Mosvold Supply Plc'

1
Mosvold Supply Plc.
Confidential

• Pareto Oil Offshore Conference
• August 30, 2007
• CEO John G. Bernander

2
Mosvold Supply business opportunity
Confidential

• Mosvold with opportunistic approach to high-end
  AHTS market
• Mosvold Supply Plc. (Cyprus) initiated and backed
  by Mosvold with substantial experience and track
  record from offshore drilling, supply and
  shipping
• Pure and leveraged play on high-end, large AHTS
  vessels
• Based on attractive turnkey newbuild contracts
  and proven Vik Sandvik design
• 2x AHTS (Vik Sandvik 491 Clean Design) with total
  USD m 167 all-in delivered price (Oct-09/Jun-10
  delivery) vs approx USDm 217 quotes from western
  European yards
• 2x individual options for similar vessels (USD m
  82.5/84.5 with calls 19 Sep 2007 and 19 Jan 2008,
  respectively). Expected delivery late 2010 and
  mid 2011
• Robust market outlook
• High-end AHTS order book balanced by strong
  demand (rig/FPSO/field developments), stricter
  safety rules and environmental issues
• Attractive payment schedule and contract terms
  justifying leveraged capital structure
• USDm 32 equity and USD m 30 bond secured through
  Pareto Securities. USD m 112 take-out financing
• Financing of optional vessels with optimal
  capital structure
• Significant equity value potential
• Equity replacement value approx USD m 75 based on
  current newbuild quotes
• 3-yr historical average AHTS day rates yielding
  P/E 1.2x and EV/EBITDA 3.9x (2 vessels)
• Additional value from 2x attractive newbuild
  options
• Alternative strategies to be actively pursued by
  Mosvold

3
Strong equity return potential
Confidential

• Current asset replacement cost estimated at NOKm
  640 per vessel (delivered price)
• Implying USDm 217 (2x AHTS)
• Ignoring value of 2x Mosvold options
• Mosvold equity worth USDm 76 on asset replacement
  values
• 117 on initial USDm 35 market cap
• Mosvold equity worth USDm 106 on asset
  replacement values incl. 2x options 1)
• gtUSDm 120 equity value potential based on 3-yr
  average earnings scenario
• EBITDA USDm 46
• Assuming target EV/EBITDA 5.5x
• Implying P/E 3.8x on target valuation
• 3.5x initial equity valuation

1)
1) Options assumed to be USD 15m in the money vs.
alternative quotes
Source Pareto Securities ASA

4
Mosvold an experienced shipping and offshore
services group
Confidential

• The Mosvold family has continuously been active
  in shipping since 1910
• First investment in offshore Part ownership of
  semi early 80ies
• Acquired 3 modern J/Us from Keyes Offshore in
  1989
• Mosvold Shipping was IPOd on the Oslo Stock
  Exchange in 1990
• Acquired 100 of Dual Drilling Co in 1990. Dual
  was a Dallas based worldwide drilling contractor
  owning 3 J/Us and 10 platform rigs
• Through Dual, acquired further 3 J/Us in 1993
  combined with raising new equity and listing of
  Dual on NASDAQ (Mosvold Shipping retained 60 of
  Dual)
• Dual merged with Ensco in 1996 with payment in
  shares. All shares distributed to Mosvold
  shareholders
• Mosvold initiated a J/U project 1H 2004 to build
  2 J/U (with 4 options) at PPL Shipyard and Keppel
  FELS in Singapore. The entire project sold to
  Awilco in 2004 and is the now the foundation of
  Awilco Offshore
• Mosvold is managing the construction of two
  semi-submersible baredecks at the Russian yard
  Sevmash. Baredecks sold to Saipem and Sea Dragon
  Offshore with forward delivery
• Mosvold founded Mosvold Drilling Ltd. in 2005 (2x
  Ultra Deep Water Drillships on order with
  Samsung, acquired by Sea Drill)
• Mosvold founded Mosvold Jackup Ltd. in 2006 (2x
  300 ft Jackups on order at MIS), sold to Sea Wolf
• Mosvold with innovative approach taking advantage
  of yard market potential, eg. MIS and Sevmash

5
VS 491 CD high capacity AHTS - State-of-the
art workhorses

• Main features
• Design Vik Sandvik
• Overall length 91 m
• Breadth moulded 22 m
• Deadweight (7.9 m draft) 4,000 t
• Speed at 6.0 m draft 17 knots
• Total horsepower 28,080
• Min. bollard pull 270 t
• DP class II
• Towing/anchor handling winch 500 t
• Crane capacity 1x 5t, 1x 6t and 1x 10t
• Fuel consumption 13.5 t diesel per day
• Accommodation 60 persons
• Prepared for ROV hangar
• Well reputed equipment suppliers
• Diesel engines MAK
• Thrusters Brunvoll
• Towing winches Hatlapa

6
Mosvold to meet future requirements

• New requirements
• MARPOL Annex 1 Reg. 12a requires double hull
  protection of fuel tanks
• Applicable to all vessels/newbuilding with fuel
  tanks of total capacity of at least 600 m3 which
  are ordered after Aug 2007 and delivered from Aug
  2010
• Oil companies starting to ask for ROV capability
  during critical anchoring
• NOX tax NOK 15 per kilo emission. Norwegian
  charterers expected to require modern tonnage
  with catalyzer, which may reduce emissions with
  90-95
• Possible requirement for contingency tension
  testing of anchors up to 300 tons in the North
  Sea
• Mosvold well in advance to meet new requirements
• Double hull construction (DnV Clean Design
  notation)
• Safeguarding the environment from possible
  leakage
• Ships prepared for ROV with heave compensator
• Vessels with great stability and large towing and
  pulling capacity
• Vessels with light construction work capabilities
• Cost efficient fuel economy
• Reduces emissions of greenhouse gases
• Cost effective solution for charterers
• HYBRID propulsion system
• Straight shaft technology when steaming
• Diesel electric principles when the vessel is
  holding position

Source R. S. Platou

7
Large AHTS to be preferred going forward-
Meeting new and stricter requirements from
clients and authorities

• Mosvold Supply VS 491 CD
• 22 m breadth
• 500 t
• 7º tilting
• Conventional / older vessel
• 17 m breadth
• 400 t
• 19º tilting

8
Mosvold Supply AHTS with high-end specifications
Source Mosvold and Pareto Securities

9
Mosvold Supply construction program
USDm 80 - to be adjusted acc. to chg. on critical
equipment , callable 15 Sep 2007 with estimated
delivery late 2010
USD 82.5m price adj. to reflect key equipment
cost exercise by mid Sep 07, expected delivery
late 2010
USDm 82 - to be adjusted acc. to chg. on critical
equipment , callable 30 Jan 2008 with estimated
delivery late 2010 / early 2011
USD 84.5m price adj. to reflect key equipment
cost exercise by mid Jan 08, expected delivery
mid 2011

• Favorable payment structure securing commitment
  from Batamec Shipyard
• 20 at contract signing
• 10 at key equipment delivery
• 70 at final delivery
• Turnkey construction contract with parent company
  Otto Offshore Ltd., Labuan, Malaysia
• Contract price USDm 153
• All-in delivered price USDm 167 (incl. project
  development, supervision interest)
• Refund guarantee from Bangkok Bank (BBB)

10
Batamec Shipyard with relevant expertise

• PT Batamec Shipyard wholly owned subsidiary of
  Otto Marine Pte Ltd
• Otto Marine Ptd Ltd started operations in 1979
• Principal activities
• Shipbuilding
• Ship repair conversion
• Offshore structural engineering
• Batamec is strategically located at Batam Island,
  Indonesia
• Management comprises over 45 qualified and
  experienced engineers, primarily from PPL and
  Keppel Fels
• Total workforce 2,200
• Certified to ISO 90012000 with Lloyds Register
  Quality Assurance as at 25 April 2005

• 6 vessels successfully delivered since embarking
  on shipbuilding strategy
• Order book of 30 vessels with deliveries until
  2010
• Of which 10x 10,000HP AHTS
• Major clients
• Tidewater
• ESNAAD
• Seatrucks
• PETRA
• RK Offshore
• Marine Subsea (Africa Offshore Services)

11
Large AHTS rates holding up at record levels-
avg spot rates YTD 2007 approx USD 95,000/d

• 90 spot utilization (80)

• Recent fixtures
• Highland Courage 65,000 (Pareto 3Q07E 65,000)
• Far Sound at 65,000 (Pareto 3Q07E 65,000)
• Sea Lynx at 55,000 (Pareto 3Q07E 60,000)
• Olympic Hercules at 76,000 (Pareto 3Q07E
  85,000)
• Far Scout at 66,000 (Pareto 3Q07E 65,000)

Term rates and Pareto estimates are effective
day rates total rev./no. of days Source Johan
G. Olsen Shipbrokers, Pareto estimates

12
Total AHTS fleet is old 21 years avg age -
Larger and more capable vessels will replace
older vessels
Source Clarksons / Pareto estimates

13
Drilling and field development driving AHTS
demand- Boost in drilling activity and growing
number of FPSO installations going forward-
Deepwater field development boosting AHTS vessel
usage
General floater activity FPSO units
units
units

Annual growth 2000-2005 vs. 2006-2010
Source ODS Petrodata, Infield, Pareto estimates

14
Company set up

• Mosvold Supply Plc. has been established and
  registered in Cyprus
• No direct employees in Mosvold Supply
• Corporate governance in accordance with public
  company guidelines (incl. 30 mandatory offer
  threshold prior to listing)
• No corporate tax (pay only local tonnage tax)

15
Board, management and largest shareholders
Confidential

• Board of Directors
• Roy T. Mosvold Chairman
• Vasilios Trikoupis
• Magne Kristiansen
• Eleni Georgiades
• Irene Sarvvides

• Management
• John G. Bernander CEO
• Per Tønnesen Technical Director
• Marianne Andreassen Controller

16
Pro forma Mosvold Supply key figures (2x AHTS)
Confidential

• EV USDm 176 fully invested
• Ignoring value of 2x newbuild options
• Post-deal market cap USDm 35
• Incl. pre-money value USDm 3
• Approx 23 Mosvold ownership
• P/E 4.0x on current Pareto 09E estimates for
  similar vessels (NOK 275k/d)
• EV/EBITDA 7.1x
• P/E 1.2x on 3-yr historical average of NOK 450k/d
• EV/EBITDA 3.9x
• P/E 0.8x assuming day rates at 2007E levels
• EV/EBITDA 3.1x

17
Consolidation opportunities ahead- Fragmented
market creates room for consolidation- New,
large AHTS in favor
Source Petrodata / Platou / Farstad