Download - Presentation to shareholders sept 2015

Presentation to shareholders September 25, 2015

BOURBON

DISCLAIMER

This document may contain information other than historical information, which constitutes estimated,provisional data concerning the financial position, results and strategy of BOURBON. These projections arebased on assumptions that may prove to be incorrect and depend on risk factors including, but not limitedto: foreign exchange fluctuations, fluctuations in oil and natural gas prices, changes in oil companiesinvestment policies in the exploration and production sector, the growth in competing fleets, whichsaturates the market, the impossibility of predicting specific client demands, political instability in certainactivity zones, ecological considerations and general economic conditions.

BOURBON assumes no liability for updating the provisional information based on new information in light of future events or any other reason.

2 Meeting September 25, 2015

BOURBON IS INFLUENCED BY OIL PRICES

Oil price is above all a policy price

Oil revenues are key for balancing budgets of the largest producers

The decline in output from existing fields will make a recovery in investment unavoidable

Shale oil production is here to stay but has little influence on the rise in prices

The forecasts are unreliable given the very strong differences observed

Meeting September 25, 20153

_ Oil price is above all a policy price


0

20

40

60

80

100

120

140

1987 1992 1996 2000 2004 2008 2012 2015

Iraqi invasion of Kuwait

Reducing quotas OPEC

OPEC production cuts

Financial crisis

Attack 09/11

Source : IEA



_ Oil revenues are key for balancing budgets of the largest producers


Source : IMF, Deutsche Bank

Breakeven point for producing countries ($/bbl)

Source : Rydstad Energy

Breakeven point for production ($/bbl)

OnshoreMiddle East

OnshoreRow

OffshoreShelf

Deepwater

OnshoreRussia

Extra Heavy oil

NAMShale

Artic

OilSands

Bra Ultra Deepwater


_ The decline in output from existing fields will make a recovery in investment unavoidable : Shale oil production is here to stay but has little influence on the rise in prices


Source: Les Echos, AIESource: Présentation Schlumberger

US shale oil productionIn millions of barrels/day

IEA predictsproduction to decline 400,000 barrels/day nextyear


_ The forecasts are unreliable given the very strong differences observed


Source: Douglas Westwood


BOURBON IN A BOTTOM OF CYCLE

BOURBON has the greatest resistance capacity to adverse market conditions in relation to its competitors

BOURBON continue to focus on what he can control: operational excellence and costs reduction

The relative change of BOURBON’s share price remains favorable, despite a drop of 50% in one year

BOURBON maintains its objectives:› a stable and growing dividend› debt ratios maintained at satisfactory levels

BOURBON RESILIENCE FACTORS

Operational resiliencefactors

Local partnersand

Diversified client base

Operationalexcellence

Relative utilization rate

Diversificationby business

segment



_ Safety performance

OPERATIONAL RESILIENCE FACTORS

TRIR Objective per year

TRIR: total recordable incidents per one million hours worked, based on 24h/day

LTIR: total recordable accidents with work stoppage per one million hours worked, based on 24h/day

10

0,69

0,76

2,212,28

1,12

0,65 0,64 0,68 0,69

0,48

0,760,69

0,6

1,14

0,220,07 0,05 0,1 0,1 0,07 0,1

00

0,5

1

1,5

2

2,5

2006 2007 2008 2009 2010 2011 2012 2013 2014 30/06/2015

0,48

2,00

0,64

0,64

0,680,69

0,76

0,69

0,60

1,000,75

0,70 0,67

11

93%

94.3%94.5%

95.5%

96.4%

93.5%

95%

90%

91%

92%

93%

94%

95%

96%

97%

2011 2012 2013 2014 H1 2015

Technical availability rate for BOURBON fleet

Technicalavailabilityrateobjective




_ Diversification of types of business


59%

4%

23%

14%

30%

32%

21%

17%

20142006

Marine services (83%)

Marine services (86%)

Deep water vessels Shallow water vessels Crewboarts IMR


OPERATIONAL RESILIENCE FACTORS_ Relative supply vessel utilization rates/ focus on BOURBON


_ BOURBON client portfolio diversification


33,6%

13,3%

6,6%4,6%4,4%3,9%2,9%2,6%2,5%2,4%

23,2%

OTHERS

ENI

CHEVRON

MARINE NATIONALE

STATOIL

PETROBRAS

BP

NORSK HYDRO

SHELL

EXXON

TOTAL 19,0%

8,0%

7,0%

6,0%6,0%4,0%4,0%3,0%2,0%2,0%

39,0%

OTHERS

MARINE NATIONALE

MAERSK

SAIPEM

PETROBRAS

PERENCO

PEMEX

BP

EXXON

CHEVRON

TOTAL

20142006

JV

Project JV

Affiliates

15

_ A unique partner network




Financial resiliencefactors

« a stable familyshareholder base»

Value of $ and low interest rate

Maturity of business model and

free cash flow

Amount ofnet debt

Financial discipline



_ Maturity of business model

FINANCIAL RESILIENCE FACTORS

-800

-400

0

400

800

* Free Cash flow : Cash flows linked to operating activities – outflows linked to purchases of property, plant and equipment and intangible assets + inflows linked to disposals of property, plant and equipment and intangible assets

M€

-800

-400

0

400

800

2007 2008 2009 2010 2011 2012 2013 2014 E 2015 E 2016

vessel investmentscash received sale & leasebacknet investments

Asset smart Strategy

Net investment (vessels only)

Free cash flow*M€

JACCAR estimate January 2015


_ Net Debt


0

500

1000

1500

2000

2500

june 06 dec 06 june 07 dec 07 june 08 dec 08 june 09 dec 09 june 10 dec 10 june 11 dec 11 june 12 dec 12 june 13 dec 13 june 14 dec 14 e 2015 e 2016

M€

JACCAR estimate January 2015


_ Financial discipline


BOURBON ratios

2006 June 2013 2014 Objective

Net Debt / Equity 0.89 1.56 0.8 < 0.5

Net Debt / adjustedEBITDA

1.83 4.96 3.0 < 2

Rent / adjustedEBITDAR

- - 22 % 30 %


_ External factors : exchange rates & interest rates


0

1

2

3

4

5

6

1

1,2

1,4

1,6

2006 2007 2008 2009 2010 2011 2012 2013 2014 e 2015 e 2016

EUR/US$ Euribor 3M

JACCAR estimate, January 2015


21 Meeting September 25, 2015

Safety

Utilization rate

Balanced revenuesfrom market

segments

Diversified customerbase

Net Debt/FCFgeneration

Debt

Orderbook/EBITDA

External Factors -USD

BOURBON BOURBON vs competitors

Tidewater

Gulfmark

Farstad

Source: public data, BOURBON estimates


BOURBON VS THE MARKET ENVIRONMENT

Source : Pareto, IHSPetrodata, Farstad

Drop in OSV utilization rate Number of stacked vessels increasing

Utilization rateSupply vessels

(average June 2015)

BOURBON Tidewater GulfMark Hornbeck

81.9% 68.8% 65-70% 60.5%

AHTS+PSV(July 2015) BOURBON Tidewater GulfMark Hornbeck Farstad

# stacked vessels 23 54 16 18 6

% of fleet 10% 21% 22% 36% 11%

Source : IHSPetrodata, Bourbon, Sec filings


_ One year Stock performance - BOURBON vs competitors

BOURBON’S RESILIENCE RECOGNIZED BY THE MARKET

0

20

40

60

80

100

120

sept.-14 oct.-14 nov.-14 déc.-14 janv.-15 févr.-15 mars-15 avr.-15 mai-15 juin-15 juil.-15 août-15 sept.-15

Bourbon Tidewater Gulfmark Farstad

Base 100


_ The ability of a company to pay a dividend based on:

BOURBON: OUTLOOK ?

-Corporate accounts. Those of BOURBON have a distributable balance of €615 million at the beginning of 2015, nearly nine years of dividends

- The projected cash flow, excluding sales of vessels in future years. The generation of free cash flow shows that BOURBON has the necessary cash after taking into account its commitments (investments, loan repayments, financial expenses, taxes, ...)

-A good level of activity: the breakeven of BOURBON is well below the values required for the cash breakeven even at low part of cycle

The objective of a stable or slightly increasing dividend is very much within reach of BOURBON


BOURBON:THE DIVIDEND POLICY HAS ALWAYS BEEN RESPECTED

0

10

20

30

40

50

60

70

80

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

+ exceptionaldividend

M€Annual amount of dividends paid

X 5.2+ 18 % per year

13.8

71.6


BOURBON: OUTLOOK ?BOURBON confirms its debt reduction policy and free cash flow generation due to :

From a high level of EBITDA after rent payments, which reflects customer confidence (utilization rate) and cost control (proactive stacking of vessels, reduction of G&A)

A strong reduction in vessel investment, an average of 450 million for the last 8 years, to:

o 85 million in 2016o 50 million in 2017

Opportunity for vessel sales, with or without long term bareboat charter, to achieve the debt objectives as soon as possible:

o 0.5 debt ratio (Net debt/Equity)o 2 x EBITDA


_ BOURBON shareholders want a regular dividend growth, and when they have to sell, a price that reflects the economic value of the company: can the stock market play this role?

BOURBON : GROWTH & YIELD GO TOGETHER?

-

500

1 000

1 500

2 000

2 500

3 000M€ Market capitalization of BOURBON


CONCLUSION

BOURBON is well equipped to get through this low cycle of offshore markets and will continue to strengthen its resilience capacity

In the short term, BOURBON

- confirms its dividend policy

- confirms its debt reduction objectives and financial structure for the future

Beyond this, BOURBON will have to choose between various possible solutions to:

- Strengthen the capacity of constant and significant growth of its dividend

- Seek a valuation of the company inline, as much as possible, with its long-term economic value, and a form of liquidity at that price

Download - Presentation to shareholders sept 2015

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