EX-99.2 3 dex992.htm EARNINGS PRESENTATION FOR THIRD QUARTER ENDED AUGUST 31, 2009 Earnings Presentation for Third Quarter Ended August 31, 2009
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EARNINGS PRESENTATION
THIRD
QUARTER
ENDED
AUGUST
31,
2009
OCTOBER 14, 2009
3:00 PM UK TIME
Exhibit 99.2

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October 14, 2009
slide 2
Forward-Looking Statements
Forward-Looking Statements:
Certain
statements
made
in
this
announcement
may
include
“forward-looking
statements”
within
the
meaning
of
Section
27A
of
the
Securities
Act
and
Section
21E
of
the
US
Securities
Exchange
Act of
1934.
These
statements
may
be
identified
by
the
use
of
words
like
“anticipate,”
“believe,”
“estimate,”
“expect,”
“intend,”
“may,”
“plan,”
“forecast”, “project,”
“will,”
“should,”
“seek,”
and similar expressions. These
statements
include,
but
are
not
limited
to,
statements
as
to
the
approximate
value
of
the
awarded
contracts,
our
anticipated performance for fiscal year 2009, the underlying market fundamentals, the anticipated conditions of the
SURF market in 2010, our expectation of the approval of additional projects in West Africa, our ability to manage our
business through this market cycle, the expected reduction of our shareholdings in two Angolan joint ventures and
the expected timing and impact thereof, expectations regarding our backlog and pre-backlog, the expected timing of
publishing
our
pre-close
trading
update
and
statements
contained
in
the
“Trading
Outlook”
section,
including
the
expected awards in and our continued focus on the conventional market in West Africa, the expected activity levels,
market conditions and their impact on our margin in 2010, the strength of the medium-term market fundamentals,
our
ability
to
capitalise
on
asset
opportunities,
our
ability
to
exploit
new
growth
areas,
and
statements
as
to
management’s
confidence
of
our
ability
to
meet
our
clients’
strategic
needs
and
to
capture
opportunities
when
the
markets
return
to
growth.
The
forward-looking
statements
reflect
our
current
views
and
assumptions
and
are
subject to risks and uncertainties. The following factors, and others which are discussed in our public filings and
submissions with the U.S. Securities and Exchange Commission, are among those that may cause actual and future
results and trends to differ materially from our forward-looking statements: our ability to recover costs on significant
projects; the general economic conditions and competition in the
markets and businesses in which we operate; our
relationship with significant clients; the outcome of legal and administrative proceedings or governmental enquiries;
uncertainties inherent in operating internationally; the timely delivery of ships on order and the timely completion of
ship conversion programmes; the impact of laws and regulations; and operating hazards, including spills and
environmental damage.  Many of these factors are beyond our ability to control or predict.  Given these factors, you
should not place undue reliance on the forward-looking statements.

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October 14, 2009
slide 3
Third Quarter Highlights
Result
reflects
excellent
operational
performance,
strong
client
relationships
and good execution of projects awarded in previous years when business
conditions were more favourable
Continuing operations:
Revenue of $558 million
Adjusted EBITDA of $110 million
Adjusted EBITDA margin of 19.7%
Net income of $65 million
Diluted EPS of $0.29
Strong
cash
and
cash
equivalents
position
of
$807
million
driven
by
good
operational cashflow
New major contract awards:
$260 million four-year contract for Petrobras for use of the Polar Queen
$110 million contract offshore Angola for Total and BP
SapuraAcergy Joint Venture awarded $170 million contract offshore Australia by 
Apache, post quarter end
Number of smaller awards worldwide

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October 14, 2009
slide 4
Underlying
market
fundamentals
remain
unchanged
-
at
present,
challenging
business conditions prevail in SURF market
Short-term caution -
medium-term fundamentals remain strong
Macro economic concerns have resulted in clients delaying the award of large
SURF projects
SURF market:
Short–term:
poor
visibility
–
sporadic
order
flow
-
project
awards
delayed
by
clients
More aggressive competition and increased pricing pressures expected to impact
negatively 2010 margins
Conventional / hook-up market in West Africa:
Improved visibility following recent awards
Further market awards in West Africa expected in near-term
Backlog for continuing operations of $2.6 billion:
$600 million for execution in remainder of 2009
$1.4 billion for execution in 2010
Current Market Conditions

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October 14, 2009
slide 5
Fiscal year 2009:
Revenue
from
continuing
operations
for
fiscal
year
2009
expected
to
be
in
line with previous guidance
Subject to the successful outcome of a number of commercial negotiations
in the final quarter of fiscal year 2009, we expect to achieve an Adjusted
EBITDA margin from continuing operations, above previous guidance,
although below the outturn for fiscal year 2008
Fiscal year 2010:
We expect that fiscal year 2010 will see lower revenue and particularly,
lower margins due to keener competition for recent and new tenders and
the resultant pricing pressures
Company Expectations

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October 14, 2009
slide 6
Continue to focus on delivering outstanding execution for our clients
Remain
vigilant
–
managing
cost
base
and
risk
profile,
without
compromising
long-term strategy and expertise
Re-orientating resources towards key markets
Despite
present
challenging
conditions
in
the
SURF
market
–
our
long-term
view remains unchanged
Medium-term fundamentals remain strong
Clear and focused strategy
Well positioned to manage through the uncertainties of the present market
cycle and to capitalise on asset opportunities should they emerge and to
capture the expected medium-term upside
Medium-term
fundamentals
remain
strong

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October 14, 2009
slide 7
Three-Months Ended
Nine-Months Ended
In $ millions, except share and per share data
August 31, 
2009
Unaudited
August 31, 
2008
Unaudited
August 31, 
2009
Unaudited
August 31, 
2008
Unaudited
Continuing operations:
Revenue
558.3
639.2
1,586.9
1,954.5
Adjusted EBITDA
110.0
162.3
325.0
437.9
Net operating income
76.9
134.5
229.2
358.1
Taxation
(30.8)
(42.8)
(62.4)
(116.8)
Income – continuing operations
64.7
101.2
179.8
239.8
Net income / (loss) – discontinued operations
2.0
11.7
4.8
(24.0)
Net income 
66.7
112.9
184.6
215.8
Earnings / (loss) per share – Diluted
  Continuing operations
0.29
0.52
0.89
1.25
  Discontinued operations
0.01
0.06
0.03
(0.11)
  Net Earnings
0.30
0.58
0.92
1.14
Weighted average number of  Common Shares and
Common Share equivalents outstanding - Diluted
183.9m
205.9m
183.7m
208.6m
(a)
Refer to appendix for Adjusted EBITDA definition and reconciliation to Net operating income and Net Income.
Financial Highlights
(a)

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October 14, 2009
slide 8
In $ millions
Three-Months Ended
Nine-Months Ended
August 31, 2009
August 31, 2009
Net income – total operations
66.7
184.6
Depreciation and amortisation
33.1
95.8
Other non cash items from operations
(11.4)
(9.5)
Changes in working capital
86.2
114.0
Net cash from operating activities
174.6
384.9
Capital expenditure
Proceeds from sale of assets (net of costs of sale)
Advances to associates & JVs
Dividend from associates & JVs
(34.1)
0.6
-
4.2
(136.9)
73.5
(5.1)
7.4
Net cash from investing activities
(29.3)
(61.1)
New borrowings
1.2
1.3
Exercise of share options
0.7
0.9
Interest paid on convertible note
-
(5.6)
Dividends paid to shareholders
(40.2)
(40.2)
Dividends paid to minority interests
-
(4.9)
Net cash from financing activities
(38.3)
(48.5)
Effect of exchange rate changes on cash
12.2
26.8
Change in cash and cash equivalents 
119.2
302.1
Cashflow Highlights

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October 14, 2009
slide 9
Balance Sheet Highlights
In $ millions as at
August
31
,
2009
Unaudited
November
30, 2008
Audited
August
31,
2008
Unaudited
Property, plant and equipment
845.4
907.6
918.2
Interest in associates
and joint ventures
175.1
140.2
152.1
Trade and other receivables
304.7
354.5
500.7
Assets held for sale
243.6
75.5
1.1
Other accrued
income and prepaid expenses
219.2
233.5
339.7
Cash and cash equivalents
807.0
573.0
438.6
Other assets
126.2
186.8
182.7
Total assets
2,721.2
2,471.1
2,533.1
Total equity
1,002.6
801.4
836.0
Non-current portion of borrowings
411.2
409.2
404.9
Trade and other payables
545.6
651.6
650.1
Deferred revenue
319.9
305.6
327.3
Current tax liabilities
114.2
69.1
111.7
Liabilities directly associated with assets held for sale
173.4
-
-
Other liabilities
154.3
234.2
203.1
Total liabilities
1,718.6
1,669.7
1,697.1
Total equity and liabilities
2,721.2
2,471.1
2,533.1
(2)
(3)
(1)
These figures have been extracted from the Audited Consolidated Financial Statements for 2008.
As at August 31, 2009 a total of $nil million of claims not formally agreed with clients has been included in trade and other receivables.  This compares to $nil
million and $11.2 million of claims included in trade and other receivables as at November 30, 2008 and August 31, 2008 respectively.
As at August 31, 2009 cash balances of $807.0 million exclude $68.1 million relating to Sonamet which as at this date is classified as an asset held for sale.
(1)
(2)
(3)

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October 14, 2009
slide 10
Appendices

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slide 11
Major Project Progression
Continuing Projects >$100m, between 5% and 95% complete as at August 31, 2009 -
excl. long-term ship charters
0%
20%
40%
60%
80%
100%
Mexilhao (Brazil)
Pluto (Australia)
Deep Panuke (Canada)
ALNG (Angola)
PazFlor (Angola)
EPC4A (Nigeria)
Block 15 (Angola)
Moho Bilondo (Congo)
Acergy AFMED
Acergy NEC
Acergy AME
Disc. Operations

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October 14, 2009
slide 12
Backlog Analysis –
continuing operations
Backlog by Region
14%
7%
60%
19%
0%
20%
40%
60%
80%
100%
Aug.31.09
SAM
AFMED
AME
NEC
Backlog by Award Date
<2006
13%
2009
35%
2008
39%
2007
13%
Backlog by Execution Date
2010
53%
2011+
26%
2009
21%
In $ millions as at:
Aug.31.09
May.31.09
Aug.31.08
Backlog
(1)
2,628
2,415
3,038
Pre-Backlog
(2)
42
99
176
(1)
Backlog excludes amounts related to discontinued operations as of Aug.31.09: $72 million, May.31.09: $77 million, Aug.31.08: $243 million
(2)
Pre-backlog reflects the stated value of letters of intent and the expected value of escalations on frame agreements

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October 14, 2009
slide 13
Segmental Analysis –
continuing operations
For the three months
ended August.31.2009
In $ millions
Acergy
NEC
Acergy
AME
Acergy
AFMED
Acergy
NAMEX
Acergy
SAM
Acergy
Corporate
Total –
Continuing
operations
Revenue
216.6
43.2
243.7
13.3
39.3
2.2
558.3
Net operating income / (loss)
34.1
(0.1)
27.2
4.1
6.5
5.1
76.9
   Investment income
1.4
   Other gains 
25.1
   Finance costs
(7.9)
Net income before taxation from continuing operations 
95.5
 
 
 
 
 
 
 
For the three months
ended August.31.2008
In $ millions
Acergy
NEC
Acergy
AME
Acergy
AFMED
Acergy
NAMEX
Acergy
SAM
Acergy
Corporate
Total –
Continuing
operations
Revenue
278.7
48.5
233.4
1.1
77.3
0.2
639.2
Net operating income /(loss) 
88.3
6.8
20.7
0.3
(3.5)
21.9
134.5
    Investment income
5.0
    Other gains
14.4
    Finance costs
(9.9)
Net income before taxation from continuing operations
144.0

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October 14, 2009
slide 14
Regional Performance –
continuing operations
Acergy Northern Europe and Canada
As expected, lower activity levels during the quarter compared to Q3 2008
reflecting ongoing challenging market environment
Good
operational
progress
on
Ormen
Lange,
Dong
Nini,
Gjoa,
Morvin
and
Deep
Panuke
Marathon Volund
Project successfully completed offshore operations and 
commercial settlement negotiations continue
Nine Months Ended
Aug 31
31.1
485.3
126.6
617.0
0
150
300
450
600
750
Net Operating
Revenue
Net Operating
Income
2009
2008
Quarter Ended
Aug 31
216.6
34.1
278.7
88.3
0
100
200
300
Net Operating
Revenue
Net Operating
Income
2009
2008

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October 14, 2009
slide 15
Regional Performance –
continuing operations
Acergy Asia and Middle East
Good
operational
progress
on
projects,
including
Bluewater
Al
Sheehan,
BHP
Pyrenees
and
Pluto
-
which
remained
in
early
stages
One-off
costs
associated
with
the
dry-docking
of
the
Toisa
Proteus
for
hull
cleaning partly offset by good project performance the Pluto Project and
completion
of
Bluewater
Al
Sheehan
and
Van
Gogh
Projects
SapuraAcergy JV delivered a positive contribution in the quarter
Nine Months Ended
Aug 31
144.0
135.8
27.4
12.3
0
50
100
150
Net Operating
Revenue
Net Operating
Income
2009
2008
Quarter Ended
Aug 31
43.2
48.5
(0.1)
6.8
0
20
40
60
Net Operating
Revenue
Net Operating
(Loss) /Income
2009
2008

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October 14, 2009
slide 16
Regional Performance –
continuing operations
Acergy Africa and Mediterranean
Good progress on a number of projects, including EPC4A, Block 15, PazFlor and
Angola LNG, together with a good contribution from Sonamet
A number of major projects in this segment remain in early stages
No major projects completed during the quarter
Awarded Block 17 $110m Angolan Conventional contract
Quarter Ended
Aug 31
243.7
27.2
20.7
233.4
0
100
200
300
Net Operating
Revenue
Net Operating
Income
2009
2008
Nine Months Ended
Aug 31
679.6
105.9
160.9
968.2
0
250
500
750
1,000
Net Operating
Revenue
Net Operating
Income
2009
2008

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October 14, 2009
slide 17
Regional Performance –
continuing operations
Acergy North America and Mexico
Good contribution from Perdido Project in ultra deep Gulf of Mexico
Offshore
operations
on
cross-regional
Frade
SURF
project
and
Perdido
completed in the quarter
Nine Months Ended
Aug 31
46.8
16.8
6.6
2.6
0
25
50
Net Operating
Revenue
Net Operating
Income
2009
2008
Quarter Ended
Aug 31
13.3
4.1
0.3
1.1
0
10
20
Net Operating
Revenue
Net Operating
Income
2009
2008

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October 14, 2009
slide 18
Regional Performance –
continuing operations
Acergy South America
Anticipated lower activity levels partly offset by good revenue contribution from
Frade
Project, which completed offshore operations
Three ships on long-term service arrangements achieved full utilisation
Awarded four-year $260 million contract for the Polar Queen by Petrobras
Quarter Ended
Aug 31
6.5
39.3
77.3
(3.5)
-10
20
50
80
110
Net Operating
Revenue
Net Operating
Income / (Loss)
2009
2008
Nine Months Ended
Aug 31
225.3
229.2
24.3
15.2
0
100
200
300
Net Operating
Revenue
Net Operating
Income
2009
2008

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October 14, 2009
slide 19
Regional Performance –
discontinued operations
Discontinued Operations
Positive contribution from the Mexilhao Trunkline Project
Nine Months Ended
Aug 31
85.3
177.1
10.9
(26.0)
-50
0
50
100
150
200
Net Operating
Revenue
Net Operating
Income / (Loss)
2009
2008
Quarter Ended
Aug 31
36.3
114.1
4.5
18.2
-20
20
60
100
140
Net Operating
Revenue
Net Operating
Income
2009
2008

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October 14, 2009
slide 20
Adjusted EBITDA:
The
Group
calculates
Adjusted
EBITDA
from
continuing
operations
(adjusted
earnings
before
interest,
income
taxation, depreciation and amortisation) as net income from continuing operations plus finance costs, other gains and losses, taxation,
depreciation
and
amortisation
and
adjusted
to
exclude
investment
income
and
impairment
of
property,
plant
and
equipment.
Adjusted
EBITDA margin from continuing operations is defined as Adjusted EBITDA divided by revenue from continuing operations.  Management
believes that Adjusted EBITDA and Adjusted EBITDA margin from continuing operations are important indicators of our operational
strength and the performance of our business. Adjusted EBITDA and Adjusted EBITDA margin from continuing operations have not been
prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the IASB nor as adopted for use in the
European Union.  These non-IFRS measures provide management with a meaningful comparison amongst our various regions, as they
eliminate the effects of financing and depreciation.  Adjusted EBITDA margin from continuing operations may also be a useful ratio to
compare
our
performance
to
our
competitors
and
is
widely
used
by
shareholders
and
analysts
following
the
Group’s
performance.
However, Adjusted EBITDA and Adjusted EBITDA margin from continuing operations as presented by the Group may not be comparable
to similarly titled measures reported by other companies.  Such supplementary adjustments to EBITDA may not be in accordance with
current
practices
or
the
rules
and
regulations
adopted
by
the
US
Securities
and
Exchange
Commission
(the
“SEC”)
that
apply
to
reports
filed under the Securities Exchange Act of 1934.  Accordingly, the SEC may require that Adjusted EBITDA and Adjusted EBITDA margin
from continuing operations be presented differently in filings made with the SEC than as presented in this release, or not be presented
at all. Adjusted EBITDA and Adjusted EBITDA margin from continuing operations are not measures determined in accordance with IFRS
and should not be considered as an alternative to, or more meaningful than, net income (as determined in accordance with IFRS), as a
measure
of
the
Group’s
operating
results
or
cash
flows
from
operations
(as
determined
in
accordance
with
IFRS)
or
as
a
measure
of
the Group’s liquidity.  The reconciliation of the Group’s net income from continuing operations to Adjusted EBITDA from continuing
operations is included in this release.  This release also includes a supplemental calculation of Adjusted EBITDA from continuing
operations calculated as net operating income from continuing operations, plus depreciation and amortisation and impairment charges
on
property,
plant
and
equipment.
Management
believes
that
this
supplemental
presentation
of
Adjusted
EBITDA
from
continuing
operations is also useful as it is more in line with the presentation of similarly titled measures by companies within Acergy’s peer group
and therefore believes it to be a helpful calculation for those evaluating companies within Acergy’s industry.  Adjusted EBITDA for
discontinued operations is calculated as per methodology outlined above.  Adjusted EBITDA for total operations is the total of continuing
operations and discontinued operations.
Adjusted EBITDA
(a)

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October 14, 2009
slide 21
Reconciliation
of
Net
Operating
Income
to
Adjusted
EBITDA
Three-Months Ended
August 31, 2009
Three-Months Ended
August 31, 2008
In $ millions (except percentages)
Continuing
Discontinued
Total
operations
Continuing
Discontinued
Total
operations
Net operating income
76.9
4.5
81.4
134.5
18.2
152.7
Depreciation and amortisation
33.1
-
33.1
27.8
2.0
29.8
Impairments
-
-
-
-
-
-
Adjusted EBITDA
110.0
4.5
114.5
162.3
20.2
182.5
Revenue 
558.3
36.3
594.6
639.2
114.1
753.3
Adjusted EBITDA %
19.7%
12.4%
19.3%
25.4%
17.7%
24.2%
Reconciliation
of
Net
Income
to
Adjusted
EBITDA
Three-Months Ended
August 31, 2009
Three-Months Ended
August 31, 2008
In $ millions (except percentages)
Continuing
Discontinued
Total
operations
Continuing
Discontinued
Total
operations
Net income
64.7
2.0
66.7
101.2
11.7
112.9
Depreciation and amortisation
33.1
-
33.1
27.8
2.0
29.8
Impairments
-
-
-
-
-
-
Investment income
(1.4)
-
(1.4)
(5.0)
-
(5.0)
Other gains and losses
(25.1)
(0.2)
(25.3)
(14.4)
0.6
(13.8)
Finance costs
7.9
-
7.9
9.9
-
9.9
Taxation
30.8
2.7
33.5
42.8
5.9
48.7
Adjusted EBITDA
110.0
4.5
114.5
162.3
20.2
182.5
Revenue 
558.3
36.3
594.6
639.2
114.1
753.3
Adjusted EBITDA %
19.7%
12.4%
19.3%
25.4%
17.7%
24.2%