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2Q FY2012 Financial Results

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					   2Q FY2012
Financial Results
Forward Looking Statements

This presentation may contain forward-looking statements. These forward-looking statements
involve known and unknown risks, uncertainties and other factors that may cause the actual results,
performance or achievements to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements. Forward-looking statements
involve inherent risks and uncertainties, and many of which are beyond the control of the Company.
A number of factors could cause the actual results or outcomes to differ materially from those
expressed in any forward looking statement. Examples of some of these factors include (without
limitation) general industry and economic conditions , fluctuations in worldwide energy demand and
oil and gas prices; fleet additions by competitors and industry overcapacity; changes in capital
spending by customers in the energy industry for offshore exploration, development and production;
changing customer demands for vessel specifications, instability of global financial markets and
difficulty accessing credit or capital; acts of terrorism and piracy; significant weather conditions;
unsettled political conditions, war, civil unrest and governmental actions, such as expropriation,
especially in higher risk countries of operations; foreign currency fluctuations; labor influences
proposed by international conventions; and enforcement of laws related to the environment, labor
and foreign corrupt practices.

You are cautioned not to place undue reliance on these forward-looking statements, which are based
on the current view of Jaya and on future events.
Group overview
  o   Highly regarded and experienced operator and builder of high quality OSVs providing essential
      support services to the oil and gas exploration and production (“E&P”) industry

  o   Builds and sells offshore vessels, mainly anchor handling tug supply vessels (AHTSs), platform
      supply vessels (PSVs) and work barges to third party operators and charterers

  o   Owns a versatile fleet of young and sophisticated vessels that cater to the oil & gas sector

  o   Long term fundamentals of the offshore oil and gas industry remain compelling as oil is a
      depleting commodity. Oil and gas companies will continue to pursue exploration and
      production activities at stabilised oil prices




                                                                                                       3
Group history
  •     Established in 1981, Jaya is a vertically integrated shipbuilder and ship operator with a proven
        operating track record with almost 30 years of industry experience
  •     Jaya’s expertise is in the small and medium sized offshore support vessels (“OSVs”) which includes
        anchor handling, towing and supply vessels (“AHTSs”), platform supply vessels (“PSVs”), utility supply
        vessels, azimuth tugs, deck barges, and accommodation cum work barges



      Formed as a ship           Acquired Tuas                Singapore and Batam         Nautical Offshore                Cathay Asset Mgmt (wholly
       owning company.             shipyard in Singapore         shipyards obtained the       Service (“NOS”)                   owned by Deutsche Bank
      Purchased its first        Developed shipyard at         ISO 9001:2000                acquired 55% of                   AG) led a consortium and
       tugboat                     Batam, Indonesia              certifications for           Jaya                              acquired 55% of Jaya
      Acquired shiprepair        Diversified into              shipbuilding and ship
       yard                        conventional and              repair works
                                   container vessel sector

  1981          1992          1993           1994            2002         2004            2006             2010            2011

                      Listed on the              Listed on the             Sime Darby acquired a              Creditors approved
                       Singapore Stock             Singapore Stock            30% stake in Jaya from 5            proposed debt
                       Exchange - SESDAQ           Exchange – Main            shareholders                        restructuring & court
                                                   Board                                                          sanctions scheme




                                                                                                                                                       4
Company operations
 Jaya has 2 business divisions geared towards supporting the offshore oil and gas
 exploration and production projects




  • Owns and operates a young,                        • Operates two shipyards in Singapore
    diversified and sophisticated fleet                 and Batam (Indonesia) and has
                                                        outsourcing arrangements with several
                                                        shipyards in China




                                                                                                5
Results Highlights
Key financial highlights
US$M                       2Q FY2012   2Q FY2011    %Δ      1H FY2012   1H FY2011     %Δ
Revenue                      14.2        11.2      26.9         42.7        69.2    (38.3)
Gross profit                 2.0         1.8        8.9         10.6        22.0    (51.8)
EBITDA                       8.5         10.4      (18.3)       20.2        41.0    (50.7)
NPAT                         1.0         5.1       (80.5)        5.8        28.3    (79.6)


EPS (US ¢)                   0.1         0.7       (80.5)        0.7         3.7    (79.6)
NAV/NTA per share (US ¢)     59.5        51.7      15.0         59.5        51.7    15.0




                                                                                             7
        1H FY2012 Offshore Shipping revenue analysis

1H FY2012 revenue by charter type   1H FY2012 revenue by geography

                                                               Indonesia
      Bareboat                                                   14.1%
       34.1%                              Thailand
                                           19.5%




                                                                              Worldwide
                                                                               27.4%




                                        Malaysia
                                         20.8%
                                                                     Russia
                          Time                       Vietnam Qatar   9.4%
                          65.9%                        4.7% 4.1%




                                                                                          8
Results Highlights
                     NPAT
                     (US$'M)
                                          104.6

                               78.0                               73.7
                                                                                 64.4


                                                                                            28.3

                                                          0.8                                                 5.8


                               2007       2008            2009    2010           2011      1H FY11          1H FY12




 Total Assets                                                      Earnings per share
 (US$'M)                                                           (US$'cents)


                                       791.3      745.9   801.9
                     685.7     721.0                                              13.57
             627.7
                                                                         10.21                       9.55
     391.0                                                                                                     8.34
                                                                                                                       3.67
                                                                                          0.11                                 0.75


     2007    2008    2009       2010   2011    1H FY11 1H FY12           2007     2008    2009       2010      2011   1H FY11 1H FY12




 Achieved NPAT of US$5.8m for 1H FY2012

                                                                                                                                        9
Divisional performance
     EBITDA (1)
     (US$'M)




                              128.5


                               35.2                              103.7        100.1
           97.3
                                                                  22.0         11.1
           24.9
                                                    21.7
                               52.1                                            35.9

           41.7                                                   57.6                      41.0
                                                    44.1
                                                                               24.5         7.3
                                                                                                        20.2
                               41.2                                                         20.1
           30.7                                                                28.6                     4.5
                                                    22.8          24.1
                                                                                            13.6        15.7


                                                   (45.2)




           2007                2008                 2009          2010         2011       1H FY11      1H FY12

           Offshore Shipping               Shipbuilding        Gain on vessel disposal   Gain on other disposal


     (1)   Includes contribution from Conventional Shipping.




                                                                                                                  10
Vessel sales/disposal

 Number of vessel sold / disposed                                      Value of vessel sale / disposal
 No of vessels                                                         (US$M)


                                                                                             302         299

                         19           19                                                                  48
       16         16                                                                216      115
                                                                           191
                                      8
                         12                                                          85
        8         9                                                         70                                      125
                                                 8                                                       251
                                                        5                                    187                     81      59
                                      11         5                         121      131
        8         7      7                              2                                                                    15
                                                                1                                                                    13
                                                 3      3                                                            44      44
                                                                1                                                                    13

     2007        2008   2009         2010    2011    1H FY11 1H FY12      2007     2008     2009         2010       2011   1H FY11 1H FY12
                              Sold    Disposed                                                  Sold     Disposed




  In 1H FY2012, 1 vessel was sold generating US$13 million




                                                                                                                                             11
Balance Sheet
US$M                               31-Dec-11        30-Jun-11           %Δ
Fixed assets                           407.3            313.9          29.8
Stocks and WIP                         177.0            222.0         (20.3)
Trade debtors                           30.1             32.9          (8.6)
Trade creditors                         45.4             35.7          26.9
Shareholder's fund                     458.9            453.0           1.3
Gross debt                             258.0            258.0           0.0
Cash and cash equivalent               161.2            186.7         (13.7)
Net debt                                96.8             71.3          35.8

Net gearing                              0.21            0.16          34.0



 Financial position is strong to support the existing shipbuilding pipeline




                                                                               12
Shipbuilding
Jaya Shipyards
               Singapore shipyard                                Batam shipyard




         Location: Tuas, Singapore                     Location: Batam, Indonesia
         Size: 24,939sqm                               Size: 181,038sqm
         Shoreline: 130m                               Shoreline: 320m
         Berths:                                       Berths:
          − Two 90 x 20m berths                          − Five 100 x 20m berths
          − One 75 x 20m berth                          Capacity: Build up to 6 vessels per year
         Capacity: Build up to 3 vessels per year      Capability: Build commercial and
         Capability: Build highly-customized and        customized vessels
          sophisticated offshore vessels                Type of vessels:
         Type of vessels:                               −5,000 to 10,000 BHP AHTSs
          −8,000 to 16,000 BHP AHTSs                     −Accommodation barges
          −PSVs                                          −Sub-sea diving / ROV support vessels




                                                                                                    14
Shipbuilding program focus on high spec vessels
   1 Deliver on existing shipbuilding program & 2 support Offshore Shipping Division’s fleet expansion and renewal

  Vessel type                                       2H FY12           FY13 - FY14           Total

  AHTS                                                  3                  8                  11
      ~ 5,000 BHP                                       2                                     2
      ~ 8,000 BHP                                       1                  2                  3
      ~ 12,000 BHP                                                         4                  4
      ~ 16,000 BHP                                                         2                  2
  PSV                                                                      2                  2
  MP Maintenance Vessel                                                    1                  1
  Sub-sea diving / ROV Support vessels                  1                                     1

  Total projects                                        4                  11                 15



   Market value of 15 vessels estimated at between US$533M – US$588M based on independent
    valuation
   Estimated cost to complete of US$329M to be funded by internal operating cash flows from vessel
    sales and disposals and chartering income




                                                                                                                     15
Charter Fleet
Diversified young fleet
   Jaya’s fleet of 29 vessels provide transportation and support services for the full spectrum of oil
   and gas exploration, development and production cycle
             Vessel type                       Vessel description                     No. of vessels   Average age
             Anchor handling, towing and   ▪ Transport oilfield supplies and               22              2.3
             supply vessels / anchor           equipment
             handling tugs
                                           ▪ Tow, lift and reposition anchors for
                                               oil rigs, construction vessels and
                                               barges

             Utility supply vessels        ▪ Carry supplies to and from offshore            1              7.8
                                               structures and rigs

             Subsea Operation Vessel       ▪ Offshore accomodation with                     1              0.4
                                               helicopter landing
                                           ▪   ROV diving support for subsea
                                               activities
                                           ▪   Carry fuel oil, fresh water and deck
                                               cargo

             Accommodation work barges     ▪ Steel barges fitted with housing               2              1.8
                                               facilities for offshore construction
                                               and decommissioning

             Deck cargo barges             ▪ Non-propelled steel barges fitted to           3              3.6
                                               carry heavy structures and supplies

                                                                                           29              2.5


                                                                                                                     17
Charter profile as at 31 December 2011
         Type                               No. of Vessels
         AHTS (5,000 bhp)                         9
         AHTS (8,000 bhp)                         9
         AHTS (10,800 bhp)                        3
         AHTS (12,000 bhp)                        1
         Accomodation Barges                      2
         Cargo Barges                             3
         USV                                      1
         Subsea Operation Vessel                  1
         Total                                   29


         Fleet utilisation of 62% for 2QFY2012


                                                             18
Market Outlook




                 19
Market Dynamics – an overview

•   Clear correlation - oil price and E&P spend




                                   20
Market Dynamics – an overview

• Demand being satisfied by new suppliers


                                           World oil consumption grew by 2.7
                                           million b/d or 3.1% to reach a record
                                           level of 87.4 million b/d

                                           Non-OECD demand rose by 2.2 Mb/d –
                                           the highest annual growth on record in
                                           volumetric terms
                                           OECD oil consumption rose by 480 Kb/d
                                           – making 2010 the first year of annual
                                           OECD growth since 2005.




Source: Clarkson Research, Oct-2011




                                      21
Market Dynamics – an overview

• Oil prices forecast to remain above investment thresholds




           E&P companies prepared budgets assuming $77 oil on average,
                             up from $70 last year…


                                        22
Market Dynamics – an overview




                          23
Market Dynamics – an overview
            Age Profile Offshore Vessels
                                                                                                              40% of the current fleet is over 25 years old. In general they
                       >25 y.o.
                                                                 <5 y.o.                                      are technically incapable of supporting deep water activities
                                                                  31%
                         40%                                                                                  and represent a contingent risk in respect of safety and
                                                                                                              reliability.
                                                                   5-10 y.o.
                                                                     14%
                                              11-15 y.o.
                                                 8%
     21-25 y.o.
        4%
              16-20 y.o.
                 3%



                                      Offshore Construction and Support Vessels Deliveries Since 1980
 600
 500
 400
 300
 200
 100
    0
         1980
                1981
                       1982
                              1983
                                     1984
                                            1985
                                                   1986
                                                          1987
                                                                 1988
                                                                        1989
                                                                               1990
                                                                                      1991
                                                                                             1992
                                                                                                    1993
                                                                                                           1994
                                                                                                                  1995
                                                                                                                         1996
                                                                                                                                1997
                                                                                                                                       1998
                                                                                                                                              1999
                                                                                                                                                     2000
                                                                                                                                                            2001
                                                                                                                                                                   2002
                                                                                                                                                                          2003
                                                                                                                                                                                 2004
                                                                                                                                                                                        2005
                                                                                                                                                                                               2006
                                                                                                                                                                                                      2007
                                                                                                                                                                                                             2008
                                                                                                                                                                                                                    2009
                                                                                                                                                                                                                           2010
                                                                                                                                                                                                                                  2011
                                                                                                                                                                                                                                         2012
                                                                                                                                                                                                                                                2013
                                                                                                                                                                                                                                                       2014
                                                                                                                                                                                                                                                              2015
                                                                                                                                                                                                                                                                     2016
                                                                                                                                                                                                                                                                            2017
                                                                                                                                                                                                                                                                                   2018
                                                                                                             Delivered                                                                                                                                 On Order


 Source: Clarksons World Fleet Register



                                                                                                                                        24
Market Dynamics – an overview

 • Asia-Pacific region will see highest activity levels in next 5 years
          Global Production Starts: 2007-2011                  Global Production Starts: 2012-2016
                         North                                           North      Caspian Sea   Russian
                                Caspian Sea Russian
                        America                                         America         1%         Arctic
      West Africa                   1%       Arctic
                          3%                                              4%                        0%
         5%                                   0%

Latin America
                                                                              GoM
      6%
                                                                               8%                   APAC
                                                                West Africa
                                                GoM                                                  32%
          ME / SE                                                   8%
                                                37%        Latin America
           9%
                                                                10%
         Europe
          16%                                                                                 Europe
                                                                ME / SE
                                  APAC                           12%                           25%
                                  23%




Source: ODS-Petrodata




                                                      25
Market Dynamics – an overview




                          26
Market Dynamics – an overview




                       27
Market Dynamics
The next decade
• Increasing prosperity and therefore energy demands in
  developing nations will require new sources of oil to find and
  develop.
• The days of cheap oil are over
• Future offshore production will be in areas that are politically and
  environmentally sensitive and technically challenging
• Deep water technology and post-Macondo concerns are driving
  bifurcation in favour of newer/more capable assets




                                  28
Thank You




            29

				
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