Shipping update,

Telephone conference December 16, 2011

Opening remarks,

Leif Teksum – Group executive vice president, Large Corporates and International

Review of the Shipping, Offshore and Logistics portfolio as part of DNB’s overall

credit portfolio,

Trygve Young, Chief Risk Officer.

Review of the different shipping segments, DNB’s strategy and exposure,

Harald Serck-Hanssen, Executive vice president, Global Head of the Shipping, Offshore and

Logistics division

Agenda

2

Credit policy based on future cash flow

"The customer's debt service capacity is the key element when

considering whether to approve a credit.

If the customer has not proven satisfactory debt service capacity,

credit should normally not be extended, even if the collateral is

adequate."

3

4

EaD Shipping and DNB Group

1 7151 605

1 663 1 661 1 694

1 928 1 894

152 110 117 107 110 127 117

9 %

7 % 7 %6 % 7 % 7 % 6 %

0 %

5 %

10 %

15 %

20 %

25 %

0

500

1 000

1 500

2 000

2 500

0812 0912 1012 1103 1106 1109 1110

billio

n kro

ner

Shipping DNB Group Shipping in % of Group

7 7

5

EL Shipping and DNB Group

3 953

4 762

3 9563 751 3 778

4 009 3 919

467692

491374 392 476 429

12 %

15 %

12 %

10 % 10 %

12 %11 %

0 %

5 %

10 %

15 %

20 %

25 %

0

1 000

2 000

3 000

4 000

5 000

0812 0912 1012 1103 1106 1109 1110

millio

n kro

ner

Shipping DNB Group Shipping in % of Group

6

Key figures by segment

million kroner

EDF

weighted

Grade

weighted

Sev %

Weighted EL EL % RAC RAC% EaD Drawn

Aviation 2.48 % 7.4 26 % 4 0.63 % 36 6.3 % 576 295

Cruise 0.36 % 3.4 22 % 5 0.08 % 103 1.5 % 6 660 4 844

Logistics 1.48 % 6.3 35 % 57 0.52 % 405 3.7 % 11 073 8 417

Offshore 0.92 % 5.3 20 % 89 0.19 % 1 541 3.2 % 48 203 32 419

Other non-shipping 0.57 % 4.2 17 % 6 0.10 % 179 2.8 % 6 522 2 674

Shipping 1.45 % 6.2 25 % 423 0.37 % 5 765 5.0 % 115 271 86 190

1110 1.25 % 6.0 25 % 584 0.31 % 8 030 4.3 % 188 306 134 839

1109 1.21 % 5.9 25 % 631 0.30 % 9 481 4.6 % 207 611 142 506

1106 1.23 % 5.9 25 % 536 0.30 % 7 353 4.1 % 177 708 127 252

1103 1.20 % 5.8 25 % 552 0.30 % 8 138 4.4 % 182 887 129 941

1012 1.35 % 6.1 26 % 677 0.35 % 9 032 4.7 % 193 030 152 980

0912 1.62 % 6.4 33 % 977 0.53 % 11 205 6.1 % 182 798

7

Development in net write-downs: International Shipping and in % of the group

220

3 509

7 709

2 998

2 519

3

520 281 140 0 % 0 %

7 %

9 %

6 %

0 %

1 %

2 %

3 %

4 %

5 %

6 %

7 %

8 %

9 %

10 %

-

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

2007 2008 2009 2010 2011(Jan-Sep)

mill

ion

kro

ne

r

International shipping Total Shipping in % of DNB-group

Norway is a major shipping nation with a unique maritime cluster

Shipowners

Finance

Ship-brokers

Legal

services

Education Insurance

R&D

Yards

etc

Class

We are in the maritime sector by choice, not by

accident: Norway is and has been a leading

maritime nation for generations. It is a world

leader in many sectors with a well functioning

and professional maritime cluster: Shipowners,

brokers, insurance, legal, classification

societies, yards, finance, R & D, education.

OSE is an important exchange for shipping and

offshore listings.

Based on our Norwegian background, we have

gradually expanded our client base abroad.

8

Shipping consists of many segments, with different drivers. Our largest

segment is offshore, where market conditions are positive

Bulk Carrier/Dry Cargo

UltraLargeOreCarrier,

Cape Size, Panamax,

Handymax, Handysize

Crude Oil/Product

ULCC , VLCC, Suezmax,

Aframax, Panamax,

Product (LR1/LR2/MR)

Chemical Tankers

Container Vessel

Post Panamax,

Panamax, Sub

Panamax, Handy

Feedermax, Feeder

Liquid Natural

Gas (LNG)

Drilling Rigs

Semis, jack-

ups and

drillships

Reefer vessel

Refrigerated cargo

RoRo / PCTC /

PCC

Cruise /

Passenger vessel

9

We strive to have a well diversified portfolio with a good credit quality

10

The division’s (SOL) portfolio segmentation* The PD distribution of the SOL division*

*EaD, Exposure at default, as of 3q 2011

The shipping portfolio has been reduced since 2008, both in absolute numbers

and as a share of DNB’s total portfolio

EaD

NOK

bill.

The shipping exposure has been reduced since

2008, especially within Dry Bulk.

The portfolio is around 7% of the

bank’s total portfolio vs. 10% in 2008

%

0 %

5 %

10 %

15 %

20 %

25 %

0

500

1 000

1 500

2 000

2 500

0812 0912 1012 1103 1106 1109 1110billion kroner

Shipping DNB Group Shipping in % of Group

11

Including Dry Bulk

and Tankers

We are long term and relationship driven

Client

Collateral

Cash flow

Covenants

• Our core clients are typically leading integrated

shipping companies

• We prioritize clients where we have a good and

close dialogue and who use a broad range of DNB

products

• We have a global approach

• We aim to keep a good credit quality, our credit

guidelines being based upon the “4 Cs”:

12

Dry bulk (USD/day)

Spot rates for dry-bulk capesize vessels last 10

years vs DNB's assumptions

Tankers (USD/day)

Spot rates for VLCC tanker vessels last 10 years vs

DNB 's assumptions

We have a conservative view when assessing risk

Sources: Fearnleys, Clarksons

13

14

The PD developments in dry bulk, tankers and containers Sept 2010 – Oct 2011

• Dry Bulk

• Tankers

• Containers.

EaD

EaD

EaD

15

Shipping vs. DNB group: Non-performing commitments and Write-downs

0 %

1 %

2 %

3 %

4 %

5 %

6 %

7 %

8 %

9 %

10 %

-

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

2007 2008 2009 2010 2011(Jan-Sep)

mill

ion

kro

ne

rInternational shipping Total Shipping in % of DNB-group

Write-downs 2007 – 2011, shipping vs. total DNB Non-performing and net doubtful commitments, total

DNB pr. 3q 2011: NOK 7.618 mill., excl DNB Nord

The Shipping Division has managed to minimize write-downs

Actual write-downs 2009, 2010 vs. DNB’s own

expectations, communicated externally

Actual write-downs past 10 years

16

DNB maintains its position as a leading shipping, offshore and logistics bank,

delivering strong results each year

The Shipping division’s financial

performance, 2007 -2010

Top maritime bookrunners according to Deallogic

NOK mill.

17

The shipping companies and the banks usually find ways to solve

challenging situations. In very few cases, the bank becomes a shipowner

18

• Providing additional guarantees or

security

• Raising additional capital

• Reducing or stopping dividends

• Cancelling or postponing newbuildings

• Scrapping vessels

• Selling assets

• Cutting costs

• Modifying, postponing or waiving

covenants

• Moratorium, stretching the repayment

schedule

• "Bridge loans" - solving temporary

liquidity challenges

• Restructuring – in several ways

Bank Contribution Shipowner Contribution