Prosafe SE

Earnings Release • Aug 19, 2021

19 August 2021

Q2 2021 results and business update

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. Certain such forward-looking statements can be identified by the use of forward-looking terminology such as "believe", "may", "will", "should", "would be", "expect" or "anticipate" or similar expressions, or the negative thereof, or other variations thereof, or comparable terminology, or by discussions of strategy, plans or intentions. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this presentation as anticipated, believed or expected. Prosafe does not intend, and does not assume any obligation to update any industry information or forward-looking statements set forth in this presentation to reflect subsequent events or circumstances.

• Update on the financial restructuring process
• Highlights
• Financial results
• Commercial update & Summary

Update on financial restructuring process

• The financial process is on track with formal support from a clear majority of the lenders.
• As announced on 2 August 2021, the Singapore Court granted the Convening Applications from Prosafe in full. The Company therefore assumes that the solution will be implemented as earlier announced through the Singapore Scheme of Arrangements.
• An Extraordinary General Meeting to approve the financial restructuring solution will take place in late September 2021 and closing of the transaction is anticipated to occur before or around year-end 2021.
• As announced on 4 June 2021, the terms of the Transaction will result in a significant de-leveraging of the balance sheet with ca. 75% debt reduction, corresponding reduction in annual debt service and a more robust financial position.
• Gross bank debt will be USD 343 million* after restructuring. Existing banks/creditors will own 99% of the equity and current shareholders and convertible bond holders will own 1% of the equity.

^* Excl. Safe Eurus which is financed from the yard

• Update on financial restructuring process
• Highlights
• Financial results
• Commercial update & Summary

Highlights – Q2 2021

• Operating status and financial results:
• Utilisation of 65.8% in Q2 (6.5%)
• Reported EBITDA of USD 18.1 million (USD 10.1 million negative)
• Cash flow from operations was USD 21.9 million negative (USD 5.5 million negative). Higher negative cash flow from operations in the period was mainly due to increase in debtors, which was driven by higher vessel activities
• Liquidity reserve of approximately USD 120 million (USD 177.5 million)
• Operations and commercial:
• 5 of 7 vessels were on contract in the quarter
• Further options for Safe Boreas and Safe Zephyrus were exercised

• Ongoing bids in Brazil and the North Sea

• Update on the financial restructuring process

• Highlights
• Financial results
• Commercial update & Summary

Income statement

	Q2
(Unaudited figures in USD million)	2021	2020
Operating revenues	50	5
Operating expenses	(32)	(15)
Operating results before depreciation	18	(10)
Depreciation	(9)	(11)
Impairment	(1)	0
Operating (loss) profit	8	(21)
Interest income	1	0
Interest expenses	(14)	(15)
Other financial items	(6)	(5)
Net financial items	(19)	(20)
(Loss) Profit before taxes	(11)	(41)
Taxes	(0)	(1)
Net (Loss) Profit	(11)	(42)
EPS	(0.13)	(0.48)
Diluted EPS	(0.13)	(0.48)

• Fleet utilisation of 65.8% (Q2 2021: 6.5%)
• Higher operating revenues mainly due to high activity level and high utilisation for the quarter
• Reported EBITDA was USD 18 million (USD 10 million negative). The increase in EBITDA was mainly driven by high vessel activities
• Operating expenses were higher mainly due to higher fleet utilisation, as well as preparation and mobilisation costs to get vessels ready for contracts commencement. Some additional costs incurred due to Covid-19 measures

Balance sheet

(Unaudited figures in USD million)	30.06.21	30.06.20
Vessels	407	426
New builds	0	1
Other non-current assets	3	3
Total non-current assets	410	431
Cash and deposits	120	178
Other current assets	50	7
Total current assets	170	184
Total assets	579	615
Share capital	9	9
Other equity	(1,058)	(908)
Total equity	(1,049)	(899)
Interest-free long-term liabilities	2	16
Interest-bearing long-term debt	81	79
Total long-term liabilities	83	95
Other interest-free current liabilities	84	26
Current portion of long-term debt	1,462	1,393
Total current liabilities	1,546	1,419
Total equity and liabilities	579	615
Key figures:
Working capital	(1,376)	(1,235)
Liquidity reserve	120	178
Interest-bearing debt	1,542	1,473
Net Interest-bearing debt	1,422	1,295
Book equity ratio	(181.1)%	(146.3)%

• Total assets of USD 579 million
• Liquidity reserve per Q2 2021 approx. USD 120 million
• The increase in other current assets was mainly due to increase in receivables, which were driven by improved fleet utilisation
• The increase in interest-free current liabilities was mainly due to the provision provided for Westcon's claims, approximately USD 55 million as of Q2 2021
• Interest-bearing debt increased mainly due to accumulated interest expenses and termination of swaps

• Book equity was USD 1,049 million negative per Q2 2021

• Update on the financial restructuring process

• Highlights
• Financial results
• Commercial update & Summary

Fleet status: Contracts, wins and extensions

Safe Boreas		Buzzard Phase Two		Euzzai Buzzai Buzzai			Ekofisk	Ekofisi Ekofisi
Safe Caledonia		Elgin Franklin		Ek Ek
Safe Concordia				Trinidad	Trinida
Safe Eurus	Petrobras								Petrobra
Safe Notos	Petrobras
Safe Scandinavia
Safe Zephyrus		Shean Shearwater		$ \cdot $ She
Safe Nova
Safe Vega
	Jan	Apr	Jul		Oct	Jan	Apr	Jul	Oct
	2021					2022

Safe Vega and Safe Nova – newbuilds at yard

Contract backlog Contracting update

• Safe Concordia: commenced a 117-day contract in Trinidad on 25 July 2021
• Safe Notos: on contract with Petrobras through to mid-November 2021
• Safe Eurus: on contract with Petrobras
• Safe Boreas or Safe Zephyrus: 90-day contract with an option of up to 60 days and start-up in Q2 2022 on the Norwegian Continental Shelf
• Safe Zephyrus: commenced an initial 145 day contract with Shell in late February, which was extended by an additional 16 days
• Safe Boreas: commenced contract with CNOOC on 20 April 2021. After two of the three 30-day options were exercised, the contract now has a firm duration of 160 days
• Safe Caledonia: commenced a 162-day contract with Total in late March 2021 with the first of two 15-day options exercised

Order backlog per Q2 2021 (USD million)

Summary

• The financial restructuring process is on track with closing anticipated before or around year-end 2021
• Operating status and financial results:
• Utilisation of 65.8% in Q2 (6.5%)
• Reported EBITDA of USD 18.1 million (USD 10.1 million negative)
• Cash flow from operations was USD 21.9 million negative (USD 5.5 million negative). Higher negative cash flow from operations in the period was mainly due to increase in debtors, which was driven by higher vessel activities
• Liquidity reserve of approximately USD 120 million (USD 177.5 million)
• Operations and commercial:
• 5 of 7 vessels were on contract in the quarter
• Further options for Safe Boreas and Safe Zephyrus were exercised
• Ongoing bids in Brazil and the North Sea indicating potentially a high activity level also in 2022
• Initiatives in process to strengthen ESG profile
• Consolidation remains on the agenda

Appendix

Development of operating results

This quarter had the best operating result of the last five quarters

Liquidity reserve & Net interest-bearing debt

Operating revenue

(USD million)	Q2 21	Q2 20	Q1 21	2020
Charter income	43.2	4.4	15.1	53.0
Other income	6.7	0.1	0.9	3.7
Total	49.9	4.5	16.0	56.7