#BOURBONINMOTION. Market context. What we have done, what we have learnt. Way forward strategy

Transcription

1 February 13 th, 2018

2 #BOURBONINMOTION Market context What we have done, what we have learnt Way forward strategy

3 THE EXPECTED MARKET RECOVERY DID NOT MATERIALIZE

4 THE WORST CRISIS EVER Billion USD Global upstream capex budget trend year-over-year Global offshore capex trend Source: Rystad Energy 4

5 BUT SOME POSITIVE SIGNALS In US$ Barrel price USD bn Oil & gas Majors free cash flow Brent crude Oil in $ Source: prixdubaril.com Steadily over 50$ At its highest since

6 O FFSHORE PRODUCTION REMAINS KEY TO MATCH DEMAND GROWTH $US billion 300 N FIDs > 23% Estimated Capex (LHS) No. Project FIDs (RHS) CAPEX data as specified by project operators. Where no definitive figure is given, estimates derived from assessment of comparable projects with known CAPEX Source: Morgan Stanley Research, Wood Mackenzie, Rystad Energy, and Company Data June 2017 Data Source: Clarksons Research 6

7 G LOBAL ACTIVITY I S TURNING POSITIVE % Total number of vessels % 81% 81% 77% 60% 55% 58% 64% 70% 76% 83% 90% 80% 70% 60% 50% 40% 30% 20% Worldwide fleet utilization % % Demand (nb of vessels) Supply (nb of vessels) Utilization (Clarksons (BOURBON) + BOURBON projection) Utilization (Clarksons Platou Securities) Utilization (Pareto Securities Equity Research) Utilization (IHS Petrodata, Pareto Securities) 0% 7

8 RECOVERY WILL BE SLOW % of the worldwide OSV fleet is stacked Number of vessels janv.-10 avr.-10 juil.-10 oct.-10 janv.-11 avr.-11 juil.-11 oct.-11 janv.-12 avr.-12 juil.-12 oct.-12 janv.-13 avr.-13 juil.-13 oct.-13 janv.-14 avr.-14 juil.-14 oct.-14 janv.-15 avr.-15 juil.-15 oct.-15 janv.-16 avr.-16 juil.-16 oct.-16 janv.-17 avr.-17 juil.-17 oct.-17 janv.-18 Source: Clarksons TOTAL FLEET: 3,500 of which 1,200 vessels are stacked 8

9 SUBSTANTIAL COST REDUCTION IS NOT ENOUGH In US $ SHALLOW DAYRATE VS CASH OUT: BOURBON LIBERTY 200 AHTS CASE 16,000 16,000 14,000 14,000 12,000 10,000 8,000 12,000 10,000 8,000-30% to - 40% - 20% to - 30% 6,000 6,000 4,000 4,000 2,000 2,000, 12M M M M 2017 e Hull average cost OPEX per day ($) Average working day rate ($), 9

10 SHIPOWNERS ARE FIGHTING TO SURVIVE Bankruptcy Restructuring Consolidation NORTH SEA AMERICA US/GOM WEST AFRICA MIDDLE EAST ASIA 10

11 BOURBON S CHALLENGES I N THIS CONTEXT Vessels in operation are not profitable enough anymore The stacked fleet remains a cash drain Some of our vessels values are challenged 11

12 WHAT WE HAVE DONE, WHAT WE HAVE LEARNT

13 DELIVERING OPERATIONAL EXCELLENCE SAFETY RESULTS TECHNICAL AVAILABILITY RATE OF BOURBON S FLEET IN OPERATION 98% 32.3 million hours** worked in % 96.4% 96% 94.5% % 93% 94.3% 95.5% % ** 90% TRIR* LTIR* TRIR* objectives per year Technical objective availability rate 13

14 CONSISTENTLY O VERPERFORMING MARKET 100 BOURBON vs Market utilization rate 90 UTILIZATION RATES % Focus on BOURBON 2017 UR by quarter Q Q Q Q4 OSV BOURBON UR Market UR 14

15 I M PLEMENTING STRONG CASH M O NITO RING Specific action plan: Focus on cash collection Net overdue % Monitoring at Executive committee level - Dry dock expenditure - Reactivation cost Net turnover % JAN 2017 FEB 2017 MAR 2017 APR 2017 MAY 2017 JUNE 2017 JULY 2017 AUG 2017 SEPT 2017 OCT 2017 NOV 2017 DEC 2017 Turnover base 100 Net Overdue base 100 Adjusted data / Base

16 DELIVERING COST REDUCTION STRATEGY REDUCTION OVER THE PERIOD e G&A: - 25% OPEX: - 34% CAPEX: - 60% e e Direct Costs G&A Newbuidling Maintenance *Adjusted data / Base

17 WAY FORWARD STRATEGY: #BOURBONINMOTION

18 2 CRITERIA FOR STRATEGIC SEGMENTATION MARKET ATTRACTIVENESS BARRIER TO ENTRY Specialty vs Commodity segments ACCESS TO MARKET Compliance to local content rules BUSINESS MODEL CHANGE From chartering vessels only to providing integrated services too BE INNOVATIVE OPERATIONAL COMPETITIVENESS Focus on dominant regional market shares Promote franchise: Asset light strategy Game changing cost structure through technology and connected standardized fleet PREREQUISITE: BE THE FIRST MOVER 18

19 #BOURBONINMOTION WITHIN RELEVANT SEGMENTATION MOBILITY Market attractiveness Specialty SUBSEA French Navy Mooring & Towing Tanker Lifting MARINE & LOGISTICS Commodity Traditional OSVs Non-smart fleet Modern OSVs Smart fleet Operational competitiveness 19

20 #BOURBONINMOTION RESPECTIVE SEGMENTS WEIGHTS MOBILITY 269 vessels / 216 M revenues Market attractiveness Specialty SUBSEA 22 vessels / 220 M revenues French Navy 7 vessels Mooring & Towing 4 vessels Tanker Lifting 9 vessels MARINE & LOGISTICS Commodity Traditional OSVs 65 vessels 99M revenues Non-smart fleet Modern OSVs 132 vessels 247M revenues Smart fleet Operational competitiveness 2017 adjusted and non-audited data 20

21 #BOURBONINMOTION: MOBILITY BARRIER TO ENTRY Surfer Concept Fleet Size MOBILITY ACCESS TO MARKET Benefit from BOURBON footprint worldwide Local Joint ventures/partnerships: Gabon, Congo, Nigeria BUSINESS MODEL CHANGE From 96% technical rate to 100% services rate Door to rig solutions: price per man Market attractiveness Specialty Commodity SUBSEA French Navy Mooring & Towing Tanker Lifting MARINE & LOGISTICS Non-smart fleet Smart fleet Operational competitiveness BE INNOVATIVE Digitization to develop new services around passengers Terminal management, 21

22 #BOURBONINMOTION: SUBSEA BARRIER TO ENTRY Integrated services capability: engineering, project management MOBILITY Access to the right fleet at the right place ACCESS TO MARKET Benefit from BOURBON footprint worldwide Regional technical know how BUSINESS MODEL CHANGE Increase share of turnkey projects Diversify potential use of assets: windfarm, Market attractiveness Specialty Commodity SUBSEA French Navy Mooring & Towing Tanker Lifting MARINE & LOGISTICS Non-smart fleet Smart fleet Operational competitiveness BE INNOVATIVE Light well stimulation: Operational Excellence Awards from TOTAL 22

23 #BOURBONINMOTION: MARINE & LOGISTICS BARRIER TO ENTRY Operational excellence Modern and standardized fleet MOBILITY ACCESS TO MARKET True partnership for the best motion Worldwide footprint: clients frame agreements BUSINESS MODEL CHANGE From chartering vessel only to integrated services too Market attractiveness Specialty Commodity SUBSEA French Navy Mooring & Towing Tanker Lifting MARINE & LOGISTICS Non-smart fleet Smart fleet Operational competitiveness BE INNOVATIVE Smart shipping concept: 25% further OPEX reduction Creation of regional hub and regional operations centers Divest from the non-smart fleet 23

24 O N THE WAY TO DIGITAL REVOLUTION OPPORTUNITY TO DELIVER INNOVATIVE SOLUTIONS REDUCING TOTAL COST FOR OUR CUSTOMERS We would be interested to have one partner in exploration logistics to become more agile with a light footprint model 24

25 #BOURBONINMOTION: THE SMART FLEET MODERN VESSELS 132 vessels named smart qualifying for the smart shipping program Client needs: redundancy, maneuverability & energy savings Age: 5.7 years old in average, built in series Connectivity: no design, technical or economical constraints LEVERAGING TECHNOLOGY 25

26 SMART SHIPPING PROGRAM F R O M 1 4 T O 1 0 C R E W M E M B E R S A program based on a 3 level operational model: Vessel Local shore support Central remote support Three years deployment plan aiming to: Connecting the Smart Fleet to operate at safe manning: CAPEX 75M Improving operational excellence Reducing operational costs by 25% Action plan structured around 4 main projects: Dynamic Positioning 01 automation Maintenance 04 Onboard Processes Simplification Operational Support Center 26

27 DYNAMIC POSITIONNING AUTOMATION PROJECT BOURBON, Kongsberg & Bureau Veritas innovating on best and safest available technology for DP operations Improve operator-machine interface & bridge ergonomics to increase the safety of operations Implement a certified communication protocol to mitigate cybersecurity risks Monitor system with digital twin Pilot on Bourbon Explorer 508 implemented since 1 st December 2017 for BP. 12 vessels scheduled for conversion in Savings on crew positions: 1 Officer per vessel Alexandre Motte Master Bourbon Explorer

28 ONBOARD PROCESS SIMPLIFICATION PROJECT ONE PRIORITY: CHANGE OF CULTURE Simplification & standardization with a robust methodology: lean six sigma 20 processes highly time consuming out of specialists onboard to measure reality Analysis phase ongoing, deployment starts from 1 st of April 2018 Savings on crew position: 1 junior Officer per vessel 28

29 M AINTENANCE PROJECTS STRENGTHEN GOVERNANCE, STREAMLINE PROCESSES, OPTIMIZE MAINTENANCE PLAN Strengthen governance and streamline processes Implement condition based maintenance to optimize maintenance plan Develop predictive maintenance Maintenance hub pilot operational in Qatar in Q All projects to be deployed fully or partially over 2018 Savings on crew positions: 1 Officer and 1 Able Seaman per vessel 29

30 BOURBON O PERATIONAL SUPPORT CENTER CONTRACT & OPERATIONS MANAGEMENT TO GUARANTEE CLIENT SATISFACTION Remote contract management Real time monitoring & advisory Analytics for business and operations decision making Emergency and contingency situation management 1 st step of the deployment in

31 #BOURBONINMOTION: DIVEST THE NON-SMART FLEET 65 TRADITIONAL VESSELS Non smart fleet : 41 owned vessels destined to be sold Age: 11.2 years old vessels Connectivity: design, technical or economical constraints Vessels remaining stacked for a longer period Market for vessels to sale : 40% of our competitors having less than 10 vessels, 23 years old As a consequence of this sale plan, 2017 will bear an impairment loss of around 170 M on the non-smart vessels 31

32 N EW ORGANIZATION TO SUPPORT STRATEGY

33 #BOURBONINMOTION: 3 STAND-ALONE COMPANIES BOURBON CORPORATION BOURBON MARINE & LOGISTICS BOURBON SUBSEA BOURBON MOBILITY Revenues 411M Revenues 220M Revenues 216M Fleet 217 vessels Fleet 22 vessels Fleet 269 vessels People 4,500 People 1,000 People 2,300 Geographies Multi areas Geographies 68% Africa Geographies 90% Africa 21% Asia Adjusted and non-audited figures as of 2017, December 31 st 33

34 #BOURBONINMOTION: DUPLICATE O RGANIZATION: PILOT PROJECT IN NIGERIA CLIENT CLIENT CLIENT SUBSEA MARINE & LOGISTICS MOBILITY Owner / Shipmanager / Contracting Owner / Shipmanager / Contracting Owner / Shipmanager / Contracting BOURBON Support: Standard, franchise, shared services 34

35 #BOURBONINMOTION: DEPLOY NEW ORGANIZATION BOURBON Corporation Marketing & Brand Operational Standards & Innovation Strategy & Partnership Performance Monitoring & Global Services Board of 7 members Victor CHEVALLIER, CEO Board of 7 members Patrick BELENFANT, CEO Board of 7 members François LESLÉ, CEO Marketing & Sales Operations & Development Finance & Admin Marketing & Sales Operations & Development Finance & Admin Marketing & Sales Operations & Development Finance & Admin BOURBON MARINE & LOGISTICS Q BOURBON SUBSEA SERVICES Q BOURBON MOBILITY Q

36 BOURBON MARINE & LOGISTICS Victor CHEVALLIER

37 KEY FIGURES & CUSTOMERS CONTRACTORS OTHER SUPERMAJORS 1 ST OSV PLAYER IN NUMBER OF VESSELS 217 VESSELS BUILT IN SERIES 22% 4% 411 MILLION EUROS 8 SHIPMANAGERS IOC 13% 15% 46% 4,500 EMPLOYEES 39 COUNTRIES OF OPERATIONS NOC Figures as of December 31 st,

38 A FULL RANGE OF MARINE SUPPORT SERVICES Our expertise: Supplying offshore installations and vessels Towing, anchoring, and positioning of offshore installations Support to floating oil and gas production, storage, and unloading units Our key drivers: Safety & Operational excellence Cost optimization $/day contracting mode 38

39 250 O SV COMPETITO RS A FRAGMENTED MARKET Top 10 players 400+ players represent - Average less than fleet of 20% 8 vessels of the market operators Fleet of less than 10 vessels on average, 40% aged of more than 20 years old 50 0 Market reports & analysis,

40 A G LOBAL FOOTPRINT WITH A WINNING STRATEGY OF LOCAL CONTENT 8 BML JV JV 42 JV JV Local partner / Joint venture BML 40 JV 95 JV JV JV JV JV 32 JV Contracting company BML Shipmanager Nb vessels 40

41 FROM CHARTERING VESSELS ONLY TO PROVIDING INTEGRATED SERVICES TO O TODAY Vessel centered activity TOMORROW Logistics Services Integrator Fleet management Scheduling & optimization Cargo management & shore base services Real-time decision support & analytics Integrated logistics projects in exploration $/day services $/ton, m 3, 41

42 42

43 BOURBON SUBSEA SERVICES Patrick BELENFANT

44 KEY FIGURES & CUSTOMERS IOC NOC 1 ST IMR (Inspection Maintenance and Repair) SERVICE PROVIDER IN WEST AFRICA 25 ROVS 22 VESSELS 6% 2% SUPERMAJORS MILLION EUROS 220 TRACK RECORD 350 WELLHEADS IN DEEPWATER 36% 56% 1,000 EMPLOYEES 500 SUBSEA CONNECTIONS ON LIVE PRODUCTION FIELDS CONTRACTORS Figures as of December 31 st,

45 SERVICING PRODUCTION CYCLE Our expertise covers 3 main subsea areas: Engineering, supervision and management of subsea operations 1 VESSEL X CRANE 250T / 10 VESSELS X CRANE 150T Assets (vessels) ROV (Remote Operated Vehicle) Base on $/Day rate for: Post 1 st oil & gas intervention 5 VESSELS X CRANE 100T Inspection, Maintenance and Repair Assistance to construction contractors 6 VESSELS < CRANE 40T 45

46 G LOBAL & REGIONAL COMPETITO RS Market reports & analysis,

47 STRATEGICALLY POSITIONED PARTNERS & FLEET Bourbon Evolution 802 in operation in Nigeria JV 2 JV JV 4 4 JV JV 12 JV Partnership Nb of vessels TOTAL Operational Excellence Award - Oct

48 FROM CHARTERING VESSEL & ROV SERVICE TO LIGHT TURNKEY SUPPLIER TODAY Services rate TOMORROW: Services rate & turnkey projects Vessels ROVs Engineering Turnkey projects 48

49 49

50 BOURBON MOBILITY François LESLÉ

51 KEY FIGURES & CUSTOMERS NOC SUPERMAJORS 1 ST WORLD LEADER WITH 30 YEARS EXPERIENCE 216 MILLION EUROS IOC 12% 10% 2,300 EMPLOYEES AROUND 3 MILLION PASSENGERS TRANSPORTED EACH YEAR 18% 60% CONTRACTORS 269 HIGH SPEED CREW BOATS >10 COUNTRIES OF OPERATIONS Figures as of December 31 st,

52 A UNIQUE CONCEPT FOR PASSENGERS TRANSPORTATION Reliability & availability Speed Safe transfer 52

53 FRAGMENTED G LOBAL & REGIONAL COMPETITO RS Market reports & analysis,

54 A STRONG LOCAL FOOTPRINT Qatar Cameroun Nigeria Gabon Congo Indonesia Brazil Angola Shore maintenance base Training base Joint venture 90% of turnover in West Africa 54

55 TOWARDS DIVERSIFICATION & PASSENGER SERVICES ENHANCEMENT TODAY Chartering vessels for transportation 96% technical availability rate TOMORROW Customers mobility management 100% service rate Strong historical asset base $/day services Digitalization Integrated cost per seat Enhanced onboard services with partnerships Diversification through value chain enlargement 55

56 56

57 #BOURBONINMOTION: MAIN TAKE AWAY - Ring fencing Subsea Services and Mobility as stand alone companies - Transforming Marine & Logistics into a stand-alone entity: Investing in Smart shipping Reactivating the smart stacked fleet Divesting the non smart fleet Developing integrated logistic services - Adapting group organization and governance 57

58 #BOURBONINMOTION: CONCLUSION

59 STRATEGIC MOVES & DEDICATED O RGANIZATION, DIGITAL POWERED MARINE & LOGISTICS Project Management SUBSEA SERVICES Safety Engineering INTEGRATED SOLUTIONS Partnerships Risk management MOBILITY Logistics Customer mobility experience 59

60 ROAD TO VESSEL AUTO NOMY A REMOTE SERVICES Maintenance Operations Support Center AUTONOMOUS OPERATIONS Autonomous Vessel CONNECTED Onboard Process Simplification DP Automation Source: Kongsberg courtesy 60

61 M O NITO R HUMAN REVOLUTION System Human Machine/AI 61

62 Q&A

63 DISCLAIMER This document may contain information other than historical information, which constitutes expectations, estimated, provisional data concerning the financial position, results, plans, other trend information and strategy of BOURBON. These projections are based on assumptions that could differ materially from those anticipated, may prove to be incorrect and/or depend on risk factors including, but not limited to: foreign exchange fluctuations, fluctuations in oil and natural gas prices, changes in oil companies investment policies in the exploration and production sector, the growth in competing fleets, which saturates the market, the impossibility of predicting specific client demands, political instability in certain activity zones, ecological considerations and general economic conditions. All written or oral statements attributable to BOURBON and its employees or representatives acting on the BOURBON s behalf are expressly qualified in their entirety by the factors referred to above. BOURBON assumes no liability for updating, revising or correcting the provisional information or forward-looking statements based on new information in light of future events or any other reason, and these statements speak only to the date of today s presentation. All data in the presentation are adjusted and non-audited 63