S CIE NC E AGE HAI A N TH N SE ORE E Corporate Profile - PowerPoint PPT Presentation

S CIE NC E AGE HAI A N TH N SE ORE E Corporate Profile Thoresen Thai Agencies Plc. THO DnB NOR Asian Investor Conference 2011, Singapore D B NOR A i I t C f 2011 Si 12 September 2011

S Agenda CIE NC  TTA Evolution: Transport, Energy, and Infrastructure Focus AGE E  TTA Resiliency: Smooth Navigation TTA R ili h i i  TTA Solid Balance Sheet: Strong Cash and Liquidity Position HAI A  TTA Business Portfolio: Three Lines of Business  TTA Business Portfolio: Three Lines of Business  TTA Diverse Revenue Sources  TTA Group Businesses: p N TH  Dry Bulk Shipping  Subsea Engineering  Offshore Drilling N  Coal Mining SE  Coal Distribution  Fertiliser Production and Distribution E ORE with Warehouse and Logistics Services  TTA Going Forward: Strong Focus on Execution and Performance THO Page 2 | TTA Corporate Profile DnB NOR Asian Investor Conference 2011, Singapore

S TTA Evolution CIE TTA has been repositioning itself into a business group focused on NC transport, energy, and infrastructure E AGE 2009-NOW 1980-2005 2005-2008  Completed Phase 1 of Evolution  Made  Moved to a TTA was by making new investments originally investments in “corporate ‐ run” HAI A across all three lines of business: a shipping dry bulk vessels approach after Transport , Energy , and services in the 1980’s the exit of the Infrastructure provider controlling  Made shareholders,  Phase 2 of Evolution is emphasis investments in N TH subsequently subsequently on growth and long ‐ term h d l offshore services resulting in shareholder value creation by vessels and TTA being one consolidating and investing in drilling rigs in N of the most existing businesses existing businesses the 2000 s the 2000’s widely and SE publicly held companies E ORE in the SET in the SET, 99.6% free float THO Page 3 | TTA Corporate Profile DnB NOR Asian Investor Conference 2011, Singapore

S TTA Evolution CIE TTA’s plan combines expansive growth, financial acumen, NC and focused diversification E AGE What We Do Not Do What We Do Not Do Core Competencies Core Competencies  Disciplined investment analysis  Short ‐ term asset trading  Long ‐ term strategic thinking  Speculative derivatives HAI A  International business networks  Effective financial management N TH N Success in 2008-09 Crisis Success in 2008 09 Crisis Learnings Learnings SE  Growth ‐ oriented investments of about  Level of integration and oversight are USD 187 million highly correlated to success of  Recruited new senior management acquisitions E ORE  Repurchased USD 66.9 million of  Quality of people and their array of skills convertible bonds at 72% of par must be improved continuously to  Secured USD 200 million credit facility achieve growth objectives THO for mergers and acquisitions for mergers and acquisitions Page 4 | TTA Corporate Profile DnB NOR Asian Investor Conference 2011, Singapore

S TTA Resiliency CIE TTA’s strengths enabled smooth navigation through economic crisis NC Advantage Pre-crisis (before 2008) Post-crisis (2008 – Aug 2011) E AGE Review of multiple investment Review of multiple investment p p Executed 11 corporate acquisitions Executed 11 corporate acquisitions p p q q Business origination Business origination g g 1 1 capability capability opportunities opportunities and 12 dry bulk, dive support and 12 dry bulk, dive support vessels, and drilling rig purchases vessels, and drilling rig purchases HAI A In ‐ house commercial and technical In ‐ house commercial and technical Growing advantage Growing advantage Deep industry expertise Deep industry expertise 2 2 2 2 management of key businesses management of key businesses Dry bulk fleet of 45 vessels Dry bulk fleet of 45 vessels 18 dry bulk vessels fleet at end of 18 dry bulk vessels fleet at end of Active asset management Active asset management N TH 3 3 3QFY11, but total assets grew 76% 3QFY11, but total assets grew 76% Plans to delever balance sheet and Plans to delever balance sheet and Experienced and Experienced and Repurchase US Dollar Convertible Repurchase US Dollar Convertible N 4 4 di disciplined financial disciplined financial di i li i li d fi d fi i l i l i increase liquidity increase liquidity i li li idit idit b bonds, issued Thai Baht bonds, bonds, issued Thai Baht bonds, b d d i i d Th i B ht b d Th i B ht b d d SE management management secured local bank financing secured local bank financing Core value Core value Important differentiator Important differentiator Match maturity of assets Match maturity of assets 5 5 E ORE and liabilities and liabilities and liabilities and liabilities Develop group ‐ wide human Develop group ‐ wide human Extensive support services Extensive support services Increased shared services across the Increased shared services across the THO 6 resources, finance, and IT resources finance and IT resources finance and IT resources, finance, and IT group, resulting in cost efficiency group, resulting in cost efficiency group resulting in cost efficiency group resulting in cost efficiency capabilities capabilities Page 5 | TTA Corporate Profile DnB NOR Asian Investor Conference 2011, Singapore

S TTA Solid Balance Sheet CIE TTA maintains a strong cash and liquidity position NC E AGE 0 49 x Leverage 0.49 x Leverage 0.45 0.27 0.22 HAI A 31,532 ‐ Baht million 31,091 30,974 29,215 N TH Consolidated ‐ 3,701 3,773 N 454 1 979 1,979 11 525 11,525 10,428 SE 7,558 4,970 30 ‐ Sep ‐ 08 30 ‐ Sep ‐ 09 30 ‐ Sep ‐ 10 30 ‐ Jun ‐ 11 E ORE Equity Long ‐ term Debts Short ‐ term Debts THO • Consolidated cash of Baht 4,948 million • Available credit lines of USD 517 million for growth opportunities Page 6 | TTA Corporate Profile DnB NOR Asian Investor Conference 2011, Singapore

S TTA Business Portfolio CIE Three lines of business NC E AGE HAI A N TH N SE E ORE … achieve growth through diversification … achieve growth through diversification THO and balance across three core business groups and balance across three core business groups and balance across three core business groups … and balance across three core business groups … Page 7 | TTA Corporate Profile DnB NOR Asian Investor Conference 2011, Singapore

S TTA Business Portfolio CIE Three lines of business NC E AGE HAI A N TH N SE E ORE … achieve growth through diversification … achieve growth through diversification THO and balance across three core business groups and balance across three core business groups and balance across three core business groups … and balance across three core business groups … Page 8 | TTA Corporate Profile DnB NOR Asian Investor Conference 2011, Singapore

S TTA Diverse Revenue Sources CIE TTA’s diversified portfolio compensating for downturn in NC dry bulk shipping E AGE Revenues Baht million HAI A 1,791 4,565 16% 35% N TH 3,711 N 28% 9,359 9,359 82% SE 4,567 Others ORE E 35% 35% Sales (coal + fertiliser) Offshore services THO Dry bulk shipping 9MFY06 9MFY06 9MFY11 Page 9 | TTA Corporate Profile DnB NOR Asian Investor Conference 2011, Singapore

S Group Business Recap CIE Dry bulk shipping remains under pressure, but others doing NC relatively well E AGE cautious ti positive iti HAI A dry bulk y subsea coal offshore coal oil & gas g logistics g shipping engineering distribution drilling mining tankering  Consolidated TTA remains profitable in 9MFY11 with N TH Baht 327 million of net profit B ht 327 illi f t fit  Dry bulk shipping enduring a prolonged oversupply situation TRANSPORT TRANSPORT  Long ‐ term charters maintaining revenues and profits for Petrolift N  Improvement in subsea engineering business but challenges remain SE E E NE NE RGY RGY  Bright outlook for offshore drilling with establishment of Asia Offshore Drilling (“AOD”) E ORE  Philippines coal mine (Merton) producing and selling coal at robust prices  Robust coal sales for UMS but lower margins as 0 ‐ 5 mm coal inventory INFRA- INFRA - THO being aggressively reduced STRUCTURE STRUCTURE STRUCTURE STRUCTURE  Logistics business progressing well in Vietnam Page 10 | TTA Corporate Profile DnB NOR Asian Investor Conference 2011, Singapore