Slide 1: Fourth Quarter and Preliminary Annual Results 2016
FOURTH QUARTER AND PRELIMINARY ANNUAL RESULTS 2016 Webside endring Kristian Røkke and Leif Borge Oslo | February 16, 2017 Q2 & 1H Results 2016 Kristian Røkke and Leif H. Borge © 2016 Akastor Oslo | July 14, 2016 Fourth Quarter Results 2016 16 February 2017 Slide 1
Slide 2: Agenda
Agenda HIGHLIGHTS Kristian Røkke CEO FINANCIALS Leif Borge CFO Q&A Kristian Røkke and Leif Borge © 2016 Akastor Fourth Quarter Results 2016 16 February 2017 Slide 2
Slide 3: Highlights
Highlights ü Transactions releasing approx. NOK 2.6 billion in cash EBITDA NOK 166 million − Creation of Mitsui/AKOFS joint venture; cash release of USD 66 million − Sale of Frontica Business Solutions to Cognizant for NOK 1 025 million − Sale of Fjords Processing to National Oilwell Varco (NOV) fo
Slide 4: Portfolio Highlights
Portfolio Highlights ü EBITDA margin before restructuring charges of 11%. Positive results from completed projects. ü DLS activity stable in Q4, but global floater utilization rate still declining. ü Still strong focus on adjusting cost base to new activity level, decision to close one manufactur
Slide 5: Condensed Consolidated Income Statement
Condensed Consolidated Income Statement Fourth Quarter Full Year NOK million 2016 2015 2016 2015 Operating revenues and other income 1 370 2 544 5 310 9 983 Operating expenses (1 203) (2 050) (5 241) (9 416) Operating profit before depreciation, amortization and impairment (EBITDA) 166 495 69 567 De
Slide 6: Analysis of underlying performance
Analysis of underlying performance NOK million Disqualifying Restructuring Q4 Q4 reported Impairments Santos gain Sum one-offs hedges provisions normalized Total operating revenue 1 202 172 172 1 030 EBITDA 166 1 172 (30) 143 23 Depreciation & amortization (182) (182) Impairment (407) (407) (407) Fi
Slide 7: Summary of transactions
Summary of transactions Sold MPO to JV with Mitsui Sold Business Sold Fjords Joined Frontica AFGlobal Solutions to Processing to Advantage into Cognizant NOV NES (Q1 17) Target Buyer Enterprise value USD 10–75m - NOK 1 025m NOK 1 200m - Upfront cash release USD 10m USD 66m NOK 900m NOK 1 150m - Earn
Slide 8: The Akastor Portfolio
The Akastor Portfolio NET CAPITAL EMPLOYED OF NOK 8.1 BILLION Other Holdings NOK million 114 KOP Surface Products 396 NCOA 1072 2501 NIBD MHWirth Intangible 2331 3 200 assets Equity1) AKOFS 4 369 Fixed assets 5198 5612 4052 NET CAPITAL EMPLOYED REDUCED WITH NOK 2.2 billion in Q4. Other (488) Net Cap
Slide 9: Capital Structure
Capital Structure ü Net Interest bearing debt of NOK 2.5 bn as of Q4: FUNDING ― Gross Debt of NOK 3 054 million, of which financial lease SIZE MATURITY MARGIN NOK 1 622 million and bank debt NOK 1,432 million REVOLVING USD 313 July 1.65%–4.5% ― Cash of NOK 487 million million 2019 ― Interest bearin
Slide 10: MHWirth
MHWirth ü Revenues down 48 % in Q4 2016 compared BUSINESS SPLIT YTD BASED ON REVENUE with 2015 Projects; DLS/service; Single equipment/ 28 % 52 % ü EBITDA of NOK 59 million in the quarter other; 20 % including NOK 30 million restructuring costs INSTALLED BASE (84 UNITS) JU by type ü Order intake
Slide 11: AKOFS Offshore
AKOFS Offshore 344 ü Skandi Santos with high utilization in the quarter ü Agreement with Mitsui to create 50/50 JV on the Santos vessel 198 190 196 ü EBITDA of NOK 196 million in Q4 of which NOK 172 million from 159 142 Santos transaction 45 38 49 ü Contract with Petrobras on Aker Wayfarer exten
Slide 12: KOP Surface Products Other Holdings
KOP Surface Products Other Holdings ü Revenues of NOK 81 million in the quarter ü Step Oiltools and First Geo: EBITDA of NOK -13 million ü EBITDA of NOK -27 million ü Effect from hedges not qualifying for hedge accounting ü Order intake of NOK 87 million in Q4 of NOK 1 million Revenue and EBITD
Slide 13: Additional information
Additional information © 2016 Akastor Fourth Quarter Results 2016 16 February 2017 Slide 13
Slide 14: Condensed Consolidated Income Statement
Condensed Consolidated Income Statement Fourth Quarter Full Year NOK million 2016 2015 2016 2015 Operating revenues and other income 1 370 2 544 5 310 9 983 Operating expenses (1 203) (2 050) (5 241) (9 416) Operating profit before depreciation, amortization and impairment (EBITDA) 166 495 69 567 De
Slide 15: Condensed Consolidated Statement of Financial Position
Condensed Consolidated Statement of Financial Position NOK million 31.12.2016 31.12.2015 Deferred tax asset 600 468 Intangible assets 1 731 2 785 Property, plant and equipment 5 198 6 480 Other non-current assets 104 478 Equity accounted investees and other Investments 213 437 Non-current interest-b
Slide 16: Key Figures
Key Figures AKASTOR GROUP (continuing operations) Amounts in NOK million Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 2015 2016 Operating revenue and other income 2 544 1 353 1 392 1 196 1 370 9 983 5 310 EBITDA 495 (48) (140) 91 166 567 69 EBIT 160 (264) (355) (108) (424) (1 518) (1 151) CAPEX and R&D capitalizat
Slide 17: Split per Company
Split per Company MHWIRTH (continuing operations) Amounts in NOK million Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 2015 2016 Operating revenue and other income 1 533 907 1 010 831 800 6 527 3 548 EBITDA 50 (63) (16) 91 59 18 71 EBIT (66) (163) (119) 23 (293) (349) -‐552 CAPEX and R&D capitalization 50 11 14 3
Slide 18: Split per Company
Split per Company AKOFS OFFSHORE Amounts in NOK million Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 2015 2016 Operating revenue and other income 198 159 142 190 344 781 835 EBITDA 45 38 32 49 196 104 316 EBIT (41) (41) (45) (45) (3) (1 288) (134) CAPEX and R&D capitalization 17 48 25 28 7 1 057 108 NCOA 69 103 25
Slide 19: Split per Company
Split per Company OTHER HOLDINGS (restated) Amounts in NOK million Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 2015 2016 Operating revenue and other income 706 194 189 137 155 1 769 674 EBITDA 348 (37) (151) (45) (63) 203 (296) EBIT 239 (59) (172) (68) (86) (57) (385) CAPEX and R&D capitalization 29 3 2 0 1 99 5
Slide 20: © 2016 Akastor Fourth Quarter Results 2016 16 February 2017
© 2016 Akastor Fourth Quarter Results 2016 16 February 2017 Slide 20
Slide 21: Copyright and disclaimer
Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Akastor and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor u