Miclyn Express Offshore Pareto Conference Presentation , 10-11 - - PowerPoint PPT Presentation

Miclyn Express Offshore

Pareto Conference Presentation , 10-11 September 2014

www.miclynexpressoffshore.com

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Business Overview

• Headquartered in Singapore, MEO has been operating through

predecessor entities since the 1970s

• MEO has a proven track record of operational and safety

excellence

• MEO has long-standing customer relationships with a high degree
• f repeat business
• MEO’s operations are supported by a strong, experienced and

incentivised management team leading a workforce of over 2,000 employees

• MEO is a leading provider of Offshore Support Vessels with a

strong presence across South East Asia, the Middle East and Australia

• MEO charters a diverse portfolio of vessels to a wide range of

customers operating across all phases of the offshore oil and gas cycle, namely: exploration, development and production Core Segments

Strong fleet of 155 vessels, diversified geographically and across sectors

Other Segments

Offshore Support Vessels (OSVs) Wide ranging applications across the entire upstream

• ffshore oil and gas

cycle Crewboats Tugs & Barges Offshore production support / transportation of personnel and critical supplies Transportation of material for offshore development and civil construction activities Express Offshore Solutions (EOS) Coastal Survey Vessels Third Party Vessels

Vessels

Applications / User Industries

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Geographically Diversified Fleet

• Superior services and operational excellence have cemented long-standing relationships with leading oil companies and service providers
• Relationships enhanced through investment in support infrastructure which helps to minimize downtime and enhance fleet reliability

Indonesia Thailand Saudi Arabia United Arab Emirates Bangladesh Australia

Middle East 39 Vessels 30% of Total Fleet South East Asia 88 Vessels 60% of Total Fleet Australia(1) 13 Vessels 10% of Total Fleet

Singapore Qatar

• No. of Vessels (as of June 2014)

SEA ME AUS Under construction Total OSV 25 6 1 5 37 Crewboats 47 23 10 80 Tugs & Barges 16 10 8

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Total 88 39 13(1) 15 155

Malaysia Support centers Regional Offices Training Centers Vessels Operating

Strong local presence through strategic support centres

Note: (1) Includes 4 CSVs in Australia

Brunei

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Infrastructure in key operating regions enhances our ability to service customers Strong relationships with blue chip clientele

Recognised Operator with a Blue Chip Client Base

Chevron best contractor awards

Eleven awards to Miclyn Express Offshore’s vessels

• perating for >

3 years without injury Three awards to Miclyn Express Offshore’s vessels

• perating for >2

years without injury One award to Micyln Express Offshore vessels

• perating for

Chevron for >1 year without injury One award for best HAZOBS

• Support bases in proximity to offshore fields in Indonesia

Thailand, Malaysia, Saudi Arabia, Qatar, UAE and Australia

• Dedicated training centers in Indonesia and Thailand to meet local

crewing challenges

• Closer regional interaction with customers

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Business Strategy

• Well-positioned to benefit from shallow water
• ffshore production growth
• Remain focused on South East Asia, Middle East

and Australia, selectively enter into adjacent markets should opportunities arise

Focus on shallow water operations

• Minimum IRR of 15% on an unleveraged basis

with a payback period of not more than five years for new investments

• Low asset concentration risk

A disciplined investment strategy

• Construct or purchase young OSVs and crewboat

vessels based on identified customer demand in long-term charters

Vessel renewal and fleet expansion to meet identified customer demand

• Leverage relationships with core customers to

cross-sell opportunities and expand relationships

Strengthen and grow customer relationships

• Apply operational best practices and maintain

leading safety standards and procedures

Emphasis on safety, reliability and

• perational excellence

Continue to focus on shallow water operations, grow our business to be the provider of choice for our customers

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Safety Is Our Number 1 Priority

Truly world class safety statistics

MEO boasts an enviable Health and Safety track record. The company accomplished 15+ million man hours without Loss Time Injury (LTI) in 2013, a truly world class performance statistic

Note: (1) As of FY2013A

15+ million man hours without LTI (1)

 Robust systems and process embedded in MEO’s culture: Top core value Dedicated and passionate HSQE team, stationed locally within each

• perating region

Top down approach; top management actively engages with crews and contractors on a regular basis Job card system empowers all employees to stop work that they deem to be unsafe Constantly shaping new and innovative campaigns to improve and deliver sustainable, safe

• perations

    

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Highlights of last 12 months

Success in lifting forward orderbook from ~US$500m to ~US$750m New appointment of Mr Venkatraman Sheshashayee (“Shesh”, ex Jaya) as Deputy CEO Chevron award for two 85tn BP AHTS in Thailand (4+3 years), extension of strong relationship Multiple contract wins in Kingdom of Saudi Arabia (crewboats and security vessels) Entry into Brunei market with multi-vessels tender win for Brunei Shell Petroleum Continued fleet expansion program, 21 vessels under construction Growing number of contract backed capital deployment opportunities Acquisition of Uniwise Towage in Thailand Company delisted from ASX by CHAMP, Headland Capital and Management Debut SGD 200m Bond raised to fund privatisation USD 315m bilateral facility raised with DBS Sale of Shipyard, non-core asset

           

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55.3 72.0 96.8 89.2 101.0 71 80 84 84 80 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 10 20 30 40 50 60 70 80 90 FY10 FY11 FY12 FY13 FY14 US$m Utilisation (%) EBITDA (pre disposals) Utilisation

Strong Earnings Growth in past 5 years

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5 5 9 16

1 11 11 36 7

6 11 7

12 27 27 11 5 10 15 20 25 30 35 40 <3 months 3 months - 1 years 1 - 3 years 3 - 6 years > 6 years Total Others Tugs and Barges

Note: (1) Only includes contracts of core businesses, data as of 30 June 2014; (2) Total contracted revenues backlog include US$277m from core businesses and US$40m from other businesses. Total extension options backlog include US$122m from core businesses and US$14m from other businesses.

• 70% of our charter contracts are 1 year or longer with extension options
• Average length of contracts is 3.4 years for OSVs and 3.7 years for crewboats
• Chevron, Saudi Aramco and the PTT Group are MEO’s legacy customers for 15 to 30 years
• Contracted revenues and tenor of charters reflect customers’ perception of the quality and utility of our fleet
• Total contracted and options backlog of US$209m for FY 2015

Contracted Revenue with High Earnings Visibility

Number of Contracts Contract Value US$3.1m US$15.5m US$63.4m US$324.0m US$42.0m

Total Contracted Revenues and Options Backlog: US$730m(2) Tenor of Vessel Charter Contracts(1)

Long term contracts across the fleet provide high degree of earnings visibility

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• Loan package refinanced by DBS;
• US$150m Term Loan
• US$100m RCF
• US$ 50m CAPEX facility (undrawn)
• US$15m FX/BG facilities
• Minority shareholders bought out with proceeds of

S$200m bond raising

• S$200m bond hedged to US$ (US$159m equivalent)
• Acquisition of Uniwise Towage for US$18.9m
• Further investment in new vessels against disciplined

investment criteria (minimum 15% unlevered IRR)

• Strong contract backlog (>US$700m) to support

future operating cashflows; ability to service debt and continue investment in new assets

Note: 1 FY14 EBITDA, excluding the impact of one-off adjustments relating to privatisation and disposal of shipyard 2 FY13 EBITDA, excluding the US$4.6m Iran provision 3 Net Debt / (Net Debt + Equity)

14.6 19.3 70.2 26.0 335.3 317.1 148.9 139.2 6.8 18.9 6.9 68.7 16.6 1.7 0.2

• 50.0

100.0 150.0 200.0 250.0 300.0 350.0 400.0 450.0 500.0 FY14 FY13 Net Debt (US$m) 373.8 199.3 Net Debt / EBITDA 3.91 2.52 Gearing (%)3 47.3% 34.3%

Well Funded, Strong Cash Delivery

Ability to service new debt package and fund growth

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Solid execution capability Financial capacity to fund growth Well positioned in a growing industry Attractive pipeline of opportunities Proven Operational Excellence Strong balance sheet

Summary

Clear strategy for future growth

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Reliance on Third Party Information The views expressed here contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by Miclyn Express Offshore Limited (“Miclyn Express Offshore”). Forward Looking Statements Some of the information contained in this document may constitute forward-looking statements that are subject to various risks and uncertainties. Nothing in this document is a promise or representation as to the future. Statements or assumptions in this document as to future matters may prove to be

• incorrect. Miclyn Express Offshore does not make any representation or warranty as to the accuracy of such statements or assumptions. You

acknowledge that circumstances may change and the contents of this document may become outdated as a result. You also acknowledge that no audit or review has been undertaken by an independent third party of the assumptions, data, results, calculations and forecasts contained in or referred to in this

• document. You should make your own independent assessment of the information.

No Warranties We makes no warranty, express or implied, nor assumes any responsibility in its contents for its accuracy, completeness, its use for any general of particular purpose, nor that such items or use of such items would not violate or infringe rights of others. No Offer of Securities Nothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell Miclyn Express Offshore securities in any jurisdiction. Pro-Forma Financial Information References to pro forma financials exclude any exceptional items. A reconciliation to statutory financials is contained within the prospectus, available at

• ur website www.miclynexpressoffshore.com.

Important notice and disclaimer

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Contact

For further enquiries, please contact: Adam Clayton Corporate Finance and Group Commercial Head Miclyn Express Offshore Tel: +65 6829 6122 Mob: +65 8298 5155 www.miclynexpressoffshore.com