Investor Presentation March 2012 Investor Relations Contacts Karen Menzel [email protected] T: +44 (0) 208 210 5568 M: +44 (0) 7766 702481 www.subsea7.com Certain statements made in this announcement may include “forward-looking statements”. These statements may be identified by the use of words like “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “forecast”, “project,” “will,” “should,” “seek,” and similar expressions. These statements include, but are not limited to, statements about expectations as to the Group’s performance in 2012, including expected revenue and Adjusted EBITDA for 2012 and relevant expectations, statements as to the outlook for the Group’s industry, statements contained in the "Outlook" section. The forward-looking statements reflect our current views and assumptions and are subject to risks and uncertainties. The principal risks and uncertainties which could impact the Company and the factors affecting the bibusiness resultsareonoutline d in the “Ris k ftfactors ”section in the C’Company’s AlAnnual RtReport and Financ ia l Sta temen ts. These ftfactors, and others which are discussed in our public filings, are among those that may cause actual and future results and trends to differ materially from our forward-looking statements: actions by regulatory authorities or other third parties; unanticipated costs and difficulties related to the integration of Subsea 7 S.A. and Subsea 7 Inc. and our ability to achieve benefits therefrom; our ability to recover costs on significant projects; the general economic conditions and competition in the markets and businesses in which we operate; our relationship with significant clients; the outcome of legal and administrative proceedings or governmental enquiries; uncertainties inherent in operating internationally; the timely delivery of ships on order and the timely completion of ship conversion programmes; the impact of laws and regulations; and operating hazards, including spills and environmental damage. Many of these factors are beyond our ability to control or predict. Given these factors, you should not place undue reliance on the forward-looking statements. March 2012 Page 2 We are focused on delivering value to shareholders March 2012 Page 3 Well positioned to capture opportunities March 2012 Page 4 Subsea 7 - a leading strategic partner in seabed-to-surface engineering, construction and services SURF Conventional • Global footprint • West Africa focus • Growing market • Strong market • Exppg,gg,erts in design, engineering, • Local expertise fabrication, installation and • Proven execution track commissioning record • Proven execution track record • World-class assets and technology • Northern Europe focus • Regionally focused • Emerging market • Growing market • Leveraging our subsea • Experts in Life-of-Field expertise and know-how solutions • Working with partners to • Specialised assets and develop new economics and innovative technology solutions • Proven track record Renewables Life-of-Field Delivering innovative engineering and technological solutions and proven execution track record to meet our clients needs March 2012 Page 5 Our global resources are deployed in all major offshore locations North Sea, Mediterranean & Canada (NSMC) supports a diverse range of projects in the UK, Norwegian, Danish, Dutch and Russian sectors of the North Sea, Norwegian Sea and Barents Sea. It also covers operations in the Mediterranean and Canada. Asia Pacific & Middle East (APME) supports a diverse range of projects across an area that extends from the Eastern Saudi ArabiaArabiann coast, around the coastline north as far as Russia on the Eastern seaboard. It includes Australia, Africa & Gulf of Mexico New Zealand, the Pacific Islands, Japan (AFGoM) supports a Brazil supports a diverse and Antarctic waters. range of projects in the diverse range of projects in Santos, Campos & Espírito West Africa and the Gulf of Santo basins. Mexico. March 2012 Page 6 Our specialist expertise is focused on seabed-to-surface operations March 2012 Page 7 Deepwater and challenging environments: a growing global market • Successful exploration campaigns / large reserves: – Demand fundamentals are good – Deepwater represents significant and growing proportion of hydrocarbon reserves – Access to deepwater reserves continuing priority for IOCs –Fiilliinancially attractive • Bigger role played by NOCs: – Less ‘sensitive’ to price of oil – National content is key • A more technically challenging environment: – Larger and more complex projects – Risk management paramount March 2012 Page 8 Today’s industry challenges … are Subsea 7’s opportunities Deeper waters and more Proven expertise and challenging environments execution track record Growing size and complexity Large engineering & project of large EPIC contracts management capabilities Fleet size & flexibility Shortage of resources in a Effective Management of growing global market worldwide resources Local content requirements Cultural diversification and tailored local content Risk management and Processes and knowledge reliability paramount management March 2012 Page 9 Well positioned to capture further profitable opportunities North Sea • High levels of tendering driving strong order flow • Higher activity with improved pricing for projects expected to be offshore in 2012+ Gulf of Mexico • Increased activity for subsea projects • Expect contract awards late 2012 and execution late Asia Pacific 2013 and 2014 • Market remains very competitive • Market remains competitive • Further major SURF contracts in West Africa Australia and Malaysia expected to • West Africa: a transition year, with be awarddded to the markktet in Brazil large projects in early stages and 2012; • Further opportunities ahead both lower level of offshore activity • Offshore activity expected 2013+ traditional deepwater and further • Number of major contracts expected pre-salt developments to come to market award in 2012 • Client keen to progress with offshore operations H2 2013 • Delays due to tightness of and 2014 supply chain and administrative • Pricing improving relative to past 18 challenges months Cont inue to see growth opportunit ies in all major markets, albei t at diffdiffiering paces March 2012 Page 10 Fleet enhancement programme: Significant progress during 2011 • Investment focused on core assets, with high technical specifications • Focused on achieving the optimal deployment of the optimal fleet • Over 40 vessels - continue to enhance our fleet to drive profitable growth SURF Conventional Life-of-Field Divest / Release JVs *Oleg Strashnov delivered to the SHL JV March 2012 Page 11 Strengthened further our local presence • Cultural diversification and tailored local content: • We are committed to devel opi ng the local capabilities of the countri es in which we work • We have a diverse international workforce with more than 70 nationalities deployed internationally • Supported by extensive fabrication and onshore facilities • Continued investment in tailored local content March 2012 Page 12 Rich portfolio of technology • We offer a rich portfolio of technology capabilities, innovative design and engggineering solutions to our clients – Including: - Riser technologies - Bundle technology - High performance Pipe-in-Pipe - Mechanical Lined Pipe -Welding - Autonomous Inspection Vehicle March 2012 Page 13 Appendices Financial Highlights March 2011 Page 14 Subsea 7 S.A. five year performance history Continuing operations Total operations Subsea 7 S.A. (formerly Acergy S.A.) Subsea 7 Inc * Reflects Subsea 7 S.A. (formerly Acergy S.A.) for / as at fiscal year 2010 and Subsea 7 Inc. for / as at fiscal year end 2010 March 2012 Page 15 2011: a year of many successes • Delivered strong results in line with expectations • Prepared for the future – well positioned for profitable growth • Combination successfully completed: - Integration ahead of plan - On track to achieve at least the targeted synergies • Broadened and deepened engineering and project management expertise worldwide • Record backlog of $8.5 billion provides good visibility • Streng thened furth er our local presence • Significant progress with fleet enhancement programme March 2012 Page 16 Brazil: Guara Lula NE Project • Q4 2011 recognised loss of c.$50 million; which represents total loss over the lifetime of project, including additional contingencies • Acceptance of design and engineering testing progressing to plan with full client approval • Project results affected by: - Final environmental permit for Parana spool and logistics base not issued - Operations to take place at Ubu spoolbase at higher cost and expected lower efficiency; and impact of project schedule due to location - Significant pressures on local supply chain has impact on schedule and overall cost of project; increased contingencies allowed in Q4 result • Technical solution developed for Guara Lula NE Project and experience gained in early stages of this project prepares us well for future pre-salt developments March 2012 Page 17 Income statement highlights Three Thirteen Months Months Ended Ended In $ millions, except Adjusted EBITDA margin, share and per share data Dec.31.11 Dec.31.11 Unaudited Audited Revenue from continuing operations 1,417 5,477 Net operating income from continuing operations 137 641 Income before taxes from continuing operations 126 627 Taxation (19) (176) Net income from continuing operations 107 451 Net income – total operations 107 451 Adjusted EBITDA – continuing operations