2. ORGANIZATIONAL STRUCTURE
Controlling
EBX
Shareholder & FREE FLOAT
Management*
78.23% 21.77%
Integrated offshore E&P equipment
HYUNDAI and services provider
10% Holding
90% 100% 100%
OSX LEASING OSX SERVIÇOS
Shipbuilding Unit Leasing Services
* Represented through Centennial Asset Mining Fund LLC. , Eike Batista (indirectly owns 100% of Centennial Asset Mining LLC), Board of Directors and Board of Executive Officers 2
3. OSX PILLARS
Demand from OGX Priority Rights between OSX and OGX
Expected oil and gas resources to increase to 100 Bboe, with announced investments
Attractive Market
of US$ 140bn plus
Conditions in Brazil
Underserved domestic equipment & services market
Local Content Approximately 70% of E&P industry capex supplied locally
Requirement Key for Brazil’s long-term social and economic development (285,000 jobs in 5 years)
Partnership with the largest shipbuilder in the world
Strategic State-of-the-art technology and transfer of know-how
Partnership with Construction of the largest shipyard of the America's in the Açu Superport Industrial
Hyundai
District
ITN –Institute of Naval Technology , partnerships with technical institutions and
universities
Training (ITN)
Absorption and application of Korean technology
Qualification of 3,100 technical personnel until 2013
Incentivized and
More than 30 years experience, on average, in the E&P sector
Experienced
US$ 30bn in projects and more than 50,000 people under management
Management Team
3
4. ORGANOGRAM: EXPERIENCED & MOTIVATED TEAM
More than 50 engineers with an average of 26 years experience
Carlos Bellot (34)
CEO
Management Planning Environment, Health and
Heleno Barbosa (33) Safety
Heraldo Albuquerque (27)
Commercial Department
Rodrigo Lopes (25)
Recursos Humanos
Monica Barbosa
Danilo Baptista( 35) Ricardo Abi-Ramia (24) Luciano Porto (21) João Borges (20)
Shipyard Operations Officer Operations, Engineering, Chief Legal Officer Chief Financial Officer and
Leasing and Developing Officer Investor Relations Officer
Ivo Dworschak (35) Anna Kac (34)
Shipbuilding Unit Engineering
Paulo Ricardo (28)
Exploration Campos & (34) Arnaldo Arcadier (34)
Antonio Maceiras ES Construction, Assembly and
Training /ITN xxxxx
Integration
Roberto Toledo (31)
E&P Laboratory Adilson Araújo (29)
Contracts & Affiliates
Celso Martins (34) Contratos e Afiliadas
Onshore Basin Francisco Crisostomo (35)
Operation & Production
Ernani Porsche (33)
International Regina Ozorio (31)
Rig Ventures
Total OSX employees: approx. 1.168
Total employees involved in the
operations: approx. 4,451
(xx) Years of experience 4
5. LOCAL CONTENT: RATIONALE AND EVOLUTION
Represents a social & economic development strategy
Has increased significantly in recent ANP bidding rounds
Local Content Requirement Local Content Evolution
Exploration Phase
■ Definition: minimum percentage of equipment and 86%
Development Phase 84%
services contracted by the operator that must be 81%
77%
supplied by local companies 86%
79% 79%
54% 74%
■ Average of 70% in the production development phase 69%
48%
40%
■ Component of the bid for acquisition of E&P Blocks 27%
42% 39%
■ Certification of each item by inspection companies
25% 28%
(guidelines set forth by Federal Government – MME)
1st 2nd 3rd 4th 5th 6th 7th 8th (1)
9th 10th
■ Subject to severe penalties Source: ANP
Note (1) 8th ANP bidding round auction is still under discussion
Local Content Rationale
Notable Companies Committed to Local
■ Boost local oil & gas equipment and services industry Content
■ Incentivize local technology development
■ Substantially increase employment and income
5
6. BRAZILIAN SHIPYARDS
Local shipyards are not prepared to serve expected offshore
E&P equipment demand
Main Shipbuilders in Brazil Current Conditions of Brazilian Shipyards
Mac Laren
EAS ERG Brasfels Mauá Mac
Laren
Committed Slots
Mauá
Site Area (km2) 1,6 0,5 0,5 0,4 0,1
Technology Partner
Steel Processing Capacity Brasfels
(Kton / year)
160 60 50 36 6
Focus on Offshore
Equipment
Logistics
Labor Force
Source: Verax
“A construction slot in OSX’s shipyard is worth more than gold” 6
9. AÇU INDUSTRIAL COMPLEX
COMPLEXO INDUSTRIAL DO AÇU
A New Cluster for the Offshore and Heavy Industry
90 km² Industrial Complex (1.5 x larger than Manhattan Island) 9
10. UCN AÇU: THE LARGEST SHIPYARD OF THE AMERICAS
Partnership with Hyundai Heavy Industries
Steel assembly capacity of
220,000 ton/year
Up to 3,525 m water front (2,400
m in first phase)
Beginning of construction in July
2011
Commercial partnership with
Hyundai
Capacity to integrate up to 11
FPSOs and 8 WHPs simultaneously
Main entrance Industrial facilities Dry Dock
Office buildings Module assembly area Quay
Production workshops (manufacturing of Jacket pre-assembly area Quay Expansion
blocks, structures, accessories and pipes)
Jacket assembly area
10
11. ALMAGESTO MANAGEMENT SYSTEM
Focus on management processes
Project “Almagesto” : Main processes*:
Instrumentalization of Shipbuilding main Maintenance
EHS/EBP
Acquisitions & Facilities
processes and systems
Materials & Logistics
Globally unprecedented systems integration in the
naval construction sector (partnership with SIX).
Engineering
Manufacturing
Project benefits: Construction
& Assembly
Reduce errors in transmission of information
Reduce stock and waste
Production and productivity real time
Planning &
Programing
information
Precise allocation of production costs
Commissioning
Processes and
Managerial
Information
*Illustration only 11
12. UCN AÇU: FINANCING
Obtained from Fundo da Marinha Mercante (Merchant Marine Fund)
Capex distribution per year/activity
8.5% 41.3% 47.2% 3%
Credit facility already contracted: R$ 2.7 bn
Total tenure 21 years with a 42/36-month 2011 2012 2013 2014
grace period for amortization of principal and
36/30-month grace period for payment of interest
(BNDES/CEF) with an expected average interest TOTAL OF APPROX.
R$ 4.8 BN
rate US$ + 3,38% a.a.
Additional funding prioritization of up to R$
1.5 bilion approved by FMM
Lending agents: BNDES and Caixa Econômica
Federal (CEF)
12
14. UCN AÇU: AERIAL VIEW
Evolution of the construction of the canal
November | 2011 January | 2012 March | 2012 May | 2012
July | 2012 September | 2012 November | 2012 January | 2013
14
15. UCN AÇU: AERIAL VIEW
Aerial view of the canal: March 2013
Box indicates where operation is set to start in the beginning of 2013 15
18. UCN AÇU: QUAY AND BUILDINGS
Bending & Line Heating Workshop Steel Outfitting Workshop
Pre-treatment & Cutting and Sub-production Workshops North quay area
18
19. PRODUCT PORTFOLIO
UCN Açu designed and equipped to meet diverse orders
FPSO Drillship Tanker
Floating, Production, Storage and Drilling units heavily demanded for
Maritime Transportation Unit
Offloading Unit ultra-deep water’s
FPSO OSX-1 : Guanabara Bay, RJ, Brazil Image courtesy of Hyundai Heavy Industries Image courtesy of Hyundai Heavy Industries
WHP PLSV TLWP
Fixed drilling & production Pipe-Laying Support Vessel Tension-Leg Wellhead Platform
platforms ( Wellhead Platform)
Image courtesy of Hyundai Heavy Industries
Image courtesy of IHC Offshore&Marine B.V. Image courtesy of Hyundai Heavy Industries 19
20. UCN AÇU: START OF OPERATION IN THE BEGINNING OF 2013
Beginning of construction of the Sapura PLSV
1
Main highlights:
Beginning of operation at UCN Açu – North quay area (150m
of quay)
Project in partnership with IHC
Vessel blocks built in the UCN Açu and at Brazilian shipyards
Main equipment packages contracted and under construction
(Navigation and Communication, Generation and Propeller,
PLSV positioned by the Super Crane over blocks
Electrical system and Launching)
2
Lloyd’s Register contracted to monitor and certify the
construction
Construction milestones:
Beginning of construction (1H13)
Load out (1Q14)
Quay tests and sea trials (4Q14)
20
Packages integration and tests performance on the PLSV
22. CURRENT ORDER BOOK
ESTIMATED PRICE CONSTRUCTION OSX LEASING
CLIENT UNIT CAPACITY DELIVERY*
(US$ MM) LOCATION & SERVICES
OGX FPSO OSX-1 80K bopd 610 OK SAMSUNG, KOREA
P
OGX FPSO OSX-2 100K bopd 775 3Q13 KEPPEL, SINGAPORE
P
OGX FPSO OSX-3 100K bopd 800 3Q13 JURONG, SINGAPORE
P
OGX FPSO OSX-4 Expecting Technical Specifications from Client OSX, BRAZIL
P
OGX FPSO OSX-5 Expecting Technical Specifications from Client OSX, BRAZIL
P
OGX WHP-1 30 wells 400-450 2Q14 TECHINT, BRAZIL
P
OGX WHP-2 30 wells 400-450 4Q13 TECHINT, BRAZIL P
OGX WHP-3 Expecting Technical Specifications from Client OSX, BRAZIL P
OGX WHP-4 Expecting Technical Specifications from Client OSX, BRAZIL P
SAPURA PLSV N/A 263 4Q14 OSX, BRAZIL
KINGFISH 11 MRs N/A 732 2Q15 - 4Q17 OSX, BRAZIL
PETROBRAS 2 FPSOs 150K bopd 900¹ 3Q16 - 3Q17 OSX, BRAZIL
* Delivery at the shipyard (ex-installation)
1- OSX with a 49% stake of total contract
22
24. FPSO OSX-1: HIGH OPERATIONAL EFFICIENCY
Leasing and O&M contracts with OGX for a period of 20 years
Operational Efficiency (OSX Services) Certifications
Certified by BSI (British Standard Institution)
* ABNT NBR: ISO 9001 Quality Management
ABNT NBR: ISO 14001 Environmental Management
OHSAS 18001: Health and Safety Systems in
the workplace
Age (crew) Years of experience 1st oil produced on 31/Jan/12 &
(crew) 1st offloading on 28/Mar/12
* Includes Operational Efficiency results for months of February and March only 24
25. FPSO OSX-2
Leasing and O&M contracts with OGX for a period of 20 years
Construction Contract Debt commitment
■ EPCI contract signed with SBM ■ Facility agreement: US$ 850 million (12 years, LIBOR +4,41% p.a.)
■ Construction of the vessel, turret and ■ Syndicated bank loan: ING, Itaú-BBA and Santander (leaders), HSBC,
topside modules at the Keppel shipyard in Citibank, ABN Amro Bank, Banco do Brasil, NIBC and DnB Nor
Singapore
■ Lifting and installation of all modules
concluded
■Bare Boat contract signed between OSX &
OGX
■ Physical progress: approximately 90.53%
■ Estimated delivery: 3Q13
25
26. FPSO OSX-3
Leasing and O&M contracts with OGX for a period of 20 years
Construction Contract Debt commitment
■ EPCI contract signed with MODEC ■ Financing: Senior Secured Bonds US$ 500 mm, maturity
March/2015 at an interest rate of 9.25% pa, payable quarterly
■ Conversion and construction of the hull at the
Jurong shipyard in Singapore ■ Global Coordinator, Joint Lead Manager and Bookrunner:
Pareto Securities and Joint Lead Manager and Bookrunner: DNB
■ Lifting and installation of all modules concluded
Markets
■Integration of turret head with chain table module
concluded
■Physical progress: approximately 90.42%
■ Estimated delivery: 3Q13
26
27. FPSOs OSX-4 & OSX-5
Hull designated for OSX-4 Hull designated for OSX-5
Milestones achieved and next steps
The “Gemini Star” and “Suhail Star” Very Large Crude Carriers (VLCCs) will be used in the conversion of the hulls of FPSOs OSX-4
and OSX-5. The Concept Design, Front End Engineering Development (FEED), and Detailed Design for the Process Plants are
following the OSX FLEX Concept. As informed in the previously mentioned order book, OSX awaits technical specifications from its
client OGX regarding characteristics of these units.
Regarding FPSO OSX-4:
■Basic engineering project concluded
■Generator’s and water injection modules with purchase orders placed
■Remaining main equipment’s and services with purchase orders under negotiation
■Hull survey completed
27
28. PETROBRAS CONTRACT: 2 REPLICABLE FPSOs
Integration of FPSOs P-67 and P-70, with an option to integrate
P-72 or P-73
Main highlights:
Contract signed on 09/Aug/2012
Contract price: ~US$ 900 million
Partnership Mendes Júnior Trading e Engenharia S/A (51%) & OSX Construção Naval S/A (49%)
Scope: Integration and construction of various modules at the OSX Açu Shipbuilding Unit
Delivery date:
P-67: 3Q 2016
P-70: 3Q 2017
Option to contract the integration of the third FPSO (P-72 or P-73) in up to 18 months from contract
signature by Petrobras, through its subsidiary TUPI B.V.
Processing capacity: 150K bopd
Storage capacity: 1.6MM bbl
28
30. WELL HEAD PLATFORMS
WHP-1 and WHP-2
■ Engineering, Procurement, Construction and Installation (EPCI) agreement with Techint Engenharia e Construção S.A. for WHP-
1 and WHP-2 to be chartered and operated by subsidiaries of OSX to its client OGX in the Campos Basin. WHP-1 will be connected
to FPSO OSX-2 and WHP-2 to FPSO-OSX-3
■ Development of the Basic Project for the jacket and topside by TECHNIP, subcontracted by TECHINT. Contract signed with
Techint
■ Acquisition from TTS/CAMERON of a Drilling Package Unit (DPU) for each of the Units. Project underway.
■ Estimated delivery WHP-1: 2Q 2014
■ Estimated delivery WHP-2: 4Q 2013
WHP-3 and WHP-4
■ Both WHPs were ordered by client OGX to be chartered and operated by OSX subsidiaries. WHP-3 will be connected to FPSO
OSX-4 and WHP-4 to FPSO-OSX-5. As informed in the previously mentioned order book, OSX awaits technical specifications from
its client OGX regarding characteristics of these units.
30
36. ITN- INSTITUTE OF NAVAL TECHNOLOGY
Professional Training Program in Shipbuilding
Qualifying the local population PHASE I Qualification and Training
Approx.
City
distance
Work force Population PHASE II Training “on the job”
São João da Barra 20 Km 6,000 33,000 Training activities, technical assistance and supervision of operations in
Campos 40 Km 92. 000 460,000 partnership with Hyundai (40 Korean specialists based in Brazil for 5
years)
Radius Up to 50 Km 98,000 493,000
80 employees from UCN Açu to be trained at Hyundai’s shipyard in Ulsan,
Korea (first group of 22 employees sent in November/12)
Quissamã 75 Km 3000 20,000
Construction of ITN at UCN Açu, with an area of approximately 1,800 m2
São Francisco 95 Km 3,000 41,000
São Fidelis 100 Km 5,000 37,000
Facilities for workshops, labs, classrooms, auditorium and library
Macaé 130 Km 113,000 206,000 Implementation of systems for simulation of operations of offshore units
Radius 2 Up to 150 Km 222,000 797,000 PHASE III Supply Chain Strengthening
Identification of suppliers that have the potential to develop new
materials, equipment and innovative work methodologies, focused on
OSX’s potential demand
PHASE IV Technological Innovation
Establish partnerships with Brazilian and international academic
institutions, focused on the development and assimilation of new
technologies 36
37. ITN- INSTITUTE OF NAVAL TECHNOLOGY
Phase I - Qualification and Training
More than 19 thousand candidates applied for
3,100 places in 23 free courses offered in Metal-
Mechanics, Electricity, Metallurgy,
Automation/Instrumentation, O&G, Automotive
Operations, Civil Construction and Management
Use of SENAI’s facilities and faculty in the city of
Campos, as well as mobile units in São João da
Students visiting UCN Açu Students in a welding class
Barra
Scholarships providing financial assistance, food
and transportation
Investment in training: R$ 12.7 million
Classes began in June, 2012
880 students being qualified
221 students graduated in the ITN courses with
Student of the electrical class Graduation Ceremony of 1st class
193 already hired and being trained at the
shipyard 37
38. FINANCIAL PERFORMANCE
R$ 40.1 MM EBITDA in 2012
OSX Brasil S.A.
In millions of BRL
2012 2011
Gross Revenue - -
Taxes - -
Net Revenue - -
COGS - -
Consolidated
Op. Income - -
G&A (51.0) (46.6)
2012 2011
EBITDA (51.0) (46.6) Gross Rev 448.8 154.2
Taxes (15.0) (10.0)
Net Revenue 433.8 144.2
COGS (209.0) (81.4)
Op. Income 224.8 62.8
Shipbuilding Leasing O&M Services G&A (184.7) (112.8)
2012 2011 2012 2011 2012 2011 EBITDA 40.1 (50.0)
Gross Rev 73.2 - Gross Rev 203.9 51.6 Gross Rev 171.7 102.6
Taxes - - Taxes - - Taxes (15.0) (10.0)
Net Revenue 73.2 - Net Revenue 203.9 51.6 Net Revenue 156.7 92.6
COGS (65.9) - COGS (14.9) (7.6) COGS (128.2) (73.8)
Op. Income 7.3 - Op. Income 189.0 44.0 Op. Income 28.5 18.8
G&A (111.3) (54.3) G&A (5.0) (1.5) G&A (17.4) (10.4)
EBITDA (104.0) (54.3) EBITDA 184.0 42.5 EBITDA 11.1 8.4
38
