Sbm Offshore Nv · EURONEXT:SBMO

Sbm Offshore Nv — H1 2024 Earnings Presentation

32 slides from Sbm Offshore Nv's earnings presentation, Aug 8, 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: Half Year 2024 Highlights
Half Year 2024 Highlights Strong 1H 2024 results US$33.7 billion record revenue backlog OCEAN Increased guidance; increased shareholder returns INFRASTRUCTURE Maturing project portfolio; recycling learnings Maintaining strong safety record FPSO Jaguar & FSO Trion contract awards 8th Fast4Ward® hull
Slide 4: Addressing the supply gap
Addressing the supply gap THE ENERGY TRILEMMA ~10-20 MBPD OIL SUPPLY SHORTAGE IN THE COMING DECADE 110 100 97 90 ~20Mbpd Million barrels per day (Mbpd) 80 70 ~30Mbpd 60 55 50 Announced Pledges Scenario ~25Mbpd 40 Net Zero Scenario Stated Policies Scenario Declining Rate of Actual Global Production 3
Slide 5: Strong FPSO market outlook
Strong FPSO market outlook 40 POTENTIAL FPSO AWARDS (2024-2027) DEEPWATER: CARBON AND COST-EFFICIENT 16 in SBM’s sweet spot FPSO: SOLUTION OF CHOICE 3 41 5 5 8 5 2 32 12 ~US$20-35 ~40% 6 Lower emission intensity than Low per barrel breakeven price industry average1 1 Source: SBM Offshore market inte
Slide 6: Full FPSO lifecycle: Our unique value proposition
Full FPSO lifecycle: Our unique value proposition Flawless c. 400 years Standardized Accelerated Responsible transition from cumulative O&M product offering development pace decommissioning EPC to Operations experience EVOLVING OUR BUSINESS MODELS TARGETING SIMILAR RETURNS L&O BOT S&O DEBT & CASH CY
Slide 7: Execution & Operational excellence
Execution & Operational excellence DE-RISKED FPSO PROJECT PORTFOLIO DRIVING EMISSIONS DOWNWARDS 1st oil date 60 FROM FIRST OIL TO GAS INJECTION FPSO Almirante Tamandaré 2025 days 3 Fast4Ward® start-ups well within target >75% FPSO Alexandre de Gusmão 2025 POC FPSO ONE GUYANA 2025 FLARING INTENSITY R
Slide 8: Financial highlights
Financial highlights around around 1.3 1.2 +8% Directional EBITDA INCREASED EBITDA GUIDANCE FY 2024 guidance (US$ billion) FY23 1H24 33.7 30.3 +11% Pro-forma Directional RECORD US$33.7 BILLION REVENUE BACKLOG1 backlog (US$ billion) FY23 1H24 1,491 +23% 1,840 Directional revenue US$1.8 BILLION INCREA
Slide 9: Commercial models
Commercial models Indicative net cash profiles Sale & Operate model Booked in Turnkey SALE & OPERATE FPSO Booked in L&O 100% SBM ownership No debt financing Opex reimbursable Y-4 Y-3 Y-2 Y-1 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Build-Operate-Transfer model BOT FPSO
Slide 10: Growing cash from backlog
Growing cash from backlog 1 Directional, US$ millions L&O, BOT and Turnkey net cash translated in EUR/share2 32 23 US$33.7 billion ~US$9.6 billion 18 15 13 pro-forma net cash pro- 11 backlog forma backlog Additional US$0.4 bn 5% 10% 15% 20% 25% 30% from Turnkey Discount Rate 900 Net Cash TK, 0.4 8.0
Slide 11: Capital allocation: outlook to 2030
Capital allocation: outlook to 2030 Directional, US$ millions In-hand Net Cash until 2030 1 INCREASED US$1.4 BILLION CASH RETURN COMMITMENT for the period up to 2030 INCREMENTAL RETURN UPSIDE FROM EXISTING BACKLOG 1.7 lower investment requirement anticipated 4.0 ADDITIONAL GROWTH OPPORTUNITIES 1.4 s
Slide 12: Strategic roadmap
Strategic roadmap Short term Medium term Long term Until 2025 Towards 2030 2030 & beyond OCEAN EXCELLENCE IN EXECUTION OF GROWING BACKLOG INFRASTRUCTURE NEW BUSINESS MODELS GROW ECONOMIC VALUE OF TRANSITION NEW OCEAN INFRASTRUCTURE SOLUTIONS GROW BACKLOG 6 FPSO PROJECT EXECUTION CAPACITY GROW ECONOM
Slide 13: Positioned to deliver new ocean infrastructure solutions
Positioned to deliver new ocean infrastructure solutions BUILDING ON DECADES OF EXPERIENCE NEW OCEAN INFRASTRUCTURE SOLUTIONS CARBON CAPTURE MODULE EMISSIONZERO® CARBON CAPTURE LOW EMISSION POWER FLOATING OFFSHORE WIND AMMONIA & HYDROGEN FLOATING OFFSHORE WIND DIGITAL SOLUTIONS © SBM Offshore 2024.
Slide 14: Conclusion
Conclusion KEY MESSAGES 2024 GUIDANCE MATERIALIZING GROWTH UPSIDE DIRECTIONAL EBITDA Around 1.3 billion US$ DIRECTIONAL REVENUE Above 3.8 billion US$ RECORD BACKLOG LEASE & OPERATE Around 2.4 billion US$ ACCELERATED CASH CYCLE TURNKEY Above 1.4 billion US$ INCREASED SHAREHOLDER RETURN INCREASED GUID
Slide 15: Q&A
tH | TRUE. Q.A ie OFFSHORE TRANSITION.
Slide 16: Appendix
APPENDIX _ fusions Dm OFFSHORE
Slide 17: Financial performance per segment
Financial performance per segment Directional, US$ millions Lease and Operate Turnkey Revenue EBITDA Revenue EBITDA 1,178 679 933 662 546 558 HY 2023 HY 2024 HY 2023 HY 2024 HY 2023 HY 2024 -12 -37 HY 2023 HY 2024 “Other” EBITDA HY 2024 US$(47) million vs HY 2023 US$(52) million © SBM Offshore 2024.
Slide 18: c. 25 years of net cash flow visibility from L&O, BOT & Turnkey
c. 25 years of net cash flow visibility from L&O, BOT & Turnkey1 Directional, US$ millions US$33.7 billion pro-forma backlog L&O, BOT and Turnkey net cash translated in EUR/share2 32 23 18 ~US$9.6 billion net 15 13 11 cash from net cash pro-forma backlog Additional US$0.4 billion 900 from Turnkey Ne
Slide 19: Group P&L
Group P&L Directional, US$ millions Group P&L US$ millions HY 2023 HY 2024 Variance Revenue 1,491 1,840 349 Gross Margin 318 414 96 Overheads (111) (119) (8) Other operating income / (expense) (10) 56 66 Net impairment losses on financial and contract assets 1 (6) (7) EBIT 199 345 146 Depreciation,
Slide 20: Turnkey and Lease and Operate P&L
Turnkey and Lease and Operate P&L Directional, US$ millions Turnkey Comments US$ millions HY 2023 HY 2024 Variance Main contributors to 2024 revenue are: FPSO Jaguar, Almirante Revenue 558 662 104 Tamandaré, Alexandre de Gusmão, ONE GUYANA and other Revenue various business including Brownfield proj
Slide 21: 1H 2024 Sources and Uses of Cash and Liquidity
1H 2024 Sources and Uses of Cash and Liquidity Directional, US$ millions L&O 679 Turnkey (12) Other (48) EBITDA 619 Deferred income (21) Cash from Special transaction Special transaction (55) 90 Debt drawdowns Other1 Cash from Operations Sources of cash 543 510 21 5 Uses of cash 259 147 74 150 33 48
Slide 22: Balance Sheet
Balance Sheet Directional, US$ millions Comments US$ millions 31-Dec-2023 30-Jun-2024 Variance Capitalization of FPSO projects partially offset by depreciation over the Property, plant & equipment and Intangibles 8,515 8,808 293 period Mainly discount effect on financial receivables offset by der
Slide 23: Lease qualification and consolidation methods
Lease qualification and consolidation methods as of 30 June 2024, IFRS 10 & 11 Assets Lease Contract Type SBM Share % Directional IFRS FPSO N’Goma FL 60% Proportional Full consolidation FPSO Saxi Batuque FL 100% 100% Full consolidation FPSO Mondo FL 100% 100% Full consolidation FPSO Cidade de Ilhabe
Slide 24: External funding loans and borrowings
External funding loans and borrowings Directional, US$ millions Net book value as of June 30, 2024 Full Amount IFRS Directional FACILITIES DRAWN FPSO Cidade de Anchieta 143 143 143 FPSO Cidade de Ilhabela 696 696 522 FPSO N’Goma 154 154 92 Normand Installer 16 - - FPSO Cidade de Maricá 609 609 372 F
Slide 25: Well-structured debt enables growth
Well-structured debt enables growth Directional, US$ billions Non-Recourse Corporate debt Construction debt Unlevered FPSOs Project debt1 4 8 8 US$0.6bn net debt US$2.5bn debt2 US$4.0bn debt Debt free US$33.7bn backlog US$16.2bn3 US$14.5bn US$3.0bn US$9.6bn net cash4 US$4.3bn US$4.3bn US$1.0bn backl
Slide 26: Group net debt and borrowings
Group net debt and borrowings Directional, US$ millions Net debt Undrawn facilities + cash 7,109 6,500 6,654 849 4,500 2,500 495 500 450 1H 2024 (1,500) FY 2023 1H 2024 Undrawn corporate facilities Net cash Undrawn project debt Net cash Project debt Lease liabilities Average cost of debt1 1H 2024 bo
Slide 27: Revolving Credit Facility Covenants
Revolving Credit Facility Covenants Key financial covenants 1H 2024 Definition1 Solvency ratio > 25%  29% IFRS Tangible net worth divided by total tangible IFRS assets Interest cover ratio > 4.0  6.1 Directional Underlying EBITDA divided by net interest payable Represents maximum theoretical lendi
Slide 28: 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 29: Commercial models explained
Commercial models explained Indicative net cash profiles SALE & OPERATE Accounting Construction Operation 100% SBM ownership IFRS Revenue and margin recognized during Operating revenue and margin recognized over Booked in construction period. time during the operating period. Turnkey No debt financi
Slide 30: Near zero emission FPSO
Near zero emission FPSO Carbon Capture & Combined Cycle All electric compression & Heat integration EMISSION REDUCTION Closed flare ~80% Power generation ~20% Flare DISH or SWIR1 (1) Deepwater intake suction hose or sea water intake riser © SBM Offshore 2024. All rights reserved. www.sbmoffshore.com
Slide 31: Contract portfolio
Contract portfolio 2005 2015 2024 2035 2045 Vessel Name Client Country FPSO Kikeh PTTEP MALAYSIA 08/2007 01/2016 01/2028 01/2031 FPSO Mondo EXXONMOBIL ANGOLA 01/2008 12/2022 12/2025 12/2027 FPSO Saxi Batuque EXXONMOBIL ANGOLA 07/2008 06/2023 06/2025 10/2028 FPSO Espirito Santo SHELL BRAZIL 01/2009 1

SBM Offshore — H1 2024 Earnings Presentation on 6ix

Sbm Offshore Nv — H1 2024 Earnings Presentation

Slide 1: Half Year Earnings 2024

Slide 2: Disclaimer

Slide 3: Half Year 2024 Highlights

Slide 4: Addressing the supply gap

Slide 5: Strong FPSO market outlook

Slide 6: Full FPSO lifecycle: Our unique value proposition

Slide 7: Execution & Operational excellence

Slide 8: Financial highlights

Slide 9: Commercial models

Slide 10: Growing cash from backlog

Slide 11: Capital allocation: outlook to 2030

Slide 12: Strategic roadmap

Slide 13: Positioned to deliver new ocean infrastructure solutions

Slide 14: Conclusion

Slide 15: Q&A

Slide 16: Appendix

Slide 17: Financial performance per segment

Slide 18: c. 25 years of net cash flow visibility from L&O, BOT & Turnkey

Slide 19: Group P&L

Slide 20: Turnkey and Lease and Operate P&L

Slide 21: 1H 2024 Sources and Uses of Cash and Liquidity

Slide 22: Balance Sheet

Slide 23: Lease qualification and consolidation methods

Slide 24: External funding loans and borrowings

Slide 25: Well-structured debt enables growth

Slide 26: Group net debt and borrowings

Slide 27: Revolving Credit Facility Covenants

Slide 28: Turnkey Model

Slide 29: Commercial models explained

Slide 30: Near zero emission FPSO

Slide 31: Contract portfolio

Slide 32: © SBM Offshore 2024. All rights reserved. www.sbmoffshore.com