Sbm Offshore Nv · EURONEXT:SBMO

Sbm Offshore Nv — H1 2020 Earnings Presentation

37 slides from Sbm Offshore Nv's earnings presentation, 2020

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 6: HSSE / License to operate
HSSE / License to operate Safety Total Recordable Injury Frequency Rate1 1.20 Oil Majors Benchmark 2 1.00 SBM Offshore 0.80 0.60 0.40 0.20 0.00 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H 2020 Stayed the course in a challenging environment (1) Per 200k man-hours (2) Includes Shell
Slide 7: ESG – Prioritizing reduction of GHG emissions
ESG – Prioritizing reduction of GHG emissions Transparent and measurable Ratings DJSI Europe: 92nd percentile 1 Relative position: 2 #1 amongst peers Rating: 3 A Key targets linked to SDGs Rating: 4 >40 metrics related C to ESG performance (1) Maximum score: 100 (2) Based on market capitalization /
Slide 9: FPSO market - Potential awards 2020-2022
FPSO market - Potential awards 2020-2022 Unconventional cycle Uncertain market outlook World-class deepwater resilient Potential FPSO awards within target market Other potential FPSO awards FPSO awards 1H 2020 Remaining disciplined and selective Source: SBM Offshore market intelligence © SBM Offshor
Slide 11: Strategy: Optimize, Transform, Innovate
Strategy OPTIMIZE TRANSFORM INNOVATE “SBM Offshore believes the oceans will provide the world with safe, sustainable and affordable energy for generations to come. We share our experience to make it happen.” © SBM Offshore 2020. All rights reserved. www.sbmoffshore.com 11
Slide 12: Adapting the business model
Adapting the business model Energy industry trends SBM Offshore response Lower gross cost-base by c. US$100 million Frequent and short cycles Lower oil price Enhance flexibility Maintain capacity Fast4Ward® emissionZEROTM Energy transition ESG and carbon footprint Premium ESG partner Invest in energ
Slide 13: Optimize
Optimize Projects update Operational performance Fleet uptime Completion FPSO Liza Unity > 50% < 75% 99% 99% 99% 97% 98% 98% 99% 99.5% Completion FPSO Sepetiba < 25% 2013 2014 2015 2016 2017 2018 2019 1H 2020 © SBM Offshore 2020. All rights reserved. www.sbmoffshore.com 13
Slide 15: Innovate – Ambition 2030
Innovate – Ambition 2030 25% of revenues from Gas & Renewables by 2030 LNG2WIRE Tower Loading Unit Floating Offshore Wind Wave Energy Converter FLNG Contribution Signing (pre-)FEEDs LNG2WIRE---------- Tower Loading Unit Establishing strategic partnerships Floating Offshore Wind Wave Energy Converter
Slide 17: Directional overview
Directional overview1 Revenue (US$ millions) EBITDA (US$ millions) 1,179 965 523 399 1H 2019 1H 2020 1H 2019 1H 2020 Pro-forma backlog (US$ billions) Net debt (US$ billions) 20.7 19.7 3.5 3.9 FY 2019 1H 2020 FY 2019 H1 2020 (1) Directional view, presented in the Financial Statements under Operating
Slide 18: Financial performance per segment
Financial performance per segment Directional, US$ millions Lease and Operate Turnkey Revenue EBITDA Revenue EBITDA 829 538 646 425 351 319 25 5 1H 2019 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020 “Other” EBITDA 1H 2020 US$(40) million vs 1H 2019 US$(30) million © SBM Offshore 2020. All
Slide 19: 1H 2020 Sources and uses of cash
1H 2020 Sources and uses of cash Directional, US$ millions Cash from Operations Debt drawdowns Sources of cash 480 496 Uses of cash 243 74 22 150 64 396 165 6 Debt repayment Interest Dividend Growth Share repurchase Other (including lease liabilities) (Capex + Fast4Ward®) Working capital Tax Cash De
Slide 20: Lease and Operate: all debt supporting L&O projects
All debt supporting L&O projects Directional, US$ billions Assets Liabilities and net assets PPE (including ROU assets), 0.2 Other Net working capital, provisions and other, 0.6 Cash and cash equivalents, 0.3 Financial assets, 0.1 Group liquidity Other net liabilities, 0.2 Lease Liabilities (IFRS 16
Slide 21: Pro-forma net cash flow from L&O and BOT
Pro-forma net cash flow1 from L&O and BOT Directional, US$ millions L&O and BOT net cash translated in EUR/share2 600 ~18 ~17 ~ 16 500 25 years of cash flow visibility 400 6% 7% 8% Discount rate 300 c. US$240 million average L&O net cash p.a. (excl. BOT) 200 Net cash from L&O Net cash from BOT Sale
Slide 23: 2020 Guidance
2020 Guidance Directional EBITDA1 above 900 mln US$ Directional Revenues around 2.3 bn US$ Lease & Operate around 1.6 bn US$ Turnkey around 0.7 bn US$ (1) Includes restructuring costs and excludes impact from Deep Panuke contract reclassification © SBM Offshore 2020. All rights reserved. www.sbmoffs
Slide 26: Pro-forma Backlog and borrowings repayment
Pro-forma Backlog1 and borrowings repayment Directional, US$ billions 2 Pro-forma Directional L&O and BOT backlog TK, 1.0 3.0 BOT, 2.1 2.5 Average of 65% of L&O backlog (excl. BOT) represents operating cash flow before tax. 2.0 L&O average portfolio duration: 9.2 years3 1.5 L&O, 16.7 1.0 L&O 0.5 BOT
Slide 27: Group P&L and underlying items
Group P&L and underlying items Directional, US$ millions Group P&L Directional underlying items US$ millions 1H 2019 1H 2020 Variance US$ millions 1H 2019 1H 2020 Impact P&L Revenue 965 1,179 215 Depreciation & SBM Installer impairment 0 (57) Impairment Gross Margin 241 270 28 Subtotal other impact
Slide 28: Turnkey and L&O P&L
Turnkey and L&O P&L Directional, US$ millions Turnkey Comments US$ millions 1H 2019 1H 2020 Variance Liza Unity, Sepetiba, limited scope Prosperity, Johan Ongoing Projects Castberg and Liuhua turret mooring systems, multiple Revenue 319 351 32 FEEDs and other various business Gross Margin 40 10 (31)
Slide 29: 1H 2020 Sources and uses of cash
1H 2020 Sources and uses of cash Directional, US$ millions L&O 538 Turnkey 25 Other (40) EBITDA 523 Deferred income (43) Cash from Operations Debt drawdowns Sources of cash 480 496 Uses of cash 243 74 22 150 64 396 165 6 Debt repayment Interest Dividend Growth Share repurchase Other (including lease
Slide 30: Cash Flow Statement
Cash Flow Statement Directional, US$ millions US$ millions 1H 2020 EBITDA 523 Changes in operating assets and liabilities (164) Income taxes paid (22) Net cash flows from (used in) operating activities 337 Capital expenditures (346) Other investing activities 1 Net cash flows from (used in) investin
Slide 31: Balance Sheet
Balance Sheet Directional, US$ millions Comments on variation US$ millions FY 2019 1H 2020 Variance FPSO Liza Unity, Prosperity and Sepetiba Property, plant & equipment and Intangibles 5,849 5,936 87 partially offset by depreciation and impairments Investment in associates and other financial assets
Slide 32: Lease qualification and consolidation methods IFRS 10 & 11
Lease qualification and consolidation methods IFRS 10 & 11 Joint Ventures 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% Proportional Full consol
Slide 33: Loans and borrowings
Loans and borrowings Directional, US$ millions Net book value as of June 30, 2020 Full Amount IFRS Directional PROJECT FINANCE FACILITIES DRAWN FPSO Cidade de Paraty 367 367 232 MOPU Deep Panuke 104 104 104 FPSO Cidade de Anchieta 291 291 291 FPSO Cidade de Ilhabela 617 617 463 FPSO N’Goma 416 0 208
Slide 34: Group net debt and borrowings
Group net debt and borrowings Directional, US$ millions Net debt Undrawn facilities + cash 3,500 3,879 912 3,460 2,000 309 500 930 -1,000 FY 2019 1H 2020 1H 2020 Lease liabilities RCF Project debt Net cash Undrawn RCF Net cash Undrawn project debt Average cost of debt 1H 2020 borrowings and lease li
Slide 35: RCF Covenants
RCF Covenants Key financial covenant Target 1H 2020 Definition1 Solvency ratio > 25% ✔ 36% IFRS Tangible net worth divided by total tangible IFRS assets Interest cover ratio > 4.0 ✔ 7.5 Directional Underlying EBITDA divided by net interest payable Represents maximum theoretical lending capacity, cal
Slide 36: Lease and Operate portfolio
Lease and Operate portfolio (1) FPSO Serpentina is owned by the client and is operated by Gepsing – a subsidiary between SBM Offshore (60%) and GEPetrol (40%). (2) In agreement with the client, the unit was shut-down for approximately four months starting in April 2020. The period has been added to

SBM Offshore — H1 2020 Earnings Presentation on 6ix

Sbm Offshore Nv — H1 2020 Earnings Presentation

Slide 1: © SBM Offshore 2020. All rights reserved. www.sbmoffshore.com

Slide 2: Disclaimer

Slide 3: Highlights

Slide 4: Effective response

Slide 5: HSSE & ESG

Slide 6: HSSE / License to operate

Slide 7: ESG – Prioritizing reduction of GHG emissions

Slide 8: The Market

Slide 9: FPSO market - Potential awards 2020-2022

Slide 10: Our Strategy

Slide 11: Strategy: Optimize, Transform, Innovate

Slide 12: Adapting the business model

Slide 13: Optimize

Slide 14: Transform – Continuous improvement

Slide 15: Innovate – Ambition 2030

Slide 16: HY 2020 Financials

Slide 17: Directional overview

Slide 18: Financial performance per segment

Slide 19: 1H 2020 Sources and uses of cash

Slide 20: Lease and Operate: all debt supporting L&O projects

Slide 21: Pro-forma net cash flow from L&O and BOT

Slide 22: Outlook

Slide 23: 2020 Guidance

Slide 24: Appendix

Slide 25: Translating SDGs into targets and actions

Slide 26: Pro-forma Backlog and borrowings repayment

Slide 27: Group P&L and underlying items

Slide 28: Turnkey and L&O P&L

Slide 29: 1H 2020 Sources and uses of cash

Slide 30: Cash Flow Statement

Slide 31: Balance Sheet

Slide 32: Lease qualification and consolidation methods IFRS 10 & 11

Slide 33: Loans and borrowings

Slide 34: Group net debt and borrowings

Slide 35: RCF Covenants

Slide 36: Lease and Operate portfolio

Slide 37: © SBM Offshore 2020. All rights reserved. www.sbmoffshore.com