Slide 1: Business & Financial Review
The Great Eastern Shipping Co. Ltd. B i Business & Financial Fi i l Review R i March 2012 1
Slide 2: Forward Looking Statements
Forward Looking Statements Except for historical information, the statements made in this presentation constitute forward looking statements. These include statements regarding the i t t belief intent, b li f or currentt expectations t ti off GE Shipping Shi i and d its it managementt regarding the
Slide 3: Corporate Profile
Corporate Profile The Great Eastern Shipping Co. Ltd. Incorporated in 1948 Shipping S pp g Business us ess Offshore Business Wet bulk Through subsidiary Greatship (India) Limited - Logistics Crude Tankers Product Tankers - Subsea - Drilling Dr b Dry bulk lk 3
Slide 4: Company at a glance
Company at a glance $ India’s largest private sector Shipping Company $ Diverse asset base with global operations $ Completed 64 years of operations $ 28 years of uninterrupted dividend track record Shareholding Pattern as on December 31, 2011 Public FIIs 26% 21% Govt/FI 16% Bodies Promoters Corpora
Slide 5: Shipping business-owned fleet
Shipping business-owned fleet 34 ships aggregating 2.62 Mn dwt, avg.age 8.9 years 24 Tankers avg.age 9.3 years (72% in tonnage terms) - 9 Crude carriers (4 Suezmax, 5 Aframax) avg.age 9.6 years - 14 Product tankers (4 LR1, 7 MR, 3 GP) avg.age 8.8 years (1 single hull – double sided) - 1 LPG carr
Slide 6: Offshore business- Fleet Profile
Offshore business- Fleet Profile ¾ Current Owned Fleet 9 2 350ft Jack Up Rigs 9 4 Platform Supply Vessels (PSV) 9 9 Anchor Handling Tug cum Supply Vessels (AHTSV) 9 3 Multipurpose p p Platform Supply pp y and Support pp Vessels (MPSSV) ( ) 9 3 Platform / ROV Support Vessels (ROVSV) 6
Slide 7: Committed CAPEX – Offshore Business
Committed CAPEX – Offshore Business ¾ Committed Capex of around USD 260 Mn To be delivered in: 9 FY 2013 - 3 NB Platform / ROV Support Vessels (CDL) - 1 Jackup Rig (350 feet) (Lamprell Energy, Dubai) Stage payments already made : around US$82 mn of the total CAPEX Fleet Growth FY2008 FY2009 FY2010 F
Slide 8: Modern & Technologically Advanced Offshore Fleet
Modern & Technologically g y Advanced Offshore Fleet Young Fleet Young fleet with an average age of approx. 3 years by FY 2012 - Higher utilization rates Revenue Demand shifting to modern vessels, especially as Efficiencies - Minimum down time safety becomes a major concern for oil companies Tec
Slide 9: Offshore Service Value Chain
Offshore Service Value Chain Exploration Development Production Length of - 3 to 5 y years - 2 to 4 y years - 5 to 55 y years T i l Cycle Typical C l - Collection of survey data - Construction & installation of - Management of oil & gas production platforms, production d ti - Analysis & interpretati
Slide 10: Q3FY'12 Financial Highlights
Q3FY’12 Financial Highlights Key Figures Standalone Consolidated Q3 FY'12 Q3 FY'11 9M FY'12 (Amount in Rs. crs) Q3 FY'12 Q3 FY'11 9M FY'12 Income Statement 478.07 391.50 1500.17 Revenue (including other income) 827.05 644.30 2344.74 179.60 193.39 622.29 EBITDA (including other income) 336.15 291.79
Slide 11: Q3FY'12 Financial Highlights
Q3FY’12 Financial Highlights Key Ratios Standalone Consolidated Q3 FY'12 Q3 FY'11 9M FY'12 ((Amount in Rs. crs)) Q3 FY'12 Q3 FY'11 9M FY'12 Key financial figures 37.57% 49.40% 41.48% EBITDA Margin (%) 40.64% 45.29% 44.52% 2.20% 5.68% 3.37% Return on Equity (ROE) (%) 5.81% 7.74% 6.18% 4.43% 4.76% 5.0
Slide 12: Q3FY'12 Performance Highlights
Q3FY’12 Performance Highlights Breakup of revenue days Revenue Days Q3 FY12 Q3 FY11 Owned Tonnage 2,947 2 947 2,886 2 886 Inchartered Tonnage - 88 Total Revenue Days 2,947 2,974 Total ota OOwned ed Tonnage o age (mn.dwt) ( d t) 2.62 6 2.49 9 Mix of Spot & Time Q3 FY12 Q3 FY11 Days (in %) FY11 FY10 A
Slide 13: Asset Price Movement (5 yr old)
Asset Price Movement (5 yr old) Timeline- Sep2003 till February 13, 2012 Amt in US$ mn 200 160 120 VLCC CAPE 80 40 Panamax 0 16/09/2003 VLCC Aframax Capesize Panamax(Dry) Source: Baltic Sale & Purchase Assessment 13
Slide 14: Indices Movement - Timeline Jan'08 to Feb'12
Indices Movement - Timeline Jan'08 to 15 Feb’12 12000 Baltic Dry Index (BDI) 10000 8000 6000 4000 2000 0 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Baltic Dirty Tanker Index (BDTI) & Baltic Clean Tanker Index (BCTI) 2500 2000 BDTI 1500 1000 500 BCTI 0 Jan-08 Jul-08 Jan-09 Jul-09
Slide 15: Total Seaborne trade at a glance… Dry Bulk
Total Seaborne trade at a gglance… Dryy Bulk Seaborne Bulk trade % chg (CY12 over (in mn. tonnes) 2008 2009 2010 2011 2012(F) CY11) Iron ore 843 900 995 1053 1079 3% Steam Coal (Thermal) 579 599 669 705 734 4% Coking Coal 199 188 235 222 227 2% Grains 323 317 341 349 358 3% Bauxite 125 92 107 124 12
Slide 16: Global Oil Demand
Global Oil Demand % chg mn.bpd 2008 2009 2010 2011 (CY11 over CY10) N.America 24.2 23.3 23.8 23.5 (1.3)% OECD Europe 15.4 14.7 14.6 14.4 (1.4)% OECD Pacific (Japan& Korea) 8.0 7.7 7.8 7.9 1.3% Asia (Non OECD) 17.4 18.2 19.5 20.3 4.1% Other Non OECD 21.5 21.7 22.7 23.2 % 2.2% Total 86.5 85.6 88.4 89.
Slide 17: Total Seaborne crude trade
Total Seaborne crude trade Seaborne Crude Imports Global Crude Imports by Region -2011 2011 mn bpd 2008 2009 2010 2011 Asia 15.9 16.1 17.6 18.3 US 18% EU 10.9 10.3 10.0 8.9 Others 28% N. America (incl. Canada) 7.0 6.9 6.8 7.5 Japan 10% ROW 5.7 5.0 4.8 3.5 Other Asia Total 39.5 38.3 39.2 38.2 9% Chin
Slide 18: Gross World fleet addition - Shipping
Gross World fleet addition addition-Shipping Shipping World Fleet addition* Fleet CY2012 CY2013 CY2014 + (as on 1 Feb’12) Feb 12) (in mn dwt) Crude tankers 344.3 10% 6% 2% Product tankers 134.7 6% 3% 1% Dry bulk carriers 621.4 20% 7% 2% Source: Clarksons *includes only new building from yards - 3% o
Slide 19: Global Fleet – Scrapping Details
Global Fleet – Scrapping Details Fleet as on Scrapping 1st Feb’12 (in mn dwt) CY2008 CY2009 CY2010 CY2011 CY12 YTD* (in mn dwt) 344.3 Crude 2.2 5.0 7.1 6.9 1.8 134.7 Product 2.2 3.8 5.8 3.0 0.4 621.4 Bulk 5.5 10.4 5.7 22.2 2.8 * As of 10 Feb’12 Source: Clarksons 19
Slide 20: Shrinkage in Global Shipbuilding Capacity..
Shrinkage in Global Shipbuilding Capacity.. Capacity to contract due to combination of: ¾ yard closures ¾ return to pre-boom business models such as ship repairs ¾ use of shipbuilding berths and workforces for non-shipbuilding non shipbuilding activity ¾ reduction in berth productivity (in mn gt) CY
Slide 21: Slippages… to be a decisive factor
Slippages… to be a decisive factor Slippages/ cancellations as % of expected deliveries T k Tankers S Segmentt VLCC Suezmax Aframax Panamax MR GP Total Slippages (in mn.dwt) C 2011 CY 32% % 34% % 26% % 47% % 57% % 47% % 36% % 22.2 CY 2010 34% 38% 26% 12% 50% 57% 36% 22.4 CY 2009 20% 35% 11% 30% 32%
Slide 22: Global Fleet Supply - Offshore
Global Fleet Supply pp y -Offshore (Nos) Jackup Rigs AHTSVs PSVs Current Fleet 484 2,917 2,290 Orderbook 68 340 352 % of O/B to current fleet 14% 12% 15% Average age 23.0 20.0 19.9 As of Feb’12 Source: Clarksons, Rigzone Around half of the total offshore fleet above 25 years of age 22
Slide 23: THANK YOU
THANK YOU visit us at www.greatship.com 23