865 000 Short term payables 25 000 Outstanding debt 69 840 000 Sellers credit 0 Short term payables 25 000 Total outstanding debt 18 275 000 Sellers credit 0 Estimated Project value 7 750 000 Total outstanding debt 69 865 000 Estimated project value 0 financing comments Mortgage: USD 32 000 000 The vessel has been redelivered from bb charter and is currently fi xed on TC to EMGS. balloon USD 20 750 000 financing comments Sellers Credit: USD 3 000 000 Mortgage: USD 86 100 000 Two vessels have been fi xed on 1 year TC to Klaveness from Jan 2013. The third vessel is operating in the Klave- Term: 4 years Sellers Credit: USD 0 ness Handymax pool. Quarterly instalments: USD 1 - 4: 500 000 balloon: USD 63 000 000 USD 5 - 16: 750 000 Term: 5 IInterest: 75% of the loan 5,00 % Semi-annually instalments USD 1 440 000 Fixed for the entire fi xed charter period (eksl. margin.) Interest: 100% fl oating presently at 2,28 % (included margin) 25% of the loan Floating Sellers Credit 2.00%

22 PROJECTS PROJECTS 23 bLUE MOUNTAIN TANKERS DIS bOvEy OFFSHORE LTD.

Key figUres (date of analysis: 01.07.2013) Project broker: Axel M. Aas, Corporate Manager: Eva Lise bjerke Key figUres (date of analysis: 01.07.2013) Project broker: Morten Astrup, Corporate Manager: benjamin Ryeng-Hansen

Established: February 2007 Estimated share value per 1%: N/A Latent tax benefi t vessel pr 1%: N/A Established: August 2007 / May 2008 Estimated share value per 1%: USD 263 500 Latent tax benefi t vessel pr 1%: N/A

Paid in capital: USD 36 375 000 Last reported sale per 1%: N/A Latent tax benefi t debt pr. 1%: N/A Paid in capital: USD 21 375 000 Last reported sale per 1%: N/A Latent tax benefi t debt pr. 1%: N/A Uncalled capital: USD 7 000 000 Estimated IRR buyer: N/A Uncalled capital: USD 0 Estimated IRR buyer: 28% Accumulated dividends: USD 0 Estimated IRR Seller: N/A Accumulated dividends: USD 17 550 000 Estimated IRR Seller: 15% the vessels the vessels

vessel names: Topaz Glory/Topaz Legend Topaz Jurong/Topaz Johor Lewek Lion/Lewek Leopard Lewek Lynx vessel name: Oceanic Indigo Oceanic Crimson Oceanic Coral Oceanic Cerise Oceanic Cyan Oceanic Cobalt Type: AHTS AHTS AHTS AHTS Type: IMOII /III product tankers IMOII /III product tankers IMOII /III product tankers IMOII /III product tankers IMOII /III product tankers IMOII /III product tankers bHP: 5 150 5 150 5 150 5 150 DWT: 11 000 13 000 13 000 13 000 13 000 13 000 Speed: 13 knots 13 knots 13 knots 13 knots Capacity (cbm): 13 450 13 450 13 450 13 450 13 450 yard: Funing Shipyard, China Funing Shipyard, China Jinlong Shipyard, China Jinlong Shipyard, China yard: Penglai bohai Shipyard Co. Ltd, China Jinse Co. Ltd,. Korea Jinse Co. Ltd,. Korea Jinse Co. Ltd,. Korea Jinse Co. Ltd,. Korea Jinse Co. Ltd,. Korea built: 2010 2010 2010/2011 2011 Delivery: April 2011 March 2008 April 08 May 2008 June 2008 July 2008 Class: AbS AbS AbS AbS Class: AbS AbS AbS AbS AbS AbS Flag: Marshall Islands Marshall Islands Marshall Islands Marshall Islands Flag: Liberia Liberia Liberia Liberia Liberia commercial details

commercial details Corporate management: RS Platou Finans AS Disponent owner: Adhart Shipping Pte Ltd and Juniper Marine Services Pte Ltd bb rate per day year USD 8 050 Corporate management: RS Platou Finans AS Project price: USD 85 300 000 bareboat charter: 7 years Disponent owner: Panoceanic bulk Carriers UK Paid in capital: USD 21 375 000 bareboat charterer: A company Guaranteed by Pan Gulf Group Project price: USD 120 800 000 Uncalled capital: USD 0 Commencement of CP: March 2008 + 2 months interval per vessel Paid in capital: USD 25 100 000 bb rate (average): USD 5 145 pd USD 5 145 pd USD 3 450 pd USD 3 450 pd Expiry of CP: year 2015 Uncalled capital: USD 12 000 000 bareboat charter: 7 years 7 years 5 years 5 years bareboat charterer: xT Shipping Ltd Team III Ltd EMAS Offshore Pte Ltd EMAS Offshore Pte Ltd Commencement of CP: 19.04.2010/29.03.2010 12.07.2010/19.08.2010 27.10.2010/24.01.2011 31.08.2011 residUal valUe sensitivity on irr loW base high Expiry of CP: 19.04.2017/29.03.2017 12.07.2017/19.08.2017 27.10.2015/24.01.2016 31.08.2016 Residual value end CP: Estimated IRR for buyer: residUal valUe sensitivity on irr loW base high Residual value end CP: 40 500 000 45 500 000 50 500 000 cashfloW 2013 2014e 2015e 2016e Estimated IRR: 14% 18% 21% Operating revenue N/A N/A N/A N/A Operating expenses N/A N/A N/A N/A cashfloW 2012 2013e 2014e 2015e 2016e Net operating cashfl ow N/A N/A N/A N/A Operating revenue 11 712 000 11 300 000 10 521 000 10 266 000 8 617 000 Interest earned N/A N/A N/A N/A Operating expenses -349 000 -350 000 -354 000 -357 000 -361 000 Interest expenses N/A N/A N/A N/A Net operating cashfl ow 11 363 000 10 950 000 10 167 000 9 909 000 8 256 000 Drawdown/ Repayment long term debt N/A N/A N/A N/A Net fi nancial items N/A N/A N/A N/A Interest earned 2 000 - - - - Net projected cash fl ow Interest expenses -3 487 000 -1 421 000 -1 261 000 -1 115 000 -742 000 Estimated dividend N/A N/A N/A N/A Drawdown/ Repayment long term debt -3 299 000 -10 583 000 -4 118 000 -8 622 000 -7 868 000 Net fi nancial items -6 784 000 -12 004 000 -5 379 000 -9 737 000 -8 610 000 Purchase/sale of vessel - 10 838 000,00 - 8 750 000 8 750 000 Project balance 01.07.2013 Net project cashfl ow 4 579 000 9 784 000 4 788 000 8 922 000 8 396 000 Estimated dividend 3 450 000 12 000 000 5 000 000 8 900 000 8 400 000 Cash N/A Implicit vessel value N/A Project balance 01.07.2013 Total assets N/A Cash 2 336 000 Outstanding debt N/A Implicit vessel value 63 020 000 Short term payables N/A Total assets 65 356 000 Sellers credit N/A Outstanding debt 38 906 000 Total outstanding debt N/A Short term payables 100 000 Estimated project value N/A Sellers credit - Total outstanding debt 39 006 000 Estimated project value 26 350 000

financing comments Jinlong 4 vsl Funing 4 vsl The Charterer has purchase options from after delivery to year 5 for the Jinlong vessels. Mortgage: USD 30 080 000 36 360 000 The Charterer has purchase options after year 7 for the Funing vessels. balloon: USD 18 016 000 20 424 000 In addition to gross bb rate Jinlong vessels: 50/50 profi t split on daily hire above 7 000 to be settled on a quarterly Term: 5 years 5 years basis. Quarterly instalments: USD 603 200 1-8: USD 900 000 All hire is being paid promptly. 9-20: USD 728 000 EMAS declared the purchase option for one of the vessels they have on charter in May 2013. Interest mortgage: Pre-del: Libor + 1.40% Libor + 1.50% Post-del: Libor + 3.00% Libor + 2.00%

24 PROJECTS PROJECTS 25 bUKIT TIMAH OFFSHORE DIS DONGGUAN CHEMICAL TANKERS DIS

Key figUres (date of analysis: 01.07.2013) Project broker: Chris W. Svensson, Corporate Manager: benjamin Ryeng-Hansen Key figUres (date of analysis: 01.07.2013) Project broker: Axel M. Aas, Corporate Manager: Kathrine A. Tåsåsen

Established: May 2008 Estimated share value per 1%: USD 295 500 Latent tax liability vessel pr 1%: USD 106 200 Established: December 2007 Estimated share value per 1%: USD 41 250 Latent tax liability vessel pr 1%: USD 4 000 Paid in capital: USD 29 269 250 Last reported sale per 1%: May 2013 251 000 Latent tax liability debt pr. 1%: USD 3 100 Paid in capital: USD 7 150 000 Last reported sale per 1%: May 2013 USD 36 122 Latent tax liability debt pr. 1%: USD 1 200 Uncalled capital: USD 0 Estimated IRR buyer: 17% Uncalled capital: USD 3 500 000 Estimated IRR buyer: 18% Accumulated dividends: USD 17 350 000 Estimated IRR Seller: 11% Accumulated dividends: USD 3 550 000 Estimated IRR Seller: 2%

the vessels the vessels

vessel name: Swiber Else-Marie Swiber Anne-Christine Swiber Mary-Ann vessel name: Toreach Pioneer Type: AHTS AHTS AHTS Type: Chemical Tanker IMO II bHP: 10 800 10 800 10 800 DWT: 8 200 Speed: 14 knots 14 knots 14 knots Speed: 12 knots yard: China China China yard: Zhejiang Haifeng built: 2009 2009 2010 Shipbuilding Co. Ltd, China Class: AbS AbS AbS built: 2008 Flag: Marshall Islands Marshall Islands Marshall Islands Class: CCS commercial details Flag: Marshall Islands Corporate management: RS Platou Finans AS commercial details Disponent owner: Scantank AS Project price: USD 125 269 250 Paid in capital: USD 29 269 250 Corporate management: RS Platou Finans AS bareboat charter: 8 years Uncalled capital: USD 0 Disponent owner: Atlantica Shipping AS bareboat charterer: Toreach Marine Pte Ltd guaranteed by Dongguan bb rate: USD 15 850 pd USD 15 850 pd USD 15 850 Project price: USD 15 324 000 Fenghai Ocean Shipping Co Ltd bareboat charter: 10 years 10 years 10 years Paid in capital: USD 7 150 000 Commencement of CP: 15.10.2008 bareboat charterer: Newcruz Offshore Marine Pte Ltd guaranteed by Swiber Holdings Ltd Uncalled capital: USD 3 500 000 Expiry of CP: 15.10.2016 Commencement of CP: 27.08.2009 06.01.2010 23.09.2010 bb rate: USD 5 250 pd Expiry of CP: 27.08.2019 06.01.2020 23.09.2020

residUal valUe sensitivity on irr loW base high residUal valUe sensitivity on irr loW base high

Residual value end CP: 50 000 000 60 000 000 70 000 000 Residual value end CP: 6 500 000 Estimated IRR: 15% 17% 20% Estimated IRR: 18%

cashfloW 2012 2013e 2014e 2015e 2016e cashfloW 2012 2013e 2014e 2015e 2016e

Operating revenue 17 403 000 17 356 000 17 356 000 17 356 000 17 403 000 Operating revenue 1 921 500 1 916 000 1 916 000 1 916 000 1 438 500 Operating expenses -265 000 -264 000 -267 000 -270 000 -272 000 Operating expenses -94 983 -97 000 -98 000 -100 000 -101 000 Net operating cashfl ow 17 138 000 17 092 000 17 089 000 17 086 000 17 131 000 Net operating cashfl ow 1 826 517 1 819 000 1 818 000 1 816 000 1 337 500

Interest earned 6 000 - 70 000 70 000 70 000 Interest earned 105 5 000 5 000 5 000 5 000 Interest expenses -6 916 000 -6 369 000 -5 803 000 -5 182 000 -4 537 000 Interest expenses -369 554 -260 000 -223 000 -185 000 -148 000 Drawdown/ Repayment long term debt -7 200 000 -7 200 000 -7 263 000 -7 700 000 -7 950 000 Drawdown/ Repayment long term debt -1 595 000 -720 000 -720 000 -720 000 -3 885 000 Net fi nancial items -14 110 000 -13 569 000 -12 996 000 -12 812 000 -12 417 000 Net fi nancial items -1 964 449 -975 000 -938 000 -900 000 -4 028 000 Net project cashfl ow 3 028 000 3 523 000 4 093 000 4 274 000 4 714 000 Sale of vessel 6 500 000 Estimated dividend 3 200 000 3 700 000 4 100 000 4 300 000 4 750 000 Net project cashfl ow -137 932 844 000 880 000 916 000 3 809 500 Estimated dividend 1 300 000 850 000 825 000 925 000 4 169 000 Project balance 01.07.2013 Project balance 01.07.2013 Cash 1 871 000 Implicit vessel value 107 479 000 Cash 425 000 Total assets 109 350 000 Implicit vessel value 9 460 000 Outstanding debt 72 600 000 Total assets 9 885 000 Short term payables 1 000 000 Outstanding debt 4 885 000 Sellers credit 6 000 000 Short term payables 75 000 Total outstanding debt 79 600 000 Sellers credit 800 000 Estimated project value 29 750 000 Total outstanding debt 5 760 000 Estimated project value 4 125 000

financing comments financing comments Mortgage: USD 96 000 000 The Charterer has purchase options from after year 5 to year 10. Mortgage: USD 9 000 000 The Charterer has purchase options from after year 3 to year 8. Sellers credit: USD 6 000 000 Latest valuation of the vessels was USD 33-34 million meaning that we are within the minimum value clause. Sellers credit: USD 800 000 Put option at the end of the charter party. balloon: USD 20 250 000 balloon: USD 3 240 000 The Charterer is paying bb hire in a timely manner. Term: 10 years Term: 8 years Quarterly instalments: 1-20: USD 1 800 000 Quarterly instalments: USD 180 000 21-40: USD 1 987 500 Interest mortgage 20.11.2008-04.05.2012: 6.54% including 1.5% margin Interest mortgage: Average of 8.3213% including 3.625% margin Interest mortgage 04.05.2012-04.11.2015: 5.16% including 1.5% margin Interest sellers credit: 3.50% Interest sellers credit: 0.00%

26 PROJECTS PROJECTS 27 EUROPEAN vENTURE DIS EUROPEAN vENTURE III DIS

Key figUres (date of analysis: 01.07.2013) Project broker: Chris W. Svensson, Corporate Manager: Thomas Ødegård Key figUres (date of analysis: 01.07.2013) Project broker: Chris W. Svensson, Corporate Manager: Thomas Ødegård

Established: April 2006 Estimated share value per 1 %: USD 156 000 Latent tax benefi t vessel pr 1%: USD 35 000 Established: July 2008 Estimated share value per 1%: USD 55 000 Latent tax benefi t vessel pr 1%: USD 0 Paid in capital USD 9 965 000 Last reported sale pr 1 %: USD 115 000 Latent tax benefi t debt pr. 1%: USD 3 000 Paid in equity: USD 5 720 000 Last reported sale pr 1%: USD 53 000 Latent tax benefi t debt pr. 1%: USD 0 Uncalled capital: USD 5 000 000 Estimated IRR buyer : 33% Uncalled capital: USD 1 000 000 Estimated IRR buyer: 45% Accumulated dividends: USD 8 090 000 Estimated IRR Seller : 17% Accumulated dividends: USD 5 885 000 Estimated IRR Seller: 23%

the vessels the vessels

vessels name: GSP Queen GSP King vessels name: GSP vega Type: PSv, 2 x 3978 bHP, FIFI1, DP2 PSv, 2 x 5440 bHP, FIFI1, DP2 Type: AHTS DWT: 1 800 2 000 bollard pull: 120 ton Speed: 14 knots 14 knots Speed: 14.5 knots yard: Jaya yard, Singapore Jaya yard, Singapore yard: bolsoenes, Molde, Singapore built: 2006 2005 built: 1983 Class: AbS AbS Class: DNv Flag: Gibraltar Gibraltar Flag: NIS

commercial details commercial details Corporate management: RS Platou Finans AS bb rate per day: August 2008 - August 2010 USD 15 100 Corporate management: RS Platou Finans AS Uncalled capital: USD 5 000 000 Disponent owner: Scantank AS August 2010 - August 2011 USD 11 500 Disponent owner: North Sea Shipping AS Commencement of CP: June 2006 Project price: USD 17 750 000 August 2011 - February 2012 USD 10 000 Project price: USD 46 325 000 Expiry of CP: June 2014 Paid in capital: USD 9 965 000 Paid in capital: USD 5 720 000 February 2012 - August 2013 USD 7 000 Uncalled capital: USD 5 000 000 bareboat charter: 5 years GSP Queen GSP King Commencement of CP: August 08 bareboat charterer: Grup Servicii Petroliere S.A. Expiry of CP: August 12 bb rate per day: year 1-5 USD 8 715 year 1-5 USD 9 330 year 6-8 USD 7 000 year 6-8 USD 8 000 residUal valUe sensitivity on irr base case bareboat charter: 8 years 8 years bareboat charterer: Grup Servicii Grup Servicii Residual value end CP: USD 6 000 000 Petroliere S.A. Petroliere S.A Estimated IRR: 45%

residUal valUe sensitivity on irr loW base cashfloW 2012e 2013e Residual value end CP: 25 000 000 29 500 000 Operating revenue 2 549 000 1 601 000 Estimated IRR: 2% 33% Operating expenses -89 000 -91 000 cashfloW 2012e 2013e 2014e Net operating cashfl ow 2 460 000 1 510 000

Operating revenue 4 373 000 5 824 000 2 600 000 Interest earned 0 0 Operating expenses -185 000 -181 000 -183 000 Interest expenses -205 000 -54 000 Net operating cashfl ow 4 188 000 5 643 000 2 417 000 Drawdown/ Repayment long term debt -2 000 000 -2 000 000 Net fi nancial items -2 205 000 -2 054 000 Interest earned 0 0 0 Purchase / sale of vessel 0 6 000 000 Interest expenses -397 000 -320 000 -151 000 Net Projected Cashfl ow 255 000 5 456 000 Drawdown/ Repayment long term debt -2 860 000 -2 860 000 -14 910 000 Estimated dividend 1 110 000 6 038 000 Net fi nancial items -3 257 000 -3 180 000 -15 061 000 Purchase / sale of vessel 0 0 29 500 000 Net Projected Cashfl ow 931 000 2 463 000 16 856 000 Project balance 01.07.2013 Estimated dividend 1 550 000 2 700 000 17 719 000 Cash balance 899 000

Project balance 01.07.2013 Implicit vessel value 5 761 000 Total assets 6 660 000 Cash balance 2 226 000 Outstanding debt 1 150 000 Implicit vessel value 29 784 000 Short term payables 10 000 Total assets 32 010 000 Sellers credit 0 Outstanding debt 16 340 000 Total outstanding debt 1 160 000 Shor term payables 20 000 Estimated project value 5 500 000 Sellers credit 0 Total outstanding debt 16 360 000 financing comments Estimated project value 15 650 000 Mortgage: USD 12 000 000 In April 2012 the project were renegotiated with the charterer and it was agreed to reduce the bareboat rate financing comments balloon: USD 2 250 000 from USD 10.000 pr. day to USD 7.000. It was also agreed to prolonge the bareboat charter period with one year Mortgage: USD 36 360 000 In April 2012 the project was renegotiated with the charterer and it was agreed to reduce the bareboat rate with Term: 5 years untill the 31st of August 2013. It was also agreed to reduce the purchase obligation from USD 6,550,000 to balloon: USD 13 480 000 25% for a period of 1 year (from February 2011 to February 2012). Quarterly instalments: USD 1-4 825 000 USD 6,000,000. Term: 8 years The bareboat charterer has purchase option at end of the period at USD 29.5 million enbloc. There is a 60/40 profi t USD 5-8 787 500 Semi-annually instalments: USD 1-16: 1 430 000 split between the market value and the charterer optional price. USD 9-12 325 000 IInterest: 100% fl oating presently at 1,60 % (Included margin) USD 13-20 250 000 Interest: 4.28% Fixed to 12.08.2013

28 PROJECTS PROJECTS 29 FEEDER CONTAINER vESSEL DIS GLObAL CAbLE II DIS

Key figUres (date of analysis: 01.07.2013) Project broker: Axel M. Aas, Corporate Manager: Eva Lise bjerke Key figUres (date of analysis: 01.07.2013) Project broker: Morten Astrup, Corporate Manager: Erik Kristian Andresen

Established: May 2013 Estimated share value per 1%: USD 43 000 Latent tax benefi t vessel pr 1%: -USD 10 100 Established: December 2006 Estimated share value per 1%: USD 114 000 Latent tax liability vessel pr 1%: USD 12 000 Paid in equity: USD 4 300 000 Last reported sale pr 1%: Latent tax benefi t debt pr. 1%: USD 0 Paid in capital: USD 9 400 000 Last reported sale pr 1% May 2013 USD 107 500 Latent tax liability debt pr. 1%: USD 4 000 Uncalled capital: USD 0 Estimated IRR buyer: 24% Uncalled capital: USD 6 000 000 Estimated IRR buyer: 24% Accumulated dividends: USD 0 Estimated IRR Seller: 0% Accumulated dividends: USD 9 500 000 Estimated IRR Seller: 15%

the vessels the vessels

vessels name: Mv Credo vessels name: Wave Sentinel CS Sovereign Type: Container feeder vessel Type: Cable vessel Cable vessel DWT: 22 900 Max nominal cable load: 2 600 1 700 yard: Stocznia Szczecinska, Poland yard: Koninklijke Scheldgroep bv., The Netherlands van de Giessen de Noord, The Netherlands built: March 1996 built / (Rebuilt): 1995 / (1999) 1991 Class: GL, Germany SS/DD 02/14 Flag: UK UK Flag: Marshall Islands

commercial details commercial details Corporate management: RS Platou Finans AS Uncalled capital: USD 6 000 000 Corporate management: RS Platou Finans AS Expiry of TCP: September 2013-January 2014 Disponent owner: North Sea Shipping AS Commencement of CP: January 07 Disponent owner: Atlantica Shipping AS TC rate per day year: USD 6 900 Project price: USD 45 300 000 Expiry of CP: January 14 Project price: USD 4 300 000 Charterer: Sea Consortium Pte Ltd Paid in capital: USD 9 400 000 Paid in capital: USD 4 300 000 Wave Sentinel CS Sovereign Uncalled capital: USD 0 Commencement of Time Charter Party: 12 May 2013 bb rate per day in total per vessel: USD 7 000 - 1.5% USD 11 750 - 1.5% residUal valUe sensitivity on irr loW base high bareboat charter: 7 + 1 + 1 + 1 year 7 + 1 + 1 + 1 year bareboat charterer: Global Marine Services Ltd

Residual value end CP: 3 200 000 6 000 000 11 000 000 Estimated IRR: -5% 24% 50% residUal valUe sensitivity on irr loW base high

cashfloW 2013e 2014e 2015e 2016e Residual value end CP: 20 000 000 24 000 000 Estimated IRR: -12% 24% Operating revenue 1 546 980 2 639 195 3 222 400 1 235 000 Operating expenses -2 329 600 -2 186 787 -2 243 987 -823 710 cashfloW 2012e 2013e 2014e Net operating cashfl ow -782 620 452 408 978 413 411 290 Operating revenue 6 759 000 6 741 000 0

Operating expenses -145 000 -165 000 -83 000 Purchase of vessel -3 450 000 Net operating cashfl ow 6 614 000 6 576 000 -83 000 Sale of vessel 0 0 6 000 000

Interest earned 0 200 300 100 Interest earned 1 000 1 000 0 Interest expenses 0 0 0 0 Interest expenses -1 114 000 -929 000 -196 000 Paid in capital 4 300 000 0 0 0 Drawdown/ Repayment long term debt -3 500 000 -4 000 000 -11 750 000 Drawdown/ Repayment long term debt 0 0 0 0 Purchase / Sale of vessels 24 000 000 Net fi nancial items 4 300 000 200 300 100 Net fi nancial items -4 613 000 -4 928 000 12 054 000 Net projected cash fl ow 67 380 452 608 978 713 6 411 390 Net Projected Cashfl ow 2 001 000 1 648 000 11 971 000 Estimated dividend 0 -365 000 -895 000 -6 650 000 Estimated dividend 0 2 900 000 1 700 000 13 200 000

Project balance 01.07.2013 Project balance 01.07.2013

Cash 734 000 Cash 1 231 000 Implicit vessel value 3 666 000 Implicit vessel value 24 084 000 Total assets 4 400 000 Total assets 25 315 000 Outstanding debt 0 Outstanding debt 12 750 000 Short term payables 100 000 Short term payables 165 000 Sellers credit 0 Sellers credit 1 000 000 Total outstanding debt 100 000 Total outstanding debt 13 915 000 Estimated project value 4 300 000 Estimated Project value 11 400 000 financing comments financing comments Mortgage: USD 31 500 000 The project is running very well. values exceeds debt with good margin and hire is being paid on time. The cable layer market is improving and we see more interest in cable layer vessels. Mortgage fi nance: None The internal partnership, Feeder Container vessel DIS, was incorporated on 8 May 2013 with the purpose of balloon: USD 10 500 000 purchasing and operating Mv “Credo”, a 17 year old feeder container vessel . The vessel was taken over by the Sellers credit: USD 4 400 000 The Charterer is fi nancially stabile, with improved results compared to last year. company on 10 May 2013 and delivered to charterer on 12 May 2013 for a time charter period of 4-8 months. Term: 7 years Quarterly instalments: USD 1 - 28: 750 000 Interest: The interest rate is fi xed for the entire fi xed charter period 6. 67% (incl. margin) Interest on sellers credit 2.50%

30 PROJECTS PROJECTS 31 GOLDEN KAMSAR DIS INDUSTRIAL SHIPPING DIS

Key figUres (date of analysis: 01.07.2013) Project broker: Chris W. Svensson, Corporate Manager: Eva Lise bjerke Key figUres (date of analysis: 01.07.2013) Project broker: Axel M. Aas, Corporate Manager: Thomas Ødegård

Established: April 2008 Estimated share value per 1% USD 194 000 Latent tax benefi t vessel pr 1%: - USD 6 300 Established: May 2012 Estimated share value per 1 %: EUR 58 000 Latent tax benefi t vessel pr 1%: EUR 4 000 Paid in capital: USD 23 694 000 Last reported sale pr 1% May 2013 USD 156 250 Latent tax benefi t debt pr. 1%: - USD 1 250 Paid in capital: EUR 5 750 000 Last reported sale per 1%: N/A Latent tax benefi t debt pr. 1%: N/A Uncalled capital: USD 11 300 000 Estimated IRR buyer: 17% Uncalled capital: - Estimated IRR buyer: 24% Accumulated dividends: USD 0 Estimated IRR Seller: -5% Accumulated dividends: EUR 355 515 Estimated IRR Seller: 6%

the vessels the vessels

vessel name: Golden Eclipse vessel names: Mv Forza / Mv volante Mv Sonoro / Mv Lontano / Mv Distinto Mv brilliante Mv Risoluto Type: Kamsarmax bulk carrier Type: MPP Single-decker MPP Single-decker MPP Single-decker MPP Single-decker DWT: 79 600 DWT: 4 117 4 110 / 4 135 / 4 160 5 557 4 145 yard: Jinhaiwan Shipyard, PRC Speed: 13 knots 13 knots 13.5 knots 11 knots Delivery: April 2010 yard: Severnav S.A, Romania Severnav S.A, Romania Ferus Smith b.v Netherland bodewes volharding b.v Netherland Class: AbS built: 2000 2000 1997 1997 Flag: Hong Kong Class: GL GL GL GL Flag: Gibraltar Gibraltar Gibraltar Gibraltar commercial details commercial details Corporate management: RS Platou Finans AS Expiry of CP: April 2020 Disponent owner: Scantank AS bb rate per day year USD year 1-5 21,975 Corporate management: RS Platou Finans AS bb rate (fi xed not including profi t split): EUR 1 175 Project price: USD 57 500 000 year 5-10 16,284 Disponent owner: RS Platou Asset Management AS bareboat charter: 12 + 2 years Paid in capital: USD 22 494 000 bareboat charter: 10 year Project price: EUR 25 950 000 bareboat charterer (guaranteed by): TransAtlantic Short Sea bulk Ab Uncalled capital: USD 12 500 000 bareboat charterer: Golden Eclipse Inc. Paid in capital : EUR 5 750 000 Commencement of CP: 2012 Commencement of CP: April 2010 Uncalled capital: EUR 0 Expiry of CP: 2024

residUal valUe sensitivity on irr loW base high residUal valUe sensitivity on irr loW base high

Residual value end CP: 15 000 000 20 000 000 25 000 000 Residual value end CP: 5 000 000 Estimated IRR: 14% 17% 18% Estimated IRR: 24%

cashfloW 2012 2013e 2014e 2015e 2016e cashfloW 2012 2013e 2014e 2015e

Operating revenue 8 042 850 8 020 875 8 020 875 6 558 000 5 959 944 Operating revenue 1 464 000 3 002 000 3 002 000 3 002 000 Operating expenses -119 531 -95 000 -115 000 -116 000 -118 000 Operating expenses -846 000 -102 000 -104 000 -106 000 Net operating cashfl ow 7 923 319 7 925 875 7 905 875 6 442 000 5 841 944 Net operating cashfl ow 618 000 2 900 000 2 898 000 2 896 000

Purchase of vessel Interest earned 0 0 0 0 Interest expenses -201 000 -1 238 000 -1 153 000 -1 065 000 Interest earned 23 689 12 000 20 000 12 000 12 000 Drawdown/ Repayment long term debt 19 175 000 -1 300 000 -1 300 000 -1 325 000 Interest expenses -2 032 462 -1 652 188 -1 659 395 -495 000 -460 000 Net fi nancial items 18 974 000 -2 538 000 -2 453 000 -2 390 000 Paid in capital 1 200 000 0 0 0 0 Purchase/sale of vessel -24 950 000 0 0 0 Drawdown/ Repayment long term debt -6 250 000 -8 000 000 -3 000 000 -3 000 000 -3 000 000 Net project cashfl ow -5 358 000 362 000 445 000 506 000 Net fi nancial items -7 058 773 -9 640 188 -4 639 395 -3 483 000 -3 448 000 Estimated dividend 5 750 000 -554 000 -445 000 -506 000 Net projected cash fl ow 864 546 -1 714 313 3 266 480 2 959 000 2 393 944 Estimated dividend 0 0 0 -9 000 000 -5 000 000 Project balance (estimate) 01.07.2013

Cash 200 000 Project balance 01.07.2013 Implicit vessel value 25 150 000 Cash 2 151 000 Total assets 25 350 000 Implicit vessel value 35 579 000 Outstanding debt 18 525 000 Total assets 37 730 000 Short term payables 0 Outstanding debt 18 000 000 Sellers credit - Short term payables 330 000 Total outstanding debt 18 525 000 Sellers credit 0 Estimated project value 5 800 000 Total outstanding debt 18 330 000 Estimated project value 19 400 000 financing comments

1st. 2nd. bb rate of EUR 1 175 per day per vessel + profi t split element based on the vessels actual earnings. financing comments Mortgage: EUR 17 700 000 2 000 000 The Charterer has purchase options throughout the bb period that will generate an estimated IRR p.a. in the range Mortgage: USD 36 000 000 The vessel is performing a bb charter contract to Golden Ocean and is performing well with bb hire paid on time. balloon: EUR 11 000 000 - 20-30% p.a. depending on the profi t split earnings during the period. balloon: USD 21 500 000 Although the vessel’s value has dropped, the project is in compliance with the minimum value requirement from Term: 5 years 12 years Industrial Shipping DIS has an option throughout the bb period to sell any of the vessels in the market. Term: 4,5 years the bank. Quarterly instalments: EUR 1 - 12: EUR 325 000 1-20: EUR 0 bb period of 12 years + 2 years in owners option. Quarterly instalments: USD year 1-2: 875,000 13 - 20: EUR 350 000 21-36: EUR 50 000 year 3-5: 750,000 37-48: EUR 100 000 Interest: Interest mortgage: 6,50 % 7,00 % The interest rate is fi xed for the entire term of the loan (incl. margin) 6.55%

32 PROJECTS PROJECTS 33 MARINELINE CHEMICAL DIS MED ETHyLENE DIS

Key figUres (date of analysis: 01.07.2013) Project broker: Chris W. Svensson, Corporate Manager: Thomas Ødegård Key figUres (date of analysis: 01.07.2013) Project broker: Axel M. Aas, Corporate Manager: Eva Lise bjerke

Established: February 2008 Estimated share value per 1%: USD 0 Latent tax benefi t vessel pr 1%: USD 25 000 Established: May 2007 Estimated share value per 1%: USD 59 000 Latent tax liability vessel pr 1% USD 5 090 Paid in capital: USD 18 710 000 Last reported sale pr 1%: USD 126 800 Latent tax benefi t debt pr. 1%: N/A Paid in capital: USD 6 275 000 Last reported sale pr 1% ; oct 2007 USD 67 000 Latent tax liability debt pr 1% USD 100 Uncalled capital: USD 0 Estimated IRR buyer: N/A Uncalled capital: USD 4 500 000 Estimated IRR buyer: 25% Accumulated dividends: USD 0 Estimated IRR Seller: N/A Accumulated dividends: USD 4 880 000 Estimated IRR Seller: 9%

the vessels the vessels

vessels name: Royal Emerald Royal Crystal 7 Royal Aqua vessels name: Syn Mizar Syn Mira Type: Chemical Tankers IMO II Chemical Tankers IMO II Chemical Tankers IMO II Type: Ethylene / LPG carrier Ethylene / LPG carrier Dwt 13100 Dwt 13100 Dwt 13100 Dwt DWT: 4 290 4 290 Speed: 14 knots 14 knots 14 knots Capacity (cbm): 3 982 3 982 yard: South Korea South Korea South Korea yard: Fincantieri Fincantieri built: 2006 2007 2008 built: 1989 1990 Class: AbS AbS AbS Class: bv and Rina (dual classed) bv and Rina (dual classed) Flag: Panama Panama Panama Flag: Maltese Maltese

commercial details commercial details Paid in capital: USD 18 710 000 Corporate management: RS Platou Finans AS Corporate management: RS Platou Finans AS Uncalled capital: USD 4 500 000 Uncalled capital: USD 0 Disponent owner: Scantank AS Disponent owner: Pan Oceanic bulk Carriers UK Ltd. bb rate per day for both vessels: USD 13 500 Project price: USD 79 850 000 Project price: USD 27 875 000 bareboat charter: 7 years Royal Emerald Royal Crystal 7 Royal Aqua Paid in capital: USD 6 275 000 bareboat charterer: Synergas SRL

Commencement of CP: March 2008 March 2008 August 2008 Syn Mizar Syn Mira Expiry of CP: March 2014 March 2014 August 2014 bb rate per day year USD 6 500 6 250 6 500 Commencement of CP: September 2007 July 2007 bareboat charter: 6 years 6 years 6 years Expiry of CP: September 2014 July 2014 bareboat charterer: Hanjin Shipping Hanjin Shipping Hanjin Shipping

residUal valUe sensitivity on irr loW base high residUal valUe sensitivity on irr loW base high Residual value end CP: 4 000 000 6 000 000 8 000 000 Enbloc residual value end CP: N/A N/A N/A Estimated IRR: 0% 25% 47% Estimated IRR: N/A N/A N/A

cashfloW 2012e 2013e 2014e cashfloW 2012e 2013e 2014e Operating revenue 6 840 000 6 444 000 1 721 000 Operating revenue 4 916 000 4 903 000 3 171 000 Operating expenses -228 000 -202 000 -183 000 Operating expenses -132 000 -144 000 -146 000 Net operating cashfl ow 6 612 000 6 242 000 1 538 000 Net operating cashfl ow 4 784 000 4 759 000 3 025 000

Interest earned 0 0 0 Sale of vessels 6 000 000 Interest expenses -2 554 000 -2 360 000 -816 000 Interest earned 0 4 000 3 000 Drawdown/ Repayment long term debt -4 100 000 -4 100 000 -3 950 000 Interest expenses -482 000 -348 000 -166 000 Net fi nancial items -6 654 000 -6 460 000 -4 766 000 Drawdown/ Repayment long term debt -2 443 000 -2 443 000 -2 558 000 Purchase / sale of vessel 0 38 700 000 Net fi nancial items -2 925 000 -2 787 000 -2 721 000 Net Projected Cashfl ow -42 000 -218 000 35 472 000 Net projected cash fl ow 1 859 000 1 972 000 6 304 000 Estimated dividend 0 0 0 Estimated dividend -1 920 000 -1 960 000 -6 879 000 Project balance 01.07.2013 Project balance 01.07.2013 Cash balance 45 000 Implicit vessel value 41 405 000 Cash 554 000 Total assets 41 450 000 Implicit vessel value 9 195 000 Outstanding debt 41 350 000 Total assets 9 749 000 Short term payables 100 000 Outstanding debt 3 779 000 Sellers credit 0 Short term payables 70 000 Total outstanding debt 41 450 000 Sellers credit 0 Estimated project value 0 Total outstanding debt 3 849 000 Estimated project value 5 900 000 financing comments Mortgage A USD 20 250 000 The original bb charter has been cancelled due to miss-performance by the Charterer, Sekwang Shipping in Korea. financing comments Mortgage b USD 20 250 000 All three vessels have since then been fi xed on bb charter to Hanjin Shipping at a reduced rate. Mortgage: USD 21 600 000 The ethylene market has been negatively effected by the general downturn in the world economy. However, despite Mortgage C USD 21 000 000 The chemical tanker market is presently very low, with TC rates below USD 10,000 per day for these vessels. This balloon: USD 4 500 000 an operating loss, the Charterer has been paying full bareboat hire on time during the entire bareboat period. Sellers Credit: USD 0 has also reduced the ship values. Term: 7 In addition, both vessels have passed special survey at the Charterer’s cost. This has been estimated at about balloon: USD 37 800 000 The estimated share value depends very much on the residual value as there will be no dividends during the Quarterly instalments USD 1-28: USD 610,714 USD 2-3 million. Term: 8 remaining bareboat period. Interest: both vessels are performing various contracts around Italian waters. Quarterly instalments USD 1 025 000 As per 31/12/2009 85% of the loan is fi xed for the entire term of the loan (incl.margin) 6.40% Interest: 5.51% Floating rate 3 mths. LIbOR

34 PROJECTS PROJECTS 35 MOUNT FAbER KS MS NORDSTJERNEN DIS

Key figUres (date of analysis: 01.07.2013) Project broker: Morten Astrup, Corporate Manager: Erik Kristian Andresen Key figUres (date of analysis: 01.07.2013) Project broker: Axel M. Aas Corporate Manager: Erik Kristian Andresen

Established: April 2005 Estimated share value per 1%: USD 31 250 Latent tax liability vessel pr 1%: N/A Established: November 2012 Estimated share value per 1%: NOK 57 150 Latent tax benefi t vessel pr 1%: NOK 0 Paid in capital: USD 13 000 000 Last reported sale pr 1% ; Dec 2009 USD 75 000 Latent tax liability debt pr 1%: N/A Paid in capital: NOK 6 000 000 Last reported sale per 1%: NOK 0 Latent tax benefi t debt pr. 1%: NOK 0 Accumulated dividends: USA 21 119 750 Estimated IRR buyer: 34% Uncalled capital: USD 0 Estimated IRR buyer: 10% Uncalled capital: USD 0 Estimated IRR Seller: 23% Accumulated dividends: NOK 825 000 Estimated IRR Seller: 16%

the vessels the vessels

vessels name: Lewek Heron Lewek Swan Lewek Stork Lewek Snipe vessel name: MS Nordstjernen Type: AHTS, 8000 bHP , FIFI1 AHTS, 14,000 bHP, FIFI1 AHTS, 14,000 bHP, FIFI1 AHTS, 14,000 bHP, FIFI1 Type: Hurtigruteskip DWT: 1 800 2 300 2 300 2 300 DWT: 570 Speed: 14 knots 13 knots 13 knots 13 knots Speed: 17 yard: Cheoy Lee Shipyards Ltd Pan-Limited Shipyard Pan-Limited Shipyard Pan-Limited Shipyard yard: blohm & voss, Germany built: 2005 2006 2006 2006 built: 1956 Class: AbS + A1 LR + 100A1 LR + 100A1 LR + 100A1 Flag: Singapore Singapore Singapore Singapore commercial details commercial details Corporate management: RS Platou Finans AS bb rate MS Nordstjernen net per day: year 1-5 kr 3 500 Corporate management: RS Platou Finans AS Paid in capital: USD 13 325 000 Project price: NOK 6 000 000 5 years Disponent owner: Navigation Finance Corp Uncalled capital: USD 0 Paid in capital: NOK 6 000 000 26. November 2012 / 26. November 2017 Procject price: USD 80 900 000 Uncalled capital: NOK 0 bareboat charter: Indre Nordhordaland Dampbåtlag AS, guaranteed by vestland Marine Sp. z.o.o. Lewek Heron Lewek Swan Lewek Stork Lewek Snipe

bb rate pr day: USD 4 880 USD 8 045 USD 8 160 USD 8 185 residUal valUe sensitivity on irr base Commencement of CP: February 2006 October 2005 February 2006 May 2006 Residual value end CP: NOK 3 000 000 Expiry of CP: February 2014 October 2013 February 2014 May 2014 Estimated IRR for buyer: 10% bareboat charter: 8 years bareboat charterer: (a company nominated and guarenteed by Ezra Holdings PTE Ltd) Emas Offshore Pte Ltd cashfloW 2013 2014e 2015e 2016e 2017e residUal valUe sensitivity on irr base Operating revenue 1 284 500 1 277 500 1 281 000 1 277 500 945 000 Residual value end CP: 9 600 000 Operating expenses -184 000 -187 000 -191 000 -195 000 -199 000 Estimated IRR: 34% Net operating cashfl ow 1 100 500 1 090 500 1 090 000 1 082 500 746 000

cashfloW 2012 2013e Interest earned 0 0 0 0 0 Operating revenue 10 705 000 3 556 000 Interest expenses 0 0 0 0 0 Operating expenses -161 000 -370 000 Drawdown/ Repayment long term debt 0 0 0 0 0 Net operating cashfl ow 10 544 000 3 186 000 Purchase / Sale of vessel 0 0 0 0 0 Net fi nancial items 0 0 0 0 0 Interest earned 0 0 Net projected cashfl ow 1 100 500 1 090 500 1 090 000 1 082 500 746 000 Interest expenses -2 844 000 -2 345 000 Estimated dividend 1 365 000 1 090 000 1 090 000 1 085 000 3 771 767 Drawdown/ Repayment long term debt -5 200 000 -41 800 000 Net fi nancial items -8 044 000 -44 145 000 Purchase of vessel 43 600 000 Project balance 01.07.2013 Net project cashfl ow 2 500 000 2 641 000 Estimated dividend 1 875 000 5 141 000 Cash 26 000 Implicit vessel value 5 689 000 Project balance 01.07.2013 Total assets 5 715 000 Outstanding debt 0 Cash 4 897 000 Short term payables 0 Implicit vessel value 9 316 000 Charteres credit 0 Total assets 14 213 000 Total outstanding debt 0 Outstanding debt 10 847 000 Estimated Project value 5 715 000 Short term payables 241 000 Sellers Credit 0 Total outstanding debt 11 088 000 financing comments Estimated project value 3 125 000 financing comments The vessel is currently undergoing a full upgrade at a yard in Poland. The Charterer is paying hire on time and the vessel is expected to be back in Norway at the end of July. Mortgage: USD 73 000 000 The Owner and the Charterer have negotiated and agreed an early redelivery for three vessels, with one vessel Sellers Credit: USD 0 remaining untill the end of the bareboat period. balloon: USD 34 000 000 Term: 8 years Quarterly instalments: USD 1 300 000 Interest USD 6.21% The interest rate is fi xed for the entire fi xed charter period (incl.margin).

36 PROJECTS PROJECTS 37 NORTHERN SUPPLy DIS NORWEGIAN OFFSHORE II DIS

Key figUres (date of analysis: 01.07.2013) Project broker: Chris W. Svensson, Corporate Manager: Thomas Ødegård Key figUres (date of analysis: 01.07.2013) Project broker: Chris W. Svensson, Corporate Manager: Thomas Ødegård

Established: July 2011 Estimated share value per 1 %: USD 208 000 Latent tax benefi t vessel pr 1%: USD 0 Established: May 2007 Estimated share value per 1%: USD 329 250 Latent tax benefi t vessel pr 1%: USD 0 Paid in capital: USD 20 800 000 Last reported sale per 1 %: USD 208 000 Latent tax benefi t debt pr. 1%: USD 0 Paid in capital: USD 32 925 000 Last reported sale per 1%: N/A Latent tax benefi t debt pr. 1%: USD 0 Uncalled capital : USD 19 280 000 Estimated IRR buyer : N/A Uncalled capital: USD 950 000 Estimated IRR buyer: N/A Accumulated dividends: 0 Estimated IRR Seller : N/A Accumulated dividends: 0 Estimated IRR Seller: N/A

the vessels the vessels

vessels’ name: 2 x To be named vessels name: 2 x To be named Type: STx PSv 09 Clean Design Platform Supply vessels Type: AHTS, vS 4612 MK I, DWT: 4 600 2 x 12,240 bHP, DP I, FIFI I Speed: 14,5 knots DWT: 2 500 yard: ASL Shipyard Pte. Ltd Speed: 16 knots built: 2013 / 2014 yard: bharati Shipyard Ltd., India Class: DNv built: N/A Flagg: N/A Class: DNv

commercial details commercial details

Corporate management: RS Platou Finans AS Paid in capital: USD 20 800 000 Corporate management: RS Platou Finans AS Uncalled capital: USD 8 000 000 Disponent owner: Scantank AS Working capital / Stack up if delivered USD 2 480 000 Project price: USD 70 734 000 bareboat charter: N/A Project price (resale case): USD 88 000 000 Uncalled capital: USD 19 280 000 Paid in capital: USD 23 700 000 bareboat charterer: Asset play Working capital / Stack up if delivered USD 1 500 000 residUal valUe sensitivity on irr loW base high residUal valUe sensitivity on irr base Residual value end CP: Estimated IRR: Residual value end CP: N/A Estimated IRR: N/A cashfloW 2012 2013e cashfloW 2012e 2013e Operating revenue N/A N/A Operating expenses N/A N/A Operating revenue N/A N/A Net operating cashfl ow N/A N/A Operating expenses N/A N/A Net operating cashfl ow N/A N/A Interest earned N/A N/A Interest expenses N/A N/A Interest earned N/A N/A Drawdown/ Repayment long term debt N/A N/A Interest expenses N/A N/A Net fi nancial items N/A N/A Drawdown/ Repayment long term debt N/A N/A Net fi nancial items N/A N/A Estimated dividend N/A N/A Estimated dividend N/A N/A

Project balance 01.07.2013 Project balance 01.07.2013 Cash balance 889 000 Implicit vessel value 21 411 000 Cash balance 50 000 Total assets 22 300 000 Implicit vessel value 32 875 000 Outstanding debt 0 Total assets 32 925 000 Short term payables 0 Outstanding debt 0 Sellers credit 1 500 000 Short term payables 0 Total outstanding debt 1 500 000 Sellers credit 0 Estimated project value 20 800 000 Total outstanding debt 0 Estimated project value 32 925 000

financing comments financing comments The fi rst vessel has been launched at the dock and is expected to be ready for delivery Dec/Jan 2014. The loan was repaid in 2012. The newbuilding contract has been cancelled due to severe delays. The company is in an arbitration process with the yard.

38 PROJECTS PROJECTS 39 NORWEGIAN PRODUCT DIS OCEANLINK OFFSHORE III DIS

Key figUres (date of analysis: 01.07.2013) Project broker: Chris W. Svensson Corporate Manager: Erik Kristian Andresen Key figUres (date of analysis: 01.07.2013) Project broker: Axel M. Aas, Corporate Manager: Erik Kristian Andresen

Established: November 2006 Estimated share value per 1%: USD 87 500 Latent tax liability vessel pr 1%: USD 4 700 Established: October 2006 Estimated share value per 1%: USD 13 500 Latent tax liability vessel pr 1%: USD 0 Paid in capital: USD 10 115 000 Last reported sale per 1% November 2008: USD 73 000 Latent tax liability debt pr. 1%: USD 1 000 Paid in capital: USD 5 200 000 Last reported sale per 1% june 2008: USD 45 750 Latent tax liability debt pr. 1%: USD 0 Uncalled capital: USD 6 500 000 Estimated IRR buyer: 22% Uncalled capital: USD 5 950 000 Estimated IRR buyer: 25% Accumulated dividends: USD 5 560 000 Estimated IRR Seller: 6% Accumulated dividends: USD 3 592 500 Estimated IRR Seller: -1%

the vessels the vessels

vessels name: Emily PG Lesley PG vessel name: Ramco Crusader (ex. Nobleman) Type: Product tanker, DH Product tanker, DH Type: AHTS, 13,040 bHP DWT: 6 249 6 249 DWT: 2150-2500 yard: Kværner Govan Shiopbuilders, UK Appledore Shipbuilders, UK Speed: 16 built / (Rebuilt): 1996 1998 yard: Flag: Isle of Man Isle of Man built: 1983 Class: Lloyds Register Lloyds Register commercial details commercial details

Corporate management: RS Platou Finans AS Expiry of CP: December 14 Corporate management: RS Platou Finans AS bareboat charter: 3.5 years Disponent owner: Seabulk AS bb rate per day in total for all vessels (net): USD 13 100 Project price: USD 28 535 000 vestland Marine Sp. z o.o. 1. November 2010 / 28. February 2014 Project price: USD 32 865 000 bareboat charter: 8 years Paid in capital: USD 5 200 000 Paid in capital: USD 7 265 000 bareboat charterer: Giles W. Pritchard-Gordon Tankers Ltd. Uncalled capital: USD 5 950 000 Uncalled capital: USD 6 500 000 bb rate Nobleman net per day: year 1 USD 4 000 Commencement of CP: December 06 year 2 USD 4 500 year 3 UDD 5 000 residUal valUe sensitivity on irr loW base high residUal valUe sensitivity on irr base Residual value end CP: 9 000 000 10 750 000 12 000 000 Estimated IRR for buyer: 10% 22% 31% Residual value end CP: 1 550 000 Estimated IRR for buyer: 25% cashfloW 2012 2013e 2014e Operating revenue 4 794 000 4 781 000 4 375 000 cashfloW 2012 2013e 2014e Operating expenses -144 000 -128 000 -123 000 Operating revenue 1 472 000 1 787 000 548 000 Net operating cashfl ow 4 650 000 4 653 000 4 252 000 Operating expenses -61 000 -47 000 -9 000 Net operating cashfl ow 1 411 000 1 740 000 539 000 Interest earned 0 0 0 Interest expenses -682 000 -566 000 -408 000 Interest earned 0 0 0 Drawdown/ Repayment long term debt -2 250 000 -2 250 000 -4 150 000 Interest expenses -52 000 0 0 Purchase / Sale of vessels 10 750 000 Drawdown/ Repayment long term debt -285 000 0 0 Net fi nancial items -2 932 000 -2 816 000 6 192 000 Purchase / Sale of vessel 0 0 0 Net Projected cashfl ow 1 718 000 1 837 000 10 444 000 Net fi nancial items -337 000 0 0 Estimated dividend 2 000 000 2 000 000 11 844 000 Net projected cashfl ow 1 074 000 1 740 000 539 000 Estimated dividend 900 000 1 823 000 1 823 000 Project balance 01.07.2013 Cash 449 000 Project balance 01.07.2013 Implicit vessel value 13 576 000 Cash 71 000 Total assets 14 025 000 Implicit vessel value 1 279 000 Outstanding debt 5 275 000 Total assets 1 350 000 Short term payables 0 Outstanding debt 0 Total outstanding debt 5 275 000 Short term payables 0 Estimated Project value 8 750 000 Charteres credit 0 Total outstanding debt 0 financing comments Estimated Project value 1 350 000 Mortgage: USD 25 600 000 As a result of lower ship values, we have had to call upon some of the uncalled capital in 2010. financing comments balloon: USD 7 600 000 The project is otherwise running very well. The Charterer is fi nancially strong, and hire is being paid on time. Sellers credit: USD 0 Outstanding mortgage loan of USD 0 as per 31.12.2012 was fully repaid per March 2012. Term: 8 years The vessel is performing a TC contract to Petrobras and the bareboat charterer is paying hire on time. Semi-annual instalments: USD 1 - 16: 1 125 000 Interest: 90% of the loan 6.05% Fixed for the entire fi xed charter period (incl. margin.) 10% of the loan Floating

40 PROJECTS PROJECTS 41 OCTAvIAN bULKER DIS ORCHARD OFFSHORE DIS

Key figUres (date of analysis: 01.07.2013) Project broker: Chris W. Svensson, Corporate Manager: Thomas Ødegård Key figUres (date of analysis: 01.07.2013) Project broker: Chris W. Svensson, Corporate Manager: benjamin Ryeng-Hansen

Established: September 2010 Estimated share value per 1%: USD 52 500 Latent tax benefi t vessel pr 1%: USD 0 Established: March 2007 Estimated share value per 1%: USD 81 750 Latent tax liability vessel pr 1%: USD 34 800 Paid in capital: USD 16 000 000 Last reported sale per 1%: N/A Latent tax benefi t debt pr 1%: USD 1 000 Paid in capital: USD 7 800 000 Last reported sale per 1%: N/A Latent tax liability debt pr. 1%: USD 2 500 Uncalled capital: USD 0 Estimated IRR buyer: 17% Uncalled capital: USD 2 125 000 Estimated IRR buyer: 18% Accumulated dividends: USD 500 000 Estimated IRR Seller: -31% Accumulated dividends: USD 6 850 000 Estimated IRR Seller: 17%

the vessels the vessels

vessels name: Mv Skomvaer vessel name: Swiber Navigator Swiber Explorer Swiber Ada Swiber Torunn Type: Supramax bulk Carrier Type: AHT AHT AHTS AHTS DWT: 58 000 bHP: 4 000 4 000 5 000 5 000 yard: Dayang, China Speed: 13.5 knots 13.5 knots 13.5 knots 13.5 knots Delivered: September 2010 yard: Malaysia / China Malaysia / China Malaysia / China Malaysia / China Class: bv1 built: 2008 2008 2008 2008 Flag: Marshall Island Class: AbS AbS bv bv Flag: Singapore Singapore Singapore Singapore commercial details commercial details Corporate management: RS Platou Finans AS Commencement of CP: September 2010 Disponent owner: Scantank AS Expiry of CP: September 2015 Corporate management: RS Platou Finans AS Paid in capital: USD 7 800 000 Project price: USD 36 000 000 TC rate per day year : USD 15 500 Disponent owner: Scantank AS Uncalled capital: USD 2 125 000 Paid in capital: USD 16 000 000 TC charter: Hanjin Shipping Co. Ltd. Project price: USD 43 800 000 Uncalled capital: USD 0 Swiber Navigator Swiber Explorer Swiber Ada Swiber Torunn residUal valUe sensitivity on irr loW base high bb rate: USD 3 150 pd USD 3 150 pd USD 4 950 pd USD 4 950 pd Residual value end CP: 17 500 000 20 000 000 25 000 000 bareboat charter: 8 years 8 years 8 years 8 years Estimated IRR: 0% 16% 43% bareboat charterer: Swiber Offshore Marine Pte Ltd guaranteed by Swiber Holdings Ltd Commencement of CP: January 2008 February 2008 October 2008 December 2008 cashfloW 2012 2013e 2014e 2015e Expiry of CP: January 2016 February 2016 October 2016 December 2016

Operating revenue 5 694 000 5 601 000 5 601 000 4 176 000 residUal valUe sensitivity on irr loW base high Operating expenses -2 025 000 -1 960 000 -2 009 000 -1 524 000 Administration expenses -174 000 -180 000 -182 000 -184 000 Residual value end CP: 20 000 000 23 500 000 26 000 000 Extraordinary costs 0 0 0 0 Estimated IRR: 4% 18% 26% Net operating cashfl ow 3 495 000 3 461 000 3 410 000 2 468 000 cashfloW 2012 2013e 2014e 2015e 2016e Interest earned 0 0 0 0 Operating revenue 5 929 000 5 913 000 5 913 000 5 913 000 3 293 000 Interest expenses -739 000 -654 000 -556 000 -384 000 Operating expenses -223 000 -225 000 -227 000 -229 000 -232 000 Paid in capital 0 0 0 0 Net operating cashfl ow 5 706 000 5 688 000 5 686 000 5 684 000 3 061 000 Purchase of vessel / Sale of vessel 0 0 0 20 000 000 Drawdown/ Repayment long term debt -1 800 000 -1 800 000 -1 800 000 -14 350 000 Interest earned 1 000 - 30 000 30 000 30 000 Net fi nancial items -2 539 000 -2 454 000 -2 356 000 5 266 000 Interest expenses -1 530 000 -1 431 000 -1 328 000 -1 227 000 -781 000 Net Projected Cashfl ow 956 000 1 007 000 1 054 000 7 734 000 Drawdown/ Repayment long term debt -2 268 000 -2 268 000 -2 268 000 -5 458 000 -16 494 000 Estimated dividend -500 000 - - - Net fi nancial items -3 797 000 -3 699 000 -3 566 000 -6 655 000 -17 245 000 Sale of vessel - - - 4250000 19 250 000

Net project cashfl ow 1 909 000 1 989 000 2 120 000 3 279 000 5 066 000 Project balance 01.07.2013 Estimated dividend 1 950 000 2 050 000 2 150 000 2 600 000 6 538 000 Cash 1 725 000

Implicit vessel value 37 077 735 Project balance 01.07.2013 Total assets 38 802 735 Cash 841 000 Outstanding debt 17 050 000 Implicit vessel value 32 938 000 Short term payables 10 000 Total assets 33 779 000 Sellers credit 0 Outstanding debt 23 354 000 Total outstanding debt 17 060 000 Short term payables 250 000 Estimated project value 5 250 000 Sellers credit 2 000 000 Total outstanding debt 25 604 000 financing comments Estimated project value 8 175 000

Mortgage: USD 22 000 000 The vessel is fi xed on a 5 year TC to Hanjin Shipping in Korea. Throughout the time charter period, the vessel financing comments balloon: USD 13 000 000 is fi xed on a fl oor rate of USD 15,500 per day and a ceiling rate of USD 18,500 per day. The daily running costs Mortgage: USD 34 000 000 The Charterer has purchase options from after year 5 to year 10 for Swiber Navigator and Swiber Explorer. Term: 5 years amounted to USD 4,700 per day in 2012 which is according to budget. Sellers Credit: USD 2 000 000 Quarterly instalments USD 450 000 After completion of year 3 of the TC, the owner has the option to sell the vessel at any time and any circumstances balloon: USD 15 856 000 and thereby cancel the TC. Term: 8 years Interest: 70% of the loan fi xed for 3 years 3.97% Semi-annually instalments USD 1 134 000 30 % of the loan fl oating presently 3,28 % Interest mortgage: Average of 5.7424% including 1.00% margin Margin 3,00 % Interest sellers credit: 3.50%

42 PROJECTS PROJECTS 43 PANDA CHEMICAL OIL DIS RAFFLES OFFSHORE DIS

Key figUres (date of analysis: 01.07.2013) Project broker: Chris W. Svensson, Corporate Manager: Thomas Ødegård Key figUres (date of analysis: 01.07.2013) Project broker: Chris W. Svensson, Corporate Manager: benjamin Ryeng-Hansen

Established: July 2006 Estimated share value per 1%: USD 0 Latent tax liability vessel pr 1%: USD 0 Established: March 2007 Estimated share value per 1%: Latent tax liability vessel pr 1%:

Paid in capital: USD 5 845 000 Last reported sale per 1% (October 2007): USD 48.500 Latent tax liability debt pr 1%: USD 2 000 Paid in capital: USD 12 445 000 Last reported sale per 1%: March 2012 Latent tax liability debt pr. 1%: Uncalled capital: USD 0 Estimated IRR buyer: Uncalled capital: USD 4 500 000 Estimated IRR buyer: Accumulated dividends: USD 1 565 000 Estimated IRR Seller: -100% Accumulated dividends: USD 27 025 000 Estimated IRR Seller:

the vessels the vessels

vessel name: Panda PG vessels name: Swiber Conquest Type: Oil / Chemical Tanker Type: Pipelay DWT: 6 725 LOA: 108 m Capacity (cbm): 7 436 Pax: 280 yard: Sedef Shipyard / Istanbul yard: Malaysia / China built: 2004 Delivery: 2007 Class: bueau veritas Class: bv Flag: Isle of Man Flag: Panama

commercial details commercial details bareboat charter: 7 years Corporate management: RS Platou Finans AS Corporate management: RS Platou Finans AS bareboat charter: 10 years bareboat charterer: Giles W. Pritchard-Gordon Tankers Disponent owner: Partrederiet Eliza PG Disponent owner: North Sea Shipping AS bareboat charterer: Swiber Offshore Marine Pte Ltd guaranteed by Swiber Holdings Ltd LtdCommencement of CP: October 2006 Project price: USD 19 545 000 Project price: USD 45 945 000 Commencement of CP: 26 September 2007 Expiry of CP: October 2013 Paid in capital: USD 5 845 000 Paid in capital: USD 12 445 000 Expiry of CP: 26 September 2017

Uncalled capital: USD 0 Uncalled capital: USD 4 500 000 bb rate: year 1 - 3: USD per day: 7 800 bb rate: USD 15 850 pd less 1.25% year 4 - 5: USD per day: 7 600 year 6 - 8: USD per day: 1 000 residUal valUe sensitivity on irr loW base high

residUal valUe sensitivity on irr loW base high Residual value end CP: Estimated IRR for buyer: Residual value end CP: sold Estimated IRR for buyer: cashfloW 2012 2013e 2014e 2015e 2016e

cashfloW 2012e 2013e Operating revenue Operating expenses Operating revenue 365 000 277 000 Net operating cashfl ow Operating expenses -114 000 -100 000

Net operating cashfl ow 251 000 177 000 Interest earned Interest expenses Interest earned 0 0 Drawdown/ Repayment long term debt Interest expenses -256 000 -271 000 Net fi nancial items Drawdown/ Repayment long term debt 0 -5 955 000 Net project cashfl ow Purchase / Sale of vessel 0 5 688 000 Estimated dividend Net fi nancial items -256 000 -538 000 Net project cash fl ow -5 000 715 000 Estimated dividend 0 0 Project balance 01.07.2013

Project balance 01.07.2013 Cash Implicit vessel value Cash 356 000 Total assets Implicit vessel value 11 192 753 Outstanding debt Total assets 11 548 753 Short term payables Outstanding debt 5 955 000 Sellers credit Short-term payables 20 000 Total outstanding debt Sellers Credit 0 Estimated project value Total outstanding debt 5 975 000 Estimated project value 0 financing comments

financing comments Mortgage: USD 31 500 000 The charter has declared the purchase option. Sellers credit: USD 2 000 000 Mortgage: USD 15 200 000 The vessel is still trading between the islands in the bermuda area with refi ned products. balloon: USD 9 000 000 Sellers Credit: USD 0 The vessel is well kept and in good condition. Term: 10 years Term: 7 years There has been no signs of delay in payment of hire. Semi-annual instalments: USD 1 350 000/900 000 Semi-annual instalments: USD 0 The drop in value experienced in light of the fi nancial crisis has caused some challenge with regards to the Interest mortgage: Average of 5.96% including 1.10% margin ballon payment: USD 5 955 000 minimum value requirement. Interest sellers credit: 3.50% Interest: 100% fl oating 3.94% (incl. margin) The bareboat contract will end after this summer and the disponent owner is currently checking the market for sale or new employment of the vessel.

44 PROJECTS PROJECTS 45 RTS PANAMAx DIS SARAGOL TANKERS 1 DIS

Key figUres (date of analysis: 01.07.2013) Project broker: Axel M. Aas, Corporate Manager: Erik Kristian Andresen Key figUres (date of analysis: 01.07.2013) Project broker: Chris W. Svensson, Coporate Manager: Thomas Ødegård

Established: April 2007 Estimated share value per 1%: USD 0 Latent tax liability vessel pr 1%: USD 5 500 Established: July 2010 Estimated share value per 1% Latent tax benefi t vessel pr 1%: Paid in capital: USD 4 650 000 Last reported sale per 1% may 2009: USD 40 000 Latent tax liability debt pr. 1%: USD 1 300 Paid in capital USD 17 737 500 Last reported sale pr 1% Latent tax benefi t debt pr. 1%: Uncalled capital: USD 0 Estimated IRR buyer: N/A Uncalled capital: USD 0 Estimated IRR buyer: Accumulated dividends: USD 3 050 000 Estimated IRR Seller: -15% Accumulated dividends: USD 1 854 000 Estimated IRR Seller:

the vessels the vessels

vessels name: Endeavour ( ex. RTS Pioneer) vessels name: Mv Luengo Type: Panamax bulk carrier Type: LR Product Tanker DWT: 71 319 DWT: Speed: 14 knots Speed: yard: Namura Zosensho yard: New Century Shipbuilding Co in China built: 1996 built: 2007 Class: LR Class: AbS Flag: UK Flag: The republic of Liberia

commercial details commercial details

Corporate management: RS Platou Finans AS Corporate management: RS Platou Finans AS bb rate per day: First year USD 16.500 less 2,50% Disponent owner: Atlantica Shipping AS Project price: USD 47 000 000 Jul 2011 - Nov 2011 USD 16.000 less 2,50% Project price: USD 24 650 000 Paid in capital: USD 17 737 500 Thereafter USD 22.000 less 2,50% Paid in capital: USD 4 650 000 Uncalled capital: USD 0 bareboat charter: 5 years Uncalled capital: USD 0 Commencement of CP: July 2010 bareboat charterer: Sonangol Shipping Angola (Luanda) LTDA Expiry of CP: July 2015

residUal valUe sensitivity on irr loW base high residUal valUe sensitivity on irr loW base high

Residual value end CP: Residual value end CP: Estimated IRR: Estimated IRR for buyer:

cashfloW 2012 2013e cashfloW 2012 2013e 2014e 2015e

Operating revenue 3 346 000 2 156 000 Operating revenue 7 851 000 7 829 000 7 829 000 3 882 000 Operating expenses -2 113 000 -2 055 000 Operating expenses -57 000 -69 000 -70 000 -72 000 Net operating cashfl ow 1 233 000 101 000 Net operating cashfl ow 7 794 000 7 760 000 7 759 000 3 810 000

Interest earned 0 0 Interest earned 0 0 0 0 Interest expenses -656 000 -495 000 Interest expenses -1 292 000 -1 222 000 -947 000 -588 000 Drawdown/ Repayment long term debt -900 000 0 Drawdown/ Repayment long term debt -5 500 000 -3 500 000 -3 500 000 -15 625 000 Purchase / Sale of vessel 0 0 Net fi nancial items -6 792 000 -4 722 000 -4 447 000 -16 213 000 Net fi nancial items -1 556 000 -495 000 Paid in capital by the investors 0 0 0 0 Net project cash fl ow -323 000 -394 000 Purchase / sale of vessel 0 0 0 25 000 000 Estimated dividend 0 0 Net Projected Cashfl ow 1 002 000 3 038 000 3 312 000 12 597 000 Estimated dividend 0 0 0 0

Project balance 01.07.2013 Project balance 01.07.2013

Cash 153 000 Cash balance 5 482 000 Implicit vessel value 11 447 000 Implicit vessel value 34 343 000 Total assets 11 600 000 Total assets 39 825 000 Outstanding debt 11 600 000 Outstanding debt 20 875 000 Short term payables 0 Short term payables 200 000 Total outstanding debt 11 600 000 Sellers credit 0 Estimated Project value 0 Total outstanding debt 21 075 000 Estimated project value 18 750 000

financing comments financing comments Mortgage: USD 20 000 000 The bareboat charterer, Rio Tinto Shipping redelivered the vessel one year prior to end of the charter party. Sellers Credit: USD 0 The vessel is currently trading in the spot market. Mortgage: USD 30 500 000 Project is running as planned. bb rate is being paid on time and values are in compliance with the loan agreement. balloon: USD 11 000 000 The bank has agreed to continue operating the vessel despite an outstanding loan that is well above the present balloon: USD 13 000 000 Term: 6 years value. Term: 5 years Semi-annually instalments USD 1 - 4: 750 000 Semi-annually instalments: USD 1-20: 875 000 5 - 24: 300 000 Interest: 100% of the loan 4,61% Interest: 6.535% Fixed tto the hole bareboat period (incl. margin). Comment: 75% of the loan is fi xed at 6.535% including margin

46 PROJECTS PROJECTS 47 SARAGOL TANKERS 2 DIS SbS TORRENT KS

Key figUres (date of analysis: 01.07.2013) Project broker: Chris W. Svensson, Corporate Manager: Eva Lise bjerke Key figUres (date of analysis: 01.07.2013) Project broker: Chris W. Svensson, Corporate Manager: Erik Kristian Andresen

Established: November 2010 Estimated share value per 1% Latent tax benefi t vessel pr 1%: Established: December 2005 Estimated share value per 1%: NOK 435 000 Latent tax liability vessel pr 1%: NOK 308 200

Paid in capital: USD 18 812 500 Last reported sale pr 1% Latent tax benefi t debt pr. 1%: Paid in capital: NOK 24 619 000 Last reported sale per 1%: May 2009 NOK 290 000 Latent tax liability debt pr. 1%: - Uncalled capital: USD 2 000 000 Estimated IRR buyer: Uncalled capital: NOK 10 000 000 Estimated IRR buyer: 21% Accumulated dividends: USD 1 586 500 Estimated IRR Seller: Accumulated dividends: NOK 33 700 000 Estimated IRR Seller: 17%

the vessels the vessels

vessel name: MT Mucua vessel name: SbS Torrent Type: Product & Crude Type: PSv, PSv, 2 x 2030 bkw, DWT: 114 000 vS 470 MK II yard: New Times Shipbuilding Co. Ltd., China DWT: 3 800 Delivery: October 2008 Speed: 14.5 knots Class: AbS yard: vyvorg yard, Russia Flag: Cyprus built: 2006 Class: DNv - 1A1 Flag: british commercial details

Corporate management: RS Platou Finans AS Expiry of CP: December 2015 commercial details Disponent owner: N/A bb rate per day year USD year 1: 17,800 Project price: USD 54 312 500 year 2-5: 17,500 Corporate management: RS Platou Finans AS bareboat charterer: SbS Marine Ltd Paid in capital: USD 18 812 500 bareboat charter: 5 year Disponent owner: Klaveness Marine Holding AS Commencement of CP: April 07 Uncalled capital: USD 2 000 000 bareboat charterer: Sonangol Shipping Angola (Luanda) Limitada Project price: NOK 145 175 000 Expiry of CP: October 14 Commencement of CP: December 2010 Paid in capital: NOK 31 975 000 Uncalled capital: NOK 10 000 000 bb rate: NOK 50.500 net p.d. residUal valUe sensitivity on irr loW base high bareboat charter: 7.5 years Residual value end CP: Estimated IRR for buyer: residUal valUe sensitivity on irr loW base high

Residual value end CP: 103 000 000 103 000 000 119 450 000 cashfloW 2012 2013e 2014e 2015e Estimated IRR for buyer: 21% 21% 51% Operating revenue 8 564 400 8 541 600 8 541 000 7 815 600 Operating expenses -61 600 -77 000 -78 000 -80 000 cashfloW Usd 2 012 2013e 2014e Net operating cashfl ow 8 502 800 8 464 600 8 463 000 7 735 600 Operating revenue 18 483 000 18 483 000 13 837 000 Sale of vessel 36 900 000 Operating expenses -595 000 -649 000 -658 000 Net operating cashfl ow 17 888 000 17 834 000 13 179 000 Interest earned 0 0 0 0 Interest expenses -1 275 948 -954 000 -1 003 000 -820 000 Interest earned 28 000 28 000 0 Paid in capital 0 0 0 0 Interest expenses -4 397 000 -4 116 000 -3 712 000 Drawdown/ Repayment long term debt -4 000 000 -4 000 000 -4 000 000 -19 500 000 Drawdown/ Repayment long term debt -7 100 000 -7 100 000 -67 050 000 Net fi nancial items -5 275 948 -4 954 000 -5 003 000 -20 320 000 Net fi nancial items -11 469 000 -11 188 000 -70 762 000 Net projected cash fl ow 3 226 852 3 510 600 3 460 000 24 315 600 Purchase / Sale of vessel 103 000 000 Estimated dividend -1 586 500 -3 275 500 -2 372 500 -28 880 000 Net project cashfl ow 6 419 000 6 646 000 45 417 000 Estimated dividend 6 400 000 6 750 000 37 800 000 Project balance 01.07.2011 Project balance 01.07.2013 Cash 4 986 000 Implicit vessel value 30 526 000 Cash 5 019 000 Total assets 35 512 000 Implicit vessel value 110 093 000 Outstanding debt 25 500 000 Total assets 115 112 000 Short term payables 40 000 Outstanding debt 70 600 000 Sellers credit 0 Short term payables 1 012 000 Total outstanding debt 25 540 000 Total outstanding debt 71 612 000 Estimated project value 0 Estimated Project value 43 500 000

financing comments financing comments

Mortgage: USD 35 500 000 Project is running as planned. bb rate is being paid on time and values are in compliance with the loan agreement. Mortgage: NOK 113 200 000 The Charterer has paid bb hire on time and the project has been in compliance with the loan agreement throughout balloon: USD 15 500 000 balloon: NOK 59 950 000 the bb period. Term: 5 years Term: 7.5 years The Charterer has a purchase option starting from end of year 3 until the end of the fi xed charter period. Quarterly instalments: USD 1 000 000 Semi-annually instalments NOK 1-15: 3 550 000 There is a 65/35 profi t split between the market value and the optional price. Interest: 5.31% The vessel’s present charterfree value is about NOK 150 mil. Interest: The interest rate is fi xed for the entire fi xed charter period The base case scenario assume the purchase option being declared (with no profi tsplit). Libor plus margin 3%

48 PROJECTS PROJECTS 49 SbS TyPHOON KS SEMINyAK DIS

Key figUres (date of analysis: 01.07.2013) Project broker: Chris W. Svensson, Corporate Manager: Erik Kristian Andresen Key figUres (date of analysis: 01.07.2013) Project broker: Axel M. Aas, Corporate Manager: benjamin Ryeng-Hansen

Established: January 2006 Estimated share value per 1%: NOK 372 500 Latent tax liability vessel pr 1%: NOK 320 500 Established: September 2008 Estimated share value per 1%: - Latent tax benefi t vessel pr 1%: USD 23 700

Paid in capital: NOK 21 607 948 Last reported sale per 1%: April 2013 NOK 321 930 Latent tax liability debt pr. 1%: - Paid in capital: USD 32 618 000 Last reported sale per 1%: N/A Latent tax benefi t debt pr. 1%: USD (17 400) Uncalled capital: NOK 25 000 000 Estimated IRR buyer: 21% Uncalled capital: - Estimated IRR buyer: N/A Accumulated dividends: NOK 44 350 00 Estimated IRR Seller: 16% Accumulated dividends: - Estimated IRR Seller: N/A

the vessels the vessels

vessel name: SbS Typhoon vessel name: MT Sira MT Simoa Type: PSv, PSv, 2 x 2030 bkw, Type: Chemical Tanker Chemical Tanker vS 470 MK II, FIFI1, DP1 DWT: 19 998 40 354 DWT: 3 570 Speed: 15.1 knots 13.5 knots Speed: 14 knots yard: Japan Korea yard: Aker Aukra yard, Norway built: 2008 2004 built: 2006 Class: Nippon Kaiji Kyokai DNv Class: DNv - 1A1 Flag: Marshall Islands Marshall Islands Flag: NIS

commercial details commercial details Corporate management: RS Platou Finans AS Corporate management: RS Platou Finans AS bareboat charter: 7.5 years Disponent owner: Klaveness Marine Holding AS Disponent owner: Klaveness Marine Holding AS bareboat charterer: SbS Marine Ltd Project price: USD 105 750 000 Project price: NOK 166 245 000 Commencement of CP: November 2006 Paid in capital: USD 32 618 000 Paid in capital: NOK 36 650 000 Expiry of CP: May 2014 Uncalled capital: USD - Uncalled capital: NOK 25 000 000 bb rate: year 1-3: NOK per day: 60 000 net p.d. Pool: Navig8 Chemical pool Navig8 Handy pool year 4 - 5.5: NOK per day: 55 000 net p.d. Commencement of CP: Apr 2012 Apr 2012 year 5.5 - 7.5: NOK per day: 53 000 net p.d. Expiry of CP: 3 months in advance 3 months in advance residUal valUe sensitivity on irr loW base high residUal valUe sensitivity on irr loW base high Residual value end CP 111 000 000 111 000 000 124 650 000 Residual value end CP: Estimated IRR for buyer: 21% 21% 59% Estimated IRR:

cashfloW 2012 2013e 2014e cashfloW 2012 2013e Operating revenue 19 398 000 19 345 000 7 341 000 Operating revenue 7 900 000 8 500 000 Operating expenses -580 000 -642 000 -324 000 Operating expenses -4 100 000 -6 300 000 Net operating cashfl ow 18 818 000 18 703 000 7 017 000 Net operating cashfl ow 3 800 000 2 200 000

Interest earned 12 000 11 000 0 Interest earned - - Interest expenses -4 859 000 -4 347 000 -1 967 000 Interest expenses -1 600 000 -1 500 000 Drawdown/ Repayment long term debt -8 200 000 -8 200 000 -73 000 000 Drawdown/ Repayment long term debt -5 800 000 -2 250 000 Net fi nancial items -13 047 000 -12 536 000 -74 967 000 Net fi nancial items -7 400 000 -3 750 000 Purchase / Sale of vessel 111 000 000 Net project cashfl ow -3 600 000 -2 250 000 Net project cashfl ow 5 771 000 6 167 000 43 050 000 Estimated dividend - - Estimated dividend 5 850 000 6 100 000 43 453 000 Project balance 01.07.2013 Project balance 01.07.2013 Cash 5 200 000 Cash 417 000 Implicit vessel value 36 600 000 Implicit vessel value 77 220 000 Total assets 41 800 000 Total assets 77 637 000 Outstanding debt 41 000 000 Outstanding debt 77 100 000 Short term payables 800 000 Short term payables 537 000 Sellers credit - Total outstanding debt 77 637 000 Total outstanding debt 41 800 000 Estimated Project value 0 Estimated project value

financing comments financing comments Mortgage: USD 73 500 000 Mortgage: NOK 130 400 000 The Charterer has paid bb hire on time and the project has been in compliance with the loan agreement throughout Sellers Credit: USD 16 920 000 balloon: NOK 68 900 000 the bb period. both vessels are operating in the navig8 pool after the bareboat contract with bLT was cancelled. balloon: USD 14 000 000 Term: 7.5 years The Charterer has a purchase option starting from end of year 3 until the end of the fi xed charter period. The charter market is improving and both vessels are covering both operating and fi nancial costs at the moment. Term: USD 12 years Semi-annually instalments NOK 1-15: 4 100 000 There is a 65/35 profi t split between the market value and the optional price. Quarterly instalments USD 1 239 583 Interest: 90% of the loan 5.32% Fixed to April 2014 (incl. Margin) The vessel’s present charterfree value is about NOK 150 mil. Interest mortgage: Libor + 2.00% margin 10% of the loan Floating The base case scenario assume the purchase option being declared with no profi tsplit included. Interest sellers credit: 0.00%

50 PROJECTS PROJECTS 51 SENTOSA OFFSHORE DIS SINGAPORE OFFSHORE DIS

Key figUres (date of analysis: 01.07.2013) Project broker: Chris W. Svensson Corporate Manager: benjamin Ryeng-Hansen Key figUres (date of analysis: 01.07.2013) Project broker: Axel M. Aas, Corporate Manager: Erik Kristian Andresen

Established: July 2007 Estimated share value per 1%: USD 111 750 Latent tax liability vessel pr 1%: USD 41 984 Established: August 2006 Estimated share value per 1%: USD 80 750 Latent tax liability vessel pr 1%: USD 104 500

Paid in capital: USD 8 300 000 Last reported sale per 1%: May 201 3 101 000 Latent tax liability debt pr. 1%: USD (1 700) Paid in capital: USD 7 850 000 Last reported sale per 1%: April 2011 USD 97.500 Latent tax liability debt pr 1%: USD 0 Uncalled capital: USD - Estimated IRR buyer: 18% Uncalled capital: USD 0 Estimated IRR buyer: 17% Accumulated dividends: USD 6 365 000 Estimated IRR Seller: 16% Accumulated dividends: USD 6 570 000 Estimated IRR Seller: 14%

the vessels the vessels

vessel name: Swiber Gallant Swiber valiant Swiber Sandefjord Swiber Oslo vessel name: Lewek Trogan Lewek Petrel Lewek Penguin Lewek Plover Lewek Kea Type: AHT AHT AHTS AHTS Type: AHTS, 18,000 bHP, Fifi 1, DP2 AHTS, 12,000 bHP, Fifi 1, DP2 AHTS, 12,000 bHP, Fifi 1, DP2 AHTS, 12,000 bHP, Fifi 1, DP2 AHT, 8,000 bHP bHP: 5 000 5 000 5 000 5 000 DWT: 2800 2200 2200 2200 N/A Speed: 12 knots 12 knots 13.5 knots 13.5 knots Total bollard pull (tonnes): 200 130 130 130 100 yard: Malaysia / China Malaysia / China Malaysia / China Malaysia / China Delivery May 2008 June 2008 June 2007 November 2008 February 2008 built: 2007 2007 2009 2009 yard: Pan-United, Singapore Pan-United, Singapore Pan-United, Singapore Pan-United, Singapore Cheoy Lee, China Class: GL GL bv bv Class: American bureau of Shipping American bureau of Shipping American bureau of Shipping American bureau of Shipping Lloyd’s Register of Shipping Flag: Singapore Singapore Singapore Singapore commercial details

commercial details Corporate management: RS Platou Finans AS bb rate: 37 490 net p.d. Disponent owner: Klaveness Marine Holding AS bareboat charter: 8 years Corporate management: RS Platou Finans AS Paid in capital: USD 8 300 000 Project price: USD 129 100 000 bareboat charterer: Emas Offshore Pte. Ltd. Disponent owner: Scantank AS Uncalled capital: USD 0 Paid in capital: USD 7 850 000 Commencement of CP: June 2007 Project price: USD 46 350 000 bareboat charterer: Swiber Offshore Marine Pte Ltd guaranteed by Swiber Holdings Ltd Uncalled capital: USD 0 Expiry of CP: December 2016

Swiber Gallant Swiber valiant Swiber Sandefjord Swiber Oslo residUal valUe sensitivity on irr base bb rate: USD 3 650 pd USD 3 650 pd USD 5 050 pd USD 5 050 pd bareboat charter: 8 years 8 years 8 years 8 years Residual value end CP: 69 650 000 Commencement of CP: December 2007 December 2007 August 2009 November 2009 Estimated IRR for buyer: 17% Expiry of CP: December 2015 December 2015 August 2017 November 2017 cashfloW 2012 2013e residUal valUe sensitivity on irr loW base high Operating revenue 13 718 000 13 680 000 Residual value end CP: 22 000 000 26 000 000 30 000 000 Operating expenses -235 000 -275 000 Estimated IRR: 9% 18% 24% Net operating cashfl ow 13 483 000 13 405 000

cashfloW 2012 2013e 2014e 2015e 2016e Interest earned 0 1 000 Interest expenses -4 695 000 -4 395 000 Operating revenue 6 368 000 6 351 000 6 351 000 6 329 000 3 697 000 Drawdown/ Repayment long term debt -6 606 000 -6 606 000 Operating expenses -207 000 -218 000 -220 000 -222 000 -224 000 Net fi nancial items -11 301 000 -11 000 000 Net operating cashfl ow 6 161 000 6 133 000 6 131 000 6 107 000 3 473 000 Purchase of vessel Net project cashfl ow 2 182 000 2 405 000 Interest earned 1 000 - 20 000 20 000 20 000 Estimated dividend 1 106 000 2 475 000 Interest expenses -1 636 000 -1 551 000 -1 344 000 -1 178 000 -745 000 Drawdown/ Repayment long term debt -2 825 000 -2 825 000 -2 825 000 -7 825 000 -1 550 000 Net fi nancial items -4 460 000 -4 376 000 -4 149 000 -8 983 000 -2 275 000 Project balance 01.07.2013 Sale of vessel - - - 10 000 000 - Net project cashfl ow 1 701 000 1 757 000 1 982 000 7 124 000 1 198 000 Cash 3 066 000 Estimated dividend 1 675 000 1 800 000 2 000 000 7 125 000 1 200 000 Implicit vessel value 93 356 000 Total assets 96 422 000 Project balance 01.07.2013 Outstanding debt 67 794 000 Short-term payables 553 000 Cash 381 000 Sellers Credit 20 000 000 Implicit vessel value 36 263 000 Total outstanding debt 88 347 000 Total assets 36 644 000 Estimated project value 8 075 000 Outstanding debt 23 369 000 Short term payables 100 000 financing comments Sellers credit 2 000 000 Total outstanding debt 25 469 000 Mortgage: USD 100 000 000 The Charterer has paid bb hire on time and the project has been in compliance with the loan agreement throughout Estimated project value 11 175 000 Sellers credit: USD 20 000 000 the bb period. All the shares have been sold to Northern Shipping Fund primo 2011. Term: 8 years The Charterer has a purchase option at end of the fi xed charter period at about USD 70 million. In case the option financing comments Quarterly instalments: USD 1: 330 000 is not declared, the sellers credit of USD 20 mil will be deleted. The net exposure is therefore only USD 50 million. USD 2: 495 000 Mortgage: USD 36 000 000 The charterer is in the process of declaring the purchase option. The charterer is paying bb hire on time and the The vessel’s present charterfree value is about USD 130 mil. enbloc. Interest: 90% of the morgage is fi xed at 6,598% USD 3: 991 000 Sellers credit: USD 2 000 000 project is running well. USD 4-31 1 651 000 balloon: USD 13 400 000 Term: 8 years USD 32: 31 600 000 Quarterly instalments: USD 706 250 USD 33: 10 600 000 Interest mortgage: Average of 5.85% including 1.25% margin USD 34: 10 300 000 Interest sellers credit: 3.50%

52 PROJECTS PROJECTS 53 SINGAPORE SUPPLy DIS SOUTHERN CHEMICAL DIS

Key figUres (date of analysis: 01.07.2013) Project broker: Chris W. Svensson, Corporate Manager: Thomas Ødegård Key figUres (date of analysis: 01.07.2013) Project broker: Chris W. Svensson, Corporate Manager: Eva Lise bjerke

Established: March 2012 Estimated share value per 1 %: USD 102 400 Latent tax benefi t vessel pr 1%: USD 0 Established: July 2007 Estimated share value per 1%: EUR 95 000 Latent tax liability vessel pr 1%: - EUR 15 700

Paid in capital: USD 10 240 000 Last reported sale per 1 %: N/A Latent tax benefi t debt pr. 1%: USD 0 Paid in capital: EUR 16 350 000 Last reported sale per 1%: Jan.08 EUR 110 500 Latent tax benefi t debt pr. 1%:: - EUR 2 490 Uncalled capital : USD 8 580 000 Estimated IRR buyer : N/A Uncalled capital: EUR 5 000 000 Estimated IRR buyer: 24% Accumulated dividends: 0 Estimated IRR Seller : N/A Accumulated dividends: EUR 540 000 Estimated IRR Seller: -11%

the vessels the vessels

vessels’ name: 1 x To be named vessels name: Alicudi M Lipari M Gelso M Type: STx PSv 09 Clean Design Type: Chemical Tankers 40,083 Dwt 3,400 Dwt 18,000 Dwt DWT: 4 600 Speed: 15 knots 15 knots N/A Speed: 14,5 knots yard: Korea Italy Turkey yard: ASL Shipyard Pte. Ltd built: 2004 2002 2008 built: 2013 Class: Registro Ialiano Navale Registro Ialiano Navale Registro Ialiano Navale Class: DNv Flag: Italian Italian Italian Flagg: N/A commercial details

commercial details Corporate management: RS Platou Finans AS Paid in capital: EUR 10 350 000 Disponent owner: bergshav Management AS Uncalled capital: EUR 10 000 000 Corporate management: RS Platou Finans AS Paid in capital: USD 10 240 000 Project price: EUR 88 200 000 bareboat charterer: Augusta DUE SRL Disponent owner: Scantank AS Working capital / Stack up if delivered USD 1 200 000 Project price (resale case): USD 43 240 000 Uncalled capital: USD 8 580 000 Alicudi M Lipari M Gelso M

residUal valUe sensitivity on irr loW base high Commencement of CP: October 2007 October 2007 June 2008 Expiry of CP: October 2017 October 2017 N/A Residual value end CP: bb rate per day: EUR 9 750 EUR 4 950 EUR 7 800 Estimated IRR: bareboat charter: 10 years 10 years 10 years

cashfloW 2012 2013e residUal valUe sensitivity on irr loW base high

Operating revenue N/A N/A Residual value end CP: 20 000 000 23 600 000 30 000 000 Estimated IRR for buyer: 17% 24% 33% Operating expenses N/A N/A Net operating cashfl ow N/A N/A cashfloW 2012 2013e 2014e 2015e 2016e

Operating revenue 7 351 460 4 658 450 4 561 250 5 110 000 5 124 000 Interest earned N/A N/A Insurance settlement MT “Gelso” 32 150 000 Interest expenses N/A N/A Operating expenses -305 000 -200 000 -202 000 -204 000 -206 000 Drawdown/ Repayment long term debt N/A N/A Net operating cashfl ow 39 196 460 4 458 450 4 359 250 4 906 000 4 918 000 Net fi nancial items N/A N/A Paid in capital Interest earned 0 0 1 000 1 000 1 000 Estimated dividend N/A N/A Interest expenses -6 338 000 -1 779 000 -1 667 000 -1 498 000 -1 332 000 Drawdown/ Repayment long term debt -25 380 000 -5 590 000 -2 490 000 -2 490 000 -2 490 000 Project balance 01.07.2013 Net fi nancial items -31 718 000 -7 369 000 -4 156 000 -3 987 000 -3 821 000 Net projected cash fl ow 7 478 460 -2 910 550 203 250 919 000 1 097 000 Cash balance 597 000 Estimated dividend 0 -3 000 000 -1 000 000 -1 000 000 -1 000 000 Implicit vessel value 11 143 000 Total assets 11 740 000 Project balance 01.07.2011 Outstanding debt 0 Cash 8 617 000 Short term payables 0 Implicit vessel value 28 508 000 Sellers credit 1 500 000 Total assets 37 125 000 Total outstanding debt 1 500 000 Outstanding debt 18 555 000 Estimated project value 10 240 000 Short term payables 420 000 Sellers credit 8 650 000 financing comments Total outstanding debt 27 625 000 Estimated project value 9 500 000 financing comments Mortgage: EUR 69 200 000 MT “Gelso“ grounded March 2012. The vessel was declared constructive totale loss April 2012. Sellers Credit: EUR Free of interest 8 650 000 Insurance settlement was paid out October 2012. balloon: EUR 30 500 000 Term: EUR 10 Quarterly instalments EUR Alicudi M / Tranche 1 415 000 EUR Lipari M / Tranche 2 207 500 EUR Gelso M / Tranche 3 N/A Interest: The Alicudi and Lipari tranche fi xed for the entire term of the loan (incl. margin) 5,5125% EUR 44 400 000 The Gelso tranche fi xed for the entire term of the loan (incl. margin) N/A EUR 24 800 000

54 PROJECTS PROJECTS 55 ULLSWATER SUbSEA DIS vESTLAND MARINE PSv DIS

Key figUres (date of analysis: 01.07.2013) Project broker: Axel M. Aas, Corporate Manager: benjamin Ryeng-Hansen Key figUres (date of analysis: 01.07.2013) Project broker: Axel M. Aas, Corporate Manager: Kathrine A. Tåsåsen

Established: May 2007 Estimated share value per 1%: USD 141 500 Latent tax liability vessel pr 1%: USD 29 500 Established: January 2012 Estimated share value per 1%: USD - Latent tax liability vessel pr 1%: USD - Paid in capital: USD 12 820 000 Last reported sale per 1%: USD 100 000 Latent tax liability debt pr. 1%: USD 12 800 Paid in capital: USD 1 600 000 Last reported sale per 1%: Latent tax liability debt pr. 1%: USD - Uncalled capital: USD 5 000 000 Estimated IRR buyer: 18% Uncalled capital: USD - Estimated IRR buyer: Accumulated dividends: USD 7 438 400 Estimated IRR Seller: 11% Accumulated dividends: USD 2 170 000 Estimated IRR Seller:

the vessels the vessels

vessel name: SOv Ullswater vessel name: Ramco Queen Type: Dive support vessel, 2 x 2030kw, DP2 Type: PSv DWT: 2 500 DWT: 2 777 Speed: 12 knots Speed: 12 knots yard: Pan United Shipyard, Singapore yard: Drammen, Norway built 2009 built: 1982 Class: AbS Class: DNv Flag: Singapore Flag: bahamas

commercial details commercial details

Corporate management: RS Platou Finans AS bb rate: USD 17 055 pd less 2% Corporate management: RS Platou Finans AS bb rate: USD 1 000 pd fi rst 6 mths or until vessel is employed. Thereafter USD 2 000 pd + profi t split. Disponent owner: NFC Ullswater Subsea LLC bareboat charter: 10 years Disponent owner: - bareboat charter: 3 years Project price: USD 48 820 000 bareboat charterer: HM2 Pte Ltd guaranteed by Hallin Marine Subsea International PLC Project price: USD 1 600 000 bareboat charterer: Grand Ocean Shipping Ltd guaranteed by vestland Marine Sp. z.o.o. Paid in capital: USD 12 820 000 Commencement of CP: 05.02.2009 Paid in capital: USD 1 600 000 Commencement of CP: 24.01.2012 Uncalled capital: USD 5 000 000 Expiry of CP: 05.02.2019 Uncalled capital: USD 0 Expiry of CP: 24.01.2015

residUal valUe sensitivity on irr loW base high residUal valUe sensitivity on irr loW base high Residual value end CP: 23 000 000 28 000 000 33 000 000 Residual value end CP: Estimated IRR: 14% 18% 21% Estimated IRR: sold

cashfloW 2012 2013e 2014e 2015e 2016e cashfloW 2012e 2013e

Operating revenue 6 107 000 6 101 000 6 101 000 6 101 000 6 101 000 Operating revenue Operating expenses -112 000 -126 000 127 000 -129 000 -131 000 Operating expenses Net operating cashfl ow 5 995 000 5 975 000 6 228 000 5 972 000 5 970 000 Net operating cashfl ow

Interest earned - - 10 000 10 000 10 000 Purchase of vessel Interest expenses -2 149 000 -1 786 000 -1 608 000 -1 450 000 -1 292 000 Net project cashfl ow Drawdown/ Repayment long term debt -2 350 000 -2 350 000 -2 350 000 -2 350 000 -2 350 000 Estimated dividend Net fi nancial items -4 499 000 -4 136 000 -3 948 000 -3 790 000 -3 632 000 Net project cashfl ow 1 496 000 1 839 000 2 280 000 2 182 000 2 338 000 Estimated dividend 1 400 000 1 900 000 2 050 000 2 235 000 2 355 000 Project balance 01.07.2013

Project balance 01.07.2013 Cash Implicit vessel value Cash 1 138 000 Total assets Implicit vessel value 38 507 000 Outstanding debt Total assets 39 645 000 Short term payables Outstanding debt 25 425 000 Sellers credit Short term payables 70 000 Total outstanding debt Sellers credit 0 Estimated project value Total outstanding debt 25 495 000 Estimated project value 14 150 000 financing comments

financing comments 100% equity. Financial lease. Charterer has a purchase obligation at the end of the charter period to USD 1. Mortgage: USD 36 000 000 The Charterer has purchase options from after year 5 to year 10. The project accumulated a return to the investors 30% IRR, in NOK. balloon: USD 12 500 000 The Charterer is paying hire in a timely manner. Term: 10 years The Ullswater was valued to USD 53-55 million as per January 2013. Quarterly instalments: USD 587 500 Interest mortgage: 6.805% including 1.30% margin

56 PROJECTS PROJECTS 57 PLATOU SHIPINvEST I DIS

Asset Manager: Trond Hamre Project Portfolio, cont.

Established: October 2007 Project shares and diversifi cation

Project currency share in project invested per 1% invested share in portfolio sold

Agder Ocean Reefer KS USD 20,0% 81 685 1 633 690 3,3% Apr. 12 Agder Ocean Reefer II DIS USD 41,0% 69 195 2 837 000 5,7% Dec. 10 bergshav Chemical KS EUR 7,0% 89 105 623 735 1,6% Jan. 12 bukit Timah Offshore DIS USD 15,0% 292 700 4 390 500 8,8% Celine I ObO DIS USD 6,0% 15 000 90 000 0,2% Feb. 08 Cement Ship II DIS USD 7,0% 66 000 462 000 0,9% Jan. 13 Chem Cosmos DIS USD 20,0% 116 339 2 326 789 4,7% Mar. 10 Project Portfolio Chem Lily DIS USD 35,5% 133 816 4 750 475 9,5% Oct. 09 Dongguan Chemical Tankers DIS USD 5,0% 71 500 357 500 0,7% vessels and charters European venture DIS USD 8,0% 120 000 960 000 1,9% European venture II DIS USD 2,0% 40 150 80 300 0,2% Jun. 10 Project no of vessels segment built charterer type charter end of charter European venture III DIS USD 18,0% 57 200 1 029 600 2,1% Global Cable KS USD 5,5% 35 000 192 500 0,4% Jul. 10 bukit Timah Offshore DIS 3 AHTS-Offshore 2009/10 Swiber Holdings Ltd bareboat 2019/20 Global Cable II DIS USD 14,0% 103 786 1 453 000 2,9% Dongguan Chemical Tankers DIS 1 Chemical 2008 Dongguan Fenghai Ocean Shipping Co bareboat 2016 Golden Kamsar DIS USD 20,0% 231 000 4 620 000 9,2% European venture DIS 2 AHTS-Offshore 2005/06 Group Servicii Petroliere bareboat 2014 Industrial Shipping DIS EUR 10,0% 57 500 575 000 1,1% European venture III DIS 1 AHTS-Offshore 1983 Group Servicii Petroliere bareboat 2013 Marineline Chemical DIS USD 10,0% 187 100 1 871 000 3,7% Global Cable II DIS 2 Cable layer 1991/95(99) Global Marine Services Ltd bareboat 2014 + options Med Ethylene DIS USD 1,0% 67 000 67 000 0,1% Golden Kamsar DIS 1 Dry bulk 2010 Golden Ocean Group Ltd bareboat 2020 Multipurpose bulkers DIS EUR 11,0% 68 227 750 500 2,0% May. 12 Industrial Shipping DIS 7 MPP-Dry bulk 1997-2000 TransAtlantic Short Sea bulk Ab bareboat 2024 NFC Panamax DIS USD 10,5% 51 000 535 500 1,1% May. 08 Marineline Chemical DIS 3 Chemical 2006/07/08 Hanjin Shipping Co Ltd bareboat 2014 Norwegian Product DIS USD 15,5% 108 500 1 681 750 3,4% Med Ethylene DIS 2 Ethylene/LPG 1989/90 Synergas SRL bareboat 2014 Oceanlink Offshore DIS USD 2,5% 26 500 66 250 0,1% Sep. 10 Norwegian Product DIS 2 Product tankers 1996/98 Pritchard-Gordon Tankers Ltd bareboat 2014 Oceanlink Offshore II DIS USD 4,5% 24 400 109 800 0,2% Sep. 10 Oceanlink Offshore III DIS 1 AHTS-Offshore 1983 vestland Marine bareboat 2013 Oceanlink Offshore III DIS USD 10,0% 48 450 484 500 1,0% Orchard Offshore DIS 4 AHTS-Offshore 2007/08 Swiber Holdings Ltd bareboat 2015/16 Oceanlink Reefer III DIS USD 6,0% 52 000 312 000 0,6% Dec 12 Panda Chemical Oil DIS 1 Chemical 2004 Pritchard-Gordon Tankers Ltd bareboat 2013 Orchard Offshore DIS USD 7,0% 90 000 630 000 1,3% SbS Torrent KS 1 PSv-Offshore 2006 SbS Marine Ltd bareboat 2014 Panda Chemical Oil DIS USD 32,5% 63 500 2 063 750 4,1% SbS Typhoon KS 1 PSv-Offshore 2006 SbS Marine Ltd bareboat 2014 Pantheon Chemical DIS EUR 20,0% 36 775 735 500 1,9% Mar. 10 Southern Chemical DIS 2 Chemical 2002/04 Augusta Due SRL bareboat 2017 Raffl es Offshore DIS USD 15,0% 140 000 2 100 000 4,2% Jun. 13 total 34 Ross Chemical II DIS USD 4,0 % 298000 1 192 000 2,4% Dec. 09 Ross Chemical Iv DIS USD 20,0% 130 000 2 600 000 5,2% Dec. 10 SbS Tempest KS NOK 10,0% 370 000 3 700 000 1,2% Jun. 11 SbS Torrent KS NOK 8,5% 386 000 3 281 000 1,1% SbS Typhoon KS NOK 20,0% 425 000 8 500 000 2,8% Scandinavian bulkers KS EUR 6,0% 63 250 379 500 1,0% Jan. 10 Short Sea bulkers DIS EUR 20,0% 55 500 1 110 000 2,9% May. 12 Southern Chemical DIS EUR 12,5% 166 660 2 083 250 5,4% Western Chemical DIS EUR 3,0% 106 000 318 000 0,8% Dec. 11 total (Usd equivalent) 50 025 201 100 %

SegMent diveRSiFication (historic cost) charter dUPration

Platou Shipinvest horizon Bukit Timah Offshore DIS Product 7% Dongguan Chem.Tankers DIS Cable layers 6% European Venture DIS European Venture III DIS Offshore 37% Global Cable II DIS

Dry Bulk 23% Golden Kamsar DIS Industrial Shipping DIS Marineline Chemical DIS Med Ethylene DIS Norwegian Product DIS Oceanlink Offshore III DIS

Chemical 28% Orchard Offshore DIS Panda Chemical Oil DIS SBS Torrent KS SBS Typhoon KS Southern Chemical DIS 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

58 PROJECTS PROJECTS 59 HEAD OFFICE CONTACTS

oslo, norWay singaPore office

rs PlatoU finans shiPPing rs PlatoU finans Project broKer David P. Österström Project broKers corPorate managers Managing Partner Axel Moltzau Aas Benjamin Ryeng-Hansen Dir. tel.: + 65 65 44 34 10 Managing Director & Senior Partner Managing Director Mobile: + 65 97 11 55 30 Dir tel.: +47 23 11 28 06 Dir tel.: +47 23 11 26 68 [email protected] Mobile: +47 97 98 21 35 Mobile: +47 97 71 87 04 [email protected] [email protected] Natalie Teh Accountant Chris W. Svensson Th omas Ødegård Dir tel.: +65 65 44 34 16 Senior Partner Corporate Manager Mobile: +65 96 63 00 31 Dir tel.: +47 23 11 28 07 Dir tel.: +47 23 11 26 62 [email protected] Mobile: +47 95 18 96 49 Mobile: +47 91 33 11 82 oslo, norWay singaPore [email protected] [email protected]

rs PlatoU finans shiPPing as rs PlatoU finans singaPore Pte. ltd. Morten Astrup Eva Lise Bjerke Haakon VII’s gate 10 3 Temasek Avenue Project Broker Corporate Manager P.O. Box 1604 Vika # 20-01 Centennial Tower Dir tel.: +47 23 11 28 05 Dir tel.: +47 23 11 26 05 N-0119 Oslo Singapore, 039190 Mobile: +47 92 45 80 62 Mobile: +47 90 96 37 57 Phone: +47 23 11 20 00 Phone: +65 6303 4950 [email protected] [email protected] Telefax: +47 23 11 23 27 Telefax: +65 6336 8740 E-mail: fi [email protected] E-mail: [email protected] Heidi Meyer Westby Erik Kristian Andresen Offi ce Manager Corporate Manager rs PlatoU finans as Dir tel.: +47 23 11 26 55 Dir tel.: +47 23 11 26 54 Haakon VII’s gate 10 Mobile: +47 93 40 20 02 Mobile: +47 92 42 06 18 P.O. Box 1604 Vika [email protected] [email protected] N-0119 Oslo Phone: +47 23 11 20 00 Kathrine Andersen Tåsåsen Telefax: +47 23 11 23 27 Corporate Manager E-mail: [email protected] Offi ce: + 47 23 11 26 59 Mobile: + 47 92 41 72 64 rs PlatoU investor services as ars [email protected] Haakon VII’s gate 10 P.O. Box 1604 Vika Elisabeth Relbo N-0119 Oslo Secretary Phone: +47 23 11 20 00 Dir tel.: +47 23 11 26 56 Telefax: +47 23 11 23 27 Mobile: +47 99 42 17 06 E-mail: [email protected] [email protected]

rs PlatoU asset management as Haakon VII’s gate 10 P.O. Box 1604 Vika N-0119 Oslo Phone: +47 23 11 26 06 Telefax: +47 23 11 26 11 E-mail: [email protected] rs PlatoU rs PlatoU asset investor services as management as Website: www.platou.com Asbjørn Wulfsberg Kathrine Andersen Tåsåsen Trond Hamre Managing Director Corporate Manager Managing Director Dir tel.: +47 23 11 26 66 Offi ce: + 47 23 11 26 59 Dir tel.: +47 23 11 28 09 Fax: +47 23 11 23 27 Mobile: + 47 92 41 72 64 Fax: +47 23 11 23 27 Mobile: +47 91 81 83 50 [email protected] Mobile: +47 92 88 76 50 [email protected] [email protected] 60 60HEAD head OFFICE oFFice CONTACTS 61 market rePOrt JUlY 2013 cOntents PrOlOGUe

DEAR iNvESToRS AND BUSiNESS ASSociATES, Prologue ...... 1 Projects per year ...... 1 While the 2011 transaction volume ended at NOK 35 billion, the 2012 existing projects. Total paid-in equity is just below NOK 350 million. 2012 transaction market dominated fi gures show NOK 55 billion, implying a solid increase in the transac- Long and well-maintained relations with selected Norwegian banks, by large single assets ...... 4 tion activity. Investment activity was booming in the last quarter, for and a solid ownership structure in all projects secured good fi nancing The Scandinavian Real Estate Market ...... 6 example Statoils new offi ce building at Fornebu mounting to NOK conditions, with margins mounting to 225-250 bps for the average Ensjøåsen Invest KS ...... 8 3,2 billion. project Hvam Eiendomsinvest KS...... 9 Fyrstikkalleen 17 Eiendom AS ...... 10 As pointed out last year, we have seen a continuous increase in loan In 2013 we will continue our search for good operational projects in Gråterudveien 8 KS ...... 11 margins as the banks face more rigid capital requirements. However, general, but also focus more on yielding property deals. Even though Tverrveien Eiendom AS ...... 12 the overall property yields remain unchanged. Banks tend to diff er- the fi rst quarter in 2013 was slow, we have noticed a signifi cant in- Contacts ...... 13 entiate more emphasizing the residual risk and most importantly the crease during the last few months. We will continue our proactive track record of the counterpart. We have seen a signifi cant increase in sourcing for off -market deals, in an att empt to deliver the best pos- the use of bond fi nancing – the above mentioned Statoil deal was for sible risk adjusted return. example fi nanced primarily through the bond market. Hopefully we will present several interesting investment cases for our RS Platou Real Estate AS completed ten acquisition projects in 2012, clients. with a total asset value of approx. NOK 1,1 billion, and two sales of

PrOJects Per Year

PrOJeCT name nO. OF UnITS FaCIlITaTeD SeGmenT aCQUISITIOn ValUe eQUITY

PrOJeCT eXeCUTeD 2012

lovisenberggata 4F 1 jan-12 residential nOk 100.000.000 nOk 15.000.000 sannergata 13 1 mai-12 residential nOk 55.000.000 nOk 10.000.000 habornveien 53 1 aug-12 Offi ce nOk 80.000.000 nOk 25.000.000 Fyrstikkalleen 17 1 sep-12 Offi ce nOk 45.000.000 nOk 11.000.000 Glynitveien 9 1 sep-12 Warehouse nOk 73.000.000 nOk 22.000.000 kokstadvegen 25 1 okt-12 Offi ce nOk 140.000.000 nOk 40.000.000 Glasiären 1 nov-12 Offi ce nOk 313.000.000 nOk 60.000.000 vaskerelven 1 nov-12 Offi ce nOk 60.000.000 nOk 20.000.000 Billingstadsletta 19 1 des-12 Offi ce nOk 97.000.000 nOk 30.000.000 hoffsveien 21-23 1 des-12 Offi ce nOk 140.000.000 nOk 40.000.000

real estate 1 RS Platou Real Estate Group

RS Platou RS Platou Property RS Platou Real Estate AS Management Fund Management

Project Finance Asset Management Fund Management

Stian Nicolaus Tom Bøhler Morten Kampli Managing Partner CEO RS Platou CEO & Partner RS Platou Property Management Fund Management

Hans Martin Haug Stian Søbyskogen Thomas Mørch Senior Partner Property Manager Investment Manager

Pål Sandal Thomas Ødegård Marcus Kruus Partner Corporate Manager Head of European Asset Management

Dag Straume Roald Albrigtsen Senior Advisor CFO

Roar Berntzen Financial Controller

Mayte Luterbacher Administrative Assistant

2 real estate real estate 3 rs PlatOU real estate 2012 transactiOn market dOminated BY larGe sinGle assets Grenseveien 97: a housing project under development in a joint venture between RS Platou Real Estate and Scandinavian Development (one of the most experienced and well-respected developers in Norway).

NoRWEGiAN MARKET 2012 prime assets that generate a predictable low-risk cash fl ow, or isting loans and adjusting to new, stricter capital requirements. SEEiNG GREAT oPPoRTUNiTiES iN THE SEcoNDARY In 2012, RS Platou Real Estate concluded 12 projects with an high-risk conversion/development projects with a potential for At the same time, the investment market remains tight in the REAL ESTATE MARKET investment value of 1.5 bill NOK – making us one of the larg- higher returns. Due to a very strong housing market fueled by major markets of Northern Europe, such as the UK, Germany Since 2009, RS Platou Fund Management has launched three est syndicate players in the market. Th e total transaction market high demand and marginal supply, many professional fi nancial, and Scandinavia. While peripheral markets are experiencing a funds investing in the Nordic secondary real estate market. appeared to exceed around 55 bill NOK, and was dominated investors are pursuing opportunities in the housing-develop- low appetite for investment, considerable equity is chasing se- Th ese investments capitalize on mispricing in the secondary by large single asset transactions; such as the new Statoil ASA ment market. Following this trend, RS Platou Real Estate is also cure, income-producing core assets in Northern Europe, keep- market. Exploiting the management’s unique insight into Nor- headquarters (3.2 bill NOK), the new DNB Bank ASA head- involved in the largest housing transformation plan initiated by ing prime yields at low levels. Th e fl avor of the investment mar- dic unlisted real estate vehicles, the funds have great value appre- quarters (4.8 bill NOK) and in addition a portfolio of shopping the municipality of Oslo - the Ensjøplan. At present, we are de- ket is very much characterized by an aversion to risk. ciation potential. Th e track record aft er four years is very good centers in central parts of Norway – Sector Shopping (7.0 bill veloping approximately 200 residential units, and actively look- with a two digit IRR. As we continue to see great potential in NOK). ing for additional projects in the Ensjø area. Th e occupier market is suff ering from the economic slowdown, the secondary market, RS Platou Fund Management will carry and the focus remains on cost cutt ing. Generally, rents in prime on building platforms upon which our investors can participate In spite of the challenging market conditions, RS Platou Real FiNANciNG markets are stable or slightly increasing, while more peripheral in this opportunity. We are increasingly experiencing appetite Estate has also sold two projects during 2012. Both have deliv- Th e fi nancing diffi culties we experienced in 2011 intensifi ed in markets are experiencing the opposite. Th e retail market is suf- among international investors for this investment strategy. ered solid returns to the shareholders, with an internal rate of 2012, and even some of Norway’s largest, industrial real estate fering as a consequence of low income growth, increasing un- return (IRR) of 12 percent and 35 percent respectively. players did not get traditional bank fi nancing. For example, the employment and falling consumer confi dence. In the logistics Sector Shopping transaction was fi nanced both in the bank and market, weak trade volume and economic uncertainty has re- As we reported last year, professional investors dominate the the bond market. Th e banks, in general, are adapting to new EU duced demand for logistics space. equity market. Most of them are searching for either secure regulations regarding risk and equity and are offl oading their balances for real estate. Th e fi nancial climate and lack of tradi- Th e trend for lower new-building levels over the past few years tional bank credit has boosted the private bond market, which is now functioning as a partial cushion against reduced demand. TranSaCTIOn markeT VOlUme - nOrWaY (BIllIOn nOk) was fi ft een times higher in 2012 than in 2011. Both institutional However, in the light of the economic uncertainty and restric- and private investors revealed a growing appetite for 5-7 year tive fi nancing conditions, we expect 2013 to continue in much 80 Retail single asset real estate bonds, yielding from 5-7 percent per an- the same way as 2012 ended. Professional num. As regards restructuring of existing funds, larger entities, and/or other real estate vehicles, falling interest rates have made RS PLAToU’S EURoPEAN REAL ESTATE FUNDS 60 the interest derivatives too expensive to break up and contri- Since 2007, RS Platou Fund Management has managed two buted to an expectant market. pan-European, opportunistic real estate funds. Despite the 40 negative developments in the European real estate market, THE EURoPEAN REAL ESTATE MARKET 2012 the funds have performed well compared to its peers. We have THE EURoPEAN REAL ESTATE MARKET succeeded in off sett ing the eff ects of the negative markets by 20 – cHARAcTERiSTicS oF 2012 active asset management, repositioning and development. As Europe fell back into recession at the close of the year, the Main exposures are in France and Germany, as well as two de- 0 commercial real estate market suff ered as a result. Investment velopment projects in Poland. We expect 2013 to continue to Piastow O ce Centre in Szczecin, Poland – an 18,000 sqm o ce building 04 05 06 07 08 09 10 11 12 13E activity decreased and was particularly hit by the lack of avail- be challenging, but are seeing some signs of market improve- under construction.  e development project is managed by RS Platou ability of debt fi nancing, as banks focused on managing their ex- ment. Fund Management. First phase was  nalized Q1 2013. source: rs Platou

4 real estate real estate 5 The Scandinavian real estate market

The Scandinavian economies have shown strong development dur- The Norwegian market was mainly influenced by the ongoing tur- of considerable corporate cutbacks during 2009 and 2010. Also in ing, and is expecting to do so. There has been high activity within ing recent years. The region seems to be somewhat less affected by moil through the credit market. Sharply rising credit markets, falling Denmark development activity has been very low recent years. De- new-building, and only in 2012, almost 300 000 sqm of new office the ongoing sovereign debt crisis, mainly due to strong domestic interest rates, but also somewhat reduced growth expectations. Major mand continues to be concentrated to prime locations. In the second space is due for completion. New supply is somewhat offset by de- growth and strong macroeconomic fundamentals. Norway is benefit- new oil field discoveries were announced in 2011 and 2012, making half especially, effects of the sovereign debt crisis were experienced molition and conversion of outdated commercial stock to particularly ting from its oil fueled economy, Sweden having a large competitive way for high investment activity for two decades and even tighter la- through more caution among occupiers. Prime property rents stabi- residential. Speculative development has been very limited as devel- export sector while Denmark is to a larger extent affected by the Eu- bour market(unemployment around 3.3 %). lized throughout 2011, while secondary locations experienced a less opers typically have announced large tenants prior to construction. ro-area turmoil and experiencing the effects by residential real estate attractive development. Prime rents in Copenhagen CBD are cur- As for the other Scandinavian markets, demand is very CBD focused, bubble bursting after the financial crisis in 2008-09. In addition low Despite a somewhat negative development going into 2012, eco- rently in the area 1350 – 1650, peaking at DKK 1 800 per sqm p.a. and for that reason rents are expected to continue its positive trend. sovereign debts, transparent economies, stable banking systems and nomic growth in the region will be resilient and domestic demand is Further increases in rents are dependent on a general improvement Prime Oslo rent is considered to be around NOK 3 800 per sqm p.a. consumers with healthy finances makes way for an uncommon com- expected to be increasingly important. The region’s strong fundamen- in the economy. Three other main cities in Norway, Bergen, Trondheim and Stavan- bination of stability and growth potentials. tals are expected to benefit from a period with local growth and low ger, have mostly stable rents and healthy markets. The highest level of imported global interest rates – a combination that generates strong With low vacancy rates in Oslo CBD, rental prices have continued to activity is in Stavanger, the “oil capital”, where some of the rent indica- The Scandinavian real estate market was healthy throughout both potentials for the property market. increase. On the other hand, vacancy for grade B properties is increas- tors show growth and vacancies as low as 2.8 %. 2011 and 2012. Both the Norwegian and Swedish saw increasing rents, steady investment activity and a healthy balance between sup- THE RENTAL MARKET ply and demand. As for the rest of Europe, the appetite for prime as- As the sentiment in both the Norwegian and Swedish economies sets were strong. Well located properties, with strong tenants were has improved, we have seen a stronger demand for office space, espe- also kind of transactions possible to finance in the credit market. cially newer or recently renovated premises with a correspondingly high technical standard. A strong upward trend in employment has The Scandinavian economies fueled demand for high quality office space, especially in Stockholm. The sovereign debt crisis is affecting the Scandinavian markets in dif- In Stockholm CBD, rents increasec by ca. 5 % in 2012 and are still The rental market 1997-2013 ferent ways. The open and export driven economies of Sweden and expected to grow in coming years. The picture is the same in second- Denmark are heavily dependent on their large export industries. For ary Swedish cities, such as Gothenburg and Malmø which are expe- Sweden the recent development has so far mainly translated into riencing decreasing vacancies and strong take-up. The rental increase 700 Oslo prime rent (EUR) Stockholm prime rent (EUR) increasing uncertainty and diminishing export expectations. This is seen on the back of very limited supply, especially in Stockholm 600 Copenhagen prime rent (EUR) again has affected domestic demand and rising unemployment. GDP which offered only 3.2 % new CBD office space in 2011. We expect 500 growth in 2012 was 0.8 %, and is expected to increase to 1.3 % in the development will attract new development projects, but still we 2013. know that these processed are lengthy. Prime rents in Stockholm 400 CBD is considered to be around SEK 4 400 per sqm p.a. With limited 300 In Denmark there are still very few sign of growth. 2012 was the weak- supply and still a strong underlying demand, we expect a steady de- 200 est year since the debt crisis in 2009, mainly a result of weaker de- velopment in rental prices in 2013. mand in key export markets and continued stagnation in domestic 100

spending. GDP growth in 2012 was -0.6 %, and is expected to grow Also in the Danish market, and especially in Copenhagen, vacancies 0 by 0.5 % in 2013. dropped in 2011. Stable occupational demands were seen on the back 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

6 REAL ESTATE REAL ESTATE 7 ensJØÅsen invest ks hvam eiendOmsinvest ks

Project broker asset manager report date 03.06.13 Project broker asset manager report date 03.06.13 name stian nicolaus tom Bøhler status date 31.12.12 name hans martin haug tom Bøhler status date 31.12.12 tlf 23 11 26 72 23 11 26 74 tlf 23 11 26 71 23 11 26 74 mail [email protected] [email protected] mail [email protected] [email protected]

COmPanY anD PrOPerTY InFOrmaTIOn TenanTS COmPanY anD PrOPerTY InFOrmaTIOn TenanTS name ensjøåsen invest ks name average duration Gross rent Index name hvam eiendomsinvest ks name average duration Gross rent Index address co/ rs Platou Property management as asian Food import as 3 589 144 100 % address co/ rs Platou Property management as eikmaskin as 2 006 132 100 % Founded October 2011 Gs Bildeler as 2 490 704 100 % Founded desember-01 Gk norge as 2 379 180 100 % Property location Grenseveien 97, helsfyr, Oslo dagslys as 937 656 100 % Property location Jogstadveien 25 lubeco as 1 420 012 100 % segment Offi ce/Warehouse/development residential vega Partners as 680 036 100 % segment logistics/industry/offi ce enghav as 5 429 472 100 % Plot 14 353 Øyvind moen as 669 188 100 % lot size leasehold snap drive as 1 924 408 100 % Building area 16 189 Global knowledge as 579 368 100 % Building area 11 826 hvam Bilsenter 2 127 172 100 % Year of construction 1965-95 Park nordic (estimate as rent is turnover based) 650 052 100 % Year of construction 2011 total 10 years 15 286 376 100 % Property tax value 56 727 858 Group of smaller tenants 3 426 596 100 % tax value 137 000 000 net cash and receivables 4 282 897 ca. 3 years 13 022 744 100 % net cash and receivables 10 256 667 shareholder tax value as of 31.12.2011 0 shareholder tax value as of 31.12.2011 0

keY POInTS DeSkTOP FOreCaST 1.5 % 2.0 % keY POInTS DeSkTOP FOreCaST 1,5 % initial yield 6,4 % 2012 2013e 2014 initial yield 8,0 % 2012 2013e 2014e running yield 6,3 % Gross rent 12 297 557 13 093 744 13 290 150 running yield 8,1 % Gross rent 14 866 189 15 286 376 15 515 672 date of total initial payment 22-02-10 Owners cost inc. leasing fee 12,0 % -1 598 901 -1 571 249 -1 594 818 date of total initial payment 20-12-11 Ownership cost 12,0 % -1 807 513 -1 834 365 -1 861 881 real estate purchase price (project price) 165 000 000 net rent 10 698 656 11 522 495 11 695 332 real estate purchase price (project price) 171 537 000 net rent 13 058 676 13 452 011 13 653 791 Paid in equity 30 500 000 corp. + development cost 30,0 % -3 724 215 -3 928 123 -3 987 045 Paid in equity 43 000 000 asset/corp. management 2,80 % -426 906 -428 019 -434 439 Paid out equity 0 net rent 6 974 441 7 594 372 7 708 287 Paid out equity 0 net rent 12 631 770 13 023 992 13 219 352 estimated irr 20,00 % net interest -6 260 313 -5 991 750 -5 902 653 estimated irr 17,00 % net interest -5 972 104 -6 131 860 -6 035 674 realized irr 0 % tax estimate 117 720 -131 058 -187 901 realized irr n/a tax estimate n/a n/a n/a Uncalled capital 0 installments 0 -2 000 000 -2 000 000 Uncalled capital 0 installments -1 500 000 -2 000 000 -2 500 000 Gross rent per square meter incl. parking 760 estimated cash-fl ow 831 848 -528 437 -382 268 Gross rent per square meter incl. parking 1 327 estimated cash-fl ow 5 159 666 4 892 132 4 683 678 estimated cash-fl ow in % of paid-in-equity 2.7 % -1.7 % -1.3 % estimated cash-fl ow in % of paid-in-equity 12.0 % 11.4 % 10.9 %

FInanCInG ValUe FInanCInG eSTImaTeD ValUe UlTImO 2012 Balance Date rate Yield sensitivity 6.75 % 7.25 % 7.75 % Balance Date rate Yield sensitivity 7.75 % 8.00 % 8.25 % Floating 89 250 000 01-03-13 1.88 % estimated real estate value 170 703 625 158 930 962 148 677 351 Floating 39 000 000 20-12-12 1.83 % Yield sensitivity 7,25 % 7,50 % 7,75 % Fixed 5Y 38 250 000 01-12-16 3.18 % estimated development value at project start 80 000 000 80 000 000 80 000 000 2Y fi xed 64 000 000 23-12-13 2.65 % estimated real estate value 185 544 978 179 360 145 173 574 334 vendor note 7 000 000 02-05-15 6.00 % tax disadvantage -12 537 334 -11 242 341 -10 114 444 7Y fi xed 26 000 000 27-12-18 3.37 % estimated development value 0 0 0 margin 2.10 % net debt (incl. cash and receivables) -130 217 103 -130 217 103 -130 217 103 margin 2.05 % tax disadvantage (7,0%) -3 398 148 -2 965 210 -2 560 203 estimated interest rate incl. margin 4.5 % % nav 107 949 188 97 471 517 88 345 804 estimated interest rate incl. margin 4.81 % net debt (incl. cash and receivables) -118 743 333 -118 743 333 -118 743 333 total 134 500 000 total 129 000 000 nav 63 403 496 57 651 602 52 270 798 estimated value fi xed interest rate -1 536 791 -1 536 791 -1 536 791 nav incl fi xed interest rate 106 412 397 95 934 726 86 809 013 estimated value fi xed interest rate -3 345 272 -3 345 272 -3 345 272 TraDInG OF ShareS nav incl fi xed interest rate per share 1 064 124 959 347 868 090 TraDInG OF ShareS nav incl fi xed interest rate 60 058 224 54 306 330 48 925 526 last traded n/a number of shares 100 100 100 last traded 460 100 nav incl fi xed interest rate per share 600 582 543 063 489 255 date last traded n/a date last traded 15-10-12 number of shares 100 100 100 seller on price n/a seller on price n/a Buyer on price n/a real estate value per square meter 15 486 14 759 14 125 Buyer on price n/a real estate value per square meter 15 690 15 167 14 677 implied leverage 55 % 58 % 60 % implied leverage 66 % 69 % 71 %

COmmenTS COmmenTS

ensjøåsen invest ks is a residential development project. Planning to develop approx. 200 fl ats for sale. the property is running as expected. acquisition fi nalized ultimo 2011, and last tenant, hvam Bilsenter just moved into the property. When the project was established, there was an offi ce building with an associated warehouse. the warehouse was old and worn, consequently the price per sqm was low making it attractive for further development. the district of ensjø the building is completed in 2011 by Øm Fjell, and fi rst year inspection was conducted this year with minor fi ndings is currently undergoing a major transformation, and is becoming attractive for mid/high end residents. the residential (two years guarantee still remaining from builder). development is expected to give a net profi t to shareholders of mnOk 80. the property has an attractive location at hvam, with a strong tenant structure with 10 years of weighted average duration.

8 real estate real estate 9 FYrstikkalleen 17 eiendOm as GrÅterUdveien 8 ks

Project broker asset manager report date 03.06.13 Project broker asset manager report date 03.06.13 name stian nicolaus tom Bøhler status date 31.12.12 name Pål sandal tom Bøhler status date 31.12.12 tlf 23 11 26 72 23 11 26 74 tlf 23 11 26 73 23 11 26 74 mail [email protected] [email protected] mail [email protected] [email protected]

COmPanY anD PrOPerTY InFOrmaTIOn TenanTS COmPanY anD PrOPerTY InFOrmaTIOn TenanTS 2013 name Fyrstikkalleen 17 eiendom as name average duration Gross rent Index name Gråterudveien 8 ks name average duration Gross rent Index address co/ rs Platou Property management as James Walker norge as 1 260 660 100 % address co/ rs Platou Property management as eltek asa 6 979 306 100 % Founded november-12 macsimum design as 283 152 100 % Founded fredag, april 30, 2004 total 9 years 6 979 306 100 % Property location Fyrstikkalleen 17, helsfyr, Oslo norske Grafi keres verksted as 406 176 100 % Property location Gråterudveien 8 segment Offi ce/Warehouse/development residential skintifi c as 631 030 100 % segment industry/offi ce Plot 3 300 hk regnskap 408 400 100 % lot 17 009 (Freehold) Building area 4 025 ca. 3 years 2 989 418 100 % Building area 6 000 Year of construction 1938 Year of construction 1985 Property tax value 5 245 000 tax value (estimated) 31 771 533 net cash and receivables 230 000 estimated net cash and receivables 1 182 384 shareholder tax value as of 31.12.2011 0 shareholder tax value as of 31.12.2011 0

keY POInTS DeSkTOP FOreCaST 1.5 % 2.0 % keY POInTS FOreCaST 1,5 % initial yield 6.4 % 2012 2013e 2014e initial yield 8.25 % 2012 2013e 2014e running yield 6.7 % Gross rent 3 300 000 2 989 418 3 034 259 running yield 7.8 % Gross rent 6 602 454 6 979 306 7 083 995 date of total initial payment 22-02-10 Owners cost 8.0 % -264 000 -239 153 -242 741 date of total initial payment fredag, april 30, 2004 Ownership cost -2 020 132 -512 000 -512 000 real estate purchase price (project price) 45 000 000 net rent 3 036 000 2 750 265 2 791 519 real estate purchase price (project price) 55 000 000 net rent 4 582 322 6 467 306 6 571 995 Paid in equity 11 000 000 corp. + development cost 30.0 % -990 000 -1 004 850 -1 024 947 Paid in equity 14 000 000 asset/corp. management -174 654 -100 000 -100 000 Paid out equity 0 net rent 2 046 000 1 745 415 1 766 572 Paid out equity 7 320 000 net rent 4 407 668 6 367 306 6 471 995 estimated irr 20.00 % net interest -1 296 000 -1 296 000 -1 269 270 estimated irr 13.60 % net interest -2 817 723 -2 868 413 -2 743 699 realized irr 0 % tax estimate -180 628 -96 464 -109 872 realized irr n/a tax estimate n/a n/a n/a Uncalled capital 0 installments 0 660 000 660 000 Uncalled capital 9 780 000 installments -2 000 000 -2 000 000 -2 000 000 Gross rent per square meter incl. parking 820 estimated cash-fl ow 569 372 1 012 950 1 047 429 Gross rent per square meter incl. parking 1 163 estimated cash-fl ow -410 055 1 498 893 1 728 296 estimated cash-fl ow in % of paid-in-equity 5.2 % 9.2 % 9.5 % estimated cash-fl ow in % of paid-in-equity -2,9 % 10,7 % 12,3 %

FInanCInG ValUe FInanCInG eSTImaTeD ValUe UlTImO 2012 Balance Date rate Yield sensitivity 6.75 % 7.25 % 7.75 % Balance Date rate Yield sensitivity 7.75 % 8.20 % 8.50 % Floating 32 000 000 01-03-13 1.85 % estimated real estate value 40 744 660 37 934 684 35 487 285 Floating 765 735 20-12-12 1.88 % estimated value G8 83 449 105 78 869 580 76 085 948 tax disadvantage -3 904 963 -3 595 865 -3 326 651 3Y fi xed 26 234 265 02-06-14 5.07 % estimated value G14 7 000 000 7 000 000 7 000 000 margin 2.20 % net debt (incl. cash and receivables) -31 770 000 -31 770 000 -31 770 000 10Y fi xed 21 000 000 30-12-21 3.56 % tax disadvantage (7,0%) -3 617 430 -3 296 863 -3 102 009 estimated interest rate incl. margin 4.05 % nav 5 069 698 2 568 818 390 633 margin 1.85 % net debt (incl. cash and receivables) -46 817 616 -46 817 616 -46 817 616 total 32 000 000 estimated interest rate incl. margin 6.24 % nav 40 014 059 35 755 101 33 166 323 estimated value fi xed interest rate 0 0 0 total 48 000 000 nav incl fi xed interest rate 5 069 698 2 568 818 390 633 estimated value fi xed interest rate -2 287 075 -2 287 075 -2 287 075 TraDInG OF ShareS nav incl fi xed interest rate per share 50 697 25 688 3 906 nav incl fi xed interest rate 37 726 984 33 468 026 30 879 248 last traded n/a number of shares 100 100 100 TraDInG OF ShareS nav incl fi xed interest rate per share 377 270 334 680 308 792 date last traded n/a last traded nOk pr. 0,5 %, 110 000 (intern omsetning) number of shares 100 100 100 seller on price n/a real estate value per square meter 10 123 9 425 8 817 date last traded tirsdag, juni 01, 2010 Buyer on price n/a implied leverage 86 % 93 % 99 % seller on price n/a real estate value per square meter 15 075 14 312 13 848 Buyer on price n/a implied leverage 55 % 58 % 60 %

COmmenTS COmmenTS

Fyrstikkalleen 17 is a strategic important property close to Grenseveien 97 and Fyrstikkalleen elementary school. rs Platou Property management as took over management of the property as of april 2013.

the property was acquired ultimo 2012 and the property is running as expected. eltek asa signed a 10 year lease in 2012 and is the only tenant in the building. eltek is listed on the Oslo stock exchange. the property has great development potential.

10 real estate real estate 11 tverrveien eiendOm as

Project broker asset manager report date 03.06.13 name hans martin haug tom Bøhler status date 31.12.12 tlf 23 11 26 71 90 66 11 87 / 23 11 26 74 cOntacts mail [email protected] [email protected]

COmPanY anD PrOPerTY InFOrmaTIOn TenanTS name tverrveien eiendom as name average duration Gross rent Index rS PlaTOU real eSTaTe aS rS PlaTOU PrOPerTY manaGemenT aS rS PlaTOU FUnD manaGemenT aS address co/ rs Platou Property management as scana Offshore vestby as (kontor) 1 900 965 70 % Founded juni-08 scana Offshore vestby as (industrihaller) 4 380 210 100 % Stian Nicolaus Tom Bøhler Morten Kampli Property location tverrveien 4 scana Offshore vestby as (kaldt lager) 454 228 100 % Managing Partner Managing Director CEO & Partner segment logistics/industry scana Parkering / 20 stk 26 619 100 % Dir. tel.: +47 23 11 26 72 Dir. tel.: +47 23 11 26 74 Dir. tel.: +47 23 11 29 20 lot size 37 948 Qualifi ed logistics 2 660 000 100 % Building area 11 577 kat development 832 649 100 % Mobile: +47 95 48 60 66 Mobile: +47 90 66 11 87 Mobile: +47 97 02 87 81 Year of construction From 1996 Bonver 303 448 100 % [email protected] [email protected] [email protected] tax value 58 012 624 total 3.0 years 10 558 119 95 % net cash and receivables 11 632 049 Hans Martin Haug Stian Søbyskogen Th omas Mørch shareholder tax value as of 31.12.2011 0 Senior Partner Property Manager Investment Manager Dir. tel.: +47 23 11 26 71 Dir. tel.: +47 23 11 29 24 Dir. tel.: +47 23 11 29 21 keY POInTS DeSkTOP FOreCaST 1,5 % Mobile: +47 90 06 69 66 Mobile: +47 98 49 36 76 Mobile: +47 95 10 60 64 initial yield 7.2 % 2012 2013e 2014e [email protected] [email protected] [email protected] running yield 7.3 % Gross rent 10 702 911 10 980 583 11 145 291 date of total initial payment september 2008 Ownership cost -944 179 -1 288 252 -1 003 076 real estate purchase price (project price) 138 500 000 net rent 9 758 732 9 692 330 10 142 215 Pål Sandal Th omas Ødegård Marcus Kruus Paid in equity 36 700 000 asset/corp. management -500 000 -507 500 -515 113 Partner Corporate Manager Head of European Asset Management Paid out equity 0 net rent 9 258 732 9 184 830 9 627 103 Dir. tel.: +47 23 11 26 73 Dir. tel.: +47 23 11 26 62 Dir. tel.: +352 262 11 767 estimated irr 0,00 % net interest -6 040 938 -6 070 765 -5 925 025 realized irr n/a tax estimate -135 955 -222 197 -386 840 Mobile: +47 93 88 00 83 Mobile: +47 91 33 11 82 Mobile: +352 621 228 414 Uncalled capital 0 installments -2 100 000 -2 100 000 -2 100 000 [email protected] [email protected] [email protected] Gross rent per square meter incl. parking 912 estimated cash-fl ow 981 839 791 868 1 215 237 estimated cash-fl ow in % of paid-in-equity 2.7 % 2.2 % 3.3 % Dag Straume Roald Albrigtsen Senior Advisor CFO FInanCInG ValUe Mobile: +47 90 50 77 16 Dir. tel.: +47 23 11 29 23 Balance Date rate Yield sensitivity 8,00 % 8,25 % 8,50 % [email protected] Mobile: +47 99 25 93 50 3Y Fixed 89 575 000 01-07-15 5.99 % Yield sensitivity 8,00 % 8,25 % 8,50 % [email protected] estimated real estate value 121 154 127 117 482 790 114 027 414 margin 0.95 % estimated development value 0 0 0 estimated interest rate incl. margin 6.94 % tax disadvantage 10% -4 814 150 -4 447 017 -4 101 479 Roar Berntzen total 89 575 000 net debt (incl. cash and receivables) -77 942 951 -77 942 951 -77 942 951 Financial Controller nav 38 397 026 35 092 823 31 982 984 Dir. tel.: +47 23 11 29 22

TraDInG OF ShareS Mobile: +47 90 15 26 10 estimated value fi xed interest rate -8 614 017 -8 614 017 -8 614 017 last traded n/a nav incl fi xed interest rate 29 783 009 26 478 806 23 368 967 [email protected] date last traded n/a nav incl fi xed interest rate per share 7,53 6,69 5,91 seller on price n/a number of shares 3 956 964 3 956 964 3 956 964 Mayte Luterbacher Buyer on price n/a Administrative Assistant real estate value per square meter 10 465 10 148 9 849 implied leverage 72 % 75 % 77 % Dir. tel.: +352 262 11 767 [email protected]

COmmenTS

rs Platou Property management as took over management of the property as of november 2011. the goal is to have an active role in ongoing operations and communication with the property’s tenants. Bonver has been in danger of bankruptcy and checked the opportunity to terminate the tenancy as a precursor was effective until 05/31/2013. consequently it was signed a new lease with Ql logistics, which is a third party logistician, in all former Bonver areas (except for a small offi ce area that Bonver is still renting).

12 real estate real estate 13