2014

NO. 40/NL/X/2014

NEWSLETTER # 40 31st October 2014

WINS Revenue from Owned Vessels increased by 10% YOY to USD 82.8million for 9M2014 due to new vessel additions.. Gross profit for the nine months rose to USD 46.5million (+6%YOY) and EBITDA amounted to USD 56.2 million.

Owned Vessels Fleet additions in 1H2014 contributed to the increase in Owned Vessel Division revenues to USD 82.8 million for 9M2014, a 10% YOY increase. However, Gross Profit rofit margins for Own Vessels essels shrank to 49%, reflecting a fall in utilization in 3Q 2014 as several long term contracts ended and were not immediately renewed due to a lull in contract approvals by the regulators, in a year dominated by politics pol and corruption investigations. Direct costs rose by 15%, largely due to crew expenses as more qualified crew were recruited to operate the higher tier vessels, and maintenance costs linked with some repairs and upgrades for vessels in between contracts. contrac Gross Profitit from Owned Vessels rose by 6%YOY to USD 40.4 4 million for the period under review.

PT WINTERMAR OFFSHORE MARINE Tbk Jl Kebayoran Lama No 155 Jakarta 11560 Indonesia Tel : 62 21 530 5201 / 2 Fax : 62 21 530 5203 www.wintermar.com

Pendapatan WINS dari Kapal Milik naik 10% YOY menjadi USD 82,8 juta selama 9 bulan 2014 karena penambahan kapal. Laba bruto selama sembilan bulan naik na menjadi USD 46,5 juta (+6% YOY) dan EBITDA sejumlah USD 56,2 juta.

Kapal Milik Penambahan kapal selama semester I 2014 menyumbangkan kenaikan pendapatan pada segmen kapal milik menjadi USD 82,8 juta selama 9 bulan tahun 2014, naik 10% YOY. Namun, marjin laba bruto kapal milik menciut menjadi 49%, mencerminkan penurunan utilisasi pada kwartal 3 tahun 2014 karena beberapa kontrak panjang berakhir dan tidak diperbaharui segera berhubung melambatnya persetujuan kontrak oleh regulator, dalam tahun yang didominasi oleh politik dan penyidikan kasus korupsi. Beban langsung naik 15%, terutama karena beban crew seiring dengan perekrutan crew-crew crew yang qualified untuk mengoperasikan kapal-kapal kapal high tier, dan beban pemeliharaan terkait beberapa beberap perbaikan dan upgrade kapalkapal di antara kontrak-kontrak. kontrak. Laba Bruto dari kapal milik naik 6% YOY menjadi USD 40,4 4 juta selama periode yang ditelaah.

NO. 40/NL/X/2014

Chartering Division As a result of the market environment,, our Chartering Division also experienced a fall in revenue by 24%YOY to USD 41.4 million for 9M2014,, as there were fewer contracts awarded while tenures became shorter. However as margins in chartering are much lower than Owned Vessel Division margins, this did not have any major or impact on our total gross profit.. Through our investment in our internal management systems and strengthening our QHSE team, WINS continues to increase our capacity to win tenders for high value vessels which may not be as easily accessible to other third party OSV owners.

Divisi Chartering Sebagai akibat dari kondisi pasar, Divisi Chartering mengalami penurunan pendapatan 24% YOY menjadi USD 41,4 juta selama 9 bulan 2014, karena kurangnya kontrak yang diperoleh sementara jangka waktu kontrak juga semakin pendek. Namun marjin chartering ini jauh lebih rendah daripada kapal milik sehingga tidak ada pengaruh besar terhadap laba bruto keseluruhan. Melalui investasi kami dalam sistem manajemen internal dan memperkuat tim QHSE, WINS terus meningkatkan kapasitasnya untuk memenangkan memena tender kapal-kapal kapal high value yang tidak mudah diakses oleh pihak ketiga lain pemilik OSV.

Indirect expenses rose by 16%, largely contributed by higher salary expenses of 31% as we continued to build up our human capital through recruitment ecruitment of more experienced vessel managers and technical echnical personnel to handle our growing fleet of more specialized vessels. Total operating profit fit for the nine months ending September 2014 was USD 36.8 million compared to USD 35.6 million in the previous year, a gain of 3%.

Beban tidak langsung naik 16% sebagian besar kontribusi dari beban gaji yang lebih tinggi 31% karena kami melanjutkan membangun angun human capital melalui rekrutmen manajermanajer manajer kapal dan personil teknik yang lebih berpengalaman untuk menangani armada kami yang berkembang lebih ke arah kapal-kapal kapal khusus. Total laba operasi selama sembilan bulan yang berakhir September 2014 adalah ada USD 36,8 juta dibandingkan USD 35,6 juta pada periode sebelumnya, naik 3%.

Other Income and expenses Due to the acquisition of 3 new vessels in the first half, and the conversion of some loans from floating to fixed rates last year, interest expenses including finance related costs rose to USD 9.3 million for 9M2014 compared to USD7.8 million in the previous nine months. This accounted for fo most of the increase in Other Expenses.

Pendapatan dan Beban Lain--lain Sehubungan dengan akuisisi 3 kapal baru pada semester pertama dan konversi beberapa pinjaman berbunga mengambang menjadi berbunga tetap tahun lalu, beban bunga termasuk beban-beban beban terkait pendanaan naik menjadi USD 9,3 juta selama 9 bulan 2014 dibandingkan USD 7,8 juta pada 9 bulan sebelumnya. ebelumnya. Hal ini menjadi penyebab utama kenaikan Beban Lain-lain.

Net Income Net income before taxes for 9M2014 was USD 27.9 million, a slight decrease compared to the same period in 2013. After taxes and minorities, net income attributable to shareholders of WINS amounted to USD 18 million against USD 18.8 million for the corresponding nine month period in 2013.

Laba Bersih Laba bersih sebelum pajak selama 9 bulan 2014 sebesar USD 27,9 juta, sedikit turun dibandingkan periode yang sama tahun 2013. Setelah pajak dan minoritas, laba yang dapat diatribusikan kepada pemegang saham WINS sebesar USD 18 juta dibandingkan USD 18.8 juta selama periode sembilan bulan 2013.

Assets and gearing Our present net gearing of 85% at the end of 3Q2014, is lower than net gearing of 96% as at end December 2013, despite the addition of new vessels to our fleet this year. This is the result of our actions to strengthen our balance sheet in 1H2014 in preparation ration for a challenging second half. This was done through the raising of some equity through a placement and the conversion of our convertible loan into equity. We are therefore well prepared to ride out the near term lull in offshore activity while being ng able to expand once the demand for OSVs resumes.

Aset dan gearing Net gearing 85% pada akhir kwartal 3 tahun 2014 adalah lebih rendah dibandingkan 96% pada akhir Desember 2013, meskipun ada penambahan kapal-kapal kapal baru dalam armada kami tahun ini. Hal ini adalah akibat dari aksi kami untuk memperkuat neraca pada semester I tahun 2014 dalam persiapan untuk semester kedua yang menantang yang dilakukan dengan penerbitan ekuitas melalui penempatan dan konversi convertible loan menjadi ekuitas. Kami menjadi siap untuk menghadapi pelambatan jangka pendek pada aktivitas lepas pantai dan juga mampu untuk berekspansi ketika pemintaan atas OSV membaik.


NO. 40/NL/X/2014

Industry Environment As anticipated, the 3rd quarter of 2014 proved to be the most challenging this year, as the lack of progress on contract approvals in the first half took its toll on vessel utilization rates. Several large projects which were contracted in 2013 concluded work in this quarter and in particular some notable deepwater projects anticipated to start this year have been delayed due to lack of approvals from the regulator. WINS has been very active in marketing our deepwater-ready deepwater vessels on short term spot work as well as opening up new ne markets in Myanmar, Brunei and recently, Bangladesh, in addition to working in India, Malaysia, Thailand and Vietnam. Although the margin on overseas work is lower than our domestic market, these recent contracts are part of our strategy to strengthen our ur international footprint by building a regional track record to support our long term vision of being a leader in South East Asia.

Lingkungan Industri Seperti yang diantisipasi, kwartal ketiga tahun 2014 menjadi yang paling menantang pada tahun ini, kurangnya progres atas persetujuan kontrak pada semester pertama meyebabkan korban atas tingkat utilisasi. Beberapa proyek-proyek proyek besar yang dikontrak pada 2013 telah selesai pada kwartal ini dan beberapa proyek-proyek proyek laut dalam yang diantisipasi untuk dimulai tahun ini telah ditunda karena belum ada persetujuan dari regulator. WINS secara aktif telah memasarkan kapalkapal kapal yang siap untuk laut dalam di spot work jangka pendek dan telah membuka pasar baru di Myanmar, Brunei dan barubaru baru ini Bangladesh, selain India, Malaysia, Thailand dan Vietnam. Walaupun marjin di luar negeri lebih rendah daripada pasar domestik, kontrak-kontrak kontrak yang terbaru ini adalah bagian dari strategi kami untuk memperkuat jejak internasional kami dengan membangun jejak rekam untuk mendukung visi jangka panjang kami menjadi pemimpin di Asia Tenggara.

However, the contract tenures, particularly in the high tier Namun, jangka waktu kontrak, khususnya kapal high tier, vessels, continue to be short and this will continue to impact selalu jangka pendek dan akan berakibat kepada tingkat our utilization rates for the balance of the year. utilisasi kami pada tahun ini. Against this challenging environment, we have managed to secure a 3 year contract for 2 high tier vessels for deep water development support with a major oil company. company This has brought our contracts on hand up to USD 116 million as at end September 2014.

Menghadapi lingkungan yang menantang ini, kami telah memperoleh 3 tahun kontrak 2 kapal high tier untuk mendukung pengembangan laut dalam dari perusahaan minyak besar. Hal ini mengakibatkan nilai kontrak kami naik menjadi USD 116 juta pada akhir September 2014.

Outlook President Joko Widodo’s “Working Cabinet” comprising several experienced professionals in key roles with their stated priority on building up the maritime and energy industry in Indonesia, bodes very well for the long term growth of our company, which is exposed xposed to both these industries. We remain optimistic about the future of the offshore oil and gas industry as a driver of growth in Indonesia. However, we recognize that it will take some months for the new Cabinet to settle into their roles before activity vity in our sector picks up. In the meantime, we have established our international marketing team and have been lining up work in neighbouring markets like Myanmar, Vietnam and Brunei where there is still good demand for deepwater vessels.

Prospek Kabinet Kerja Presiden Joko Widodo terdiri dari profesionalprofesional profesional berpengalaman yang berperan penting dalam prioritas mereka untuk membangun industir maritim dan energi di Indonesia, yang beralamat sangat baik bagi pertumbuhan jangka panjang perusahaan kami yang terlibat dalam kedua industri tersebut. Kami tetap optimis mengenai masa depan industri minyak dan gas lepas pantai sebagai pendorong pertumbuhan di Indonesia. Namun, kami mengakui bahwa Kabinet baru butuh beberapa bulan untuk mantap dengan peran baru mereka sebelum aktivitas pada sektor kami kembali bergairah. Sementara itu, kami telah membentuk tim pemasaran internasional dan telah bekerja pada pasar terdekat seperti Myanmar, Vietnam dan Brunei dimana masih ada permintaan yang bagus atas kapal-kapal kapal laut dalam.

Our strategy to build up our high value fleet remains intact, with 65% of our fleet now positioned in the high value segment comprised of mid-tier and high--tier vessels. We are looking ahead and planning for more value added vessels in 2015 and particularly in 2016 which is when we would expect a significant pick up in exploration and development activity in deepwater fields.

Strategi kami membangun armada kapal bernilai bernil tinggi masih tetap kukuh dengan 65% dari armada kami merupakan kapalkapal kapal pada segmen yang bernilai tinggi (yaitu segmen mid-tier dan high-tier).. Kami memandang ke depan dan berencana untuk memperbanyak kapal-kapal kapal bernilai tambah lebih pada tahun 2015 dan khususnya 2016 pada saat mana kami harap adanya kenaikan yang signifikan pada aktivitas pengembangan di ladang laut dalam.


NO. 40/NL/X/2014

Fleet Composition / Komposisi Armada *

68%

54%

50% 42%

51%

42%

49%

39%

35%

29%

3%

2010

2011

Low tier

2012

Mid tier

For further information, please contact:

High tier

16%

10%

8%

4%

2013

Sep-14

* By number of vessel / berdasarkan jumlah kapal

Untuk informasi tambahan, silahkan hubungi : Ms Pek Swan Layanto Investor Relations PT Wintermar Offshore Marine Tbk Tel (62-21) 530 5201 Ext 401 Email: [email protected]

DISCLAIMER Certain statements made in this publication involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. Certain statements relating to business and operations of PT Wintermar Winte mar Offshore Marine Tbk and Subsidiaries (the Company) are based on management’s expectations, estimates and projections. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Certain Cert statements are based upon assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results results may differ materially from what is expressed or forecasted in such statements. The Company makes no commitment, and disclaims any duty, to update or revise any of these statements. stat This publication is for informational purposes only and is not intended ed as a solicitation or offering of securities in any jurisdiction. The information contained in this publication is not intended inte to qualify, supplement or amend information disclosed under corporate and securities legislation of any jurisdiction applicable applicable to the Company and should not be relied upon for the purpose of making investment decisions concerning any securities of the Company. Company


NO. 40/NL/X/2014

SUMMARY PROFIT AND LOSS ( YTD Q3-2014 vs YTD Q3-2013) PT WINTERMAR OFFSHORE MARINE TBK AND SUBSIDIARIES (USD)

YTD Q3-2014

YTD Q3-2013

2014 vs 2013 Change %

PROFIT AND LOSS Revenue Owned vessel Chartering Others Total Revenue

82,775,783 41,445,503 7,252,122 131,473,408

75,241,612 54,451,441 7,561,055 137,254,108

7,534,171 (13,005,938) (308,933) (5,780,701)

10% -24% -4% -4%

Direct expense Owned vessel Charter Others Total Direct expense Gross profit

42,331,535 37,401,320 5,209,048 84,941,904 46,531,504

36,957,669 51,002,800 5,236,148 93,196,618 44,057,491

5,373,866 (13,601,480) (27,100) (8,254,714) 2,474,013

15% -27% -1% -9% 6%

Gross profit - owned vessel Gross profit - chartering Gross profit - others

40,444,247 4,044,183 2,043,074

38,283,942 3,448,641 2,324,907

2,160,305 595,542 (281,834)

6% 17% -12%

Total Indirect expenses Operating profit

9,760,463 36,771,041

8,435,626 35,621,865

1,324,837 1,149,176

16% 3%

Other income (expenses) Interest and financing cost Interest income Equity in net earning of associates Net - Gain (loss) on sale of fixed assets Forex gain (loss) Others Total Other income (expenses) Net income before tax Total tax expenses Income before non controlling interest Non controlling interest

(9,339,354) 171,126 297,643 1,065 (185,799) 156,527 (8,898,790) 27,872,251 (1,986,301) 25,885,950 7,916,808

(7,838,284) 120,876 1,432,199 (1,063,728) 261,975 (463,728) (7,550,690) 28,071,175 (2,239,673) 25,831,502 6,966,987

(1,501,070) 50,250 (1,134,556) 1,064,793 (447,774) 620,255 (1,348,100) (198,924) 253,372 54,448 949,821

19% 42% -79% -100% -171% -134%

NET INCOME

17,969,142

18,864,515

(895,373)

-5%

EBITDA

56,231,694

51,551,822

4,679,872

9%

0.46 56

0.51 59

-0.05 -3.10

-10% -5%

Weighted Average EPS - USD Cents Weighted Average EPS - Equivalent to IDR PT WINTERMAR OFFSHORE MARINE Tbk Jl Kebayoran Lama No 155 Jakarta 11560 Indonesia Tel : 62 21 530 5201 / 2 Fax : 62 21 530 5203 www.wintermar.com

-1% -11% 0% 14%

NO. 40/NL/X/2014

Own Vessel Utilisation & Margin

Owned Vessel Revenue % - YTD Q3-2014 Q3

76%

70%

Low tier, 10% 51.0%

48.9%

High tier, 51%

Mid tier, 39% YTD Q3-2013

YTD Q3-2014

Utilisation

YTD Q3-2014 - OWNED VESSEL DIRECT EXPENSE Maintenance 11% Operations 10%

Depreciation 45%

Crewing 30%


YTD Q3-2013 - OWNED VESSEL DIRECT EXPENSE Maintenance 13%

Fuel Bunker 4%

GPM

Fuel Bunker 5%

Operations 11%

Depreciation 43%

Crewing 28%

2014

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