Subsea 7 S.a. · OSL:SUBC

Subsea 7 — FY2022 Earnings Presentation

27 slides from Subsea 7's earnings presentation, Mar 2, 2023

Slide 1: Fourth Quarter and Full Year 2022 Earnings Presentation
Fourth Quarter and Full Year 2022 Earnings Presentation 2 March 2023 1 © Subsea7 - 2023 subsea7.com
Slide 2: Forward-looking statements
Forward-looking statements This document may contain ‘forward-looking statements’ (within the meaning of the safe harbour provisions of the U.S. Private Securities Litigation Reform Act of 1995). These statements relate to our current expectations, beliefs, intentions, assumptions or strategies rega
Slide 3: 2022 – accelerated pace of recovery
2022 – accelerated pace of recovery • Highest order intake since 2013 at over $7 billion – Backlog of over $9 billion – High revenue visibility on 2023 and 2024 • Pricing power has returned to the sector – Confidence in the outlook underpinned by recent awards and current tendering – Adjusted EBITDA
Slide 4: Major projects – making good progress
Major projects – making good progress • Sakarya 89% complete – Nearing completion, first gas imminent • Sangomar 72% complete – Seven Vega and Seven Sisters active • Bacalhau 55% complete Sakarya, Türkiye Sangomar, Senegal – Seven Pacific commenced offshore operations • Mero 3 24% complete – Good pr
Slide 5: Backlog – strong growth
Backlog – strong growth Backlog at 31 December 2022 by year of execution Q4 2025+ • Order intake $3.0 billion 2025+ $0.1bn $1.8bn • Book-to-bill 2.3x 2023 2023 $3.8bn $0.3bn 2022 2024 2024 $0.4bn • Order intake $7.1 billion $2.6bn • Book-to-bill 1.4x • Backlog $9.0 billion Subsea and Conventional Re
Slide 6: Recovering market – highest order intake since 2013
Recovering market – highest order intake since 2013 14 1.6 12 1.4 1.2 10 1.0 8 0.8 6 0.6 4 0.4 2 0.2 0 0.0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Order intake ($bn) Backlog ($bn) Book-to-bill (RHA) 6 © Subsea7 - 2023 subsea7.com
Slide 7: Recovering market – enhanced revenue visibility
Recovering market – enhanced revenue visibility 5.0 4.5 • Group backlog $9.0 billion 4.0 3.5 • Solid revenue visibility for Year 1 (2023), in line with 3.0 prior years 2.5 2.0 • Backlog for Year 2 (2024) +49% year-on-year 1.5 1.0 • Backlog for Year 3 (2025) 0.5 nearly doubled year-on-year 0.0 For ex
Slide 8: Recovering market – Adjusted EBITDA margin expansion
Recovering market – Adjusted EBITDA margin expansion 8 35% 7 30% • Strong improvement in 6 awarded project margins in 25% H2 2022 5 20% • Executing lower margin 4 contracts in 2023 15% 3 • Adjusted EBITDA margins 10% returning to through-cycle 2 levels of 15-20% 1 5% • Dependent on solid 0 0% execut
Slide 9: Full year 2022 – Group
Full year 2022 – Group Order intake Backlog • Order intake +25% to $7.1 billion – New awards $5.3 billion $7.1bn $9.0bn $6.1bn $7.2bn – Escalations $1.8 billion • Backlog +25% to $9.0 billion FY 2021 FY 2022 FY 2021 FY 2022 • Revenue +3% to $5.1 billion Revenue Adjusted EBITDA 600 0.25 • Adjusted EB
Slide 10: Full year 2022 – Subsea and Conventional
Full year 2022 – Subsea and Conventional Order intake Backlog • Backlog +37% to $8.1 billion – New awards: $5.5bn $6.2bn $8.1bn Yggdrasil, Búzios 8, Skarv, Cypre, $6.0bn Shenandoah, Fenris, Clov 3, Guyana Gas-to-Power FY 2021 FY 2022 FY 2021 FY 2022 • Revenue +6% to $3.9 billion Revenue Adjusted EBI
Slide 11: Full year 2022 – Renewables
Full year 2022 – Renewables Order intake Backlog • Backlog down 32% – Excludes >$1 billion pre-backlog: $0.8bn $1.2bn $0.8bn East Anglia THREE, Seagreen 1A, $0.5bn Hai Long FY 2021 FY 2022 FY 2021 FY 2022 • Revenue down 11% Revenue Adjusted EBITDA – Seagreen neared completion 20 0.25 18 16 0.2 • Adj
Slide 12: 2015 - 2022 costs overview
2015 - 2022 costs overview Managing costs in an inflationary environment 5.0 5.1 Direct project costs: $ billion including procurement of materials and project 3.9 3.9 related short-term lease 3.5 3.5 expense 3.4 2.9 3.0 Depreciation and 1.5 2.8 amortisation(1): excludes 2.0 1.6 1.9 non-recurring im
Slide 13: Full year 2022 – strong cash flow
Full year 2022 – strong cash flow $m • Cash conversion 1.1x 646 • Free cash flow $255 million • Net cash $33 million Including lease liabilities of $257 million Cash Adjusted Working Tax Capex Financing Other Cash 1 Jan EBITDA capital 31 Dec Operating $486m Investing $(220)m Financing $(221)m Net de
Slide 14: Group financial guidance for 2023
Group financial guidance for 2023 2022 2023 Revenue $5.1 billion Higher than 2022 Administrative expense $245 million $255 – 275 million Adjusted EBITDA $559 million Higher than 2022 D&A $468 million $530 – 550 million Excluding impairment reversals in 2022 Net operating income $149 million In line
Slide 15: Strategic progress in 2022 - communicating our strategy
Strategic progress in 2022 - communicating our strategy How we Our Strategy make possible We create sustainable Lower carbon oil & gas continuous evolution These are the key areas value by delivering that differentiate • Subsea and Conventional the offshore energy Subsea7: transition solutions • Lif
Slide 16: Strategic progress
Strategic progress Subsea • Agreement to invest in the joint venture between SLB and Aker Solutions – Cementing the relationship with our partner in Subsea Integration Alliance – Generating an attractive standalone return • Delivering the benefits of the Aker BP Subsea Alliance with $1.8 billion awa
Slide 17: Strategic progress in 2022 - Sustainability
Strategic progress in 2022 - Sustainability • Strong safety performance – LTIF1 0.01 • Continued progress towards our target to achieve Net Zero by 2050 – Successful trial of clean fuels with Seven Oceanic – Committed to a second vessel hybridisation for Seven Arctic, our largest construction vessel
Slide 18: Increasing our ownership of Seaway7
Increasing our ownership of Seaway7 • Agreement to acquire 187.9 million shares (21.52%) in Seaway7 from: – Songa Capital AS – West Coast Invest AS – Lotus Marine AS • Exchange ratio 1 Subsea7 share for 22 Seaway7 shares • Following the transaction Subsea7 owns 93.94% of Seaway7 • Voluntary offer to
Slide 19: Outlook - subsea prospects
Outlook - subsea prospects Europe Apache Solar/Corona Equinor Rosebank North America Total Quad 9 Equinor Bay du Nord (i) NEP CCS Shell Sparta Aker BP Tie-back projects BP Tie-back projects Chevron Aphrodite Türkiye Chevron Tie-back projects TPAO Sakarya 2 (i) Woodside Trion Saudi Arabia Aramco LTA
Slide 20: Outlook – offshore wind prospects
Outlook – offshore wind prospects UK Iberdrola East Anglia THREE (LOE) SSE Seagreen 1A (PS) Red Rock Inchcape Vattenfall Vanguard & Boreas Ørsted Hornsea 3 USA Europe Asia Shell Mayflower Iberdrola Windanker Atlantic Shores Equinor Baltyk II Northland Hai Long (FID) Avangrid New England Wind Baltyk
Slide 21: Stage set for a multi-year upcycle
Stage set for a multi-year upcycle • Subsea strategy delivering – Leveraging strong partnerships – Subsea Integration Alliance relationship will be cemented and extended – AkerBP Subsea Alliance delivering high order intake – Leveraging a market-leading fleet to drive revenue visibility and margin e
Slide 24: Appendix
Appendix • Major project progression • Income statement • Supplementary financials • Fleet overview 24 © Subsea7 - 2023 subsea7.com
Slide 25: Major project progression
Major project progression • Continuing projects >$100m between 5% and 95% complete as at 31 December 2022 excluding PLSV and Life of Field day-rate contracts Hollandse Kust (Netherlands) Sakarya (Turkey) Yunlin (Taiwan) Announced Sonamet (SLGC) (Angola) size of project TOPR (Trinidad and Tobago) San
Slide 26: Fleet – vessels in the active fleet at the end Q4 2022
Fleet – 36 vessels in the active fleet at the end Q4 2022 Renewables and transportation vessels are operated by Seaway7 ASA Seaway Alfa Lift and Seaway Ventus are under construction and therefore excluded from the active fleet total. Maersk Connector and Seaway Swan are on long-term charter from thi

Subsea7 — FY2022 Earnings Presentation on 6ix

Subsea 7 — FY2022 Earnings Presentation

Slide 1: Fourth Quarter and Full Year 2022 Earnings Presentation

Slide 2: Forward-looking statements

Slide 3: 2022 – accelerated pace of recovery

Slide 4: Major projects – making good progress

Slide 5: Backlog – strong growth

Slide 6: Recovering market – highest order intake since 2013

Slide 7: Recovering market – enhanced revenue visibility

Slide 8: Recovering market – Adjusted EBITDA margin expansion

Slide 9: Full year 2022 – Group

Slide 10: Full year 2022 – Subsea and Conventional

Slide 11: Full year 2022 – Renewables

Slide 12: 2015 - 2022 costs overview

Slide 13: Full year 2022 – strong cash flow

Slide 14: Group financial guidance for 2023

Slide 15: Strategic progress in 2022 - communicating our strategy

Slide 16: Strategic progress

Slide 17: Strategic progress in 2022 - Sustainability

Slide 18: Increasing our ownership of Seaway7

Slide 19: Outlook - subsea prospects

Slide 20: Outlook – offshore wind prospects

Slide 21: Stage set for a multi-year upcycle

Slide 22: Our world

Slide 23: Q&A

Slide 24: Appendix

Slide 25: Major project progression

Slide 26: Fleet – vessels in the active fleet at the end Q4 2022

Slide 27: © Subsea7 - 2023 subsea7.com