Slide 1: 3Q 2022
3Q 2022 Fornebu, October 25, 2022 Kjetel Digre and Idar Eikrem 2022 © Aker Solutions
Slide 2: 3Q 2022 | On-Track with Financial Targets
3Q 2022 | On-Track with Financial Targets Revenue Excluding special items EBITDA Excluding special items Financials 10.0 NOK BILLION 749 NOK MILLION ■ On-track with financial targets 12 800 ■ Top and bottom lines increased from same period last year 10 ■ Strong periodic profit in Subsea positively i
Slide 3: 3Q 2022 | Operational Highlights
3Q 2022 | Operational Highlights Johan Castberg: FPSO Installation Jansz: Subsea Gas Compression Tommeliten and Eldfisk: Subsea projects Troll West: Electrification Photo: Equinor 2022 © Aker Solutions Third-Quarter Results 2022 October 25, 2022 Slide 3
Slide 4: 3Q 2022 | New Orders
3Q 2022 | New Orders Renewables and Field Development Jackdaw unmanned wellhead platform for the Jackdaw gas field in the UK for Shell HVDC platform for the Norfolk Boreas offshore wind farm in the UK for Vattenfall1 NOK 4.9 billion Growth in scope on existing contracts and frame agreements El
Slide 5: Record High Tender Value at NOK 115 Billion
Record High Tender Value at NOK 115 Billion Tender Value Development 78 NOK billion NOK 120 115 BILLION 105 100 90 78 80 81 80 80 76 6 NOK 8 NOK BILLION BILLION 0 4Q’20 1Q’21 2Q’21 3Q’21 4Q’21 1Q’22 2Q’22 3Q’22 9 NOK 4 NOK 10 BILLION BILLION NOK BILLION About 60% related to Future Aker Solutions* *
Slide 6: Safeguarding Capacity in a Planned and Controlled Way
Safeguarding Capacity in a Planned and Controlled Way Planning and managing capacity to deliver solid project execution Planning & Front End Partnerships Prioritization ▪ Strong and differentiating Front End ▪ Prioritization and portfolio approach ▪ Working closely with partners and engineering capa
Slide 7: Enterprise Strategy – Main Principles
Enterprise Strategy – Main Principles Strategic Beliefs Strategic Moves 2030 Ambition Strong growth in energy Safeguard and deliver on project spending, transitioning into portfolio and upcoming activity renewables over the longer term increase A digitally-driven Customers are transitioning and Buil
Slide 8: Strong Growth in Engineering Consultancy Offering
Strong Growth in Engineering Consultancy Offering CO2 Value Chain Offshore Wind Solutions +52% Increase in Energy Transition Studies (year-on-year) Proprietary digital tools and benchmark data Providing early assessments of large Energy Transition to predict CO2 reduction measures for a offshore win
Slide 9: Outlook
Outlook ■ Well positioned in key growth markets ■ Capitalize on near-term cyclical recovery ■ Increase focus on alliances and partnerships within renewables ■ Well positioned to capitalize on longer-term structural changes in the energy markets ■ Tendering for NOK 115 billion and high ongoing FEED a
Slide 10: Financial Performance
Financial Performance Idar Eikrem, CFO 2022 © Aker Solutions Photo: Jan Arne Wold and Elisabeth Sahl, Equinor
Slide 11: 3Q 2022 | On-Track With Financial Targets
3Q 2022 | On-Track With Financial Targets NOK million 3Q 2022 3Q 2021 2Q 2022 2021 Revenue 10,035 7,314 10,635 29,473 Financials continue on-track with targets, Revenue ex. special items1 10,041 7,311 10,581 29,464 with a strong financial position EBITDA 736 441 653 1,842 EBITDA margin 7.3% 6.0% 6.1
Slide 12: Solid Finances – Net Cash Position of NOK 3.5 Billion
Solid Finances – Net Cash Position of NOK 3.5 Billion 2 Working capital1 at minus NOK 2.3 billion Debt Maturity Profile2 NOK billion ■ Continued good progress triggering milestones and pre-payments Undrawn revolving credit facility 6 Cash flow from operations at NOK 769 million 5.0 Drawn debt Cash f
Slide 13: Renewables and Field Development
Renewables and Field Development Revenue EBITDA and Margin1 Financials and Highlights 3.6 NOK BILLION 124 NOK MILLION ■ Revenue of NOK 3.6 billion 5 250 10% ■ Continuing progress on recently awarded work 4 200 8% ■ EBITDA1 of NOK 124 million (3.5% margin) 3 150 6% 4% 4% 4% 4% ■ Several projects in e
Slide 14: Electrification, Maintenance and Modifications (EMM)
Electrification, Maintenance and Modifications (EMM) Revenue EBITDA and Margin1 Financials and Highlights 2.9 NOK BILLION 146 NOK MILLION ■ Revenue of NOK 2.9 billion 4 250 10% ■ Continued good progress on ongoing work 200 8% 3 5% 6% 6% 5% ■ EBITDA1 of NOK 146 million (5.0% margin) 150 6% 2 4% ■ Con
Slide 15: Subsea
Subsea Revenue EBITDA and Margin1 Financials and Highlights 3.5 NOK BILLION 603 NOK MILLION ■ Revenue of NOK 3.5 billion 4 800 17% 20% 16% ■ Continued good progress in the project portfolio 15% 14% 14% 3 600 15% ■ EBITDA1 of NOK 603 million (17.5% margin) 2 400 10% ■ Strong periodic profits positive
Slide 16: Solid Order Backlog and Visibility
Solid Order Backlog and Visibility Order Backlog by Execution Year NOK billion Renewables and Energy Transition1 NOK billion, % 23.9 25 Share of Order Backlog 20 7.0 3Q 2020 3Q 2021 3Q 2022 15 11.7 9.2 10 8.9 3.8 8% 35% 32% 2.5 6.4 5 4.6 1.8 1.5 7.5 0.7 3.2 4.6 4.2 0 2022 2023 2024 2025 --> Subsea R
Slide 17: Summary Outlook
Summary Outlook ▪ On-track with financial targets ▪ 2022 overall revenue is now ▪ Record high tendering activity expected to be up by more than 35% from 2021 ▪ Selective approach ▪ Several important large single- ▪ 2022 overall underlying source FEEDs ongoing EBITDA-margin continues to ▪ Positive ou
Slide 18: Q&A
Be AkerSolutions We solve global energy challenges Ca f for future generations 7
Slide 19: Additional Information
Additional Information 2022 © Aker Solutions
Slide 20: Guidance – Additional Items
Guidance – Additional Items ■ Net financial items1 about minus NOK 50 million, per quarter ■ D&A2 about NOK 1.1 to 1.2 billion, per year ■ ‘Other’ EBITDA3 about minus NOK 125 million, per quarter This guidance is on as-is basis, until close of the subsea JV transaction expected during second half 20
Slide 21: JV Transaction Unlocking Significant Shareholder Value
JV Transaction Unlocking Significant Shareholder Value Final ownership structure Receiving USD 700 million Retaining 20% ownership as consideration for 20% ownership and cash generation until close USD 306.5 million 20% JV ownership Cash A leading subsea company2 70% 20% 10% Will contribute to Aker
Slide 22: Renewables and Energy Transition
Renewables and Energy Transition NOK billion, % Revenue 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 Total Revenue (excl. special items) 6.4 6.8 28.5 6.5 7.0 7.3 8.7 29.5 8.3 10.6 10.0 Renewables and Energy Transition revenue 0.3 0.5 1.6 0.6 1.0 1.1 1.6 4.3
Slide 23: Transition Journey Well Underway
Transition Journey Well Underway Selection of Work Related to Renewables and Energy Transition Type Project Main scope Customer Region Type Project Main scope Customer Region Offshore Hywind Tampen Floating foundations for wind Equinor NOR Subsea Gas Jansz-Io Subsea Gas Compression Chevron AUS Wind
Slide 24: 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. Aker Solutions ASA merged with Kværner ASA in November 2020. The consolidated financial statements
Slide 25: Alternative Performance Measures
Alternative Performance Measures Profit Measures EBITDA and EBIT terms are presented as they are used by financial analysts and investors. Special items are excluded from EBITDA and EBIT as Renewables & Electrification, Other/ Field Maintenance & Subsea Aker Solutions alternative measures to provide
Slide 26: 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 27: 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 agreed customer contracts in the peri
Slide 28: Special Items
Special Items NOK million, (Gain) / Loss Special items (EBITDA) 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 Restructuring 183 61 516 2 3 19 0 25 1 0 (0) Non-qualifying hedges (1) (5) (4) (7) (2) (1) 3 (7) (18) 32 (4) Gain on dividend distribution of CCUS a
Slide 29: Income Statement
Income Statement NOK million Income statement consolidated 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 Revenue 7,198 6,875 29,396 6,470 7,020 7,314 8,668 29,473 8,291 10,635 10,035 Operating expenses (6,122) (6,792) (27,857) (6,041) (6,632) (6,873) (8,085)
Slide 30: Cash Flow
Cash Flow NOK million Cash flow 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 Net profit 291 (844) (1,520) 27 60 100 63 249 175 276 285 Change in cash flow from operating activities 604 1,455 2,421 455 200 476 1,418 2,549 1,409 (303) 484 Net cash flow from o
Slide 31: Balance Sheet – Assets
Balance Sheet – Assets NOK million Assets 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 Property, plant and equipment 3,912 3,567 3,400 3,397 3,262 3,231 3,269 3,424 3,533 Intangible assets including Goodwill 6,002 5,825 5,806 5,768 5,743 5,724 5,808 6,101 6,064 Right-of-us
Slide 32: Balance Sheet – Liabilities and Equity
Balance Sheet – Liabilities and Equity NOK million Liabilities and equity 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 Total equity attributable to the parent 9,141 7,870 7,784 7,903 7,870 7,833 8,011 8,727 9,129 Non-controlling interests 58 38 38 37 35 28 39 64 41 Total e
Slide 33: Split Per Segment
Split Per Segment NOK million Revenue 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 Renewables and Field Development 2,538 2,879 10,829 2,750 2,655 2,499 2,721 10,625 2,795 3,958 3,551 Electrification, Maintenance and Modifications 1,877 2,052 8,733 1,863 2,
Slide 34: Split Per Segment
Split Per Segment NOK million NCOA 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 NCOA 312 (280) (118) (398) (666) (1,784) (2,791) (2,307) (2,347) Order intake 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 Renewables and Field Develo
Slide 35: Split Per Segment – Excluding Special Items
Split Per Segment – Excluding Special Items NOK million EBITDA (excl. special items) 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 Renewables and Field Development 193 259 549 248 95 89 108 540 102 76 124 Electrification, Maintenance and Modifications 66 (12
Slide 36: Order Backlog by Market
Order Backlog by Market NOK billion, % Order Backlog by Market 3Q 2021 3Q 2022 Africa 3% 2% Asia Pacific 21 % 16 % North America 13 % 11 % Norway 60 % 54 % Europe 1% 14 % South America 3% 4% Total 100 % 100 % Total backlog (NOK billion) 48.4 50.9 2022 © Aker Solutions Third-Quarter Results 2022 Octo
Slide 37: 2022 © Aker Solutions
2022 © Aker Solutions
Slide 38: 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