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Site visit22 October 2019

Disclaimer

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This presentation contains certain forward-looking statements relating to the business,

financial performance and results of the Company and/ or the industry in which it operates.

Forward-looking statements concern future circumstances and results and other

statements that are not historical facts, sometimes identified by the words “believes”,

“expects, “predicts”, ”intends”, “projects”, “plans” “estimates”, “aims”, “foresees”,

anticipates”, “targets” and similar expressions. The forward-looking statements, contained

in this document, including assumptions, opinions and views of the Company or cited from

third party sources are solely opinions and forecasts which are uncertain and subject to

risks. A multitude of factors can cause actual events to differ significantly from any

anticipated development. Neither the Company nor any of its officers or employees

guarantees that the assumptions underlying such forward-looking statements are free from

errors nor does any of the foregoing accept any responsibility for the future accuracy of the

opinions expressed in this document or the actual occurrence of the forecasted

developments.

No representation or warranty (express or implied) is made as to, and no reliance should

be placed on, any information, including projections, estimates, targets and opinions,

contained herein, and no liability whatsoever is accepted as to any errors, omissions or

misstatements contained herein, and, accordingly, neither the Company nor any of its

subsidiary undertakings nor any such person’s officers or employees accepts any liability

whatsoever arising directly or indirectly from the use of this document.

9:00 Presentations and Q&A

11:00 Site visit

12:30 Lunch & Q&A

14:00 Return to hotel

19:00 Dinner

Day schedule

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Bidding update

Operations review

Q&A

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Presentations

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Bidding updatePeter Ireton

VP Business Development

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Process:

▪ BNB decisions based on strategic fit,

differentiation, competition and execution risk

▪ Proposal and estimating plan at bid kick-off,

mid point reviews (major bids), Operations

cost reviews and pricing reviews

▪ Project Manager owns cost, Sales own price

▪ ExCom cost approval for bids over $10m,

Board approval for bids over $100m

Team:

▪ Seasoned Sales, Proposals and Estimating

team, both long-term Lamprell (rigs, fabrication

& renewables) with key additions with EPCI

track-record

▪ All major proposals bid with multi-disciplinary

Proposal team including projects, engineering,

SCM, production, HUC** and commercial

▪ Bench/bid resources sourced from major

regional EPCI’s

Bidding approach

56%

14%

30%

LTA Renewables Rigs and O&G EPCI

Bid pipeline $6.3bn*

(FY 2018: $6.4bn)

$2.0 bn

$4.3bn

Renewables Oil and gas

Bidding budget allocation

*Engineering, Procurement, Construction and Installation

** Hook up and commissioning

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Lamprell focus:

▪ Interest from NOCs and Middle East clients,

opportunistic outside region

▪ Saudi Aramco: Priority bidding EPCI in

consortium with Boskalis

▪ ADNOC: Supplementary bidding Fabrication+

scope to other EPCIs

Market:

▪ Global market remains challenging for the

foreseeable future

▪ Healthy regional market driven by major

spending commitments of Aramco ($400bn) and

ADNOC ($133bn)

▪ LNG projects from US to Mozambique should

attract Far East fabrication interest

Oil & Gas

-60%

-50%

-40%

-30%

-20%

-10%

0%

Share price movement since

September 2018

* Source: Factset, Pareto Securities Conference 2019

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Bidding process:

▪ 10-15 CRPOs per year circa $3bn value

▪ Everyone must bid, bid preparation time 15-

30 weeks depending on CRPO** complexity

▪ Issued bid to decision lead time of 6-9

months

Participants

▪ LTA 1 2007-2015: McDermott & Saipem

▪ LTA 2 2016-2021: NPCC, Dynamic and

L&T/SS7 added

▪ LTA 3 2018-2024: Lamprell/Boskalis, COOEC,

Sapura & Technip/MMHE added

Pre-qualification process:

▪ Aramco field decline rates & production targets

require increased spending to maintain

production – more LTA* contractors needed

▪ Year-long technical and commercial process,

detailed unit rate pricing basis for award

▪ Lamprell/Boskalis added November 2018

Saudi Aramco - LTA process

$40bn in the

Arabian Gulf

$27bn in the Red

Sea

Approved Offshore CAPEX

* Long Term Agreement ** Contract release purchase order

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Bidding focus:

▪ 8 CRPOs submitted since joining LTA

▪ 2 bids under preparation

▪ Lamprell EPC of offshore structures (jackets and

topsides), HUC

▪ Boskalis subsea pipelines and cables, transport and

installation

LTA current status

CRPO scope example

* Contract release purchase order

Jacket

Topside

Replacement deck module

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Land rigs

▪ Both ADNOC and Aramco production targets

require extensive drilling campaigns and

new-build rigs will be part of the solution

▪ ADNOC unconventional drilling plans also

fuelling the program of up to 60 new rigs from

2020

Newbuild jackup rigs

▪ Drillers focused on surviving & repairing

their balance sheets, no new build foreseen

▪ Aramco ARO JV committed to build 20 rigs

through IMI yard

▪ ADNOC reportedly looking to source 16 new

rigs, combination of acquire stranded assets

and new build

▪ Pricing under pressure until stranded assets

removed from market

Rig market

Modern Heavy Duty & Standard Duty Jackups*

*IHS MarkitRigPointas of August2019; Wells Fargo Securities as of August 2019

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Target markets

▪ Jacket based wind farm projects, HVAC/HVDC

and component fabrication (transition pieces)

▪ UK/Europe remains leader in market

▪ Growth exploding in many other countries – US,

Korea, Japan, Taiwan etc.

▪ Floating wind next

Renewables

Lamprell advantages

▪ Cost competitive fabricator with proven,

bankable execution approach

▪ Foundation and HVAC/HVDC wrap can elevate

Lamprell to EPCI

▪ Developing digital initiatives and robotics

Competitors

▪ Navantia (Spain)

▪ Smulders (Belgium)

▪ Saipem (UK/Indonesia)

▪ Far East – China and Korea entering market

RenewableUK Offshore wind June 2019

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UK Contract for Difference

▪ Allocation Round 3 completed in September

with strike prices competitive with spot pricing

– 39.6-41.6 £/MWh

▪ SSE/Equinor dominated the auction with

circa 3.5 GW awarded – first application of 12

MW GE turbines

▪ Non-CfD projects seeking merchant risk

financing models

▪ Round 4 launched, offtake will be main driver

now that cost base has reached parity with

other power

Renewables: current bidding

$2 billion pipeline

▪ Final stages of bids on a number of projects

▪ Projects similar in nature allowing for bidding

efficiencies, repeatable execution model

RenewableUK Offshore wind June 2019

Review of operationsHani Elkurd

Chief operating officer

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HSES Performance Journey

2012 2013

TRIR

0.30

0.15 0.16

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0.1

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0.4

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0.9

2014 2015 2016 2017 2018 2019

0.280.31 0.29

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0.1

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0.6

0.7

0.8

0.9

0.85

0.67

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The Beginning The BreakthroughThe Plateau

The Breakthrough (2017 - 2019)Change in leadership

Introduced ‘Back to Basics’

Introduced ‘Risk Mitigation Workshop’ with key personnel from various functions

Introduced ‘Interactive Personal Body Cameras’ for monitoring and training purposes

Improved quality of HSES Campaigns

Improved HSES programmes (‘Shields for Life’, SOAP, Take 5)

Implementation of ‘Safe Start’ and ‘Finishing Strong’ across Lamprell Group (Admin personnel and yard workforce) and Clients

Implementation of ‘Safe Start’ and ‘Finishing Strong’ across all projects

Introduced ‘Safe Start’ to Subcontractor and Labour Supply companies and implementation of ‘Pre-mobilisation’ programme

Successfully transitioned from OHSAS 18001:2007 to ISO 45001:2018

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Operational excellenceSignificant improvements to deliver on strategy

An organisational structure to support EPC execution

Process improvements to drive predictable project delivery

Deeper expertise in our areas of strategic focus

Significant investments made in yard development

Embedded a project-centric culture

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Operations team upskilled:

▪ Offshore Project Directors (LTA)

▪ Production Director (Offshore and renewables

experience)

▪ Engineering Director (LTA experience)

▪ HUC and commissioning team

▪ A full project management team with offshore

EPCI and installation experience

▪ LATC (Training Centre) expanded mandate

Operational excellence

Operations revised structure:

▪ Projects split into Rigs and EPCI

▪ Construction support separated from yard

management

▪ Introduction of Project Directors responsible

from bid stage to execution

▪ Introduction of hook up and commissioning

department

Organisational structure

Process

Talent

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Operational excellence

Key process changes

▪ Overhaul of project set up, project review

approach and change management

▪ Intensive risk and commercial

assessments

▪ Incremental yard investment to improve

efficiencies in renewables work

▪ Digital solutions:

▪ Lessons Learned management

system

▪ Workpack management system

▪ LAMQ: full electronic traceability and

quality management

▪ Robotic welding in final stages of

development

Lessons learned

Department improvement

plans

Lean 6 Sigma

initiatives

Digital initiatives

Cost competitiveness

Continuous improvement

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Facilities overview

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Hamriyah

Technical criteria:

▪ Total Area: 300,000 m2

▪ Quayside length: 1,250m

▪ Covered Area: 186,831 m2

▪ Covered Fabrication Shop: 20,345 m2

Purpose Built Facility in 2010 for

Constructing:

▪ Offshore Oil & Gas Topsides and

Structures

▪ Offshore Vessels and Barges

▪ New Build Offshore Drilling Rigs and

Refurbishment

▪ Land Drilling Rigs

▪ New 115,000 m2 automated pipe shop

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Sharjah – Port Khalid facility

Focus:

▪ FPSO* and FSO conversion -

process modules

▪ Onshore Pre-assembled Units

▪ Process skids

▪ Pressure vessels/tanks

▪ Offshore topside decks and

bridges

Technical criteria:

▪ Total Area: 165,000m2

▪ Covered Area: 13,734 m2

▪ Construction Area: 125,000 m2

▪ Quayside length: 310m

*Floating production storage and offloading

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Jebel Ali Free Zone

Technical criteria:

▪ Total Area:

163,000 m2

▪ Covered Area: 16,000 m2

▪ Construction Area: 145,000 m2

▪ Quayside length: 1,000 m

Purpose Built Facility in 2010 for

Constructing:

▪ Offshore Oil & Gas Topsides and

Structures

▪ FPSO and FSO Conversion - Process

Modules

▪ New Build Marine Structures

▪ Onshore Pre-assembled Units

▪ Land Drilling Rigs

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Investing in efficient operations

Key investments:

▪ 2 80m x 30m concrete fabrication pads

▪ 430m x 30m fabrication pad

▪ Can transfer system replacing the need for a forklift and

crane

▪ ESAB AC/DC Tandem square wave form control Column &

Boom with compact welding head – first of its kind supplied

from ESAB to the MENA region

▪ HHG pipe profile cutting machine – 200mm – 3000mm

Modest CAPEX in 2019:

▪ Introduction of multiple material flows for different product

types within the Hamriyah facility

▪ Efficient transfer of product from one location to another

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New technology

▪ R&D in robotic welding with two technologically

advanced robots

▪ Benefits in productivity, quality control, safety,

continuity

▪ Aligned with the digitization strategy that will

rapidly move into platform controls and machine

learning

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Rig Refurbishment Current Projects

Key Gibraltar – Conversion of Rig to MOPU

▪ Client: Geopetrol Mauritius/Zentech

▪ Spud can strengthening

▪ Leg Reinforcement

▪ Process equipment installation with related

piping/electrical works & commissioning

▪ Flare tower installation

▪ Reactivation of Marine systems

▪ Reactivation of Living quarters

▪ Recertification of life saving and lifting equipment

Key statistics

▪ 11 rigs arrived YTD

▪ 11 rigs departed YTD

▪ Currently stacking 12 rigs

▪ Average refurb value $3 m

▪ 3 offsite refurb projects

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Moray East

Milestone Dates

▪ Award of Contract – 20 December 2018

▪ Transfer first jackets from the yard to HAM port storage area – Q1 2020

▪ First client HTV vessel forecast arrival on HAM port in Q1 2020

▪ Final handover– expected H2 2020

Progress

▪ Project is now on the assembly / erection phase in both yards

▪ Procurement is almost completed, all the steel has arrived in UAE, E&I under

delivery.

▪ Project Progress is approximately 50%

Appendix

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Regional leader in EPCI

Lamprell is one of the largest EPIC contractors in the Middle East by manpower, facility space, and throughput capacities

Max Annual

Manpower Capacity

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Max Annual Fabrication

Throughput Capacity

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Total Yard Space

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IMI current view

IMI, October 2019