Part 1 - Otto Marine Limited

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10 December 2009
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4 th January 2010

DISCLAIMER
This presentation and the associated slides contain confidential information about Otto Marine Limited (the “Company”) and its subsidiaries and
associates (together with the Company, the “Group”).
By accepting such information, the recipient agrees to keep permanently confidential all information contained herein and that it will use such
information only for the purpose it has disclosed to the Company for participating in this presentation and not for other purposes and will not
divulge any such information to any other party without the express consent of the Company. Any reproduction of such information, in whole or
in part, is prohibited without the permission of the Company.
This presentation includes only summary information and does not purport to be comprehensive. The information contained in this presentation
has not been subject to independent verification. No promise, guarantee, representation, warranty or undertaking, express or implied, is made as
to, and no reliance should be placed on, the fairness, accuracy, reliability, completeness or correctness of the information or opinions contained
herein. Neither the Company, any other company within the Group or its advisors, nor any of their directors, officers or employees or any
representatives of such persons, shall have any responsibility or liability whatsoever (in negligence or otherwise) for any loss arising from any use
of the information or any other information or material discussed.
This presentation contains forward-looking statements relating to the business, financial performance and results of the Company. These
statements are based on current beliefs, expectations or assumptions and are subject to unknown risks and uncertainties that could cause actual
results, performance or events to differ materially from those described in such statements. These risks, uncertainties and other factors include, but
are not limited to, economic conditions globally, the impact of competition, political and economic developments in countries in which the Group
operates and regulatory developments in those countries and internationally, foreign exchange rates, oil and gas prices and the completion of
ongoing transactions. Many of these factors are beyond the Company's ability to control or predict. Although the Company believes that its
expectations and the information in this presentation were based upon reasonable assumptions at the time when they were made, it can give no
assurance that those expectations will be achieved or that the actual results will be as set out in this presentation.
Nothing in this presentation constitutes and shall not in any circumstances be construed as an invitation or an offer to purchase or the solicitation
of an offer to purchase any securities issued by the Company or any advice or recommendation with respect to such securities and no part of this
presentation shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
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Agenda
• Overview of Otto Marine
• Investment Merits
• Business Segments
• Financial Highlights
• Industry Outlook, Growth Strategies
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Otto Marine Limited
• Offshore Marine Group - in Shipbuilding/ repair & conversion,
Chartering and Specialised offshore services
• Headquartered in Singapore – commercial, procurement,
and treasury support to our overseas’ operations (Indonesia,
China, UAE, etc)
• Shipyard in Batam Indonesia – strong management and
engineering team capable of delivering complex and deep water
offshore vessels
• Strategic direction – provider of specialised offshore vessels
and services in niche technical segments (i.e. seismic, subsea,
offshore construction, etc.,)
• Customers – primarily specialised offshore service providers in
niche segments, and fleet operators in the O&G industry
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Investment merits
• Earnings track record - CAGR 114.54% in EPS from FY2005 to FY2008
• Order book of S$601 million (30 Sep) – delivered 27 OSV in last 4 years
worth USD450m
• Fast track OSV chartering - S$400m (10 Dec 09) forward chartering revenue
secured on 5 to 10 years
• Specialised Offshore services – service and vessel provider in strategic
niche segments which command higher margin (i.e. seismic, subsea vessels for
well intervention, ROV, IMR, etc)
• Reputable customer base – ABCmaritime, Esnaad, Falcon Energy Group
Limited, GC Rieber, Mosvold Supply, Marine Subsea AS, Norshore Shipping,
Robert Knutzen Shipholdings
• Strong engineering and experienced management team – average of 34
years experience in offshore vessels building
• Current geographic operation - West Africa, Asia, Australia, New Zealand
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Investment merits
Reputable customer base includes:
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Investment merits Directors Team
Front L to R: Yaw Chee Siew, Lee Kok Wah, William Alastair Morrison,
Back L to R: Craig Foster Pickett, Reggie Thien and Ng Chee Keong
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Investment merit Executive Officers Team
Standing L to R: Lum Kin Wah, Tom Chua Peng Chua, Michael See Kian Heng
Seated L to R: Peter Jantzen and Ang Kim Choon Eric
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Business segments
We have three main business segments
Shipbuilding / Repair
Construction of complex, highspec
& environment friendly
offshore support vessels (e.g.
AHTS, PSV, offshore
construction vessel)
Repair and conversion of a wide
range of vessels (e.g. offshore
support vessels, ocean-going
tug)
Sophisticated vessels for North
Sea operations that meet the
ABS or DNV class
Owns 64 ha shipyard in Batam
−
−
Selective outsourcing to
China shipyards
Build-to-order
Ship Chartering
100% owned (10 Dec 09)
−
• 5 tugs & 5 barges,
• 1x 61m vessel
• 2 X 10,800bhp AHTS
• 2 X 6,000bhp AHTS
− 12 vessels joining ’09/’10
Strategic partnerships
−
−
15 vessels operational:-
Operational:-
−
−
2x 300men AWB
4 X 5,150bhp AHTS
Under construction:-
− 3 joining in ’09/’10
−
9 earmarked for JV
partners.
Specialised Services
Service and vessel provider in
strategic niche segments which
command higher margin such
as seismic and subsea vessels
I. Seismic operator –
Reflect Geophysical
II. ROV vessel provider –
JV with GC Rieber
We have integrated business segments which position Otto to capitalise on the upside
of the O&M industry
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Focus on high specifications and higher value vessels
5 th largest AHTS builder globally
8.4%
7.8% 7.3%
44.0%
Nam
Cheong
Aker
6.7%
Dubai
Drydocks
Sinopacific
Group
6.2%
Otto
Marine
5.6%
4.5%
3.4%
3.4%
ABG
Shipyard
Yangzhou
Kleven Fincantieri
Dayang
Verft
2.8%
Jaya
Others
Note: Ten shipyards which have ~ 56% market share of global order
book in AHTS vessel construction. Remaining 44% is shared by >
35 yards, predominantly in China.
Target European / North Sea
market that require ABS or DNV
class vessels
Global customer base
− Mosvold Supply AS
− Norshore AS
− ABCmaritime
Ship designs from renowned
Norwegian design houses
− Marin Teknikk AS
− Vik-Sandvik
Selective outsourcing
− Allows focus on sophisticated
vessels in Batam shipyard
Source: Braemar Seascope Offshore as at 2008
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Strategically located shipyard
Singapore
Headquarters
Strategic advantage due to Singapore’s position as
a regional marine and offshore industry hub
− Access to marine and offshore support
− Access to expertise
− Close proximity to SEA shipbuilding hub
− Ready supply of qualified Indonesian workers
Batam, Indonesia
Own and operate PT. Batamec - 64 hectare
shipyard in Batam
Major South-East Asian shipbuilding hub
− Access to large pool of workers in Indonesia
− Only 1 hour away from Singapore by ferry
We are able to access marine expertise in Singapore and utilise
a ready supply of workers in Indonesia
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Ship building: Complex offshore support vessels
Small to medium AHTS
(< 14,000 bhp)
Large AHTS
(> 14,000 bhp)
Offshore construction vessel
Supply & anchor handling role
Drilling Unit for field support
Supports Jack-Ups & standard depth Semisubmersibles and construction duties
Work barge with
300 pax accommodation
Platform supply vessel
Other vessels
To support accommodation
requirements
Transportation of cargo to
offshore oil rigs and platforms
Utility vessels
Work maintenance boats
Others
We have a specialised focus on North Sea class offshore support vessels
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Shipbuilding: Efficient usage of shipyard
We utilise the Syncrolift® system to maximise the efficiency of our shipyard
Syncrolift®
What is a Syncrolift®
Large lifting system,
which raises and
lowers vessels in and
out of the water for
dry-docking ashore
What does it do
Allows construction of up
to sixteen 5,000 bhp to
10,800 bhp vessels at any
one time
Able to move vessels in
and out of the water
efficiently and effectively
Why is it important to us
Allows construction of
more new builds and
repair of more vessels
simultaneously
Higher productivity and
economies of scale
We invest in and upgrade our shipyard in order to enjoy higher productivity and
economies of scale
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Shipbuilding: Strong engineering capabilities
Right mix of personnel and tools needed for sophisticated vessels
Led by highly qualified senior engineers
In-house design team
Investments in software
Detailed engineering
+
=
Team of naval architects
and engineers
Key benefits
3D design software,
TRIBON®
Minimises errors resulting in a more efficient shipbuilding process
Greater accuracy in shipbuilding
Productivity and cost efficiency
Precise virtual model
We utilise our strong engineering capabilities to provide
turnkey solutions for our customers
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Shipbuilding Order Book
Strong growth in order book
(SGD millions)
411
731
800
601
2
2005 2006 2007 2008 3Q2009
S$601 mn as at 30 September 2009
9 vessels in order book
− Comprising 4 AHTS vessels, 3 PSVs, 1 offshore construction vessel and 1
accommodation work barge
− Delivery of vessels through 2011
Cash deposits and prepayment of 30% collected
Major equipment and material costs locked in
Strong order book provides visibility for our future financial performance
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Ship building: Order Book with contract signed
Vessel Types 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
AHTS 21000bhp 92.5m
AHTS 21000bhp 92.5m
AHTS 21000bhp 92.5m
AHTS 21000bhp 92.5m
AWB 300 Men Work Barge
PSV 3200ton MT 6009 - MFSV
PSV 3200ton MT 6009L - MFSV
PSV 3200ton MT 6009L - MFSV
OCS Offshore construction vessels
Legends
Sold to Strategic Partner
Sold to Third Party
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