Prosafe Se · OSL:PRS

Prosafe — Q2 2020 Earnings Presentation

20 slides from Prosafe's earnings presentation, Aug 20, 2020

1. Slide 1: Q2 2020 results and business update

   20 August 2020 Q2 2020 results and business update

2. Slide 2: Disclaimer

   Disclaimer All statements in this presentation other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties, and assumptions that are difficult to predict and are based upon assumptions as to future events that may not prove accurate.

3. Slide 3: Agenda

   Agenda  Highlights  Update on financial situation  Financial results  Strategy & Summary 3

4. Slide 4: Highlights – Q2 2020

   Highlights – Q2 2020  2020 – a lost year: • All time low activity: Utilisation of 6.5% in Q2 (71.6%) • Financial results: • Reported EBITDA of USD 10 million negative • Cash flow from operations was USD 5.5 million negative (USD 19.9 million)  However: • The company has successfully implemented Co

5. Slide 5: Agenda

   Agenda  Highlights  Update on financial situation  Financial results  Strategy & Summary 5

6. Slide 6: Update on financial situation

   Update on financial situation  After several years of low activity across the industry and an unsustainable debt level, the company has been engaged in process with its lenders since end of 2019 to ensure sufficient financial flexibility for the longer term  The process with the lenders to agree a

7. Slide 7: Agenda

   Agenda  Highlights  Update on financial situation  Financial results  Strategy & Summary 7

8. Slide 8: Income statement

   Income statement Q2  Low fleet utilisation at 6.5% (Q2 2019: 71.6%) due to (Unaudited figures in USD million) 2020 2019 commercial developments driven by Covid-19 and oil price collapse Operating revenues 5 75  Lower operating revenues due to low utilisation Operating expenses (15) (22)  Reported

9. Slide 9: Balance sheet

   Balance sheet (Unaudited figures in USD million) 30.06.20 30.06.19 Vessels 426 1,379  Total assets of USD 615 million, significantly reduced from New builds 1 149 the same quarter last year mainly due to the impairments Other non-current assets 3 3 Total non-current assets 431 1,531 carried out in

10. Slide 10: Agenda

    Agenda  Highlights  Update on financial situation  Financial results  Strategy & Summary 10

11. Slide 11: Strategy & focus areas

    Strategy & focus areas Protect and create value from being a leading provider of offshore accommodation services globally Commercial wins:  Keep vessels working  Best in class OPEX in operations and in lay-up  Efficiency through core teams and HSSEQ excellence Financing and cash preservation:  R

12. Slide 12: Fleet status: Contracts, wins and extension

    Fleet status: Contracts, wins and extension Contract backlog Contracting update  Safe Concordia contract with Equinor Brazil at Peregrino successfully completed  Safe Notos contract with Petrobras under suspension since early April 2020  Safe Eurus will reassume operations on 24 September 2020 

13. Slide 13: Order backlog per end Q2 2020

    Order backlog per end Q2 2020 2500 2000 878 649 604 1500 610 621 604 598 593 1000 564 518 1541 481 483 1371 1239 1111 500 1024 1084 997 38 816 36 703 36 590 36 67 486 449 443 67 78 37 375 304 45 21 8 273 232 209 199 11 7 184 156 170 146 127 122 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

14. Slide 14: Reducing the cost base to improve competitiveness and preserve cash

    Reducing the cost base to improve competitiveness and preserve cash SG&A* costs down over 60% since 2015 CPD down 35-40% on average Opex NCS UK NCS UKCS Brazil (CPD (TSV) USD k/d) DP DP Moored Moored DP 2015- - ~20% - ~ 45% - ~25% - ~50% - ~42% 2019 Stacking Warm stack Cold stack CPD (USD k/d) 2015

15. Slide 15: Global oversupply of vessels

    Global oversupply of vessels - Fleet enhancement and consolidation remains on the agenda Global supply demand outlook 45 40 Total Supply: 38 Vessels 35 30 # Vessel Years 25 Scrapping required to balance market 20 15 10 5 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021e 2022e

16. Slide 16: Summary

    Summary  2020 – a lost year: • Utilisation of 6.5% in Q2 (71.6%) • Reported EBITDA of USD 10 million negative • Cash flow from operations was USD 5.5 million negative (USD 19.9 million)  However: • Total liquidity reserve of USD 178 million (USD 241 million) • Successfully implemented measures to

17. Slide 17: Appendix

    Appendix ey Prosafe

18. Slide 18: Development of operating results

    Development of operating results 18

19. Slide 19: Liquidity reserve & Net interest-bearing debt

    Liquidity reserve & Net interest-bearing debt 19

20. Slide 20: Operating revenue

    Operating revenue (USD million) Q2 20 Q2 19 Q1 20 2019 Charter income 4.4 63.7 24.4 191.7 Other income 0.1 11.6 0.6 33.7 Total 4.5 75.3 25.0 225.4 20

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