2016 Pareto Oil & Offshore Conference 14 Sep 2015 Oslo, Norway - - PowerPoint PPT Presentation

2016 Pareto Oil & Offshore Conference – 14 Sep 2015 – Oslo, Norway

Bart Heijermans - CEO

Forward-Looking Statements

This presentation contains certain statements that may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A

• f the Securities Act and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All

statements, other than statements of historical facts, are forward-looking statements. These include statements that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, general industry conditions, future results of the Company’s operations, capital expenditures, asset sales, expansion and growth opportunities, financing activities, debt repayment and other such matters. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Although the Company believes that its expectations stated in this presentation are based on reasonable assumptions, actual results may differ materially from those expressed or implied in the forward-looking statements. The forward-looking statements are subject to a number of known and unknown risks and uncertainties, including the performance of contracts by suppliers and customers; delays, costs and difficulties related to customer projects; actions by governmental and regulatory authorities; operating hazards and delays; employee management issues; local, national and worldwide economic conditions; uncertainties inherent in the exploration for and development of oil and gas; complexities of global political and economic developments; volatility of oil and gas prices and other risks. Each forward-looking statement speaks only as of the date of this presentation, and the Company undertakes no obligation to publicly update or revise any forward-looking statement.

Weathering the prolonged oil downturn

www.deepoceangroup.com 1

Weathering the prolonged oil downturn

www.deepoceangroup.com 2

Brief introduction to DeepOcean – a subsea services company

Survey & Seabed Mapping Seabed Intervention Subsea Installation IMR Decommissioning

Service lines

 A leading provider of integrated subsea services for oil & gas, renewables and interconnector customers  A market leader in diverless subsea IMR in the Greater North Sea  One of the most active independent cable installation and burial contractors in renewable industry  Focus on solving our customers’ problems  Recognized global brand for relentless customer focus and operational excellence having operated in the sector since the 1990s

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 Owned: 6  Chartered:12  40 ROVs  2 AUVs  5 ploughs  7 jet trenchers  4 mechanical cutters

Human Resources ROVs / AUVs Trenchers & Ploughs Vessels

 ~1,000 employees  ~100 full time agency

personnel / contractors

 11 offices in 7

countries Other Assets

 Module handling

systems (3 off)

 Geotechnical rig  Excavators / dredgers  Mattress frames  ROV tooling

Ownership

 Private company  Financial investors  Largest owner ~16%

• f shares

Financials

 2015 revenue of $411

million(1)

 2015 Adj. EBITDA of

$39 million(1)

 2015 Loss of $69.3

million

 Net debt of $40 million

at 31 Dec 2015

 Brazil  Ghana  Netherlands  Norway  Mexico  UAE  UK

Current Operations

Company factsheet

Notes: (1) Continued operations www.deepoceangroup.com

Confidential – Not for Public Dissemination

Operational vessels and offices

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Arbol Grande Edda Flora Edda Fauna Deep Vision Maersk Connector Volantis Maersk Recorder

Office locations Long term ROV operations on:  North Sea Giant (North Sea Shipping)  Normand Ferking (Solstad)  CBO Isabella (CBO)  Bourbon Astenix (Bourbon)

Atlantic Challenger Note: Exclude cold stacked vessels Deep Endeavour, Deep Wave, Deep Investigator and Walker1 Rem Ocean Havila Phoenix Chartered Owned Rem Forza Go Pegasus Deep Helder www.deepoceangroup.com 4 Edda Freya Dina Star

ROV Ops Trencher Ops

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The Good, the Bad and the Ugly

www.deepoceangroup.com

 Strong order intake year over year

• Several offshore renewables and interconnect projects contracts and new Tullow Ghana contract

 Contract margins are under pressure

• Previously weaker contractors and ship owners emerge from restructurings with significantly lower cost

bases

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Backlog up but margins under pressure

~ 50% of backlog is renewable and interconnector contracts

www.deepoceangroup.com

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Still securing many contracts but high fixed cost base depresses EBITDA

7 43 100 109 112 111

• 100
• 80
• 60
• 40
• 20

20 40 60 80 100 120 800 700 600 500 400 300 200 100 $/bbl $m 2016FC 2015 411 53 2014 632 2013 609 2012 513 2011 513

• Avg. oil price

Revenue

Revenue development 2011-2016FC

 Approx. 50% of 2015 revenue decline was caused by NOK weakening against USD  Danger of being squeezed between lower revenue and high fixed cost of which charter expense is a large component  Vessel charter cost to be reduced drastically to bring in line with current market rates and structure  Three owned vessels laid-up and three chartered vessels to be released in 2016  Headcount reductions from ~1,500 to ~1,000 in two years and SGA down 40%  ~86% of employees have agreed to a voluntary compensation reduction of 5.5%, a sign of a strong company culture

www.deepoceangroup.com

Need to restructure charter contracts or vessels will be returned to owners

? ?

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Successful start in Ghana Largest fleet of cable lay and trenchers IMR, survey and installation services Framework Agreements in GNS Offshore Renewables and Interconnectors Projects Africa

Business Foundations

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IMR, Survey and installation services Operations in Mexico

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Laser Survey

Core services for oil & gas customers

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Pipeline Inspection Installation of flexible risers XMAS Tree Installation Hydrate Remediation Decommissioning

Reduced demand at lower prices

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Innovation - Superior ROV

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0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200% Visual PI Acoustic PI ROV grid survey ROV route survey

 Large stable vehicle with optimal placement of sensors and latest generation survey instrumentation (MBEs, INS, lasers, video and still cameras)  Acoustic survey speed of up to 6 knots

Higher productivity resulting in lower cost for customer

Productivity improvement compared with 2014-15 Average

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Well positioned for offshore cables with installation vessels and world’s largest trencher fleet

Picking the right tool for the job

T3200 UT1  5 off  Pipeline  Cable  7 Off  ROV  Track Ploughs Jet trenchers Mechanical  4 Off  ROV  Track

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Maersk Connector

117 km of cable being spooled onto the 7000 te. carrousel

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Western Link Walney Race Bank Bligh Bank Nemo

 Value of DeepOcean’s contracts in excess of $350 million  Large number of DeepOcean’s assets have been deployed

• 6 vessels
• 6 trenching tools
• ROVs / Carrousels

Renewable and Interconnector Projects in execution phase

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www.deepoceangroup.com

 Rem Forza operational in Ghana since February 2015  3 year IMR Contract with Dina Star since March 2016  ROV Support contract on Bourbon Astenix PSV  Frogging with Rem Forza (18244 trips)  Installation of trees, jumpers, flying leads, manifolds  IMR works  Survey (incl. subsea laser)  Engineering Support  More than 50 Ghanaians are involved in our operations

Ghana Operations – Started in February 2015

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 Safety of all employees and other stakeholders  Restructuring charter contracts  Operational excellence  Finding and contracting new work  Collecting payments  Innovation

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Our focus

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Q&A

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