2015 Pareto Oil & Offshore Conference 2 Sep. 2015 - Oslo Norway - PowerPoint PPT Presentation

2015 Pareto Oil & Offshore Conference – 2 Sep. 2015 - Oslo Norway Bart Heijermans - CEO Navigating the crowded high seas

Navigating the crowded high seas Forward-Looking Statements This presentation contains certain statements that may be deemed to be “forward -looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. These include statements that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, general industry conditions, future results of the Company’s operations, capital expenditures, asset sales, expansion and growth opportunities, financing activities, debt repayment and other such matters. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Although the Company believes that its expectations stated in this presentation are based on reasonable assumptions, actual results may differ materially from those expressed or implied in the forward-looking statements. The forward-looking statements are subject to a number of known and unknown risks and uncertainties, including the performance of contracts by suppliers and customers; delays, costs and difficulties related to customer projects; actions by governmental and regulatory authorities; operating hazards and delays; employee management issues; local, national and worldwide economic conditions; uncertainties inherent in the exploration for and development of oil and gas; complexities of global political and economic developments; volatility of oil and gas prices and other risks. Each forward-looking statement speaks only as of the date of this presentation, and the Company undertakes no obligation to publicly update or revise any forward-looking statement. www.deepoceangroup.com 1

Navigating the crowded high seas From last year’s DeepOcean presentation at Pareto Conference… www.deepoceangroup.com 2

Navigating the high seas Could have been worse…. 2015 SAIL AMSTERDAM – SAIL IN 2015 SAIL Amsterdam www.deepoceangroup.com 3

Navigating the crowded high seas Brief introduction to DeepOcean – a subsea services company  A leading provider of integrated subsea services  Focused on the lower risk subsea service niches with inherent day-rate nature of contracts  Revenues predominantly exposed to end-user OPEX budgets  A market leader in diverless subsea IMR in the Greater North Sea  A global leader of trenching services  Recognized global brand for relentless customer focus and operational excellence having operated in the sector since the 1990s Service lines Survey & Seabed Subsea IMR Decommissioning Seabed Mapping Intervention Installation www.deepoceangroup.com 4

Navigating the crowded high seas Safety Lagging Indicators YTD (as of 31/07/2015) Per 1.000.000 hours 4 3 2,51 2.46 2,24 2.09 2 1,49 1.08 0.92 0.83 1 0.65 0.25 0 2011 2012 2013 2014 2015 LTIF TRIF www.deepoceangroup.com 5

Navigating the crowded high seas Company Factsheet Vessels Human Resources ROVs / AUVs Trenchers & Ploughs  Owned: 6  37 ROVs  5 ploughs  ~1,250 employees  Chartered:11 (+2 in’16)  3 ROVs ordered for  7 jet trenchers  ~100 full time agency delivery in 2015/2016  4 mechanical cutters personnel / Current Operations  2 AUVs contractors  11 offices in 7  Norway 2014 Financials Other Assets countries  UK  $635 million revenue  Module handling  Netherlands systems (3 off)  $86 million Adj. Ownership EBITDA  Germany  Geotechnical rig  Private Company  Mexico  10% ROCE  Excavators / dredgers  Financial Investors  YE $22 million net  Brazil  Mattress frames  Largest owner ~16% debt and LR < 0.25  Ghana of shares  ROV tooling  Malaysia www.deepoceangroup.com 6

Confidential – Not for Public Dissemination Navigating the crowded high seas Current Operations and offices Edda Flora Edda Fauna Deep Helder Volstad Surveyor Deep Vision Go Pegasus Havila Phoenix Maersk Recorder Deep Investigator Northern Wave Rem Ocean Atlantic Challenger Volantis Arbol Grande Long term ROV operations on: Owned  North Sea Giant (North Sea Shipping)  Normand Ferking (Solstad) Chartered  CBO Isabella (CBO) Deep Endeavour Rem Forza Tau Office locations Note: Walker1 not included and Northern Wave is cold stacked www.deepoceangroup.com 7

Navigating the crowded high seas Our Services IMR Replacement of flexible risers Diverless Operations FPSO Thruster Replacement Subsea weld NDT Pipeline Validation Scale squeeze www.deepoceangroup.com 8

Navigating the crowded high seas Our Services Survey AUV Ops in Brazil Laser and Sonar Survey Survey of manifold using ROV mounted laser www.deepoceangroup.com 9

Navigating the crowded high seas Our Services Installation Installation and burial of ~535km of cables and Installation of turning umbilicals on Snorre PRM Project bollards on Shell Malakai Project XMAS Tree installation on TEN Project in Ghana Cable installation on Valhall Project Mattress installation Vietnam www.deepoceangroup.com 10

Navigating the crowded high seas Our Services Decommissioning Removal of Statfjord Loading Buoy Gassco H7 platform removal www.deepoceangroup.com 11

Navigating the crowded high seas Offshore Renewables and Interconnectors Commissioning Installation Trenching IMR Anode installation Trenching with PT1 in German market Havila Phoenix Installation of power Annual Survey cable Onshore tests PCP2 www.deepoceangroup.com 12

Navigating the crowded high seas Foundations Framework Agreements in GNS Operations in Mexico & Brazil IMR, Survey and installation services IMR, survey and installation services Offshore Renewables and Interconnectors Projects Africa Largest fleet of cable lay and trenchers Successful start in Ghana www.deepoceangroup.com 13

Navigating the crowded high seas Offshore Renewables and Interconnector cables Forecasted cumulative fully commissioned Planned HVCD Interconnectors offshore capacity NW Europe (GW) 35 GW UK Germany Netherlands 10 GW 2024 2015 Our Services Route Surveys Cable Installation Cable Burial IMR www.deepoceangroup.com 14

Navigating the crowded high seas Most powerful track and buoyant trenchers T3200 UT1 Mechanical Ploughs Jet trenchers   7 Off 5 off  4 Off   ROV Pipeline  ROV   Track Cable  Track Picking the right tool for the job www.deepoceangroup.com 15

Navigating the crowded high seas Cable Installation Vessels Maersk Connector with 7,000 te. carrousel Maersk Recorder Edda Freya Havila Phoenix Volantis Cable tanks 3,000 e. Carrousel 2,000 te. Carrousel www.deepoceangroup.com 16

Navigating the crowded high seas Innovation Optime Subsea Services AS Survey Subsea Laser Data Acquisition Superior Survey ROV and 3D visualization AUV Operations Installation Light Completion Intervention System AUV3000 with HISAS capabilities Increased number of smart A multipurpose tool for installing, testing started operations on Libra project mattress installation frames and operating subsea equipment such as in Brazil XT’s, Choke Modules and Manifolds www.deepoceangroup.com 17

Navigating the crowded high seas Developments What likely will happen…. What should happen.. Industry Industry DeepOcean  Reducing cost  Consolidation  Fewer contractors and more lay-offs  Rebalance asset  Horizontal AND vertical  Asset transfers from portfolio. Right to release collaboration 5 vessels in 2016. Shrink overleveraged companies  Standardization before growth to stronger companies  Innovation  Continue focus on  More vessels..  Cost deflation and innovation to increase  Vessels under construction productivity and lower change of work  New orders because of cost practices cheap NOK, hungry yards and construction financing  Secure more work in  Proper risk sharing  Horizontal integration offshore renewables and  Retirement of old  Risk transfer from interconnector markets vessels and cease customers to contractors  Grow IMR 2 and survey building new vessels  Identify distressed assets www.deepoceangroup.com 18

Navigating the crowded high seas Our focus  Safety of all employees and other stakeholders  Liquidity  Cost deflation  Innovation  Operational excellence  To close contracts with total value in excess of $250 million in 3Q2015 DeepOcean is well positioned to weather the prolonged downturn due to its (i) client base, (ii) diversification of service offers and end markets and (iii) balance sheet www.deepoceangroup.com 19

Navigating the crowded high seas Follow DeepOcean Group on Twitter @deepoceangroup Q&A Join the discussion on LinkedIn: www.linkedin.com/company/deepocean More than 25,000 followers http://www.youtube.com/deepoceanonline www.deepoceangroup.com www.deepoceangroup.com 20