Deep Sea Supply Q4 2012 results presentation

4Q|12Deep Sea Supply Plc

Presentation27 February 2013

3

HIGHLIGHTS 4Q|12• Announcing joint venture in Brazil

• Increased revenue, but soft North Sea spot market and late commencement Sea Brasil

• New long term contracts in Asia

• New medium term contracts in Brazil

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Deep Sea Supply PLC

DOF ASA Siem Offshore Inc.

Havila Shipping ASA

Solstad Offshore ASA

Farstad Shipping ASA

Eidesvik Offshore ASA

REM Offshore ASA

Share price and total return since listing

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Close Price Total Return

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Sep-05 Jan-06 May-06 Sep-06 Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13

SHARE PRICE DEVELOPMENT AND SHARE TURNOVER

2012 average monthly volume and turnover velocity

(Unaudited figures in USD 1,000) 4Q 2012 4Q 2011 3Q 2012

Operating revenue 38 934 32 115 35 457

Vessel operating expenses (20 065) (16 123) (16 913)

Other operating expenses (3 496) (3 273) (2 681)

Other gains 120 59 143

Gain on sale 1 123 1 190 1 123

EBITDA 16 615 13 966 17 130

Depreciation (9 497) (8 260) (8 614)

EBIT 7 118 5 707 8 516

Financial income 176 130 45

Financial expenses (6 876) (6 219) (6 217)

Net currency items 635 (1 025) 676

Change in value of financial derivatives 70 106 50

Net financial items (5 995) (7 008) (5 446)

Pre-tax result 1 123 (1 301) 3 070

Taxes (287) (12) (43)

Profit for the year 837 (1 314) 3 027

Earnings per share 0,01 (0,01) 0,02 Earnings per share diluted 0,01 (0,01) 0,02 Cash flow per share 1) 0,08 0,06 0,09

1) Profit before taxes+depreciation-unrealized gain on currencies

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INCOME STATEMENT 4Q 2012 4Q|12

(Unaudited figures in USD 1,000) YTD 2012 YTD 2011

Operating revenue 124 140 115 902

Vessel operating expenses (66 345) (72 124)

Operating lease 0 (1 684)

Other operating expenses (12 356) (10 911)

Other gains 566 499

Gain on sale 4 492 29 017

EBITDA 50 497 60 699

Depreciation (32 304) (28 826)

EBIT 18 193 31 873

Financial income 351 392

Financial expenses (23 802) (26 004)

Net currency items 1 483 (5 579)

Change in value of financial derivatives 175 129

Net financial items (21 793) (31 062)

Pre-tax result (3 599) 810

Taxes (912) (21)

Profit for the year (4 511) 789

Earnings per share (0,04) 0,01 Earnings per share diluted (0,04) 0,01 Cash flow per share 1) 0,21 0,28

1) Profit before taxes+depreciation-unrealized gain on currencies

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INCOME STATEMENT 2012 4Q|12

Development per quarter(Figures in USD 1,000)

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REVENUE AND EBITDA DEVELOPMENT 2012

21 411

28 339

35 457

38 934

2 500

10 000

17 500

25 000

32 500

40 000

Q1 Q2 Q3 Q4

Operating Revenue

EBITDA

4Q|12

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Office PSV AHTSAREA OF CURRENT OPERATION

(Unaudited figures in USD 1,000) YTD 2012 YTD 2011

Cash flows from operating activities

Cash generated from operations 47 985 16 725

Net cash generated from operations 47 985 16 725

Cash flows from investing activities

Acquisitions and upgrades of property, plant and equipment -92 186 -74 410

Disposals of property, plant and equipment 0 136 860

Net cash used in investing activities -92 186 62 450

Cash flows from financing activities

Interest paid -20 774 -26 559

Proceeds from borrowings 105 349 72 767

Repayments of borrowings -40 270 -126 996

Net cash used in financing activities 44 305 -80 788

Total changes in liquidity in the Year 104 -1 613

Cash and cash equivalents at beginning of Year 40 318 41 932

Cash and cash equivalents at end of Year 40 422 40 318

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CASH FLOW STATEMENT 4Q|12

(Unaudited figures in USD 1,000) 31.12.2012 31.12.2011

Non-current assets

Vessels cost 638 977 554 935

Construction contract 0 17 659

Equipment 822 643

Total property, plant and equipment 639 799 573 237

Deferred income tax 605 308

Other long term receivables 327 647

Investment in associates 1 194 594

CIRR deposit 35 558 37 796

Total non-current assets 677 483 612 582

Current assets

Inventories 2 679 5 062

Other short term receivables 9 541 6 468

CIRR deposit 5 215 4 839

Freight income not received 30 010 29 475

Cash and cash equivalents 40 423 40 318

Total current assets 87 867 86 162

Total assets 765 350 698 744

(Unaudited figures in USD 1,000) 31.12.2012 31.12.2011

Liabilities

Borrowings 468 579 403 299

CIRR loan 35 509 37 790

Deferred gain 27 157 31 561

Long term tax liabilities 0 873

Other long term liabilities 195 124

Total long term liabilities 531 439 473 647

Borrowings 40 436 38 143

CIRR loan 5 215 4 839

Trade and other payables 23 667 13 307

Deferred gain 4 658 4 812

Tax payable 1 266 881

Other short term liabilities 1 660 400

Total short term liabilities 76 903 62 382

Total liabilities 608 342 536 029

Shareholders equity

Share capital, share premium and treasury shares 11 445 11 205

Retained earnings and other reserves 145 564 151 510

Total shareholders equity 157 007 162 714

Total equity and liablities 765 350 698 744

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3Q|11BALANCE SHEET

The largest shareholders as per 21st February 2013 registered in VPS

Citizen No. of shares: %

HEMEN HOLDING LIMITED CYP 44 583 853 35,05%

SKAGEN KON-TIKI NOR 12 229 431 9,61%

PERESTROIKA AS NOR 5 453 897 4,29%

DNB NOR MARKETS NOR 3 360 105 2,64%

JPMCB RE SVENSKA HANDELSBANKEN SWE 2 168 050 1,70%

HOLBERG NORGE NOR 2 162 486 1,70%

UBS AG GBR 1 715 679 1,35%

UTHALDEN A/S NOR 1 575 000 1,24%

NORDEA BANK NORGE ASA NOR 1 470 000 1,16%

CENTRA INVEST AS NOR 1 421 643 1,12%

PACTUM AS NOR 1 325 000 1,04%

ANAXO CAPITAL AS NOR 1 220 000 0,96%

DNB NOR SMB NOR 1 000 000 0,79%

SOLSTEN INVESTMENT FUND GER 900 000 0,71%

DELPHI Norge NOR 900 000 0,71%

MORGAN STANLEY & CO USA 805 367 0,63%

BNP PARIBAS FRA 800 000 0,63%

MP PENSJON PK NOR 658 800 0,52%

LØREN HOLDING NOR 620 626 0,49%

VERDIPAPIRFONDET HANDELSBANKEN SWE 600 000 0,47%

Total 20 largest shareholders: 84 969 937 66,80%

Total other shareholders: 42 227 257 33,20%

Total number of shares: 127 197 194 100,00%

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SHAREHOLDERS 4Q|12

Expected revenue from term contracts per quarter

(Figures in USD 1,000)

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CONTRACT BACKLOG

Vessel Type Vessels on Term Contracts as of 01.02.13 Contract backlog

AHTS 10 of 14 Vessels USD 200M

PSV 9 of 9 Vessels USD 127M

Total 19 of 23 Vessels USD 327M

4Q|12

*Excluding Sea Weasel, which is owned by Malaysian J.V.

Contract Backlog Deep Sea Supply Fleet as per Feb 2013*

Firm Option Spot 13

FLEET LIST & CHARTER STATUS AS PER FEBRUARY 2013Vessel Type Bhp/Dwt Year Built Trading Area 2013 2014

AHTS Vessels Q1 Q2 Q3 Q4

Sea Lynx KMAR 404 15000 BHP 1999 North Sea

Sea Bear KMAR 404 15000 BHP 1999 Brazil/North Sea

Sea Tiger KMAR 404 15000 BHP 1999 Brazil

Sea Panther KMAR 404 15000 BHP 1999 Brazil

Sea Leopard KMAR 404 15000 BHP 1998 Brazil

Sea Cheetah Khiam Chuan 15000 BHP 2007 Brazil

Sea Jaguar Khiam Chuan 15000 BHP 2007 Brazil

Sea Ocelot Khiam Chuan 10800 BHP 2007 Asia

Sea Eagle I Khiam Chuan 12000 BHP 2009 Malaysia

Sea Weasel Seatech P-729 6500 BHP 2009 Malaysia

Sea Fox Seatech P-729 6800 BHP 2011 Brazil

Sea Jackal Seatech P-729 6800 BHP 2011 Brazil

Sea Badger Seatech P-729 6800 BHP 2011 Asia

Sea Vixen Seatech P-729 6800 BHP 2011 Brazil

Sea Stoat Seatech P-729 6800 BHP 2011 Brazil

PSVs

Sea Trout VS 470MK II 3250 DWT 2007 North Sea

Sea Angler PSV UT 755 L 3250 DWT 2007 W.Africa

Sea Halibut PSV UT 755 L 3250 DWT 2007 Brazil

Sea Pike PSV UT 755 L 3250 DWT 2007 Brazil

Sea Bass PSV UT 755 L 3250 DWT 2008 Brazil

Sea Pollock PSV UT 755 L 3250 DWT 2008 Brazil

Sea Turbot PSV UT 755 L 3250 DWT 2008 Brazil

Sea Witch PSV UT 755 L 3250 DWT 2008 W.Africa

Sea Brasil STX 09CD 4700 DWT 2012 Brazil

North Sea Spot

Repsol North Sea Spot

Repsol

Vanco Vanco

Petrobras

Petrobras

Malaysia

Petrobras

Petrobras

PTTEP

Petrobras

Petrobras

EnQuest

ENI Congo

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Petrobras

Petrobras

Petrobras

Petrobras

ENI Congo

BP

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Source: ODS Petrodata

AHTS

Vessel > 20 years: 27,7 % of total fleet Vessel > 30 years: 14,9 % of total fleet

PSV

Vessel > 20 years: 20,1% of total fleetVessel > 30 years: 13% of total fleet

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AGE DISTRIBUTION CURRENT FLEET AND ORDER BOOK

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Supply vessels Total fleet AHTS PSV

Existing fleet 2677 1557 1120

Orderbook 447 17% 148 10% 299 27%

Average age 12,7 13,1 12,1

Rig market Total fleet Semis/drillships Jackups

Existing fleet 789 301 488

Orderbook 182 23% 96 32% 86 18%

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THE RIG AND SUPPLY MARKET

Source: ODS Petrodata

Vessel term utilization:• PSV (>3.000 DWT) currently 83% utilization globally vs 86% Nov 2012• AHTS (>10.000 BHP) currently 72% utilization globally vs 75% in Nov 2012

(The remaining 17% (PSV) and 28% (AHTS) is vessels trading in spot market, steaming, in yard or idle)

Delivery AHTS vs PSV1) Last 5 years 691 AHTS vessels have been delivered from yard Same period 425 PSV vessels have been delivered.

2) Current orderbook is for 299 PSVs and 148 AHTS vessels

Current OSV & Rig fleet OSV <= 15 years, by vessel type

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SELLING 50% OF BRAZILIAN BUSINESS TO BTG PACTUAL

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BTG PACTUAL

• One of the largest investment banks in Latin America

• Listed on stock exchange in Sao Paulo and Amsterdam

• More than USD 95 bn under Asset/Wealth Management

• Represents 30% of shareholders in Sete Brasil

4Q|12

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THE TRANSACTION

• Selling 50% of DESS’ Brazilian business to BTG Pactual EV = USD 578M

• Buying 6 newbuild large PSVs EV = USD 274M

• Equity injection as working capital USD 48M 50% from each of the partners

4Q|12

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THE BRAZILIAN BUSINESS

• Deep Sea Supply Navegação Marítima Ltd• Deep Sea Supply Serviços Marítimos Ltd• 15 AHTS & PSVs operating in Brazil:

• 6 Newbuild large PSVs – Ulstein PX 105 – Expected delivery 2013/2014

AHTS PSV

Sea Panther Sea Halibut

Sea Leopard Sea Bass

Sea Tiger Sea Pollock

Sea Cheetah Sea Turbot

Sea Jaguar Sea Pike

Sea Fox Sea Brasil

Sea Jackal

Sea Vixen

Sea Stoat

4Q|12

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THE TRANSACTION

The Brazilian business

AHTS +

PSVs

Brazil

Management agreements Board

4Q|12

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STRATEGIC RATIONALE

• Local experience and know how

• Increased local content

• 3rd largest OSV company in Brazil

• Seeking further growth opportunities

4Q|12

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DESS AFTER ESTABLISHMENT OF JV

• Modern fleet of 9 vessels with good contract coverage

• Africa, Asia and North Sea the main markets

• JV sales proceeds helps facilitate further growth

AHTS PSV

Sea Lynx Sea Trout

Sea Bear Sea Angler

Sea Ocelot Sea Witch

Sea Eagle 1

Sea Badger

Sea Weasel

4Q|12

www.deepseasupply.no

COMPANY ADDRESSES

CyprusDeep Sea Supply PlcJohn Kennedy Ave., Iris House, 7th Floor, Office no.740BLimassol 3100Cyprus

Deep Sea Supply Management (Cyprus) LtdP.O.Box 53340CY-3302 LimassolCyprus

NorwayDeep Sea Supply Management ASTromøyveien 22N-4841 ArendalNorway

SingaporeDeep Sea Supply Management (Singapore) Pte.Ltd.10 Hoe Chiang Rd#19-03/04/05 Keppel TowerSingapore 089315

BrazilDeep Sea Supply Servicos Maritimos LTDAAvenida Presidente Wilson231, sala 1.403.Cep:20030-021 Rio de Janeiro RJ Brazil

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