PT Petrosea Tbk

Public Expose
19 June 2008
 Your Kind Attention Please

• This presentation will last for approximately 30 minutes, and will

be followed by Q&A session for 30 minutes
• We will not distribute hard copy of this presentation, it can be
accessed at Petrosea’s website: www.petrosea.com
• Please refrain from using cellular phones during the presentation
• During the Q&A session, each person can only ask a maximum
of two questions

PT Petrosea Tbk – Public Expose – 19 June 2008 2

 Contents
• Overview
• Financial Results
• Current Operations
• Health, Safety, Environment and Quality Assurance
• Outlook and Summary

PT Petrosea Tbk – Public Expose – 19 June 2008 3

 Overview

“Petrosea shall be an Indonesian mining house

which, with its partners, will provide a complete
mining solution from feasibility study, engineering,
construction contract mining and mine services
construction,
(“from Pit to Port - PTP”) delivering enhanced
margin
g and return on assets through g integrated
g
capability.”

PT Petrosea Tbk – Public Expose – 19 June 2008 4

 Overview
Major Shareholders

Murray & Roberts Holdings Limited

• 55.97%* shareholder of Clough Limited (ASX: CLO)

Clough Limited
• 80.37%** shareholder of PT Petrosea Tbk (IDX: PTRO)

PT Petrosea Tbk
• 50%* shareholder
h h ld off PT S Santan
t BBatubara
t b
• 47%* shareholder of PT Tirta Kencana Cahaya Mandiri

*As of 31 May 2008

**As of 3 June 2008

PT Petrosea Tbk – Public Expose – 19 June 2008 5

 Overview
History in Indonesia
• 1972 - Incorporated in Jakarta, Indonesia as PT Petrosea International
Indonesia
• 1984 - Acquired by Clough Limited
• 1990 - Listed on the Jakarta and Surabaya Stock Exchange (now
g )
Indonesia Stock Exchange)
• The first publicly listed Indonesian engineering and construction
company
• The name was changed to PT Petrosea Tbk

…36 years continuous experience in operating in Indonesia

PT Petrosea Tbk – Public Expose – 19 June 2008 6

 Overview
Current Business Operations
Engineering and Petrosea PT Tirta
Mining Construction
Contract Mining
Offshore PT Santan Kencana
Minerals
Mi l & IInfrastructure
f t t
Mine Services Offshore Marine Construction Supply Batubara Cahaya
Mine Partnering Oil and Gas Asset Support Base Mandiri
Engineering

Business Lines Partnering

• Goal - To grow and double our business by 2010 and achieve satisfactory return on equity
• Average annual turnover over the last 5 years1 - US$108.1 million
• Total number of employees2 - 2,095
2 095 people
• Turnover per Business Operations3:
• Mining - 60% of Total Turnover
• E i
Engineering
i and
dCConstruction
i - 25%
2 % off T
Totall T
Turnover
• Services (incl Petrosea Offshore Supply Base, PT Tirta Kencana Cahaya Mandiri) -
15% of Total Turnover
1Based on Annual Turnover for the Years Ended 31 December 2003 - 2007
2As of 31 May 2008
3Based on Annual Turnover for the Years Ended 31 December 2007

PT Petrosea Tbk – Public Expose – 19 June 2008 7

 Overview
O
Operations
ti Map
M

PT Petrosea Tbk – Public Expose – 19 June 2008 8

 Overview
Key Clients - Past and Present
• Mining - Coal, Gold, Nickel, Granite, Tin
• Freeport • KPC
• Newmont • Inco
• Indominco Mandiri (Banpu) • Gunungbayan Pratama Coal
• BHP Billiton Indonesia • Ilthabi Bara Utama
• Kelian
K li Equatorial
E t i l Mining
Mi i • Indo
I d Muro
M K
Kencana
• Sanga Coal Indonesia (Noble Group) • Cibaliung Sumber Daya (Austindo Resources)

• Oil and
d Gas
G

• BP • ConocoPhillips
• Chevron • Total Indonesie
• ExxonMobil • Santos
• ENI Bukat • Star Energy
• Kodeco Energy • Premier Oil
• Halliburton • MISwaco

PT Petrosea Tbk – Public Expose – 19 June 2008 9

 Contents
• Overview
• Financial Results
• Current Operations
• Health, Safety, Environment and Quality Assurance
• Outlook and Summary

PT Petrosea Tbk – Public Expose – 19 June 2008 10

 Financial Results*
(in Thousand US$, unless otherwise stated ) 2007 2006
Operating Revenue 125,962 105,724
Operating Income 12,622 8,106
Net Income 7,097 6,438
Earning per Share (US$) 0 0704
0.0704 0 0638
0.0638
Dividend per Share (US$) 0.0297 0.0149
Cash and Cash Equivalents 21,582 14,327
Working Capital 37,607 42,105
Capital Expenditure 25,684 16,581
Total Assets 148,638 119,993
Debt (Finance Leases) 24,226 14,354
q y
Total Equity 76,411
, 74,874
,
Operating Income / Operating Revenue (%) 10.02% 7.67%
Net Income / Operating Revenue (%) 5.64% 6.09%
Net Income / Total Assets (%) 4.78% 5.37%
Net Income / Total Equity (%) 9.29% 8.60%
Debt to Equity Ratio (Ratio) 0.32 0.19
Dividend Payout (%) 42.19% 23.36%
Current Ratio ((Ratio)) 1.71 2.27
*For the Years Ended 31 December

PT Petrosea Tbk – Public Expose – 19 June 2008 11

 Financial Results*
Strong Operating Performance
132.94 125.96 • Operating Revenue × by 19.15% to US$125.96 million
105.72
• Significant
g g
growth of E&C Revenue - Pakar coal
development, Bontang coal terminal expansion
stage 1
2005 2006 2007 • Strong growth of Services Revenue – Petrosea
Op e r a t i n g R e v e n u e
( U S $ M i l l i on)
Offshore Supply Base (POSB)
• Stable Mining Revenue – GBP coal mining, Sanga-
125.96
2006
105.72
Sanga coal mining
2007
75.55
74.62

31.59 18.43
16.81 14.06

E&C Mining Services Total

Operating Revenue
(US$ Million)

*For the Years Ended 31 December

PT Petrosea Tbk – Public Expose – 19 June 2008 12

 Financial Results*
Strong Operating Performance
6.44
7.10 • Net Income × by 10.24% to US$7.10 million
4.57
• Significant
g g
growth of Mining
g Net Income – Sanga-
g
Sanga coal mining
• Strong growth of Services Net Income – Petrosea
2005 2006 2007 Offshore Supply Base
N e t I nc o m e
( U S $ M i l l i on)

459

• Work in Hand × by
b 139
139.06%
06% to US$459 million as a res
result
lt
239
192
of Pakar coal mining contracts secured at the end of 2007
• Pakar coal contract mining - US$145 million
• Pakar coal hauling, processing and port handling
2005 2006 2007
Wo r k I n H a n d
services - US$197 million
( U S $ M i l l i on)

*For the Years Ended 31 December

PT Petrosea Tbk – Public Expose – 19 June 2008 13

 Financial Results*
Strong Balance Sheet Position
Cash
• Cash Ending Balance × by 50.64%
21.58
Ending Balance
14 33
14.33
to US$21.58 million

7.26
• Cash flow from Operating
Net Increase
5.79 Activities of US$24.09 million
Fi
Financing
i A
((12.18))
Activities
ti iti • Cash flow from Investing
(5.85)
2006 2007 Activities of (US$4.65 million)
(4.65)
Investing Activities
(11.98) • Cash flow from Financing
Activities of ((US$12.18 million))
24.09
Operating Activities
23.62

US$ Million

2006 2007 • Reduced

R d dWWorking
ki C Capital
it l
37.61
Working Capital
42.11

US$ Milli
Million

*For the Years Ended 31 December

PT Petrosea Tbk – Public Expose – 19 June 2008 14

 Financial Results*
Strong Balance Sheet Position
• Increase in Debt (Finance Leases)
24.23
Debt
14.35
2007
to US$24.23
$ million along
g with
US$ Million
2006 Increased Capex to US$25.68
Capital Expenditure million
(US$ Million)
25.68
• Mining
Mi i C Capex – Sanga-Sanga
S S
2006
2007
19.54
16.58
coal mining fleet, Rebuilds
10.90 • Services Capex
p - Continuing
g
5.62 5.90
expansion and development of
POSB
E&C Mining Services Total

• But
B t still maintaining relati
relatively
el lo
low
Debt to Equity Ratio - 0.32
0.32
Debt to Equity Ratio
0.19

2006 2007

*For the Years Ended 31 December

PT Petrosea Tbk – Public Expose – 19 June 2008 15

 Contents
• Overview
• Financial Results
• Current Operations
• Health, Safety, Environment and Quality Assurance
• Outlook and Summary

PT Petrosea Tbk – Public Expose – 19 June 2008 16

 Current Operations*

Gunungbayan Pratama Sanga Coal Indonesia – Ilthabi Bara Utama - Pakar Total Indonesie, ENI Bukat, Chevron,
Coal - GBP Coal Mining Sanga-Sanga Coal Mining Coal Mining Halliburton, MISwaco, ExxonMobil
US$175 million US$137 million US$342 million US$52.5 million

Indominco Mandiri - Bontang Cibaliung Sumber Daya – Coal Mining

Ilthabi Bara Utama - Pakar
Coal Terminal Expansion Cibaliung Gold Project
Coal Development
Stage 1 and 2 Stage 1 and 2
US$48 million
US$30.1 million US$9.7 million

BHP Billiton Indonesia - Tekno Orbit Persada - TOP Thermal Bumi Modern Sejahtera - Modern
Bumbun Exploration Camp Coal Bankable Feasibility Study Nickel Pre-Feasibility Study Water Treatment Plant
US$3.5 million US$2.1 million US$0.06 million US$7.8 million
*As of 31 May 2008

PT Petrosea Tbk – Public Expose – 19 June 2008 17

 Current Operations*
Mining Business Line
• GBP Coal Mining
• Contract Value : US$175 million
• Contract Duration : 2005-2008
• Location : Muara Pahu,, East Kalimantan
• Client : PT Gunungbayan Pratama Coal
• Scope of Work : Excavation and cartage to dump areas
from multiple pits of approximately 37
million bcm per annum
• Production Fleet : Nine large excavators and dump truck
fleets

• Sanga-Sanga Coal Mining

• Contract Value : US$137 million
• Contract Duration : 2005 2009
2005-2009
• Location : Sanga-Sanga, East Kalimantan
• Client : PT Sanga Coal Indonesia (Noble Group)
• Scope of Work : All overburden, coal loading and hauling
operations, with approximately 17 million
bcm per annum and 1.9 million ton of
coal per annum
• Production Fleet : Seven large and two small
excavators, and dump truck fleets

*As of 31 May 2008

PT Petrosea Tbk – Public Expose – 19 June 2008 18

 Current Operations*
Mining Business Line
• Pakar Coal Mining
• Contract Value : US$342 million
• Contract Duration : 2008-2013
• Location : Muai and Senyiur,
y East Kalimantan
• Client : PT Ilthabi Bara Utama
• Scope of Work : Operate and manage all mining, coal
processing, haulage (approximately 37 km
from mine to port) and barge loading
activities at a production rate of
activities,
approximately 5 million ton per annum
• Production Fleet : Large excavators, large push dozers, dump
truck fleets, and truck/trailer fleets

*As of 31 May 2008

PT Petrosea Tbk – Public Expose – 19 June 2008 19

 Current Operations*
Engineering & Construction (E&C) Business Line
• Bontang Coal Terminal Expansion Stage 1 & 2
• Contract Value : US$30.1 million
• Contract Duration : 2007-2009
• Location : Bontang East Kalimantan
Bontang,
• Partner : Laing O’Rourke
• Client : PT Indominco Mandiri (Banpu)
• Scope of Work : Stage 1 - Expansion of the stockyard
facilities
Stage 2 - Capacity upgrade of the
shiploading stream, a new barge
unloading stream, and the addition of
barge outloading facilities

• Cibaliung Gold Project Stage 1 & 2

• Contract Value : US$9.7 million
• Contract Duration : 2006 – 2008
• Location : Cibaliung Banten
Cibaliung,
• Client : PT Cibaliung Sumber Daya (Austindo
Resources Corporation NL)
• Scope of Work : Detail engineering, re-erection and re-
installation (construction) of the gold
*As of 31 May 2008 processing plant

PT Petrosea Tbk – Public Expose – 19 June 2008 20

 Current Operations*
Engineering & Construction (E&C) Business Line
• Pakar Coal Development
• Contract Value : US$48 million
• Contract Duration : 2007-2008
• Location : Muai and Senyiur,
Senyiur East Kalimantan
• Client : PT Ilthabi Bara Utama
• Scope of Work : Infrastructure development for a
greenfield coal mine, which incorporates
the full coal handling chain from lump
coal stockpiles, crushing, stacking,
reclaiming and haulage to a river
stockpile and barge loading system

• Bumbun Exploration Camp

• Contract Value : US$3.5 million
• Contract Duration : 2007-2008
• Location : Puruk Cahu, Central Kalimantan
• ClientCli t : PT BHP Billiton
Billit IIndonesia
d i
• Scope of Work : Design, construction and commissioning
of the exploration camp and supporting
infrastructure including helicopter hangar,
landing pads
pads, clinic
clinic, accommodation and
*As of 31 May 2008 fuel facilities

PT Petrosea Tbk – Public Expose – 19 June 2008 21

 Current Operations*
Engineering & Construction (E&C) Business Line
• TOP Thermal Coal Bankable Feasibility Study
• Contract Value : US$2.1 million
• Contract Duration : 2008
• Location : Kalimantan
• Client : PT Tekno Orbit Persada
• Scope of Work : Study of greenfield coal chain development
for approximately 10 million ton per annum
coal export,
p , which incorporates
p mining
g
options, infrastructure including stockpiling
and reclaiming systems, haul road, port
stockpiling and shiploading systems

• Modern Nickel Pre-Feasibility Study

S
• Contract Value : US$0.06 million
• Contract Duration : 2008
• Location : South East Sulawesi
• Client : PT Bumi Modern Sejahtera
• Scope of Work : Preliminary study of greenfield nickel ore
export development which incorporate all
support infrastructure including stockpiles
at ROM and port, materials handling and
*As of 31 May 2008
barge loading system

PT Petrosea Tbk – Public Expose – 19 June 2008 22

 Current Operations*
Petrosea Offshore Supply Base (POSB) Business Line
• Location : Tanjung Batu, Balikpapan, East Kalimantan
• Land Area : 89 ha
• Purpose : World-class supply base facilities supporting
oilil and
d gas production
d ti and d exploration
l ti drilling
d illi
in the Makassar Strait and surrounding area
• Wharf Facilities : Deep water wharf of 200 metres outer quay
at a minimum water depth of 8 metres, with a
dedicated oiloil-spill
spill contingency facility
• Craneage Facilities : Extensive materials handling capacity to
receive large volume bulk material deliveries
• Storage Facilities : Extensive hard stand storage areas of over
100,000 square
q metres and undercover
storage areas of 13,500 square metres
• Contract Value : US$52.5 million
• Contract Duration : 2006-2010
• Clients : Total Indonesie, ENI Bukat, Chevron,
H llib
Halliburton, MIS
MISwaco, ExxonMobil
E M bil
• Remarks : Supported by machinery & workshop facilities,
POSB is also a logistics hub for supporting
Petrosea mining operations including fleet
management
*As of 31 May 2008

PT Petrosea Tbk – Public Expose – 19 June 2008 23

 Current Operations*
PT Santan Batubara

• Concession Type
yp : Third g
generation Coal Contract of Work
(CCoW)
• Location : Kutai Kartanegara - Kutai Timur -Bontang,
East Kalimantan
• Area : 25,000 ha
• Ownership : 50% - PT Petrosea TbkTbk,
50% - PT Harum Energy
• Current Stages : Construction
• Operating Duration : 30 years (upon Operating Stage)
• Coal Resources : Final exploration drilling is currently being
completed to enable a JORC standard
resource report to be completed

*As of 31 May 2008

**Subject to a successful resource report

PT Petrosea Tbk – Public Expose – 19 June 2008 24

 Current Operations*
PT Tirta Kencana Cahaya Mandiri (TKCM)

• Investment Value : US$7.8 million

• Investment Duration : 2004-2008
• Operating Duration : 2004-2019 (15 year)
• Location : Cikokol, Tangerang
g g Regency,
g y Banten
• Ownership : 47% - PT Petrosea Tbk,
28% - PT Enviro Nusantara,
25% - PT Quarta Desira
• Client : PDAM Tirta Kerta Raharja -Tangerang
Regency
• Cooperation Agreement : Rehabilitate, Operate and Transfer
(ROT) of Cikokol Water Treatment
Plant, from the initial treated water
capacity of 934 litres/second to 11,575
575
litres/second within three years

*As of 31 May 2008

PT Petrosea Tbk – Public Expose – 19 June 2008 25

 Contents
• Overview
• Financial Results
• Current Operations
• Health, Safety, Environment and Quality Assurance
• Outlook and Summary

PT Petrosea Tbk – Public Expose – 19 June 2008 26

 Health, Safety and Environment
Outstanding Safety Performance

• LTIFR (Lost Time Injury Frequency Rate) currently 0.14*

• Set a new record as the lowest recorded LTIFR in PT Petrosea Tbk
• Zero Accident Award during 2007
• Tanjung Batu Site (Asset Management) – More than 2 million hours
LTI free**
f **
• Petrosea Overburden Removal Project (Gunung Bayan Site) – More
than 6 million hours LTI free**
• Petrosea Bontang Coal Terminal Project (Indominco Site) - 335
thousand manhours LTI free***
• Working
g towards ISO 14001 compliance
p

*As of 31 May 2008 – Based on AS/NZ Standard

**from the Indonesian Government
***from PT Indominco Mandiri (Banpu)

PT Petrosea Tbk – Public Expose – 19 June 2008 27

 Quality Assurance
ISO 9001:2000
• Holder of an ISO 9001:2000 certificate for almost a decade
• Petrosea’s Management
g System
y -ap proven business life-cycle
y
systems covering three business lines:
• Mining Operations
• Engineering & Construction
• Offshore Supply Base Operations

PT Petrosea Tbk – Public Expose – 19 June 2008 28

 Contents
• Overview
• Financial Results
• Current Operations
• Health, Safety, Environment and Quality Assurance
• Outlook and Summary

PT Petrosea Tbk – Public Expose – 19 June 2008 29

 Market Outlook
Mining and Mineral
Mineral*
• Mining and mineral market has driven the company growth during the year
in line with the high commodity prices , and we expect this market to remain
b
buoyant t iin th
the medium
di tterm, d
due tto hi
high
h energy prices
i

• Strong demands throughout Asia and supply disruptions in major coal

producing countries have tighten the coal supply in the global market

• y the world’s largest

Indonesia is currently g exporter
p of thermal coal
• Domestic demand is projected to drive Indonesian thermal coal production
in the medium term as the government rapidly builds coal-fired power plants

*Source: Barlow Jonker, Indonesian Coal Mining Association, Mitrais Mining News Report, Minister of Energy and Mineral Resources

PT Petrosea Tbk – Public Expose – 19 June 2008 30

 Market Outlook
Oil and Gas*
• Oil and gas market has been a difficult market for the company during
the year, but we anticipate improving activity in this area in the medium
term for both onshore and offshore project opportunities

• Recent increases in exploration drilling and licensing activities should

also restore Indonesian oil production growth in the coming years

• The outlook for the Indonesian gas market is positive as Indonesian gas
production is expected to continue its historical growth trend and
projections of sustained growth

*Source: Indonesian Petroleum Association

PT Petrosea Tbk – Public Expose – 19 June 2008 31

 Summary
• Strong operating performance through underlying Revenue
& Earning growth
• Work in Hand nearly US$0.5
US$0 5 billion*
billion
• Strong Balance Sheet position
• Shareholder value enhancement – significant increase in
Dividend per Share
• Outstanding safety performance
• Indonesia mining and mineral market remains buoyant
• Future Earning growth - driven by Mining Business Line
and PT Santan Batubara

*For the Years Ended 31 December 2007

PT Petrosea Tbk – Public Expose – 19 June 2008 32

 Thank You
Questions?

PT Petrosea Tbk – Public Expose – 19 June 2008 33