Sfl Corporation Ltd · NYSE:SFL
Sfl — Ship Finance International — Q2 2010 Earnings Presentation
15 slides from Sfl's earnings presentation, Sep 7, 2010
Slide 1: Ship Finance International Limited 2Q 2010 results
Ship Finance International Limited 2Q 2010 results August 26, 2010
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains forward looking statements. These statements are based upon various assumptions, many of which are based, in tum, upon further assumptions, including Ship Finance Management's examination of historical operating trends, data contained in the Comp
Slide 3: 2Q 2010 highlights
Ship Finance International 2Q 2010 highligh = Declared an increased quarterly dividend of $0.35 per share * Second dividend increase in 2010 © 8.1% dividend yield = Reported 2Q 2010 net income of $43.6m ($0.55/share) e Including a minor loss on sale of asset and a minor negative mark-to- market of d
Slide 4: 2Q 2010 highlights: acquisitions and single-hull reduction
inrnalinal 2Q 2010 high = We have agreed to acquire three 57,000dwt Supramax bulk vessels Total acquisition price of $100.7m ¢ Chinese built, one in 2009, one 4Q 2010 and one 1Q 2011 *® Payment terms with 20% deposit on signing, and 80% on delivery = Long-term TCs already in place for the Supramaxes
Slide 5: Substantial charter backlog
hip Firance Substantial charte = Nominal values as per June 30, 2010 including subsequent acquisitions = Excluding any profit sharing = Virtually no exposure to escalating operating expenses Total charter payments ==> $6.8 bn ($86/share) Net cash flow from charters(2) =—> $5.9 bn ($75/share) Average
Slide 6: SFL operational performance
Ship Finance International SFL operational pe » Pro-forma illustration of cash flow * Not as accounted for under US GAAP e Used as an internal guideline to assess the Company’s performance e Excluding extraordinary and non-cash items 2Q 2010 1Q 2010 $ mill. $/share) $ mill. $/share®) Fixed charter h
Slide 7: 2Q-10 contribution from fleet
et drome 2Q-10 contribution fro Large performing fleet and significant cash-flow in 2Q 2010 * $2.34/share EBITDA-equivalent $0.51/share net cash-flow from projects after interest and debt amortization $0,51 Fixedrate Profit. © OPEX+ Net Loan Net charter share G&A interest Inst contribution revenues
Slide 8: Profit & Loss
Ship Finance Profit & Loss International —— — = sae ae 5] === amemem-oeisine | va nso] ao see | nam fl congerenme oe Total operating revennes (Gain ss) onsale of assets ‘Vesselopenting spencer Admmistative apenses ‘Depreciation ‘Vessel impaiment adjustments ‘Total operating expenses Operating income
Slide 9: Balance Sheet
Ship Finance International Balance Sheet ‘Amount due fomselated partie: (Other eurent accete Zong term Newbuiding: ‘Vessel: and equipment, net ders’ equity’ exch der's equity’ 285,990 228.465 1n8 211 1493 94232 793540 285,990 24758 16720 3,195,462 394482 26039 543 1960697 96,704 enin 3,195,462 'BALA
Slide 10: Cash Flow Statement
inrnalnal Cash flow Statement STATENENT OF CASAFLOWS Threeaeatcente | Sirmmie ented | Palyear in thowzondz ef) Jun30 Jun30 | Juno Junz0 | 2000 zoo 2000 | 20102008 | ais) coe ean ee comers ean ee ee re fstensoras peateta Ee Ee iB aa Dat ef char om Change in opemting asses and bites ‘assets classified
Slide 11: Investment in associates
Ship Finance International Investment in associates » Selected 2Q 2010 income statement figures fin thousand SLWest SFL Deepwater Front Shadow Polavis Limited Led os Total hi "Revenues classified as Repaymeat of |” jnvertmant in finance lence: [Teta Netincome + Selected 29 2010 balance sheet figures
Slide 12: Financing and capital expenditures
Ship Finance Financing and cap expenditures International $1.9bn consolidated net interest bearing debt at quarter end * Including $54.6m in available cash * Excluding $1.8bn of bank loans in subsidiaries accounted for as ‘Investment in associate” Current estimated gross capital commitments is $255m
Slide 13: Charter backlog and EBITDA outlook
v (EBITDA)® $ in millions © Seadrill charters: 800 * 100% Seadrill Ltd. guarantee * All ultra-deepwater units are sub- 700 chartered to major oil companies Frontloaded charter rate and loan 600 repayment 500 © Frontline charters: * 100% Frontline Ltd. guarantee@ * Profit split agreement has generate
Slide 14: Quarters with profit share
Ship Finance International 26 quarters with p Capturing incremental cash flow in strong markets * 20 % profit share of tankers/OBO earnings“ in excess of base charter rates * More than $500 million in aggregate profit share) from 2004 * Quarterly average of $19.3m or $0.24 per share Profit Share - a
Slide 15: Summary
Ship Finance International Summary = Increased quarterly cash dividend of $0.35/share © 8.1% dividend yield * Second dividend increase in 2010 = Reported quarterly net income of $43.6m ($0.55/share) * Accrued profit share of $11.4m in 2Q 2010 © Gross fixed charter hire of $195.7m ($2.47/share) in th
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