north atlantic drilling ltd. company position overview (sept 2014)

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


› 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


Rosneft Partnership


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


Rosneft Partnership


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


Rosneft Partnership


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


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


Transocean Winner Transocean SS Norway 1983 01.02.2016


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


Rosneft Partnership


Market Outlook

Q&A

19

north atlantic drilling ltd. company position overview (sept 2014)

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