O TTO M ARINE L IMITED - Microsoft Internet Explorer - SGX

We believe we have an aggressive recruiting policy both laterally in the industry and at the entry level
from Indonesian universities. We intend to continue offering training programmes and mentoring
schemes to our staff and new recruits. In addition, we intend to offer competitive compensation
packages and career opportunities to performing engineers and middle-level managers.
Enhancing competitive cost structure through selective outsourcing
We strive to increase our capacity and maintain our competitive cost structure particularly in the
offshore support vessels market by outsourcing certain shipbuilding work to other regional shipyards in
South-east Asia and China. To ensure that our stringent procedures and quality controls are properly
observed, we deploy our personnel to such other shipyards to monitor the construction through to precommissioning
and delivery.
We expect that this strategy will enable us to build more vessels and to allocate our resources and
capacity more efficiently by allowing us to focus on more complex and sophisticated vessels in our
Batam shipyard.
In order to support the work that we outsource to shipyards in China, we established a representative
office in Foshan, China in 2007.
Our History
Our Company was incorporated in Singapore on 5 September 1979 under the Act as a private limited
company under the name “Otto Industrial Co (Pte) Ltd”. On 5 October 2006, our Company changed its name
to “Otto Marine Pte. Ltd.”. On 17 March 2008, it converted to a public limited company and changed its name
to “Otto Marine Limited”.
In 1980, our former Directors, Yaw Teck Seng (who is also the father of Yaw Chee Siew) and Taikichi
Ito, acquired 80.0% and 10.0% interest, respectively, in our Company from persons who were unrelated to the
Yaw Family. The remaining 10.0% was owned by two existing shareholders who were unrelated to the Yaw
Family. In 1981, we established a shipyard in Tuas, Singapore.
In 1986, we expanded our operations through a contractual arrangement with PT Batamas, an Indonesian
company owned by parties unrelated to the Yaw Family, to develop and operate a shipyard in Batam,
Indonesia. In 1994, PT Batamas incorporated a subsidiary named PT Batamec which acquired adjoining pieces
of land for the expansion of the shipyard. In 1996, we acquired an 80.0% shareholding in PT Batamec through
subscription of new shares, while PT Batamas retained the remaining 20.0%. See “Our Restructuring and
Corporate Structure”. We subsequently invested in additional facilities and equipment required for shipbuilding,
including the construction of the Syncrolift, workshops and gantry cranes at our shipyard in Batam. In
1998, PT Batamec also entered into a ten-year lease agreement for the shipyard, including machinery,
equipment, land and buildings from PT Batamas.
PT Batamas was declared insolvent in 2003 and all of its assets, including the shipyard in Batam and its
shares in PT Batamec, were acquired by PT Lestari in 2006. In December 2007, we acquired a 95% interest in
PT Lestari. See “Our Restructuring and Corporate Structure - Subscription for 95.0% of the issued shares in
PT Lestari (the “Lestari Restructuring”)”.
In 2001, Yaw Chee Siew, joined us and replaced Taikichi Ito as our Managing Director. In the same year,
Taikichi Ito sold all of his Shares to Yaw Chee Siew, but he remained on the board of our Company in a nonexecutive
role.
In 2002, we engaged Lee Kok Wah as a consultant, and in 2003, he became a Director. We also hired a
number of professionals into our technical and management team in order to focus on shipbuilding and on the
offshore marine industry. In 2004, we commenced construction of our first AHTS vessels, which were
delivered in 2005.
In 2004, we divested our shipyard in Tuas, Singapore to focus on our shipbuilding operations in Batam,
Indonesia.
In 2006, Yaw Chee Siew and his wholly-owned investment vehicle, CEO Technology Asia acquired a
88.8% interest in our company and Lee Kok Wah acquired a 10.0% interest in our Company by a subscription
of Shares.
In 2006, we secured orders for the construction of our first units of 10,000 bhp American Bureau of
Shipping (“ABS”) class AHTS DP2 vessels. These were our first orders of sophisticated deep water offshore
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