PRESENTATION 4 Quarter 20 February 2003

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PRESENTATION 4 Quarter 20 February 2003
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Profit and Loss Account 4Q02 DSND Inc.
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Balance sheet 4Q02 DSND Inc.
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Profit and Loss Account 4Q02 Subsea 7
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Balance sheet 4Q02 Subsea 7
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Backlog 4Q02 Subsea 7

• Subsea 7 has a worldwide order book of approx USD
  807 million, compared to approx USD 750 mill at
  the end of third quarter
• Geographical split of Backlog
• UK USD 460 million
• Norway USD 128 million
• Brazil USD 103 million
• GOM USD 66 million
• Asia Pac USD 50 million
• Total USD 807 million

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Main objectives for 2002 achieved

• Establishment of Subsea 7
• Relocation of corporate holding company
• from Norway to Cayman Island
• Refinancing of short-term debt

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Corporate Structure - Relocation
DSND Inc.
50

• DSND Consub
• (Brazil)
• Supply fleet
• Cable vessel
• Modfrag

50
Halliburton
Investment in other vessels
Subsea 7

• The DSND holding company has successfully been
  relocated from Norway to Cayman Islands (from ASA
  to Inc)
• Management agreement between DSND Subsea ASA and
  the new holding company, DSND Inc
• DSND Inc listed on the Oslo Stock Exchange,
  ticker code DSND
• Rationale
• More optimal location for an international
  company
• Improved tax position for non-Norwegian
  shareholders

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DSND debt per February 2003

• Convertible Bond
• - NOK 300 million
• - Duration 3 years from 1/2003
• - Strike NOK 20,00 per DSND share
• - Conversion At pre-determined date
• each month for the entire period
• - Interest 8 coupon
• BNDES (Brazil), Two loans
• - USD 8,7 million (until 2012)
• - USD 1,8 million (until 2008)
• Financial lease on Buccaneer
• - USD 4,8 million (until 2005)

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20 Largest shareholders pr. 15 February 2003
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DSND Non Subsea 7 assets

• Olympic Princess
• Cable repair and maintenance
• Contract to ACMA, an umbrella organization for 21
  cable companies, to December 2003 plus options
• The vessel is on lease from Olympic Shipping for
  the same period as its current contract
• Buccaneer
• Well service
• The vessel finalized its contract with Elf Congo
  at the end of October as scheduled. The company
  is currently pursuing different short- and long
  term possibilities for the vessel
• Joides Resolution
• Ocean Driling Programme to September 2003
  (research project/program)
• 50/50 owned with Transocean

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DSND Non Subsea 7 assets

• Big Orange
• Well maintenance
• Contract to Dowell Schlumberger to August 2009
  (certain rights to cancel from 2005)
• 41 owned
• Supply fleet Brazil through DSND Consub
• 11 owned supply-/crew vessels (one survey vessel)
• 4 supply vessels on management
• All vessels on contracts to Petrobras
• Atria, Helder and Taurus
• Currently laid-up
• Modfrag
• Development of Combat Management System for
  Brazilian Navy until 2005
• New development contract for one Corvette awarded
  in Nov.2002

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Subsea 7 The Business

• The Business
• The design, procurement, construction,
  installation, operation, maintenance and eventual
  removal of equipment and facilities for the
  subsea production of oil and gas
• Services may be rendered discretely or packaged
  dependent on customer preference, geographic
  location and competitive situation.
• Payment may be on a cost reimbursable or day
  rate basis for the delivery of a prescribed
  service or on a lump sum basis for execution of a
  particular scope or supply, installation and
  commissioning of prescribed facilities

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Trends Consolidation taking place

• Customers consolidate A few ultra large players
  (10 oil and gas companies have consolidated down
  to 4 ultra large players)
• Suppliers/competitors consolidate
• DSND Subsea/Halliburton Subsea
• Dresser/Halliburton
• Technip/Coflexip/Aker Deep Water
• Kværner/Aker Maritime
• National oil companies stable but some trend to
  privatisation
• Market activity determined by oil price/economic
  growth in the short also by geopolitical events

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Oil majors - Cash flow vs. EP capex
In recent years it seems like the oil sector has
improved their capital discipline not chasing
projects, when they have high cash flows
Killde DNB Markets
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Why is last three years different from long-term
trend?

• Limited growth in world oil demand growth by 1.5
  over the last 3 years
• Focus has been on consolidation/mergers (buying
  reserves)
• Uncertainty with respect to long-term sustainable
  oil price

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Market view subsea capex (1)

• Norway - 2003 lower than 2002
• - 2004 2006 expected at 2002
  level
• UK - Increase in 2003 compared to 2002
• - Expect slow decline towards
  2006
• Brazil - Strong increase in 2003
• - Remaining stable through 2006

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Market view subsea capex (2)

• Gulf of Mexico - Expect stable capex spend
  during
• 2003 2006
• - Mexico could be strong growth marked
• West-Africa - Growth market
• - Large projects
• Asia Pacific - Expect strong increase in capex
• spend from 2002 to 2006

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Summary

• Positive cash flow from non Subsea 7 activities
• Reduced financial gearing following Subsea 7
  establishment and refinancing package in place
• Well positioned through Subsea 7 for expected
  market growth