DOF Subsea Group DOF Subsea highlights 1 Attractive long-term - - PowerPoint PPT Presentation

Quarterly Presentation Q3 2017

DOF Subsea Group

DOF Subsea highlights

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Attractive long-term market fundamentals supporting continued demand for subsea offshore solutions A true global subsea IMR operator with strong project and execution capabilities Unique strategic position providing integrated life-of-field subsea services State-of-the-art subsea vessels, the world’s 4th largest ROV fleet and 1 287 subsea employees Strong order intake through the down cycle securing tangible near-term growth and highly attractive financial profile Resilient backlog as backbone for stable operating model – PLSV contracts in Brazil cementing strategic position

1 2 3 4 5 6

DOF Subsea

DOF Subsea Group at a glance

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2005

DOF Subsea established

NOK 3.3bn1)

Revenues YTD’17

1 2872)

Subsea employees worldwide Q3’17

NOK 16.3bn

Firm backlog Q3’17

263)

Subsea vessels

714)

ROVs

Modern

State-of-the-art asset base

Integrated

Supplier of subsea

• ffshore services

1) Note: According to management reporting 2) Note: Excluding marine crew 3) Note: Including newbuilds Skandi Olinda and Skandi Recife and chartered-in vessels Harvey Deep Sea and Skandi Chieftain 4) Note: Including 2 AUVs

DOF Subsea

11 11 13 16 18 21 24 25 26 27 24 21 24 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q3 2017

Owned vessels Chartered-in vessels Total

337 553 563 897 1014 1246 1492 1354 1667 1858 1566 1278 1287 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q3 2017 Focus on consolidation and streamlining of business operations to improve efficiency and competitiveness in weak market DOF Subsea established following the acquisition of Geoconsult. The Company was listed second half 2005. First Reserve acquires 49% of DOF Subsea, which in the following is delisted from the Oslo Stock Exchange Expanding organisation on the back of several large contract awards. Number of employees and vessels peaking at 1 858 and 27, respectively

Delivery of two newbuilds entering into long-term contracts Large and global organisation following multiple acquisitions from 2005-2010

2010

Century Subsea Covus Subsea CSL

2005

More than a decade of structural growth and consolidation

DOF Subsea 4

2008 2014 2016 2017

Development in number of Subsea Employees1) Development in number of vessels in operation2)

SEMAR Awarded four PLSV long-term contracts in joint venture with TechnipFMC

2013

SWG Offshore

1) Note: Marine crew not included 2) Note: Newbuilds not included 3) Note: Year-end numbers

Global footprint

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ATLANTIC NORTH AMERICA BRAZIL ASIA PACIFIC

Macaé Rio de Janeiro Buenos Aires Houston St John’s Aberdeen Bergen Luanda Singapore Manila Melbourne Jakarta Brunei Kuala Lumpur Darwin Perth

312 7 418 9 245 4 312 4

DOF Subsea

1) Note: Number of employees as at end of Q3’17, excluding marine crew 2) Note: Vessels in operation as at end of Q3’17, including 2 chartered-in vessels (not including newbuilds)

Several major and attractive contracts commencing in 2017

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ENI Angola Jan 2017

• IMR contract offshore Angola
• 16 months + 3x4 months
• ptions
• Scope comprising project

management, engineering, vessels and ROV services

• Long-term contract with Petrobras
• 18 months + 18 months options
• On contract with Petrobras since

2010

• Vessel owned in joint venture with

TechnipFMC

• First-pipe lay vessel built in Brazil
• Long-term contract with

Petrobras

• 8 years + 8 years options
• Vessel owned in joint venture

with TechnipFMC

• Built in Norway with 650t VLS
• Long-term IMR contract
• ffshore Eastern Canada
• 10 years + 10 years options
• IMR scope comprising project

management, engineering, vessel and ROV services

• High strategic importance

through strengthened presence in the Canadian market

• Long-term FLNG IMR contract

awarded in Australia with Shell

• 5 years + 4 years options
• IMR scope comprising project

management, engineering, logistics, vessel and ROV services

Skandi Vitoria Jan 2017 Skandi Buzios Apr 2017 Husky Energy Jul 2017 Prelude FLNG Nov 2017

DOF Subsea

Two business segments

DOF Subsea 7

DOF Subsea Group Long-term Chartering1)

Revenues YTD2) NOK 1 025 million EBITDA YTD3) NOK 784 million ~77% margin Firm backlog4) NOK 12.4bn

1) Note: Long-term chartering comprises 5 PLSVs in operation, 2 PLSVs under construction, Skandi Acergy and Skandi Patagonia 2) Note: According to management reporting 3) Note: According to management reporting 4) Note: Firm backlog as at end of Q3’17 5) Note: Including 2 chartered-in vessels

2 newbuilds Q3’17 7 vessels in

• peration Q3’17

Long-term charters Vessel capabilities Capex spending

Subsea IMR Projects

Revenues YTD2) NOK 2 250 million EBITDA YTD3) NOK 221 million ~10% margin Firm backlog4) NOK 3.9bn

1 287 Employees Q3’17 17 vessels in

• peration5) Q3’17

Engineering capabilities Framework agreements Opex spending

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Numerous projects completed worldwide

Built a leading subsea projects division for over a decade

• Subsea project activity established with a global footprint in all key offshore regions
• High quality asset base leveraging unrivaled subsea and vessel operating competence

A clear action plan to pursue further opportunities

• Continue to increase the scope and complexity of operations

− Strengthen presence in selected geographies − Further build project backlog with core focus on IMR projects

Subsea IMR Projects

Selected Mooring projects – Last 5 years Selected IMR projects – Last 5 years

✓ Goliat Field support ENI (2016) ✓ Saipem CRX/Nene (2014) ✓ Call-off for Light Construction Services and Seabed Survey Services Statoil (2012-2015) ✓ Technip Frame agreement (2012-2015) ✓ ConocoPhillips ROV Services (2012 and onwards) ✓ Freeport McMoran IMR support (2013-2016) ✓ Saipem JSM Export Line support (2014-2015) ✓ ROV Support vessel Petrobras (2011 and onwards) ✓ Yinson OCTP FPSO Field Dev. (2016-2017) ✓ Bongkot Mooring Replacement PTTEP (2017) ✓ Raroa Mooring OMV (2016-2017) ✓ Gina Krog TMRS Teekay (2016) ✓ Catcher Mooring Installation BWO (2016) ✓ Goliat FPSO Marine Installation ENI (2011-2015) ✓ Lam Son Mooring Installation PTSC (2014) ✓ Knarr Mooring Project Teekay (2013-2014) ✓ Banff Re-instatement Project Teekay (2013-2014)

DOF Subsea

Selected contracts included in backlog

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Location Client Scope Commencement Duration Angola ENI Angola IMR 2017 16 months + 12 months Eastern Canada Husky Energy IMR 2017 10 years + 10 years Prelude Australia Shell Australia IMR 2017 5 years + 4 years Brazil Petrobras Inspection 2016 1 year + 1 year Gorgon, Janz and Wheatstone Chevron Australia IMR 2015 3 years + 2 years Malampaya Shell Philippines IMR 2014 7 years + 3 years Brazil Petrobras IMR 2011 6.5 years + 4 years North Sea Conoco Phillips IMR 2011 8 years + 13 years

Subsea IMR Projects

North America Gradually built up the region, becoming a top three supplier of IMR services in the GoM Brazil Strong position being one

• f the major suppliers of

IMR services North Sea / Atlantic Leading supplier of mooring services in the North Sea and West Africa Asia Pacific Leading supplier of IMR services in the region

DOF Subsea

DOF Subsea provides state-of-the-art vessels to leading players

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Skandi Acergy Skandi Acu Skandi Africa Skandi Niteroi Skandi Patagonia Skandi Vitoria Skandi Buzios Skandi Recife Skandi Olinda

Day-rate based

Remuneration

Strong long-term contract coverage

Contracts

High-end vessels operating advanced subsea projects for third party EPCI contractors

Operations Selected clients Construction support vessel Construction & pipe laying vessel Construction & pipe laying vessel Construction & pipe laying vessel Construction & pipe laying vessel Construction & pipe laying vessel Construction & pipe laying vessel Dive support vessel Construction & pipe laying vessel

7 vessels in

• peration

2 contracted newbuilds NOK 12.4bn firm backlog per Q3’17

Long-term Chartering

DOF Subsea

15,5 16 17 21,5 18,9 2012 2013 2014 2015 2016

Key financials1)

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Revenue EBITDA2) Backlog (excl. options)

5 249 6 579 7 422 7 251 5 426 2012 2013 2014 2015 2016 1 799 1 949 2 097 2 041 1 733 2012 2013 2014 2015 2016 NOK million NOK million NOK billion

1) Note: Figures according to management reporting 2) Note: EBITDA excl. profit from sale of non-current assets

DOF Subsea

3rd Quarter 2017

Highlights Q3 2017

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• Raymond P. Semple was appointed as Chief Operating Officer (COO) in October 2017
• The Atlantic region was awarded a contract on an offshore wind farm, securing 60 days of utilisation for Skandi Neptune in Q4
• The North America region was awarded a contract for the provision of survey, ROV and vessel services in the Gulf of Mexico, securing 135 days
• f vessel utilisation in Q4 2017 and Q1 2018 for Harvey Deep Sea and Skandi Achiever
• Skandi Darwin commenced its charter contract with the Asia Pacific region, and she will commence the Shell Prelude IMR contract ultimo

November

• In July, Skandi Vinland commenced the 10-year IMR contract with Husky Energy off the East Coast of Canada
• Skandi Constructor was awarded a contract by Siemens on the Galloper Offshore Wind Farm Project in the North Sea. The contract secures

utilisation for the vessel until the end of the year

• Fugro extended the time charter contract for Skandi Carla until end of October 2019
• Petrobras extended the contract for Skandi Salvador by 6 months from August 2017
• The Asia Pacific region and the Atlantic region were awarded several contracts and work under existing frame agreements, securing utilisation for

the vessels Skandi Singapore, Skandi Hercules and Skandi Neptune in Q3 and into Q4 2017

• Skandi Skansen was awarded a 90-day contract in the Mediterranean with commencement in Q4 2017

Subsea IMR Projects Events after balance date

DOF Subsea

Subsea IMR Projects performance

Weak project performance and low vessel utilisation for Harvey Deep Sea, Skandi Achiever and Skandi Chieftain in the North America region YTD 2017 Backlog and contract coverage for the rest of 2017 indicate improved performance for the rest of the year:

• Charter extension at renegotiated rate and >70% contract coverage

through Q1 2018 for chartered-in JAC vessel Harvey Deep Sea

• Start-up of 10-year IMR contract with Husky Energy off the East Coast
• f Canada
• Contract award for the provision of survey, ROV and vessel services in

the Gulf of Mexico, securing utilisation for Harvey Deep Sea and Skandi Achiever in Q4 2017 and Q1 2018 Weak project performance and low vessel utilisation for Skandi Hercules, Skandi Singapore and Geoholm in the APAC region during Q3 2017 Contract awards and project start-ups indicate improved performance for the rest of the year:

• Award of several call-offs and work under existing frame agreements,

securing utilisation for Skandi Singapore and Skandi Hercules in Q4 2017

• Higher utilisation for Geoholm in Q4 2017
• Skandi Darwin on contract mid-October and will commence Shell

Prelude IMR contract ultimo November DOF Subsea 14

APAC region North America region

Harvey Deep Sea Skandi Achiever Skandi Chieftain Skandi Singapore Geoholm Skandi Hercules

Condensed Profit & Loss1)

DOF Subsea 15

1) Note: Financial statement according to IFRS. Condensed financial statement according to management reporting is included in the DOF Subsea Quarterly Financial Report

Condensed Balance Sheet1)

DOF Subsea 16

1) Note: Financial statement according to IFRS. Condensed financial statement according to management reporting is included in the DOF Subsea Quarterly Financial Report

Quarterly performance1)

DOF Subsea 17

1) Note: Figures according to management reporting, and excluding profit from sale of non-current assets

0% 5% 10% 15% 20% 25% 30% 35% 40%

• 500

1 000 1 500 2 000 2 500

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

EBITDA margin NOK million

Operating income EBITDA EBITDA margin

NOK million

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Operating income 1 804 1 871 1 530 1 963 1 904 2 025 1 656 1 962 1 991 1 642 1 406 1 660 1 232 1 128 982 1 199 1 093 EBITDA 595 550 502 543 552 502 458 515 553 516 456 510 447 320 279 400 332 EBITDA margin 33,0% 29,4% 32,8% 27,7% 29,0% 24,8% 27,7% 26,2% 27,8% 31,4% 32,4% 30,7% 36,3% 28,4% 28,4% 33,4% 30,4% Current assets 3 119 3 470 3 247 3 252 2 998 4 223 3 414 3 414 3 674 3 752 2 900 3 010 2 742 2 483 2 808 2 595 2 501 Non-current assets 16 330 16 340 16 012 16 151 16 215 15 796 16 726 16 578 16 447 16 818 17 652 18 206 18 514 18 043 18 087 18 428 17 926 Total assets 19 450 19 810 19 258 19 403 19 213 20 019 20 140 19 992 20 121 20 570 20 552 21 216 21 256 20 526 20 896 21 023 20 427 Current liabilities 2 808 3 167 3 470 3 741 3 607 4 505 4 139 4 577 4 492 3 650 2 991 3 022 2 645 2 478 2 444 3 010 3 051 Non-current liabilities 11 474 11 427 10 126 9 701 9 668 9 402 9 924 9 009 9 988 11 228 11 482 11 864 12 174 11 993 12 503 11 942 11 221 Equity 5 167 5 216 5 662 5 962 5 938 6 112 6 077 6 405 5 641 5 692 6 078 6 330 6 437 6 055 5 948 6 071 6 156 Total equity and liablilites 19 449 19 810 19 258 19 404 19 213 20 019 20 140 19 991 20 121 20 570 20 551 21 216 21 256 20 526 20 896 21 023 20 427

Debt maturity profile1)

DOF Subsea 18

Debt maturity profile, 2017E – 2021E

The figures reflect amortisation and balloon payments on outstanding debt

• 500

1 000 1 500 2 000 2 500 3 000 3 500 4 000 2017E 2018E 2019E 2020E 2021E Thereafter NOK million Bond Loan Bank Debt Balloons

1) Note: Figures according to management reporting and based on exchange rates as at end of Q3’17

Backlog1)

DOF Subsea 19

As at 30 September 2017, the Group’s firm contract backlog was NOK 16.3 billion

1) Note: Figures based on remaining backlog as at end of Q3’17 and exchange rates as at end of Q3’17 2) Note: Contract backlog excludes master service agreements (MSAs) within the Subsea IMR Projects segment – only confirmed POs are included in the backlog

2017 2018 2019 2020 2021 Thereafter Options 0,1 0,7 0,8 0,5 0,8 15,2 Firm 1,0 2,5 2,5 2,2 1,9 6,2 0,0 5,0 10,0 15,0 20,0 NOK billion

Modern high-end fleet

• Majority of the fleet delivered from 2007 and onwards
• Modern fleet with a value adjusted average fleet age of 6.2 years
• High-end vessels, capable of a wide scope of worldwide operations

DOF Subsea 20

Skandi Africa, Ship of the Year 2015 Skandi Acu, PLSV built 2016 Skandi Buzios, PLSV built 2017

1) Note: Excluding newbuilds under construction and chartered-in vessels 2) Note: Figures as at end of Q3’17

Newbuilds 8 % 2007-2015 67 % 2000-2006 25 %

Year of delivery DOF Subsea fleet

• 1,0

2,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0 Years

Fleet age1)

Average fleet age Value adjusted average fleet age

Thank you!