pareto conference- company presentation – september 2016

2016 Pareto Oil & Offshore Conference – 14 Sep 2015 – Oslo, Norway Bart Heijermans - CEO

Forward-Looking Statements

This presentation contains certain statements that may be deemed to be “forward-looking

statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A

of the Securities Act and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All

statements, other than statements of historical facts, are forward-looking statements. These include

statements that address activities, events or developments that the Company expects, projects,

believes or anticipates will or may occur in the future, general industry conditions, future results of

the Company’s operations, capital expenditures, asset sales, expansion and growth opportunities,

financing activities, debt repayment and other such matters. These forward-looking statements

generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,”

“strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will

likely result,” and similar expressions. Although the Company believes that its expectations stated

in this presentation are based on reasonable assumptions, actual results may differ materially from

those expressed or implied in the forward-looking statements. The forward-looking statements are

subject to a number of known and unknown risks and uncertainties, including the performance of

contracts by suppliers and customers; delays, costs and difficulties related to customer projects;

actions by governmental and regulatory authorities; operating hazards and delays; employee

management issues; local, national and worldwide economic conditions; uncertainties inherent in

the exploration for and development of oil and gas; complexities of global political and economic

developments; volatility of oil and gas prices and other risks. Each forward-looking statement

speaks only as of the date of this presentation, and the Company undertakes no obligation to

publicly update or revise any forward-looking statement.

Weathering the prolonged oil downturn

www.deepoceangroup.com 1



Brief introduction to DeepOcean – a subsea services company

Survey &

Seabed Mapping

Seabed

Intervention

Subsea

Installation IMR Decommissioning

Service lines

A leading provider of integrated subsea services for oil

& gas, renewables and interconnector customers

A market leader in diverless subsea IMR in the Greater

North Sea

One of the most active independent cable installation

and burial contractors in renewable industry

Focus on solving our customers’ problems

Recognized global brand for relentless customer focus

and operational excellence having operated in the

sector since the 1990s


3

Owned: 6

Chartered:12

40 ROVs

2 AUVs

5 ploughs

7 jet trenchers

4 mechanical cutters

Human Resources ROVs / AUVs Trenchers & Ploughs Vessels

~1,000 employees

~100 full time agency

personnel /

contractors

11 offices in 7

countries

Other Assets

Module handling

systems (3 off)

Geotechnical rig

Excavators / dredgers

Mattress frames

ROV tooling

Ownership

Private company

Financial investors

Largest owner ~16%

of shares

Financials

2015 revenue of $411

million(1)

2015 Adj. EBITDA of

$39 million(1)

2015 Loss of $69.3

million

Net debt of $40 million

at 31 Dec 2015

Brazil

Ghana

Netherlands

Norway

Mexico

UAE

UK

Current Operations

Company factsheet

Notes: (1) Continued operations

www.deepoceangroup.com

Confidential – Not for Public Dissemination

Operational vessels and offices


Arbol Grande

Edda Flora Edda Fauna Deep Vision Maersk Connector

Volantis

Maersk Recorder

Office locations

Long term ROV operations on:

North Sea Giant (North Sea Shipping)

Normand Ferking (Solstad)

CBO Isabella (CBO)

Bourbon Astenix (Bourbon)

Atlantic Challenger

Note: Exclude cold stacked vessels Deep Endeavour, Deep Wave, Deep Investigator and Walker1

Rem Ocean

Havila Phoenix

Chartered

Owned

Rem Forza

Go Pegasus

Deep Helder


Edda Freya

Dina Star

ROV Ops Trencher Ops


5

The Good, the Bad and the Ugly


Strong order intake year over year

Several offshore renewables and interconnect projects contracts and new Tullow Ghana contract

Contract margins are under pressure

Previously weaker contractors and ship owners emerge from restructurings with significantly lower cost

bases


6

Backlog up but margins under pressure

3.0x

3.5x

2.5x

2.0x

1.5x

1.0x

0.5x

0.0x

900

700

600

500

400

300

200

100

0

800

Q1

539

2.0x

YE15

474

1.7x

Q3

411

0.8x

Q2

431

0.8x

Q1

456

0.7x

YE14

477

0.4x

384

547

0.4x

Q2

672

0.6x

Q1

738

1.9x

YE13

625

0.7x

Q3

666

0.8x

Q2

703

0.4x

Q1

815

3.1x

YE12

574

2.4x

Q3

0.6x

Backlog

(USDm)

Q2 Q3

437

0.6x

Q1

487

1.7x

Y-o-Y growth: 14%

Q2

510

0.6x

49%

~ 50% of backlog is renewable and interconnector contracts



Still securing many contracts but high fixed cost base depresses EBITDA

7

43

100109112111

-100

-80

-60

-40

-20

0

20

40

60

80

100

120800

700

600

500

400

300

200

100

0

$/bbl $m

2016FC 2015

411

53

2014

632

2013

609

2012

513

2011

513

Avg. oil price Revenue

Revenue development 2011-2016FC Approx. 50% of 2015 revenue decline was

caused by NOK weakening against USD

Danger of being squeezed between lower

revenue and high fixed cost of which charter

expense is a large component

Vessel charter cost to be reduced

drastically to bring in line with current market

rates and structure

Three owned vessels laid-up and three

chartered vessels to be released in 2016

Headcount reductions from ~1,500 to ~1,000 in

two years and SGA down 40%

~86% of employees have agreed to a

voluntary compensation reduction of 5.5%,

a sign of a strong company culture


Need to restructure charter contracts or vessels will be returned to owners

?

?


Successful start in Ghana Largest fleet of cable lay and trenchers

IMR, survey and installation services

Framework Agreements in GNS

Offshore Renewables and Interconnectors Projects Africa

Business Foundations


IMR, Survey and installation services

Operations in Mexico


Laser Survey

Core services for oil & gas customers


Pipeline Inspection

Installation of flexible risers

XMAS Tree Installation

Hydrate Remediation Decommissioning

Reduced demand at lower prices


Innovation - Superior ROV


0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

Visual PI Acoustic PI ROV gridsurvey

ROV routesurvey

Large stable vehicle with optimal placement of

sensors and latest generation survey

instrumentation (MBEs, INS, lasers, video and

still cameras)

Acoustic survey speed of up to 6 knots

Higher productivity resulting in lower cost for customer

Productivity improvement

compared with 2014-15 Average



Well positioned for offshore cables with installation vessels and

world’s largest trencher fleet

Picking the right tool for the job

T3200 UT1

5 off

Pipeline

Cable

7 Off

ROV

Track

Ploughs Jet trenchers Mechanical

4 Off

ROV

Track



Maersk Connector

117 km of cable being spooled onto the 7000 te. carrousel

13

Western

Link

Walney

Race

Bank

Bligh

Bank

Nemo

Value of DeepOcean’s contracts in

excess of $350 million

Large number of DeepOcean’s

assets have been deployed

6 vessels

6 trenching tools

ROVs / Carrousels

Renewable and Interconnector Projects in execution phase



Rem Forza operational in Ghana since February 2015

3 year IMR Contract with Dina Star since March 2016

ROV Support contract on Bourbon Astenix PSV

Frogging with Rem Forza (18244 trips)

Installation of trees, jumpers, flying leads, manifolds

IMR works

Survey (incl. subsea laser)

Engineering Support

More than 50 Ghanaians are involved in our operations

Ghana Operations – Started in February 2015



Safety of all employees and other stakeholders

Restructuring charter contracts

Operational excellence

Finding and contracting new work

Collecting payments

Innovation



Our focus

Join the discussion on LinkedIn:

www.linkedin.com/company/deepocean More than 30,000 followers

Follow DeepOcean Group on Twitter

@deepoceangroup


http://www.youtube.com/deepoceanonline

Q&A



http://www.linkedin.com/company/deepocean

pareto conference- company presentation – september 2016

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