Slide 1: Analysts Presentation, 16 August 2012
Analysts Presentation, 16 August 2012 © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com
Slide 2: Disclaimer
Disclaimer Some of the statements contained in this Should one or more of these risks or presentation that are not historical facts uncertainties materialize, or should are statements of future expectations and underlying assumptions prove incorrect, other forward-looking statements based on actual
Slide 3: H1 2012 Review
H1 2012 Review © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com
Slide 4: Key Figures Half year 2012
Key Figures Half year 2012 (In millions of US$) H1 2011* H1 2012 FY 2011 EBIT 223 -201 Order portfolio 16,910 16,109 * H1 2011 results are restated for comparison purposes © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 4
Slide 5: The case for change
The case for change 7000 25000 6000 Cd de 20000 Ilhabela 5000 Topsides Weight (ton) Total Workforce 15000 Cd de 4000 Paraty P 57 3000 10000 Kikeh N’Goma Xikomba Marlim Sul Saxi 2000 Falcon 5000 Espadarte Mondo Serpentina 1000 Kuito Capixaba Rang Dong 0 0 2005 2006 2007 2008 2009 2010 2011 1995 2000
Slide 6: Group transformation in progress
Group transformation in progress FPSO strategy focus New organisation profit and cash flow accountable Strengthened management team Selective growth in buoyant market Lead the industry transition towards improving risk/reward balance © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 6
Slide 7: Transforming the organisation
Transforming the organisation • New senior management structure: ensures responsibility and financial accountability • Strengthened senior team (CEO, CFO, CGCO, COO, Sales director, HSSE Director, General counsel): providing leadership for cultural and behavioural change Work as Shape the Perform On
Slide 8: Size of the prize
Size of the prize Source: Pareto research The sector is primed for solid growth in coming years with a CAGR of demand in the 6-10% range © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 8
Slide 9: No time for non-core
No time for non-core • Assets held for sale end June 2012: Gusto-MSC and Dynamic Installer • Next step: Sale and lease back of real estate (offices) and potentially other divestments • Total: around US$ 400 mln • Targeted schedule: within 6-12 months © SBM Offshore 2012. All rights reserved. www.sbm
Slide 10: FPSO
FPSO FPSO FPSO About our Strategy: 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 s
Slide 11: Raising the bar
Raising the bar 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 MOPU Yme (l)* MOPU Deep Panuke (l) FPSO Cidade de Anchieta (l) FPSO Cidade de Paraty (l) FPSO OSX2 (t) FPSO N’Goma (Xikomba) (l) Turret FLNG (t) Turret Quad 204 (t) FPSO Cidade de Ilhabela (l) Turret Ichthys (t) Legacy Projects In pro
Slide 12: Cidade de Anchieta - Brazil
Cidade de Anchieta - Brazil August 2012 © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 12
Slide 13: Cidade de Paraty - Brazil
Cidade de Paraty - Brazil July 2012 © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 13
Slide 14: Kikeh - Malaysia
Kikeh - Malaysia July 2012 © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 14
Slide 15: FPSO Cidade de Ilhabela - Brazil
FPSO Cidade de Ilhabela - Brazil Q2 2012 Record US$ 1.05 billion financing secured © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 15
Slide 16: Fram - United Kingdom
Fram - United Kingdom July 2012 © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 16
Slide 17: H1 2012 Financials
H1 2012 Financials © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com
Slide 18: Financial Overview Half Year 2012
Financial Overview Half Year 2012 P&L Total Group (in millions of US$) H1 12 H1 11* Variance Comment Turnover 1,669 1,461 +14% Strong increase driven by Systems Gross Margin 321 (115) N/A H1 2011 US$ 450mln impairment effect H1 2012 US$ 69mln margin deferral (POC) EBITDA 335 373 - 10% Increase of tu
Slide 19: Financial Overview Half Year 2012 - Lease and Operate
Financial Overview Half Year 2012 P&L Lease and Operate (in millions of US$) H1 12 H1 11* Variance Comment Turnover 437 456 - 4% Start-up Aseng offset by decrease due to vessels in conversion Gross Margin 159 (304) N/A Last year impairment of US$ 450mln Reduction of depreciation plus start-up of Ase
Slide 20: Financial Overview Half Year 2012 - Turnkey Systems
Financial Overview Half Year 2012 P&L Turnkey Systems (in millions of US$) H1 12 H1 11* Variance Comment Turnover 1,096 896 + 22% Increase of turnover driven by LYs orders. Gross Margin 122 165 - 26% Increase of turnover counter-balanced by POC policy US$ 69mln EBITDA 80.0 122 - 35% As above. EBIT 6
Slide 21: Gate review: impact & benefit
Gate review: impact & benefit • According to IAS 11, percentage-of-completion method applied for turnkey systems segment P&L • Gate reviews before margins can be recognised at a level of at least 25% • No impact on margin or profitability at completion • Deferral impact 2012 frontloaded in H1 (US$ 6
Slide 22: Pro forma group results comparisons
Pro forma group results comparisons H1 2012 H1 2011 IFRS POC Adj. Pro forma adjusted IMP. Adj. IFRS Revenues 1,669 1,669 +14% 1,461 1,461 Gross Margin 69 390 +16% 335 321 450 -115 EBITDA 69 404 + 8% 373 373 335 EBIT 69 292 + 17% 223 249 450 -201 © SBM Offshore 2012. All rights reserved. www.sbmoffsh
Slide 23: Pro forma group results comparisons
Pro forma group results comparisons H1 2012 H1 2011 Pro forma adjusted Revenues 1,669 +14% 1,461 EBIT 292 + 17% 249 EBIT margin 17.5% 17% © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 23
Slide 24: Financial Overview Half Year 2012 - Turnkey Services
Financial Overview Half Year 2012 P&L Turnkey Services (in millions of US$) H1 12 H1 11* Variance Comment Turnover 136 108 + 26% Improvement coming from Offshore contracting division through bigger contracts. Gross Margin 40 24 + 67% Good margins recognised on Offshore contracting jobs. EBITDA 37 22
Slide 25: Financial Overview Full Year 2011
Financial Overview Full Year 2011 Balance Sheet Total Group (in millions of US$) H1 12 Year-end 11 Variance Comment Capital Expenditure 326.9 840.6 N/A Yme, Deep Panuke and Cidade de Anchieta Debt 2,178 2,123 + 3% Stable level of debt Net Liquidities 214 165 + 30% Increase by US$ 49mln Net Debt 1,96
Slide 26: Financing capacity
Financing capacity • Record project financing > $1 billion on Ilhabela (July 2012) • Refinancing Normand Installer US$80 mln • Solvency 31.5% (year-end 2011: 30.0%) • Net debt / Adjusted EBITDA 2.2 times (year-end 2011: 2.23 times) • Average cost of debt H1 2012 5.2% (H1 2011: 5.2%) • Cash US$ 214 m
Slide 27: Order portfolio backlog
Order portfolio backlog (in US$ bln) 18 L& O Backlog 16 14 12 10 69% 8 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 6 * 1% Turnkey Backlog 4 2 30% 0 *2012 2013 2014 Turnkey Systems Turnkey Services Lease & Operate * 2012 includes
Slide 28: Outlook
Outlook © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com
Slide 29: FPSO market outlook
FPSO market outlook Field developments with FPSOs over the next 3 years 2 2 2 1 1 7 13 4 3 4 9 6 Lease 8 Sale Lease or Sale August 2012 (source: internal analysis) More than 60 FPSO projects to be awarded, SBM targets around 20 out of them © SBM Offshore 2012. All rights reserved. www.sbmoffshore.co
Slide 30: Financial Outlook 2012
Financial Outlook 2012 • Turnover in the region of US$ 4 billion • Turnkey Systems EBIT margin close to 10% range, reflecting new gross margin recognition principles • Turnkey Services EBIT margin in the 15%-20% range • Lease and Operate EBIT margin in-line with 2011 underlying level • Net financing
Slide 31: Q&A Session
Q&A Session © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com
Slide 32: Notes
Notes © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com