2011.09.09 company presentation dnb nor...

Company PresentationSEPTEMBER 2011SEPTEMBER 2011

N t f d ti di t ib ti Th i f ti t i d h i b bj t t h ith t i tiNot for reproduction or distribution. The information contained herein may be subject to change without prior notice.THIS DOCUMENT MAY NOT BE DISTRIBUTED IN, OR TO ANY PERSON RESIDENT IN THE U.S., CANADA, AUSTRALIA OR JAPAN OR TO ANY AMERICAN CITIZEN EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT. ANY FAILURE TO COMPLY WITH THESE RESTRICTIONS MAY CONSTITUTE A VIOLATION OF APPLICABLE SECURITIES LEGISLATION

Agenda

Section1. Company Highlights

2 Market Developments2. Market Developments

- Chemical tanker market recovery

- Implementation of Indonesian cabotage

(domestic monopoly)

3. Financials

4. IPO of Buana

5. Recent Financing Initiatives

BLT History and Milestones

Evolution from domestic tanker business to a leading international player

1981 * Established with 2 tankers on charter to Pertamina(Indonesian state‐owned oil company)

1986 * Entered into chemical transportation

1989 * Entered into gas transportation

1990 * Listed on Jakarta and Surabaya Stock Exchanges

BLT’s shareholding as at 30 June 2011

y g

1996 * Acquired Asean Maritiem Corp, incl. its subsidiaryGoldbridge Shipping Corp., which owned 7 chemicaltankers, to accelerate growth in North Asia

2001 * Expanded business into the Middle East and India

2004 * Opened an office in GlasgowPublic Treasury

Stock 3 57%Directors, 0.02

% p g

2005 * Openned an office in Dubai* Issued US$50mil Convertible Bond* Expanded business into Europe

2006 * Primary Listing on SGX‐ST, first company to bedual listed in Indonesia and Singapore

* Entered into FPSO/FSO sector

PT Tunggaladhi

SGX, 11.91%Stock, 3.57% %

* Entered into FPSO/FSO sector

2007 * Openned an office in Mumbai* Issued USD125m second CB and USD400m first high yield bond

* Acquisition of Chembulk Tankers LLC

2008 Openned an office in Sao Paolo ‐ Brazil

Baskara, 38.0%

Public IDX, 46.55%

2009 * USD57m Rights Issue, first dual exchange offerings* Entered into offshore support vessel market

2010 * Issued USD125mil CB* USD135mil Rights Issue in SGX‐ST & IDX* Start of Indonesian Cabotage implementation

IDX, 46.55%

33

Note: PT Tunggaladhi Baskara is owned 99.99% by PT Bagusnusa Samudera Gemilang which is owned by Mr. Hadi Surya 82.03%. Meadowstream Limited is a wholly owned subsidiary of PT Tunggaladhi Baskara.

g p* FPSO Brotojoyo & FSO Pradapa delivered end 2010

2011 * New US$685mil facility refinances all internationalloans & fund newbuilding

* IPO of Buana ‐ US$120mil offering

Strategic Objective

Revenue contract coverage

Consistent Cash Flow Growth

G thDiversified

business mix

Growth through

the cycles

44

PT Berlian Laju Tanker Tbk (BLT) - Overview

Leading worldwide seaborne liquid bulk cargo transportation specialistand one of the largest chemical tanker operators in the world

102 tankers*2.4 million DWT

Average age 7.5 years

Chemical tankers Oil tankers FPSO/FSO tankersGas tankers

67 operational l /1 b ildi

13 vessels 2 vessels17 operational l /3 b ildivessels/1 newbuilding

Cargo: Organics, in-organics and edible oils1,272,506 DWT

Cargo: crude oil and refined petroleum products929,723 DWTAverage age 15 9

Location: Pangerunganoil exploration field, Straits of BaliProduction capacity: Brotojoyo: 15,000 bpd

vessels/3 newbuildingsCargo: liquefied gases (LPG, propylene, propane, ethylene)451,169CBM (273,705

Average age 6.4 yearsAverage age 15.9 years (60,874 DWT),

Pradapa : 10,000 bpd (36,362 DWT)

(DWT)Average age 7.4 years

*Incl. 4 newbuildingsAverage ages include newbuildings

5

Large & Growing Modern Chemical Fleet of BLT

Owned Built DWT Type(1) Owned Built DWT Type(1) Bareboat Chartered Built DWT Type(1)MT Bauhinia 1997 5,851 IMO II/III SUS MT CB Virgin Gorda 2004 32,000 IMO II/III SUS MT Pramoni (2)

2008 19,990 IMO II/III SUSMT Celosia 1997 7,477 IMO II/III SUS MT CB Hong Kong 2003 32,000 IMO II/III SUS MT Puspawati (2)

2008 19,900 IMO II/III SUSMT Cendanawati 1997 3,159 IMO II/III SUS MT CB Savannah 2002 25,000 IMO II/III SUS MT Purwati (2)

2007 19,900 IMO II/III SUSMT E t 1994 4 990 IMO II/III SUS MT CB N Y k 2002 27 000 IMO II/III SUS MT Pertiwi(3)

2006 19 970 IMO II/III SUS

Chemical Tankers

MT Eustoma 1994 4,990 IMO II/III SUS MT CB New York 2002 27,000 IMO II/III SUS MT Pertiwi( )2006 19,970 IMO II/III SUS

MT Fatmawati 2004 8,575 IMO II/III SUS MT CB Yokohama 2003 19,500 IMO II/III SUS MT Prita Dewi(3)2006 19,998 IMO II/III SUS

MT Freesia 2003 8,521 IMO II/III SUS MT CB Kobe 2002 19,500 IMO II/III SUS MT Pujawati(3)2006 19,900 IMO II/III SUS

MT Iris 2011 12,500 IMO II/III SUS MT CB Gibraltar 2001 19,500 IMO II/III SUS MT Gagarmayang (2)2004 40,354 IMO II/III

MT Harsanadi 2005 14,271 IMO II/III SUS MT CB Shanghai 2000 19,500 IMO II/III SUS MT Purbasari (2)2008 19,900 IMO II/III SUS

MT Hartati 2004 14 312 IMO II/III SUS MT CB Ulsan 2004 19 500 IMO II/III SUS MT Pitaloka(8)2010 19 990 IMO II/III SUSMT Hartati 2004 14,312 IMO II/III SUS MT CB Ulsan 2004 19,500 IMO II/III SUS MT Pitaloka 2010 19,990 IMO II/III SUS

MT Hyacinth 2009 12,500 IMO II/III SUS MT CB Barcelona 2004 32,300 IMO II/III SUS MT Pramesti 2009 19,900 IMO II/III SUSMT Indradi 1993 13,944 IMO II/III SUS MT CB Houston 2003 16,400 IMO II/III SUS MT Wilutama (8)

2011 25,400 IMO II/III SUSMT Larasati 1991 3,665 IMO II/III SUS MT CB New Orleans 2003 32,000 IMO II/III SUS MT Partawati(8) 2011 19,900 IMO II/III SUSMT Mustokoweni 1991 3,199 IMO II/III SUS MT Anggraini 1995 31,225 IMO III MT Gerbera 2004 8,738 IMO II/III SUSMT Nogogini 1996 11,639 IMO II/III SUS MT Anjasmoro 1996 32,696 IMO III MT Fatmarini 2004 8,578 IMO II/III SUSMT Nolowati 1998 11,636 IMO II/III SUS MT Jembawati 1999 6,685 IMO III MT Frabandari 2004 8,575 IMO II/III SUSMT Rasawulan 1996 10,332 IMO II/III SUS MT Kunti 1992 3,984 IMO IIIMT Ratih 1996 10,329 IMO II/III SUS MT Dragonaria 1998 6,555 IMO II/III Time Chartered Built DWT Type(1)

MT Rengganis 1993 3,667 IMO II/III SUS MT Erowati 1999 6,688 IMO II/III MT CB Lindy Alice(4) 2008 32,000 IMO II/III SUSMT Setyawati 1994 3,189 IMO II/III SUS MT Ulupi 1999 6,690 IMO II/III MT CB Minneapolis(4) 2007 32,000 IMO II/III SUS

(4)

Note :1) "SUS" refers cargo tanks made of stainless steel2) 12 years bareboat charters

MT Tirtasari 1997 5,878 IMO II/III SUS MT Yanaseni 1992 9,202 IMO II/III MT CB Westport(4) 2006 32,000 IMO II/III SUSMT Wulansari 1992 11,055 IMO II/III SUS MT Widawati 2011 25,400 IMO II/III MT CB Kings Point(4)

2008 19,500 IMO II/III SUSMT CB Singapore(4)

2007 19,500 IMO II/III SUS

MT CB Tortola(4) 2007 19,500 IMO II/III SUSMT CB Jakarta (4)

2009 19,500 IMO II/III SUS

MT Golden Ambrosia(6) 2008 13 000 IMO II/III

66

2) 12 years bareboat charters3) 12 years bareboat charter4) 10 years time charter5) 6 years time charter6) 5 years time charter7) 3 years time charter8) 5 years bareboat charter

MT Golden Ambrosia( ) 2008 13,000 IMO II/IIIMT Bestari(5) 2003 6,689 IMO II/III SUSMT Royal Flos(7) 2008 19,600 IMO II/III

Oil and Gas Fleet of BLT and Newbuilding Projects

Owned Built DWT Type Hull(1) Owned Built CBM Owned Built DWT/CBM TypeMT Tridonawati 1991 154,970 Crude Oil DH MT Gas Indonesia 1990 3,518 MT TBN 1 2012 3,500 Gas Tanker MT Trirasa 1991 154,970 Crude Oil DH MT Gas Jawa 1989 3,596 MT TBN 2 2012 3,500 Gas Tanker MT D i 1999 3 561 Oil P d t DH MT G K li t 1996 3 500 MT G K i 2012 5 000 G T k

Oil Tankers Gas Tankers New Vessels Under Construction

MT Dewayani 1999 3,561 Oil Product DH MT Gas Kalimantan 1996 3,500 MT Gas Karimun 2012 5,000 Gas Tanker MT Dewi Sri 1999 3,557 Oil Product DH MT Gas Lombok 2008 9,000 MT Gandini 1998 32,042 Oil Product DH MT Gas Maluku 1996 5,000 MT Anjani 1985 36,882 Oil Product DS MT Gas Papua 2007 5,000 MT Badraini 1991 111 777 Crude Oil DB MT Gas Sulawesi 2006 5 000 MT Badraini 1991 111,777 Crude Oil DB MT Gas Sulawesi 2006 5,000 MT Barunawati 1992 111,689 Crude Oil DB MT Gas Bali 2007 5,000 MT Barawati 1990 101,134 Crude Oil SH MT Gas Sumatera 1989 3,512 MT Bramani 1990 96,672 Crude Oil SH MT Gas Sumbawa 2008 9,000 MT Pergiwo 1993 37,087 Crude Oil SH MT Gas Natuna 2008 3,500 MT Ontari 1993 18,520 Oil Product SH MT Tangguh Hiri (3) 2008 155,000

MT Tangguh Sago (3) 2009 155,000MT Gas Komodo 2010 78,543MT Gas Madura 2010 3,500

MT Gandari(2) 1999 30 500 Oil P d t DH MT G B k 2010 3 500

Bareboat Chartered Built DWT Type Hull(1)

MT Gandari( ) 1999 30,500 Oil Product DH MT Gas Bangka 2010 3,500MT Gas Batam 2011 5,000

FPSO TankerOwned Built CBM

77

Note :1) DH=Double hull, DS = Double Side, DB = Double Bottom, SH = Single Hull2) Ownership trough a 10 years bareboat charter3) BLT hold 30% stake

Owned Built CBMFPSO Brotojoyo 1980 60,874 FSO Pradapa 1993 36,362

Key Company HighlightsKey Company Highlights

Large, modern fleet

Young and modern chemical tanker vessels

Fleet age profile

Attractive opportunities

Over 3 years Demand up ~ 25% while Supply -1%A play on improved GDP and industrial production growth

Strong chemical

Almost all vessels made of stainless steel with IMO II/III classifications

Deserves higher EV/EBITDA multiple as current EBITDA le el can be maintained for

gIncreased ton-mile demand as more Middle-Eastern production comes on-streamIncreased demand for biofuels and vegetable oils

market outlook

Indonesian Domestic regulation – Cabotage principle

New opportunities from Pertamina

Strong market position Solid financial performance

level can be maintained for prolonged period without need for reinvestment Stolt-Nielsen

Fleet average ages include newbuildings

market opportunity

New opportunities from Pertamina

Well positioned to capitalize on strong domestic market

EBITDA

Strong market position- large, modern fleet- scale important competitive

advantage- quality and long term relationshipsBarriers to entry

4th largest chemical tanker company

Operator# of vessels DWT

EBITDA

Consistent EBITDA growthEBITDA

4054

129155

172

311

236 236

50

100

150

200

250

300

350

US$ Mil

y- large capital requirement- high value and technically sensitive

cargoes prohibit unproven entrants- complex operations, organizational

expertise- LT customer relationships- regulatory and customer

requirements

Stolt-Nielsen 118 2,875,000

Odfjell 99 2,538,000

Eitzen Chemical 84 1,665,000

BLT 72 1,201,000

Strategy to maintain a diversified mix of oil, chemical and gas and also across geographies

54

129155

172

311

236 236

100

150

200

250

300

350

EBITDA

US$ Mil

0

50

2003 2004 2005 2006 2007 2008 2009 2010

8

qExposure in high growth areas- Intra Asia and ME chemical trade:

Indonesia is the world’s largest palm oil producer in the world

- ME chemical production capacity continue to increase

Tokyo Marine 67 1,415,000

EBITDA excludes profits from associates and JV’s

4054

0

50

2003 2004 2005 2006 2007 2008 2009 2010

Key Customers and Operating Areas

Shanghai

Beijing SeoulTokyo

Hong KongTaiwan

Middle East

North Africa

Glasgow

Dubai

Westport,CT

Rotterdam

Myanmar

JakartaSingapore

BangkokHong Kong

Mumbai

Australia

North Af rica

Sao Paulo

HeadquarterRepresentative Office / Operation Center

Chembulk Trading Coverage

BLT Trading Coverage

Recently opened marketing offices in Glasgow (2004) and Dubai (2005) to support BLT’s westward fleet operations and Shanghai (2005) to support BLT’s North Asian business and Mumbai (2007) to support South Asian business and Sao Paulo, Brazil (2008) to support BLT’s South America businesssupport BLT s South America business.

9

Strong Operational Performance Relative to PeersStrong Operational Performance Relative to Peers

EBITDA marginRevenue growth

60.00%

80.00%

100.00%

50.00%

60.00%

‐20.00%

0.00%

20.00%

40.00%

2010200920082007200620052004200310.00%

20.00%

30.00%

40.00%

EBITDA / t t l tAssets

‐60.00%

‐40.00%

Odfjell Stolt BLT

0.00%

20102009200820072006200520042003

Odfjell Stolt BLT

EBITDA / total assetsAssets

14.00%

16.00%

18.00%

3000

3500

4000

4.00%

6.00%

8.00%

10.00%

12.00%

Acquisition of Chembulk

Tankerscompleted in500

1000

1500

2000

2500

10Source: Bloomberg

0.00%

2.00%

2010*2009200820072006200520042003

Odfjell Stolt BLT

Tankerscompleted in late Dec 2007

0

500

20102009200820072006200520042003

Odfjell Stolt BLT

Consistent Growth Through the CyclesConsistent Growth Through the Cycles

EBITDA

320350 Global economic

i i

258

188

236236250

300crisis

129

155

188

100

150

200

US$ M

il Asian economic

crisisRecession

9/11 aftermath

5 7 8 14 16 16 16 24 32 39 38 44 37 4054

0

50

100 after Gulf War

Compounded annual growth rate of EBITDA in excess of 21% p.a., and always growing every

0

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

11

Note: 1990 to 1998 based on Indonesia GAAP in rupiah, 1999 to 2002 based on Indonesia GAAP in US$, 2003 to 2008 based on IFRS in US$

11

p g p , y g g yyear with only exception in 2002 and 2009

Agenda





(domestic monopoly)

3. Financials

4. IPO of Buana


Expected Chemical Market Demand Recovery

The chemical tanker market is highly correlated with global GDP growth

4

5

6

200

250

Correlation between GDP growth and chemical index

with global GDP growth

Further, chemicals are early cyclical and the demand for chemicals and plastics has outpaced GDP over the last two decades ‐1

0

1

2

3

50

100

150

GDP y/y %

Chem

.Ind

ex

Chemical tanker demand is typically 2x world GDP growth

Middle East is expected to increasingly export basic chemicals for processing in

‐20

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Chem.Index. 1990=100 Global GDP, y/y change %Note: From 1 Jan 2008, Chem Index has been replaced with ECHEM Index. Chem Index is not representative for chemicaltanker market in this period because it neglects the fact that most vessels sailed without cargo on back haul trades.p g

the west (increased ton-mile)

However, Far East represents the main source of demand growth for processed chemicals, i.e.

250

300

350

Asian crisis

U.S. recession

Chemicals demand growth vs GDP growth

p ocessed c e ca s, eton-mile should increase for this reason as well

100

150

200

1985 1988 1991 1994 1997 2000 2003 2006 2009e 2012e

Global recession

Global GDP index Basic Chemicals & Plastics Index

13

Reduced Supply Growth Tightens Market

No orders for stainless steel newbuildings have been placed since 2Q2008 except for Odfjell’s recent order

For next 2-3 years there will be very few new ships coming into the fleet

Scrapping has accelerated to historically high levels due to strict oil major requirements

Average scrapping age has dropped from 31 to 25

As long as USD1 is equal to around JPY80-85, Japan cannot build any more stainless steel chemical tankers

Japan produces around 90% of stainless steel chemical tanker newbuildings

Around 11-12% of the fleet will be 25 years of age by 2013

B l h f d i i l ll i d h JPY d h d

2007 2008 2009 2010 2011 2012 2013Fleet 12,758,659 13,601,236 14,197,481 14,528,187 15,003,313 14,884,315 14,392,035 Orderbook 111 700 987 206 393 082 19 800

Below has not factored in potential cancellations due to the very strong JPY and the severe damage at Kitanihon Shipbuilding which has around 30% of all the newbuildings on order

Orderbook 111,700 987,206 393,082 19,800 Deliveries 700,079 1,099,827 1,123,045 906,020 ‐ Scrapping 4,052 257,250 526,800 687,014 512,080 512,080 512,080 Average Scrapping Age 26 31 28 26 25 25 25 Net Fleet Growth 696,027 842,577 596,245 330,706 475,126 (118,998) (492,280) Supply Growth 5.8% 6.6% 4.4% 2.3% 3.3% ‐0.8% ‐3.3%

2007 2008 2009 2010 2011 2012 2013Economic Growth 3.9% 1.7% ‐1.9% 4.8% 4.2% 4.6% 4.6%Demand 5.9% 2.6% ‐2.9% 7.2% 6.3% 6.9% 6.9%Supply 5.8% 6.6% 4.4% 2.3% 3.3% ‐0.8% ‐3.3%Net tightness (Looseness) 0 1% 4 1% 7 2% 4 9% 3 0% 7 7% 10 2%Net tightness (Looseness) 0.1% ‐4.1% ‐7.2% 4.9% 3.0% 7.7% 10.2%

14

Chemical Tanker Rate Developments

H t R tt dG lf F E t/I di /M d

1.30

1.40

1.50

1.60

Houston-Rotterdam

1.60

1.80

2.00

Gulf-Far East/India/Med

0.90

1.00

1.10

1.20

1.00

1.20

1.40

0.80

Houston-Rotterdam 3,000mt Easychems Houston-Rott 5,000 MT Easychems

Houston-Rott 2,000 MT S/S

0.80

Gulf-Far East 15K Chemical Rates Gulf-Med 15K Chemical Rates

Gulf-WC India 5,000mt EasyChems Gulf-WC India 10,000mt EasyChems

Chemical Tanker Rates:

… are much more stable than oil product tanker rates, especially for stainless steel chemical tankers.

have always gone up when there is economic growth even 1.30 1.40 1.50 1.60

380 CST Bunker Prices

… have always gone up when there is economic growth, even when analysts predict a decline.

… have gone up on average around 20-30%

Most of the increase has been balanced by the nearly 50% increase in bunker prices

0.80 0.90 1.00 1.10 1.20

15

0 80

Houston Singapore Fujairah

Forces driving bunker prices appear to have stabilized while forces driving chemical tanker rates (supply and demand) continue to strengthen

Agenda





(domestic monopoly)

3. Financials

4. IPO of Buana


Large Indonesian Domestic MarketLarge Indonesian Domestic Market

Key country data - Indonesia

Population- 240 million, 1.1% growth p.a.- Fourth largest population,

behind China India and US

GDP (2009)- $512b (19th largest globally)- $2,239 per capita vs. $3,259

in China and $8 118 inbehind China, India and US

Language- Bahasa Indonesia (Malay),

English, Dutch, local dialects

Surface area1 904 500 km2

in China and $8,118 in neighboring Malaysia

Major industries- Petroleum and natural gas- Textiles and apparel- Mining (coal, tin, copper, gold)

Agriculture (palm oil rubber

Political situation Economic indicators (Selected Asian Countries)

- 1,904,500 km2

- 17,508 islands, of which 6,000 inhabited

- Agriculture (palm oil, rubber, rice, tea, coffee, spices)

- Pulp and paper

Source: CIA World Factbook, IMF.

Since the resignation of President Suharto in 1998, Indonesia has undertaken major political and economic reforms and there have been four peaceful transitions of presidential power

Susilo Bambang Yudhoyono became the first directly elected president in July 2004 and was re-elected as president for another five years in July 2009

Real GDP (% change) Inflation (% change)

2008 2009E 2010E 2008 2009E 2010E

Bangladesh 6.0 5.4 5.4 7.7 5.3 5.6

China 9.0 8.5 9.0 5.9 -0,1 0.6

five years in July 2009

Political focus on implementing measures to improve infrastructure, legal reforms and investment climate

Successful anti-corruption efforts have been made by the current administration

Minimally affected by 2008 2009 crisis unlike peers such as

India 7.3 5.4 6.4 8.3 8.7 8.4

Indonesia 6.1 4.5 6.0 9.8 4.9 6.2

Malaysia 4.6 -3.6 2.5 5.4 -0.1 1.2

17

Minimally affected by 2008 – 2009 crisis, unlike peers such as

Singapore or Hong Kong who experienced significant contractions

Strong near-term economic growth prospects; positive sentiments reflected in the capital markets

Philippines 3.8 1.0 3.2 9.3 2.8 4.0

Thailand 2.6 -3.5 3.7 5.5 -1.2 2.1

Source: IMF World Economic Outlook (Oct 2009). GDP growth based on constant prices, UBS

CabotageCabotage OpportunitiesOpportunities

CabotageCabotage implementation presents a compelling opportunityimplementation presents a compelling opportunity

Shipping of cargo between one Indonesian port and th

• Vessels must be Indonesian flagged

Areas covered Key requirements

another

Oil and gas tankers

FPSO/ FSO/ Floating structures

Dry cargo ships

Container

• Must be owned by Indonesian shipping company• Must be >51% Indonesian ownership and Nominees

not recognized need for “real” partners• Must be 100% Indonesian crew• Must remain in Indonesian flag and same owner for

Implementation of Cabotage in Indonesia

Container

Offshore oil and gas related unit

All imports using state budget

Must remain in Indonesian flag and same owner for at least 5 years

• Must get Indonesian flagged financing

Implementation of Cabotage in Indonesia

Category of goods shipped Effective date Buana’s operation –segment and vessels

i Goods using containers Nov 18, 2005ii General cargo without using containers Nov 18, 2005iii W d d i d t t f tili d i N 18 2005

Cabotage presents a fantastic opportunity for domestic shipping players in Indonesia

iii Wood and primary products, cement, fertiliser and rice Nov 18, 2005

iv Crude palm oil, mining and quarrying products, other grains, vegetables, fruitsand fresh fish Jan 1, 2008

v Liquid cargo and chemicals and agricultural grains Jan 1, 2009 Chemical tankers (2)

vi Oil and natural gas Jan 1, 2010 Oil tankers (9) and gas tankers (8)

18

ta e s (8)

vii Coal - as of the date of expiration of existing contracts and latest by thespecified date Jan 1, 2010

viii Support of upstream and downstream oil and natural gas activities May 7, 2011 FPSO (1) and FSO (1)

CabotageCabotage DevelopmentDevelopment

KMK 1305/KMK/00/1988 – importation of ships is subject to zero import duties

Cabotage Strengthening through Time

UU No. 21 Tahun 1992 – Shipping Law – groundbreaking rules on the birth of Cabotage

KMK Nomor 416/KMK.04/1996 – tax for national shipping companies at 1.2% of revenues and 2.64% for foreign flags

PP 82/1999 & KM 33 tahun 2001– foreign flagged ships operating for 6 months in Indonesia must have at least half of their crew as Indonesians

PP 38/2003 – importation of ships is subject to zero value added tax, must be kept by same owner at least 5 years otherwise subject to 10% VAT and the penalty for short payment

Instruksi presiden No. 5 Tahun 2005 / KM No. 71 Tahun 2005 – Cabotage implementation

KM 19/2006 – import using the national budget must use Indo flagged vessel

UU 17 year 2008 – Shipping RegulationUU 17 year 2008 Shipping Regulation

PP No. 22/2011 and Transportation Minister Decree No. 48/2011 – All shipping sectors including FPSO-FSO are still part of Cabotage. 6 types of vessels may temporarily use foreign flags but ONLY if there are no Indonesian flagged ships available. If there are Indonesian flagged ships, then even ships of these 6 types cannot use foreign flags.ships of these 6 types cannot use foreign flags.

19

CabotageCabotage DevelopmentDevelopment

Successful implementation of Cabotage since 2005Favourable freight rate environment

Cabotage has created favourable market for domestic shipowners

Favourable freight rate environment

Buana’s average freight rates1 38-60% premium for domestic rates

TCE revenue per day (Rp mm) Avg. 1 year time-charter rates in US$ per day (as of 4Q2010)

Aframax Crude Handysize Product ChemicalOil T k FPSOs/ FSOs

73

TankeryTanker Tanker

Premium:38%

Premium:38%

Premium:60%

Oil Tanker FPSOs/ FSOs

281

414

Growth: 46%

Growth: 48%

15 050

20,800 9,450

6 850

8,500

50281 15,050 6,850

5,300

Cabotage principle for Oil & Gas sector implemented

Global Indo-flagged

Global Indo-flagged

Global Indo-flagged

2009 20092010 2010

20

1 Excluding gas tankers as they came into fleet after the implementation of cabotage; excluding chemical tankers as their contribution to overall business is low; 2

Derived from data provided by Drewry by taking the mid point of the freight rate range

Cabotage principle for Oil & Gas sector implemented in Jan 2010 and for FPSO/FSO in May 2011

Source: Drewry

Domestic Market DevelopmentDomestic Market Development

Indonesia’s oil and coal consumption expected to continue growing

Indonesian Coal Demand(million ton)

Indonesia Oil and Oil Products Imports(thousand barrels per day)

Growth 2005 –09 = 80.9% Growth 2005 –15E = 214%

120

140

(million ton)

600

700

(thousand barrels per day)

80

100

400

500

600

40

60

200

300

400

0

20

40

0

100

200

21

Source: CIA World Factbook 2009 Source: Ministry of Energy and Mineral Resources of Indonesia

02005 2006 2007 2008 2009 2010 2015

02005 2006 2007 2008 2009

1


Indonesia’s gas consumption is amongst the lowest in the region and is expected to grow with government policy

In 2008 the government changed their policy to focus on increasing the use of gas domestically

Convert 10 million kiloliters in kerosene consumption to 4 million tons of LPG consumption which saves USD2-3 billion in subsidies

Build 3 major LNG receiving terminals which need 7-8 million tons of LNG annually

Now planning to build up to additional 8 mini LNG receiving terminals in eastern Indonesia which cansave a further USD400 mio annually

6 78.3

11.0

ASEAN LPG consumption per capita among countries–2008 (in kg)

1.1 1.4 1.5

5.16.7

Indonesia Vietnam Philippines Brunei Malaysia Thailand Singapore

22


Charterer/ operator Ship name Built Age Type

Camar Resources Maera Ayu 1975 36 FSO

JOB Pertamina - Petrochina East Java Cinta Natomas 1972 39 FSO FPSOs/ FSOs in Indonesia

Significant untapped potential and implementation of Cabotage havecreated a favourable environment for Indonesian-flagged FPSOs and FSOs

Indonesian flagged

JOB Pertamina Petrochina East Java Cinta Natomas 1972 39 FSO

Kondur Petroleum Ladinda 1975 36 FSO

Kangean Energy Brotojoyo 1980 (1) 31 FPSO

Tirtajaya Pradapa 1993 (2) 18 FSOPT Medco E&P Indonesia Raisis 1980 31 FSO

Medco MV Langsa Venture 1974 37 FSO

PT Medco E&P Indonesia Laksmiati 1974 37 FSO

FPSOs/ FSOs in Indonesia

Foreign flagged64%(14)

Other27%PT Medco E&P Indonesia Laksmiati 1974 37 FSO

ConocoPhillips Indonesia Intan 1968 43 FSO

ConocoPhillips Indonesia LPG Gas Concord 1976 35 FSO

ConocoPhillips Indonesia Belanak Natuna 2004 7 FPSO

Kodeco Energy Company Madura Jaya 1980 31 FSO

Petrochina Int. Jabung LPG Petrostar 1979 32 FSO

(14)Indonesian

flagged36%(8)

%(6)

Foreign flagged

Petrochina Int. Jabung LPG Petrostar 1979 32 FSO

Petrochina Int. Jabung FSO Federal I 1982 29 FSO

Premier Oil Natuna Sea Anoa Natuna 1989 22 FPSO

Santos (Sampang) Pty. Ltd. FPSO Seagood 101 1997 14 FPSO

Santos (Sampang) Pty. Ltd. MT Shanghai 1982 29 FSO

Star Energy (Kakap) Kakap Natuna 1985 26 FSO

TAC Pertamina (PAN) Niria 1983 28 FSO

Buana owned9%

Th tl 22 FPSO / FSO i I d i

( )

BP Indonesia Arco Arjunaa 1971 40 FSO

CNOOC Southeast Sumatra CNOOC-114 Tanker 1984 27 FSO

CNOOC Southeast Sumatra Widuri Tanker 1974 37 FSO

(2)

Total FPSOs/ FSOs = 22Total Indonesianflagged FPSOs/

FSOs = 8

23Source: Drewry1 Converted in 2006 and upgraded in 2010; 2 Converted in 2010

There are currently 22 FPSOs/ FSOs in IndonesiaMany vessels are over 25 years old (average age: 31 years)Approx. 14 existing FPSOs/ FSOs are foreign-flagged and need to be replaced in 2011

CabotageCabotage advantageadvantage

Sample Cabotage Project IRR

• In January 2010 BLT signed a contract with Pertamina for the provision of a VLGC (80 000 cbm

• In May 2010 BLT signed a contract with Kangean Energy Indonesia for the provision of an FPSO (7 000Pertamina for the provision of a VLGC (80,000 cbm

gas tanker)• Contract period : up to 7 years• Contract value: ~ USDm 90 • Cash flow of nearly USD10 mio annually• Net income of nearly USD6 mio annually• Project IRR of 49%

Energy Indonesia for the provision of an FPSO (7,000 BPD/61,000 DWT Floating Production, Storage and Offloading unit)

• Contract period : up to 4 years• Contract value: ~ USDm 81 • Cash flow of over USD31 mio in the first year• Net income of nearly USD26 mio in the first year• Project IRR of 49%

• Deleveraging effect as project net debt to equity ratio falls from day 1 level of 2.3x to 1.0x in 12 months and 0.3x in 24 months

• Net income of nearly USD26 mio in the first year• Average cash flow of nearly USD15 mio• Average net income of over USD9 mio• Project IRR of 95%• Deleveraging effect as project net debt to equity ratio

falls from day 1 level of 2.3x to become net cash in l th 12 th

• Contract rates awarded in Indonesia are on average less than 12 monthsapproximately 40% higher than international market

rates

24

Agenda





(domestic monopoly)

3. Financials

4. IPO of Buana


Segmental AnalysisSegmental Analysis

10

12

14

16

100

120

140

160 CHEMICAL GAS

2

4

6

8

20

40

60

80

100

0

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

Revenue EBITDA

0

20

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

Revenue EBITDA

5

6

7

8

9

20

30

40 OIL FPSO/FSO

0

1

2

3

4

5

‐10

0

10

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

‐2

‐1

0

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

Revenue EBITDA

‐30

‐20

Revenue EBITDA

26

BLT – P&L

(in US Dollar '000) - IFRSINCOME STATEMENT 30-Jun-11 31-Mar-11 31-Dec-10

TOTAL REVENUE 323,111 159,824 656,854 Voyage Costs (120,822) (58,453) (221,201) TCE REVENUE 202,289 101,371 435,653Operating Costs (82,193) (42,334) (195,617) Depreciation (66,768) (33,610) (145,583) TOTAL COST OF REVENUE (148,961) (75,944) (341,200)GROSS PROFIT 53,328 25,427 94,453General & Admin Expense (13,862) (7,398) (33,176) OPERATING PROFIT (LOSS) 39,466 18,029 61,277

Net Interest Expense (75,469) (37,262) (129,653) Other Income (Expense) 60,729 32,774 (80,566)

TOTAL OTHER INCOME (EXPENSE) (14,740) (4,488) (210,219)INCOME TAX (804) (440) (1,185) NET INCOME (LOSS) 23,922 13,101 (150,127)

EBITDA 117,764 57,821 236,163EBITDA Margin 36% 36% 36%

2727

Note :Displayed financials are based on IFRS accounting standards.

gOperating Margin 12% 11% 9%

BLT – Balance sheet

(in US Dollar '000) - IFRS

BALANCE SHEET 30-Jun-11 31-Dec-10 31-Dec-09

ASSETS

Cash and Equivalents 197,883 164,248 163,630

Other Current Assets 256,453 219,640 174,521

Fixed Assets 2,430,450 2,346,239 1,991,975

Other Assets 150,206 140,558 191,889

Total Assets 3,034,992 2,870,685 2,522,015Total Assets 3,034,992 2,870,685 2,522,015

LIABILITIES & EQUITY

Other Current Liabilities 147,267 146,576 101,430

Total Debt 2 013 153 1 923 095 1 748 235Total Debt 2,013,153 1,923,095 1,748,235

Other Liabilities 87,062 82,805 23,591

Shareholders Equity 961,200 804,837 735,387

Treasury Shares (86,628) (86,628) (86,628)

Total Equity 874,572 718,209 648,759

Total Liabilities and Equity 3,122,054 2,870,685 2,522,015

Net Debt 1,815,270 1,758,847 1,584,605

2828

Note :Displayed financials are based on IFRS accounting standards.

Net Debt/Equity Ratio 2.08 2.45 2.44

Agenda





(domestic monopoly)

3. Financials

4. IPO of Buana


BuanaBuana Fleet OverviewFleet Overview

15 owned vessels + 6 leased vessels1

• Approx. 90% of revenues from contracts• Non-compete Agreement with BLT• BLT Global focus, Buana Domestic focus• BLT focuses on Chemical

Tankers, Buana focuses on Energy 15 owned vessels 6 leased vessels633,869 DWT

Oil tankers Gas tankers FPSO/ FSO Chemical tankers

, gysectors

2 owned vessels

97,236 DWT

FSO: converted in 2010

8 owned and 1 leased vessel

441,232 DWT

4 owned and 4 leased vessels

85,539 DWT / 105,882

1 owned and 1 leased vessel

9,862 DWTFSO: converted in 2010

FPSO: converted in 2006 and further upgraded in 2010

% time charter contracted by DWT2: 100%

Average age of 17.6 yrs


CBM




30

by DWT2: 100%

Note: 1 as of Feb 28, 20112 % time charter contracted by DWT calculated as sum of DWT of vessels currently on time charter divided by the sum of DWT of all the vessels for each segment3 Avg. contract length by DWT is a weighted average of the maximum length of contract (including options) for the vessels on time charter for each segment with DWT being the weight . This average does not take into account DWT of vessels under spot contracts or COAs

Buana’sBuana’s Market PositionMarket Position

Market leader in the Indonesian energy shipping market

FPSO

Leading player in the highest value sectors Leading market share

M k t h b d t tMarket share by product segments

Buana Others

C d il & d t t k 1 2 G t k 3

Owns the only Indonesian-flagged FPSO

VLGC

Crude oil & product tankers1,2 Gas tankers3

24%36%

One of the only three VLGC owners in

76% 64%

36%

Has the largest and highest quality crew pool in

Larger quality crew pool

Indonesia

Source: Drewry; Only includes Indonesian flagged vessels1 Excludes Pertamina Shipping’s tonnage2 Market share based on capacity by dwt3 Market share based on capacity by cbm4 Excludes dry bulk carriers, general cargo floating cranes, tugs and barges

31

Has the largest and highest quality crew pool in Indonesia with approx. 1,800 people

Buana benefits from our market leadership, large Indonesian-flagged fleet size and the scale of our crew

Diversified and flexible fleetDiversified and flexible fleet

Diversified fleet mix Fleet flexibility

Oil GasFPSO/FSO Chemical

Owns several oil tankers which can be

Current fleet mix1

FPSO/FSO ChemicalOil

Gas

Li it d l ti

Tanker FPSO/FSO

FPSO/ FSO

Chemical10%

converted to FPSOs or FSOsOwns the only Indonesian-flagged FPSOPreferred access to Jiangsu Xinrong shipyard, an affiliate of BLT with FPSO conversion capability

FPSO/ FSO

Limited correlation across segments

Oil42%

Gas38%

FPSO/ FSO10%

Successfully completed 3 vessel conversions

ChemicalTotal number of vessels: 212

38%

% by number of vessels

Superior risk management capabilityAble to capitalize on opportunities in multiple segmentsFleet flexibility provides competitive advantage in terms of timing, certainty of delivery and potentially costA big opportunity as 14 existing FPSOs/ FSOs in Indonesia are expected to be replaced in 2011

32

1 Based on the number of vessels as of Jan 31, 20112 Includes 6 vessels chartered-in from BLT in Jan 2011

Buana’sBuana’s Financial StrengthFinancial Strength

Scale and financial strength to fund growth

Total debt1 / Book capital2 (x) Total debt1 / EBITDA (x)

0.4x3 9x

As at Dec 31, 2010 As at Dec 31, 2010

0.2x

3.9x

1.5x

Buana Pro-forma

Strong relationships with multiple financial institutions

3 4 Buana Pro-forma3 4

Strong capacity to fund investments for future growth

33

1 Total debt = LT debt + ST debt + Debt owed to related parties2 Book capital = Total debt + Equity³ Current data as of Dec 31, 20104 Pro-forma for repayment of debt owed to related parties post-IPO; Assumes IPO occurred at Dec 31, 2010


Impact of implementation of cabotage

New contracts already obtained, bringing contract coverage of revenues to d 90%

Buana Performance will jump in 2011 due to:

around 90%

Utilization to increase from 83% to around 95% (for example, in 2010 the FPSO Brotojoyo was being upgraded between Jun-Dec )

FPSO Brotojoyo alone will contribute over USD30 mio in additional cash flow and profit in 2011 due to the start of the

new contract under cabotage

The aframaxes which had been earning cash flows around USD4,000/day on spot is now

earning over USD14,000/day on timechartersresulting in cash flow and profits over 3.5x higher

Projected 2011 financialsProjected 2011 financials

(USD mio) Bank A Bank B Bank C Bank D AverageRevenue 113.2 136.4 134.3 133.7 129.4 EBITDA 75.7 79.5 80.4 87.1 80.7

34

Net Income 39.5 30.2 26.5 43.6 35.0

R (IDR bi ) *


Revenue (IDR bio) *Shipping markets weakened from 2008 into 2009

Buana did not enjoy any benefit from cabotage before 2010

Utilization increased gradually into 2010 and 2011

Freight rates rose by as much as 100% into 2011

1028.8

1000

1200

1400

Freight rates rose by as much as 100% into 2011

In 2010 the FPSO Brotojoyo obtained a new contract in May and thus was put into dock for upgrading for 7 months

With delivery of the FPSO Brotojoyo on 28 Dec 2010, Buana’s largest will be fully operational in 2011 at a rate 567

400

600

800

N I (IDR bi ) *

Buana s largest will be fully operational in 2011 at a rate which is nearly 4x higher than before

On an annualized rate, EBITDA and net income will be 2.4x and 42.5x the 2010 numbers

288.1 247.7

567

257.2

0

200

2008 2009 2010 2011

Full Year Results 1Q Results

EBITDA (IDR bio) * Net Income (IDR bio) *

671.2700

800

900

340.8

300

400

500

200

300

400

500

600

37.6 8.2 85.2

100

0

100

200

2008 2009 2010 2011

35

18893.4

276167.8

0

100

2008 2009 2010 2011Full Year Results 1Q Results

‐214.2

‐300

‐200

‐100

Full Year Results 1Q Results


0.67 0 620.60

0.70

0.80

Net Debt/Equity Buana’s balance sheet has very low leverage, even including the shareholder loan

0.46

0.62

0.30

0.40

0.50 With the recent IPO of USD120 mio, Buana’s balance sheet has become even stronger

0.21

-

0.10

0.20

2008 2009 2010 1Q2011

even stronger

On pro forma basis, Buana’s position after the IPO has become net cash

5.06 5.00

6.00 Net Debt/EBITDAGiven its balance sheet

strength, Buana can take on USD400-450 mio of new projects and still keep net

3.84

1 53

2.00

3.00

4.00 p j pdebt/equity to below 1.5x and net debt/EBITDA to below 3.0x

36

0.91 1.53

-

1.00

2008 2009 2010 1Q2011

Comparative ValuationComparative Valuation

EV/EBITDA PER/Ent. Value Mkt Cap 2011 2012 2011 2012(USD bio) (USD bio) (x) (x) (x) (x)

Qatar Gas Transport Co. Ltd. 9.2 2.8 12.4 12.3 12.0 10.9

kTeekay Corporation 8.3 2.5 10.3 9.5

Frontline Limited 4.7 1.9 11.9 10.5

Teekay LNG Partners LP 4.3 2.2 15.2 14.2 18.0 17.6

Ship Finance International 3.4 1.6 15.2 13.1 10.1 10.5

Essar Shipping 2.6 1.2 7.9 5.4 21.1

Teekay Offshore 3.3 1.5 8.0 7.5 17.5 18.4 y

Golar LNG 2.4 1.2 12.1 10.0 14.1 10.9

China Merchants Energy 2.8 2.3 10.4 9.6 17.1 15.8

N i l Shi i C f S A bi 2 1 1 3 10 7 9 0 8 8 6 3National Shipping Co of S. Arabia 2.1 1.3 10.7 9.0 8.8 6.3

BLTA 2.1 0.5 7.7 6.8 19.9 8.0

Great Eastern Shipping 1.2 0.9 5.8 5.6 6.2 6.0

37

Nordic American Tanker 1.2 1.2 15.6 10.8

Average Shipping 3.7 1.6 11.0 9.6 14.5 11.6

BULL‐Buana 0.3 0.3 3.8 2.5 8..6 5.6

Agenda





(domestic monopoly)

3. Financials

4. IPO of Buana


Strengthen Balance Sheet/Liquidity

Even in early 2009 when funding was scarce, BLT obtained additional New Bank Debt US$263m 1H 2009

Successful Fund Raising in 2009 – 2011

funding from international and domestic banks

Realized additional equity through sale and leasebacks

New Bank Debt US$263m 1H 2009 US$102m Mar-09US$80m Sep-10

Local Bond Issue US$49m May-09

Sale and Leaseback

Retained the support of the capital markets as evidenced by the international and domestic bond issuances as well as equity issues

US$57m Aug-09US$135m Jul-10

International Convertible Bond

US$125m Mar-10

Rights Issue

Multiplicity of funding sources assures BLT of access to funding whenever required

Every newbuilding that has been

IssuesCB Resale US$ 48.8m Dec-10

US$685m Mar-11New Financing FacilityEvery newbuilding that has been

delivered has been obtained financing

Funding terms continue to improve significantly

Sale and Leaseback

US$93.5m Apr-11

IPO Buana US$120mil May-11

39

TOTAL US$1,758.3

Strengthen Balance Sheet/LiquidityStrengthen Balance Sheet/Liquidity

Initial Public Offering of BuanaTotal Proceeds USD120mil, total market value approx USD310milListing Date 23 May 2011

USD 685 Refinancing FacilitiesFlatten the repayment profile to reflect the young age of the fleetAlign the repayment profile with expected market developmentsStrengthen EBITDA/debt service ratioIncrease debt service ratio flexibilityIncrease debt service ratio flexibility

Cancellation of 5 Stainless Steel Chemical TankersReduce Capex commitment by around USD185mil

Sale and Lease Back of 4 Stainless Steel Chemical TankersFurther Increase cash flow and liquidity and Improves credit profile

40

2011.09.09 company presentation dnb nor...

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