www.kcadeutag.com
KCA Deutag is a leading international drilling and engineering
company working onshore and offshore with a focus on safety,
quality and operational performance
Fourth Quarter 2013
Investor Presentation
Disclaimer
1
The distribution of this presentation in certain jurisdictions may be restricted by law. Persons into
whose possession this presentation comes are required to inform themselves about and to
observe any such restrictions.
This presentation contains forward-looking statements concerning KCA DEUTAG. These forward-
looking statements are based on management’s current expectations, estimates and
projections. They are subject to a number of assumptions and involve known and unknown risks,
uncertainties and other factors that may cause actual results and developments to differ materially
from any future results and developments expressed or implied by such forward-looking
statements. KCA DEUTAG has no obligation to periodically update or release any revisions to the
forward-looking statements contained in this presentation to reflect events or circumstances after
the date of this presentation.
Agenda
2
1 Key highlights
2 Commercial developments
3 Business overview
4 Group results
5 Summary
An excellent Q4 completed a strong year of development for KCA Deutag
3
KCA Deutag has 125 years
of experience as one of the
world’s leading onshore
and offshore drilling and
engineering contractors,
operating safely in key
markets and new territories
1 • 2013 revenue of $2.2bn and EBITDA1 of $304m.
EBITDA1 growth was 18%
2 • Improved operational and financial performance
from all core business units
3 • Strong market position across highly attractive
international markets and key territories
4 • Contract backlog of $7.9bn on 1 March 2014 across
a blue chip customer base
5 • Successful lender consent request extended
maturities on $325m of debt
6 • Net debt/LTM EBITDA leverage fell from 4.8x at Q3
2013 to 4x by the close of the year
1EBITDA excludes results from the Ben Avon jack-up which was disposed of in March 2013.
Onshore (c.50% of EBITDA1) Offshore (c.50% of EBITDA1)
Seg
men
t d
escri
pti
on
Land Drilling
Leading international
premium drilling contractor
High end fleet of 53 drilling
and 4 workover rigs2
Track record of executing
complex wells in harsh
environments
Bentec
Design and manufacture of
premium land rigs and key
components
Capacity for 12-16 rigs and
top drive capacity increased
during 2013 to a capability of
c.50 top drives per annum
Provision of after sales
services
Platform Services
Leading global platform
service operator outside of
North America
39 platform rigs under
management
Operations in UK North Sea,
Norway, Russia, Azerbaijan,
Angola and Myanmar
RDS
Design and refurbishment of
offshore drilling facilities and
MODUs
Engineering from concept to
commission
Employs c.800 engineers
and support staff globally
MODU
• Owns and operates fleet of 2
jack-ups and 3 barge type
self erecting tender (SET)
rigs
A sale and purchase
agreement to sell two of the
Group’s subsidiaries which
own and operate the 3
barges was signed on 4
March 2013
2013
EB
ITD
A1 45% 8% 27% 16% 4%
Co
ntr
act
ten
or
1 - 5 years with options n/a 3 - 5 years with options n/a 1 – 3 years
Asset
lig
ht
Over 50% EBITDA1 generated in asset light businesses
4
KCA Deutag is a diversified business across onshore and offshore
1EBITDA excludes results from the Ben Avon jack-up which was disposed of in March 2013 and is stated before normalisation
adjustments and excluding central overheads of $53m. 2 Compares to 54 drilling and 9 workover rigs (Q3 2013). Difference due to the retiral of 1 drilling and 5 workover rigs in Libya which
have not worked for the last 3 years and will not be restarted.
✓ ✓ ✓
Land Drilling Platform Services RDS offices MODUs Bentec
Houston
Ben Loyal jack-up rig
Russia
15 rigs
Pakistan
2 rigs
Oman
6 rigs
Netherlands
2 rigs
Germany
2 rigs
Albania
1 rig
Algeria
6 rigs
Kazakhstan
1 rig
Sakhalin
3 platforms
UK North
Sea
14
platforms
Norway
11
platforms
Azerbaijan
8 platforms
Baku
London
Stavanger
Bad
Bentheim
Tyumen
Nizwa
Ben Rinnes jack-up rig
Nigeria
6 rigs
Gabon
1 rig
Brunei
1 rig
Iraq /
Kurdistan
4 rigs
Spain
1 rig
Libya
4 rigs
Angola
2 platforms
St.
Johns
Bergen
2013 EBITDA1 split by region
Russia
20%
Europe (inc North
Sea) 23%
Other
9%
Africa
14%
SE Asia
10%
Dubai
Regional offices
Middle East
11%
Continued strong market position and balanced portfolio of assets across highly attractive international markets
Aberdeen (HQ)
Myanmar
1 platform Presence in key regions
126
55 50 40 15
0
30
60
90
120
Europe NorthAfrica
MiddleEast
NorthSea
Russia
Years
Caspian
13%
France
1 rig
5 1EBITDA excludes results from the Ben Avon jack-up which was disposed of in March 2013 and is stated before normalisation
adjustments and excluding central overheads of $53m.
Map excludes work over land rigs, defined as being below 900HP.
Glen Tanar SET rig
Glen Affric SET rig
Glen Esk SET rig
Kuala Lumpur
Consistently strong health, safety and environmental performance is a
key differentiator
6
Total Recordable Incident Rate
1 Total Recordable Incident Rate is directly comparable with IADC’s Total Recordables (RCRD) statistic. 2 2013 IADC and KCAD statistic available to Q4 2013.
Note: TRIR stands for Total Recordable Incident Rate (per 200,000 man hours);
IADC stands for International Association of Drilling Contractors.
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2008 2009 2010 2011 2012 2013²T
RIR
1
KCA Deutag IADC Average
Consistently below the industry
average TRIR1 – confirms our
dedication and commitment to safe,
effective and trouble-free operations
History of over 125 years of complex
drilling operations under harsh
operating conditions
Reputation and track record critical to
supporting our leading market position
and ensuring repeat business
7
Healthy backlog providing high level earnings visibility for the future
Updated Methodology
• Methodology per the OM issued in May 2013 dictated that revenue generated during the financial year be included for the purposes of the backlog
calculation. We have employed new methodology which ensures that the calculation is strictly forward looking.
1 Q3 2013 backlog has been restated for the updated methodology. 2 Backlog excludes revenue secured for the barges.
$442 $919
$2,341
$3,702
$21 $114
$3,841
$3,976
0
2,000
4,000
6,000
8,000
2013 2014 2015 and thereafter Total backlog$m
Contract Option
Contract backlog1 as at 30 September 2013
$462m $1,033m $6,182m $7,677m
$1,258 $839 $1,595
$3,692 $51 $141
$4,015
$4,207
0
2,000
4,000
6,000
8,000
2014 2015 2016 and thereafter Total backlog$m
Contract Option
Contract backlog2 as at 1 March 2014
$1,310m $980m $5,610m $7,899m
$1,726m
$251m
$5,737m
$173m
$12m
Land Drilling
Bentec
Platforms
RDS
MODUs
Contract backlog2 by BU
$1,176m $71m
$6,154m
$175m
$103m
Land Drilling
Bentec
Platforms
RDS
MODUs
Contract backlog1 by BU
Significant new contracts – Bentec, Algeria
8
Contract nature
Construction of seven onshore desert drilling rigs, all fully equipped with
Bentec equipment, including top drives, pumps, drawworks, power control
rooms and electrical controls
Contract length &
timeframes Rigs to be delivered within the next 17 months
Customer Enafor
Contract value Largest single contract in Bentec’s history
“We are extremely proud to have secured our largest deal since the company was
established in 1994. We work hard to maintain the highest quality standards across our
drilling rig systems and this success is testament to that, the services we provide and our
continued commitment to developing additional business in Algeria.”
Dirk Schulze, Chief Executive Officer, Bentec
9
185% utilisation includes the 6 Libyan rigs (re-entry to the Libyan market is ongoing). Excluding the 6 Libyan rigs the
utilisation figure is 91% for Q4 2013.
• Sustained strong Q4 performance with utilisation at 85%1 for the quarter
• Continued good results from Africa due to two new rigs that came online Q2
and Q3. Other countries in region have also experienced good utilisation
and day rates in the quarter
• Europe and Russia both saw good results due to utilisation and increases in
Combined Drilling Services in the Russian business
• The Middle East saw a softening in results for the quarter as non-productive
time and rig moves reduced both utilisation and earnings
Financial Performance to 31 December 2013
Q4
2013
Q4
2012 Variance
2013
YTD
2012
YTD Variance
$m $m $m % $m $m $m %
Revenue 185.7 146.4 39.3 26.8% 684.8 567.2 117.6 20.7%
EBITDA 46.4 37.3 9.1 24.4% 160.6 141.9 18.7 13.2%
Margin 25.0% 25.5% 23.5% 25.0%
Land Drilling – making a significant contribution to strong Q4 results
Land Drilling - rig utilisation is robust with opportunities for growth
10
Overview Fleet utilisation
Land rig2 by region and by horsepower Key customers
76%
65%
79% 84%
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013
Average Land Rig Utilisation1 • Leading international provider of onshore drilling and
workover operations
• Operates in c.15 countries across Russia/CIS,
Middle East, North Africa and Western Europe
• Track record of executing complex, deviated wells in
harsh environments and emerging markets
• Significant renewal of existing contracts as well as
new contracts resulted in utilisation outlook for the
coming year better than the outlook for the same
period in the prior year
1 Utilisation is stated including 6 Libyan rigs across all years: 4 drilling rigs, 2 workover rigs. 2 Excludes workover rigs, defined as being below 900HP.
15%
28%
32%
2%
23%
Europe/Kazak Russia Africa Asia Middle East
25%
68%
8%
1,000 - 1,499 1,500 - 2,999 over 3000
Land Drilling - strong development over the last 3 years
11
2013 highlights and events Financials
New contracted land rigs
• No rigs are built speculatively
• 3 new build Middle East rigs (BP Khazzan) and 1
Russian rig operational from Q4 2014
• All new build activity meets strict return criteria,
based on multi year contracts
• 1 further rig at advanced tender stage
• 1 more new build contract anticipated to be won in
2014
New builds schedule
J F M A M J J A S O N D J F M A M J J A S O N D
Contracted
Khazzan rig 1
Khazzan rig 2
Khazzan rig 3
Russian new build
Key:
Construction
Operational
2014 2015
• 2013 strong performance driven by:
• Russia – 3 new land rigs and strong
Combined Drilling Services activity
• Algeria – 2 new land rigs
• Europe and South Iraq - improved utilisation
• Realisation of business efficiency savings
• Strong bidding activity seen particularly in the Middle
East where we have secured several long-term
contracts at attractive day rates
464 567
685
104 142 161
22%
25% 23%
2011 2012 2013
0%
5%
10%
15%
20%
25%
30%
0
200
400
600
800
Revenue $m EBITDA $m Margin %
Bentec – Q4 contributed 38% of their 2013 result
12
• Q4 delivered a strong finish with some significant new wins in December
• Deliveries of rigs to Algeria were made as expected during Q4 2013 with
margins higher than anticipated
• Sales of top drives were strong in the final months of the year
• Overall divisional EBITDA has grown 27% year on year
Financial Performance to 31 December 2013
Q4
2013
Q4
2012 Variance
2013
YTD
2012
YTD Variance
$m $m $m % $m $m $m %
Revenue 57.8 65.9 (8.1) (12.3)% 225.7 178.2 47.5 26.7%
EBITDA 10.7 13.9 (3.2) (23.0)% 28.3 22.2 6.1 27.5%
Margin 18.5% 21.1% 12.5% 12.5%
Bentec – important contract wins point to a bright future
13
2013 highlights and events Financials
New contract wins Key customers
• 2013 performance driven by:
• Completion of 6 external rigs including 4 Enafor
rigs
• Shipment of 21 top drives
• Construction of 7 onshore desert drilling rigs and top
drives, to be delivered within the next 17 months to
Enafor in Algeria
• Continued focus on external rig and component
orders as a means of driving growth
59% 25%
12% 3%
1%
Rigs external
Components
After sales
Rigs internal
Other turnover
Bentec revenue by product type
64
111
199 106
67
27
22 22 28
13.3% 12.5% 12.5%
2011 2012 2013
0%
2%
4%
6%
8%
10%
12%
14%
0
50
100
150
200
250
Ex revenue $m Int revenue $m Ex EBITDA $mInt EBITDA $m Margin %
Platform Services – strong Q4 performance
14
• EBITDA performance improved on the same period in 2012 by over 30%
• High drilling activity and a good contribution from our rental business drove
strong Q4 results.
• Sakhalin and Angola also benefited from a good quarter, and our recently won
contract in the Far East on the Daewoo Shwe platform continues to perform well
• Year on year EBITDA has grown 9%
Financial Performance to 31 December 2013
Q4
2013
Q4
2012 Variance
2013
YTD
2012
YTD Variance
$m $m $m % $m $m $m %
Revenue 216.5 187.8 28.7 15.3% 755.5 617.0 138.5 22.4%
EBITDA 34.5 26.2 8.3 31.7% 96.5 88.3 8.2 9.3%
Margin 15.9% 14.0% 12.8% 14.3%
Firm Option
Customer Platform 2014 2015 2016 2017 2018 2019+
Total Alwyn
Total Dunbar
EnQuest Thistle & Heather
Nexen Scott
CNR Murchison, Ninian's (3) and Tiffany
TAQA Cormorant A&N, Tern & Elder
Statoil Osebergs (4) and Gulfaks (3)
Statoil Kvitebjorn
ExxonMobil Ringhorne & Jotun
Statoil Cat J
BP Azeri (3), SD, DWG, Shah Denis,
Chirag, Chirag Oil Project
SEIC Lunskoye, Piltun A&B
CABGOC BBLT
ExxonMobil Kizomba
Daewoo Shwe
$474m $529m $531m $552m $521m $3,130m
Platform Services – contract backlog underpinning robust outlook
15
Platform Services contract backlog duration
Platform Services - important contract wins driving robust outlook
16
2013 highlights and events Financials
Key contract wins Key customers
• Myanmar - 2 year O&M drilling services contract for the Shwe
Platform, based in Myanmar, with Daewoo
• Angola - 5 year O&M programme with ExxonMobil, for the
Kizomba platforms offshore Angola
• Norway – 12 year O&M project for two Cat J jack-ups, based
offshore Norway, for Statoil
• 2013 characterised by robust activity across all major
contracts
• Commencement of the Daewoo Shwe and
Kizomba contracts
• Particularly high activity in Sakhalin operations
• Strong results in the Norway sales & rental
business
• Decline in margin in 2013 partly due to significant
increase in low margin reimbursable revenues
561 617 756
76 88 97
14% 14%
13%
0%
4%
8%
12%
16%
0
200
400
600
800
1,000
1,200
2011 2012 2013
Revenue $m EBITDA $m Margin %
RDS - excellent 2013 performance
17
• RDS finished the year benefitting strongly from robust demand for premium
engineering design services to the offshore sector
• Activity in the final quarter remained high across all divisions
• Norway activity in particular drove strong Q4 results as well as higher
margin work on Hebron in Canada
• Other North Sea work for high profile customers remained strong in the final
quarter
• Overall EBITDA growth year on year was a healthy 42%
Financial Performance to 31 December 2013
Q4
2013
Q4
2012 Variance
2013
YTD
2012
YTD Variance
$m $m $m % $m $m $m %
Revenue 100.3 78.5 21.8 27.8% 359.5 280.1 79.4 28.3%
EBITDA 17.1 15.4 1.7 11.0% 56.0 39.5 16.5 41.8%
Margin 17.0% 19.6% 15.6% 14.1%
RDS - exposure to high profile projects and blue chip client base
18
2013 highlights and events Financials
2014 outlook Key customers
Very strong 2013 due mainly to high activity on major
projects:
• Hebron project in Canada
• Mariner, Clair Ridge, Heather and Dunbar projects in
the UK North Sea
• Chirag Oil project in Azerbaijan
• Peregrino project in Brazil
• Shift to harsh environment/Arctic developments
requiring large integrated facilities
• North Sea, GoM, Caspian, Sakhalin mature markets
with older rigs requiring upgrade/overhaul
• Several North Sea projects will be completing during
2014, as well as elements of the Hebron contract in
Canada
• The pipeline remains robust with negotiations on new
projects at an advanced stage
195
280
360
20 40
56
10%
14%
16%
0%
4%
8%
12%
16%
0
100
200
300
400
2011 2012 2013
Revenue $m EBITDA $m Margin %
MODUs – improved performance in Q4
19
• The two jack-ups (Ben Rinnes and Ben Loyal) contributed $7.9m EBITDA2 to
the quarter
• The three barges (Glen Esk, Glen Affric and Glen Tanar) were profitable during
Q4 with EBITDA2 at $5.6m, however overall negative for the year
• The Glen Esk barge remains demobilised and warm-stacked at the year end
• Full year EBITDA1 was $15.8m, $1.7m behind the prior year
Financial Performance to 31 December 2013
Q4
2013
Q4
2012 Variance
2013
YTD
2012
YTD Variance
$m $m $m % $m $m $m %
Revenue 41.6 25.9 15.7 60.5% 157.2 124.7 32.6 26.1%
EBITDA1 11.5 (2.2) 13.8 N/m 15.8 17.5 (1.7) (9.6)%
Margin 27.7% (8.7)% 10.1% 14.0%
1EBITDA excludes results from the Ben Avon jack-up which was disposed of in March 2013. Pro forma EBITDA
(barges stripped out) was $22m for 2013. 2 Asset EBITDA is stated before area overheads.
MODUs - 2013 was a mixed year for the division
20
2013 highlights and events Financials
2014 outlook Key customers
• One jack-up (Ben Avon) was sold in Q1 2013 for
gross proceeds of $55m
• Ben Loyal, Ben Rinnes, Glen Tanar and Glen Affric
continued to perform largely in line with management
expectations
• 2013 EBITDA negatively affected by delays in Glen
Esk rig up and subsequent contract cancellation
1EBITDA excludes results from the Ben Avon jack-up which was disposed of in March 2013.
• The Group signed a sale and purchase agreement to
sell two subsidiary companies which own and
operate the three SET barges (Glen Esk, Glen Tanar
and Glen Affric)
• New contracts are currently under negotiation for the
two jack-ups
• The Ben Loyal is currently working with Pemex in
Mexico
• The Ben Rinnes is on contract with Vaalco in Gabon
127 125
157
46
18 16
36%
14%
10%
0%
10%
20%
30%
40%
0
40
80
120
160
200
2011 2012 2013
Revenue $m EBITDA $m Margin %1
67 75 65
126 111
50
60 51
12
0
50
100
150
200
250
300
2011 2012 2013$m
Maintenance Capex Growth Capex MODU SPS spend
Working capital and capital expenditure
21
Historical capital expenditure1 by category
Working capital
$253m $237m $127m
1 $127m capex does not include sale and leaseback amount of $35.4m. This is included within both disposals and capital
expense for statutory account purposes.
389 440
483 542
481
136 141
147 154
138
(397) (381) (398) (418) (384)
128 200 232
278 235
(450)
(250)
(50)
150
350
550
750
Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013
Trade and other receivables Inventories and work-in-progress Trade and other payables Total working capital
Capital Structure - an improving position throughout 2013
22
Net debt1/LTM EBITDA throughout 2013
1Net debt portrayed as a positive figure to simplify illustration 2 EBITDA excludes results from the Ben Avon jack-up which was disposed of in March 2013
Net debt at 31 December 2013 ($m)
(29) 22 500 180 530 28
-200 0 200 400 600 800 1,000 1,200 1,400
Cash Liquidity Facilities Senior Secured Notes Term Loan B & Capex Facility Term Loan C LC Facilitiy Other
Q4 20131 $1,230m
1,196 1,260 1,296 1,230 255 253 273 304
4.7x 5.0x 4.8x
4.0x
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
0
200
400
600
800
1,000
1,200
1,400
Q1 2013 Q2 2013 Q3 2013 Q4 2013$m
Net Debt LTM EBITDA Net debt/LTMEBITDA ratio1
Amend and extend process completed 17 February
23
1
1
• Leverage and interest cover covenant reset in Q3 and Q4
2014
• Approval to dispose of assets in a share sale
• Approval for additional issuance of Senior Secured Notes
with proceeds to repay term loans
• Consent to utilisation of the remaining $50m accordion
under current Incremental RCF
• Drop down of two additional land rigs (built with $50m of
shareholder equity) into the financing group for zero
consideration, thus increasing group EBITDA by c.$7m
per annum
New maturity profile ($m)
61
649
500
38 32
155
50
50
2014 Mar-15 Mar-16 Jun-16 Mar-17 2018
$50m Additional RCF approved in A&E
Off B/S Guarantee Facility
Liquidity Facilities
Term Loans
Senior Secured Notes 255
93
Previous maturity profile ($m)
180
530 500
100
75
50
50
2014 Mar-15 Mar-16 Jun-16 Mar-17 2018
Off B/S Guarantee Facility
Liquidity Facilities
Term Loans
Senior Notes
150
305
Group Results - Q4 closed the year on a high
24
1Results and comparatives are shown excluding the results from the Ben Avon and EBITDA is shown before non-recurring items. 2 EBITDA is shown excluding the results from the Ben Avon and before central overheads of $53m.
$161m
$28m
$96m
$56m
$16m
Land Bentec Platform Services RDS MODUs
2013 EBITDA2 by BU
212
258
304
0
50
100
150
200
250
300
350
2011 2012 2013$m
EBITDA1 growth
CAGR: 20%
60 64
72
108
(20)
0
20
40
60
80
100
120
140
Q1 2013 Q2 2013 Q3 2013 Q4 2013$m
Land Bentec Platform Services RDS MODUs Central overheads
2013 EBITDA1 ($304m) by quarter
258
304
19
6
8
17
(2) (2)
250
260
270
280
290
300
310
320
2012 Land Bentec Platforms RDS MODU O'head 2013$m
2013 EBITDA1 bridge
Closing remarks
25
• Strong performance delivery in 2013 provides an excellent foundation for 2014 and beyond
• Decreasing leverage position to 4x at the year end
• Excellent backlog of $7.9bn underpins future earnings
• Successful amend and extend provides additional financial flexibility to execute on the strategy
• Headline-grabbing contract wins on high-profile projects with more in the pipeline
• Actions continue to optimise the business portfolio and increase business efficiency in 2014
• Growth opportunities are only being pursued where they provide robust capex returns driving
increased cash generation based upon long term contracts
• All of this is underpinned by a stable and experienced management team focused on further
delivery of results