The Great Eastern Shipping Co. Ltd.

1

Business & Financial Review

July 2016

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 Company’s operations, strategic directions, prospects and future

results which in turn involve certain risks and uncertainties.

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.

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.

2

Forward Looking Statements

Corporate Profile

The Great Eastern Shipping Company

Shipping (Bulk)

Tankers

- Crude

- Products

Bulk

Offshore

(Through wholly-owned subsidiary

Greatship (India) Limited)

Drilling Logistics

India’s largest private sector shipping company.

Over 67 years of experience

3

4

Uninterrupted dividend for 30 years

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

0

2

4

6

8

10

12

14

16

198

4-8

5

198

5-8

6

198

6-8

7

198

7-8

8

198

8-8

9

198

9-9

0

199

0-9

1

199

1-9

2

199

2-9

3

199

3-9

4

199

4-9

5

199

5-9

6

199

6-9

7

199

7-9

8

199

8-9

9

199

9-0

0

200

0-0

1

200

1-0

2

200

2-0

3

200

3-0

4

200

4-0

5

200

5-0

6

200

6-0

7

200

7-0

8

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

Dividend per share (Rs)

5

Shareholding Pattern

Shareholding Pattern as on March 31, 2016

Promoters

31%

FII

24%

Govt/FI

19%

Corporate

Bodies

6%

Public

20%

6

Shipping business - owned fleet Sr. No. Vessel Name Type

1 Jag Lalit Suezmax

2 Jag Lok Suezmax

3 Jag Lateef Suezmax

4 Jag Lakshita Suezmax

5 Jag Lyall Aframax

6 Jag Lata Aframax

7 Jag Lavanya Aframax

7 Crude Carriers ; Average Age – 12.8 years

8 Jag Aabha LR1

9 Jag Aanchal LR1

10 Jag Amisha LR1

11 Jag Aparna LR1

12 Jag Pahel MR

13 Jag Pankhi MR

14 Jag Prabha MR

15 Jag Prakash MR

16 Jag Pushpa MR

17 Jag Prerana MR

18 Jag Pranav MR

19 Jag Pranam MR

20 Jag Padma MR

21 Jag Punit MR

14 Product Carriers; Average Age – 8.9 years

Sr. No. Vessel Name Type

22 Jag Vishnu VLGC

23 Jag Vidhi VLGC

2 Gas Carriers; Age - 21 years

24 Jag Aarati Kamsarmax

25 Jag Aditi Kamsarmax

26 Jag Arya Kamsarmax

27 Jag Arnav Kamsarmax

28 Jag Ajay Kamsarmax

29 Jag Ratan Supramax

30 Jag Rahul Supramax

31 Jag Rishi Supramax

32 Jag Rani Supramax

33 Jag Roopa Supramax

10 Bulk Carriers; Average Age – 5.7 years

33 Vessels

Average Age – 9.97 years

Total dwt - 2.5 mn

7

Vessels on Order & Capital Expenditure

Vessel Yard Expected Delivery

3 Kamsarmax Dry Bulk

Carriers

Jiangsu New Yangzi

Shipbuilding Co. Ltd,

China

Q2 FY17 & Q4 FY17

1 Secondhand Capesize

Dry Bulk Carrier

Hyundai Heavy

Industries, S Korea

Q2 FY17

Vessels on Order & Expected Delivery

Committed Capex - $90-100 mn

8

Tankers – Asset Prices (5-year old)

Source – Industry Reports

0

20

40

60

80

100

120

140

160

180

2001-0

1

2002-0

1

2003-0

1

2004-0

1

2005-0

1

20

06-0

1

2007-0

1

2008-0

1

2009-0

1

2010-0

1

2011-0

1

2012-0

1

2013-0

1

2014-0

1

2015-0

1

2016-0

1

USD mn

VLCC Suezmax Aframax

0

10

20

30

40

50

60

70

80

90

2011 2012 2013 2014 2015 Q1 2016

USD mn

VLCC Suezmax Aframax

9

Bulkers – Asset Prices (5-year old)

Dry Bulk asset prices at 20-year low

Source – Industry Reports

0

20

40

60

80

100

120

140

160

180

2001-0

1

2002-0

1

2003-0

1

2004-0

1

2005-0

1

20

06-0

1

2007-0

1

2008-0

1

2009-0

1

2010-0

1

2011-0

1

2012-0

1

2013-0

1

2014-0

1

2015-0

1

2016-0

1

USD mn

Capesize Panamax Supramax

0

5

10

15

20

25

30

35

40

45

50

2011 2012 2013 2014 2015 Q1 2016

USD mn

Capesize Panamax Supramax

10

Low oil prices positively impacted tanker rates

Source – Industry Reports

400

500

600

700

800

900

1000

1100

1200

1300

1400

Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Baltic Dirty Tanker Index

400

500

600

700

800

900

1000

Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Baltic Clean Tanker Index

11

Lower oil prices, leading to increased demand & refinery

runs

Source – Industry Reports

72

73

74

75

76

77

78

79

80

81

85

87

89

91

93

95

97

99

2012 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016

mbpd mbpd

Supply Demand Refinery Throughput (RHS)

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

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

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

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

12

Rising supply, contango led to commercial stocking, SPR

filling and forced storage

Source – Industry Reports

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

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

logistical constraints

13

US and China Crude Oil Imports

Source – Industry Reports

6000

6500

7000

7500

8000

8500

Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec

2016 2015 2014 2013

4000

5000

6000

7000

8000

9000

Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

No

v

Dec

2016 2015 2014 2013

US Crude Oil Imports (‘000 bpd) China Crude Oil Imports (‘000 bpd)

Baltic Dry Index (Jan 2000 – Apr 2016)

Dry Bulk freight rates improved during the quarter

Despite improvement during the quarter, dry bulk rates remain

close to historic lows

14

Source – Industry Reports

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Jan-0

0

Jun-0

0

Nov-0

0

Apr-

01

Sep

-01

Feb

-02

Jul-

02

Dec

-02

May

-03

Oct

-03

Mar

-04

Aug-0

4

Jan-0

5

Jun-0

5

Nov-0

5

Apr-

06

Sep

-06

Feb

-07

Jul-

07

Dec

-07

May

-08

Oct

-08

Mar

-09

Aug-0

9

Jan-1

0

Jun-1

0

Nov-1

0

Apr-

11

Sep

-11

Feb

-12

Jul-

12

Dec

-12

May

-13

Oct

-13

Mar

-14

Aug-1

4

Jan-1

5

Jun-1

5

Nov-1

5

Apr-

16

Baltic Dry Index

China’s iron ore import growth picked up

15

Source – Industry Reports

-10%

-5%

0%

5%

10%

15%

0

500

1000

1500

2000

2013 2014 2015 Q1 2015 Q1 2016

mt

World Crude Steel Production China Steel Production

Growth in World Steel Production (LHS) Growth in China Steel Production (LHS)

Steel Production fell during the quarter

China’s iron ore import grew 6% in Q1 2016

745 819

932 953

227 242

0

200

400

600

800

1000

1200

2012 2013 2014 2015 Q1 2015 Q1 2016

mt Australia Brazil Others

-15

-10

-5

0

5

10

Jan

-15

Mar

-15

May

-15

Jul-

15

Sep

-15

No

v-1

5

Jan

-16

Mar

-16

mt

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

Jan

-14

Ap

r-1

4

Jul-

14

Oct

-14

Jan

-15

Ap

r-1

5

Jul-

15

Oct

-15

Jan

-16

Ap

r-1

6

Coal imports by top importers on a declining trend

China coal imports India coal imports

16

Source – Industry Reports

mt

World Fleet Growth

Gross Fleet Addition (on

current fleet)

Fleet

CY2016 CY2017 CY2018+ May 16

(in mn dwt)

Crude tankers 341 7% 8% 4%

Product tankers 144 7% 6% 2%

Dry bulk carriers 779 9% 4% 3%

0

200

400

600

800

1000

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

Dry Bulk Crude Product

mn dwt

Fleet

17

Source – Industry Reports

18

Accelerated scrapping in Dry Bulk

Scrapping as % of world fleet (year-wise)

Vessel

Category

Fleet as on Scrapping

May 16 2016 YTD 2015 2014 2013

(in mn dwt) (% of beginning fleet)

Crude 341 0.1% 0.2% 1% 2%

Product 144 0.3% 0.2% 1% 2%

Dry Bulk 779 2% 4% 2% 3%

Source – Industry Reports

Greatship (India) Limited (a 100% subsidiary)

Business Review

July 2016

20

Current Owned Fleet

• 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)*

Offshore business- Fleet Profile

The Greatship Group

Category

Extent of coverage of

fleet's operating days

(per cent)

(FY17)

PSV 25

ROVSV 31

AHTSV 88

MPSSV 44

Jackup Rigs 95

High Fleet Utilization

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

21

Greatship’s Modern & Technologically Advanced Fleet & High

Utilization

- Higher utilization rates

- Minimum down time Revenue

Efficiencies

- Lower Operating costs

- Reduced maintenance

capex & opex

Cost

Efficiencies

Young Fleet

Young jack-up fleet with an average age

of approx. 4.5 years

Demand shifting to modern vessels,

especially as safety becomes a major

concern for oil companies

Technologically Advanced

Specialized/technologically advanced

vessels equipped with DP I/DP II

(Dynamic Positioning) and FiFi I (Fire

Fighting) technologies

Equipped to operate in challenging

environments

Efficient and versatile vessels

22

Double-digit decline in capex spending in 2016

2 years of continuous decline in capex spending

Source – Industry Reports

Outlook likely to have worsened since the last survey

23

Source: Rigzone, Marinebase, Industry Reports

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

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

pushed back to 2017.

o Going forward slippage is expected remain high.

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

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

65% as on date.

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

market at a very low utilisation.

(Nos) Jackup Rigs AHTSVs PSV

Current Fleet 464 1942 1439

Orderbook 120 191 234

% of O/B to current fleet 26% 10% 16%

Fleet & Orderbook

Global Fleet Supply – Offshore

FINANCIAL HIGHLIGHTS

Q4 FY 2015-16

25

Q4 FY 2015-16 Financial Highlights

Standalone Consolidated Key Figures

FY'16 FY'15 (Amount in Rs. crs) FY'16 FY'15

Income Statement

2279.53 2010.51 Revenue (including other income) 4078.51 3713.53

1153.13 840.93 EBITDA (including other income) 2269.57 1708.74

609.90 317.30 Net Profit 1039.40 748.24

Balance Sheet

9412.71 9335.93 Total Assets 15631.55 15535.15

5203.64 4930.76 Equity 8283.90 7430.62

2884.10 3069.33 Total Debt (Gross) 5794.11 6539.61

22.37 202.79 Long Term Debt (Net of Cash) 1894.42 2806.28

Cash Flow

969.71 530.12 From operating activities 2051.22 1448.58

(600.38) 489.68 From investing activities (917.52) (776.05)

(809.43) (649.88) From financing activities (1694.55) (228.28)

(440.10) 369.92 Net cash inflow/(outflow) (560.85) 444.25

26

Q4 FY 2015-16 Financial Highlights

Standalone Consolidated Key Figures

FY'16 FY'15 (Amount in Rs. crs) FY'16 FY'15

Key financial figures

50.59% 41.83% EBITDA Margin (%) 55.65% 46.01%

12.04% 6.52% Return on Equity (ROE) (%) 13.23% 10.54%

9.83% 6.28% Return on Capital Employed (ROCE) (%) 9.44% 7.81%

0.55 0.62 Gross Debt/Equity Ratio (x) 0.70 0.88

0.00 0.04 Net Debt/Equity Ratio (x) 0.23 0.38

65.30 61.13 Exchange rate USD/INR, average (Rs) 65.30 61.13

66.25 62.50 Exchange rate USD/INR, end of period (Rs)

66.25 62.50

Share related figures

40.45 21.04 Earnings per share, EPS (Rs) 68.94 49.63

40.37 21.00 Diluted earnings per share (Rs) 68.80 49.53

63.25 42.50 Cash Profit per share (Rs) 124.34 90.38

13.50 11.00 Dividend per share (Rs) 13.50 11.00

27

Q4 FY 2015-16 Performance Highlights Breakup of revenue days

Average TCY Details

Mix of Spot & Time

Revenue Days Q4’FY16 Q4’FY15

Owned Tonnage 2,574 2,603

Inchartered Tonnage 85 0

Total Revenue Days 2,659 2,603

Total Owned Tonnage (mn.dwt)* 2.4 2.3

Average (TCY $ per day) Q4’FY16 Q4’FY15 % Chg

Crude Carriers 33,838 30,324 12%

Product Carriers (Incl. Gas) 21,613 23,034 (6)%

Dry Bulk 4,418 7,717 (43)%

* As on 31st March

Days (in %) Q4’FY16 Q4’FY15

Dry Bulk

Spot % 63% 95%

Time % 37% 5%

Tankers

Spot % 66% 63%

Time % 34% 37%

Total

Spot % 65% 73%

Time % 35% 27%

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