SBI Offshore

Investors’ Presentation at OSK DMG seminar 26 April 2012

DISCLAIMER

This document contains information that is commercially sensitive, subject to professional privilege and is proprietary and confidential in nature. Any professional privilege is not waived or lost by reason of mistaken delivery or transmission. If you receive a copy of this document but are not an authorized recipient, you must not use, distribute, copy, disclose or take any action in reliance on this document or its contents. The information contained in this document has not been independently verified. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this document should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation. Neither Company nor any of its respective affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. The document contains statements that reflect the Company’s beliefs and expectations about the future. These forward-looking statements are based on a number of assumptions about the Company’s operations and factors beyond the Company’s control, and accordingly, actual results may differ materially from these forward-looking statements. The Company does not undertake to revise forward-looking statements to reflect future events or circumstances.

MAJOR TRENDS IN O&M SECTOR

• Rising price of crude oil driving renewed O&M activity despite US/Europe economic issues

• US$50 Billion+ in new rig orders for Asian yards (e.g. Keppel’s recent major order from Brazil)

• Equipment comprises 60-70% of a rig’s total cost

MAJOR TRENDS IN O&M SECTOR

• While major rig equipment manufacturers are in West, yards are in Asia

• Opportunities for contract manufacturing in Asia of rig equipment – saving freight costs and time to market

• Rising demand for tender rigs for marginal fields = opportunity for turnkey equipment solutions providers as smaller equipment packages less attractive for big boys

WHAT THIS MEANS FOR SBI OFFSHORE?

• We have helped our principals to sell more than US$2 Billion of rig equipment since 2003

• We have facility in PRC to manufacture smaller drilling equipment components

• Since IPO in November 2009, we have been building design engineering and commercial team

WHAT THIS MEANS FOR SBI OFFSHORE

• For larger components, we have formed JV with Honghua, a major land rig manufacturer in PRC

• Mor project work will lead to higher staff utilisation and higher net margin

• Since start of 2012, we have secured a substantial drilling package as the main contractor

OFFSHORE O&M INDUSTRY

Integrated drilling systems

WIDE NETWORK OF CUSTOMERS

Oil Companies/Drilling Contractors

Seadrill Transocean Maersk Egyptian Drilling Noble Drilling

GlobalSantaFe Baker Hughes Atwood Oceanics Diamond Offshore

SeaDragon Offshore

Pride International

STX COSL Japan Drilling Larsen Oil & Gas

Smedvig Vantage Drilling Sinopec Hyundai HI CNOOC

Ensco Saudi Aramco Opus Offshore Tanker Pacific Samsung HI

Sevan Marine Aban Offshore Songa Offshore Kencana Marine DSME

Shipyards

Jurong Shipyard PPL Shipyard Sembawang Shipyard

Cosco Nantong Cosco Dalian

Yantai Raffles CMHI Dalian Offshore Shanghai Waigaoqiao

Shanghai Shipyard

KeppelFELS Kencana HL PV Shipyard Drydocks

• Turnkey equipment solutions - Derrick Equipment Set for Tender Rigs - Heavy Lift Crane Barges (Shearleg) - Workover Equipment for Liftboats • Contract manufacturing - drilling equipment • OEM equipment - high pressure pipes, fittings and manifolds - lifeboats and davits - deck machinery and load handling systems

OUR BUSINESS FOCUS

TURNKEY EQUIPMENT SOLUTIONS

Self Erecting Tender Rig (SETR)

DES FOR TENDER RIG

Derrick Equipment Set (DES): Design Engineering Derrick Set Mud processing equipment Cement system Lifting equipment Power system BOP Drillstring handling Substructures Installation supervision Testing & commissioning

• Petronas spending programme of RM300bil over the next five years includes enhanced oil recovery and marginal field jobs.

• Indonesia enacted new laws to boost production from marginal fields in the face of falling output

• Thailand – Chevron drilled 308 development wells in 2010 (9 SETRs from Seadrill)

MARGINAL OIL FIELDS IN S E ASIA

• Market neglected by major vendors

• We offer a customised Derrick Equipment Set (DES) package

• Strong support from principals

WHY SBI FOCUS ON TENDER RIGS?

15

Drilling Module

The structure is moving alone the capping beam longitudinally, and the drilling floor is moving along the structure transversely

TURNKEY EQUIPMENT SOLUTIONS

• Lower labour cost in Asia • Reduced delivery lead time • Lower shipping costs

CONTRACT MANUFACTURING

CONTRACT MANUFACTURING

Derrick Pipehandling •Bridge crane •Monkey tail •Fingerboard •Cabins

HPU •1-5 subm. pump •3-7 ext. pumps

Horizontal pipehandling •Pipedeck cranes •Eagle light •Catwalk •Riser handling

Drillstring Compensator

Mud Equipment •Bulk systems •Mud recond. syst. •Mud mixing syst.

BOP Handling •BOP skid •BOP transporter •BOP cranes •BOP guide system

Drilling Control Rooms & Cabins

Derrick

Riser handling crane

OUR NEW FACILITY IN CHINA

OEM Equipment

SEA REEF – PRODUCT RANGE

Deck Machinery

Offshore Cranes

Offshore Load Handling Systems

SBI - PRODUCT RANGE

Lifeboats

Davits

API Pipes, Fittings, Manifolds

USA – Sales, ENG, MFG, MRO

Brazil – Sales, MFG, MRO

Norway – Sales

China – Sales, MFG, MRO

SIN – Sales, ENG, MFG, MRO

OUR INTERNATIONAL OPERATIONS

CORPORATE DATA

• Listed on 11 Nov 2009 • Share price at listing: S$0.270

Basic Share Data As at 17 April 2012

Share Price S$0.22

Average Daily Volume 100,000

No. of Issued shares excluding Treasury Shares

121,680,000

Estimated Free Float 27.68%

Market Cap S$26.7 million

PROFIT & LOSS HIGHLIGHTS

Description FY2011 (US$ 000s)

FY2010 (US$ 000s)

% change

Sales 7,121 9,339 (23.7)

Gross Profit 3,766 3,424 10.0

Gross Profit Margin (%) 52.9 36.7 16.2

G&A expenses (3,770) (3,540) 6.4

Profit before Tax 464 202 130

Profit after Tax 257 148 72.9

EPS (in US cent) *0.22 **0.12 83.3

• *based on weighted average number of shares in issue of 121,680,100 • ** based on weighted average number of shares in issue of 116,888,319

FY2011 FINANCIAL HIGHLIGHTS

• Order book raised to US$41M from US$6.1M a year ago after significant new contracts since start of FY2012

• Net profit up 72.9% to US$0.26M on revenue of US$7.1M (FY2010: US$9.3M)

• EPS 0.22 US cent (FY2010: 0.12 US cent) • NAV 7.85 US cent (FY2010: 7.6 US cent) • Proposed dividend: 0.2 Singapore cent • Expects substantially higher sales for FY2012

WHY BIG INCREASE IN ORDER BOOK?

• Shipyards placing equipment orders now after receiving record rig orders last two years

• Achieved breakthrough into rig upgrade market viz. Transocean and Atwood

• Big order from Asian customer for full drilling equipment package for a tender rig

BREAKING INTO KOREAN MARKET

• Korean yards building 36 drillships and 5 semi’s worth > US$25 billion

• SBI qualified as vendor to the 4 major yards in Korea

• Chasing lifeboat orders worth more than US$6 million per rig

SUSTAINING ORDER BOOK GROWTH

• Turnkey equipment solutions business to ride on initial success

• Sea Reef has substantial backlog of enquiries

• Expect significantly more contract manufacturing work as supply market is tight

• Substantial volume of enquiries from four major Korean yards

SBI Offshore