Ministry of Land, Infrastructure, Transport and Tourism Recent policy development in Japan -Human Resource Development -New Infrastructure Fund: “JOIN”

1.Efforts of Japanese Government to Nurture the Human Resources for Marine Development 2.MLIT Infrastructure Fund: “JOIN” Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development 1

Basic Act on Ocean Policy (April, 2007) CHAPTER Ⅳ Headquarters for Ocean Policy ￮ The Headquarters shall be headed by the Director-General of the Headquarters for Ocean Policy, the post which shall be served as Prime Minister. (Article 32(1)) Prime Minister Shinzo Abe, in the meeting of the Headquarters for Ocean Policy (December, 2014) CHAPTER Ⅲ Basic Measures ￮ The State, in order to promote the Ocean Industries and to strengthen the international competitiveness, shall take necessary measures with regard to the Ocean Industries to nurture and secure the human resources (abr.). （ Article 24) 2

Efforts of MLIT MLIT have started the following new policy measures in FY 2015 in order to increase offshore engineers. (1) Development of curricula and teaching materials for offshore engineering for Japanese university students and graduate students in close collaboration with industry and academia ©MODEC Design of offshore platforms STS operation (3) Establishment of a cooperation partnership with oversea companies, universities and organizations (2) Development of the simulation system including Dynamic Positioning (DP) 3

Development of the simulation system  National Maritime Research Institute is carrying out a study of the simulation system to train university students.  The interface of DP trainer shall be the same as what is used onboard offshore vessels and offshore units. 4

Establishment of overseas cooperation partnership To establish the system to encourage Japanese students to apply for an internship or studying abroad, JETRO commissioned by MLIT, is trying to contact to and discuss with overseas offshore related companies, universities and organizations. Overseas Cooperation Targets (draft) EuropeNorth AmericaLatin America /Asia NOC/IOC BP, Royal Dutch Shell, Statoil, Total Chevron, Conoco Phillips, Exxon Mobil Petrobras, Petronas Geophysical/ Oilfield Service Petroleum Geo-Services, Western Geco Schlumberger, Baker Hughes Halliburton EngineeringBW Offshore, Saipem,SBM Offshore, Technip Teekay 5

Establishment of overseas cooperation partnership EuropeNorth AmericaLatin America /Asia Fabricator/ Shipyard Aker Solutions National Oilwell Varco Keppel Offshore & Marine, Sembcorp Marine ClassDNV-GLABS University Norwegian Univ. of Science & Technology, Univ. of Bergen, Univ. of Stavanger, The Univ. of Aberdeen, Glasgow, Strathclyde, Edinburgh, Heriott-Watt Texas A&M Univ., The Univ. of Texas at Austin, Univ. of Houston Univ. Federal do Rio de Janeiro, Univ. de Sao Paulo, Shanghai Jiao Tong Univ., Singapore Univ. Subsea/ FOWT Fred Olsen, Seajacks, Subsea 7 FMC Technologies, Oceaneering Overseas Cooperation Targets (draft) 6

1.Efforts of Japanese Government to Nurture the Human Resources for Marine Development 2.MLIT Infrastructure Fund: “JOIN” Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development 7

8 1.What is JOIN ? 2.How does JOIN function? 3.JOIN’s focus to invest 4.How the funding by JOIN will work in the maritime sector? 5.Our Decision Making Process – How we become your Partner 6.Company Outline JOIN - Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development -

9 JOIN is one of the government-private sponsored fund in Japan, which specializes in overseas infrastructure investment.  JOIN provides equity financing to infrastructure projects worldwide.  JOIN works in collaboration with Japanese companies, banks, institutions (JICA, JBIC, NEXI, etc.). & government. *The law to establish JOIN was adopted by the National Diet in Feb *JOIN was established on 20 th October What is JOIN?

Disposition of Shares (when the project has achieved its initial purpose, etc.) 10 Infrastructure Projects （ SPC ） JICA / JBIC / NEXI / J-Banks Local Banks Host Governments  Concession  Support Master Plan / Developer E.P.C. O & M  Negotiation  Equity, etc.  Loan, etc. Local Companies  Loan  Equity J-Companies JOIN  Capital: 10.8 billion yen [as of April 2015] （ J-Gov:5.4 billion yen, J-Companies:5.4 billion yen)  Investment Capacity: 75.2 billion yen [FY2015] (includ. guarantee 34 billion yen)  Technical support / transfer  H.R. development  Management Support JOIN* will back up the financing of projects by holding a considerable portion of the equity of SPC. This equity finance scheme can improve bankability of the project. 2. How does JOIN function?

11 Logistics High-speed railways Urban railways / transport system Toll Roads Ships / Offshore units Port terminals Airport terminals Urban development 3. JOIN’s focus to invest

12 13 Where the funding can go Scope of funding - Owning/O&M SPC of the LNG Vessel - Owning/O&M SPC of the FPSO - Owning/O&M SPC of the PSV/AHTS Projects, to be supported by JOIN, need to be relevant to overseas transport* or urban/regional development. * ”Transport” includes not only “traditional” sea transport such as the operation of LNG vessels and container vessels, but also offshore projects such as the operation of FPSO, FLNG, PSV, AHTS, shuttle tankers and Logistics Hub. Debt Equity Japanese Investors JBIC Local Bank etc. JOIN Charter contract & O&M contract Example of lease financing structure Owning/O&M SPC Other Japanese banks LNG vessel PSVFPSO Oil & Gas Company 4. How the funding by JOIN will work in the maritime sector? Norwegian Investors

Marunouchi, Chiyoda-ku, Tokyo (Marunouchi-Nakadori Building, 9F) Location TEL: (main line) / FAX: Contact (* Japanese Version Only) Website Company Name Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN) Established October 20, President and CEO Takuma Hatano 6. Company Outline