The Great Eastern Shipping Company Limited Corporate Presentation

The Great Eastern Shipping Company Limited Corporate Presentation & Financial Announcement FY 2001 8 May 2001

Corporate mission “To be a leading service provider of marine logistics involving shipping and offshore services with a focus on the energy sector. ” 2

Corporate profile Largest Indian private sector shipping co. • Crude & products transportation • Dry bulk transportation Largest Indian private sector offshore service provider • Oil field services • Port services Knowledge driven organisation Global customer base Strong financials • Techno-commercial expertise • Opportunities & Risk assessment • 50 years of experience • Leveraged to enhance intl. trade • Emphasis on safety & quality • Steady Cash Generator • Increasing capital productivity 3

Professional management structure Board of Directors Managing Director Pooling experience & resources Consensus on important decisions Overall mgt. responsibilit y Core operating committees Head - Offshore Head - Shipping President–Corp & Co. Sec. CFO CIO & Head-HR 4

Corporate objectives Preferred service provider Stability & visibility of earnings Long-term growth • Focus on customer and quality of service • Diversified portfolio of related businesses • Asset expansion: supporting growth opportunities • Constant modernisation / upgradation of assets • Exposure to multiple geographies, trades and customers • Stronger operating model • Period covers: revenue visibility • Inorganic opportunities 5 Total organisational focus on enhancing human capital contribution

Business segments G. E. Shipping SHIPPING Crude • Suezmax • Aframax Product OFFSHORE Dry bulk • Handymax • Handysize • Medium range • General purpose Offshore services Gas Drilling services • Drilling rigs Offshore support / logistics Port support / Terminal services • Harbour / terminal tugs • Anchor handling tugs (AHT) • AHT supply vessels (AHTSV) • Dive support/supply vessels Marine const. Proj & serv. • Construction • barge 6

Shipping Business 7

Global overview Earnings drivers Demand drivers Trade growth World GDP growth Crude sourcing areas Wet Trade patterns OPEC prodn Wet/dry Supply drivers Ordering Inventory levels Steel prodn Shipyard capacity Wet Dry Wet/dry Wet Refinery location Wet Regional grain prodn Replacement demand Wet/dry Age Market conditions Wet/dry • Wet/dry Scrapping New building prices Wet/dry Regulatory parameters Dry Wet 8

Techno-commercial Capabilities • • Ability to participate in premium international trades CAP rating initiative: 4 product tankers certified All oil major approvals on 3 crude oil carriers All oil major approvals on 7 MR product tankers 9

Redefining asset allocation Details No. Aggr. DWT 2001 1997 Crude oil tankers 3 1 355, 000 Product tankers-GP 6 9 Product tankers-MR 7 Gas carrier Avg age (yrs) 2001 1997 150, 000 5 5 173, 000 259, 000 15 14 6 335, 000 280, 000 15 14 1 1 28, 400 23 19 Bulk carriers 15* 17 410, 000 610, 000 19 17 Total 32 34 1, 301, 400 1, 327, 400 Rs mln * Includes 4 MBCs Committed capex of US$ 136 million for 3 Aframax tankers and one product tanker 10

Global customer acceptability FY 97 FY 01 11

Risk Management: optimising opportunities RISK Market Environment Technical Commercial MANAGEMENT • Multiple sector exposure • Cross geo asset deployment • Period cover • Favourable value asset acquisition • Quality assets – intl. certifications • Stringent safety practices • Global oil pollution response contract • Pre-purchase inspection process • Ongoing maintenance & inspection • Operational • Credibility assessment 12

Operating highlights Q 4 FY 01 Q 4 FY 00 FY 2001 FY 2000 Crude tankers – Suezmax Operating days 90 58 380 335 13. 0 8. 4 55. 2 48. 6 18, 876 15, 373 19, 005 15, 108 Operating days 179 195 732 735 Operating capacity 18. 8 20. 5 76. 9 77. 2 41, 041 13, 686 30, 355 12, 029 Operating days 663 529 2164 1821 Operating capacity 31. 8 25. 9 104. 8 89. 3 23, 456 11, 615 16, 006 10, 402 Operating days 498 583 2314 2829 Operating capacity 14. 4 16. 3 65. 9 79. 2 11, 888 10, 526 10, 662 10, 914 Operating capacity TCY [$ / day] Crude tankers –Aframax TCY [$ / day] Product tankers – Medium range TCY [$ / day] Product tankers – General Purpose TCY [$ / day] 13

Operating highlights Q 4 FY 01 Q 4 FY 00 FY 2001 FY 2000 Operating days 827 940 3485 3398 Operating capacity 32. 2 36. 2 137. 9 130. 8 TCY [$ / day] 7, 678 6, 596 8, 095 6, 569 Operating days 258 245 1044 1221 Operating capacity 7. 0 6. 6 28. 4 33. 0 5, 512 5, 832 6, 715 5, 095 Bulk carriers – Handymax Bulk carriers – Handysize TCY [$ / day] Operating capacity in million DWT-days 14

Freight rates: current perspective 30, 00 0 25, 00 0 19, 00 0 14, 00 0 9, 000 6, 000 Current 15

Future outlook TANKERS Freight rates off Q 4 peaks Positive outlook through FY 2002 DRY BULK Supply overhang expected over next year Weakness expected in FY 2002 • OPEC supply cut • Slowdown in U. S. economy • IEA estimated oil demand increase by 1. 8% • Marginal fleet accretion – 4% of current fleet to be delivered in 2001 • Aggressive fleet additions: 12% of existing fleet on order • 30 m DWT additions by 2002 • Reduced scrapping trends: <6 m DWT in 2000 & YTD 2001 • Weakening global economic prospects • 6% demand growth required to 16 maintain existing freight rates

Revenue visibility FY 02 operating capacity covered Rs 674 million covered • • Rs 1057 million covered Rs 93 million covered 35% of FY 2001 revenues already covered Targeting enhanced crude coverage Limited risk management in dry bulk Monthly trend assessment & cover reviewed by mgt 17

Future direction Enhanced focus on tankers Dry bulk expansion linked with attractive market opportunities Creation of a sustainable brand Modernisation of asset base: greater intl. exposure Enhanced customer focus De-risking strategies 18

Offshore Business 19

Offshore business matrix Drilling service s Marine logistics Marine construction Port services Air logistics 20

Global sector outlook Trend of range-bound oil prices Buoyant gas prices Enhanced exploration activity Offshore industry in consolidation phase • Brent crude: FY 2001 US$ 22 -28 / barrel • Indications of US exploring gas production indigenously • Increased demand for offshore services • Emergence of limited number of strong players 21

Domestic sector outlook Drilling activity at core of the sector Go. I policy allows private & foreign investment in oil exploration ONGC experience leveraged for emerging opportunities Increasing capacity utilisation and greater demand visibility • Marine support services revolve around drilling • 25 of identified 48 blocks awarded under NELP-I • 23 bids under scrutiny for 25 exploration blocks under NELP-2 • Enron, Hardy Oil, Cairn Energy, Niko Resources, Mosbacher • Composite services • Attractive business 22

Company position Poised to capitalise on emerging opportunities Initial investment focused on ONGC operations Developed long experience & productive relationships Leading service provider within the sector Increasing E&P operations Improving profitability 23

Offshore fleet profile Details No. Avg age (yrs) 2001 1997 Oil drilling rigs 2 2 27 23 Offshore support vessels 14 10 16 15 Harbour tugs 10 2 6 11 Construction barge 1 1 23 19 Rs mln 24

Offshore Support Vessels Leading service provider in the sector Foray into specialised services: deep water drilling Further demand from NELP and E&P expansion programmes Servicing all E&P operators in India Main competition from foreign contractors 25

Port services Servicing public & private sector port trusts Further demand from upcoming LNG / chemical terminals Corporatisation of major ports / devlpt of minor open greater opportunities Focused on market led growth Competition from port authority-owned infrastructure & further acquisition 26

Safety, quality and training System • Driven by high operational standards required in the sector Implementation • Control systems to regulate Safety, Quality & Environmental Protection Compliance • Safety & knowledge enhancement training programmes: increase awareness, efficiency Monitoring • Regular internal & external safety audits Benefits Accolades • Loss prevention by monitoring fleet safety performance • Recent awards from Enron and Hardy 27 recognising efficient and safe practices

Operating highlights Q 4 FY 01 Q 4 FY 00 FY 2001 FY 2000 Drilling rigs Operating days 102 138 652 607 22, 674 27, 474 22, 179 30, 306 Operating days 1072 1186 3, 790 3, 621 Operating rate [$ / day] 4, 581 4, 018 4, 271 4, 130 922 721 3, 272 2, 449 130, 063 152, 397 146, 912 139, 614 N/A 263 758 Operating rate [$ / day] Support vessels Harbour tugs Operating days Operating rate [$ / day] Construction barges Project revenues [Rs mln] 28

Revenue visibility FY 02 operating capacity covered Rs. 500 million covered Rs. 543 million covered • 57% of FY 2001 revenues covered Rs. 198 million covered Rs. 10 million covered 29

Revenue visibility OSVs / Tugs Rig / Construction 30

The Future • Commitment to deepwater drilling services - enhanced business prospects – Acquisition of Malaviya Ten (US$20 m) – 2 PSVs ordered - US$26 m - delivery 2002 • Future expansion linked to E&P activity in India – – Mumbai High redevelopment programme Ravva Phase II - KG basin Lakshmi Field Enron’s Panna-Mukta field programme • Potential opportunities from NELP 31

Financial performance 32

Financial overview • • Market capitalisation: Rs. 7, 178 million* Cash generation of Rs. 3, 782 million in FY 2001 Net Worth Rs. 10, 910 million Capital employed Rs. 20, 124 million - Debt: Equity 0. 84: 1 Book Value per share: Rs. 50 per share NAV of Assets: Rs. 67 per share* AAA rating by CRISIL since 1995 Uninterrupted 15 -year dividend record *As on 7 May 2001 33

Financial performance 34

Capital employed 19, 944 20, 307 21, 457 21, 335 20, 124 35

Operating highlights Q 4 FY 01 Q 4 FY 00 FY 2001 FY 2000 TCE Income 2783 2040 9167 8115 Operating profit 1335 1035 4740 3684 Cash profit 1037 818 3782 2916 PAT 546 323 1774 1067 EPS (Rs. ) 2. 3 1. 2 8. 0 4. 1 36

Business distribution 2000 -01 Composition of capital employed 64% 14% Shipping Offshore 76% Composition of Operating Profit (PBDIT) 20% Rs. 20, 124 mn Rs. 4, 740 mn* 22% Others 4% * - incl. profit on sale 37

Financial analysis FY 01 FY 00 OPM 42% 32% NPM 16% 11% RONW 16% 9. 5% EPS 8. 00 4. 10 CEPS 17. 2 11. 3 Debt/Equity 0. 84 0. 89 Interest cover 6. 6 6. 1 38

Value initiatives Optimisation of Capital structure Cost Reduction initiatives • Buyback of equity shares • Prepayment of high cost debt • Appointed Accenture to advise • Cost savings in FY 2001: Rs. 195 million • Expected savings in FY 2002: Rs. 250 million Reduced nonoperating assets • Aggressive divestment of properties • Reduced portfolio of equities / commodities Enhancing decision support systems • Accenture implementation of integrated IT package in shipping division 39

Buyback objectives Strong cash generation expected • Positive operating outlook • Sale of non-core assets Adequate fund availability for near-term capital expenditure • To be funded from internal accruals and higher leveraging Value enhancement • Book Value per share: Rs. 50 • NAV per share: Rs. 67 • Optimal Debt / Equity balance Buy back II – Rs 1, 000 million – maximum Rs 42 per share 40

Concerns: pro-active redressal Equities trading Commodities trading Property exposure Forex exposure High Equity base Promoter participation • No investments, liquidating existing portfolio • Current exposure: Rs. 20 million • Reduced substantially over last 3 years • Close positions by FY 2002 • Demerged property division • Pro-active liquidation of assets • Cautious approach • Exposure on operations driven forward cover • Buyback I: Rs. 1. 5 billion; Equity base 16% • Second tranche to be cleared at AGM • Current shareholding 20% • Creeping acquisition 41

Sector leadership: position Sector global focus Global acceptability Enhancing stakeholder value De-risking business Modernising infrastructure Focusing on Returns Creation of brand identity 42

Visit us at www. greatship. com 43