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

1. The Great Eastern Shipping Company LimitedCorporate Presentation &Financial Announcement FY 2001 8 May 2001

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

3. 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 Techno-commercial expertise Opportunities & Risk assessment Global customer base 50 years of experience Leveraged to enhance intl. trade Emphasis on safety & quality Strong financials Steady Cash Generator Increasing capital productivity

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

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

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

7. Shipping Business

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

9. 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

10. Redefining asset allocation * Includes 4 MBCs Committed capex of US$ 136 million for 3 Aframax tankers and one product tanker Rs mln

11. Global customer acceptability FY97 FY01

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

13. Operating highlights

14. Operating highlights Operating capacity in million DWT-days

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

16. Future outlook TANKERS Freight rates off Q4 peaks 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 Positive outlook through FY 2002 • Aggressive fleet additions: 12% of existing fleet on order • 30m DWT additions by 2002 • Reduced scrapping trends: <6m DWT in 2000 & YTD 2001 DRY BULK Supply overhang expected over next year • Weakening global economic prospects • 6% demand growth required to maintain existing freight rates Weakness expected in FY 2002

17. Revenue visibility FY02 operating capacity 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 Rs 674 million covered Rs 1057 million covered Rs 93 million covered

18. 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

19. Offshore Business

20. Offshore business matrix Drilling services Marine logistics Marine construction Port services Air logistics

21. Global sector outlook Trend of range-bound oil prices • Brent crude: FY2001 US$ 22-28 / barrel Buoyant gas prices • Indications of US exploring gas production indigenously Enhanced exploration activity • Increased demand for offshore services Offshore industry in consolidation phase • Emergence of limited number of strong players

22. Domestic sector outlook Drilling activity at core of the sector 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 GoI policy allows private & foreign investment in oil exploration ONGC experience leveraged for emerging opportunities • Enron, Hardy Oil, Cairn Energy, Niko Resources, Mosbacher Increasing capacity utilisation and greater demand visibility Composite services Attractive business

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

24. Offshore fleet profile Rs mln

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

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

27. 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 • Loss prevention by monitoring fleet safety performance Accolades • Recent awards from Enron and Hardy recognising efficient and safe practices

28. Operating highlights

29. Revenue visibility FY02 operating capacity covered • 57% of FY2001 revenues covered Rs.500 million covered Rs.198 million covered Rs.543 million covered Rs.10 million covered

30. Revenue visibility OSVs / Tugs Rig / Construction

31. 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

32. Financial performance

33. Financial overview • Market capitalisation: Rs. 7,178 million* • Cash generation of Rs. 3,782 million in FY2001 • 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

34. Financial performance

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

36. Operating highlights

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

38. Financial analysis

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

40. Strong cash generation expected Positive operating outlook Sale of non-core assets Buyback objectives 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

41. Concerns: pro-active redressal Equities trading No investments, liquidating existing portfolio Current exposure: Rs. 20 million Commodities trading Reduced substantially over last 3 years Close positions by FY 2002 Property exposure Demerged property division Pro-active liquidation of assets Forex exposure Cautious approach Exposure on operations driven forward cover High Equity base Buyback I: Rs. 1.5 billion; Equity base 16% Second tranche to be cleared at AGM Promoter participation Current shareholding 20% Creeping acquisition

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

43. Visit us at www.greatship.com