Strategy presentation, Singapore, 16 November SBM Offshore All rights reserved.

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1 Strategy presentation, Singapore, 16 November 2012

2 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

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

4 Who we are, where we are

5 SBM Offshore No.1 FPSO player worldwide The Company 4 Project execution centres 9 Shore bases 4 Representative offices 6,922 Employees (HY 2012) Lease Fleet 15 FPSOs 2 FSOs 1 Semi Sub 2 MOPUs 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) 5

6 Key Figures Q (In millions of US$) Q Q YE 2011 Turnover Q3 Turnover YTD Order portfolio ,201 2,486 16,910 16,100 Net debt 1,413 CAPEX 1,958 2,

7 No time for non-core Dynamic Installer sale Sold for US$ 15 mln to Dulam International Will be delivered end November Will operate in the Middle East 7

8 No time for non-core Gusto-MSC: Sold for approximately US$ 185 mln Next step: Sale and lease back of real estate (offices) and potentially other divestments Total: around US$ 400 mln Targeted schedule: within 6-12 months 8

9 First USPP and Ilhabela financing First US Private Placement project bond for SBM Offshore First US Private Placement project bond for a FPSO Cidade de Anchieta on hire since September 2012 for 18 year lease contract US$ 500mn for 15 year maturity with 5.5% fixed coupon Duration of project bond in line with duration of lease contract Record US$ 1.05 billion financing secured for Cidade de Ilhabela 9

10 Order portfolio backlog (in US$ bln) L & O Backlog % 1% 30% * Turnkey Backlog 0 Lease & Operate Turnkey Services Turnkey Systems * * 2012 includes Q YTD turnover and Q backlog 10

11 Transformation 11

12 SBMO Total Workforce A growing workforce Transformation needed to manage strong growth End June 2012 (source: internal analysis) 12

13 Thousands Growing production volume Transformation needed to manage strong growth Average production in bl/day 1, (source: internal analysis) 13

14 Group transformation in progress Lead the industry transition towards improving risk/reward balance FPSO strategy focus New organisation profit and cash flow accountable Strengthened management team Selective growth in buoyant market 14

15 Strengthened management team The Board of Management Bruno Chabas CEO Peter van Rossum CFO Sietze Hepkema CGCO J.P. Laures COO Mike Wyllie CTO Executive Committee: 5 Managing directors+ group functions Wim Janse MD SBM Monaco Mike Wyllie MD SBM PC (acting) Bernard van Leggelo MD SBM Houston Ivan Replumaz MD SBM Kuala Lumpur Yves Paletta MD SBM Schiedam Didier Beynet Group HR director Saskia Kunst Group Strategy director Erik van Kuijk Group HSSE director Bernard Verwilghen Group Secretary Oliver Kassam Group Sales director 15

16 Improving Risk/ Reward balance Lead the industry transition towards improving risk/reward balance Growing market Attractive niche position Few players Not a commodity product Excellent operations (99.1% uptime) Unsustainable historic returns 16

17 Challenges and opportunities High demand for complex FPSOs Unsustainable industry returns

18 in Mn bls What s happening? Deepwater needs high technology solutions Oil discoveries in giant fields within the last 6 years by water depth Onshore Source: Goldman Sachs 18

19 Floating Production Solutions FPSO is the favourite solution for offshore field development 10% 4% 7% 19% 60% FPSO Semi Spar TLP Other (source: Petrobras, PFC Energy) 19

20 e 2013e 2014e 2015e 2016e 2017e 2018e Size of the prize The sector is primed for solid growth in coming years with a CAGR of demand in the 5-7% range Fleet development FPSO s Idle units Producing Fleet Demand Low Case Demand Base Case Demand High Case Based on existing projects only (source: Pareto, ODS Petrodata, July 2012) 20

21 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 Lease Sale Lease or Sale November 2012 (source: internal analysis) 21

22 Topsides Weight (ton) FPSOs are getting heavier Our clients are more and more technology demanding SBM addresses this challenge 20,000 Cd de Ilhabela 16,000 12,000 Frade P 57 Cd de Paraty 8,000 4,000 Marlim Xikomba Sul Falcon Espadarte Kuito Brasil Serpentina Kikeh N Goma Aseng BC 10 Saxi Cd de Anchieta Mondo Cachalote Capixaba Rang Dong Year of first oil (source: internal analysis) 22

23 Getting complex Our clients are more and more technology demanding SBM addresses this challenge 23

24 Turrets- Swivel stack size in meters More demanding Our clients are more and more technology demanding SBM addresses this challenge Turrets Swivel stack size (source: internal analysis) 24

25 Be ready for the next step Work to adapt Gas to Liquids Technology to FPSO Commercial agreement with CompactGTL Convert the associated gas into syncrude Co-mingle and transport with the natural crude 25

26 Industry leadership Maintain our technical edge Focus on 3 areas: FPSO Topsides Mooring 26

27 FPSOs are not a commodity Bespoke solutions for full product lifecycle Full life production solution Qualitative differentiation Non exchangeable 27

28 Challenges and opportunities High demand for complex FPSOs Unsustainable industry returns 28

29 FPSO: unsustainable industry ranking Total Shareholders Return for FPSO industry negative PETROFAC FMC TECHNOLOGIES OCEANEERING INTL OIL STATES INTERNATIONAL WOOD GROUP (JOHN) SAIPEM AMEC WORLEY PARSONS TECHNIP FUGRO NV-CVA CHICAGO BRIDGE & IRON FOSTER WHEELER KBR SUBSEA 7 AKER SOLUTIONS MCDERMOTT INTL JACOBS ENGINEERING GROUP MODEC AP MOELLER-MAERSK TEEKAY HELIX ENERGY SOLUTIONS SBM OFFSHORE BW OFFSHORE TSR Peer Group Ranking H2012, %CAGR -24.9% -2.7% -3.9% -3.9% -5.0% -6.8% -7.2% -13.9% -14.1% 31.1% 24.4% 22.2% 20.3% 16.9% 16.5% 16.0% 14.6% 14.3% 9.5% 6.0% 2.2% 2.0% 1.9% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% (source: Bloomberg, internal data) 29

30 FPSO: industry in need of transition FPSO industry shows more down side than upside 6 FPSO players Return on Total Assets 10.0% yr avg 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% -25.0% SBMO Modec BWO Teekay Aker Floating Production Bluewater Group (source: internal analysis) 30

31 FPSO: industry in need of transition But bad habits are difficult to break Brazilian Pilot projects- public bid results Pilot 1 (2008) Pilot 2 (2010) Pilot 3 (2010) Pilot 4 (2011) Pilot 5 (2011) Pilot 6 (2012) SBM Competitor 1 (source: internal analysis) 31

32 Our Strategy 32

33 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. FPSO 33

34 Awards won Supply side Few active players, strong technical and financing capacity differentiation FPSO market 2010-June 2012 Awards Average production capacity (bpd) (Engineering complexity) (source: internal analysis-30/06/2012) 34

35 Production capacity FPSO Lease fleet on hire or under construction SBM Modec BW Offshore Teekay Bluewater Bumi Armada Petrofac 0 200, , , ,000 1,000,000 1,200,000 1,400,000 in boe/day (source: internal analysis) 35

36 SBM Offshore - Running head. 6pt Arial Regular We deliver along the full product lifecycle Engineering 50 years of industry firsts Leading edge technology Procurement Integrated supply chain Global efficiencies Local sourcing Product Life Extension Leader in FPSO relocation World class after sales Construction Strategic partnerships Unrivalled project experience Operations 200+ years of experience 99+% production uptime Largest international FPSO fleet Installation Dedicated fleet Unparalleled experience Extensive project capability 36

37 Cidade de Anchieta August km April

38 August

39 October

40 Year-end

41 41