Deutsch Bank Leveraged Finance ConferenceJohn Roche – Corporate Finance & Investor Relations Di rectorSeptember 2014
Forward Looking Statements
The statements described in this presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements which could be made include, but are not limited to, statements involving prospects for the Company, expected revenues, capital expenditures, costs and results of operations and contingencies and other factors discussed in the Company's most recent annual report on the Form 20-F for the year ended December 31, 2013 and in the Company's other filings with the SEC, which are available free of charge on the SEC's website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All subsequent written and oral forward-looking statements attributable to the Company or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements.
2
What Makes Seadrill Unique?
3
High Degree of Equity Funding
1 Strategic Focus on Premium Asset Classes
Robust Backlog and High Quality Customers2
Limited Exposure to Current Dayrate Environment 3
4
Balanced Capital Structure5
Long Term Commitment from John Fredriksen6
Scale & Strategic Focus on Premium Asset Classes
…with a Modern Fleet…One of the largest Offshore Drillers… …and Exposure to Premium Segments
Source: ODS Petrodata. 4
0
5
10
15
20
25
30
35
40
Num
ber
of U
nits
Ultra-Deepwater Units
05
101520253035404550
Num
ber
of U
nits
Jack-up Units
0.0 10.0 20.0 30.0 40.0
Paragon Offshore
Diamond Offshore
Ensco
Shelf Drilling
Aban Offshore
Rowan
COSL
Noble
Maersk Drilling
Transocean
Vantage Drilling
Atwood
Seadrill
Average Jack-up Age
0.0 10.0 20.0 30.0 40.0
Diamond Offshore
Transocean
COSL
Atwood
Ensco
Noble
Maersk Drilling
Seadrill
Ocean Rig
Pacific Drilling
Vantage Drilling
Average UDW Floater Age
0%10%20%30%40%50%60%70%80%90%
100%
% o
f Tot
al F
loat
ers
% Ultra-Deepwater of Total Floaters
0%10%20%30%40%50%60%70%80%90%
100%
% o
f Tot
al F
loat
ers
% of Jack-up Fleet > 350' Water Depth
Robust Backlog & High Quality Customers
2.9
5.6
4.1
3.2
4.7
1.4
5
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2014 2015 2016 2017 2018 Remaining
US
$ M
illio
ns
Seadrill Group Current BacklogUS$23.3 billion
Seabras Sapura Participacoes
50% of US$3.8 billion
30% of US$8.7 billionRemaining
6
Limited Exposure to Current Dayrate Environment
(1) Based on LTM average for the West Sirius, West Leo, West Aquarius and West Capella(2) Assuming $450 million of debt @ L+ 3%(3) Assuming 10% amortization per year(4) Assumes 95% utilization and 4.25% tax on revenuesSource: Morgan Stanley and Rystad Energy
Floater Contract Coverage
2014 2015 2016
$175 $198$239
$359$23$41
$120$515
Opex G&A EBITDABreakeven
Interest Expense OperationalBreakeven
PrincipalRepayment
Cash FlowBreakeven
Dayrate
$156,000 / dayCash Cushion
(1) (2) (3) (4)(1)
96%
4%
80%
20%62%
38%
Consistent Access to Equity Funding
West Sirius / West Leo Dropdown
11.2 million shares of SDLP raising approximately $330 million in equity proceeds
West AurigaDropdown
10.4 million shares of SDLP raising approximately $318 million in equity proceeds
NADL IPO
North Atlantic Drilling listed on NYSE with $125 million IPO
Access to Funding, High Utilization, Large Backlog ���� Stability in Current Market
7
OPCO Unit Dropdown
6.1 million shares of SDLP raising approximately $200 million in equity proceeds
September Equity
Offering
8 million shares of SDLP raising approximately $256 million in equity proceeds
Balanced Capital Structure with Staggered Debt Matu rities
88
US$3bn Reduction in Bank & ECA Debt in 2014
60%18%
17%
5%
Secured Unsecured TLB MLP
Current Capital Structure2009 Capital Structure
84%
16%
Secured Unsecured
0
1,000
2,000
3,000
4,000
2014 2015 2016 2017 2018 2019 2020
Jan-14 Aug-14
Debt Maturity Profile
Illustrative Funding Profile
9Proforma consolidated
Well Defined & Manageable Funding Requirements
0
500
1,000
1,500
2,000
2,500
2014 2015 2016
US$
Mill
ion
s
Contracted Uncontracted
2014 is fully financed
Remaining Yard Instalments
Floaters
• West Rigel
• West Mira
• West Carina
2015 Funding Required
2016 Funding Required
Jack-ups
• West Titan
• West Proteus
• West Rhea
• West Tethys
Floaters
• West Draco
• West Dorado
• West Aquila
• West Libra
Jack-ups
• West Hyperion
• West Umbriel
• West Dione
• West Mimas
The Fredriksen Group
Market Cap: ~$13.4bn
Market Cap: ~$1.6bn
Market Cap: ~$0.5bnMarket Cap: ~$0.8bn
Market Cap: ~$0.1bn
Note: Market Capitalization as of September 26, 2014
Market Cap: ~$2.9 billion
Market Cap: ~$5.7bn
10
Financial performance highlights
Appendix:Seadrill Limited Financials
11
Seadrill Strategy
12
Remember What They Said….
…Where did we go from here?
13
The World’s Leading Drilling Company
SeadrillGroup
SDLP46.6%
NADL70.4%
Sevan 50.1%
AOD66.2%
SeaMex50.0%
0
10
20
30
40
50
60
70
80
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Num
ber
of R
igs
5
69
Strongest Fleet Profile in the Industry
79%
64%63%
28%
3%0
10
20
30
40
50
60
70
80
Diamond Transocean Noble Ensco SeadrillGroup
% of Fleet Older than 15 Years
Total delivered floater fleet by end of 2016# floaters built before 2000% of floater fleet built before 2000
Source: IHS PetroData- Free and Clear Availability- Includes stacked units- Total fleet measured including deliveries until end of 2016
20
6 611 12
42
2211
71
81%74%
63% 62%
38%
Transocean Diamond Noble Ensco SeadrillGroup
Free and Clear Floater Availability Until End of 2016
Floaters > 7,500 ft Floaters 0 - 7,500 ft
% of floater fleet
14
Financial performance highlights
Appendix:Seadrill Limited Financials
15
Upstream & Drilling Market Outlook
Group Waterdepth Produced (bn boe) Discovered (bn boe) Replacements (ratio)
Off-shore
Ultra Deepwater: 7,500 ft 0.5 8
Deep / Mid: 400 - 7,599 ft 63 154
Shelf: 400 ft 163 77
Total 227 239
On-shore On-shore 485 456
On-shoreOff-shore
Global 712 695
Source: Rystad Energy research and analysis, UCube
Discovered resources 1980 to 2013
Resources discovered and produced 2000-2013
16.4
2.5
0.5
1.1
0.9
1.0
Recent Discoveries to Become Produced Volumes
16
-
40,000
80,000
120,000
160,000
1980 1985 1990 1995 2000 2005 2013
(mill
ions
boe
)
Shelf Deep/Mid Water Ultra deepwater
Margin Drives Long Term Investments
(1) Average IEA crude oil import priceSource: Morgan Staley Equity Research 17
0
10
20
30
40
50
60
70
80
90
100
0 10 20 30 40 50 60 70 80 90 100
Onshore Middle East
Offshore Shelf
Heavy Oil
Onshore Russia
Onshore RoW Deepwater
Ultradeepwater
NAm Shale
Oilsands$27$41
$47
$50 $51 $52
$56
$65
$70
Arctic$75
Deep and Ultra-deep Well Positioned on Cost Curve
Preferential Demand for Newer Rigs
Bifurcation is a Reality
Contract Backlog UDW & DW
14,000
12,000
10,000
8,000
6,000
4,000
2,000
10
Apr
-03
Apr
-04
Apr
-05
Apr
-06
Apr
-07
Apr
-08
Apr
-09
Apr
-10
Apr
-12
Apr
-13
Apr
-11
Apr
-14
Bac
klog
mon
ths
DW UDW Total
Source: Fearnley OffshoreSource: Pareto Securities AS
Operating Water Depth
12%
47%
41%
Above 7,500 ft 4,500 - 7,499 ft Below 4,500 ft
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Jack-Up Market Fundamentals
• Current Jack-up market is tight, however…
• 139 Jack-ups to be delivered until the end of 2017, or ~30% addition to supply���� This picture is not as bad as it seems…
• 222 rigs in the current fleet are in excess of 30 y ears old, and scrapping of units likely
• Long term fundamentals are intact, operators contin ue to appreciate benefits of high specification units
Source: IHS PetroData
Jack-up Fleet Age Jack-up Delivery Schedule
0
50
100
150
200
250
> 30 years 20 and 30years
10 and 20years
5 and 10years
< 5 years
Num
ber
of R
igs
0
10
20
30
40
50
60
70
2014 2015 2016 2017
19
Financial performance highlights
Appendix:Seadrill Limited Financials
20
Seadrill Partners
Long Term Contracts & High Quality Customers
• Long-term contracted modern deepwater drilling assets
• Managed growth via dropdowns and third-party acquisitions
• No newbuild construction and startup risk
(NYSE: SDLP)
Market Cap: ~$2.9 billion(1)
(1) As of September 29, 2014
Key Characteristics
West Vencedor US$213,931
West Aquarius US$540,000 US$615,000
West Capella US$627,500
West Capricorn US$495,650 US$495,650
West Leo US$605,000
T-15 US$122,723
T-16 US$121,268
West Sirius US$490,173 US$535,000
West Auriga US$565,000 10.2020
Contracted Option Period
2014
2Q2Q 2Q 3Q 4Q1Q 4Q3Q3Q 4Q
2016 2017
3Q
2018 2019
1Q 2Q 3Q 4Q1Q4Q 1Q3Q 1Q 2Q1Q 2Q 4Q
2015
21
Significant Progress Since IPO – More Growth to Come
Major Events to Date
•Tender rig T-15 acquired for US$210 million
•Tender rig T-16 acquired for US$200 million
•West Sirius and West Leo acquired for a total consideration of US$2.3 billion on a 100% basis
•US$1.8 billion term loan B and US$100 million revolver executed, creating a more efficient capital structure
•West Auriga acquired for US$1.24 billion on a 100% basis
•US$1.1 billion add-on term loan B
•Public offering of US$192 million, and private placement to Seadrill Limited of $100 million
•Acquired an additional 28% interest in Seadrill Operating LP for approximately $373 million
•Public offering of US$256 million
40% increase since IPO
7% increase for West Auriga
aquisition
1.55
1.67
1.78
2.03
2.17
1.50
1.75
2.00
2.25
IPO T-15 T-16 Sirius / Leo Auriga
Ann
ualiz
ed D
istr
ibut
ions
per
Uni
t ($)
22
Add-on Term Loan B Refinancing
Refinances Existing Debt Facilities
• Issued $1.1bn add-on to existing $1.8bn Term Loan B facility
• More efficient 1% annual amortization profile
• Frees additional funds to re-invest in fleet growth
• Debt maturity profile staggered against contract rollovers and extends maturity profile
• Priced at existing rate of Libor plus 3%, swapped to fixed of ~5.5%
T-15
T-16
Borrower Group
Seadrill Capricorn
Holdings LLC
53.4%46.6%
Seadrill Operating LP
Seadrill Partners LLC(NYSE: SDLP)
Seadrill Limited(NYSE: SDRL)
Seadrill Partners
Operating LLC
Public Unit Holders
West Aquarius
West Capella (56%)
West Vencedor
West Leo
West Capricorn
West Auriga
West Sirius
100% 58.0% 51.0%
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Growth - Additional UDW rigs from Seadrill
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Unit Customer
West Alpha ExxonMobil US$537,000 US$552,000 Rosneft
West Vela BP US$565,000 11.2020
West Auriga BP US$565,000 10.2020
West Rigel Rosneft Newbuild Rosneft 07.2020
West Mira Husky Newbuild Transit US$590,000 06.2020
West Navigator Centrica Energi NUF / Rosneft US$589' US$628' Rosneft 01.2020
West Jupiter Total Newbuild Transit US$567,000 11.2019
West Sirius BP US$490 US$535,000 07.2019
Sevan Brasil Petrobas US$396,572 07.2018
West Leo Tullow Oil US$605,000 07.2018
West Polaris ExxonMobil US$656,736 03.2018
West Capricorn BP US$495,650 US$495'
West Hercules Statoil US$503,000 US$503,000
West Neptune LLOG Newbuild Transit US$570,000
West Gemini Total US$656,000
West Capella ExxonMobil US$627,500
West Aquarius ExxonMobil US$540,000 US$615,000
Sevan Louisiana LLOG US$505,000
West Saturn ExxonMobil Newbuild US$610,000
West Eclipse Total US$450,000 US$455,000
West Pegasus PEMEX US$555' US$461,362 Market Rate
West Orion Petrobras US$624,460
Sevan Driller Petrobas US$421,641
West Phoenix Total US$465,000
West Venture Statoil US$448,000
West Eminence Petrobras US$624,460
West Taurus Petrobras US$656,662
West Tellus Chevron $635
Sevan Developer - Newbuild
West Carina - Newbuild
West Draco - Newbuild
West Dorado - Newbuild
West Aquila - Newbuild
West Libra - Newbuild
Option Yard or transit period SDLP Rigs
1Q 2Q 3Q 4Q
Flo
ate
rs
3Q 4Q 1Q 2Q 3Q 4Q2Q 3Q 4Q 1Q 2Q
20172014 2015 2016
• 32 6th generation ultra-deepwater units
• 2 Midwater harsh environment semi-submersible rigs
• 29 High-specification jack-ups
• 3 Harsh environment jack-ups
• 3 Tender rigs
Core Assets
Financial Investments
8.18% of SapuraKencana –
Market Value ~US$630mm
50.11% of Sevan Drilling –
Market Value ~US$100mm
39.9% of Archer –
Market Value ~US$320mm
25