Slide 1: SBM Offshore N.V. Analyst Presentation Full-Year 2011 Results
SBM OFFSHORE N.V. ANALYST PRESENTATION – 2 March 2012 Bruno Chabas (CEO) and Mark Miles (CFO) FULL-YEAR 2011 RESULTS page 1
Slide 2: Disclaimer
Disclaimer Some of the statements contained Should one or more of these risks in this presentation that are not or uncertainties materialize, or historical facts are statements of should underlying assumptions future expectations and other prove incorrect, actual results may forward-looking statemen
Slide 3: Content
Content 2011 Review 2011 Financials Outlook page 3
Slide 4: 2011 Review
2011 Review 2011 Financials Outlook page 4
Slide 5: Key Figures Full year 2011
Key Figures Full year 2011 (In millions of US$) Turnover New orders FY 2010 FY 2011 page 5
Slide 6: Summary of 2011
Summary of 2011 Legacy projects update “Legacy”: non-core, non-FPSO, untypical of SBM Offshore Yme: constructive engagement with client Deep Panuke: pathway to first gas in summer 2012 Strategy and organisation Management re-structured Clear lines of accountability and responsibility at ex
Slide 7: Talisman YME update
Talisman YME update Current status Factors impacting project: delay due to poor productivity and increase in work scope offshore Commercial and reputational imperative to resolve difficulties Arbitration proceedings still ongoing Looking ahead Ensure the rate of progress is improving signifi
Slide 8: Encana Deep Panuke update
Encana Deep Panuke update Current status Delay as a result of low productivity Legal proceedings ongoing Decision from Canadian Court not expected before 2013 Looking ahead Actions taken to increase productivity First gas now expected in summer 2012 page 8
Slide 9: Organisation
Organisation Refocus of organisational structure Rising project size and complexity demands new management structure Key issues: responsibility, accountability, conflict resolution Seven execution centres run by MDs, each with full responsibility and accountability New CEO and COO page 9
Slide 10: FPSO, FPSO, FPSO
FPSO, FPSO, FPSO SBM focuses growth on core products with historically solid margins page 10
Slide 11: Focus
Focus Focus on core competence FPSO is a business with historically solid margins Strong growth profile underpinned by market outlook Technological leadership Unrivalled experience in operations & maintenance of FPSOs over 200 years of cumulative experience Improve risk / reward profile
Slide 12: Major Projects in Execution
Major Projects in Execution 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 MOPU Yme MOPU Deep Panuke FPSO Okha FPSO Aseng FPSO Cidade de Anchieta FPSO Cidade de Paraty FPSO OSX2 FPSO Xikomba Turret FLNG Turret Quad 204 FPSO Cidade de Ilhabela Turret Ichthys Difficult Projects Completed with good
Slide 13: Remaining Duration of Lease Contracts
Remaining Duration of Lease Contracts Firm order portfolio on long term contracts with robust clients page 13
Slide 14: 2011 Financials
2011 Review 2011 Financials Outlook page 14
Slide 15: Financial Overview Full Year 2011
Financial Overview Full Year 2011 P&L Total Group (in millions of US$) FY11 FY10 Variance Comment Turnover 3,157 3,055 +3.3% 63% Turnkey Systems, 27% Lease & Operate, 10% Turnkey Services Gross Margin (161) 535 N/A Impairments US$ 894 mln on Yme, (% Margin) (-5.1%) (+17.5%) Deep Panuke, Thunderhawk,
Slide 16: Impairments and Deferrals
Impairments and Deferrals Total impairment charges and deferrals of US$ 978 million comprise: previously announced impairment of US$ 450 million on the Yme MOPUstor™ and Deep Panuke platform additional impairment of US$ 407 million on the Yme MOPUstor™ and Deep Paunke platform charges of US$ 3
Slide 17: Total margin: risk management initiatives
Risk management initiatives Project complexity, scale and length require additional safeguard Gate reviews before margins can be recognized at a level of at least 25% No impact on margin or profitability at completion Impact 2012: deferral of US$ 100 million approximately More conservative
Slide 18: Financial Overview: Lease and Operate
Financial Overview Full Year 2011 Lease and Operate (in millions of US$) FY11 FY10 Variance Comment Turnover 867 800 +8% Higher fleet bonuses than in 2010 Espadarte and Xikomba demobilisation Gross Margin (590) 189 N.A Impairments US$ 857 mln on Yme (% Margin) (-68.0%) (23.6%) and Deep Panuke and US
Slide 19: Financial Overview: Turnkey Systems
Financial Overview Full Year 2011 Turnkey Systems (in millions of US$) FY11 FY10 Variance Comment Turnover 1,989 1,985 0% Mainly Aseng FPSO and Cidade de Paraty FPSO Gross Margin 339 270 25% Good results from recent projects (%) (17.0%) (13.6%) Deferral US$ 57 mln EBITDA 286 201 42% As above (% Marg
Slide 20: Financial Overview: Turnkey Services
Financial Overview Full Year 2011 Turnkey Services (in millions of US$) FY11 FY10 Variance Comment Turnover 340 339 0% Even split offshore contracting/supply products & services Gross Margin 90 76 +19% Good vessel utilisation and project (%) (+26.4%) (+22.4%) results EBITDA 86 73 +18% As above (% Ma
Slide 21: Balance Sheet Total Group
Financial Overview Full Year 2011 Balance Sheet Total Group (in millions of US$) FY11 FY10 Variance Comment Capital Expenditure 841 519 +62% Yme, Deep Panuke and Cidade de Anchieta Debt 2,123 1,747 +22% Increased RCF & Project financing to fund capex Net Liquidities 165 103 +60% Normal level Net Deb
Slide 22: Financing capacity
Financing capacity Net gearing reached 145% (excluding hedge revaluation: 117%) Still within stated range Relevant banking covenants are all met Revolving Credit Facility - uses adjusted EBITDA (finance leases, exceptionals) Newer project loans: Financial covenants only during pre-comple
Slide 23: Order Portfolio Backlog
Order Portfolio BACKLOG (in billions of US$) 2012 2013 2014 3.8 3.2 1.6 Turnkey Systems Turnkey Services Lease & Operate Total 2012 2.6 0.3 0.9 3.8 2013 2.1 - 1.1 3.2 2014 0.6 - 1.0 1.6 Beyond 2014 - 8.3 8.3 Total 5.3 0.3 11.3 16.9 page 23
Slide 24: Outlook
2011 Review 2011 Financials Outlook page 24
Slide 25: FPSO market outlook
FPSO market outlook Field developments with FPSOs over the next 3 years The FPSO market outlook is buoyant page 25
Slide 26: Financial Outlook 2012
Financial Outlook 2012 Turnover in the region of US$ 4 billion Turnkey Systems EBIT margin around 10%, new margin recognition principles will defer around US$ 100 million from 2012 to future years Turnkey Services EBIT margin in the 15%-20% range Underlying level Lease and Operate EBIT margi
Slide 27: Q&A
SBM OFFSHORE N.V. Q&A page 27