Seatrium Limited · SGX:5E2
Seatrium — Investor Day (March 2024)
29 slides from Seatrium's investor day presentation, Mar 15, 2024
Slide 1: Seatrium Strategy – Chris Ong, Chief Executive Officer
SEATRIUM STRATEGY CHRIS ONG Chief Executive Officer
Slide 2: Investor Day 2024: Towards Profitable and Resilient Growth
INVESTOR DAY 2024 Towards Profitable and Resilient Growth 15 March 2024
Slide 3: 28 February 2023: A Transformative Combination
28 FEBRUARY 2023: A TRANSFORMATIVE COMBINATION Immediate priority was to bring together two organisations with different people, cultures, systems and operating models to form a leading global offshore and marine player 5
Slide 4: In Our First Year, We Have …
IN OUR FIRST YEAR, WE HAVE … INTEGRATED AS STRENGTHENED DEFINED OUR ONE SEATRIUM OUR BALANCE SHEET FUTURE PATH ✓ Built leadership team ✓ De-risked balance sheet ✓ Formulated new strategy ✓ Launched new brand ✓ Improved liquidity ✓ Streamlined yard assets ✓ Integrated processes and ✓ Started to reali
Slide 5: Our Vision
OUR VISION TO BE A LEADING GLOBAL PROVIDER TO BECOME A OF SOLUTIONS TO THE OFFSHORE, PROFITABLE AND MARINE & ENERGY INDUSTRIES RESILIENT BUSINESS 7
Slide 6: Energy Trilemma Presents S$0.5 Trillion Opportunity for Seatrium
ENERGY TRILEMMA PRESENTS SECURITY S$0.5 TRILLION1 OPPORTUNITY FOR SEATRIUM IN THE NEXT 5 YEARS AFFORDABILITY SUSTAINABILITY 8 Note: 1. Represents market size addressable by Seatrium, based on internal estimates and 3 rd party research
Slide 7: Our Strategy
OUR STRATEGY Riding industry tailwinds and long-term energy megatrends to build a more resilient and diversified portfolio Oil & Gas Offshore Wind Repairs & Upgrades CCS & New Energies Reinforce our leadership Accelerate transition and Grow baseload of Invest selectively for in production assets pos
Slide 8: Our Competitive Advantages
OUR COMPETITIVE ADVANTAGES Proven track record with 1,300+ successful deliveries One Seatrium delivery model enabling global, end-to-end execution Global technology centres driving designs & technology developments Diverse international talent pool to support global operations Strong relationships w
Slide 9: Proven Track Record
PROVEN TRACK RECORD Executed 1,300+ newbuild & conversion projects of increasing complexity while expanding our solutions portfolio 1960s 1980s 2000s 2010s 2020s New Energies Ammonia, H2 , hybrid, battery electric vessels Offshore Largest Repeat Wind 1st WTIV 1st HVAC SSCV 1st HVDC HVDCs Oil & Gas 1
Slide 10: One Seatrium Delivery Model
ONE SEATRIUM DELIVERY MODEL Only player capable of end-to-end global delivery with ability for capacity scale-up ▪ Centralised & coordinated execution model Assets ▪ Optimise asset base ▪ Enhance operational excellence Technology Operations ▪ Deliver synergies and cost savings ▪ Strategic partnershi
Slide 11: One Seatrium Delivery Model: Global Network
ONE SEATRIUM DELIVERY MODEL Coordinated global network to deliver increasingly complex products OUR GLOBAL FOOTPRINT PARTNERSHIPS & OUTSOURCING COMMERCIAL PARTNERS TECHNOLOGY PARTNERS Yard assets Engineering centres Technology centres Proprietary Total area 3 4000+ SUBCONTRACTORS Market Access 7.6m+
Slide 12: Showcase 1: P-Series FPSO
SHOWCASE 1: P-SERIES FPSO We leverage our global network to build a series of large and complex FPSOs Local Content Requirement Fabrication & Integration Detailed Engineering • COE for offshore energies Topside Module Fabrication • In-house / outsourced Illustration of Petrobras FPSO Hull Fabricatio
Slide 13: Showcase 2: TenneT 2GW HVDC
SHOWCASE 2: TENNET 2GW HVDC End-to-end delivery of complex HVDC, from EPC to offshore installation, commissioning & maintenance Topsides Construction Project Management • Fabricated and assembled in • Shared between Singapore & Batam Seatrium & partner GE Engineering • Led by Seatrium, scope shared
Slide 14: Showcase 3: Repairs & Upgrades
SHOWCASE 3: REPAIRS & UPGRADES Yard footprint Strategically located along major shipping lanes Technology capabilities Innovative decarbonisation solutions Global network Exclusive marketing representatives in 15 countries Strategic partnerships 26 long-term partnerships & >85% regular customers 16
Slide 15: Operational Excellence: Enhancing Productivity
OPERATIONAL EXCELLENCE: ENHANCING PRODUCTIVITY Smart Yard Smart Asset Tech-enabled Workforce Digital Twin Shop-based Automation 5G Remote Inspection Digital Control Tower AI/ML-based Optimisation VR/AR Remote Collaboration 5G 5G Connectivity Realtime Performance AI-enabled Digital Workflow 17
Slide 16: Digital Twin, Remote Inspection and AR/VR Collaboration
Realtime Digital Twin Asset Monitoring AR-assisted Benefits : Remote Inspection 10-20% increase in field engineers’ efficiency Benefits : Up to 30% reduction of manhours required on site with AR-assisted functions Remote AR/VR Collaboration Benefits : Enabler for cross-border collaboration to increa
Slide 17: Expand Technology and IP Capabilities, Invest for the Future
EXPAND TECHNOLOGY AND IP CAPABILITIES, INVEST FOR THE FUTURE Norway USA 700+ 200 200+ Patents Built / proven AiP / concepts Liquid H2 SWACH FW Blue CO2 foundation H2 injection products carrier vessel UAE 8 ~200 Technology Technologists Jackup Rig companies design SG LNG Shipboard FWSS FW WTIV Energy
Slide 18: Floating Wind Foundation Development
FLOATING WIND FOUNDATION DEVELOPMENT Small Waterplane Area Cylindrical Hull (SWACH) [Video #1] ✓ Proprietary design based on proven technology ✓ Excellent motions and robust stability ✓ Shallow draft for quayside integration ✓ Suited for mass production ✓ Scalable for large turbine size Model tests
Slide 19: Designed World 1st Liquid H2-Powered Ferry
Designed World 1st liquid H2-powered ferry 21
Slide 20: Develop Diverse International Talent Pool
DEVELOP DIVERSE INTERNATIONAL TALENT POOL SG 54% 29 STAFF BY REGION US/BR Asia ex-SG 35% 10% nationalities Others 1% Executive and above >50 YO 18% STAFFBY STAFF 1 5 in BYAGE AGE 30 - 50 YO <30 YO 62% 20% are women • Propel engineering, technology and operations globally • Advance our prowess in glo
Slide 21: Strong Relationships with Our Customers
STRONG RELATIONSHIPS WITH OUR CUSTOMERS Robust set of both new and repeat customers ... … with strong Repairs & Upgrades client base • P56 • 3 x 2GW HVDC • P78 • Dolwin Epsilon • P80 • P82 • Sturgeon WTIV • P83 • Vito FPU • Raia • Whale FPU • Bacalhau • Sparta FPU • Leopold Sedar • Crux Senghor • MV
Slide 22: We Conduct Our Business with the Highest ESG Standards
WE CONDUCT OUR BUSINESS WITH THE HIGHEST ESG STANDARDS 24
Slide 23: Sustainability Ambitions: Net Zero
SUSTAINABILITY AMBITIONS Our yards in Brazil are powered by hydroelectricity OPERATING A RESPONSIBLE BUSINESS 40% ENGINEERING A EMISSIONS1 REDUCTION SUSTAINABLE FUTURE by 20302 NET ZERO CARING FOR OUR PEOPLE by 2050 AND COMMUNITIES 25 Note: 1. Scope 1 & Scope 2 emissions; 2. Reduction from 2008 base
Slide 24: Commitment to Health & Safety
COMMITMENT TO HEALTH & SAFETY Maintain Relentless focus to reduce Zero fatality rate LTIR1 • WSH Performance Awards WORKPLACE • SHARP2 Awards SAFETY & • WSH Innovation Awards HEALTH • WSH Awards for Supervisors • CARE3 Award 26 Note: 1. Lost Time Incident Rate; 2. Safety and Health Award Recognition
Slide 25: Strong Governance Is the Foundation of Our Business
STRONG GOVERNANCE IS THE FOUNDATION OF OUR BUSINESS Governance Compliance Risk Management • Collective commitment • Code of conduct and • Defined risk appetite • Clarity on no-gos compliance policies • Ownership of risks • Integrated Assurance • Culture of speaking up • End-to-end resourcing & Frame
Slide 26: By 2028, We Target to Achieve …
BY 2028, WE TARGET TO ACHIEVE … ≥ S$1.0b ≥ 8.0% c. 2.0-3.0x EBITDA Return on Equity Net Debt/EBITDA … VERSUS FY23 > 4x uplift Turnaround Sustain 28 This information is confidential; it is not to be relied on by any 3rd party without prior written consent. RESTRICTED SNG Board Transformation Committe
Slide 27: Management Incentives Aligned with Targets
MANAGEMENT INCENTIVES ALIGNED WITH TARGETS FINANCIALS • Order book • Profitability • Balance sheet • Free cash flow OPERATIONS VALUE CREATION FOR • Project management SHAREHOLDERS (on schedule & on budget) • Total shareholder return PEOPLE ESG • Talent development • Decarbonisation • Talent retentio
Slide 28: Key Takeaways
KEY TAKEAWAYS SINCE MERGER, WE HAVE DEFINED WE HAVE A CREDIBLE WE ARE COMMITTED WE WILL CONTINUE TO WE HAVE COME OUR CORE VALUES PATH TO BUILD A TO BUILDING A TRANSFORM OUR TOGETHER AS AND FOSTERED A PROFITABLE AND SUSTAINABLE BUSINESS AND DELIVER ONE SEATRIUM IN SHARED PURPOSE RESILIENT BUSINESS BU
Slide 29: Disclaimer
DISCLAIMER The material in this Presentation has been prepared by Seatrium Limited and contains general background information about the Company’s activities as at the date of this Presentation. No representation, warranty, or undertaking, express or implied, is made as to, and no reliance should be