Investor Presentation Fourth Quarter 2013 KCA Deutag is a leading - PowerPoint PPT Presentation

Investor Presentation Fourth Quarter 2013 KCA Deutag is a leading international drilling and engineering company working onshore and offshore with a focus on safety, quality and operational performance www.kcadeutag.com

Disclaimer The distribution of this presentation in certain jurisdictions may be restricted by law. Persons into whose possession this presentation comes are required to inform themselves about and to observe any such restrictions. This presentation contains forward-looking statements concerning KCA DEUTAG. These forward- looking statements are based on management’s current expectations, estimates and projections. They are subject to a number of assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from any future results and developments expressed or implied by such forward-looking statements. KCA DEUTAG has no obligation to periodically update or release any revisions to the forward-looking statements contained in this presentation to reflect events or circumstances after the date of this presentation. 1

Agenda 1 Key highlights 2 Commercial developments 3 Business overview 4 Group results 5 Summary 2

An excellent Q4 completed a strong year of development for KCA Deutag • 2013 revenue of $2.2bn and EBITDA 1 of $304m. 1 EBITDA 1 growth was 18% • Improved operational and financial performance 2 from all core business units • Strong market position across highly attractive KCA Deutag has 125 years 3 international markets and key territories of experience as one of the world’s leading onshore and offshore drilling and • Contract backlog of $7.9bn on 1 March 2014 across 4 a blue chip customer base engineering contractors, operating safely in key markets and new territories • Successful lender consent request extended 5 maturities on $325m of debt • Net debt/LTM EBITDA leverage fell from 4.8x at Q3 6 2013 to 4x by the close of the year 1 EBITDA excludes results from the Ben Avon jack-up which was disposed of in March 2013. 3

KCA Deutag is a diversified business across onshore and offshore Onshore (c.50% of EBITDA 1 ) Offshore (c.50% of EBITDA 1 ) Land Drilling Bentec Platform Services RDS MODU Segment description  Leading international  Design and manufacture of  Leading global platform  Design and refurbishment of • Owns and operates fleet of 2 premium drilling contractor premium land rigs and key service operator outside of offshore drilling facilities and jack-ups and 3 barge type components North America MODUs self erecting tender (SET)  High end fleet of 53 drilling rigs and 4 workover rigs 2  Capacity for 12-16 rigs and  39 platform rigs under  Engineering from concept to  A sale and purchase top drive capacity increased management commission  Track record of executing during 2013 to a capability of agreement to sell two of the  Operations in UK North Sea,  Employs c.800 engineers complex wells in harsh Group’s subsidiaries which c.50 top drives per annum environments Norway, Russia, Azerbaijan, and support staff globally own and operate the 3  Provision of after sales Angola and Myanmar barges was signed on 4 services March 2013 45% 8% 27% 16% 4% EBITDA 1 2013 Contract tenor 1 – 3 years 1 - 5 years with options n/a 3 - 5 years with options n/a Asset ✓ ✓ ✓ light Over 50% EBITDA 1 generated in asset light businesses 1 EBITDA excludes results from the Ben Avon jack-up which was disposed of in March 2013 and is stated before normalisation adjustments and excluding central overheads of $53m. 4 2 Compares to 54 drilling and 9 workover rigs (Q3 2013). Difference due to the retiral of 1 drilling and 5 workover rigs in Libya which have not worked for the last 3 years and will not be restarted.

Continued strong market position and balanced portfolio of assets across highly attractive international markets Azerbaijan 8 platforms Norway 11 UK North platforms Sea 14 St. platforms Johns Russia 15 rigs Bergen Tyumen Aberdeen (HQ) Stavanger Netherlands Bad Houston 2 rigs Bentheim London Sakhalin Ben Loyal Kazakhstan 3 platforms Germany Albania jack-up rig 1 rig 2 rigs 1 rig Baku Spain Iraq / 1 rig France Kurdistan 1 rig 4 rigs Algeria Pakistan 6 rigs 2 rigs Myanmar 2013 EBITDA 1 split by region Presence in key regions Libya Dubai 1 platform Nizwa 4 rigs Oman Years Other Nigeria 6 rigs Glen Affric SET rig 6 rigs 9% 120 Brunei Glen Esk SE Asia Gabon Glen Tanar 1 rig Europe (inc North SET rig SET rig 1 rig 10% 90 Sea) 23% Ben Rinnes Kuala Lumpur Angola jack-up rig Middle East 126 60 2 platforms 11% Africa 14% 30 55 50 40 Russia Caspian 15 20% 0 13% Europe North Middle North Russia Africa East Sea Regional offices Land Drilling Platform Services RDS offices MODUs Bentec 1 EBITDA excludes results from the Ben Avon jack-up which was disposed of in March 2013 and is stated before normalisation 5 adjustments and excluding central overheads of $53m. Map excludes work over land rigs, defined as being below 900HP.

Consistently strong health, safety and environmental performance is a key differentiator Total Recordable Incident Rate KCA Deutag IADC Average 2.00 1.80 Consistently below the industry 1.60 average TRIR 1 – confirms our  1.40 dedication and commitment to safe, 1.20 effective and trouble-free operations TRIR 1 1.00 History of over 125 years of complex 0.80  drilling operations under harsh operating conditions 0.60 0.40 Reputation and track record critical to  supporting our leading market position 0.20 and ensuring repeat business 0.00 2008 2009 2010 2011 2012 2013² 1 Total Recordable Incident Rate is directly comparable with IADC’s Total Recordables (RCRD) statistic. 2 2013 IADC and KCAD statistic available to Q4 2013. 6 Note: TRIR stands for Total Recordable Incident Rate (per 200,000 man hours); IADC stands for International Association of Drilling Contractors.

Healthy backlog providing high level earnings visibility for the future Contract backlog 1 as at 30 September 2013 Contract backlog 2 as at 1 March 2014 $462m $1,033m $6,182m $1,310m $980m $5,610m $7,899m $7,677m 8,000 8,000 6,000 6,000 $4,207 $3,976 $3,841 4,000 4,000 $4,015 2,000 2,000 $3,702 $3,692 $51 $141 $114 $2,341 $21 $1,595 $1,258 $919 $839 $442 0 0 $m $m 2013 2014 2015 and thereafter Total backlog 2014 2015 2016 and thereafter Total backlog Contract Option Contract Option Contract backlog 1 by BU Contract backlog 2 by BU $103m $12m $175m $173m Land Drilling $1,176m $71m Land Drilling $1,726m Bentec Bentec $251m Platforms Platforms RDS RDS $5,737m MODUs MODUs $6,154m Updated Methodology • Methodology per the OM issued in May 2013 dictated that revenue generated during the financial year be included for the purposes of the backlog calculation. We have employed new methodology which ensures that the calculation is strictly forward looking. 1 Q3 2013 backlog has been restated for the updated methodology. 7 2 Backlog excludes revenue secured for the barges.

Significant new contracts – Bentec, Algeria Construction of seven onshore desert drilling rigs, all fully equipped with Contract nature Bentec equipment, including top drives, pumps, drawworks, power control rooms and electrical controls Contract length & Rigs to be delivered within the next 17 months timeframes Customer Enafor Largest single contract in Bentec’s history Contract value “ We are extremely proud to have secured our largest deal since the company was established in 1994. We work hard to maintain the highest quality standards across our drilling rig systems and this success is testament to that, the services we provide and our continued commitment to developing additional business in Algeria .” Dirk Schulze, Chief Executive Officer, Bentec 8

Land Drilling – making a significant contribution to strong Q4 results Financial Performance to 31 December 2013 Q4 Q4 2013 2012 Variance Variance 2013 2012 YTD YTD $m $m $m % $m $m $m % Revenue 185.7 146.4 39.3 26.8% 684.8 567.2 117.6 20.7% 46.4 37.3 24.4% 160.6 141.9 EBITDA 9.1 18.7 13.2% Margin 25.0% 25.5% 23.5% 25.0% • Sustained strong Q4 performance with utilisation at 85% 1 for the quarter • Continued good results from Africa due to two new rigs that came online Q2 and Q3. Other countries in region have also experienced good utilisation and day rates in the quarter • Europe and Russia both saw good results due to utilisation and increases in Combined Drilling Services in the Russian business • The Middle East saw a softening in results for the quarter as non-productive time and rig moves reduced both utilisation and earnings 1 85% utilisation includes the 6 Libyan rigs (re-entry to the Libyan market is ongoing). Excluding the 6 Libyan rigs the 9 utilisation figure is 91% for Q4 2013.