Public Expose PT Wintermar Offshore Marine Tbk The Bellezza Suites - Jakarta 9 May 2016 1
Agenda 1 Result of Annual General Meeting of Shareholders 2 Company Profile 3 Business Segment 4 Highlights of 2015 5 Industry summary 2015 6 Fleet 7 Industry Prospect 2016 8 Strategy 2016 9 5 Year Review 10 Financial Performance 11 Questions & Answers Session 2
Results of Annual General Meeting of Shareholders 3
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 with good track record Quality clients - multinational oil and gas companies The total fleet of 75 ships with a value of over USD 361 million * * as at 31 Dec 2015 4
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Business Segments 1. Own Vessels Division Own and operate a diversified fleet of Offshore Support Vessels Includes JV with other ship-owners 2. Chartering Division Leveraging on our expertise and market knowledge by tendering for work using third party vessels Providing QHSE support where needed 3. Ship Management and other Services Ship management services for third party ship-owners, including crew, technical, maintenance, operations, and agency services 6
2015 Highlights Sharp decline in oil prices Exploration projects significantly reduced, development projects postponed Clients demanded reductions in charter rates Sharp fall in demand for Offshore Vessels Reduction of Capital Expenditure Capital Expenditure reduced to US$13million Original plan of 4 new Vessels was reduced to 1 unit of 6000BHP AHTS delivered in 2015 2 vessels postponed to 2016 and 1 postponed to 2017 Vessels deployed into International markets High tier vessels worked in Myanmar, Brunei, Australia and Russia Cost control program Warm stacking of vessels to reduce operational costs Staff Hiring Freeze Reduction of crewing costs 7
2015 at a Glance Management reacted swiftly to reduce costs and preserve cash flow!"#$!"%& 8
Indonesian oil exploration hit hard in 2015 Realization of Exploration Activities in 1H2015 Realization Target Projection for FY2015 Exploration wells 17% ( 26 wells) 157 wells 71 wells Seismic Surveys 26% (12 activities) 46 activities 15 activities Non seismic 2 activities 23 activities 11 activities Re-entry Exploration wells 7 wells 27 wells 9 wells Source: SKK Migas, Bisnis Indonesia Budget spending was weighted towards the second half because of cost cutting and postponement of projects in the first semester 9
Low rate of realization of upstream oil and gas expenditure in Indonesia Source : Petrodata& SKK Migas 10
Procurement for goods and services in upstream oil and gas fell by 62% YOY in 2015! " # $ %" Source: SKK Migas. Petromindo Increase of local content in procurement 11
Oil and Gas Outlook may improve in 2017 Current consensus: Equilibrium in Demand and Supply is not expected until 2017 12
Creating a Sturdy Business Platform with Young and Diversified Fleet (hightier) (mid-tier) (low-tier) 12
Fleet composition based on value Fleet 2010 2011 2012 2013 2014 2015 +/- 2016E Low Tier 40 38 32 28 27 25-1 24 Mid Tier 17 26 27 36 38 38-38 High Tier 2 3 5 7 12 12-12 Total 59 67 64 71 77 75-74 By end 2015, 68% of the fleet comprised mid to high tier vessels 14
Increasing oil import dependency will put a growing strain on the government budget Cars, trucks and other vehicles: 1.2 million p.a. New motorcycles: 8 million p.a. Oil still accounts for 36% of the country s primary energy supply 15
Development projects with proven reserves are likely to continue Ande Ande Lumut (2018) Tangguh (2020) IDD (2016) Bukit Tua (2016) Madura (2017) Djangkrik (2017) Masela Field (2024) Some projects with production targets in the next few years are expected to commence in the coming year Sumber : SKK Migas 16
Industry Outlook 2016 Oil Prices - remain volatile but increase since the beginning of the year. No agreement amongst the major producers on limiting oil production Oil exploration many projects have stopped or are postponed. Oil companies have cut capex significantly Indonesia some activities have started in 2016 but contracts are very short term Offshore Supply Vessels (OSV) still facing oversupply of vessels as demand has suffered a sharp decline. However, utilization rate should improve as markets consolidate. 17
2016 Strategy Continue tight cost control Staff Hiring Freeze Salary freeze Capital expenditure limited to US$ 6 million 1 unit AHT delivered in January 2016 No further vessels expected for the rest of the year Focus on quality and safety Crew training and performance focus Building a strong safety culture Opportunities Potential for activity in Indonesian market as some projects start Wintermar subsidiary in Brunei provides access to Brunei market Continue to seek international markets Sale of vessels to conserve cash 18
5 Year Review 600.0 Consolidated Financial Position (USD Million) Assets Liabilities Equity 500.0 478.2 501.3 445.6 400.0 397.7 300.0 200.0 282.0 143.8 138.1 217.7 180.0 255.6 222.6 238.2 263.1 253.8 191.8 100.0-31-Dec-2011 31-Dec-2012 31-Dec-2013 31-Dec-2014 30-Dec-2015 19
5 Year Review Consolidated Statement of Income (USD Million) Revenue Gross profit Net income EBITDA 200.0 195.5 176.9 150.0 100.0 50.0 121.7 133.7 32.5 38.9 53.5 36.5 17.1 20.5 62.3 73.2 58.0 71.5 27.8 21.7 99.9 12.8 30.7 0.0-50.0 FY2011 FY2012 FY2013 FY2014 FY2015-5.7 20
# ' 200.0 150.0 121.7 133.7 195.5 176.9 99.9 60.0 50.0 40.0 32.5 38.9 62.3 58.0 100.0 30.0 50.0 20.0 10.0 12.8 0.0 FY2011 FY2012 FY2013 FY2014 FY2015 0.0 FY2011 FY2012 FY2013 FY2014 FY2015 Revenue (USD Million) Gross Profit (USD Million) 30.0 27.8 80.0 73.2 71.5 25.0 20.0 17.1 20.5 21.7 70.0 60.0 53.5 15.0 10.0 50.0 40.0 36.5 30.7 5.0 30.0 0.0 20.0-5.0-10.0-5.7 FY2011 FY2012 FY2013 FY2014 FY2015 10.0 0.0 FY2011 FY2012 FY2013 FY2014 FY2015 Net Income (USD Million) EBITDA (USD Million) 21
( ) Owned Vessel Chartering 120 60% 80 12.5% 100 80 60 40 20 48% 45% 52% 45% 14% 50% 40% 30% 20% 10% 70 60 50 40 30 20 10 4.6% 5.8% 6.7% 10.7% 9.0% 10.0% 7.5% 5.0% 2.5% - 2011 2012 2013 2014 2015 0% - 2011 2012 2013 2014 2015 0.0% Revenue (USD Mio) Gross Profit (USD Mio) GPM (%) Revenue (USD Mio) Gross Profit (USD Mio) GPM (%) Others TOTAL 25 25% 250 35% 20 18% 19% 19% 20% 200 27% 29% 32% 28% 30% 25% 15 10 13% 12% 15% 10% 150 100 20% 15% 5 5% 50 13% 10% 5% - 2011 2012 2013 2014 2015 0% - 2011 2012 2013 2014 2015 0% Revenue (USD Mio) Gross Profit (USD Mio) GPM (%) Revenue (USD Mio) Gross Profit (USD Mio) GPM (%) 22
Review of FY-2015-1 23
Review of FY-2015-2 Revenue - USD Million Gross Profit - USD Million FY2015 FY2014 176.9 50.0 FY2015 FY2014 58.0 110.9 99.9 65.9 27.1 54.7 6.9 11.3 9.1 2.4 5.8 2.2 1.3 12.8 Own vessel Chartering Others Total Own vessel Chartering Others Total 24
Review of Q1-2016 Revenue, EBITDA and Income Attributable to Shareholders - USD 000 29,247 Q1-2015 Q1-2016 Revenue Trend Over 5 Quarters - USD 000 29,247 24,599 22,571 23,499 23,267 23,267 9,428 9,676 76 (1,419) Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016 Revenue EBITDA Income attributable to shareholders 9,428 EBITDA Trend Over 5 Quarters - USD 000 9,676 Revenue Operating Profit Trend Over 5 Quarters - USD 000 2,528 2,594 7,617 7,552 6,099 702 507 Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016 Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016 EBITDA (837) Operating profit 25
Disclaimer Certain statements made in this presentation involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. Certain statements relating to business and operations of PT Wintermar Offshore Marine Tbk and Subsidiaries (the Company) are based on management s expectations, estimates and projections. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Certain statements are based upon assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such statements. The Company makes no commitment, and disclaims any duty, to update or revise any of these statements. This presentation is for informational purposes only and is not intended as a solicitation or offering of securities in any jurisdiction. The information contained in this presentation is not intended to qualify, supplement or amend information disclosed under corporate and securities legislation of any jurisdiction applicable to the Company and should not be relied upon for the purpose of making investment decisions concerning any securities of the Company. 26
Q&A Session 27
Thank you 28