Public Expose Material 7 May 2015
PT W interm ar O ffshore M arine T bk
Public Expose
Financial Club – Jakarta
7 May 2015
1
2014 at a glance
2
2014 Highlights
• Strengthened Equity base
• IFC exercised option to convert US$ 10 million loan to equity,
becoming a shareholder with 4.7% stake in WINS
• Placement of new non pre-emptive shares raising US$8mil
• New Fleet Additions
• 3 Vessels already delivered in 1H2014, including 1 unit PSV and 1
unit AHTS 8000 BHP worth US$55mil
• 4 Fast Multipurpose Supply Vessels (“FMSV”) from acquisition of
company complements fleet capabilities
• Government and regulatory factors
• Delays in project approvals from regulator
• General and Presidential elections dominated during the year
• New government of President Joko Widodo is very supportive of
maritime and energy industries
• Expansion into new Regional markets
• First Indonesian flagged vessel in Brunei
• High tier vessels started work in Myanmar and Vietnam
3
Company Profile
• National company working to international standards
• Innovative and first mover in the market
• First Indonesian shipping company to obtain certification for Integrated Management
System from Lloyds Register Quality Assurance
• Professional and experienced management team
• Quality clients - multinational oil and gas companies
• Good track record as owner and operator of offshore support vessels for oil and gas
companies
• Wide variety of vessels and young fleet provide a range of services to clients
• Transition from low value to high value fleet contributes to profit growth
• The total fleet of 77 ships with a value of over USD 370 million *
* as at 31 Dec 2014
4
Business Segments
1. Own Vessels Division
• Operations, Technical support, Commercial
• Gross Margins averaged 45% in FY2014
1. Chartering Division
• Tender for 3rd party vessels - Commercial only
• Gross Margins averaged 10.7% in FY2014
3. Ship Management and other Services
• Manage third party vessels – operations and fleet
• Agency and other value added services for clients
• Gross Margins range between 12% to 28% in 2014
Higher value vessels drive gross margin expansion
5
Industry Outlook
Low rate of realization of upstream expenditure in Indonesian Oil and Gas
Total Investment
(in US$ billion)
Investment
Years
Approved
Oil and Gas
Investment
Actual
Oil and Gas
Investment
Percentage
2013
23.5
19.32
82%
2014
25.6
18.7
73%
2015
19.9
• 2014 - Elections and delays at SKK Migas affected
the approval rate of planned upstream projects
• 2015 - Approved investment commitments in 2015 are
US$20billion, compared to actual investment of
$18.7billion in 2014
Sumber : SKK Migas
6
US Oil Production growth in 2014 was the
largest in more than 100 years
Jump in US oil production and
OPEC’s decision to maintain oil
production has contributed to
global oversupply and falling oil
prices
Source: U.S. Energy Information
Administration, Petroleum Supply Monthly
7
US Rig count is declining in response to
sharply lower oil prices…
… which may trigger a
recovery in oil prices in the
coming years
8
Global demand and supply expected
to regain equilibrium in 2016
9
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
10
Development projects with proven reserves
are likely to continue
Tangguh
IDD
Djangkrik
Masela
Field
With the current oil price fluctuations, exploration has been
postponed but is expected to continue when oil prices find a new
equilibrium
11
Creating a Sturdy Business Platform with
Young and Diversified Fleet
(hightier)
(mid-tier)
(low-tier)
Fleet composition as of
Type of vessels
Total
31 Dec
2011
31 Dec
2012
31 Dec
2013
31 Dec
2014
-/+
2015
5
9
3
3
7
2
3
32
1
2
1
9
3
6
4
5
8
2
3
5
2
3
28
1
3
1
13
3
10
4
5
7
1
3
5
2
3
26
1
3
1
13
4
11
4
-1
-1
-2
-4
-----+1
-
5
6
0
3
3
2
3
22
1
3
1
13
4
12
4
• Aim to sell low value fleet over
next few years
Offshore tug
Heavy Load Offshore barge
Accommodation Work Vessel
Fast utility Vessel
Utility Vessel
Anchor handling tug
Azimuth Stern drive tug (ASD tug)
5
10
6
4
7
2
4
38
1
2
1
9
4
5
4
Fast Multipurpose Supply Vessel
--
--
--
1
--
1
Anchor Handling Tug and Supply
1
1
1
1
+2
3
• Fewer competitors in High tier
segment
Fast Multipurpose Supply Vessel
26
--
27
--
36
--
39
3
+3
--
42
3
Anchor Handling Tug and Supply
1
3
4
5
--
5
Platform Supply Vessel (PSV)
2
2
3
4
--
5
3
5
7
12
--
12
67
64
71
77
-1
76
Crew boat
Tug boat
Flat top barge
Landing craft
Oil Barge
Offshore tug
Other
Diversified fleet
• Mid tier vessels serve production
and construction phase
• Provides a one-stop solution to
valued customers
Young and technologically
sophisticated fleet
• Fleet expansion into new and
higher value vessels
Focus on vessel in higher
value chain
• Higher barriers to entry as track
record counts with international oil
companies
• To differentiate from other
players by catering to very
demanding top tier oil and gas
companies
12
Composition of high value vessels in fleet mix
Armada
Low Tier
Mid Tier
High Tier
Total
2010
40
17
2
59
2011
2012
38
26
3
67
32
27
5
64
Owned Vessel Revenue % YTD Dec-2014
High tier,
51%
2013
Low tier,
10%
28
36
7
71
26
39
12
77
+/-
2015E
-4
+3
-1
22
42
12
76
Owned Vessel Gross Profit %
YTD Dec-2014 Low tier,
7%
High tier,
58%
Mid tier,
39%
2014
Mid tier,
35%
By end 2015, 71% of the fleet will comprise mid to high tier vessels
13
Challenging environment in 2015
•
Sharply lower oil prices have led to cuts in upstream spending and
retrenchments by companies in the oil and gas industry
•
Most exploration work has been postponed, production continues
but with margin squeeze
•
Look to overseas markets for utilization but at lower margins–
Myanmar, Vietnam, Brunei, Malaysia
14
Opportunities in 2015
• President Joko Widodo’s government is very
supportive of maritime and energy industries
• Pick up in Indonesian offshore activity is likely
by end 2015
15
Geographical Positioning
16
2015 strategy
• Cost reduction
• Warm stacking groups of vessels to reduce opex
• Reduction of crew headcount
• Hiring freeze
• Cut in capex from US$50 million to US$30million
• Reduced from 4 to 3 new vessels: 2 units of 6000hp AHTS and 1 unit
of AHT
• Challenges
• Decline in demand within domestic market
• Competitive pricing environment
• Opportunities
• Focus on quality and efficiency
• Intensify marketing efforts overseas
• Continue to invest in future fleet in preparation for normalization of
demand
• Investigating new business ventures in related areas to marine and
oil and gas support
17
5 Years Review
Consolidated Financial Position (USD Million)
600.0
Assets
500.0
478.2
Liabilities
397.7
Equity
400.0
501.3
263.4
282.0
300.0
255.6222.6
230.7
217.7180.0
200.0
237.9
143.8
138.1
120.9
109.8
100.0
-
31-Dec-2010
31-Dec-2011
31-Dec-2012
31-Dec-2013
31-Dec-2014
Consolidated Statement of Income (USD Million)
Revenue
Net income
200.0
180.0
Gross profit
EBITDA
195.5
176.9
160.0
133.7
140.0
121.7
120.0
100.0
80.0
74.1
60.0
40.0
20.0
73.2
62.3
38.9
32.5
20.6
24.4
10.8
71.5
58.0
53.5
36.5
17.1
20.5
FY2011
FY2012
27.8
21.7
0.0
FY2010
FY2013
FY2014
18
5 Years Review & CAGR
195.5
200.0
176.9
180.0
160.0
121.7
140.0
133.7
38.9
32.5
40.0
74.1
58.0
60.0
50.0
120.0
100.0
62.3
30.0
80.0
20.6
20.0
60.0
40.0
10.0
20.0
0.0
0.0
FY2010
FY2011
FY2012
FY2013
FY2014
FY2010
27.8
25.0
FY2013
FY2014
40.0
30.0
10.0
71.5
FY2013
FY2014
53.5
50.0
10.8
73.2
70.0
60.0
17.1
20.0
15.0
80.0
21.7
20.5
FY2012
Gross Profit (USD Million)
Revenue (USD Million)
30.0
FY2011
36.5
24.4
20.0
5.0
10.0
0.0
0.0
FY2010
FY2011
FY2012
FY2013
Net Income (USD Million)
*) CAGR : 2009 – 2014 (5 years)
FY2014
FY2010
FY2011
FY2012
EBITDA (USD Million)
19
Profitability - Segment
Owned Vessel
Chartering
120
54%
52%
100
80
60
47%
52%
50%
48%
48%
45%
40
45%
46%
44%
20
42%
-
40%
2010
2011
2012
Revenue (USD Mio)
2013
Gross Profit (USD Mio)
80
70
60
50
40
30
20
10
-
2014
12.5%
10.7%10.0%
5.8%
3.4%
2.5%
2011
Revenue (USD Mio)
Others
25%
19%
18%
15
30%
250
25%
200
20%
12%
10%
28%
27%
29%
32%
33%
-
0%
-
2012
2013
Gross Profit (USD Mio)
2014
GPM (%)
30%
25%
20%
15%
10%
50
Revenue (USD Mio)
GPM (%)
100
5%
2011
Gross Profit (USD Mio)
2014
35%
150
5
2010
2013
15%
13%
10
2012
TOTAL
25
20
5.0%
4.6%
0.0%
2010
GPM (%)
7.5%
6.7%
5%
0%
2010
2011
Revenue (USD Mio)
2012
2013
Gross Profit (USD Mio)
2014
GPM (%)
20
Attracting Prominent Oil Companies through
Excellent Track Record in Safety and Security
21
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.
22
Public Expose
Financial Club – Jakarta
7 May 2015
1
2014 at a glance
2
2014 Highlights
• Strengthened Equity base
• IFC exercised option to convert US$ 10 million loan to equity,
becoming a shareholder with 4.7% stake in WINS
• Placement of new non pre-emptive shares raising US$8mil
• New Fleet Additions
• 3 Vessels already delivered in 1H2014, including 1 unit PSV and 1
unit AHTS 8000 BHP worth US$55mil
• 4 Fast Multipurpose Supply Vessels (“FMSV”) from acquisition of
company complements fleet capabilities
• Government and regulatory factors
• Delays in project approvals from regulator
• General and Presidential elections dominated during the year
• New government of President Joko Widodo is very supportive of
maritime and energy industries
• Expansion into new Regional markets
• First Indonesian flagged vessel in Brunei
• High tier vessels started work in Myanmar and Vietnam
3
Company Profile
• National company working to international standards
• Innovative and first mover in the market
• First Indonesian shipping company to obtain certification for Integrated Management
System from Lloyds Register Quality Assurance
• Professional and experienced management team
• Quality clients - multinational oil and gas companies
• Good track record as owner and operator of offshore support vessels for oil and gas
companies
• Wide variety of vessels and young fleet provide a range of services to clients
• Transition from low value to high value fleet contributes to profit growth
• The total fleet of 77 ships with a value of over USD 370 million *
* as at 31 Dec 2014
4
Business Segments
1. Own Vessels Division
• Operations, Technical support, Commercial
• Gross Margins averaged 45% in FY2014
1. Chartering Division
• Tender for 3rd party vessels - Commercial only
• Gross Margins averaged 10.7% in FY2014
3. Ship Management and other Services
• Manage third party vessels – operations and fleet
• Agency and other value added services for clients
• Gross Margins range between 12% to 28% in 2014
Higher value vessels drive gross margin expansion
5
Industry Outlook
Low rate of realization of upstream expenditure in Indonesian Oil and Gas
Total Investment
(in US$ billion)
Investment
Years
Approved
Oil and Gas
Investment
Actual
Oil and Gas
Investment
Percentage
2013
23.5
19.32
82%
2014
25.6
18.7
73%
2015
19.9
• 2014 - Elections and delays at SKK Migas affected
the approval rate of planned upstream projects
• 2015 - Approved investment commitments in 2015 are
US$20billion, compared to actual investment of
$18.7billion in 2014
Sumber : SKK Migas
6
US Oil Production growth in 2014 was the
largest in more than 100 years
Jump in US oil production and
OPEC’s decision to maintain oil
production has contributed to
global oversupply and falling oil
prices
Source: U.S. Energy Information
Administration, Petroleum Supply Monthly
7
US Rig count is declining in response to
sharply lower oil prices…
… which may trigger a
recovery in oil prices in the
coming years
8
Global demand and supply expected
to regain equilibrium in 2016
9
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
10
Development projects with proven reserves
are likely to continue
Tangguh
IDD
Djangkrik
Masela
Field
With the current oil price fluctuations, exploration has been
postponed but is expected to continue when oil prices find a new
equilibrium
11
Creating a Sturdy Business Platform with
Young and Diversified Fleet
(hightier)
(mid-tier)
(low-tier)
Fleet composition as of
Type of vessels
Total
31 Dec
2011
31 Dec
2012
31 Dec
2013
31 Dec
2014
-/+
2015
5
9
3
3
7
2
3
32
1
2
1
9
3
6
4
5
8
2
3
5
2
3
28
1
3
1
13
3
10
4
5
7
1
3
5
2
3
26
1
3
1
13
4
11
4
-1
-1
-2
-4
-----+1
-
5
6
0
3
3
2
3
22
1
3
1
13
4
12
4
• Aim to sell low value fleet over
next few years
Offshore tug
Heavy Load Offshore barge
Accommodation Work Vessel
Fast utility Vessel
Utility Vessel
Anchor handling tug
Azimuth Stern drive tug (ASD tug)
5
10
6
4
7
2
4
38
1
2
1
9
4
5
4
Fast Multipurpose Supply Vessel
--
--
--
1
--
1
Anchor Handling Tug and Supply
1
1
1
1
+2
3
• Fewer competitors in High tier
segment
Fast Multipurpose Supply Vessel
26
--
27
--
36
--
39
3
+3
--
42
3
Anchor Handling Tug and Supply
1
3
4
5
--
5
Platform Supply Vessel (PSV)
2
2
3
4
--
5
3
5
7
12
--
12
67
64
71
77
-1
76
Crew boat
Tug boat
Flat top barge
Landing craft
Oil Barge
Offshore tug
Other
Diversified fleet
• Mid tier vessels serve production
and construction phase
• Provides a one-stop solution to
valued customers
Young and technologically
sophisticated fleet
• Fleet expansion into new and
higher value vessels
Focus on vessel in higher
value chain
• Higher barriers to entry as track
record counts with international oil
companies
• To differentiate from other
players by catering to very
demanding top tier oil and gas
companies
12
Composition of high value vessels in fleet mix
Armada
Low Tier
Mid Tier
High Tier
Total
2010
40
17
2
59
2011
2012
38
26
3
67
32
27
5
64
Owned Vessel Revenue % YTD Dec-2014
High tier,
51%
2013
Low tier,
10%
28
36
7
71
26
39
12
77
+/-
2015E
-4
+3
-1
22
42
12
76
Owned Vessel Gross Profit %
YTD Dec-2014 Low tier,
7%
High tier,
58%
Mid tier,
39%
2014
Mid tier,
35%
By end 2015, 71% of the fleet will comprise mid to high tier vessels
13
Challenging environment in 2015
•
Sharply lower oil prices have led to cuts in upstream spending and
retrenchments by companies in the oil and gas industry
•
Most exploration work has been postponed, production continues
but with margin squeeze
•
Look to overseas markets for utilization but at lower margins–
Myanmar, Vietnam, Brunei, Malaysia
14
Opportunities in 2015
• President Joko Widodo’s government is very
supportive of maritime and energy industries
• Pick up in Indonesian offshore activity is likely
by end 2015
15
Geographical Positioning
16
2015 strategy
• Cost reduction
• Warm stacking groups of vessels to reduce opex
• Reduction of crew headcount
• Hiring freeze
• Cut in capex from US$50 million to US$30million
• Reduced from 4 to 3 new vessels: 2 units of 6000hp AHTS and 1 unit
of AHT
• Challenges
• Decline in demand within domestic market
• Competitive pricing environment
• Opportunities
• Focus on quality and efficiency
• Intensify marketing efforts overseas
• Continue to invest in future fleet in preparation for normalization of
demand
• Investigating new business ventures in related areas to marine and
oil and gas support
17
5 Years Review
Consolidated Financial Position (USD Million)
600.0
Assets
500.0
478.2
Liabilities
397.7
Equity
400.0
501.3
263.4
282.0
300.0
255.6222.6
230.7
217.7180.0
200.0
237.9
143.8
138.1
120.9
109.8
100.0
-
31-Dec-2010
31-Dec-2011
31-Dec-2012
31-Dec-2013
31-Dec-2014
Consolidated Statement of Income (USD Million)
Revenue
Net income
200.0
180.0
Gross profit
EBITDA
195.5
176.9
160.0
133.7
140.0
121.7
120.0
100.0
80.0
74.1
60.0
40.0
20.0
73.2
62.3
38.9
32.5
20.6
24.4
10.8
71.5
58.0
53.5
36.5
17.1
20.5
FY2011
FY2012
27.8
21.7
0.0
FY2010
FY2013
FY2014
18
5 Years Review & CAGR
195.5
200.0
176.9
180.0
160.0
121.7
140.0
133.7
38.9
32.5
40.0
74.1
58.0
60.0
50.0
120.0
100.0
62.3
30.0
80.0
20.6
20.0
60.0
40.0
10.0
20.0
0.0
0.0
FY2010
FY2011
FY2012
FY2013
FY2014
FY2010
27.8
25.0
FY2013
FY2014
40.0
30.0
10.0
71.5
FY2013
FY2014
53.5
50.0
10.8
73.2
70.0
60.0
17.1
20.0
15.0
80.0
21.7
20.5
FY2012
Gross Profit (USD Million)
Revenue (USD Million)
30.0
FY2011
36.5
24.4
20.0
5.0
10.0
0.0
0.0
FY2010
FY2011
FY2012
FY2013
Net Income (USD Million)
*) CAGR : 2009 – 2014 (5 years)
FY2014
FY2010
FY2011
FY2012
EBITDA (USD Million)
19
Profitability - Segment
Owned Vessel
Chartering
120
54%
52%
100
80
60
47%
52%
50%
48%
48%
45%
40
45%
46%
44%
20
42%
-
40%
2010
2011
2012
Revenue (USD Mio)
2013
Gross Profit (USD Mio)
80
70
60
50
40
30
20
10
-
2014
12.5%
10.7%10.0%
5.8%
3.4%
2.5%
2011
Revenue (USD Mio)
Others
25%
19%
18%
15
30%
250
25%
200
20%
12%
10%
28%
27%
29%
32%
33%
-
0%
-
2012
2013
Gross Profit (USD Mio)
2014
GPM (%)
30%
25%
20%
15%
10%
50
Revenue (USD Mio)
GPM (%)
100
5%
2011
Gross Profit (USD Mio)
2014
35%
150
5
2010
2013
15%
13%
10
2012
TOTAL
25
20
5.0%
4.6%
0.0%
2010
GPM (%)
7.5%
6.7%
5%
0%
2010
2011
Revenue (USD Mio)
2012
2013
Gross Profit (USD Mio)
2014
GPM (%)
20
Attracting Prominent Oil Companies through
Excellent Track Record in Safety and Security
21
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.
22