May 2016

Business & Financial Review

The Great Eastern Shipping Co. Ltd.

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.

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.

Except 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 Companys operations, strategic directions, prospects and future
results which in turn involve certain risks and uncertainties.

Forward Looking Statements

Bulk

Logistics

Drilling

(Through wholly-owned subsidiary

Greatship (India) Limited)

Indias largest private sector shipping company.

Over 67 years of experience

- Crude
- Products

Tankers

Shipping (Bulk)

Offshore

The Great Eastern Shipping Company

Corporate Profile

16

14

12

10

0
1985-86

1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16

Uninterrupted dividend for 30 years

1986-87

Dividend per share (Rs)

Two Interim dividends amounting to Rs. 13.5 per share declared and paid in FY16

1984-85

Govt/FI
19%

Corporate
Bodies
6%

Public
20%

FII
24%

Promoters
31%

Shareholding Pattern as on March 31, 2016

Shareholding Pattern

9
10
11
12
13
14
15
16
17
18
19
20
21
22

Vessel Name
Type
Jag Lalit
Suezmax
Jag Lok
Suezmax
Jag Lateef
Suezmax
Jag Lakshita
Suezmax
Jag Lyall
Aframax
Jag Lata
Aframax
Jag Laxmi*
Aframax
Jag Lavanya
Aframax
8 Crude Carriers ; Average Age - 13 years
Jag Aabha
LR1
Jag Aanchal
LR1
Jag Amisha
LR1
Jag Aparna
LR1
Jag Pahel
MR
Jag Pankhi
MR
Jag Prabha
MR
Jag Prakash
MR
Jag Pushpa
MR
Jag Prerana
MR
Jag Pranav
MR
Jag Pranam
MR
Jag Padma
MR
Jag Punit
MR
14 Product Carriers; Average Age 8.9 years

Sr. No.
1
2
3
4
5
6
7
8

* Contracted for sale with expected delivery in Q1 FY17

32 Vessels
Average Age - 10.4 years
Total dwt - 2.5 mn

Sr. No.
Vessel Name
Type
23
Jag Vishnu
VLGC
1 Gas Carrier; Age - 22 years
24
Jag Aarati
Kamsarmax
25
Jag Aditi
Kamsarmax
26
Jag Arya
Kamsarmax
27
Jag Arnav
Kamsarmax
28
Jag Ratan
Supramax
29
Jag Rahul
Supramax
30
Jag Rishi
Supramax
31
Jag Rani
Supramax
32
Jag Roopa
Supramax
9 Bulk Carriers; Average Age - 6.5 years

Shipping business - owned fleet

Jiangsu New Yangzi

Shipbuilding Co. Ltd,
China
Mitsubishi Heavy
Industries, Nagasaki
Shipyard, Japan

4 Kamsarmax Dry Bulk

Carriers

1 Secondhand Very
Large Gas Carrier (Built
1996)

Q1 FY17

Q1 FY17, Q2 FY17 &

Q4 FY17

Expected Delivery

Committed Capex - $120-130 mn

Yard

Vessel

Vessels on Order & Expected Delivery

Vessels on Order & Capital Expenditure

Source Industry Reports

20

40

60

80

100

120

140

160

180

USD mn

VLCC

Suezmax

Aframax

10

20

30

40

50

60

70

80

90

2011

USD mn

2012

VLCC

2013

2014

Suezmax

Tankers Asset Prices (5-year old)

2001-01
2002-01
2003-01
2004-01
2005-01
2006-01
2007-01
2008-01
2009-01
2010-01
2011-01
2012-01
2013-01
2014-01
2015-01
2016-01

2015 Q1 2016

Aframax

Source Industry Reports

20

40

60

80

100

120

140

160

180

USD mn

Capesize

Panamax

Supramax

2011

2012

2013

2014

Panamax

Dry Bulk asset prices at 20-year low

10

15

20

25

30

35

40

45

50

USD mn

Capesize

Bulkers Asset Prices (5-year old)

2001-01
2002-01
2003-01
2004-01
2005-01
2006-01
2007-01
2008-01
2009-01
2010-01
2011-01
2012-01
2013-01
2014-01
2015-01
2016-01

2015 Q1 2016

Supramax

Jan-11

Jan-12

Source Industry Reports

400
Jan-10

500

600

700

800

900

1000

1100

1200

1300

1400

Jan-13

Jan-14

Jan-15

Baltic Dirty Tanker Index

Jan-16

400
Jan-10

500

600

700

800

900

1000

Jan-11

Jan-12

Jan-13

Jan-14

Jan-15

Baltic Clean Tanker Index

Jan-16

Low oil prices positively impacted tanker rates

10

2012

mbpd

2013

Demand

Refinery Throughput (RHS)

mbpd

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016

Supply

79
78
77
76
75
74
73
72

81
80

Source Industry Reports

blip down in refinery margins and increase in fleet during the quarter.

Product tanker rates fell marginally on account of warm winter in the west, a

by an increase of close to 1 mbpd in refinery throughput & port congestions

Crude tanker rates, although lower than Q4 2015 levels, remained healthy led

85

87

89

91

93

95

97

99

Lower oil prices, leading to increased demand & refinery

runs

11

Source Industry Reports

logistical constraints

Forced storage of oil products due to product-specific oversupply and

Lower crude oil prices - SPR filling and increase in commercial inventory

Rising supply, contango led to commercial stocking, SPR

filling and forced storage

12

Apr

Mar

Feb

Jan

2015

Source Industry Reports

6000

6500

7000

7500

8000

8500

2016

2014

2013

4000

5000

6000

7000

8000

9000

2016

2015

2014

Oct
Jul

Jun

Mar
Dec
Nov
Oct

Sep

Aug

Jul

Jun

May

2013

China Crude Oil Imports (000 bpd)

Nov

Sep
Aug

May
Apr

Feb

Jan

US Crude Oil Imports (000 bpd)

US and China Crude Oil Imports

Dec
13

Source Industry Reports

close to historic lows

Despite improvement during the quarter, dry bulk rates remain

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Baltic Dry Index

Dry Bulk freight rates improved during the quarter

Baltic Dry Index (Jan 2000 Apr 2016)

Jan-00
Jun-00
Nov-00
Apr-01
Sep-01
Feb-02
Jul-02
Dec-02
May-03
Oct-03
Mar-04
Aug-04
Jan-05
Jun-05
Nov-05
Apr-06
Sep-06
Feb-07
Jul-07
Dec-07
May-08
Oct-08
Mar-09
Aug-09
Jan-10
Jun-10
Nov-10
Apr-11
Sep-11
Feb-12
Jul-12
Dec-12
May-13
Oct-13
Mar-14
Aug-14
Jan-15
Jun-15
Nov-15
Apr-16
14

2014

2015

Q1 2015

2013

819

2014

932

Australia

2015

953

Brazil

Others

Q1 2015

227

242

-10%

Q1 2016

Q1 2016

-5%

0%

5%

10%

15%

China Steel Production

Growth in China Steel Production (LHS)

Chinas iron ore import grew 6% in Q1 2016

2012

745

2013

mt

Source Industry Reports

200

400

600

800

1000

1200

500

1000

1500

2000

World Crude Steel Production

Growth in World Steel Production (LHS)
mt

Steel Production fell during the quarter

Chinas iron ore import growth picked up

15

Oct-14

Jul-14

Apr-14

Jan-14

Source Industry Reports

-20.0

-15.0

-10.0

-5.0

0.0

5.0

mt

-15

-10

-5

10

mt

Jan-15

10.0

China coal imports

India coal imports

Jan-16

Mar-15

Apr-16
Jan-16

Oct-15

Coal imports by top importers on a declining trend

Mar-16

Nov-15
Sep-15
Jul-15

May-15

Jul-15

Apr-15

Jan-15

16

Crude

Product

144
779

Product tankers

Dry bulk carriers

Source Industry Reports

341

Crude tankers

(in mn dwt)

May 16

Fleet

9%

7%

7%

CY2016

4%

6%

8%

CY2017

3%

2%

4%

CY2018+

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

mn dwt

Dry Bulk

Gross Fleet Addition (on

current fleet)

200

400

600

800

1000

Fleet

World Fleet Growth

17

144
779

Product

Dry Bulk

Source Industry Reports

341

(in mn dwt)

May 16

Fleet as on

Crude

Vessel
Category

2%

0.3%

0.1%

2016 YTD

2014

4%

0.2%

0.2%

2%

1%

1%

(% of beginning fleet)

2015

Scrapping

Scrapping as % of world fleet (year-wise)

Accelerated scrapping in Dry Bulk

3%

2%

2%

2013

18

May 2016

Business Review

(a 100% subsidiary)

Greatship (India) Limited

4 Jack Up Rigs (350ft)

5 Platform Supply Vessels (PSV)

8 Anchor Handling Tug cum Supply

Vessels (AHTSV)

2 Multipurpose Platform Supply and

Support Vessels (MPSSV)

6 Platform / ROV Support Vessels

(ROVSV)*

Current Owned Fleet

95

44
MPSSV
Jackup Rigs

88

31
ROVSV
AHTSV

25
PSV

Category

Extent of coverage of
fleet's operating days
(per cent)
(FY17)

High Fleet Utilization

* Includes Greatship Ragini (ROVSV) which has been contracted for sale with expected delivery in H2FY17

The Greatship Group

Offshore business- Fleet Profile

20

n Efficient and versatile vessels

n Equipped to operate in challenging

environments

n Specialized/technologically advanced
vessels equipped with DP I/DP II
(Dynamic Positioning) and FiFi I (Fire
Fighting) technologies

Technologically Advanced

n Demand shifting to modern vessels,

especially as safety becomes a major
concern for oil companies

n Young jack-up fleet with an average age

of approx. 4.5 years

Young Fleet

Cost
Efficiencies

Revenue
Efficiencies

- Reduced maintenance
capex & opex

- Lower Operating costs

- Minimum down time

- Higher utilization rates

Greatships Modern & Technologically Advanced Fleet & High

Utilization

21

Source Industry Reports

Outlook likely to have worsened since the last survey

2 years of continuous decline in capex spending

Double-digit decline in capex spending in 2016

22

26%

% of O/B to current fleet

16%

234

1439

PSV

Going forward slippage is expected remain high.

market at a very low utilisation.

In case of PSVs and AHTSVs more than half the fleet is either idle/stacked or working in spot

65% as on date.

has resulted in utilisation levels coming down from around 90% at the start of 2014 to around

Asset utilisation levels continue to come off. For premium Jack ups, lack of contract renewals

pushed back to 2017.

owners have refrained from taking delivery. A lot of deliveries due in 2016 have now been

Source: Rigzone, Marinebase, Industry Reports

10%

191

1942

AHTSVs

YTD actual deliveries have been far lower than scheduled. Due to bleak employment scenario

120

Orderbook

464

Jackup Rigs

Current Fleet

(Nos)

Fleet & Orderbook

Global Fleet Supply Offshore

23

Q4 FY 2015-16

FINANCIAL HIGHLIGHTS

FY'15
2010.51
840.93
317.30

9335.93
4930.76
3069.33
202.79

530.12
489.68
(649.88)
369.92

FY'16

2279.53
1153.13
609.90

9412.71
5203.64
2884.10
22.37

969.71
(600.38)
(809.43)
(440.10)

Standalone

4078.51
2269.57
1039.40

15631.55
8283.90
5794.11
1894.42

2051.22
(917.52)
(1694.55)
(560.85)

Balance Sheet
Total Assets
Equity
Total Debt (Gross)
Long Term Debt (Net of Cash)
Cash Flow
From operating activities
From investing activities
From financing activities
Net cash inflow/(outflow)

FY'16

Consolidated

(Amount in Rs. crs)

Income Statement
Revenue (including other income)
EBITDA (including other income)
Net Profit

Key Figures

Q4 FY 2015-16 Financial Highlights

1448.58
(776.05)
(228.28)
444.25

15535.15
7430.62
6539.61
2806.28

3713.53
1708.74
748.24

FY'15

25

FY'15
41.83%
6.52%
6.28%
0.62
0.04
61.13
62.50

21.04
21.00
42.50
11.00

FY'16

50.59%
12.04%
9.83%
0.55
0.00
65.30

66.25

40.45
40.37
63.25
13.50

Standalone

Share related figures

Earnings per share, EPS (Rs)
Diluted earnings per share (Rs)
Cash Profit per share (Rs)
Dividend per share (Rs)

Exchange rate USD/INR, end of period (Rs)

(Amount in Rs. crs)

Key financial figures
EBITDA Margin (%)
Return on Equity (ROE) (%)
Return on Capital Employed (ROCE) (%)
Gross Debt/Equity Ratio (x)
Net Debt/Equity Ratio (x)
Exchange rate USD/INR, average (Rs)

Key Figures

68.94
68.80
124.34
13.50

66.25

55.65%
13.23%
9.44%
0.70
0.23
65.30

FY'16

49.63
49.53
90.38
11.00

62.50

46.01%
10.54%
7.81%
0.88
0.38
61.13

FY'15

Consolidated

Q4 FY 2015-16 Financial Highlights

26

30,324
23,034
7,717

33,838
21,613
4,418

Crude Carriers

Product Carriers (Incl. Gas)

Dry Bulk

(43)%

(6)%

12%

Average (TCY $ per day) Q4FY16 Q4FY15 % Chg

Average TCY Details

Time %

Spot %

Total

Time %

Spot %

Tankers

Time %

Spot %

Dry Bulk

65%
35%

66%
34%

63%
37%

73%
27%

63%
37%

95%
5%

Q4FY16 Q4FY15

Mix of Spot & Time

Days (in %)

2.3

2.4

Total Owned Tonnage (mn.dwt)*

* As on 31st March

2,603
0
2,603

2,574
85
2,659

Q4FY16 Q4FY15

Owned Tonnage
Inchartered Tonnage
Total Revenue Days

Revenue Days

Breakup of revenue days

Q4 FY 2015-16 Performance Highlights

27

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