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

In FY2007, the production capacity utilisation rate for our berthing area A decreased by approximately
30.0% as certain berths therein were temporarily shut down for a total of 820 berth days in 2007 for upgrading
works. These works were undertaken to strengthen the concrete flooring of the transfer area in berthing area A
in order to accommodate construction of larger vessels. At the same time, the maximum capacity for berthing
area B was increased by 228 berth days as a result of the expansion of the staging area in berthing area B
which created two new berths.
Inventory Management
Our inventory are steel plates and consumables maintained in our shipyard in PT Batamec. Minimal stock
is maintained by us as materials are generally procured based on specific project requirements.
We maintain our inventory level based on delivery lead-time and anticipated market demand derived from
various sources such as market trends and feedback from our ship brokers.
Our stocks are stated at the lower of cost (determined on a weighted average basis) and net realisable
value. Our stocks are monitored through a computerised inventory system that tracks in-coming and out-going
stocks. Our procurement team reviews monthly stock reports prepared by our inventory control personnel and
makes purchases where necessary to maintain the desired stock level.
We conduct internal cyclical monthly stock take as part of our review and preparation of our monthly
stock report on a sample product basis. We perform annual stock take in the presence of our external auditors.
Marketing Activities
Yaw Chee Siew, our Executive Chairman, and Lee Kok Wah, our Group Managing Director, are the
principal key management officers responsible for leading our marketing efforts.
New customers are the result of referrals, satisfied customers, our shipyard’s reputation, experience and
track record as well as the marketing efforts of our management team. We also work closely with our network
of ship brokers to prospect for new contacts.
Our marketing team is involved in identifying new markets in line with our customer base and our
targeted geographical expansion. We believe that providing quality and reliable service and warranty support
to our customers are key contributors to our success in securing orders. We establish links with industry
players by participating in trade shows, seminars and conferences organised by trade experts, our customers or
our suppliers. Our marketing tools include identifying new customers through industry magazines and referrals.
In addition, we have a corporate website, which includes details of new vessels built and in the pipeline and
the various services offered by us.
We plan to increase public awareness of our activities in the overseas market through advertisement in
major trade magazines and trade directories in Norway, the Middle East and Asia.
Research and Development
We do not conduct any material research and development activities.
Intellectual Property
We have not registered any patents or trademarks and are not materially dependent upon any patent,
patent rights, licences, processes, intellectual property or other intangible assets for our business. Where
appropriate, we will use patent and copyright laws to protect our intellectual property rights arising from any
new technological process developed by us.
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