Human Resources

Richard Demblon - Group HR Director

“Ownership and accountability by all employees to actively deliver results drive our collective success and future as a company. In light of current challenges our performance is a key factor for sustainable success. Key drivers to improve our ways of working were set in place in 2014 allowing us to begin transitioning to an organisation that is more entrepreneurial, results oriented and client focused for future success. Recognition, development and advancement of high performing, high potential employees within the Group will be an important enabler in the forthcoming period of change. Individual work needs to be aligned with the overall strategy to ensure we work as one, perform and shape our future."

Human Resources’ mission

SBM Offshore is committed to empower and enable the Company’s people to deliver results to meet stakeholder expectation. The Company strives to excel with passion and integrity - fueled by its ambition and team energy. The HR department’s objective is to instill pride in every employee for their work and to maintain a superior and consistent way of working to world-class best practices. This is how SBM Offshore will achieve the desired results and sustainable growth.

Performance at a glance

This year was one of change as the organisation begins to transform and the commercial mindset is integrated. By introducing an entrepreneurial approach to conducting business, SBM Offshore has embarked on a more dynamic way of working, which encourages employees to take initiative and rewards results. The three-year implementation of this vision began in 2014 and is in response to the dynamics and difficulties that the industry is experiencing. Employees now consider the impact of their performance on the Company’s bottom line and they ask how they can contribute by being proactive.

By aligning HR objectives with its objectives, the Company continues to deliver in a challenging time. Several projects were completed this year including the start-up operations of two FPSOs in SBM Offshore’s key markets Brazil and Angola. The Company’s know-how resulted in SBM Offshore maintaining its reputation as the leading technology pioneer and this recognition was cemented by a prestigious industry award. The Company achieved an LTIFR of 0.05 and plans are being implemented to ensure headcount versus capacity is brought to a target of < 5% over. The Company

continued to develop its talent and pave the way for the future leaders in the company. As an equal opportunity employer SBM Offshore continued its commitment to employing, retaining and developing the best talent in the industry as well as its commitment to its nationalisation programmes in the countries where it operates.

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Key achievements Success objectives

Implementation of a programme to enhance an organisation culture that embraces ownership, accountability and a desire to deliver

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results

Linking performance and reward

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Training and Leadership development programmes undertaken – including the launch of the Project Management programmes, which

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are aimed at Project Managers and Discipline Lead Engineers

Continuation of commitment to industry best practice – with OPITO as a benchmark and thread throughout the training process and

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competence assurance system

Team energy objectives

Unplanned staff turnover at 8%

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Progressing initiatives to reduce headcount by 1,200 positions worldwide, over the period 2014 and 2015

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Improvements to shared best practices and strengthening of identical ways of working across the globe to ensure synergies and

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consistency of quality performance for customers

Identification and management of poor performance using KPIs and frequent manager/employee dialogue

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Ambition objectives

Expansion and development of leadership and management development programmes to build a robust succession pipeline

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Improved management of contractorsPerformance and Shape the Future objectives

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By cementing a strong, transparent compliant culture with controls and continual training undertaken to ensure that employees comply

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with competition law compliance and anti-corruption and regulatory compliance laws and regulations. The call for the integration of these values has been embraced with open arms at every level and are deeply engrained in the company

Selection, training and recruitment programmes put in place to build next generation of SBM Offshore leaders at all levels

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Training courses undertaken focused on technical and HSSE topics

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Implementation of change programme - part of company-wide Odyssey 24 business improvement and transformation, delivering

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competency, skills matrix and working on refining the company processes for recruitment, development, appraisal of the Company’s employees

Employee performance

SBM Offshore recognises that employees who are engaged in their work stay focused on the company’s goals and drive its future. Their well-being is an important issue for management and initiatives are promoted within the framework of Duty of Care as an employer.

The energy and pride of the Company’s team-spirit is felt by SBM Offshore’s clients in the results that it delivers. The Company’s employees are empowered – encouraged by an environment of ambition as SBM Offshore opens the door to creativity and innovation as well as focusing on the more traditional bottom-lines of responsibility and accountability.

SBM Offshore’s new way of working - implemented over a year ago – allows employees to achieve their objectives.

Employees are rewarded for their individual performance and behaviour and their team actions. SBM Offshore’s

performance appraisal process increases the visibility of each employee’s own performance and rewards it in the context of the company’s success.

Year-end appraisals provided the essential check-up to ensure that employees are engaged in the Work as one ethic of the Company as well as achieving the above mentioned Company objectives for 2014 plan.

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Work as one

By maximising the synergies and expertise of the five regional centres around the world

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By creating teams for a project that draw on the pool of specialised high calibre talent

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By promoting greater value interaction between managers and their teams

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By integrating new employees into the teams where their valuable experience and skills will be exploited for maximum results

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2014 in figures

Total headcount (including construction yards) has increased by 2.8% from 9,936 to 10,215. This is a net slow down compared to the

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33% increase in 2013 year on year

Headcount in Execution Centres decreased by 16.3% from 2,834 to 2,372 – this reflects the current low activity for projects in

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engineering phase

Headcount in SBM Operations has increased by 4.2% from 2,289 to 2,385

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Headcount in Group Project Execution has increased by 54.6% from 791 to 1,223, due to the most important projects being in the

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construction phase. The increase is explained by the hire of local contractors, with a two-fold increase at the yard in China, increasing from 209 to 440

Permanent staff has experienced a slight decrease in proportion to total headcount from 84% last year to 81%

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At the end of 2014 Group companies employed 10,215 worldwide compared to 9,936 in 2013. This overall increase of 2.8% is explained mainly by contractors and construction staff for projects at joint venture yards. However, permanent staff experienced a decrease with a total of 8,234 employees in 2014 compared to a total of 8,358 employed in 2013 (these figures exclude contractors). A bigger decrease will be reflected in 2015 in line with the workforce reduction plans as announced in the Press Release dated 11 December 2014. For detailed statistics on Human Resources, please see chapter 7.2 Performance Indicators.

Testimonials from employees demonstrate the business benefits of the training running throughout the year, which include the Leadership programmes and the newly implemented Project Management programmes, which are aimed at Project Managers and Discipline Lead Engineers.

“I implemented the Earned Value Management techniques to optimise Engineering costs on my project.”

"By applying the project planning techniques to the two FEED projects in which I was involved this year I was able to successfully execute the project within budget and deliver on time.”

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