Slide 1: Full Year 2012 results presentation, 14 February 2013
Full Year 2012 results presentation, 14 February 2013 © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com
Slide 2: Disclaimer
Disclaimer Some of the statements contained in this Should one or more of these risks or presentation that are not historical facts uncertainties materialize, or should are statements of future expectations and underlying assumptions prove incorrect, other forward-looking statements based on actual
Slide 3: SBM 2012 in context
SBM 2012 in context 99% 44% Change in Top Management FPSO³ Uptime in Fleet REVENUE UP 17% 17 Units in production 7 493 people 3 CHALLENGES 0.06 LTIFR 9.95% additional equity 7 tenders US$ 1.7 bln outstanding new financing © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 3
Slide 4: Agenda
Agenda - 2012 Review - 2012 Financials - Outlook © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com
Slide 5: 2012 Review
2012 Review © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com
Slide 6: Key Figures FY 2012
Key Figures FY 2012 YE 2011 YE 2012 (In millions of US$) Turnover EBIT EBIT before impairments, 3,695 provisions and 3,157 divestments 51 550 516 -341 Net Income Order portfolio Total orders 16,910 8,552 14,538 -75 1,322 -441 © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 6
Slide 7: FPSO market: 2012 SBM review
FPSO market: 2012 SBM review Planned Change in prospects develop. plan Delayed in 2 SBM's scope 7 Cancelled 20 2 20 Delayed not in SBM's Actual scope awards 9 Small 4 4 FPSOs New build 2 2 FPSOs 1 FPSO in scope 1 © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 7
Slide 8: 2012 HSSE results improving
2012 HSSE results improving • Frequency of recordable injuries* improved by 25% • Environmental Performance: ISO 14001 Certification maintained for fleet and extended to include OHSAS certification for Health & Safety • More than 40% of the fleet was injury free for over one year *Total Recordable I
Slide 9: FPSO Cidade de Ilhabela - Project in China
FPSO Cidade de Ilhabela- Project in China 4 million exposure hours without Lost Time Injury February 2013 © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 9
Slide 10: Core project activity on track
Core project activity on track 2007 2008 2009 2010 2011 2012 2013 2014 2015 POC FPSO Cidade de Anchieta (ol) MOPU Deep Panuke (l) FPSO Cidade de Paraty (fl) FPSO OSX2 (t) FPSO N’Goma (Xikomba) (fl) Turret FLNG (t) Turret Quad 204 (t) FPSO Cidade de Ilhabela (fl) Turret Ichthys (t) Legacy Projects In
Slide 11: Cidade de Paraty - Brazil
Cidade de Paraty - Brazil February 2013 August 2012 © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 11
Slide 12: Large turrets - niche player
Large turrets - niche player February 2013 August 2012 © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 12
Slide 13: Strong fleet performance
Strong fleet performance • Uptime: 99% • Offloads: 440 February 2013 August 2012 © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 13
Slide 14: Yme update
Yme update • Balance of our expectation: platform to be decommissioned • Write-down of full book value, December 2012, for US$ 398mln • US$ 200mln provision for settlement costs • Agreement still under discussion with Talisman • In the absence of a final agreement, arbitration will continue © SBM Of
Slide 15: Financing
Financing • US$ 1.7 billion project financing secured at attractive levels despite difficult lending market • US$ 200 million already achieved in the non core assets disposal programme, US$ 128 million additional equity • Balance sheet restored through 9.95% private placement year end 2012: US$ 193
Slide 16: Potential Rights issue
Potential Rights issue NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA OR ANY (OTHER) JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION • 10% Rights issue triggered if Yme agreement by March 11, 2013 • Rig
Slide 17: Compliance
Compliance • In April 2012, the Company announced it had initiated an internal investigation into potentially improper sales practices. • This investigation is being carried out by outside counsel and forensic accountants. • The Company has disclosed this internal investigation to appropriate author
Slide 18: 2012 Financials
2012 Financials © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 18
Slide 19: Financial Overview 2012 P&L Total Group
Financial Overview 2012 P&L Total Group (in millions of US$) FY 12 FY 11 Variance Comment Turnover 3,695 3,157 17% Increase driven by Systems following last years orders Gross Margin 124 (161) NM Underlying improvements driven by additional revenues (% Margin) (+3.3%) (-5.1%) offset by Talisman & En
Slide 20: Financial Overview Full Year 2012 Lease and Operate
Financial Overview Full Year 2012 Lease and Operate (in millions of US$) FY 12 FY 11 Variance Comment Turnover 932 867 8% Driven by Aseng (1st oil November 2011) offset by lower revenue of vessels in conversion (Xikomba & Espadarte) Gross Margin (299) (590) NM GM heavily impacted by Talisman & Encan
Slide 21: Financial Overview Full Year 2012 Turnkey Systems
Financial Overview Full Year 2012 Turnkey Systems (in millions of US$) FY 12 FY 11 Variance Comment Turnover 2,482 1,989 25% Increase driven by Cidade de Ilhabela, N’Goma and OSX contributions Gross Margin 348 339 3% Lower GM% mainly explained by very high GM % (% Margin) (+14.0%) (+17.0%) achieved
Slide 22: Financial Overview Full Year 2012 Turnkey Services
Financial Overview Full Year 2012 Turnkey Services (in millions of US$) FY 12 FY 11 Variance Comment Turnover 281 302 -7% Lower third-party revenues due to low 2012 order intake and DI disposal Gross Margin 74 90 -17% (% Margin) (+26.4%) (+29.8%) EBIT 69 73 -5% (% Margin) (+24.5%) (+24.1%) Total Ord
Slide 23: Group results - Pro forma comparisons
Group results - Pro forma comparisons Revenue Gross Margin EBIT FY 2011 3,157 696 516 857 857 -161 -341 +8% 3,695 627 FY 2012 750 499 550 124 51 + 6% Reported Impair. Underlying Reported Impair. Underlying © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 23
Slide 24: De-risking the business: measures already in place
De-risking the business: measures already in place • Project complexity, scale and duration require additional safeguards • Gate reviews before margins recognised at a level of at least 25% • More conservative stance towards contingency levels • POC effect in 2012: US$ - 74 mln margin, (US$ - 57 mln
Slide 25: Financial Overview Full Year 2012 Balance Sheet
Financial Overview Full Year 2012 Balance Sheet Total Group (in millions of US$) FY 12 FY 11 Variance Comment Capital Expenditure 1,235 1,414 -13% FPSOs under construction & Finance lease invest. Debt 2,531 2,123 19% Net Liquidities 748 165 354% Proceeds from private placement and disposals Net Debt
Slide 26: New disclosure
New disclosure Under IFRS, Lease & Operate backlog understated by US$ 3bln • Enhanced reporting: additional information to improve transparency • Mix of Finance Leases and Operating Leases (OL) in SBM’s portfolio • Finance Leases accelerate revenue recognition through the P&L • Thereby understating
Slide 27: OL view of total backlog
OL view of total backlog US$ 16.5 bln Lease & Operate backlog: OL view vs IFRS OL view IFRS 83% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Turnkey backlog: OL view vs IFRS OL view IFRS 17% Lease & Operate 2013 2014 2015 Turnkey © SBM
Slide 28: Outlook
Outlook © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com
Slide 29: FPSO market outlook
FPSO market outlook Field developments with FPSOs over the next 3 years 57 FPSO projects to be awarded, SBM will bid around 20 to obtain its targeted share 2 4 2 1 2 5 3 10 1 7 4 Lease 6 Sale 1 9 Lease or Sale February 2013 (source: internal analysis) © SBM Offshore 2012. All rights reserved. www.sb
Slide 30: R&D
R&D Maintain our technological edge • Focus on 3 areas: FPSOs Topsides Moorings © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 30
Slide 31: 2013: areas of focus
2013: areas of focus Closure of legacy projects Selective bidding policy Investment in technological edge Restoring pride © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 31
Slide 32: Outlook 2013
Outlook 2013 • Delivery of Deep Panuke, Cidade de Paraty and OSX2 • No dividend • Turnover of approximately of US$ 4 bln, of which respectively US$ 1bln in Lease & Operate US$ 3bln in Turnkey 8% increase over 2012 © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 32
Slide 33: Q&A Session
Q&A Session © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com
Slide 34: Notes
Notes © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 34
Slide 35: © SBM Offshore 2012. All rights reserved. www.sbmoffshore.com
© SBM Offshore 2012. All rights reserved. www.sbmoffshore.com 35