Public Expose Material 9 May 2016

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1

P u b l i c E x p o s e

PT Wintermar Offshore Marine Tbk

The Bellezza Suites - Jakarta

9 May 2016


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Agenda

1

Result of Annual General Meeting of Shareholders

2

Company Profile

3

Business Segment

4

Highlights of 2015

5

Industry summary 2015

6

Fleet

7

Industry Prospect 2016

8

Strategy 2016

9

5 Year Review

10

Financial Performance


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Results of Annual General Meeting of

Shareholders


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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 with good track

record

Quality clients - multinational oil and gas companies

The total fleet of 75 ships with a value of over USD 361 million *


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Business Segments

1. Own Vessels Division

• Own and operate a diversified fleet of Offshore Support

Vessels

• Includes JV with other ship-owners

2. Chartering Division

• Leveraging on our expertise and market knowledge by

tendering for work using third party vessels

• Providing QHSE support where needed

3. Ship Management and other Services

• Ship management services for third party ship-owners,

including crew, technical, maintenance, operations, and agency

services


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2015 Highlights

Sharp decline in oil prices

Exploration

projects

significantly

reduced,

development

projects

postponed

Clients demanded reductions in charter rates

Sharp fall in demand for Offshore Vessels

Reduction of Capital Expenditure

Capital Expenditure reduced to US$13million

Original plan of 4 new Vessels was reduced to 1 unit of 6000BHP AHTS

delivered in 2015

2 vessels postponed to 2016 and 1 postponed to 2017

Vessels deployed into International markets

• High tier vessels worked in Myanmar, Brunei, Australia and Russia

Cost control program

• Warm stacking of vessels to reduce operational costs

• Staff Hiring Freeze


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2015 at a Glance

! "#$

! "%&

Management reacted

swiftly to reduce costs

and


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Realization of Exploration Activities in 1H2015

Realization

Target

Projection for

FY2015

Exploration wells

17% ( 26 wells)

157 wells

71 wells

Seismic Surveys

26% (12

activities)

46

activities

15 activities

Non seismic

2 activities

23

activities

11 activities

Re-entry Exploration

wells

7 wells

27 wells

9 wells

Source: SKK Migas, Bisnis Indonesia

Indonesian oil exploration hit hard in 2015

Budget spending was weighted towards the second half

because of cost cutting and postponement of projects in the

first semester


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Low rate of realization of upstream oil and gas

expenditure in Indonesia


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Procurement for goods and services in upstream

oil and gas fell by 62% YOY in 2015

Source: SKK Migas. Petromindo

Increase of local content in procurement

!

"

#


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Current consensus: Equilibrium in Demand and Supply is

not expected until 2017


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Creating a Sturdy Business Platform with

Young and Diversified Fleet

(l

o

w

-t

ie

r)

(m

id

-t

ie

r)

(h

ig

h

-ti

e


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Fleet composition based on value

Fleet

2010

2011

2012

2013

2014

2015

+/-

2016E

Low Tier

40

38

32

28

27

25

-1

24

Mid Tier

17

26

27

36

38

38

-

38

High Tier

2

3

5

7

12

12

-

12

Total

59

67

64

71

77

75

-

74


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Oil still accounts for 36% of the country’s primary energy

supply

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.


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Development projects with proven reserves

are likely to continue

Sumber : SKK Migas

Some projects with production targets in the next few years are

expected 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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Industry Outlook 2016

Oil Prices -

remain volatile but increase since the beginning of the year.

No agreement amongst the major producers on limiting oil production

Oil exploration –

many projects have stopped or are postponed. Oil

companies have cut capex significantly

Indonesia –

some activities have started in 2016 but contracts are very

short term

Offshore Supply Vessels (OSV) –

still facing oversupply of vessels as

demand has suffered a sharp decline. However, utilization rate should

improve as markets consolidate.


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2016 Strategy

Continue tight cost control

• Staff Hiring Freeze

• Salary freeze

Capital expenditure limited to US$ 6 million

• 1 unit AHT delivered in January 2016

• No further vessels expected for the rest of the year

Focus on quality and safety

Crew training and performance focus

Building a strong safety culture

Opportunities

Potential for activity in Indonesian market as some projects start

Wintermar subsidiary in Brunei provides access to Brunei market

Continue to seek international markets


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5 Year Review

282.0

397.7

478.2

501.3

445.6

138.1

217.7

255.6

238.2

191.8

143.8

180.0

222.6

263.1

253.8

-100.0

200.0

300.0

400.0

500.0

600.0

31-Dec-2011

31-Dec-2012

31-Dec-2013

31-Dec-2014

30-Dec-2015

Assets

Liabilities

Equity


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121.7

133.7

195.5

176.9

99.9

32.5

38.9

62.3

58.0

12.8

17.1

20.5

27.8

21.7

-5.7

36.5

53.5

73.2

71.5

30.7

-50.0

0.0

50.0

100.0

150.0

200.0

FY2011

FY2012

FY2013

FY2014

FY2015

Revenue

Gross profit

Net income

EBITDA

Consolidated Statement of Income (USD Million)


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# '

121.7 133.7 195.5 176.9 99.9 0.0 50.0 100.0 150.0 200.0

FY2011 FY2012 FY2013 FY2014 FY2015

Revenue (USD Million)

32.5 38.9 62.3 58.0 12.8 0.0 10.0 20.0 30.0 40.0 50.0 60.0

FY2011 FY2012 FY2013 FY2014 FY2015

Gross Profit (USD Million)

17.1 20.5 27.8 21.7 -5.7 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0

FY2011 FY2012 FY2013 FY2014 FY2015

Net Income (USD Million)

36.5 53.5 73.2 71.5 30.7 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0

FY2011 FY2012 FY2013 FY2014 FY2015

EBITDA (USD Million)


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(

)

48% 45% 52%

45% 14% 0% 10% 20% 30% 40% 50% 60% -20 40 60 80 100 120

2011 2012 2013 2014 2015

Owned Vessel

Revenue (USD Mio) Gross Profit (USD Mio) GPM (%)

4.6% 5.8% 6.7% 10.7% 9.0% 0.0% 2.5% 5.0% 7.5% 10.0% 12.5% -10 20 30 40 50 60 70 80

2011 2012 2013 2014 2015

Chartering

Revenue (USD Mio) Gross Profit (USD Mio) GPM (%)

13% 18% 12% 19% 19% 0% 5% 10% 15% 20% 25% -5 10 15 20 25

2011 2012 2013 2014 2015

Others

Revenue (USD Mio) Gross Profit (USD Mio) GPM (%)

27% 29% 32% 28%

13% 0% 5% 10% 15% 20% 25% 30% 35% -50 100 150 200 250

2011 2012 2013 2014 2015

TOTAL


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Review of FY-2015 -2

65.9

27.1

6.9

99.9 110.9

54.7

11.3

176.9

Own vessel Chartering Others Total

Revenue - USD Million

FY2015 FY2014

9.1

2.4

1.3

12.8 50.0

5.8 2.2

58.0

Own vessel Chartering Others Total

Gross Profit - USD Million


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Review of Q1-2016

29,247 9,428 76 23,267 9,676 (1,419)

Revenue EBITDA Income attributable to

shareholders

Revenue, EBITDA and Income Attributable to

Shareholders - USD 000

Q1-2015 Q1-2016

29,247

24,599

22,571 23,499 23,267

Revenue

Revenue Trend Over 5 Quarters - USD 000

Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016

9,428 7,617 6,099 7,552 9,676 EBITDA

EBITDA Trend Over 5 Quarters - USD 000

Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016

2,528 702 (837) 507 2,594 Operating profit

Operating Profit Trend Over 5 Quarters - USD

000


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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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Q & A


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23


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Review of FY-2015 -2

65.9 27.1 6.9 99.9 110.9 54.7 11.3 176.9

Own vessel Chartering Others Total

Revenue - USD Million

FY2015 FY2014 9.1 2.4 1.3 12.8 50.0

5.8 2.2

58.0

Own vessel Chartering Others Total

Gross Profit - USD Million


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25

Review of Q1-2016

29,247 9,428 76 23,267 9,676 (1,419)

Revenue EBITDA Income attributable to shareholders

Revenue, EBITDA and Income Attributable to

Shareholders - USD 000

Q1-2015 Q1-2016

29,247

24,599

22,571 23,499 23,267

Revenue

Revenue Trend Over 5 Quarters - USD 000

Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016

9,428 7,617 6,099 7,552 9,676 EBITDA

EBITDA Trend Over 5 Quarters - USD 000

Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016

2,528 702 (837) 507 2,594 Operating profit

Operating Profit Trend Over 5 Quarters - USD

000


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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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27

Q & A


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