20150902 Pareto Securities Conference

8/19/2019 20150902 Pareto Securities Conference

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PARETO SECURITIES CONFERENCE

David Dickson Chief Executive Officer

September 2, 2015


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Forward-Looking Statement

2

In accordance with the Safe Harbor provisions of the rivate Securities !iti"ation #eform $ct of 1%%5, &c'ermott cautions

that statements in this presentation which are forward()oo*in", and provide other than historica) information, invo)ve ris*s,

contin"encies and uncertainties that ma+ impact &c'ermotts actua) resu)ts of operations- .hese forward()oo*in"

statements inc)ude, but are not )imited to, statements about bac*)o", bids outstandin" and tar"et pro/ects and the

anticipated brea*down and timin" of award of such, and revenue pipe)ine, to the extent these ma+ be viewed as indicators

of future revenues or profitabi)it+, mar*et out)oo* and expected capita) expenditures in the industr+, the expected scope,execution, timin" and va)ue of pro/ects discussed herein, financia) foundation and )iuidit+, expected cash f)ows from

operations in 2015, expected benefits and savin"s resu)tin" from our cost savin" initiatives and expected benefits from our io

oi) and "as consu)tin" venture and etrofac a))iance, and 2015 "uidance with respect to revenues, operatin" income, capita)

expenditures, +ear(end cash ba)ances and other items- $)thou"h we be)ieve that the expectations ref)ected in those

forward()oo*in" statements are reasonab)e, we can "ive no assurance that those expectations wi)) prove to have been

correct- .hose statements are made b+ usin" various under)+in" assumptions and are sub/ect to numerous ris*s,

contin"encies and uncertainties, inc)udin", amon" others adverse chan"es in the mar*ets in which we operate or credit

mar*ets, our inabi)it+ to successfu))+ execute on contracts in bac*)o", chan"es in pro/ect desi"n or schedu)es, the avai)abi)it+

of ua)ified personne), chan"es in the scope, terms or timin" of contracts, contract cance))ations, chan"e orders and other

modifications and actions b+ our customers and business partners, difficu)ties executin" on the pro/ect, chan"es in industr+

norms and adverse outcomes in )e"a) and other dispute reso)ution proceedin"s- If one or more of these ris*s materia)ie, or

if under)+in" assumptions prove incorrect, actua) resu)ts ma+ var+ materia))+ from those expected- 3ou shou)d not p)ace

undue re)iance on forward()oo*in" statements- 4or a more comp)ete discussion of these and other ris* factors, p)ease see

&c'ermotts annua) and uarter)+ fi)in"s with the Securities and Exchan"e Commission, inc)udin" its annua) report on 4orm

10( for the +ear ended 'ecember 61, 2017- .his presentation ref)ects mana"ements views as of the date hereof- Except tothe extent reuired b+ app)icab)e )aw, &c'ermott underta*es no ob)i"ation to update or revise an+ forward()oo*in"

statement-


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cDermott Toda!

• $ vertica))+ inte"rated offshore and subsea en"ineerin" and

construction compan+ executin" pro/ects from concept to insta))ation

• Strate"ica))+ )ocated fabrication +ards and a versati)e marine f)eet

• Stron" )on"(term re)ationships with )eadin" ener"+ customers ")oba))+

693 years of innovative offshore infrastructure solutions


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7

arket O"t#ook

• Industr+ capex cuts expected to have "reater impact on new fie)d

deve)opments 8"reenfie)d9 and deepwater subsea activities

• :)oba))+, nationa) oi) companies continue to spend capita), even with

reduced commodit+ prices, to maintain production )eve)s andnationa) ob/ectives

• .imin" of new awards remains vo)ati)e as customers reeva)uate and

rec+c)e their portfo)io of pro/ects

• $n excess supp)+ of subsea vesse)s is resu)tin" in increased

competition in the re"ions that remain active

• 'ifferent "eo"raphies have varied out)oo*s and cha))en"es re)ative topro/ect economics

Managing assets and financial flexibility within a challenging macro environment


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E%tensive Fie#d Deve#o$ment E%$erience

;

Customerfocused solutions from concept to installation


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.#o/a# Foot$rint0 Loca# E%$ertise


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SUPER A1ORSNATIONAL OIL COPANIES

A Diverse and .#o/a# C"stomer 2ase

>

INDEPENDENTS

A1ORS

Customers with varying commodity price sensitivities and near"term ob#ectives


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S$ecia#i3ed F#eet o4 )5 6esse#s

7EA68 LIFT'!?2000@ A 'B50 A 'B62A 'B60 A 'B2<

FLE9-LA8$:I!E A E&E#$!' SE$ A O#.H OCE$ 102

RI.ID REEL-LA8O#.H OCE$ 105

CONSTRUCTIONSUPPORT:LAUNC7 2AR.ES

CS?10> A .hebaud Sea A I(;00 A I(;50

%

Multi"class group of versatile assets operating regionally and globally *Under construction


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Strategica##! Located Fa/rication 8ards

10$erving a variety of international and local mar!ets*Joint ventures

1E2EL ALI0 UAE


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PRO1ECT LIFEC8CLE

6 E R T I C A L L 8 I N

T E . R A T E D

T;e Com$#ete EPCI Pro


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Ic;t;!s= A Com$#ete C#ient So#"tion

12

• En"ineerin" scope( 500,000 man(hours from offices across

the ")obe• Procurement

( In excess of =;00 mi))ion of in(fie)deuipment procured

• Construction( 7> subsea structures and a #iser Support

Structure wei"hin" over 2 mi))ion man hours without a )ost

time incident

• 'emonstrated customer co))aboration

throu"h successfu))+ imp)ementedchan"e orders

• .he pro/ect is on schedu)e and profitab)e

&emonstrating solid pro#ect execution on one of the world’s largest $'() E*C% pro#ects


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16

Sa"di Aramco= L"m$ S"m Award

• !ar"est sin")e award in &c'ermotts&idd)e East histor+

• 4u)) sca)e ECI contract uti)iin"

specia)ied sha))ow water insta))ationvesse)s and fabrication +ards in'ammam and ebe) $)i

• Comp)ex pro/ect wor* in 7 offshorefie)ds, which is expected to be

comp)eted b+ 201>• ro/ect scope inc)udes

( 16 ac*et and dec*s( 20 )atform up"radesFe)ectrification( 60 mi)es of pipe)ine( 107 mi)es of cab)es and umbi)ica)s

( Over a +ear of 'erric* Bar"e da+s


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Fie#d or >ork >ork Pro


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=0

=100

=200

=600

=700

=500

=;00

=

72%

New Awards C;ange Orders

Bac*)o" #o))(off b+ ro/ect .+pe

'? 2ack#og and New Order Intake

Bac*)o" #o))(off b+ 3ear

15

In mi))ions

)irst two 8uarters of +,-. have increased +,-4 bac!log by 2- billion

5,000

6,


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?"arter#! Reven"es

2GM17 #evenue Brea*down 2GM15 #evenue Brea*down

%mproving execution in sia and on three Middle East pro#ects driving greater revenue recognition

= in mi))ions

1;

1GM17 2GM17 6GM17 7GM17 1GM15 2GM15

(*

*,*)@

(

@@(

)0(*,


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8= mi))ions9

$s of une 60, 2015

• =


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.#o/a# Leaders Uniting 4or Long-Term .rowt;

io oi# and gas cons"#ting

• ?enture between &c'ermott and :E Oi) :as

• Conceptua) and pre(4EE' en"ineerin" consu)tanc+

•

'esi"ned to de)iver c)ients "reater price and cost certaint+ onfie)d deve)opments

Petro4ac Strategic A##iance

• 4ive(+ear strate"ic mar*etin" a))iance to pursue

top(tier deepwater subsea, umbi)ica), riser andf)ow)ine pro/ects

• !evera"es &c'ermotts experience de)iverin"

)ar"e subsea ECI pro/ects, specia)t+ subsea f)eet

and fabrication capabi)ities

• rovides access to etrofacs top(tier,

u)tra(heav+ )ift, S(!a+ F (!a+ S' ;000 vesse)

$trategic and collaborative partnerships to provide efficient technical and cost solutions1>


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Cor$orate S"mmar!

• ?ertica))+ inte"rated ECI so)utions providin" more cost efficient and technica))+

stron" resu)ts for customers

• C)ear mar*et position in the re"ions where c)ients anticipated to spend capex in

the near(term

• Cost(savin" initiatives providin" f)exibi)it+ and )on"er(term financia) stabi)it+

• Strate"ic partnerships positionin" for )on"(term "rowth

1%


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22

Fa/rication and Insta##ation Overview

• .opsides and onshore modu)es

• ac*ets, pi)es and comp)iant towers

• .!s, S$#s, 4SOs

• Subsea hardware

• Heav+()ift

• 4)oatover insta))ation

• S(!a+, (!a+, 4)ex(!a+ and #ee)(!a+

•

Subsea insta))ation

Ca$a/i#ities Strategic 2ene4its

• !ar"e(sca)e fabrication faci)ities

and +ards throu"hout the wor)d

• $ versati)e vesse) f)eet of re"iona)

and ")oba) assets

• $bi)it+ to )evera"e )oca) content

reuirements

• Compan+(wide focus on hea)th,

safet+ and the environment

Operational oversight through all phases of the E*C% process


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2"siness Line

Segment C"stomer Contract Sco$e

Oi#:.as .reen4ie#d:2rown4ie#d

=21 bi))ion as of une 60, 2015

1 Inc)udes chan"e orders- .here is no assurance that bids outstandin" or tar"et pro/ects wi)) be awarded to &c'ermott

= in bi))ions

2ids O"tstanding and Target Pro N

G

))*

AE A E A A S A

)@'

@(

E P C I E P C O T 7 E R

)*5

5)5

))'

'(

,

NATIONAL

OIL

COPAN8

SUPER

A1OR

INDEPENDENT


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S"mmar! 2a#ance S;eet

27

?*H)* ?)H)@ ?'H)@

>52-% >00-7 -7

>667-2 >2;-5

1


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S"mmar! Income Statement

25

T8H)* ?)H)@ ?'H)@ 8TDH)@

New Orders )0(GGF, G,F *'F@ )0)'F5

2ack#og 50()F( 50,*F* 50)5(F5 50)5(F5

Reven"e '05((FG @@(F@ )0(*F@ )0@G,F(

.ross Pro4it ),FG ,@F( )')F( )GF(

Tota# S.A '(F @)F, *,F GGF@

#estructMin"F$sset sa)e 6


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arc; J)@ ."idance Revised ."idance

Reven"es =6-6 ( =6-; bi))ion =6-0 ( =6-6 bi))ion

O$erating Income =25 ( =50 mi))ion =50 ( =


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.he information contained herein is provided for "enera) information purposes on)+ and is not intended or to be construed as a warrant+,

an offer, or an+ representation of contractua) or other )e"a) responsibi)it+- &c'ermott has a po)ic+ of continuous improvement of its

products and services and reserves the ri"ht to chan"e information inc)udin" specifications and processes without notice-

IN6ESTORCONTACT

- 'arce+ &atthews

?ice resident, Investor #e)ations

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20150902 Pareto Securities Conference

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