Investor Presentation November 2019 - Maersk Drilling (CSE: DRLCO)

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Investor Presentation November 2019 - Maersk Drilling (CSE: DRLCO)
Investor Presentation
    November 2019
Maersk Drilling (CSE: DRLCO)
Investor Presentation November 2019 - Maersk Drilling (CSE: DRLCO)
Important notice                                                                                                                                                                                                                 Investor Presentation         2

Forward-looking statements
This presentation contains certain forward-looking statements (being all statements that are not entirely based on historical facts including, but not limited to, statements as to the expectations, beliefs and future business, contract terms, including
commencement dates, contract durations and day rates, rig availability, financial performance and prospects of The Drilling Company of 1972 A/S, hereinafter referred to as “Maersk Drilling” or “the Company”). These forward-looking statements are
based on our current expectations and are subject to certain risks, assumptions, trends and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements due to external factors, including, but
not limited to, oil and natural gas prices and the impact of the economic climate; changes in the offshore drilling market, including fluctuations in supply and demand; variable levels of drilling activity and expenditures in the energy industry; changes in
day rates; ability to secure future contracts; cancellation, early termination or renegotiation by our customers of drilling contracts; customer credit and risk of customer bankruptcy; risks associated with fixed cost drilling operations; unplanned
downtime; cost overruns or delays in transportation of drilling units; cost overruns or delays in maintenance, repairs, or other rig projects; operating hazards and equipment failure; risk of collision and damage; casualty losses and limitations on
insurance coverage; weather conditions in the Company’s operating areas; increasing costs of compliance with regulations; changes in tax laws and interpretations by taxing authorities, hostilities, terrorism, and piracy; impairments; cyber incidents; the
outcomes of disputes, including tax disputes and legal proceeding; and other risks disclosed in Maersk Drilling’s Annual Reports and company announcements. Each forward-looking statement speaks only as of the date hereof, and the Company
expressly disclaims any obligation to update or revise any forward-looking statements, except as required by law.

Third-party data and information
The IHS Markit reports, data and information referenced herein (the "IHS Markit Materials") are the copyrighted property of IHS Markit Ltd. and its subsidiaries (“IHS Markit”) and represent data, research, opinions or viewpoints published by IHS Markit,
and are not representations of fact. The IHS Markit Materials speak as of the original publication date thereof and not as of the date of this document. The information and opinions expressed in the IHS Markit Materials are subject to change without
notice and IHS Markit has no duty or responsibility to update the IHS Markit Materials. Moreover, while the IHS Markit Materials reproduced herein are from sources considered reliable, the accuracy and completeness thereof are not warranted, nor are
the opinions and analyses which are based upon it. IHS Markit is a trademark of IHS Markit. Other trademarks appearing in the IHS Markit Materials are the property of IHS Markit or their respective owners.

The data ("Rystad Data") included in this document sourced to Rystad Energy AS ("Rystad Energy") is included on an "as is” basis without any warranties of any kind, either express or implied. The Rystad Data speak as of the original publication date
thereof and not as of the date of this document. The information and opinions expressed in the Rystad Data are subject to change without notice and Rystad has no duty or responsibility to update the Rystad Data. Rystad Energy expressly disclaims any
and all legal liability or responsibility for the accuracy, completeness or fitness for a particular purpose (e.g. investment activities), or for the usefulness of any information used or disclosed in this document.

About Maersk Drilling
Maersk Drilling (CSE: DRLCO) owns and operates a fleet of 23 offshore rigs specialising in harsh-environment and deepwater drilling operations. With more than 45 years of experience operating in the most challenging environments Maersk Drilling
provides safe, efficient, and reliable drilling services to oil and gas companies around the world. Headquartered in Denmark, Maersk Drilling employs 2,850 people. For more information about Maersk Drilling, visit www.maerskdrilling.com.

                                                                                                                                                                                                                                       .
Investor Presentation November 2019 - Maersk Drilling (CSE: DRLCO)
Highest cash-flow generation at lowest risk in offshore drilling                                                                                                                                                                                           Investor Presentation         3

    Highest cash-flow generation                                                                    Least levered offshore driller                                                                   Best balance sheet
    Ranked aggregate free    cash-flow(1)   (2018-2019 Q2), USDm                                    Ranked leverage   ratio(2)                                                                       Ranked market capitalisation to Enterprise Value(4)

                                                                                                                                                               52.1x                                  69%
     488
              338

                     (165) (169) (183)                                                                                                                                                                        34%
                                                                                                                                              23.4x 23.6x                                                              32%
                                                                                                                                                                                                                               30%
                                                (317)                                                                                                                                                                                  28%
                                                        (359) (385)                                                                                                                                                                             25% 24%
                                                                       (526)                                                          15.5x

                                                                                                                      10.3x 10.8x                                                                                                                               12%

                                                                                (911)                         4.6x                                                                                                                                                       7%
                                                                                                      2.1x                                                                                                                                                                         2%
                                                                                                                                                                        n.m.    n.m.

   Maersk #2           #3      #4      #5        #6      #7     #8       #9     #10                Maersk #2           #3        #4     #5      #6      #7       #8     #9(3) #10(3)                Maersk #2           #3      #4      #5       #6       #7        #8   #9        #10
   Drilling                                                                                        Drilling                                                                                         Drilling

                                                                                                                                                                                                                                                                .

(1) Free cash-flow defined as cash-flow from operating activities less capital expenditures (additions to property, plant and equipment) (2) Latest reported net debt to latest reported LTM EBITDA (3) Not meaningful as due to negative LTM EBITDA or
leverage ratio above 60x (4) Data as of 26 November 2019
Note: Peer group includes Borr Drilling, Diamond Offshore, Noble Corporation, Odfjell Drilling, Pacific Drilling, Seadrill, Shelf Drilling, Transocean and Valaris. Peers are sorted by rank in each of the respective charts.
Source: Bloomberg, peer filings
Investor Presentation November 2019 - Maersk Drilling (CSE: DRLCO)
A unique strategic and financial position                             Investor Presentation   4

  Unparalleled CJ70                  Unique customer   High revenue
  jack-up fleet                      relations and     visibility and
                                     partnerships      financial flexibility

                                                                           .
Investor Presentation November 2019 - Maersk Drilling (CSE: DRLCO)
Strategic
    position
Investor Presentation November 2019 - Maersk Drilling (CSE: DRLCO)
Versatile offshore rig fleet serving customers globally                                          Investor Presentation   6

            Rig types                           Geography                    Customers
            Number of rigs by rig type          Current areas of operation   Current customers

                                         15
 Jack-ups

                                         rigs
                  Jack-ups

                                         4
                                         rigs
            Semi-submersibles
 Floaters

                                         4
                                         rigs
                  Drillships

                                                                                                      .
Investor Presentation November 2019 - Maersk Drilling (CSE: DRLCO)
North Sea jack-up fleet generating the largest share of revenue                                                                                                                                                     Investor Presentation   7

    Revenue split by rig type(1)                                                                     Revenue split by geographic area                             Revenue split by customers
    Share of total revenue, 2018                                                                     Share of total revenue, 2018                                 Share of total revenue, 2018

                                                                                                                                    10%
                                                                                                                                                                                        19%
                                                                                                                       5%                                                                                               24%

                 37%

                                                                                                                                                                            10%

                                                                                                               26%
                                                                                                                                                            59%
                                                                    63%
                                                                                                                                                                                                                                 20%
                                                                                                                                                                                  12%

                                                                                                                                                                                                        15%

                                   Jack-ups       Floaters                                                                      North Sea   Asia                                              Aker BP         BP    Equinor
                                                                                                                                Africa      Rest of World                                     Total           Eni   Others

                                                                                                                                                                                                                             .

(1) Excluding USD 3m of unallocated revenue, equal to approximately 0.2% of total revenue for 2018
Investor Presentation November 2019 - Maersk Drilling (CSE: DRLCO)
3
     Maersk Invincible

                                                                                    Years

                         3
    Maersk Highlander

                         4
     Maersk Integrator                                                                      Jack-up fleet age

                         5
    Maersk Interceptor

                                           Economic rig life time – 25 years

                         5
       Maersk Intrepid

                             10
      Maersk Reacher

                             10
       Maersk Resolve

      Maersk Resilient       11
                             11

      Maersk Resolute
                             11

     Maersk Convincer
                                 12

    Maersk Completer
                                      15

       Mærsk Inspirer
                                      16

     Mærsk Innovator
                                                    26

        Mærsk Gallant
                                                                                                                Modern fleet with substantial future earnings capacity

                                                                               33

      Maersk Guardian
                         4
                                                                                    Years

      Maersk Voyager
                         5

        Maersk Valiant
                                                                                            Floater fleet age

                         5

      Maersk Venturer
                                           Economic rig life time – 25 years

                         5

        Maersk Viking
                         5

        Maersk Viking
                             9

      Maersk Deliverer
                             10

     Maersk developer
.
                             10

    Maersk Discoverer
                                                                                                                               Investor Presentation

                                      16

      Maersk Explorer
                                                                                                                               8
Investor Presentation November 2019 - Maersk Drilling (CSE: DRLCO)
Harsh-environment focused jack-up fleet                                                                                                                                                                       Investor Presentation     9

                                                                                                                                                                                                Rated water            Rated drilling
  Rig name                               Rig type                     Design                                                             Delivery year   Harsh environment   Norwegian AoC(1)
                                                                                                                                                                                                depth (ft.)            depth (ft.)

  Mærsk Innovator                        Jack-up                      MSC CJ70-150 MC                                                    2003            Yes                 Yes                492                    30,000

  Mærsk Inspirer                         Jack-up                      MSC CJ70-150 MC                                                    2004            Yes                 Yes                492                    30,000

  Maersk Integrator                      Jack-up                      MSC CJ70-X150 MD                                                   2015            Yes                 Yes                492                    40,000

  Maersk Interceptor                     Jack-up                      MSC CJ70-X150 MD                                                   2014            Yes                 Yes                492                    40,000

  Maersk Intrepid                        Jack-up                      MSC CJ70-X150 MD                                                   2014            Yes                 Yes                492                    40,000

  Maersk Invincible                      Jack-up                      MSC CJ70-X150 MD                                                   2016            Yes                 Yes                492                    40,000

  Maersk Reacher                         Jack-up                      MSC CJ50-X100 MC                                                   2009            Yes                 Yes                350                    30,000

  Maersk Resilient                       Jack-up                      MSC CJ50-X100 MC                                                   2008            Yes                 No                 350                    30,000

  Maersk Resolute                        Jack-up                      MSC CJ50-X100 MC                                                   2008            Yes                 No                 350                    30,000

  Maersk Resolve                         Jack-up                      MSC CJ50-X100 MC                                                   2009            Yes                 No                 350                    30,000

  Maersk Highlander                      Jack-up                      Friede & Goldman JU2000E                                           2016            Yes                 No                 400                    30,000

  Mærsk Gallant                          Jack-up                      CJ62-S120 JU                                                       1993            Yes                 Yes                394                    25,000

  Maersk Guardian                        Jack-up                      Hitachi Zosen, self-elevating cantilever unit                      1986            Yes                 No                 350                    n/a(2)

  Maersk Completer                       Jack-up                      Baker Pacific Class 375                                            2007            No                  No                 375                    30,000

  Maersk Convincer                       Jack-up                      Baker Pacific Class 375                                            2008            No                  No                 375                    30,000
                                                                                                                                                                                                                   .

(1) Acknowledgement of Compliance (2) Unit working as an accommodation rig. Derrick and drilling equipment have been removed
Note: For information about fleet contracting status, please see Maersk Drilling’s latest Fleet Status Report available at investor.maerskdrilling.com
Investor Presentation November 2019 - Maersk Drilling (CSE: DRLCO)
Position as market-leader in Norway centred around CJ70 jack-up rigs                                                                                                                                                                                                Investor Presentation           10

 Eight rigs capable of working in Norway                                                                 Unmatched experience in Norway                                                                           Leader in the ultra-harsh environment segment
 Maersk Drilling ultra-harsh environment jack-up fleet and design                                        Number of wells drilled in Norway using jack-up rigs over the period 1990-                               Number of ultra-harsh environment jack-up rigs per drilling contractor(2),
                                                                                                         2018(1), ranked                                                                                          ranked

                    CJ70s                                      Others
                                                                                                                  415

                                                                                                                                                                                                                             2

 Mærsk Inspirer             Mærsk Innovator              Maersk Reacher

                                                                                                                                         147                                                                                 6
Maersk Integrator         Maersk Interceptor              Maersk Gallant
                                                                                                                                                                                                                                                                           1
                                                                                                                                                                                                                                                   4

                                                                                                                                                               34                                                                                                          2
                                                                                                                                                                                     19                                                                                                        1

 Maersk Intrepid            Maersk Invincible                                                               Maersk Drilling              #2                    #3                 Others,                            Maersk Drilling              #2                       #3                #4(3)
                                                                                                                                                                                 combined
                                                                                                                                                                                                                                                       Others         CJ70

 (1) Excludes drilling contractors that have drilled less than five wells during the period 1990-2018. Excludes well drilled by drilling contractors not specified (i.e. ‘unknown’). Excludes wells drilled by E&P companies (e.g. Equinor). ‘Others’ includes AMNGR and
                                                                                                                                                                                                                                                                               .

 Transocean. ‘Valaris’ includes wells drilled by both Ensco and Rowan. (2) Excluding two ultra-harsh environment jack-up rigs owned by Equinor (3) Rig does not have the required Acknowledgement of Compliance (AoC) certification to operate in Norway
 Source: IHS Markit – RigPoint, Rystad
CJ70 – the largest and most capable jack-up rigs                                                                                                                                                                                           Investor Presentation   11

                                                             GustoMSC                                 KFELS                                   F&G                                  LT 219-C                               GustoMSC           F&G
                                                               CJ70                                   N Class                              JU-3000N                              Super Gorilla                              CJ50           JU-2000E

      Leg length                                                100%                                    84%                                    82%                                    88%                                                     81%
                                                                                                                                                                                                                              71%

      Water depth                                               100%                                    89%                                    83%                                    86%                                                     83%
                                                                                                                                                                                                                              73%

      Drilling depth                                            100%                                    95%                                    95%                                    95%                                     81%             86%

      Variable load                                             100%
                                                                                                                                               60%                                    68%
                                                                                                        42%                                                                                                                   41%             39%

      Crane capacity                                            100%                                    80%                                                                                                                   80%
                                                                                                                                               66%                                     61%                                                    69%

      Cantilever lateral                                        100%
                                                                                                        64%                                    42%                                                                            64%             42%
                                                                                                                                                                                      28%

      Cantilever reach                                          100%                                                                                                                  90%
                                                                                                        71%                                     71%                                                                           66%             71%

      Quarters capacity                                         100%                                                                           100%                                                                                           90%
                                                                                                        80%                                                                           80%                                     80%
                                                                                                                                                                                                                                                .

Note: Percentages are calculated as an index based on the highest number in each of the different specification categories. Only rigs in Maersk Drilling’s peer group are included. Specifications may vary for rigs of similar designs.
Source: IHS Markit – RigPoint
The CJ70s are contributing to resource management in all modes                        Investor Presentation   12

                        Valhall Plug & Abandonment               Hanz appraisal

                        Maersk Invincible                        Maersk Intrepid

                        Gina Krog platform                       Oda subsea development

                        Maersk Integrator                        Maersk Interceptor

                                                                                           .
CJ70 case study: Oda Field subsea development                                                                                                                                                    Investor Presentation   13

    Our technical proposals, solutions                                        …resulted in significant project cost savings        Example of how we drove down time spent
    and ability to work as one team…                                          through early completion                             on a drilling riser
                                                                              Number of days                                       Hours spent per repetition

                                                                                                             -31%
                                                                                   234                                                  72.0
                                                                                                  223
                                                                                                                    19%                                                               “The [CJ70] XLE’s are so
                                                                                                             189                                                                          efficient that it is
                                                                                                                           154
                                                                                                                                                                                       actually logistics that
                                                                                                                                                                                      become one of the key
                                                                                                                                                                                       challenges in projects”
                                                                                                                                                                                         – Well Operations
                  ONE TEAM                                                                                                                                                            Manager, Spirit Energy
                                                                                                                                                      11.0
                WELL PREPARED                                                                                                                                     7.0        5.5

                                                                              P50 at notice    P50 at        P10          Actual     Customer       1st time    2nd time   3rd time
                                                                              of assignment drilling start                           estimate

                                                                                                                                                                                                      .

Note: P50 and P10 indicate 50% and 10% probability of outcome, respectively
CJ70 case study: Valhall Plug & Abandonment                                                                                                        Investor Presentation     14

                                              Significantly reducing well time spent in Plug & Abandonment campaign
                                              Number of days spent per well

                                              # Operating days
                                              120
                                               110                                    Maersk Reacher                Maersk Invincible
                                                                                      Average = 61 days             Average = 30 days
                                              100
                                               90
                                               80
                                               70
                                               60
                                                                                                                                                     High-complexity wells
                                               50
                                               40
                                               30
                                               20
                                               10
                                                0
                                                      1   2    3   4    5     6   7   8   9   10    11    12   13    14   15   16   17   18   19 20 21 22 23 24 25 26

                                                                                                               Well #

                                                                                                                                                        .
CJ70-efficiency provides significant total well cost savings

     Illustrative example                                                                             CJ50                                                    CJ70

     Day rate                                                                                           150                                                   300
     (USDk/day)

     Financial uptime                                                                                  99%                                                    99%
     (Average across segment)

     Days per well                                                                                       61                                                    30
     (Drilling)

     Days on contract                                                                                  739                                                    364
     (Total, based on 12-well programme)

     Drilling days                                                                                     732                                                    360
     (Days on contract * financial uptime)

     Drilling cost                                                                                      110                                                   108
     (Day rate * drilling days, USDm)

     Spread cost                                                                                       222                                                    109
     (Based on USD 300k/day on contract, USDm)

     Total well cost                                                                                   332                                                     217
     (Drilling cost + spread cost, USDm)

Note: Above is an illustrative example. Spread cost comprises the total cost to drill a well, excluding drilling cost, and will vary from project to project, but will typically comprise 40%
and 60% of the total well cost.

                                                                                                                                                                                                .

15        Investor Presentation
The CJ70 market has historically enjoyed higher utilisation and day rates                                                                                                                                      Investor Presentation          16

CJ70-utilisation versus all North Sea(1) jack-ups                                                                                   Jack-up fixtures(2) and corresponding day rates in the North Sea(1)
Total monthly utilisation                                                                                                           Jack-up fixtures in the North Sea and CJ70-examples (in orange)

Utilisation                                                                                                                         Day rate (USDk/day)
100%                                                                                                                                500

                                                                                                                                    450

80%                                                                                                                                 400

                                                                                                                                    350

60%                                                                                                                                 300

                                                                                                                                    250

40%                                                                                                                                 200

                                                                                                                                    150

 20%                                                                                                                                100

                                                                                                                                     50

  0%                                                                                                                                   -
    2010         2011        2012        2013        2014        2015        2016        2017       2018        2019         2020       2010     2011     2012      2013      2014     2015      2016   2017    2018       2019        2020

                                                CJ70’s          All North Sea jack-ups

                                                                                                                                                                                                                    .

(1) North Sea defined as Denmark, Netherlands, Norway and UK (2) Only fixtures with publicly available day rates are shown
Source: IHS Markit – RigPoint
Subsea development to become increasingly important offshore Norway                                                                                                                                                                       Investor Presentation        17

    Average size of discoveries has declined over the past                                           ...however, more discoveries are being developed,                                 Phasing into existing infrastructure will be most likely
    20 years...                                                                                      calling for new solutions to maintain profitability                               development solution for majority of discoveries
    Development of resources and number of discoveries                                               Average size at first PDO(3) and number of approved plans                         Discoveries and resources in portfolio by most profitable solution

    Million scm oe(1)                                                   # Discoveries                Million scm oe(1)                                                       # Plans   Million scm oe(1)                                              # Discoveries
    1,800                                                                         100                210                                                                33       35    500                                                           57           60

    1,600                                                                         90                                                                      29                           450
                                                                                                     180                                     27                                  30                                                                               50
    1,400                                                                         80                                                                                                   400

                                                                                  70                 150                                                                         25    350
    1,200                                                                                                                                                                                                                                                         40
                                                                                  60                                                                                                   300
    1,000                                                                                            120                                                                         20
                                                                                  50                                            15                                                     250                                                                        30
     800                                                                                              90                                                                         15
                                                                                  40                                                                                                   200                                               21
      600                                                                                                         10                                                                                                                                              20
                                                                                  30                  60                                                                         10    150
      400                                                                         20                                                                                                   100
                                                                                                      30                                                                         5                                                                                10
      200                                                                         10                                                                                                    50         2            2           3

         -                                                                        -                     -                                                                        -        -                                                                       -
             1999 2001 2003 2005 2007 2009 2011 2013 2015 2017                                                  1970s        1980s         1990s         2000s      2010s                     New stand- New stand- Wellhead         Well(s)  Subsea
                                                                                                                                                                                              alone fixed   alone   platform          from development
                                                                                                                                                                                                facility  floating   tied to         existing  tied to
                                                                                                                                                                                                           facility existing         facility existing
                        Liquids(2)       Discoveries in portfolio (RHS)                                                                                                                                              facility                 facility
                        Gas                                                                                                Aproved plans (RHS)           Average size                                            Discoveries (RHS)        Size

                                                                                                                                                                                                                                                 .

(1) Standard Cubic Meters of Oil Equivalent (2) Consists of oil, natural gas liquids (NGL) and condensate (3) PDO = Plan for Development and Operation
Source: Norwegian Petroleum Directorate
The CJ70s’ subsea advantages put them in front for future employment   Investor Presentation   18

              Main CJ70 subsea advantages(1)

           Reduced downtime caused by weather

                   Improved equipment lifetime

                Optimised riser and BOP handling

             Potential cost and emissions upsides

                                                                            .

(1) Compared to the use of a semisubmersible rig
The CJ70s are fronting the drive towards low-emission drilling                                                                          Investor Presentation   19

                                              1. Maersk Invincible running entirely on shore-power

                                              During part of 2017 and 2018, the rig was running on 100% hydropower via a 294 km long cable to a Norwegian
                                              hydropower plant

                                              In addition to reducing emissions, the solution also reduces cost and time for maintenance and improves work
                                              environment due to reduced noise and vibrations

                                              2. Energy and Emissions Efficiency (EEE) software

                                              Fully digitalised fuel an energy monitoring system providing near real-time information to be used for learning
                                              and optimisation towards more fuel-efficient behaviour

                                              The system has been used on the Maersk Integrator since 2018, significantly reducing fuel consumption

                                              3. Selective Catalytic Reduction (SCR)

                                              Captures NOx exhausts and use ammonia injections to convert the gas into harmless water and nitrogen.

                                              By installing SCR units on all the rig’s engine exhaust pipes, Maersk Drilling expects to be able to reduce NOx
                                              emissions by more than 90%, while also reducing soot emissions significantly

                                              4. Hybrid upgrades on Norwegian jack-ups

                                              Combining hybrid power, data intelligence (EEE) and cleaning technology (SCR), Maersk Drilling’s hybrid jack-
                                              ups will push the boundaries for low-emission drilling on conventionally powered offshore drilling rigs

                                                                                                                                             .
Modern deepwater-focused floater fleet                                                                                                                                                                    Investor Presentation   20

  Rig name                                Rig type                                   Design                                Delivery year                 Generation   Rated water depth (ft.)   Rated drilling depth (ft.)

  Maersk Valiant                          Drillship                                  Samsung 96K                           2014                          7G           12,000                    40,000

  Maersk Venturer                         Drillship                                  Samsung 96K                           2014                          7G           12,000                    40,000

  Maersk Viking                           Drillship                                  Samsung 96K                           2014                          7G           12,000                    40,000

  Maersk Voyager                          Drillship                                  Samsung 96K                           2015                          7G           12,000                    40,000

  Maersk Deliverer                        Semisubmersible                            DSS21-DP2                             2010                          6G           10,000                    32,800

  Maersk Developer                        Semisubmersible                            DSS21-DP2                             2009                          6G           10,000                    32,800

  Maersk Discoverer                       Semisubmersible                            DSS21-DP2                             2009                          6G           10,000                    32,800

  Maersk Explorer                         Semisubmersible                            DSS10-CAM-M                           2003                          5G           3,281                     30,000

                                                                                                                                                                                                               .

Note: For information about fleet contracting status, please see Maersk Drilling’s latest Fleet Status Report available at investor.maerskdrilling.com
Norway-experience successfully transferred to floater operations                                                                                   Investor Presentation   21

Transferring Norway capabilities to floater operations                          Selected operational achievements in the floater segment

                                                                                      Maersk Developer                                     Maersk Venturer
                                                                                                                                     World’s deepest well (3,411
                                                                                Reactivation from warm-stacking
                                                                                                                                 meters) drilled with 99.2% uptime
                                                                                 in just eight weeks, completing
                                                                                                                                  in strong currents up to 3 knots
                              Technology
                                                     Operational   Customer     the operation with 99.3% uptime
                                                     excellence    centricity

 Norway

 US GoM                                                                              Maersk Discoverer                                     Maersk Voyager
                                                                                   Longest well drilled in the                    In 15 months, the rig drilled 15
 Asia Pacific                                                                    Mediterranean and deepest in                    new wells, re-entered three well,
                                                                                Egypt. Completed 64 days ahead                    drilled four side-track sections
 Africa                                                                                  of AFE target                           and ran lower completion on nine
                                                                                                                                   wells. All completed 200 days
                                                                                                                                         ahead of schedule
 South America

                                                                                                                                                        .
Unique customer service delivery model drives partnerships and value pricing                                                            Investor Presentation      22

 Winning with or without tendering                           Relationship taken to the next level
 Share of total number of rig days won since 2016

                                                             Five-year framework agreement with the option to
                                                             extend for a further five years. Alliance is based on                                 Cap
                                                             an integrated well-delivery model with aligned           Cost
                                                                                                                                                          Actual
                                                             incentives.                                                                                  cost

             32%                                             Focus on increasing collaboration efficiency and
                                                             enabling standardisation and simplification of
                                                             processes, ultimately shortening the lead time from         Expected
                                                      49%    discovery to first oil.                                     cost

                                                             Participants:

                                                             • Aker BP
                                                             • Maersk Drilling
                     19%                                     • Halliburton
                                                                                                                                    Service partners’ share
                                                             Key aim:
                                                                                                                                    Operator share

             Sole sourcing                          Tender   • Lowering the cost per barrel for Aker BP
                                                                                                                                                      Time
             Extension to existing contract                  • Increase the profitability for the alliance partners

                                                                                                                                              .
A solid contract backlog ensuring earnings visibility                                                                   Investor Presentation   23

   Contract revenue backlog by customer                                  Contract revenue backlog by year(1)
   Share of total contract revenue   backlog(1)                          USDm

                                                                                            836

                              11%

                                                          24%
                    9%
                                                                                                          576

              10%             USD 2.2bn                                                                          473

                                                            21%                 266
                    11%

                                    14%

                  Aker BP       Inpex             Total         Others     2019 Rest       2020          2021   2022+
                  Repsol        Tullow            BP                        of year

                                                                                                                             .

(1) As of 30 September 2019
Long-term customer relations have enabled non-speculative investments                                                  Investor Presentation   24

        Newbuild – Maersk Integrator | Delivered in 2015

                                       644 USDm                Gina Krog field
                                                                                 620 USDm              4 years
                                       Investment cost                           Est. contract value   Firm contract duration

        Newbuild – Maersk Invincible | Delivered in 2017

                                       636 USDm                  Valhall field   812 USDm              5 years
                                       Investment cost                           Est. contract value   Firm contract duration

        Acquisition – Maersk Highlander | Delivered in 2016

                                       191 USDm               Culzean field      420 USDm              5 years
                                       Investment cost                           Est. contract value   Firm contract duration

                                                                                                                            .
Financial
    profile

25   Insert presentation title via Header & Footer
Levers for generating free cash-flow to equity                                                 Investor Presentation   26

                                                 Solid balance sheet

                                                 Strong operating cash-flow generation

                                                 No newbuild capex commitments and limited off-balance re-
                                                 activation cost exposure

                                                 Long maturity runway and attractive funding costs

                                                                                                     .
Solid balance sheet                                                                                 Investor Presentation   27

                        Cash and bank balances

                            354                    Net debt to LTM EBITDA   Market cap to Enterprise Value(1)

                                                     2.1x                            69
                             (end-Q2 2019, USDm)

                        Fully-available revolver

                           400
                                                        (end-Q2 2019)                   (Percent)

                             (end-Q2 2019, USDm)

                                                                                                         .

(1) Data as of 26 November 2019
Source: Bloomberg
Full-year 2019 guidance – EBITDA and capex                                              Investor Presentation   28

                                       EBITDA (before special items)   Capital expenditures

                                             400  (USDm)
                                                                       300    (USDm)

                                                                                              .
What could rig earnings look like in a market recovery?                                                                                                                                                                                                    Investor Presentation         29

    Ultra-harsh environment (CJ70) jack-up per rig                                                  Harsh environment jack-up per rig                                                                Global floater per rig
    Illustrative pre-SG&A EBITDA sensitivity by utilisation          level(1)                       Illustrative pre-SG&A EBITDA sensitivity by utilisation           level(2)                       Illustrative pre-SG&A EBITDA sensitivity by utilisation level(3)

     USDm                                                                                           USDm                                                                                             USDm

     90                                                                                             90                                                                                               90

     80                                                                                             80                                                                                               80

     70                                                                                              70                                                                                              70

     60                                                                                             60                                                                                               60

     50                                                                                             50                                                                                               50

     40                                                                                             40                                                                                               40

     30                                                                                              30                                                                                              30

     20                                                                                              20                                                                                              20

     10                                                                                              10                                                                                               10

       -                                                                                               -                                                                                               -
           200             250               300               350               400                       70              90                 110               130               150                      200             250                300              350                 400

                           60%          70%           80%          90%                                                     60%          70%           80%          90%                                                      60%           70%          80%          90%

                                                                                                                                                                                                                                                                .

(1) Assumptions: Daily opex while operating = USD 140k/day, daily opex while idle = USD 15k/day, number of days in year = 365 (2) Assumptions: Daily opex while operating = USD 57.5k/day, daily opex while idle = USD 15k/day, number of days in year = 365
(3) Assumptions: Daily opex while operating = USD 150k/day, daily opex while idle = USD 37.5k/day, number of days in year = 365
Note: Examples show pre-SG&A EBITDA sensitivity for one rig in each category
Earnings converted to operating cash-flow

EBITDA before special items and EBITDA margin                                                   Operating cash-flow and cash conversion(1)
USDm                                                                                            USDm

                        60%                                                                                              98%                        100%
                                                                                                                                       95%                   94%
      55%                                                                                               93%

                                          47%
                                                            43%

      1,393             1,381                                                 37%                                        1,363
                                                                                                        1,301

                                          683                                                                                          652
                                                             611                                                                                     593

                                                                               231                                                                           205

      2015              2016              2017              2018            H1 2019                     2015             2016          2017          2018   H1 2019

                           EBITDA          EBITDA margin(1)                                                                   CFFO     Cash conversion(1)

(1) Calculated as operating cash-flow divided by EBITDA after special items. Operating cash-flow does not include interest expenses.

                                                                                                                                                                      .

30        Investor Presentation
No newbuild capex commitments and limited off-balance re-activation cost exposure                                   Investor Presentation   31

                                  Number of rigs by delivery status                 Number of rigs by current rig status

                                             23                                                 22

                                                                                                                             1
                                                                       0

                                          Delivered            Under construction      Operating/warm-stacked       Cold-stacked

                                                                                                                         .
Maintenance capex mainly relates to Special Periodic Surveys                           Investor Presentation   32

5-yearly Special Periodic Survey cost requirements by rig type

                           Jack-up rigs                                     Floaters

                   15-20        (USDm)
                                                                     40-60    (USDm)

                                   Expected run-rate (annual) maintenance capex(1)

                                                    150
                                                       (USDm)

                                                                                            .

 (1) Expected average over the 5-yearly SPS cycle
Long maturity runway and attractive funding costs                                                                                                   Investor Presentation   33

Debt maturity profile(1)                                                                Funding cost
USDm                                                                                    2019 expected average funding cost

                                                            1,176

                                                             400
                                                                                                                             Average funding cost

                                                             776
                                                                                                                                5.1
                                                                                                                                  (Percent)
                                                                                 212
                          130      130         130
       65
                                                                           24

  2019 Rest               2020    2021         2022         2023          2024   2025
   of Year

                                 Undrawn RCF     Drawn facility amounts

                                                                                                                                                         .

 (1) As of 30 June 2019
A unique financial profile in offshore drilling                                           Investor Presentation   34

                                                           No newbuild capex
                                                                                   Long maturity
                                 Strong operating           commitments and
                                                                                    runway with
    Solid balance sheet             cash-flow              limited off-balance
                                                                                 attractive funding
                                    generation              re-activation cost
                                                                                       costs
                                                                exposure

                                 Highest cash-flow generation at lowest risk

                                                                                               .
Capital allocation priorities                                                                 Investor Presentation   35

  Maintaining a solid capital         Pursue investments adding long-   Return surplus capital to
  structure with sufficient funding   term value to our shareholders    shareholders
  available to support business
  strategy

  01                                  02                                03
                                                                                                    .
Market
   outlook
Fundamentals in place for increased offshore investments                                                                                                                                                                                                    Investor Presentation               37

    Oil companies are generating cash to spend...                                                  ...and most projects are economic at current oil prices                                            Sanctioning activity is on the rise
    Total cash-flows for top-25 listed E&P   companies(1)                                          Global offshore oil and gas resources to be sanctioned in 2019-2025E by                            Number of FID’s(3) per year
                                                                                                   break-even category (USD)

    USDbn                                                                                                                                                                                                                                                                            Estimate
                                                                                                   Billion boe                                                                                        # FID’s
    450                                                                                                                                                                               97%
                                                                                                   25                                                                         94% 95%                 70
                                                                                                                                                                      89%
    400                                                                   Estimate
                                                                                                                                                              80%                                     60
    350                                                                                            20
                                                                                                                                                      71%
                                                                                                                                                                                                      50
    300
                                                                                                                                              58%
                                                                                                    15
    250                                                                                                                                                                                               40

    200                                                                                                                               41%
                                                                                                                                                                                                      30
                                                                                                    10                       32%
     150
                                                                                                                     22%                                                                              20
     100
                                                                                                     5
                                                                                                           9%                                                                                         10
      50

        -                                                                                            -                                                                                                  -
            2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

                                                                                                                                                                                                                2001

                                                                                                                                                                                                                                                                              2017
                                                                                                                                                                                                                                                                       2015
                                                                                                                                                                                                                                                   2011
                                                                                                                                                                                              70-75
                                                                                                          Below 25

                                                                                                                             30-35

                                                                                                                                                                                                                                     2007

                                                                                                                                                                                                                                                            2013

                                                                                                                                                                                                                                                                                      2019
                                                                                                                                              40-45

                                                                                                                                                              50-55

                                                                                                                                                                              60-65

                                                                                                                                                                                                                              2005
                                                                                                                     25-30

                                                                                                                                                                                      65-70
                                                                                                                                      35-40

                                                                                                                                                      45-50

                                                                                                                                                                      55-60

                                                                                                                                                                                                                       2003

                                                                                                                                                                                                                                            2009
                         Capital expenditure
                         Dividends and net retirement (issuance) of stock                                                            Discovered to-be-sanctioned
                         Cash flow from operations                                                                                   Cumulative % of total                                                                             Floaters           Jack-ups

                                                                                                                                                                                                                                                                   .

(1) Cash-flow for top-25 listed oil and gas companies. 2019 and 2020 figures are based on consensus estimates collected from Bloomberg. Consensus estimates do not include net retirement (issuance) of stock (3) FID = Final Investment Decision
Source: Rystad, Thomson Reuters, Bloomberg
Jack-up recovery gaining momentum                                                                                                                                                                                                                             Investor Presentation          38

   Supply, demand and utilisation                                                                    Historical contract backlog(2)                                                                     Tender activity(3)
   Number of rigs and    utilisation(1)                                                              Total number of contracted rig years                                                               Number of tenders and average tender duration in days

    # Rigs                                                                 Utilisation(1)             # Rig years                                                                                       # Tenders                                                                 # Days

    600                                                                           100%                700                                                                                               140                                                                            800

                                                                                  90%
                                                                                                      600                                                                                               120                                                                            700
    500
                                                                                  80%
                                                                                                                                                                                                                                                                                       600
                                                                                  70%                 500                                                                                              100
    400
                                                                                                                                                                                                                                                                                       500
                                                                                  60%
                                                                                                      400                                                                                               80
    300                                                                           50%                                                                                                                                                                                                  400
                                                                                                      300                                                                                               60
                                                                                  40%
                                                                                                                                                                                                                                                                                       300
    200
                                                                                  30%                 200                                                                                               40
                                                                                                                                                                                                                                                                                       200
                                                                                  20%
    100
                                                                                                      100                                                                                               20                                                                             100
                                                                                  10%

       -                                                                          -                      -                                                                                                -                                                                            -
           Jan-   Jul-     Jan-      Jul-       Jan-      Jul-   Jan-    Jul-                                 2001   2003    2005    2007    2009    2011    2013   2015    2017    2019                      Jan-     Jan-              Jan-        Jan-               Jan-    Sep-
            16     16       17        17         18        18     19      19                                                                                                                                   15       16                17          18                 19      19

                                                                                                                                         Total jack-up backlog                                                                 Tenders          Avg. tender duration (RHS)
             Non-marketed supply            Total Demand         Marketed Utilisation
             Marketed Oversupply            Total Utilisation

                                                                                                                                                                                                                                                                    .

(1) Utilisation (marketed and total) defined as contracted rig years as a percentage of marketed and total supply, respectively (2) Total number of contracted rig years at given point in time (3) Tender data based on open demand. Includes tender and pre-
tender only
Note: Historical contract backlog data as of 18 November 2019. Tender data as of 30 September 2019
Source: IHS Markit – RigPoint, Maersk Drilling
Floater recovery restrained by short-term contracts                                                                                                                                                                                                          Investor Presentation         39

   Supply, demand and utilisation                                                                    Historical contract backlog(2)                                                                     Tender activity(3)
   Number of rigs and       utilisation(1)                                                           Total number of contracted rig years                                                               Number of tenders and average tender duration in days

    # Rigs                                                                  Utilisation              # Rig years                                                                                        # Tenders                                                                # Days

    350                                                                          100%                 900                                                                                               140                                                                          800

                                                                                 90%                 800
    300                                                                                                                                                                                                 120                                                                          700
                                                                                 80%
                                                                                                      700
                                                                                                                                                                                                                                                                                     600
    250                                                                          70%                                                                                                                   100
                                                                                                      600
                                                                                                                                                                                                                                                                                     500
                                                                                 60%
    200                                                                                               500                                                                                               80
                                                                                 50%                                                                                                                                                                                                 400
    150                                                                                               400                                                                                               60
                                                                                 40%
                                                                                                                                                                                                                                                                                     300
                                                                                                      300
    100                                                                          30%                                                                                                                    40
                                                                                                                                                                                                                                                                                     200
                                                                                                      200
                                                                                 20%
     50                                                                                                                                                                                                 20                                                                           100
                                                                                 10%                  100

       -                                                                         -                       -                                                                                                -                                                                          -
           Jan-    Jul-    Jan-     Jul-       Jan-      Jul-   Jan-     Jul-                                 2001   2003    2005    2007    2009    2011    2013   2015    2017    2019                      Jan-    Jan-             Jan-         Jan-               Jan-   Sep-
            16      16      17       17         18        18     19       19                                                                                                                                   15      16               17           18                 19     19

                                                                                                                                         Total floater backlog                                                                 Tenders         Avg. tender duration (RHS)
              Non-marketed supply          Total Demand         Marketed Utilisation
              Marketed Oversupply          Total Utilisation

                                                                                                                                                                                                                                                                   .

(1) Utilisation (marketed and total) defined as contracted rig years as a percentage of marketed and total supply, respectively (2) Total number of contracted rig years at given point in time (3) Tender data based on open demand. Includes tender and pre-
tender only
Note: Historical contract backlog data as of 18 November 2019. Tender data as of 30 September 2019
Source: IHS Markit – RigPoint, Maersk Drilling
Significant scrapping-activity over the past years                                                                                                                                                                                                                    Investor Presentation   40

 Jack-up delivery(1) and attrition(2), quarterly                                                                                                             Floater delivery(1) and attrition(2), quarterly

 # Rigs                                                                                                                                                       # Rigs
 15                                                                                                                                                           15

 10                                                                                                                                                           10

 5                                                                                                                                                             5

  -                                                                                                                                                            -

 -5                                                                                                                                                           -5

-10                                                                                                                                                          -10

-15                                                                                                                                                          -15

-20                                                                                                                                                         -20
      14Q1 14Q2 14Q3 14Q4 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3                                           14Q1 14Q2 14Q3 14Q4 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3

                                                   New deliveries        Attrition       Net addition                                                                                                            New deliveries        Attrition       Net addition

                                                                                                                                                                                                                                                                           .

(1) Rig deliveries defined as units that have not previously existed as a drilling rig of the same type. (2) Attrition includes all rigs that are deemed to be permanently removed from active drilling service, excluding rigs that have been removed as a result of an
accident
Source: IHS Markit – RigPoint
The Drilling Company of 1972 A/S
Lyngby Hovedgade 85
2800 Kongens Lyngby
Denmark

Contacts
Michael Harboe-Jørgensen
Head of Investor Relations
T: +45 2328 5733
M: Michael.Harboe-Jorgensen@maerskdrilling.com

Andreas Escherich Holkjær
Investor Relations Officer
T: +45 3137 6076
M:Andreas.Escherich.Holkjaer@maerskdrilling.com

Maersk Drilling is trading on the Nasdaq Copenhagen Stock Exchange under the ticker, DRLCO
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