Sbm Offshore Nv · EURONEXT:SBMO

Sbm Offshore Nv — FY2023 Earnings Presentation

46 slides from Sbm Offshore Nv's earnings presentation, Feb 29, 2024

Slide 2: Disclaimer
Disclaimer Some of the statements contained in this presentation that are not historical facts are statements of future expectations and other forward-looking statements based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual
Slide 3: Creating value for all stakeholders
Creating value for all stakeholders ENERGY TRANSITION COMPANY REDUCE COSTS AND EMISSIONS DEVELOP COMPETITIVE FROM O&G PRODUCTION LOWER CARBON SOLUTIONS VALUE VALUE PLATFORMS PLATFORMS OCEAN INFRASTRUCTURE TRANSITION Project Contractual Fleet uptime Emission Renewable Hydrogen Digital Execution backl
Slide 4: 2023 Highlights
2023 Highlights FINANCIAL OCEAN TRANSITION PERFORMANCE INFRASTRUCTURE US$1,319 million EBITDA1 FPSOs Prosperity & Sepetiba 1st oil PGL successful installation US$30.3 billion backlog Whiptail FEED award FPSO Jaguar Net zero ambitions on track US$9.3 billion Net Cash backlog 10-year O&M Agreement Emi
Slide 5: Delivering value through operational and project execution excellence
Delivering value through operational and project execution excellence Total Recordable 0.31 0.19 0.18 0.13 0.12 1 Injury Frequency 0.10 0.06 0.08 Safe and inclusive work environment Rate (TRIFR) per 200,000 hours 2016 2017 2018 2019 2020 2021 2022 2023 28 1.2 GHG emissions Gas flared during 0.6 2 13
Slide 6: Deepwater double resilience optimal to address supply gap
Deepwater double resilience optimal to address supply gap… ~10-20 Mbpd oil supply shortage in the coming decade 110 OIL & GAS Key role to play in the energy transition 100 97 90 CARBON EFFICIENCY ~20Mbpd Million barrels per day (Mbpd) 80 Low emission intensity production required 70 ~30Mbpd 60 COST
Slide 7: …with FPSOs being the solution of choice
…with FPSOs being the solution of choice Deepwater - lowest GHG footprint DEVELOPING PROFITABLE, FAST-TRACKED 80 AND LOW EMISSIONS PROJECTS KgCO2e/boe 70 60 50 ~US$25-35 40 Low per barrel breakeven price 30 20 10 ~40% 0 Lower emission intensity than Offshore Offshore shelf Shale/Tight oil Other Onsh
Slide 8: Strong FPSO market outlook
Strong FPSO market outlook SELECTIVE & DISCIPLINED 6 FPSO CAPACITY 15 PROSPECTS WITHIN TARGET targeting projects delivering value to all stakeholders under construction or ~2 wins per year large and complex FPSOs 12 11 average 5 per11 year 9 9 1 3 4 7 5 5 11 4 4 3 4 5 31 3 5 2 2 16 2 7 2 1 2 1 '19 '
Slide 9: SBM making the difference - time to market
SBM making the difference - time to market Field development performance From discovery to first oil from discovery to first oil1 leading in Guyana 1000 FPSO 2 < 7 years ONE GUYANA 750 Installed capacity bbls/d FPSO SBM Offshore fleet 7.9 years 6.8 years Prosperity 500 FPSO 6.8 years Liza Unity Othe
Slide 10: SBM making a difference - flawless start-up
SBM making a difference - flawless start-up FROM ENGINEERING TO OPERATIONS Using our unique know-how through the full lifecycle CREATING VALUE THROUGH OPTIMIZED RAMP-UP TIME Accelerating production and lowering CO2 intensity FAST4WARD® STANDARDIZATION Enhancing start-up certainty through replication
Slide 11: Major project deliveries
Major project deliveries FIRST FAST4WARD® DELIVERY IN BRAZIL successful replication of the model to different markets FPSO SEPETIBA 7th FPSO IN CURRENT BRAZIL PORTFOLIO adding nameplate capacity of 180,000 bbls/d ~8-12KgCO2e/boe1 3rd FPSO IN GUYANA adding nameplate capacity of 220,000 bbls/d ~8-12Kg
Slide 12: De-risked FPSO project portfolio
De-risked FPSO project portfolio 3 FPSOs UNDER CONSTRUCTION Nameplate Percentage >70% weighted average portfolio percentage of completion 1st oil date capacity (bpd) of completion FPSO Almirante Tamandaré 225,000 20251 > 75% 2 MPF HULLS UNDER CONSTRUCTION One allocated to FPSO Jaguar FPSO Alexandre
Slide 13: Operational excellence
Operational excellence 2M BBLS/D INSTALLED CAPACITY ~1M barrels per day produced in 2023 10-YEAR OMEA AGREEMENT 1 Adding ~US$3 billion revenue backlog FPSO LIZA UNITY SALE Operations continue under 10-year OMEA agreement 98.2% FLEET UPTIME 2 In line with historical levels RESPONSIBLE DECOMMISSIONING
Slide 14: On track for our Net Zero ambitions
On track for our Net Zero ambitions SCOPE 1 & 2 SCOPE 3 Downstream Leased Assets NEAR ZERO EMISSION FPSO 2025 CLIMATE NEUTRAL1 available to the market by 2025 50% GHG INTENSITY REDUCTION3 2030 100% GREEN ENERGY 2 ZERO ROUTINE FLARING4 2050 NET ZERO BY 2050 (1) Balancing emissions associated with mar
Slide 15: emissionZERO program roadmap on track
emissionZERO® program roadmap on track 15-40% 40-80% 80-100% REDUCTION POTENTIAL REDUCTION POTENTIAL REDUCTION POTENTIAL Implement available Increase electrification and Nullify residual emissions and implement carbon reduction solutions develop carbon capture technology new power generation technol
Slide 16: Modularized carbon capture solution ready for market
Modularized carbon capture solution ready for market MHI1 PARTNERSHIP AGREEMENT Combining both companies' expertise CARBON CAPTURE DNV TECHNOLOGY QUALIFICATION Validating contribution to carbon neutrality efforts ONGOING COMMERCIAL ENGAGEMENT Engineering and design studies for clients (1) Mitsubishi
Slide 17: Demonstrating our expertise in the offshore wind market
Demonstrating our expertise in the offshore wind market FLOATERS INSTALLED PROVENCE Tension-leg floater technology mature GRAND LARGE 1st TENSION LEG FLOATING WIND 3 floaters supporting 8.4MW turbines each ~10%1 OF TOTAL MW CAPACITY Installed worldwide following commissioning (1) Source: 4C Offshore
Slide 18: Floating offshore wind market shifting to the right
Floating offshore wind market shifting to the right DEVELOPMENT AREAS WORLDWIDE (2023-2030) PROJECTED INSTALLED CAPACITY (GW)1 INVESTIGATING PARTNERSHIP OPPORTUNITIES to facilitate sustainable continued market pursuit (1) Source: 4C Offshore, SBM Offshore Market Intelligence © SBM Offshore 2024. All
Slide 19: Positioned for disciplined growth in the energy transition
Positioned for disciplined growth in the energy transition BUILDING ON DECADES ENERGY TRANSITION PARTNER OF EXPERIENCE REDUCING CLIENT & COMPANY EMISSIONS EPCI • EMISSIONZERO® • CARBON CAPTURE • FLOATING OFFSHORE WIND • AMMONIA & HYDROGEN • DIGITAL SOLUTIONS © SBM Offshore 2024. All rights reserved.
Slide 20: Recognized sustainable impact
Recognized sustainable impact PEOPLE FIRST EXTERNAL RECOGNITION Ranking2 : ESG INDUSTRY TOP RATED Rating: AA EMISSIONS REDUCTION AAA= max, CCC=min Scope 1 & 2 Green Energy 38% 38% in offices1 Rating3: B A= max, D- = min Scope 3 Flaring intensity 2016 -15 2023 (KgCO2e/boe) 28.3 KgCO2e/boe 13.3 Rankin
Slide 21: Strategic priorities
Strategic priorities Short term Medium Term Long term Until 2025 Towards 2030 2030 & beyond OCEAN EXCELLENCE IN EXECUTION OF GROWING BACKLOG INFRASTRUCTURE ADAPT TO NEW TRANSITION BUSINESS MODELS PROFITABLY ENTER NEW MARKETS 6 FPSOs UNDER CONSTRUCTION EMISSIONZERO® ORDER INTAKES FPSO + ALTERNATIVE K
Slide 22: Financial Highlights
Financial Highlights US$1.3 BILLION US$30.3 BILLION US$3.6 BILLION US$220 MILLION record Directional EBITDA1 backlog2 financing raised in 2023 cash return to shareholders Completion of FPSO Liza Unity sale US$9.3 billion net cash backlog Construction portfolio fully financed 12% increase vs. 2022 EU
Slide 23: Directional Overview
Directional Overview1 Pro-forma backlog (US$ billions) Net debt (US$ billions) 30.5 30.3 6.1 6.7 FY 2022 FY 2023 FY 2022 FY 2023 Revenue (US$ millions) EBITDA (US$ millions) 4,532 1,319 3,288 1,010 FY 2022 FY 2023 FY 2022 FY 2023 (1) Directional reporting, presented in the Financial Statements under
Slide 24: 2023 Sources and Uses of Cash and Liquidity
2023 Sources and Uses of Cash and Liquidity Directional, US$ millions Group liquidity (US$ billions) Cash from Operations1 Debt drawdowns Other Sources of cash 2,168 1,901 31 0.6 1.2 0.5 Uses of cash 1,614 248 104 197 339 1,612 38 Debt repayment Working Growth2 Non-recurring3 Net cash Tax (including
Slide 25: Well-structured debt enables growth
Well-structured debt enables growth Non-Recourse Corporate debt Construction debt Unlevered FPSOs Project debt1 4 7 9 US$0.3bn net debt US$3.1bn debt2,3 US$3.3bn debt Debt free US$30.3bn backlog US$15.6bn4 US$11.6bn US$3.1bn US$9.3bn net cash5 US$4.8bn US$3.4bn US$1.1bn backlog US$6.4bn debt covered
Slide 26: High quality long-term backlog
High quality long-term backlog Directional, US$ billions Pro-forma Directional backlog1 and debt service 4.5 INVESTMENT GRADE PROFILE Weighted average IG rated client portfolio & project debt ratings 4.0 3.5 3.0 STRONG UNDERLYING PROJECT PORTFOLIO 2.5 With low break-even costs 2.0 1.5 1.0 INFLATION
Slide 27: Track record delivering & growing cash from backlog
Track record delivering & growing cash from backlog1 Directional, US$ millions US$30.3 billion L&O and BOT net cash translated in EUR/share3 pro-forma backlog 30 22 18 15 13 12 ~US$9.3 billion net cash from L&O and BOT sales 800 5% 10% 15% 20% 25% 30% Discount Rate BOT 0.5 700 Interest curve Average
Slide 28: Capital Allocation & Shareholder Returns Model
Capital Allocation & Shareholder Returns Model US$ millions OCEAN INFRASTRUCTURE TRANSITION Net cash from GROWTH EXISTING PORTFOLIO L&O and BOT sales + BOT 0.5 800 Dividend & 700 structural buybacks = 600 500 + L&O 8.8 400 Growth 300 ACCELERATION 200 Accelerated equity cash flow 100 - Lower debt Hig
Slide 29: Stable and growing cash return to shareholders
Stable and growing cash return to shareholders Shareholder returns policy The Company’s policy is to maintain a stable annual cash return to shareholders which grows over time, with flexibility for the Company to NO CHANGE IN BASIS OF SHAREHOLDER RETURNS POLICY make such cash return in the form of a
Slide 30: 2024 Guidance
2024 Guidance DIRECTIONAL EBITDA Around 1.2 billion US$ DIRECTIONAL REVENUE Around 3.5 billion US$ LEASE & OPERATE Around 2.2 billion US$ TURNKEY Around 1.3 billion US$ © SBM Offshore 2024. All rights reserved. www.sbmoffshore.com 30
Slide 31: Before we resume a normal activity
Before we resume a normal activity GROWING MARKET Strong market outlook RECOGNIZED COMPETITIVE ADVANTAGE Through success of Fast4Ward® concept SIGNIFICANT SHAREHOLDER RETURNS >US$1.6 billion since 2016 SET FOR THE FUTURE Strategy and vision aligned with the energy market © SBM Offshore 2024. All rig
Slide 32: Appendix
APPENDIX _— sateen Dm OFFSHORE
Slide 33: Financial performance per segment
Financial performance per segment Directional, US$ millions Lease and Operate Turnkey Revenue EBITDA Revenue EBITDA 2,578 1,954 1,763 1,124 1,080 1,525 296 7 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 “Other” EBITDA FY 2022 US$(77) million vs FY 2023 US$(101) million © SBM Offsh
Slide 34: Pro-forma Backlog and borrowings repayment
Pro-forma Backlog1 and borrowings repayment Directional, US$ billions Pro-forma Directional Backlog1 and borrowings debt service (Directional, US$ billions2) 4.5 TK 0.8 Turnkey Backlog BOT 3.2 4.0 3.5 3.0 2.5 2.0 L&O 26.3 1.5 1.0 Net Debt 0.5 6.7 0.0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Slide 35: c. 30 years of net cash flow visibility from L&O and BOT
c. 30 years of net cash flow visibility from L&O and BOT1 Directional, US$ millions US$30.3 billion pro-forma backlog ~US$9.3 billion net cash from L&O and BOT sales 800 BOT 0.5 +US$2.8 billion 700 Average L&O net cash p.a. after tax 600 ~US$480 million until 2029 ~US$330 million until 2050 500 400
Slide 36: Group P&L
Group P&L Directional, US$ millions Group P&L US$ millions FY 2022 FY 2023 Variance Revenue 3,288 4,532 1,244 Gross Margin 564 1,062 498 Overheads (205) (242) (37) Other operating income / (expense) 20 (11) (31) Net impairment losses on financial and contract assets 12 (22) (34) EBIT 392 788 396 Dep
Slide 37: Turnkey and Lease and Operate P&L
Turnkey and Lease and Operate P&L Directional, US$ millions Turnkey Comments US$ millions FY 2022 FY 2023 Variance Main contributors to FY 2023 revenue are the sale of FPSO Liza Revenue Unity in 2023, Whiptail phase 1 vs divestments on Revenue 1,525 2,578 1,053 FPSOs Almirante Tamandaré and Alexandr
Slide 38: 2023 Sources and Uses of Cash and Liquidity
2023 Sources and Uses of Cash and Liquidity Directional, US$ millions L&O 1.124 Turnkey 296 Other (101) EBITDA 1.319 Deferred income (54) Liza Unity book value 90290 Cash from Operations Debt drawdowns Other Sources of cash 2,168 1,901 31 Uses of cash 1,614 248 104 197 339 1,612 38 Tax Working Growt
Slide 39: Balance Sheet
Balance Sheet Directional, US$ millions Comments on variation US$ millions 31-Dec-2022 31-Dec-2023 Variance Capitalization of FPSO projects partially offset by depreciation over the Property, plant & equipment and Intangibles 8,196 8,515 318 period and FPSO Liza Unity Sale Investment in associat
Slide 40: Lease qualification and consolidation methods
Lease qualification and consolidation methods as of 31 December 2023, IFRS 10 & 11 Assets Lease Contract Type SBM Share % Directional IFRS FPSO N’Goma FL 50% Proportional Equity FPSO Saxi Batuque FL 90% Proportional Equity FPSO Mondo FL 90% Proportional Equity FPSO Cidade de Ilhabela FL 75% Proporti
Slide 41: External funding loans and borrowings
External funding loans and borrowings Directional, US$ millions Net book value as of December 31, 2023 Full Amount IFRS Directional FACILITIES DRAWN FPSO Cidade de Anchieta 163 163 163 FPSO Cidade de Ilhabela 720 720 540 FPSO N’Goma 190 - 95 Normand Installer 16 - - FPSO Cidade de Maricá 672 672 410
Slide 42: Group net debt and borrowings
Group net debt and borrowings Directional, US$ millions Net debt Undrawn facilities + cash 6,500 6,654 6,082 4,500 1,208 2,500 563 505 500 FY 2023 (1,500) Undrawn corporate facilities Net cash Undrawn project debt FY 2022 FY 2023 Net cash Project debt Lease liabilities Average cost of debt1 FY 2023
Slide 43: All covenants are satisfied
Revolving Credit Facility Covenants Key financial covenant FY 2023 Definition1 Solvency ratio > 25%  29.9% IFRS Tangible net worth divided by total tangible IFRS assets Interest cover ratio > 4.0  6.9 Directional Underlying EBITDA divided by net interest payable Represents maximum theoretical lend
Slide 44: Turnkey Model
Turnkey Model TURNKEY ACTIVITIES TURNKEY ACCOUNTING Turnkey Gross Margin (SBM Offshore FPSO share) (Research & Development) (Alternative Energy Investments) (Sales & Marketing) (Overheads) = Turnkey Directional EBITDA Margin generated from BOT/L&O phase IFRS Turnkey Gross Margin 1 22% 17% 2018 - 202
Slide 45: Lease and Operate portfolio
Lease and Operate portfolio 2005 2015 2023 2025 2035 2045 Vessel Name Client Country (1) MEGI E.GUINEA 07/2003 11/2005 05/2024 FPSO Serpentina FPSO Kikeh PTTEP MALAYSIA 08/2007 01/2016 01/2028 01/2031 FPSO Mondo EXXONMOBIL ANGOLA 01/2008 12/2022 12/2024 12/2027 Initial Lease Period FPSO Saxi Batuque

SBM Offshore — FY2023 Earnings Presentation on 6ix

Sbm Offshore Nv — FY2023 Earnings Presentation

Slide 1: Full Year Results 2023

Slide 2: Disclaimer

Slide 3: Creating value for all stakeholders

Slide 4: 2023 Highlights

Slide 5: Delivering value through operational and project execution excellence

Slide 6: Deepwater double resilience optimal to address supply gap

Slide 7: …with FPSOs being the solution of choice

Slide 8: Strong FPSO market outlook

Slide 9: SBM making the difference - time to market

Slide 10: SBM making a difference - flawless start-up

Slide 11: Major project deliveries

Slide 12: De-risked FPSO project portfolio

Slide 13: Operational excellence

Slide 14: On track for our Net Zero ambitions

Slide 15: emissionZERO program roadmap on track

Slide 16: Modularized carbon capture solution ready for market

Slide 17: Demonstrating our expertise in the offshore wind market

Slide 18: Floating offshore wind market shifting to the right

Slide 19: Positioned for disciplined growth in the energy transition

Slide 20: Recognized sustainable impact

Slide 21: Strategic priorities

Slide 22: Financial Highlights

Slide 23: Directional Overview

Slide 24: 2023 Sources and Uses of Cash and Liquidity

Slide 25: Well-structured debt enables growth

Slide 26: High quality long-term backlog

Slide 27: Track record delivering & growing cash from backlog

Slide 28: Capital Allocation & Shareholder Returns Model

Slide 29: Stable and growing cash return to shareholders

Slide 30: 2024 Guidance

Slide 31: Before we resume a normal activity

Slide 32: Appendix

Slide 33: Financial performance per segment

Slide 34: Pro-forma Backlog and borrowings repayment

Slide 35: c. 30 years of net cash flow visibility from L&O and BOT

Slide 36: Group P&L

Slide 37: Turnkey and Lease and Operate P&L

Slide 38: 2023 Sources and Uses of Cash and Liquidity

Slide 39: Balance Sheet

Slide 40: Lease qualification and consolidation methods

Slide 41: External funding loans and borrowings

Slide 42: Group net debt and borrowings

Slide 43: All covenants are satisfied

Slide 44: Turnkey Model

Slide 45: Lease and Operate portfolio

Slide 46: © SBM Offshore 2024. All rights reserved. www.sbmoffshore.com