Bourbon, International leader in marine services for modern offshore

BOURBON Strategy 2015

BOURBON’s strategic plan for 2015 is in line with the prospects of the Horizon 2012 plan. That plan consisted of investing €2 billion to replace obsolete vessels in continental offshore and of developing the deep offshore Subsea Services business. This plan was presented in Shanghai on June 25, 2010.

A strategy of growth and value creation

BOURBON’s new strategic plan for 2015 continues a voluntary growth policy. Its purpose: making the Group the world leader in offshore oil and gas marine services.

Backed by its existing fleet of new vessels called for in this investment plan, BOURBON is setting the following financial and operational objectives:

For the period from 2011 to 2015:

• A new building investment of US$ 2 billion in offshore vessels
• Average growth in revenues of 17% per year
• A minimum of a 95% availability rate for vessels in 2015

And in 2015 :

• A ratio of EBITDA to revenues of 45%
• A ratio of EBITDA to capital employed of 20%
• A decline in BOURBON’s operating costs of 4% by the year 2015 (at constant exchange rates).

Satisfying increasingly demanding clients

BOURBON places client satisfaction at the core of its strategy, and to that end:

• is lowering operating costs by investing in innovative, high productivity vessels,
• and is providing them with a full range of services from IMR vessels to crewboats.

Investments in mass produced vessels will contribute to growth in deep offshore and also to accelerate the strategy of substituting obsolete vessels on the continental offshore market.

A sound financial structure leading to strong profitability

This ambitious financial plan will be funded by means of the following:

• disposals of assets starting in 2010 for €500 million, mainly bulk carriers as well as non-core business activities;
• better investment spread in the construction of new vessels, with payment of 75 % of the price upon delivery of vessels (compared with 20% today),
• long-term financing for US$400 million over 12 years with the China Exim Bank.

Given this growth policy and the funding method chosen, BOURBON is setting a goal for the Group’s debt in 2015 to be 50% less than shareholders’ equity and to account for less than twice the EBITDA.

Committed Men and Women: one of the key factors for the success of our goals

The success of BOURBON’s 2015 strategic plan is of course based on client confidence and loyalty, the economic environment and also on professionalism, a sense of responsibility and solidarity among the men and women that make BOURBON every day with enthusiasm.

The personal commitment of each and every employee will be vital for achieving all the plan’s goals, for satisfying clients, as well as for improving operational safety and the quality of service. Recruitment, skills management, training and development will be the challenges facing BOURBON in helping them to make their contributions to the goals under the plan.

In making BOURBON’s 2015 plan a success, the Group will rise to the rank of undisputed global leader in offshore marine services for the greater benefit of its clients, its employees and its shareholders.

Review: Horizon 2012 was a real success, and the investments planned have already been made.

Horizon 2012 strategic plan