2014 Q2 Results Presented by: Jesper Helmuth Larsen, CFO Date: August 21, 2014

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1 2014 Q2 Results Presented by: Jesper Helmuth Larsen, CFO Date: August 21, 2014

2 Agenda Financials Operations Quarterly Developments Capital Structure Bond Performance Outlook Upcoming Investor Events Q&A Contact: Jesper Helmuth Larsen, Chief Financial Officer Morten Græsbøll Ottesen, Investor Relations Director

3 Financials Second Quarter 2014 USD in millions 2014, Q2 2013, Q2 Change Revenues % Record quarterly revenue - Return to double-digit growth - Broader scope of services to existing clients - Continued progress on the strategic initiatives EBITDA EBITDA margin % 49% 47% 2% pt Strong levels of profitability - Sales mix; geographical and in service solution - Increased levels of utilization and operational efficiencies Cash flow from operations % Solid cash generation - Higher operational cash flows following growth in operating profit CAPEX Consolidated interest expense % % Investment in new Esbjerg facility - Purpose-built manufacturing base in Denmark for Flex-Well completion technology 3

4 Operations Second Quarter 2014 Revenue by Geography Growth 9% - Record levels of activity - Increased adoption of our latest technologies APAC 24% 23% - Strong growth in Scandinavia, North America and Latin America 18% 34% 57% EMEAR Americas Position - Uplift in clean-out activity and mechanical services - Welltec Alaska celebrated 10 years of safe operations Selected KPIs No. of Employees (average) 2014, Q , Q2 Change % Strength - Direct Contract Award by Petronas Carigali - First runs for Well Stroker XXS, Well tractor CR and suite of Diagnostic tools No. of Jobs (indexed) No. of Operational Tractors (average, indexed) No. of Countries with established entities % % % 4

5 Quarterly Developments Revenue (USD in millions) EBITDA (USD in millions) 23% 2% -2% 6% 15 % 47% 42% 43% 44% 49% Q Q Q Q Q Q Q Q Q Q2 Revenue YOY growth EBITDA EBITDA margin Cash flow from operations (USD in millions) CAPEX (USD in millions) 42% 20% 25% 34% 26% 25% 21% 30% 23% 27% Q Q Q Q Q Q Q Q Q Q2 CF from operations % of revenue CAPEX % of revenue 5

6 Capital Structure USD in millions 2014, Q2 2014, Q1 2013, Q4 2013, Q3 2013, Q2 Change YoY Cash and Cash Equivalents (15%) Senior Secured Notes % Total Net Debt (1%) Gross Leverage 2.1x 2.3x 2.4x 2.3x 2.3x 0.1x Net Leverage 1.9x 2.0x 2.0x 2.0x 2.0x 0.1x Continued reduction in leveraging - The growth in EBITDA over the last 12 months has contributed to a continued reduction in leveraging. 6

7 Bond Trading Performance Bid Price (USD) Bid Yield (%) USD 325 million bond offering Standard & Poor's Moody's - Issuance in February Bid price and yield broadly unchanged Ratings BB- B1 - Moody s recently affirmed B1 rating Outlook Stable Stable Source: Credit Suisse, August

8 Outlook Full Year 2014 Guidance Adjusted Welltec adjusts upward its guidance for Full-year revenue expected to be around USD 350 million (9% growth), with EBITDA of USD 150 million, representing an EBITDA margin of around 44%. - This compares to earlier expectations of full-year revenue of around USD 340 million and EBITDA of USD 140 million, with an EBITDA margin of around 42% % 42% % 150 Continued momentum in second half of Progress in transforming the organization A 2013 A 2014 F Revenue EBITDA EBITDA margin - Growth rates in intervention business expected to continue - Consolidation of margins, reflecting continuing organic growth - Market fundamentals support increasing demand for our services 8

9 Upcoming Investor Events 2014 Event Location Date Opening of Welltec's New Transformation Center Esbjerg, Denmark August 29 Credit Suisse Global Credit Products Conference Miami September EMEA Leveraged Finance Conference London September 30 Interim Report 3 rd quarter, 2014 Denmark November 9

10 Questions? Please contact: Jesper Helmuth Larsen, Chief Financial Officer Morten Græsbøll Ottesen, Investor Relations Director and thank you for your time 10

11 Safe Harbour Statement Any statement in this presentation that is not a historical fact is a forward-looking statement. Such statements may include opinions and expectations regarding Welltec and its future business, management s confidence and strategies as well as details of management s expectations of new and existing programs, technology and market conditions. These forward-looking statements rely on assumptions concerning future events that are subject to a number of risks and uncertainties, many of which are outside Welltec s control, and which could cause Welltec s actual results to be materially different from these forward-looking statements. While Welltec believes that its assumptions concerning future events are reasonable, there are inherent difficulties in predicting certain important factors that could impact the future performance or results of Welltec s business. Accordingly, such statements should not be regarded as representations as to whether such anticipated events will occur nor that expected objectives will be achieved. Welltec expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise. In this presentation, Welltec makes references to EBITDA and EBITDA margin, neither of which is defined under International Financial Reporting Standards, as issued by the International Accounting Standards Board and as adopted by the European Union ( IFRS ). The items excluded from EBITDA and EBITDA margin are significant in assessing Welltec s operating results and liquidity. EBITDA and EBITDA margin have limitations as analytical tools and should not be considered in isolation from, or as a substitute for, analysis of Welltec s results as reported under IFRS. Other companies in Welltec s industry and in other industries may calculate EBITDA and EBITDA margin differently from the way that Welltec does, limiting their usefulness as comparative measures. 11