North Atlantic Drilling Ltd. Pareto Oil & Gas Conference Oslo, September 10, 2014
Forward looking statements
2
The statements described in this presentation that are not historical facts are forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements which could be made include, but are
not limited to, statements involving prospects for the company, expected revenues, capital
expenditures, costs and results of operations and contingencies and other factors. The
forward-looking statements contained in this presentation, including assumptions, opinions and views
of the company or cited from third party sources are solely opinions and forecasts which are subject
to risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from those indicated. All
subsequent written and oral forward-looking statements attributable to the company or to persons
acting on our behalf are expressly qualified in their entirety by reference to these risks and
uncertainties. You should not place undue reliance on forward-looking statements. Each
forward-looking statement speaks only as of the date of the particular statement, and we undertake
no obligation to publicly update or revise any forward-looking statements.
Agenda
Key Investment Highlights
Rosneft Partnership
Locations & Contract Backlog
Market Outlook
Q & A
3
Key Investment Highlights
› The leading drilling contractor in the
North Atlantic region
› Premium fleet of 10 harsh
environment drilling rigs including 3
newbuilds
› Some 1,600 employees
› More than 40 years of operating
experience
› Committed growth of approximately
US$365 million in annualized
EBITDA in period 2014-2017
› Solid contract backlog of US$6.3 Bn
› NYSE-listed ~US$2.4 bn Market Cap
› Regular quarterly cash dividends to
investors
Seadrill Limited Public investors
(NYSE)
~70% ~30%
North Atlantic Drilling Ltd. (Bermuda)
Fleet:
3+1
HE
Semi-submersib
le
1
HE Drillship
3+2
HE JU’s
4
Our Performance
5
USS2.88
0
0,5
1
1,5
2
2,5
3
3,5
Accumulated dividends since inception in Feb. 2011 Total investment return since Feb. 2011****
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
0
20
40
60
80
100
120
140
160
180
Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
EBITDA* EBITDA Margin**
EBITDA and Margin96% 94% 94% 92%
96% 95%90%
98%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Economic Utilization
Economic Utilization
*) EBITDA: earnings before interest, depreciation and amortization equal to operating profit plus depreciation and amortization.
**) EBITDA in percent of our revenues excluding reimbursable revenue
***) Dividends have been adjusted for the 1:5 share consolidation which was effective from November 21, 2012
****) Total cumulative return, measured as of closing September 3, 2014
44%
-9% -10%
-25% -28%
-45%
-91% -100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
NADL ORIG FOE RDC DO RIG SONG
Total return Share price Dividends
Source: Platou Markets
Agenda
Key Investment Highlights
Rosneft Partnership
Locations & Contract Backlog
Market Outlook
Q&A
6
Partnership with Rosneft
› Offshore Drilling Contracts
– 5 offshore drilling rigs
– US$4.1 bn of order backlog
› Onshore Drilling
– NADL to acquire ~150 land rigs including five-year contracts
– Rosneft to receive new primary shares in NADL, 30 percent ownership
– Rosneft to pay difference in value between land rigs and NADL shares in
cash to NADL
› Rosneft to appoint two Board members to NADL Board of Directors
› Seadrill maintains majority ownership in NADL after the initial transaction
7
North Atlantic Drilling Ltd. (Bermuda)
Fleet:
3+1 HE
Semi-submersibles
1 HE Drillship
3+2 HE JU’s
Company structure post closing
Seadrill Limited
Public investors
(NYSE)
>50% ~30% ~20%
Rosneft
~150
land drilling rigs in Russia
8
› Access to the Russian arctic
– significant growth potential
› Improved earnings visibility
› Partnership structure to
facilitate alignment of
interests
› Local presence in Russia
through acquisition of land rig
business from Rosneft
Agenda
Key Investment Highlights
Rosneft Partnership
Locations & Contract Backlog
Market Outlook
Q&A
9
Norway and UK
10
UK
1 rig
Norway
6(5) rigs
Russia – offshore and main rig regions onshore
11
Krasnoyarsk
11 rigs
Kara Sea
1 rig
Gubkinsky
17 rigs
Nefteyugansk
63 rigs
Irkutsk
10 rigs
Krasnoadar
3 rigs
Samara/Orenburg
24 rigs
Nizjnevartovsk
5 rigs
Usinsk/Komi
15 rigs
Sakhalin
2 rigs
Grozny
2 rigs
Solid Earnings Visibility
Rig Client Current
dayrate (US$k/day)
Contract status
2014 2015 2016 2017 2018 2019 2020
Semi-submersibles
West Alpha 537/552
West Venture 448
West Phoenix 465
West Hercules 503
West Rigel
Drillships
West Navigator 589
Jack-ups
West Epsilon 289
West Elara 365
West Linus 377
HE-JU TBNI
HE-JU TBNI
@375
@628
@552
to Q3 2022
to Q2 2022
to Q3 2022
to Q2 2021/2022
Transit Firm contract Option Managed on behalf of Seadrill
12
@360
… with US$6.3 bn Backlog to High Quality Customers
13
› Strong contract backlog of US$6.3 bn with investment
grade customers
› Differentiated by premium harsh environment assets
and high operational performance
› High safety track-record prerequisite to secure
contracts in one of the most safety focused drilling
regions
› Key client relationships with top-tier oil companies
within offshore harsh environment regions
Customer Credit
Rating Moody's1 S&P1
Rosneft Baa1 BBB-
Statoil Aa2 AA-
ConocoPhillips A1 A
ExxonMobil Aaa AAA
Total Aa1 AA-
Shell2 Aa1 AA
1) Moody’s long-term credit rating and S&P’s long term foreign issuer credit rating, source from Bloomberg
2014 2015 2016
99%
1%
91%
9% 25%
75%
Contract coverage
Contracted
Uncontracted
2017
31% 69%
Agenda
Key Investment Highlights
Rosneft Partnership
Locations & Contract Backlog
Market Outlook
Q&A
14
Russian Arctic and Rosneft Partnership
Kara Sea
› Currently three blocks being explored by a
JV between Rosneft and ExxonMobil
› Estimated recoverable resources1:
– 45.9bn boe of oil
– 14.59bn m3 of gas
› West Alpha drilling the University-1 well
New drilling capacity required
› The fleet of rigs capable of drilling in the
Russian Arctic today is 8-10 rigs in total
› 100 wells to be drilled by Rosneft and
Gazprom over the next 10 years in order
to maintain their licenses
› West Alpha to drill one well in 2014
1) Source: Rosneft
15
16
Norway and UK: Challenging Market For Older Floaters
Source: IHS, Platou Markets. Floaters older than 30 years with firm contracts expiring in 2014, 2015 or 2016
Rig Name Manager Floater Country Built Next SPS
Ocean Vanguard Diamond Offshore SS UK 1982 15.04.2015
Ocean Princess Diamond Offshore SS UK 1975 31.07.2018
Transocean Prospect Transocean SS UK 1983 10.04.2017
Transocean Searcher Transocean SS Norway 1983 01.03.2018
Ocean Nomad Diamond Offshore SS UK 1975 29.09.2018
Sedco 711 Transocean SS UK 1982 31.10.2017
Sedco 704 Transocean SS UK 1974 31.01.2018
Stena Spey Stena SS UK 1983 18.04.2018
Transocean John Shaw Transocean SS UK 1982 15.06.2018
Paragon MSS1 Paragon Offshore SS UK 1979 01.02.2016
Bredford Dolphin Dolphin SS Norway 1980 15.05.2017
Sedco 714 Transocean SS UK 1983 15.03.2019
Transocean Winner Transocean SS Norway 1983 01.02.2016
Sedco 712 Transocean SS UK 1983 11.10.2018
WilHunter Awilco Drilling SS UK 1983 26.11.2015
Songa Delta Songa Offshore SS Norway 1980 15.09.2016
Songa Trym Songa Offshore SS Norway 1976 15.01.2018
Byford Dolphin Dolphin SS UK 1974 20.10.2014
Borgny Dolphin Dolphin SS UK 1977 01.10.2014
Firm contract
Options
Spesial Periodic Survey
2014 2015 2016 2017 2018
Demand Outlook for Harsh Environment Drilling
17
0
100
200
300
400
500
600
700
800
900
Undiscovered, Open acreage Undiscovered awarded Discovery (1970s)
Discovery (1980s) Discovery (1990s) Discovery (2000s)
Discovery (2010s) Appraising Johan SverdrupField evaluation Under development Producing early
Producing 25-50% Producing 50%-75% Producing >75%
Producing (Refinery Gains) Abandoned
Forecast
Source: Rystad Energy, Platou Markets
› Norway
– Johan Sverdrup, Johan Castberg, Maria,
Zidane, Luva, Snøhvit, Bream, Barents Sea
exploration
› Russia/Arctic
– Rosneft and partners’ exploration in the Arctic
– Black Sea requirements
› UK/West of Shetland
– Laggan/Toremore
– OMV et. al. plus Nexen requirements
› Canada
– Bay du Nord, Mizzen
– Exxon, Husky and Statoil indicate 2-4 more
units needed in the region longer term
› Falklands
– Sealion development, various exploration
› Alaska
Major Harsh Environment Projects in Pipeline Statoil’s production in Norway - forecast
2014: West Linus ~US$80 million
2015: West Rigel ~US$125 million
2017: 2xHE JU’s ~US$160 million
Summary
18
Record High Contract Backlog of US$6.3 bn
The Russian opportunity Committed growth
Quarterly cash dividend distribution
USS2.88
0
0,5
1
1,5
2
2,5
3
3,5
EBITDA1
1) Annualized estimated EBITDA-contribution
Agenda
Key Investment Highlights
Rosneft Partnership
Locations & Contract Backlog
Market Outlook
Q&A
19
Q&A