Aker Solutions ASA · OSL:AKSO
Aker Solutions ASA — Swedbank First Securities' 2014 Nordic Energy Summit
17 slides from Aker Solutions ASA's conference presentation, March 2014
Slide 1: Aker Solutions - Preferred partner
Preferred partner Aker Solutions Swedbank First Securities’ 2014 Nordic Energy Summit Leif Borge | CFO © 2013 Aker Solutions Slide 1 Preferred partner
Slide 2: This is Aker Solutions
This is Aker Solutions ■ Aker Solutions is a global provider of products, systems and services to the oil and gas industry ■ Built on more than 170 years of industrial tradition ■ Employs approximately 27,300 people in about 30 countries Employees: 22 100 Contract staff: 5 200 Revenues: 42.9 bn EBIT
Slide 3: Business areas
Business areas Engineering Drilling technologies Maintenance, modifications and operations Oilfield services Process systems Subsea Umbilicals and marine assets © 2014 Aker Solutions Slide 3 Preferred partner
Slide 4: Streamlining the business
Streamlining the business Sale of WIS Deepwater and to EQT subsea oil-services company Sale of P&C Sale of MLS to Jacobs to Cargotec 2010 2013 Future 2002 2011 2014 Demerger of 7 business Marine Contractors areas Demerger of Merger of EPC business Aker Maritime and Kværner © 2013 Aker Solutions Slid
Slide 5: …ending up with a more focused and capital light company
…ending up with a more focused and capital light company Divestment plan Net capital employed Net interest bearing items By divestment object NOK billion NOK billion 21.9 8.2 Nine business area Aker Solutions MLS MLS Mooring and Loading Systems has been sold to Cargotec for NOK 1.4 billion with clos
Slide 6: Two different business models
Two different business models ENG and MMO SUB, DRT, UMB and PRS % of six BA total % of six BA total Technology business with large elements Product based technology manufacturing business Description of day rate/ reimbursable contract form and low capital expenditures with captive aftersales service
Slide 7: Our focus: improve profitability and return on capital
Our focus: improve profitability and return on capital We will continue investing in growth with increased capital discipline and greater scrutiny on our investments’ returns… …So that our main focus going forward is to improve profitability and return on capital © 2013 Aker Solutions Slide 7 Prefer
Slide 8: 2013 Key figures
2013 | Key figures1 Revenue and EBITDA Order intake & backlog Dividend per share NOK billion NOK billion NOK million Revenue EBITDA2 Intake Backlog 50 5 70 5 45 4,5 60 40 4 4 42.9 35 3,5 50 4.10 57.9 30 3 3.5 40 58.1 3 25 2,5 30 20 2 2 15 1,5 20 10 1 1 10 5 0,5 0 0 0 0 2011 2012 2013 2011 2012 2013
Slide 9: 4Q 2013 Key figures
4Q 2013 | Key figures1 Revenue and EBITDA Order intake and backlog NOK billion NOK billion Revenue EBITDA2 Intake Backlog 14 1,4 30 80 12 1,2 25 60 10 1,0 20 11.4 58.1 8 0,8 1.1 15 40 6 0,6 10 4 0,4 12.9 20 5 2 0,2 0 0,0 0 0 3Q 4Q 1Q 2Q 3Q 4Q 3Q 4Q 1Q 2Q 3Q 4Q 3Q 4Q 1Q 2Q 3Q 4Q 3Q 4Q 1Q 2Q 3Q 4Q 201
Slide 10: 2013 & 2012 by business area
2013 & 2012 by business area Revenue Profitability NOK million EBITDA margin (percent) 13,534 10,8 SUB SUB 12,174 8,3 11,055 6,8 MMO 11,061 MMO 8,8 9,880 10,1 DRT 8,696 DRT 12,1 3,868 6,6 ENG 4,508 ENG 11,1 2,036 0,1 UMB 1,998 UMB 4,7 2,007 3,8 PRS 1 520 PRS 1,9 2013 OMA 906 2012 0,7 1,028 OMA 15,6
Slide 11: Strong financial position
Strong financial position ■ Net debt of NOK 8.2 billion ■ Liquidity buffer of NOK 6.7 billion ■ Received NOK 5.4 billion in cash in January 2014 from divestments of WIS and MLS Net current operating assets (NCOA)1 LTM EBITDA, NIBD and NIBD/LTM EBITDA NOK million NOK million Note: NIBD and LTM EBITDA
Slide 12: But, we have to improve our return on capital employed
But, we have to improve our return on capital employed Focusing the portfolio Our improvement agenda Nine BA and six BA ROACE % Increase our capital discipline 26.0 % ■ Increase the hurdle rate for our investments to 22.9 % the level of our cost of equity ■ Assessing the return of investment against
Slide 13: Recent industry trends
Recent industry trends The oil price is steady at about 100 USD Oil companies face challenges in growing their capex, dividends Brent Oil MSCI World Capex Dividends Operating cash flow 150 1600 USD bn 140 350 324 325 1500 317 130 300 261 60 120 1400 58 110 250 52 100 1300 200 53 90 1200 150 80 247 2
Slide 14: Market outlook
Market outlook ■ High tender activity continues in most markets ■ Strong order backlog supports robust activity levels ■ MMO slowdown in Norway as oil companies reduce spending ■ Drilling Technologies growth helped by more diversified portfolio © 2014 Aker Solutions Slide 14 Preferred partner
Slide 15: Strong order backlog
Strong order backlog1 Order backlog by execution date Order backlog adjusted for Cat B2 NOK billion NOK billion 80 Cat B 33 Adjusted 70 25 60 2014 Later 50 Order backlog of NOK 58.1 bn 40 NOK million 70 ENG DRT SUB MMO Other 1,2 30 60 50 20 40 30 20 10 10 0 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13
Slide 16: In summary
In summary ■ Record-high order intake in 2013 ■ Profit margins widened in year on stronger execution, revenue ■ Streamlined business through divestments ■ Dividend of NOK 4.10 per share ■ Key priority to deliver successfully on high order backlog © 2014 Aker Solutions Slide 16 Preferred partner
Slide 17: 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
Aker Solutions — Swedbank First Securities' 2014 Nordic Energy Summit on 6ix