Slide 1: Bumi Armada Berhad 1H 2014 Results Presentation
BUMI ARMADA BERHAD 1H 2014 Results Presentation “Knots Ahead of the Rest”
Slide 2: Disclaimer
Disclaimer This document may contain statements of future expectations and other forward-looking statements based on management's and/or other information providers’ current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or e
Slide 3: 1. External Market & Leading Indicators
1. External Market & Leading Indicators “Knots Ahead of the Rest”
Slide 4: Leading Indicators – Brent Crude Price
Leading Indicators – Brent Crude Price • Prices have remained stable amid global economic/political uncertainty. • Conducive for shallow water & deepwater production. Brent Crude – 3 Year Historical Price Source: Bloomberg 4
Slide 5: Cost efficiency will be critical
Cost efficiency will be critical • Capex and opex costs have effectively more than doubled over the last 10 years. • Costs have held at or near record levels; uptrend will continue. IHS CERA Upstream Capital Cost Index IHS CERA Upstream Operating Cost Index Source: IHS Cera 5
Slide 6: Tight cash-flow for spending or returns in 2014-2017
Tight cash-flow for spending or returns in 2014-2017 Majors: allocation of upstream free cash flows (US$/boe) 2525 120 120 100 100 2020 Spend and margin ($/boe) Spend and margin ($/boe) 8080 Brent ($/bbl) 1515 Brent ($/bbl) Flat Flat$28bn $28bnbuyback buyback 6060 1010 Dividend 4040 Dividendgrowth g
Slide 7: Oil companies are trying to manage their returns
Oil companies are trying to manage their returns • Investment in deepwater will • Oil Cos are having to manage their continue. portfolios. Greenfield project IRRs by theme New project exposure ranked by returns 30 >20% 15-20% 12-15% 10-12% <10% 60% 25 Increasing spend % of total 2014-2018 developmen
Slide 8: North American, Africa and Europe likely to get most of the money
North American, Africa and Europe likely to get most of the money North America is a big focus of Canada – US$122 Europe – US$74 bn discretionary spend 2014-2018, with bn 60% operated by majors Independents prominent. The Majors 12% operated by majors dominate Europe and Africa. Russia and Caspian –
Slide 9: FPSO Demand
FPSO Demand • High fleet growth for the next 5 years. • Continues to be a favoured solution with strong project pipeline. • Spending incurred by FPSO development forecasted by Wood Mackenzie to be >$30 billion per annum by 2016. 9
Slide 10: Market/Prospects
Market/Prospects _ barge!Deepwater Small/Marginal/Generic Zz — | | - 20,06 80FO domed AG oil iePaDor 2 | aS _<150-mmscfd //10,000 BOPD condensate — Dee ~ gas FPSO : : co - MR/ Panamax 5 - NOC + major oil company «2, - NOC + independent oil company ‘ in-strategy (technology, local: Son »~ Cost Strate
Slide 11: Outstanding FPSO Bids
Outstanding FPSO Bids No. Project 1. Eni OCTP, Ghana 2. Eni Etan, Nigeria 3. Tullow Oil Kudu, Namibia 4. Petrobras Tartaruga, Brazil 5. Petrobras Libra, Brazil 6. Cobalt Cameia, Angola 11
Slide 12: 2. Operational Highlights
2. Operational Highlights “Knots Ahead of the Rest”
Slide 13: Operational Highlights – FPSO
Operational Highlights FPSO • Received a Letter of Intent for an FPSO for the Madura BD Field in Indonesia. • Armada Claire completed hook-up to Balnaves field, Australia and achieved first oil. • Contract for eni 15/06 has been signed. The candidate vessel, Armada Ali, is already in the shipyard
Slide 14: FPSO – Madura BD
FPSO – Madura BD Field Details Client/Operator: Husky-CNOOC Madura Limited (HCML) Country: Indonesia Location: Madura Strait East Java, about 65 km east of Surabaya and about 16km south of Madura Island. Water depth: Approximately 182 feet (~55m) FPSO Details Storage: 370,000 bbls Gas Ha
Slide 15: Operational Highlights – OSV and T&I
Operational Highlights OSV • Up to 80% Class-A vessel utilisation. • Commenced fleet renewal exercise with focus on Class-B vessels (sold 1 vessel in H1 2014 with another 4 in advanced negotiations). • 2 MPSV’s delivered in 2014; 4 more to be delivered in 2015. AT 400 Series - due for delivery in
Slide 16: Operational Highlights – OFS and Gas
Operational Highlights OFS • Continue to bid for well service jobs in Europe, West Africa and Malaysia. Gas Development & Technology • Qualified for FLNG FEED • Continued rapid build-up. Bumi Armada FLNG Concept 16
Slide 17: 3. Financial Highlights
3. Financial Highlights “Knots Ahead of the Rest”
Slide 18: Key takeaways
Key takeaways Q2 Net Profit increased 51.9% from RM64.8 mil to RM98.4 mil. YTD Net Profit shed 26.4% from RM221.6 mil to RM163.2 mil Q2 EBITDA increased 17.7% from RM223.1 mil to RM262.6 mil. YTD EBITDA shed 2.5% from RM498.3 mil to RM485.8 mil YTD 2014 EBITDA margins of 46% as compared to 51%
Slide 19: Results Overview – Q2 2014 vs. Q1 2014
Results Overview – Q2 2014 vs. Q1 2014 (in RM’mil) Revenue EBITDA +25.8% Net Profit* 590.1 +17.7% 262.6 +51.9% 98.4 468.9 223.1 64.8 Q1 2014 Q2 2014 Q1 2014 Q2 2014 Q1 2014 Q2 2014 Higher revenue from: • FPSO contribution from ENI 15/06 & Higher EBITDA in line with: Kraken • ENI 15/06 & Kraken FPSO
Slide 20: Revenue composition by business units – Q2 2014 vs. Q1 2014
Revenue composition by business units – Q2 2014 vs. Q1 2014 (in RM’mil) Performance in established segments driven by the underlying activities FPSO OSV +18.3% 231.5 -2.0% 195.7 156.2 153.0 Q1 2014 Q2 2014 Q1 2014 Q2 2014 FPSO ENI 15/06 and higher Kraken contribution Contract completion on certain C
Slide 21: Revenue composition by geographical %
Revenue composition by geographical % Malaysia based international company continued expansion across key regions YTD 2013 YTD 2014 4% 4% 14% 13% 29% 31% 51% 54% 21
Slide 22: Leverage and capitalization
Leverage and capitalization Financial capacity intact to undertake more projects Net Debt / EBITDA(1) Gearing ratio(2) 4.5x 4.0x 4.0x 3.9x 5.1x 4.9x 4.8x 3.5x 3.4x 4.3x 3.0x 4.0x 2.5x 3.2x 2.0x 2.3x 1.9x 1.5x 1.0x 1.1x 1.0x 0.9x 0.9x 0.7x 0.5x 0.0x 2008 2009 2010 2011 2012 2013 Q1 2014 Q2 2014 2008
Slide 23: Order book as at 30 June 2014
Order book as at 30 June 2014 63.2% increase in quality firm backlog to RM21.7 bn (Q1: RM13.3 bn) As at 30 June 2014, the Group’s order book stood at RM21.7 billion compared to RM13.3 billion as at 31 March 2014. Upon expiration of the firm contract period, certain contracts contain extension option
Slide 24: 4. Strategy in Motion
4. Strategy in Motion “Knots Ahead of the Rest”
Slide 25: Bumi Armada has the leading EBITDA margin amongst peers
Bumi Armada has the leading EBITDA margin amongst peers 2013 EBITDA margins 17% 1 Marine-centric Fim EPIC-centric 50% 49% 48% | 28% 26% -_ 12% 1 1 1 1 1 1 1 ! ! 1 1 ! ! 1 1 ! - 1 1 11% 1 1 1 ! Ll = I 2 i= I g ce s = = 8 I s s i] 3; Fei g€ & | $ € $ Seg ¢ | £2 3 s 4 t ky S 1 ° g ao ° = 1 2 = 8 a 38 ¢
Slide 26: Target to be 4th largest FPSO player
Target to be 4* largest FPSO player Expanding FPSO operator with target to be the 4th largest by fleet size 18 Moved up 3 ranks ; 16 a since IPO in 2011 12 10 8 4 5 ; i) » @ModeEC K 5 WATER mise Qi Kost Petrofac () W@EZRAIBEMAS ssil TEEKAY CORPORATION BUMIARMADA a Nn =Existing vessels = Expected new
Slide 27: Continued efficient balance sheet and orderbook growth
Continued efficient balance sheet and orderbook growth Net capital raised and gearing Capex NTA and ROIC Orderbook (RM mn) (RM mn) (RM mn) 7.9% (RM bn) 0.9x 0.9x 7.2% a a a a 6.5% | a 4,379 1,301 3,373 5,766 +#121% 3,541 1,109 2,242 | 2,106 ] | I Fy2011 FY2012 FY2013 iJ FY2011 FY2012 FY2013 Joa FY20
Slide 28: Strong organic growth since IPO
Strong organic growth since IPO Historical orderbook (RM’ bil) 35 317 30 I-75 : 1 I ase I 25 207 8% ner ; 22.1 | 22.2 | 20 1.6 15 a 10.1 10.6 10.5 10.7 aa | i i i a i . Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 o =FPSO =OSV ~T&l “1 Eni Angola Block 15/06 LOI Bumi Armada has g
Slide 29: Thank You.
Thank You. “Knots Ahead of the Rest”