Slide 1: 3Q 2020
3Q 2020 Fornebu, October 28, 2020 Kjetel Digre and Idar Eikrem 2020 © Aker Solutions
Slide 2: Agenda
Agenda Answers Questions Introduction Financials Q&A Session Kjetel Digre Idar Eikrem Kjetel Digre CEO Chief Executive Officer Chief Financial Officer Idar Eikrem CFO 2020 © Aker Solutions Third-Quarter Results 2020 October 28, 2020 Slide 2
Slide 3: Main Developments
Main Developments Operation Transformation Market development ■ Strong HSSE performance ■ Merger with Kvaerner on ■ NCS tax incentives ■ Installed Troll Phase 3 track support order intake ■ To be completed 4Q ■ 35 standardized subsea topside module, delivered ■ Value-creating spin-offs trees YTD Lin
Slide 4: Key Figures | 3Q 2020
Key Figures | 3Q 2020 Revenue EBITDA Order Intake Order Backlog 4.7 NOK BILLION 243 NOK MILLION 7.1 NOK BILLION 29.2 NOK BILLION Excl. special items Excl. special items 8 1,000 8 35 7 7 30 800 6 6 25 5 5 600 20 4 4 15 400 3 3 10 2 2 200 1 1 5 0 0 0 0 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 3Q 19 4Q 19 1Q 20 2
Slide 5: New Orders
New Orders Equinor Lundin Energy Norway Photo: Equinor Photo: Lundin Energy Norway Subsea Production System Electrification Work on the for the Breidablikk Edvard Grieg Platform Development Offshore Norway ConocoPhillips ExxonMobil Multiple Clients Photo: ExxonMobil Subsea Production System for Brow
Slide 6: Merger Process on Track
Merger Process on Track New Management team appointed New Board of Directors elected Effective Day 1 of merger Synergy effects on track Jul 17 Merger plan announced Sep 18 Exchange ratio set Sep 25 Merger approved by EGMs in Aker Solutions and Kvaerner Nov 11 Expected first day for new Aker
Slide 7: Spin-Offs Unlock Shareholder Value
Spin-Offs Unlock Shareholder Value ■ Spun off developer-roles of Aker Carbon Capture and Aker Market value NOK Billion Offshore Wind to shareholders 12 Aker Solutions (AKSO) ■ Creating significant value for Aker Offshore Wind (AOW-ME) 11 Aker Carbon Capture (ACC-ME) shareholders 10 ■ Distributing NO
Slide 8: Tendering Activity
Tendering Activity 15 NOK BILLION 2 NOK BILLION 4 NOK BILLION 12 NOK BILLION 9 NOK BILLION 2020 © Aker Solutions Third-Quarter Results 2020 October 28, 2020 Slide 8
Slide 9: Outlook
Outlook ■ Increased backlog improves 2021 visibility ■ Sanctioning activity on the Norwegian continental shelf expected to continue near-to- medium term ■ Number of early-phase discussions on international projects rising ■ Share of low-carbon and renewables projects expected to grow 2020 © Aker Sol
Slide 10: Agenda
Agenda Answers Questions Introduction Financials Q&A Session Kjetel Digre Idar Eikrem Kjetel Digre CEO Chief Executive Officer Chief Financial Officer Idar Eikrem CFO 2020 © Aker Solutions Third-Quarter Results 2020 October 28, 2020 Slide 10
Slide 11: 3Q 2020 | Income Statement
3Q 2020 | Income Statement NOK million 3Q 2020 3Q 2019 2019 ■ Third quarter revenue of NOK 5.5 billion Revenue 5,501 7,134 29,263 ■ Reduction versus previous year mainly driven by Field Design, Revenue ex. special items 1 4,696 7,132 29,262 EBITDA 938 553 2,244 as previously guided following the rec
Slide 12: 3Q 2020 | Cashflow and Financial Position
3Q 2020 | Cashflow and Financial Position ■ Working capital1 at NOK 429 million Debt Maturity Profile2 NOK million ■ Cashflow from operations at NOK 496 million 6,000 Drawn debt Undrawn revolving credit facility ■ Cashflow from investments at NOK 109 million ■ Net interest-bearing debt2 of NOK 1.9 b
Slide 13: Projects
Projects ■ Lower activity driven by Field Design following the record ■ EBIT margin1 at 0.1%, impacted by lower activity level and a activity last year, and continued progress towards finalization of few projects won in a very competitive market not yielding several ongoing projects, some with Covid
Slide 14: Projects | Subsea Projects | Field Design
Projects | Subsea Projects | Field Design ■ Activity driven by continued progress towards finalization of ■ Normalized activity as previously guided, following the several ongoing projects, some with Covid-19 impacts record activity in 2019 ■ Revenue down 27% year-on-year to NOK 1.6 billion ■ Revenu
Slide 15: Services
Services ■ Activity remained resilient in Subsea Lifecycle Services, ■ EBIT margin1 of 6.2% vs 7.2% a year earlier Topside brownfield maintenance activity-level impacted by ■ Strong order intake of NOK 1.7 billion (1.5x book-to-bill) COVID-19 ■ Order backlog of NOK 11.5 billion ■ Revenue down 28% ye
Slide 16: Order Backlog Gives Reasonable Visibility
Order Backlog Gives Reasonable Visibility 3Q 2020 Order Backlog by Execution Date NOK billion Order Backlog and Intake Development NOK billion Potential additional revenue from existing agreements Order backlog Order intake 30 Projects backlog Services backlog 11.5 7.7 6.7 20 3.2 3.2 27.4 29.2 25.4
Slide 17: Financial Guidance
Financial Guidance Revenue and Margin Balance Sheet and Cashflow ■ 2020 with unprecedented impacts of the COVID-19 ■ Working Capital likely to fluctuate with large project pandemic combined with steep decline in oil demand work and expected to trend around the NOK 1.0 and commodity prices, resulting
Slide 18: Agenda
Agenda Answers Questions Introduction Financials Q&A Session Kjetel Digre Idar Eikrem Kjetel Digre CEO Chief Executive Officer Chief Financial Officer Idar Eikrem CFO 2020 © Aker Solutions Third-Quarter Results 2020 October 28, 2020 Slide 18
Slide 19: Additional Information
Additional Information 2020 © Aker Solutions Third-Quarter Results 2020 October 28, 2020 Slide 19
Slide 20: Front-End Statistics
Front-End Statistics 3Q 2020 3Q 2019 YTD 2020 YTD 2019 Total front-end studies 23 37 112 111 Concept Studies leading to FEEDs 4 5 12 22 FEEDS leading to projects 3 5 8 7 2020 © Aker Solutions Third-Quarter Results 2020 October 28, 2020 Slide 20
Slide 21: 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. The financial information is not reported according to the requirements in IAS 34 (Interim Financi
Slide 22: Alternative Performance Measures
Alternative Performance Measures Profit Measures NOK million Projects Services Other/eliminations Aker Solutions EBITDA and EBIT terms are presented as they are used by financial 3Q 2020 3Q 2019 3Q 2020 3Q 2019 3Q 2020 3Q 2019 3Q 2020 3Q 2019 Revenue 3,560 5,627 1,113 1,549 828 (42) 5,501 7,134 anal
Slide 23: 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 24: 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 signed contracts in the period in add
Slide 25: Special Items
Special Items NOK million, (Gain) / Loss Special items (EBITDA) 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 Restructuring 31 (3) 39 3 10 12 46 70 155 117 114 Non-qualifying hedges (3) (1) (11) (2) (4) 5 1 0 10 (8) (1) Gain on non-cash dividend distribution
Slide 26: Income Statement
Income Statement NOK million Income statement consolidated 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 Revenue 6,541 6,954 25,232 7,256 7,525 7,134 7,348 29,263 6,510 5,361 5,501 Operating expenses (6,078) (6,471) (23,422) (6,622) (6,902) (6,581) (6,914) (
Slide 27: Balance Sheet – Assets
Balance Sheet – Assets NOK million Assets 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 Property, plant and equipment 2,905 3,044 2,945 2,916 3,031 3,065 3,235 2,905 2,779 Intangible assets 5,596 5,686 5,690 5,578 5,669 5,710 5,589 5,423 5,249 Right-of-use assets - - 4,184
Slide 28: Balance Sheet – Liabilities and Equity
Balance Sheet – Liabilities and Equity NOK million Liabilities and equity 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 Total equity attributable to the parent 6,849 7,502 7,241 7,044 7,355 7,134 7,411 6,532 5,709 Non-controlling interests 45 106 107 123 110 97 78 78 58 Tot
Slide 29: Cashflow
Cashflow NOK million Cashflow 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 EBITDA 463 483 1,810 634 623 553 434 2,244 149 232 938 Change in cashflow from operating activities (506) (370) (890) (937) (568) (726) 306 (1,925) (449) (184) (442) Net cashflow fro
Slide 30: Split Per Segment
Split Per Segment NOK million Revenue 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 Projects 5,211 5,608 19,920 5,952 6,015 5,627 5,658 23,253 5,119 4,058 3,560 Services 1,277 1,324 5,096 1,299 1,503 1,549 1,645 5,995 1,386 1,281 1,113 Other 72 78 298 42 35
Slide 31: Split Per Segment
Split Per Segment NOK million NCOA 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 Projects (1,067) (1,141) (262) (66) 502 (239) 27 91 20 Services 633 693 908 936 896 844 909 479 393 Other (591) (306) (398) (139) (71) 176 117 351 17 NCOA (1,024) (753) 248 731 1,327 781 1,053
Slide 32: Split Per Segment – Excluding Special Items
Split Per Segment – Excluding Special Items NOK million EBITDA (excl. special items) 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 Projects 373 348 1,371 478 475 455 372 1,780 305 268 190 Services 190 194 692 187 210 174 169 740 78 126 131 Other (70) (46) (2
Slide 33: Projects | Subsea and Field Design
Projects | Subsea and Field Design NOK million Revenue 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 Subsea 2,079 2,042 8,162 2,439 2,343 2,171 2,309 9,262 2,349 1,895 1,576 Field Design 3,170 3,551 11,814 3,512 3,680 3,450 3,362 14,004 2,770 2,164 1,985 Eli
Slide 34: 2020 © Aker Solutions
2020 © Aker Solutions
Slide 35: 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