Mcdermott International Ltd · OTC:MCDIF

Mcdermott International — Shareholder Meeting (March 2016)

13 slides from Mcdermott International's shareholder meeting presentation, Mar 21, 2016

  1. Slide 1: Investor Presentation: 2016 Annual Meeting of Stockholders

    Investor Presentation: 2016 Annual Meeting of Stockholders © Copyright 2016 McDermott International, Inc. All Rights Reserved

  2. Slide 2: Executive Summary

    Executive Summary About McDermott  Leading provider of integrated engineering, procurement, construction and installation services for oil and gas field developments worldwide  At any given time, 40 or fewer active contracts typically spanning a duration of one to three years, performed in a varie

  3. Slide 3: McDermott Today

    McDermott Today  A vertically integrated offshore and subsea engineering and  Market Cap: ~$1.0B1 construction company executing projects from concept to installation  2015 Revenue: $3B  Headquarters: Houston, TX  Strategically located fabrication yards and a versatile marine fleet  Global Ope

  4. Slide 4: Operational Turnaround

    Operational Turnaround Through the turnaround McDermott has remained highly focused on developing and implementing its operating strategy Oct – Dec 2013: May 2014: Jan – Aug 2014: Apr – Nov 2015: Dec 2015 – Feb 2016: David Dickson joined Gary Luquette Executive changes: Board engaged in a Board cons

  5. Slide 5: 2015 Significantly Improved Financial Performance

    2015 Significantly Improved Financial Performance Despite the deteriorating oil and gas environment, McDermott improved financial performance and outperformed peers in 2015 ($ in millions, except as noted) MDR 2015 TSR vs. Peers TSR and Oil Price FY 2015 FY 2014 Y/Y Change 15% Orders $3,701 $1,100 +

  6. Slide 6: Focused and Engaged Board of Directors

    Focused and Engaged Board of Directors Board Independence Tenure Balance Relevant Skills and Experience 4 Executive Leadership 9 1 8 3 Energy/Oilfield Services 9 International Operations 9 2 Financial Oversight Responsibilities 8 Public Company Board 7 Corporate Governance 7 Independent Directors 3

  7. Slide 7: Compensation Program Changes Informed by Stockholder Engagement with Directors

    Compensation Program Changes Informed by Stockholder Engagement with Directors Outreach in 2015 Director Participation Stockholder Feedback Board Response  Reached out to stockholders  Conducted in-person meetings  Feedback from these meetings  The Board is committed to representing ~40% of with

  8. Slide 8: Elements of 2015 Direct Compensation

    Elements of 2015 Direct Compensation McDermott’s 2015 compensation programs utilized metrics that were directly related to the Company’s 2015 strategies and goals CEO Target 2015 Compensation 13% Annual Base Fixed cash compensation recognizing an executive 87% At Risk officer’s experience, skill and

  9. Slide 9: Strong Tie Between Strategy and Performance Metrics

    Strong Tie Between Strategy and Performance Metrics Our operating strategy – to drive a sustainable, profitable and growth-oriented business, with a focus on stockholders, customers and other stakeholders – has contributed to the achievement of 2015 goals Performance Performance Actual 2015 Goal Met

  10. Slide 10: Significantly Improved Financial Performance Driven by Compensation Plan Design

    Significantly Improved Financial Performance Driven by Compensation Plan Design  Operating income implemented as PSU metric in 2014 after 2013 operating loss of ($456.7M) ̶ Operating income increased to $8.6M in 2014 and $91.2M in 2015  Free cash flow used as metric in annual incentive plan in 201

  11. Slide 11: Evolution of Compensation Program

    Evolution of Compensation Program Compensation program has evolved to drive company turnaround and growth goals Changes Made in 2014 Changes Made in 2015 Changes Made in 2016  Utilized four financial metrics  Included same four financial  Included same four financial plan components (rather than

  12. Slide 12: Strong Corporate Governance and Compensation Practices Remain a Priority

    Strong Corporate Governance and Compensation Practices Remain a Priority Our Board believes in sound corporate governance and places significant weight on stockholder feedback in making decisions on governance processes and compensation programs Board and Governance Compensation Practices  The Boar

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