Vantage Drilling International Ltd.

Climate Impact & Sustainability Data (2023)

Reduced Lost Time Incident Rate to 0.05 and Total Recordable Incident Rate to 0.23 in 2023.

Shore-based direct employee population represents 28 nationalities, with approximately 32% women; Offshore direct workforce represents 34 nationalities, with more than 58% from Asia, Africa, Latin America, and the Middle East; Management team has representation from 16 nationalities; Vantage Competency Assurance Program with rig simulators on each rig; Ethics and bribery training for key personnel annually.

Re-domiciliation from Cayman Islands to Bermuda; Statutory Merger with VDI Bermuda Ltd.; Enhanced controls implemented to remediate material weakness in internal control over financial reporting related to unauthorized cash disbursements.

Extended downtime of the Tungsten Explorer (over 60 days in 2023 and 16 days in 2024 due to equipment failures); Cybersecurity intrusions in 2022 resulting in unauthorized cash transfers; Concentration of revenue with a small number of customers; Short-term drilling contracts; Potential for cost increases and variances in long-term contracts; Limits on ability to mobilize drilling units between geographic markets; High rates of global inflation and potential recession; High level of indebtedness; Inadequate insurance coverage for catastrophic events; Lack of profitable operations; Public concern and regulatory initiatives regarding climate change; International operations creating political, economic, and legal uncertainties; Litigation and disputes; Violations of anti-bribery laws; Changes in regulation of offshore oil and gas exploration and development; Stringent environmental regulations; Economic Substance Act requirements; Limited rights to relief compared to U.S. law; Less liquid common stock; Foreign currency fluctuations; Credit risks of key customers; Potential for unrealized contract drilling revenue; Potential for strategic transactions affecting financial condition; Debt repurchase requirements upon change of control; Changes in tax laws and regulations; Material and adverse developments impacting the financial services industry; Unique U.S. tax issues for U.S. Holders; Sufficiency of internal controls.

Company-wide cost savings initiatives; Nationalization and regionalization of senior offshore positions; Active supply chain management; Implementation of enhanced controls to remediate material weakness in internal control over financial reporting; Monitoring and managing credit risks; Attempting to match currency of operating costs with currency of contract revenue; Use of foreign exchange forward contracts or spot purchases to manage foreign currency exposure; Continuous management of cash flow and cash forecasts; Adequate cash reserves; Going concern assumption in financial statements; Active management of business to mitigate and address the impact of any related events that arise in the future; Monitoring for changes in climate change and ESG-related regulations and implementing measures to comply; Procedures and controls in place to monitor internal and external compliance with anti-corruption laws; Maintaining insurance coverage for potential litigation matters and disputes; Periodic required training to employees on cybersecurity; Annual risk assessment to identify cybersecurity threats; Engagement of third-party experts to help identify, assess and address risks from cybersecurity threats; Risk management process encompassing cybersecurity risks associated with the use of third-party service providers; Regular updates on cybersecurity to the Board of Directors and Audit Committee; Annual report on cybersecurity matters and related risk exposures.

Growing focus on climate change and its impact on investments in fossil fuels; Increased scrutiny from investors, lawmakers, and stakeholders related to sustainability practices; Potential for litigation or investigations related to greenhouse gas emissions.

Frameworks Used: U.S. GAAP

Third-party Assurance: BDO USA, LLP