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OTTO MARINE LIMITEDBuilding upon strong fundamentals

OTTO MARINE LIMITED

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This presentation and the associated slides contain confidential information about Otto Mar ine Limited (the “Company”) and its subsidiariesand associates (together with the Company, the “Group”).

By accepting such information, the recipient agrees to keep permanently confidentiala ll information contained herein and that it w ill use suchinformation on ly for the purpose it has disclosed to the Co mpany for participating in this presentation and not for other purposes and w ill notdivulge any such information to any other party without the express consent of the Company.Any reproduction of such information, in wholeor in part, is prohibited without the permission of the Company.

This presentation includes only summary information and does not purport to be comprehensive. The information contained in thispresentation has not been subject to independent verification. No promise, guarantee, representation, warranty or undertaking, express orimpl ied, is made as to ,and no rel iance should be placed on, the fairness,accuracy, reliabil ity,comp leteness or correctness of the informationor opinions contained herein. Neither the Company,any other co mpany within the Group or its advisors, nor any of their directors,officers oremployees or any representatives of such persons,shall have any responsibil ity or l iabil ity whatsoever (in negl igence or otherwise) for anyloss arising from any use of the information or any other information or materialdiscussed.

This presentation contains forward-looking statements relating to the business, financial performance and results of the Company. Thesestatements are based on current beliefs, expectations or assumptions and are subject to unknown r isks and uncertainties that could causeactual results,performance or events to differ materially fromthose described in such statements.These risks,uncertainties and other factorsinclude, but are not limited to ,economic condit ions g lobally, the impact of co mpetition, pol iticaland economic developments in countries inwhich the Group o perates and regulatory developments in those countries and internationally, foreign exchange rates,oil and gas prices andthe completion of ongoing transactions.Many of these factors are beyond the Company's ability to controlor predict.Although the Companybelieves that its expectations and the information in this presentation were based upon reasonable assumptions at the time when they weremade, it can give no assurance that those expectations willbe achieved or that the actual results willbe as set out in this presentation.

Nothing in this presentation constitutes and shall not in any circumstances be construed as an invitation or an offer to purchase or thesolicitation of an offer to purchase any securities issued by the Company or any advice or recommendation with respect to such securitiesand no part of this presentation shall formthe basis of or be relied upon in connection with any contract or commitment whatsoever.

Disclaimer

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Agenda

• Overview of Otto Marine

• Investment Merits

• Business Segments

• Financial Highlights

• Industry Outlook, Growth Strategies

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1. Overview of Otto Marine

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Overview

• Offshore Marine Group – engaged in Shipbuilding / Repair & Conversion, Chartering /Leasing and Specialised Services

• Headquartered in Singapore – commercial, procur ement, and treasur ysupport to ouroverseas operations (Indonesia, China, UAE, etc)

• Shipyard in Batam Indonesia – strong management and engineering team capable ofdelivering complex and deep water offshore vessels

• Strategic direction – provider of specialised offshore vessels and ser vices in nichetechnical segments (i.e. seismic, subsea, offshore construction, etc)

• Customers – primarily speci alised offshore ser vice provi ders in niche segments, andfleet operators in the oil and gas industry

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Share StatisticsShare price (Closing on 9 May 2011) S$0.22

Market capitalization S$415.9 million

52 week high / low S$0.46 / S$0.195

P/B 0.89

Net Gearing 1.14

Number of shares 1,890,429,000

Major shareholders Yaw Chee Siew (63.38%)Lee Kok Wah (5.28%)Standard Chartered (4.30%)

OTTO MARINE LIMITED

2. Investment Merits

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Investment Merits

• Shipbuilding net order book of S$145.9m/US$115.8m (at 31 Mar 2011) – deli vered39 OSVs in the last 5 years worth US$500m

• Chartering revenue to provide steady cash flow – OSVs charter ed on medium tolong term basis

• Specialised services – ser vice and vessel provider in str ategic niche segments whichcommand higher margin (i.e. seismic, subsea vessels for well inter vention, ROV, IMR, etc),seismic backlog contracts worth US$65.8m as at 30 April 2011

• Customer base – ABCmaritime, Esnaad, Falcon Energy Group Li mited, Mosvol d Suppl y,Marine Subsea AS, Norshore Shipping, Robert Knutzen Shipholdings

• Strong engineering and experienced management team – average of 34 yearsexperience in offshore vessels building

*(US$1.00 = S$1.26)

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Investment MeritsCustomer base includes:

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Investment Merits

Front L to R: Reggie Thein (Director), Lee Kok Wah (President & Group CEO), Yaw Chee Siew (Executive Chairman) and Heng Hock Cheng @ Heng Heyok Chiang (Director)

Back L to R: William Alastair Morrison (Director), Craig Foster Pickett (Director) and Ng Chee Keong (Director)

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Investment Merits

Front L to R: See Kian Heng (CFO) and Lum Kin Wah (COO)

Back L to R: Eric Ang (General Manager ,UAE), Chua Peng Chua (Senior VP, PT Batamec) and David Lamb (CEO of Reflect)

Key Management Team:

OTTO MARINE LIMITED

3. Business Segments

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Business Segments

Shipbuilding / Ship Repair and Conv ersion• Constr uction of com plex, high-

spec & envir onment friendlyOSVs ( e.g. A HTS, PS V,offshore construction vessel)

• Repair / conv ers ion of widerange of ves sels (e. g. OSVs,ocean-going tug)

• Sophistic ated v ess els for Nort hSea oper ations that meet theABS or DNV class

• Owns 64 ha shipyard in Batam• Select ive outsourc ing to

China shipyards• Build-to-order

Ship Chartering• Two- pronged approac h –

Strategic Part ner sh ips and100% owned fleet

• Mainly deployed by c ustomersin S ingapore, Indonesia,Austr al ia, W est Africa andother S out h East Asiacountries

• Vess els ar e on m edium t o longterm tim e and bareboatcharters

SpecialisedServ ices• Serv ic e and v ess el prov ider in

strategic niche s egmentswhic h c om mand higher m ar ginsuc h as seism ic and s ubseavessels

• Seismic operator – Reflect Geophysic al

*Orient Explorer *Reflect Aries *Pacific Titan

• Subsea vessel provider, with ROV capabilities – Surf Subsea Inc

* Surf Challenger

OTTO MARINE LIMITED

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Focus on high specifications and higher value vessels

Target European / North Sea market that

require ABS or DNV class

vessels

Global customer base:

- Norshore AS- ABCMaritime

- Mosvold Supply AS

Ship designs from renowned

Norwegian design houses- Marin Teknikk

AS - Vik-Sandvik

Selective outsourcing

- Allows focus on sophisticated

vessels in Batamshipyard

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Strategically Located Shipyard

Singapore

Headquarters

� Strategic advantage due to Singapore’s position as a regional marine and offshore industry hub

− Access to marine and offshore support

− Access to expertise

− Close proximity to SEA shipbuilding hub

− Ready supply of qualified Indonesian workers

Batam, IndonesiaOwn and operate PT. Batamec - 64 hectare shipyard in Batam

� Major South-East Asian shipbuilding hub

− Access to large pool of workers in Indonesia

− Only 1 hour away from Singapore by ferry

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Shipbuilding: Complex Offshore Support Vessel

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One of the largest yards in Batam

� Land area of 64 hectares

� Waterf ront of 650 meters

� 1 dry dock

� 2 slipway s (under construction)

� Sy ncrolif t

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The Syncrolift® : Increasing Efficiency of Yard

What is it

• Large lifting system, which raises and lowers vessels in and out of the water for dry-docking ashore

What it does

• Allows construction and repair of up to 16* vessels at one time

The Advantage

• Waterfront efficiency is multiplied • Much faster than using a drydock or

traditional vessel launch

*using 10,800 bhp vessels as a benchmark

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Shipbuilding: Strong Engineering Capabilities

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Competitive Market Share

Batamec Shipyard -Ranked 8th in Asia AHT/AHTS newbuilds

Source: quoted from DnB NOR initiation report dated 1 February 2010

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Globally recognised sophisticated yard

•Efficient operational capabilities and technical expertise elevates Otto’sposition asa sophisticated shipbuilder.

Source: http://www.standard-club.com/docs/MikeMeade.pdf

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Expansion of Chartering Operations (As at 31 March 2011)

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OTTO MARINE LIMITED

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Strategic Partnerships

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OTTO MARINE LIMITED

Investor Relations Contact : Kamal Samuel | Tel: 6438 2990 | Email: [email protected] 2626

OTTO MARINE LIMITED

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Specialised Services

Offshore Service that provides better margin and enhance our performance

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OTTO MARINE LIMITED

4. Financial Highlights

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Results Summary: 1Q2011

Revenue

Gross Profit

Gross Profit Margin

Operational Expenses

PATMI

PATMI Margin

59% S$113.2m

S$16.2m

14.3%

S$15.1m

S$7.0

6.2%

65%

23%

71%

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Historical PerformanceRevenue

(SGD millions)

276.6 113.2 147.3

314.0 483.6 425.2

303.3

2006 2007 2008 2009 2010 1Q2011

1Q 2Q,3Q,4Q

PATMI

24.5 7.0 20.2 41.9 56.8 52.2 16.2

2006 2007 2008 2009 2010 1Q20111Q 2Q,3Q,4Q

(SGD millions)579.9

40.7

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Segmental Performance 1Q2011 vs. 1Q2010

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OTTO MARINE LIMITED

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Consolidated Balance Sheet

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OTTO MARINE LIMITED

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Consolidated CashflowStatement

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OTTO MARINE LIMITED

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Revenue Breakdown

Revenue (S$’mil)

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OTTO MARINE LIMITED

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Gross Profit Breakdown

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OTTO MARINE LIMITED

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Revenue and Gross Profit by Business Segments

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Shipbuilding, Ship Repair and Conversion

Revenue decreased 66.4% to S$86.5 million while gross profit decreased from S$37.7million to S$12.9 million:

•Due to less progress of work achieved with sales contract for which revenue is recognised based on

the % completion method

(SGD millions) (SGD millions)

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Revenue surged 40% to S$12.4 million and gross profit improved from S$7.3 million to

S$7.8 million:•Due to increased fleet size



Ship Chartering

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Reflect Geophysical generated S$10.5 million of Revenue and S$5.3 million Gross Loss

• Due to combination of factors: challenging rates, sub-optimal vessel utilization, costs incurred in the preparation of a vessel for work and the premature

termination of a contract

Subsea business contributed S$3.8 million in revenue and S$0.8 million in gross profit in

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OTTO MARINE LIMITED

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Net Profit & Profit Margin

Net Profit (att.to shh.) and Net Profit Margin

1Q2011 vs. 1Q2010 Net Profit & Net Profit Margin

Net Profit decreased 71.4% to S$7.0 mil & Net Profit Margin decreased from 8.9% to 6.2% due to:

• Decrease in revenue in 1Q2011 mainly in the yard operations

• Decreased profitability from the yard operations, chartering side and the geophysical segment

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OTTO MARINE LIMITED

5. Industry Outlook Growth Strategies

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Industry Outlook

� Soaring oil prices will excite O&G spending which will increase demand for OSV and PSV

8% growth previously, now expected 12% - 15%

Source: Graph A: DnBNOR initiation report dated 1 February 2010Graph B: http://www.dockwise4.com/annual2009/?id=14

CAPEX spending

Graph A Graph B

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Industry Outlook

� Otto Marine will stand to benefit from the recov ery in the industry as players mov e towards deeper water

Source: Graph A: http://www.dockwise4.com/annual2009/?id=14Graph B: http://www.epmag.com/Magazine/2010/5/item58177.php

CAPEX dev elopment (includes next to drilling activ ities, also engineering, geosciences and support serv ices)

Graph A

Graph B

Deepwater CAPEX by region

Potential demand for new builds!

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Growth Strategies

• Focus on the demand for offshore vessels f or deep water operations which is

expected to improv e gradually as the oil majors hav e increased their spending

and looking more towards deep-water drilling projects

• Ride on our strength as a premium builder to attract the top OSV operators

• Accelerate growth of chartering business to compliment cyclical nature of

shipbuilding business

• Strengthen our specialised serv ices segment by leveraging on our network of

global play ers in the deep water and subsea activ ities

OTTO MARINE LIMITED

6. Thank YouQ & A

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