First Ship Lease Trust1QFY12 Results Presentation

FSL Trust Management Pte. Ltd.as Trustee-Manager for FSL Trust

25 April 2012

Certain statements in this presentation may constitute forward-looking statements. Forward-looking statements includestatements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions andother statements, which are other than statements of historical facts. The words “believe”, “anticipate”, “intend”, “estimate”,“forecast”, “project”, “plan”, “potential”, “may”, “should”, “expect”, “pending”, and similar expressions identify forward-lookingstatements.

Forward-looking statements also include statements about our future growth prospects. Forward-looking statements involvea number of risks and uncertainties that could cause actual results to differ materially from those in such forward-lookingstatements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertaintiesregarding our earnings, our ability to manage concentration and lessee credit risks, our ability to lease out or disposevessels, our ability to implement our investment strategy, our dependence on credit facilities and new equity from capitalmarkets to execute our investment strategy, the possibility of insufficient insurance to cover losses from inherent operationalrisks in the industry, lower lease rates from older vessels, our dependence on key personnel, FSL Holdings Pte. Ltd.’scontrolling stake in the First Ship Lease Trust (“FSL Trust”), our short operating history, the lack of historical financial historyfor the Trust, the risk of government requisitions during periods of emergency or war, the possibility of pirate or terroristattacks, competition in the industry, political instability where the vessels are flagged or operate, and the cyclicality of theindustry and fluctuations in vessel values. For further information, please see the documents and reports that we file withthe Singapore Stock Exchange.

FSL Trust may, from time to time, make additional written and oral forward-looking statements, including our reports tounitholders. We do not undertake to update any forward-looking statements that may be made from time to time by or onbehalf of FSL Trust.

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Disclaimer

Changing Tack in Extraordinary Times

Agenda 

Strategy & Position

Managing Our Fleet

Prospects

1QFY12 Financial Review

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Extraordinary Times in Shipping

4Strategy & Position

Low Freight Rates

• Oversupply• Weak demand

Weak Asset Prices 

• Increased counterparty risks

• Distressedvessel sales

Tighter Bank Credit

• Restrictivelending policies

• Refinancing risks

Depressed ShippingMarket

Staying Nimble and Flexible

5Strategy & Position

Spot,Pool,Time

Charters

Tactical Portfolio

Base Portfolio Continue to provide stable cash flow

Opportunityto capture upturn

Maintain diversified portfolio across shipping segments & customers Will largely focus on long‐term bareboat charters 

Being Prudent

6Strategy & Position

Preserve capital and maintain healthy balance sheet

Manage loan covenants with banks

Keeping DPU at US0.10¢ for the time being

Strength in Diversified Portfolio

^ Based on actual lease revenue for 1QFY12 for 20 vessels on bareboat charters.

Managing Our Fleet

Ship Owner, Not Lender

Yang Ming25.0%

Geden Lines15.1%

James Fisher14.3%

Evergreen Marine14.6%

Siba Ships9.0%

Schoeller Holdings8.0%

TORM14.0%

Lease Revenue^ by Lessee

Container‐ships47.6%

Crude Oil Tankers15.1%

Product Tankers28.3%

Dry Bulk Carriers9.0%

Lease Revenue^ by Vessel Type

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Playing on Our Strengths

Managing Our Fleet

High quality vessels

Young (average age 6.5 years)and deployable fleet

Long remaining useful economic lifewith good earnings capability

Lender support remains, reflects confidence despite tough market

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Opportunity to Capture Upturn~ TORM Vessels

Managing Our Fleet

Cancels early buyout, purchase and lease extension options

Aligns charter rates to variable rates that TORM achieves on spot

Trust will be allocated equity in TORM

Termination option in the event actual rates underperform the market benchmark by pre‐agreed margin, tested semi‐annually

Trust’s lenders have given approval

Terms are still subject to approval of TORM’s other stakeholders

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Working in Pool & Time-Charter

Managing Our Fleet

Chemical Tankers ‐ FSL New York, FSL London & FSL Tokyo Quick action led to fast redelivery from BLT

‘Nordic Siva’ pool managed by Nordic Tankers

Monthly distribution of net earnings to participants in pool

Exploring legal options on our residual claims against BLT

FSL Singapore to be chartered to Petrobras Expect to commence 3‐year time charter with Petrobras in 2QFY12

Gross daily rate of US$14,000

Bidding for a similar contract for ‘FSL Hamburg’

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We Are Here to Stay

Prospects

Vessels positionedfor upturn• Vessels on spot able to ridethe upside

Attractive Asset Prices

• Earnings accretive acquisitions

Bank credit tightening

• Alternative financing opportunities

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1QFY12 Results Highlights

Financial Highlights (US$’000) 1QFY12 1QFY11 Y-O-Y% change

Revenue 26,081 23,852 9.3

Loss after tax (4,168) (1,995) N.M

Net cash from operations 9,844 11,539 (14.7)

Amount to be distributed 654 5,687 (88.5)

Distribution per unit (US¢) 0.10 0.95 (89.5)

121QFY12 Financial Review

Revenue +9.3% to US$26.1m Full quarter contribution from two product tankers leased to TORM Higher freight income from the vessels trading on spot Despite loss in bareboat charter revenue from three chemical tankerspreviously leased to BLT (redelivered in February 2012)

-4.2

14.5

5.3

0.9 1.6 8.0

4.8

21.3

LEASE REVENUE FREIGHTREVENUE

DEPRECIATION VOYAGE & VESSEL

OPERATINGEXPENSES

MGT & TRUSTEEFEES

OTHER TRUSTEXPENSES (INCL. REDELIVERYEXPENSE)

NET FINANCEEXPENSE

NET LOSS FOR1QFY12

1QFY12 Income Statement Highlights

Higher Expenses Impact Profits

131QFY12 Financial Review

US$ MillionsTotal RevenueUS$26.1m

Operating expenses (excl. voyage & vessel op expenses) rose 6.7% to US$17.0m due mainly to one‐off expense of US$0.8m incurred for redelivery of 3 chemical tankers

Finance expenses (excl. exchange gains) increased 30.3% to US$8.3m mainly due to higher interest margin under the new credit facility

Vigilant Cash Management

141QFY12 Financial Review

31.9

0.7 11.0

7.0

18.3

32.3

CASH AND CASHEQUIVALENTS ATBEGINNING OF1QFY12

CASHFLOW FROMOPERATIONS

DISTRIBUTION TOUNITHOLDERS

REPAYMENT OFSECURED BANK LOAN

NET INTEREST PAID CASH AND CASHEQUIVALENTS AT END

OF 1QFY12

1QFY12 Cash flow HighlightsUS$ Millions

Net decrease in cash and cash equivalents: US$0.4 million

Kept DPU at US0.10¢ 20th consecutive 

distribution since listing

Two Product Tankers~ Enjoyed Better Spot Rates

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(US$’m) 1QFY12 1QFY11

Freight Income 4.54 3.08

Voyage Expenses (2.89) (2.98)

Time-Charter Equivalent Revenue 1.65 0.10

Less: Crew Cost, Vessel Maintenance& other Operating Expenses (1.27) (1.24)

Bareboat Charter Equivalent Revenue 0.38 (1.14)

FSL Hamburg and FSL Singapore generated higher freight income in 1QFY12

FSL Singapore to be time chartered to Petrobras within 2QFY12

1QFY12 Financial Review

Three Chemical Tankers~ To be Deployed in Pool

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(US$’m) 1QFY12

Freight Income 0.30

Voyage Expenses (0.63)

Time-Charter Equivalent Revenue (0.33)

Less: Crew Cost, Vessel Maintenance& other Operating Expenses (0.58)

Bareboat Charter Equivalent Revenue (0.91)

Weak performance due to mismatch in recognition of freight income and expenses In March, freight income was recognised for one vessel on completion of its 

charter; other two vessels completed charters in 2QFY12 Voyage and vessel operating expenses were recognised when incurred

Bareboat charter equivalent loss of US$0.9 million incurred1QFY12 Financial Review

US$500m Lease Revenue Backlog

1QFY12 Financial Review

85  86  83 75 

60 

109 

2012 2013 2014 2015 20164 Years:

2017 ‐ 2020

US$389 million*total remaining contracted revenue to be generated between 2012 and 2016

* As at 31 December 2011, based on 20 vessels on long-term bareboat charters and one vessel on a three-year time-charter. Excludes extension and early buyout options.

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Staggered Lease Maturities

1QFY12 Financial Review

5.8 years*Weighted average remaining lease

term

Remaining Lease Term in Years as at 31 March 2012

* As at 31 March 2012, based on the 20 vessels on long-term bareboat charters and ‘FSL Singapore’ on a three-year time charter. Calculated on a dollar-weighted average basis by net book value and excludes extension and early buyout options.

^ ‘FSL Singapore’ is expected to be deployed on a three-year time charter to Petrobras within 2Q FY12.18

Investor Relations Contacts

• FSL Trust ManagementMs Wylyn LiuTelephone: +65 6836 3000email: investors@firstshiplease.com

• OakTree AdvisersMs Rita ChayTelephone: +65 6100‐1811email: ritachay@oaktreeadvisers.com

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Thank YouQuestions & Answers