Slide 1: 3Q 2018
3Q 2018 Fornebu, October 24, 2018 Luis Araujo and Svein Stoknes © 2018 Aker Solutions
Slide 2: Agenda | 3Q 2018
Agenda | 3Q 2018 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO © 2018 Aker Solutions Third-Quarter Results 2018 October 24, 2018 Slide 2
Slide 3: Main Developments
Main Developments First oil at the Kaombo field in Angola Mærsk Inspirer ■ Activity is picking up, though ■ Top and bottom lines increase ■ Front-end demand remains market remains competitive ■ Order intake more than strong ■ Major projects progressing doubles versus a year earlier ■ Financial posit
Slide 4: Key Figures | 3Q 2018
Key Figures | 3Q 2018 Revenue EBITDA Order Intake Order Backlog 6.5 NOK BILLION 463 NOK MILLION 5.9 NOK BILLION 36.1 NOK BILLION Excl. special items 7 500 14 40 450 35 6 12 400 30 5 350 10 25 4 300 8 250 20 3 6 200 15 2 150 4 10 100 1 2 5 50 0 - 0 0 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 3Q 17 4Q 17 1Q 18 2Q
Slide 5: New Orders
New Orders Brazil | Petrobras Angola | BP Global | Equinor Photo: Agência Petrobras Subsea production system and Brownfield modifications, Global collaboration agreement related services for the Mero field maintenance and operations with Equinor on current and future development support for BP in An
Slide 6: Strong Demand for Early-Phase Capabilities
Strong Demand for Early-Phase Capabilities ■ Awarded 33 front-end contracts, resulting in a total of 3Q 2018 2018 YTD 107 for the first 9 months of the 33 107 year Total front-end ■ Almost a third are for projects awards outside Norway ■ Many are for large and 6 12 complex projects Concept studies ■
Slide 7: Brazil Set to Grow
Brazil Set to Grow A Major Opportunity Campos Basin Santos Basin © 2018 Aker Solutions
Slide 8: Aker Solutions Strongly Positioned in Brazil
Aker Solutions Strongly Positioned in Brazil 3,600 40 EMPLOYEES IN YEARS IN 260 100 SUBSEA TREES SUBSEA CONTROL 6 LOCATIONS BRAZIL INSTALLED MODULES INSTALLED © 2018 Aker Solutions Third-Quarter Results 2018 October 24, 2018 Slide 8
Slide 9: Outlook
Outlook ■ Market for oil services remains competitive, though signs of a recovery are increasing ■ Industry improvement measures are lowering break-even costs and spurring project sanctions ■ Tendering activity is high in main markets, key projects are seen sanctioned in next 6 to 12 months ■ Well-p
Slide 10: Agenda | 3Q 2018
Agenda | 3Q 2018 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO © 2018 Aker Solutions Third-Quarter Results 2018 October 24, 2018 Slide 10
Slide 11: 3Q 2018 | Income Statement
3Q 2018 | Income Statement (NOK million) 3Q 2018 3Q 2017 YTD 2018 YTD 2017 2017 ■ Revenue for 3Q 2018 up 21% year-on-year Revenue 6,541 5,419 18,278 16,017 22,461 ■ Reflecting higher activity in Field Design EBITDA 463 401 1,327 1,062 1,519 and Subsea, as well as in Services EBITDA margin 7.1% 7.4%
Slide 12: 3Q 2018 | Cashflow and Financial Position
3Q 2018 | Cashflow and Financial Position ■ Cashflow from operations minus NOK 44 million Debt Maturity Profile1 NOK million ■ Working capital strong at minus NOK 1,024 million 6,000 Drawn debt Undrawn credit facilities ■ Net interest-bearing debt NOK 405 million 4,000 and leverage 0.3x 5,000 ■ Gros
Slide 13: Projects
Projects ■ Activity increasing on the back of work awarded end ■ EBIT margin1 of 4.9% vs 4.9% a year earlier of last year and earlier this year ■ Good order intake of NOK 3.8 billion, equal to ■ Revenue up 25% vs last year to NOK 5.2 billion 0.7x book-to-bill ■ EBITDA margin1 of 7.2% vs 7.7% a year
Slide 14: Projects | Subsea Projects | Field Design
Projects | Subsea Projects | Field Design ■ Subsea with continued solid project execution ■ Solid Brownfield activity across several geographies ■ Revenue rose 15% to NOK 2.1 billion vs year earlier ■ Revenue rose 33% to NOK 3.2 billion vs year earlier ■ Order intake of NOK 1.1 billion, equal to ■ S
Slide 15: Services
Services ■ Increased activity level in production asset services ■ EBIT margin1 of 11.6% vs 10.2% a year earlier ■ Revenue rose 10% vs last year to NOK 1.3 billion ■ Strong order intake of NOK 2.1 billion, equal to ■ EBITDA margin1 increased to 14.9% vs 13.5% a 1.6x book-to-bill year earlier ■ Order
Slide 16: Order Backlog Gives Reasonable Visibility
Order Backlog Gives Reasonable Visibility 3Q 2018 Order Backlog by Execution Date NOK billion Order Backlog and Intake Evolution NOK billion 16.8 Potential additional revenue from existing agreements Order backlog Order intake 40 Projects backlog Services backlog 37.6 37.0 36.1 34.6 3.6 30 6.9 27.2
Slide 17: Financial Guidance
Financial Guidance Revenue and Margin Balance Sheet and Cashflow ■ Positive long-term offshore, deepwater ■ Capex and R&D ≈ 2% of annual revenue, outlook with flexibility ■ Markets remain competitive but increasing ■ Working capital likely to fluctuate around signs of a recovery large project work b
Slide 18: Agenda | 3Q 2018
Agenda | 3Q 2018 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO © 2018 Aker Solutions Third-Quarter Results 2018 October 24, 2018 Slide 18
Slide 19: Additional Information
Additional Information © 2018 Aker Solutions Third-Quarter Results 2018 October 24, 2018 Slide 19
Slide 20: Special Items
Special Items NOK million Special items (EBITDA) 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 Onerous leases 39 39 82 - 6 - 33 40 - - - Restructuring 0 130 163 (1) 81 8 (2) 86 7 5 31 Non-qualifying hedges (11) (18) (44) 3 4 10 (6) 10 (3) (4) (3) (Gain) loss
Slide 21: General
General Basis for Preparation Alternative Performance Special Items Impacting Profit Measures This presentation provides financial highlights for the quarter for Aker Measures NOK million Projects Services Other/eliminations Aker Solutions Solutions, a Norwegian limited company Aker Solutions disclo
Slide 22: General
General Financing Measures Net Current Operating Assets (NCOA) or working capital is a measure of the current capital necessary to maintain operations. Working capital includes trade receivables, trade payables, accruals, Alternative financing and equity measures are presented as they are indicators
Slide 23: General
General Order Intake Measures New Leasing Standard (IFRS 16) Order intake, order backlog and book-to-bill ratios are presented as alternative performance The new IFRS 16 Leasing standard is effective from January 1, 2019. An on-balance sheet measures, as they are indicators of the company’s revenues
Slide 24: Income Statement
Income Statement NOK million Income statement consolidated 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 Revenue 5,987 6,138 25,557 5,173 5,425 5,419 6,444 22,461 5,483 6,254 6,541 Operating expenses (5,509) (5,759) (23,628) (4,817) (5,120) (5,017) (5,986) (
Slide 25: Balance Sheet
Balance Sheet NOK million Assets 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 Property, plant and equipment 3,735 3,808 3,721 3,564 3,341 3,316 3,077 2,977 2,905 Intangible assets 6,305 6,314 6,280 6,525 6,344 6,447 6,343 6,290 6,204 Financial assets (non-current) 67 132 1
Slide 26: Cashflow
Cashflow NOK million Cashflow 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 EBITDA continuing operations 477 380 1,929 355 305 401 458 1,519 425 439 463 Change in cashflow from operating activities (769) 1,081 (1,617) (257) (762) (615) 702 (932) 107 (121) (5
Slide 27: Split Per Segment
Split Per Segment NOK million Revenue 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 Projects 5,003 5,100 20,627 4,066 4,232 4,184 5,179 17,660 4,239 4,862 5,211 Services 1,019 1,057 5,001 1,068 1,156 1,165 1,170 4,560 1,159 1,337 1,277 Other (9) 25 88 41 43
Slide 28: Split Per Segment
Split Per Segment NOK million NCOA 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 Projects (223) (1,297) (810) (239) 151 (712) (1,350) (1,540) (1,067) Services 824 921 640 603 595 511 550 646 633 Other (185) (528) (803) (818) (731) (643) (622) (521) (591) NCOA 416 (904) (974
Slide 29: Split Per Segment – Underlying Margins
Split Per Segment – Underlying Margins NOK million EBITDA (excl. special items) 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 Projects 393 387 1,602 269 295 323 405 1,292 322 328 373 Services 116 168 618 152 147 157 151 607 135 173 190 Other (37) (16) (98) (
Slide 30: Projects | Subsea and Field Design
Projects | Subsea and Field Design NOK million Revenue 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 Subsea 2,873 2,693 11,917 2,182 1,883 1,801 2,471 8,336 1,956 2,084 2,079 Field Design 2,133 2,414 8,751 1,887 2,353 2,386 2,776 9,402 2,284 2,810 3,170 Elim
Slide 31: © 2018 Aker Solutions
© 2018 Aker Solutions
Slide 32: 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