First half 2013 results August 28 , 2013 BUILDING TOGETHER A SEA - PowerPoint PPT Presentation

First half 2013 results August 28 , 2013 BUILDING TOGETHER A SEA OF TRUST

Financial performance Laurent RENARD Executive Vice President and Chief Financial Officer 2 3/6/2013 Presentation of 1 s t half 2013 results

Solid results in the first half of 2013 In a favorable market, BOURBON continues to grow: ▌ Growth of the fleet ▌ Increase in daily rates ▌ High utilization rates ▌ Improved profitability 3 Presentation of 1 s t half 2013 results 8/28/2013

A stable and still favorable environment Oil price per barrel (US$) Oil & Gas investments € / US$ rate 140 1,4 120 1.31 113 107 1,3 110 1.30 100 1.27 80 1,2 H1 2012 H2 2012 H1 2013 H1 2012 H2 2012 H1 2013 Source: Inflied systems, BP 4 Presentation of 1 s t half 2013 results 8/28/2013

Solid results Change H1 2013 H2 2012 H1 2012 H1 2013 / H1 2012 Number of vessels * (end of period) 472 458 446 +6% In millions of euros Revenues 647.9 618.9 568.0 +14.1% EBITDAR excluding capital gains 223.0 202.3 180.8 +23.4% Bareboat charter costs (3.4) (0.7) - Gross operating income excluding capital gains 219.6 201.6 180.8 +21.5% Gross Operating Income (EBITDA) 221.0 225.4 180.8 +22.2% Operating Income (EBIT) 92.1 97.8 63.8 +44.4% Capital employed 3,642 3,495 3,456 EBITDA / average capital employed excl. installments 14.6% 16.1% 13.3% *Vessels operated by BOURBON (including vessels owned or on bareboat charter) 5 Presentation of 1 s t half 2013 results 8/28/2013

Solid results Change In millions of euros H1 2013 H2 2012 H1 2012 H1 2013 / H1 2012 Operating income (EBIT) 92.1 97.8 63.8 +44.4% (44.1) Financial income +36.6% (54.7) (32.3)  Cost of net debt (36.1) (38.2) (33.7)  Other financial income and expenses 1.4 (8.0) (16.5) Income tax (17,1) (15,1) (7,1) Net Income 30.9 27.9 24.4 +26.5% Minority interests (16.5) (3.0) (8.3) Net income (Group share) 14.4 24.9 17.0 -15.2% 6 Presentation of 1 s t half 2013 results 8/28/2013

Solid results ▌ EBITDAR (excluding capital gains) Sequential and year-on-year growth in both activities Continued growth of the fleet and increase in daily rates Continued high level of utilization rates Slight reduction in unit costs Favorable impact of changes in consolidation scope ▌ Financial income Slight increase in debt pending the disposal of 51 vessels Unrealized foreign exchange losses of - € 5.1m (vs. - € 18.9m in H2 2012 and - € 8.7m in H1 2012) ▌ Net income Impact of change in consolidation scope on minority interests 7 Presentation of 1 s t half 2013 results 8/28/2013

Marine Services Activity ▌ Sequential and year-on-year progress in all 3 segments ▌ Continued growth of the fleet and increase in daily rates year-on-year ▌ Continued high level of utilization rates ▌ Favorable impact of consolidation scope 8 Presentation of 1 s t half 2013 results 8/28/2013

Marine Services Activity Change H1 2013 H2 2012 H1 2012 H1 2013 / H1 2012 Number of vessels* (end of period) 452 439 428 +5.6% Utilization rate 83.2% 84.7% 83.2% - In millions of euros Revenues 527.3 511.8 460.4 +14.5% Direct costs (excluding bareboat charters) (295.2) (299.2) (269.7) +9.5% EBITDAR (excl. Capital gains) 175.9 161.6 142.6 +23.3% Costs of bareboat charters (3.4) (0.7) 0 Gross operating income excluding capital gains 172.5 160.9 142.6 +21.0% Gross Operating Income (EBITDA) +22.0% 173.9 184.7 142.6 % of revenues 33.0% 36.1% 31.0% EBITDA /average capital employed excl. installments 14.1% 16.2% 12.9% *Vessels operated by BOURBON (including vessels owned or on bareboat charter) 9 Presentation of 1 s t half 2013 results 8/28/2013

Subsea Services Activity ▌ Continued improvement in profitability ▌ 2 new “Bourbon Evolution” vessels in the fleet ▌ Continued increase in daily rates ▌ High utilization rates 10 Presentation of 1 s t half 2013 results 8/28/2013

Subsea Services Activity Change H1 2013 H2 2012 H1 2012 H1 2013 / H1 2012 Number of vessels (end of period) 19 18 17 +12% Utilization rate 89.2% 88.5% 87.7% +1.5 pt In millions of euros Revenues 109.0 97.9 92.1 +18.2% Direct costs (52.2) (50.1) (47.6) +9.7% Gross Operating Margin 56.7 47.8 44.5 +27.4% Gross operating income excluding capital gains 45.1 38.1 34.9 +29.3% Gross Operating Income (EBITDA) +28.9% 45.0 38.0 34.9 % of revenues 41.3% 38.8% 37.9% EBITDA /average capital employed excl. installments 17.5% 15.9% 15.1% 11 Presentation of 1 s t half 2013 results 8/28/2013

Transforming for Beyond: 1 st stage of financial component ▌ March 2013: transformation plan announced April 2013: agreement signed with ICBCL for the sale of 51 vessels August 2013: signed sale of the first 9 vessels for US$144m ▌ Impact on the financial statements at June 30, 2013: Income statement: no impact Balance sheet: adjusted presentation, the 51 vessels are included at the bottom of the balance sheet under “non - current assets held for sale” for a total of € 717m 12 Presentation of 1 s t half 2013 results 8/28/2013

Solid results ▌ In a favorable market, continued growth of the fleet and increase in daily rates; high utilization rates maintained ▌ Reduction in unit costs ▌ Implementation of plan to sell 51 vessels underway; this will help reduce debt rapidly and significantly by the end of the year 13 Presentation of 1 s t half 2013 results 8/28/2013

Activities Gaël BODENES Executive Vice-President and Chief Operating Officer 14 Presentation of 1 s t half 2013 results 8/28/2013

Solid indicators in a favorable market… BOURBON MARKET Controlled growth Shallow water strengthening High and improving safety 36 drilling rigs ordered in shallow water performances (TRIR = 0.54) offshore Average daily rates increasing in all Good activity in deepwater offshore regions BOURBON GLOBAL SUPPLY OF VESSELS Towards operational excellence Success of modern vessels Acceleration of the substitution process, A technical availability rate of 93.5% especially in Asia and the Middle East in shallow water offshore Deployment of the Transforming for 64 PSVs delivered in deepwater offshore beyond plan in 2013 15 Presentation of 1 s t half 2013 results 8/28/2013

… confirmed by improving safety results, 22 million hours worked in H1 2013 1.00 1.12 0.75 0.70 0.67 1.36 0.68 0.69 0.65 0.64 0.54 0.68 0.22 0.10 0.10 0.07 0.09 0.05 2008 2009 2010 2011 2012 H1 2013 TRIR objective by year TRIR: total recordable incidents per one million hours worked, based on 24 hours/day LTIR: total recordable accidents with work stoppage per one million hours worked, based on 24 hours/day 16 Presentation of 1 s t half 2013 results 8/28/2013 16

...a modern and reliable fleet, 471 vessels in operation Average age 6.1 years The Bourbon Petrel, a seismic support vessel, on sea trial Technical availability rate 2012 H1 2013 64 vessels Fleet total 94.3% 93.5% 95% on order Availability rate Figures at in line with objectives June 30, 2013 17 Presentation of 1 s t half 2013 results 8/28/2013

… new growth areas, North Sea: 11 vessels France: 8 vessels Americas Mediterranean 59 vessels Middle East - India +6 40 vessels +6 West Africa 307 vessels South East Asia 46 vessels +4 A worldwide presence 19 new deliveries over the 1 st half of 2013 Growth versus 12/31/2012 96% of vessels outside Europe (in number of vessels) 18 Presentation of 1 s t half 2013 results 8/28/2013

… higher rates and high utilization rates Higher rates In % In US$/d High utilization rates 100 21,000 92% 87% 2011 2012 2013 19,500 + 5% 75 18,000 50 16,500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Average daily rate Average utilization rate Data for Deepwater and Shallow water offshore segments and Subsea 19 Presentation of 1 s t half 2013 results 8/28/2013 19

Good activity in Deepwater offshore ▌ Market: Africa: strong demand for medium-sized PSVs, daily rates increasing Asia: increase in construction and drilling activities, strong demand for medium- sized PSVs North Sea: award of 20 licenses in the Barents Sea and 4 in Norway The Bourbon Calm in operation in Ireland on the Eirik Raude platform ▌ BOURBON: 73 vessels, including 2 delivered in the 1 st half Number of vessels Contractualization rate 78.1% as of 6/30/2013 20 Presentation of 1 s t half 2013 results 8/28/2013

… with rates continuing to improve High utilization rates Improving average daily rates In US$/d 100% $22,000 $21,000 92% 90% $20,000 87% $19,000 $18,000 80% $17,000 $16,000 70% $15,000 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Deepwater offshore Our objective is to maintain a high contractualization rate through long-term contracts at appropriate rates 21 Presentation of 1 s t half 2013 results 8/28/2013

Shallow water offshore continues to grow… ▌ Drilling rigs ordered H2 2011 H1 2012 H2 2012 H1 2013 13 14 12 36 ▌ Market: Increased demand for AHTS in Asia and the Middle East Active spot market in Africa Development of exploration campaigns in the Caribbean / Gulf of Mexico The Altamira and Alvarado, Bourbon Liberty 150 series vessels, in Mexico ▌ BOURBON : 109 vessels, including 7 delivered in the 1 st half Number of vessels Contractualization rate 67.3% as of 6/30/2013 22 Presentation of 1 s t half 2013 results 8/28/2013