Transocean Ltd (switzerland) · NYSE:RIG
Transocean Ltd (switzerland) — Transocean — Howard Weil Annual Energy Conference 2013
28 slides from Transocean Ltd (switzerland)'s conference presentation, Mar 18, 2013
Slide 1: Transocean Ltd. – Howard Weil Annual Energy Conference
Transocean Ltd. Howard Weil Annual Energy Conference March 18, 2013 www.deepwater.com
Slide 2: Legal Disclaimer
Legal Disclaimer ‘The statements descried inthis presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements which could be made include, b
Slide 3: Performance
Performance Significant progress made in 2012 * Operating Improvement ~ Revenue efficiency improved to 93% from ~91% — Full fleet: ~95% in 3Q and 4Q improved by 9% to 78% * Adjusted earnings from operations increased 161% * Cash flow from operating activities increased ~50% to $2.7B * Created $16.8B
Slide 4: Key Investment Highlights
Key Investment Highlights « Industry leader committed to customers, employees, and shareholders * Clearly defined strategies to create value — Operations — Capital deployment — Assets ° Well positioned to capture global opportunities in an improving market Ultra-Deepwater Deepwater Midwater High-Spe
Slide 5: Industry Leader
Industry Leader ° World’s largest offshore contract driller —Largest fleet of high spec and midwater floaters —Operates in most major markets worldwide —Significant relationships across the customer spectrum * Positioned to lead —Premier position in ultra-deepwater market segment —Size and technical
Slide 6: Strategic Objectives
Strategic Objectives ° Continue to improve operational performance Maintain financial flexi lity and strong balance sheet Execute asset strategy ° Resolution of remaining uncertainties ~ Macondo ~ Brazil — Norway
Slide 7: Operational Imperatives
Operational Imperatives We are focused on delivering superior operating performance: * Revenue efficiency — Technical improvements — Improved contract terms ~ Historic levels believed achievable; progress will be gradual, non- linear « Rig out-of-service time — Emphasis on planning, execution, colla
Slide 8: Capital Deployment
Capital Deployment Return of Capital Dividend favored Competitive yield, sustainable Potential future increases, Financial Flexibility Debt reduction Investment grade issuer Capital Investment Reinvest in the business
Slide 9: Financial Flexibility
Financial Flexibility * Maintain financial flexibility to meet future requirements in context of uncertainties * Manage financial exposure Contract-backed Shell newbuilds — DOJ settlement + Sustain investment grade rating Accelerate retirement of debt * Continue to divest select non-core assets * Di
Slide 10: Litigation Update
Litigation Update Macondo * Civil and criminal settlement agreements reached with DOJ comprising $1.4B over five years — Phase 1 of trial began February 25, 2013 Bra: rade © Preliminary injunction served on Transocean 9/27/12; lifted by Court of Appeals 11/27/12 * Criminal case against Transocean an
Slide 11: Capital Investment
Capital Investment * Prefer to not add incremental capacity to market — Will buy existing capacity ~ Prefer to build to contract * Disciplined economic criteria (buy or build) — Must fit high spec strategy — Economic returns exceed cost of capital ~ Prefer significant, simple payback during initial
Slide 12: Return of Capital
Return of Capital Substantial Proposed Payout f Net Income (2010A - 2012A) (?) 9 ‘Sarawicnssaof2005 sao 15.3 148 gr — aie == aoe Soure Capt. Company Pings
Slide 13: Return of Capital
Return of Capital Compelling Distribution Yield id (Average of Peer Groups) ' oo 7 we Source Capital 0, Company Figs B
Slide 14: Asset Strategy
Asset Strategy Grow our leadership position in high- spec assets Build, acquire, divest and / or spin-off Core, strategic asset portfolio Ultra-deepwater Harsh Environment High-spec Jackups High-quality floaters and jackups
Slide 15: Asset Strategy — Execution
Asset Strategy — Execution ° Fleet expansion — Four dynamically-positioned ultra-deepwater drillships — 10 year contracts ($7.6B of backlog) —~$3.0B investment with attractive terms — Ships have advanced capabilities — Dual activity, industry-leading hoisting capacity — Second blow-out preventer sys
Slide 16: Asset Strategy — Execution
Asset Strategy — Execution Sold 38 rig package to Shelf Drilling ~ Buyer group has deep industry experience ~ Transocean will provide support to facilitate a successful transition ~ Asignificant step forward in execution of asset strategy ° Divested 16 additional non-core assets in single asset tran
Slide 17: Largest Worldwide Rig Fleet
Largest Worldwide Rig Fleet RIG ESV NE “Transocean Rigs Under Construction a Ultra-Deepwater Floaters 4 Deepwater Floaters § Midwater Floaters WJackups 510) SDRL bo
Slide 18: Leverage to Improving Dayrates
Leverage to Improving Dayrates High-Specification Floaters © Midwater Floaters High-Specification Jackups 100% 2013 2014 2015 2016 Fleet Availability
Slide 19: Premium Jackups
Premium Jackups Demand Remains Strong Transocean Fleet ‘!) -9 ‘available through 1413 Global Fleet 5)- 154 stacked Midle contracted other Key Market Drivers * Demand and dayrates are increasing * Continuing demand growth is — Absorbing uncontracted newbuilds — Stable/increasing dayrates Jackup Type
Slide 20: Midwater Floaters
MidWater ee Transocean Fleet (1) - 28 Key Market Drivers = * No influx of newbuilds * Demand continues to increase in UK and Norway * Multiple opportunities for available units in 2013 * Petrobras releases could impact market e 3available through 1413 Global Fleet ©) - 102 Current Market Overview *
Slide 21: Deepwater Floaters
Deepwater Floaters D teady Transocean Fleet ') - 16 Key Market Drivers * High UDW utilization has positive impact on DW * Tendering activity is steady * Strong demand in West Africa and Australia a * Petrobras releases could impact market available through 1413, Global Fleet (5) - 57 Current Market
Slide 22: Ultra-Deepwater Floaters
Ultra- Pee PKI Floaters Market Transocean Fleet (1) - 29 Key Market Drivers * 2013 availability is being absorbed Demand and dayrates are steady Customers now looking for 2014 delivery as © Strong demand in USGOM, West Africa, East Africa and 2available other emerging markets through 1413, Global Fl
Slide 23: Ultra-Deepwater Opportunities
Ultra-Deepwater Opportunities Outlook is Positi ambique / Tanzania / Australia
Slide 24: Strong Backlog
Strong Backlog 4 Ultra-Deepwater Floaters 12.0 M Deepwater Floaters | Midwater Floaters High - Specification Jackups (Us billions) $10.7 10.0 $7.9 2013 2014 2015 2016-27 Total Backlog From Continuing Operations - $28.8 billion)
Slide 25: Diversified Revenue Sources
Diversified Revenue Sources # Ultra-Deepwater mMidwater “apm! By Asset Class 4% ~_3% 2% ‘Deepwater I High-Specification Jackups Mother FY 2012 Revenues - $9. By Customer integrated NOC ‘independent
Slide 26: Key Investment Highlights
Key Investment Highlights « Industry leader committed to customers, employees, and shareholders * Clearly defined strategies to create value — Operations — Capital deployment — Assets ° Well positioned to capture global opportunities in an improving market Ultra-Deepwater Deepwater Midwater High-Spe
Slide 27: Transocean Ltd.
Transocean Ltd. Howard Weil Annual Energy Conference March 18, 2013 www.deepwater.com
Slide 28: Footnotes
a @) a Footnotes “Transocean er Fleet satus Report issued Januar 17,2013 and Fleet Update Summary issued February 14, 2013, Floater clasications are by water depth as described Inthe Feet Status Repor. Hafsh Environment Floaters are included Ia the appropiate water depth clssifeaion. Rg count associ
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