RISKS ASSOCIATED WITH SHIPPING INDUSTRY

XXVIII xvi

D. RISKS ASSOCIATED WITH INVESTMENT IN SHARES OF THE COMPANY

1. Risk of illiquidity of the Offered Shares in this Initial Public Offering 2. Risk of fluctuations in price of the Offered Shares 3. Risk of dilution on share ownership of the shareholders in the event that the said shareholders do not participate in the limited public offerings that may be conducted by the Company in the future 4. Risk of the Company’s inability to pay dividends 5. Risk of global, regional and domestic changes, which may have adverse impact to business activities in Indonesia Management of the Company represents that all material business risks faced by the Company in conducting its business activities have been disclosed in the Prospectus, and are prepared based on the level of risk and exposure of each risk to the Company’s financial performance, beginning with the Company’s main risks. The risks described above are discussed in more detail in Chapter VI regarding Business Risks.

10. INFORMATION ON SUBSIDIARIES

Presented below are the Subsidiaries directly owned by the Company: No. Company Name The Company‟s Ownership Direct Year of Investment Year of Establishment Business Activities Operational Status

1 ABPL

99.91 2012 1980 shipping operating 2 IEL 99.93 2012 2006 shipping operating 3 MOS 99.99 2012 2007 shipyard operating 4 SOKL 99.80 2010 1999 shipping operating 5 PUL 99.99 2012 2006 shipping operating 6 SML 99.99 2013 2011 shipping operating 7 AMO 99.98 2012 2011 shipping operating 8 SIM 99.99 2012 2012 Shipping through SIM Subsidiaries operating The Company has indirect share ownership in the following SIM Subsidiaries: No. Company Name Subsidiary‟s Direct Ownership Year of Investment Operational Year Business Activities Operational Status Ownership 1 Success Marlina XXIII SA 100 2012 2012 Shipping Operating 2 Success Marlina Pte Ltd 100 2013 - Shipping Not Yet Operating

11. DIVIDEND POLICY

New shareholders with regard to this Initial Public Offering will have equal and similar rights in all respects with the holders of the Company’s existing issued and fully paid-up shares, including the rights to receive dividend distributions. The Company has no plan to distribute cash dividends for the financial year of 2014, considering that in line with the Company’s financial projection, the entire profit generated in the financial year of 2014 shall be used to support the Company’s plan to expand the business of its Subsidiaries, to pay a portion of bank loan of its Subsidiaries or to provide additional working capital as set forth in Use of Proceeds from Initial Public Offering. The Company’s management plans to distribute cash dividends to the Company’s shareholders at a maximum amount of 30 thirty percent of the Company’s consolidated comprehensive income starting for the book year 2015 and will be paid start in 2016, without disregard to the Company’s financial health and without prejudice to the right of the AGM of the Company to determine otherwise in accordance with the Company’s Articles of Association. XXIX xvi No. e e pany‟s of ment of hment ess ities tional s 1 99.91 2012 1980 pping operating 2 99.93 2012 2006 pping operating 3 99.99 2012 2007 ard operating 4 99.80 2010 1999 pping operating 5 99.99 2012 2006 pping operating 6 99.99 2013 2011 pping operating 7 99.98 2012 2011 pping operating 8 99.99 2012 2012 pping operating iary‟s Direct of perational Business tus nership 2 2013 - pping g xvii Payment of cash dividends in the future will depend on a variety of factors, including the retained earnings, operational and financial performance, financial condition, liquidity, future business prospects, cash requirements, business opportunities and compliance with laws and regulations as well as other factors deemed relevant by the Board of Directors. Cash dividends will be paid in Rupiah. Shareholders, who are registered as of the record date, are entitled to the full amount of paid dividend and subject to the applicable withholding taxes in accordance with the prevailing tax regulations in Indonesia. Dividends received by foreign shareholders will be subject to income tax in accordance with the prevailing tax regulations in Indonesia.