Subsea 7 S.a. · OSL:SUBC
Subsea 7 — Investor Presentation (March 2012)
39 slides from Subsea 7's investor presentation, March 2012
Slide 1: Investor Presentation
Investor Presentation March 2012
Slide 2: Investor Relations Contacts
Investor Relations Contacts Karen Menzel karen.menzel@subsea7.com T: +44 (0) 208 210 5568 M: +44 (0) 7766 702481 www.subsea7.com Certain statements made in this announcement may include “forward-looking statements”. These statements may be identified by the use of words like “anticipate,” “believe,”
Slide 3: We are focused on delivering value to shareholders
We are focused on delivering value to shareholders March 2012 Page 3
Slide 4: Well positioned to capture opportunities
Well positioned to capture opportunities March 2012 Page 4
Slide 5: Subsea 7 - a leading strategic partner in seabed-to-surface engineering, construction and services
Subsea 7 - a leading strategic partner in seabed-to-surface engineering, construction and services SURF Conventional • Global footprint • West Africa focus • Growing market • Strong market • Experts p in design, g , engineering, g g, • Local expertise p fabrication, installation and • Proven executi
Slide 6: Our global resources are deployed in all major offshore locations
Our global resources are deployed in all major offshore locations North Sea, Mediterranean & Canada (NSMC) supports a diverse range of projects in the UK, Norwegian, Danish, Dutch and Russian sectors of the North Sea, Norwegian Sea and Barents Sea. It also covers operations in the Mediterranean and
Slide 7: Our specialist expertise is focused on seabed-to-surface operations
Our specialist expertise is focused on seabed-to-surface operations March 2012 Page 7
Slide 8: Deepwater and challenging environments: a growing global market
Deepwater and challenging environments: a growing global market • Successful exploration campaigns / large reserves: – Demand fundamentals are good – Deepwater represents significant and growing proportion of hydrocarbon reserves – Access to deepwater reserves continuing priority for IOCs – Financia
Slide 9: Today’s industry challenges … are Subsea 7’s opportunities
Today’s industry challenges … are Subsea 7’s opportunities Deeper waters and more Proven expertise and challenging environments execution track record Growing size and complexity Large engineering & project of large EPIC contracts management capabilities Fleet size & flexibility Shortage of resource
Slide 10: Well positioned to capture further profitable opportunities
Well positioned to capture further profitable opportunities North Sea • High levels of tendering driving strong order flow • Higher activity with improved pricing for projects expected to be offshore in 2012+ Gulf of Mexico • Increased activity for subsea projects • Expect contract awards late 2012
Slide 11: Fleet enhancement programme: Significant progress during 2011
Fleet enhancement programme: Significant progress during 2011 • Investment focused on core assets, with high technical specifications • Focused on achieving the optimal deployment of the optimal fleet • Over 40 vessels - continue to enhance our fleet to drive profitable growth SURF Conventional Life
Slide 12: Strengthened further our local presence
Strengthened further our local presence • Cultural diversification and tailored local content: • We W are committed itt d to t developing d l i the th local l l capabilities biliti off the th countries t i in which we work • We have a diverse international workforce with more than 70 nationalities d
Slide 13: Rich portfolio of technology
Rich portfolio of technology • We offer a rich portfolio of technology capabilities, innovative design and engineering g g solutions to our clients – Including: - Riser technologies - Bundle technology - High performance Pipe-in-Pipe - Mechanical Lined Pipe - Welding - Autonomous Inspection Vehicle
Slide 14: Appendices
Appendices Financial Highlights March 2011 Page 14
Slide 15: Subsea 7 S.A. five year performance history
Subsea 7 S.A. five year performance history Continuing operations Total operations Subsea 7 S.A. (formerly Acergy S.A.) Subsea 7 Inc * Reflects Subsea 7 S.A. (formerly Acergy S.A.) for / as at fiscal year 2010 and Subsea 7 Inc. for / as at fiscal year end 2010 March 2012 Page 15
Slide 16: 2011: a year of many successes
2011: a year of many successes • Delivered strong results in line with expectations • Prepared for the future – well positioned for profitable growth • Combination successfully completed: - Integration ahead of plan - On track to achieve at least the targeted synergies • Broadened and deepened engin
Slide 17: Brazil: Guara Lula NE Project
Brazil: Guara Lula NE Project • Q4 2011 recognised loss of c.$50 million; which represents total loss over the lifetime of project, including additional contingencies • Acceptance of design and engineering testing progressing to plan with full client approval • Project results affected by: - Final e
Slide 18: Income statement highlights
Income statement highlights Three Thirteen Months Months Ended Ended In $ millions, except Adjusted EBITDA margin, share and per share data Dec.31.11 Dec.31.11 Unaudited Audited Revenue from continuing operations 1,417 5,477 Net operating income from continuing operations 137 641 Income before taxes
Slide 19: Operational performance – Q4 2011
Operational performance – Q4 2011 $586m $308m $308 m $97m ($8m) Revenue ($8m) NOI Revenue NOI Revenue NOI $605m $38m ($7m) $308 m $186m Revenue NOI $112m ($11m) ($8m) Revenue NOI Revenue NOI Revenue NOI March 2012 Page 19
Slide 20: Cash flow and balance sheet overview – FY 2011
Cash flow and balance sheet overview – FY 2011 • Cash generation from operating activities of $579 million • Net cashflows used in investing activities of $125 million reflects: • Capex of $672 million in line with expectations: Seven Borealis; Antares, Seven Havila and dry-docks • $459 million cash
Slide 21: Financial assumptions - 2012
Financial assumptions - 2012 • Expect to deliver revenue and Adjusted EBITDA for twelve months of 2012 ahead of thirteen month period ended December 31, 2011 • Joint Venture contribution – 2012 lower than 2011 • Administrative expenses: c.$85 million per quarter • Final integration costs: c.$30 mill
Slide 22: Market overview
Market overview • Continue to see growth opportunities in all major markets, albeit at differing paces: – North Sea: high levels of tendering driving strong order flow; higher activity with improved pricing for projects expected to be offshore in 2012+ – West Africa: a transition year, with large pr
Slide 23: Summary
Summary • 2011: a year of many successes • Delivered strong results in line with expectations and good order flow resulting in backlog of $8.5 billion • Robust oil price and strong tendering activity underpins good order book momentum • Continue to see opportunities in all markets; albeit at differi
Slide 24: Major project progression
Major project progression Continuing projects >$100m between 5% and 95% complete as at December 31, 2011 excl. long-term ship charters and Life-of-Field day-rate contracts. Block 18 GEL (Angola) Oso Re (Nigeria) EGP3B (Nigeria) Block 31 (Angola) CLOV (Angola) Gumusut (Malaysia) P55 Export (Brazil) G
Slide 25: Backlog
Backlog In $ millions as at: Dec.31.11 Sep.30.11 p Dec.31.10 Nov.30.10 (1) Subsea 7 S.A. 8,538 7,903 - - Acergy S.A. - - - 3,552 Subsea 7 Inc. - - 2,800 , - (1) Backlog refers to expected future revenue under signed contracts, which are determined as likely to be performed, but excludes amounts rela
Slide 26: Segmental analysis:
Segmental analysis: Three months Th th ended d d T t l– Total Dec.31.11 NSMC AFGoM APME Brazil CORP Continuing Unaudited operations In $ millions Revenue 586.1 605.1 38.0 186.2 2.0 1,417.4 Net operating 97.4 112.0 (7.0) (11.3) (54.4) 136.7 income/(loss) Investment income 6.0 Other losses (8.7) Finan
Slide 27: Segmental analysis:
Segmental analysis: Thirteen Thi teen months ended Total – Dec.31.11 NSMC AFGoM APME Brazil CORP Continuing Unaudited operations In $ millions Revenue 2,054.4 2,542.9 180.7 686.3 12.2 5,476.5 Net operating 179.0 490.3 18.2 22.5 (69.5) ( ) 640.5 income/(loss) Investment income 20.0 Other gains 6.9 Fi
Slide 28: Adjusted EBITDA
Adjusted EBITDA • The Group calculates adjusted earnings before interest, income taxation, depreciation and amortisation (‘Adjusted EBITDA’) from continuing operations as net income from continuing operations plus finance costs, other gains and losses, taxation, depreciation and amortisation and adj
Slide 29: Reconciliation of net operating income to Adjusted EBITDA
Reconciliation of net operating income to Adjusted EBITDA Three Months Ended Three Months Ended Dec.31.11 Nov.30.10 Total Total In $ millions (except percentages) Continuing Discontinued Continuing Discontinued operations operations Net operating income 136.7 - 136.7 152.9 38.9 191.8 Depreciation an
Slide 30: Reconciliation of net income to Adjusted EBITDA
Reconciliation of net income to Adjusted EBITDA Three Months Ended Three Months Ended Dec.31.11 Nov.30.10 Total Total In $ millions (except percentages) Continuing Discontinued Continuing Discontinued operations operations Net income 106.7 - 106.7 94.1 29.6 123.7 Depreciation and amortisation 86.3 -
Slide 31: Appendices
One of the world’s most versatile fleets of 40 vessels Extensive infrastructure of Appendices pipeline spoolbases, fabrication and operations support yards A fleet of over 150 ROVs March 2011 Page 31
Slide 32: Rigid pipelay/heavy lift assets
Rigid pipelay/heavy lift assets March 2012 Page 32
Slide 33: Construction/vertical flexlay assets
Construction/vertical flexlay assets March 2012 Page 33
Slide 34: Construction/flexlay (horizontal) assets Jack-up Vessel
Construction/flexlay (horizontal) assets Jack-up Vessel* *Seven Inagha g is a Jack-Up p Accommodation & Crane Barge g for fixed platform conventional activities offshore Nigeria March 2012 Page 34
Slide 35: LCV/LOF
subsea LCV/LOF Seven Viking Havila Subsea
Slide 36: Diving assets
Diving assets March 2012 Page 36
Slide 37: Our ROV fleet
Our ROV* fleet Work Class ROVs Observation Class ROVs *including i-Tech ROVs, a division of Subsea 7 March 2012 Page 37
Slide 38: Our operational facilities
Our operational facilities Spoolbases Fabrication Yards March 2012 Page 38
Slide 39: seabed-to-surface
seabed-to-surface b 7 www.subsea7.com 10.01.11 Page 39