Presentation 4Q2014 REACH SUBSEA ASA IN BRIEF Reach Subsea was - - PowerPoint PPT Presentation

Presentation 4Q2014

REACH SUBSEA ASA IN BRIEF

• Reach Subsea was established in 2008 in Norway as a consultancy company.
• Reach Subsea merged with former Green Reefers and created Reach Subsea ASA

(Reach) on Oslo Stock exchange. – new equity, new, experienced management, new shareholders and a focused business plan in June 2012. – Raised NOK 42m in short term funding December 2012. – Raised further NOK 100m May 2013.

• Started first operations august 2013 with Bourbon Emerald and own ROV equipment.

– Achieved NOK 311 m in turnover in 2014 (2012: NOK 3.6 m, 2013: NOK 62 m).

• Owns 6 WROV-spreads and one Surveyor Interceptor.

– Moderate risk profile

• Market 5 vessels and have a firm order backlog for 2015

and beyond of NOK 400 million, plus options.

• Total 65 on- and offshore personnel.

FIVE YEAR PERSPECTIVE – ON PLAN SO FAR

• Realistic growth plan –

increasing fleet by one vessel per year

• Investing in new assets

and securing the right assets

• Reach is well positioned to

take advantage of the increasing number of subsea installations and IMR services going forward 2012 2013 2014 2015e 2016e Vessels 1 3 4 5 ROV systems 2 5 8 12 Employees 10-15 30 50 100 250 Engineering /staff 5 15 25 60 80

BUSINESS SEGMENTS

4Q2014 HIGHLIGHTS

• REACH has contributed successful offshore operation with four ROV spreads (vessel and

associated ROV equipment and personnel) in the fourth quarter from the vessels Dina Star, Stril Explorer, Edda Fonn and Normand Reach.

• REACH delivers an EBITDA-margin of 8,1 % on revenues of NOK 84.3 million, and a net profit of

NOK 7.7 million (9 %) in Q4.

• Preliminary net result for 2014 was NOK 24.8 million (8 %) with an EBITDA-margin of 11.1 % and

16.1 % return on equity.

• REACH has as of today an order book of close to NOK 400 million, of which approximately

NOK 335 million (all figures are excluding options) is related to work for 2015.

4Q2014 RESULT

• Turnover from four

vessels

• EBITDA-margin 8,1%
• ROE 16,1 %
• Solid, positive growth

compared to 2013

4Q2014 BALANCE SHEET

• Equity represents 58.6 %
• f the total balance

sheet

• Current assets/current

liabilities = 3,1

• Of the receivables, NOK

53 mill is a cash deposit serving as security for bank and leasing debt

MARKETS AND PROSPECTS

Market outlook

• Reduced tender activity in Oil&Gas marked.
• Oil companies reconsidering spending plans.

Reach Subsea:

• Maintain the flexible business model with low risk compared to peers.
• Maintain high focus on cost.
• Increased focus on marketing and sales in other regions and markets.
• Exploit opportunities in cooperation agreements with vessel owners.
• Strenghten the cooperation with MMT.

FLEET 2015

Viking Neptun (construction-vessel): Contrakt with Technip/Eidesvik 1 x Constructor WROV 1 x Supporter WROV Normand Reach (CSV): Timecharter with DOF Subsea 2 x Supporter WROV Dina Star (MPSV): Tenders/Spot market - low risk 1 x Supporter WROV Stril Explorer (Survey-vessel): ROV-services to MMT Sweden AB 1 x Supporter WROV Surveyor Edda Fonn (IMR-vessel): Tenders/Spot market 1 x Supporter WROV Surveyor

SURVEYOR

Successful testing of Surveyor Interceptor in December and January with Edda Fonn. The testresults where above expectations and the Surveyor will perform its first commercial job in 1Q15.

OWNERSHIP

Highlights:

• Management and other

employees have a substantial ownership share

• Stock option

programme for employees Shareholders

Number % of total

KÅRE JOHANNES LIE

EXPANDING RESOURCE BASE

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