Mosvold Supply Plc

Presentation, DnBNor Offshore Seminar

John Bernander, Oslo 5 March , 2008

2

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: 2x 6t � 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� DP: Kongsberg

3

Mosvold Supply AHTS with high-end specifications

Oct 09/Jun 10

Prep.II

1000

670

306

679

1090

1550

4000

4 x 350t

ø4m,length 8m

SWL 600t

2 x 350t

2

13

17

60

700

Triple

500t

270

28080

22

91

VS 491 CD

Mosvold Supply

Apr.09

Na

Na

800

180

660

800

2800

4925

Na

Na

Na

Na

2

Na

17

68

840

Na

500t

260

26500

23

94

Aker A122

Olympic

May.09May.09May.09Delivery

NaIIIIFIFI

10001000870Oilrec

670610680Rig Chain

175250300Dry Bulk

850500670Mud

7005001160Fresh Water

110015501450Fuel

390040004250Deadweight

Na2x3004x350tTowing Pins

Naø4.5m, length 6mø4m, length 8m.Stern Roller Dimention

NaSWL 600SWL 750Stern Roller

Na2x350t2x350tShark Jaws

222DP

131212Economical Speed

181718Max Speed

403560Accommodation

760675750Deck

TripleTripleTripleWinch Drum

500t500t500tWinch

240250300Bollard Pull

250002300028000BHP (horse power)

212222Breadth

87.48791Loa

UT 731 CDHavyard 845VS 491 CDDesign

FarstadHavilaSiem

Source: Mosvold and Pareto Securities

4

Mosvold Supply to meet future requirements

New requirements focusing on environment, capacity and safety� 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

�Mosvold Supply VS 491 CD� Double hull construction (DnV Clean Design notation)

� Safeguarding the environment from possible leakage� Ships prepared for ROV � 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

►The industry realized, only to late, that CD and larger vessels would be the consequence of the new requirements

Source: R. S. Platou

5

Mosvold Supply Construction program

� Favorable payment structure securing commitment from Batamec Shipyard� 20% at contract signing� 10% at key equipment delivery� 70% at final delivery

� Contract price TBN 1 and 2 , USD 77.350 mill. / to be settled 60/40 EURO/USD conversion rate 1.34� Contract price TBN 3 USD 33 mill + EURO 36, 3 mill� Contract price TBN 4 USD 33.8 mill +EURO 37, 2 mill

� Refund guarantees from Bangkok Bank (BBB+)Standard Chartered Bank Plc ( A )

2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11

AHTS TBN 1

AHTS TBN 2

AHTS TBN 3

AHTS TBN 4

70% payment20% payment 10% payment

20% payment 10% payment 70% payment

20% payment 10% payment 70% payment

20% payment 10% payment 70% payment

6

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 9001:2000 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)

Left to right Mr. Tri Prasetiyo, Surveyor, Mr. Michael Palfreeman, Head of the Site Supervision Team, and Per Tønnessen Mosvold Shipping AS,

Technical Director and Project Manager for Mosvold Supply PLC.

Mosvold Site Supervison Team

8

Block 104 Fore & 105 Aft , 29 Feb 2008

9

Worldwide floater supply and demand forecast

Source: ODS-Petrodata

Worldwide

0

50

100

150

200

250

300

1Q94 1Q96 1Q98 1Q00 1Q02 1Q04 1Q06 1Q08 1Q10 1Q12 1Q14

Rig

s

Total Supply

Effective Supply

Historical Demand

Mid-Case

Low-Case

High-Case

10

Historical number of AHTS per rig

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.5

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

Vessels per rig

Sources: DnB NOR Markets estimates, Clarckson and ODS - Petrodata

• The number of vessels per rig is increasing due to:

• Other demand, for instance FPSO and construction related work

• More activity on deeper water – longer distances to tow the rigs

• High day-rates for rigs: Important that lack of vessels does not slow mob/demob

Need for more vessels per rig

11

World AHTS fleet is old (22 years avg age)- New vessels substantially larger and more capable than older vessels

Source: Clarksons / JGO Shipbrokers / Pareto estimates

0

5

10

15

20

25

30

35

40

45

50

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

AHTS > 10,000 BHP AHTS > 20,000 BHP

Number of newbuilds

12

6

4

6

4 4 4

2

6

1 1

43

2 2

4 43 3

21

5

2

6

21

32 2

4

3

2 2

1

2

2

3

1 1

23

23

36

7

2

8

4

25

1

6

41

1

3

5

5

2 21 1 1 1 1 1 1 1

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

FMA M J J A S ON D J F MA M J J A S ON D J F MAM J J A SOND J FM AM J J A SOND J FM AM J J A S O

2008 2009 2010 2011 2012

NO. OF VESSELS

WORLDWIDEAHTS DELIVERY SCHEDULE

91 vessels 10-15999 BHP & 99 vessels 16000+ BHP

10-15999 BHP 16000+ BHP Updated: 01/08

13

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

14

NORTH SEA

AHTS 16000+ BHP Spot Fixtures(Reported and Estimated)

Full year 2005 average: GBP 25,840 / NOK 299,680

Full year 2006 average: GBP 49,400 / NOK 572,980

Year-to-date 2007 average: GBP 52,372 / NOK 607,511

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

100.000

110.000

120.000

130.000

140.000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51

We ek in 2005/2006/2007

GBP/DAY

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

800.000

900.000

1.000.000

1.100.000

1.200.000

1.300.000

1.400.000

1.500.000

1.600.000

NOK/DAY

Weekly Average 2005 Weekly Average 2006 Weekly Average 2007

Update d: 12/31/07

15

North Sea supply vessels

Current fleet of North

Sea supply vessels is at

266 units, +3 w/w.

North Sea supply - demand - ut ilisation

95%

88% 90%94%

91%88% 88%

92%95% 95%

92%

0

50

100

150

200

250

300

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Dem

and/s

upply

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Average demand Average supply Average utilisation

Source: Carnegie Research

AHTS spot dayrates N orth Sea

0

250 000

500 000

750 000

1 000 000

1 250 000

1 500 000

1 3 5 7 9

11

13

15 17

19

21

23

25

27

29

31

33 35

37

39

41

43

45

47

49 51

53

W eek

NO

K/d

70%

75%

80%

85%

90%

95%

100%

2007 2008 2008 spot rate assumptions Utilisat ion

Source: Carnegie Research, ODS Petrodata, Fearnley Offshore

PSV spot dayrates North Sea

0

100 000

200 000

300 000

400 000

500 000

1 3 5 7 9

11

13

15

17

19 21

23

25

27

29 31

33

35

37

39

41

43

45

47

49

51

53

Week

NO

K/d

70%

75%

80%

85%

90%

95%

100%

2007 2008 2008 spot rate assumptions Util isation

Source: Carnegie Research, ODS Petrodata, Fearnley Offshore

16

Consolidation opportunities ahead- Fragmented market creates room for consolidation

- New, large AHTS in favor

Source: Petrodata / Platou / Farstad / Pareto

17

Investor friendly and cost-effective company set up

� Mosvold Shipping Holding owned by founders, which owns 22.9% of Mosvold Supply

� No 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)

� Management agreement with Mosvold Management (100% owned by Mosvold Shipping Holding )� Fixed price mgmt contract (G&A/accounting/reporting) of USD 42,500 per vessel per month

- 12 months cancellation period

� Mosvold Management responsible for construction and building supervision at estimated cost of USDm 1.2 per vessel (may be subcontracted to reputable technical manager)

� Post-delivery commercial vessel fixture commission of 1.25%

� USDm 2 project development costs first 2 vessels + 1% commission on shipbuilding contracts

� 1% commission on sale of vessel(s) or change of control in Mosvold Supply (> 30%)

Mosvold Supply PlcCyprus

Mosvold Supply II Mosvold Supply III

100%100%

Corporate set-up:

22.9%

Mosvold Shipping Holding LimitedCyprus

Mosvold Supply I Mosvold Supply IV

Mosvold

Management Ltd

18

List of shareholders as per 28. February 2008

100,00 %26 500 000 Total

18,92 %5 012 506 Others

81,08 %21 487 494 Total 10 largest

2,83 %749 600 Frode Teigen

3,30 %874 400 Saga Shipping and Trading SA

4,15 %1 098 800 Otto Investment Limited

5,24 %1 388 000 Bjørgvin AS

5,81 %1 540 000 Ole Teigen

6,84 %1 811 300 Cheyne Global Catalyst Fund LP

7,42 %1 965 500 Credit Suisse Sec. Europe Ltd.

8,94 %2 369 600 Deutche Bank AG Lon SA

13,15 %3 483 700 Morgan Stanley & Co Client Equity acc.

23,42 %6 206 594 Mosvold Shipping Holding Limited

% of totalNo. of shares

19

Mosvold – an experienced shipping and offshore services group

� The Mosvold family has continuously been active in shipping since 1910 .Has owned and operated vessels in many segments (tankers, dry bulk, reefers and passenger ferries.

� First investment in offshore: Part ownership of semi early 80ies

� Acquired 3 modern J/Us from Keyes Offshore in 1989

� Mosvold Shipping was IPO‘d 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. The baredecks are 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

� Mosvold with proven track record demonstrating opportunistic approach and shareholder value creation

Confidential

20

Mosvold Supply Plc Earnings Scenarios (Fully Invested)

Pareto 11E 3yr Avg* 2007 Real*

Day Rates NOK/day 275 000 490 000 607 500

USD/day 50 000 78 526 103 669

Utilisation 100 % 100 % 100 %

Daily opex ($10 000) ($10 000) ($10 000)

No of vessels 4,0 4,0 4,0

PROFORMA P&L

Vessel EBITDA USDm 58 100 137

SG&A " (2) (2) (2)

EBITDA " 56 98 135

Depreciation (25yr) " (14) (14) (14)

Operating profit " 43 84 121

Net financials fully invested (yr1) " (19) (19) (19)

Net Profit (after tax) " 24 65 102

Cash Earnings " 37 79 116

Maintenance capex " (2) (2) (2)

Free cash flow (pre debt amortisation) " 35 77 114

Free cash flow (post debt amortisation) " 24 66 103

EPS NOK 4,9 13,6 21,2

Share price NOK 14,0 14,0 14,0

No of shares (fully invested) mill 26,5 26,5 26,5

Market capitalisation USDm 67 67 67

Net debt fully invested " 311 311 311

Enterprise Value " 378 378 378

EV/EBITDA 6,7 3,9 2,8

P/E 2,8 1,0 0,7

RoE (on mkt cap) 35,1 % 96,8 % 151,3 %

FCF yield (pre debt amortisation) 11 % 25 % 37 %

Net interest bearing debt/EBITDA 5,5x 3,2x 2,3x

EBITDA/Net interest 3,0x 5,2x 7,1x

* Platou 2007 Offshore Report