KCA Deutag Deutsche Bank high yield conference September

KCA Deutag Deutsche Bank high yield conference September 2015 www. kcadeutag. com Private & Confidential – Not for Onward Distribution

Disclaimer This presentation has been prepared by KCA Deutag Alpha Limited (the “Company”). No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness. Although care has been taken to ensure that the facts stated in this presentation are accurate, and that the opinions expressed are fair and reasonable, the contents of this presentation have not been subject to any independent audit or review or been verified by the Company or its advisers. Accordingly, neither the Company, nor affiliated partnerships or bodies corporate, nor any of the Company's advisers, nor the directors, shareholders, managers, partners, employees or agents of any of them, makes any representation or warranty, express or implied, as to the accuracy, reasonableness or completeness of the information contained herein. All such parties and entities expressly disclaim any and all liability for, or based on or relating to any such information contained in, or errors in or omissions from, this presentation or based on or relating to the use of the presentation or otherwise arising in connection with it. This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire any securities or an inducement to enter into investment activity. No part of this document, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This presentation may include certain forward-looking statements, estimates, predictions, influences and projections with respect to anticipated future performance and as to the market for products or services which may reflect various assumptions made by the management of the Company. These assumptions may or may not prove to be correct and no representation is made as to the accuracy of such statements, estimates, predictions, influences and projections. These statements and forecasts involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Accordingly, forward-looking statements are not guarantees of future performance and actual results of operations, financial condition and liquidity and the development of the industry in which it operates which may differ materially from those made in or suggested by the forward-looking statements in this presentation. Furthermore, the information and opinions contained in this presentation are subject to change without notice and the Company and its adviser assumes no responsibility or obligation to update this presentation or any of the forward-looking statements contained herein. The information contained within the accompanying presentation is confidential and must not be disclosed to any third party without the prior written consent of the Company. The unauthorised disclosure of this presentation or any information contained in or relating to it could damage the interests of the Company and/or its affiliates and advisers and have serious consequences. The information contained in this document is provided as at the date of this document and is subject to change without notice. This presentation contains non-IFRS measures and ratios that are not required by, or presented in accordance with, IFRS. The Company presents non-IFRS measures because it believes that they and similar measures are widely used by certain investors, analysts and other interested parties as supplemental measures of performance and liquidity. The non-IFRS measures may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of the operating result as reported under IFRS. Non-IFRS measures and ratios are not measurements of the Company's performance or liquidity under IFRS and should not be considered as alternatives to profit for the year or any other performance measures derived in accordance with IFRS or any other generally accepted accounting principles or as alternatives to cash flow from operating, investing or financing activities. 2 Private & Confidential – Not for Onward Distribution

1 www. kcadeutag. com Company Overview Private & Confidential – Not for Onward Distribution

Market-leading international drilling & engineering company Integrated Land Drilling Offshore Drilling Services & Design US$181 m EBITDA (56% of total)¹ US$122 m EBITDA (37% of total)¹ Land Drilling • • Bentec Leading international • premium drilling rig owner and operator Operations: Russia, Africa, • Middle East, Europe and SE Asia Design and manufacture of high -end premium land rigs and components Facilities: Germany, Russia, Oman Platform Services • • Leading global platform drilling • service operator outside North America Operations: UK North Sea, • Norway, Azerbaijan, Russia, SE Asia and Africa Rig Design Services (RDS) Rig design engineering from concept to commission Offices: Aberdeen, Baku, Bergen, Houston, London, St. Johns Design & Manufacture Manage Design & Engineering • Rigs: High end fleet of • Facilities: Capacity for • Staff: c. 3, 000 managing • Staff: c. 400 engineers 53 drilling rigs, 2 workover rigs • 96% of new rigs since 2007 have been built by Bentec 12 -16 rigs and 50 top drives 2 p. a. drilling operations on 41 platforms • Approx. 60% of platforms designed or refurbished by RDS Own & Operate ¹ LTM EBITDA, % split of total including MODUs, before corporate costs/ other of $38. 4 m. Note: MODUs LTM EBITDA $22. 1 m represented 6. 8% of total EBITDA before corporate costs 2 High-specification mechanical equipment turning the drill string 4 Private & Confidential – Not for Onward Distribution and support staff

Operating across a balanced and diverse range of countries Bergen Stavanger Aberdeen (HQ) Houston Russia 17 Rigs North Sea /Norway 27 Plat. St. Johns London Ben Loyal jack-up rig Russia Sakhalin 3 Plat. Tyumen Europe & Caspian 7 Rigs 7 Caspian Plat. Bad Bentheim Middle East 14 Rigs Baku Myanmar 1 Plat. Africa 14 Rigs LTM Q 2 2015 EBITDA split by region Dubai Brunei 1 Rig Nizwa Angola 3 Plat. Years of operation in key markets 150 Ben Rinnes jack-up rig 127 Years 120 90 56 60 51 41 16 30 0 Europe Regional offices 5 Land Drilling Platform Services RDS offices MODUs Map excludes work over land rigs, defined as being below 900 HP Private & Confidential – Not for Onward Distribution Bentec North Africa Middle North Sea Russia East

High-quality customer base Key customers by division Customer diversification – LTM Q 2 2015 Offshore Drilling Services & Design Integrated Land Drilling Others IOC IOC NOC NOC NOC IOC NOC c. 25% of revenue¹ Diversified long-term customer base predominantly with IOCs and NOCs ¹ c. 25% of the revenues are generated from Shell, BP & Statoil 6 Private & Confidential – Not for Onward Distribution

Operating in markets less impacted by the oil price reduction Themes KCAD relevance Supporting data • KCAD operates in many drilling environments with lower lifting costs Focused on production drilling in resilient markets Strong international land drilling environment • Oil revenues are often critical to government budgets in these markets • The Platforms business is working on production platforms where the majority of the capex has already been invested (opex focus) • KCAD has no exposure to the US market, where rig count levels are much more volatile and the market is generally more commoditised Source: Marginal production costs: Knoema, Rig count: Baker Hughes 7 Private & Confidential – Not for Onward Distribution

Strong industry track-record of excellent HSE performance Historical total recordable incident rate (TRIR) • KCAD has achieved its best ever safety results over the last 12 months • The group has consistently performed ahead of industry peers in the International Association of Drilling Contractors (IADC) • Maintaining high safety and operational standards is a key priority for the business • Even in today’s market this is still a key differentiator for customers when selecting a partner for operations in challenging environments KCAD HSE statistics vs IADC (Q 2 2015) Source: International Association of Drilling Contractors (IADC) Note: TRIR stands for Total Recordable Incident Rate (per 200, 000 man hours); LTIR stands for Lost Time Incident Rate. 1 Total Recordable Incident Rate is directly comparable with IADC’s Total Recordables (RCRD) statistic 8 Private & Confidential – Not for Onward Distribution

High level of forward earnings visibility, with $7. 6 bn backlog Company’s backlog 1 ($m) including options Comments • Current total backlog of $7. 6 bn 1 including options • Only 4 contracts terminated earlier than expected since H 1 2014 across core divisions with the total lost revenue of $24 m (0. 3% of total backlog) Platform Services • Long term contracts – typically 3 -5 years and up to 10 years with options • High cost / inconvenience attached to switching operators on existing platforms • 3 platforms in the North Sea have been stacked in the last 12 months but we continue work with a reduced crew Land Drilling • International markets characterised by longer term contracts, often 1 -3 years and sometimes longer • As an example the contracts for the Khazzan project in Oman are 5 years plus options Bentec • Bolstered by good order intake in H 1 2015 • Challenge remains to fill the pipeline for 2016 with current tendering activity 1 Backlog is our estimate of potential future revenue under undisputed contracts (including extension options) between the Company and its customers. The backlog amounts in this presentation are our estimates as of 1 -Aug-2015. Our backlog may change over time depending on any early cancellation of contracts, failure to exercise customer extension options, changes to the scope of work and changes to the applicable day rate 9 Private & Confidential – Not for Onward Distribution

Robust platform services contract backlog 10 Private & Confidential – Not for Onward Distribution

Well invested land fleet supporting utilisation Rejuvenation of the land rig fleet • Significant investment in the land rig fleet over recent years • All are high specification rigs built for the premium land drilling market • New build rig construction is only initiated based on signed long term contracts • Land business utilisation continues to hold up well in the current environment • Although it has decreased from a peak in H 2 2013, it has been relatively stable in recent months • We are seeing good activity levels in Russia, Oman and Algeria • Nigeria and Europe are weaker areas where we are experiencing softer utilisation than elsewhere in our portfolio 11 Private & Confidential – Not for Onward Distribution

Current new build program approaching completion New build land rig contracts Rig 1 Oman c. 31 5 yrs + 3 x 1 yr options Operating • All ongoing capex projects were initiated in 2014 and are supported by long term contracts Rig 2 Oman c. 31 5 yrs + 3 x 1 yr options Operating • Up front contributions of $40 m received from clients Rig 3 Oman c. 31 5 yrs + 3 x 1 yr options Operating Rig 4 Russia c. 30 3 yrs + 3 x 1 yr options Operating Rig 5 Brunei c. 37 3 yrs + 3 x 1 yr options In construction Rig 6 Russia c. 29 3 yrs Rig 7 Oman c. 31 5 yrs + 3 x 1 yr options In construction Rig 8 Oman c. 31 5 yrs + 3 x 1 yr options In construction Rig Country Cost ($m)1 Contract length Status Operating • The 2015 growth capex plan is almost complete, with no new growth capex commitments currently proposed • Maintenance capex spend for 2015 $80 m - $85 m New build land rigs schedule • Total 2015 capex spend on ongoing new build construction projects c. $130 m • Remaining capex spend in H 2 2015 c. $54 m • All contracts remain in place without any re-negotiation of terms All new build capital expenditure is targeted at a minimum 18% IRR 12 Construction Operational 1 Excludes cost of mobilisation given this is reimbursed by client Private & Confidential – Not for Onward Distribution

Significant cost saving initiatives being implemented 1. A drive to reduce staff costs and discretionary spending which has delivered significant savings a) Salary reduction and salary freezes across the business b) c. 250 redundancies worldwide in overhead positions c) Significant reduction in discretionary spending 2. Reducing costs in supply chain delivered through a companywide initiative across all operations and business units 3. Significant senior management focus on working capital and the full delivery of the various cost reduction initiatives a) Bi-weekly 13 week cash forecasting process b) Monthly BU review meetings with KPI & forecasting updates 13 Private & Confidential – Not for Onward Distribution

Experienced management team supported by committed shareholders Senior management Name, Title Biography Norrie Mc. Kay CEO • • • Neil Gilchrist CFO Comments Current consortium of investors acquired KCA Deutag in March 2011 • Shareholders have demonstrated continued support to our growth and success, more than $650 m total cash investment to date to support the business and fund growth capex • Of this, $50 m was received in Q 1 2015 as part of a $100 m commitment. $50 m remains undrawn • Management have made personal equity investments in the business 34 years in the Oil & Gas industry Joined KCAD in 2011 as Chairman, CEO in May 2012 With Schlumberger / Smith International for 26 years internationally • 20+ years of international finance experience with Lyondell. Basell • • • Joined KCAD as CFO in January 2013 Shareholder structure Graduated with degree in Accountancy and Economics Qualified as Chartered Accountant with Price Waterhouse Name Title Division Experience Simon Drew President Land Drilling 18 years Rune Lorentzen President Offshore 36 years Dirk Schulze CEO Bentec 19 years Jack Winton SVP Operations 21 years ¹ Including management 14 • Private & Confidential – Not for Onward Distribution Others 1

2 www. kcadeutag. com Financials Private & Confidential – Not for Onward Distribution

Business Unit Performance • Land • Strong results from markets focussed on maintaining market share by maximising production • Weaker results in others where margins are key • New build start ups ramping up contribution • Platforms • Platform drilling has remained robust • Worked closely with clients to introduce cost saving and efficiency initiatives • Sales and rental activity reduced in Norway • RDS • This is the business most significantly impacted due to reduced capex spend by oil majors • Significant reductions in headcount implemented to counteract the reduced revenue levels • Bentec • Well ahead of the prior year although this is mainly due to the timing of EBITDA recognition • Tendering activity continues to secure 2016 capacity • MODU’s • Reduced to 2 Jack-Ups following the sale of the selferecting tender barges at the end of last year • Ben Rinnes continues to operate offshore Angola • Ben Loyal is currently working under a short-term contract extension at a reduced day rate offshore Mexico 16 Private & Confidential – Not for Onward Distribution

Group Results Financial Performance to 30 June 2015 17 Revenue and EBITDA ($m) Q 2 2015 YTD $m Q 2 2014 YTD $m Revenue from business units 949. 8 1, 099. 2 Eliminations (75. 5) (44. 5) Total revenue 874. 3 1, 054. 7 EBITDA from business units 155. 2 182. 8 Eliminations (1. 3) (1. 1) Corporate costs/other (9. 9) (11. 8) Exchange (2. 7) (0. 1) Total EBITDA 141. 3 169. 8 Private & Confidential – Not for Onward Distribution

Capital Structure As at 30 June 2015 Net debt / LTM EBITDA Debt maturity profile ($m) 18 Available Liquidity

Closing remarks: KCA Deutag summary 1. Market leading international drilling and engineering company Unique provider of end to end expertise across the drilling sector All four core business units recognised by the global oil majors as leading providers in their sector Integrated land offshore drilling operations 2. Robust operational and financial performance Total EBITDA of $141 m for H 1 2015 and a strong backlog position of $7. 6 bn Results benefiting from completion of the shareholder backed new build programme 3. Well positioned to respond to the challenging market environment 19 Focused on production drilling in markets with low lifting costs Operating across a diverse range of geographies and markets with a blue chip customer base Significant cost reductions being quickly implemented Experienced management team supported by committed shareholders Private & Confidential – Not for Onward Distribution

Q & A investor. relations@kcadeutag. com 20 Private & Confidential – Not for Onward Distribution