Full Year 2018 Results Presentation March 2019 ADES at a Glance - PowerPoint PPT Presentation

Full Year 2018 Results Presentation March 2019

ADES at a Glance WHO WE ARE • ADES International Holding (“ADES” or the “Group”) is a leading oil & gas drilling and production services provider Leading MENA- in the Middle East and North Africa (“MENA”) focused on based O&G Service creating value for E&P Players in the region Provider • Portfolio of services focused on offshore and onshore contract drilling, workover and production services • ADES specializes in acquiring and refurbishing legacy ‘fit for purpose’ offshore assets which (among other cost - Differentiated Low- saving measures) enable the Group to offer competitive rates to its clients Cost Business • Backed by a capable in-house refurbishment and Model maintenance team, the Group benefits from a highly- skilled and relatively low-cost workforce • The Group’s business revolves around providing tailored Customer-Centric solutions and superior service to its clients Approach • ADES’s offering is characterized by its commitment to global industry standards 2 ADES INTERNATIONAL HOLDING | Full Year 2018 Results Presentation

Resilient Business Model Supported by Lean Cost Structure Resilient Business Model Focus on Low Revenue (USD MN) Activity remains higher due to lower Cost of 206 break-even prices in the MENA region Production Areas than the global average Such as MENA Brent Crude (USD/bbl) 158 109 105 134 100 USD/bbl USD/bbl Focus on workover drilling and Focus on USD/bbl maintenance, mainly constituting OPEX Workover Drilling expenditure, which is typically less 101 & Maintenance cyclical than CAPEX expenditure 91 USD/bbl 75 46 USD/bbl ADES mainly assesses its potential 49 78 acquisitions through two methods: USD/bbl 51 ▪ Considered Buy-to-Contract Model – Securing 48 USD/bbl 19 the contract first, then finalising the USD/bbl Approach to 10 acquisition of the asset Acquisitions ▪ Contract Acquisition Model – Acquiring chartered assets with on- 2011 2012 2013 2014 2015 2016 2017 2018 going contracts Backlog (USD) Backlog (USD) Backlog (USD) Backlog (USD) Backlog (USD) Backlog (USD) Backlog (USD) Backlog (USD) 501 MN 7 MN 67 MN 225 MN 427 MN 1.2 BN 78 MN 117 MN Target backlog of 2x net debt – ensuring Backlog maintenance of a minimum level of 2014-18 liquidity to pay its contractual Management obligations at all times ▼ 53% ▲ 174% ▲ 212% Group EBITDA (1) Brent Crude Group Revenue 1EBITDA - Operating profit for the year before depreciation and amortisation, employee benefit provision and other provisions and impairment of assets under construction under construction 3 ADES INTERNATIONAL HOLDING | Full Year 2018 Results Presentation

Significant Barriers to Entry High Profile Client Base Solid Track Record World Class Qualifications Comprising a diverse range of leading Ranked #2 Offshore Jack-Up Driller in MENA (1) Adhering to Global best practice oil companies IOCs Memberships - No. of Rigs 18 (2) 14 13 ABS The Group’s 11 operational drilling Growing Market Share in KSA and Kuwait Onshore Drilling (2) ABS Class offshore fleet is either ABS certified or Certificate 10 NOCs currently pending 8% recertification 18% 7% 7 ISO Certification 5% 7  ISO 9001:2008 9% Certification 15% 4 ISO 29001:2012 11% Certification  4 11% 16% Company Pre-Qualifications 4 Independents ADES ADC Burgan Drilling Sinopec Nabors KDC 4 (3) ZP Arabia Saipem Others Note (1): By number of active rigs in March 2019; Source: Westwood Global Energy Group 21 March 2019 Note (2) “The number includes MOPU and Jack up Barge Note (3) “Others” is players with < 20 rigs, Source: Westwood Global Energy Group 21 March 2019 4 ADES INTERNATIONAL HOLDING | Full Year 2018 Results Presentation

Robust HSE Policies with Exemplary Track Record HSE Overview HSE Incident Statistics • As an oil and gas service provider, ADES is committed to complying 2016 2017 2018 with occupational health, safety and environmental care standards as a sign of its commitment to excellent quality service Total Working hours (‘000) 2,792 4,343 5,272 • The HSE Management System provides ongoing identification, Recordable injury rate (200,000 prioritization and control of any risk that may arise. This system 0.40 0.41 0.57 man-hours) establishes a continuous improvement process for the implementation of the HSE policy, leadership expectations and IADC worldwide RECORD 0.58 0.45 0.68 incident rate up to date core values HSE Management System Incident and Injury Free Workplace (IIF) To ensure that the Group continues to deliver exemplary safety and health standards, ADES has appointed a top tier HSE consultant to review the Group’s safety procedures and ensure its continued adherence to the highest safety standards. Improve Plan The consultants have carried out a preliminary safety culture assessment, which addresses the following topics: A full safety culture assessment through interviews of more than 45 employees from I cross section of ADES. Act Perform Plan IIF sessions in town, for the crews of three select rig sites as well as Cairo office 2 employees in. To be rolled-out in the KSA at a later stage Measure 3 Carry out IIF coaches training which shall be provided to ADES nominated IIF coaches Post-IIF sessions, Offshore unit visits to evaluate IIF measures have been adequately 4 employed ADES INTERNATIONAL HOLDING | Full Year 2018 Results Presentation 5

Markets & Asset Base 4 2 1 Onshore Offshore Offshore Country MOPU Rigs Jack-Up Rigs Jack-up Barge 3 1 Algeria (1) 8 -- -- -- Egypt 2 -- 6 1 1 3 KSA (4) 11 6 -- -- 4 Kuwait 12 -- -- -- ADES Operating Markets 5 Other (1)(3) (2) 3 1 -- -- ▪ The Group has presence in Egypt, Algeria, Kingdom of Saudi Arabia and Kuwait ▪ Most recently the group expanded its offshore and onshore 34 13 1 1 Total presence in KSA and entered Kuwait via the acquisition of select Onshore Rigs Offshore Rigs MOPU Jack-up Barge assets from Weatherford 49 Rigs in 4 Countries (1) ADES continues to work towards closing the acquisition of two remaining Weatherford rigs in Algeria, and two rigs in Iraq whi ch is closing imminently in Q1 2019. (2) Refers to ADM 260 rig which is planned to work in Egypt once operational. (3) Refers to ADES I which is currently used for tendering activity in Egypt. (4) The figure does not include the two new-build onshore rigs for which contracts were secured in February 2019. 6 ADES INTERNATIONAL HOLDING | Full Year 2018 Results Presentation

Highly Experienced Management Team ◼ Ph.D. Systems Engineering and Control, Case Western Dr. Mohamed Farouk Reserve University, USA Chief Executive Officer ✓ Senior Vice President , Invensys Operations ◼ M.Sc. Electrical Engineering and Control , Faculty of Management (Now Schneider Electric) Engineering, Cairo University, Egypt 27 Years ✓ Director, Global Engineering Excellence Centers ◼ B.Sc. Electrical Engineering , Faculty of Engineering, 2012 Cairo University, Egypt Aly Makhlouf Ahmed Mohy Hussein Badawy International Markets Director Egyptian Market GM Investor Relations Officer 28 Years 2014 24 Years 2009 10 Years 2016 Omar Saleh Mohamed Khalil Chief Strategy Officer Country Manager Country Manager VP Operations 12 Years 2016 44 Years 2012 Morcos William Shoukry El Sayed Legal Counsel VP Projects Project Manager Project Manager 14 Years 2015 38 Years 2013 Ahmed El Khatib Country Financial Country Financial Chief Financial Officer Controller Controller 21 Years 2017 Gamal Mohamed Ahmed Country HR Manager HR Director Country HR Manager 12 Years 2006 Mohamed Saad Maintenance Maintenance Maintenance Director Superintendent Superintendent 18 Years 2015 Amr Wafik HSE Director HSE Superintendent HSE Superintendent 22 Years 2009 Mohamed Hegawy Supply Chain Manager Supply Chain Director Supply Chain Manager 18 Years 2017 Mahmoud Habashi QMS Director QMS Manager QMS Manager 33 Years 2013 Ayman Ragai Chief Information Officer IT Manager IT Manager 27 Years 2016 Years of Experience Year Joined ADES ADES INTERNATIONAL HOLDING | Full Year 2018 Results Presentation 7

2018 FINANCIAL REVIEW ADES INTERNATIONAL HOLDING | Full Year 2018 Results Presentation 8

2018 Key Highlights – A Transformative Year In 2018 ADES Successfully Advanced its Long- term Strategic Ambitions… Entered a New Increased Total Number Successfully Finalised of Rigs by: ▲ 2.9x Market and Further Two Landmark Established Position in Acquisitions KSA (#14 to #41) … Supported by Industry Leading Operating and Financial Performance… FY 2018 Increased Total FY 2018 Robust Revenue: US$ 206m Backlog: ▲ 3x EBITDA: US$ 101m EBITDA Margin: 49.2% ▲ 30.4% (vs. FY 2017) (US$ 427m to US$ 1.2bn) ▲ 25.8% (vs. FY 2017) ▲ 57.9% (H218 vs. H1 18) … And Conservative Capital Structure and Exemplary HSE Track Record… Backlog /Net Debt: Improved Utilisation Further Invested in 2.9x Rate: 85% in FY 2018 HSE Culture vs. min 2.0x vs 78% in FY 2017 financial policy … Establishing a Robust Platform for Future Growth ADES INTERNATIONAL HOLDING | Full Year 2018 Results Presentation 9