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Ezion Holdings Limited
2
Disclaimer
Certain statements in this presentation may constitute forward looking statements. Forward looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical
facts. The words “believe,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar
expressions identify forward looking statements.
Forward looking statements also include statements about our future growth prospects. Forward looking statements, involve a number of risks, and
uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these
statements include, but are not limited to, risks and uncertainties regarding our earnings, our ability to lease out our vessels, our ability to implement our
strategy, dependence on credit facilities and new equity from capital markets to execute our strategy, insufficient insurance to cover losses from inherent
operational risks in the industry, dependence on key personnel, our short operating and financial history, possibility of pirate or terrorist attacks, competition
in the industry, political instability where our vessels are flagged or operate, cyclicality of the industry and fluctuations in vessel values. For further
information, please see the documents and reports that we file with the Singapore Exchange.
You are advised not to place undue reliance on these forward looking statements, which are based on the Company’s current views concerning future
events. Unless legally required, the Company undertakes no obligation to update publicly any forward looking statements, whether as a result of new
information, future events or otherwise.
This presentation may include market and industry data and forecasts. You are advised that there can be no assurance as to the accuracy or completeness
of such included information. While the Company has taken reasonable steps to ensure that the information is extracted accurately and in its proper context,
the Company has not independently verified any of the data or ascertained the underlying assumptions relied upon therein
This presentation does not constitute or form any part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or
subscribe for, any shares or other securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in
connection with, any contract therefor.
Business Overview
4
Ezion Holdings Limited
Owns & charters offshore logistics vessels, providing marine logistics & support services
Developer & owner of some of the largest liftboats in the world
A$350m contract with Chevron for the Gorgon Project over next 4 years
Liftboat segment on fast track growth, driven by Asia Pacific/Middle East/ Africa demand
Significant growth opportunities from offshore development for oil & gas & wind
Potential long term recurring income from marine supply bases in strategic locations in Australia
5
Stock Information
• Ezion upgraded to the SGX Main Board with effect from 13th May 2010
• No. of Shares Outstanding: 713,408,000
• No. of Shareholders: Approximately 4,000
• Market Capitalisation: Approximately S$ 460 million as at 12th July 2010
• Average Daily Volume YTD: 7.8m Shares
• Key Shareholders:
Substantial Shareholders % of shares held
Management 24.82%
Ezra Holdings Limited 14.02%
Legg Mason Inc. 9.12%
6
Business Divisions
Ezion
Offshore logistics support
servicesLiftboats
• Fleet of 21 vessels
• 9 ballastable vessels
• 6 barges
• 6 tugs
• 8 Newbuilds
• Gorgon Project
• Tugs and barges
• 5 Liftboats
• Levingston design
• Bareboat charters
• Strong demand for
current fleet
• Enhanced design for
offshore windfarm
• Owning and Operations
of Marine Supply Bases
in Key Strategic
Locations in Australia
Marine Services
• Procurement
Services
• Maintenance and
repair of strategic
offshore vessels
Marine Supply Bases
Chartering and Offshore
Support Services
Division
Marine Services
Division
7
Our Directors
Lim Thean Ee
Chew Thiam Keng
Tan Woon Hum
Lee Kian Soo
Captain Larry Glenn Johnson
Dr Wang Kai Yuen
“Having focus is more than identifying what
we want to achieve, but also knowing
how to achieve it. At Ezion, our focus is
clear, but our means of reaching that
aim is even clearer.”
*Left to right
8
Over 31 years of
experience in
offshore maritime
industry, Captain
Johnson worked
with ExxonMobil
Development
Corporation,
Chevron, Aker
Kvaerner, Conoco
Phillips, Batelle Corp
Over 15 years of
experience in
auditing and
commercial
accounting. Mr
Cheah was the
finance manager of
KS Energy
Services Limited for
about 3 years
Over 37 years in
marine transportation
companies, Mr
Sanders worked at
America Cargo
Transport Corp &
Jore Group for 19
years and was
responsible for all
forward logistics on
Sakhalin Island over
a period of 7 years
for ExxonMobil
Over 15 years of
experience in the
sales and operations
of vessels and lifting
equipments, Mr Poh
was the Marketing
Manager of Tiong
Woon Marine Pte Ltd
and Tat Hong
Holdings Group
Over 35 years in the
offshore maritime
industry, having
worked for
ExxonMobil
Development for 8
years, overseeing
marine towing
operations, module
loadouts and
offloads and
installations of
Gravity Base
Structures
Over 20 years of
experience in strategic
planning, corporate
management and
business development
with public companies.
Engineer by training
and worked more than
nine years for the
Development Bank of
Singapore.
Prior to joining the
Group, Mr Chew was
the Managing Director/
CEO of KS Energy
Services Limited for
about 5 years
Our Management
Mr Chew Thiam Keng Captain Larry
Glenn JohnsonMr Cheah Boon Pin
Mr Joe Sanders Mr David Poh Mr Gary Nelson
McFadden
CEO & Executive
Director
Chief Financial
Officer
CEO of Teras
Cargo Transport
Chief Commercial
Officer
Director of
Operations
COO & Executive
Director
Director, Group
Biz Dev & Ops
Mr Peter Lee
Holds a Master
Mariner Class 1
certification with 13
years in merchant
navy and 20 years
ashore in management
roles in offshore
industry specializing in
turnkey major
transportation &
installation projects for
customers like
ExxonMobil, Chevron,
BP, ConocoPhillips.
VP of International
Salvage Union up till
2009
Liftboats
10
Ezion Liftboats – The Fleet
Ezion
Offshore logistics
support services
Liftboats
Liftboats 1-4
• Levingston signed a 5-year agreement in 2008 to design, supply,
construct, deliver and warranty liftboats exclusively for Ezion in the Asia
Pacific and Middle East
Key Functions
• Oil well intervention activities e.g. wireline and coiled tubing
• Repairs of Offshore Platforms
• Upgrading of Offshore Platforms
• Maintenance of Offshore Platforms
• Operational Support of Offshore Platforms
• Temporary housing for Construction & Service Crews
Ezion develops, owns and charters Liftboats of the largest and most sophisticated class in the world and was
one of the first to introduce Liftboats to Asia & the Middle East
11
Ezion’s Liftboats – Stable, Efficient
Provides a stable, mobile work platform for offshore services
Self-propelled – No need for mobilization cost for rig
Low cost alternative for a wide array of offshore jobs -
construction, work-over, drilling, well intervention
Replaces high cost derrick barges
More efficient and safer compared to workboats and barges
Allows operational support for platforms even during harsh
weather conditions
Ability to operate in up to 220ft of water depth
12
Ezion Liftboats – Growth Potential in EU Wind Farm Market
1.1 1.52.2
3.54.7
6.0
7.7
9.7
12.0
14.8
18.2
22.0
28.2
35.0
0
5
10
15
20
25
30
35
40
2007
2008
2009
E
2010
E
2011
E
2012
E
2013
E
2014
E
2015
E
2016
E
2017
E
2018
E
2019
E
2020
E
To
tal
insta
lled
off
sh
ore
win
d c
ap
acit
y (
GW
)
0
200
400
600
800
1000
1200
1400
1600
1800
No
. of tu
rbin
es in
sta
lled
per a
nn
um
Source: EWEA
Europe leads the sector – In 2008, 357 MW of offshore
capacity was installed (vs global total to 1,471 MW) – all in
European waters
EWEA has set a target for 35 GW of installed offshore wind
capacity in Europe in 2020
Industry estimates additional 12 liftboats needed for offshore
wind turbine maintenance by 2015
Offshore wind energy development is a fast-evolving industry with increasing investment and political support
Opportunity for Ezion
Wind farms moving into deeper waters and areas with
more tidal variance
Increasing size of offshore wind farms and installed
turbines/ foundations
Greater demand for sophisticated vessels to install and
maintain offshore wind turbines
Self-propelled vessels with jack-up design favoured over
more conventional ships or barges
Exponential growth in
Offshore Wind Farm
Development
13
Ezion Liftboats – Robust Demand
Fixed Offshore Platform Installations
5846
66
65
66
7996
8895
74
0
50
100
150
200
250
300
350
2003 2004 2005 2006 2007 2008 2009E 2010E 2011E 2012E
Africa Australia Europe Latin America
Middle East North America Asia
Robust Demand for Liftboats in SEA and Middle East
Source: Company
RegionNumber of
Liftboats
Number of
Platforms
Ratio of Platforms
per Liftboat
North America 240 3,257 14
S.E Asia
Middle East
West Africa
54 3,266 60
Source: Kennedy Marr Ltd ,Infield Systems Ltd
Region Number of Liftboats required for offshore wind
turbines maintenance by 2015
Europe Approximately 12
Source: First Securities
14
Ezion Liftboats – Equity for Future Liftboats Secured
Liftboat Status
Terra Conquest 1 Working in Africa for Exxon Mobil
Terra Conquest 2 Sale expected to complete in late 3Q 2010
Terra Conquest 3 Delivery 3Q 2010
Terra Conquest 4 Delivery 4Q 2010
Terra Conquest 5 Delivery 4Q 2011
Partial Divestment of 1st unit of Liftboat :
Sale of 51% shares of Teras Conquest 1 Pte Ltd for US$ 14.79 million to a
private equity fund
Completed in 2Q 2010
Sale of 2nd unit of Liftboat:
Sale price of US$ 78 million to a Middle Eastern Client
Excess of proceeds of approximately US$ 14.4 million
Expected to complete in late 3Q 2010
The partial divestment of the 1st Liftboat and the sale and leaseback of the 2nd Liftboat will enable Ezion to
free up its capital to build additional and more sophisticated units of Liftboats going forward
Offshore Logistics Support Services
16
Ezion – Offshore Logistics Support Fleet
EzionOffshore logistics
support services
LiftboatsRanges from flat-bottomed, un-propelled scows to
sophisticated ship-form hopper bargesCargo Barges
Deck Barges
Hopper Barges
Tank Barges
Work Barges
Barges
Tugs
Flat deck barges to carry containers, gravel, and
construction equipment on deck
Designed to carry dry bulk cargoes such as grains, coal,
ore or packaged goods in holds similar to a ship
Liquids transportation – petroleum and chemical
products
Spud barges, modular barges, jack-up barges,
accommodation barges and anchor barges
Shallow water support vessels – Chartered for offshore support services in SE Asia
Ba
lla
sta
ble
an
d n
on
-ba
lla
sta
ble
17
Ezion – Key Services
Transportation of offshore platforms, jackets,
piles and bridges
Logistics support for commissioning and
decommissioning offshore oil & gas platforms
Logistics support for pipe-laying operations
Maintenance of offshore oil and gas
platforms, subsea pipelines
Transportation of top-sides for FPSOs and
FSOs
Engineering and management support for
conversion of vessels
18
OMSA
Offshore Marine Services Alliance Pty Ltd (“OMSA”) secured a A$350 million contract with Chevron for the Gorgon Project in May 2009
JV will time charter a fleet of marine logistics vessels to Chevron for 3.5 years
Contract is for Phase I of the development of Gorgon
Gorgon contains resources of c. 40 trillion cubic feet of gas, located on the NW coast of Western Australia
Ezion will earn profits from:
Chartering of the vessels to OMSA, to be delivered by 2010
Equity income earned by OMSA from the contract with Chevron
As an incumbent contractor, OMSA has a strong competitive advantage for future work from future phases of Gorgon.
Crew
Management
Time Charter of
Vessels
Bareboat Charter
of VesselsBareboat Charter
of Vessels
Chevron – Gorgon
Project
OMSA
(JV)
Pacific Basin
ShippingEzion
Skilled Group
Limited
19
Gorgon Project
Source: Chevron
LocationBarrow Island, Western
Australia
Start-up est 2016
Capex US$37.6bn
Total Capacity 15 (5 per train)
Estimated reserves in Gorgon – total 46.2 trn cu ft
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Gorgon Jansz Lo Chrysaor West
Tryal
Geryon Chandon Orthus Urania
Reserv
es (
bn c
ubic
ft)Timeline Development plan
2007 Oct Environmental approval for Gorgon Development Project, concluding 4 years
of State and Federal assessment
2009 Aug Final government approval granted for Gorgon Development Project
2009 Sep Final Investment decision announced by Chevron, ExxonMobil and Shell with
total estimated project cost at US$42bn
2009 Sep Production licenses awarded
2010Installation of gas processing facilities, compressors, subsea equipments,
flowlines and trees
2011 Q3 Initial drilling and completion campaign to commence and will last 12-18
months
2014 Production of gas output
Australia Marine Supply Bases
Marine Supply
Base
21
Marine Supply Bases: Logistics Hubs
A marine supply base is an integrated one-stop logistics:
Hard stand area for storage of equipment / supplies
Covered warehouses for storage of weather sensitive equipment / supplies
Office space and accommodation rental
Equipment rental
Wash down facilities
Supply of fuel and fresh water
Supply of labor and stevedores
Ship agency services
Custom bonded area
Ship-chandling services
Workshop for repair / maintenance services
Sea front land and deep water with wharf facility for unloading of cargo directly from vessels
22
Location of existing Marine Supply Bases in North Western Australia
23
Existing Marine Supply Bases in Australia
North Western Australia
2 main facilities in Dampier
Potential overloading of facilities
Potential longer waiting time to use facilities
Potential limited expansion space
Potential increasing charges / costs
Exmouth is closer to the offshore oil & gas fields as compared to South West Australia (Perth,
Fremantle)
Shortage of marine supply base facilities in North Western Australia:
24
Ezion – MOA Secured in North Western Australia
North Western Australia
(Exmouth)
Size Tenure
15 hectares with option up to 25 hectares Up to 30 years
Marine Supply
Base
25
Exmouth – Ezion’s marine supply base in North Western Australia in addition to
existing supply bases in Dampier
26
Layout of Exmouth Marine Supply Base
Marine Supply
Base
27
Competitive Advantages of Exmouth Marine Supply Base
Proximity to Oil and Gas Projects in Australia Northwest Shelf
Good water depth of 6m
Natural shelter, protected from impact of Cyclones
Infrastructure in place : Major Road, Water, Fuel, Telecommunications
28
Planned Services for Marine Supply Bases
Facilities & Equipment
Hardstand Laydown area
Covered Warehouse
Covered Workshops
Cranes and Forklifts
Load out Facilities
Fuel Storage / Offloading Facilities
Office & Accommodation Space
Berths / Wharfs with fuel, water and electricity
Services
Engineering & Maintenance Services
Quarantine & Wash down Services
Logistics Support
Stevedoring Personnel
Training Facility
Growth Drivers
30
Global E&P Spending
E&P Capex – Upstream Capex Expected to Rise 12% in 2010
Upstream Capex vs Oil Demand
Source: McDermott, ODS
0
100
200
300
400
2006 2007 2008 2009E 2010E
US
$bn
-30%
-20%
-10%
0%
10%
20%
30%
Africa Middle East Europe Latin America
Asia Pacif ic North America Worldw ide % change
Upstream capex to increase by 12% worldwide
to $323 billion in 2010
Offshore exploration expenditure accounts for
45% of all expenditure at some US$110 billion
Capex in Asia & Middle East accounting for
around 25% of total offshore expenditure
Asian capex remained robust in 2009 and
expected to grow in 2010
Demand for differentiated and deepwater assets
remains strong
31
Income
Stream from
Marine
Supply
Bases
Opportunities
from Major
Developments
such as
Gorgon
Robust
Demand
for
Liftboats
Ezion – En Route for Growth
Ageing
Offshore
Platforms
High growth
supported by
recurring income
with progressive
deployment of key
assets
Aging platforms
provide strong
demand for Ezion’s
products & services
First mover
advantage in Asia,
future potential in
huge European wind
farm developments
Gorgon Project
offers multi-year
opportunity, and is
one of several major
developments which
offer opportunities
Strategic location of
operation in areas of
strong demand for
Ezion’s marine supply
bases services
Deployment
of Key
Assets in
2010
Summary of Key Financials
33
13,505
31,074
14,641
13,505
31,074
73,613
14,641
25,543
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
FY 2007 FY 2008 FY 2009 1Q FY 2009 1Q FY 2010
130%
137%
74%
Key Financials – Revenue (S$’000)
34
4,018
8,038
4,018
8,038
17,122
3,302
7,697
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
FY 2007 FY 2008 FY 2009 1Q FY2009 1Q FY2010
113%
Key Financials – Net Profit (S$’000)
100% 133%
35
Key Financials – Balance Sheet
(S$ mil) 31 Mar 10 31 Dec 09 Change (%)
Fixed Asset 300.2 260.1 +15
Cash & cash equivalents 42.3 40.3 +5
Current assets 107.2 94.9 +13
Total assets 420.1 365.3 +15
Borrowings 185.1 155.7 +19
Current liabilities 84.6 61.6 +37
Non-current liabilities 150.1 125.6 +20
Interests of shareholders 185.3 177.6 +5
Net Gearing (times) 0.77 0.65
Current Ratio (times) 1.27 1.54
36
Company History
Ezion key milestones
20 Mar 2007 Ezion enters the Offshore Marine Logistics and Support Services sector
2 July 2007 US$131.4 million LOI for the charter of 2 units of multi-purpose self-propelled jack-up rigs for 3+1 years
23 Oct 2007 JV with Ezra
20 Nov 2007
18 Feb 2008
US$173.3 million LOI for the charter of 2 units of multi-purpose self-propelled jack-up rigs for 3+2 years
Exclusive contract with Levingston for the design, supply, construction, delivery and warranty of Liftboats
12 May 2009 Gorgon contract A$350 million
26 Feb 2010 Partial Divestment Of First Unit Of Liftboat
27 April 2010 Disposal Of 2nd Liftboat And Construction Of Additional Liftboat
13 July 2010Entry Into A Memorandum Of Agreement To Secure Land Lease At A Strategic Location In Australia For The
Development Of A Marine Supply Base To Support The Offshore Oil And Gas Industry
