Strategy Presentation â€“ September 2012 Pareto - SBM Offshore

© SBM Offshore 2012. All rights reserved. www.sbmoffshore.com

Strategy Presentation, September 2012


Disclaimer

Some of the statements contained in this presentation that are not historical facts are statements of future expectations and other forward-looking statements based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those in such statements. Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of the Company’s business to differ materially and adversely from the forward-looking statements.

Should one or more of these risks or

uncertainties materialize, or should

underlying assumptions prove incorrect,

actual results may vary materially from

those described in this presentation as

anticipated, believed, or expected. SBM

Offshore NV does not intend, and does not

assume any obligation, to update any

industry information or forward-looking

statements set forth in this presentation to

reflect subsequent events or

circumstances.

2


Agenda - Who we are, where we are - Challenges and opportunities - Our Strategy


Who we are, where we are

4


SBM Offshore No.1 FPSO player worldwide

5

Financials FY 2011 in US$

Turnover 3.2 billion

Backlog 16.9 billion

Market Cap 3.53 billion

Performance

200+ years of operations

99.1% Uptime

1 million barrels of throughput per day

4,734 Tanker Offloads (3.7 bln barrels)

The Company

4 Project execution centres

9 Shore bases

4 Representative offices

6,220 Employees

Lease Fleet

15 FPSOs

2 FSOs

1 Semi Sub

2 MOPUs

5


Key Figures Half year 2012 (In millions of US$)

H1 2011* H1 2012

* H1 2011 results are restated for comparison purposes

2,480

872

New orders

FY 2011

1,4611,670

Turnover373

335

EBITDA

-201

223

EBIT

-251

158

Net Profit

16,910 16,109

Order portfolio

6


Order portfolio backlog (in US$ bln)

30%

1%

69%

0

2

4

6

8

10

12

14

16

18

Turnkey Systems Turnkey Services Lease & Operate

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

20

26

20

27

20

28

20

29

20

30

20

31

20

32

20

33

20

34

L& O Backlog

2012 2013 2014

Turnkey Backlog

*

US$ 2.3 billion expected to be executed in the second half of 2012

*

* 2012 includes H1 2012 turnover and H2 2012 backlog

7


Financial Outlook 2012

• Turnover in the region of US$ 4 billion

• Turnkey Systems EBIT margin close to 10% range, reflecting new gross

margin recognition principles

• Turnkey Services EBIT margin in the 15%-20% range

• Lease and Operate EBIT margin in-line with 2011 underlying level

• Net financing costs (in P&L) close to twice the level of 2011 due to

operating fleet growth

This guidance is premised on no material change in the performance, or

delivery, of the Group’s projects.

8


Challenges and opportunities High demand for complex FPSOs Unsustainable industry returns

9


What’s happening?

Source: Goldman Sachs

Deepwater needs high technology solutions

0

5000

10000

15000

20000

25000

30000

Onshore 0-500 500-1000 1000-1500 1500-2000 2000+

i

n

M

n

b

l

s

Oil discoveries in giant fields within the last 6 years by water depth

10


Floating Production Solutions

(source: Petrobras, PFC Energy)

FPSO is the favorite solution for offshore field development

FPSO 60%

Semi 19%

Spar 7%

TLP 10%

Other 4%

11


Size of the prize

The sector is primed for solid growth in coming years with a CAGR of

demand in the 6-10% range

Source: Pareto research

12


FPSO market outlook Field developments with FPSOs over the next 3 years

More than 60 FPSO projects to be awarded,

SBM targets around 20 out of them to obtain a fair share

August 2012

(source: internal analysis)

Lease

Sale

Lease or Sale

7

9

13 3

6

4

1 1

4

8

2

2

2

13


FPSOs are getting heavier

Our clients are more and more technology demanding

SBM addresses this challenge


0

5000

10000

15000

20000

25000

1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

To

ps

ide

s W

eig

ht

(to

n)

Year of first oil

Kuito

Espadarte

Xikomba

Falcon

Marlim

Sul

Serpentina

Cd de Paraty

Capixaba

P 57

Mondo

Saxi N’Goma

Cd de Ilhabela

Rang Dong

Kikeh

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Getting complex



15




More demanding


Turrets – Swivel stack size

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FPSOs are not a commodity

Full life production solution

Qualitative differentiation

Non exchangeable

Bespoke solutions for full product lifecycle

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Challenges and opportunities High demand for complex FPSOs Unsustainable industry returns

18


FPSO: unsustainable industry ranking

Total Shareholders Return for FPSO industry negative

TSR Peer Group Ranking 2007 – 1H2012, %CAGR

-24.9%

-14.1%

-13.9%

-7.2%

-6.8%

-5.0%

-3.9%

-3.9%

-2.7%

1.9%

2.0%

2.2%

6.0%

9.5%

14.3%

14.6%

16.0%

16.5%

16.9%

20.3%

22.2%

24.4%

31.1%

-50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

BW OFFSHORE

SBM OFFSHORE

HELIX ENERGY SOLUTIONS

TEEKAY

AP MOELLER-MAERSK

MODEC

JACOBS ENGINEERING GROUP

MCDERMOTT INTL

AKER SOLUTIONS

SUBSEA 7

KBR

FOSTER WHEELER

CHICAGO BRIDGE & IRON

FUGRO NV-CVA

TECHNIP

WORLEY PARSONS

AMEC

SAIPEM

WOOD GROUP (JOHN)

OIL STATES INTERNATIONAL

OCEANEERING INTL

FMC TECHNOLOGIES

PETROFAC

SBM OFFSHORE

BW OFFSHORE

TEEKAY

AP MOELLER-MAERSK

MODEC

(source: Bloomberg, internal data)

19


FPSO: industry in need of transition

FPSO industry shows more down side than upside

(source: SBM internal analysis)

6 FPSO players – Return on Total Assets

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

2007 2008 2009 2010 2011 5yr avg

SBMO Modec BWO Teekay Aker Floating Production Bluewater Group

20


Our Strategy

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FPSO

FPSO

FPSO About our Strategy: The Company has refocused its product line on core FPSO products and associated services. By focusing on core products with historically good margins whilst improving execution standards and project risk profiles, the Company believes it will return to delivering superior financial returns.

22


Supply side

0

1

2

3

4

5

0 20000 40000 60000 80000 100000 120000 140000

Aw

ard

s w

on

Average production capacity (bpd) (Engineering complexity)

Few active players, strong technical and financing capacity differentiation

(source: internal analysis-30/06/2012)

FPSO market 2010-June 2012 Awards

23


SBM Offshore - Running head. 6pt Arial Regular SBM Offshore - Running head. 6pt Arial Regular

We deliver along the full product lifecycle

Product Life Extension

Leader in FPSO relocation

World class after sales

Operations

200+ years of experience

99+% production uptime

Largest international FPSO fleet

Installation

Dedicated fleet

Unparalleled experience

Extensive project capability

Construction

Strategic partnerships

Unrivalled project experience

Procurement

Integrated supply chain

Global efficiencies

Local sourcing

Engineering

50 years of industry firsts

Leading edge technology

24


Cidade de Anchieta

August 2012

25


August 2011

26


October 2011

27


Year-end 2011

28


Transformation

29


A growing workforce

Transformation needed to manage strong growth


0

1000

2000

3000

4000

5000

6000

7000

2005 2006 2007 2008 2009 2010 2011

SB

MO

To

tal W

ork

forc

e

30


Growing production volume

Transformation needed to manage strong growth


260,000

270,000

280,000

290,000

300,000

310,000

320,000

330,000

340,000

350,000

360,000

2007 2008 2009 2010 2011

Th

ou

san

ds

Annual production in barrels

SBM Offshore

31


Group transformation in progress

New organisation

profit and cash

flow accountable

Strengthened

management

team

Selective growth

in buoyant market

FPSO strategy

focus

Lead the industry transition towards improving risk/reward balance

32


Improving Risk/ Reward balance

• Growing market

• Attractive niche position

• Few players

• Not a commodity product

• Excellent operations (99.1% uptime)

• Unsustainable historic returns

Lead the industry transition towards improving risk/reward balance

33


Q&A

Documents

Strategy Presentation â€“ September 2012 Pareto - SBM Offshore