Subsea 7 — Investor Presentation 2021

Apr 29, 2021

First Quarter 2021 Earnings Presentation

29 April 2021

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 for the year ended 31 December 2020. 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 Fourth 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; and (xvii) 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 forward-looking 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.

First Quarter 2021

John Evans, CEO Ricardo Rosa, CFO

• Highlights
• Financial performance
• Outlook
• Q&A

First quarter 2021 results

FINANCIAL HIGHLIGHTS

• Revenue \$1.0 billion
• Adjusted EBITDA \$102 million
• Adjusted EBITDA margin 10%
  • ‒ After incurring net Covid-19 costs of approximately \$9 million
• Cash and cash equivalents \$527 million
• Net cash \$74 million

OPERATIONAL HIGHLIGHTS

• Active fleet vessel utilisation: 66%
• Zinia complete; Barossa restarted
• Re-commenced offshore activities in Saudi Arabia
• Seagreen making good progress

STRATEGIC HIGHLIGHTS

• First carbon capture award
• New floating wind joint venture

First quarter operational highlights

Pierce (UK)

Gulf of Mexico

28 Jackets (Saudi Arabia) Seagreen (UK)

Seven Vega (GoM)

First quarter 2021 backlog

Backlog of \$6.0 billion, as at 31 March 2021

• Order intake

• \$0.6 billion new orders
• \$0.2 billion escalations

• 0.8 book-to-bill ratio

• Awards announced in Q1:

• Sanha Lean Gas \$150-300m
• Northern Lights ~\$50m
• Subsea order \$50-150m

Order backlog includes:

• \$0.4 billion relating to long-term contracts for PLSVs in Brazil
• approximately \$20 million favourable foreign exchange movement

Q1 2021 – income statement summary

	Three months ended
In \$ millions, unless otherwise indicated	31 March 2021 Unaudited	31 March 2020 Unaudited
Revenue	996	751
Net operating loss	(9)	(49)
Income/(loss) before taxes	3	(33)
Taxation	(2)	(4)
Net income/(loss)	1	(38)
Adjusted EBITDA(1)	102	68
Adjusted EBITDA margin	10%	9%
Diluted earnings per share \$	0.01	(0.13)
Weighted average number of shares (millions)	298	299

Q1 2021 – supplementary details

	Three months ended
In \$ millions	31 March 2021 Unaudited	31 March 2020 Unaudited
Administrative expenses	(56)	(63)
Depreciation, amortisation, mobilisation and impairment	(111)	(117)
Net operating loss	(9)	(49)
Net finance cost	(5)	(4)
Other gains and losses	16	20
Income/(Loss) before taxes	3	(33)
Taxation	(2)	(4)
Net income/(loss)(1)	1	(38)

(1) Q1 2021: \$2m net income is attributable to shareholders of the parent company with a net loss of \$1m attributable to non-controlling interests

Q1 2021 – business unit performance

(1) Corporate business unit includes the results of the Group's autonomous subsidiaries Xodus and 4Subsea, group-wide activities and discrete events such as restructuring costs.

Q1 2021 - cash flow

• Net debt (including lease liabilities) of \$74 million at 31 March 2021

Capital allocation framework

• Balanced capital allocation strategy to protect and drive growth in shareholder value
• Re-investment in a disciplined manner
  • − Investment in technology and digitalisation remains a priority
  • − Sufficient cash to fund working capital requirements, to enable growth
• Prudent management of the balance sheet
  • − Support the business through-cycle
  • − Maintain flexibility to seize opportunities
• Return excess cash to shareholders
  • − Approximately \$2 billion returned in the last ten years through special dividends and share repurchases
  • − Regular evaluation by Board of Directors based on outlook and strategic priorities
  • − Share repurchases authorised until April 2023

Financial guidance - unchanged

2021 Guidance

Revenue	Higher than 2020
Adjusted EBITDA	Higher than 2020
Net operating income	Positive
Administrative expense	\$220 million - \$240 million
Net finance cost	\$15 million - \$20 million
Depreciation and amortisation	\$430 million - \$450 million
Tax charge	\$30 million - \$40 million
Capital expenditure	\$120 million - \$140 million

• New business units from 1 January 2021:
  • Subsea and Conventional: comprising SURF and Conventional, and Life of Field
  • Renewables: excluding oil and gas activities (negligible in 2020)
  • Corporate: including Xodus and 4Subsea

The Subsea 7 Strategy

Subsea Field of the Future: Systems and Delivery

• Early engagement and partnerships
• Systems innovation and enabling products
• Integrated SPS and SURF
• Digital delivery of projects and services

Energy Transition: Proactive Participation

• Renewables offshore wind
• Oil and gas lower carbon developments
• Emerging energy new markets and opportunities
• Operations sustainable and efficient

Energy Transition – emerging energy

Carbon Capture: Northern Lights

• CO2 generated by cement and waste-toenergy operations piped to a storage location in the North Sea, for permanent storage
• Initial capacity up to 1.5 million tonnes of CO2 per year
• Scheduled to be in operation in 2024
• Subsea 7 scope
  • − Engineering, fabrication and installation of 100km CO2 pipeline from Øygarden to CO2 storage complex
  • − Installation of umbilicals, tie-in and precommissioning activities

Energy Transition – renewables

Floating wind: Salamander

• Pre-commercial size, "stepping-stone" project up to 200MW
• Offshore north-east coast Scotland
• 35km from shore, 75-110m water
• Preliminary technology selection based on maximising Scottish supply chain content
• Aiming to participate in the CFD round in 2025
• Subsea 7 a minority shareholder

Outlook: global prospects

• Subsea and Conventional

• Brazil accelerating
• Gulf of Mexico active
• Norway busy with early engagement
• Fewer prospects in UK, Asia, Middle East

• Renewables

• Active in the three main regions including the US

Canada and USA

• Ørsted Ocean Wind, Skipjack (w)
• Shell & EDPR Mayflower (w)
• Equinor Empire (w)
• Dominion Energy Coastal Virginia (w)
• Shell Whale
• Total North Platte
• Equinor Bay du Nord (i)

Europe

• Iberdrola East Anglia Hub (w)
• Red Rock Inch Cape (w)
• EDPR Moray West (w)
• Shell Jackdaw, Ormen Lange Phase III (i)
• AkerBP Future subsea portfolio
• Equinor Future subsea portfolio
• OKEA Hasselmus (i)

Africa

• Aker Energy Pecan (i,f)
• ENI Rovuma (f)
• Total CLOV 3, Begonia

South America

• Petrobras Mero 3, 4; Búzios 6,7,8; riser replacements; PLSVs
• Equinor Bacalhau (i,f); BMC-33 (i)
• Shell Gato do Mato
• Total Lapa SW (i)

Middle East & Asia

• RWE Chu Feng(w)
• NOC Qatar Gallaf
• Saudi Aramco Zuluf

Australia

• Woodside Scarborough (i,f)
• Chevron Jansz-Io Compression

(i) Integrated SURF-SPS, (w) offshore wind, (f) FEED already awarded, Subsea 7 is preferred EPCI supplier

Summary: delivering on a diversified energy services strategy

• Strong balance sheet with net cash of \$74 million and liquidity in excess of \$1 billion
• Robust, diversified backlog of \$6.0 billion
  • − 30% of backlog in offshore wind
  • − Good visibility on 2021 with a backlog for execution this year of \$3.4 billion
• Tendering activity increasing in key areas
  • − Pace of new oil and gas awards to the industry expected to increase in the coming months resulting in higher offshore activity from late 2023
  • − Increased tendering for US offshore wind projects
• Strategy in place to capitalise on a recovery in oil and gas as well as continued high growth in offshore wind and carbon capture

Seven Navica and Seven Seas working in the Gulf of Mexico

Appendix

Major project progression Track record Fleet Financial summaries

Major project progression

• Continuing projects >\$100m between 5% and 95% complete as at 31 March 2021 excluding PLSV and Life of Field day-rate contracts

Track record – over 1,000 projects delivered worldwide

Fleet – 29 active vessels at the end of Q1 2021

Seven Antares and Seven Inagha are owned by Subsea 7's Nigerian joint venture.

Long-term charter from a vesselowning joint venture

Stacked

Chartered from a third party

Segmental analysis

For the three months ended 31 March 2021

In \$ millions (Unaudited)	Subsea & Conventional	Renewables	Corporate	TOTAL
Revenue	735	241	20	996
Net operating (loss)/income	(7)	(20)	18	(9)
Finance income				1
Other gains and losses				16
Finance costs				(6)
Income before taxes				3

For the three months ended 31 March 2020

In \$ millions (Unaudited)	Subsea & Conventional	Renewables	Corporate	TOTAL
Revenue	669	62	20	751
Net operating loss	(28)	(12)	(8)	(49)
Finance income				2
Other gains and losses				20
Finance costs				(6)
Loss before taxes				(33)

Summary Balance sheet

In \$ millions	31 Mar 2021 Unaudited	31 Dec 2020 Audited
Assets
Non-current assets
Goodwill	86	85
Property, plant and equipment	3,928	3,983
Right-of-use asset	212	213
Other non-current assets	189	181
Total non-current assets	4,415	4,462
Current assets
Trade and other receivables	545	591
Construction contracts - assets	515	471
Other accrued income and prepaid expenses	204	198
Cash and cash equivalents	527	512
Other current assets	69	63
Total current assets	1,860	1,835

	31 Mar 2021 Unaudited	31 Dec 2020 Audited
In \$ millions
Equity & Liabilities
Total equity	4,269	4,255
Non-current liabilities
Non-current portion of borrowings	158	184
Non-current lease liabilities	171	169
Other non-current liabilities	125	138
Total non-current liabilities	454	491
Current liabilities
Trade and other liabilities	1,067	982
Current portion of borrowings	45	25
Current lease liabilities	80	85
Construction contracts – liabilities	210	280
Deferred revenue	2	2
Other current liabilities	148	177
Total current liabilities	1,552	1,551
Total liabilities	2,006	2,042
Total equity & liabilities	6,275	6,297

Reconciliation of adjusted EBITDA

Net operating loss to Adjusted EBITDA

For the period (in \$millions)	Three Months Ended 31 March 2021 Unaudited	Three Months Ended 31 March 2020 Unaudited
Net operating loss	(9)	(49)
Depreciation, amortisation, mobilisation and impairment	111	117
Adjusted EBITDA	102	68
Revenue	996	751
Adjusted EBITDA %	10%	9%

Net income/(loss) to Adjusted EBITDA

For the period (in \$millions)	Three Months Ended 31 March 2021 Unaudited	Three Months Ended 31 March 2020 Unaudited
Net income/(loss)	1	(38)
Depreciation, amortisation, mobilisation and impairment	111	117
Finance income	(1)	(2)
Other gains and losses	(16)	(20)
Finance costs	6	6
Taxation	2	4
Adjusted EBITDA	102	68
Revenue	996	751
Adjusted EBITDA %	10%	9%

Summary of first quarter 2021 cash flows

\$ millions

Cash and cash equivalents at 1 January 2021	512
Net cash generated from operating activities	71	Includes net decrease in operating liabilities of \$24 million
Net cash used in investing activities	(21)	Includes capital expenditure of \$24m
Net cash used in financing activities	(33)	Includes \$24m of payments related to lease liabilities and repayment of borrowings of \$6m
Other movements	(2)
Cash and cash equivalents at 31 March 2021	527

• Net cash (including lease liabilities) of \$74 million at 31 March 2021 compared to \$49 million at 31 December 2020
• Borrowings totalled \$203 million at 31 March 2021 compared to \$209 million at 31 December 2020