Prosafe SE

Investor Presentation • Sep 14, 2016

Pareto Securities' 23rd annual Oil & Offshore Conference

Stig H. Christiansen, Acting CEO

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 and any reference source 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.

Prosafe in brief

• Financial restructuring
• Reorganization and efficiencies
• Fleet and contracts
• Market update – current
• Strategy & Market outlook
• Summary

Prosafe in brief

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3

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World's most diversified fleet of (10) semi-submersible accommodation-, service- and safety rigs

• Long operational track-record from global operations
• Entered the drilling support niche with TSV Scandinavia
• Upgraded and renewed fleet
• 5

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Revitalizing competitive position via financial restructuring, reorganization, fleet restructure and efficiency measures

Ambition to develop its market position and take the lead also in future restructuring

• Prosafe in brief
• Financial restructuring
• Reorganization and efficiencies
• Fleet and contracts
• Market update – current
• Strategy & Market outlook
• Summary

Pro-forma B/S per Q2 post financial restructuring

	Re d te p or		A d j d te us
( Un d i d f ig in U S D i l l ion ) te au ur es m	3 0. 0 6. 1 6	A d j.	3 0. 0 6. 1 6
Go dw i l l o	2 2 6, 7		2 2 6, 7
Ve ls ss e	1 5 5 9, 0		1 5 5 9, 0
Ne bu i l ds w	6 5 4, 9		6 5 4, 9
O he t t a ts r n on -c ur re n ss e	4, 3		4, 3
To l n ta t a ts on -c ur re n ss e	2 4 4 4, 9	0, 0	2 4 4 4, 9
Ca h d de i ts s an p os	6 8, 2	1 0 5, 3	1 7 3, 5
O he t t a ts r c ur re n ss e	8 6, 6		8 6, 6
To l c ta t a ts ur re n ss e	1 5 4, 8	1 0 5, 3	2 6 0, 1
To l a ta ts ss e	2 5 9 9, 7	1 0 5, 3	2 0 5, 0 7
S ha i l ta re c ap	7 2, 1	( ) 6 4, 1	8, 0
O he i t ty r e q u	6 0 6, 4	4 5 5, 1	1 0 6 1, 5
To l e i ta ty q u	6 7 8, 5	3 9 1, 0	1 0 6 9, 5
In fre lon l ia b i l i ies te t- te t re s e g- rm	9 8, 4		9 8, 4
In be ing lon de b te t- te t re s ar g- rm	1 5 2 0, 7	( ) 1 3 7, 7	1 3 8 3, 0
ia i i ie To l lo l b l ta -te t ng rm s	1 6 1 9, 1	( ) 1 3 7, 7	1 4 8 1, 4
O fre he in l ia b i l i ies t te t- t t r re s e cu rre n	1 0 6, 1		1 0 6, 1
Cu ion f lon de b t p t te t rre n or o g- rm	1 9 6, 0	( ) 1 4 8, 0	4 8, 0
To l c l ia b i l i ie ta t t ur re n s	3 0 2, 1	( ) 1 4 8, 0	5 1 4, 1
i ia i i ie To l e d l b l ta ty t q a n s u	2 5 9 9, 7	1 0 5, 3	2 7 0 5, 0

• • Still leveraged, however
• • Net debt down 24% from USD 1650 to USD 1250
• • Book equity from 26% to 40%
• •And in essence…

…A billion dollar runway secured through 2020

• Improved cash flow 2017-2020 of more than USD 1 billion from
• • Reduction of debt/new build investment USD 530 million
  • •USD 290 mill bonds converted
  • •USD 105 mill in equity proceeds
  • •USD 135 mill in reduced Eurus commitment
• •Reduction of amortisation of USD 470 million

• • Interest saving from swap restructuring of approx. USD 23m

• Prosafe in brief

• Financial restructuring
• Reorganization and efficiencies
• Fleet and contracts
• Market update - current
• Strategy & Market outlook
• Summary

Reorganization and efficiency summary

• Reorganization in to a lean, operationally focused organization
• Target of USD 30-40 million per annum in cost cuts / efficiencies
• Reorganization provisions in Q316
• Full effects from cost and spend cuts from Q1 2017 onward

	2 0 1 1- 2 0 1 5 l a n n u a l l a v e r a g e e v e s	R i d l l t t e v s e a r g e e v e s	T i 2 0 1 t 7 a r g e s a v n g s
1 ) f f O h s o r e o p e x	S U D 1 8 0 m	S U D 1 4 0 1 5 0 m –	S ( ) U D 3 0- 4 0 2 0 % m
O h n s o r e o p e x	S U D 4 0 m	S U D 2 8 m	S ( ) U D 1 2 3 0 % m
) 2 A l f l t n n u a e e c a p e x	S U D 6 0 m	S U D 2 0 3 0 m -	S ( ) U D 3 0- 4 0 4 0 % m
H d d i ( i % ) t t e a c o u n r e u c o n n		3 5- 4 0 t p e r c e n

• 1) Will to some extent be affected by activity level

• 2) Excluding new-builds and conversions

• Prosafe in brief

• Financial restructuring
• Reorganization and efficiencies
• Fleet and contracts
• Market update – current
• Strategy & Market outlook
• Summary

Contract coverage– USD 1267* mill. backlog per Q216

*) Incl. Options. Ca. 55% firm

Tender support operationfor Statoil at Oseberg Øst

• Safe Scandinavia is supporting drilling operations on the field by providing mud pumping, mud mixing and storage, cuttings and slop handling and extra offices and accommodation
• The drilling campaign, which could not have been done without a support vessel like Safe Scandinavia, is an important measure towards increasing recovery ratesand extending the lifetime of Oseberg Øst
• Statoil is expecting to increase the recovery rate from around 20% to up to 30% with the first planned wells1)
• Statoil has the possibility of drilling more wells and further increasing the recovery rate towards 40%, which is almost double the rate in the plan for development and operation1)
• Firm contract until July 2018 with four one-year options

1) More oil from Oseberg Øst with new drilling campaign, http://www.statoil.com/en/NewsAndMedia/News/2014/Pages/2Jul_MoreOilOsebergEast.aspx

• Prosafe in brief
• Financial restructuring
• Reorganization and efficiencies
• Fleet and contracts
• Market update – current
• Strategy & Market outlook
• Summary

Market update– current

Dayrateaverages and indications

- Bottoming out with market softness – with recovery from 2018 onwards…

• North Sea recent awards indicate ^a dayrate reduction through ²⁰¹⁶ and ²⁰¹⁷ of up to asmuch as ca. 50%
• Other regions less affected with an average reduction of ca. 20-25%
• Recovery indicators from ²⁰¹⁸ onwards
• Leading broker present dayrate indications;

North Sea older Non DP Semi-Submersible\$80,000 - \$140,000 pdpr

North Sea DP Semi-Submersible\$140,000 - \$200,000 pdpr

Global DP Semi-Submersible\$70,000 - \$140,000 pdpr

Note on Dayrates: They are just an indication as dayrates will fluctuate depending on the prevailing conditions and specific requirements.

Source: Clarksons Platou Offshore Limited: Offshore Accommodation Quarterly Q2 2016

• Prosafe in brief
• Financial restructuring
• Reorganization and efficiencies
• Fleet and contracts
• Market update – current
• Strategy & Market outlook
• Summary

Accommodation market normalizing

Return to brownfield / MMO as main demand driver – driving activity recovery from 2018

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Historical demand / projects by region

• Maintenance and Modification ('Brownfield') driving 79% of historical demand with 72%demand in North Sea;
• Average brownfield contract duration* of 7.3months, average greenfield contract duration* of 7.8 months.
• Mexico and Brazil tend to be more longterm due to a.o. client concentration
• Mexico anticipated to return in the future
• Australia and Asia potentially offering futureopportunities
• *Excluding Mexico, West Africa & Brasil

North Sea remain key market with additional growth in other regions hence

Accumulating demand supporting eventual strong recovery

• Several hundred producing fields in the North Sea
• Increasing share of platforms older than ²⁰ years, triggering strong demand for maintenance work
• History shows that fields tend to be extended well beyond their initial design life due to a.o. enhanced oil recovery focus
• Platforms increasing lifetime beyond design life driving need for substantial modification work. Suggested that maintenance projects are now deferred by well over two years andthe need is accumulating
• Strong backlog of tieback projects triggering need for modification work at host platforms
• Presentation by Rystad Energy at ONS: "Communicated PDOs are already making the years towards ²⁰²⁰ lookpromising for the field development market"

Regionalization: Global fleet and locations

Regionalization reducing competitive intensiveness

Global Fleet Placement

Semi accommodation market expected to rebalance by 2020

Scrapping and non-delivery likely to positively impact market balance

Prosafe has scrapped ³ vessels and* converted Safe Scandinavia to TSV

…And Prosafe's ambition is to continue to take the lead…

• Prosafe in brief
• Financial restructuring
• Reorganization and efficiencies
• Fleet and contracts
• Market update – current
• Strategy & Market outlook

Summary

Summary

• Secured runway through 2020 after comprehensive refinancing
• •A billion dollar runway
• Re-organised and cost efficient
• Substantial cost and capex cuts
• Uncertain near term market outlook, however
• • Positive long term outlook from accumulating demand and anticipated improved market balance
• Ambition to take lead also in future restructuring