Public Expose Material 18 May 2017

(1)

P U B L I C

E X P O S E

PT

Wintermar

Offshore

Marine

Tbk

(2)

Agenda

1 Results of the General Meeting of Shareholders

2 Corporate Profile

3 Business Segments

4 2016 Business Highlight and Review

5 Industry Outlook and Summary

6 Fleet Composition

7 Review of Financial Performance

8 Question and Answer Session

(3)

Results of General Meeting of

Shareholders

Agenda 1

Approval of Annual Report of the Company 2016 regarding the BOD

Report of the Activities of the Company, Report of Implementation of

Supervisory Duty of Board of Commissioners (“BOC”) and the Approval

to the Financial Report of the Company for the year ended on 31st of

December 2016;

Agenda 2

Appointment of Public Accountant to Audit Financial Report of the

Company for Financial Year 2017;

Agenda 3

Determination of Remuneration of members of BOC and BOD for

(4)

Results of General Meeting of

Shareholders

Agenda 1

Approval of Change of the Composition of the BOD and BOC;

Agenda 2

Approval of Issuance of New Shares without Pre-emptive Rights in

accordance with provisions in Regulation of Indonesia Financial

Services Authority (“OJK”) No. 38/POJK.04/2014 by issuing ordinary

shares;

Agenda 3

To grant authority to the BOC of the Company to increase the Issued

Capital and Paid Up Capital of the Company and to amend the Articles

of Association of the Company through the above Proposal of Issuance

of Shares without Pre-emptive Rights.

EXTRAODINARY GENERAL MEETING OF

SHAREHOLDERS

(5)

Company Profile

• National company working to international standards

• First Indonesian shipping company to obtain certification for Integrated Management

System from Lloyds Register Quality Assurance

• International client base in Asia and Middle East

• Professional and experienced management team

• High Quality clients - multinational oil and gas companies

• Fleet of over 70 offshore vessels *

• Wide range of services – Rig move, Crew change, Emergency rescue, Offshore

supply, diving support, seismic support, accommodation, etc.

(6)

Business Segments

1. Own Vessels Division

• Owner and Operator of a diversified fleet of Offshore Support Vessels,

providing marketing, ship management and technical service for our own

fleet.

• Includes Joint Ventures with other Ship Owners.

2. Chartering Division

• Using third party vessels to support our clients’ needs.

3. Ship Management and other Services

• Ship Management for third party ship owners, incorporating crewing,

technical, maintenance, operations, and agency services.

(7)

2016 Business Highlight and Review

Expanded to

new markets

– Middle East

and Asia

Reduced installment

payments on loans

Warm

stacking

inactive

vessels to

reduce cost

Management took

quick action to

reduce cost and

preserve cash flow

(8)

Actions taken by Management in 2016

1) Expand to new markets – Middle East and Asia

2) New Clients in EPIC (Engineering & Procurement etc)

industry

3) Wintermar Integrated Safety Program

4) Cost reduction

• Cold Stacking - laying up older vessels

• Warm stacking groups of non operating vessels to

reduce operating expenses

• Limitations on crew salary expenses

(9)

INDUSTRY SUMMARY AND

PROSPECTS

(10)

Increasing upstream spending in 2017

Global Upstream E+P spending is projected to rise by 7% in 2017, after 2

consecutive years of sharp declines (-26% and -23% for 2015 and 2016,

respectively)

(11)

Indonesia’s oil supply is not keeping up with

demand

(12)

Improving outlook for world demand and supply

balance supports higher oil prices in 2017

(13)

Asia Pacific Upstream expenditure set to

bottom and pick up, especially in Deepwater

0 20 40 60 80 100 120 140

2014 2015 2016 2017 2018 2019 2020 2021

PEX (US$

billion,

real)

Conventional LNG Tight/acid gas & heavy oil

Deepwater Unconventional gas Q4 2015

Deepwater

investment

(14)

Indonesia is underpinned by several

development projects in 2017

The majority of Asia Pacific FID projects in 2016 are in Indonesia.

Asia Pacific projects to FID in 2016

Fiel ds t hat FID in

2016

Count ry

Breakevens Commercial

Reserves

(mmboe)

Laverda

Aust ral ia

58. 6

68. 0

Tangguh Phase 2

Indonesia

46. 8

568. 1

KG-DWN-98/ 2 Fiel ds

India

40. 0

446. 0

Akat ara

Indonesia

24. 2

11. 1

B15

Mal aysia

21. 5

38. 2

Source: Wood Mackenzie

(15)

Development projects underpin activity in

Indonesia in 2017-18

Some projects with production targets in the next few

years are likely to commence in the coming year

Masela

Field

(2024)

Tangguh (2017)

IDD

(2016)

Djangkrik

(2017)

Ande Ande Lumut (2018)

Bukit Tua (2016) Madura (2017)

(16)

Asia Pacific OSV still plagued

by low

utilization rates

16 Source:

IHS Energy

(17)

Charter rates remain low despite

better OSV utilization

(18)

Industry Prospects 2017

• OPEC

Commitment

to

reduce

supply

has

stabilized oil prices

• Increase in upstream activity underpinned by

development projects in Indonesia

• OSV industry still facing oversupply, will take time

to recover

• Indonesian government looking to attract oil and

gas investment – gross split scheme

(19)

Fleet Composition

• Plan to sell more low tier vessels in 2017.

Fleet

2010

2011

2012

2013

2014

2015

2016

2017E

Low

tier

40

38

32

28

27

25

24

18 Mid

tier

17

26

27

36

38 High

tier

2

3

5

7

12

(20)

REVIEW OF FINANCIAL

PERFORMANCE

(21)

(22)

(23)

Results 1Q - 2017

1) Revenue for Owned Vessels fell 39%YOY to US$13.1mil – lagged

effect of depressed oil prices in 2016

2) Utilization rate of fleet fell to 49% reflecting lack of tenders in

2016, price competition resulted in lower charter rates

3) Loss of US$1.1million at Gross profit level, reduced from a loss

of

US$1.5million

in

4Q2016,

margins

improved

from

-13% to -11%

4) Net Gearing fell to 49% as at end March 2017 compared to 57%

and 50% as at end 2015 and end 2016

(24)

Review 1Q

-2017

(25)

Review 1Q

-2017

(26)

Review 1Q

-2017

(27)

Growth of V

a

lue of Contracts

on Hand under

W

intermar Group

(28)

(29)

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.