SLB Limited · NYSE:SLB

SLB — Schlumberger — UBS Global Oil & Gas Conference 2016

20 slides from SLB's conference presentation, May 25, 2016

  1. Slide 1: The Transformation Continues

    The Transformation Continues Jean-François Poupeau EVP Corporate Development and Communication UBS Global Oil & Gas Conference Austin, May 25, 2016

  2. Slide 2: Safe Harbor

    Safe Harbor This presentation contains “forward-looking statements” within the meaning of the federal securities laws — that is, statements about the future, not about past events. Such statements often contain words such as “expect,” “may,” “believe,” “plan,” “estimate,” “intend,” “predict,” “antic

  3. Slide 3: Transformation – Industry Challenges

    Transformation – Industry Challenges Technology Extending technical performance with game-changing technology Reliability Learning from other industries and adopting new ways of working Efficiency Optimizing the support platform and leveraging scale Integration Aligning technical and commercial inte

  4. Slide 4: Transforming the E&P Industry

    Transforming the E&P Industry Intrinsic Performance Technology Systems Business Models Working Operational Capital Asset Reliability Utilization 25% 10x 100% Unit Support Workforce Costs Productivity 10% 20%  Intrinsic Performance – Internal efficiency and reliability of how we work  Technology Sy

  5. Slide 5: Intrinsic Performance – Challenging How We Do Things

    Intrinsic Performance – Challenging How We Do Things Schlumberger Transformation Goals  In-depth reflection on operational processes Working Operational Capital Asset  Best practices from other industries Reliability 25% Utilization 10x 100%  Upgrade the management system and IT Workforce Unit Su

  6. Slide 6: Technology – Innovation and System Integration

    Technology – Innovation and System Integration Drilling Group Production Group  Integrated Drilling Services  Production Management  Drilling & Measurements  Integrated Production Services  M-I SWACO  Well Services  Bits & Drilling Tools  Completions  Land Rigs  Artificial Lift  Lift Solu

  7. Slide 7: Business Models – Collaboration and Commercial Alignment

    Business Models – Collaboration and Commercial Alignment Production Management (SPM) Collaboration & Commercial Alignment Integrated Drilling Services (IDS) Integrated Production Services (IPS) Integrated Services Management (ISM) Standard Services 7

  8. Slide 8: Integrated Services Management Model – Sail and Drill

    Integrated Services Management Model – Sail and Drill ISM Project Management Schlumberger Products and Services 3rd Party Directional Drilling Mud Logging Cementing Drilling Fluids OH & CH Logging Fishing & Abandon Coring M & LWD Bits Tubular Handling APWD  5 wells drilled for Shell in 3 countries

  9. Slide 9: Intrinsic Performance – Delivering Results

    Intrinsic Performance – Delivering Results 12 1.4 HSE Reliability 1.2 10 1.0 0.8 8 0.6 Lost Time Injury Frequency 6 Nonproductive Time / Operating Time 0.4 0.2 4 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 12% Capital Efficiency 7 Free Cash Flow* 6 10% 5 4 8% Capex / Revenue 3 Cash Flow ($ bil

  10. Slide 10: Reliability Centered Maintenance

    Reliability Centered Maintenance MWD TelePacer* Logging units Blenders & Fracturing pumps  Tiered maintenance less invasive  Focus on Asset lifecycle integrity  Focus on Asset lifecycle integrity  Automated pre-job test  Calculator for Fluid End M&S  Engine data transmitted through GSM  Diagn

  11. Slide 11: Regional Support Centers

    Regional Support Centers 1,289 field notifications sent 01011010101 1,179 incidents 01011010101 010110101010 1011010101 avoided 010110101010 1011010101 010110101010 1011010101 $7.7 million in M&S savings 11

  12. Slide 12: Logistics Control Towers

    Logistics Control Towers Products LCT LCT Forecast Source Monitor Track Reconcile Trucking Carriers Location Shipment Inventory Transport & Mobile Shipment Tracking North America Land Transport & Mobilization ($/Ton) -56% Carrier Management  Real-time delivery tracking Q4-14 Q1-15 Q2-15 Q3-15 Q4-15

  13. Slide 13: Management System – Process Reliability in IDS

    Management System – Process Reliability in IDS APPROACH IMPACT Do the Right Thing  Competency assessments aligned to   NPT 70% (2011 to 2015) Schlumberger Competency Framework  Incentive plans to drive improvement;   Failures in IDS projects differentiate with customers   Operational risks 

  14. Slide 14: Remote Operations

    Remote Operations  74% of jobs as of Q1 2016  Average crew size decreased by 6% in 2015  20% more jobs covered with the same staff  Excellent service quality delivered Remote Operations Center - Russia  NPT reduction  50% reduction in drilling time  Geomechanics workflows via Remote Ops Cente

  15. Slide 15: Improving Capital Efficiency Through Asset Utilization

    Improving Capital Efficiency Through Asset Utilization CAPEX as a Percentage of Revenue % 15  Assets historically underutilized 10 5  Increasing utilization lowers capital investment as a percentage of revenue 0 Q1 Q1 Q1 Q1 Q1 Q1 11 12 13 14 15 16  Lower capex brings lower depreciation Depreciati

  16. Slide 16: Reducing Unit Support Cost

    Reducing Unit Support Cost Revenue and Workforce trend relative to 2004 % 500 Revenue Field & Operations (Variable) Workforce  Creation of shared services organization 400 Support (Fixed) Workforce streamlined internal processes 300  Support workforce decreased in size in years of growth post-Smit

  17. Slide 17: Managing Working Capital

    Managing Working Capital Working Capital as a Percentage of Revenue B$ % 18 20  Receivable challenges internationally 15 12  Centralized maintenance reduces inventory 10 6 5  Just-in-time inventory via Distribution Centers 0 0 2011 2012 2013 2014 2015 Working Capital as % Revenue* Receivables Inv

  18. Slide 18: Future State – Product and Service Delivery

    Future State – Product and Service Delivery Customer Centers Wellsite Multiskilled field crew Digitally Connected and Enabled Centers for Integrated Reliability and Efficiency Operations Hubs Remote Operations Operations Planning Center Real-Time Operations Mobility Analytics Security Automation 18

  19. Slide 19: Conclusions

    Conclusions  The case for industry transformation is stronger than ever  Focused on intrinsic performance since the start of this decade  Delivering material results with expectations for further upside  Pursuing collaborative business models and engaging with customers in transformation initiat

  20. Slide 20: The Transformation Continues

    The Transformation Continues Jean-François Poupeau EVP Corporate Development and Communication UBS Global Oil & Gas Conference Austin, May 25, 2016

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