Professional Documents
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INFRASTRUCTURE
29TH AUGUST, 2014
IMPORTANT
INFORMATION
"either the Company the Directors the initiators nor any of their respective officers members employees
representatives or agents accepts any responsibility or liability whatsoever for the information provided and the
Investor must satisfy themselves on any sources of information used in making their decision.
2
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prospective Well-informed Investors and is circulated to a limited number of Well-informed Investors on a confidential
basis solely for the purpose of evaluating an investment in the Company. This Issuing Document supersede and replaces
any other information provided by the initiators and its representatives and agents in respect of the Company.
However the document is provided for information only and is not intended to be and must not alone be taken as the
basis for an investment decision.
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to persons $other than professional advisers% who are not directly concerned with any investors decision regarding me
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agrees that such information is confidential. "either it nor any of its employees or advisers will use the information for
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acknowledges that this Document may not be photocopied reproduced or distributed to others without the prior written
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representatives or agents as investment legal accounting regulatory or ta' advice. Investors should conduct their own
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an independent evaluation of such investment including the applicability of any legal sales or investment restrictions
without reliance on the Company the Directors the initiators or any of their respective officers members
employees representatives or agents.
CONTENTS
). #'ecutive *ummary +
!. ,anagement Team -
#. The Competition 45
6. 2roduct )nalysis 44
7. !usiness Case for 6unding 48
,. *ummary 43
3
;. International *tandards and Insurance 4-
I. 2roposed funding structure 4+
H. 6inancial 2ro9ections and )ssumptions 4:
<. Timelines = #'it 2lans 4>
C. ,arket .pportunity /
D. 0ni&ue 1alue 2roposition 3
A. EXECUTIVE
SUMMARY
)s scientific research and the resulting global legislations are providing a greater impetus towards the use
of cleaner energy sources Wind energy is proving to be one of the key resources that is making a significant
contributions towards this initiative. In #urope alone the cumulative installed wind power capacity in 854: was 44/.:
7W? which accounted for 4:@ of the total power capacity of the continent. 6or both technical and aesthetic
considerations offshore wind farms are increasingly becoming the preferred venues for the generation of wind energy. )s
of 854: -.- 7W? of the total installed wind energy capacity was through offshore wind power stations. ,oreover the
offshore wind power space represents an annual industrial investment of up to A-.+ billion currently in the #0.
6orecasts pro9ect investment to grow to
A4+.+ billion by 8585.
?*ourceD #W#)D Wind in 2ower E 854: #uropean *tatistics $6eb 854+%
??*ourceD Foland !erger Feport E .ffshore Wind Toward 8585 $)pril 854:%
.ffshore Wind industry
will increase from A / bn
in 854:
to A 4+.+ bn annual
market by 8585??.
4
.ffshore wind developments are moving further into deeper waters with e'treme weather conditions to ensure utilisation
of stronger and more stable wind resources. The challenge of providing support during construction operations and
maintenance is growing in concurrence with the oil B gas industry. 2ersonnel access solutions need to be safe fast and
cost effective. Cack of these elements particularly tolerance to adverse weather have been a ma9or contributor to
reduced operation efficiency in the past. Centurion ,arine !1 seeks to take advantage of this unsatisfied need in the
#uropean market and to engage in providing customised solutions for offshore wind farms.
EXECUTIVE
SUMMARY
&ut#h Marine &eve!opment Overseas BV '&M& Overseas( 'www$mmarine$#om(
An I)O*+,,- a##reite an NATO*!iste or.anisation with over -/ 0ears of experien#e in the bui!in." support an
supp!0 of a wie ran.e of #ommer#ia! an Nava! vesse!s$
Marine &eve!opment 1o!!an BV 'M&M BV( 'www$mhbv$n!(
An or.anisation ei#ate to the ori.ina! esi.n of mu!ti*purpose vesse!s an wor2boats of 3"/ * 4,M an !ar.er$
)hip0ar TRICO BV 'www$tri#obv$n!(
An shipbui!in. or.anisation en.a.e in the esi.n" #onstru#tion" outfittin. an repair of a variet0 of wor2 #!ass
vesse!s$
Centurion Marine BV is #urrent!0 see2in. an investor or a .roup of investors for a meium term funin.
!ine of 8 94$: mi!!ion to enab!e the bui!in. of vesse!s 't0pi#a!!0 maintenan#e support an a##ommoation vesse!s( in
orer to be ab!e to serve mu!tip!e #!ients in this .rowin. mar2et$ The funin. wou! be uti!ise for the #onstru#tion of
one #ustomise vesse! per 0ear over the next five 0ears" epenin. on #ustomer a#;uisition$ A part of the fun sha!! a!so
be a!!o#ate to the offsettin. of operationa! #osts or wor2in. #apita! re;uirements$ This strate.0 wi!! be uti!ise in
#apturin. a !eaership position in the offshore win farm so!utions mar2et$
<or an investor" this venture wou! provie a##ess to Centurion Marine=s offshore so!utions business an a!so the
renewab!e ener.0 mar2et" one of the few hi.h*.rowth inustria! se#tors in Europe$ >ith Centurion Marine" an investor
wou! have a partner with%
The #0 .W6 capacity is e'pected to nearly &uadruple $8/855 ,W% with 485 new .W6 installations
e'pected by 8585?.
#urope will remain the leading investment destination for .W6 installations with an estimated
investment of A4+.+ billion in 8585. #urope will attract nearly /5@ of the worldHs total investment???.
4@
:@
:@
UK
Denmark
Germany
Belgium
Netherlands
Seden
Others
Total
>@
4:
@
GG
@
4/
@
Current Installed Capacity
??*ourceD #W#)D Wind in 2ower E 854: #uropean *tatistics $6eb 854+%
??*ourceD Foland !erger Feport E .ffshore Wind Toward 8585 $)pril 854:%
7ermany !elgium
and 0< are at the
fore-front of the
fastest growing
#uropean .W6
markets.
? *ourceD 7F* Fesearch offshore wind market outlook 854+-8585
7
Thus, supply of vessels for the OWF space is extremely lucrative on the following accounts:
Due to the fact that more and more OWFs will be built
in the coming years, the demand for modular vessels
will grow.
Besides the need of specialised vessels for the
Construction farms will also need specialised vessels
for the Operations & Maintenance Phase.
Centurion Marine BV intends to be a leading player in
addressing these market requirements through the
supply. of specially designed vessels.
CUSTOMER PAIN POINTS
Cost
The development of wind power plants is a highly capital-intensive exercise and is characterised by a low
margin business cycle. Thus, market players look to maintain a strict control over costs. For example,
contracting companies prefer to have a tailor-made vessel design with fuel-efficient vessels to undercut the
fuel and day-rate costs when operating on an yearly contract.
Accessibility & Safety
As the use of far-shore sites increases, easy accessibility to the site for personnel at any time of the day is
becoming vital to ensure efficient and quick operations. Hence, contracting companies are increasingly
presenting a desire for infield, low-budget, accommodation service vessels to better safety and accessibility.
Adaptability to high sea-state conditions
One of the major issues faced by contracting companies at far-shores is the inability to transport personnel
& equipment to site and to carry out operations during adverse conditions
MARKET
OPPORTUNITY
Major customer
needs: Low-cost,
Easy accessibility,
Safety and
adaptability to high
sea-states
Source: Roland Berger Report Offshore Wind Toward 2020 (April 2013)
8
D. UNI2UE VALUE
PROPOSITION
The solution proposed by Centurion ,arine !1 address all these pain points and is uni&ue to the
industry. Hence there are no direct competitors to this solution in the market at this time. However traditional vessel
charter companies could provide competition in this space. However this threat is mitigated by the uni&ue value
proposition offered by Centurion ,arineD
Cost #fficient
Customi(ed Design
6uel #fficient
#'pertise in *hip
management
Centurion ,arine !1
differentiates itself from
the competition by
providing uni&ue
solutions for its
customer.
E. THE
COMPETITION
charter rateD A
C, Daily
Customi(ed and
KK
5
)verage competitor
daily
8-/55
Charter FateD A
4G555
technologically
advanced designs
C3-$"%"4 T-*5
C33*1,$4
T%!*
C167$4$4
S$1"%1$' B'7$ A'+* E,,* F4$(*
Daily Charter
Fate
A 8:555 A 8G555 A 4G555 A 4+555 A 85555
Differentiation
factor
.ver si(ed only
used during .W6
construction phase
.ver si(ed high
fuel
+5 years old
vessel small
working deck at
.nly D2 4
Class limited to
4- pa'. only
high fuel
consumption
Cevel of
Competition
Cow Cow High Cow )verage
C3-$"%"4 K%1/,3 +
F%+$
VOS S8$$" VOS
S*"%!+*#"%1
S8%&$4 E'!$
M*4%$
L#. R*/
Daily Charter
Fate
A 85555 A 88555 A 4-555 A 4>555 A ::555
Differentiation
factor
High 6uel
consumption
J 455@ higher
then C,
D24 Class $ can
not be operated
within .W6 %
Cevel of
Competition
)verage )verage )verage )verage Cow
C3-$"%"4 S$*&$, P4%1#$ T%!* 9*44%4 U1%1 M*1"* SD N4".$41
R%:$4
A!"4$*
Daily Charter
Fate
A -/G55 A ::555 A 83555 A :3555 A 8-8G5
Differentiation
factor
.ver si(ed used
during
construction phase
only
.ver si(ed used
during
construction phase
only
High 6uel
consumption
J 455@ higher
than C,
.ver si(ed used
during
construction phase
only
.ver si(ed
used during
construction
phase only
Cevel of
Competition
Cow Cow )verage Cow Cow
consumption
$J455@ of C,
Design %
(G5@ more than
C, %
8G pa'. only
high fuel
consumption
885,8
$ C, :G5,8 %
.ver si(ed used
during construction
phase only
(J455@ than C,
design%
High fuel
consumption
4> pa'. only high
fuel consumption
J25%
10
F. PRODUCT
ANALYSIS
H%/. S"*1,*4,!
The speciali(ed vessel is built
under C,Hs own shipyard and
trained management high &uality
Dutch standards ensuring longer
life time and lower life cycle
costs as compared to its
competition.
F7$' E++%#%$1#(
The vessel houses a new generation
Kdiesel electricL propulsion system
offering fuel consumption at 85-
G5@ lower than similar vessels in
the competition.
M7'"%0-74-!$ V$!!$'
4. The only one implementing a
totally new idea of how to launch=
recover the onboard daughter craft =
crew tender.
8. Windpark supply B Diving
support with F.1 capability.
:. KDynamic 2ositioning
Kcapability $D2-8% increasing
her market charter value.
+. Can be used in both offshore
wind and .il=7as industry
C!" A,:*1"*/$
The ability to design smart modular
vessels enables C, to reduce the
building costs by almost G5@
compared to similar competition.
Cower building costs results in a
lower charter day rates at :5- G5@
lower than market.
,ain advantages of
the vesselD
Cow-cost
construction
,ulti-purpose
!uilt with high
Dutch standards
Technologically
advanced fuel
efficient system
11
G. BUSINESS CASE
FOR FUNDING
)s per #uropean #nvironment )gency there will be a significant increase in demand for renewable
energy as a result of which there will be :5-+5 times increase till 8585 and 455 times increase till 85:5 in the
offshore wind farms installed capacity. #0 region targets 85@ primary energy consumption through wind farming.
This presents a perfect opportunity for Centurion ,arine to provide its offshore services and utili(e its e'pertise
towards the growth of this industry.
Centurion ,arine $C,% has proven e'cellence in ship management and understands the potential risks which entail
this sector. C, is developing a fuel efficient D2 vessel which provides a better economical option and competitive
rates to clients. The uni&ue value proposition of cost effective renting services e'pertise in ship management and all-
inclusive smart design vessel provides the right mi' for clients.
<ey services includeD
.perational e'penses have not been reduced due to economies of scale and sharing of resources.
Fevenues have been based on fi'ed price of A4G555 per day per vessel with addition of 4 vessel every year for G
years and minimum contract period of 4 year.
,ilestone payments from clients using !I,C. standard termsD payment at start every month with one month deposit.
Feturn to investor is considered at a rate of >@ interest $Industry standards% over a period of - years with principal
repayment. )dditional bonus of 45@ $appro'imately A +.:- ,% over complete investment
4G
45 #!ITD)
,argins
$,illions #uros%
G
-
The company is well placed with pipeline of pro9ects in place and has running costs that can be covered by
continuous revenue generation. The company also starts churning profits from Mear 4 itself due to its strong cost to
pricing model. The costs for business development and obtaining new contracts has been added into the pro9ected
financial pro9ections which can be reviewed by parties who wish to carry out the due diligence. With a good F.I
F.) and profit margins the company provides profitable sustainable growth.
) high F.I with strong
profit margins places the
C, at the fore-front
amongst its competitors.
ROI= 40.>?
A!!$" T741:$4 R*"%= >>?
ROA= 19?
A:/. P4+%" M*4/%1!= 29?
13
I. PROPOSED
FUNDING
STRUCTURE
!ased on the current level of net income generated MoM on current pricing and anticipated operational
costs the payback period for the first investment shall be under - years.
The following business case represents the proposed funding structure based on the revenue generation and profit
sharing model with the investorD
Initial funding re&uirement of A3.-4- ,illion for ship-building and start-up office e'penses.
!ased on 6igure below the MoM investments decreases in order to build new vessels.
Felease of funds to secure vessels based on new contracts
Fegular payments being made by the profitable business with agreed pre-order contracts in
place which substantially reduce the risk for the investor.
6inancial pro9ections have been made based on base case of same operational costs and pricing models. Hence
enhanced profitability will further reduce the funding re&uirements MoM.