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Geir Sjurseth, General Manager DVB Group Merchant Bank (Asia) Ltd Managing Director Offshore Support Group

The OSV Market Outlook & Financing Dubai 6 March 2013

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Introducing DVB

DVB Overview

European Company (SE), listed on the Frankfurt Stock Exchange

95% owned by DZ Group, the largest co-operative banking group

in Germany

Over 500 professionals, all specialising in transport finance

Over 500 clients worldwide, all active in the transport sector

Market Approach Aviation Shipping Land Transport

EUR 1.11bn Market Capitalisation

$ 28.1bn / EUR 21.7bn Total Loan Book

EUR 110.4m / 104.0m Net Profit FY 2011 / FY 2010

19.7% Basel II Core Capital Ratio

A+ Long Term Debt (Standard & Poors)

A-1 Short Term Debt (Standard & Poors)

Key Facts

DVB Global Offshore Support Group

Structured Asset Financing

Corporate Advisory

Risk Distribution

Loan Participations

Asset Management

Asset & Market Research

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Overview of the Offshore Support Sector

Offshore Support Segments

Crew Accommodation

Jack-up Platforms

Semisubmersible Platforms

Mono-hull Vessels

Accommodation Barges

Hybrids

Accommodation

Seabed Installation

Diving Support Vessel (DSV)

Lay Support Vessel

ROV Support Vessel

Lay Barge

Reel Lay Vessel

Well Intervention Vessels

Derrick Barge

Pipe Carrier

Subsea & Construction

Hydrocarbon Exploration

Seismic Survey Vessel (SSV)

Electro Magnetic Survey Vessel

Seismic

Supply & Anchor Handling

OSVs

Anchor Handling Tug (AHT)

Anchor Handling, Tug & Supply (AHTS)

Platform Supply Vessel (PSV)

Crew Boat

Stand-by Vessel

Emergency Response Rescue Vessel (ERRV)

Utility Vessel

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Outlook and financing

PSVs - large scale ordering, to end soon, soft values, a lot for sale

AHTS silence across the segments

Subsea/construction/seismic bonanza?

Accommodation/lift boats a lot of NBs; start ups; limited transparency good prospects but many hitting the market in 2015..

BRAZIL - cooling off

In general - Fewer banks but preferential treatment for offshore, terms to remain tight

Local v international banks - the regional banks are there for local business

S&LBs many around, focusing primarily on smaller/mid sized AHTS; PSVs, often yard re sales; equity returns between 15-18%

Bonds (and bank) - Oslo & NY; bonanza; credit quality is fast diluting

Market trends Bank, S&LB & bond financing

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AHTS Prospects by Region and Vessel Type

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PSV Prospects by Region and Vessel Type

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Unsustainable Disconnects?

Unparalleled optimism: new finds in shallow and deep water, a record jack up/drillship orderbook

E&P spending 2013: to reach $367bn or 7-9% for international spending (i.e. excluding US spending, which is growing at a slower pace due to low gas prices)

Oil prices: High Vessels: AHTS, subsea & construction markets, seismic moving towards a fine market equilibrium; while the larger PSV segment is facing oversupply

NB/yard prices: softer, very good payment terms is luring owners

Sovereign debt crisis: No near term solution Shipping crisis: Too much supply, too little cargo, crisis to continue with more defaults and bankruptcies

Banking crisis: Will get worse, with Basle III coming, less capacity available

OIL: In abundance, shale gas/oil to add more supply

World growth: Sluggish and extremely fragile Brazil: Is cooling off; units are redelivered, more off hire, delayed charter payments

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Choppy waters ahead?

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Thank you for your attention! geir.sjurseth@dvbbank.com

The OSV Market Outlook & FinancingDubai 6 March 2013Introducing DVBOverview of the Offshore Support SectorOutlook and financingAHTS Prospects by Region and Vessel TypePSV Prospects by Region and Vessel TypeUnsustainable Disconnects?Choppy waters ahead? Slide Number 9