1. Norwegian Maritime Solutions presents Shipinvest40041 Shipinvest4004 The leading ship finance software Norwegian Maritime Solutions John Colletts alle 117 0870 Oslo, Norway Tel: + 47 22 95 08 70 e-mail: erikst@online.no www.nms2002.com

2. Norwegian Maritime Solutions presents Shipinvest40042 Shipinvest4004 is a unique tool for analysis and appraisal of ship and rig investments

3. Norwegian Maritime Solutions presents Shipinvest40043 Shipinvest4004 comprises of three modules INVESTMENT ANALYZER CORPORATE CONSOLIDATION HISTORICAL ANALYSIS FAST PROJECT STANDARD PROJECT Equivalent to ”back-of-an-envelope” calculation. Produces a calculation in 30 seconds Allows a tailormade input with a whole range of options: several loans, equity payments and dividends, type of loan, loan details etc Calculating numbers for a range of vessel investments. This will show consolidated figures for cashflow, loan payments and other. To be used for corporate consolidation or ”individual consolidation” for e.g. KS investors having various % equity in the ships User can specify his own timeseries for various ship types: TC rate, oper cost, NB cost, S/H values, scrap prices etc in order to calculate how good or bad certain investments have been on a historical basis. Also useful to compare statistical expectation of return in various segments

4. Norwegian Maritime Solutions presents Shipinvest40044 What is Shipinvest4004 ? Shipinvest4004 is a program for investment analysis of shipping projects. Asset management functions include: –When to buy –When to sell –How to finance Shipinvest4004 will quickly calculate key figures such as: –Annual cash flow projects –Break even tc rates –Required sales prices at end of a cp period –Internal rate of return –NPV –Sensitivity Additionally Shipinvest4004 includes two modules that handle: –Corporate Consolidation Allow the user to consolidate single ship investment projects to explore consolidation effects –Historical analysis Users can add their own time series for different ship types where one can analyze the historical return on investments. This feature is useful to dtusy statistical expectations and variances in the sectors.

5. Norwegian Maritime Solutions presents Shipinvest40045 Fast Project – all input on one screen – Results in 30 seconds !

6. Norwegian Maritime Solutions presents Shipinvest40046 Annual cashflow

7. Norwegian Maritime Solutions presents Shipinvest40047 Monthly cashflow – if you need it

8. Norwegian Maritime Solutions presents Shipinvest40048 Required TC rates to yield 12 % (*) IRREQ (*) If 12 % is what the user has specified as target return

9. Norwegian Maritime Solutions presents Shipinvest40049 Internal Rate of Return as a function of Residual value IRR – Three numbers: IRR on TOTAL capital: Is the rate of return for the investment calculated as if the entire ship is purchased on a cash basis (i.e. no financing) IRR on EQUITY The rate of return based on the equity put into the project. This will often show the effect of gearing up the project. IRR on EQUITY modified This assumes that cash generated by the project is NOT taken out of the project but that proceeds are kept in a bankaccount where it earns the interest rate that is specified input. This method is a lot more ”sober” than the standard IRREQ.

10. Norwegian Maritime Solutions presents Shipinvest400410 Value of vessel = Discounted value of operating results + expected residual value

11. Norwegian Maritime Solutions presents Shipinvest400411 Banker’s report: Bank net exposure in vessel

12. Norwegian Maritime Solutions presents Shipinvest400412 Pro forma Balance sheet and P&L statements

13. Norwegian Maritime Solutions presents Shipinvest400413 Visual presentation: Annual operating result

14. Norwegian Maritime Solutions presents Shipinvest400414 Visual presentation: Required sales price

15. Norwegian Maritime Solutions presents Shipinvest400415 Break even tc rates versus forecasted rates

16. Norwegian Maritime Solutions presents Shipinvest400416 Visual presentation: NPV

17. Norwegian Maritime Solutions presents Shipinvest400417 Visual presentation: Major Cost Items

18. Norwegian Maritime Solutions presents Shipinvest400418 Visual presentation: Required TC rates for the 10 years period

19. Norwegian Maritime Solutions presents Shipinvest400419 Visual presentation: Return on Capital employed

20. Norwegian Maritime Solutions presents Shipinvest400420 Historical analysis: IRR for a Panmax BC

21. Norwegian Maritime Solutions presents Shipinvest400421 Historical analysis: NPV for a panmax BC

22. Norwegian Maritime Solutions presents Shipinvest400422

23. Norwegian Maritime Solutions presents Shipinvest400423 Historical analysis: 10 years old in % of NB price for a panmax BC

24. Norwegian Maritime Solutions presents Shipinvest400424 Historical analysis: Payback period for a panmax BC

25. Norwegian Maritime Solutions presents Shipinvest400425 Historical analysis: 12 months tc rate

26. Norwegian Maritime Solutions presents Shipinvest400426 Historical analysis: Database for sales

27. Norwegian Maritime Solutions presents Shipinvest400427 Corporate consolidation: Individual ship investments to be consolidated

28. Norwegian Maritime Solutions presents Shipinvest400428 Corporate consolidation: Graphical results

29. Norwegian Maritime Solutions presents Shipinvest400429 Corporate consolidation: Annual cashflows

30. Norwegian Maritime Solutions presents Shipinvest400430 Corporate consolidation: Break down on the individual investments

31. Norwegian Maritime Solutions presents Shipinvest400431 Investment case: Buying a supramax ‘Free Lady’ Major importance –Size: 50,000 dwt –Built: 1993 (I.e. vessel is 18 years old) –Date of purchase: October 2011 –Lifetime: Assume 25 years (i.e. 7 years remaining life) –Purchase price: Between 22 and 23 mill USD –Scrap value estimate: 5 mill USD (at the end of 7 years operation) –Finance: 70 % / 7 years repayment / 5 % interest rate –Operating costs: 5,000 USD/day (including allocation for drydocking –Increase in operating costs: 3 % p.a. Minor importance: –Operating days p.a.: 350 days –Interest rate on cashflow: 3 % p.a. –Nr of installments/interests terms p.a.: 2 (i.e. every 6 months)

32. Norwegian Maritime Solutions presents Shipinvest400432 Investment case: Buying a supramax ‘Free Lady’ Key questions to answer: –Major issues to address: Is this a ‘good’ investment ? –What is a ‘good investment’ ? –What tc rate do I need to get my required internal rate of return. Assume I need IRR on equity of 12 % p.a. –Can I obtain the required tc rate in today’s market ? –If I cannot get the required tc rate today, can I hope for an increase in the value after 2,3 or 4 years, and in such case what price do I need to recover my investment –Minor issues Do I run into periods with negative cash, and if so, how can I cover such deficits (additional lending ?) Do I get a positive NPV ? How sensitive are some of my assumptions ?