Osx corporate presentation english_february [modo de compatibilidade]

CORPORATE PRESENTATION

Rio de Janeiro | February 2013 |

ORGANIZATIONAL STRUCTURE

2

EBX FREE FLOAT

OSX SERVIÇOSOSX LEASING

Integrated offshore E&P equipmentand services provider

77.50% 22.50%

Holding

90% 100% 100%

10%

HYUNDAI

Shipbuilding Unit Leasing Services

Controlling Shareholder & Management*

* 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

OSX PILLARS

3

Attractive Market Conditions in Brazil

Local Content Requirement

Demand from OGX

Strategic Partnership with Hyundai

Incentivized and Experienced Management Team

� More than 30 years experience, on average, in the E&P sector � US$ 30bn in projects and more than 50,000 people under management

� Approximately 70% of E&P industry capex supplied locally� Key for Brazil’s long-term social and economic development (285,000 jobs in 5 years)

� Priority Rights between OSX and OGX

� Partnership with the largest shipbuilder in the world� State-of-the-art technology and transfer of know-how� Construction of the largest shipyard of the America's in the Açu Superport Industrial District

� Expected oil and gas resources to increase to 100 Bboe, with announced investments of US$ 140bn plus

� Underserved domestic equipment & services market

Training (ITN)

� ITN –Institute of Naval Technology , partnerships with technical institutions and universities

� Absorption and application of Korean technology� Qualification of 3,100 technical personnel until 2013

ORGANOGRAM: EXPERIENCED & MOTIVATED TEAM

Paulo Ricardo (28)Exploration Campos & ES

Roberto Toledo (31)E&P Laboratory

Celso Martins (34)Onshore Basin

Ernani Porsche (33)International

Carlos Bellot (34) CEO

Environment, Health and Safety

Heraldo Albuquerque (27)

Danilo Baptista( 35)Shipyard Operations Officer

Ricardo Abi-Ramia (24)Operations, Engineering,

Leasing and Developing Officer

Luciano Porto (21) Chief Legal Officer

João Borges (20)Chief Financial Officer and Investor Relations Officer

xxxxx

Ivo Dworschak (35)Shipbuilding Unit

Management PlanningHeleno Barbosa (33)

4

ComunicaçãoRoberta Brandão

Commercial DepartmentRodrigo Lopes (25)

Recursos HumanosMonica Barbosa

Anna Kac (34)Engineering

Arnaldo Arcadier (34)Construction, Assembly and

Integration

Contratos e Afiliadas

Adilson Araújo (29)Contracts & Affiliates

Francisco Crisostomo (35)Operation & Production

Eónio Rocha (14)Logistics

Heleno Barbosa (33)New Projects/Well

Intervention

Antonio Maceiras (34)Training /ITN

More than 50 engineers with an average of 26 years experience

Total OSX employees: approx. 1,080Total employees involved in the

operations: approx. 3,460

Regina Ozorio (31)New Ventures

(xx) Years of experience

LOCAL CONTENT: RATIONALE AND EVOLUTIONRepresents a social & economic development strategyHas increased significantly in recent ANP bidding rounds

Notable Companies Committed to Local

Content

5

Local Content Requirement

■ Definition: minimum percentage of equipment and services contracted by the operator that must be supplied by local companies

■ Average of 70% in the production development phase

■ Component of the bid for acquisition of E&P Blocks

■ Certification of each item by inspection companies (guidelines set forth by Federal Government – MME)

■ Subject to severe penalties

Local Content Rationale

■ Boost local oil & gas equipment and services industry

■ Incentivize local technology development

■ Substantially increase employment and income

Local Content Evolution

Source: ANPNote (1) 8th ANP bidding round auction is still under discussion

25%

42%

28%39%

79%86%

74%69%

79%

27%

48%40%

54%

86%81%

77%84%

1st 2nd 3rd 4th 5th 6th 7th 8th (1) 9th 10th

Exploration Phase

Development Phase

BRAZILIAN SHIPYARDSLocal shipyards are not prepared to serve expected offshoreE&P equipment demand

Main Shipbuilders in Brazil

EAS ERG Brasfels Mauá MacLaren

1,6 0,5 0,5 0,4 0,1

160 60 50 36 6

Current Conditions of Brazilian ShipyardsMac Laren

Brasfels

Mauá

“A construction slot in OSX’s shipyard is worth more than gold”Source: Verax 6

Committed Slots

Site Area (km2)

Technology Partner

Steel Processing Capacity(Kton / year)

Focus on Offshore Equipment

Logistics

Labor Force

SHIPBUILDING UNIT

LOCALIZAÇÃO UCN AÇU: SUPERPORTO DO AÇUA One-Stop Shop for the Oil & Gas Industry

8

AÇU SUPERPORT

COMPLEXO INDUSTRIAL DO AÇUA New Cluster for the Offshore and Heavy Industry

AÇU INDUSTRIAL COMPLEX

90 km² Industrial Complex (1.5 x larger than Manhattan Island) 9

UCN AÇU: THE LARGEST SHIPYARD OF THE AMERICASPartnership 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

10

Main entrance

Office buildings

Production workshops (manufacturing ofblocks, structures, accessories and pipes)

Industrial facilities

Module assembly area

Jacket pre-assembly area

Jacket assembly area

Dry Dock

Quay

Quay Expansion

ALMAGESTO MANAGEMENT SYSTEM

Main processes*:Project “Almagesto” :

Instrumentalization of Shipbuilding main

processes and systems

Globally unprecedented systems integration in the

naval construction sector (partnership with SIX).

Project benefits:

Reduce errors in transmission of

information

Reduce stock and waste

Production and productivity real time

information

Precise allocation of production costs

*Illustration only 11

Focus on management processes

Planning &Programing

Engineering

Materials & Logistics

Processes and Managerial Information

Construction & Assembly

Manufacturing

AcquisitionsMaintenance & Facilities

EHS/EBP

Commissioning

UCN AÇU: SHIPBUILDING UNIT SCHEDULE

12

PACKAGES PROCUREMENT MOBILIZATION

REMOVAL OF VEGETATION 2Q11 2Q11

PREPARATION OF THE TERRAIN 3Q11 3Q11

NORTH QUAY AND JACKET'S AREA 1Q12 (LOI) 1Q12

DRY DOCK 1Q12 (LOI) 1Q12

SOUTH QUAY AND RESPECTIVE RETRO AREA 1Q12 (LOI) 1Q12

INDUSTRIAL BUILDINGS 3Q11 4Q11

UTILITIES AND INFRASTRUCTURE 3Q11 3Q11

ADMNISTRATIVE BUILDINGS 1Q13 1Q13

AUXILIARY BUILDINGS 1Q13 1Q13

ELECTROMECHANICAL ASSEMBLY 1Q13 1Q13

SUPERVISION SUPPORT 2Q11 2Q11

CONSTRUCTION SITE 3Q11 3Q11

BREAKWATER 1Q11 1Q11

DREDGING 3Q11 3Q11

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UCN AÇU: ESTIMATED PARTIAL DELIVERIES

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UCN SECTIONS READY 2012 2013 2014

SLOT 1 4th QUARTER - -

SLOT 2 - 1st QUARTER -

BEGINNING OF OPERATION OF NORTH AREA - 1st QUARTER -

MODULE ASSEMBLY AREA - 2nd QUARTER -

INDUSTRIAL FACILITIES - 2nd QUARTER -

SLOT 3 - 3rd QUARTER

SLOT 4 - 3rd QUARTER -

DRY DOCK RETRO AREA - 4th QUARTER -

PRE-ASSEMBLY AREA - 4th QUARTER -

SLOT 5 - 4th QUARTER -

COMPLETION OF CONSTRUCTION - - 2nd QUARTER

UCN AÇU: FINANCINGObtained from Fundo da Marinha Mercante (Merchant Marine Fund)

Credit facility already contracted: R$ 2.7 bn

Total tenure 21 years with a 42/36-month

grace period for amortization of principal and

36/30-month grace period for payment of interest

(BNDES/CEF) with an expected average interest

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)

2011 2012 20142013

41.3% 47.2% 3%8.5%

Capex distribution per year/activity

TOTAL OF APPROX.R$ 4.8 BN

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UCN AÇU: AERIAL VIEW

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UCN AÇU: AERIAL VIEW

17

Aerial view of the canal: January 2013

Box indicates where operation is set to begin in 1Q13

UCN AÇU: CONSTRUCTION OF THE CANAL

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Aerial view of the canal: January 2013

UCN AÇU: BUILDINGS

19

UCN AÇU: QUAY AND BUILDINGS

20

Pre-treatment & Cutting and Sub-production Workshops North quay area

Bending & Line Heating Workshop Steel Outfitting Workshop

FPSO

WHP

Drillship

PLSV

Tanker

TLWP

Floating, Production, Storage and Offloading Unit

Fixed drilling & production platforms ( Wellhead Platform)

Drilling units heavily demanded for ultra-deep water’s

Maritime Transportation Unit

Tension-Leg Wellhead PlatformPipe-Laying Support Vessel

PRODUCT PORTFOLIO

21Image courtesy of Hyundai Heavy IndustriesImage courtesy of IHC Offshore&Marine B.V.

Image courtesy of Hyundai Heavy IndustriesImage courtesy of Hyundai Heavy Industries

Image courtesy of Hyundai Heavy Industries

FPSO OSX-1 : Guanabara Bay, RJ, Brazil

UCN Açu designed and equipped to meet diverse orders

UCN AÇU: BEGINNING OF OPERATION IN 1Q13

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Beginning of construction of the Sapura PLSV

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,

Electrical system and Launching)

Lloyd’s Register contracted to monitor and certify the

construction

Construction milestones:

� Beginning of construction (1Q13)

� Load out (1Q14)

� Quay tests and sea trials (4Q14)

PLSV positioned by the Super Crane over blocks

Packages integration and tests performance on the PLSV

1

2

ORDER BOOK

CURRENT ORDER BOOK

24* Delivery at the shipyard (ex-installation)1- OSX with a 49% stake of total contract

CLIENT UNIT CAPACITYESTIMATED PRICE

(US$ MM)DELIVERY*

CONSTRUCTION

LOCATION

OSX LEASING

& SERVICES

OGX FPSO OSX-1 80K bopd 610 OK SAMSUNG, KOREA

OGX FPSO OSX-2 100K bopd 775 3Q13 KEPPEL, SINGAPORE

OGX FPSO OSX-3 100K bopd 800 3Q13 JURONG, SINGAPORE

OGX FPSO OSX-4 OSX, BRAZIL

OGX FPSO OSX-5 OSX, BRAZIL

OGX WHP-1 30 wells 400-450 2Q14 TECHINT, BRAZIL

OGX WHP-2 30 wells 400-450 4Q13 TECHINT, BRAZIL

OGX WHP-3 OSX, BRAZIL

OGX WHP-4 OSX, BRAZIL

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

Expecting Technical Specifications from Client




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FPSO OSX-1: HIGH OPERATIONAL EFFICIENCY

Operational Efficiency (OSX Services)

26

Leasing and O&M contracts with OGX for a period of 20 years

1st oil produced on 31/Jan/12 &

1st offloading on 28/Mar/12Age (crew) Years of experience

(crew)

14%

26%

28%

28%

4%20 to 30 years

30 to 40 years

40 to 50 years

50 to 60 years

Greater than orequal to 60years

49%

32%

19%Less than 20years

From 20 to 30years

Greater or equalto 30 years

OHSAS 18001: Health and Safety Systems in the workplace

Certifications

Certified by BSI (British Standard Institution)

ABNT NBR: ISO 14001 Environmental Management

ABNT NBR: ISO 9001 Quality Management

* Includes Operational Efficiency results for months of February and March only

*97%

99% 99.4% 98.7% 99,3%

1Q 2012 2Q 2012 3Q 2012 4Q 2012 January2013

27

Construction Contract

■ EPCI contract signed with SBM

■ Construction of the vessel, turret and

topside modules in progress at the Keppel

shipyard in Singapore

■ Main equipment purchase orders have

been placed

■ Bare Boat contract signed between OSX &

OGX

■ Physical progress: approximately 87%

■ Estimated delivery: 3Q13

Debt commitment

■ Facility agreement: US$ 850 million (12 years, LIBOR +4,41% p.a.)

■ Syndicated bank loan: ING, Itaú-BBA and Santander (leaders), HSBC,

Citibank, ABN Amro Bank, Banco do Brasil, NIBC and DnB Nor

FPSO OSX-2Leasing and O&M contracts with OGX for a period of 20 years

28

FPSO OSX-3Leasing and O&M contracts with OGX for a period of 20 years

Construction Contract

■ EPCI contract signed with MODEC

■ Conversion and construction of the hull in progress at the

Jurong shipyard in Singapore Main equipment purchase orders

have been placed

■ Physical progress: approximately 86%

■ Estimated delivery: 3Q13

Debt commitment

■ Financing: Senior Secured Bonds US$ 500 mm, maturity

March/2015 at an interest rate of 9.25% pa, payable quarterly

■ Global Coordinator, Joint Lead Manager and Bookrunner:

Pareto Securities and Joint Lead Manager and Bookrunner: DNB

Markets

FPSOs OSX-4 & OSX-5

29

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

PETROBRAS CONTRACT: 2 REPLICABLE FPSOsIntegration 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

30

32

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.

SAPURA CONTRACT: PIPE-LAYING SUPPORT VESSELUsed for laying and installing flexible pipelines on the seabed

Milestones:

� Contract signed on 24/Feb/2012

� Contract price: US$ 263 million

� Delivery date: 4Q 2014

Main characteristics:

� Length: 135 meters

� Breadth: 24 meters

� Depth: 10 meters

� Flexible lines traction capacity : 300 tons

� Flexible lines capacity: 2,500 tons

� Deadweight: 5,880 tons

34

TANKERs

KINGFISH CONTRACT: 11 MEDIUM RANGE TANKERSUsed for transportation of oil and clear products

Milestones:

� Contract signed on 9/Mar/2012

� Contract price: US$ 732 million

� Delivery date: 2Q 2015 - 4Q 2017

Main characteristics:

� Total length: 183 meters

� Breadth: 32.20 meters

� Depth: 18 meters

� Deadweight : 47,000 tons

36

PARTNERSHIP BRAZIL / KOREA

ITN: INSTITUTE OFNAVALTECHNOLOGY

ITN- INSTITUTE OF NAVAL TECHNOLOGYProfessional Training Program in Shipbuilding

PHASE I Qualification and Training

PHASE II Training “on the job”

� Training activities, technical assistance and supervision of operations inpartnership with Hyundai (40 Korean specialists based in Brazil for 5years)

� 80 employees from UCN Açu to be trained at Hyundai’s shipyard in Ulsan,Korea (first group of 22 employees sent in November/12)

� Construction of ITN at UCN Açu, with an area of approximately 1,800 m2

� Facilities for workshops, labs, classrooms, auditorium and library

� Implementation of systems for simulation of operations of offshore units

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 38

CityApprox.

distanceWork force Population

São João da Barra 20 Km 6,000 33,000

Campos 40 Km 92. 000 460,000

Radius Up to 50 Km 98,000 493,000

Quissamã 75 Km 3000 20,000

São Francisco 95 Km 3,000 41,000

São Fidelis 100 Km 5,000 37,000

Macaé 130 Km 113,000 206,000

Radius 2 Up to 150 Km 222,000 797,000

Qualifying the local population

ITN- INSTITUTE OF NAVAL TECHNOLOGYPhase I - Qualification and Training

39

� 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

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

193 already hired and being trained at the

shipyard

Students visiting UCN Açu Students in a welding class

Student of the electrical class Graduation Ceremony of 1st class

40

FINANCIAL PERFORMANCER$ 49.6 MM EBITDA in 9M12 with two business units already in operation

In millions of BRL

9M12 9M11 9M12 9M11 9M12 9M11

Gross Rev - - Gross Rev 153.9 - Gross Rev 137.6 70.9

Taxes - - Taxes - - Taxes (11.5) (6.8)

Net Rev - - Net Rev 153.9 - Net Rev 126.1 64.1

COGS - - COGS (14.6) - COGS (105.0) (50.2)

Op. Income - - Op. Income 139.3 - Op. Income 21.1 13.9

G&A (56.0) (34.0) G&A (3.4) (0.7) G&A (13.1) (7.8)

EBITDA (56.0) (34.0) EBITDA 135.9 (0.7) EBITDA 8.0 6.1

Shipbuilding Leasing O&M Services

9M12 9M11

Gross Revenue 291.5 70.9

Taxes (11.5) (6.8)

Net Revenue 280.0 64.1

COGS (119.6) (50.2)

Op. Income 160.4 13.9

G&A (110.8) (72.2)

EBITDA 49.6 (58.3)

Consolidated

9M12 9M11

Gross Revenue - -

Taxes - -

Net Revenue - -

COGS - -

Op. Income - -

G&A (38.3) (29.7)

EBITDA (38.3) (29.7)

OSX Brasil S.A.

+55 21 2163 9239

[email protected]

Osx corporate presentation english_february [modo de compatibilidade]

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