IHC - Jaya Alliance

Progress Report

15 October 2012

IHC Asia Pacific

Jaya Holdings Limited

• Why the IHC-Jaya Alliance Makes Sense; recent developments

• Developing vessel designs

• Pitching business jointly – progress

• Expansion at Jaya’s Batam Yard

What are we talking about today?

What is the Alliance?

• The IHC-Jaya alliance is natural and synergistic.

• IHC has recognized the potential for a new breed of offshore support vessels in the Asia Pacific region and is building its brand and operations in the region.

• IHC needs a cost-effective production facility which gives it the ability to expand its product line and its customers high- tech/high quality vessels at Asian prices.

• Jaya is a ship-building & ship-owning Group with a proven track record and strong brand recognition.

• Jaya, which has been mostly Asia-centric, was seeking a global partner with superior technological capability and proven track record in building and delivering complex, specialized, high value vessels.

What is the Alliance? (continued)

• Jaya benefits from allying with a multi-product, technically innovative company that can bring production engineering systems and attractive customer finance packages to the table.

• IHC benefits from partnering with a reputed ship-building Group with an enviable track record and scalable capacity in Offshore Support Vessels.

• Access to cutting edge technology, systems, processes and designs

• Ability to move up the value ladder – in constructing high spec, specialized vessels designed and engineered by IHC and supported by their production engineering staff

• Access to clients from across the world looking for a “European vessel at an Asian cost”.

• Avenues for further business collaboration in this region and beyond.

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What does this mean to Jaya?

• More than 50 vessels delivered across the Singapore and Batam yards since 1999

• Largest ever anchor handler delivering shortly in Tuas – 16,000 BHP, DP2, Ice Class 1A*

• Most experience of any yard in SE Asia in OSV construction

• In service vessels with most leading operators

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Jaya’s track record

Jaya Strategic locations Singapore & Indonesia

• Deepwater

• Complexity

• Added Value AHTSVs, PSVs, AWBs

Pipe layers Cable layers DSV’s Well intervention

Moving up the value chain…

• Shipbuilding on build-to-order basis for third parties as well as for Jaya’s growing Offshore Support Services business

• Higher value, more complex vessels

• Higher standards of production efficiency

• Fleet renewal and re-positioning

• Higher “value add” on and offshore

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Strategic shift for Jaya

• Global brand

• Reputation for delivering high-quality assets to cost quality and schedule

• Wide range of companies providing integrated mission equipment

• Great customer relationships

• Strong customer finance avenues

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What value does IHC bring?

World-class, high-tech offshore

vessels Custom built offshore vessel examples Standard offshore vessel examples

Seven Oceans, 2007, Seven Atlantic, 2009 Standard Offshore vessel, 2012

Well Enhancer, 2008 Oleg Strashnov, 2011 Standard Offshore vessel, 2012

Objectives:

Expand IHC Merwede business and international footprint

Establish a competitive shipbuilding capability which supports Quality and Delivery performance expectations from regional and international customers

Identify business development partners to tailor vessel designs to regional operational requirements

Identify other business opportunities to expand in the Asia Pacific region

Develop instruments and credit lines to support project financing

IHC – growing in Asia Pacific

• Attractive client solutions enabled by IHC’s strengths:

▫ strong balance sheet;

▫ track record for quality and reliability;

▫ experienced in financial structuring;

▫ excellent network of financial partners (banks, ECA).

• In 2011, IHC refinanced for EUR 1.5bn :

▫ EUR 900m bank guarantee facility;

▫ - up to EUR 600m customer financing;

▫ - a new consortium, “open for business.”

IHC – customer finance

Product Engineering

IHC Supporter Class

Loa

Beam

Depth

Draught

Speed

Generator power

DP 3 capability

= 94 - 132

= 22

= 9.5

= 6.25

= 14.5

= 10,500

[m] variable

[m]

[m]

[m]

[kts]

[kW]

Regulation

MLC2006

SPS

Future development

Multiple beam series (18-22-26-30 meter)

Further equipment integration

Offshore construction Cablelay Diving support

IHC Supporter Class

Custom module allows for

• Client design and equipment within vessel boundaries

Master module: client defined mission

equipment

IHC – versatility in motion

• Priced bids to North European and Asian clients already submitted and new designs under joint development

• Expanded range of vessels and vessel types including IHC’s standard Supporter class which will feature some refinements developed by the alliance

• Building on success of “Jaya Pioneer” class and Jaya’s operational experience

• Facilities expansion will allow the construction of vessels up to 150m LOA

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IHC-Jaya joint bids

• With the IHC-Jaya alliance in place, Jaya has decided to expand its Batam facilities

• It will add 65,069 square metres area (36%)

• Includes concrete hardstand

• Increasing our waterfront to 80m

• Will enable more and larger vessels to be built

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Expanding our facilities

• The market forecasts are for significant growth in Offshore Oil and Gas exploration and production capital expenditure in Asia Pacific.

• A new breed of vessels with higher operational efficiencies and more sophisticated mission capabilities will be needed to maximize the ROI and technical demands of existing field developments and the inevitable move to deep water.

• IHC and Jaya believe that their alliance represents a robust response to the opportunities and challenges anticipated in this next phase of the market

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The IHC-Jaya alliance – the future