RISKS ASSOCIATED WITH SHIPYARD SERVICES BUSINESS ACTIVITIES

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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.