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Sbm Offshore Nv — UBS Presentation Brazil (December 2018)

22 slides from Sbm Offshore Nv's conference presentation, Dec 10, 2018

Slide 2: Disclaimer
Disclaimer The companies in which SBM Offshore N.V. directly and indirectly owns investments are separate legal entities. In this presentation “SBM Offshore” and “SBM” are sometimes used for convenience where references are made to SBM Offshore N.V. and its subsidiaries in general. These expressions
Slide 4: Leading Global FPSO Contractor
Leading Global FPSO Contractor 1st > 50 2 FAST4WARDTM CONCEPT FLOATING PRODUCTION LARGE PROJECTS UNDER TO PROJECT AWARD SYSTEMS DELIVERED CONSTRUCTION 10% 99% Early and late GLOBAL DEEPWATER OIL HISTORICAL OIL cycle player PRODUCED BY SBM UNITS PRODUCTION UPTIME © SBM Offshore 2018. All rights reser
Slide 5: Why SBM Offshore, and why now..?
Why SBM Offshore, and why now..? +25% 50% of Deepwater projects Global energy demand more competitive than growth by 2040 Shale TM © SBM Offshore 2018. All rights reserved. www.sbmoffshore.com 5
Slide 7: Oil Remains Primary Source
Oil Remains Primary Source World Energy Consumption by Energy Source (quadrillion Btu) History Projection 250 200 150 100 50 0 1990 2000 2010 2020 2030 2040 Source: EIA International Energy Outlook 2018 © SBM Offshore 2018. All rights reserved. www.sbmoffshore.com 7
Slide 8: Supply Gap
Supply Gap World Oil Supply and Demand Lack of investment since 2014 Million bbls/d Supply gap projected Investment required Existing supply + planned fields Extra recovery existing fields Demand range Not if, but when Source: IEA © SBM Offshore 2018. All rights reserved. www.sbmoffshore.com 8
Slide 9: Deepwater is Competitive
Deepwater is Competitive 140 Oil Projects Cost Curve1 120 Deepwater Break-even Price 100 Deepwater continues to gain (bbl/US$) Traditional Shale 80 competiveness 60 40 20 0 0 5,000 10,000 15,000 >50% Deepwater projects Cumulative Peak Oil Production (kboe/d) more competitive than shale 60 Project Ec
Slide 10: Overall FPSO Market
Overall FPSO Market As per 1H 2018 Historical and Estimated Total FPSO Market Awards 18 16 14 Up to 10 awards expected in 2018 12 7 10 3 8 5 6 2019 acceleration anticipated 3 4 6 2 3 3 2 2 1 1 1 1 11 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 e2018e2019 SBM Offshore Awards FP
Slide 12: Fast4Ward™
Fast4Ward™ TM Fast4Ward™ is based on five key principles Our ambition is to transform the 1. Client first business by reducing cycle time to 2. Standardization energy delivery, de-risking 3. Flawless execution projects, and improving quality & 4. Integrated supply chain 5. Enabling digital solutions
Slide 13: The Answer: Reducing cycle time
The Answer TM Fast4Ward™ Better Performance, Delivered Faster Reducing cycle De-risking Enabling lower time projects break-evens Up to 12 months faster; Standardized hull and Lower Capex and Opex Up to $1 bn NPV gain topsides Less engineering hours Integrated supply chain Greater safety and reliabil
Slide 14: Time is Money
Time is Money 50% Time to First Oil Scenarios1 Fast4WardTM accelerates first 1 yr gain 40% oil up to 12 months On time delivery Oil Company IRR 30% 1 yr delay 2 yr delay 20% 3 yr delay Up to US$1 billion NPV gain 10% 0% 30 40 50 60 70 80 90 100 110 120 US$/bbl Every 1 year acceleration improves brea
Slide 15: Experience Matters
Experience Matters SBM Offshore delivered 10 out of 16 FPSOs closest to schedule * * * ** Average * 11 months delay Non-SBM Offshore Contractors * Redeployment * Generation 3 FPSO * * -5 N=50 5 15 25 35 Source: Goldman Sachs, Rystad Energy, SBM Offshore company research (1) Profitability Index = NPV
Slide 16: Industry Experience
Industry Experience 250 Cumulative Operating Experience (Yrs) 200 150 Unique track record in EPC, FPSO delivery and operations 100 3 800 kboepd 50 1 600 kboepd 0 1 6 11 16 21 26 31 36 41 Cumulated FPSOs Built (as main contractor) SBM Offshore’s unique experience = Industry peers, bubble size relates
Slide 18: Brazil Experience
Over 20 Years Brazil Experience 7 UNITS 15 Units 1,700 OPERATING IN BRAZIL DELIVERED IN BRAZIL EMPLOYEES IN BRAZIL 630 kbopd 25% 40% SBM DAILY BRAZILIAN OF TOTAL BRAZILIAN OF THE DAILY PRE-SALT OIL PRODUCTION OFFSHORE OIL PRODUCTION PRODUCTION © SBM Offshore 2018. All rights reserved. www.sbmoffshor
Slide 19: 7 Brazilian FPSOs in Operation
7 Brazilian FPSOs in Operation Cidade de Espirito Capixaba Anchieta Santo Cidade de Paraty Cidade de Cidade de Maricá Saquarema Cidade de Ilhabela © SBM Offshore 2018. All rights reserved. www.sbmoffshore.com 19
Slide 20: Top-10 Brazilian Producing Units
Top-10 Brazilian Producing Units BOPD as per July 2018 151k 146k 145k 144k 136k 130k 120k 111k 110k 77k FPSO CIDADE DE FPSO CIDADE DE PETROBRAS 58 PETROBRAS 66 FPSO CIDADE DE FPSO CIDADE DE FPSO CIDADE DE FPSO CIDADE DE FPSO CIDADE DE PETROBRAS 52 MARICÁ SAQUAREMA (P-66) ILHA BELA ITAGUAÍ PARATY MAN
Slide 21: Production Evolution in Brazil
Production Evolution in Brazil SBM is a key oil producer in Brazil + Capixaba + Anchieta + Paraty + Ilhabela + Maricá + Saquarema (Cach.) > 600,000 bopd SBM DAILY OIL - Espadarte - Brasil - MLS PRODUCTION IN BRAZIL > 45% OF THE DAILY PRE-SALT PRODUCTION > 25% OF THE DAILY BRAZIL PRODUCTION IN MAY 7

SBM Offshore — UBS Presentation Brazil (December 2018) on 6ix

Sbm Offshore Nv — UBS Presentation Brazil (December 2018)

Slide 1: SBM Offshore UBS Presentation Brazil

Slide 2: Disclaimer

Slide 3: Introduction

Slide 4: Leading Global FPSO Contractor

Slide 5: Why SBM Offshore, and why now..?

Slide 6: Macro environment

Slide 7: Oil Remains Primary Source

Slide 8: Supply Gap

Slide 9: Deepwater is Competitive

Slide 10: Overall FPSO Market

Slide 11: Fast4Ward

Slide 12: Fast4Ward™

Slide 13: The Answer: Reducing cycle time

Slide 14: Time is Money

Slide 15: Experience Matters

Slide 16: Industry Experience

Slide 17: SBM Offshore Brazil

Slide 18: Brazil Experience

Slide 19: 7 Brazilian FPSOs in Operation

Slide 20: Top-10 Brazilian Producing Units

Slide 21: Production Evolution in Brazil

Slide 22: Q&A