Prosafe SE

Investor Presentation • Jan 8, 2016

SEB Nordic Seminar 2016

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 forwardlooking 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.

Agenda

Introduction

• Status & outlook in brief
• -Industry & company
• Summary
• Appendix

The leading high-end accommodation company globally

• Prosafe's strategy is to be the preferred supplier of semisubmersible accommodation vessels and to pursue profitable growth within the high end of the offshore accommodation industry
• Currently owns 12 vessels + three new builds in progress
• Three times as large as the second-largest player: 45-50% market share

Agenda

Introduction

Status & outlook in brief

-Industry & company

• Summary
• Appendix

Historically outperformed OSX and OSEBX

l e ( ) An De 1 5 nu a q. c		lu lve d by Va io Bo D: t ta t r e c re a n rg e es o
P R S	1 0, 2 %	fe ha l l a le do b le ha ho l de lu d, d a he b d v lu Pr 5 y io in t t t os a s as u s re r v a e o ve r a ea r p er m ea su re s co m e a e
O S E B	X 7, 9 %	f d e ha d c l r d ha ho l de io in in i t ta tu to cre a n o cre as e ar n g s p er s re an ap e rn e s re rs.
O S X	4, 1 %

Activity level forecasted to rebound in 2018 when cost levels have been reduced

Source: Norwegian Ministry of Finance (October 2015)

Source: Norwegian Ministry of Finance / Prosafe

How is Prosafe placed to handle the down-turn?

Vessels

• -Clear market leader
• -High quality vessels
• -Fleet renewal and new builds
• Operations and organisation
• • By far the largest operator in high-end offshore accommodation
• • Unmatched operational track-record from accommodation operations worldwide
• -Highly competent organisation
• Finance
• -Lower cost of capital than competitors
• Commercial
• -Robust order backlog

What is Prosafe doing to handle the down-turn?

Vessels (capex)

• Long-term planning of fleet investments to ensure optimal capital allocation both short and long term

Operations and organisation (opex)

• • Substantial operating cost reduction as a consequence of activity level adjustments, natural currency hedges and cost efficiency measures
• Finance (finance cost)
• • Maintaining a good relationship with all funding sources
• Commercial (revenue)
• -Aiming for win-win agreements with clients

Cost efficiency measures

• Review of cost reduction potential has been ongoing and will continue in light of the industry downturn and market outlook
• The whole cost structure, both onshore and offshore, is under review
• Some measures already implemented, more to follow

Temporary suspension of dividend payments

• The company believes that this will be beneficial for the company, both from a commercial, financial and strategic perspective, and it will improve financial robustness and optionality
• The company reaffirms the long-term dividend policy as described in the Q3 2014 report

Raised NOK 590 million in private placement

• The private placement, which represents approximately 9.99% of the previous outstanding shares, was over-subscribed at the subscription price and supported by existing and new institutional investors
• • Price was NOK 25 per share, representing a premium of 4.6% to the closing price 3 December 2015
• The proceeds will be used to strengthen the company's balance sheet and liquidity position as well as for general corporate purposes
• The proceeds will further strengthen the company's ability to work proactively with all stakeholders, and allow the company to be in a better position to execute on preferred initiatives in the near term challenging market

Recent commercial developments

• Statoil – Mariner: A win-win agreement
• -Moved from start in 2016 to start in 2017
• • Total value up by USD 55 million and duration up by 5 months
• Mexico:
• -Safe Hibernia extended until end Q1 2016
• • Safe Britannia contract ended year-end. Vessel remains in operational readiness mode in Mexico.
• -Longer term prospects remain positive
• TSV completed and commissioned. Client acceptance testing in progress with contract commencement in the very near future.

Contract coverage

Contract backlog robust per Q315

Gross value of charter contracts

Agenda

• Introduction
• Status & outlook in brief
• -Industry & company

Summary

Appendix

Summary

• Challenging industry conditions
• However, Prosafe is generally well positioned
• Good order backlog through 2016 and into 2017
• The clear market leader globally
• All new builds contracted
• Recent equity issue further strengthens the company's ability to work proactively with all stakeholders

Agenda

• Introduction
• Status & outlook in brief
• -Industry & company
• Investment perspectives

Appendix

Income statement

( U d i d f ig in U S D i l l io ) te na u u re s m n	Q 3 1 5	Q 2 1 5	Q 3 1 4	9 M 1 5	9 M 1 4	2 0 1 4
O in t p e ra g re ve nu e s	1 5 4. 1	9 2. 5	1 6 9. 5	3 7 0. 8	3 9 4. 6	5 4 8. 7
O in t p e ra g ex p e ns e s	( 6. ) 5 5	( 1. 0 ) 5	( 9. 9 ) 5	( 1 9. 3 ) 5	( 1 9 ) 7 5.	( 2 3 6. 1 )
E B I T D A	9 7. 6	4 1. 5	1 0 9. 6	2 1 1. 5	2 1 8. 7	3 1 2. 6
De ia io t p re c n	( ) 2 6. 3	( ) 1 8. 7	( ) 1 6. 6	( ) 6 2. 0	( ) 4 7. 8	( ) 6 4. 3
O i f i t t p e r a n g p r o	7 1. 3	2 2. 8	9 3. 0	1 4 9. 5	1 7 0. 9	2 4 8. 3
In inc te t re s o m e	0. 0	0. 1	0. 2	0. 1	0. 3	0. 3
In te t e re s xp e ns e s	( ) 8. 2	( ) 1 2. 8	( ) 1 0. 0	( ) 3 1. 2	( ) 2 7. 1	( ) 3 7. 3
O he f in ia l i t te r a nc m s	( ) 7. 4	5. 7	( ) 7. 9	( ) 1 7. 6	( ) 4. 9	( ) 2 0. 0
N f i i l i t t e n a n c a e m s	( 1 5. 6 )	( 7. 0 )	( 1 7. 7 )	( 4 8. 7 )	( 3 1. 7 )	( 5 7. 0 )
P f i b f t t r o e o r e a x e s	5 5. 7	1 5. 8	7 5. 3	1 0 0. 8	1 3 9. 2	1 9 1. 3
Ta xe s	( ) 2. 5	( ) 3. 6	( ) 7. 9	( ) 8. 4	( ) 1 1. 4	( ) 1 2. 5
N f i t t e p r o	5 3. 2	1 2. 2	6 7. 4	9 2. 4	1 2 7. 8	1 7 8. 8
S E P	0. 2 3	0. 0 5	0. 2 9	0. 3 9	0. 5 5	0. 7 6
S D i lu d E P t e	0. 2 3	0. 0 5	0. 2 9	0. 3 9	0. 5 5	0. 7 6

Balance sheet

( U d i d f ig in U S D i l l io ) te na re s m n u u	3 0. 0 9. 1 5	3 0. 0 6. 1 5	3 0. 0 9. 1 4	3 1. 1 2. 1 4
G dw i l l o o	2 2 6. 7	2 2 6. 7	2 2 6. 7	2 2 6. 7
Ve ls s s e	1 6 9 8. 3	1 6 1 1. 5	1 0 0 4. 1	1 0 2 7. 3
Ne bu i l d w s	2 1 3. 6	2 1 1. 1	2 9 3. 7	3 1 1. 8
O he t t a ts r n o n- cu rre n s s e	5. 5	6. 0	5. 2	5. 7
T l t t t o a n o n- c u r r e n a s s e s	2 1 4 4. 1	2 0 5 5. 3	1 5 2 9. 7	1 5 7 1. 5
C h d d i ts a s a n e p o s	8 5. 2	9 4. 9	1 4 5. 6	1 2 2. 4
O he t t a ts r c u rre n s s e	1 1 2. 9	9 1. 5	9 3. 6	1 2 2. 9
T l t t t o a c u r r e n a s s e s	1 9 8. 1	1 8 6. 4	2 3 9. 2	2 4 5. 3
T l t t o a a s s e s	2 3 4 2. 2	2 2 4 1. 7	1 7 6 8. 9	1 8 1 6. 8
S ha i l ta re c a p	6 5. 9	6 5. 9	6 5. 9	6 5. 9
O he i t ty r e q u	7 1 1. 2	6 9 4. 7	6 6 0. 7	6 8 2. 6
i T l t ty o a e q u	7 7 7. 1	7 6 0. 6	7 2 6. 6	7 4 8. 5
In fre lo l ia b i l i ie te t- -te t re s e ng rm s	8 1. 9	5 9. 4	4 5. 2	5 5. 9
In b in lo d b te t- -te t re s e a r g ng rm e	1 2 7 7. 3	1 1 8 5. 6	9 1 9. 4	8 3 0. 1
i i i i T l l l b l t -t t o a o n g e r m a e s	1 3 5 9. 2	1 2 4 5. 0	9 6 4. 6	8 8 6. 0
O he in fre l ia b i l i ie t te t- t t r re s e cu rre n s	1 7 5. 3	2 0 3. 1	7 7. 7	1 8 2. 3
C io f lo d b t p t -te t u rre n o r n o ng rm e	3 0. 6	3 3. 0	0. 0	0. 0
T l l i b i l i i t t t o a c u r r e n a e s	5. 2 0 9	2 3 6. 1	7 7. 7	1 8 2. 3
T l i d l i b i l i i t ty t o a e q u a n a e s	2 3 4 2. 2	2 2 4 1. 7	1 7 6 8. 9	1 8 1 6. 8

Debt facilities

i l i F t a c y	i C t t o m m m e n	i M t t a u r y	i M a r g n
( ) l l b d N O K 5 0 0 i i 2 0 1 1- 1 6 m o n o n	l l N O K 5 0 0 i i m o n ( ) h b k l l B N O K 2 4 0 i i t o u g a c m o n	Q 1 2 0 1 6	b 3 5 0 p s
l l b d ( ) i i N O K 5 0 0 2 0 1 2- 1 7 m o n o n	l l i i N O K 5 0 0 m o n	Q 1 2 0 1 7	b 3 7 5 p s
l l b d ( ) O 0 0 i i 2 0 3- 8 N K 7 1 1 m o n o n	l l O 0 0 i i N K 7 m o n	Q 2 0 8 4 1	b 2 9 5 p s
l l b d ( ) i i N O K 7 0 0 2 0 1 4- 1 9 m o n o n	l l i i N O K 7 0 0 m o n	Q 3 2 0 1 9	b 3 1 0 p s
( ) l l b d N O K 5 0 0 i i 2 0 1 3- 2 0 m o n o n	l l N O K 5 0 0 i i m o n	Q 1 2 0 2 0	b 3 7 5 p s
f ( ) l l d l U S D 2 8 8 i i i i i 2 0 1 4- 2 1 t t m o n c r e a c y	l l U S D 2 8 8 i i m o n	Q 1 2 0 2 1	b 2 2 5 p s
l l d f l ( ) S 3 0 0 i i i i i 2 0 2 2 U D 1, 1 5- t t m o n r e a c c y	l l S 3 0 0 i i U D 1, m o n	Q 2 0 2 2 1	b 9 0 1 p s

Debt profile

North Sea - dayrates

Mexico - dayrates

Rest of world, excl. NS - dayrates

• «Back to normal»: Majority of prospects currently being «traditional demand» like maintenance and modification work
• • In general lead times are shorter for modification work compared to hook-up and commissioning projects