Subsea 7 S.a. · OSL:SUBC

Subsea 7 — Q4 2023 Earnings Presentation

24 slides from Subsea 7's earnings presentation, Feb 29, 2024

Slide 1: Fourth Quarter 2023 Earnings Presentation
Fourth Quarter 2023 Earnings Presentation 29 February 2024 1 © Subsea7 - 2024 subsea7.com
Slide 2: Forward-looking statements
Forward-looking statements This document may 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 rega
Slide 3: Delivering shareholder returns
Delivering shareholder returns • Fourth quarter Adjusted EBITDA of $245 million, a margin of 15% • Growth of 45% year-on-year • Margin expansion of 200 basis points • Backlog up 18% year-on-year to $10.6 billion • Addition of high-quality projects that support continued margin expansion • Well posit
Slide 4: Another solid year for order intake
Another solid year for order intake Order intake • Q4 order intake $1.2bn 7.4 7.1 1.2 • New awards $0.6bn 6.1 3.0 • Escalations $0.6bn 4.4 2.0 2.1 0.2 0.7 • Book-to-bill 0.8 times 1.0 $bn 1.4 2.2 2.0 1.9 2.1 Q4 Q3 • Full year order intake $7.4bn Q2 1.5 0.8 1.2 1.9 Q1 • New awards $4.8bn FY 2020 FY 2
Slide 5: Highest year-end backlog since 2013
Highest year-end backlog since 2013 14 1.6 12 1.4 1.2 10 1.0 8 0.8 6 0.6 4 0.4 2 0.2 0 0.0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Order intake ($bn) Backlog ($bn) Book-to-bill (RHA) 5 © Subsea7 - 2024 subsea7.com
Slide 6: High visibility on 2024 in both business units
High visibility on 2024 in both business units Subsea and Conventional Renewables Backlog by year of execution Backlog by year of execution 8.1 8.6 2.0 2.0 6.0 2.9 0.6 1.3 0.9 2.6 3.8 1.8 $bn 0.2 0.8 $bn 0.8 4.7 Beyond 1.3 3.8 0.4 1.0 Beyond 3.4 0.9 2.6 Next year Next year Current year 0.3 Current y
Slide 7: Group results – strong growth in revenue and Adjusted EBITDA
Group results – strong growth in revenue and Adjusted EBITDA Revenue Adjusted EBITDA 6.0 714 5.0 5.1 559 245 1.6 521 1.4 1.3 3.5 169 143 1.6 337 1.0 1.4 $bn 201 1.5 185 171 $m 0.9 Q4 165 1.2 1.5 1.2 Q3 162 Q4 0.8 134 Q2 90 Q3 113 0.8 1.0 1.2 1.2 Q1 Q2 (9) 68 102 86 107 Q1 FY 2020 FY 2021 FY 2022 FY
Slide 8: Q4 2023 – Subsea and Conventional
Q4 2023 – Subsea and Conventional $1.4bn Revenue $1.1bn $1.3bn • Revenue up 33% YoY to $1.4 billion • Bacalhau, Mero 3&4, Sakarya and Yggdrasil Q4 2022 Q3 2023 Q4 2023 • Adjusted EBITDA margin 15.2% • Continued mix-shift to higher-margin 200 $212m projects $182m 0.25 Adjusted 180 • Includes $8 milli
Slide 9: Q4 2023 – Renewables
Q4 2023 – Renewables $269m Revenue • Revenue $218 million $217m $218m • Phasing of major projects • Increased selectivity in tendering • Continued progress on Dogger Bank A and Changfang & Xidao Q4 2022 Q3 2023 Q4 2023 • Adjusted EBITDA margin 14.2% • Reaffirming improved margin 40 0.25 Adjusted 35
Slide 10: Q4 2023 - Sharp improvement in cash conversion
Q4 2023 - Sharp improvement in cash conversion $m • Cash conversion 2.2x 751 • Better-than-expected working capital performance • Final payment for newbuild wind vessels • First $153 million payment for OneSubsea investment Cash Adjusted Working Tax Investing Financing Other Cash • Net debt $552 mil
Slide 11: Group financial guidance
Group financial guidance 2023 2024 Revenue $6.0 billion $6.0 - 6.5 billion Administrative expense $266 million $280 - 300 million Adjusted EBITDA $714 million $950 million - $1.0 billion D&A $538 million $600 – 620 million Net operating income $105 million $350 – 380 million Net finance cost $46 mil
Slide 12: Spotlight on Australia
Spotlight on Australia • Active in Australia since 1977, with 150 people in Perth • Over 50 projects successfully completed • Four projects worth $1.2 billion underway including: • Scarborough: SURF-SPS integrated scope (SIA) − On schedule, with environmental permit received − Manifold/FLET foundati
Slide 13: Subsea tendering remains very active
Subsea tendering remains very active Tenders: $21 billion Europe Total Quad 9 BP Clair Ridge Expansion (i) NEP CCS (i) Equinor Fram Sør North and Central America Aker BP Tie-back projects Beacon Zephyrus OKEA Brasse (i) Azerbaijan BP Tie-back projects Chevron Aphrodite BP Caspian IRM Chevron Tie-bac
Slide 14: Offshore wind prospects are maturing in 2024
Offshore wind prospects are maturing in 2024 Tenders: $8 billion UK and Ireland SSE Seagreen 1A Berwick Bank Red Rock Inchcape Ørsted Hornsea 3 BP/EnBW Mona Morgan Morven TotalEnergies Outer Dowsing West of Orkney OceanWinds Caledonia USA SPR1 East Anglia 2 Asia East Anglia 1N Shell Atlantic Shores
Slide 15: At least $1 billion shareholder returns in 2024-2027
At least $1 billion shareholder returns in 2024-2027 $bn 600 500 • At least $1 billion return over four years 400 – Approximately $250 million per year 300 – Regular dividend to increase to 200 NOK 6.00 per share from NOK 1.00 − payable in two equal instalments 100 – Remainder share repurchases 0 20
Slide 16: Delivering shareholder returns
Delivering shareholder returns • Strong underlying performance in 2023 with Adjusted EBITDA of $714 million • Solid improvement in cash flow during the year, with robust working capital control • Reiterated 2024 Adjusted EBITDA guidance of $950 million to $1 billion, growth of over 30% YoY • Free ca
Slide 20: 2015 – 2023 costs overview
2015 – 2023 costs overview 5.8 $ bn 5.0 5.0 Direct project costs including procurement of materials and project related short-term lease expense 3.9 3.9 3.3 3.4 3.5 3.5 Depreciation and amortisation(1) 2.9 excludes non-recurring impairment 3.0 1.5 2.8 charges/reversals 2.0 1.6 1.6 1.9 People(2) 0.4
Slide 21: Major projects - percentage of completion
Major projects - percentage of completion • Continuing projects >$100m between 5% and 95% complete as at 31 December 2023 excluding PLSV and Life of Field day-rate contracts Ballymore (USA) 2022 Sangomar (Senegal) 2020 Penguins Redevelopment (UK) 2018 Gallaf Batch 3 (Qatar) 2021 Sanha Lean Gas (Ango
Slide 22: Fleet – 37 vessels in the active fleet at the end of Q4 2023
Fleet – 37 vessels in the active fleet at the end of Q4 2023 * * Seaway Ventus was under construction on 31 December and therefore excluded from the active fleet total. Maersk Connector and Seaway Swan are on long-term charter from third parties. Chartered vessels are denoted with an asterisk. * * *
Slide 23: Fleet optimisation – Owned vessels and IFRS 16 chartered vessels
Fleet optimisation – Owned vessels and IFRS 16 chartered vessels 2023 Future additions Additions 2024 Boka Sub C LCV Working on Bacalhau, Brazil Ross Candies LCV Additional Jones Act tonnage Island Performer LCV Working in Gulf of Mexico Edda Sphynx LCV Additional tonnage for the subsea fleet Siem S

Subsea 7 — Q4 2023 Earnings Presentation on 6ix

Subsea 7 — Q4 2023 Earnings Presentation

Slide 1: Fourth Quarter 2023 Earnings Presentation

Slide 2: Forward-looking statements

Slide 3: Delivering shareholder returns

Slide 4: Another solid year for order intake

Slide 5: Highest year-end backlog since 2013

Slide 6: High visibility on 2024 in both business units

Slide 7: Group results – strong growth in revenue and Adjusted EBITDA

Slide 8: Q4 2023 – Subsea and Conventional

Slide 9: Q4 2023 – Renewables

Slide 10: Q4 2023 - Sharp improvement in cash conversion

Slide 11: Group financial guidance

Slide 12: Spotlight on Australia

Slide 13: Subsea tendering remains very active

Slide 14: Offshore wind prospects are maturing in 2024

Slide 15: At least $1 billion shareholder returns in 2024-2027

Slide 16: Delivering shareholder returns

Slide 17: Our world

Slide 18: Q&A

Slide 19: Appendix

Slide 20: 2015 – 2023 costs overview

Slide 21: Major projects - percentage of completion

Slide 22: Fleet – 37 vessels in the active fleet at the end of Q4 2023

Slide 23: Fleet optimisation – Owned vessels and IFRS 16 chartered vessels

Slide 24: subsea7.com