ASL Marine Holdings LtdUpdate on Corporate Announcements

26 May 2004

Corporate Presentation 2

1) Acquisition of Coal Mine Concession in Tabang, East Kalimantan, Indonesia

2) Building and chartering contract for 65,000 dwt floating terminal

3) Secured additional shipbuilding contracts worth about S$100 million since 1 Jan 04

Major Developments

Corporate Presentation 3

ASL MARINE

MANHATTANINVESTMENTS

Shiprepair

Shipbuilding

Shipchartering

Shipchartering

Tabang Coal Concession

50%

A Quick Recap

50%ASL ENERGY

1) Tabang Coal Concession

Corporate Presentation 5

1) Tabang Coal ConcessionASL Energy acquired Pan Assets which owns exclusive mining and marketing rights to Tabang Coal Concession in East Kalimantan

Pan Assets is majority-owned by Datuk Low Tuck Kwong, through Oriental Minerals Corporation

Pan Assets valued at S$40 millionPhase 1 – 50.2% of Pan Assets

ASL Marine : issue 20.08 million new shares at S$0.50 per share

Manhattan : promissory note

Phase 2 – option to buy remaining 49.8%

ASL Marine : issue new shares based on 10% discount on closing price as at date of option, or in cash

Manhattan : promissory note

Corporate Presentation 6

1) Tabang Coal Concession (…cont’d)Minimum net cash flow of US$16.2 million

Period Operating Cash Inflow

26 May to 30 Jun 2004 US$100,000

1 Jul to 31 Dec 2004 US$1.1 million

1 Jan to 30 Jun 2005 US$1.2 million

1 Jul to 31 Dec 2005 US$1.5 million

1 Jan to 30 Jun 2006 US$1.5 million

1 Jul to 31 Dec 2006 US$1.8 million

1 Jan to 30 Jun 2007 US$1.8 million

1 Jul to 31 Dec 2007 US$1.8 million

1 Jan to 30 Jun 2008 US$1.8 million

1 Jul to 31 Dec 2008 US$1.8 million

1 Jan to 30 Jun 2009 US$1.8 million

Corporate Presentation 7

Rationale for Acquisition

Ensure minimum utilisation rates of vessels by controlling supply chain

Strengthen relationship with key business partner

Strengthen income and profit base

Strengthen stand alone integrated company concept

Corporate Presentation 8

6.0 6.0 6.811.0 11.0

6.1

17.025.2

69.0

87.0

3.5 1.00

102030405060708090

100

1988 1990 1992 1994 2000 2001

SumatraKalimantan

metric tonnes Total Coal Production

Rationale for Acquisition (…cont’d)Robust prospects for Indonesian coal industry

The world’s top 10 largest producersThe world’s top 5 largest exporters

Corporate Presentation 9

Rationale for Acquisition (…cont’d)

About Kalimantan’s coal industryLargest coal producer and exporter in Indonesia accounting for :

85% of total Indonesia coal mined

95% of total Indonesia coal exported

Corporate Presentation 10

Coal Mining1 2

34

Corporate Presentation 11

Barging5 6

78

Corporate Presentation 12

Balikpapan Coal Terminal9 10

1112

Corporate Presentation 13

Tabang Coal Mine

Corporate Presentation 14

Tabang Coal Mine

2) 65,000 dwt Floating Terminal

Corporate Presentation 16

2) 65,000 dwt Floating TerminalOwned by ASL Energy and operating at BalikpapanCoal TerminalTwo revenue streams for ASL Marine through :

Chartering ASL Energy to subsequently sign the charter of floating terminal to PT Dermaga Perkasapratama for 10 years, commencing 2Q FY2006

Shipbuilding Building of main body with outfittings, crew accommodation, propulsion systems, and accessories such as power generators, unloader cranes, shiploader and conveyor belts

worth S$56.1 millionCommence building in 4Q FY2004 and complete by end 1QFY2006Positive contribution from FY2005 onwards

Corporate Presentation 17

2) 65,000 dwt Floating Terminal (…cont’d)

Balikpapan Coal Terminal One of the largest and most sophisticated coal terminal in Kalimantan

Advantages of floating vs shore-based terminal

Greater flexibility

Lower operation cost

Lower investment cost

Corporate Presentation 18

Loading: Barges Floating Terminal1 2

34

Corporate Presentation 19

5 6

78

Unloading: Floating Terminal Carrier

3) Additional Shipbuilding Contracts

Corporate Presentation 21

3) Additional Shipbuilding Contracts

Since 1 Jan 2004, secured contracts worth about S$100 million

Includes S$56.1m contract for Floating TerminalTo be substantially recognised in FY2005 and FY2006

Construction of 24 flat top deck cargo barges

Includes ASL Energy’s order for additional 20 flat top deck cargo barges to satisfy coal transportation demandNote: ASL Marine has another earlier contract from ASL Energy for 20 barges worth S$17 million secured in August 2003

Corporate Presentation 22

3) Additional Shipbuilding ContractsConstruct three “Azimuth Drive Tugs” for :

Svitzer Wijsmuller GroupKooren Shipbuilding and Trading B.V.

Dedicated focus to build more sophisticated vessels with larger horsepower generates better returns

One of few players with vertically-integrated operation in both shipbuilding and shipchartering

Can build for both external and internal customers

Fully utilize Group’s shipyards, vessels and manpower etc

Corporate Presentation 23

Sample – More Sophisticated Vessels

60 Ton Bollard Pull Azimuth Stern Drive Tug

65 Ton Bollard Pull Tractor Tug

Outlook for ASL Marine

Corporate Presentation 25

Outlook for FY2004Shipbuilding

As at 31/12/03, outstanding revenue of S$84.2 million

Approx 40% to be recognised in 2H FY2004Balance to be substantially recognised in FY2005

Additional contracts for 3 tugs and 28 barges worth S$99.7 million

To be substantially recognised in FY2005 and FY2006Higher Gross Margin than FY2003

Projects in 2H FY2004 are of higher margins

ShiprepairGross profit margin back to normal levels

Corporate Presentation 26

Shipyard operations in FY2005 & beyond

Floating dock to be operational in FY2005

Development of Batam yardCommenced initial works for graving dry dock that will enable Group to build and repair larger vessels

Corporate Presentation 27

Outlook for FY2004Shipchartering Operations (under ASL Marine)

As at 31/12/03, order book of S$4.6 million long term charter contracts from third parties, and approx S$28.8 million from ASL Energy

More than half of shipchartering revenue are short-term and ad-hoc

Since 1 Jan 2004, additional long term charter contracts from third parties worth S$11.3 million

Lower repair and maintenance cost in 2H FY2004

Minimal mobilisation cost in 2H FY2004

Corporate Presentation 28

Outlook for FY2004Shipchartering Operations (under 50%-owned ASL Energy)

Commence operations in Sept 2003

S$127 million contract with PT Pelayaran Segara NiagaUtama (PT PSNU) spread over 5 years

Currently operates 20 pairs of tugboats and barges

12 pairs chartered from ASL Marine Expect to take delivery of 80 vessels by 2006

Corporate Presentation 29

Tugboats & barges from 3rd party charters

Note: ASL Marine is also building 40 units of barges for ASL Energy

Tugboats & barges from ASL Marine

PT Pelayaran Segara NiagaUtama (PT PSNU)

ASL Energy (50%-owned)

Chartered to

Tugboats & bargesfrom ASL Energy

Outlook for FY2004

Corporate Presentation 30

Shipchartering operations in FY2005 & beyond

Shipchartering Operations (under ASL Marine)Focus on long term charters

Target Indonesia’s oil and gas industry with shipcharteringsubsidiary, PT Capitol Shipping Nusantara (60%-owned)

Apply for Approved International Shipping Enterprise (AIS) scheme

AIS companies’ both onshore and offshore charter income are tax exempt from Year of Assessment 2005

Shipchartering Operations (under 50%-owned ASL Energy)

To take delivery of 40 sets of vessels by Dec 2006

Q & A