Vantage Drilling International Ltd · OSL:VDI
Vantage Drilling International — Investor Presentation (September 2020)
28 slides from Vantage Drilling International's investor presentation, September 2020
Slide 1: Vantage Drilling International Investor Presentation
Vantage Drilling International Investor Presentation September 2020
Slide 2: Disclaimer
Disclaimer This presentation is being provided solely for use by the recipient in making its own evaluation of Vantage Drilling International (the “Company”), its business, assets and financial condition, and may not be disclosed, distributed, copied, reproduced or used for any purpose other than wi
Slide 3: Q2 2020 Financial Position
Q2 2020 Financial Position $188.4 $161.6 $242.5 million of Working Capital million Million Net Debt of Cash ($350 million of Gross Debt) 3
Slide 4: Agenda
Agenda 1. 1 Company Overview 2. 2 Operating Strategy and Results 3. 3 Leverage and Liquidity 4. 4 Market Outlook 5. 5 Path Forward 4
Slide 5: Company Overview
Company Overview VANTAGE
Slide 6: Vantage Drilling at a Glance
Vantage Drilling at a Glance Overview • Offshore drilling contractor that provides offshore drilling services and preservation management services for third-party drilling units. • Offices in Houston (split HQ), Dubai split (HQ) and Singapore. • Maintains among the most conservative capital structur
Slide 7: Modern Fleet of Drillships and Jackups
Modern Fleet of Drillships and Jackups Platinum Titanium Tungsten Sapphire Aquamarine Topaz Soehanah Emerald Driller Explorer Explorer Explorer Driller Driller Driller Driller(1) Type: Drillship Drillship Drillship Jackup Jackup Jackup Jackup Jackup Generation: UDW (6th gen) UDW (6th gen) UDW (6th g
Slide 8: Presence in Key Offshore Regions
Presence in Key Offshore Regions Tungsten Explorer Platinum Explorer Eastern Med India Topaz Driller Montenegro Houston (Co-HQ) Emerald Driller Qatar Dubai (Co-HQ) Singapore Fleet and offices Sapphire Driller Soehanah Driller Congo Indonesia 5 Jack-ups 3 Drillships Titanium Explorer Aquamarine Drill
Slide 9: Experienced Management Team
Experienced Management Team Ihab Toma Douglas Stewart Douglas Halkett Bill Thomson Chief Executive Chief Financial Officer & Chief Operating Officer VP Marketing & Officer General Counsel Business Development Joined Vantage in 2016 Joined Vantage in 2016 Joined Vantage in 2008 Joined Vantage in 2008
Slide 10: Recent Timeline and Accomplishments
Recent Timeline and Accomplishments Working rig count: Arbitration award Emerged from DOJ closes $622mm (plus Settled Collected $701m Chapter 11 FCPA interest) with SEC Arbitration award 2016 2017 2018 2019 2020 Sold Vantage New CEO, Acquired $525mm Formed 260 and moved Purchased $350mm 3rd Lien CFO
Slide 11: Operating Strategy and Results
Operating Strategy and Results
Slide 12: Clear Strategy: Company-wide Focus Areas - WIGs
Clear Strategy: Company-wide Focus Areas - WIGs Provide our shareholders with a self-funding platform, achieving margin accretive fleet utilization and fully satisfied clients by following our Wildly Important Goals (WIGs): 0 Maintain world class safety and operational performance Reduce costs and P
Slide 13: WIG1: Safety and Operational Performance
WIG1: Safety and Operational Performance Focus on safety visible in incident rate trends 0.9 Vantage Safety Performance Chart 0.8 5-Year, 12-Month Rolling Average (Dec 2014 – Aug 2020) 0.7 2015 Target TRIR = 0.66 0.6 2016 Target TRIR = 0.59 0.5 2017 & 2018 Target TRIR = 0.45 0.4 2019 & 2020 Target T
Slide 14: WIG #1 – Stellar safety and operational performance
WIG #1 – Stellar safety and operational performance WIG1: Won Bestperformance Superior Rig in TOTAL Deepwater recognized by Total Fleet 14
Slide 15: WIG1: Safety & Operations Differentiation
WIG1: Safety & Operations Differentiation Fleet-wide Safety Stand Down on CEO’s 1st day on the job. Focused on performance, but never at the expense of safety. Changed the Company Vision in 2016 to “A Perfect Day, Every Day” and defined it as: – No Incidents – No Non-Productive Time – A Fully Sa
Slide 16: WIG2: Achieve and Maintain Full Fleet Utilization
WIG2: Achieve and Maintain Full Fleet Utilization Pre Covid-19 Fleet utilization compared to other industry players 12% 13% 16% 20% 24% 25% 33% 34% 43% 55% 88% 87% 84% 80% 76% 75% 67% 66% 57% 45% Contracted Uncontracted High utilization focus Commercial acumen • Customers’ priority for “hot” rigs •
Slide 17: WIG2: Achieve and Maintain Full Fleet Utilization
WIG2: Achieve and Maintain Full Fleet Utilization 1. We have agreed with the client to standby, at a reduced rate for a period of three months 2. Client Terminated contract – effective 30th May 2020 17 3. We agreed with client to move to FM rate upon completion of the well in progress, prior to endi
Slide 18: WIG3: Cost Savings and Preserving Cash
WIG3: Cost Savings and Preserving Cash Reduced G&A, Global Support and Base Reduced offshore operating costs costs Shore-base Costs Excludes MIP expense, non-recurring legal fees, severance expense & • Created the Cost-Effective Dubai Co-HQ Special Insurance Litigation Policy expense $93.8M • Region
Slide 19: WIG3: Cost Savings and Preserving Cash – Offshore
WIG3: Cost Savings and Preserving Cash – Offshore Labor Cost Offshore Cost Reduction through Regionalization and Nationalization of the Senior Crew 2015 Offshore Senior Staff 2019 Offshore Senior Staff Makeup Annual Offshore Labor Costs (Millions USD) Expat% Reduction Expats% National % Regional% Ex
Slide 20: Leverage and Liquidity
Leverage and Liquidity VANTAGE
Slide 21: Manageable Leverage, Ample Liquidity and Undistracted Operations
Vantage Drilling’s Manageable Leverage, Ample Liquidity and Undistracted Operations Vantage debt maturities • No new build commitments. • Manageable reactivation costs with only one warm stacked drillship. $350 188.4 • Minimal capex and maintenance commitments. Cash 2020 2021 2022 2023 2024 2025 202
Slide 22: Market Outlook
Market Outlook
Slide 23: Post COVID-19 Industry Outlook
Post COVID-19 Industry Outlook Since 2015, the offshore drilling industry has faced challenges in providing investors with desirable returns and participants were anticipating a recovery in 2020 in order to create value for shareholders. However, the recent black swan events, which caused a coll
Slide 24: Jackup Demand Bifurcation Playing Out Strongly
Jackup Demand Bifurcation Playing Out Strongly Clients’ clear preference for Modern Jackups Bifurcation in utilization • Jackup recovery will be helped by Modern Modern >2001 built Vintage units Jackups continuing to replace vintage units 4 • Superior drilling performance 33 24 – Offline stand build
Slide 25: Vantage as a Consolidation Platform
Vantage as a Consolidation Platform Vantage’s management team has a solid track record of delivering safety and operational performance, profitably putting rigs to work, reducing costs and preserving cash. Our well-capitalized balance sheet, rightsized cost structure, experienced management team
Slide 26: Path Forward
Path Forward VANTAGE
Slide 27: Well-positioned Operationally and Financially
Well-positioned Operationally and Financially Maintain solid platform well positioned for the long-haul • Efficient and low costs overhead structure. • Working rigs with positive cash flow contracts. • Healthy Balance Sheet with no debt maturities until 2023. Continue our operational focus • Drive f
Slide 28: A Perfect Day, Every Day
SG Every THAN YOU A Perfect Day, Day VANTAGE
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