Transocean Ltd (switzerland) · NYSE:RIG
Transocean Ltd (switzerland) — Transocean — Barclays CEO Energy-Power Conference 2017
35 slides from Transocean Ltd (switzerland)'s conference presentation, Sep 7, 2017
Slide 1: Barclays CEO Energy-Power Conference
BARCLAYSCEOENERGY-POWER CONFERENCE JeremyThigpenP, residenatndChieEfxecutiveOfficer Septembe7r2, 017
Slide 2: Legal Disclaimer
LEGALDISCLAIMER Thestatementsdescribedinthispresentati onthaat renoht istoricaflactsareforwar d-lookingstatements withinthemeaningo f Section27AotfheSecurities Acot1f 933a,samendeda, nd Section21EotfheSecuritiesExchangeAcot1f 934a,samended. Thesestatementscontainwords suchas"possible,"intend,"w ill,
Slide 3: Legal Disclaimer (continued)
LEGALDISCLAIMER(CONTINUED) INVESTORSANDSECURITYHOLDERSAREURGEDTOREADCAREFULLYTHEDE FINITIVEPROXYSTATEMENTAND/OR PROSPECTUSREGARDINGTHETRANSA CTIONIN RPORATEDBY NY. oumay ITS/THEIRENTIRETYWHENTHEYBECOMEAVAILA REFERENCEINTHEDEFINITIVEPROXYSTATEMEN obtainf,reeocfhargec,opiesotfhedefini BLE(INCLUDINGANY
Slide 4: Transocean's Leadership Position
TRANSOCEAN’SLEADERSHIPPOSITION 4
Slide 5: Acquisition of Songa Offshore
HarshEnvironment AnnuaSl ynergies; byStatoil Opportunities ACQUISITIONOFSONGAOFFSHORE $4.1BinContracBt acklog into2024 FouNr ewContracted Fit-for-NCSPurposeAllteas$$t 40Min SemisubmersiblesDesignedImprovedRevenueEfficiency AccretiveonanEBITDA, PerfectlyAlignedwith OperatingCashFlowa,nd AsseSt trateg
Slide 6: Value of Songa Acquisition
VALUEOFSONGAACQUISITION SongaEnabler $0.3B *Assumes~95%revenu efficiencyo; perationaclosstynergiesphased-**Maydiffefrromaccountingtreatment inovefrouqr uarterst;axrateo~f 15%d; iscounrtateo8f % 6 Contract Backloga6t /30/17 $4.1B AnnuaElBITDAfrom Backlog $0.4B AnnuaCl ashFlowfromBacklog Total Transac
Slide 7: Harsh Environment Asset Valuations
HARSHENVIRONMENTASSETVALUATIONS Shipyards InUS$millions *Assumesrigisdeliveredtolocati onfoirnitiaclontracatndaccepted Maydiffefrromaccountingtreatment 7 ImpliedSteeVl aluIe/nitiaSl alesPrice$312 $400 ~$500 CapitaSl paresandInventory 253-0 2-53-0 ProjecMt anagement 5 5 - NorwayRegulatoryCompliance10
Slide 8: Floater Opportunities - Start Date Next 18 Months
FLOATEROPPORTUNITIES– STARTDATENEXT18 MONTHS 10 14 1 2 1 2 1 1 2 6 1 4 2 2 1 1 1 3 1 1 1 <6months 6-12months 6 4 1 1 1 1 1 6 1-3years 5 1 rs Independents >3years 1 # Numbeorpf rograms 46rigyearstobeawarded 1 8 NorthSeNa/ orway-TwoMosAt ctiveMarketsToday
Slide 9: Specification - Vessel Data Collection
SPECIFICATION– VESSELDATACOLLECTION 10
Slide 10: Weighting - Tailored by Value - Subjective
WEIGHTING– TAILOREDBYVALUE– SUBJECTIVE Initiarlankingscanbeadjustedby weightingmeasuremenctriteria Setsodf efining vessel/rigcharacteristics Individuaflactorscanbe weightedtosuirtequirements Rigpopulationrankedtop-to-bottombasedon 11
Slide 11: Databases - UDW & HE
DATABASES– UDW&HE 12
Slide 12: Ultra-Deepwater
ULTRADEEPWATER DuaAl ctivity DuaBl OPs7,Rams HookLoad BOP VesseAl ge Passive+ActiveCompensation DPClass 13
Slide 13: Harsh Environment
HARSHENVIRONMENT SurvivaAl irgap MotionCharacteristics Winterization WoW VariableDeckLoad MudCapacity DuaAl ctivity 14
Slide 14: Transocean Fleet Transformation
34 TRANSOCEANFLEE TRANSFORMATION Apri2l 013 2017ProFormaCombinedFleet * 12 10 UDW&HEFloaters 37 45 DW&MW HSJackups * Includesrigscurrentlyundecronstruction • Todate33floatersrecycledwithacontinuedfocusonretiringolderl,esscapableassets • Rigsinthecombinedfleewt ilbl ere-rankedw, hichmayresulitnadditi
Slide 15: Transocean's Industry-Leading Backlog - Pro Forma Songa
US$billions TRANSOCEAN’SINDUSTRY-LEADINGBACKLOG– PRO FORMASONGA 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Remaining2018 2019 20202021 202220232024-28 2017 * Contractedoperatingdayratemultipli edbythecontracdt urationfofrutu reperiodsasof latespt ublic backlogA. lsoincludesagreemenwt ithBorDr r illingt operatetwoj
Slide 16: Current and Future Contracted Floaters
#oFfloaters CURRENTANDFUTURECONTRACTEDFLOATERS 35 30 25 20 15 10 5 0 RIGS/ ONGRIGSDRLDOESV NESONGATWRDC SourceCs:ompanyFleeSt tatusReports 17
Slide 17: Nine Floaters Contracted Through 2021 & Beyond
withShell 5-yeacrontract contractsextendinginto NINEFLOATERSCONTRACTEDTHROUGH2021&BEYOND 4drillshipson 10-yeacrontracts “ImportantonoteR, IGwill nowcontroal lnl inehigh-marginfloatecrontractsin thepublicuniverse 1drillshipon (excludingafewunitsowned withChevron bylocaBl razilianplayers) thawt erepri
Slide 18: Transocean Reactivating for Contracts
TRANSOCEANREACTIVATINGFORCONTRACTS HenryGoodrichDeepwateAr sgard TransoceanBarents GSFDevelopmenDt rilleIr DevelopmenDt rilleIrII 19
Slide 19: Our Assets Are Well Preserved
OURASSETSAREWELLPRESERVED •De-humidificationunitsinstalled •VolatileCorrosionInhibito(rVCI) materialsused •BOPrubbersremovedandBOPfilled withStackguard •Scheduledcyclingocfritical equipment 20 Preservation
Slide 20: Experience Beyond the Competition - UDW
DPRigYearsExperience-UDW EXPERIENCEBEYONDTHECOMPETITION– UDW UnmatchedDeepwateEr xpertise 350 300 250 200 150 100 50 0 Source data © 2017 IHS. All rights reserved. No IHS data/deliverables may be reproduced, reused, or otherwise distributed in any form without IHS’ prior written consent. 21
Slide 21: Experience Beyond the Competition - HE
RigYearsExperience-HE EXPERIENCEBEYONDTHECOMPETITION– HE UnmatchedHarshEnvironmenEt xperience 700 600 500 400 300 200 100 0 Source data © 2017 IHS. All rights reserved. No IHS data/deliverables may be reproduced, reused, or otherwise distributed in any form without IHS’ prior written consent. 22
Slide 22: Predictability & Reliability
PREDICTABILITY&RELIABILITY 23 SubseaWelCl ontro–l TargetedImprovement
Slide 23: Performance Through Collaboration
PERFORMANCETHROUGHCOLLABORATION Old Cost •ImprovingUptimefoCr ustomers •BusinessModeIlnnovation •ReducingTotaCl osotOf wnership New Cost •Reliability-CenteredApproach 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Blowout Preventer (BOP) 24 Benefits
Slide 24: Through Data Performance
THROUGHDATA PERFORMANCE 25
Slide 25: Significant Improvement - UDW Tripping Time
SIGNIFICANTIMPROVEMENT-UDWTRIPPINGTIME aunched 26 RateFt/Hr LI
Slide 26: Service Integration
SERVICEINTEGRATION Flexiblecommerciaml odels Integratedapproach Performancealignment 2010 EfficienwtDayseconlsdtrlucetionlivery per well 310 27
Slide 27: Converting Backlog to Cash
94% 30% 600 CONVERTINGBACKLOGTOCASH REVENUEFFICIENCY REVENUE&EBITDA Trailing5Quarters-99% AdjustedNormalized 102% 2,400 70% 100% 98% 60% 96% 1,800 50% 92% 1,20040% 90% 88% 86% 84% 20% 82% 80% 0 10% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 TotaFlleetUltra-DeepwaterAdNj ormalizedRevenue AdNj
Slide 28: Strong Liquidity
1.0 6/30/17P, ro CashFlow through through Liquidity 2020 Enteredintodefinitiveagreementoacquire • **ExcludesEksportfinansdebt US$Billions STRONGLIQUIDITY 4.0 •Raised~$2.9Bthrough fousr eparatedebt transaction sinceJuly2016 •Opportunisticallyrepurchased 3.0 •~$2.2Bindebvt iatendeor ffers sinceJuly201
Slide 29: Deepwater Competes with Land
DEEPWATERCOMPETESWITHLAND $50 30
Slide 30: Significant Cost Reductions Offshore
SIGNIFICANTCOSTREDUCTIONSOFFSHORE Sources: Morgan Stanley Research, April 2017; Reuters, March 2017 31
Slide 31: Cost Reductions Make Offshore Competitive with Onshore
COSTREDUCTIONSMAKEOFFSHORECOMPETITIVE WITHONSHORE $/bbl Wellhead Breakevens for Major Shale Plays Feb 2017: Shell says breakeven cost of production out of its Gulf of Mexico Kaikias development will be less than $40 per barrel, which is roughly the breakeven price for independent onshore Permian ass
Slide 32: Offshore and Onshore Wells Differ
Offshorewells characterizedby higher 80% relativetothoseonshore. 4000 40% 0 1 2 3 4 5 6 7 8 9 10 all wells targeting GOMDeepwaterU, S(boe/d) GOMDeepwaterU, S(%IP) ShelfU, S ShelfU, S (boe/d) (%IP) WolfcampShaleOnshore(boe/d) olfcampShaleOnshore(%IP) started producing after 2010 June 2017 boe/d Norma
Slide 33: Floater Contracting Activity Is Returning
FLOATER CONTRACTINGACTIVITYISRETURNING Historical Offshore Rig Contracts Awarded 35 Super Major National Independent 30 25 20 15 10 5 200 0 Super Major National Independent Includes new mutual and mutual options Source data © 2017 IHS. All rights reserved. No IHS data/deliverables may be reproduced,
Slide 34: Songa Further Sours Leadership Position Pro Forma
SONGAFURTHERSOURLEADERSHIPPOSITION ProForma 35
Slide 35: Barclays CEO Energy-Power Conference
BARCLAYSCEOENERGY-POWER CONFERENCE JeremyThigpenP, residenatndChieEfxecutiveOfficer Septembe7r2, 017
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