Aker Solutions Asa · OSL:AKSO
Aker Solutions Asa — Q4 2012 Earnings Presentation
31 slides from Aker Solutions Asa's earnings presentation, Feb 15, 2013
Slide 1: Fourth quarter results 2012
Preferred partner Q4 Fourth quarter results 2012 Fornebu, 15 February 2013 Per Harald Kongelf and Leif Borge Public © 2013 Aker Solutions Slide 1 15 February, 2013 Fourth quarter results 2012 Preferred partner
Slide 2: Agenda | Q4 2012
Agenda | Q4 2012 Introduction Per Harald Kongelf COO & Regional President, Norway Financials Leif Borge President & CFO Q&A session Per Harald Kongelf Q&A Leif Borge Public © 2013 Aker Solutions Slide 2 15 February, 2013 Fourth quarter results 2012 Preferred partner
Slide 3: Q4 2012 | Key figures
Q4 2012 | Key figures Revenues and EBITDA Order intake and backlog NOK billion NOK billion Revenues EBITDA Intake Backlog 14 3,5 30 60 12 3 56.7 25 50 10 2,5 12.0 20 40 8 2 15 30 6 1,5 10 20 4 1 9.1 1.2 5 10 2 0,5 0 0 0 0 Q3 4 1 2 3 Q4 Q3 4 1 2 3 Q4 Q3 4 1 2 3 Q4 Q3 4 1 2 3 Q4 2011 2012 2011 2012 20
Slide 4: Q4 2012 | By business area
Q4 2012 | By business area Profitability Growth Percentage EBITDA margin Percentage growth versus Q4 2011 Revenue Backlog 16% WIS 18% growth growth MLS 15% OMA 2% NA 16% 15% SUB 30 % -22 % OMA -12% ENG 0% -31 % 11% DRT 12% DRT 1% 92 % 10% ENG 12% MMO 0% 8% MMO 8% UMB -18 % -27 % 8% 8% PRS 13 % 24 %
Slide 5: Status Cat B project
Status Cat B project ■ The Cat B System Definition Phase (SDP) is ongoing ■ The purpose of the SDP is to fully mature all aspects of the concept ■ Technology development challenges related to subsea and riser design need to be resolved before SDP can be completed ■ When SDP is satisfactorily complet
Slide 6: 2012 | Key figures
2012 | Key figures Revenues and EBITDA Order intake & backlog Dividend per share NOK billion NOK billion NOK million Revenues EBITDA Intake Backlog 50 5 70 5 45 4,5 60 40 44.9 4 4.7 4 60.3 35 3,5 50 4.0 56.7 30 3 3 40 25 2,5 30 20 2 2 15 1,5 20 10 1 1 10 5 0,5 0 0 0 0 2010 2011 2012 2010 2011 2012 2
Slide 7: On track to reach 2015 goals
On track to reach 2015 goals Ambition ■ Double Aker Solutions’ revenues ■ 2012 growth: 25 % ■ Increase EBITDA margin by 3 – 4 percentage points ■ 2012 growth: 2.4 points Illustration: The growth ambition presented at Aker Solutions’ capital markets day in 2010. Public © 2013 Aker Solutions Slide 7 1
Slide 8: Four group priorities
Four group priorities Performance Customer relations quality and HSE Established regional Quality cost down 50% in approach to business 2012 development Main HSE indicators (TRI & Strengthened relationship LTI) improving to key customers Technology People and teams Invested NOK750m in R&D Recruited
Slide 9: Share price performance vs. peers
Share price performance vs. peers Share price performance 2012 against peers1 NOK share 140 Aker Solutions +90 % 120 100 Cameron +30 % OSEBX +22 % 80 NOV +0 % 60 FMC -7 % 40 20 0 des-2011 feb-2012 Feb 12 apr-2012 Apr 12 jun-2012 Jun 12 aug-2012 Aug 12 okt-2012 Oct 12 des-2012 Dec 12 Current EV/EBITD
Slide 10: Regional market outlook
Regional market outlook Norway ■ Norway still the world’s largest single offshore market North America ■ Mature market and IOR focus. Technology cradle. ■ Offshore activity is picking up ■ New discoveries give and the developments are increased confidence, moving to increasingly deeper momentum movi
Slide 11: Agenda | Q4 2012
Agenda | Q4 2012 Introduction Per Harald Kongelf COO & Regional President, Norway Financials Leif Borge President & CFO Q&A session Per Harald Kongelf Q&A Leif Borge Public © 2013 Aker Solutions Slide 11 15 February, 2013 Fourth quarter results 2012 Preferred partner
Slide 12: Consolidated income statement
Consolidated income statement1 (NOK million) Q4 12 Q4 11 2012 2011 Operating revenues and other income 12 034 11 600 44 922 36 474 EBITDA 1 220 1 047 4 739 3 445 Of which related to non-recurring items 1601 - 325 7572 Of which related to hedging (25) (2) 36 44 Depreciation and amortisation (345) (27
Slide 13: Q4 2012 | Consolidated cash flow, capex and NCOA
Q4 2012 | Consolidated cash flow, capex and NCOA ■ Cash flow from operations positive NOK 2.4 billion in the quarter ■ Group NCOA of NOK 1.9 billion (Q3: NOK 3.5 billion) ■ Several smaller acquisitions concluded in Q4: Fabrication Sandessjøen (MMO), Thrym Energy Canada (Asset Integrity MMO), Separat
Slide 14: Q4 2012 | Financial position
Q4 2012 | Financial position ■ Q4 2012 net debt of NOK 5.4 billion (Q3: net debt of NOK 6.0 billion) ■ In November 2012 a multicurrency credit facility of EUR 400 million was signed. The credit facility is split into a 3-year tranche of EUR 270 million and a 1.5-year tranche of EUR 130 million. Debt
Slide 15: Engineering Product Solutions
Engineering Product Solutions Engineering Process Systems ■ Front End Spectrum established ■ EBITDA impacted negatively by execution ■ High activity in the study markets challenges on Brazilian projects ■ Low activity in the downstream market in India ■ Bidding activity remained high ■ All new proje
Slide 16: Product Solutions
Product Solutions Subsea Umbilicals ■ Revenue growth 52 % compared to 2011 ■ High tender activity and positive market ■ New wave of projects coming up in 2013 outlook in all regions ■ Focus on quality performance and supply ■ Limited progress on new projects as awards chain initiatives have been del
Slide 17: Product Solutions
Product Solutions Drilling Technologies Mooring and Loading Systems ■ Projects on track for planned deliveries ■ Main deliveries on schedule and good ■ Awarded 7th Jurong drilling package and EBITDA contribution from all segments Atwood riser ■ Lifecycle services with stable contribution ■ Strong pe
Slide 18: Field-Life Solutions
Field-Life Solutions MMO Well Intervention Services ■ Peak activity at the yard in Egersund ■ High activity level in the North Sea ■ Acquisition of fabrication yard in ■ Low performance in the UK and International Sandnessjøen ■ Close-down costs on the the Process business ■ Acquisition of the Asset
Slide 19: Field-Life Solutions
Field-Life Solutions Oilfield Services and Marine Assets Asset values Total NOK 5.2 bn Skandi Santos (Petrobras) 475 Very strong performace with 98 % uptime Aker Oildfield Services in Q4 700 Ezra Skandi Aker (Total) Start up of operations in Angola somewhat 4000 Aker DOF Deepwater delayed Cat-B
Slide 20: Order backlog and order intake
Order backlog and order intake Order backlog by execution date Order intake NOK 9.1 bn NOK billion NOK million 30 OMA 270 27 WIS 1255 MMO 1092 2013 Later MLS 180 Order backlog of NOK 56.7 bn PRS 372 NOK million DRT 2 889 70 000 ENG DRT SUB MMO Other 60 000 50 000 UMB 31 40 000 30 000 SUB 2348 20 000
Slide 21: Agenda | Q4 2012
Agenda | Q4 2012 Introduction Per Harald Kongelf COO & Regional President, Norway Financials Leif Borge President & CFO Q&A session Per Harald Kongelf Q&A Leif Borge Public © 2013 Aker Solutions Slide 21 15 February, 2013 Fourth quarter results 2012 Preferred partner
Slide 22: Public © 2013 Aker Solutions Slide 22 15 February, 2013
Public © 2013 Aker Solutions Slide 22 15 February, 2013 Fourth quarter results 2012 Preferred partner
Slide 23: Additional information
Preferred partner Q4 Additional information Public © 2013 Aker Solutions Slide 23 15 February, 2013 Fourth quarter results 2012 Preferred partner
Slide 24: Consolidated cash flow
Consolidated cash flow NOK million Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 FY 2012 EBITDA 1 440 636 322 1 047 3 445 1 040 1 357 1 122 1 220 4 739 Change in cash flow from operating activities (259) (399) 905 135 382 (1 162) (1 844) (1 173) 1 223 (2 956) Net cash flow
Slide 25: Consolidated assets
Consolidated assets NOK million Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Property, plant and equipment 7 217 6 970 7 343 7 409 7 732 8 179 8 518 10 041 Intangible assets 7 183 5 911 6 409 6 843 6 776 7 040 7 162 7 454 Financial assets (non-current) 1 336 1 165 859 856 1 000 1 208 1 260 1 020
Slide 26: Consolidated debt and equity
Consolidated debt and equity Debt and equity Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q212 Q3 12 Q4 12 Shareholder's equity 13 354 12 494 10 201 10 797 11 360 10 790 11 363 11 823 Minority interests 168 163 181 169 173 159 170 157 Non IB liabilities (non-current) 2 604 2 532 2 764 2 797 2 660 2 756 2 844 3 048
Slide 27: Split per business segment in Aker Solutions
Split per business segment in Aker Solutions Revenues Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 FY 2012 Product Solutions 4 345 4 306 4 514 6 541 19 706 5 394 6 620 6 198 7 079 25 291 Field Life Solutions 2 643 2 899 2 920 3 716 12 178 3 261 3 709 3 673 3 677 14 320 Eng
Slide 28: Split per business segment in Aker Solutions
Split per business segment in Aker Solutions Revenues Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 FY 2012 Subsea 1 657 1 782 1 927 2 638 8 004 2 445 3 401 2 899 3 429 12 174 Umbilicals 435 506 420 685 2 046 413 506 518 561 1 998 Drilling Technologies 1 614 1 471 1 595 2 4
Slide 29: Split per business segment in Aker Solutions
Split per business segment in Aker Solutions Order intake Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 FY 2012 Subsea 2 555 4 415 2 473 1 991 11 434 2 423 3 203 1 908 2 348 9 882 Umbilicals 419 1 080 283 524 2 306 297 790 500 31 1 618 Drilling Technologies 1 012 4 427 2 25
Slide 30: Public © 2013 Aker Solutions Slide 30 15 February, 2013
Public © 2013 Aker Solutions Slide 30 15 February, 2013 Fourth quarter results 2012 Preferred partner
Slide 31: 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