Sbm Offshore Nv · EURONEXT:SBMO

Sbm Offshore Nv — Sbm Offshore Nv Ord — Q4 2021 Earnings Presentation

47 slides from Sbm Offshore Nv's earnings presentation, Feb 10, 2022

  1. Slide 1: Earnings Update

    EARNINGS UPDATE February 10, 2022 ENERGY. COMMITTED.

  2. Slide 2: Disclaimer

    Disclaimer 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

  3. Slide 3: Energy transition as a business model

    Energy transition as a business model ENERGY TRANSITION COMPANY REDUCE COSTS AND EMISSIONS DEVELOP COMPETITIVE FROM O&G PRODUCTION RENEWABLE ENERGY SOLUTIONS VALUE PLATFORMS OCEAN INFRASTRUCTURE GROWING THE CORE NEW ENERGIES Contractual Fleet uptime Emissions Digital backlog performance reduction se

  4. Slide 4: Highlights

    Highlights STRONG DELIVERY RECORD PERFORMANCE ENERGY TRANSITION FPSO Liza Unity on track for first oil in 1Q22 <0.1 TRIFR1 c. 30% gas flaring reduction over the last 5 years Fleet uptime US$29.5 billion record backlog c. 10% fleet GHG intensity reduction vs 2020 EBITDA Guidance delivered US$4.8 bill

  5. Slide 5: Strong performance driving shareholder returns

    Strong performance driving shareholder returns US$ millions Dividend Share repurchase Dividend US$ per share 13% DIVIDEND INCREASE $1.00 to US$1.00 per share $0.89 $0.81 6 CONSECUTIVE YEARS of growing dividends 178 165 $0.37 166 $0.23 $0.25 $0.21 196 180 1 150 165 > US$ 1.4 BILLION 75 Returns over t

  6. Slide 6: ESG, Ocean Infrastructure, Growing the Core, New Energies, FY21 Financials, Outlook

    ESG Ocean Infrastructure Growing the Core New Energies FY 2021 Financials Outlook ENERGY. COMMITTED.

  7. Slide 7: Supporting clients' net zero emission commitments

    Supporting clients’ net zero emission commitments SBM Offshore Reported Emissions 2021 – based on CO2e volumes NEAR ZERO SCOPE 1 & 2 AMONG LOWEST UPSTREAM EMISSIONS INTENSITY1 for deep water oil fields emissionZERO® emissions reduction program on track NET ZERO BY 2050 scope 1, 2 and 3 (Downstream L

  8. Slide 8: A recognized strong 2021 ESG performance

    A recognized strong 2021 ESG performance Improving External Recognition 10 SDG-linked Company targets Ranking: 95th percentile Relative position: #1 amongst peers1 Rating: A [AAA= max, CCC=min] Rating: B [A= max, D- = min] (1) From 1st among peers adjusted for market capitalization to 1st among peer

  9. Slide 9: Continuously raising the ESG ambition

    Continuously raising the ESG ambition EXPAND SUSTAINABILITY FOCUS AND ACTIONS human rights, diversity and inclusion, circularity R&D INVESTMENT in EU taxonomy eligible activities NET ZERO BY 2050 strategy and actions aligned with ambition ENERGY. COMMITTED. © SBM Offshore 2022. All rights reserved.

  10. Slide 10: ESG, Ocean Infrastructure, Growing the Core, New Energies, FY21 Financials, Outlook

    ESG Ocean Infrastructure Growing the Core New Energies FY 2021 Financials Outlook ENERGY. COMMITTED.

  11. Slide 11: Maintained business continuity in a safe environment

    Maintained business continuity in a safe environment COVID-19 PANDEMIC ongoing protocols to manage safety, stress and fatigue 99.1% FLEET UPTIME out of 15 units and in line with historical track record BEST OIL PLATFORM OPERATIONS award received from key client Petrobras1 (1) Received for the second

  12. Slide 12: ESG, Ocean Infrastructure, Growing the Core, New Energies, FY21 Financials, Outlook

    ESG Ocean Infrastructure Growing the Core New Energies FY 2021 Financials Outlook ENERGY. COMMITTED.

  13. Slide 13: Reliable execution despite pandemic challenges

    Reliable execution despite pandemic challenges Percentage Expected of completion1 First Oil FPSO Liza Unity > 75% 2022 FPSO Sepetiba > 50% < 75% 2023 FPSO Prosperity > 50% < 75% 2024 FPSO Almirante Tamandaré < 25% 2024 FPSO Alexandre de Gusmão < 25% 2025 Yellowtail project2 FEED - - (1) As of Decemb

  14. Slide 14: Getting ready to deliver FPSO Liza Unity

    Getting ready to deliver FPSO Liza Unity Safely moored and on track toward ESTIMATED FIRST OIL IN 1Q22 FIRST FAST4WARD® FPSO to be delivered 220,000 BARRELS/DAY largest operating capacity WORLD’S FIRST FPSO with SDG-linked class notation SUSTAIN-1 ENERGY. COMMITTED. © SBM Offshore 2022. All rights r

  15. Slide 15: Selective and disciplined in a favorable FPSO market outlook

    Selective and disciplined in a favorable FPSO market outlook Potential awards area 2022 – 2024 12 11 10 10 9 9 7 8 avg. / year 2 1 1 4 3 4 3 2 1 2 1 2 11 '17 '18 '19 '20 '21 '22-24 SBM FPSO Awards FPSO Awards to others Potential awards Potential awards Source: SBM Offshore market intelligence ENERGY

  16. Slide 16: ESG, Ocean Infrastructure, Growing the Core, New Energies, FY21 Financials, Outlook

    ESG Ocean Infrastructure Growing the Core New Energies FY 2021 Financials Outlook ENERGY. COMMITTED.

  17. Slide 17: Positioning in the full Floating Offshore Wind value chain

    Positioning in the full Floating Offshore Wind value chain CO-DEVELOPMENTS 2 x 100MW Llŷr project 60MW Cademo project Development PROVENCE GRAND LARGE 25MW wind farm pilot project under construction Execution FLOATING COMMERCIAL WIND FARMS supporting developers as EPCI contractor in key countries Op

  18. Slide 18: Tension Leg Platform benefits enhanced by Float4Wind

    Tension Leg Platform benefits enhanced by Float4WindTM SIMPLER DESIGN TO PRODUCE AND BUILD MASS PRODUCTION OF COMPONENTS SHORTER PLANNING EXECUTION OFFERING COMPETITIVE SOLUTIONS ENERGY. COMMITTED. © SBM Offshore 2022. All rights reserved. www.sbmoffshore.com 18

  19. Slide 19: Floating Offshore Wind market outlook improving

    Floating Offshore Wind market outlook improving 6-16GW potentially installed by 2030 Engaging in ALL KEY MARKETS TARGETING AT LEAST 2GW BY 2030 installed capacity or under construction AMBITION TO BE TOP 3 floating technology provider KEY FLOATING OFFSHORE WIND AWARD AREAS (2022-2030) Source: SBM Of

  20. Slide 20: ESG, Ocean Infrastructure, Growing the Core, New Energies, FY21 Financials, Outlook

    ESG Ocean Infrastructure Growing the Core New Energies FY 2021 Financials Outlook ENERGY. COMMITTED.

  21. Slide 21: Financial Highlights

    Financial Highlights US$29.5 BILLION US$4.8 BILLION 10% CASH RETURN YIELD3 Record backlog1 Financings2 closed to secure growth US$343 million cash returned to shareholders in 2021 (1) Reflects a pro-forma view of the Company’s Directional backlog, refer to 2021 Annual Report for details (2) Financin

  22. Slide 22: Directional Overview

    Directional Overview1 Pro-forma backlog (US$ billions) Net debt (US$ billions) 29.5 21.6 5.4 4.1 FY 2020 FY 2021 FY 2020 FY 2021 Revenue (US$ millions) EBITDA (US$ millions) 2,368 2,317 Underlying 1,021 931 Underlying 2,291 Underlying 2,242 944 Underlying 849 FY 2020 FY 2021 FY 2020 FY 2021 (1) Dire

  23. Slide 23: 2021 Sources and Uses of Cash and Liquidity

    2021 Sources and Uses of Cash and Liquidity Directional, US$ millions Group liquidity (US$ billions) Cash from Operations1 Debt drawdowns2 Other Sources of cash 853 2,431 77 0.9 1.1 1.0 Uses of cash 486 155 66 165 63 1,486 178 86 Net cash Debt repayment Tax Growth SBB Other Undrawn RCF (including le

  24. Slide 24: c. 30 years of net cash flow visibility from L&O and BOT

    c. 30 years of net cash flow visibility from L&O and BOT1 Directional, US$ millions US$29.5 b L&O and BOT net cash translated in EUR/share3 Pro-forma 23 21 19 backlog1 TK 2.6 BOT 2.4 700 6% 7% 8% 600 Average L&O net cash p.a. after tax Discount rate c. US$365 million until 2027 500 c. US$300 million

  25. Slide 25: Capital Allocation & Shareholder Returns Model

    Capital Allocation & Shareholder Returns Model US$ millions US$ 29.5 b Pro-forma backlog Growth + 700 Net Cash Backlog Dividend = 600 500 + 400 Acceleration Growth 300 Accelerated equity cash flow 200 100 Lower debt Higher debt Share Repurchase - US$ billions New Equity Y0 Y1Y1 Y2Y2 YnYn Original De

  26. Slide 26: Building track-record of industry leading shareholder returns

    Building track-record of industry leading shareholder returns US$ millions US$ Dividend per share 30% Annual growth rate1 2 1.00 9% 9% 10% 7% Total Cash Yield 0.89 0.81 2% 4% 5% 7% Dividend Yield 178 0.37 165 0.23 0.25 196 0.21 2 150 165 180 75 2016 2017 2018 2019 2020 2021 2022 2019 2020 2021 2022

  27. Slide 27: ESG, Ocean Infrastructure, Growing the Core, New Energies, FY21 Financials, Outlook

    ESG Ocean Infrastructure Growing the Core New Energies FY 2021 Financials Outlook ENERGY. COMMITTED.

  28. Slide 28: 2022 Guidance

    2022 Guidance DIRECTIONAL EBITDA Around 900 million US$ DIRECTIONAL REVENUES Above 3.1 billion US$ LEASE & OPERATE Around 1.6 billion US$ TURNKEY Above 1.5 billion US$ The Company highlights that the direct and indirect impact of the pandemic could continue to have a material impact on the Company’s

  29. Slide 29: Solid foundation for a responsible future

    Solid foundation for a responsible future LEADING EXPERIENCE ENERGY TRANSITION BUSINESS PREDICTABLE CASHFLOW ~360 years of cumulative operating experience Lowering carbon footprint of O&G ~US$300 million avg. annual L&O net cash until 20501 >500 floating solutions delivered over the last 60 years In

  30. Slide 30: Appendix

    APPENDIX ENERGY. COMMITTED.

  31. Slide 31: Financial performance per segment

    Financial performance per segment Directional, US$ millions Lease and Operate Turnkey Underlying Revenue Underlying EBITDA Revenue EBITDA 1,622 1,584 1,031 989 733 669 19 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 -9 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 “Other” Underl

  32. Slide 32: Lease and Operate

    Debt supporting L&O projects Directional, US$ billions Assets Liabilities and net assets Group liquidity Property, Plant & Equipment 0.21 Financial assets 0.1 Net working capital, Other provisions and other 0.7 Cash and cash equivalents 1.1 Lease Liabilities (IFRS 16) 0.1 Other net assets 0.6 0.9 1.

  33. Slide 33: Debt enables growth

    Debt enables growth Directional, US$ billions Net debt/ Backlog ratio 45 20% Historical Range 40 14% – 20% 35 15% 30 29.5 25 10% 20 21.6 20.7 15 17.1 16.8 14.8 5% 10 1 5.3 3.1 3.3 4.0 5 2.7 2.2 - 0% 2016 2017 2018 2019 2020 2021 Pro-forma Backlog Net Debt (excluding IFRS 16) Debt to Backlog (1) US$6

  34. Slide 34: Pro-forma Backlog and borrowings repayment

    Pro-forma Backlog1 and borrowings repayment Directional, US$ billions 2 (1) Backlog is the undiscounted revenue over the firm portion of the contracts. The backlog at FY 2021 reflects the following key Turnkey TK 2.6 Pro-forma Directional L&O and BOT backlog assumptions: the FPSO Liza Destiny contra

  35. Slide 35: Group P&L and underlying items

    Group P&L and underlying items Directional, US$ millions Group P&L Directional underlying items US$ millions FY 2020 FY 2021 Variance US$ millions FY 2020 FY 2021 Impact P&L Revenue 2,368 2,242 (126) Deep Panuke termination fee 77 (75) Revenue Underlying Revenue 2,291 2,317 26 Subtotal Revenue impac

  36. Slide 36: Turnkey and Lease and Operate P&L

    Turnkey and Lease and Operate P&L Directional, US$ millions Turnkey Comments US$ millions FY 2020 FY 2021 Variance Liza Unity, Prosperity, Sepetiba, Almirante Tamandaré, Alexandre Ongoing Projects Revenue 669 733 64 de Gusmão, Yellowtail and other various business including PGL Gross Margin 48 93 45

  37. Slide 37: 2021 Sources and Uses of Cash

    2021 Sources and Uses of Cash Directional, US$ millions L&O 989 Turnkey 19 Other (76) Underlying EBITDA 931 Deferred income (79) Cash from Operations Debt drawdowns1 Other Sources of cash 853 2,431 77 Uses of cash 486 155 66 165 63 1,486 178 86 Debt repayment Tax Growth SBB Other (including lease li

  38. Slide 38: Balance Sheet

    Balance Sheet Directional, US$ millions Comments on variation US$ millions 31-Dec-2020 31-Dec-2021 Variance Capitalization of FPSO projects partially offset by depreciation over the Property, plant & equipment and Intangibles 6,133 7,234 1,100 period Investment in associates and other financial asse

  39. Slide 39: Lease qualification and consolidation methods

    Lease qualification and consolidation methods as of 31 December 2021, IFRS 10 & 11 Assets Lease Contract Type SBM Share % Directional IFRS FPSO N’Goma FL 50% Proportional Equity FPSO Saxi Batuque FL 50% Proportional Equity FPSO Mondo FL 50% Proportional Equity FPSO Cidade de Ilhabela FL 75% Proporti

  40. Slide 40: External loans and borrowings

    External loans and borrowings Directional, US$ millions Net book value as of December 31, 2021 Full Amount IFRS Directional PROJECT FINANCE FACILITIES DRAWN FPSO Cidade de Paraty 195 195 123 FPSO Cidade de Anchieta 239 239 239 FPSO Cidade de Ilhabela 805 805 604 FPSO N’Goma 325 - 162 Normand Install

  41. Slide 41: Group net debt and borrowings

    Group net debt and borrowings Directional, US$ millions Net debt Undrawn facilities + cash 6,500 925 4,500 5,401 1,059 4,093 2,500 1,000 500 (1,500) FY 2021 FY 2020 FY 2021 Undrawn RCF Net cash Undrawn project debt Net cash Project debt Lease liabilities Average cost of debt1 FY 2021 borrowings and

  42. Slide 42: All covenants are satisfied

    Revolving Credit Facility Covenants Key financial covenant FY 2021 Definition1 Solvency ratio > 25%  29% IFRS Tangible net worth divided by total tangible IFRS assets Interest cover ratio > 4.0  5.5 Directional Underlying EBITDA divided by net interest payable Represents maximum theoretical lendin

  43. Slide 43: Sustainable Development Goals 2021 achievements

    Sustainable Development Goals 2021 achievements ENERGY. COMMITTED. © SBM Offshore 2022. All rights reserved. www.sbmoffshore.com 43

  44. Slide 44: Sustainable Development Goals 2022 targets

    Sustainable Development Goals 2022 targets ENERGY. COMMITTED. © SBM Offshore 2022. All rights reserved. www.sbmoffshore.com 44

  45. Slide 45: Sustainable Development Goals Long-term targets

    Sustainable Development Goals Long-term targets ENERGY. COMMITTED. © SBM Offshore 2022. All rights reserved. www.sbmoffshore.com 45

  46. Slide 46: Lease and Operate portfolio

    Lease and Operate portfolio 2006 2016 2021 2026 2036 2046 1st Oil Vessel Name Client Country date FPSO Serpentina (1) MEGI E.GUINEA 2003 04/2017 04/2022 Initial Lease Period FPSO Capixaba PETROBRAS BRAZIL 2006 05/2006 06/2008 04/2010 06/2022 Contractual Extension Option FPSO Kikeh PTTEP MALAYSIA 200

  47. Slide 47: Energy. Committed.

    ENERGY. COMMITTED.

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