Slide 1: 4Q 2022
Photo: Aker BP 4Q 2022 Fornebu, February 8, 2023 Kjetel Digre, CEO Idar Eikrem, CFO 2023 © Aker Solutions
Slide 2: 4Q 2022 | Strong Financial Performance and Outlook
4Q 2022 | Strong Financial Performance and Outlook Revenue Excluding special items EBITDA Excluding special items Financials 12.5 NOK BILLION 999 NOK MILLION ■ All-time high order intake and secured backlog moving forward 14 1 000 ■ Solid increase in key financials from same period last year 12 800
Slide 3: 2022 | Improved Financials, Record High Intake and Backlog
2022 | Improved Financials, Record High Intake and Backlog Revenue Excluding special items EBITDA Excluding special items Order Intake Order Backlog 41 NOK BILLION 3.0 NOK BILLION 88 NOK BILLION 97 NOK BILLION 50 5 100 100 97 88 41 40 38 4 80 80 29 3.0 30 29 3 2.8 60 60 49 40 20 2 1.9 40 40 38 34 33
Slide 4: 2022 | Operational Highlights
2022 | Operational Highlights Johan Castberg: FPSO Jansz: Subsea Gas Compression Hywind Tampen: Floating Offshore Wind Njord: Platform Upgrade Troll West: Electrification Sunrise: HVDC Converter Platform Tommeliten/ Eldfisk: Subsea Products Valhall: Decommissioning & Recycling Northern Lights: Carbo
Slide 5: 4Q 2022 | All-Time High Order Intake
4Q 2022 | All-Time High Order Intake Renewables & Field Development NOK 39 bn Yggdrasil, Aker BP (NOK ~22 billion) Hugin A PdQ production platform and its steel jacket substructure • Will be the largest topside ever assembled at Aker Solutions’ Stord yard Hugin B normally unmanned wellhead platf
Slide 6: 4Q 2022 | All-Time High Order Intake
4Q 2022 | All-Time High Order Intake Electrification, Maintenance & Modifications NOK 6 bn Aker BP Modification work (NOK ~3.6 billion) Valhall PWP-Fenris, Skarv Satellites, etc. • Modification of the Valhall field center, to enable the tie-in of the Valhall PWP- and Fenris platforms • Modificatio
Slide 7: 4Q 2022 | All-Time High Order Intake
4Q 2022 | All-Time High Order Intake Subsea NOK 14 bn Yggdrasil, Aker BP (NOK ~7 billion) Subsea production system incl. 40 standardized vertical subsea trees, standardized Vectus™ 6.0 control systems, as well as associated templates, manifolds, wellheads and tie-in and connection systems Eight
Slide 8: Alliance model on majority of order intake
Alliance model on majority of order intake – very supportive for solid project execution and upside potential through incentives Shared Upside ▪ Incentive mechanisms for delivery on time & quality Alliances Low Risk Aker Solutions contract value in 4Q 2022: ▪ Early engagement in project NOK ~50 bill
Slide 9: Tender Value at NOK 78 Billion
Tender Value at NOK 78 Billion Tender Value Development 33 NOK billion NOK 115 BILLION 120 105 90 81 90 76 78 80 80 78 60 30 0 4Q’20 1Q’21 2Q’21 3Q’21 4Q’21 1Q’22 2Q’22 3Q’22 4Q’22 10 NOK BILLION 2 NOK BILLION 12 NOK BILLION 21 NOK BILLION About 50% related to Aker Solutions segments excl. Subsea1 1
Slide 10: Outlook
Outlook ■ All-time high order intake and backlog ■ ~80% of 2022 order intake and ~75% of backlog related to Aker Solutions segments excluding Subsea ■ Record high secured backlog and visibility towards 2027 ■ Continued focus on predictable project execution ■ NOK 78 billion of ongoing tenders ■ Rema
Slide 11: Financial Performance
Financial Performance Idar Eikrem, CFO 2023 © Aker Solutions Photo: Jan Arne Wold and Elisabeth Sahl, Equinor
Slide 12: 4Q 2022 | Strong Financial Performance
4Q 2022 | Strong Financial Performance NOK million 4Q 2022 4Q 2021 2022 2021 Revenue 12 456 8 668 41 417 29 473 Financials continue on-track with targets, Revenue ex. special items1 12 455 8 666 41 378 29 464 with a strong financial position EBITDA 947 583 2 934 1 842 EBITDA margin 7.6% 6.7% 7.1% 6.
Slide 13: Solid Finances – Net Cash Position of NOK 5.1 Billion
Solid Finances – Net Cash Position of NOK 5.1 Billion 2 Net cash position2 of NOK 5.1 billion Net Cash Position2 NOK billion Cash flow from operations for 2022 at NOK 4.5 billion 5.1 ■ Driven by improved operating margins and working capital development Net cash position Movement in net cash positio
Slide 14: Renewables and Field Development
Renewables and Field Development Revenue EBITDA and Margin1 Financials and Highlights 4.6 NOK BILLION 185 NOK MILLION ■ Revenue of NOK 4.6 billion in quarter and NOK 14.9 billion for 5 250 14% the full year 12% 4 200 ■ Delivered revenue growth of 41% in 2022 from 2021 10% 3 150 8% ■ EBITDA1 of NOK 1
Slide 15: Electrification, Maintenance and Modifications (EMM)
Electrification, Maintenance and Modifications (EMM) Revenue EBITDA and Margin1 Financials and Highlights 3.6 NOK BILLION 188 NOK MILLION ■ Revenue of NOK 3.6 billion in quarter and NOK 12.2 billion for 4 250 16% the full year 14% 3 200 12% ■ Delivered revenue growth of 32% in 2022 from 2021 150 10%
Slide 16: Subsea
Subsea Revenue EBITDA and Margin1 Financials and Highlights 4.2 NOK BILLION 750 NOK MILLION ■ Revenue of NOK 4.2 billion in the quarter and NOK 14.1 billion 5 800 17% 18% 20% for the full year 15% 16% 4 600 14% 15% ■ Delivered revenue growth of 45% in 2022 from 2021 3 ■ EBITDA1 of NOK 750 million (1
Slide 17: Record High Order Backlog and Visibility
Record High Order Backlog and Visibility Order Backlog by Execution Year NOK billion Renewables and Energy Transition1 NOK billion, % 40 39.1 Share of Order Backlog 12.8 30.8 4Q 2020 4Q 2021 4Q 2022 30 7.8 19.5 20 16.5 2.5 16.8 11% 34% 16% 12.4 8.0 10 1.4 9.5 5.1 6.0 4.6 0 1.4 2023 2024 2025 2026 --
Slide 18: Well Positioned for Shareholder Value Creation
Well Positioned for Shareholder Value Creation Aker Solutions post-close of JV, ambitions ▪ Revenue growth around +10% on average annually from 2020 to 2025 ▪ NOK 72 billion of backlog at 4Q-2022, excl. Subsea, majority of which are lower-risk NCS projects with upside potential through alliance mode
Slide 19: Summary Outlook
Summary Outlook ▪ Delivered 41% revenue growth in 2022 ▪ 2023 overall revenue expected to be ▪ Increased EBITDA1 by 62% to NOK up by around 15% from 2022 (incl. Subsea ‘as-is’) 3.0 billion in 2022 ▪ Increased EBITDA margin1 to 7.3% in 2022 ▪ 2023 overall underlying EBITDA- from 6.4% in 2021 margin e
Slide 20: Q&A
Be AkerSolutions We solve global energy challenges Ca f for future generations 7
Slide 21: Additional Information
Additional Information 2023 © Aker Solutions
Slide 22: Guidance | Additional Items
Guidance | Additional Items As-is basis, until close of Subsea JV Aker Solutions post Subsea JV D&A1 About NOK 1.1 to 1.2 billion, per year About NOK 0.5 to 0.6 billion, per year ‘Other’ EBITDA2 Around minus NOK 125 million, per quarter Around minus NOK 80 to 100 million, per quarter P&L Tax rate3 I
Slide 23: Timing of selected large projects in the portfolio, by Segment
Timing of selected large projects in the portfolio, by Segment Renewables and Field Development Subsea Project Customer Award year Delivery year (est.) Project Customer Award year Delivery year (est.) Johan Castberg Equinor 2017 2024 Jansz, subsea gas compression Chevron 2021 2025 Hugin A Aker BP 20
Slide 24: Ordinary Dividend Policy of 30-50% of Annual Net Profit
Ordinary Dividend Policy of 30-50% of Annual Net Profit Priorities Maintain sufficient Balanced capital allocation strategy to protect Financial robustness and drive growth in shareholder value Prudent Management of the Balance Sheet ■ Financial robustness to handle business cycles ■ Maintain flexib
Slide 25: JV Transaction | Unlocking Significant Shareholder Value
JV Transaction | Unlocking Significant Shareholder Value Final ownership structure Receiving USD 700 million Retaining 20% ownership as consideration for 20% ownership and cash generation until close USD 306.5 million Cash 20% JV ownership A leading subsea company2 Will contribute to Aker Solutions’
Slide 26: Renewables and Energy Transition
Renewables and Energy Transition NOK billion, % Revenue 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 Total revenue (excl. special items) 6.8 28.5 6.5 7.0 7.3 8.7 29.5 8.3 10.6 10.0 12.5 41.4 Renewables and Energy Transition 0.5 1.6 0.6 1.0 1.1 1.6 4
Slide 27: Transition Journey Well Underway
Transition Journey Well Underway Selection of Work Related to Renewables and Energy Transition Type Project Main scope Customer Region Type Project Main scope Customer Region Offshore Hywind Tampen Floating foundations for wind Equinor NOR Subsea Gas Jansz-Io Subsea Gas Compression Chevron AUS Wind
Slide 28: Alternative Performance Measures
Alternative Performance Measures Basis for Preparation This presentation provides financial highlights for the quarter for Aker Solutions, a Norwegian limited company listed on the Oslo Stock Exchange. Aker Solutions ASA merged with Kværner ASA in November 2020. The consolidated financial statements
Slide 29: Alternative Performance Measures
Alternative Performance Measures Profit Measures Electrification, Renewables & Other/ Maintenance & Subsea Aker Solutions Aker Solutions Field Development eliminations EBITDA and EBIT terms are presented as they are used by Modifications financial analysts and investors. Special items are excluded N
Slide 30: Alternative Performance Measures
Alternative Performance Measures Financing Measures Net interest-bearing debt to EBITDA (leverage ratio) is a key financial measure that is used by management to assess the borrowing capacity of a company. The ratio shows how many Alternative financing and equity measures are presented as they are i
Slide 31: Alternative Performance Measures
Alternative Performance Measures Order Intake Measures Order intake, order backlog and book-to-bill ratios are presented as alternative performance measures, as they are indicators of the company’s revenues and operations in the future. Order intake includes new agreed customer contracts in the peri
Slide 32: Special Items
Special Items NOK million, (Gain) / Loss Special items (EBITDA) FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 Restructuring 516 2 3 19 0 25 1 0 (0) 1 3 Non-qualifying hedges (4) (7) (2) (1) 3 (7) (18) 32 (4) 2 12 Gain on dividend distribution of CCUS and AOW
Slide 33: Income Statement
Income Statement NOK million Income statement consolidated FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 Revenue 29 396 6 470 7 020 7 314 8 668 29 473 8 291 10 635 10 035 12 456 41 417 Operating expenses (27 857) (6 041) (6 632) (6 873) (8 085) (27 631) (7 6
Slide 34: Cash Flow
Cash Flow NOK million Cash flow FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 Net profit (1 520) 27 60 100 63 249 175 276 285 435 1 170 Change in cash flow from operating activities 2 421 455 200 476 1 418 2 549 1 409 (303) 484 1 758 3 348 Net cash flow from
Slide 35: Balance Sheet – Assets
Balance Sheet – Assets NOK million Assets 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Property, plant and equipment 3 567 3 400 3 397 3 262 3 231 3 269 3 424 3 533 3 596 Intangible assets including Goodwill 5 825 5 806 5 768 5 743 5 724 5 808 6 101 6 064 5 949 Right-of-us
Slide 36: Balance Sheet – Liabilities and Equity
Balance Sheet – Liabilities and Equity NOK million Liabilities and equity 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Total equity attributable to the parent 7 870 7 784 7 903 7 870 7 833 8 011 8 727 9 129 9 244 Non-controlling interests 38 38 37 35 28 39 64 41 -4 Total e
Slide 37: Split Per Segment
Split Per Segment NOK million Revenue FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 Renewables and Field Development 10 829 2 750 2 655 2 499 2 721 10 625 2 795 3 958 3 551 4 553 14 857 Electrification, Maintenance and Modifications 8 733 1 863 2 360 2 406 2
Slide 38: Split Per Segment
Split Per Segment NOK million NCOA 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 NCOA (118) (398) (666) (1 784) (2 791) (2 307) (2 347) (4 032) Order intake FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 Renewables and Field Development 11 4
Slide 39: Split Per Segment – Excluding Special Items
Split Per Segment – Excluding Special Items NOK million EBITDA (excl. special items) FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 Renewables and Field Development 549 248 95 89 108 540 102 76 124 185 488 Electrification, Maintenance and Modifications 161 76
Slide 40: Order Backlog by Market
Order Backlog by Market NOK billion, % Order Backlog by Market 4Q 2021 4Q 2022 Africa 2% 1% Asia Pacific 20 % 7% North America 12 % 5% Norway 61 % 78 % Europe 1% 7% South America 4% 2% Total 100 % 100 % Total backlog (NOK billion) 49.2 97.3 2023 © Aker Solutions Fourth-Quarter Results 2022 February
Slide 41: 2023 © Aker Solutions
2023 © Aker Solutions
Slide 42: Copyright and Disclaimer
Copyright and Disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Aker Solutions and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any for