Www.polarcus.com 1 8th Annual Marine Money Gulf Ship Finance Conference Wednesday, 7th March 2012, Emirates Towers Hotel – Dubai.

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Presentation transcript:

1 8th Annual Marine Money Gulf Ship Finance Conference Wednesday, 7th March 2012, Emirates Towers Hotel – Dubai

2 Polarcus – a seismic major Major provider of marine 3D seismic services globally Specialized Arctic offering with incorporated technologies 500+ highly experienced seismic and maritime employees Offices in Dubai, London, Houston, Singapore, and Rio Listed on Oslo Børs (OAX:PLCS); Market Cap USD~500 M ~12% market share in 2012 POLARCUS ALIMA Polarcus launched 2008 Polarcus Nadia Polarcus Naila Polarcus Asima Polarcus Alima Polarcus Samur Polarcus Selma Q2– Polarcus Adira Q1– Polarcus Amani

3 RIGHTPLAN, RIGHTSIZE, RIGHTDESIGN FleetKey Features All new and uniform fleet Reduced noise and vibrations Ice class 1A (except Nadia & Naila ICE C) Improved transit performance New builds on time and on budget Polarcus launched 2008 Polarcus Nadia Polarcus Naila Polarcus Asima Polarcus Alima Polarcus Samur Polarcus Selma Q2– Polarcus Adira Q1– Polarcus Amani POLARCUS NADIA & POLARCUS NAILA 12 Streamer 3D vessel POLARCUS ASIMA & POLARCUS ALIMA 12 Streamer 3D vessel POLARCUS SAMUR & Vyacheslav Tikhonov 8 Streamer 3D vessel POLARCUS AMANI & POLARCUS ADIRA Streamer 3D vessel

Launch 2008 Founders capital 162M HY 55M CB 35M Equity 50M Lehman Brothers went bust restructuring with sale of 2 vessels Bank debt 80M IPO 125M in equity USD 410M fleet bank facility HY 80M Bank debt 55M Equity 65M Equity 60M CB 125M HY 40M Equity 40M Sale Lease back 180M (2 x 90M) Raising 1.45 $ billion in Historically bad financial climate

5 Founders equity USD 162 million NOK 10.4/share or USD 2/share Zickerman family Drydocks World Dubai Management Launch 2008 Founders capital 162M HY 55M CB 35M Equity 50M restructuring with sale of 2 vessels Bank debt 80M IPO 125M in equity USD 410M fleet bank facility HY 80M Bank debt 55M Equity 65M Equity 60M CB 125M HY 40M Equity 40M Sale Lease back 180M (2 x 90M) Polarcus Launched April 2008 Drydocks World - Dubai

6 Sale lease back Sale lease back on the first two vessels USD 180 million Implied interest rate ~12% Loan structure backed by Export Credit Agency Launch 2008 Founders capital 162M HY 55M CB 35M Equity 50M restructuring with sale of 2 vessels Bank debt 80M IPO 125M in equity USD 410M fleet bank facility HY 80M Bank debt 55M Equity 65M Equity 60M CB 125M HY 40M Equity 40M Sale Lease back 180M (2 x 90M)

7 July 2008 – 2 nd round of financing HY 55 – 13%, first pri. Samur CB 35 – 8.5%, conversion +30% Equity USD 50 million NOK 12/share or USD 2.4/share Just in time before Lehman Brothers Launch 2008 Founders capital 162M HY 55M CB 35M Equity 50M restructuring with sale of 2 vessels Bank debt 80M IPO 125M in equity USD 410M fleet bank facility HY 80M Bank debt 55M Equity 65M Equity 60M CB 125M HY 40M Equity 40M Sale Lease back 180M (2 x 90M)

8 Summer Restructuring Launch 2008 Founders capital 162M HY 55M CB 35M Equity 50M restructuring with sale of 2 vessels Bank debt 80M IPO 125M in equity USD 410M fleet bank facility HY 80M Bank debt 55M Equity 65M Equity 60M CB 125M HY 40M Equity 40M Sale Lease back 180M (2 x 90M) Sold 2 vessels with a buyback option at cost + USD 5 million Transaction backed by Founders

September 2009 – Bank debt USD 80 million for Asima CIRR financing (OECD) Fixed 3.93% plus bank margin Maturity 12 years Launch 2008 Founders capital 162M HY 55M CB 35M Equity 50M restructuring with sale of 2 vessels Bank debt 80M IPO 125M in equity USD 410M fleet bank facility HY 80M Bank debt 55M Equity 65M Equity 60M CB 125M HY 40M Equity 40M Sale Lease back 180M (2 x 90M)

10 IPO – 30 September 2009 USD 125 million NOK 4.5/share or USD 0.77/share 1 st IPO in Norway, 3 rd in Europe since financial crisis started Launch 2008 Founders capital 162M HY 55M CB 35M Equity 50M restructuring with sale of 2 vessels Bank debt 80M IPO 125M in equity USD 410M fleet bank facility HY 80M Bank debt 55M Equity 65M Equity 60M CB 125M HY 40M Equity 40M Sale Lease back 180M (2 x 90M)

11 October 2010 – Buyback Alima (1 st option) USD 55 million Bank debt fixed 3.93% (CIRR), 12 years USD 80 million HY, 2 nd Pri 12.5%, 5 years Equity USD 65 million NOK 5.15/ share or USD 0.90/share Launch 2008 Founders capital 162M HY 55M CB 35M Equity 50M restructuring with sale of 2 vessels Bank debt 80M IPO 125M in equity USD 410M fleet bank facility HY 80M Bank debt 55M Equity 65M Equity 60M CB 125M HY 40M Equity 40M Sale Lease back 180M (2 x 90M)

12 November 2010 – Ordering vessels 7 & 8 Equity USD 60 million NOK 5.30/share or USD 0.93/share To be built in Norway due to 80% financing available through Export Credit Agency Cost per vessel USD 168 million Launch 2008 Founders capital 162M HY 55M CB 35M Equity 50M restructuring with sale of 2 vessels Bank debt 80M IPO 125M in equity USD 410M fleet bank facility HY 80M Bank debt 55M Equity 65M Equity 60M CB 125M HY 40M Equity 40M Sale Lease back 180M (2 x 90M)

13 February 2011 – Buyback of 2 nd option CB USD 125 million 2.875%, conversion price 32.5% Vessel to be bare boated to Sovcomflot from delivery in August 2011 Bareboat EBITDA 25 million/year Launch 2008 Founders capital 162M HY 55M CB 35M Equity 50M restructuring with sale of 2 vessels Bank debt 80M IPO 125M in equity USD 410M fleet bank facility HY 80M Bank debt 55M Equity 65M Equity 60M CB 125M HY 40M Equity 40M Sale Lease back 180M (2 x 90M)

14 Summer 2011 – The Quantum Leap USD 410 million Fleet bank facility 5.6% fixed interest, 12 years maturity Structured with security for 5 vessels including the 2 new builds Refinancing of the 13% HY Average interest cost post drawdown ~7.5% Launch 2008 Founders capital 162M HY 55M CB 35M Equity 50M restructuring with sale of 2 vessels Bank debt 80M IPO 125M in equity USD 410M fleet bank facility HY 80M Bank debt 55M Equity 65M Equity 60M CB 125M HY 40M Equity 40M Sale Lease back 180M (2 x 90M)

15 October 2011 – USD 80 million Equity USD 40 million NOK 4.0/share (premium) NOK 230 million HY (USD 40m) 14% interest Completes the Capex needs for new builds Launch 2008 Founders capital 162M HY 55M CB 35M Equity 50M restructuring with sale of 2 vessels Bank debt 80M IPO 125M in equity USD 410M fleet bank facility HY 80M Bank debt 55M Equity 65M Equity 60M CB 125M HY 40M Equity 40M Sale Lease back 180M (2 x 90M)

16 Improved financial position Total financing of USD 1.45 billion secured Equity USD 507 million Debt USD 960 million Fleet bank facility of USD 410 million signed in Q Average weighted interest rate for the group ~7.5%

17 PLCS – Share price movements IPO Reverse split 2:1 IPO Reverse split 2:1 Founders capital Founders capital USD 140 M MACONDO Polarcus Alima Polarcus Alima Polarcus Amani Polarcus Adira Polarcus Amani Polarcus Adira Polarcus Selma V. Tikhonov Polarcus Selma V. Tikhonov Private Placement Private Placement Fleet bank facility Fleet bank facility

18 Lessons learnt Utilize the open windows In the financial markets Proactive Investor Relation strategy Investigate and understand Export Credit Agency funding Prepare for the Black swans Hug a banker