1 GULFMARK.COMNYSE:GLFA GulfMark Offshore, Inc. company

GulfMark Global Services Overview, Strategy and Business Impact

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66

Vessels

967

Offshore

Employees

200,000

Tons of Cargo Capacity

8

Offices

515,000

Fleet Brake Horsepower

Executive Summary

• Well established operator with excellent reputation, technology and modern fleet

• Capable of meeting market requirements today and in the future

• Global coverage including supporting the most challenging offshore energy environments

<10 years

Average Fleet Age

103

OnshoreEmployees

SAP Global ERP

All Functions

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GulfMark’s Strategy for the Energy Downturn

• Reduced Direct Operating Expenses Reduction of 32%

• Lowered G&A Expenses Reduction of 43%

• Enforced Strict Capital Discipline Reduction of 73%

• Marketed Non-Producing Vessels For Sale and Employed an Aggressive

Stacking Strategy to Preserve Value

• Concentrated on Strong Franchise Positions and Customer Base to Retain

and Maximize Revenue

✓ Delivered Global Services for Efficiencies and Scalability

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Operating Regions & Onshore Staff

Mission:• Eliminate high impact areas of inefficiencies and manual processes

• Transform functions by centralizing Global processes across regions

• Deliver mobility apps to accelerate acceptance of Global processes

Scope:• Transform 8 Regions and 6 Onshore Functions into a Global Services model

• Challenge: GulfMark operated as Silo Regions for 25+ years with little internal cohesion

Onshore Functions

Operations & QHSE

Sales

Accounting & Finance

HR & Crewing

IT

Supply Chain

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GulfMark Onshore Efficiencies

• Global Services initiative started in Q4 2014 in response to the

forecasted energy downturn

• Overall objective is to achieve Structural Efficiency Gains allowing

GulfMark to secure a Competitive Edge in Onshore Services, cost

management and onshore services economies of scale

• First Wave of Global Services include functions of HR, Accounting, IT

and Purchasing. Second Wave encompasses Sales/Chartering and

Operations.

• GulfMark implemented structural changes for the onshore functions by

accelerating global efficiencies. Efficiency gains have allowed onshore

functions to Improve Productivity, Reduce Headcount and Create the

Scalability to support more vessels with current headcount.

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GulfMark Onshore Transformation

Transformation of

GulfMark to Global

Services

Finance/AccountingAccounts Payable

Account Reconciliations

Paperless Processing

Human Resources/CrewingHR Administration & Payroll

Crew Planning & Onboarding

Information TechnologyCloud Infrastructure & Networks

App Technology & Self Service Solutions

VSAT & Onshore/Offshore Integration

Purchasing/Supply ChainVendor Rationalization

Global Logistics & Inventory

Sales/Chartering Global Sales Pipeline

Customer Billing

OperationsGlobal QHSE

Global Drydock

Global Operations

Americas North Sea Southeast Asia

Global Services Roadmap• Focus on areas of Inefficiencies and Global Processes

• Regional processes are Harmonized for global impact

• Enhanced Controls and Measurements to manage globally

• Paperless processes enable organizational efficiencies

• Apps deliver Acceptance & Speed to implementations

• Efficiencies are Expediting global operational excellence

• Scalability enables onshore functions to scale in the upturn

First Wave – Corporate Global Services

Second Wave – Sales & Operations

GulfMark Regions

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Global Services – Transformations

• Many energy service companies have given into the temptation of mass

layoffs as a quick fix during the downturn and failing to perform

fundamental changes to their businesses. Without Structural Changes

Any Gains Realized will be Lost due to inefficiencies and a missed

opportunity by not organizing the business to Scale for the Upturn.

• Centralizing or Harmonizing regional office based functions by

comparison to mass layoffs Takes Time and Often Tedious Executive

Efforts as these are critical and long term structural changes

• Structural transformations are Extremely Difficult and High Risk.

• McKinsey report the Failure Rate of Transformational Change

Programs is ~70%. McKinsey states average companies rarely have

the combination of skills, mindsets and long term commitment needed to

pull off a large scale transformation.

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Global Services – Roadmap for Success

• CEO as executive sponsor and leadership team (SVP CIO, SVP CAO,

SVP HR & SVP Operations) Owning, Stewarding and Change Agents

for the Global Services initiative

• Intensive discovery performed on each function (Re-Inventing) and

reviewed by executive team for acceptance and implementation

strategy. Utilized industry Benchmarking to help build confidence of

future change.

• Cross functional team created from the business and IT to lead the

discovery, design, UAT and implementations (GulfMark Team Sport)

• Leveraged Agile Development & Mobility Apps to accelerate

implementations and secure quick wins to build momentum and

acceptance

• IT architectural roadmap enforces Digital, Cloud & Security principles

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Accounts Payable Automation App

Before AfterAutomation = Paperless

Filing Room

Converted to

Offices

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Accounts Payable Automation App

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Financial Account Reconciliation App

Before After200

Spreadsheets

Eliminated

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GulfMark AWS Cloud Chronology

• 2014 - Piloted AWS for hosting/streaming vessel deck camera video

app. Solution transformed industry as customers are now demanding

real-time video transparency.

• 2015 – Energy downturn required re-evaluation of global IT spend.

Largest IT budget item was SAP hosting.

• 2015 – Migrated SAP ecosystem from vendor data center to AWS.

Encompassing 30 Amazon EC2 instances to support SAP development,

testing and production environments. Resulting savings of 50% of

previous SAP hosting spend.

• 2015 – Transitioned mobility apps to Amazon S3 for storing documents.

Accounting & HR teams becomes paperless.

• 2017 – Goals include data backups in Amazon and regional data center

decommissioning.

• 2017 – On path to achieving zero infrastructure and enterprise

scalability – critical for new markets.

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Information Technology Role Changes

Email/Infrastructure40%

Vessel Support25%

Office Support30%

Projects -Efficiencies

5%

Before: IT Functions

Email/Infrastructure Vessel Support

Office Support Projects - Efficiencies

Email/Infrastructure10%

Vessel Support30%

Office Support 10%

Projects -Efficiencies

50%

After: IT Functions

Email/Infrastructure Vessel Support

Office Support Projects - Efficiencies

Value Realization

from 5% to 50%

Enablers for Information Technology Transformation

✓ Cloud Migrations - Microsoft Office 365 & SAP (Amazon Web Services)✓ IT Productivity Solutions – Centralized Services & Tools ✓ Global IT Footprint - SAP, Networks, Software, Licensing ✓ Zero IT Infrastructure & DR Centers (Amazon)

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CEO Messages

“As we’ve mentioned on previous calls, we are continually looking for ways to make our operations more efficient. We believe that shore-based efficiencies are going to be the driving force behind creating lasting cost savings in our business. We are focused on refining what we believe is a world-class infrastructure, a very scalable cloud-based system that will allow for reduced operating footprints as utilization increases.” - Quintin Kneen Q3 2016 Earnings Call

“We have made enormous changes to the way we administer our business, and it’s setting us up to grow faster and more efficiently when the recovery in our industry ensues. Using technology to foster administrative efficiency and promote a wider span of administrative reach has been key to positioning us for the future. - Quintin Kneen in GulfMark on Course Newsletter

“

GulfMark Global Services – Executive Feedback

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SVP & Chief Accounting Officer Message

“As a result of the system & global process improvements implemented in the past year, Global Accounting will be in a position to support twice the amount of vessels we currently have without adding additional headcount. This is also enabling us to standardize critical processes globally creating a new level of enterprise scalability. “

- Sam Rubio

SVP HR Message

“The efficiencies implemented for the HR organization have enabled process standardization across the regions allowing the Global HR team to move from a transactional function to a function focused on creating the capabilities the organization needs to compete and win.“

- David Darling

GulfMark Global Services – Executive Feedback

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Global Services Structural Business Impacts

• Enterprise Efficiencies. Majority of energy downturn headcount

reductions were the result of efficiency gains.

• Enterprise Scalability. Adding new vessels will not increase headcount

for back office functions. Minimal resources needed for crewing and

operations. GulfMark is prepared for the market upturn.

• Enterprise Business Model. Transformation has significantly advanced

the business model and functions enabling GulfMark to be more

competitive and agile.

• Enterprise Continuous Improvement Culture. Innovation journey

continues aggressively across all functions and regions.

• Industry Benchmarking. GulfMark outperformed competitors on

onshore staff and efficiency measurements.

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The New Normal for Offshore Efficiencies

Vibration, Oil

Monitoring,

Speed & Load Product Condition

Data (Temp,

Pressures, etc.)Environmental Data

Vessel

Operational

Performance

Data

Fuel &

Efficiency Data

Cloud, IoT, Digital,

Big Data & SAP (ERP)

Vessel

Position

Data

Control

Systems

Data Product Usage

Specific Data

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Elevator Messages

• Changing the business model & culture requires lots of Socialization,

Education, Patience & Executive Ownership

• Secure Early Adopters and Data Owners for processes. Find Owners for

orphaned processes and master data management.

• Streamline processes to Remove Redundant Steps. Be bold on Major

Process Changes that create significant improvements and efficiencies.

• Mobility Apps empowers the business transformation. Simplicity is best

and improves user acceptance of the process changes. Be Agile.

• Leverage Technology to accelerate the transformation. Cloud, Digital &

Security are the new technology normal. Socialize the incremental WINs to

build organizational momentum for efficiencies.

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THE DIFFERENCE IS OUR PEOPLE