Business & Financial PresentationFY 2004-05

April 29, 2005

The Great Eastern Shipping Company Ltd.

1

Forward Looking StatementsExcept for historical information, the statements made in this presentation constitute forward looking statements. These include statements regarding the intent, belief or current expectations of GE Shipping and its management regarding the Company’s operations, strategic directions, prospects and future results which in turn involve certain risks and uncertainties.

Certain factors may cause actual results to differ materially from those contained in the forward looking statements; including changes in freight rates; global economic and business conditions; effects of competition and technological developments; changes in laws and regulations;difficulties in achieving cost savings; currency, fuel price and interest rate fluctuations etc.

The Company assumes no responsibility with regard to publicly amending, modifying or revising the statements based on any subsequent developments, information or events that may occur.

2

A year of record performance

Total income of Rs. 2119 cr.up by 48%

PAT at Rs. 809 cr. up by 72%

EPS of Rs.42.34 (PY Rs.24.29)

Highest ever equity dividend payout of Rs. 194.24 crores ( includes tax)

Committed capex as on date - USD 399 mn towards 16 vessels

3

Financial ComparisonYear on Year

4

471809PAT*

492791PBT

201285Depreciation

4783Interest

7401159EBIDTA

14262119Total Income

FY 2003-04FY 2004-05

(in Rs. Cr.)

* includes prior period adjustments

Financial ComparisonQuarter on Quarter

5

185252PAT*

190217PBT

6074Depreciation

1522Interest

265313EBIDTA

479571Total Income

Q4FY 2003-04

Q4FY 2004-05

(in Rs. Cr.)

* includes prior period adjustments

Balance Sheet Comparison

6

0.610.47Net Debt Equity Ratio

1.030.95Debt Equity Ratio

125-Deferred Taxation

15342080Debt

14972189Shareholder’s Funds

Company Owed:31564269Total Assets

25523201Asset (incld. Vessels under Construction)

Company Owned:FY 2003-04FY 2004-05

(in Rs. Cr.)

Delivering through the years ..

7

50 53 6279

115139

282

846767

19.5

43.8

34.8

17.4815.96

0

50

100

150

200

250

300

2000-01 2001-02 2002-03 2003-04 2004-05

Rs.

per

sh

are

0

5

10

15

20

25

30

35

40

45

50

%

BV NAV ROE%

-8

Growing bigger … … . & stronger

FY 1999-00? Capital Employed Rs. 2112 cr.? Net worth Rs. 1107 cr.? Net Debt Equity Ratio 0.78

Cash outflows between FY 2000-01 to FY 2004-05 ? to shareholders Rs. 785 cr.? spent on Capex Rs. 3050 cr.

FY 2004-05? Capital Employed Rs. 4269 cr.? Net worth Rs. 2189 cr.? Net Debt Equity Ratio 0.47

9

Offshore Oil Field Services

10

The Market-CY 2004Demand for rigs rose :? Worldwide by around 6%? In India by around 9%

Utilisation and day rates improved? Rig utilisation by around 5%? PSV utilisation by around 4%

India, Mexico, Russia, and West African countries initiated plans for oil security

Of the 20 blocks offered under NELP V, 8 are offshore

ONGC’s success in deep-water exploration campaign “Sagar Samriddhi” 11

Global Rig Demand

442

468

430

435

440

445

450

455

460

465

470

2003 2004

Num

ber

of

R

igs

Source: RS Platou12

Charter hired Rigs in India*

19

23

25

15

17

19

21

23

25

27

2002 2003 2004

Num

ber

of

Rig

s

13* Excludes ONGC owned rigs

Rig Utilisation (On Total Supply)

79%

84%

76%77%78%79%80%81%82%83%84%85%

2003 2004

Source: RS Platou,

Day Rates, 300 ft IC Jack Up in US Gulf (USD 1000)

34

50

0

10

20

30

40

50

60

2003 2004

Rig Utilisations and day rates on the rise

14

N Sea PSV utilisation

79%

84%

76%

78%

80%

82%

84%

86%

2003 2004

Source: Seabroker

N Sea Pool PSV day rates (GBP/ day)

5018

6884

4000

5000

6000

7000

2003 2004

Increase in PSV Utilisations and day rates

15

Overview of the year - 2004-05

Enhanced the OSV fleet - deep water capability

Ordered new building – 2 AHTSVs and 2 PSVs

Increased operational presence in North Sea / Middle East with major international operators

3 yr contract for Kedarnath renewed at higher rates commencing October 2005

16

Market Outlook CY 2005

Increased pressure to explore and produce oil? World oil estimates 6% increase in offshore drilling activities

Budgetary allocations of oil companies reconsidered

? Thrust on reserve accretion

Marine construction market to absorb more vessels? Increased activities envisaged in platform maintenance and allied jobs

OSVs expected to witness improved utilisations

Earnings from Harbour Tugs business to remain satisfactory

17

Offshore Wells Drilled Globally

2963

3046

3228

2800

2850

2900

2950

3000

3050

3100

3150

3200

3250

2003 2004 2005 E

Num

ber

of w

ells

Source: World Oil18

Addressing Business Concerns

Restricted marketability of older assets

? Adapting to clients specific requirements through upgradation

? Building an OSV fleet through NB orders - 4 New Buildings to join the fleet

during the year

Increasing competition from foreign flags

? Diversifying risk by increasing operational presence in global markets

? Leveraging on domain expertise – repeat business

19

The Emerging Scenario !International Market

High oil & gas prices and reducing large opportunities resulting in increasing pressures on oil companies to explore & produce

Major increase in oil co. spending underway. In 2005, initial indications of 8-10% growth

Strength in rigs market to continue through 2005 with companies unfurling exploration plans

Domestic MarketONGC has committed USD 2 bn in 2005 for its exploration campaign

Commitment by Reliance, GSPCL, BGEPIL, Cairn towards increased activities is apparent from their budgetary allocations

20

Revenue Visibility: FY 2005-06

Revenue of Rs 292* cr. covers OPEX by 1.2 x

Drilling UnitsDry

Docking27%

Covered73%

Rs. 87 CrOffshore Support Vessels

Covered45%

Open55%

Rs.125 Cr

Harbour TugsOpen36% Covered

64%

Rs. 29 Cr Marine ConstructionOpen86% Covered

14%

Rs. 6 Cr

21

@

@Inchartered by Deep Water Services * Includes Project Income of Rs.45 Cr.

Oil fuels growth

22

High Oil Prices Depleting reserves

leading tohigher E&P activities

Shipping

23

2004-05: The year of the ship owner

BDTI was up by 26 %

Second hand values gained 35%

NB price Index up by 32 %

Drybulk

BHMI was up by 32 %

Second hand values gained 45 %

NB prices up by 32%

Container

Earnings were up by 52%

10 yr second hand values 57%

NB prices up by 26%

Tanker

24Source: Clarkson Research

Tanker earnings(Average for each year)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

FY01 FY02 FY03 FY04 FY05

US

D /

day

VLLC 1990-91 Suezmax 1990-91 Aframax 1900-91 MR Product

Source: Clarkson Research25

Record Second Hand Asset Values( for 5 year old tankers)

15

35

55

75

95

115

FY01 FY02 FY03 FY04 FY05

USD

mn.

VLCC Suezmax Aframax 45K MR Product

Source: Clarkson Research26

Record New Building Prices

20

40

60

80

100

120

140

FY01 FY02 FY03 FY04 FY05

US

D m

n.

VLCC Suezmax Aframax 47K MR Product

Source: Clarkson Research27

Average Dry bulk earnings(Handymax)

0

5,000

10,000

15,000

20,000

25,000

30,000

USD

/ day

FY01 FY02 FY03 FY04 FY05

Handymax Av Trip Earnings

Source: Clarkson Research28

Record Second Hand Values( 5 year old 45K Handymax)

10

15

20

25

30

35

40

FY01 FY02 FY03 FY04 FY05

US

D m

n

Handymax

Source: Clarkson Research29

Record New Building Handymax Prices

15

20

25

30

35

40

FY01 FY02 FY03 FY04 FY05

USD

mn

Handymax

Source: Clarkson Research30

VLCC AG_Japan WS rates Jan2002 onwards(Monthly High Lows)

0

50

100

150

200

2 50

300

3 50

400

Jan-02 Apr-02 Jul-02 Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05

31

0

5000

10000

15000

20000

25000

30000

35000

40000Ja

n-02

Feb-

02

Mar

-02

Apr

-02

May

-02

Jun-

02

Jul-0

2

Aug

-02

Sep

-02

Oct

-02

Nov

-02

Dec

-02

Jan-

03

Feb-

03

Mar

-03

Apr

-03

May

-03

Jun-

03

Jul-0

3

Aug

-03

Sep

-03

Oct

-03

Nov

-03

Dec

-03

Jan-

04

Feb-

04

Mar

-04

Apr

-04

May

-04

Jun-

04

Jul-0

4

Aug

-04

Sep

-04

Oct

-04

Nov

-04

Dec

-04

Jan-

05

Feb-

05

Mar

-05

BHMI Jan 2002 onwards(Monthly High Lows)

32

Overview of the year - 2004-05

Tonnage crossed 3 Mn dwt mark (growth of 22%)

Capex committed / spent USD 291 mn

Contracted 3 NB - MR Product tankers and acquired 3 second hand tankers

Contracted 3 modern Handymax dry bulk carriers

Enhanced inchartering exposure

Time Charters renewed at higher rates commencing FY2005-06 onwards

33

Market Outlook CY 2005

Tankers:

? Oil demand growth above 5 year averages but below last year

? 4% growth in tonne mile demand expected

? Expected deliveries - 30 mn dwt; Net fleet growth of 6 -7%

? Quantum of scrapping important

? Healthy spot rates expected

? Asset values to remain firm

34

Growth Rate in Oil demand

2.1%

2.4%

1.4%

1.1%0.8%

3.4%

2.3%

2.5%

0.7%

1.4%

2.1%

2.8%

3.5%

2000 2001 2002 2003 2004 2005E

IEA OPEC DoE35

5 year average 1.8%

Market Outlook CY 2005

Dry Bulk:? China to drive trade

? 6 % growth in tonne-mile demand expected

? Expected deliveries - 20 mn dwt; Net fleet growth of 7%

? Scrapping to remain minimal

? Healthy spot rates envisaged

? Asset values to remain firm

36

China’s share in incremental Iron ore trade

37

60

52

38

68

56

0

10

20

30

40

50

60

70

80

2003 2004 2005 E

(M T

ons.

)

China World37

Potential Risks & UpsidesTANKERS

RISKS ? Slower than anticipated growth in oil demand ? Low scrapping

UPSIDES? Disruption in supply? Harsh winter? Decline in production in consuming areas

DRY BULKRISKS ? Slowdown in steel sector particularly China

UPSIDES? China surprises yet again? Port congestion builds

38

Revenue Visibility: FY 2005-06

Revenue of Rs.705 cr covers OPEX by 1.4x

Crude TankersOpen53%

Covered47%

Rs.222 cr

Product Tankers

Covered70%

Open30% Rs. 387 cr

Drybulk CarriersOpen78%

Covered22%

Rs. 96 cr

39

Business Philosophy

Growth at the “right” price

? Lower break evens enabling sustenance through downturns with strong

upside potential

Managing risks

? Blend of Spot & Period covers

Build capacity through operating leverage

40

Timing acquisitions and ordersGES Tanker Purchases in last 5 FYs

(Basis Commitment in FY)

300

400

500

600

700

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

19% 12% 11% 31% 27%

Clarksons Second Hand Tanker Price GES Purchase Points

(2) (2)(2)

(2)

(2)(3)

(2)

41

Thank You

Visit us at:www.greatship.com

42