Royal IHC corporate presentation

About IHC: Company profile (1)

• Continuous development of design and construction activities for the

specialist maritime sector (niche markets)

• Vessels• Custom-built, complex, focus on engineering

• Pre-designed modular IHC Supporter® class series

• Standard IHC Beaver® and IHC PackhorseTM range

• Worldwide customer base

• Vessel and equipment• Integrated product

• New-build

• Life-cycle support• After-sales service

• Training

About IHC: Company profile (2)

• Markets• Dredging Global market leader

• Offshore Oil & gas

• Mining Dredge + marine (deep-sea) mining

• Customers• Dredging operators

• Oil & gas corporations

• Offshore contractors

• Government authorities

About IHC: Key objective

• Maximise our customers’ profit by:

• Maximising uptime and performance

• Minimising overall operational costs

• Delivering on time and within budget

Capital costs; 40%Insurance costs; 5%

Fuel costs; 20%

Crew costs; 10%

Repair and maintenance costs;

25%

About IHC: Markets → dredging

• Long-term business drivers:• Global population growth

• Climate change

• Expansion of global trade

• Booming tourism and recreation

About IHC: Markets → offshore

• Long-term business drivers:• Economic growth (China, Brazil)

• Increasing global demand for energy

• Declining oil supplies onshore

• Deep-water technology

About IHC: Markets → offshore (2)

• Fixed platforms: est. CAGR 33%• Subsea trees: est. CAGR 8%• Offshore pipelines: est. CAGR 13%• Period: 2010-2027 Source: ODSP, 2010

About IHC: Markets → marine mining

• Long-term business drivers:

• Mining goes offshore

• New frontiers

About IHC: The technology innovator

• 3% of turnover for R&D (300-350 employees)

• In-house research centres, MTI and OTI (60 employees)

• In top 20 on R&D list in The Netherlands

• Cooperation in maritime chain

• IPR, subsidies, patents

About IHC: The technology innovator (2)

• IHC Parts & Services - High Efficiency Cutter Special pump

• IHC Sea Steel - 96” Fast Frame

• IHC Systems - One-man operated bridge

• IHC Handling Systems - Pile guiding tool

About IHC: Supply Chain Management

• Supply chain accounts for 73% of total production costs

• 4,300 suppliers worldwide (10% partners responsible for 85% volume)

• Selection and continuous performance improvement based on:• Quality

• Logistics

• Innovation

• Flexibility

• Total costs

• Benefits of supply chain:• Reducing total costs

• Managing risks

• Creating value

About IHC: Corporate Social Responsibility

• Overall aim is to find the perfect balance between people, planet and profit

• “Ecoshape – Building with Nature” - 5-year dredging R&D programme

• IHC Hydrohammer - IHC Waterhammer®

• IHC Sealing Solutions - SUPREME Ventus® (DP) Seal

Strategic priorities

About IHC: Strategic priorities

• Growth • Developing new and expand existing markets

• Deep-sea mining

• Renewable energy

• Standardised vessels

• Internationalisation

• Product development

• Expand leadership position in technology, supply chain management and

full services

• Life-cycle support

• Integrated maritime work tool solutions (value-added vessels and equipment)

• Low-cost dredgers

About IHC: Strategic priorities (2)

• Cooperation• Proactively working on internal and external cooperation

• Internationalisation

• Continuous effort to best serve customers across the globe in terms of cost effectiveness and quality• All vessel design will remain in The Netherlands

• Complex, custom-built vessels will continue to be built in The Netherlands

• Standard vessels will be built abroad

• Sourcing and manufacturing of equipment and components will also be done abroad

•

About IHC: History

About IHC: Organisation

About IHC: Branches across the globe

About IHC: Branches in The Netherlands

Sliedrecht

Krimpen a/d IJssel

Kinderdijk

Hardinxveld - Giessendam

About IHC: Shipyards in The Netherlands

• Design and construction of complex vessels up to 38m wide and 240m long

About IHC: Shareholders

• 2005: IHC Caland split into SBM Offshore and IHC Merwede

• 2014: His Majesty the King awarded an honorary title to IHC Merwede, and in this light of this accolade, it was renamed Royal IHC.

• Shareholders IHC:• Indofin 62%

• Rabo Capital 10%

• Management and personnel 28%

• Strategy:• Long-term view

• Keen interest in industrial companies

About IHC: Key figures

• Consolidated profit and loss account (in € million)

• Hugely flexible capacity

• Sizeable order book

• Strong balance sheet

• Healthy cash flow

2009 2010 2011 2012 2013

Turnover 1,126 1,008 1,050 895 985

EBITDA 102 153 161 84 108

Net result 59 101 103 37 56

Order book 1,130 1,167 1,179 964 1,743

Employees (number) 3,060 3,016 3,109 3,239 3,224

Dredging: Innovative vessels – standard TSHD

• Affordable and cost efficient

• Short delivery time

• Options to match your requirements

Easydredge™

IHC Beagle®

Trailing suction hopper dredgers:

• Modular design

• High quality, low cost

• Custom-built

Dredging: Innovative vessels – custom-built TSHD

• Market leader for the design and manufacture of custom-built hoppers

• More than 100 years of experience

• Complex state-of-the-art technology

• Operates in extreme conditions, at challenging depths and in various types of soil

VOX MÁXIMA CHANG JIANG KOU 01

Dredging: Innovative vessels – custom-built TSHD

WILLEM VAN ORANJE

BRABOBRABO

BREYDEL

ISANDLWANA

Dredging: Advanced equipment – TSHD

Suction pipe Wild Dragon® draghead

Gantries Curve® impeller

Dredging: Innovative vessels – standard CSD

• Cost effective• Local support• High levels of productivity and

discharge over long distances

Cutter suction dredgers:

• Reliable and efficient • Transportable • Deliverable from stock • Service and support

IHC Beaver® 50

IHC 8527MP®

• Market leader for the design and manufacture of custom-built CSD

• Efficient, reliable, high productivity

• Complex state-of-the-art technology

• Excellent mobility

Dredging: Innovative vessels – custom-built CSD

QUIBIÁN 1QUIBIÁN 1 SHANTI SAGAR

Dredging: Innovative vessels – custom-built CSD

ZHONG GUO SHUI DIAN

ALBZEM MIONDO

AL SAKAB

• World’s largest cutter suction dredgers

• Maximised operating flexibility and production

• Environmentally friendly by reducing lubrication to a minimum

• Large pump capacity

Dredging: Innovative vessels – self-propelled CSD

D’ARTAGNANARTEMIS

Dredging: Advanced equipment – CSD

Cutter ladderFlexible spud carrier Cutterhead

Dredging: Advanced equipment – CSD

Hydraulic installationVar. frequency drive for submerged pump Cutter Special® Pump

Work boat Delta Multi Craft 1050 Split hopper PAGADDER KINGSTOWN

TT Pump Backhoe dredger ALBERTO ALEMÁN ZUBIETA

Dredging: Auxiliary & mechanical vessels + equipment

Mining: Vessels and equipment – onshore

• Availablility

• Reliability

• Continuity

• Local presence

• Quality

• Integrated mining solutions

• Track record

• Know-how

• Safety/sustainabilitiy

• Partnership

• EfficientyMineral sand operation

Mining: Vessels and equipment – nearshore

Offshore tin mining operation

Nearshore Jig-installation

• Integrated solutions (dredge mining and mineral processing)

• Improved efficiency by changing from dry to wet mining

• Underwater mining solutions

• Reliable and efficient

• Cost effective

• Local suppot

Mining: Vessels and equipment – deep-sea mining

Vertical transport system and sea-floor mining toolSubsea crawler technology

• Integrated and ‘build – own – operate’ solutions

• Reliable development partner

• Knowledge and (exavation) experience

• Global player/network

• Resource and reserve development

• Multidisciplinairy specialist

• De-risking

• Safety/sustainability

Mining: Advanced equipment

Marine diamond-mining crawler A concept to mine coastal waters up to 100 metres

Mining wheel Land-based Jigs

Reliable partner for efficient offshore solutions

• Integrated business; a one-stop shop for customers

• Track record with major subsea construction companies, ship owners and oil companies

• Full service: from concept to financing, design, engineering, building and LCS

• Delivery on spec, budget and in time

• Higher operational reliability and efficiency

Equipment engineering &

production

Vessel Specialised equipment outfitting

Vessel in operation

After sales & Life-cycle support

Vesseldesign

FinancingRaw

materials supply

1 2 3 5 64 7 8

Offshore: Pipelaying – Innovative vessels

SEVEN SEAS

• Sapura Diamante: World’s first fully integrated pipelaying vessel by one supplier

SEVEN WAVES SAPURA DIAMANTE

Offshore: Pipelaying – Advanced equipment

Saipem J-Lay tower

McDermott 300-tonne Flex-Lay system

Technip S-Lay system

I-trencher

Offshore: Cablelaying – Innovative vessels

Pipelaying vessel – SEVEN SEAS

Cabelaying vessel – BOLD ENDEAVOUR Cabelaying vessel – ATLANTIC GUARDIAN

Offshore: Cablelaying – Advanced equipment

Cable plough

Integrated cablelaying equipment

Carousel

Hi-Traq trencher

Offshore: Diving support – Innovative vessels

SEVEN ATLANTIC

Offshore: Diving support – Advanced equipment

Hyperbaric self-propelled lifeboat Saturation diving

Diver handling systemsDecompression chambers

Offshore: Offshore support – Innovative vessels

Modular Offshore Support Vessel – IHC Supporter® classStandard Platform Supply Vessel – IHC Packhorse® - Maxi

Offshore: Offshore support – Innovative vessels

Custom-built Offshore Support Vessel – HOS IRON HORSE

Offshore: Offshore support – Advanced equipment

Innovative electrical systems IHC Supporter® class modules

Offshore: Module handling and well intervention

WELL ENHANCER

Offshore: Module handling and well intervention

Advanced equipment – Deck handling equipment Advanced equipment – Deck skidding system

Offshore: Renewable energy – Innovative vessels

Diving support vessel – SEVEN ATLANTIC

Offshore windfarm installation – NEPTUNE

Offshore: Renewable energy – Advanced equipment

Upending frame

IHC Hydrohammer® Noise mitigation system

Offshore: Pile-driving

Pile guiding tool Pile-driving activity by OLEG STRASHNOV

1200kNm hammer96”Fast Frame

Offshore: FPSO installation and offloading

Tandem offloading system

Riser pull-in system

Hydraulic power pack

Mooring system

Offshore: Handling, lifting and deep-water lowering

Diver handling systems

Internal lifting tool (ILT)

Electrical power and automation systems

Upending frame

Hydraulic power packHydraulic power pack

• Dedicated worldwide, lifetime support to our customers in order to:

• Maximise performance / output / uptime / lifespan

• Maintain correct and safe operation of IHC products

• Guarantee maximum return on investment = lowest cost of ownership

Life-cycle support

Life-cycle support

Total logistic support

Technical availability

Training

Training and assistance on board

Rental and financial services

Rental services• Possibility to buy after a lease period

• Rely on life-cycle support facilities

• No maintenance or repair costs

• Available to hire for relatively short periods

• Minimal financial risks

Financial services • Attractive packages to achieve long-term

operational excellence

• During period of construction and after delivery of the vessel

• Arrangement in pre-delivery finance IHC Beaver® 40

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