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© SBM Offshore 2013. All rights reserved. www.sbmoffshore.com
Barclays Conference, September 2013
IR- 09/09/2013
Some of the statements contained in this presentation that are not historical facts are statements of future expectations and other forward-looking statements based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those in such statements. Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of the Company’s business to differ materially and adversely from the forward-looking statements.
Disclaimer
2
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this presentation as anticipated, believed, or expected. SBM Offshore NV does not intend, and does not assume any obligation, to update any industry information or forward-looking statements set forth in this presentation to reflect subsequent events or circumstances.
Agenda
Who we are, where we areEmerging OpportunitiesOur Strategy
3
IR- 09/09/2013
SBM Offshore No.1 FPSO Player Worldwide
4
Financials in US$ billion
2013 IFRS Revenue Outlook 4.3
Directional* Backlog (as of 30/06/2013) 22.4
Market Cap (as of 11/09/2013) 4.3
Performance YE2012
167 years of FPSO operations
99 % Uptime
1 million barrels of throughput per day
5,460 Tanker Offloads
The Company
4 Execution Centres
10 Shore Bases
5 Representative Offices
8,507 Employees
Lease Fleet
16 FPSOs
2 FSOs
1 Semi Sub
1 MOPU
4¹ Directional view is a non-IFRS disclosure, which corrects the non-cash effects on revenue and earnings introduced by IFRS finance lease accounting
IR- 09/09/2013
We Deliver along the Full Product Lifecycle
5
Product Life ExtensionLeader in FPSO relocation
World class after sales
Operations160+ years of FPSO experience
99+% production uptimeLargest international FPSO fleet
InstallationDedicated fleetUnparalleled experienceExtensive project capability
ConstructionStrategic partnerships Unrivalled project experience
ProcurementIntegrated supply chainGlobal efficienciesLocal sourcing
Engineering50 years of industry firstsLeading edge technology
IR- 09/09/2013
H1 2013 Key Figures(in millions of US$)
6*Restated for comparison purposes
IR- 09/09/2013
US$18.7 bn
US$3.7 bn
Directional Backlog
7
Lease & Operate
Turnkey
US$22.4 bn
0.0
0.5
1.0
1.5
2.0
2.5
3.0
H2 2013 2014 2015
in U
S$
bn
Turnkey backlog: Directional¹ vs IFRS
Directional
IFRS
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
in U
S$
bn
Lease & Operate backlog: Directional¹ vs IFRS
Directional
IFRS
¹ Directional view is a non-IFRS disclosure, which corrects the non-cash effects on revenue and earnings introduced by IFRS finance lease accounting
IR- 09/09/2013
SBM Lease Fleet Portfolio
8
L&O Portfolio Average Duration: 14.5 years
IR- 09/09/2013
• Continue strengthening Balance Sheet post Rights Issue• No dividend over 2013• Sale of non-core assets ongoing
• Contracts executed for FPSO Cidade de Maricá, FPSO Cidade de Saquarema and FPSO Stones
• Delivery of Deep Panuke and FPSO OSX 2• Updating 2013 IFRS revenue guidance to approximately
US$4.3 billion • US$3.3 billion in Turnkey• US$1.0 billion in Lease & Operate
H2 2013 Outlook
9
Agenda
Who we are, where we areEmerging OpportunitiesOur Strategy
10
IR- 09/09/2013
Understanding Global Market
11
IR- 09/09/2013
Understanding Our Clients
12
Production vs. E&P Spending
Sources: Pareto, Companies
0
100
200
300
400
500
600
Inde
x
E&P Spending (volume) E&P Spending (nominal) Oil & Gas production
CAGR
6.8%
14.1%
1.8%
• Cash Flows situation of clients
• Cost of new developments
• IOCs vs. NOCs
• Delays in project sanctions due to increasing field complexity
IR- 09/09/2013
Demand for New Production
Source: Morgan Stanley, IEA, Internal analysis
0
10
20
30
40
50
60
70
80
90
100
11 12 13e 14e 15e 16e 17e 18e
in m
illio
n ba
rrel
s pe
r da
yDemand Growth vs. Field Depletion
2011/12 Demand Existing Supply
Offsetting decline (5% depletion rate) Meeting demand growth
Spare capacity
13
Over 24 mln bbl/day = 2 x 2012 Saudi Arabia production
IR- 09/09/2013
• Deep and ultra-deep water breakeven costs are competitive
• Average SBM Generation 3 FPSO production costs are below US$5/bbl
Oil Production Dynamics
14
Breakeven Oil Price(IRR>10%)
Sources: IEA, CERA, Total, Goldman Sachs, Internal analysis
IR- 09/09/2013
What’s Happening?
15Source: Goldman Sachs
• Remote discoveries favorable for FPSOs
• Exponential technology demand
• High end of FPSO market: production capacity above 100,000 bl/day
0
5,000
10,000
15,000
20,000
25,000
Onshore 0-500 500-1000 1000-1500 1500-2000 2000+
in m
ln b
bls
Water Depth (m)
Trends in Giant Field Discoveries
Oil discoveries over past 3 years Oil discoveries over past 6 years
IR- 09/09/2013
• Offshore GrowthCAGR 2012-15E: +20%
• Ultra-deep Water Growth CAGR 2012-15E: +38%
• Onshore Growth CAGR 2012-15E: +38%
Capitalising on CAPEX
16Source: Goldman Sachs
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2010 2011 2012 2013 E 2014 E 2015 E
in U
S$
mln
Global Upstream CAPEX (in US$ mln)
Total Onshore Deep water Ultra-deep water Other Offshore
IR- 09/09/2013
Regional Opportunities
• Growth located in: � North America � Africa � Latin America
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2006
2007
2008
2009
2010
2011
2012
2013
E
2014
E
2015
E
2016
E
2017
E
2018
E
in U
S$
mln
Top 380 Giant Fields: Ultra-deep Water CAPEX
North America Latin America Africa Asia- Pacific Other
Source: Goldman Sachs
17
IR- 09/09/2013
-3,000
-2,500
-2,000
-1,500
-1,000
-500
01996 2001 2006 2011 2016
Wat
er D
epth
(m
)
Year of first oil
Cd de Ilhabela
Cachalote
Cd de Anchieta
Serpentina
XikombaBrasil
Espadarte
Kuito
SBM Record in Serving Depth Trend
18
Marlim Sul
Cd de Paraty
P 57
Mondo Saxi
N’GomaKikeh
Frade
BC 10
Aseng
Cd de Marica Cd de Saquarema
Stones
Source: Internal analysis-July 2013
IR- 09/09/2013
Scale and Complexity
19
Turrets – Swivel stack size
Sw
ivel
sta
ck s
ize
in m
eter
s
Source: Internal Analysis - August 2013
IR- 09/09/2013
Getting Complex
November 20121996IR – 09/09/2013
IR- 09/09/2013
FPSO Awards in Review
21
Source: Internal Analysis - August 2013
IR- 09/09/2013
0
1
2
3
4
5
6
7
0 50,000 100,000 150,000
Aw
ards
won
Average production capacity (bbl/d)Engineering complexity
FPSO Market 2010-2013 YTD AwardsConverted FPSOs only
Supply side
Source: Internal Analysis – September 2013
22
IR- 09/09/2013
FPSO Market Outlook
Field developments requiring FPSOs over the next 3 yearsMore than 50 FPSO project awards anticipatedSBM will focus on ~20 projects to obtain targeted share
Source: Internal Analysis - August 2013
23
Lease
Sale
Lease or Sale
51
2
Asia
3
1
Other
43
North America
8
4
5
Africa
14
2
2
South America
Agenda
Who we are, where we areEmerging OpportunitiesOur Strategy
24
IR- 09/09/2013
FPSOFPSOFPSO
FPSO³
25
The Company has refocused its
product line on core FPSO products
and associated services.
By focusing on core products with
historically good margins, whilst
improving execution standards and
project risk profiles, the Company
believes it will return to delivering
superior financial returns.
IR- 09/09/2013
Improving Risk/Reward Balance
26IR – 09/09/2013
• Unsustainable historic industry returns
• SBM recent steps:� Discipline in tendering� Attractive niche position� Not a commodity product� Excellent operations (99%
uptime)
July 2013
IR- 09/09/2013
Improving Risk/Reward Balance
27IR – 09/09/2013 July 2013
Current Focus:� Consultations with clients� Improving standard terms and
conditions in the industry contracting practice
IR- 09/09/2013
2013 Restoring Pride
28
Closure of legacy projects
Selective bidding policy
Investment in technological edge
Strengthenedbalance sheet
Directional reporting
Reshaped organisation
Still in Transformation Process
IR- 09/09/2013
Local Content: Competitive Advantage
29IR - 07/08/2013
Brazil:� In-country presence since 1995� First FPSO in 1997� Brasa yard key asset for SBM� Stake in biggest floating crane in
Latin America� Over 2,700 employees
August 2013 29IR – 09/09/2013
IR- 09/09/2013
Local Content: Competitive Advantage
30IR - 07/08/2013
Angola:� In-country presence since 1968� First FPSO in 1999� Paenal yard key asset for SBM:
biggest crane in West Africa� Over 1,400 employees
August 2013 30IR – 09/09/2013
© SBM Offshore 2013. All rights reserved. www.sbmoffshore.com
Q&A Session
31