Danish Ship Finance Danmarks Skibskredit AS

1
Danish Ship Finance (Danmarks Skibskredit A/S)
September 2005
2
DSF - Background

• A private Limited Liability Company operating
  according to its own law since 1961
• Purpose Permanent source of long-term finance
  for the maritime industry
• Until 2001, focus on Danish shipowners and
  customers of Danish shipyards due to regulations
• From 2001 focus widened to embrace foreign
  shipowners

3
DSF 100 commitment

• Our Vision
• DSF is to be the leading provider of ship
  financing in Denmark and a key player in the
  international ship finance market.
• How
• Simple and efficient business model
• Monoline business (one product)
• Low costs
• Strong Long Term Funding
• Careful Lending Policy

4
DSF portfolio reflects Danish ties

• Geographical distribution of loan portfolio as of
  31 Dec 2004

5
DSF is expanding outside Denmark

• Geographical distribution of loan offers accepted
  in 2002-30 June 2005

6
DSF among the largest shipping Lenders

• Key Figures in USD million
• 1st half 2005 2004
• Loans 5,572 5,889
• Total assets 9,641 10,956
• Solvency ratio 19.8 22.2
• - Min. requirement 10.0 10.0
• DKK/USD 615,46 546.76

7
6 selling points

• A lending team of professionals, all with many
  years of experience within shipping
• Thorough understanding of the cyclical nature of
  shipping and the challenges therein
• Consistent lending policy
• Large ticket and long-term lending

8
6 selling points, continued

• Complement to house banks, as ship mortgage
  finance is our only line of business
• Quick decision making (down to 2-3 days), made
  possible due to a flat organisation and efficient
  approval system

Board of Directors
Credit committee
Bo Jagd
Managing Director
Corporate
Credit
Finance
Financial Control
Denis Dønbo
Per Schnack
Henrik Stage
Erik I. Lassen
9
One niche product kept simple

• Credit Aspects
• 1st priority ship mortgage loans
• Due to capital requirements, preference for
  loan-to-value ratios up to 70
• Preferably bilateral loan facilities or
  club-deals
• Underwriting capacity

10
The portfolio is widely diversified

• Loan portfolio (DKK 34.3 billion) by segment as
  of 30 June 2005

11
We co-operate and compete

• Cooperation with other financial institutions
  measured by loan offers accepted in 2003-30 June
  2005

12
DSF - Funding

• DSF is a bond-issuing institution
• DSF bonds qualify as covered bonds and carry a
  low risk-weighting
• Supervised by the Danish Financial Supervisory
  Authority
• Aa3 rating by Moodys (Watchlist)

13
Contact persons

• Bo Jagd, CEO
• Corporate Department
• Erik I. Lassen, Head of Dept.
  eil_at_shipfinance.dk
• Vice Presidents Assistant Vice Presidents
• Anette Berg - anb_at_... Bettina B. Damgaard -
  bbd_at_...
• Anne Jarling - aja_at_... Britt Andersen - ban_at_...
• Berit Koertz - bek_at_ Helle Rohde Andersen -
  hra_at_...
• Christian Behnke cbe_at_... Jeanette Clark -
  jha_at_...
• Hanne Pedersen - hmp_at_ Kate Nielsen - kni_at_...
• Henrik Søgaard Olsen hso_at_. Lisbeth Navntoft -
  lnp_at_...
• Knud Jæger - knj_at_... Morten Snede Larsen -
  msl_at_...
• Ole Stærgaard - ols_at_
• Market analysis
• Nikolaj F. Kamedula - nik_at_ Telephone 45 33 33
  93 33
• Tino Henriksen tih_at_... Telefax 45 33 33 96 66

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Key figures
(million) 1st half 1st half 2005
2005 2004 2003 2002
2001 (USD) (DKK) (DKK)
(DKK) (DKK) (DKK) Net from lending
operations 13 82 182
154 156 115 Net interest
income from financing operations 29
180 411 453 487 490 Total
net interest income 43 262
593 607 643 605 Net interest
and fee income 45 278 615
632 669 624 Market value
adjustments (1.5) (9) (23)
(83) 136 87 Provisions for bad
and doubtful debts
7.5 46 772 (44) 38
(390) Net profit before tax 45
274 1,293 435 779
266 Profit for the year
32 198 907 304 561
185 Loans
5,686 34,995 35,445 36,981 39,728
38,839 Capital and reserves 1,442
8,875 9,486 8,580 8,276
7,715 Total assets 9,642 59,340
59,907 64,810 60,232 57,969 Solvency
ratio 19.8 19.8
22.2 19.0 17.8 15.0
Hedged Value