Analyst Presentation February 2019 ADES at a Glance WHO WE ARE - PowerPoint PPT Presentation

Analyst Presentation February 2019

ADES at a Glance WHO WE ARE • ADES International Holding (“ADES” or the “Group”) is a leading oil & gas drilling and production services provider Leading MENA- in the Middle East and North Africa (“MENA”) focused on creating value for E&P Players in the region based O&G Service • Constantly evolving portfolio of services that primarily Provider includes offshore and onshore contract drilling, workover and production services • ADES specializes in acquiring and refurbishing legacy ‘fit for purpose’ offshore assets which (among other cost - Differentiated Low- saving measures) enable the Group to offer competitive rates to its clients Cost Business • Backed by a capable in-house refurbishment and Model maintenance team, the Group benefits from a highly- skilled, low-cost workforce • The Group’s business revolves around providing tailored solutions and superior service to its clients Customer-Centric • ADES’s offering is characterized by its commitment to Approach global industry standards and ever-expanding services and solutions ADES INTERNATIONAL HOLDING | Analyst Presentation 2

Our Markets Expanding Our Regional Presence The new assets under ADES’ umbrella reinforce its position in the 4 Saudi Arabian and Algerian markets and enables the expansion of its 1 regional footprint into Kuwait. 2 3 3 +6 1 Algeria onshore rigs onshore rigs (1) 7 1 2 Egypt offshore rigs MOPU Existing Markets New Markets 6 11 3 KSA offshore rigs onshore rigs The Group currently operates in ADES executed two acquisitions, Egypt, Algeria, and the Kingdom of which while growing its presence Saudi Arabia, but plans to expand its significantly in the KSA, both offshore operations throughout the region and onshore, will also see the Group 12 4 to enter the onshore drilling space in Kuwait Kuwait onshore rigs (1) With the Kuwait and KSA segments of the Weatherford acquisition finalised in November and New markets Existing markets December 2018 respectively, ADES continues to work towards closing the acquisition of six remaining rigs in Algeria and delivery of 2 rigs in South Iraq ADES INTERNATIONAL HOLDING | Analyst Presentation 3

Highly Experienced Management Team ◼ Ph.D. Systems Engineeringand Control, Dr. Mohamed Farouk Case Western Reserve University, USA ✓ Senior Vice President , Invensys Chief Executive Officer Operations Management (Now Schneider M.Sc. Electrical Engineeringand ◼ Electric) Control , Faculty of Engineering, Cairo 27 Years University, Egypt ✓ Director, Global EngineeringExcellence 2012 B.Sc. Electrical Engineering ,Faculty of Centers ◼ Engineering, Cairo University, Egypt Aly Makhlouf Ahmed Mohy Hussein Badawy International Markets Director Egyptian Market GM Investor Relations Officer 28 Years 2014 24 Years 2009 10 Years 2016 Omar Saleh Mohamed Khalil Chief Strategy Officer VP Operations Country Manager Country Manager 12 Years 2016 44 Years 2012 Morcos William Shoukry El Sayed Legal Counsel VP Projects Project Manager Project Manager 14 Years 2015 38 Years 2013 Ahmed El Khatib Chief Financial Officer Country Financial Controller Country Financial Controller 21 Years 2017 Gamal Mohamed Ahmed HR Director Country HR Manager Country HR Manager 12 Years 2006 Mohamed Saad Maintenance Director Maintenance Superintendent Maintenance Superintendent 18 Years 2015 Amr Wafik HSE Director HSE Superintendent HSE Superintendent 22 Years 2009 Mohamed Hegawy Supply Chain Director Supply Chain Manager Supply Chain Manager 18 Years 2017 Mahmoud Habashi QMS Director QMS Manager QMS Manager 33 Years 2013 Ayman Ragai Chief Information Officer IT Manager IT Manager 27 Years 2016 Years of Experience Year Joined ADES 34 ADES INTERNATIONAL HOLDING | Analyst Presentation 4

Strategy ADES INTERNATIONAL HOLDING | Analyst Presentation 5

ADES – Strategy Cycle-Proof Business Model Focus on Low Cost Revenue (USD MN) 158 Activity remains higher due to lower break-even of Production Areas prices in the MENA region than the global average Such as MENA 134 127 Brent Crude (USD/bbl) 109 105 100 USD/bbl 101 USD/bbl USD/bbl Focus on Workover Focus on workover drilling and maintenance, mainly Drilling & constituting OPEX expenditure, which is typically less 75 cyclical than CAPEX expenditure Maintenance 91 USD/bbl 46 49 USD/bbl 78 ADES mainly assesses its potential acquisitions 51 USD/bbl 48 Considered through two methods: USD/bbl 19 USD/bbl ▪ Buy-to-Contract Model – Securing the contract 10 Approach to first, then finalising the acquisition of the asset Acquisitions ▪ Contract Acquisition Model – Acquiring chartered assets with on-going contracts 2011 2012 2013 2014 2015 2016 2017 9M2018 Backlog (USD) Backlog (USD) Backlog (USD) Backlog (USD) Backlog (USD) Backlog (USD) Backlog (USD) Backlog (USD) 501 MN 7 MN 67 MN 225 MN 427 MN 437 MN 78 MN 117 MN Target backlog of 2x net debt – ensuring maintenance Backlog 2014-17 of a minimum level of liquidity to pay its contractual Management obligations at all times ▼ 49% ▲ 110% ▲ 141% Brent Crude Group Revenue Group EBITDA (1) (1) Adjusted EBITDA - Operating profit for the year before depreciation and amortisation, employee benefit provision and other provisions and impairment of assets under construction under construction ADES INTERNATIONAL HOLDING | Analyst Presentation 6

Strong Competitor in the Region High Profile Client Base Solid Track Record World Class Qualifications Comprising a diverse range of leading oil companies Ranked #2 Offshore Jack-Up Driller in MENA (1) Adhering to Global best practice Memberships ADES’ diverse client relationships have been forged by seeking pre-qualification status to provide 20 drilling and workover services well before a contract is secure, thereby creating a significant 14 barrier to entry 12 IOCs ABS The Group’s 11 operational drilling ABS Class offshore fleet is either 8 ABS certified or Certificate currently pending recertification 8 ISO Certification 6 NOCs  ISO 9001:2008 Certification 6 >90% ISO 29001:2012 Certification  4 Fleet utilisation since 2012 Company Pre-Qualifications 4 Independents 4 3 - No. of Rigs Note (1): By number of rigs in November 2018; Note / Source: Clarkson's Research ADES INTERNATIONAL HOLDING | Analyst Presentation 7

Middle East Continues to be the Region with the Leading Oil Production and Proven Reserves Key Market Characteristics Distribution of Oil Production (1) Distribution of Proven Reserves (1) The Middle East is the leading oil-producing Middle East Middle East 5% 4%2% region globally with 8% 4% North America North America almost 40 % of the world’s 9% 34% 10% CIS CIS 38% proven reserves. The Africa Asia Pacific sector constitutes a 11% Asia Pacific 19% significant share of GDP Africa S. & Cent. America and is a major source of 14% S. & Cent. America Europe 20% 22% FDI Europe Oil Price Outlook (2) US$/bbl 140 While it is expected some degree of capital risk aversion in NOC / IOC budget decisions in response to recent commodity retrenchment, historically there is a budget growth correlation to prior year oil price (3) ( which 120 averaged US$70+/bbl, 22% 2018 YTD increase) 100 80 22% 60 40 20 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Average Monthly Historic Price Current Forward Forward 1 Month Ago Forward 3 Months Ago Forward 6 Months Ago Forward 1 Year Ago After recent volatility, oil price curve has moved back into Contango which would support continued investments in upstream sector (1) Source: Wood Mackenzie Production as of 2018, Reserves remaining as of Jan-19 ; (2) Source: Factset as of January 9, 2018; (3) Source: JPMorgan 2019 Oil Service Field Outlook ADES INTERNATIONAL HOLDING | Analyst Presentation 8