SBM Offshore UBS Presentation Brazil December 10, 2018 · SBM Offshore UBS Presentation Brazil December 10, 2018 Author: Luten, Aarne Created Date: 12/12/2018 5:30:42 PM

© SBM Offshore 2018. All rights reserved. www.sbmoffshore.com

SBM Offshore

UBS Presentation Brazil

December 10, 2018

2© SBM Offshore 2018. All rights reserved. www.sbmoffshore.com

Disclaimer

The companies in which SBM Offshore N.V. directly and indirectly owns investments are separate legal entities. In this presentation “SBM

Offshore” and “SBM” are sometimes used for convenience where references are made to SBM Offshore N.V. and its subsidiaries in general.

These expressions are also used where no useful purpose is served by identifying the particular company or companies.

This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of SBM. All

statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are

statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown

risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these

statements. Forward-looking statements include, among other things, statements concerning the potential exposure of SBM to market risks

and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. All forward-looking

statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this

section. Readers should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date

of this presentation. Neither SBM Offshore N.V. nor any of its subsidiaries undertakes any obligation to publicly update or revise any forward-

looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from

those stated, implied or inferred from the forward-looking statements contained in this presentation.

© 2018. This presentation is the property of SBM Offshore N.V. or any of its subsidiaries (together referred as “SBM”) and contains material

protected by intellectual property rights, including copyrights, owned by SBM. The trademark "SBM Offshore", the SBM logomark and the

SBM trademark “Fast4ward” which covers a proprietary and patented SBM technology, are registered marks owned by SBM.

All copyright and other intellectual property rights in this material are either owned by SBM or have been licensed to SBM by the rightful

owner(s) allowing SBM to use this material as part of this presentation. Publication or other use, explicitly including but without limitation to

the copying, disclosing, trading, reproducing, or otherwise appropriating of information, illustrations etc., for any other purposes, as well as

creating derivative products of this presentation, is prohibited without the prior express written consent of SBM.


Introduction

Macro environment

Fast4Ward

SBM Offshore Brazil


Leading Global FPSO Contractor

> 50FLOATING PRODUCTION

SYSTEMS DELIVERED

2LARGE PROJECTS UNDER

CONSTRUCTION

Early and late

cycle player99%

HISTORICAL OIL

PRODUCTION UPTIME

1st

FAST4WARDTM CONCEPT

TO PROJECT AWARD

10%GLOBAL DEEPWATER OIL

PRODUCED BY SBM UNITS


Why SBM Offshore, and why now..?

+25%Global energy demand

growth by 2040

50%of Deepwater projects

more competitive than

Shale

TM


Introduction

Macro environment

Fast4Ward

SBM Offshore Brazil


Oil Remains Primary Source

Source: EIA International Energy Outlook 2018

World Energy Consumption by Energy Source (quadrillion Btu)

1990 2000 2010 2020 2030 2040

0

50

100

150

200

250

History Projection


Supply Gap

Lack of investment since

2014

Supply gap projected

Investment required

Not if,

but when

World Oil Supply and Demand

Existing supply + planned fields Extra recovery existing fields Demand range

Millio

n b

bls

/d

Source: IEA


0

20

40

60

80

100

120

140

TM

Shale2

Deepwater

30

35

40

45

50

55

60

0 2 4 6 8 10

Ave

rag

e B

ren

t B

rea

k-e

ve

n P

ric

e

(US

$/b

bl)

Average Payback Time (years)

Deepwater is Competitive

Deepwater continues to gain

competiveness

>50% Deepwater projects

more competitive than shale

Traditional Deepwater longer

cycle

Deepwater cycle

time is key

Source: Goldman Sachs, Rystad Energy, BofAML

(1) Goldman Sachs Top Projects 2018 cost curve by win zone (prospective projects)

(2) Top five shale plays used as representative example

(3) Size of bubble corresponds to greenfield Capex expected to be sanctioned in 2018

US$100 billion Greenfield cost3

Project Economics

Oil Projects Cost Curve1

Shale

Deepwater

Traditional

Bre

ak

-eve

n P

ric

e

(bb

l/U

S$

)

Cumulative Peak Oil Production (kboe/d)

5,000 10,000 15,0000


Source: SBM Offshore research, company presentations

(1) Award FPSO Liza 2 subject to authorizations

Overall FPSO MarketAs per 1H 2018

Up to 10 awards expected in

2018

2019 acceleration anticipated

Improving outlook

5

1

3

12

12

3

1 11

3

6

3

7

0

2

4

6

8

10

12

14

16

18

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 e2018e2019

Historical and Estimated Total FPSO Market Awards

SBM Offshore Awards FPSO Awards FPSO Awards Bear Case FPSO Awards Bull Case


Introduction

Macro environment

Fast4Ward

SBM Offshore Brazil


Fast4Ward™

Our ambition is to transform the

business by reducing cycle time to

energy delivery, de-risking

projects, and improving quality &

safety. This is what we refer to as

Fast4Ward™

Fast4Ward™ is based

on five key principles

1. Client first

2. Standardization

3. Flawless execution

4. Integrated supply chain

5. Enabling digital solutions

Fast4Ward™ Better Performance, Delivered Faster

TM


The Answer

TM

Reducing cycle

time

Up to 12 months faster;

Up to $1 bn NPV gain

De-risking

projects

Enabling lower

break-evens

Standardized hull and

topsides

Less engineering hours

Integrated supply chain

Greater safety and reliability

Fast4Ward™ Better Performance, Delivered Faster

Lower Capex and Opex


Time is Money

0%

10%

20%

30%

40%

50%

30 40 50 60 70 80 90 100 110 120

Oil

Co

mp

an

y I

RR

US$/bbl

Time to First Oil Scenarios1

1 yr gain

On time delivery

1 yr delay

2 yr delay

3 yr delay

290

489

699

899

1,106

-

500

1,000

1,500

30 50 70 90 110

US$/bbl

NPV impact 12 months acceleration to 1st Oil1

NP

V g

ain

(in

US

$ m

illio

n)

Fast4WardTM accelerates first

oil up to 12 months

Up to US$1 billion NPV gain

Every 1 year acceleration

improves break-even up to

US$10 per barrel (IRR 15%)

Major client gains

Source: Barclays

(1) Based on Barclays model, reflects major world-class greenfield development


Experience Matters

Source: Goldman Sachs, Rystad Energy, SBM Offshore company research

(1) Profitability Index = NPV/ Initial investment. Risk score is Goldman Sachs internal method based on technical and political risk

-5 5 15 25 35

Non-SBM Offshore Contractors

SBM Offshore delivered 10 out of 16 FPSOs closest to schedule

Average11 monthsdelay

N=50

* Redeployment

Generation 3 FPSO

*

*

*

**

**

*

*


0

50

100

150

200

250

1 6 11 16 21 26 31 36 41

Cu

mu

lati

ve

Op

era

tin

g E

xp

eri

en

ce

(Y

rs)

Cumulated FPSOs Built (as main contractor)

Industry Experience

Unique track record in EPC,

FPSO delivery and operations

SBM Offshore’s

unique experience= Industry peers, bubble size relates to cumulative throughput capacity of FPSOs built (kboepd)

3 800 kboepd

1 600 kboepd

Source: SBM Offshore research


Introduction

Macro environment

Fast4Ward

SBM Offshore Brazil


Over 20 Years Brazil Experience

630 kbopdSBM DAILY BRAZILIAN

OIL PRODUCTION

25%OF TOTAL BRAZILIAN

OFFSHORE OIL PRODUCTION

7 UNITSOPERATING IN BRAZIL

1,700 EMPLOYEES IN BRAZIL

40%OF THE DAILY PRE-SALT

PRODUCTION

15 UnitsDELIVERED IN BRAZIL


7 Brazilian FPSOs in Operation

Cidade de

Anchieta

Espirito

SantoCapixaba

Cidade de

MaricáCidade de

Saquarema

Cidade de

Ilhabela

Cidade de

Paraty


Top-10 Brazilian Producing UnitsBOPD as per July 2018

151k146k 145k 144k

136k130k

120k

111k 110k

77k

FPSO CIDADE DE

MARICÁ

FPSO CIDADE DE

SAQUAREMA

PETROBRAS 58 PETROBRAS 66

(P-66)

FPSO CIDADE DE

ILHA BELA

FPSO CIDADE DE

ITAGUAÍ

FPSO CIDADE DE

PARATY

FPSO CIDADE DE

MANGARATIBA

FPSO CIDADE DE

SÃO PAULO

PETROBRAS 52

Source: Data from ANP Public Reports


Production Evolution in Brazil

SBM is a key oil

producer in Brazil

- Espadarte

+ Anchieta + Paraty

- Brasil

+ Ilhabela + Maricá + Saquarema+ Capixaba

(Cach.)

Data source: www.anp.gov.br

- MLS

> 600,000 bopd

SBM DAILY OIL

PRODUCTION IN BRAZIL

> 45%OF THE DAILY PRE-SALT

PRODUCTION

> 25%OF THE DAILY BRAZIL

PRODUCTION IN MAY

7FPSOs IN BRAZIL


Q&A

Documents

SBM Offshore UBS Presentation Brazil December 10, 2018 · SBM Offshore UBS Presentation Brazil December 10, 2018 Author: Luten, Aarne Created Date: 12/12/2018 5:30:42 PM