Slide 1: Fourth-Quarter and Annual Results 2014
Preferred partner 4Q Fourth-Quarter and Annual Results 2014 Fornebu, February 13, 2015 Luis Araujo and Svein Stoknes © 2015 Aker Solutions Slide 1 February 13, 2015 Fourth-Quarter and Annual Results 2014 Preferred partner
Slide 2: Agenda | 4Q and Annual Results 2014
Agenda | 4Q and Annual Results 2014 Introduction Luis Araujo Chief Executive Officer Financials Svein Stoknes Chief Financial Officer Q&A session Luis Araujo Svein Stoknes Q&A © 2015 Aker Solutions Slide 2 February 13, 2015 Fourth-Quarter and Annual Results 2014 Preferred partner
Slide 3: Key Developments in 2014
Key Developments in 2014 ■ Strong topline growth as sales rose in all business areas ■ Major projects progressed as planned ■ Profit margins strengthened, helped by improvement programs ■ Healthy order backlog of NOK 48 billion ■ MMO capacity adjusted to counter slowdown in Norway ■ Strong focus on
Slide 4: Key Figures | 2014
Key Figures | 2014 Revenue and EBIT Order intake & backlog NOK billion NOK billion Revenue EBIT Intake Backlog 35 2.5 60 30 50 33 2 25 2 40 48.3 1.5 20 30 37.1 15 1 20 10 0.5 10 5 0 0 0 2011 2012 2013 2014 2011 2012 2013 2014 2011 2012 2013 2014 © 2015 Aker Solutions Slide 4 February 13, 2015 Fourth
Slide 5: Key Figures | 4Q 2014
Key Figures | 4Q 2014 Revenue and EBIT Order intake and backlog NOK billion NOK billion Revenue EBIT Intake Backlog 10 0.6 25 60 8 20 9.2 0.4 40 48.3 6 15 0.6 4 10 0.2 20 2 5 6.2 0 0.0 0 0 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q 2013 2014 2013 2014 2013 2014 2013 2014 © 2015 Aker
Slide 6: Focus on Operational Excellence and Cost Control
Focus on Operational Excellence and Cost Control ■ Intensified efforts to reduce costs in all areas ■ Deeper synergies pursued throughout less complex business ■ Reorganized functions to avoid duplication and better utilize expertise ■ Continued major push to enhance quality in operations ■ Focus on
Slide 7: Outlook
Outlook ■ Increased short-term market uncertainty amid concern over capital constraints, oil price drop ■ Steady tendering in main markets, though risk of project delays ■ North Sea activity seen sluggish next 1- 2 years even as projects like Johan Sverdrup support industry ■ Aker Solutions well pla
Slide 8: Agenda | 4Q and Annual Results 2014
Agenda | 4Q and Annual Results 2014 Introduction Luis Araujo Chief Executive Officer Financials Svein Stoknes Chief Financial Officer Q&A session Luis Araujo Svein Stoknes Q&A © 2015 Aker Solutions Slide 8 February 13, 2015 Fourth-Quarter and Annual Results 2014 Preferred partner
Slide 9: 4Q 2014 | Consolidated Income Statement
4Q 2014 | Consolidated Income Statement ■ Year-on-year revenue growth of 13.5% for full year 2014 and 21.3% for 4Q 2014 ■ 4Q 2014 EBITDA (excluding one-off items) reached NOK 782 million, equivalent to a margin of 8.6% ■ Proposed dividend payment of NOK 1.45 for 2014, equivalent to 30% of annual net
Slide 10: 4Q 2014 | Consolidated Cashflow, Capex and NCOA
4Q 2014 | Consolidated Cashflow, Capex and NCOA1 ■ Strong 4Q 2014 cashflow from operations of NOK 2.1 billion ■ Project progress and cash payments at year end drove significant favorable move in NCOA (NCOA at end of 4Q 2014 totaled negative NOK 688 million, versus NOK 880 million per 3Q 2014) ■ Net
Slide 11: 4Q 2014 | Financial Position
4Q 2014 | Financial Position ■ Net interest bearing debt fell to NOK 397 million, and gross debt reached NOK 3.8 billion ■ Financial leverage was 0.15x and gearing 7%, well below policy at 1 x net interest bearing debt / EBITDA and less than 50% net interest bearing debt / equity ■ Robust total liqu
Slide 12: Subsea
Subsea ■ Strong 4Q 2014 revenue growth to NOK 4.8 ■ Order intake in 4Q rose 43.5% to NOK 2.4 billion, up 36.7% vs. 4Q 2013 billion from NOK 1.7 billion a year earlier ■ Main driver was progression of work on major ■ End 4Q order backlog was up 51.7% year-on- projects in Brazil, Angola and Congo year
Slide 13: Umbilicals
Umbilicals ■ 4Q 2014 revenues of NOK 637 million, flat vs. ■ Tender activity was high in the fourth quarter, but prior year period no significant orders were secured due to project delays ■ Main driver was increased activity at the U.S. plant in Mobile, Alabama ■ End 4Q order backlog fell 43.5% year
Slide 14: MMO
MMO ■ 4Q 2014 Revenue down 4.8% vs. last year to ■ Order intake in 4Q was NOK 2.5 billion, NOK 2.5 billion equivalent to 1.0x book-to-bill, up 134% on 3Q 2014, but down year-on-year due to a strong ■ 4Q 2014 EBITDA margins of 4.1% showed order intake in 4Q 2013 improvement on 3Q 2014 ■ End 4Q order
Slide 15: Engineering
Engineering ■ Exceptional revenue growth of 50.3% vs. last ■ Tendering activity steady and 4Q 2014 order year, reaching NOK 1.3 billion in 4Q 2014 intake rose 29.4% year-on-year to NOK 1.1 billion, equivalent to 0.9x book-to-bill ■ Main driver was good progress made on key projects in Norway, Malays
Slide 16: Good Visibility From Strong Order Backlog
Good Visibility From Strong Order Backlog1 4Q 14 Order backlog by execution date Order backlog and intake evolution NOK billion NOK billion 53.9 49.0 48.3 60 41.2 40.9 39.6 39.5 20 50 15 40 21.4 23.8 30 10 20 9.2 6.3 6.2 5.9 5.2 3.6 5 10.6 10 7.5 6.4 0 0 2015 2016 2017 2018 2Q 13 3Q 13 4Q 13 1Q 14 2
Slide 17: Financial Guidance
Financial Guidance Revenue Balance sheet Positive long-term outlook for offshore Maintenance capex / R&D ≈ 3% of and deepwater remains in place, but revenues near-term uncertainty on award timing Current major capex expansion plans to be We see good long-term growth finished by 2015 opportun
Slide 18: Agenda | 4Q and Annual Results 2014
Agenda | 4Q and Annual Results 2014 Introduction Luis Araujo Chief Executive Officer Financials Svein Stoknes Chief Financial Officer Q&A session Luis Araujo Svein Stoknes Q&A © 2015 Aker Solutions Slide 18 February 13, 2015 Fourth-Quarter and Annual Results 2014 Preferred partner
Slide 19: Additional Information
Preferred partner 4Q Additional Information © 2015 Aker Solutions Slide 19 February 13, 2015 Fourth-Quarter and Annual Results 2014 Preferred partner
Slide 20: Consolidated income statement
Consolidated income statement NOK million Income statement consolidated 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 FY 2014 Operating revenue and other income 7,317 7,435 6,758 7,548 29,058 7,482 8,060 8,274 9,155 32,971 EBITDA 469 431 519 661 2,079 666 608 615 786 2,675
Slide 21: Consolidated assets & debt and equity
Consolidated assets & debt and equity NOK million Assets 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 Property, plant and equipment 2,539 2,691 2,814 3,072 3,067 3,180 3,203 3,603 Intangible assets 5,057 5,253 5,131 5,524 5,585 5,731 5,810 6,143 Financial assets (non-current) 11 1
Slide 22: Consolidated cashflow
Consolidated cashflow NOK million Cashflow 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 1Q 2014 2Q 2014 3Q 2013 4Q 2014 FY 2014 EBITDA continuing operations 488 439 567 668 2,162 623 587 617 785 2,675 Change in cashflow from operating activities (2,066) 1,117 (11) 1,457 497 (1,510) 1,239 (968) 1,271 (30)
Slide 23: Split per segment
Split per segment NOK million Revenues 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 FY 2014 Subsea 3,784 4,103 3,653 4,164 15,703 4,105 4,672 5,054 5,461 19,293 Field Design 2,999 3,183 2,935 3,385 12,502 3,404 3,408 3,210 3,688 13,710 Other 629 244 226 85 1,183 21 31 62 9
Slide 24: Split per segment
Split per segment NCOA 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 Subsea 2,543 1,157 1,264 311 1,322 327 742 (332) Field Design 117 352 268 (304) 275 250 532 71 Other 207 171 210 91 (105) (241) (394) (427) NCOA 2,867 1,681 1,742 98 1,492 336 880 (688) Net capital employed 1Q 201
Slide 25: Split per business area
Split per business area NOK million Revenues 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 FY 2014 Subsea 3,388 3,584 3,165 3,533 13,670 3,498 4,065 4,472 4,829 16,864 Umbilicals 397 519 488 632 2,036 607 608 585 637 2,437 Eliminations (2) (0) 0 (1) (3) 0 (1) (2) (5) (8) Su
Slide 26: Split per business area
Split per business area Order intake 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 FY 2014 Subsea 17,785 3,695 2,465 1,703 25,648 3,712 18,173 1,706 2,445 26,035 Umbilicals 1,071 107 902 965 3,045 713 292 88 197 1,290 Eliminations (0) (2) 0 (0) (2) (2) (2) (3) (12) (19) Sub
Slide 27: Copyright and disclaimer
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