CITI 2021 GLOBAL ENERGY CONFERENCE - May 11, 2021 - Transocean
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CITI 2021 GLOBAL ENERGY CONFERENCE May 11, 2021
LEGAL DISCLAIMER
Forward-Looking Statements
The statements described in this presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements contain words such as "possible," "intend," "will," "if," "expect," or other similar
expressions. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause
actual results to differ materially include, but are not limited to, estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and
locations, planned shipyard projects and other out-of-service time, sales of drilling units, timing of the company’s newbuild deliveries, operating hazards and delays, risks
associated with international operations, actions by customers and other third parties, the future prices of oil and gas, the intention to scrap certain drilling rigs, the success of
our business following the acquisitions of Songa Offshore SE and Ocean Rig UDW Inc., and other factors, including those and other risks discussed in the company's most recent
Annual Report on Form 10-K for the year ended December 31, 2020, and in the company's other filings with the SEC, which are available free of charge on the SEC's website at:
www.sec.gov. Should one or more of these risks or uncertainties materialize (or the other consequences of such a development worsen), or should underlying assumptions prove
incorrect, actual results may vary materially from those indicated or expressed or implied by such forward-looking statements. All subsequent written and oral forward-looking
statements attributable to the company or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not
place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to
publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise
may be required by law. All non-GAAP financial measure reconciliations to the most comparative GAAP measure are displayed in quantitative schedules on the company’s
website at: www.deepwater.com.
This presentation, or referenced documents, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and do not constitute an offering prospectus within
the meaning of the Swiss Financial Services Act (“FinSA”). Investors must rely on their own evaluation of Transocean and its securities, including the merits and risks involved.
Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean.
2
OUR LEADERSHIP POSITION
39 Floaters – 100% UDW & HE *
Unmatched UDW & HE Experience
$7.4 Billion in Backlog **
Liquidity of $2.5B ***
* Includes 2 newbuilds under construction and the Transocean Norge (33% JV ownership interest)
** As of April 28, 2021
*** As of March 31, 2021.
3
TRANSOCEAN’S PLAYBOOK
DELIVER SAFE, PRESERVE HIGH-GRADE
RELIABLE, & LIQUIDITY FLEET
EFFICIENT
OPERATIONS
4
FLEET TRANSFORMATION
Divesture Acquisition
Borr Drilling Transocean
10 Norge
60 Acquisition Acquisition
10
17 10
11 4
6 6 3
40 8 3 2
14
5
7 12 14 10
7 7
20
29 28 30 27 31 28 29
0
2015
2015 2016
2016 2017
2017 2018
2018 2019
2019 2020
2020 2021*
2021
Total ** 71 61 56 47 49 45 39
Scrapped 17 11 14 9 10 7 -
~ Average Age 21 years 19 years 17 years 17 years 14 years 14 years 10 years
* Includes Deepwater Atlas and Deepwater Titan under-construction
** Does not include units classified as held for sale
5
FLEET TRANSFORMATION SINCE 2014
75 Divestitures Value-Added Enhancements
15 Ultra- Transocean Norge
Deepwater 15 Jackups
Songa Offshore
45 Deepwater /
Ocean Rig
Midwater
Deepwater Titan
Deepwater Atlas
6
FLEET TRANSFORMATION TO UDW AND HE FLOATERS
January 2014 May 2021*
Average Age Floaters – ~21 years Average Age Floaters – ~10 years
(UDW – ~9 years)
UDW & HE Floaters
Mid / Deep Water
15 HS Jackups
34
~45% 100%
UDW & HE UDW & HE
41 39
* Includes rigs under construction and the Transocean Norge (33% JV ownership interest); reflects the retirement of the Leiv Eiriksson
7
BACKLOG ~3x NEAREST COMPETITOR
$8.0
$7.0
$6.0
USD Billions
$5.0
$4.0
$3.0
$2.0
$1.0
$0.0
RIG ODL Maersk NE / PACD SDRL* VAL DO
Source: Latest company filings
* Includes Seadrill Limited and Seadrill Partners
8
TRANSOCEAN’S INDUSTRY-LEADING BACKLOG
Estimated $7.4 Billion* Contract Backlog **
2.5
94% with Investment Grade Companies
$2.0
2.0 Harsh Environment
$1.6 $1.6 Ultra-Deepwater
USD Billions
1.5
$1.3
0.6 0.7
0.4 $0.9
1.0 2.0
0.5 1.0 0.9 0.9 0.9
0.0
2021 2022 2023 2024 2025-28
*As of April 28, 2021
**Contracted operating dayrate multiplied by the contract duration for future periods as of latest company filings
9
BACKLOG CONVERTED TO CASH
REVENUE EFFICIENCY
Three-year Average - 96% 2020 Highlights
REVENUE & EBITDA
100% 7,200 Adjusted 40%
6,600
No ‘Lost Time’ Incidents
90% 6,000 35%
TRIR of 0.24 (second 5,400
80% lowest in RIG history) 4,800 30%
USD Millions
4,200
70% 97% uptime (new best)
3,600 25%
Adj. EBITDA $1.2B 3,000
60% 2,400 20%
Adj. EBITDA Margin 36% 1,800
50% 1,200 15%
600
40% 0 10%
2018 2019 2020
2018 2019 2020
Adj Revenue Adj EBITDA Adj EBITDA Margin
10PATH TOWARDS DE-LEVERAGING THE BALANCE SHEET
Oil Demand Increasing Rig Supply Declining Driller Pricing Power
U.S. petroleum consumption* -Industry Consolidation Increasing oil demand and
million barrels per day -Fleet Rationalization decreasing rig supply leads to
2020 -High cost to reactivate higher dayrates and ability to
30
history projections de-lever
25
20
15
10
5
0
2000 2010 2020 2030 2040 2050
*EIA -High Economic Growth Scenario
1111PRESERVE LIQUIDITY
6.0
5.0
4.0 Estimated ~$350M secured financing
~$0.7B-$0.9B ~$1.5B capacity on the Deepwater Titan
USD Billions
3.0 ~$1.3B
2.0 ~$0.9B
~$1.2B ~$1.2B -$1.4B
1.0 ~$0.8B-$1.0B
0.0
Cash & Short-term Revolving Credit Operating Cash Flows CapEx / Investments Debt Due through Projected Liquidity @
Investments at Facility through 2022 through 2022 (2) 2022 12/31/22 (3)
3/31/21 (1)
(1) Includes approximately $200M of restricted cash for debt amortization
(2) Includes approximately $30M investment in the Transocean Norge joint venture.
(3) Excludes an additional $200M of revolving credit facility permitted as part of the facility’s $500M accordion feature.
12INVESTMENT IN TECHNOLOGY
Drilling Safety Drilling Efficiency Reduced Emissions
Deepwater Conqueror Transocean Enabler Transocean Spitsbergen
Patented HaloGuard℠ Automated Drilling Patented Hybrid
Drill Floor Safety Control Power System
System
ADC Upgrade for 3 SEA – Smart
6 Additional Floaters Remaining Cat-D Rigs Equipment Analytics
Scheduled for + Spitsbergen + installed on 19 rigs
HaloGuard℠ Upgrade Norge
13HALOGUARD℠ DRILLFLOOR SAFETY SYSTEM
Industry-first technology that
provides ability to locate and track
personnel on drillfloor and alert
them when in close proximity to
moving equipment, and if
necessary, halt moving equipment
to protect the crewmember
14
14INDUSTRY FIRST – HYBRID POWER
Provides Ability to Run Rig Thrusters off Battery Power
Currently Installed on the Transocean Spitsbergen
Reduces Fuel Consumption & Emissions
15SMART EQUIPMENT ANALYTICS
Smart Equipment Analytics (SEA): Customized
analytics that evaluate real time data through
sensors, operational and maintenance data that
help ensure our rigs operate at optimum levels
19 Rigs Live in SEA: Energy awareness, power
consumption and emissions monitoring
applications running with real time data
16
16ENERGY AWARENESS – FUEL CONSUMPTION AND GHG EMISSIONS
Power Consumers Dashboard
Energy Awareness: Provides detailed
understanding of main power consumers
and how they respond under different Energy Awareness Dashboard
operational conditions
Power Consumption: Engine data
monitored against its design to provide
awareness for optimum operation of
power plant as well as uses of power
Emissions: Real time GHG emissions
monitoring system
Emissions Dashboard
17FLOATER OPPORTUNITIES – START DATE NEXT 18 MO.
Opportunity Trend (TTM)
100
75
50
4
25
10
0
Rig Years # Programs
1 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1'21
1 1
1 1
11
2
1 1
2 2
2 1 1
4 1
3 years 4
Benign 1
# Number of programs
51 rig years to be awarded
74 programs
18
Source: IHS Markit May 2021: Open Floater demand incl. pre-tender, tender + Transocean MarketingOUR LEADERSHIP POSITION
39 Floaters – 100% UDW & HE *
Unmatched UDW & HE Experience
$7.4 Billion in Backlog **
Liquidity of $2.5B ***
* Includes 2 newbuilds under construction and the Transocean Norge (33% JV ownership interest)
** As of April 28, 2021
*** As of March 31, 2021.
19CITI 2021 GLOBAL ENERGY CONFERENCE May 11, 2021
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