Investor 5 September 2017 Eng

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PT Wintermar Offshore Marine Tbk

5 September 2017

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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 74 offshore vessels *

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

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

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Business Segments

1. Own Vessels Division

• We own and operate a diversified fleet of Offshore Support Vessels,

providing marketing, ship management and technical service for our

own fleet.

2. Chartering Division

• Leveraging on our expertise and market knowledge, we also tender for

work using third party vessels, providing QHSE support where needed.

3. Ship Management and other Services

• Our shipping management team offers ship management service for

third party ship owners, incorporating crew, technical, maintenance,

operations, and agency services. We may also hold the marketing

rights to these vessels under our management.

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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)

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Indonesia’s oil supply is not keeping up with

demand

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Improving outlook for world demand and supply

balance supports more stable oil prices in 2017

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7 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

C A P E X ( U S $ b il li o n , re a l)

Conventional LNG Tight/acid gas & heavy oil Deepwater Unconventional gas Q4 2015

Source: Wood Mackenzie UDT

Deepwater investment bottomed in 2016

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Indonesia is underpinned by several development

projects in 2017

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

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Several development projects underpin activity in

Indonesia in 2017-18

Sumber : SKK Migas

9 Some projects with production targets in the next few years are

likely to commence in the coming year

Masela

Field

(2024)

Tangguh (2020)

IDD

(2016)

Djangkrik

(2017)

Ande Ande Lumut (2018)

Bukit Tua (2016) Madura (2017)

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Fall off in Demand for OSVs has triggered sharp

drops in charter rates although activity is rising

Charter rates expected to stay low in 2017 due to oversupply although

utilization will likely recover with firmer oil prices

(11)

Asia Pacific OSV still plagued by low utilization

rates

11

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Composition of high value vessels in fleet mix

12

• Plan to sell more low tier Vessels in 2017

• By end 2017, 73% of the fleet expected to comprise of mid to high

tier vessels

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Actions taken by Management

13 1) Expand to new markets – Middle East, PNG

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

3) Wintermar Integrated Safety Program

4) Cost Control measures:

• “Cold Stacking”- Laying up older vessels

• “Warm stacking” groups of vessels to reduce opex

• Reducing crew salary expenses

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1H2017 Results

1) Owned Vessel revenue of US$10.9million for 2Q2017 was

15.6% higher than 1Q2017

2) Utilization rate of fleet jumped to 56% in 2Q2017 compared

to 49% for 1Q2017, reflecting project commencement in

Indonesia while price competition resulted in lower charter

rates

3) Total Revenue fell 43% from 1H2016 to US$27.7million for

1H2017

4) Net Gearing remains conservative at 50%, the same level as

at end 2016

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Looking ahead at 2017

• OPEC Commitment to reduce supply seems to be holding

Oil Prices steady

• Increase

in

upstream

activity

is

underpinned

by

development projects in Indonesia

• OSV industry still facing oversupply, will take time to

recover

• Indonesian

government

looking

to

attract

O+G

investment through the “Gross Split” scheme

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Expanding marketing network to Brunei, India, Middle East and

South America where there are longer term charters.

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5 Years Review

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Review 1H Result - 2017

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Owned Vessel Division is showing

improvement during 1H - 2017

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Attracting Prominent Oil Companies through

Excellent Safety and Security Track Record

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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.

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5 Years Review

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5 Years Review

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Review 1H Result - 2017

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Owned Vessel Division is showing

improvement during 1H - 2017

(5)

Attracting Prominent Oil Companies through

Excellent Safety and Security Track Record

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