Seadrill (SDRLF) 6-K SDRL – Seadrill Announces Updated Business Plan

Exhibit 99.1

SDRL – Seadrill Announces Updated Business Plan

Hamilton, Bermuda, December 16, 2017 - On September 12, 2017, Seadrill Limited (“Seadrill” or the “Company”) filed a Form 6K, attached to which as Exhibit99-1 was a presentation which included the Company’s business plan. In the ordinary course of business, Seadrill has prepared an updated business plan, which is attached hereto.

Also, on December 15, 2017, the Company filed a revised disclosure statement with the court overseeing its chapter 11 cases in the Southern District of Texas. The revised disclosure statement includes valuation and liquidation analyses prepared by the Company and its advisors and can be viewed at https://www.primeclerk.com/SeadrillAmendedDS.

This press release is not intended to be, and should not in any way be construed as, a solicitation of votes of bondholders or other investors regarding the chapter 11 plan.

CONTACT:

Prime Clerk

US Toll Free:844-858-8891

Brazil Toll Free:0-800-591-8054

Mexico Toll Free:01-800-681-5354

Nigeria Toll Free:070-80601847

Norway Toll Free:800-25-030

Saudi Arabia Toll Free:800-850-0029

Singapore Toll Free:800-492-2272

Thailand Toll Free:1-800-011-156

UAE Toll Free: 8000-3570-4559

UK Toll Free:0-800-069-8580

Email: seadrillinfo@primeclerk.com

FORWARD LOOKING STATEMENTS

This news release includes forward looking statements. Such statements are generally not historical in nature, and specifically include statements about the Company’s plans, strategies, business prospects, changes and trends in its business, the markets in which it operates and its restructuring efforts. These statements are made based upon management’s current plans, expectations, assumptions and beliefs concerning future events impacting the Company and therefore involve a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, which speak only as of the date of this news release. Consequently, no forward-looking statement can be guaranteed. When considering these forward-looking statements, you should keep in mind the risks described from time to time in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form20-F (FileNo. 001-34667). The Company undertakes no obligation to update any forward looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of

unanticipated events. New factors emerge from time to time, and it is not possible for the Company to predict all of these factors. Further, the Company cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward looking statement.

This information is subject of the disclosure requirements pursuant to section5-12 of the Norwegian Securities Trading Act.

2

Seadrill Limited

Strictly

Private & Confidential

December 2017 Business Plan Update

December

2017

Subject to the disclosures, assumptions and qualifications set out in this presentation

including, without limitation, the disclaimer set forth on page 2

Disclaimer

2

We have prepared this document solely for informational purposes. You should not definitively rely upon it or use it to form the definitive basis for

any decision, contract, commitment or action whatsoever, with respect to any proposed transaction or otherwise.

The information contained herein includes certain statements, estimates and projections with respect to our anticipated future performance and

anticipated industry trends. Such statements, estimates and projections reflect various assumptions concerning anticipated results and industry

trends, which assumptions may or may not prove to be correct. Actual results and trends may vary materially and adversely from the projections

contained herein. Neither we nor any of our affiliates, or our or their respective officers, employees, advisors or agents, make any representation

or warranty, express or implied, in relation to the accuracy or completeness of the information contained in this document or any oral information

provided in connection herewith, or any data it generates and accept no responsibility, obligation or liability (whether direct or indirect, in contract,

tort or otherwise) in relation to any of such information. We and our affiliates and our and their respective officers, employees, advisors and agents

expressly disclaim any and all liability which may be based on this document and any errors therein or omissions therefrom. Neither we nor any of

our affiliates, or our or their respective officers, employees, advisors or agents, make any representation or warranty, express or implied, that any

transaction has been or may be effected on the terms or in the manner stated in this document, or as to the achievement or reasonableness of

future projections, management targets, estimates, prospects or returns, if any. Any views or terms contained herein are preliminary only, and are

based on financial, economic, market and other conditions prevailing as of the date of this document or as at the date stated in respect of that

information and are therefore subject to change. We undertake no obligation or responsibility to update any of the information contained in this

document. Past performance does not guarantee or predict future performance.

This document and the information contained herein do not constitute an offer to sell or the solicitation of an offer to buy any security, commodity

or instrument or related derivative, nor do they constitute an offer or commitment to lend, syndicate or arrange a financing, underwrite or purchase

or act as an agent or advisor or in any other capacity with respect to any transaction, or commit capital, or to participate in any trading strategies,

and do not constitute legal, regulatory, accounting or tax advice to the recipient. We recommend that the recipient seek independent third party

legal, regulatory, accounting and tax advice regarding the contents of this document. This document does not constitute and should not be

considered as any form of financial opinion or recommendation by us or any of our affiliates. This document is not a research report and was not

prepared by the research department of Seadrill Limited or any of its affiliates.

Table of Contents

•

Executive Summary

•

Updated Business Plan

•

Updated Components

1.

Q3 Actuals

2.

Movement in the USD LIBOR Swap Curve

3.

Fearnley December 2017 Update

4.

2018 Budget, Rollover Cost and Other Assumptions

•

Appendix

Cleansing Presentation Case vs December Delayed Dayrate Case

3

Executive Summary

4

Executive Summary

5

The Business Plan, which forms the basis for the Recapitalisation Plan being negotiated

with our creditors, has been updated to reflect:

Q3 Actuals

Movement in the USD LIBOR swap curve

Revised Fearnley

dayrate

and utilisation assumptions (taken from the Fearnley

December 2017 Addendum Report)

The 2018 budget, revised rollover cost and other assumptions

The updated Business Plan (the “Updated Business Plan”) over the period 2017-2022

see revenues lower by $1,407 million, EBITDA lower by $499 million and cash flow

(UFCF) lower by $604 million compared to the presentation published on 12 September

2017

(the

“Cleansing

Presentation”)

(1)

The Updated Business Plan does not draw on either IHCo

cash or on the $500 million

Amortisation Conversion Election

1. Cleansing Presentation released in the form of a 6-K on September 12, 2017

Updated Business Plan

6

Updated Business Plan –

December Financing Case

Key Financials

7

1. Amortisation in 2020 is less than the term sheets’ 2020 amortisation of $434mm, which reflects the true-up for amortisation paid after 1 August 2017

($ in millions)

2017

2018

2019

2020

2021

2022

Total

Delta to

Cleansing Deck

Cash Flow Items

Revenue

$1,892

$1,159

$2,152

$2,662

$2,939

$3,192

$13,997

($1,406)

Opex

($866)

($637)

($1,025)

($1,107)

($1,220)

($1,280)

($6,134)

$724

G&A

($273)

($164)

($171)

($177)

($192)

($199)

($1,176)

$183

EBITDA

$754

$359

$956

$1,378

$1,527

$1,713

$6,687

($499)

LTM & Capex

(138)

(296)

(492)

(284)

(233)

(138)

($1,580)

($52)

Working

Capital

($127)

$85

($163)

($110)

($43)

($40)

($397)

($172)

Tax

($64)

($56)

($115)

($144)

($167)

($181)

($727)

$121

Unlevered FCF

425

91

186

841

1,085

1,354

3,982

($603)

Debt service

(1,248)

(471)

(462)

(815)

(955)

(1,125)

(5,076)

$523

New Capital / Other

344

895

40

40

40

40

1,399

$27

Net Cash Flow

(479)

515

(236)

66

170

269

305

($54)

Balance Sheet Items

Bank Debt

$5,662

$5,662

$5,662

$5,304

$4,782

$4,064

$621

New Secured Capital

-

895

968

1,048

1,135

1,228

($25)

Bonds

2,295

-

-

-

-

-

Sale Leaseback

787

689

592

494

397

299

Total Debt

$8,744

$7,246

$7,222

$6,846

$6,313

$5,592

$597

Cash

890

1,405

1,170

1,236

1,406

1,674

($54)

Net Debt

$7,854

$5,840

$6,052

$5,610

$4,908

$3,918

$650

Credit Statistics

Net Debt / EBITDA

10.4x

16.3x

6.3x

4.1x

3.2x

2.3x

0.4x

Key Metrics –

New Business Plan vs Cleansing Deck

8

Revenue

EBITDA

UFCF

Change from the Cleansing Deck Case to the December Financing Case

1,892

754

1,713

91

1,354

Dec Total

Dec Total

Cumulative

Reduction

425

48

186

841

1,085

1,326

43

228

98

177

28

604

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2017

2018

2019

2020

2021

2022

172

744

359

956

1,378

1,527

1,680

10

193

39

165

144

33

499

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

1,865

1,159

2,152

2,662

2,939

3,192

27

655

247

318

210

4

1,407

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

Legend

Updated Business Plan –

Cashflow Bridge

9

$54 million decrease

Impact of

Budget &

Rollover

Assumptions

$1,728

$1,674

($45)

($86)

($790)

$346

$521

$0

$300

$600

$900

$1,200

$1,500

$1,800

$2,100

Cleansing Deck

2022 Ending Cash

Impact of Q3

Actuals

Impact of LIBOR

Impact of Fearnley

Update

Cash Flow Sweep /

Debt Service

Change

Updated Business

Plan 2022 Ending

Cash

($mm)

10

Liquidity After Restructuring

1.

Consolidated cash includes cash in RigCo, IHCo, NSNCo and SDRL Ltd

Updated Business Plan –

Liquidity

$210mm in Reactivation Costs

incurred in 1Q 2019

-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

RigCo Liquidity

Consolidated Liquidity

Min. Liquidity Requirement (at RigCo)

-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

RigCo Liquidity

Consolidated Liquidity

Min. Liquidity Requirement (at RigCo)

Cleansing Deck Forecast

Updated Business Plan

11

Updated Components

Q3 Actual

Q3 Actuals

12

Key Financials Q3 2017

($ in millions)

Q3 Forecast

Q3

Actual

Delta

Cash Flow Items

Revenue

$440

$468

$28

Opex

(205)

(209)

($4)

G&A

($55)

($69)

($14)

EBITDA

$180

$190

$10

LTM & Capex

(31)

(47)

(16)

Working

Capital

(39)

(172)

($133)

Tax

(24)

(7)

$17

Unlevered FCF

$85

($36)

($121)

Debt service

(265)

(265)

(0)

New Capital / Other

42

118

76

Net Cash Flow

($138)

($184)

($45)

Balance Sheet Items

Bank Debt

$5,662

$5,662

-

New Secured Capital

-

-

-

Bonds

2,295

2,295

-

Sale Leaseback

811

811

-

Total Debt

$8,768

$8,768

$0

Cash

1,106

1,060

(45)

Net Debt

$7,662

$7,708

$45

Credit Statistics

Net Debt / EBITDA

8.6x

8.6x

0.1x

Higher EBITDA due to higher uptime,

partially offset by higher operating

and G&A costs for the quarter relative

to forecast

Forecast assumes flat quarterly G&A

of $55 million, main difference to

actual relates to timing of costs

incurred (2017 full year actual

forecast: $192 million vs full year

forecast of $220 million)

Lower working capital due to higher

prepaid expenses related to pre-

petition liability settlements

Net cashflow reduction of $45 million

Updated Components

LIBOR Curve

13

14

Change in LIBOR Curve

•

The cleansed business plan at the point of filing used the prevailing LIBOR swap curve at

the time

•

US interest rates have risen since then as shown above, leading to higher interest

expense over the 5-year projection period

•

This movement results in an $86 million decrease in Unlevered Free Cash Flow during the

period

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%

2.20%

2.40%

2.60%

2.80%

3.00%

September LIBOR Curve

December LIBOR Curve

Updated Components

Fearnley December 2017 Update

15

Overview

16

Fearnley

released

a

third

addendum

report

in

December

2017

to

the

original

report

on

the

offshore

drilling

market

released

in

February

2016

Their

updated

report

indicates

weaker

market

conditions

in

the

short

to

medium

term

and

a

slower

recovery:

Dayrate

and

utilisation

forecasts

are

lower

across

the

forecasted

period

Full

recovery

of

the

drilling

market

postponed

to

2021

This

was

largely

driven

by

developments

on

the

demand

side

as

the

prolonged

downturn

is

keeping

dayrates

at

the

lower

end

of

the

range

previously

predicted

Following

the

drop

in

oil

price

in

late

May

this

year,

additional

drilling

programs

were

postponed

over

the

summer,

leading

to

a

somewhat

less

bullish

demand

picture

in

the

near

term

At

the

same

time

Fearnley

noted

that

the

probability

of

a

future

recovery

has

strengthened,

even

if

timing

remains

difficult

to

predict:

Oil

market

rebalancing

is

ongoing

with

price

now

stable

within

the

range

predicted

by

Fearnley

Depletion

of

current

fields

is

still

a

growing

trend

and

will

not

be

reversed

without

significant

investment

by

the

oil

companies

US

shale

has

become

less

of

a

threat

as

the

long

term

production

volumes

achievable

even

under

optimistic

assumptions

are

nowhere

near

what

would

be

required

to

replace

offshore

production

Offshore

drilling

costs

have

been

reduced

substantially

Variance Analysis –

Cleansing Presentation Case vs December Financing Case

Operating Assumptions Variance: Floaters

Operating Assumptions Variance: BE JU

Comments

2018

2019

2020

2021

2022

Uncontracted Dayrate

Jun 2017

$224

$315

$420

$435

$435

Dec 2017

$224

$322

$394

$406

$428

Delta

-

7

($26)

($29)

($7)

%

-

2%

(6%)

(7%)

(2%)

Total Floater

Utilisation

Jun 2017

77%

87%

89%

91%

91%

Dec 2017

58%

76%

83%

89%

92%

Delta

(19%)

(11%)

(6%)

(2%)

1%

Operating Assumptions Variance: HE JU

•

Floater and BE JU dayrates and utilisation

revised downward

•

Floater and BE JU market fully rebalanced by

2021 vs 2020 previously

•

HE JU market dayrate assumptions improved

throughout the forecast period although 2019+

utilisation assumptions reduced

2018

2019

2020

2021

2022

Uncontracted Dayrate

Jun 2017

$90

$97

$112

$118

$125

Dec 2017

$67

$84

$94

$103

$111

Delta

($23)

($13)

($18)

($15)

($14)

%

(26%)

(14%)

(16%)

(13%)

(11%)

Total BE

JU Utilisation

Jun 2017

85%

89%

90%

89%

88%

Dec 2017

68%

74%

87%

90%

90%

Delta

(17%)

(15%)

(3%)

1%

3%

2018

2019

2020

2021

2022

Uncontracted Dayrate

Jun 2017

$137

$158

$215

$243

$243

Dec 2017

$169

$197

$236

$253

$263

Delta

$32

$39

$2

$10

$20

%

23%

25%

1%

4%

8%

Total HE

JU Utilisation

Jun 2017

67%

90%

90%

90%

90%

Dec 2017

78%

79%

88%

86%

83%

Delta

11%

(11%)

(2%)

(4%)

(7%)

17

Updated Components

Impact of Budget & Rollover Assumptions

18

2018 Budget Update Impact

19

Key Financials 2018

($ in millions)

2018

Fearnley

2018

Budget

Delta

Cash Flow Items

Revenue

$1,426

$1,159

(267)

Opex

(846)

($637)

209

G&A

(220)

($164)

56

EBITDA

$360

$359

(1)

LTM & Capex

(220)

(296)

(76)

Working

Capital

39

$85

46

Tax

(76)

($56)

20

Unlevered FCF

$102

91

(11)

Debt service

(482)

(471)

11

New Capital / Other

943

895

(48)

Net Cash Flow

564

515

(49)

Balance Sheet Items (as of Q4 18)

Bank Debt

$5,662

$5,662

-

New Secured Capital

913

895

(18)

Bonds

-

-

-

Sale Leaseback

689

689

-

Total Debt

$7,264

$7,246

(18)

Cash

1,454

1,405

(49)

Net Debt

$5,810

$5,841

31

Credit Statistics

Net Debt / EBITDA

16.2x

16.3

0.1x

Lower EBITDA due to fewer assumed

operating units relative to Fearnley 2018

forecast, partially offset by reduced

operating costs and G&A

Higher LTM and capex primarily due to

SPS classings and rig upgrades either for

marketability or customer specific

requirements

Lower cash tax and higher working capital

release due to lower projected revenue for

the year

Reduced debt service and New Secured

Capital outstanding due to timing

adjustment for the effective date (NSN

issuance)

Rollover Cost Assumptions –

Opex

20

The Cleansing Presentation assumed rollover opex per rig of $130k/d in 2018,

followed by a ramp-up of costs in line with the shape of Fearnley’s market

utilisation assumptions. Normalisation was assumed to occur in 2020

The 2018 budget update shows an average opex per rig of $125k/d. The ramp-

up from that point has been amended to reflect a normalised market in 2021

per Fearnley’s December update

2018

2019

2020

2021

2022

Opex

130k/d

135k/d

146k/d

152k/d

158k/d

Ramp up %

4%

4%

8%

4%

4%

2018

2019

2020

2021

2022

Opex

125k/d

130k/d

135k/d

146k/d

152k/d

Ramp up %

-

4%

4%

8%

4%

Rollover Cost Assumptions –

G&A

21

The Cleansing Presentation had a flat G&A assumption throughout the

forecast of $220 million per annum

The Updated Business Plan 2018 budget update shows G&A of $164 million,

down from $192 million forecasted for 2017, given cost reductions achieved.

Roll-over G&A costs are assumed to move in line with opex assumptions

2018

2019

2020

2021

2022

G&A

$220m

$220m

$220m

$220m

$220m

Ramp up %

-

-

-

-

-

2018

2019

2020

2021

2022

G&A

$164m

$171m

$177m

$192m

$199m

Ramp up %

-

4%

4%

8%

4%

Management Fees Related to SDLP and

SeaMex

22

Seadrill provides management services to SDLP and SeaMex

The fees charged by SDRL represent their respective allocations in G&A and

certain onshore-related opex costs and are split as follows:

These fees are included in the December update, but were not included in the

previous cleansing deck

2018 Budget/Reported

SDLP/SeaMex Related

2018 SDRL Net

Opex

$636.7 million

$14.7 million

$622.0

million

G&A

$164.0

million

$34.8

million

$129.1 million

Total Operating

Costs

$800.7 million

$49.5 million

$751.1 million

Rollover Cost Assumptions –

LTM & Capex

23

The Cleansing Presentation’s LTM & Capex per unit (excluding 5-year SPSs)

assumptions were:

The December revision reflects the Company’s actual experience over the past

3 years, which we believe is a better benchmark

Asset Class

LTM

Capex

Floaters

US$4.0m

US$2.0m

Jack-ups

US$1.5m

US$0.5m

Asset Class

LTM

Capex

Floaters

US$4.0m

US$1.0m

Jack-ups

US$0.8m

US$0.5m

Key Metrics –

New Business Plan vs Cleansing Deck

24

Revenue

EBITDA

UFCF

Change from the Cleansing Deck Case to the December Financing Case

1,892

754

1,713

91

1,354

Dec Total

Dec Total

Legend

Cumulative

Reduction

425

48

186

841

1,085

1,326

43

228

98

177

28

604

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2017

2018

2019

2020

2021

2022

172

744

359

956

1,378

1,527

1,680

10

193

39

165

144

33

499

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

1,865

1,159

2,152

2,662

2,939

3,192

27

655

247

318

210

4

1,407

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

($mm)

25

Liquidity After Restructuring

1.

Consolidated cash includes cash in RigCo, IHCo, NSNCo and SDRL Ltd

Updated Business Plan –

Liquidity

Cleansing Deck Forecast

Updated Business Plan

$210mm in Reactivation Costs

incurred in 1Q 2019

-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

RigCo Liquidity

Consolidated Liquidity

Min. Liquidity Requirement (at RigCo)

-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

RigCo Liquidity

Consolidated Liquidity

Min. Liquidity Requirement (at RigCo)

Cash Hazards and Opportunities

Hazards

Opportunities

Entity Affected /

Beneficiary

Newbuilds

guarantee

settlement

TBD

-

RigCo

Working capital buffer

-

+$50 million

RigCo

Support

for JV’s

-$40 million

-

RigCo

Seadrill Partners distributions

(1)

-$40 million p.a.

-

IHCo

Sapura deferred

consideration

(2,3)

-

+$95 million

RigCo

/ NSNCo

Seabras Sapura J.V. dividends

-

+$40 million p.a.

NSNCo

26

1.

Includes distributions from subsidiaries of Seadrill Partners to Seadrill Partners that are then up-streamed and distributions from Seadrill Ltd’s direct stake in the

subsidiaries of Seadrill Partners

2.

As of September 30, 2017

3.

NSNCo benefits post-closing, subject to a minimum outstanding balance of $55m

Summary of the Business Plan Update

In conducting its annual budgeting process, the Company has updated its

Business Plan to reflect its 2018 budget and updated dayrate and utilisation

projections

While dayrates and utilisation are generally lower than the Cleansing

Presentation throughout the projection period, the forecast anticipates a return

to a normalised market by 2021

The impact of lower dayrates and utilisation is partially offset by improved

operating expense and SG&A

Although there is a $603 million reduction in UFCF over the forecast period,

RigCo does not need to receive cash from IHCo or exercise the Amortisation

Conversion Election

27

Appendix

December Delayed Dayrate

28

Variance Analysis –

December Delayed Dayrate Case

Operating Assumptions Variance: Floaters

Operating Assumptions: HE Jack-ups

Operating Assumptions: BE Jack-ups

2017

2018

2019

2020

2021

2022

Total Utilisation Rate

Jun 2017 Financing

51%

77%

87%

89%

91%

91%

Jun 2017 Delayed Dayrate

51%

77%

87%

89%

91%

91%

Dec

2017 Financing

51%

58%

76%

83%

89%

92%

Dec 2017 Delayed Dayrate

51%

58%

76%

83%

89%

92%

Annual Uncontracted Dayrate

Jun 2017 Financing

$180

$268

$363

$420

$435

$435

Jun 2017 Delayed

Dayrate 

$180

$224

$316

$420

$435

$435

Dec 2017 Financing Case

$180

$224

$322

$394

$406

$428

Dec 2017 Delayed

Dayrate 

$180

$202

$273

$394

$406

$428

Legend

Recovery Delay

Midpoint calculation for 6 month delay

2017

2018

2019

2020

2021

2022

Total Utilisation Rate

Jun 2017 Financing

67%

67%

90%

90%

90%

90%

Jun 2017 Delayed Dayrate

67%

67%

90%

90%

90%

90%

Dec

2017 Financing

67%

78%

79%

88%

86%

83%

Dec 2017 Delayed Dayrate

67%

78%

79%

88%

86%

83%

Annual Uncontracted Dayrate

Jun 2017 Financing

$133

$141

$175

$215

$243

$243

Jun 2017 Delayed

Dayrate 

$133

$137

$158

$215

$243

$243

Dec

2017 Financing

$133

$169

$197

$236

$253

$263

Dec 2017 Delayed Dayrate

$133

$151

$183

$236

$253

$263

2017

2018

2019

2020

2021

2022

Total Utilisation Rate

Jun 2017 Financing

65%

85%

89%

90%

89%

88%

Jun 2017 Delayed Dayrate

65%

85%

89%

90%

89%

88%

Dec

2017 Financing

65%

68%

74%

87%

90%

90%

Dec 2017 Delayed Dayrate

65%

68%

74%

87%

90%

90%

Annual Uncontracted Dayrate

Jun 2017 Financing

$84

$95

$99

$112

$118

$125

Jun 2017 Delayed

Dayrate 

$84

$90

$97

$112

$118

$125

Dec

2017 Financing

$84

$67

$84

$94

$103

$111

Dec 2017 Delayed Dayrate

$84

$76

$75

$94

$103

$111

29

Cleansing Deck Case vs December Delayed Dayrate Case

Revenue

EBITDA

UFCF

Change from the Cleansing Deck Case to the December Delayed Dayrate Case

91

1,354

172

1,892

754

1,713

30

Dec Total

Dec Total

Legend

Cumulative

Reduction

1,865

1,159

1,916

2,662

2,939

3,192

27

655

483

318

210

4

1,643

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

744

359

721

1,378

1,527

1,680

10

193

274

165

144

33

734

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

425

48

7

799

1,085

1,326

43

407

140

177

28

825

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2017

2018

2019

2020

2021

2022

($mm)

31

Liquidity After Restructuring

1.

Consolidated cash includes cash in RigCo, IHCo, NSNCo and SDRL Ltd

Cleansing

Deck

vs

December

Delayed

Dayrate

–

Liquidity

(1)

(1)

Cleansing

Deck

Forecast

–

Delayed

Dayrate

Updated

Business

Plan

–

Delayed

Dayrate

December Delayed Dayrate Case –

Key Metrics

32

Key Financials

($ in millions)

2017

2018

2019

2020

2021

2022

Total

Delta to

Cleansing Deck

Cash Flow Items

Revenue

$1,892

$1,159

$1,916

$2,662

$2,939

$3,192

$13,762

($1,641)

Opex

($866)

($637)

($1,025)

($1,107)

($1,220)

($1,280)

($6,134)

$724

G&A

($273)

($164)

($171)

($177)

($192)

($199)

($1,176)

$183

EBITDA

$754

$359

$721

$1,378

$1,527

$1,713

$6,451

($734)

LTM & Capex

(138)

(296)

(492)

(284)

(233)

(138)

($1,580)

($52)

Working

Capital

($127)

$85

($121)

($151)

($43)

($40)

($397)

($172)

Tax

($64)

($56)

($101)

($144)

($167)

($181)

($713)

$135

Unlevered FCF

425

91

7

799

1,085

1,354

3,761

($824)

Debt service

(1,248)

(471)

(462)

(815)

(955)

(959)

(4,910)

$689

New Capital / Other

344

895

40

40

40

40

1,399

$27

Net Cash Flow

(479)

515

(415)

25

170

435

250

($109)

Balance Sheet Items

Bank Debt

$5,662

$5,662

$5,662

$5,304

$4,782

$4,230

$787

New Secured Capital

-

895

968

1,048

1,135

1,228

($25)

Bonds

2,295

-

-

-

-

-

Sale Leaseback

787

689

592

494

397

299

Total Debt

$8,744

$7,246

$7,222

$6,846

$6,313

$5,758

$763

Cash

890

1,405

990

1,015

1,184

1,619

($109)

Net Debt

$7,854

$5,840

$6,232

$5,832

$5,129

$4,139

$871

Credit Statistics

Net Debt / EBITDA

10.4x

16.3x

8.6x

4.2x

3.4x

2.4x

0.5x

1. Amortisation in 2020 is less than the term sheets’ 2020 amortisation of $434mm, which reflects the true-up for amortisation paid after 1 August 2017