DOF Subsea Group Quarterly Presentation Q2 2017 DOF Subsea - PDF document

DOF Subsea Group Quarterly Presentation Q2 2017

DOF Subsea highlights 1 Attractive long-term market fundamentals supporting continued demand for subsea offshore solutions 2 A true global subsea IMR operator with strong project and execution capabilities 3 Unique strategic position providing integrated life-of-field subsea services State-of-the-art subsea vessels, the world’s 4 th largest ROV fleet and 1 288 subsea employees 4 5 Strong order intake through the down cycle securing tangible near-term growth and highly attractive financial profile 6 Resilient backlog as backbone for stable operating model – PLSV contracts in Brazil cementing strategic position DOF Subsea 2

DOF Subsea Group at a glance NOK 1.2bn 1) 1 288 2) 2005 NOK 17.7bn DOF Subsea Revenues Firm backlog Subsea employees established Q2’17 Q2’17 worldwide Q2’17 71 4) Integrated Modern 26 3) Supplier of subsea State-of-the-art ROVs Subsea vessels offshore services asset base 1) Note: According to management reporting 4) Note: Including 2 AUVs and 2 ROVs on order DOF Subsea 3 2) Note: Excluding marine crew 3) Note: Including newbuilds Skandi Olinda and Skandi Recife and chartered-in vessels Harvey Deep Sea and Skandi Chieftain

More than a decade of structural growth and consolidation DOF Subsea established following the Development in # of Subsea Employees 1) acquisition of Geoconsult. The Company was # of FTEs listed second half 2005. 2005 1858 1667 1566 1492 First Reserve acquires 49% of DOF Subsea, 1354 1278 1288 1246 which in the following is delisted from the Oslo Stock Exchange 1014 2008 897 563 553 Large and global organisation following multiple acquisitions from 2005-2010 337 Covus Subsea Century Subsea SEMAR 2010 SWG Offshore CSL 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q2 2017 Awarded four PLSV long-term contracts in conjunction with TechnipFMC 2013 Development in # of vessels in operation 2) # of vessels 27 Expanding organisation on the back of several 26 25 24 24 24 large contract awards. Number of employees 21 21 and vessels peaking at 1,858 and 27, 18 2014 respectively 16 13 11 11 Focus on consolidation and streamlining of business operations to improve efficiency and competitiveness in weak market 2016 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q2 2017 Delivery of two newbuilds entering into long-term contracts Owned vessels Chartered-in vessels Total 2017 1) Note: Newbuilds not included DOF Subsea 4 2) Note: Marine crew not included

Global footprint Bergen Aberdeen St John’s 8 452 ATLANTIC 4 228 Houston Manila NORTH AMERICA Brunei Kuala Lumpur Singapore Luanda Jakarta Darwin Macaé Rio de Janeiro 4 297 BRAZIL Perth ASIA PACIFIC Buenos Aires Melbourne 8 311 1) Note: Number of employees as at Q2’17, excluding marine crew DOF Subsea 5 2) Note: Vessels in operation, including 2 chartered-in vessels (not including newbuilds)

Several major and attractive contracts to commence in 2017 • Long-term charter with Petrobras Oct 2017 • 18 months + 18 months options • On contract with Petrobras since 2010 • Vessel co-owned on a 50% basis • IMR contract offshore Jul 2017 through joint venture with Angola TechnipFMC • 16 months + 3x4 months • First-pipe lay vessel built in Brazil Prelude FLNG options • Scope comprising project management, engineering, Apr 2017 supply of vessels and ROVs Husky Energy Jan 2017 • Long-term FLNG IMR contract awarded in Australia with Shell Skandi Buzios Jan 2017 • 5 years + 4 years options • Long-term IMR contract • Scope comprising offshore Eastern Canada underwater services and Skandi Vitoria • 10 years + 10 years options Multi-Purpose Vessel • IMR scope comprising supply (MSVP) services spanning of new well intervention project management, • Long-term charter with vessel, two work class ROVs engineering and supply of Petrobras ENI Angola and personnel vessel and ROVs • 8 years + 8 years options • High strategic importance • Vessel co-owned on a 50% through strengthened basis through joint venture presence in the Canadian with TechnipFMC market • Built in Norway DOF Subsea 6

Two business segments DOF Subsea Group Subsea IMR Projects Long-term Chartering 1) Framework Engineering Opex Long-term Vessel Capex agreements capabilities spending charters capabilities spending Revenues Q2’17 2) EBITDA 3) Q2’17 Firm backlog 4) Revenues Q2’17 2) EBITDA Q2’17 3) Firm backlog 4) NOK 868 million NOK 127 million NOK 4.3bn NOK 331 million NOK 273 million NOK 13.4bn ~15% margin ~82% margin 1 288 Employees 15 vessels in 7 vessels in 2 newbuilds operation 5) Q2’17 Q2’17 operation Q2’17 Q2’17 1) Note: Long-term chartering comprises 5 PLSVs in operation, 2 PLSVs under construction, Skandi 3) Note: According to management reporting, and excluding gains from sales of assets DOF Subsea 7 Acergy and Skandi Patagonia 4) Note: Firm backlog as at end of Q2’17 2) Note: According to management reporting 5) Note: Including 2 chartered-in vessels

Subsea IMR Projects 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 Selected IMR projects – Last 5 years Selected Mooring projects – Last 5 years  Goliat Field support ENI (2016)  Yinson OCTP FPSO Field Dev. (2016-2017)  Saipem CRX/Nene (2014)  Bongkot Mooring Replacement PTTEP (2017)  Call-off for Light Construction Services and Seabed  Raroa Mooring OMV (2016-2017) Survey Services Statoil (2012-2015)  Gina Krog TMRS Teekay (2016)  Technip Frame agreement (2012-2015)  Catcher Mooring Installation BWO (2016)  ConocoPhillips ROV Services (2012 and onwards)  Goliat FPSO Marine Installation ENI (2011-2015)  Freeport McMoran IMR support (2013-2016)  Saipem JSM Export Line support (2014-2015)  Lam Son Mooring Installation PTSC (2014)  ROV Support vessel Petrobras (2011 and onwards)  Knarr Mooring Project Teekay (2013-2014)  Banff Re-instatement Project Teekay (2013-2014) DOF Subsea 8

Subsea IMR Projects Selected contracts in backlog 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 2012 6 years + 4 years Brazil Petrobras IMR 2011 6.5 years + 4 years IMR North Sea Conoco Phillips 2011 8 years + 13 years Asia Pacific North Sea / Atlantic Brazil North America Leading supplier of IMR Leading supplier of Strong position being one Gradually built up the services in the region mooring services in the of the major suppliers of region, becoming a top North Sea and West IMR services three supplier of IMR Africa services in the GoM DOF Subsea 9

DOF Subsea holds a leading position in the subsea IMR market through its global presence and integrated solutions offering Positioning DOF Subsea • Improved competitive position for DOF Geographies Illustrative Subsea when market normalises − multiple competitors have scaled down operations or entered financial distress Global • Favourable competitive dynamics in  tendering for mid-sized subsea IMR projects − Larger EPCI providers typically invited to  tender, however less capable and willing Multi-regional  to meet specific project requirements  due to relatively small project size − Vessel suppliers typically not invited to  tenders due to lack of engineering  capabilities   Local • DOF Subsea benefits from offering an  integrated engineering and vessel  = Chapter 11 / solution financial distress Dayrate / Support services Small to medium EPCI contracts Larger EPCI contracts Capabilities Source: ABGSC DOF Subsea 10

Long-term Chartering DOF Subsea provides state-of-the-art vessels to leading players Skandi Acergy Skandi Acu Skandi Africa 7 2 NOK 13.4bn vessels in contracted firm backlog operation newbuilds per Q2’17 Construction Construction & pipe Construction & pipe support vessel laying vessel laying vessel Skandi Niteroi Skandi Patagonia Skandi Vitoria High-end vessels operating advanced subsea projects for third party EPCI Operations contractors Strong long-term contract coverage Contracts Construction & pipe Dive support Construction & pipe laying vessel vessel laying vessel Skandi Buzios Skandi Recife Skandi Olinda Day-rate based Remuneration Selected clients Construction & pipe Construction & pipe Construction & pipe laying vessel laying vessel laying vessel DOF Subsea 11