Prosafe SE — Investor Presentation 2021

Sep 16, 2021

16 September 2021

Pareto Securities' Energy Conference

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.

• Prosafe anno 2021 & status
• Update on financial process
• Strategy & Outlook
• Summary

Prosafe anno 2021

	 The worlds largest owner of semisubmersible accommodation vessels (flotels)	# vessels per owner (Total: 38) 9 5
Largest player in an industry in need of consolidation	 Significant win rate over the last years ensuring better utilization and earnings than competitors
		3 3
	 Best suited to drive consolidation	2 2 2
		2 Prosafe fleet
Core fleet well suited for core markets		Boreas Vega (at yard)
	Five vessels with an average age of 4 years + two units at yard	Scandinavia Zephyrus Nova (at yard)
	 Core fleet well suited to operate in the key markets	Caledonia Concordia Notos Eurus
		1980s 2005 2015+ 2019+
Global presence – diversified earnings potential		Prosafe presence
	 Prosafe is the only flotel operator with a strong track record in all of the three core regions; North
	Sea, Brazil and Mexico
	 Ensures best possible fleet utilization, diversification of earnings and regional arbitrage opportunities
Cost leader & modest capex needs	 Rightsized and preserving cash: SG&A, opex & capex significantly down since 2016	SG&A runrate (\$m) 40 40 40 41
	 Next planned SPS in 2024	30 22 21
		19 15
	 Adapting the operating model: Flexible operational cost base which can be adjusted to match activity in cooperation with partners
		2012 2013 2014 2015 2016 2017 2018 2019 2020e Long term debt
Improved balance sheet	 About 75% debt reduction through equitization. Variable interest post-restructuring with about	Long term debt 1 561
	2.5 % margin. Significant reduction in finance costs	Eurus Sellers Credit
	 Implementation of the consensual agreement with Lenders expected before or around year end	437
	 Cash position upon completion around year end expected between USD 50-60m.	Prior to refinancing After refinancing

Fleet status: Contracts, wins and extensions

Safe Vega and Safe Nova – newbuilds at yard

2021: All vessels working for part of 2021.*

2022 expectation: All vessels working for part of 2022* - at significantly improved earnings

*All vessels excl. Scandinavia

Contract backlog Contracting update

• Safe Concordia: commenced a 117-day contract in Trinidad on 25 July 2021. Possible extension up to 3 months beyond firm period.
• Safe Notos: on contract with Petrobras through to mid-November 2021. Extension discussion and auction process underway.
• Safe Eurus: on contract with Petrobras
• 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. Full 30 day option period exercised.

Order backlog per Q2 2021 (USD million)

*Firm periods only. Predominantly related to work in 2022

• Prosafe anno 2021 & status
• Update on financial process
• Strategy & Outlook
• Summary

More than USD 1 billion in debt reduction

Update on financial restructuring process Debt before and after restructuring

• The financial process is on track with formal support from a decisive majority of the lenders (98.2%).
• As announced the consensual solution will be implemented via the Singapore courts with sanction hearing on 28 September and a Norwegian reconstruction process which is expected to conclude before or around year end.
• An Extraordinary General Meeting to approve the financial restructuring solution will take place on 27 September 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 loan of about USD 93m which is financed by the yard

• Prosafe anno 2021 & status
• Update on financial process
• Strategy & Outlook
• Summary

Strategy going forward

• Industry needs to rebalance through consolidation and/or scrapping
• Status
• Transparent industry consisting of a limited number of players, many of whom has less efficient fleet size
• Exploring opportunities in blue ocean industries for the longer term
• Maintain a slim, competent and efficient organization to ensure cost efficiency and flexibility
• Optimize market position in Brazil and the North Sea
• Seek to re-enter Mexico

Reduce GHG emissions

• Prosafe with ambition to reduce emissions by 50% within 2030

• Ongoing initiatives; Implementation of 2+1 split for Zephyrus and Boreas, ISO 50.001 certification. Measures for Notos and Eurus underway.

Cost and cash optimization

• Costs and capex reduced over the last years.
• Continuous improvement initiatives ongoing.

High consolidation potential

• Prosafe is well placed to drive consolidation in the industry due to its strong commercial outperformance, listing, cost leadership and global presence
• Operating 1 2 flotels is not efficient

Reducing the cost base to improve competitiveness

Opex (CPD % reduction)	NCS	UK	NCS (TSV)	UKCS	Brazil
	DP	DP	Moored	Moored	DP
2015 - 2021	~20%	~ 45%	~25%	~40%	~42%

Stacking (CPD \$k/d)	Stacking cost/day
2015 - 2021	~60%

Examples:

• Crew size and partnership with crew providers
• Condition based maintenance
• Smart stacking
• Energy efficiency (ESG)

Prosafe with ambition to reduce emissions by 50% within 2030

• Prosafe anno 2021 & status
• Update on financial process
• Strategy & Outlook
• Summary

Summary

• The largest and only listed player in the offshore accommodation industry
• Presence and experience from all key regions diversified earnings potential
• Financial restructuring is on track improved balance sheet and flexible cost structure
• New contracts in the North Sea earnings are improving
• Proactively working to reduce energy consumption and emissions (ESG)
• Ambition to be active in consolidation of the offshore accommodation industry and pursue diversification opportunities in other blue ocean industries