Third Quarter 2024

21 November 2024

Forward-looking statements

This document may contain 'forward-looking statements' (within the meaning of the safe harbour provisions of the U.S. Private Securities Litigation Reform Act of 1995). These statements relate to our current expectations, beliefs, intentions, assumptions or strategies regarding the future and are subject to known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements may be identified by the use of words such as 'anticipate', 'believe', 'estimate', 'expect', 'future', 'goal', 'intend', 'likely' 'may', 'plan', 'project', 'seek', 'should', 'strategy' 'will', and similar expressions. The principal risks which could affect future operations of the Group are described in the 'Risk Management' section of the Group's Annual Report and Consolidated Financial Statements. Factors that may cause actual and future results and trends to differ materially from our forward-looking statements include (but are not limited to): (i) our ability to deliver fixed price projects in accordance with client expectations and within the parameters of our bids, and to avoid cost overruns; (ii) our ability to collect receivables, negotiate variation orders and collect the related revenue; (iii) our ability to recover costs on significant projects; (iv) capital expenditure by oil and gas companies, which is affected by fluctuations in the price of, and demand for, crude oil and natural gas; (v) unanticipated delays or cancellation of projects included in our backlog; (vi) competition and price fluctuations in the markets and businesses in which we operate; (vii) the loss of, or deterioration in our relationship with, any significant clients; (viii) the outcome of legal proceedings or governmental inquiries; (ix) uncertainties inherent in operating internationally, including economic, political and social instability, boycotts or embargoes, labour unrest, changes in foreign governmental regulations, corruption and currency fluctuations; (x) the effects of a pandemic or epidemic or a natural disaster; (xi) liability to third parties for the failure of our joint venture partners to fulfil their obligations; (xii) changes in, or our failure to comply with, applicable laws and regulations (including regulatory measures addressing climate change); (xiii) operating hazards, including spills, environmental damage, personal or property damage and business interruptions caused by adverse weather; (xiv) equipment or mechanical failures, which could increase costs, impair revenue and result in penalties for failure to meet project completion requirements; (xv) the timely delivery of vessels on order and the timely completion of ship conversion programmes; (xvi) our ability to keep pace with technological changes and the impact of potential information technology, cyber security or data security breaches; (xvii) global availability at scale and commercially viability of suitable alternative vessel fuels; and (xviii) the effectiveness of our disclosure controls and procedures and internal control over financial reporting. Many of these factors are beyond our ability to control or predict. Given these uncertainties, you should not place undue reliance on the forwardlooking statements. Each forward-looking statement speaks only as of the date of this document. We undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Third quarter 2024 – on track to deliver strong growth

Third quarter Adjusted EBITDA of \$321 million, a margin of 18% up from 13% in the prior year period
On track to deliver Adjusted EBITDA in 2024 of between \$1,025 million and \$1,075 million
Guidance for 2025 supported by a firm backlog of quality projects
Confident in the longer-term outlook, with a robust subsea tender pipeline of \$20 billion
Strong free cash generation expected in 2025+
Commitment to return at least \$1 billion to shareholders in 2024-2027 Northern Lights

Order intake

Q3 order intake \$0.6bn
- New awards \$0.3bn
- Escalations \$0.3bn
- Book-to-bill 0.3 times
9M order intake \$5.9bn
- Book-to-bill 1.2 times

Backlog – \$5.3 billion for execution in 2025

Subsea and Conventional Backlog by year of execution

• Backlog for 2026+ up 13% on the equivalent prior year position

Renewables Backlog by year of execution

• Selective bidding to ensure equitable risk-reward

Group results – improved volume and pricing mix

Q3 revenue growth 16% YoY
9M revenue growth 14% YoY

Revenue Adjusted EBITDA

• Adjusted EBITDA in the first nine months exceeded the prior full year

Subsea and Conventional

Revenue \$1.4 billion, up 12% yearon-year
Adjusted EBITDA margin 17.5%
- Growth of 38% year-on-year
- ~330bps margin expansion
- Includes \$10 million from OneSubsea
Net operating income of \$127 million

Renewables

Revenue \$376 million, up 40% yearon-year
Twofold increase in Adjusted EBITDA year-on-year
- Margin 16.4%
- Very high vessel utilisation
Net operating income \$32 million

0.05

0.1

0.15

0.2

0.25

0.3

Cash balance reconciliation

Operating \$270m	Investing \$(126)m	Financing \$(78)m
Minor movement in net working capital: \$(27)m	Capital expenditure:\$(132)m including the acquisition of Seven Merlin for \$83m	Share repurchases: \$(20)m Lease payments: \$(60)m Net proceeds from borrowings: \$19m

Cash conversion ratio 0.9x
Free cash flow \$138 million
Net debt \$857 million Including lease liabilities of \$495 million
Gross liquidity \$1.1 billion
Restricted cash: release of cash on acquisition of Seven Merlin

Group financial guidance

	2023	2024	2025
Revenue	\$6.0 billion	\$6.5 - 6.8 billion	\$6.8 - 7.2 billion
Administrative expense	\$266 million	\$280 – 300 million
Adjusted EBITDA	\$714 million	\$1,025 – 1,075 million	18 – 20%
D&A	\$538 million	\$600 – 620 million
Net operating income	\$105 million	\$400 – 430 million
Net finance cost	\$46 million	\$65 – 75 million
Effective tax rate	88%	35 – 40%
Underlying capex1	\$581 million	\$300 – 320 million	\$360 – 380 million

¹ Underlying capex excludes the acquisition of Seven Merlin for \$83 million and the final payment related to the investment in OneSubsea for \$153 million

Seaway7 - positive momentum

Good progress in execution and financial performance of existing projects
- Over 90% foundations installed at Dogger Bank A+B
- Moray West, Chang Fang Xidao, Gode Wind 3 completed
Two substantial1 contracts signed in fourth quarter with execution beyond 2025:
- UK: Hornsea 3 cables
- UK: East Anglia 2 cables
Supports longer-term visibility and confidence in the outlook
Expect Adjusted EBITDA margin of 14-16% in 2025+

Turbine blades aboard Seaway Ventus

¹ Substantial is defined as \$150–300 million

Offshore wind – improved industry dynamics

Bidding activity remains high
Latest developer awards confirm positive momentum in largest markets of the UK, Germany and the Netherlands supported by:
- Cost stability
- Supportive political and regulatory context
- Improved discipline from developers
Our approach to new business within offshore wind continues to be disciplined
- Strong focus on risk profiles
- Pricing that properly reflects the value we add Seven Phoenix at Yunlin, Taiwan

Subsea prospects

Offshore wind prospects

USA

Shell Atlantic Shores 1&2 Avangrid New England Wind 1&2

UK and Ireland

BP/EnBW Equinor	Mona Morgan SEP/DEP
Red Rock	Inchcape
RWE	Awel y Môr
SPR1	East Anglia 1N
SSE	Seagreen 1A
	Berwick Bank
TotalEnergies	West of Orkney
Ireland	Various prospects

Rest of Europe

BP	Oceanbeat East/West, Germany
EnBW	N-12.3, Germany
RWE	N-9.1, N-9.2, Germany
Skyborn	Gennaker, Germany
TotalEnergies	O-2.2, N-11.2, N-12.1 Germany
SSE/ABP	Ijmuiden Ver A, Netherlands
Vattenfall	Ijmuiden Ver B, Netherlands
Oceanwinds	BC Wind, Poland

Asia

Various prospects

Outlook for strong cash flow growth

On track to deliver strong growth in Adjusted EBITDA in 2024 and 2025
Supported by an \$11.3 billion backlog of firm work
Subsea market remains buoyant with an active bidding pipeline of \$20 billion
Positive momentum in fixed offshore wind delivery and outlook
Free cash flow expected to increase significantly in 2025+
Shareholder returns a priority, with approximately \$250 million returned in 2024 and at least \$1 billion in 2024-27