Public Expose Material 7 May 2015

(1)

PT W interm ar O ffshore M arine T bk

Financial Club – Jakarta

7 May 2015

(2)

2014 at a glance

(3)

2014 Highlights

• Strengthened Equity base

• _{IFC exercised option to convert US$ 10 million loan to equity,}

becoming a shareholder with 4.7% stake in WINS

• Placement of new non pre-emptive shares raising US$8mil

• New Fleet Additions

• _{3 Vessels already delivered in 1H2014, including 1 unit PSV and 1}

unit AHTS 8000 BHP worth US$55mil

• _{4 Fast Multipurpose Supply Vessels (“FMSV”) from acquisition of}

company complements fleet capabilities

• Government and regulatory factors

• Delays in project approvals from regulator

• General and Presidential elections dominated during the year

• _{New government of President Joko Widodo is very supportive of}

maritime and energy industries

• Expansion into new Regional markets

(4)

Company Profile

• National company working to international standards

• Innovative and first mover in the market

• First Indonesian shipping company to obtain certification for Integrated Management

System from Lloyds Register Quality Assurance

• Professional and experienced management team

• Quality clients - multinational oil and gas companies

• Good track record as owner and operator of offshore support vessels for oil and gas

companies

• Wide variety of vessels and young fleet provide a range of services to clients

• Transition from low value to high value fleet contributes to profit growth

• The total fleet of 77 ships with a value of over USD 370 million *

(5)

Business Segments

Higher value vessels drive gross margin expansion

1. Own Vessels Division

• Operations, Technical support, Commercial

• Gross Margins averaged 45% in FY2014

1. Chartering Division

• Tender for 3

rd

_{party vessels - Commercial only}

• Gross Margins averaged 10.7% in FY2014

3. Ship Management and other Services

• Manage third party vessels – operations and fleet

• Agency and other value added services for clients

(6)

Industry Outlook

Low rate of realization of upstream expenditure in Indonesian Oil and Gas

Sumber : SKK Migas

Investment Oil and Gas Investment

• 2014 - Elections and delays at SKK Migas affected the approval rate of planned upstream projects

• _{2015 - Approved investment commitments in 2015 are}

US$20billion, compared to actual investment of $18.7billion in 2014

(7)

Source: U.S. Energy Information

Administration, Petroleum Supply Monthly

US Oil Production growth in 2014 was the

largest in more than 100 years

(8)

US Rig count is declining in response to

sharply lower oil prices…

… which may trigger a

recovery in oil prices in the coming years

(9)

(10)

Oil still accounts for 36% of the country’s primary energy supply

Cars, trucks and other vehicles: 1.2 million p.a.

New motorcycles: 8 million p.a.

Increasing oil import dependency will put a

growing strain on the government budget

(11)

Development projects with proven reserves

are likely to continue

With the current oil price fluctuations, exploration has been

postponed but is expected to continue when oil prices find a new

Masela Field

Tangguh

(12)

Creating a Sturdy Business Platform with

Young and Diversified Fleet

• Aim to sell low value fleet over next few years

• Mid tier vessels serve production and construction phase

• Provides a one-stop solution to

valued customers

Diversified fleet

Young and technologically sophisticated fleet

• Fleet expansion into new and higher value vessels

Focus on vessel in higher value chain

• Fewer competitors in High tier segment

• Higher barriers to entry as track

record counts with international oil companies

• To differentiate from other players by catering to very demanding top tier oil and gas companies

Fleet composition as of Type of vessels

31 Dec Accommodation Work Vessel 1 1 1 1 -- 1 Fast utility Vessel 9 9 13 13 -- 13

Utility Vessel 4 3 3 4 -- 4

Anchor handling tug 5 6 10 11 +1 12 Azimuth Stern drive tug (ASD tug) 4 4 4 4 - 4 Fast Multipurpose Supply Vessel -- -- -- 1 -- 1 Anchor Handling Tug and Supply 1 1 1 1 +2 3

26 27 36 39 +3 42

(13)

Composition of high value vessels in fleet mix

Armada

2010

2011

2012

2013

2014

+/-

2015E

Low Tier

₄₀

₃₈

₃₂

₂₈

₂₆

_-4

₂₂

Owned Vessel Gross Profit %

YTD Dec-2014

(14)

Challenging environment in 2015

• Sharply lower oil prices have led to cuts in upstream spending and

retrenchments by companies in the oil and gas industry

• Most exploration work has been postponed, production continues

but with margin squeeze

• Look to overseas markets for utilization but at lower margins–

Myanmar, Vietnam, Brunei, Malaysia

(15)

Opportunities in 2015

• President Joko Widodo’s government is very

supportive of maritime and energy industries

(16)

Geographical Positioning

(17)

2015 strategy

• Cost reduction

• Warm stacking groups of vessels to reduce opex

• Reduction of crew headcount

• Hiring freeze

• Cut in capex from US$50 million to US$30million

• Reduced from 4 to 3 new vessels: 2 units of 6000hp AHTS and 1 unit of AHT

• _Challenges

• Decline in demand within domestic market

• Competitive pricing environment

• Opportunities

• _{Focus on quality and efficiency}

• Intensify marketing efforts overseas

• Continue to invest in future fleet in preparation for normalization of demand

(18)

5 Years Review

31-Dec-2010 31-Dec-2011 31-Dec-2012 31-Dec-2013 31-Dec-2014

Assets

Liabilities Equity

Consolidated Financial Position (USD Million)

74.1

10.8 17.1 20.5

27.8