Subsea 7 S.a. · OSL:SUBC

Subsea 7 — Investor Day (June 2024)

73 slides from Subsea 7's investor day presentation, Jun 18, 2024

Slide 2: Forward looking statements
Forward looking statements Today’s presentations contain ‘forward-looking statements’ (within the meaning of the safe harbour provisions of the U.S. Private Securities Litigation Reform Act of 1995). These statements relate to our current expectations, beliefs, intentions, assumptions or strategies
Slide 3: Agenda
Agenda 10:00 – Welcome 10:05 – Subsea7 Group John Evans, CEO 10:25 – Subsea and Conventional Olivier Blaringhem, EVP Subsea and Conventional 10:55 – Break 11:10 – Subsea7 Norway Monica Th. Bjørkmann, SVP Norway Aker BP and Subsea Alliance Knut Sandvik, SVP Projects at Aker BP 11:50 – Financial perfo
Slide 4: Today’s presenters
Today’s presenters John Evans Olivier Blaringhem Monica Bjørkmann Chief Executive Officer EVP Subsea and Conventional SVP Subsea7 Norway Knut Sandvik Mark Foley Phil Simons SVP Projects, Aker BP Chief Financial Officer EVP Projects and Operations 4 © Subsea7 - 2024 subsea7.com
Slide 5: Make Possible Video
} Make Possible Video
Slide 8: At a glance
At a glance Modern, 1,000+ projects 15,000 capable and delivered people diverse fleets worldwide of 40 vessels Infrastructure Large Operating of pipeline supplier in 30+ spoolbases, network of countries fabrication and 8,000+ support yards 8 © Subsea7 - 2024 subsea7.com
Slide 9: Our business units
Our business units Subsea7 is a global leader in the delivery of offshore Seaway7, part of Subsea7 Group, is a global leader in the projects and services for the energy industry. Subsea7 delivery of bottom-fixed offshore wind farm solutions, makes offshore energy transition possible through the comm
Slide 10: Our vision and values framework
Our vision and values framework OUR VISION OUR VALUES OUR STRATEGY To make possible We create Lower carbon oil and gas the global delivery sustainable value continuous evolution by delivering of offshore energy for • Subsea and Conventional the offshore energy today and tomorrow. transition solution
Slide 11: How we Make Possible
How we Make Possible Early engagement Integrated Digital and system innovation services solutions Collaboration Sustainable Enabling and partnerships delivery products 11 © Subsea7 - 2024 subsea7.com
Slide 12: Exposure to two growth markets
Exposure to two growth markets Subsea spending Offshore wind capacity (Capex and opex, $ billion) (Cumulative, GW) 25 70 60 20 50 15 40 30 10 20 5 10 0 0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2019 2020 2021 2022 2023 2024 2025 2026 2027 Ultra deepwater Deepwater Europe Asia Americas Source: R
Slide 13: Tier 1 competitors in subsea and offshore wind
Tier 1 competitors in subsea and offshore wind 13 © Subsea7 - 2024 subsea7.com
Slide 14: Creating shareholder value
Creating shareholder value $2 billion returned between 2012 and 2023 Shareholder returns >$1 billion committed between 2024 and 2027 Use of excess cash assessed annually Balance sheet Maintain investment grade credit characteristics Re-investment to access opportunities Disciplined reinvestment Retu
Slide 15: Clear strategy to deliver returns
Clear strategy to deliver returns Differentiated Proven track Delivering in the Financial Shareholder offering record of delivery energy transition strength returns 15 © Subsea7 - 2024 subsea7.com
Slide 16: Olivier Blaringhem, EVP Subsea and Conventional
Olivier Blaringhem, EVP Subsea and Conventional 16 © Subsea7 - 2024 subsea7.com
Slide 17: Subsea and Conventional – 2023 revenue $5bn at 12% EBITDA
Subsea and Conventional – 2023 revenue $5bn at 12% EBITDA 17 © Subsea7 - 2024 subsea7.com
Slide 18: Solutions that optimise lifecycle economics
Solutions that optimise lifecycle economics Early engagement Digital and system innovation solutions Collaboration Sustainable and partnerships delivery Enabling Integrated products services 18 © Subsea7 - 2024 subsea7.com
Slide 19: Early Engagement and Systems Innovation
Early Engagement and Systems Innovation • Optimising and rationalising field architecture • Securing supply chain and project enablers • Identifying and mitigating risk • Accelerating the development process 19 © Subsea7 - 2024 subsea7.com
Slide 23: Sustainable Delivery
Sustainable Delivery Health, safety and Operational Energy wellbeing eco-efficiency transition Business Labour practices Ecological ethics and human rights impacts 23 © Subsea7 - 2024 subsea7.com
Slide 25: Delivering the value of integration across the client spectrum
Delivering the value of integration across the client spectrum Pore to Process™ $8 billion >25% of integration Offshore awarded in Subsea7 revenue CCS 8 years 25 © Subsea7 - 2024 subsea7.com
Slide 26: Delivering market leadership in Brazil
Delivering market leadership in Brazil Early engagement and system innovation Bacalhau Mero 3 & 4 Enabling products Búzios 8 Búzios 9 Integrated services Bijupirá Salema Four PLSVs 26 © Subsea7 - 2024 subsea7.com
Slide 27: Delivering long-term value through true partnerships
Delivering long-term value through true partnerships Early engagement and system innovation Selected to unlock Wisting and Bay du Nord reserves Integrated services 17 subsea projects delivered since 2016 Sustainable delivery Exclusive alliance in Digital solutions certain geographies 27 © Subsea7 -
Slide 28: Delivering industry record for greenfield – Sakarya
Delivering industry record for greenfield – Sakarya Early engagement and system innovation Nationally important project Direct award Enabling products First gas after 30 months Integrated offshore/onshore Collaboration and with OneSubsea and SLB partnerships Integrated Life of Field Integrated servi
Slide 29: Delivering in new energy markets – Northern Lights
Delivering in new energy markets – Northern Lights Enabling products Utilising assets and transferring competencies to Sustainable delivery new energy opportunity Extending offering in CCS Paving the way for future CCS projects 29 © Subsea7 - 2024 subsea7.com
Slide 30: Leveraging the strategy in selective bidding
Leveraging the strategy in selective bidding Europe Total $21 billion North and Central America BP Clair Ridge Expansion (i) Beacon Zephyrus Equinor Fram Sør Monument Wisting (i, f) BP Tie-back projects Northern Lights 2 Chevron Tie-back projects Aker BP Tie-back projects Saudi Arabia Woodside Calyp
Slide 31: Monica Th. Bjørkmann, SVP Norway Knut Sandvik, SVP Projects, Aker BP
Monica Th. Bjørkmann, SVP Norway Knut Sandvik, SVP Projects, Aker BP 31 © Subsea7 - 2024 subsea7.com
Slide 35: We have innovated throughout the evolution of Norway oil and gas
We have innovated throughout the evolution of Norway oil and gas 1990s 2000s 2010s 2020s Capacity and consolidation Deepwater and EPCI Contractor-led and Integrated Sustainability Paragon Engineering NKT Seaway7 Comex Services Stolt Comex ETPM Stolt Acergy Seaway Offshore Xodus Xodus Stolt Nielsen S
Slide 37: Norway operations at a glance
Norway operations at a glance Vigra spool base 1 600 people 16 ongoing 34% female projects 66% male Oslo 3 Office 2 Stavanger Office Dusavik base 7 vessels ~1000 offshore suppliers 37 © Subsea7 - 2024 subsea7.com
Slide 38: Norway – backlog
Norway – backlog • Aker BP currently dominating our Backlog by client; 2024-2028 ($2.3bn) backlog • Equinor fewer projects from temporary tax regime, resulting in less ongoing work • Subsea Integration Alliance working for OKEA and Shell in Norway leveraging the technology of OneSubsea 38 © Subsea7
Slide 39: Norway – future awards to the market
Norway – future awards to the market 2024-2026 SURF 2024-2026 Awards SURF Byclient awards by Client ( Ca 5bn$) (~$5bn) • Equinor maturing a large project portfolio • Expect continued high activity with Aker BP * • Increased opportunities with SIA long term * * * Client partnership agreements 39 © Su
Slide 41: Subsea7 Investor Day
Subsea7 Investor Day Knut Sandvik, SVP Projects 18 June 2024
Slide 42: Creating an E&P champion on NCS
Creating an E&P champion on NCS through M&A and Development Projects 500,000 457k 400,000 300,000 200,000 100,000 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 42
Slide 43: World-class oil and gas portfolio
World-class oil and gas portfolio Large scale, low risk assets on the Norwegian Continental Shelf Investment1 Emissions2 Production2 Harstad ~20 2.9 457 USD bn (net) kg CO2e/boe mboepd Sandnessjøen Skarv Trondheim Johan Sverdrup Edvard Grieg / Ivar Aasen Valhall area Partner, 31.6% Operator, ~35-65%
Slide 44: Developments to drive growth and value creation
Developments to drive growth and value creation Planning to produce around 525 mboepd in 2028 Production outlook Our project portfolio mboepd ~525  Net resources of 770 mmboe 410-440  The projects lift Aker BP’s production by 250-300 mboepd in 2028  Low CO2 emission intensity  Full-cycle portfol
Slide 45: Our key principles for successful project execution
Our key principles for successful project execution Alliance model a key enabler, Subsea Alliance (SSA) established in 2016 Partnerships Standardisation Frontloading  Competence and learning  Well designs and equipment  Early planning and maturation  Continuity  Topside and subsea equipment  S
Slide 46: Aker BP project overview
Aker BP project overview Subsea Alliance involved in the majority of Aker BPs large current portfolio of projects Asset area Field development Gross capex estimate SSA2) involvement Production start Frosk USD 0.3bn √ 2023 √ Alvheim Kobra East & Gekko USD 1.1bn √ 2023 √ Tyrving USD 0.7bn √ 2024 Hanz
Slide 47: Taking the Subsea Alliance to the next level
Taking the Subsea Alliance to the next level Building on track record of predictable deliveries  So far executed 17 projects of total revenue of ~17 NOK billions – all within budget  Currently 6 projects in execution with a revenue of ~33 NOK billions  Subsea Alliance main location at the Subsea
Slide 48: Yggdrasil Video
} Yggdrasil Video
Slide 49: Project execution progressing according to plan
Project execution progressing according to plan Moving from engineering and procurement phase to construction  Key milestones achieved and main contracts placed  Fabrication well underway  Subsea and drilling progressing well  Capex estimate in line with plans  Tyrving start-up accelerated to 2
Slide 50: The NCS future is subsea
The NCS future is subsea However, the easy barrels are gone Subsea tiebacks to dominate Innovation required for viability Partnerships with best suppliers 50
Slide 51: Knut and Monica – conversation
Knut and Monica – conversation What are the And what are the What is the value What is the opportunities challenges? for Subsea7 to future of the with working in work in alliance and how an alliance? partnership? can we unlock the value? 51 © Subsea7 - 2024 subsea7.com
Slide 52: Knut and Monica – conversation
Knut and Monica – conversation What are the And what are the What is the value What is the opportunities challenges? for Subsea7 to future of the with working in work in alliance and how an alliance? partnership? can we unlock the value? 52 © Subsea7 - 2024 subsea7.com
Slide 55: Offshore’s enviable position…Subsea7’s core strength
Energy landscape Offshore’s enviable position…Subsea7’s core strength 2030 2024 56% 55% 2050 Oil and gas forecast to remain an 39% important component of energy mix Two thirds of 2050 production is undeveloped today Deepwater is favourably positioned on the cost and carbon intensity curves 2000 2010
Slide 56: Impressive revenue growth profile…underpinned by $12 billion backlog
Financial performance Impressive revenue growth profile…underpinned by $12 billion backlog $6.0 - 6.5 billion Quality backlog and prospects High visibility on revenue growth 60% and 30% of consensus revenue cover in 2025 and 2026, respectively, from backlog 2024 2025 2026 Backlog Expected 56 © Subse
Slide 57: Adjusted EBITDA margin expansion on track
Financial performance Adjusted EBITDA margin expansion on track Execution upside 20% Pricing 18% 18% 18% Utilisation Economies Adjusted EBITDA margin on track to of scale and reach 18-20% in 2025 scope 12% 12% 12% Expected to cross 20% in 2026 and gradually increase Strong cash generation supports s
Slide 58: Creating shareholder value
Capital allocation framework Creating shareholder value $2 billion returned between 2012 and 2023 Shareholder returns >$1 billion committed between 2024 and 2027 Use of excess cash assessed annually Balance sheet Maintain investment grade credit characteristics Re-investment to access opportunities
Slide 59: Phil Simons, EVP Projects and Operations
Phil Simons, EVP Projects and Operations 59 © Subsea7 - 2024 subsea7.com
Slide 60: The right choice for every scenario
ENABLING PRODUCTS The right choice for every scenario Our extensive portfolio of proven Enabling Products accelerates project delivery. It provides our clients with the widest choice of options to make their offshore and subsea developments more efficient, reliable, and sustainable in every scenario
Slide 61: Flowlines, Risers, Pipeline Structures
FLOWLINES RISERS PIPELINE STRUCTURES Our extensive portfolio of Our world-leading portfolio of Our catalogue of modular high- performance and cost- metallic and non-metallic deepwater configure-to-order structures effective flowlines enables the riser systems enables our clients to is suitable for a
Slide 62: Industry’s largest, most modern fleet of 40 vessels
Industry’s largest, most modern fleet of 40 vessels * * * * * * * * * * * * * Chartered vessels. 62 © Subsea7 - 2024 subsea7.com
Slide 63: Subsea7 deploys all three pipelaying technologies
Subsea7 deploys all three pipelaying technologies Stinger Reel Tower S-Lay Reel-Lay J-Lay 63 © Subsea7 - 2024 subsea7.com
Slide 68: Spoolbases and bundle sites
Spoolbases and bundle sites VIGRA GLASGOW SPOOLBASE, TECHNOLOGY NORWAY CENTRE, UK WICK BUNDLE INGLESIDE FABRICATION, SPOOLBASE, UK USA LOBITO SPOOLBASE, BINTAN UBU UBU ANGOLA SPOOLBASE, SPOOLBASE, SPOOLBASE, INDONESIA BRAZIL BRAZIL 68 © Subsea7 - 2024 subsea7.com
Slide 69: Vigra Spoolbase, Norway
Vigra Spoolbase, Norway • One of the longest spoolbase facilities in the world at 3.7 kilometres • Highly flexible main fabrication line • Quay designed for simultaneous pipe spooling operations • Holds the equivalent of 120 kilometres of 8-inch line • Capable of producing pipe-in-pipe and electrica
Slide 70: Vigra spoolbase - enabling products
Vigra spoolbase - enabling products Our extensive portfolio of high-performance and cost-effective flowlines enables the reliable and economical flow of produced and injected fluids between the seabed and the receiving facilities over increasing distances without costly host modifications. Heavy Wal
Slide 72: Clear strategy to deliver returns
Clear strategy to deliver returns Differentiated Proven track Delivering in the Financial Shareholder offering record of delivery energy transition strength returns Total suite of subsea Robust project execution Moving molecules and $12bn+ backlog of Shareholder returns solutions delivering the worl

Subsea7 — Investor Day (June 2024) on 6ix

Subsea 7 — Investor Day (June 2024)

Slide 1: Vigra Investor Day

Slide 2: Forward looking statements

Slide 3: Agenda

Slide 4: Today’s presenters

Slide 5: Make Possible Video

Slide 6: John Evans, CEO

Slide 7: subsea7.com

Slide 8: At a glance

Slide 9: Our business units

Slide 10: Our vision and values framework

Slide 11: How we Make Possible

Slide 12: Exposure to two growth markets

Slide 13: Tier 1 competitors in subsea and offshore wind

Slide 14: Creating shareholder value

Slide 15: Clear strategy to deliver returns

Slide 16: Olivier Blaringhem, EVP Subsea and Conventional

Slide 17: Subsea and Conventional – 2023 revenue $5bn at 12% EBITDA

Slide 18: Solutions that optimise lifecycle economics

Slide 19: Early Engagement and Systems Innovation

Slide 20: Collaboration and Partnerships

Slide 21: Enabling Products

Slide 22: Digitalisation

Slide 23: Sustainable Delivery

Slide 24: Integrated Services

Slide 25: Delivering the value of integration across the client spectrum

Slide 26: Delivering market leadership in Brazil

Slide 27: Delivering long-term value through true partnerships

Slide 28: Delivering industry record for greenfield – Sakarya

Slide 29: Delivering in new energy markets – Northern Lights

Slide 30: Leveraging the strategy in selective bidding

Slide 31: Monica Th. Bjørkmann, SVP Norway Knut Sandvik, SVP Projects, Aker BP

Slide 32: subsea7.com

Slide 33: subsea7.com

Slide 34: From Past to Present

Slide 35: We have innovated throughout the evolution of Norway oil and gas

Slide 36: subsea7.com

Slide 37: Norway operations at a glance

Slide 38: Norway – backlog

Slide 39: Norway – future awards to the market

Slide 40: subsea7.com

Slide 41: Subsea7 Investor Day

Slide 42: Creating an E&P champion on NCS

Slide 43: World-class oil and gas portfolio

Slide 44: Developments to drive growth and value creation

Slide 45: Our key principles for successful project execution

Slide 46: Aker BP project overview

Slide 47: Taking the Subsea Alliance to the next level

Slide 48: Yggdrasil Video

Slide 49: Project execution progressing according to plan

Slide 50: The NCS future is subsea

Slide 51: Knut and Monica – conversation

Slide 52: Knut and Monica – conversation

Slide 53: subsea7.com

Slide 54: Mark Foley, CFO

Slide 55: Offshore’s enviable position…Subsea7’s core strength

Slide 56: Impressive revenue growth profile…underpinned by $12 billion backlog

Slide 57: Adjusted EBITDA margin expansion on track

Slide 58: Creating shareholder value

Slide 59: Phil Simons, EVP Projects and Operations

Slide 60: The right choice for every scenario

Slide 61: Flowlines, Risers, Pipeline Structures

Slide 62: Industry’s largest, most modern fleet of 40 vessels

Slide 63: Subsea7 deploys all three pipelaying technologies

Slide 64: Rigid pipelay fleet

Slide 65: Reel lay vessels

Slide 66: S lay vessels

Slide 67: J lay vessel

Slide 68: Spoolbases and bundle sites

Slide 69: Vigra Spoolbase, Norway

Slide 70: Vigra spoolbase - enabling products

Slide 71: John Evans, CEO

Slide 72: Clear strategy to deliver returns

Slide 73: subsea7.com