General Presentation May 2014 FY2013 Presentation, February 2014 SBM Offshore 2013. All rights reserved. www.sbmoffshore.com IR - 09/05/2014
Agenda Who we are, where we are Macro View Strategy 3
No.1 FPSO Player Worldwide The Company Lease Fleet 5 Execution Centres 14 FPSOs 10 Operational Shore Bases 2 FSOs 5 Representative Offices 1 Semi Sub 9,936 Employees 2 MOPU Financials in US billion Performance YE2013 2014…
Delivering the Full Product Lifecycle Engineering Procurement 50 years of industry firsts Integrated supply chain Leading edge technology Global efficiencies Local sourcing Product Life Extension Construction Leader in FPSO…
Ticking all the Boxes We provide great TECHNICAL solutions We provide LOCAL solutions We provide FINANCIAL solutions IR - 09/05/2014 6
Q1 2014 in Context FY13 9,936 US400 mln 99% employees Fleet Uptime 0.4 project as of LTIFR financing FY13 Cidade de Kikeh Directional Ilhabela 1st brownfield Revenue US782 mln module integration FPSO extension…
Q1 2014 Key Figures (in millions of US) IR - 09/05/2014 *Restated for comparison purposes Directional view is a non-IFRS disclosure, which treats all leases as operating leases and consolidates the vessel joint ventures…
Directional1 Backlog (in billions of US) US 23.0 bn (as of December 31, 2013) Lease & Operate Backlog: Directional vs IFRS 2.0 Directional IFRS 1.5 1.0 0.5 20.1 bn 0.0 2014 2015 2016 2017 2018 2019 2020 2021…
Core Projects on Track (ol) operating lease (fl) finance lease (t) turnkey Completed/On Hire In Progress/On Schedule IR - 09/05/2014 10
Prestigious Awards Two Generation 3 (3G) FPSOs awarded in one bid Accelerated award process Delivery expected end 2015 and early 2016 Cdde Maric & Cdde Saquarema Worlds deepest disconnectable FPSO; 2,900 meters in GoM…
Higher Standards Team Energy Seamless handover of Paraty between project and operations. Process 30% faster than before Success Cdde Paraty (20 year L&O contract) OSX-2 & Paraty delivered on time, on budget Ambition More…
Deep Panuke Legal claims settled; proceedings dismissed US400 million project financing Platform formally on hire In production H2 2013 Source: Encana Corporation IR - 09/05/2014 IR - 09/05/2014 December 2013 13
Compliance Findings of internal investigation published April 2, 2014 Remain in active dialogue with relevant authorities: Openbaar Ministerie - Dutch public prosecutor U.S. Department of Justice At this time, the Company is…
2014 Guidance Guidance based on Directional1 Reporting Conservative 2014 award assumptions Directional1 Revenue guidance: US3.3 billion Turnkey: US2.3 billion Lease & Operate: US1.0 billion IR - 09/05/2014 Directional view…
Dividend Policy Management Board intends to propose new dividend policy: Based on positive FCF in the payment year Derived from Directional1 net income Target payout ratio of 25% - 35% To be discussed at a future AGM Negative…
Agenda Who we are, where we are Macro view Strategy 17
The Award Cycle Last six years 50% of elephant Project sanction delays increasing discoveries have been in deep/ultra along with water depth/complexity deepwater Source: Goldman Sachs; ExxonMobil; Douglas Westwood FPS report…
E&P Spending Deepwater trends remain intact Source: Morgan Stanley January 2014 IR - 09/05/2014 19
Competitive Landscape FPSO market 2010-2014 YTD Awards 7 6 5 Awards won 4 3 2 1 0 0 50,000 100,000 150,000 Average production capacity (bbl/d) Engineering complexity IR - 09/05/2014 20
FPSO Awards IR - 09/05/2014 21
Agenda Who we are, where we are Macro view Strategy 22
2014 Message The Company has focused its product line on core FPSO products and associated FPSO services: FPSO full life cycle Mooring technology: FPSO Turret Mooring Systems Offshore installation New products: FLNG…
Investing in our Future Lease fleet maintenance programme Transformation Programme - Odyssey 24 Investments in Technology IR - 09/05/2014 IR - 09/05/2014 January 2014 24
Technology - Focus Areas Large Turret Semi, TLP and Simpler FPSOs FLNG Moorings Risers Process High capacity Twin Hull Enabling wider intensification small diameter development use of SCR & internal turret Composite Risers…
Divestment Update Disposal of last Monaco building progressing DSCV SBM Installer actively being marketed FPSO Falcon and VLCC Alba held for sale IR - 09/05/2014 IR - 09/05/2014 July 2013 26
Appendix SBM Offshore 2013. All rights reserved. www.sbmoffshore.com
IFRS 10 & 11 - JV Accounting IFRS 10 & 11 consolidation standards for joint ventures (JVs) introduced January 1, 2014 Ends proportional accounting of JVs full consolidation of fully controlled JVs (mostly Brazilian FPSOs) equity…
IFRS 10 & 11 - Directional1 Impact New IFRS 10 & 11 eliminates the revenue SBM generates in the project phase from its JV partners in investees fully consolidated (Brazil) This grossly understates the operating cash flow during…
IFRS 10 & 11 Lease New Old Joint Ventures Contract SBM share % New IFRS Old IFRS Directional1 Directional1 Type FPSO NGoma FL 50% Proportional Proportional Equity Proportional FPSO Saxi FL 50% Proportional Proportional Equity…
Project Direction - Context SBM Offshore seeking to provide analysts and investors with clarity on business performance above and beyond statutory IFRS disclosure SBM Offshores business model combines turnkey sales, construction…
Operating Lease vs Finance Lease IR - 09/05/2014 32
Operating Lease vs Finance Lease IR - 09/05/2014 33
Directional1 - The Way Forward Turnkey segment becomes a pure construction business. Revenue and Gross Margin consist of: Direct sales contracts (FPSO OSX 2, Turrets for Prelude, Quad 204 and Ichthys) Sales to JV partners (FPSO…
SBM Lease Fleet Portfolio L&O Portfolio Average Duration: 14.5 years Initial Lease Period Confirmed extension Contractual extension option IR - 09/05/2014 35
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