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Ship Finance International Limited

2Q 2013 Results

August 28, 2013

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FORWARD LOOKING STATEMENTS

This presentation contains forward looking statements. These statements are based upon various assumptions, many of which are

based, in turn, upon further assumptions, including Ship Finance management's examination of historical operating trends, data

contained in the Company’s records and other data available from third parties. Although Ship Finance believes that these

assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies

which are difficult or impossible to predict and are beyond its control, Ship Finance cannot give assurance that it will achieve or

accomplish these expectations, beliefs or intentions.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking

statements include the strength of world economies, fluctuations in currencies and interest rates, general market conditions including

fluctuations in charter hire rates and vessel values, changes in demand in the markets in which we operate, changes in demand

resulting from changes in OPEC's petroleum production levels and world wide oil consumption and storage, developments regarding

the technologies relating to oil exploration, changes in market demand in countries which import commodities and finished goods and

changes in the amount and location of the production of those commodities and finished goods, increased inspection procedures and

more restrictive import and export controls, changes in our operating expenses, including bunker prices, dry-docking and insurance

costs, performance of our charterers and other counterparties with whom we deal, timely delivery of vessels under construction within

the contracted price, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from

pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to

accidents or political events, and other important factors described from time to time in the reports filed by the Company with the

Securities and Exchange Commission.

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2Q 2013 highlights

• Net income of $25.1 million ($ 0.29/share) for the quarter

» Aggregate charter revenue of $153.7 million ($1.78/share)(1)

» EBITDA(2) of $121.5 million ($1.41/share)

• First quarter dividend of $0.39 per share

» Dividend yield(3) of approx. 9.9%

• Focus on accretive growth

» Nearly $1 billion of new investments in 2Q 2013

1) Charter revenues includes total charter hire from all vessels and rigs, including assets in 100% owned subsidiaries classified as ‘Investment in associates’ and accrued cash sweep income.

2) EBITDA is a non- GAAP measure and includes assets in 100% owned subsidiaries classified as 'Investment in associates'. For more details please see 2Q-13 press release Appendix 1: Reconciliation of Net Income

to EBITDA.

3) Quarterly cash dividend, annualized / SFL share price $15.69 (August 27, 2013)

Charter

revenue

2Q-13

OFFSHORE

52%

TANKERS

27%

LINER

13%

DRY BULK

8%

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Contracted 4 x 8,700 teu container vessels

• Vessels to be built at Daewoo Shipyard in Korea

» First class builder of container vessels

» High specifications and historical low prices

» Attractive delivery positions in 2014 and 2015

• Highly versatile vessel class suitable for most trade

patterns

» Fits the Panama Canal after the expansion is finished in

mid-2015

» Bosporus-max (easy access to Black Sea)

» High reefer capacity adds flexibility

» The vessels will be marketed for medium- to long-term

charters

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$600 million acquisition of West Linus

• West Linus

» Harsh environment jack-up drilling rig

» Under construction at Jurong Shipyard with delivery late 2013

» 5 year sub-charter to ConocoPhillips

• 15 year bareboat charter to North Atlantic Drilling Limited

» Adding >$800m to SFL’s charter backlog

» Frontloaded charter with >$400m payable first 5 years

» Put-option to NADL = limited residual exposure

• Financing

» $475m bank facility with limited recourse to SFL

» NADL will compensate us for interest rate volatility

» $125m equity investment by SFL in 2Q 2013

• Attractive return on invested equity

» $19m ($0.21/share) average net cash contribution per year during

sub-charter period

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$5.8 billion charter backlog(1)

1) Fixed charter backlog as of June 30, 2013, excluding future cash sweep/profit share, net of any seller’s credit and assuming certain call options are not exercised

Charterers by Mkt. Cap Remaining Charter Term(1)

5–10 yrs

27%

> 10 yrs

68%

0–5 yrs

5%

> $5bn

38%

< $5bn

48%

Private

14%

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$0m

$200m

$400m

$600m

$800m

$1,000m

$1,200m

$1,400m

04 05 06 07 08 09 10 11 12 2Q

13Loan comittment Scrap @ $400/ldt Outstanding loan

.

• Only abt. 50% ($218m) drawn on loan

facilities at quarter-end

• $203m available on revolving credits

• Loan amortization continues (>$70m/year)

• 22 vessels remaining

• Only double-hull VLCCs and Suezmaxes

• Cash sweep feature provides significant

upside potential if market recovers

Vessels on charter to FRO

Frontline vessels and financial exposure

Financial leverage on FRO vessels

Number of vessels to FRO Financing relating to FRO vessels

1) Source: Clarkson Research Services

2) Gross available amount per 2Q 2013 including undrawn amounts on the revolving credits

(1)

-

10

20

30

40

50

04 05 06 07 08 09 10 11 12 2Q

13Single Hull/OBO Suezmax VLCC

8 8

638

102

140

120

301

25

0

200

400

600

800

Fixed-rate

revenues

Cash

sweep

OPEX +

G&A

Net

interest

Loan

amort.

Net

contribution

$ mill.

Contributions from projects last 12 months(1)

1) Not as accounted per US GAAP – used as an internal guideline to assess the Company’s core business.

2) Fixed charter revenues and return on financial investments

3) Ordinary installments relating to the Company’s projects, assuming all loans fully drawn. Excluding prepayments when vessels are sold

• Large performing fleet with significant cash flow

» $523m EBITDA-equivalent last twelve months

» $102m net cash-flow from projects after interest and debt amortization

(3) (2)

$176m

$74m debt amortization

related to FRO vessels

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SFL operational performance

• Pro-forma illustration of cash flow (1)

» Not as accounted for under US GAAP

» Used as an internal guideline to assess the Company's performance

» Excluding extraordinary and non-cash items and profit share

2Q 2013 1Q 2013

$ mill. $/share $ mill. $/share

Fixed charter hire

VLCC 30.1 0.35 30.2 0.35

Suezmax 9.0 0.10 9.6 0.11

Chemical Tankers 1.5 0.02 1.5 0.02

Liner (Container and Car Carriers) 20.2 0.23 19.4 0.23

Drybulk incl. OBOs 12.9 0.15 13.4 0.16

Offshore 80.0 0.93 78.9 0.93

Sum fixed charter hire 153.7 1.78 152.8 1.79

Vessel operation expenses and G&A (34.8) (0.40) (33.6) (0.39)

Financial investments 2.5 0.03 2.4 0.03

Accumulated cash sweep/profit share 0.1 0.00 0.0 0.00

EBITDA including accumulated cash sweep 121.5 1.41 121.6 1.43

1) Including cash flow in subsidiaries accounted for as ‘investment in associate’

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Profit & loss INCOME STATEMENT Full year

(in thousands of $ June, 30 Mar, 31 2012

except per share data) 2013 2013 (audited)

Charter revenues - operating lease 36,455 35,541 137,035

Charter revenues - finance lease 42,364 43,545 190,198

Revenues classified as Repayment of investment in

finance leases (12,928) (13,999) (59,717)

Profit share income 100 - -

Cash sweep income - - 52,176

Total operating revenues 65,991 65,087 319,692

Gain on sale of assets and termination of charters - 18,025 47,386

Vessel operating expenses (23,898) (23,331) (94,914)

Administrative expenses (1,944) (1,967) (8,942)

Depreciation (14,304) (14,033) (55,602)

Total operating expenses (40,146) (39,331) (159,458)

Operating income 25,845 43,781 207,620

Results in associate 7,018 8,512 43,492

Interest income from associates and long term

investments 5,632 5,648 22,633

Interest income, other 1,808 1,712 4,541

Interest expense (18,281) (20,600) (88,985)

Amortization of deferred charges (2,712) (2,591) (5,866)

Other financial items (882) (2,106) (2,026)

Impairment adjustment to investments - - (3,353)

Mark to Market of Derivatives 6,636 (1,978) 7,780

Taxes - - -

Net income 25,064 32,378 185,836

Basic earnings per share ($) 0.29 0.38 2.31

Weighted average number of shares 86,135,604 85,248,056 80,594,399

Common shares outstanding 93,260,000 85,250,000 85,225,000

Three months ended

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Balance sheet BALANCE SHEET June, 30 Mar, 31 Dec 31, 2012

(in thousands of $) 2013 2013 (audited)

ASSETS

Short term

Cash and cash equivalents 41,023 64,820 60,542

Available for sale securities 66,690 56,488 55,661

Amount due from related parties 1,089 1,222 54,203

Other current assets 70,448 74,866 72,226

Long term

Newbuildings and vessel deposits 105,337 59,211 69,175

Vessels and equipment, net 1,026,111 1,040,261 1,041,126

Investment in finance leases 1,055,901 1,058,958 1,086,989

Investment in associate 29,549 243,456 232,891

Amount due from related parties - Long term 573,591 189,011 221,884

Deferred charges 47,755 49,956 23,740

Other long-term assets 63,756 51,316 54,652

Total assets 3,081,250 2,889,565 2,973,089

LIABILITIES AND STOCKHOLDERS’ EQUITY

Short term

Short term and current portion of long term interest bearing

debt 275,124 130,937 157,689

Other current liabilities 23,030 14,472 30,602

Amount due to related parties 12,208 11,191 9,227

Long term

Long term interest bearing debt 1,474,168 1,565,154 1,673,511

Other long term liabilities 87,479 105,882 107,292

Stockholders’ equity 1,209,241 1,061,929 994,768

Total liabilities and stockholders’ equity 3,081,250 2,889,565 2,973,089

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Liquidity and financing

• $261 million in total available liquidity

» $41 million cash and cash equivalents

» $220 million available under revolving credit lines

• $67 million in available for sale securities

» Mainly senior secured bonds

• Debt overview

» $1.7 billion consolidated interest-bearing debt at quarter

end, including $0.6 billion of senior unsecured notes

» $1.2 billion bank loans in subsidiaries account for as

‘Investment in associate’

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127241 198 183 183 160 100

39597

272 337 603

84

72

125 99

350

0

100

200

300

400

500

600

700

800

900

2H 13 2014 2015 2016 2017 2018 2019 2020-2025

$m

Bank debt - scheduled repayments Bank debt - amounts to be refinanced Senior notes

Staggered debt maturity(1)

1) Amounts also including debt in unconsolidated wholly owned subsidiaries

2) Including currently undrawn amounts available under revolving credits

• Several debt facilities have recently been refinanced at attractive terms

» 8.5% Senior notes due 2013 refinanced with $350 mill. convertible notes due 1Q 2018

» West Polaris refinanced with $420 mill. of bank debt with maturity in 1Q 2018

» West Hercules refinanced with $375 mill. of bank debt with maturity in 2Q 2019

• New $475 million loan facility in connection with the acquisition of West Linus

» Maturity in 2Q 2019

Ultra-deepwater rig West Taurus

will be refinanced later this year

(2)

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4 x 4,800 teu container vessels

• Expected delivery 4Q13 - 2Q14

• $161m remaining investment

• $147m available in a bank facility

Newbuilding overview

4 x 8,700 teu container vessels

• Expected delivery in 3Q14 – 1Q15

• $306m remaining investment

• Debt will be arranged in due course

Jack-up drilling rig

• Expected delivery in 4Q 2013

• $405m remaining investment

• $405m available in a bank facility

52

462

256

102

0

50

100

150

200

250

300

350

400

450

500

3Q 2013 4Q 2013 2014 2015

$ mill.

Committed financing Remaining ship yard installments

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Covenant compliance

1) Including $204 million in available undrawn credit lines with maturity in excess of .12 months

2) Excluding short-term portion of long-term debt

3) Including $145 million of deferred equity

Free cash(1) > $25m $245m

Working capital(2) > 0 $74m

Book equity ratio(3) > 20% 42%

Minimum Value Clauses (where applicable) In compliance

Ship Finance has never experienced any violations of bank covenants,

despite the volatility in the shipping and offshore markets

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Summary

1) EBITDA is a non- GAAP measure and includes assets in 100% owned subsidiaries classified as 'Investment in associates'. For more details please see 2Q-13 press release Appendix 1: Reconciliation of Net

Income to EBITDA.

2) Quarterly cash dividend, annualized / SFL share price $15.69 (August 27, 2013)

• Reported net income of $25m ($0.29/share) in the first quarter

» EBITDA(1) equivalent cash flow of $122 million ($1.41/share)

• Declared first quarter dividend of $0.39 per share

» 9.9% dividend yield(2)

• Premium access to capital

» More than $2 billion has been raised last 12 months

» Bank debt, bonds, convertible notes and equity

• Growth opportunities in multiple segments

» Acquisition of West Linus in combination with 15-year bareboat charter

» Contracted four 8,700 teu container vessels