1

Ship Finance International Limited

3Q 2012 Results

November 29, 2012

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FORWARD LOOKING STATEMENTS

This presentation contains forward looking statements. These statements are based upon various assumptions, many of which are

based, in turn, upon further assumptions, including Ship Finance management's examination of historical operating trends, data

contained in the Company’s records and other data available from third parties. Although Ship Finance believes that these

assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies

which are difficult or impossible to predict and are beyond its control, Ship Finance cannot give assurance that it will achieve or

accomplish these expectations, beliefs or intentions.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking

statements include the strength of world economies, fluctuations in currencies and interest rates, general market conditions including

fluctuations in charter hire rates and vessel values, changes in demand in the markets in which we operate, changes in demand

resulting from changes in OPEC's petroleum production levels and world wide oil consumption and storage, developments regarding

the technologies relating to oil exploration, changes in market demand in countries which import commodities and finished goods and

changes in the amount and location of the production of those commodities and finished goods, increased inspection procedures and

more restrictive import and export controls, changes in our operating expenses, including bunker prices, dry-docking and insurance

costs, performance of our charterers and other counterparties with whom we deal, timely delivery of vessels under construction within

the contracted price, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from

pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to

accidents or political events, and other important factors described from time to time in the reports filed by the Company with the

Securities and Exchange Commission.

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3Q 2012 Highlights

• Net income of $35 million ($ 0.44/share) for the quarter

» Aggregate charter revenue of $179 million ($2.26/share)(2)

» Including $10 million cash sweep relating to Frontline vessels

» EBITDA(3) of $145 million ($1.83/share)

• Declared a third quarter dividend of $0.39 per share

» 10% dividend yield(1)

• Declared an additional accelerated fourth quarter dividend of $0.39 per share

» Total cash dividend payment of $0.78 per share in December 2012

1) Announced quarterly cash dividend, annualized / SFL share price $[15.43 (November 28, 2012)

2) Charter revenues includes total charter hire from all vessels and rigs, including assets in 100% owned subsidiaries classified as ‘Investment in associates’ and accrued cash sweep income. The numbers include

cash sweep accrual in Frontline Shipping Limited only, as there was no accrued cash sweep in Frontline Shipping II Limited for the nine months ended September 30, 2012.

3) EBITDA is a non- GAAP measure and includes assets in 100% owned subsidiaries classified as 'Investment in associates'. For more details please see 3Q-12 press release Appendix 1: Reconciliation of Net Income

to EBITDA.

Charter

revenue

3Q-12

52% 30% 10% 8%

OFFSHORE TANKERS DRY BULK CONTAINER

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Recent developments

• Renewal of fleet continuing

» 1991-built OBOs Front Climber and Front Driver delivered to new owners in October

and November 2012, respectively

» Net proceeds to SFL of approximately $18.5 million, after compensation from

Frontline

» Expected aggregate book gain of approximately $4.4 million in 4Q 2012

» Only two older OBOs remaining in the fleet

• $194 million equity and bonds raised subsequent to quarter-end

» $89 million raised in a public offering of 6 million new shares

» $105 million raised through issuance of 5-year senior unsecured notes

• NOK denominated, but all payments swapped to USD with a fixed interest rate of 6.06% p.a.

• Acquired two modern car carriers in combination with 5-year charters

» Built 2005 and 2006 in Japan

» 6,500 ceu capacity

» 5-year time charter to an investment-grade logistics company in Asia

» $85 million increase in charter backlog

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Cash sweep and profit share

1) Average earnings for modern VLCC (Clarksons, Research Sercices, quarterly average)

2) Average cash sweep range for 5 x VLCCs acquired in 2005

3) Average cash sweep range for 12x VLCCs, 6 x Suezmaxes and 2x OBOs acquired in 2004 (after the recently announced sales of two OBOs)

• $10.2m net cash sweep from two separate asset pools

» 22 VLCCs, Suezmaxes and OBOs (acquired in 2004): $13.0m accumulated in 3Q-12

» 5 VLCCs at higher rates (acquired in 2005): Negative adjustment of $2.8m

• $40.1 million cash sweep accumulated year-to-date

» 100% from 22 vessels acquired in 2004

» Full year cash sweep payable in March 2013

VLCC earnings(1) and cash sweep range

Up to

$0.17/share

per quarter

25% profit split

above old base

rates

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

20 x VLCC/Suezmax/OBO: Cash sweep range(3)

5 x VLCCs - Cash sweep range(2)

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.

• Significant reduction in leverage last 4 years

• From $1,250m to $490m(1) = 60% reduction

in loan amount

• Loan amortization continues (>$70m/yr)

• Next refinancing: ~$222m in 2015

• 47 vessels initially in 2004

• The fleet is reduced to 25 vessels by

selling the oldest tonnage

• Further fleet reductions expected

• Weighted average age of ~10 years

Vessels on charter to FRO

Frontline vessels and financial exposure

Financial leverage on FRO vessels

Number of vessels to FRO Financing relating to FRO vessels

1) Estimated loan amount at year-end 2012

2) Source: Clarkson Research Services

$0m

$200m

$400m

$600m

$800m

$1000m

$1200m

$1400m

2004 2005 2006 2007 2008 2009 2010 2011 2012e

Scrap @ $410/ldt Loan

-

10

20

30

40

50

2004 2005 2006 2007 2008 2009 2010 2011 2012e

Single Hull Suezmax/OBO - DH VLCC - DH(2)

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$5.4 billion charter backlog(1)

1) Fixed charter backlog as of September 30, 2012, adjusted for subsequent acquisitions and sales, excluding future cash sweep/profit share, net of any seller’s credit and assuming certain call options are not exercised

Charterers by Mkt. Cap Remaining Charter Term(1)

5–10 yrs

32%

> 10 yrs

66%

0–5 yrs

2%

> $5bn

44%

< $5bn

39%

Private

17%

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1) Source: Clarkson Research Services

2) Source: RS Platou markets

• Downward pressure on asset values in most shipping segments last 12 months

» General uncertainty in the world economy

» Significant deliveries impacting supply/demand ratio

» Shipyards need to fill up production capacity

» Many ship owners have limited access to capital

• Increased focus on efficient vessel designs

» Significant fuel savings compared to older tonnage

» ‘Value gap’ between newbuildings and secondhand vessels

Tanker (1) Container (1)

Historically attractive asset prices

Orders and yard capacity(2)

0

20

40

60

80

100

120

140

160

98 99 00 01 02 03 04 05 06 07 08 09 10 11

NB VLCC 5yr VLCC

0

10

20

30

40

50

60

70

98 99 00 01 02 03 04 05 06 07 08 09 10 11

NB 3,500teu 5yr 3,600teu

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Contributions from projects last 12 months(1)

1) Not as accounted per US GAAP – used as an internal guideline to assess the Company’s core business.

2) Fixed charter revenues and return on financial investments

3) Ordinary installments relating to the Company’s projects. Excluding $156 million prepayment relating to vessels on charter to Frontline in 2011, and prepayments when vessels are sold

• Large performing fleet with significant cash flow

» $614m EBITDA-equivalent last twelve months

» $133m net cash-flow from projects after interest and debt amortization

(3) (2)

707

133

133

137

344

40

0

200

400

600

800

Fixed-rate

revenues

Cash

sweep

OPEX +

G&A

Net

interest

Loan

amort.

Net

contribution

$ mill.

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SFL operational performance

• Pro-forma illustration of cash flow (1)

» Not as accounted for under US GAAP

» Used as an internal guideline to assess the Company's performance

» Excluding extraordinary and non-cash items and profit share

3Q 2012 2Q 2012

$ mill. $/share $ mill. $/share

Fixed charter hire

VLCC 30.4 0.38 30.4 0.38

Suezmax 10.2 0.13 10.2 0.13

Chemical Tankers 1.5 0.02 1.4 0.02

Container 14.6 0.18 17.0 0.21

Dry bulk incl. OBOs 15.6 0.20 17.6 0.22

Offshore 93.9 1.19 92.3 1.17

Sum fixed charter hire 166.2 2.10 168.9 2.13

Vessel operation expenses and G&A (35.9) (0.45) (34.0) (0.43)

Financial investments 1.9 0.02 1.9 0.02

Accumulated cash sweep/profit share(2) 13.0 0.16 13.5 0.17

EBITDA including accumulated cash sweep 145.2 1.83 150.3 1.90

1) Including cash flow in subsidiaries accounted for as ‘investment in associate’

2) The numbers include cash sweep accrual in Frontline Shipping Limited only, as there was no accrued cash sweep in Frontline Shipping II Limited for the nine months ended September 30, 2012.

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INCOME STATEMENT Full year

(in thousands of $ Sep, 30 Jun, 30 2011

except per share data) 2012 2012 (audited)

Charter revenues - operating lease 31,476 34,215 120,024

Charter revenues - finance lease 47,263 47,856 380,518

Revenues classified as Repayment of

investment in finance leases (14,612) (14,754) (205,910)

Profit share income - - 482

Cash sweep income 10,162 16,312 -

Total operating revenues 74,289 83,629 295,114

Gain / (loss) on sale of assets and

termination of charters 1,923 21,704 8,468

Vessel operating expenses (25,364) (23,142) (81,063)

Administrative expenses (2,133) (2,272) (9,885)

Depreciation (13,583) (13,533) (49,929)

Total operating expenses (41,080) (38,947) (140,877)

Operating income 35,132 66,386 162,705

Results in associate 10,669 11,219 50,902

Interest income from associates and

long term investments 5,661 5,653 21,851

Interest income, other 1,198 1,137 1,550

Interest expense (22,067) (21,635) (96,247)

Amortisation of deferred charges (1,500) (1,415) (7,131)

Gain on sale of associate - - 4,064

Other financial items (710) 9 (2,111)

Impairment adjustment to investment - (463) -

Mark to Market of Derivatives 6,176 335 (4,408)

Taxes - - -

Net income 34,559 61,226 131,175

Basic earnings per share ($) 0.44 0.77 1.66

Weighted average number of shares 79,225,000 79,225,000 79,125,000

Common shares outstanding 79,225,000 79,225,000 79,125,000

Three months ended

Profit & Loss

Gain on sale of OBO Front Rider

Accumulated cash sweep from

Frontline

Subsequent to quarter end, SFL

issued 6 million new shares

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Balance Sheet

Equity ratio of 35%, including

deferred equity of $156.9

million

Includes $40.1 million in

accumulated cash sweep from

Frontline

BALANCE SHEET

Sep, 30 Jun, 30 Dec 31, 2011

(in thousands of $) 2012 2012 (audited)

ASSETS

Short term

Cash and cash equivalents 66,818 100,788 94,915

Available for sale securities 40,359 39,664 23,324

Amount due from related parties 41,195 30,451 9,775

Other current assets 72,988 73,562 64,749

Long term

Newbuildings and vessel deposits 73,780 61,965 123,750

Vessels and equipment, net 960,400 973,982 896,830

Investment in finance leases 1,116,191 1,135,736 1,159,900

Investment in associate 219,907 203,588 169,838

Amount due from related parties- Long term 235,163 248,775 274,184

Deferred charges 22,943 24,327 25,723

Other long-term assets 52,259 51,252 53,140

Total assets 2,902,003 2,944,090 2,896,128

LIABILITIES AND STOCKHOLDERS’ EQUITY

Short term

Short term and current portion of long term

interest bearing debt 220,051 209,378 150,342

Other current liabilities 20,622 18,315 19,385

Amount due to related parties 7,495 6,704 4,421

Long term

Long term interest bearing debt 1,630,480 1,689,905 1,760,122

Other long term liabilities 113,975 112,327 104,767

Stockholders’ equity 909,380 907,461 857,091

Total liabilities and stockholders’ equity 2,902,003 2,944,090 2,896,128

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Liquidity and Financing

• $67 million in cash and cash equivalents

• $40 million in available for sale securities

• $3.1 billion gross interest-bearing debt at 3Q12

» $1.4 billion bank loans - fully consolidated

» $1.3 billion bank loans in ‘Investment in associate’

» $0.5 billion senior unsecured notes – fully consolidated

» Significant scheduled loan repayments

• Raised $194 million in equity and senior unsecured bonds

subsequent to quarter-end

• Demonstrated premium access to the bank market

» $53 million financing on newly acquired car carriers

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34

179

0

50

100

150

200

4Q 2012 2013

$ mill.

Committed financing Remaining ship yard installments

Fully financed newbuilding program

Remaining newbuilding program only 5% of Enterprise Value(1)

1) Enterprise Value defined as sum of market capitalization at November 28, 2012 and net interest-bearing debt at September 30, 2012, including all 100% owned subsidiaries

• Six newbuildings representing $213 million remaining gross investments

• Committed undrawn bank debt of $192 million = $21m net capex

• All newbuildings have medium- to long-term charters attached

Enterprise

Value(1):

$4.4bn

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Covenant Compliance

1) Excluding short-term portion of long-term debt

2) Including $156.9 million of deferred equity

Free cash > $25m $67m

Working capital(1) > 0 $193m

Book equity ratio(2) > 20% 35%

Minimum Value Clauses (where applicable) In compliance

Ship Finance has never experienced any violations of bank covenants,

despite the volatility in the shipping and offshore markets

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Summary

1) Announced quarterly cash dividend, annualized / SFL share price $15.43 (November 28, 2012)

2) EBITDA is a non- GAAP measure and includes assets in 100% owned subsidiaries classified as 'Investment in associates'. For more details please see 3Q-12 press release Appendix 1: Reconciliation of Net

Income to EBITDA.

• Declared third quarter dividend of $0.39 per share

» 10% dividend yield(1)

• $0.78 per share cash payment to shareholders in

December, including accelerated fourth quarter dividend

• Reported net income of $35 million ($0.44/share) in the

third quarter

• EBITDA(2) equivalent cash flow of $145 million

($1.83/share) including associated companies

• Premium access to capital - have raised equity, bonds and

bank financing recently

• Focus on investment opportunities with vessel values at

historic low levels in many segments