Prosafe SE — Interim / Quarterly Report 2015

May 13, 2015

Q1 2015 results

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

• Recent developments
• Financial results
• Operations/projects
• Outlook

Recent developments

• Q1 utilisation of 80 per cent
• New debt facility secures robust financing structure for the coming years
• New build Safe Boreas in Norway and ready to commence operations
• Slight improvement in the market activity level

Agenda

Recent developments

Financial results

• Operations/projects
• Outlook

Income statement

( U d i d f i i U S D i l l i ) t n a u e g u r e s n m o n	Q 1 1 5	Q 4 1 4	Q 1 1 4	2 0 1 4
O i t p e r a n g r e v e n u e s	1 2 4 2	1 5 4 1	9 1. 7	5 4 8 7
O i t p e r a n g e x p e n s e s	( ) 5 1. 8	( ) 6 0 2	( ) 5 3 6	( ) 2 3 6 1
E B I T D A	2 4 7	9 3 9	3 8. 1	3 1 2 6
D i i t e p r e c a o n	( ) 1 0 7	( ) 1 6 5	( ) 1 2 5	( ) 6 4 3
i f i O t t p e r a n g p r o	5 5 4	7 7 4	2 2 9	2 4 8 3
I i t t n e r e s n c o m e	0 0	0 0	0 1	0 3
I t t n e r e s e p e n s e s x	( 1 0 2 )	( 1 0 2 )	( 8 3 )	( 3 3 ) 7
O h f i i l i t t e r n a n c a e m s	( ) 1 9 5	( ) 1 1 5	4 2	( ) 2 0 0
N f i i l i t t e n a n c a e m s	( ) 2 6 1	( ) 2 5 3	( ) 4 0	( ) 5 7 0
P f i b f t t r o e o r e a e s x	2 9. 3	5 2 1	1 8. 9	1 9 1. 3
T a x e s	( ) 2 3	( ) 1. 1	( ) 0 6	( ) 1 2 5
N f i t t e p r o	2 0 7	5 1. 0	1 8. 3	1 8 8 7
E P S	0 1 1	0. 2 2	0 0 8	0 7 6
D i l d E P S t u e	0 1 1	0. 2 2	0 0 8	0 7 6

Operating revenues

( U S D i l l i ) m o n	Q 1 1 5	Q 4 1 4	Q 1 1 4	2 0 1 4
C h i t a r e r n c o m e	1 1 1 8	1 3 7 2	8 0 5	4 8 1 2
M b / d b i o e m o n c o m e	1 0	1 0	1 1	8 8
O h i t e r n c o m e	1 1 4	1 9 5	1 0 1	8 5 7
T l t o a	1 2 4 2	1 5 4 1	9 1 7	5 4 8 7

Balance sheet

( f S ) U d i d i i U D i l l i t n a u e g u r e s n m o n	3 1. 0 3. 1 5	3 1. 1 2. 1 4	3 1. 0 3. 1 4
G d i l l o o w	2 2 6. 7	2 2 6. 7	2 2 6. 7
V l e s s e s	1 0 9 6. 1	1 0 2 7. 3	9 8 1. 3
N b i l d e w u s	5 6 7. 6	3 1 1. 8	2 6 0. 3
O h t t t e r n o n- c u r r e n a s s e s	6. 0	5 7	5 1
T l t t t o a n o n- c u r r e n a s s e s	1 8 9 6. 4	1 5 7 1. 5	1 4 7 3. 4
C h d d i t a s a n e p o s s	1 1. 4 5	1 2 2 4	6 5 7.
O h t t t e r c u r r e n a s s e s	1 0 9. 7	1 2 2 9	6 6. 4
T l t t t o a c u r r e n a s s e s	2 6 1. 1	2 4 5. 3	1 2 4. 0
T l t t o a a s s e s	2 1 5 7. 5	1 8 1 6. 8	1 5 9 7. 4
S h i l t a r e c a p a	6 5. 9	6 5. 9	6 5 9
O h i t t e r e q u y	6 9. 2 7	6 8 2 6	6 3 6 5
T l i t t o a e q u y	7 4 5. 1	7 4 8. 5	7 0 1. 5
f I l l i b i l i i t t- -t t n e r e s r e e o n g e r m a e s	1. 6 7	9 5 5.	3 8 7.
I b i l d b t t- -t t n e r e s e a r n g o n g e r m e	1 0 9 6. 7	8 3 0. 1	8 6. 7 5
T l l l i b i l i i t t t o a o n g e r m a e s -	1 1 6 8. 3	8 8 6. 0	8 2 4. 3
O f h i l i b i l i i t t t- t t e r n e r e s r e e c u r r e n a e s	2 1 2. 0	1 8 2 3	1. 6 7
C f i l d b t t -t t u r r e n p o r o n o o n g e r m e	3 2. 1	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	2 4 4. 1	1 8 2. 3	7 1. 6
T l i d l i b i l i i t t t o a e q u y a n a e s	2 1 5 7. 5	1 8 1 6. 8	1 5 9 7. 4

Key figures

S K E Y F I G U R E	Q 5 1 1	Q 4 1 4	Q 1 1 4	2 0 1 4
O i i t p e r a n g m a r g n	4 4 6 %	5 0 2 %	2 5 0 %	4 5 3 %
E i i t t q u y r a o	3 4 5 %	4 1. 2 %	4 3 9 %	4 1. 2 %
R i t t e r n o n e q u u y	1 4 % 5	2 8 1 %	1 0 2 %	2 3 9 %
( S ) N i b i d b U D i l l i t t t t e n e r e s e a r n g e m o n	9 4 7 7	0 7 7 7	2 8 9 7	0 7 7 7
f ( ) N b h 1 0 0 0 m e r o s a r e s u	2 3 9 3 5 7	2 3 9 3 5 7	2 3 9 3 5 7	2 3 9 3 5 7
f ( ) A d i h 1 0 0 0 t t e r a g e n o o o s a n n g s a r e s v u	2 3 9 3 5 7	2 3 9 3 5 7	2 3 9 3 5 7	2 3 9 3 5 7
S / O f U D N K h d i d t t e c a n g e r a e a e n o p e r o x	8 0 9	4 3 7	9 9 5	4 3 7
S ( O ) h i N K a r e p r c e	2 2 2 0	2 3 0 0	4 9 8 7	2 3 0 0
S h i ( U S D ) a r e p r c e	2 7 4	3 1 0	8 0 1	3 1 0
M k i l i i ( N O K i l l i ) t t t a r e c a p a s a o n m o n	5 2 3 9	5 4 2 7	1 1 3 2 2	5 4 2 7
M k i l i i ( U S D i l l i ) t t t a r e c a p a s a o n m o n	6 4 8	7 3 0	1 8 9 0	7 3 0

Dividend

• Board of Directors has declared an interim dividend equivalent to USD 0.048 per share
• The shares will trade exdividend on 20 May
• The dividend will be paid in the form of NOK 0.36 per share on 3 June

Debt instalment profile

Robust financing structure for the coming years

Note: As the new USD 1,300 million facility includes a revolving tranche, the scheduled instalments do not necessarily imply a reduction of cash (or gross interest-bearing debt)

Agenda

• Recent developments
• Financial results
• Operations/projects
• Outlook

Operations

• Utilisation rate of 80 per cent in Q1
• Safe Caledonia, Regalia and Safe Astoria were fully contracted during the quarter
• The five vessels operating in Mexico had an utilisation rate of 93 per cent in the first quarter

Safe Boreas

• Safe Boreas delivered on budget
• Safe Boreas has been mobilisedto Norway and will be on contract from mid-May 2015
• The vessel is ready to commence operations with Lundin Norway at the Edvard Grieg field

Safe Zephyrus

• Sister vessel of Safe Boreas
• Project progressing well
• • Mechanical completion ongoing
• -Commissioning has started
• First contract for Det norskeat Ivar Aasen scheduled for June 2016

	F i i l Q 5 U S D 1 1 t t n a n c a s a s m u
	B k l b o o a e o v u	9 1
	B k l b o o v a u e c	9 7
	C i l i d i t t a p a s e n q u a r e r	6
	E i d l t t t t t s m a e o a c o s	3 0 5

Safe Notos and Safe Eurus

• Projects developing as planned
• • Safe Notos LQ blocks lifted in March
• • All main lifts completed ahead of contract schedule
• Strong capabilities
• • The most advanced and flexible vessels for worldwide operations excluding Norway
• Ready for operations in 2016

Safe Scandinavia TSV project

• 3 years firm (+4 years of options) contract with Statoil for use of the vessel as a Tender Support Vessel (TSV) at OsebergØst in Norway
• Arrived at Westcon yard in Norway for TSV conversion in March
• Lifting of column blisters and modules completed
• Project completion delayed - contract commencement expected to be Q3 2015
• Cost forecast has increased as a result of late arrival from Solan and specification changes

Safe Concordia and Safe Bristolia yard stays

Safe Concordia

• • Safe Concordia undertaking SPS and upgrade work at Maua yard in Brazil
• • Availability of adequate quay/anchorage site has delayed final completion of the project

Safe Bristolia

• Repair work has taken longer than anticipated due to challenges with vendors

2015 capital expenditure

• Expected capital expenditure in 2015 of USD 750-800 million
• Increased from USD 700-750 million due to:
• • Safe Scandinavia TSV conversion project
• -Safe Concordia SPS and upgrade
• -Safe Bristolia repair work
• Major capex items in 2015:
• • Final yard instalment for Safe Boreas and Safe Zephyrus
• -Safe Scandinavia TSV conversion
• -Safe Concordia SPS and upgrade
• • Safe Notos and Safe Eurus new build projects

Agenda

• Recent developments
• Financial results
• Operations/projects

Outlook

High growth in global accommodation fleet

• Significant share of incoming vessels not originally designed for accommodation purposes
• • Weak market makes it more difficult to find work for vessels with low/sub-optimal specifications
• The key markets, the North Sea and Mexico, still remain well consolidated
• Some owners are financially weak
• Potential vessel exits
• -Safe Scandinavia going into TSV market for a minimum of three years from 2015
• • Some low-quality vessels may be retired or moved to lower-end segments, particularly if demand weakness persists

High market share in key markets

North Sea – slight improvement

• Slight improvement in activity level, although still at low level
• -Several prospects in the UK
• -Also more opportunities in Norway
• • Prospects firming up - likelihood of contract awards over the coming months increasing
• • Positive movement in oil price is also helpful
• Long-term demand drivers intact
• -Aging infrastructure
• -Recovery rates trending upwards
• • Large new fields to come on stream over the coming years

Based on firm contracts, extension options, projects in the tendering phase and prospects for the next 36 months. Index based on number of days in demand. Q4 11 = 100

Source: Prosafe

North Sea - dayrates

Mexico – short-term uncertainty

• Pemex has initiated substantial cost-reduction programs as a result of lower oil price
• • Pemex has prioritized replanning of drilling activities in recent months in order to reduce spending
• • Contract activities in other segments have been delayed

• Safe Hibernia has been deployed on the Jasminia contract since end February

• Safe Britannia contract extended to end August
• -Vessel to be off-hire for one month in Q2 due to a planned DP upgrade
• Long-term outlook positive
• • Substantial amount of maintenance, refurbishment and re-fitting work in the pipeline for the coming years

Mexico - dayrates

Brazil – potential for contract award

• Accommodation vessels used for safety and maintenance purposes at producing fields
• Lower oil price combined with countryspecific issues have curbed the growth outlook compared to the picture seen two-three years back
• Vessel specification requirements becoming stricter
• Potential for further growth near-term –tender for three-year contract nearing conclusion

Rest of the world – interesting opportunities

Australia

• -Some demand related to hook-up and commissioning
• • As fields are getting older, there should be potential for more maintenance and modification related work
• South East Asia
• • Some demand for semis in mid and deep waters, mostly related to hook-up and commissioning
• US GoM
• -A number of prospects developing in the mid and deep water areas
• West Africa
• -Opportunities as operators plan for major hook-up and commissioning projects

Rest of world, excl. NS - dayrates

High contract visibility

Contract backlog still robust

But no new contracts signed over the past twelve months

Gross value of charter contracts

Summary

• Safe Boreas in Norway and will commence contract mid-May
• • Other new build projects also progressing well
• Some challenges on other yard projects
• Tendering activity is currently at a slightly higher level than in the first quarter
• • Potential for contract awards over the coming months