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Mermaid Maritime Plc.

Mermaid Maritime Plc.Mermaid Maritime Plc.Mermaid Maritime Plc.Corporate PresentationMermaid Maritime Plc.Corporate PresentationInvestor Conference with Credit Suisse Exploration & Production and Offshore & Marine Corporate DayE p o a io o u io a Off o e a i e o po a e ay21‐22 January 2014, Singapore

www.mermaid‐maritime.com


Disclaimer

This presentation has been prepared by Mermaid Maritime Plc. for shareholders, solely forinformation purposesinformation purposes.

The views expressed here contain some information derived from publicly available sources thathave not been independently verified.

No representation or warranty is made as to the accuracy, completeness or reliability of theinformation. Any forward looking information in this presentation has been prepared on thebasis of a number of assumptions which may prove to be incorrect.

This presentation should not be relied upon as a recommendation or forecast by MermaidMaritime Plc. Nothing in this release should be construed as either an offer to sell or asolicitation of an offer to buy or sell shares in any jurisdiction.

www.mermaid‐maritime.com ‐ 2 ‐


Agenda

1. Mermaid Business Summary

2. Market Outlook2. Market Outlook

3. Subsea Business

4. Drilling Business

5. Financial Review & Order Book

6. Summary & Upcoming New Assets



Agenda

1. Mermaid Business Summary



Who We Are & Our Leadership

Mr. Prasert BunsumpunChairman of the Board

Over 30 years experience in theoffshore oil and gas industry.

Distinguished career includes CEOof PTT Plc. and Chairman of PTTExploration and Production Plc.,Thailand’s national oil and gasA l di i t ti l i li t b Thailand s national oil and gascompany.

Mr. Chalermchai MahagitsiriE e uti e Vi e Chai a &

A leading international specialist subseaand drilling services company listed on theSingapore Stock Exchange.

Owner and operator of a diversifiedtf li f b l d d illi i Executive Vice Chairman &

Chief Executive Officer

CEO of family holdings PMGroups Co. Ltd.

portfolio of subsea vessels and drilling rigsproviding a complete suite of turnkeyservices.

Quality customer base and significantt t b kl idi i

Proven track record of successfullymanaging and growing a variety ofbusinesses including coffee, steel,copper, shipping, media,entertainment resorts and golf

contract backlog providing earningsvisibility.

Excellent operational performance andproven track record with further

t iti f th


entertainment, resorts and golfcourses.

opportunities for growth.

‐ 5 ‐


Mermaid – Company Snapshot

30 years since Mermaid Maritime’sestablishment

5 regions which Mermaid operates

500skilled workers, crews, technicians, service providers &establishment operates service providers & management

SUBSEA BUSINESS DRILLING BUSINESS

Asia Middle EastNorth Sea

10subsea vessels

5 + 12

2 tender rigs

3Pacific &SE Asia

Africa

5 + 12 saturation and air diving systems

17

3 high‐spec jack‐ups*

* 33.76% ownership through Asia

Subsea inspection

Subsea infrastructure

Subsea emergency

remotely operated vehicles

33.76% ownership through Asia Offshore Drilling Limited

Subsea cable Offshore drilling Accommodation Subsea

remotely


inspection, repair and maintenance

infrastructure installation support

emergency callout & salvage

cable laying and work over

servicesrig servicesremotely

operated vehicle support

‐ 6 ‐


Board Members & Our Key ExecutivesBoard Members *

Dr. Jean Paul TheveninNon‐Executive Director

Mr. Ng Cher YanIndependent Director

Dr. Jan SkorupaIndependent Director

Mr. Joachim TohIndependent Director

Mr. Joseph ChiaExecutive Director

Key ExecutivesBoard of Directors

CEO

P l Wh l k A b S

Office

Subsea Services

Drilling Services

P R hl


Mr. Paul WhileySubsea MD

( MENA & Europe)

Mr. Mike AmbroseSubsea MD (Asia Pacific)

Mr. Steve LenzDrilling Executive

Director* In addition to Mr. Prasert Bunsumpun & Mr. Chalermchai Mahagitsiri

‐ 7 ‐

Mr. Peter ReichlmeierSeascape MD


FY2013 Business Highlights

Corporate ActionsRaised ~USD 140 million through rights issue and private placement

Focused on growth, operational excellence and delivering shareholder returns

Achieved record contract backlog of

~USD 650 million*

S b S i

Focused on growth, operational excellence and delivering shareholder returns

Completed final equity raising in AOD and supported its launch with Seadrill

Adoption of functional currency reporting in USD Delivered FY2013 net profit of USD 15.4 million

Subsea ServicesAwarded landmark 5+2 year offshore IRM contract in Saudi Arabia

Secured suite of subsea contract awards in Qatar, Indonesia, China, Thailand

(3.5x increase from FY2012)

Recom. final dividend of Achieved geographical expansion plans into Middle East and North Sea

Initiated new service capabilities including subsea cable lay

Offshore Drilling

US 0.86 cents per share(due to good performance)

g

MTR‐1 completed accommodation barge services contract in Indonesia

MTR‐2 awarded 2 year drilling contract in Indonesia

AOD awarded 3+1 year drilling contract in Saudi Arabia for all 3 new build rigs

Ready for growth with completed rights issue and

D/E ratio of 0.26


AOD awarded 3+1 year drilling contract in Saudi Arabia for all 3 new build rigs

All 3 AOD rigs successfully delivered from Keppel FELS and started contracts * As at 1 October 2013 and not includingAOD pro‐rata contribution of an additional~USD 170 million

‐ 8 ‐


Agenda

2. Market Outlook



Market Outlook

Stable oil price leads to renewedconfidence in exploration andproduction (E&P) spending by oiland gas companies.

Prices above minimum rate oft (h dl t )returns (hurdle rates) on new

investments.

E&P spending continues toincrease year‐on‐year and thisdrives the demand for offshoredrilling and subsea services.

Oil and gas companies expected tospend over USD 600 billion in E&Pin 2013 with industry on strong

t i d l


(Source: Pareto, Kennedy Marr, Strategic Offshore Research)

sustained up cycle.

‐ 10 ‐


Population and income growth will drive more energy demand

By 2030 world population is World income in 2030 is expected Due to rapid industrialization,y p pprojected at 8.3 billion whichmeans an additional 1.3 billionwill need energy. Emergingeconomies account for 90% ofpopulation growth

pto roughly double 2011 in realterms with emerging economiescontributing to 70% of globalGDP growth.

purbanization and motorization,emerging economies will alsocontribute to over 90% of theglobal energy demand growth.


population growth.

(Source: BP Energy Outlook 2030)

‐ 11 ‐


With Oil and Gas still dominating the energy market

By 2030, energy demand isexpected to be 36% higher than2011 with almost all growthcoming from emerging

Energy used in power generationand directly in industry leadgrowth trends.

Renewable energy use will growbut oil and gas are expected tostill dominate the energy market.


coming from emergingeconomies.

(Source: BP Energy Outlook 2030)‐ 12 ‐


High Quality Customer Base



Customers Choose Mermaid Because …

Excellent health, safety and environment track record

First tier service quality / competitive price mixFirst tier service quality / competitive price mix

Capability and resources to handle large and small projects as required

‘One‐stop’ service point for specialized subsea support and drilling

A large pool of in‐house experienced and dedicated personnel

Strategic local partnerships in various geographies

Local talent development program and local content focusp p g

Fully compliant with international standards on vessel and equipment

Track record of successful projects with reputable clients

R i ll b d i h l l i hiRegionally based with long‐term customer relationships

Dynamic with quick response to emergency call outs and variation orders

Dedication to support customers at all times and in all situations


Over 90% continued repeat business


Agenda

3. Subsea Business



Subsea dynamics reveals stable growth trends …

150

200

250

400

500

600

700

EARS

G (B

N USD

)

E&P Spending DemandIncreased E&P spending has drivenup demand for subsea services.

S i d h i d d f

50

100

100

200

300

400

VESSEL Y

E&P SPEN

DINGSustained growth in demand for

subsea vessels of all typesforecasted.

Mermaid’s subsea order book is at 00

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

250275

~USD 590 million*

125150175200225250

l years

0255075100125

Vesse


02000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Diving support LAYSV ROV support

(Source: Strategic Offshore Research)‐ 16 ‐

* As at 1 October 2013 and excludes contract options


…with Mermaid strategically positioned

Our Brands

Our Edge

Essential Services

•Extensive amount of

Repeat Business

•Strong presence in

Geographical Expansion

•Expansion plans into

Excellent Safety & Performance Record

• Brand synergy

g

•Extensive amount ofsubsea infrastructurerequired to extractand transport oil andgas all need subsea

•Strong presence inkey markets ofThailand, Indonesia,and the Middle Eastallows Mermaid to

•Expansion plans intomore countries suchas West Africa,Malaysia and NorthSea can fuel further

• Brand synergytogether with provenassets, operational &technical capabilitygives lead ong

services. win repeat business. growth.gcustomer preference.

Our ServicesSubsea inspection Subsea Subsea remotely Subsea emergency Subsea cable laying


Subsea inspection, repair and maintenance

Subsea infrastructure installation support

Subsea remotely operated vehicle support

Subsea emergency callout service & salvage

Subsea cable laying

‐ 17 ‐


Mermaid’s subsea fleet continues to grow

Dive Support Vessels (DSV)Dive Support Vessels (DSV) ROV Support Vessels(RSV)ROV Support Vessels(RSV)

Mermaid Endurer Mermaid Sapphire

Variety of specialized subsea vessels to fulfillcustomer work scope requirements.

Additional vessels chartered‐in to support increasedcontract awards.

Subsea fleet complimented by specialized equipment,ROVs, divers and project teams for ‘turnkey’ services.

Construction Barges Construction Barges Offshore Support/UtilityOffshore Support/Utility

Mermaid Asiana Endeavour* Mermaid Siam Mermaid Challenger

Mermaid Commander Resolution* Mubarak Supporter*Delivery in April 2014

SS Barakuda

www.mermaid‐maritime.com * Chartered‐in vessels‐ 18 ‐


Agenda

4. Drilling Business



Tender rigs have their niche

Tender Rig Statistics Tender Rig Market Outlook

Tender rig fleet is aging with ~50% of the global fleetat 30+ years old (dying fleet).

Established niche market and customer acceptance inSouth East Asia and West Africa.

25 tender rigs globally with 17 on contract and 8recently finishing contract/stacked (mostly older rigs)plus additional 7 new builds under construction.

Industry utilization traditionally above ~90% with

Day rates strengthening since 2010 and now at USD115,000/day on average. More rigs required to satisfyfuture potential demand and phasing out of old rigs.

Tender rigs provide production drilling capabilities


y ynewer rigs all at 100% utilization indicating customerpreference of new rigs over older rigs.

g p p g pand can work in any seabed condition vs. jack‐upshence longer term contracts and stable earnings.

‐ 20 ‐


Jack‐up market shows positive trends

Jack‐Up Market

Supply/demand remains tight andutilization is above 90%.

Demand expected to outstripsupply in next 1.5 years.supply in next 1.5 years.

Big amount of orders but the“backlog” of demand continues togrow.

During the next decade more than50% of the current fleet that are 30+years old are expected to be phasedout.

Customers prefer newer rigs andthis should drive their day rates up.


(Source: Pareto)


Mermaid & AOD fleet

MTR‐1 Accommodation Barge MTR‐2 Tender Drilling Rig

AOD I AOD II AOD IIIAOD IPremium Jack‐up Rig*

AOD IIPremium Jack‐up Rig*

AOD IIIPremium Jack‐up Rig*

www.mermaid‐maritime.com* 33.76% Interest

‐ 22 ‐


Agenda

5. Financial Review & Order Book



FY2013 Financial Highlights

Year on Year Comparison Cash & Cash Equivalents 148.862.3 Cash and cash

equivalents increased 139% by USD 86.8 million

Cash and cash equivalents increased 139% by USD 86.8 million

Revenue (in USD millions)

Operating Cash Flow (in USD millions)Restricted Deposits at Financial Institutions 4.0 4.0

Ri h iRi h i

All units in USD millions

CF from FinancingCF From Operations

Net Profit (in USD millions)

269.6

EBITDA (in USD millions)

131.5

Rights issue USD 126.5 million(excluding private placement received in Oct 13)

Rights issue USD 126.5 million(excluding private placement received in Oct 13)

pCF from Investments

3132

183.6

25.031.4

42.8

56.7

0.150.3225.0

(70.0)

31.4

4.7

(17.0)FY2012 FY2013

3

4.0

15.4

Revenue Growth, Net Profit & Operating Cash Flow

4Q20134Q2012

Includes AOD final investment of USD 33.8 million

Includes AOD final investment of USD 33.8 million

FY2012 FY2013


Cash Flow

Not to scale. For illustrative purpose only.‐ 24 ‐


FY2013 Sector Breakdown All units in USD millions

246 4

Service Income Operating Profit/Loss Operating Margin

Utilization Rate*

FY2012

FY2013

148.5

246.4

24.310.3

9.8%5.9%

68.6%71.4%

Subsea & Survey Services

35.0

23.6 64.6%

70.1%

Drilling Services

(2.4)

9.3 26.4%

(10%)

g

Revenue Breakdown

FY2013

Operating Profit/Loss BreakdownSubsea & Survey, 85.9%

Drilling, 14.1% Drilling, ‐11.0%


Y 0 3

* Net utilization after deducting maintenance days

Subsea & Survey, 111.0%

Not to scale. For illustrative purpose only.‐ 25 ‐


Debt Structure

< 1 year

Loan MaturityUnits in USD millions

< 1 yearLow D/E ratio allows financial flexibility

Net D/E (Times)

0.35

363.5556.7

124.0

6.7

117.4

19.3 0.260.33

> 1 year > 1 year

4Q2012 4Q2013 FY2012FY2011 FY2013

130 7

136.7

Loan Outstanding

25.5

31.5

Repayment Loan

125.9

130.7

15.7

11.0 11.0 12.0 13.1 14.0

www.mermaid‐maritime.com Not to scale. For illustrative purpose only.

4Q2011 4Q2012 4Q2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

‐ 26 ‐


Sector order book*

Over all

~USD 650 Million* Subsea 91%Drilling 9%

Order book split by business

Subsea

* As at 1 October 2013 and not including AODpro‐rata contribution of an additional ~USD170 million

FY201448%

FY2016+30%

Order book split into yearsMiddle East &

Africa69%

SE Asia and

Order book split by geography

Drilling

FY201522%

30% SE Asia and Asia Pacific24%

North Sea7%

FY201459%

Order book split into years South East Asia100%

Order book split by geography


FY201541%

‐ 27 ‐


Agenda

6. Summary & Upcoming New Assets



Summary

Strong position in Thailand, Indonesia, Middle East

Proven assets, technical and operational

Management team to drive growth and operational

capabilitiesvalue‐added service wins

Record contract order book with reputable clients

Robust balance sheet and reputable clients

for earnings visibility

Strong market

prudent financial discipline


fundamentals and outlook


Latest update : Upcoming New Assets

9 January 2014: Secured 3x new build orders with China Merchants worth USD 436 millionwith delivery to Mermaid scheduled for 2016. New builds to be fully funded with existingcash reserves, operating cash flows and debt with no requirement for additional equity.

2xPerformance Class Tender Drilling Rigs

Larger deck & storage space

More accommodation onboard & 21st century designy g

Drilling package faster rig up time

Heave compensated heavy lift crane

Auto trim high volume seawater ballast system

1x

Au o i ig o u e ea a e a a y e

Multipurpose Subsea Dive Support & Construction Vessel

Diving operations with 18‐man twin bell systems

ROV and seabed construction work capabilities

Excellent speed and sea keeping properties

d d f l d h h f l l


Reduced fuel consumption and high safety level

MT6024 proven design for deployment worldwide

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