Maersk Drilling Q May 2014

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1 Maersk Drilling Q May 2014

2 Legal notice This presentation contains certain forward looking statements (all statements that are not entirely based on historical facts, among others expectations to future financial performance, developments, resources growth and production levels). Those forward looking statements reflect current views on future events and are by their nature subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. We consider such forward looking statements reasonable based on the information available to us at this time, but the actual results etc. may differ materially from our expectations because of external factors as well as changes to APMM s goals and strategy. Thus, no undue reliance should be placed on such statements. Neither APMM, nor any other person, shall assume responsibility for the accuracy or completeness of the forward looking statements and do not undertake any obligation to update such statements except as required by law. This Legal Notice shall be governed by Danish Law. Any dispute arising out of or in relation to this Legal Notice which can not be solved amicably shall be decided by the Danish Courts.

3 Q12014 highlights Profit of USD 116m ROIC of 8.1% For 2014 Maersk Drilling continues to expect a result below the result for 2013 (USD 528m) due to planned yard stays and high costs associated with training and start-up of operation of six new rigs Forward contract coverage is 93% for the remaining part of 2014, 70% for 2015 and 50% for 2016 Revenue backlog of USD 7.4bn The newbuild programme is on budget, however two of the remaining five rigs are delayed two to three months per rig due to interruptions in the delivery of certain equipment from sub suppliers On track towards the financial ambition of delivering a NOPAT of USD 1bn to the A.P. Moller Maersk Group in 2018

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5 Newbuild deliveries In February, Maersk Drilling took delivery of Maersk Viking, the first in a series of four ultra deepwater drillships, from Samsung Heavy Industries in South Korea In March, Maersk Drilling took delivery of Maersk Intrepid from Keppel FELS in Singapore; the first delivery in a series of four ultra harsh environment jack-up rigs In April, Maersk Drilling took delivery of Maersk Valiant from Samsung Heavy Industries in South Korea; the second delivery in a series of four ultra deepwater drillships

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10 Strategy Deliver on the financial ambition of Net Operating Profit After Tax (NOPAT) of USD 1bn in 2018 (ROIC >10%) Conduct incident free operation Grow the business within the ultra deepwater and harsh environment segments Leverage market leading position in Norway and build ultra deepwater positions in the US Gulf of Mexico, South America and West Africa

11 Ultra deepwater market The ultra deepwater market is experiencing intensified competition due to a number of uncontracted rigs entering the market while several oil companies have postponed commencement for a large number of the long term projects from 2014 to 2015 and beyond Market characterised by full utilisation of capacity in 2013 but a slight oversupply of rigs will be seen throughout 2014 Dayrates peaked at around USD 600,000 in 2013 and we see dayrates moving lower in 2014 Despite the short term challenges, Maersk Drilling retains our long term positive view on the ultra deepwater market

12 Ultra harsh environment jack-up market Most jack-ups rigs are tied up in long term contracts reducing the near term availability of jack-up rigs in the market where the first rig is available in fourth quarter 2014 Currently there are nine jack-up rigs working in Norway and there are seven ultra harsh jack-ups under construction for the Norwegian market, all of which have secured long term contracts However, tendering activity for longer term drilling programmes has slowed down with the current visible demand being for shorter jobs

13 International premium jack-up market Continue to benefit from oil company preference for newer rigs due to the safety and efficiency gains offered

14 Non-core assets Strong positions in respective markets No further investments planned Divestment if/when time is right

15 Maersk Drilling s priorities for execution in 2014 Take delivery of the three remaining newbuilds with scheduled delivery in 2014 Safe and efficient start-up of the six newbuild rigs in 2014 without further delay Complete the extensive yard stay programme on time and budget Secure contracts for the third and fourth drillships under construction with expected delivery in mid- and end 2014

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19 Rig fleet 5+2 Ultra deepwater floaters 7+3 Ultra harsh environment jack-up rigs 6 Premium jack-up rigs 1 Midwater floater 10 Drilling barges Financial investment Egyptian Drilling Company, Joint Venture (50/50)

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