K LINE OFFSHORE AS PRESENTATION K LINE OFFSHORE AS PRESENTATION Joint Offshore Business Development: What are the Implications? Maritime Offshore Technology Seminar Tokyo, 2 nd November 2012 Tomoyuki Okawa Chief Executive Officer
K Line Group Fleet Total Number of Vessels under K Line Group: 559 Energy Offshore Offshore Support Vessel (7 Vessels) Container Vessels (80 Vessels) Pure Car Carrier (97 Vessels) Drill Ship (1 Vessel) Heavy Lifter (16 Vessels) Bulk Carrier Others (236 Vessels) (52 Vessels) Crude/Product/ LNG FPSO CNG Carrier LPG Tanker (4 Vessels on Order) ) (Under Development) ) (27 Vessels) LNG Tanker (43 Vessels)
ABOUT K LINE OFFSHORE Founded in October 2007 Owned 95% by Kawasaki Kisen Kaisha, Ltd and 5 % by ADS Offshore AS Ship owning and operating company of Offshore Support Vessels Head Office located in Arendal, Norway
BUSINESS DEVELOPMENT : SUCCESSFUL RAPID GROWTH Oct. 2007 Together with Norwegian partner OSM, the Company founded and ordered high end 2 AHTSs and 4 PSVs from Aker Yards (now called STX OSV) Oct. 2008 Start t operation by chartering mid-size i PSV KL Arendalfjord d Jun. 2010 Petrobras(PB) award contracts for two PSVs KL Arendalfjord and KL Brevikfjord under 4+4 years time charter contract Sep. 2010 KL Brevikfjord (#1 PSV) delivered and started PB contract Jan. 2011 ConocoPhillips UK(COPUK) award contracts for two PSVs under 2+1 years contract Jan. 2011 KL Sandefjord (#1 AHTS) delivered and started trading in spot market, while KL Brisfjord (#2 PSV) delivered and started COPUK contract Apr. 2011 KL Saltfjord(#2 AHTS) and Brofjord (#3 PSV) delivered and started trading in spot market Jun. 2011 KL Barentsfjord (#4 PSV) delivered and started COPUK contract Jan. 2012 Statoil award KL Brofjord for 5 months contract starting Jun. 2012 Apr. 2012 Statoil award KL Sandefjord for 4+4 months contract starting Jun. 2012
FLEET & CONTRACT COVERAGE 6 out of 7 vessels in term contracts verifies KOAS s reliable services 2012 2013 2014 Type Vessel Name 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q PSV KL Arendalfjord Petrobras (4yrs+Opt) Option PSV KL Brevikfjord Petrobras (4yrs+Opt) Option PSV KL Brisfjord CoP UK (2yrs + Opt) Option PSV KL Brofjord BP/Statoil/Ross Statoil PSV KL Barentsfjord CoP UK (2yrs + Opt) p) Option AHTS KL Sandefjord Spot Statoil AHTS KL Saltfjord Spot Term (>= 30 days contract) Optional Period Spot (< 30 days contract) OpenPosition
PSV 4 World s Largest Size PSVs 1 Most Popular Mid-Size PSV STX PSV 06 CD 5,100dwt / 1,100m2 Cargo Deck Area Fuel Efficiency UT755L 3,300dwt / 680m2 Cargo Deck Area
AHTS 2 World s Most Capable Bollard Pull AHTSs STX AH12 CD 390/397 tons Bollard Pull ROV, Winch capacity 600 tons, Large chain locker, Fuel efficiency Rig Move Operation Anchor Handling Operation
ROV Excellent cooperation with IKM Subsea installing their advanced ROV services Added value to KOAS s High-End AHTSs creating additional solutions to provide to KOAS clients ROV (Merlin WR200) Launching ROV
STRATEGIC ALLIANCE BETWEEN K LINE AND OSM/ADS K LINE Strength Enormous track record in conventional shipping Commercial and technical expertise and asset in conventional shipping Strong capital background Global industrial network OSM/ADS Enormous track record in technical management Technical expertise in conventional and offshore shipping services Access to world leading North Sea offshore market and industry Weakness Volatile conventional Limitation in funding shipping market leading to volatile financial position Limitation in global industrial network Difficulty to differentiate from competitors in conventional shipping industry
BEFORE K LINE OFFSHORE START K Line OSM/ADS Offshore Business Hardware C i l Software Commercial Technical Capital Capability
STRATEGIC ALLIANCE : STRUCTURE 95% Vessel Owning & Commercial Management Technical Management 5% Combination of sophisticated High-End hardware (vessels) and 1st class software (commercial and technical management) based on cultural mix Superior reliable offshore support vessel services
IMPLICATIONS : KEY SUCCESS FACTORS High End Hardware 1st Class Software Compliance with clients demand Create additional value to clients Excellent Coordination among Partners
TUSEN TAKK!! DOMO ARIGATO!! THANK YOU VERY MUCH!!