FINANCIAL REVIEW

FINANCIAL REVIEW

Page Management Report for Subsea 7 Group (the Group) 53 Management Report for Subsea 7 S.A. (the Company) 58

52 Subsea 7 S.A. Annual Report 2020 52 | SUBSEA 7 | ANNUAL REPORT 2020 STRATEGIC REPORT GOVERNANCE CONSOLIDATED FINANCIAL STATEMENTS SUBSEA7 S.A FINANCIAL STATEMENTS GLOSSARY 53 53 to

sted

he cost he focus on focus xcludesthe to property,to et costs et AGM. n marking n ojects to its to ojects p’s cost cost p’s nt of NOK of nt to impairment impairment to llion Seagreenllion f $82 million in million $82 f www.subsea7.com www.subsea7.com SUBSEA 7 | ANNUAL REPORT 2020 | earnings per share, which e which share, per earnings latest dividend recommendatio dividend latest illion compared to net loss o loss net to compared illion Subsea 7 continued to deliver pr deliver to continued 7 Subsea g the year impairment charges related related charges impairment year the g 10% compared with 17% in 2019. Adjusted 2019. in 17% with compared 10% ardapprovalfor by the at shareholders cognised (2019: $70 million) in million) addition $70 (2019: cognised g charges of $86 million related to the Grou the to related million $86 of charges g siness unit compared with 2019, as well as n comparedas unit well siness as 2019, with e year was $4.4 billion, $4.4 bi including$1.4 the was year e illion in 2020. Adjusted diluted diluted Adjusted in2020. illion crease of $190 million or 5% compared to the prior year. Adju year. prior the to compared 5% or million $190 of crease total borrowings of $209 million compared with $234 millionat $234 with compared million $209 of borrowings total d-19 pandemic required radical changes to operations and had an had and operations to changes radical required pandemic d-19 t loss for the year was $1.1 b $1.1 was year the for loss t asset values recognised. Yet, recognised. values asset over the past decade,pastthe over and this es. In response, incremental operating costs were booked and t and booked were costs operating incremental response, In es. of $0.05 in the prior year. year. prior the in $0.05 share of per earnings to ared rong presence in the growing offshore renewables market and a and market renewables offshore growing the in presence rong s markets over the past six months, a special dividend payme dividend special a months, past six the over markets s At 31 December 2020, the Group held cash and cash equivalents of equivalents cash and cash held Group the 2020, December 31 At lent to an Adjusted EBITDA margin of margin EBITDA Adjusted an to lent irment charges of $77 million inmillion Durin 2019. $77 of charges irment impairment charges was $428 million compared million $428 was charges impairment goodwill excluding loss, operating Net 20. $70 million, is to be recommended by the Bo the by million, be$70 to is recommended uivalent to a book-to-billa to uivalent 1.3. of ratio vity within the SURF and Conventional bu Conventional and SURF the within vity d right-of-use assets of $323 million were re were million $323 of assets right-of-use d facilities in excess of $1 billion. $1 of excess in facilities of approximately $70 million and restructurin and million $70 approximately of urable economics. Order intake during th during intake Order economics. urable position and outlook for the Group. Group. the for outlook and position 2020 revenue was $3.5 billion, de $3.5 a was revenue 2020 rial impairments to goodwill and goodwill to impairments rial plant and equipment, intangible assets an assets intangible equipment, and plant charges related to goodwill of $605 million (2019: $100 million). Ne million). $100 (2019: million $605 of goodwill to related charges associated with the Covid-19 pandemic Covid-19 the with associated 20 during announced programme, reduction net operating income, excluding goodwill impa goodwill excluding income, operating net adverse effect on the market for the Group’s oil and gas business gas and oil Group’s the for market the on effect adverse 2019. Excluding the goodwill impairment charges net loss was $500 m $500 was loss net charges impairment goodwill the Excluding 2019. comp $1.64 of share per loss a was charges impairment goodwill Covi The well. responded 7 Subsea months twelve challenging a In mate with restructured, was base MANAGEMENT REPORT FOR SUBSEA 7 GROUP (THE GROUP) GROUP) (THE GROUP SUBSEA 7 FOR REPORT MANAGEMENT Financial highlights December 31 ended year the For

EBITDA was $337 million (2019: $631 million) equiva million) $631 (2019: million $337 was EBITDA acti reduced significantly reflected EBITDA clients, generated positive cash flow and increased its backlog. backlog. its increased and flow cash positive generated clients, st billion,a by$6.2 of to result 20% the backlogSubsea 7’s grew parts of the oil and gas market with favo with market andgas oil the of parts 2.00 per share, equivalent to approximately to equivalent share, per 2.00 shareholders to capital excess billionof returned$2 has 7 Subsea financial the in confidence Board’s the offshore wind farm project, offshore UK, eq UK, wind project,offshore farm offshore strong. remained position financial and liquidity Group’s The had 2019, 31 at December million $398 with compared million $512 credit unutilised and 2019 December 31 Group’ the visibilityof stabilityand the improvementin the Given FINANCIAL REVIEW CONTINUED

2020 2019 For the year ended (in $ millions, except Adjusted EBITDA margin, share and per share data) 31 Dec 31 Dec Revenue 3,466 3,657 Adjusted EBITDA(a),(b) (unaudited) 337 631 Adjusted EBITDA margin(a),(b) (unaudited) 10% 17% Net operating (loss)/income excluding goodwill impairment charges (428) 77 Goodwill impairment charges (605) (100) Net operating loss (1,034) (23) Net (loss)/income excluding goodwill impairment charges (500) 18 Net loss (1,105) (82)

Earnings per share – in $ per share Basic (3.67) (0.27) Diluted(c) (3.67) (0.27) Adjusted diluted(c) (1.64) 0.05

2020 2019 At (in $ millions) 31 Dec 31 Dec Backlog(d) 6,214 5,187 Cash and cash equivalents 512 398 Borrowings (209) (234) Net cash excluding lease liabilities(e) 303 164 Net cash/(debt) including lease liabilities(e) 49 (181)

(a) For explanations and reconciliations of Adjusted EBITDA and Adjusted EBITDA margin refer to page 136 ‘Adjusted EBITDA and Adjusted EBITDA margin’. (b) During the year ended 31 December 2020 restructuring charges of $86 million were recognised (2019: $nil), adversely impacting Adjusted EBITDA and Adjusted EBITDA margin. (c) For the explanation and a reconciliation of diluted earnings per share and Adjusted diluted earnings per share, which excludes the impact of the goodwill impairment charges, refer to Note 11 ‘Earnings per share’ to the Consolidated Financial Statements. (d) Backlog at 31 December 2020 and 31 December 2019 is unaudited and is a non-IFRS measure. (e) Net cash is a non-IFRS measure and is defined as cash and cash equivalents less borrowings. Revenue Revenue for the year ended 31 December 2020 was $3.5 billion, a decrease of $190 million or 5% compared to 2019. The year-on-year decrease was primarily driven by a significant reduction in activity in West Africa and the Middle East and re-phasing of awarded work due to low oil prices and the Covid-19 pandemic in the SURF and Conventional business unit. This was partly offset by increased activity in the Renewables and Heavy Lifting business unit in Taiwan, offshore US east coast and on the Seagreen offshore wind farm project, offshore UK. Adjusted EBITDA Adjusted EBITDA and Adjusted EBITDA margin for the year ended 31 December 2020 were $337 million and 10% respectively, compared to $631 million and 17% in 2019. Adjusted EBITDA reflected significantly reduced activity within the SURF and Conventional business unit compared with 2019, the impact of the Covid-19 pandemic which had a net cost of approximately $70 million and the recognition of $86 million of restructuring costs related to the Group’s downsizing programme announced in Q2 2020. Net operating loss Net operating loss, excluding goodwill impairment charges, for the year ended 31 December 2020 was $428 million compared to net operating income of $77 million in 2019. The main items contributing to the net operating loss were: • significantly lower activity levels in the SURF and Conventional business unit and fewer projects in their close-out phase compared to the prior year; • net costs of approximately $70 million related to the Covid-19 pandemic; • impairment charges of $282 million related to property, plant and equipment, mainly related to older vessels or vessels expected to have low utilisation; • impairment charges of $32 million related to right-of-use assets; • impairment charges of $9 million related to intangible assets; and • restructuring costs of $86 million related to the Group’s resizing programme. During the year ended 31 December 2020, goodwill impairment charges totalling $605 million were recognised. The charges were driven by downward revisions to expected activity levels within the SURF and Conventional business unit in the short to medium term. Net operating loss including the impact of goodwill impairment charges was $1.0 billion, compared to a net operating loss of $23 million in 2019.

54 Subsea 7 S.A. Annual Report 2020 54 | SUBSEA 7 | ANNUAL REPORT 2020 STRATEGIC REPORT GOVERNANCE CONSOLIDATED FINANCIAL STATEMENTS SUBSEA7 S.A FINANCIAL STATEMENTS GLOSSARY 55 55 Total Total odwill ase 2 ase xpected culated culated d on the the on d 160 million 160 creased creased n by 0 was ts in the in ts t and right- and t xcludesthe the Berri- the ertain ertain $12 million $12 in – (605.4) – 3,466.4 – 3,656.6 dwilland n underlong- n net costs costs net nt charges charges nt 093 million (2019: million 093 www.subsea7.com www.subsea7.com

– Lifting Corporate ing income was drive was income ing SUBSEA 7 | ANNUAL REPORT 2020 | Lifting Corporate ss per share, which e which share, per ss and Heavy and Heavy Renewables Renewables lated to vessels, equipmen vessels, to lated reaks onboard during the year. year. the during onboard reaks – (99.9) – (99.9) on in 2019. The net loss in 202 in loss net The 2019. in on f available related to the goo the to related available f 2.8) (56.1) (23.9) 77.0 King’s Quay and Manuel projec Manuel and Quay King’s re driven by downward revisions to e to revisions downward by driven re uity, of which net lossnet $1, which of of uity, compared to net operating income of $ of income operating net to compared d the Middle East compared to 2019, de 2019, to compared East Middle the d the Arran, Penguins, Blythe andBlythe BuzzardPenguins, Ph Arran, the increase in net operat net in increase there were high levels of PLSV utilisatio PLSV of levels high were there ly. Adjusted diluted lo diluted Adjusted ly. – 159.8 (2.8) (156.0) (23.9) (22.9) (258.8) 12.6 (39.7) (142.5) (428.4) (591.4) (14.0) (850.2) (1.4) (39.7) (142.5) (1,033.8) 2,578.4 256.6 631.4 3,174.1 265.6 216.9 SURF and SURF and Conventional Life of Field ing loss in 2020 was also adversely impacted by impacted adversely also was 2020 in loss ing Conventional Life of Field nt charges of $280 million re million $280 of charges nt to shareholders of the parent company and net loss of loss net and company parent the of shareholders to million lower than in 2019. Net operating income, excluding go excluding income, Net 2019. operating in than lower million reflected the limited tax relie tax limited the reflected mpared to net loss of $82 milli $82 of loss net to mpared orre project, offshore were completed. Work progresse Work completed. were Norway offshore project, orre 2020 compared to a diluted loss per share of $0.27 in 2019, cal 2019, in $0.27 of share per loss diluted a to compared 2020 offshore , Mad Dog 2, Dog Mad Australia, offshore million) was transferred to eq to transferred was million) versely impacted by Covid-19 outb Covid-19 by impacted versely verable withholding taxes and the impact of losses incurred in c in incurred losses of impact the and taxes withholding verable the Group’s cost reduction measures, partly offset by impairme by partlyreductionGroup’smeasures, cost offset the ted to a business combination completed in prior years. years. prior in completed combination business a to ted pairment charges charges pairment 159.8 ( creased Conventional activity in Africa an Africa in activity Conventional creased imarily driven by impairme by driven imarily ment charges, was $259 million for the year, the for million $259 was charges, ment , the Zinia project, offshore , the Sangomar project, offshore Senegal, offshore project, Sangomar the Angola, offshore project, Zinia the Ghana, tained earnings attributable earnings tained e 2 and Nova projects, offshore Norway and Norway offshore projects, Nova and 2 e s $1.64 for the year ended 31 December 2020. 2020. December 31 ended year the for $1.64 s NE project was substantially completed and completedsubstantially was project NE $596 million or 19% compared to 2019. 2019. to compared 19% or million $596 to net operating loss of $3 million inmillion The $3 2019. of loss operating net to emic of approximately $65 million. million. $65 approximately of emic of shares of 298 million and 305 million respective million 305 and million 298 of shares of net income of $1 million).$1 of income net h Sea and lower vessel utilisation. The netThe operat utilisation. vessel lower and Sea h losses of $35 million$35 of losses the net operating loss of $1.0 billion; $1.0 of loss operating net the currency foreign net rela receivable a of recognition on million $16 of gain net

higher vessel utilisation than the prior year and the benefit of benefit the and year priorthe than utilisation vessel higher of $15 million related to ROVs and equipment. equipment. and ROVs to related million $15 of Net operating loss excluding goodwill impairment charges excludingcharges loss goodwill operating impairment Net in 2019. The net operating loss in 2020 was pr was 2020 in loss operating net The 2019. in impairment was $13 million compared million $13 was impairment Net operating (loss)/income excluding goodwill im goodwill excluding (loss)/income operating Net income/(loss) operating Net Sn the and , offshore project, 9B Burullus the year the During SURF and Conventional Conventional and SURF of decrease a billion, $2.6 was Revenue Revenue Revenue goodwill of Impairment (in $ millions) information: financial Selected For the year ended 31 December 2019 Revenue Revenue goodwill of Impairment (in $ millions) information: financial Selected Business Unit Highlights For the year ended 31 December 2020 impact of goodwill impairment charges, wa charges, impairment goodwill of impact income/(loss) Allocationof net $82 of (2019: loss million net $1,105 of year the for loss net The Net loss Net co 2020, December 31 ended year the for billion $1.1 was loss Net

net loss of $84 million) was recognised in re in recognised was million) $84 of loss net (2019: interests non-controlling offshore project, Remediation Turret Jubilee primarily due to: to: dueprimarily • • by: offset partly • project, 2 Phase Julimar the Arabia, Saudi offshore project, Zuluf US Gulf of ,Phas Ærfuglof theÆrfugl, Gulf US Lapa the InBrazil, UK. offshore projects, term contracts with . Certain PLSVs had operations ad operations had PLSVs Certain Petrobras. with contracts term de was There million). $66 (2019: assets of-use Nort the in activities diving Net operating loss, excluding goodwill impair goodwill excluding loss, operating Net term. medium to short the in levels activity Field of Life $9 2020, December 31 ended year the for million $257 was Revenue Net operating loss operating Net jurisdictions where tax credits could not be recognised. recognised. be not could credits tax where jurisdictions Earnings share per December 31 ended year the for $3.67 was share per loss Diluted number average weighted a using impairment charges recognised in the year, together with irreco with together year, the in recognised charges impairment The tax charge for the year ended 31 December 2020 of $33 million $33 of 2020 December 31 ended year the for charge tax The associated with the Covid-19 pand Covid-19 the with associated we charges The recognised. were million $591 of charges impairment goodwill year the During FINANCIAL REVIEW CONTINUED

During the year goodwill impairment charges of $14 million were recognised. The charges were driven by downward revisions to expected activity levels in the short to medium term. Renewables and Heavy Lifting Revenue was $631 million for the year ended 31 December 2020, compared to $217 million in 2019. The increase in revenue was due to increased activity, with the commencement of the Seagreen offshore wind farm project, offshore UK, and progress on the Yunlin project, offshore Taiwan. The Triton Knoll project, offshore UK, was completed during the year. Net operating loss was $40 million in 2020 compared to a net operating loss, excluding goodwill impairment, of $56 million in 2019. The year-on-year decrease in net operating loss was primarily driven by higher activity levels and improved vessel utilisation, partly offset by increased costs on the Triton Knoll project following an incident onboard Seaway Strashnov during the second quarter. Corporate Net operating loss of $143 million for the year ended 31 December 2020 included restructuring costs of $86 million recognised in relation to the Group’s resizing programme and impairment charges of $29 million related to property, plant and equipment and intangible assets. Research and development During the year, research and development costs were $15 million compared to $22 million in 2019. Backlog At 31 December 2020 backlog was $6.2 billion, an increase of $1.0 billion compared with 31 December 2019. Order intake totalling $4.4 billion, including escalations, was recorded in the year. New awards included the Seagreen offshore wind farm project, offshore UK. $3.8 billion of the backlog at 31 December 2020 related to the SURF and Conventional business unit (which included $0.4 billion related to long-term day-rate contracts for PLSVs in ), $0.4 billion related to the Life of Field business unit and $2.0 billion related to the Renewables and Heavy Lifting business unit. $4.0 billion of the backlog is expected to be executed in 2021, $1.6 billion in 2022 and $0.6 billion in 2023 and thereafter. Backlog related to associates and joint ventures is excluded from these figures. Balance sheet Goodwill At 31 December 2020, goodwill was $85 million, a net decrease of $620 million compared with the prior year. During the year goodwill impairment charges of $591 million and $14 million were recognised related to the SURF and Conventional business unit and the Life of Field business units respectively. The charges were triggered by the Covid-19 pandemic and the challenges facing the energy sector which adversely impacted expected future activity levels of the Group. Property, plant and equipment During 2020 additions to property, plant and equipment totalled $177 million (2019: $272 million) which included the completion of the reel-lay vessel, Seven Vega, which commenced operations in the fourth quarter of 2020 and the ongoing conversion of Seven Phoenix to cable lay. Impairment charges totalling $282 million were recognised in the year (2019: $70 million), mainly related to older vessels or vessels with low utilisation forecast in the short to medium term within the SURF and Conventional business unit. Borrowings and lease liabilities Borrowings decreased to $209 million at 31 December 2020 from $234 million at 31 December 2019 due to scheduled repayments. Lease liabilities were $254 million at 31 December 2020, a decrease of $91 million compared with 31 December 2019, the reduction was driven by payments made in the year, a downward revision of expected lease periods and lease terminations. Facilities At 31 December 2020 the Group had facilities of $656 million relating to the Group’s multi-currency revolving credit and guarantee facility, and $800 million relating to the Group’s Euro Commercial Paper Programme, both of which remained unutilised. Share repurchase plans During 2020, the Group repurchased 1,627,968 shares for a total consideration of $10 million. The shares were repurchased under the share repurchase programme authorised by the Board of Directors on 24 July 2019, which is valid until July 2021. At 31 December 2020, the Group directly held 2,326,683 shares (2019: 1,212,860) as treasury shares. Dividends During the year ended 31 December 2020, no dividends were declared or paid to shareholders of the parent company.

56 Subsea 7 S.A. Annual Report 2020 56 | SUBSEA 7 | ANNUAL REPORT 2020 STRATEGIC REPORT GOVERNANCE CONSOLIDATED FINANCIAL STATEMENTS SUBSEA7 S.A FINANCIAL STATEMENTS GLOSSARY – 57 % 57 (3) 3.1 2.6 2.2 2.0 1.9 1.9 1.7 1.7 1.7 1.2 1.0 0.9 0.9 0.8 1.1 1.0 9.5 3.7 3.1 398 765 357 2019 (447) (274) 24.3 31 Dec ding guarantee guarantee d. Thed. ash and ash nditure iabilities iabilities lease liabilities lease on cial assets and assets cial (7) (3) revolving credit revolving 512 398 447 2020 (158) (165) www.subsea7.com www.subsea7.com 31 Dec SUBSEA 7 | ANNUAL REPORT 2020 | t, medium and long-term fun long-term and medium t, net increase in operating l operating in increase net intangible assets of $25 milli $25 of assets intangible the maturity profiles of finan of profiles maturity the . This is provided in response to disclosure of ownership notices notices ownership of disclosure to response in provided is This . ere may be fluctuations as a result of such events as stock lending or or lending as stock such events of result as a may be fluctuations ere 2019. This was mainly related to expe to related mainly was This 2019. inly driven by payments in relation to relation in payments by driven inly ogramme, both of which remain unutilise remain which of both ogramme, relating to the Group’s multi-currency multi-currency Group’s the to relating as a percentage of the total fully paid and issued issued and paid fully total the of percentage a as (a) erns its management of shor of management its erns the accuracy of the analysis. analysis. the of accuracy the and expenditure related to related expenditure and $357 million) which included a included which million) $357 expected funding requirements for the next 12 months with c with months 12 next the for requirements funding expected mme concurrently with the multi-currency revolving credit and credit and multi-currencyrevolving the with concurrently mme rowing rowing bor and banking cash, sufficient to access has it that ensuring neficial ownership neficial ts of borrowings of $25 million (2019: $27 million). million). $27 (2019: million $25 of borrowings of ts d actual cash flows andflows matching dcash actual an analysis of beneficial ownership and fund manager information fund manager and ownership beneficial of analysis an nor NASDAQ OMX can guarantee OMX can guarantee NASDAQ nor to the Group’s Euro Commercial Paper Pr Paper Commercial Euro Group’s the to ber 2020 and their be their and 2020 ber management framework which gov which framework management Commercial Paper Progra Paper Commercial on, the Group had facilities of $656 million $656 of facilities had Group the on, $165 million compared with $274 million used in millionused $274 with compared million $165 monitoring forecast an forecast monitoring ities was $158 million (2019: $447 million), which million), ma $447 was (2019: million $158 was ities s on cash and cash equivalents equivalents cash and cash on s rly Siem Industries Inc.) Inc.) Industries Siem rly t Management LtdManagement t t Management LLP Management t e every reasonable effort has been made to verify the data, th data, been made to the verify has effort reasonable e every Whil register. share 7 VPS the Subsea on custodians all issued to 7 Subsea and neither movements, stock non-institutional other lken Asset Management Ltd Management Asset lken he Vanguard Group, Inc. Inc. VanguardGroup, he rinity Streetrinity Asse Cash and cash equivalents at the end of the year year the of end the at equivalents cash and Cash Increase in restricted cash cash restricted in Increase change rate exchange of Effect Net cash used in financing activities activities usedfinancing cash in Net million). $145 of decrease net (2019: million $192 of was activities investing in used cash Net million) $240 (2019: million $157 of equipment and plant property, on million). $18 (2019: activ financing in used cash Net repaymen scheduled and million) $105 (2019: million $104 of DNB Asset Management AS AS Management Asset DNB StorebrandKapitalforvaltningAS LLC Advisors, Company & Robotti Limited Company Investment SAFE ParetoAssetManagementAS NordeaFunds Oy Forsikring KLP ASForvaltning ODIN Cobas Asset Management, SGIIC, SASGIIC, Management, Asset Cobas Ltd. (UK) Management Investment BlackRock Gestion Mandarine Dimensional FundDimensional Advisors, L.P. InvestAsse Danske common shares of the Company were: were: Company the of shares common Liquidity its meet to liquidity sufficient had Group the 2020, December 31 At Net cash used in investing activities activities usedinvesting cash in Net million. additi $512 In of equivalents cash Net cash generated from operating activities was $447 million (2019: million $447 was activities operating from generated cash Net For the year ended (in $ millions) year the of beginning the at equivalents cash and Cash activities operating from generated cash Net Cash and cash equivalents follows: as summarised are equivalents cash and cash in Movements (a) The datais provided by NASDAQ OMX and isobtained through A BlackRock Institutional Trust Company, N.A. N.A. Company, Trust Institutional BlackRock Company Research & Management Fidelity T T SiemIndustriesS.A. (forme Folketrygdfondet Shareholders Shareholders Decem 31 at shareholders largest 20 The

and liquidity requirements. The Group manages liquidity risk by risk liquidity manages Group The requirements. liquidity and is This facilities. achievedby regularly liabilitiesappropriate. where facility. facility. constraints management Cash risk liquidity a within operates Group The and guarantee facility and $800 million relating million $800 and facility guarantee and Euro the utilise to intend doesnot Group FINANCIAL REVIEW CONTINUED

Covenant compliance The Group’s credit facilities contain various financial covenants including, but not limited to, a minimum level of tangible net worth, a maximum level of net debt to earnings before interest, taxes, depreciation and amortisation, a maximum level of total financial debt to tangible net worth, a minimum level of cash and cash equivalents and an interest cover covenant. During the year all covenants were met. The Group expects to be able to comply with all financial covenants during 2021. Going concern The Consolidated Financial Statements have been prepared under the assumption of going concern. This assumption is based on the level of cash and cash equivalents at the year end, the banking and borrowing facilities in place, the forecast cash flows for the Group and the backlog position at 31 December 2020. Risk management and internal control The Group’s approach to risk management and internal control is detailed in the Risk Management and Governance sections on pages 26 to 51. Financial risk management is as described in Note 32 ‘Financial instruments’. Post balance sheet events Dividends The Board of Directors will recommend to the shareholders at the Annual General Meeting on 14 April 2021 that a special dividend of NOK 2.00 per share be paid, equivalent to a total dividend of approximately $70 million, marking the Board’s confidence in the financial position and outlook for the Group, as well as a continued commitment to capital discipline. Facilities On 24 February 2021, the Group entered into a $500 million five-year amortising loan facility backed by a $400 million guarantee from UK Export Finance. The Group has a two-year availability period during which to draw on the facility, and the facility has a five-year tenor which commences at the end of the availability period or when the facility is fully drawn, if earlier. The facility can be used for general corporate purposes, including to provide working capital financing for services provided from the UK. The facility is guaranteed by Subsea 7 S.A. Outlook After a brief pause in the first half of the year, tendering for oil and gas projects recommenced at a lower level during the second half of 2020 and continues at this pace in 2021. Regions with greater activity include Norway, where fiscal incentives have stimulated an increase in early-stage engineering activity, the , predominantly focused on low-cost tie-backs, and Brazil, where the large, pre-salt fields have low oil price breakevens that continue to attract capital. In addition, Subsea 7 has been selected as preferred supplier for several projects, including Bacalhau, Scarborough, Pecan and Rovuma and management is optimistic that some of these will progress to award during 2021. Tendering in Renewables remains active for projects expected to result in awards to the industry in nine to twelve months’ time including in Asia, Europe and the US. While the market for wind turbine installation work remains competitive, Subsea 7 continues to differentiate itself through its integrated and EPCI contract offerings, leveraging a strong track record in the management of large, complex projects across the globe. Subsea 7’s 2021 results are likely to be adversely impacted by costs associated with the Covid-19 pandemic, including more contagious, new variants of the virus. It is anticipated that revenue in 2021 will exceed the prior year level, predominantly driven by greater activity in Renewables. Revenue in Subsea and Conventional should increase due to the re-phasing of some work from 2020 into 2021. While it is difficult to predict the operational and financial impact of Covid-19 in 2021, Adjusted EBITDA is expected to improve year-on-year and net operating income is expected to be positive.

MANAGEMENT REPORT FOR SUBSEA 7 S.A. (THE COMPANY) Additional information specific to the Unconsolidated Financial Statements of Subsea 7 S.A. Unconsolidated Financial Statements of Subsea 7 S.A. The Unconsolidated Financial Statements of Subsea 7 S.A., the ultimate parent company of the Subsea 7 S.A. Group, are shown on page 141 to page 148. These were prepared in accordance with ’s legal and regulatory requirements and using the going concern basis of accounting described above. The loss for the year ended 31 December 2020 was $0.3 million (2019: profit of $61 million). The loss was mainly as a result of income related to parent company guarantees being more than offset by value adjustments in respect of investments in affiliated undertakings and other operating expenses. It is proposed that the loss of $0.3 million for the year ended 31 December 2020 be allocated to profit and loss brought forward at 1 January 2021 resulting in a profit to be brought forward amounting to $178 million. Own shares held During 2020, the Company repurchased 1,627,968 shares for a total consideration of $10 million. At 31 December 2020 the Company directly held 2,326,683 (2019: 1,212,860) own shares at a carrying amount of $17 million (2019: $14 million). Risk management, internal control and corporate governance The Company’s approach to risk management, internal control and corporate governance is consistent with that applied to affiliates in the Subsea 7 S.A. Group and is detailed in the Risk Management and Governance sections on pages 26 to 51. Financial risk management is described in Note 32 ‘Financial instruments’. Non-financial information required by regulation is provided on pages 1 to 51. By order of the Board of Directors of Subsea 7 S.A. Kristian Siem John Evans Chairman Chief Executive Officer

58 Subsea 7 S.A. Annual Report 2020 58 | SUBSEA 7 | ANNUAL REPORT 2020